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Wal-Mart Stores, Inc. Company Profile Publication Date: 5 Aug 2011 www.datamonitor.com Europe, Middle East & Africa Americas Asia Pacific 119 Farringdon Road 245 5th Avenue Level 46 London 4th Floor 2 Park Street EC1R 3DA New York, NY 10016 Sydney, NSW 2000 United Kingdom USA Australia t: +44 20 7551 9000 t: +1 212 686 7400 t: +61 2 8705 6900 f: +44 20 7551 9090 f: +1 212 686 2626 f: +61 2 8088 7405 e: euroinfo@datamonitor.com e: usinfo@datamonitor.com e: apinfo@datamonitor.com ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Our series of company, industry and country profiles complements our premium products, providing top-level information on 10,000 companies, 2,500 industries and 50 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need -including predictions and forecasts. All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,...

Wal-Mart Stores, Inc. Profile

702 Sw 8th St. Bentonville, AR 72716 United States Phone : 479-273-4000 Fax : 479-277-1830 http://www.walmartstores.com

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WELCOME

HIDDEN TEXT TO MARK THE BEGINNING OF THE TOC

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Table of Contents 2Company Overview

Key Information 2

Key Financials 2

Company Rankings 2

Key People 3

4Company Description

6Company History

8Industry Information

9People

People 10

Board Members 12

12Biographies

S. Robson (Rob) Walton 13

Michael T. (Mike) Duke 13

Charles M. Holley 14

Karenann K. Terrell 15

Linda P. Hefner 16

Thomas A. (Tom) Mars 16

Stephen F. Quinn 17

Jack L. Sinclair 17

James A. (Andy) Barron 18

Michael J. Bender 18

M. Susan Chambers 19

David Cheesewright 20

Leslie A. Dach 20

Cindy Davis 21

Johnnie C. Dobbs 21

Jeffrey J. (Jeff) Gearhart 22

Duncan C. Mac Naughton 22

C. Douglas (Doug) McMillon 23

Michael S. (Mike) Moore 24

Gisel Ruiz 24

William S. (Bill) Simon 25

Raul Vazquez 26

John T. Westling 26

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Eric S. Zorn 27

Jeff Davis 27

Michelle J. Gloeckler 28

Matt Kistler 28

Pamela K. (Pam) Kohn 28

Steve Nave 29

J. P. Suarez 29

Andrea Thomas 29

Steven P (Steve) Whaley 29

Carol A. Schumacher 29

Neil M. Ashe 30

Rosalind G. Brewer 31

Shelley G. Broader 31

A. J. (Andy) Clarke 31

Steve Dacus 32

Sylvia Mathews Burwell 32

Scott Price 32

Timothy Flynn 33

P. Todd Harbaugh 33

Steve Smith 34

David (Dave) Tovar 34

Aida M. Alvarez 34

James W. (Jim) Breyer 35

M. Michele Burns 35

James I. Cash 36

Roger C. Corbett 37

Douglas N. Daft 38

38Historical Events

38Company Financials

Financial Summary 38

Annual Income Statement 40

Quarterly Income Statement 41

Annual Balance Sheet 42

Quarterly Balance Sheet 43

Annual Cash Flow 44

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Quarterly Cash Flow 45

Earnings Estimates 46

Financial Market Data 47

Historical Financials 48

49Competition

Competitors List 49

Competitive Landscape 51

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Company Overview 702 Sw 8th St. Bentonville, AR 72716 United States Phone : 479-273-4000 Fax : 479-277-1830 http://www.walmartstores.com

Wal-Mart Stores is an irresistible (or at least unavoidable) retail force that has yet to meet any immovable objects. Bigger than Europe's Carrefour, Metro AG, and Tesco combined, it's the world's #1 retailer with some 2.2 million employees. In the US, Wal-Mart operates more than 4,000 stores, including 3,000-plus Supercenters that sell groceries and general merchandise, 610 Sam's Club warehouses, and a growing number of smaller format stores. The company's faster growing international division (28% of sales) numbers more than 5,600 locations; Wal- Mart is the #1 retailer in Canada and Mexico and has operations in Asia (where it owns a 95% stake in Japanese retailer SEIYU), Africa, Europe, and South America.

Key Information DUNS Number 051957769

Location Type Headquarters Subsidiary Status No Manufacturer No Company Type Public Plant/Facility Size (sq. ft.) 25,000.00 Owns/Rents Owns Foreign Trade Imports / Exports Accountant Ernst & Young LLP Total Employees 2,200,000 1-Year Employee Growth 4.76% Employees At This Location 11,700 Year of Founding or Change in Control 1945 Primary Industry 1531:Warehouse Clubs & Superstores Primary SIC Code 53310000:Variety stores Primary NAICS Code 452910:Warehouse Clubs and Supercenters Tradestyle Walmart Latitude/Longitude 36.36435 / -94.21665

Key Financials Fiscal Year-End January Sales ($ M) $446,950.00M 1-Year Sales Growth 5.95% Net Income $15,699.00M 1-Year Net Income Growth (4.21%) Total Assets $193,406.00M Market Value $230,821.42M

Prescreen Score Low Risk

Company Rankings 2 in FORTUNE 500 (May 2012) S&P 500 (December 31, 2012) Dow Jones Industrials Dow Jones Global Titans 11 in FT Global 500 (July 2012) 2 in FORTUNE 1000 (May 2012)

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Key People

Name Title

Mr. S. Robson (Rob) Walton Chairman

Mr. Michael T. (Mike) Duke President, CEO, and Director

Mr. Charles M. Holley Jr. EVP and CFO

Ms. Karenann K. Terrell Chief Information Officer

Ms. Linda P. Hefner EVP and Chief Merchandising Officer, Sam's Club

Mr. Thomas A. (Tom) Mars EVP and Chief Administrative Officer, Walmart U.S.

Mr. Stephen F. Quinn EVP and Chief Marketing Officer, Walmart U.S.

Mr. Jack L. Sinclair EVP Food, Walmart U.S.

Mr. James A. (Andy) Barron EVP Softlines, Walmart U.S.

Mr. Michael J. Bender EVP; President, Walmart West, Walmart U.S.

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Company Description

Geographic Reach In the 20 years since the Arkansas-based retailer entered Mexico (its first international market), Wal-Mart Stores has become an international retail powerhouse with operations in 26 countries. Of its 10,000-plus stores, more than half are located outside of the US. Indeed, Walmart International is the company's growth engine, accounting for more than 25% of sales. Major foreign markets include Mexico, the UK, Brazil, and Japan. Operations Wal-Mart's general merchandise and food retailing operations come in multiple formats, the largest being its 3,000-plus Supercenters. The retailer also operates a dwindling number of discount stores (many of which are being enlarged to become Supercenters) and Sam's Club warehouse stores. Smaller formats include Neighborhood Markets in the US and supermarkets and bodegas in Mexico. The International division operates a diverse portfolio with some 70 banners, representing three major categories: retail, wholesale, and other (which includes restaurants in Chile, Japan, and Mexico). The retail giant's online incarnation, Walmart.com (launched in 2000), offers more than 1,000,000 products. The e- tailer is expanding by offering merchandise from other retailers at its new virtual mall called Walmart Marketplace. Launched in August 2009, Walmart Marketplace offers apparel, baby, home, and sporting goods items from other sellers in return for a share of the revenue. In Demonstrating its commitment to e-commerce and social media, Wal-Mart acquired Kosmix, a social media technology provider, in 2011. Kosmix developed a platform that enables users to filter and organize content into social networks. As part of the transaction, Kosmix became @WalmartLabs, and founders Venky Harinarayan and Anand Rajaraman stayed on to lead the business. Also, in 2012 Walmart Global eCommerce agreed to increase its investment in Yihaodian, one of China's leading business- to-consumer e-commerce companies, to 51%. Sales and Marketing Wal-Mart Stores spent $2.3 billion on advertising in fiscal 2012 (ends January), down from $2.5 billion the prior year. Its advertising consists primarily of print, television, and online ads. Financial Analysis In fiscal 2012 (ends January) the company's net sales increased by nearly 6% vs. the prior year, driven by a 15% increase from the international division, a 9% jump in sales for Sam's Club, and a 1.5% gain in sales for Walmart US. Same-store sales at Wal-Mart stores in the US were essentially flat (up 0.3%) in fiscal 2012, after posting negative comparisons in the two previous years. Strategy Among the many measures the retailer has taken to get its groove back at home (including a sunny new logo), was a restructuring of its US organization (including top executive changes), the formation of a new division to oversee global e-commerce (called Walmart Global eCommerce), and a new global sourcing partnership with Hong Kong- based Li & Fung. Under the terms of the deal, Li & Fung -- a provider of supply chain services -- will form a new company to manage the Wal-Mart account and will act as the company's buying agent. The reorganization in the US entails the formation of three geographic business units: Walmart West, Walmart South, and Walmart North, in an attempt to more efficiently manage its domestic stores. While the retail operation was carved into three geographic slices, the logistics, real estate, and store operations functions were consolidated under one leadership team. With US suburbs saturated with Wal-Mart stores, the retailer has tried -- mostly unsuccessfully -- to gain access to urban markets. In 2011 Wal-Mart scored a significant breakthrough in its plan to build stores in US cities when it teamed up with Michelle Obama to launch its five-year plan to provide its customers with healthier, more affordable foods. Wal-Mart will reformulate its Great Value private label line of foods to reduce sodium, fats, and added sugars (and encourage its major suppliers to follow suit). Concurrently, with the first lady's support, it announced a commitment to building stores in underserved communities (aka "food deserts"). Given the breakneck pace of its international expansion over the past two decades and the growing importance of the international business to Wal-Mart's overall financial health, the fact that its Mexican subsidiary, Wal-Mart de México, is the subject of a bribery scandal is a serious blow to the company and its leadership. Mexico is Wal-Mart's largest foreign market and home to more than 2,000 of its supercenters, Sam's Clubs warehouse stores, and numerous other retail formats. Farther south, Wal-Mart is growing quickly in numerous other countries in Latin America, including Chile and Brazil, where it operates 316 and 512 stores, respectively. One of the world's fast- growing emerging markets, Brazil is key to Wal-Mart's expansion in the region. Asia is another hot growth market for Wal-Mart. Through joint ventures in China the company operates about 370 stores. To support its growth there, Wal-Mart is building its Asian headquarters in the coastal city of Shenzhen, the site of its first supercenter and Sam's Club in China. And in a move that demonstrates how important the vast Chinese market is to the world's largest retailer, staunchly anti-union Wal-Mart has announced that it will work with officials there to establish labor unions in all Wal-Mart stores in China. Wal-Mart is poised to enter India's huge but fragmented market via a joint venture with the Bharti Enterprises Ltd. (Regulations in India prohibit retailers

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like Wal-Mart from selling directly to consumers, but allow them to engage in wholesale cash-and-carry and back- end supply chain management operations in the country.) Wal-Mart's first wholesale outlet in India -- a BestPrice Modern Wholesale store --opened in 2009 and the company has added more than a dozen more since. Another 10 to 15 locations are expected to open by 2017. Mergers and Acquisitions In 2011 Wal-Mart completed two major acquisitions. It added its first locations in Africa through its purchase in June of a controlling stake in South African retailer Massmart Holdings. The purchase bought Wal-Mart entry into the fast-growing African market where Johannesburg-based Massmart runs 290 stores in about a dozen countries (with most locations in South Africa). Prior to its purchase of the Massmart stake, Wal-Mart's UK arm, ASDA, in April acquired the Netto Foodstores chain of discount supermarkets in the UK from owner Dansk Supermarked Gruppen. The addition of Netto's stores will help ASDA narrow the gap with Tesco, Britain's leading retailer. Ownership Following the death of Helen Robson Walton in 2007, the Walton family announced that much of the Wal-Mart stock held by Mrs. Walton through a family partnership will be donated to charity over several years. As a result, the Walton family's grip on the world's largest retailer will slip from about 48% (as of March 2012) to about 33%, following the disposition of Mrs. Walton's stake.

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Company History

Sam Walton began his retail career as a J. C. Penney management trainee and later leased a Ben Franklin- franchised dime store in Newport, Arkansas, in 1945. In 1950 he relocated to Bentonville, Arkansas, and opened a Walton 5 & 10. By 1962 Walton owned 15 Ben Franklin stores under the Walton 5 & 10 name. After Ben Franklin management rejected his suggestion to open discount stores in small towns, Walton, with his brother James "Bud" Walton, opened the first Wal-Mart Discount City in Rogers, Arkansas, in 1962. Wal-Mart Stores went public in 1970 with 18 stores and sales of $44 million. Avoiding regional retailers, Walton opened stores in small and midsized towns in the 1970s. The company sold its Ben Franklin stores in 1976. By 1980 Wal-Mart's 276 stores had sales of $1.2 billion. In 1983 Wal-Mart opened SAM'S Wholesale Club, a concept based on the successful cash-and-carry, membership- only warehouse format pioneered by the Price Company of California (now Costco Wholesale Corp.). The company started Hypermart*USA in 1987 as a joint venture with Dallas-based supermarket chain Cullum Companies (now Randall's Food Markets). The 200,000-sq.-ft. discount store/supermarket hybrid was later retooled as Wal-Mart Supercenters. Sam stepped down as CEO in 1988 and president David Glass was appointed CEO. Wal-Mart bought out Cullum the next year. Wal-Mart acquired wholesale distributor McLane Company in 1990. In 1992, the year Sam died, the company expanded into Mexico through a joint venture to open SAM'S CLUBS with Mexico's largest retailer Cifra (renamed Wal-Mart de México in 2000). Wal-Mart acquired 122 former Woolco stores in Canada in 1994. Co-founder Bud died a year later. More international expansion included entering China in 1996; the acquisition of German hypermarket chain Wertkauf in 1997; the purchase of Brazilian retailer Lojas Americanas' 40% interest in a joint venture (1998); and the addition of four stores and other sites in South Korea. Also in 1998 the company began testing the Neighborhood Market format, a 40,000-sq.-ft. grocery and drug combination store. In 1999 Wal-Mart bought 74 German-based Interspar hypermarkets and acquired ASDA Group, the UK's third-largest supermarket chain. COO Lee Scott succeeded Glass as CEO in 2000; Glass stayed on as chairman of the executive committee. Wal-Mart later began testing its customers' demand for appliances by selling household appliances in selected stores. Following the bankruptcy and closure of the Montgomery Ward department store chain in 2001, Wal-Mart offered to replace Ward's customers' credit cards with Wal-Mart branded cards. Wal-Mart also formed an alliance with America Online to offer Internet access and later launched its No Boundaries private-label cosmetics for pre-teens and teenagers. In June 2001 a group of six current and former female Wal-Mart employees filed a sex-discrimination lawsuit (seeking to represent up to 500,000 current and former Wal-Mart workers) against the company. The next month Wal-Mart said it would acquire all the minority interests in Walmart.com and integrate its online operations with its store operations. It also laid off 100 employees at its corporate headquarters and eliminated 300 unfilled positions. In August it said it was testing the sale of Sealy and private-label mattresses in some of its superstores, and it began offering college textbooks discounted up to 30% at its online College Bookstore. 2002 was a huge year for Wal-Mart both at home and abroad. In April the company was crowned America's largest corporation by FORTUNE magazine. In March Wal-Mart gained a foothold in Japan, taking a 6% stake in one of Japan's top retailers, SEIYU . That December it increased its SEIYU stake to 36%, and retains the option to up that to nearly 67% by 2007. In a rare defeat, Wal-Mart in July closed its first store in Germany, and 2,000 workers there went on a two-day strike over wages. (In 2001 Wal-Mart scrapped plans to open 50 more Supercenters there by 2003.) Also in 2002 Wal-Mart Puerto Rico acquired Supermercados Amigo, the #1 supermarket chain on the island. (Wal-Mart opened its first Supercenter there in April 2001.) Overall in 2002 Wal-Mart opened 178 supercenters, 33 discount stores, and 25 SAM'S CLUB stores. It opened 107 international units, with two in Brazil, 22 in Canada, eight in China, two in Germany, three in South Korea, 59 in Mexico, two in Puerto Rico, and nine in the UK. The company's attempt to open a state industrial bank in California in 2002 failed however, after legislators barred retailers. In May 2003 Wal-Mart sold its McLane grocery distribution business to Berkshire Hathaway; a rare divestment for the world's largest retailer. In July it opened its first store in Beijing. In February 2004, a federal judge ruled that Wal-Mart should pay workers for overtime hours. The complaint, which was brought by plaintiffs who said they were forced to work unpaid overtime between 1994 and 1999, came at a time when working conditions at the company were being scrutinized. Also that month, Wal-Mart acquired the 118- store Bompreço chain of Brazilian supermarkets and hypermarkets from troubled Dutch retailer Royal Ahold for $300 million, advancing the world's largest retailer from fifth to third place in the Brazilian market. In March, Wal- Mart opened its online music store, which sells digital downloads for 11 cents less than major competitors ( including Apple's iTunes and Napster). In April, voters in Inglewood, California overwhelmingly rejected Wal-Mart's proposal to build a supercenter there over the objections of local officials. Wal-Mart had sought to bypass local development and environmental regulations by spending more than $1 million to take its case directly to the voters.

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(The retailer was fined $1 million in 2001 for similar violations involving its failure to manage storm-water runoff.) Vice chairman Tom Coughlin retired in January 2005 after 25 years with Wal-Mart. Coughlin remained on the company's board until March 25, 2005, when he resigned prematurely following an internal investigation related to "the alleged unauthorized use of corporate-owned gift cards and personal reimbursements." He was due to retire from the board on June 3, 2005. In June the company rescinded Coughlin's retirement agreement, including stock awards and incentive payments, which may total as much as $12 million. Also in January, Wal-Mart agreed to pay $135,540 to settle federal charges that it violated child labor laws. The 24 violations, which the retailer denied, involved teenage workers in three states using hazardous equipment such as chain saws, paper balers, and fork lifts. Soon after, Wal-Mart was ordered to pay $7.5 million in damages to a disabled former employee who claimed the retailer unfairly reassigned him. In March the retailer settled a high- profile lawsuit by agreeing to pay $11 million to the US government to close an investigation into the use of illegal immigrants by Wal-Mart contractors to clean its stores. In May Wal-Mart increased its stake in SEIYU to 42% (up from 37%). In August 2005 Wal-Mart signed Garth Brooks to a multiyear, exclusive contract under which the country star's music will only be sold in Wal-Mart-owned stores. The deal marks the first time an artist has contracted himself and his entire catalog of music with a single chain. In October the company launched its Metro 7 line of urban women's apparel in 500 stores in and around urban areas. In December Wal-Mart opened its third superstore in the downtown Xuanwu District of Beijing. Also in December Wal-Mart acquired some 140 stores in Brazil from Portuguese retailer Sonae for about $757 million, increasing the number of outlets it operates in Brazil to nearly 300. In January 2006 Wal-Mart opened a supercenter in Santa Clarita, California, its second in Los Angeles County. In February the company acquired an additional 17.7% interest in CARHCO from Royal Ahold, increasing its stake in the Central America supermarket operator to 51%. Wal-Mart's former vice chairman Thomas Coughlin, who was accused of misusing more than $500,000 in company funds, pleaded guilty to fraud and tax charges in January 2006. In August he was sentenced to 27 months of house arrest and ordered to pay $400,000 in restitution to his former employer. Wal-Mart itself was ordered by a Pennsylvania jury to pay more than $78 million in damages in a class-action suit brought by employees alleging that they were forced to work during breaks and off the clock. In October Wal-Mart disposed of its retail operations in Germany and South Korea. It sold the last of its 85 stores in Germany to rival METRO AG and sold 16 stores in South Korea to Shinsegae Co. for about $882 million. In early 2007 Wal-Mart agreed to pay $33.5 million in back wages and interest to settle a federal lawsuit that accused the company of violating ovetime laws involving more than 86,000 employees. In February, the company announced an agreement with all six major Hollywood studios to sell digital movies and TV shows on walmart.com, becoming the first traditional retail chain to do so. In April Helen Robson Walton, wife of Wal-Mart founder Sam Walton, died at the age of 87. Wal-Mart and Bharti Enterprises formed a 50:50 joint venture in August to jointly build wholesale outlets that will buy goods from farmers and small manufacturers and sell to retailers through a nationwide supply chain. True to form, Wal-Mart again cut prices of toys and some 15,000 more items, such as apparel, home, and food products, for the 2007 holiday selling season. In May 2008 the retailer revised its $4 prescription program, launched in 2006, to cover 90-day prescriptions for $10. In November Mike Duke was named to Wal-Mart's board of directors, in preparation for his elevation to president and CEO of the company in February 2009. Also in November, Eduardo Castro-Wright, president and CEO of Walmart US, was promoted to vice chairman of Wal-Mart Stores. He assumed responsibility for the firm's global procurement operation. The management shuffle continued in 2009 with Lee Scott retiring as CEO in February. Scott was succeeded by Duke, who had headed the international arm of the company. In January Wal-Mart acquired a majority stake in Chile's