Wal-Mart Stores, Inc. (WMT)

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Wal-Mart Stores, Inc. (WMT)

F2Q10 Earnings Call

February 18, 2010 7:30 am ET

Executives

Carol Schumacher - Vice President of Investor Relations

Mike Duke - President and CEO

Charles Holley - EVP of Finance and Treasurer

Eduardo Castro-Wright - Vice Chairman

Doug McMillon - President and CEO of Wal-Mart International

Brian Cornell - President and CEO of Sam’s Club

Tom Schoewe - Executive Vice President and CFO

Presentation

Welcome to the Wal-Mart earnings call for the fourth quarter of fiscal year 2010. The date of this call is February 18, 2010. This call is the property of Wal-Mart Stores, Inc. and intended solely for the use of Wal-Mart shareholders. It should not be reproduced in any way. You may navigate through this call as follows: Press one to rewind 10 seconds, press two to pause and press eight to resume playing. Press three to fast forward 10 seconds.

This call will contain statements that Wal-Mart believes are forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and intended to enjoy the protection of the safe harbor for forward looking statements provided by that Act. These forward looking statements generally are identified by the use of the words or phrases anticipate, are expecting, expect, forecasting, guidance, may affect, plan, will abate, will assist, will be, will be available, will broaden, will continue, will drive, will enable, will have, will see, will yield, or a variation of one of those words or phrases in those statements or by the use of words and phrases of similar import.

Similarly, descriptions of our objectives, plans, goals, targets, or expectations are forward looking statements. These statements discuss, among other things, the anticipated comparable store sales for our Wal-Mart US segment and for our Sam’s Club segment for the current 13-week period, our anticipated diluted earnings per share from continuing operations for the current fiscal quarter and fiscal year 2011 as a whole, that such guidance is based on the assumption that currency exchange rates will remain constant at current levels, our anticipated tax rate for fiscal year 2011, the possibility of quarterly fluctuations in that tax rate, the factors that will affect that tax rate, the amount of the company’s expected capital expenditures for fiscal year 2011, continued strong growth from Wal-Mart’s international segment, especially in Brazil and China, the streamlined structure at Wal-Mart US enabling Wal-Mart to grow in new markets, leverage scale and offer new opportunities to associates, Wal-Mart’s new global sourcing team, enabling Wal-Mart to leverage the scale of its global merchandising organization, reducing costs and driving quality throughout its supply chain, the integration of Wal-Mart’s dot com organization with its store broadening the reach of the Wal-Mart brand, some of the organizational changes at Wal-Mart yielding immediate results, sales in the first quarter of fiscal year 2011 being difficult, sales improving as fiscal year 2011 progresses, Wal-Mart continuing to make a difference in communities around the world, Wal-Mart continuing to take a leadership role on sustainability, growth, leverage, and returns, continuing to be focal points for Wal-Mart, Wal-Mart not anticipating any significant year over year cost increase for its financial systems, the continued target for Wal-Mart’s debt to capitalization ratio, our Wal-Mart US segments stores having certain television models available by April, 2011, global sourcing being the anchor for cost of goods sold, and margin and giving our Wal-Mart US segment a competitive advantage to reduce prices, our Wal-Mart US segments expectation for the completion of certain store remodels, healthcare not being expected to be a large expense headwind for our Wal-Mart US segment in fiscal year 2011, food deflation pressures abating beginning in the first half or the second quarter of fiscal year 2011, the Wal-Mart US segment continuing to leverage the strength of its brand and price leadership position, the global merchandise centers driving efficiencies in certain categories, the core of our Wal-Mart US segments strategy being to increase direct sourcing for Wal-Mart’s private brands, our Wal-Mart US segments plan to allow customers to experience the Wal-Mart brand wherever and whenever they want, EDLP being expanded across all merchandise categories, at the SEIU Limited, our Sam’s Club segment having a continuous focus on expense leverage, our Sam’s Club segment continuing to look for innovative ways to drive traffic, membership renewals and upgrades, our Sam’s Club segment continuing to increase the pace of its remodels, the expectation that deflation will be seen in many categories and markets where Wal-Mart operates and that comparisons will get easier as fiscal year 2011 progress, Wal-Mart continuing to make it a priority to leverage SG&A throughout Wal-Mart and the anticipation and expectations of Wal-Mart and its management as to other future occurrences, trends and results.

These forward looking statements are subject to risks, uncertainties and other factors, domestically and internationally, including, general economic conditions, geopolitical events and conditions, the cost of goods, competitive pressures, levels of unemployment, levels of consumer disposable income, changes in laws and regulations, consumer credit availability, inflation, deflation, consumer spending patterns and debt levels, currency exchange rate fluctuations, trade restrictions, changes in tariff and freight rates, changes in costs of gasoline, diesel fuel, other energy, transportation, utilities, labor and healthcare, accident costs, casualty and other insurance costs, interest rate fluctuations, financial and capital market conditions, developments in litigation to which Wal-Mart is a party, weather conditions, damage to our facilities resulting from natural disasters, regulatory matters, and other risks.

We discuss certain of these matters more fully in our filings with the SEC, including our most recent Annual Report on Form 10-K, and the information on this call should be read in conjunction with that Annual Report on Form 10-K, and together with all our other filings, including current reports on Form 8-K, which we have made with the SEC through the date of this call.

We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward looking statements we make in this call. As a result of these factors, changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from anticipated results expressed or implied in these forward looking statements. The forward looking statements made in this call are made on and as of the date of this call, and we undertake no obligation to update these forward looking statements to reflect subsequent events or circumstances.

The comp stores sales for our total US operations and for our Sam’s Club’s segment discussed on this call exclude the impact of fuel sales at our Sam’s Club segment. That measure, our return on investment, free cash flow and adjusted earnings per share, adjusted EPS, and amounts stated on a constant currency basis as discussed in this call may be considered non-GAAP financial measures. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP measures are available for review on the Investor Relations portion of our corporate Web site at www.Walmartstores.com/investors or in the information included in our current report on Form 8-K that we furnished to the SEC on February 18, 2010.

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