Master 2019 Investor and Analyst Conference v23/media/Files/H/HomeDepot-IR/2019 IAC/C… · 7+(...
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THE HOME DEPOT 2019 INVESTOR AND ANALYST CONFERENCE THE HOME DEPOT Investing in One Home Depot Craig Menear Chairman, CEO and President 2019 Investor and Analyst Conference THE HOME DEPOT 2019 INVESTOR AND ANALYST CONFERENCE THE HOME DEPOT 1 1 1 1 1 Five Key Messages: 1 2 3 4 5 Distinct Competitive Advantages Deliver Strong Financial Performance Large & Fragmented Addressable Market Opportunity One Home Depot Will Further Enhance Leadership Position Macroeconomic Backdrop is Supportive Capital Allocation Principles Create Value for Our Stakeholders 2
Transcript of Master 2019 Investor and Analyst Conference v23/media/Files/H/HomeDepot-IR/2019 IAC/C… · 7+(...
THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Investing inOne Home Depot
Craig MenearChairman, CEO and President
2019 Investor and Analyst Conference
THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
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Five Key Messages:
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Distinct Competitive Advantages Deliver Strong Financial Performance
Large & Fragmented Addressable Market Opportunity
One Home Depot Will Further Enhance Leadership Position
Macroeconomic Backdrop is Supportive
Capital Allocation Principles Create Value forOur Stakeholders
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Associates& Culture
Digital Experience
2019#1 Mobile App
in Retail
Forrester
Best-in-ClassDigital IQ Index 6 Years Running
L2 Gartner
PremiumReal Estate
FlexibleSupply Chain
The Home Depot’s Distinct Competitive Advantages
World-Class Merchandising
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Competitive Advantages Have Driven Significant Growth
Five-Year Sales Growth* Five-Year Net Earnings Growth*
BILLION 25+$
BILLION 5+$
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*Net Sales & Earnings growth from FY 2014 - 2018.
THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Continued Opportunity for Growth and Share Gains
We Play in a Large & Fragmented Market
Sources: 2019 HIRI Home Improvement Products Market Forecast Update, U.S. census, external market analysis
Total U.S. MarketOpportunity ~$650B
Number One Home Improvement Retailer in…
~15%
~85%
The Home Depot
United States
Canada Mexico
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Why One Home Depot…Retail Customers Expect More
EnhancedFulfillment Options
PersonalizedExperiences
Easy Shopping Experience
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Two Years In…What We’ve Learned
One Home Depotwill deliver what our
customers expect from us
Transformations are complex and take time
Our strategic initiatives are working and we are
realizing benefits
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Multi-Year, ~$11 Billion Investment
Investing From a Position of Strength
INTERCONNECTED & DIGITAL EXPERIENCE
STORESASSOCIATES
PRO & SERVICES SUPPLY CHAIN& DELIVERY
PRODUCT& INNOVATION
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Investment HighlightsOur People
More Than
90%of Store Leaders Began as Hourly
Associates
Enhanced Paid
Parental Leave
Annual Commitment:
>1 Million Hoursfor Associate Training
& Development
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Investment HighlightsStore
Improving Customer Experience & Driving Productivity in Our Stores
Likelihood to Shop Again
+50BPS vLY
# of Transactions per Hour of
Checkout Labor
+5.4% vLY
Checkout Time
Satisfaction
+280BPS vLY
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*Metrics as of Q3 2019
THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Investing to Improve Visual Merchandising and RefineOur Product Assortments
Investment HighlightsProduct & Innovation
Pipe Aisle ResetPipe Aisle Reset New ColorSolution Center
New ColorSolution Center
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Investing to Seamlessly Blend Channels of Engagement
>2BUnique Online Visits
Annually
2019#1 Mobile App
in Retail
Forrester
~10%of Total U.S. Retail Sales are Online
Best-in-ClassDigital IQ Index
6 Years Running
L2 Gartner
>50%of U.S. Online Orders
Are Picked Up in Our Stores
Investment HighlightsInterconnected & Digital Experience
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Investing In a Portfolio of Tools & Servicesto Drive Pro Engagement
Investment HighlightsPro Ecosystem
B2B Experience
Delivery MyView CRM
Brands
Credit
Service
MRORental
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Leveraging Our Upstream Competitive Advantage toDrive Greater Efficiencies Downstream
Investment HighlightsSupply Chain & Delivery
DC Network(BDC / SDC / RDC)
Stores
Vendors
UPSTREAM
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Creating the Fastest, Most Efficient Deliveryin Home Improvement
Investment HighlightsSupply Chain & Delivery
Customers(DIY / Pro)
Direct Ful f i l lment Centers(Parcel / F la tbed / L ocal )
Market Del ivery Stores
Market Del ivery Operations
DOWNSTREAM
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THE HOME DEPOT
2019 INVESTOR AND ANALYST CONFERENCE
THE HOME DEPOT
Culture & Values
Our culture and values have always embodied a focus on people, strengthening communities and operating sustainably. These are also at the heart of our ESG efforts. We know that this not only
drives strong business practices but has also enabled us to consistently deliver industry-leading results.
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