2017 investment community meeting - walmart.com · our execution actively manage the portfolio 2017...
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2017 Investment Community MeetingMoving With Speed
David CheesewrightWalmart International
our execution
Actively manage the portfolio
2017 Investment Community Meeting
Our strategy remains consistent
Strategic framework
Accretive for growth, talent, and innovation with leading returns
Disciplined growth through differentiated customer proposition
Be the lowest cost operator
Build strong foundationsOur role
Accelerating our execution
First half FY18 financial performance
Highlights✓ Continued sales momentum✓ Strength in Walmex and Canada✓ Improved performance in the UK✓ Expanded partnership with JD
and New Dada in China+3.2%Net sales*(constant currency)*A reconciliation of constant currency net sales to net sales can be found on the meeting event page. Additionally, this percentage excludes a negative year-over-year impact of ~$890M from the divestitures of Yihaodian and Suburbia.
2017 Investment Community Meeting
* Presented on a constant currency basis; excludes Yihaodian and BrazileCommerce and Suburbia; adjusted for leap day
FY15 FY16 FY17 FY18
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Rolling 12-month comp*Comp growth >50% Sales growth
Sales growth > Expense growth
Profit growth > Sales growth
Sales growth > Inventory growth
Payables growth > Inventory growth
Rules of thumb(Q2 performance, constant currency)
2017 Investment Community Meeting
✓
✓
✓
✓
✓
Momentum in the businessPerformance continues to improve
Positioning to win
Our portfolio is well-balanced toaccess global retail growth
✓ Market size and dynamics ✓ Well-positioned and
sustainable business ✓ Accretive to our portfolio
Key principles for success
Strong NorthAmerican core
Key growth markets
Diversifiedportfolio markets
2017 Investment Community Meeting
✓ Mexico ✓ Canada ✓ Central America
Strong North American core
✓ China ✓ India
✓ Africa ✓ Argentina ✓ Brazil
✓ Chile ✓ Japan ✓ UK
Key growth markets
Diversified portfolio markets
Actively manage the portfolio
Strengthen advantage Focus on leverage
Strategy to win Commit resources
Position to provide accretive value and stability
2017 Investment Community Meeting
China - Strategy to win
2017 Investment Community Meeting
Partner for omnichannel success
Differentiate our customer value proposition
Rebalance the businessPriority provinces Current store footprint
Disciplined growth through a differentiated value proposition
Investing in key categories and executing balanced price programs
Price leadershipWin in fresh through quality, price, and assortment
Fresh
Key differentiator and traffic driver
Private brandsCreating new access points for customers
Online Grocery
2017 Investment Community Meeting
COGS reduction
Be the lowest cost operatorDrive savings to fund growth
SG&A reduction
✓ Cost analytics ✓ Sourcing
✓ Stores ✓ Supply chain ✓ Overhead
Key facts✓ Leveraged expenses in Q1 and Q2 ✓ Canada’s 717 program continues to
show increases in labor efficiencies ✓ Chile delivered over 100bps of
expense leverage in the first half FY18
2017 Investment Community Meeting
Build strong foundations
✓ Right people ✓ Right role ✓ Right environment
✓ World-class compliance ✓ Food safety ✓ Sustainability
✓ Automation and efficiency
2017 Investment Community Meeting
World-class talent Building trust Enabling the futureof our business
Key takeaways
2017 Investment Community Meeting
Consistent strategy Momentum in the business
Positioning to win