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Greg Foran President and CEO

Walmart U.S.

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Walmart U.S. leadership team

Merchandising Duncan Mac Naughton

People Kristin Oliver

Logistics Chris Sultemeier

Development Judith McKenna

Jeff Davis Finance Marketing

Stephen Quinn Real Estate Pam Kohn

Operations Gisel Ruiz

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E-commerce Michael Bender

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Today’s agenda

First impressions

Ready for the holidays

Evolving Walmart as the customer evolves

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Today’s agenda

First impressions

Ready for the holidays

Evolving Walmart as the customer evolves

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Walmart U.S. strategic plan timeline

Thorough diagnostic review (~100 days)

Strategic initiatives defined

Aug Sep Oct Nov Dec Jan

Today

Holiday meeting

Store visits Associate feedback

Leadership discussions

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Strong initiatives under way

Productivity loop Buy for

less

Sell for less

Grow sales

Operate for less

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Strong initiatives under way

Productivity loop Buy for

less

Sell for less

Grow sales

Operate for less

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Multi-format portfolio

Supercenter

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Strong initiatives under way

Productivity loop Buy for

less

Sell for less

Grow sales

Operate for less

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Multi-format portfolio Broad and local assortment

Supercenter

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Strong initiatives under way

Productivity loop Buy for

less

Sell for less

Grow sales

Operate for less

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Multi-format portfolio Broad and local assortment

Creating opportunity

Supercenter

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Strong initiatives under way

Productivity loop Buy for

less

Sell for less

Grow sales

Operate for less

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Multi-format portfolio Broad and local assortment

Innovative programs

Creating opportunity

Supercenter

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Strong initiatives under way

Digital/physical integration

Broad and local assortment Productivity loop

Innovative programs

Multi-format portfolio

Buy for less

Sell for less

Grow sales

Operate for less

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Creating opportunity

Supercenter

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Challenging recent financial performance

Sales Net sales up 2.3%, or $3.2B Flat comp

FY15 1H financials

Focused on improving store standards and service levels Significant headwinds from health care and utilities

3.3% decline

5.0% increase

Mix and price investment driving rate decline Gross profit

Operating expenses

Operating income

Inventory

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Primary focus: improving the core

o Markdowns and inventory damages

o Inventory levels

o Outlier stores

Actions are expected to benefit financials …

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Drive comp sales Focus on quality

o Merchandise returns

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Broad opportunities to improve

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Improving the core is important to top and bottom line growth

Service In-stock Price

Fresh Inventory Digital / physical

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Today’s agenda

First impressions

Ready for the holidays

Evolving Walmart as the customer evolves

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Omni

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Duncan Mac Naughton Executive Vice President, Chief Merchandising Officer

Walmart U.S.

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Building customer trust through Savings Catcher Highlights

• National launch August 2014

• ~5M users signed up to-date

• ~3% of receipts1

• Attracting new customers to dotcom and to our mobile app

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1 For the week ending 10/03/2014 Note Savings catcher applies to most grocery items and select GM items

“This app … will prevent you from running from store to store for the lowest price.”

- Walmart customer

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Savings Catcher

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Reinvigorating our focus on fresh

Highlights

• Commitment to consistent quality

• Focus on operational excellence

• Associate accountability

• More local assortment

Providing more days of freshness to our customers

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Michigan Apples

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Re-envisioned the entertainment department A holiday destination

Brand focus New categories Space re-allocation

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Inspiring holiday meals

Digital / physical integration “Taste of Entertaining” Experience tastes & tips from our

holiday entertainment guide Follow the latest social media baking trends while in-store

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Exciting seasonal merchandise Halloween Gifts

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$28.88

$249

Seasonal

$6.98 $16.97

$10

$119

$998

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Holiday Hub

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Continuing programs important to our customer

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Chosen by Kids

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Gisel Ruiz

Executive Vice President, Chief Operating Officer Walmart U.S.

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Improving our business by listening to customers “The products I’m looking for, on the

shelves, every time I’m in the store.”

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In stock

“Help when and where I need it. I don’t want to have to search for it.”

“I want a painless checkout. Fast

and Easy.”

Engaged associates Fast checkout

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Repurposed 20M hours to stock products

Highlights

• Improved picking logic

• Removed unnecessary item counts

• Simplified getting merchandise on the shelf

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Improving service through engaged associates

2014 marked the highest engagement scores in company history

Adding 60K new associates this holiday season Introducing dress code and training to create a new associate brand

Promoting associate ownership through recognition and new innovative tools

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Investing to open up more registers than ever

Program Highlights

• Direct response to customers’ #1 request

• More registers open than ever before during the peak holiday shopping season

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Real opportunities. Everyday possibilities.

Opportunity: Employment • Hired 62K veterans since May 2013 • 15K – 50K job openings on any given day

Opportunity: Choice • Offered more than 39M hours through the “Access to

Open Shifts” program this year

• 80K associates converted to full time

Opportunity: Advancement • 170K associates promoted annually

• 75% of store management teams promoted from within

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Update on challenges mentioned last year

Highlights

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• Approximately half of the 500 discount stores have real estate actions that are planned or being evaluated

• Bottom 10% stores improved their sales comp ~4% from Q2 FY14 to Q2 FY15

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Today’s agenda

First impressions

Ready for the holidays

Evolving Walmart as the customer evolves

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Judith McKenna Executive Vice President, Chief Development Officer

Walmart U.S.

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Evolving with the customer

They value:

− Convenience − Low prices − Broad assortment − Services

Our customers are digitally connected

Evolving customer Evolving Walmart

Formats

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New concepts

Services

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Refining supercenters •Large format offering food & general merchandise

• Important format for the stock-up trip

•Moderating supercenter growth in short-term as we evaluate evolving customer needs

Redefining space

Focus on digital and services

Providing a quality shopping experience

1 Includes new and conversions of discount stores

Supercenter

Unit growth1

130

FY14 FY15 FY16

~120 60 - 70

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Continuing Neighborhood Market expansion •~40K square feet offering fresh, fuel & pharmacy

•Continued strong sales comps

• Focused on quality of sites

•Optimizing the format

Customer offer

Operating model

Operational standards

Store of the community 1 Does not include Walmart Express stores

Neighborhood Markets

Unit growth1

105

FY14 FY15 FY16

~170 180 - 200

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Walmart Express

Learning from small format grocery test •~12K square feet offering fresh, fuel & pharmacy

•Rebranding to Neighborhood Market

• Test units in place by Q1 FY16

Unit growth

7

FY14 FY15 FY16

~70

~20

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West East

Northern Plains

Great Lakes Northeast

Southeast

Gulf Shores Texoma

Pacific West Pacific-AK, CA, HI Central Plains

WA

OR ID

NV UT CO

NM AZ

CA

TX

OK AR

MO

IL

WI

KS

NE

FL

GA AL MS

LA

SC NC

VA

TN KY

IN OH

MI

IA

MN ND

SD WY

MT

PA

NY

ME

WV

PR

AK

HI

We’ve aligned our field structure with our formats

Large format field alignment Small format field alignment

West East

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Continuing to test and learn

Walmart Pickup - Grocery

Grocery Home Delivery Tethering

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Walmart Care Clinics

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Driving traffic and sales to stores

Providing service solutions for our customers

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Strong foundation of core strengths

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Strong foundation of core strengths Unique competitive strengths Delivering value for customers,

shareholders, and associates

History of innovation

Rich & cohesive culture

World’s largest logistics network

Collaborative supplier relationships

Geographic scale

FY14 net sales of $279B

FY14 operating income of $22B

~600 million eComm visitors / quarter

~1.2 million associates

~4,300 stores1

~672 million square feet of retail1

1 As of September 30, 2014

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Key takeaways

Conducting a thorough diagnostic review of the business

Recognize broad opportunities to improve across the business

Focused on building trust and driving sales every day, especially during the holidays

Adapting to evolving customer needs and a shifting retail environment

Well-positioned for future growth both online and in stores

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