A LOOK AT 2001 AND BEYOND Dear Fellow Shareholder: It is truly an honor to serve as President and CEO of  Wal-Mart Stores, Inc., and  I appreciate the opportunity to share with you some thoughts from fiscal 2001 and our outlook for the future. What a year of milestones it was! But before we get into the details, I’d like to touch on a few highlights from  the year.  facilities and adding services, including pharmacy, optical, 1-Hour Photo and fuel, to offer the highest quality shopping experience to our Members. In short, our Members continue to respond favorably to SAM’S  unique, high-quality merchandise at  exceptional values. The International Division had an excellent year, growing sales by 41 percent and achieving more than $32 billion in revenues. As we travel internationally, it’s exciting not only to see our stores and clubs operating at such high standards, but also to see the Wal-Mart culture being embraced throughout the world. This just shows that treating people with respect and raising their standard of living through Every Day Low Prices knows no boundaries. I’ll highlight the exceptional performances by our three largest international operations: Canada, Mexico and the United Kingdom.  Fiscal 2001 was a great year for our Canadian business. Sales and operating profit increased for the year by more than 14 percent, continuing the customer-focused retailing traditions established in the U.S. almost 40 years ago. Mexico also had an outstanding year, exceeding both its sales and profit goals. Our Customers there  Fiscal 2001 was clearly one of the strongest years in recent memory  for the SAM’S CLUB division. We saw growth in both sales and earnings. Moreover, earnings growth outpaced sales growth for the year. Membership renewals reached record levels, demonstrating strong loyalty and Member acceptance, and illustrating that a SAM’S membership  is the best value in the warehouse club business. In fact, one in three households in America now has a SAM’S CLUB membership. SAM’S has made great progress over the past two years in upgrading our clubs and distribution centers, or those in the home office, our people truly deserve the credit for all these accomplishments. Let’s look a little closer at what our Associates were able to achieve this year.  Net sales in fiscal 2001 increased almost 16 percent to more than $191 billion, representing a growth in revenue of more than  $26 billion. In addition, net income reached $2 billion  for the fourth quarter and almost $6.3 billion for the year, making it our first “two-billion-dollar-income quarter” and our first  “six-billion-dollar-income year.” FORTUNE magazine named  Wal-Mart the third “most admired” company in America and one of the 100 best companies to work for in America. Our Company also ranked fifth on  FORTUNE ’s Global Most Admired Companies list based on characteristics such as leadership, teamwork and the way we treat our people. In addition, Americans named Wal-Mart the company they think of first in supporting local causes and issues, according to Cone, Inc., a national research firm. Whether it’s our domestic or international Associates in the stores, 2