Carol Schumacher - Vice President of Global Investor Relations Doug McMillon - President and Chief Executive Officer, Wal-Mart Stores, Inc. Claire Babineaux-Fontenot - Executive Vice President and Treasurer Greg Foran - President and Chief Executive Officer, Walmart U.S. David Cheesewright - President and CEO, Walmart International Rosalind Brewer - President and Chief Executive Officer, Sam’s Club Neil Ashe - President and Chief Executive Officer, Global eCommerce Charles Holley - Executive Vice President and Chief Financial Officer

Hello, this is Carol Schumacher, Vice President of Global Investor Relations for Wal-Mart Stores, Inc. Thanks for joining us today. The date of this call is February 19, 2015. This call is the property of Wal-Mart Stores, Inc. and is intended for the use of Walmart shareholders and the investment community. It should not be reproduced in any way. [Operator Instructions] This call will contain statements that Walmart believes are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and that are intended to enjoy the protection of the safe harbor for forward-looking statements provided by that act. Please note that a cautionary statement regarding the forward-looking statements will be made following Charles Holley’s remarks in this call. Before we get under way, we apologize for the delay in this morning’s release. We normally release our earnings at 6:00 AM Central Time, or 7:00 AM Eastern. However, because we wanted to share some exciting news about our U.S. associates with them first, we delayed the release until now. So, this morning, we have several pieces of news to share with you. First, we have details on the fourth quarter and the full year results for fiscal year 2015. Second, as we normally do, we provide guidance for the full year and the first quarter of fiscal 2016. Third as I mentioned, we’re announcing a new wage structure for hourly associates in Walmart U.S. stores and Sam’s Clubs. This new initiative, including training and educational programs, will affect current and future hourly associates in the United States. And last, we’re announcing our annual dividend for fiscal year 2016. You’ll hear more from Doug and our leaders about each of these items. All materials related to these announcements are available on our corporate website, stock.walmart.com.…

Thanks Carol, and good morning, everyone. Overall, we had a good fourth quarter to close out our fiscal year, with underlying earnings per share of $1.61. Walmart U.S. delivered better than expected comp sales. Sam’s Club had its best performance of the year, and Walmart International had solid sales and profitability. The dedication of our associates around the world to serve customers was evident again in this busy fourth quarter. Now clearly, our sales benefitted from customers having more spending power due to lower gas prices in most of our large markets. In addition, product inflation and more favorable weather were a tailwind to U.S. comp sales. But, like many other global companies, we faced significant headwinds from currency exchange fluctuations. So, I’m pleased that we delivered fiscal year revenue of nearly $486 billion, but we’re not satisfied. We have work to do to grow the business. We know what customers want from a shopping experience and we’re investing strategically to exceed their expectations. Our priority is to run great stores, clubs and e-commerce everywhere we operate. And we’ll continue integrating our stores with our e-commerce and mobile commerce business. One of our most important priorities this year is improving the customer experience. Today, we announced a bold new initiative on pay and training to invest in our U.S. store and club hourly associates. For several months, our leadership teams have been developing and testing new ideas to reward associates for their service to our customers and give them clearer pathways for opportunity. We’re pursuing a comprehensive approach to our hiring, training, compensation, scheduling programs and store management structure that is sustainable over the long term. Approximately 500,000 full-time and part-time associates at Walmart U.S. stores and Sam’s Clubs will receive pay raises in the first half of the current…

Thanks, Doug. Today, I’ll highlight some items in the company’s consolidated financial statements. Further details are available in the accompanying presentation posted today with this transcript. Before I begin, let me remind you that last year, the company’s fourth quarter and fiscal 2014 diluted earnings per share from continuing operations attributable to Walmart EPS were negatively impacted by certain discrete items totaling $0.26. The company’s fourth quarter and fiscal 2015 EPS were negatively impacted by discrete items totaling $0.08. A wage and hour litigation matter previously disclosed resulted in a charge of $0.05 per share, and store closures in Japan resulted in a charge of $0.03 per share. A reconciliation of company’s underlying EPS is included in our earnings press release issued prior to the call. In the fourth quarter of fiscal 2015, underlying EPS was $1.61, compared to last year’s underlying EPS of $1.60. Reported EPS was $1.53, compared to last year’s EPS of $1.34. As you can see on Slide 2, total revenue for the fourth quarter was $131.6 billion. Consolidated net sales increased $1.9 billion or 1.4%, and membership and other income declined 0.5%. Recall that during the fourth quarter of last year, membership and other income was positively impacted by a $24 million gain from the sale of certain U.S. real estate assets. Total revenue for the year grew to $485.7 billion, as consolidated net sales increased $9.2 billion, or 1.9%, and membership and other income grew 6.3%. Consolidated operating expenses increased 0.5% for the quarter, and 2.3% for the full year. It is important to remember that operating expenses were negatively impacted in the fourth quarter and for the full year by the discrete items I mentioned earlier. Additionally, FCPA and compliance related costs were $36 million in the fourth quarter, comprised of $26 million…

Thank you, Claire. When I joined the Walmart U.S. team six months ago, we laid out specific objectives for the second half of fiscal 2015. We knew we needed to become better store managers, to fix some of the basics in our stores. We spent the last several months focusing on core fundamentals such as inventory, merchandise returns, shrink, markdowns and wage management. By focusing on these urgent agenda items and using the tailwinds we’ve seen from an improving economy, we drove positive momentum in our business. We achieved what we set out to do in the short-term, but we’re not satisfied and recognize that we have more work to do to accomplish our longer term goals. Before discussing our results, I want to provide more detail on the exciting announcement we made this morning regarding associate pay and store structure. As Doug mentioned, we believe our people make the difference and we’re committed to this philosophy. At Walmart, we already provide an opportunity for jobs to become careers in retail. We want to continue to improve that opportunity and to provide it to more associates. The changes we are making are based on our core principles and will make Walmart a better place to work and shop. First, we believe associates equally value their hourly rate and hours worked. We’re happy to announce improvements to both aspects of associates’ earnings opportunity. Current and future associates will benefit from this initiative, which ensures that Walmart hourly associates earn at least $1.75 above today’s federal minimum wage or $9 per hour in April. And current associates will earn $10 per hour or higher by next February. Additionally, we are piloting a scheduling system that will create stability for associates who want predictable hours and the flexibility for those who prefer to…

Thank you, Greg. I’m pleased with our performance in International, as we’ve remained committed to the strategic priorities I outlined a year ago. We’ve been able to produce solid results and operating income growth, despite operating in a very challenging, competitive retail environment. As one of our key priorities, we continue to accelerate our eCommerce business by offering multiple ways for our customers to shop, whether in stores, online, pickup or mobile, we aim to give our customers the ability to shop in whichever way they want. We’ve also made progress in building a platform for sustainable growth in China, and have experienced success in improving our overall price perception, as well as the quality of our fresh offering. We also continue to make progress on our commitment of actively managing our existing portfolio. You’ve seen us make strategic decisions such as closing underperforming stores and divesting non-core parts of our business in order to strengthen our foundation. Our markets remain focused on key strategic priorities, and I’m optimistic about our position going into the New Year. Now for our financial results. In the fourth quarter, net sales grew 3% on a constant currency basis. However, with the U.S. dollar at historic highs, we faced significant currency headwinds of $2.6 billion, resulting in a 3.9% sales decline on a reported basis. Of our five largest countries, Mexico, Canada, and Brazil delivered positive comp sales for the quarter. Comps declined in both the UK and China due primarily to food deflation and intense competition in the UK, and government austerity measures and deflation in key categories in China. Comp sales growth was strong in all other markets as well. As Claire mentioned, there were certain discrete items disclosed in the previous year, which have a significant impact on our year-over-year operating…

Thanks, Dave. I would like to start by echoing our excitement at Sam’s Club, regarding the company’s announcement today, to boost the starting wage for our full-time and part-time hourly associates. We believe we provide our associates with an excellent opportunity to pursue careers in retail, because our business model at Sam’s Club differs from Walmart stores, beginning in the first-half of the fiscal year, we will offer a starting hourly wage of $9.50, which is above the federal minimum wage, unless there is a higher state-mandated minimum wage. This will ensure all Sam’s Club hourly associates are paid above the federal minimum wage. We believe this investment in our associates will help us attract, retain, and develop top-notch talent, and will allow us to continue to deliver outstanding, award-winning service to our members. Now on to Q4. I want to thank our Sam’s Club associates for delivering the best performance of the year this quarter, providing momentum going into fiscal 2016. Over the last four quarters, we saw meaningful acceleration culminating in a comp sales increase without fuel of 2% for the 13-week period ended January 30. Strong holiday execution combined with our strategic investments in member value, merchandise relevance, and the integration of digital and physical, boosted our performance. Our investments in membership value initiatives enabled us to grow membership income by over 8% this quarter. Our Plus penetration is at historic highs, as Plus members are seeing the benefits from our Cash Rewards program. Across the club, all members are seeing the benefits of Instant Savings and the 5/3/1 MasterCard. We will anniversary the introduction of Plus Cash Rewards and the 5/3/1 MasterCard in June 2015, so we expect these programs to continue driving membership income moving forward. Sam’s net sales, including fuel were $14.9 billion, up…

Thanks, Roz. Q4 was an important quarter for us, not just because it is the biggest quarter of the fiscal year, but because our key investments started to play a major role in the business. Most notably, our global technology platform Pangaea, and our U.S. fulfillment network stood up under the holiday volumes of U.S. customers. At the same time, we saw good sales in markets around the world. For the full year and for Q4, we outgrew the e-commerce market globally. Overall, Walmart grew e-commerce sales by 22%, benefitted by a 25% increase in gross merchandise value, or GMV for the year. In Q4, we grew sales 18%, on GMV growth of 20%. An increase in third-party marketplace volumes in the U.S., Brazil and in China contributed to the growth in GMV. Greg, Dave, and Roz talked about the e-commerce successes in the quarter, but it’s worth recapping. In the U.S., we had record sales on Cyber Monday and Cyber Week and more than 1.5 billion page views over the five days between Thanksgiving and Cyber Monday. Samsclub.com had strong double-digit comps on Thanksgiving and on Black Friday. On Singles Day in China on November 11, Yihaodian’s GMV growth was in the high double digits, and on December 21, we surpassed traffic from Singles Day. In the UK, ASDA continued to make Click and Collect easier for customers in stores and with new pick up points at petrol stations, tube stations and other locations. We now have Click and Collect in all ASDA stores. In Brazil, we saw our strongest sales quarter, with high double-digit sales growth. What excites me most is the progress we’ve made in building out our ability to serve customers across digital and physical. We’re investing in four areas; our global technology platform, our next…

Thanks, Neil. I’ll wrap up today’s discussion by providing some thoughts on the company’s performance. For the year, we delivered $486 billion in revenue. E-commerce sales grew approximately 22% to more than $12 billion. We delivered fourth quarter underlying earnings per share of $1.61 and reported earnings per share of $1.53. Recall that our underlying earnings per share reflects the performance of our business without the impact of discrete items. Now, as a reminder, our fourth quarter guidance of $1.46 to $1.56 included the discrete item of the Japan restructure, which was approximately $0.03 per share. Walmart U.S. generated a very solid 1.5% comp in the fourth quarter. Although the strong U.S. dollar caused a negative impact of over $5 billion on revenue, Walmart International delivered very good sales growth of nearly 4% on a constant currency basis for the year. And, Sam’s Club continued to drive membership income again this year, with growth of over 10%. Now, on the other hand, as I just mentioned, currency negatively impacted revenue by more than $5 billion. Although not as high as we anticipated, healthcare expenses were a headwind for Walmart U.S. during the year. And our reported earnings per share were negatively impacted by $0.08, due to the discrete items that Claire mentioned earlier. Before turning our attention to guidance for the first quarter and for fiscal year 2016, I would like to remind you that our outlook for the future is based on the enterprise strategy we discussed at our October investor conference. Our clear focus on driving sales through price, assortment, access and experience will continue to guide the investments we make to better serve our customers. Our guidance today assumes several important factors, including the economic conditions in several of our largest markets and currency exchange rates remaining…

This call included certain forward-looking statements that are intended to enjoy the safe harbor protections of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements generally are identified by the use in those statements of the words or phrases anticipate, expect, forecast, guidance, plan, project, will add, will affect, will be, will continue, will impact, will open, and will remain, variations of such words or phrases or words and phrases of similar import. The forward-looking statements in this call included statements regarding management’s forecasts and expectations for Walmart’s diluted earnings per share from continuing operations attributable to Walmart for the first quarter of, and all of, fiscal year 2016; U.S. comparable store and club sales for the 13-weeks ending May 1, 2015; percentage growth in Walmart’s consolidated net sales and worldwide e-commerce sales in fiscal year 2016; the expected impact of currency exchange rate fluctuations on Walmart’s consolidated net sales for fiscal 2016; the range of Walmart’s capital expenditures and square footage growth in fiscal year 2016; the range of per share investment in Walmart’s new U.S. wage structure and associate initiatives for the first quarter of, and all of, fiscal year 2016; the range of expected FCPA-related expenses in fiscal year 2016; the range in which Walmart’s effective tax rate will fall in fiscal year 2016; opportunistic share repurchases by Walmart continuing in fiscal year 2016; continued e-commerce investment in major e-commerce markets and the range of the per share incremental investment in e-commerce in fiscal 2016; heaviest investment in e-commerce occurring over, and operating losses in the e-commerce business moderating near the end of, a particular period and various results of Walmart’s investment in e-commerce; Walmart U.S.’s operating income being pressured or affected by investments in people, changes in mix of merchandise sold, store…