WMT IR 2014 David Cheesewright International vFINAL [Read...
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Transcript of WMT IR 2014 David Cheesewright International vFINAL [Read...
10/15/2014
10/15/2014
David CheesewrightPresident and CEO
Walmart International
10/15/2014
Strategy & DevelopmentScott Price
Latin AmericaEnrique Ostalé
FinanceBrett Biggs Shelley Broader
UK, Canada, Africa
Daniel TrujilloMaggie Sans Tim CheathamLegalCorporate Affairs Compliance
International leadership team
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International serves 120M customers weekly
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PortfolioPlaying in the right markets
MarketsChannelsFormats
Invest in good Growth drivers
Operational excellence
Trust as a differentiator
Be the best-in-class retailerBe in good businesses
Positioning
formats
PerformanceCapturing shareOptimizing portfolio
categories
Playing in the right…
channels
Be in good businesses and be the best-in-class retailer
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Be in good businesses
Formats
$5.5T global retail growth opportunity1
(FY14-19 growth, $ in trillions)
Markets
US
China
Other WMT markets
Non-WMT countries
Categories
Mom & Pop
HypermarketsApparel
Supermarkets
Others
ConvenienceHomeToys
ElectronicsBeauty
Others
Apparel
Food & consumables
e-commerce
ElectronicsPharmacy
Discount
1 Euromonitor Retail Sales – modern, formal retail excluding auto and food service
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International priorities
Drive comp sales via price leadership and category developmentStrategic priorities
Accelerate e-commerce globallyBuild a platform for sustainable growth in ChinaRejuvenate Mexico Turn around Brazil
EnablersBe the lowest cost operatorDevelop world-class global talentTrust as a differentiator in all markets
Be in goodbusinesses
Be the best-in-class retailer
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Drive comp sales via price leadership
EDLP
EDLC
Price leadershipIn-store
communication
Price guarantee
Price gap measurement
Price leadershipJourney to EDLP
Wk1
Wk2
Wk3
Wk4
Wk5
Wk6
Wk7
Wk8
Wk9
Wk10
Wk11
Wk12
Price gap%
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International
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Drive comp sales via price leadership
EDLP
EDLC
Price leadershipIn-store
communication
Price guarantee
Price gap measurement
Price leadershipJourney to EDLP
Wk1
Wk2
Wk3
Wk4
Wk5
Wk6
Wk7
Wk8
Wk9
Wk10
Wk11
Wk12
Price gap%
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Build robust retail foundationsCategory innovation Merchant tools
Baby in ChileCustomer insights
Gas stations in the UK & Clinics in Canada
SeasonalHalloween in the UK
PricingBuying
Modular planning Replenishment/ availability
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Win in food
Sourcing
Conversion
In-store process
1 Last 12 months of data, ended May 2014
Fresh food excellence
1
2
3
Leading WMT PB offer
Opportunity to develop and leverage PB portfolio
Private brand accelerationFood and consumables private brand penetration1
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Accelerate e-commerce to solve customer needsGrocery home shopping
Leverage ASDA’s success
Online general merchandise
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Lowest cost to operateWorkforce management
Business discipline
Supply chain
Energy savings Operating structure Inventory management
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Talent and trust
Best talent
Best environment
Global leaders
Continue good progressKey focus areas:
Anti-corruptionLicenses and permitsHealth and safety
Strengthen relationships with customers and stakeholders
Lead on social and environmental issues
Community World-class compliance
Organizational alignment
Standardization
Automated tools
Efficient organization
World-class talent Most trusted retailer
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Build a platform for growth in ChinaRetail foundations
Integrate physical and digital
Focused growth
Build trust
Growsales Operate
for less
Buy for less
Sell for less
Quality control质量控制团队
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Rejuvenate MexicoRetail foundations
Accelerate e-commerce
Continued growth
Fix Sam’s Club
Growsales Operate
for less
Buy for less
Sell for less
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Execute turnaround program in BrazilBuild basic foundations
Price leadership
Integration
Compliance Improved assortment
Productivity loop
Disciplined growth
Leadership and talent
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Redefine value retail in the UK
Lowest cost to operate
Price leadership
Increase access and reach
Compelling offer
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Strengthen position in Canada
Lowest cost to operate
Supercentre innovation
Online opportunity
Compelling food offer
FreshPrivate Brands
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Brett BiggsExecutive Vice President and Chief Financial Officer
Walmart International
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FY15 1H – Solid financial performance
-1.4%
4.3%
7.5%
Net sales Operating income
1 Growth rates calculated on a constant currency basis2 These figures are non-GAAP financial measures. Our reconciliations can be found at www.stock.walmart.com
Improved comp growth
Grew operating income faster than sales
Expanded e-commerce in key markets
Increased focus on working capital
Growth1
(% change from LY)Performance highlights
2
2
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Disciplined growthNew store square footage
(in millions)
23.6 19.4
12.5 9 - 10 10 - 13
24.1 20.2
16.5 12 - 13
FY12 FY13 FY14 FY15E FY16E
Net Gross
1 FY12 includes the acquisition of Netto stores in the UK 2 FY13 includes the acquisition of Zeller stores in Canada
1 2
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Position capex for the near future
1 New stores also includes expansions, relocations, and in-box conversions2 Other includes home office, bank, sustainability and JV Canada Smart Centres
Capex % of International total
FY12 FY15E FY16-18E
Distribution centerse-commerce
Remodels/ maintenance
LeverageOther2
New stores1Large formatsSmall formats
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Sales growth (% of total International)
FY13-15 FY16-18E
“Big 3” markets
FY13-15 FY16-18E
Other markets
CAM
Op income growth(% of total International)
Create a more balanced portfolio
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Portfolio frameworkGuiding principles Recent portfolio actions
Sold VIPS restaurants in Mexico
Reset India
Closed stores in China & Brazil
Purchased Chile minority interest
More balanced financial portfolio
Be in good businesses
Accelerate the strategy
Simplify the business
Focus on key initiatives
Deliver long-term value for customers and shareholders
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International priorities
Drive comp sales via price leadership and category developmentStrategic priorities
Accelerate e-commerce globallyBuild a platform for sustainable growth in ChinaRejuvenate Mexico Turn around Brazil
EnablersBe the lowest cost operatorDevelop world-class global talentTrust as a differentiator in all markets
Be in goodbusinesses
Be the best-in-class retailer
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Q A
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