Walmart Inc. · NASDAQ:WMT
Walmart — Investor Day (2020)
21 slides from Walmart's investor day presentation, 2020
Slide 1: Investment Community Meeting
Investment Community Meeting INNOVATION CONTINUED
Slide 2: Brett Biggs, Executive Vice President & CFO
Brett Biggs Executive Vice President & CFO, Walmart
Slide 3: Investment Community Meeting
Investment Community Meeting INNOVATION CONTINUED
Slide 4: Today's headlines
Today’s headlines Achieved most FY20 Expense leverage is Recent investments are financial goals sustainable paying off Productivity loop is alive Leveraging scale & unique FY21 guidance reflects and well assets continued progress
Slide 5: Investment Community Meeting
Investment Community Meeting INNOVATION CONTINUED
Slide 6: Solid sales results
Solid sales results FY20 net sales +2.7% Full-year highlights: $524.1B1 $510.3B Walmart U.S. comp sales +2.8%; two-year stack +6.4% Strong U.S. eCommerce growth (incl. online grocery) +37% Q4 net sales International net sales1 +2.8% +2.1% Strength in China, Mexico & India; softness in U.K., Canada &
Slide 7: FY20 underlying profitability healthy
FY20 underlying profitability healthy FY20 adj. operating income (1.9%) Full-year highlights: $22.0B $21.5B1 Walmart U.S. adjusted operating income +2.6% Strong progress on expense leverage Adjusted EPS +0.4% International strength in Mexico & China Q4 adj. operating income (3.7%) Headwind from Chil
Slide 8: Achieved most FY20 guidance metrics
Achieved most FY20 guidance metrics Metric Original guidance Grade Consolidated net sales growth At least 3% in constant currency X Walmart U.S. comp sales growth +2.5% - +3% Walmart U.S. eCommerce sales growth Around 35% International net sales growth Around 5% in constant currency X Sam’s Club com
Slide 9: Company has evolved significantly
Company has evolved significantly Net sales growth contributors CapEx spending by type Excludes acquisitions FY15 FY20 FY15 FY20 New stores/clubs Remodels & customer initiatives New stores/clubs eCommerce Supply Chain eCommerce & tech Store/club comps Maintenance & other
Slide 10: Leveraging our scale & unique assets
Leveraging our scale & unique assets Revenue AA credit ~$525B rating Customers each week Diversified asset base >265M Associates Strong, stable cash flow 2.2M
Slide 11: Financial framework remains consistent
Financial framework remains consistent Strong, efficient Consistent operating Strategic capital growth discipline allocation
Slide 12: Strong, efficient growth
Strong, efficient growth FY21 net sales growth FY21 sales guidance: Total net sales1: ~+3% Walmart U.S. comp: >+2.5% U.S. eCommerce: ~+30% Walmart International1: ~+4% Sam’s Club comp2: > 3% 1On a constant currency basis New stores/clubs eCommerce Store/club comps 2Excludes fuel and tobacco
Slide 13: Consistent operating discipline
Consistent operating discipline FY20 adjusted expense leverage1 24bps ~20bps 1Excluding externally adjusted items Note: See non-GAAP reconciliations provided in Q4 FY20 earnings presentation
Slide 14: Strong progress on expense leverage
Strong progress on expense leverage 21.2% 21.5% 21.0% 20.8% ~20.6% 20.3% FY16 FY17 FY17 FY18 FY18 FY19 FY19 FY201 FY20 FY21E FY21E 1On an externally adjusted basis Note: See non-GAAP reconciliations provided in Q4 FY20 earnings presentation
Slide 15: Cost culture is strong
Cost culture is strong “Smart Spend” Operational efficiences Goods not for resale
Slide 16: Expense leverage is sustainable
Expense leverage is sustainable Annual expense leverage goal (for FY21 and beyond) ~20bps
Slide 17: Strategic capital allocation - customer focused
Strategic capital allocation - customer focused FY21 CapEx spending by type Excludes acquisitions Almost 1,000 store/club remodels globally Expansion of same-day pickup & delivery ~250 new stores/clubs - Mexico & China Technology upgrades ~ 11.0B $ New stores/clubs Remodels & customer initiatives Su
Slide 18: Significant cash returns for shareholders
Significant cash returns for shareholders 47 consecutive years of dividend increases Intend to complete current share repurchase program in FY21 ~ 130B $ over the past 10 years Dividends Share repurchase
Slide 19: Fiscal year 2021 guidance
Fiscal year 2021 guidance 1 Operating income growth Similar range to EPS growth Walmart U.S. Walmart U.S. Net sales comp sales growth eCommerce SG&A leverage sales growth growth > 2.5% ~20bps ~3% (excl. fuel) ~30% Effective tax rate EPS Walmart International Sam’s Club $5.00-$5.15 net sales growth c
Slide 20: Key takeaways
Key Company is strong takeaways Transformation leverages scale & unique assets Recent investments paying off Expense leverage is sustainable FY21 guidance reflects continued progress
Slide 21: Investment Community Meeting
Investment Community Meeting INNOVATION CONTINUED