1. Large Deductible Program  Cash flow  Less $ on premium  Retained losses are deductable  Catastrophic protection  Pricing driven by individual risk history  Claims handling  Have financial capacity to retain risk; financials meet carrier criteria  Collateral and escrow  Less budget stability  Pricing driven by individual risk history  Increased administration 1

2. Self-Insured Retention Program  No collateral  Less fronting cost  Retained losses are deductable  TPA or self administration selection  Choose your lawyer  Insurers do not “Drop Down”  Dedicated internal resources to manage claims  Limited carrier selection  Certificate of insurance issues 2

3. Qualified Self-Insured Program  Frequently the least collateral  Possible reductions in assessments and taxes  TPA or self administration selection  Choose your own lawyer  Must still buy excess coverage  Collateral must be posted in each state  States hold on to collateral for a long time  No “Out and Back In” without reapplication  Increased administration 3

4. Risk Transfer/Risk Retention Efficient Frontier Risk Transfer Savings Risk Retention Current “deductible” program The Efficient Frontier 1 Bare Guaranteed Cost Risk Financing Alternatives 1 The efficient frontier is the point at which there is no greater expected reward for a given level of risk retention 4

5. Measuring Program Efficiency Over Time TCOR + Savings Historical TCOR Total Cost of Risk 5

7. Walmart Stores, Inc. is comprised of: Walmart U.S. (approx. 1,420,000 associates) 3,600 Walmart Retail Stores 153 Neighborhood Markets 598 Sam’s Clubs 142 Distribution Centers Walmart International (approx. 709,000 associates) 4,557 Retail Units 14 Countries 7

8. Workers’ Compensation Self-insurance – 13 states Self-insurance – 13 states High deductible insurance coverage – 36 states High deductible insurance coverage – 36 states Administration through wholly owned subsidiary TPA – 35 states Administration through wholly owned subsidiary TPA – 35 states Administration through outside TPA – 14 states Administration through outside TPA – 14 states Walmart’s casualty program utilizes the following structure: General Liability Self-insurance – all states Self-insurance – all states Administration through wholly owned subsidiary TPA – 49 states Administration through wholly owned subsidiary TPA – 49 states Administration through outside TPA – 1 state Administration through outside TPA – 1 state 8

9. The Walmart Casualty Focus: Receive prompt and appropriate medical care that is focused on their recovery and return to gainful employment; Receive prompt and appropriate disability benefits; Compliance. Workers’ Compensation ensure associates that suffer work injuries: Addressed promptly and appropriately while recognizing the importance of our customers in the retail environment; Compliance. General Liability Program ensure all customers claims are: 9

10. Program structure allows Walmart to concentrate on our associates and customers through: Process Improvement Risk Control Self Administration RMIS 10

11. Administering claims through our wholly owned subsidiary TPA helps ensure: Owning the process Owning the process Experience in best practices between in-house TPA and outside TPA vendors Experience in best practices between in-house TPA and outside TPA vendors Compliance focus Compliance focus Direct relationship between operations and risk management Direct relationship between operations and risk management Appropriate claims management by: Accuracy Accuracy Analysis Analysis Functional Functional Data integrity: 11

12. Flexibility The appropriate RMIS tool is vital to the continual evolution of our program by allowing: Scalability Sustainability The RMIS tool must act as an “enabler” to allow your property and casualty program to pursue overall company objectives. 12

13. Risk Control, although not part of our Risk Management Team, is an integral partner that focuses on: Safe place to work / safe place to shop Accident prevention Post accident support Accident investigation Risk Control 13

14. Lastly, our program structure allows for continual focus on process improvements. Safety focus on accident prevention Workflow process improvements Trend analysis Resource allocation Utilization of real-time data from all aspects of Walmart to drive: 14

15. In conclusion, our program structure: Allows for optimum focus on our customers and our associates Ensures that we capture and evaluate the data to drive improvement Works with our business model 15

16. Current Reality Panel Discussion

17. Questions & Answers 17