Wal-Mart Stores, Inc. Global Procurement David Blackwell Vice President & Chief Financial Officer, Global Procurement

Wal-Mart’s Global Retail Presence Argentina 12 units Brazil 295 units Canada 278 units Puerto Rico 54 units China 56 units Mexico 780 units Germany 88 units S. Korea 16 units UK 317 units U.S. 3,808 units Japan 397 units Units 3,864 U.S. 2,670 International 6,534 Worldwide Units 3,864 U.S. 2,670 International 6,534 Worldwide Central America 372 units 1.8 Million Associates

Italy Dubai Turkey India Sri Lanka Dhaka Chittagong Thailand Singapore Indonesia Philippines Taiwan Shenzhen Putian Dongguan Korea Shanghai Hongkong Global Procurement Worldwide Presence 28 Field Offices Mexico City Spain Bentonville Pakistan Guatemala HondurasNicaragua Brazil Chile U.K. Egypt

Surety of Supply  Diversification of Supply Base  Right Suppliers  Capacity / Infrastructure Shift from Cost to Corporate Value  Quality & Relevance  Speed to Market  Business Sustainability Surety of Supply  Diversification of Supply Base  Right Suppliers  Capacity / Infrastructure Shift from Cost to Corporate Value  Quality & Relevance  Speed to Market  Business Sustainability Key Sourcing Strategies / Focus

Country Core Competencies Stability – Political & Fiscal Infrastructure  Physical  Legal Recourse / Investment Climate Artificial “ competitiveness ” is not sustainable Country Core Competencies Stability – Political & Fiscal Infrastructure  Physical  Legal Recourse / Investment Climate Artificial “ competitiveness ” is not sustainable FDI / Sourcing Decision – Key Factors

Productivity Driven Business Model Spur Efficiencies in Supply Chain & Competitors Enabler for Supplier Development Sustainability Driving Greater Involvement Throughout Supply Chain Customer Savings in 2004 was $2,300 in each U.S. household Productivity Driven Business Model Spur Efficiencies in Supply Chain & Competitors Enabler for Supplier Development Sustainability Driving Greater Involvement Throughout Supply Chain Customer Savings in 2004 was $2,300 in each U.S. household Wal-Mart ’ s Contribution to Countries

Business Sustainability A Competitive Strategy for the 21 st Century

Business Sustainability…. Economic benefits derived from improved environmental and social outcomes

Environmental Net Impact Consumer Impact Economics Geopolitical Stability / Productivity Environmental Net Impact Consumer Impact Economics Geopolitical Stability / Productivity Business Sustainability – Key Factors

Sustainable Value Networks Climate Waste Products Global Greenhouse Gas Strategy Energy, Design Construction & Maintenance Global Logistics Operations & Internal Procurement Packaging Textiles Electronics Food & Ag Forest & Paper Chemical Intensive Products Jewelry Seafood China

Sustainable Value Networks

The Role of Suppliers in Sustainable Value Networks

Traditional PlasticNatureWorks ® PLA Day 1 to ? Renewable Resource

Traditional Thinking About Cotton 6 oz chemicals

What can we do together? What future will we choose to create? What can you do?

Sustainability Wal-Mart Year Beginning Meeting 2006

Environmental Sustainability in the Supply Chain DIRECT 8% INDIRECT Environmental Impact 92% Packaging Factory Pollution Fish safety & sustainability Agricultural practices Packaging (e.g. corn-based) Water usage & pollution Facilities (energy and building materials) Energy efficiency Supplier challenge to increase mileage 25% by 2007

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