2020 Annual Shareholder Meeting - The Home Depot/media/Files/H/HomeDepot...May 21, 2020 · 2020...

THE HOME DEPOT

2020 Annual Shareholder Meeting

THE HOME DEPOT


Thursday May 21, 2020

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Our Board of Directors

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Agenda

• Welcome to Shareholders

• Call to Order of Meeting

• Consideration of Company and Shareholder Proposals

• The proposals will be considered in the order presented in the

Proxy Statement

• Report of Preliminary Voting Results

• Adjournment of Meeting

• Report on the Business

• Question and Answer Session

• Closing Remarks

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Forward-Looking Statements

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Certain statements contained in this presentation constitute “forward-looking statements” as defined in the Private

Securities Litigation Reform Act of 1995. Forward-looking statements may relate to, among other things, the impact on our

business, operations and financial results of the COVID-19 pandemic (which, among other things, may affect many of the

items listed below); the demand for our products and services; net sales growth; comparable sales; effects of competition;

implementation of store, interconnected retail, supply chain and technology initiatives; inventory and in-stock positions;

state of the economy; state of the housing and home improvement markets; state of the credit markets, including

mortgages, home equity loans and consumer credit; impact of tariffs; issues related to the payment methods we accept;

demand for credit offerings; management of relationships with our associates, suppliers and vendors; international trade

disputes, natural disasters, public health issues (including pandemics and related quarantines, shelter-in-place orders, and

similar restrictions), and other business interruptions that could disrupt supply or delivery of, or demand for, the Company’s

products or services; continuation of share repurchase programs; net earnings performance; earnings per share; dividend

targets; capital allocation and expenditures; liquidity; return on invested capital; expense leverage; stock-based

compensation expense; commodity price inflation and deflation; the ability to issue debt on terms and at rates acceptable to

us; the impact and expected outcome of investigations, inquiries, claims and litigation; the effect of accounting charges; the

effect of adopting certain accounting standards; the impact of regulatory changes; store openings and closures; guidance

for fiscal 2020 and beyond; financial outlook; and the integration of acquired companies into our organization and the ability

to recognize the anticipated synergies and benefits of those acquisitions.

Forward-looking statements are based on currently available information and our current assumptions, expectations and

projections about future events. You should not rely on our forward-looking statements. These statements are not

guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our

control, dependent on the actions of third parties, or are currently unknown to us – as well as potentially inaccurate

assumptions that could cause actual results to differ materially from our expectations and projections. These risks and

uncertainties include, but are not limited to, those described in Item 1A, “Risk Factors,” and elsewhere in our Annual Report

on Form 10-K for our fiscal year ended February 2, 2020 and in our subsequent Quarterly Reports on Form 10-Q. Forward-

looking statements speak only as of the date they are made, and we do not undertake to update these statements other

than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our

periodic filings with the Securities and Exchange Commission.

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Craig MenearChairman, CEO and President


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Committed to Culture & Values

Our culture and values have proven invaluable throughout our history and this pandemic is no exception. Our commitment to Take Care of

our People, Do the Right Thing and Give Back has guided our decisions during this challenging time.

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Our Objectives

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Safety &

Wellbeing

Provide

Essential Products

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Limiting the number of customersallowed into

stores at one time

Expanding delivery

options on orders

made at

homedepot.com

Store & Associate Safety

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Promoting social and physical

distancing in stores by marking

floors, adding signage and

installed plexiglass at registers

Closing stores early to allow

more time for sanitization

and restocking

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Taking Care of Our People

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Double Pay for overtime hours worked

by hourly associates

Weekly

BonusesFor hourly associates in

stores and distribution centers

Extended Dependent care benefits

and waived related co-pays

Enhanced paid time off for all full-time and

part-time hourly associates to be

used any time in 2020 and paid

out at year-end if not used

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Taking Care of Our Communities

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Donated millions of dollars

in personal protective

equipment (PPE) and other

products to hospitals,

healthcare providers

and first responders

Prioritized order

fulfillment for hospitals,

healthcare providers

and first responders

Voluntarily froze pricing

nationwide across product

categories in high demand

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One Home Depot Investments

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STORESASSOCIATESPRODUCT

& INNOVATION

INTERCONNECTED & DIGITAL EXPERIENCE

PRO & SERVICES SUPPLY CHAIN& DELIVERY

“The Home Depot’s distinct competitive advantages and overarching benefits of

an interconnected, One Home Depot strategy give us the ability to quickly

adapt to shifts in consumer needs, preferences and behaviors.”

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To our Associates…

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THANK YOU!

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Richard McPhailExecutive Vice President & Chief Financial Officer


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Investments to Extend Our Advantages

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Multi-Year Investment Program

INVESTMENT IN OUR

STORES~$5.0B

INVESTMENT IN OUR

TECHNOLOGY~$2.5B

INVESTMENT IN OUR

SUPPLY CHAIN~$1.2B

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$9.73

$10.25

2018 2019

$11.1B

$11.2B

2018 2019

$108.2B

$110.2B

2018 2019

Fiscal 2019 Financial Highlights

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Sales ($B) Net Earnings ($B) Diluted EPS

Note: Fiscal 2018 includes 53 weeks while fiscal 2019 includes 52 weeks.

1.9% 0.9% 5.3%

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Q1 2020 Financial Highlights

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Associate Support: ~$850 Million

Total Sales: $28.3 Billion

EPS: $2.08 per diluted share

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Strong Balance Sheet with Robust Liquidity Profile

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1

1

1

11

2

3

4

Temporarily Suspended Share Repurchases

Doubled Commercial Paper Program

Expanded Revolver Capacity to $6.5B

Executed $5.0B Debt Issuance

$8.7B

in Cash

$6.5B

in Credit Facilities

$6.0B

Commercial Paper

Program

In Response to COVID-19 Pandemic:

Q1 Liquidity: ~$21 Billion

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Annual Dividend Paid

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Announced 10% Increase in Dividend in February

1) Forecast - Based on current quarterly dividend annualized. Subject to approval by the Board of Directors.

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Craig MenearChairman, CEO and President


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Question & Answer Session

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2020 Annual Shareholder Meeting - The Home Depot/media/Files/H/HomeDepot...May 21, 2020 · 2020...

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