WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session

THOMSON REUTERS STREETEVENTS EDITED TRANSCRIPT WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session

EVENT DATE/TIME: JUNE 05, 2015 / 5:30PM GMT

OVERVIEW: Co. provided management update.

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CORPORATE PARTICIPANTS Carol Schumacher Wal-Mart Stores, Inc. - VP, Global Investor Relations Doug McMillon Wal-Mart Stores, Inc. - President and CEO Greg Foran Wal-Mart Stores, Inc. - President and CEO, Walmart US Charles Holley Wal-Mart Stores, Inc. - EVP and CFO Neil Ashe Wal-Mart Stores, Inc. - President and CEO, Global e-Commerce David Cheesewright Wal-Mart Stores, Inc. - President and CEO, Walmart International Roz Brewer Wal-Mart Stores, Inc. - President and CEO, Sam's Club

CONFERENCE CALL PARTICIPANTS Greg Melich Evercore ISI - Analyst Matt Fassler Goldman Sachs - Analyst Bob Drbul Nomura Securities Intl. - Analyst Paul Trussell Deutsche Bank - Analyst Simeon Gutman Morgan Stanley - Analyst Michael Lasser UBS - Analyst Budd Bugatch Raymond James & Associates - Analyst Oliver Chen Cowen and Company - Analyst

PRESENTATION Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations For those of you who are going to XMA, you should have gotten on that bus when you left the Bud Walton Arena and your luggage should be on that bus. So for our guests, the analysts and bankers, if you're going back to XMA please make sure you get on the right bus. We would feel bad you missed your flight.

For those of you are still staying over or who have cars at the Chancellor, there is a bus marked Chancellor and that bus will be going back to the Chancellor Hotel. For the Walmart people, for those of you who have your cars still it Bud Walton Arena, there's a separate bus for you and that bus will take you all back to Bud Walton Arena. So please at the end just make sure you are on the right bus because we all want you to get in the right location.

And when we are ready for the Q&A, so I don't have to do this during the webcast, just a reminder for those of you who are going to be asking questions -- there is always levity. For those of you will be asking questions, we would appreciate you waiting for the microphone. We are going to be doing a live webcast and wait for the microphone. Please be respectful and try to ask one, maybe two questions so we can try to get around to everyone.

The session will last 60 minutes. So I think we will be able to get most of your questions in.

Gentlemen, we're ready to start the webcast.

Good afternoon. Welcome to Walmart's session with the investment community following our shareholders meeting. I am Carol Schumacher with Walmart Investor Relations and we appreciate all of those of you here with us who made the trip coming to Northwest Arkansas. We know that

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2015 / 5:30PM, WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session traveling is not easy. We appreciate that you took the time to not only come for shareholders but for many of you to spend time in our stores yesterday as well.

We will be making some forward-looking statements today during our discussion and for information about our business and anything related to that, please refer to our website. That is stock. Walmart.com.

We have Doug and his directs here today to provide you with a few comments and to answer your questions. But before that, we would like to make sure that we have a lot of press releases out this week. All of them are available on our website. There were press releases about the business, everything on the US side from the Make a Difference badge, Walmart Radio going back in place, what we're doing with department managers in our stores. Sam's Club, Roz announced the expansion of club pick up, which some of you may have seen when you visited the Bentonville club, and you couldn't help but miss the announcement, shareholders today that we have a new Chairman of the Board and that is that Greg Penner is succeeding Rob Walton as Chair of the Board of Directors.

The other part of the announcement that coincides with the change on the Board is a restructuring and new committee assignments for our Board committees. That was included as well. So if you'd like to see what the Board is focused on from a committee standpoint, we have updated that on the website under the governance section on stock. Walmart.com.

The next big event that we will have means that you don't have to travel to Northwest Arkansas. That is that our meeting in October is going to be in New York. The date is October 14 and we are essentially all coming to you to make it easy for you. Many of you are from the New York area and many of you live closer to New York, so our meeting will be held at the Stock Exchange and again that's on October 14.

With that, we would like to get things underway. So before we start, I will start the introductions here with Dave Cheesewright, our President and CEO of Walmart International. Next to Dave, Roz Brewer, President and CEO of Sam's Club; Charles Holley, you all know is our CFO. Charles is next to Doug. I don't think Doug after the --

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO I just heard you say y'all. Where are you from?

Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations I have adopted Arkansas.

Unidentified Company Representative It was a strange y'all though.

Unidentified Company Representative It's got a Jersey kind of --

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO That's why it caught my attention.

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Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations You will hear I am sure in the next few minutes you will hear you guys in there and so forth to. But yes, that is Doug giving me a hard time. And next to Doug, Dan Bartlett, our Head of Corporate Affairs, our EVP of Corporate Affairs; and next to Dan, Neil Ashe, who heads up Global e-Commerce; Rollin Ford, our Chief Administrative Officer, and then Greg Foran. Of course you know Greg heads up Walmart US.

Greg Foran - Wal-Mart Stores, Inc. - President and CEO, Walmart US I can't say y'all. I could but no one would understand me.

Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations And next to Greg is Susan Chambers, who heads the People Division for us globally. And last but not least, one of my all-time favorite lawyers, our General Counsel -- not General Counsel, Corporate Secretary, Jeff Gearhart.

So with that, I am going to turn the program over to Charles.

Charles Holley - Wal-Mart Stores, Inc. - EVP and CFO Thank you, Carol. Welcome, everybody. Thank you for coming such a long way as most of you did to make it to the shareholders today. Hopefully you enjoyed the meeting but we know that it's really important that you get a chance to ask us questions, so I think we have been doing this kind of format now for the last three years and hopefully it works for you.

I will just say a couple of very brief comments. I'm going to turn it over to Doug to say a couple of comments and then we'll open it up for questions. We're not going to re-up guidance or give you any detailed information on the second quarter. We will field questions, though, on our general business and our general plans.

Two things I think that we are very focused on which you have heard us talk about here in the last few months, the core business and then the transformation of taking those digital assets and really integrating with those physical assets, extremely important. We did have and we do have some headwinds this year that I mentioned. The first would be foreign exchange. We updated guidance at the end of the first quarter. Sales at that time if the currency remains the same that you saw at end of the release, earnings release for the first quarter, would have been a negative effect on sales of $14 billion. EPS, it would be about $0.13 a share.

We also as you know announced $1 billion investment in training and wages in the US. That equates to $0.20 a share and then we have the additional investment that we are making in global e-commerce through the P&L and that's $0.06 to $0.09 per share. So I think those are very important to remember as you analyze our Company.

Having said that, those are some pretty big headwinds. I will tell you I think our feel is there is some momentum in the business and a lot of good things but we're not done and it won't happen overnight but we feel I think on both fronts, both the core and some of the work that we do in our transformation, I think that there is some good progress being made.

Inventory and working capital still a big opportunity for our Company. We won't capture that overnight but I believe we can capture a lot of cash over the long haul with good focus and our CEOs are very focused along with their teams.

Still committed to the AA credit rating. I know shareholder returns also very important. If you saw my presentation today, I think one of the questions I always get is well how much share repurchase are you going to do this year? That's not something we can answer because we don't forecast the share repurchase and stick to a robotic peg every month or every quarter. It depends on how well our operations generate cash. It will depend on

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2015 / 5:30PM, WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session the metrics of the AA rating and then we want to be opportunistic depending on the share price. So those three things weight very heavily on our decision for share repurchase.

Very focused on capital discipline. We are going to spend where we think it makes the biggest difference but we also need to prioritize and we are very focused on how we prioritize our capital.

So with that, I will turn it over to Doug.

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO First of all, thank you for coming. I appreciate the fact that you are interested in the Company and many of you traveled here to talk with us and learn more about Walmart, so we don't take that for granted.

You have heard us talk about the fact that we are focused on growth. I think it is probably even better to say we are focused on the customer and we are trying to do what it takes to position ourselves both in the short-term and the long-term to win with the customer over time. I think the good news is that we have a sense for what those things are and we are moving on them and trying to move on them quickly.

As we think about our position, we've got a strong balance sheet, got a great cash position but the choices we make today not only impact the short-term but they impact the long-term. So our relationship with our associates and ultimately how they interact with the customers matters not just in the United States but around the world, focused on running great stories and clubs right now and doing what's necessary to have associates who are highly engaged in helping us do that.

There's room to improve in merchandising. There's room to improve in inventory management. We are encouraged by some of the things that are happening there but it is a clear priority for us in the short-term to have better stores and clubs and some of our customer metrics are telling us now that we are on the right track. And I think what will happen is particularly in the Walmart US Supercenters, what you will see as week to week, month to month, quarter to quarter assuming a steady-state external environment, particularly gas prices, you're going to see us continue to make some progress and improve with the customer.

And we are feeling with associates and we are feeling it from customers already and you got a little bit of the associate flavor from today. So priority one is run great stores and clubs right now.

Equally important, we've got to build a great e-commerce and mobile commerce business. And it is exciting. We're learning a lot of new things. Neil is providing great leadership there and we are making progress and a lot of the foundational things that we needed to get done like the work that we did on the new platform that is known as Pangaea and the infrastructure investments, fulfillment centers for example are coming along. So not only do we see some short-term progress there but the things we're doing are going to help us for years to come and I'm excited about that.

The third area and if you were here a year ago, you heard us talk a lot about how we want to put digital and physical together and we think omnichannel is the way that we will win. That is still the case.

I think though this year what I would say to you is the word innovation comes to mind. We have to invent and be inventive as it relates to what customers don't even yet know they want that will help them save time as well as save money. And a year ago you heard us identify four different dimensions of our customer proposition. Value will always matter. Price matters. The assortment has been redefined and price has been redefined to some extent in retail. But assortment certainly has been as well, both first-party and third-party inventory.

The customer experience still includes human interaction. Most of the transactions, there's going to be a person involved somewhere along the way and even with the digital experience that they have from us, there is a person behind that that is going to be driving it. So some of our language this year has evolved towards we are investing in people and technology and what I am thinking of is we've got to put those things together, people and technology in a way that the experience that the customer has is surprisingly enjoyable. Whether that is a store experience and how

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2015 / 5:30PM, WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session we might innovate with the checkouts in the future or how in-stock market better, we manage inventory more effectively, or it is in the case of more of a pure e-commerce transaction or a blended transaction.

And then fourth, last year we talked a lot about access. What we were trying to say there is that we think that our nodes, our stores, or clubs, our distribution centers, those things are going to matter and there are going to be times when the customer wants to have something delivered. There are going to be times and they want to pick it up. There are going to be times when they want to come in a store and shop for it. There will be times they come in a store and shop and pick up something they ordered online. All of those lines are getting blurred and we think we are one of the retailers that has a unique opportunity to put those things together in a way where customers have new experiences and they are delighted and surprised in some cases.

Neil lately has been sharing some customer testimonials that actually bring that to life and you can see this spark in the customers, where we have surprised them. I didn't expect this from Walmart. I saved a lot of time or I had access to this, you changed my life. That story that I was trying to tell today about Julia, the mom that drew the before and after pictures, the collage before and after is an example of that.

So we are very focused on the customer, very focused on doing things right now that will help us improve our experience in stores and clubs and trying to be inventive to create what's next and not in every case follow or in some cases we need to but in other cases actually lead and create something that people haven't thought of before.

And with our assets, we certainly have the potential to do that. We have the cash flow to support it but we can't do everything. We can do almost anything as long as we prioritize. So growth will help. Starting with a customer or member, driving some volume on the top line and in comp stores and clubs, that gives us room to be able to do other things including leverage expenses, which has always been important. The productivity loop at Walmart is just how we think and that will always be the case.

And to drive returns and you saw a little bit from us in October as it relates to capital allocation discipline. There are no guarantees to our businesses that they are going to get capital. They have to compete for it within our portfolio. So last October we talked about building fewer supercenters, moderating the new neighborhood market number a bit more than you expected. We are aggressively managing capital at international and Dave and the team are being very thoughtful about that.

So we don't feel like we can do everything. We will be choice-ful and there are ongoing discussions about alternatives all the time. How can we make this a better company? Are we invested in the right places? What can we do differently? We are all very aware that this is a 52-year-old business that drove a lot of volume with a supercenter. How relevant is that for the future? How do we change it? What do customers want in a stock-up trip? How do you blend together e-commerce to do that?

So tinkering with things and you have seen us do some of that recently and you will see us do more of it, tinkering in a way that we learn and being comfortable with failing on the appropriate scale and not too often is the way we need to be thinking about it. And I'm comfortable that if we do those things, we will create the future for the Company, drive the growth, leverage the expenses, and always be thoughtful about capital and over time manage a return on investments that is attractive to investors.

So in the short term this year, these quarters, we are excited and comfortable with the choices we have made and understood when we made them that it was not going to immediately pay off and can't magically answer for you which date things are magically going to be better. I don't think it will feel that way anyway. So I think you will just have to watch our results and see what happens and we are comfortable with you doing that and we will just keep doing the right things that we need to do to build a stronger business over time.

We are happy to answer your questions and pleased that Jeff Gearhart got a chair so he can participate.

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QUESTIONS AND ANSWERS Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations Regarding Q&A, I would just like to quickly introduce the IR team. Michael Brigance on one microphone, Miguel Garcia on the other microphone, and those of you on the store tour yesterday heard from Kary Brunner. Kary, please stand up. Kary is the other member of our team and I would be remiss not recognizing Alex Finley, who has been rotating in IR with us the last few -- the last six months. So we appreciate all your help, Alex.

But with that, Greg, let's start with you.

Greg Melich - Evercore ISI - Analyst Greg Melich, Evercore ISI. Neil, I wanted to dig a little deeper into the numbers you showed and all the growth but also the cost along with that and the losses currently and that $12 billion business that's growing. When should we expect to see that start to leverage either in your own business or across the enterprise? Especially given that we know EDLC drives EDLP. How do we think about e-commerce within that construct?

Then I had a follow-up for Greg, if I could.

Neil Ashe - Wal-Mart Stores, Inc. - President and CEO, Global e-Commerce Great, so let's kind of take a snapshot of where we are. So in the course of the last three years, we have more than doubled the size of the business. We have re-platformed in the US, built an entirely new technology platform, built an entirely new fulfillment network. We have built thriving businesses outside the US and Brazil and China and as well as in the UK. So we feel really good about what we have done and the progress, the progress that we have made and we are starting to use that both that technology platform and that fulfillment network to, as Doug was indicating, transform the experience that you have both in what you would think of as pure e-commerce but also as you interact with the stores and the clubs. Ross talked a little bit about that today. Greg talked a little bit about that today.

Part of the reason that our investment level is as high as it is is because we are doing all of these things at one time. So we're rebuilding this business from scratch. We would be building one and it would be funding the next, which would be funding the next. So our business is sound. We are building a lot of these businesses all at the same time.

So over the course of the next few years, you'll start to see us leverage those investments as we continue to grow the top line and we continue to lower our costs to serve, so getting your packages wherever and whenever you want as well as leveraging the technology and the impact that that technology can have, both its level of investment but more importantly its ability to drive impact both to the e-commerce organization as well as to the rest of the enterprise.

Unidentified Company Representative Greg, I wanted to follow-up a little bit because such a theme I think we heard today and just over the last six months, reinvesting in people and helping that to really get people energized again, the passion. I think that was the word you used, Doug, very well today.

When will we see the investments really start to pay off? If we were looking at externally at the Company and your success, when would you expect to see a reinvestment in training and ours and everything that we talked about show up? And how would we measure it? Is it just traffic and sales or are there other metrics?

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Greg Foran - Wal-Mart Stores, Inc. - President and CEO, Walmart US I think there are other metrics and when you've got 4500 stores and the bulk of the 1.2 million are out there on the front lines serving customers, when you make the sort of changes that we are doing in the business, it's a much more gradual process it goes through. Judith is here and she is out in stores at least as often as I am, probably more.

And in answer to your question of how we see things eventually, roll themselves through, one of the questions I often ask when I go in a store is I will stand at the front end and I will ask the customer service manager what is the associate turnover on the front end? Not in the store, on the front end. And it's been interesting, Doug, as we have seen the starting wage change. I can tell you that literally the day that that changed, there was two things that happened in the front-end, Judith. The first thing was we didn't -- we started to see a change in associate turnover, but the other thing is that we had more applicants turning up for jobs.

So the simple answer to your question is this is a journey. Doing what we are doing is not something that happens overnight, particularly not when you've got 4500 stores. The simple metrics of items in a basket, traffic counts, comp sales, they will be the ones that you will see us report on but there will be some underlying metrics that as we get around store whether it's a clean fast friendly stores, whether it's associate turnover, whether it's what's happening in terms of days off when people are sick. All those things are health indicators and I would expect that as we continue to lean in like we are that sort of quarter by quarter, we continue the journey that we are on.

Unidentified Company Representative Can I just go quickly back to your first question, Greg? I think you also have to think about leverage into the rest of the business and two examples where we are already seeing leverage, one would be as Mark Ibbotson said at the back there, as this grocery and shopping business is developed, it leverages back into the main business because if you're picking early morning, you get a very visible view about the standard. So I think as that rolls out you're going to see leverage into the main business and improving core standards.

And then the second one is the more we work with Neil's team, the capabilities that they develop using data and analytics, there's very little areas of our retail businesses. You can't see applications for that to make us better businesses and Kelly Thompson, who Neil has been kind enough to allow us to do some project work, is now looking at how we can take from the tools that Neil has built and apply them to our retail businesses to get smarter at the way we price in the stores. I think you have to think of leverage not just within that business but across the whole business.

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO We've made so many different announcements that one of the ones that I think got a little bit lost in terms of its significance is the add back of department managers, the structure change where we tweaked what was happening in the zone managers and added back some department managers so that you get ownership in the store. I think it will take some time to pay off but it will actually be one of the more important things that we did. When we were at our best and when we are at our best, actually I ran into an associate today managing sporting-goods that I bet you is an example of this. You run into people in our stores who say this is my shop, my space, my store. I'm in charge of sporting-goods and when they take ownership of it and they have some tenure and start to learn what fishing season means to them and other things like that, the pride goes up. In-stock goes up. End-caps get merchandised in a better way.

So as you are looking for indicators in your in-stores, one of the things you could do would be to go and find the department manager of sporting-goods and one of these other areas and just ask him how their business is. And if you can find somebody and they say the hours matter, they might not be there at 9 PM but you can find one and have a conversation with them about ownership of their business, as that increases, we're going to see our store sales go up.

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Greg Foran - Wal-Mart Stores, Inc. - President and CEO, Walmart US It's a big deal, Doug. There's 8000 I think, Judith. I think I saw Mark Ibbotson here as well. Mark is tasked with not just getting those 8000 department managers along with Kristin who's here and all her team but we are actually looking at basically the 24-hour clock in a supercenter and saying how do we actually get first shift, second shift, third shift really coordinated, structured, loads coming in? Chris is here. He looks after our DC so that we can really run not only an efficient business but one that associates feel that at the end of the day they can complete the tasks that we have asked and we have given them the tools to do it, whether it's technological tools or whether it's training and that is a big process.

Unidentified Audience Member Thanks, Carol. I am from New Jersey too, so it's nothing to be ashamed of. You have talked about becoming better merchants and a lot of that or a part of that is doing better at fresh, perishable, that type of thing. I'm curious are there any areas outside of perishables where fresh can be relevant, whether it be in the pet area, maybe the outdoor seasonal live goods that you can kind of turn the focus in your organization to help drive incremental traffic?

Greg Foran - Wal-Mart Stores, Inc. - President and CEO, Walmart US The simple answer to that is yes. We've got an enormous garden business and you've heard us talk about urgent agenda before and I was just astounded when one of our team, Del Sloneker, was able to share with me just how many dead plants we have in our business and our ability to address that by putting the right hours out there, implementing a watering system through watering mats, making sure the garden center doors are open and getting a focus back on there is significant.

So you could be talking that or I assume Michelle is here. I know that she is leaning into pets, as you mentioned, and making sure that we can do a better job. So part of the secret of what we are endeavoring to do is when we get a good idea, how do you then take the learnings of that and roll that through the business?

Merchandising is the key to our success. We know that even if we run really clean, tidy, friendly stores, that's actually not the DNA that makes Walmart work. What makes Walmart is when you excite customers with merchandise and they go in there and they see something which they just go wow, I just can't believe. You have heard me talk about the $1.68 cami but we were sitting at a session the other day and Andy Barron pulls out a selfie stick and this thing is $5 but it's just a fantastic item. I don't how many we can sell but put it this way, I challenged him that it could be a heck of a lot more than the million that he told me about. So that is the key to our business.

Unidentified Audience Member Thanks and thanks for doing this. I love coming down here for this. Doug, I've got a couple of questions for you. There were a couple of things you said. I'm going to paraphrase because I don't remember exactly how you said them. But one of the things is you talked about how the associate have to get rid of bureaucracy or be superheroes and get rid of bureaucracy. Can you sort of give us examples or tell us how -- I think that's probably been a focus for Walmart since Sam Walton. But is there something incremental on that that you can tell us that maybe happening that may even help drive better same-store sales?

And the other thing that caught my attention is and again with Rod Stewart and everything, I forgot exactly. But I was very excited about that. But you said something about servicing the stores but now we service all the way to the individual customer, something along those lines. Is that right? My question on that when you came to New York, when Carol brought you to New York to the New York Stock Exchange, I think it was over a year ago, you got a question about loyalty program and I think you sort of backed off on the idea of a loyalty program, the idea of really narrowing things down to the individual. And I asked this in the context of -- there is a change that has gone on at Kroger with dunnhumby. Has your mind changed at all on maybe with all the technology you are doing, could Walmart be doing more of segmenting of marketing directly to customers, which might mean like Kroger sometimes does different prices for more loyal customers and things like that?

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Doug McMillon - Wal-Mart Stores, Inc. - President and CEO No, not that.

Unidentified Audience Member Still no on that one.

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO Yes, I will try to explain. I didn't mean to interrupt you.

Unidentified Audience Member No, those are my two questions, bureaucracy and then loyalty and using dunnhumby like data, etc.

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO Yes, as it relates to bureaucracy, I was in a store, it has probably been a year ago now and a department manager in electronics and I were talking and the electronics department did not look very good. And he explained to me that he had been on the phone for five hours with the home office trying to get his traits changed so that some of the problems that we were seeing could be avoided. And not only did he spend five hours on the phone, but the problem didn't get solved.

And what I want our store associates to know is that don't need to put up with that. That is unacceptable. And the job that Greg and Judith and the merchants are doing to flip that around to really be servant leaders is important to our business. When a phone rings or an email comes in from a store associate and they need something and it makes sense and you don't have data to tell you otherwise, we need to do what they are asking us to do. We need to help them take care of customers. And that kind of stuff just gets all over me.

And so part of today was trying to empower them and it's not just today but all the time empower them to put their foot down when something is not right. The operators that they report to need to represent them. I'm sorry to belabor the point maybe more than you wanted but when I was growing up in merchandising and an operator grabbed a microphone, chills went up and down my spine.

Those of you that might know Walmart well know what I mean. There is an accountability to the stores. The stores are where it happens. There are no cash registers in the office.

And when somebody put me on notice on something, my job was to fix it. I didn't know about the problem, figure out what the problem and solve it. So I'm trying to get everybody with that kind of attitude.

As it relates to loyalty programs, a thing that I believe deeply is that you never want to create a situation where customers think they are playing a game. If they believe they have to shop on Wednesday or do this or that, stand on one leg and snap their fingers to get a deal, you have lost. Because they are going to start shopping around even more. The power of Walmart and the power of EDLP was that people stopped making a choice about where they were going to shop because we had earned their trust, not convinced them that we could be trusted but actually earned it. And we did it with price and we did it with the in-stock and we did it with associates and service.

And I always tell the story this way. When I was growing up, I was probably a teenager, maybe 12, 13 years old. I was living in Jonesboro, Arkansas when my mom went shopping, she didn't say I'm going shopping. She said I'm going to Walmart. What do you need? That is what we are after, where you don't even filter in your mind where am I going to go?

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So the deep concern I have about playing games with price for an individual is that you are teaching them not to trust you. That's the opposite of what we want to do.

Now having said that, the world has changed as it relates to analytics and what's possible today. So we talk about is what we do with this massive amount of data that we have that will build trust and loyalty, surprise and delight people, but not with an old-school loyalty card and not with price but with something else? So how do you save on time or introduce them to a new item they didn't know we carried or if they bought this, the solution should include that? How do you give them relevant communication? How do you demonstrate to them that you know them?

We can do that today I think Neil and maybe Rollin or others would want to chime in here and elaborate on that little bit about what's possible. I think what we have already got can be used in a way that won't cost that much more to cause us to feel more relevant to customers and as they shop across mobile to store to pick up etc., we don't want them to feel like they are starting all over again. I've got to give you a new email and password to get in the pharmacy system and I've got to do the same thing to get into grocery, home shopping. That kind of stuff won't work.

We have got to let you know that we actually know you are Robbie because you are an important customer to us, but we won't play games with you and erode trust. Anything to add to that, guys?

Unidentified Company Representative Doug, I'd just add that the word that I hear when you talk about that is frictionless. How do you make it really frictionless for the customer? Creating that data fabric in the background, whether it is on our store transactions or our e-commerce transactions or our membership data, to make sure that we know individuals on a personalized basis is what we have been working on.

Unidentified Company Representative I think that the loyalty card has been considered a proxy for we know you and so we have never believed that we needed to pay you to be our friend but we needed to give you reasons to want to say I'm Robbie when you get to Walmart. And for us to recognize you and to deliver services as a result of the fact that we know who you are. And I think that is the embodiment of the trust that Doug is discussing here, which is that we should be able to create an experience, whether you are on your -- you are walking into a supercenter or a neighborhood market, you are on your tablet or you are on your phone or you are on your desktop at work, that says I know who you are and you are being given a better experience as a result of that.

Data and analytics has taken us to a place now where we don't have kind of the 1.0 version, which is we need a loyalty card. We can know so much more and we often talk about our data efforts, our analytics efforts as been relatively simple. We want to help a customer find one more item. We want to help a merchant sell one more item and we want to help an operator do all that with one must building. We do that and we've got a pretty darn good business.

Greg Foran - Wal-Mart Stores, Inc. - President and CEO, Walmart US Using analytics to help build an assortment if you are one of the merchants in this room is immensely powerful and when I think of all the years that I've been doing this, I have watched us initially literally not even know what we sold because when I first started in retail we didn't even have scanning. And then you started to get scanning and then you started to get Nielsen data. Dave, and you've been through this journey like I have both from a supplier and a retailer side.

It is an amazing -- it's amazing how much data is available at our fingertips now and through traceable tender. Using that data to form customer baskets, which then can drive things like dendrigrams, customer decision trees, substitutability, loyalty, we like that and that forms part of our thinking.

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Matt Fassler - Goldman Sachs - Analyst Matt Fassler, Goldman Sachs. This question is for Doug and possibly Greg. Doug, in your prepared remarks just a couple of moments ago, you alluded to rethinking or re-examining the role of the supercenter over time given the evolving dynamic for the customer. Can you give us some of your early thoughts on how you are thinking about it and over time what you might do to adapt the fleet?

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO Yes, I believe that the stock up trip is still going to be relevant. Customers are always going to want to save time and if you look at what has happened in the UK where we have had grocery home delivery and grocery pick up now for little bit of time relatively speaking, the store is still very important and the opportunity to use the volume from the store to do pickup and delivery and how it all fits together is a bit of a benefit from a math point of view.

But what is on my mind is that -- and we have actually been doing this. The supercenter grew to a really large size. Like in the US for a while we were opening 220 protos -- 220,000 square feet. You saw us naturally learn that that box needed to get smaller and it's drifted back down and today you will hear Greg talk about a 150 proto. So the stores have already gotten smaller. Capital allocation just kind of worked and the data led us that direction.

But I have been here a long time and seen us and others can tell you these stories, we pick some moments in time and kind of reinvented the store. The original Sam Walton discount store had aisles that were too narrow and David Glass helped create a new proto that added without a lot of new linear merchandise space, more aisle square footage and sales went up even though the inventory offer was kind of about the same for the customer.

We then had a supercenter and we tinkered with the supercenter. We changed it. There were times when we moved the look and feel of the brand and customers will get excited about the new version of Walmart coming to town. It has been a while since we have done that and with what's possible today, it's a great time to try and do it.

So we have been talking for example about the parking lots. We now have a fuel offer on most locations. We've got a pharmacy pickup in many locations. Other types of pickup in-store and out of store may happen. We've got lawn and garden sets sometimes in the year and there's a bag goods pickup. The outside of the store needs to be rethought as well as the inside.

So once you get to the inside, there are new emerging categories, smart homes and the connected home, that's one example of a business that is starting to get to scale. There are others. I think it won't be -- by the end of my career, the word hardware probably won't be hanging on a sign above a department. It will be something else.

And so we are doing some tinkering now and Dave and Greg and others are leading what that might look like. We have got experiments going on in more than one country to try and learn and I'm excited about doing that. But underneath it all, I think we are -- we believe because of what we see in the numbers and what we know about customers that stock up will still work and today supercenters have room operationally to improve that give them a longer life. They just have to be a great experience, better merchandise, more empowered department managers, better in stock will lift that for a number of years, buying us time to reinvent to the extent we need to. Anything to add to that?

Greg Foran - Wal-Mart Stores, Inc. - President and CEO, Walmart US We are linked in. Dave has got a set of work going on. We've got a set of work going on in the US. The two teams are coordinating, traveling together. I am excited about the opportunities to reinforce what you said. Do I think a really well assorted, well operated supercenter of around 150,000 square feet is a good shopping experience? You bet. Do we sit here and think about gee, we are struggling to wonder what to put in it? Andy as recently as earlier on this week we can get him to talking about gee, wouldn't you like more space to stick plus sizes and apparel and what about a range of maternity?

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So there's always departments that we are looking to actually give more space to and these ones for sure that you will say we need to contract at what we're doing in digital media and things like that. But I am excited by what we can do with the supercenter and looking forward to being able to show everyone here some of our thinking.

Unidentified Company Representative A couple of other things. When we did the portfolio work at the start of last year as part of your strategy work, Doug, the hypermarkets are still going to represent Euromonitor stats over the next 10 years at $0.33 trillion worth of growth and excluding any consolidation that might occur. So it's still a pretty important format.

I think the other bit is to come back to technology, Neil, and again, as we work more closely with Neil's team and see the capabilities they are developing, our ability to make it easier for customers to shop those the boxes using technology, whether it's to find stuff, coming to the list, navigate around the shop, have separate offers, analyze the space, get the right assortment in there, there's a huge opportunity for us. So I think there's a big future for big stores and there's a big future for small stores.

Bob Drbul - Nomura Securities Intl. - Analyst Bob Drbul, Nomura Securities. A couple questions on e-commerce. I think the first one is over a while ago, Neil, I think the comment was 50% of the growth was new customers. Is there an update in terms of how much new growth is new customers versus what you think is potentially cannibalistic? I was wondering if you could share some more color on membership shipping service, the decision to roll that out in the summer and what we should be looking for with that? And sort of trying that with some competitors have been offering free shipping, what's the current shipping on any free shipping within Walmart.com?

Unidentified Company Representative Yes, I will hit the first one first, Bob, which is when we look at the customer overlap between our e-commerce business and the broader retail business, you generally see some overlap and a lot of growth. So every time we introduce a new service it seems like we have this conversation, which is hey, is it a new customer? Are we deepening the relationship with a customer we already have? And invariably it's a new customer and it's a deeper relationship.

Demographically our online shopper is what you would expect her to be. She would skew slightly younger, slightly more affluent than the broad population, but remember the broad population is effectively the population of the country we're competing in because of our size and scale.

But as we have continued to add the assortment first, the better shopping experience second and now new ideas like shipping pass and grocery home shopping, we are starting to see us appeal to more and more a different customers than maybe we appealed to a year or two or three ago.

So our thinking around shipping passes is it is a component of a larger fulfillment strategy for the customer. So I wanted to ask you to put yourselves in the shoes of a customer and say what do you really want from Walmart? Well, Doug has talked about price, assortment, access, and experience. Basically you want to trust us to save you money. You want to get what you want from us. You want to have a good shopping experience and you want it to be there for you when and where you want it to be. That is essentially what you want from us.

So our fulfillment strategy, both direct to your home and at the stores is meant to solve that. Not every customer wants the same thing. Some want to go to a store. Some want at home and more interestingly, not every customer wants the same thing every time. So that's the vision of our integrated offering.

So whether you would like it picked up in one of our stores, whether you're talking about a general merchandise item or a grocery home shopping in the markets where are we're testing that, or you want unlimited shipping at a reliable low-cost, we can provide you that as a service. We're not asking you the customer to make a choice between or. We're trying to put Walmart where you are.

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And so our choice to launch this summer with shipping pass, you probably have seen the press around this. The price point is $50. We feel that is a very attractive price point, three days or less shipping. Customers have told us they want value and they want reliability and those are the most important things.

So we've created -- it is an invitation-only list right now. We have a long list of customers that have signed up to be on that invitation list and we've announced it will start to peel people off that invitation list and get it started. And we are going to meter that process so that we make sure we get it right for the customer.

So at the end of the day, we want to have an outstanding experience for that customer. Taken all together now you've got a Walmart where you are that's got -- that you can direct via your phone, your tablet, or your computer or by walking through the front door of one of our stores, and we can serve you in ways that literally no other retailer online or off can. We're really, really excited about that and you are starting to see it all kind of come together, which we are proud of.

Paul Trussell - Deutsche Bank - Analyst Paul Trussell, Deutsche Bank. Good afternoon. You had a great clip earlier today at the shareholders meeting of Sam Walton kind of outlining his 10-year plan for sales growth. And that was followed by in each of your presentations the showcases of a lot of takers, sales growth, earnings growth, dividend growth. I would argue that there's a little bit less visibility of what the future CAGR is to be from Wal-Mart Stores, Inc.

So Charles or Doug, could you just maybe comment a little bit on helping us understand how you think about the next three to five years, whatever the timeframe you want to outline? Obviously acknowledging temporary items, whether it's foreign exchange and other necessary investments that need to be made, but how do we think about the P&L algorithm with Wal-Mart Stores, Inc. going forward?

Charles Holley - Wal-Mart Stores, Inc. - EVP and CFO I will start, and you know I came in the Company in 1994. We were making a lot of investments. And, Paul, I don't know if you were following the Company then. I know there are two or three of you that were at least. And if you remember, we had done the PACE acquisition at Sam's. We had just entered Canada, acquired the 100 Woolco stores that were bankrupt basically, and they were failing horribly. We just started really in the food and supercenters and trying to figure that business out and we were transforming the Company.

I think the questions you asked were the same kind of questions the analysts were asking back in 1994.

I will tell you this. I can't give you the CAGR in the next five years, but over the next two to three years, there's a lot of transformation for our customer that we think is extremely relevant and extremely important for that sustainable growth. Are you going to grow 10% a year? At our size, the law of large numbers does affect you. However, can you grow $10 billion, $20 billion a year? Absolutely you can. Doug?

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO I think you said it well. I think, Paul, your point is a really good one and I kind of feel the same way. There are some forecasts that we have done that we don't want to share right now. Maybe October is a point in time where we can do a better job of being transparent.

When you look at the situation we were in with our biggest number, the US supercenter comp, going through some quarters where that number was negative was a problem. So you can see us reacting to drive that number up and that is going to be a foundational number for the business for a really long time. And because of the size of the Company, you can get excited about some of the big percentage increases we see in parts of our business and they still don't make a difference as it relates to the overall base, which is Charles's point about why it won't be 10% in the future.

Acquisitions are hard to forecast. We've gone through a period time here, Dave, where you have outlined it very well, which you can speak to, but different phases of international and we have thought -- what are the right words here? I think it looked easier to us in international in some cases

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2015 / 5:30PM, WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session than it actually was. Real estate is more challenging. Other things are changing and we have now over the last few years I think been disciplined and rational about capital allocation, capital investment, how we model projects and how we think about our overall investment plans. And that has brought down the growth rate.

So it was a bit of foundational work, Jeff, including the focus that we had on compliance over the last few years. I think we slowed down partially intentionally and partially just a reaction to the situation we were in to try and make sure our foundations were strong. And as those foundations are improved and we layer on some of these small things now that are big percentage growth but don't move the needle, as those continue to scale, and Neil's business has gone from really small to pretty big now and growing again this year in a pretty significant way, that will start to move the needle more.

So I think our own visibility and confidence into what the number is going to look like should improve some again if the external environment doesn't flip upside down on us in some way. I wish you could tell me what fuel prices were going to be in 12 months. That would help a lot because the equation looks different at $4 a gallon than it does where we are today.

So I understand the challenge that you are giving us and don't disagree with it and I think we're trying to be as transparent as we should be appropriately without overpromising things. But more importantly, I think we are doing what we need to do to make sure our foundation is where we've got big businesses are right, so we can count on them, and we are investing in some new things that will help us five and 10 years from now and beyond.

So I'm sure that answer is not completely satisfying to you and we will think about what we might do to help firm that up some more. But that is how I feel about it.

Unidentified Company Representative I want to add one thing. I mentioned sales, can we add $10 billion to $20 billion a year. I think we can. We are in a heavy investment period right now for a couple of years. Can we grow at a higher rate our cash flow than our sales through some period in the next five to eight years? Absolutely we can. Once we start making some of the initial heavy investments, I think we can lever and have a nice cash flow increase.

Simeon Gutman - Morgan Stanley - Analyst Thank you, Simeon Gutman, Morgan Stanley. My questions following onto that one, you mentioned foundational work and Charles mentioned some investments. So you have been in this seat, Doug, for a little more than a year and this is a year of transition, it is a year of investment. Can you talk about the right level of investment for the business? Granted we have accelerated these for a year. That might agree with employees, it might be tolerable for shareholders but how do you -- based on the pace of investment and the change that is occurring, how do you know the year or two is the right amount? You are looking at this thing probably for the next 10. You could potentially go deeper but there's a lot of constituents and things to balance.

So can you just talk about the right pace and what is sort of the right level in investments going forward?

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO I think the reality of the situation, Simeon, is that the cycle times of those decisions are faster than they used to be and we need to be open-minded to changing them annually. Probably that is about as fast as we can change it given the decisions that we need to make. But I think this is going to be in every year kind of decision.

And when you think about e-commerce, there are different buckets of investment. I will use that as an example. We've got infrastructure investments to make not only in the US but potentially around the world to build out the supply chain that we want to have. There are technology investments and then there's this income statement pressure of a business that doesn't actually pencil yet. The margins don't cover expenses and so those

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2015 / 5:30PM, WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session create a loss. I think we need to have a ton of pressure on that third bucket. We need to find ways to manage mix to deliver profitability from an income statement point of view, but at the same time be willing to do the things that are necessary for the long-term in terms of capabilities and infrastructure.

So I think the way I feel about the short term is that we are putting pressure on our earnings as we invest in people and technology. Every year we will look at that and make recalibrated decisions. For the next three years, it's pretty clear to me that we are going to want to invest in new capabilities, infrastructure and technology. I can't really see farther beyond that and eventually we're going to want to start to think about how we manage pricing. We made a decision which I think we shared with you pretty openly in October. We're going to work on store experience and once that helps give us an experience that we are proud of and we want customers to come in, then we may do other things but we've got to get them all in the right order.

Michael Lasser - UBS - Analyst Michael Lasser, UBS. Doug, can you give us some assessment maybe a grade on each of the various attributes that you've been can emphasizing in your messaging, value, customer experience, access. I know I'm forgetting one or two but it will give us a sense for how far along you are in the progress and how they compare, how the enterprise is doing on those attributes one versus another.

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO Yes, I think the directional arrow on experience and access is up into the right and we're making good progress as it relates to that. On assortment, in some countries in the US given the combination of stores and e-commerce, I think we can feel pretty good about the pace that Neil is leading as it relates to that in particular.

On price, there's a bit of a kind of a steady-state. We have a price leadership position. We measure it. We are aware of it, but we need to do some things right now that require investment. There are priorities before we get to that. So I don't think we're making that much progress on price right now but that's deliberate.

Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations Okay, we will take the next one from Bud and Michael Lasser, who just asked the last question. We just want to wish him happy 40th birthday today.

Unidentified Company Representative Did someone have to explain to you who Rod Stewart was?

Unidentified Audience Member (inaudible b microphone inaccessible)

Unidentified Company Representative That did hurt. I was with Robbie. I was excited to see Rod Stewart and I knew who Carol Burnett was and some of the kids were like Carol who? You were excited to see Mariah Carey?

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Unidentified Company Representative Boy, she can sing. I don't want to follow her ever again.

Budd Bugatch - Raymond James & Associates - Analyst Budd Bugatch, Raymond James. Again thank you for today and a terrific today. I really wanted to go to price access assortment and experience worldwide because we talk -- most of what we think about domestically but maybe we could run through the rest of the world and David could answer some of that too and talk about progress in some of the areas where we are having problems Brazil, China as well and give us a rundown on that current. Thank you.

David Cheesewright - Wal-Mart Stores, Inc. - President and CEO, Walmart International Sure, we said last year I think that we had three priority markets and three tasks that we wanted to achieve. We wanted to create a platform for sustainable growth in China and we wanted to turn around our business in Brazil and we wanted to re-energize our business in Mexico. So maybe I'll talk to those three.

I think in China, we've made a lot of progress but there's still a lot more to do and a couple of highlights. 18 months ago we had 26 different buying offices. We're now down to one. Now clearly that gives us huge benefits in terms of buying scale, synergy. As with everything, you move the pendulum too far one way and we are probably (inaudible) a bit of local assortment and we're adding that back in again. As you heard at the session this morning, the Sam Walton Entrepreneur of the year was Leslie Smith and she has built from scratch in two years a chilled, frozen, and ambient distribution network. That is the first of its kind in China. That's going to be a huge advantage in terms of product security and getting fresh product quickly to customers.

And then a third bit I'd say in China is talent. Greg left a nice legacy but he started to build a team. We continue to invest a lot of talent in that market and to give you an idea of the commitment, Maggie Sans, who was my lead on international corporate affairs, we said China is so important that we have asked Maggie to go move to Beijing. She's living there full-time working on government relations and corporate affairs in China. So I think good progress there.

In Q1, we shared a positive comp in that markets, first time for quite a while, so continued progress. We're still seeing tough headwinds with a lot of the austerity work but relative to market, I think we are performing quite nicely there.

Mexico is very positive. You would have seen the results that Walmex published yesterday, very strong comps. And I think a great example of our attitude where we are prepared to slow down to be a successful business in the long term. We have opened a lot of square footage in Mexico over the years and it's very easy when comp sale starts slowing to say well, I will just open up some more square footage. I think Doug started this and clearly I have carried on over the last couple of years. We've slowed down, taking a long hard look at that business. An example that I shared earlier on with Sam's Club is a great example of how we're working now. That Roz was kind enough to give us one of her best people in Todd and we sent him down there. He made a good assessment of the market, listened to lots of members, put a simple plan in place and we are now seeing 6.8% comp in that business over the last quarter.

So I'm really excited about Mexico. There's some following wins in terms of always helpful for the US economy and some of the tax changes there, but it is a big, profitable business for us and having that moving well makes my life a lot easier.

And then finally Brazil, again good progress. I think the highlight for me is the talent that we have built in that market. Pretty much the whole top team now is new and we have worked really hard to find people who are experienced in Brazil, particularly have experience of turnaround and have plenty of gray hairs. They've been around the block. They know what to do in tough times because that is a tough business. I think the progress they've made in terms of integrating our systems, we did 154 stores last year. That is all the South. We will do the rest of the North stores over the tail end of this year and then we will have everybody on one level platform, which will be a huge advantage in a country of that complexity.

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Our sales have been moving nicely, although the economy is slowing down quickly. We were forecasting about a positive 2 GDP at the start of the year. It's now about minus 2 and lots of uncertainty around that.

We have really made good progress in trying to get our hands around the complexity of taxation and we're making progress on labor claims, but there's lots more to go in Brazil. So I think in all three we set out some clear priorities. We're making good progress but there's plenty more to do.

Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations I think we have time for one more question and Oliver, you get the last one.

Oliver Chen - Cowen and Company - Analyst Thanks, Carol. Thanks for having us. Oliver Chen from Cowen and Company. Regarding the people change, Doug, in terms of the opportunity for the department store managers and the greater sense of ownership, what are your thoughts on which departments might be lower-hanging fruit and what are the nearer-term opportunities for that versus longer-term?

Also you spoke about speed a few times in the presentation today. I'm just curious about how we should think about the prioritization of what's possible with speed if you are referring to supply chain, customer experience, or what part of retail would we think about as you engage in the agility side of the equation?

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO Greg or others may have something to add on the department managers but there is a big difference between running a general merchandise seasonal category and stocking breakfast cereal. And that is the difference that needs to big acknowledged in our structure to make sure that we are on top of it. Apparel is very different than running lawn and garden. So the plan we have addressed is that, what they get compensated, what kind of tenure you build, what kind of experience they have to deal with those things is what's on our mind.

What was the second question again? It's been a long day.

Oliver Chen - Cowen and Company - Analyst The theme of speed across the market whether it be the supply chain side or in the product development side or the customer experience side?

Doug McMillon - Wal-Mart Stores, Inc. - President and CEO All the above. I don't know how you guys feel and one of you may want to comment but we are moving faster now than we were a year ago on a number of things, decision-making processes. They can be better but we are moving faster and we all feel the stress and pressure of that.

And why don't I just go ahead and say this? One of the things that can happen in a big company is you can find yourself in meetings and you can have someone say that surprised me. I had not heard that before and that creates an environment where people want to socialize with you before meetings so that you never get into a meeting and say I'm surprised. That slows things down. We have been talking as a team about getting comfortable being surprised and we have been laughing at each other at times because you might have a tendency to say it or feel that way and we're trying hard not to do that because we want people to make decisions and move with speed and not have the organization run in a way that causes it to slow down.

And that is hard in the Company of this size and it takes teamwork to do it. But whether it is infrastructure or the other pieces, we have got to be able to move faster, make decisions, build the capabilities that we need, and we are now informed by a set of strategic choices that we worked

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©2015 Thomson Reuters. All rights reserved. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 05, 2015 / 5:30PM, WMT - Wal Mart Stores Inc 2015 Management Update for the Investment Community and Q&A Session together last year to make that enable people to move faster and get on this stuff. And I'm not satisfied yet but I think we have made progress since last year.

David Cheesewright - Wal-Mart Stores, Inc. - President and CEO, Walmart International Another good example of speed to finish with Doug, so on Wednesday we had our International Associates conference and it was a great, great celebration and I think you all sort of had fabulous international vests on with all the flags, so I gave him a vest and said you get them on one condition, that I've been going to the shareholders for 14 years now and I'm tired of Sam's making more noise than us. So you can keep the vests as long as you make more noise than Sam's. If you don't, I'm going to come and hunt you down and take your vests back. The speed of communication is by that afternoon Roz had somehow got hold of a video of me making that speech and when she had her meeting, she played it to her team to motivate.

Roz Brewer - Wal-Mart Stores, Inc. - President and CEO, Sam's Club Absolutely. That's what we do at Sam's.

David Cheesewright - Wal-Mart Stores, Inc. - President and CEO, Walmart International So we can be pretty speedy.

Unidentified Company Representative Roz, anything you want to comment on?

Roz Brewer - Wal-Mart Stores, Inc. - President and CEO, Sam's Club Yes, the one thing I will comment a little bit towards this whole speed issue is we are really trying to build a muscle in the Company around test and learn and that makes us not only faster but better because we're making decisions where we can test and react and move forward pretty quickly. It is pretty comprehensive because if we learn something that Neil is doing from a technology standpoint in Walmart Labs it just doesn't live at Sam's. It lives in International and other parts of the Company. So this speed piece takes on a whole new life for us and I think it's a new muscle that you will see us build.

Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations Charles and Doug, any final comments?

Charles Holley - Wal-Mart Stores, Inc. - EVP and CFO No, just again we do appreciate all your interest in our Company and traveling a long way to come see us. We will see you in New York in October.

Carol Schumacher - Wal-Mart Stores, Inc. - VP, Global Investor Relations Thank you, that's October 14 and one last thing. For those of you who are looking for the transcript, we're going to try to turn the transcript from this session as quickly as possible. We will try to get it done toward the end of the day but if not, probably look for it over the weekend and Monday morning absolute latest it will be available on our website. Thank you all for coming and this concludes the webcast.

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