Rosalind G. Brewer President and CEO

Sam’s Club

Sam’s Club leadership team

Jeff Gruener Replenishment, Planning &

Innovations

Whitney Head General Counsel

& Asset Protection

Michael Dastugue Finance & Real Estate

Racquel Harris Member Strategy,

Marketing & Insights

Charles Redfield Merchandising

Ismat Mirza People

Don Frieson Operations

Jamie Iannone samsclub.com

Today’s focus

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• Making investments to deliver on our member promise

• Data is fueling our forward-looking perspective of the business

• Merchandise transformation is accelerating

• Access enhancements are integrating the physical and digital

Sam’s Club

FY15 1H results were mixed

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Sales

Gross profit rate

Operating expenses

Membership income

Operating income

Inventory Financial results excluding fuel

Making improvements on all fronts

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Merchandise

Digital and physical

Membership

Credit value for ALL members

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Sam’s Club MasterCard®

• 5% cash back on fuel

• 3% cash back on dining and travel

• 1% cash back on everything else

Maximum of $5K in Cash Back rewards can be earned in a calendar year.

Cash rewards for PLUS members

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Sam’s Club Plus Cash Rewards

• Exclusive Plus benefit

• Earn $10 for every $500 spent

• Redeemable for cash or credit

Members can earn $10 in Cash Rewards for every $500 in qualifying pre-tax purchases during a membership year with a maximum reward of $500 per 12-month period.

Our members are changing

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Boomers Millennials Small Business

• Quality and value-oriented

• Proactive about health

• Highly price conscious • Early trend adopters

• Convenience-driven • “One-stop-shop” • Easy fulfillment

Utilizing data better than ever before

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Engagement Prospecting Renewal

Awareness Consideration Acquisition Day 1

Renewal Day 365

On-going engagement

Engagement On-boarding

Prioritize target member

Create emotional connections

Capture critical moment of truth

Exceeding member expectations…

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…with merchandise

Charles Redfield Executive Vice President, Merchandising

Sam's Club

Focused on newness

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Newness creates

EXCITEMENT

Excitement drives

TRAFFIC

Traffic drives

ENGAGEMENT

Engagement drives

RETENTION

Retention drives

ADVOCACY

Changing how we buy and assort clubs

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SPRING SUMMER FALL / HOLIDAY

GAP

Tracking with current member trends

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Healthy for you

Ready for you

Exciting for you

Merchandise key trends

Ready for the holiday season

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Exceeding member expectations…

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…by integrating digital and physical

Jamie Iannone President and CEO

samsclub.com

Digitally-engaged membership base

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Laying the foundation for accelerated omnichannel growth

samsclub.com fueling digital migration

Portfolio of digital platforms

Club Pickup delivering convenient access

Using mobile to connect with the member

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1 2 3 Easy

access Simplified shopping

Personalized experience

Improving all four mobile platforms

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iPhone

All New App: FY15 Q2

iPad

All New App: FY15 Q1

Android

All New App: FY14 Q4

mWeb

Ongoing site improvements

Completely new iPhone app launched

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Building momentum with Club Pickup

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Online Order picking Member pickup

• Smart ordering tools

• Text notifications

• Wider assortment

• Next generation handheld devices and processes

• Improved fulfilment accuracy

• Improved communication • Smoother operational

processes • Member check-in kiosk

Club Pickup

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Efficient capital strategy

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CapEx Detail FY14 Actual

FY15 Original

FY15 Revised

guidance

FY16 Projected

Units

New, relocation, & expansion 20 17 - 22 ~20 9 - 12

Remodel projects 69 55 - 60 55 - 60 60 - 65

Square footage

Net retail square footage 1.7M ~2.0M ~2.0M ~1.0M

Sam’s Club

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• Making investments to deliver on our member promise

• Data is fueling our forward-looking perspective of the business

• Merchandise transformation is accelerating

• Access enhancements are integrating the physical and digital

Key takeways

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Q A