Politically InVESTed

Lowe’s Political Action CommitteeAnnual Report2017

* This report is intended to be circulated among the restricted class members of LOWPAC only

2

Why does Lowe’s need a Political Action Committee (PAC)? • The government touches every part of our business.• Corporate contributions to federal and most state candidates are illegal.• LOWPAC helps elect individuals who understand our company and are responsive to our

shared interests.

Purpose Of Lowe’s PAC• To support policymakers that help our company succeed.

Quick Facts About LOWPAC • Voluntary• Non-partisan• Does not contribute to presidential candidates• Lowe’s matches your contribution to LOWPAC with a $1 to $1 contribution to the

Employee Relief Fund (LERF).

Why Support For LOWPAC Is Important • Our Lowe’s employees organized LOWPAC to financially support candidates for elective office

who, regardless of political party, understand our industry and our specific concerns.

What is a PAC?

There are 3,500

registered PACs.

Corporatecontributionsto candidates

are illegal.

PAC isshort forPoliticalAction

Comittee

PACs are regulated by theFederal Election

Commission.PACs allowemployees

to poolcontributions.

3

You inVESTed in LOWPAC to help elect policymakers who understand our business and the specific interests and concerns of our employees.

Thank You!

Participation by PositionContributions by Location

63% Lowe’s Employees in Stores ($278,210)

37% Lowe's Customer Support Center($163,341)

63%

37%

68%96%

100%

100% VPSOs

96% Market Directors

68% Store Managers

Participation by Regionincludes only VPSO’s, Market Directors, and Store Managers

Contributions Received

2017Employee

Contributions

$457,869

65% $19,810

63% $17,560

66% $18,35179%

$24,656

76% $21,892

53% $15,491

63% $20,066

73% $23,992

77% $26,040

89% $24,476

60% $20,442

76% $19,817

68% $23,965

81% $23,121

4

Lowe's Employee Relief Fund

Houston Mayor Sylvester Turner stops by as 20,000 buckets are delivered to support neighbor-hoods recovering from Hurricane Harvey

Lowe's contributed over

$457,000to the Lowe's

Employee Relief Fund in 2017

Lowe's matches

your LOWPAC donation

$1 to $1with a contribution

to theLERF

Employees working together to clear hurricane damage for families

LERF provides support to employees and their families who have suffered significant financial hardship.

LERF contributed $29 million in aid to 26,000 employees and their families since the program’s inception in 1999.

4

4

5

Political Expenditures

House Speaker Tim Moore (center) and Majority leaders show their love of Lowe’s

Expenditures by Party

68%

21%

11%

68% Republican $439,50021% Democrat $137,50011% Other $70,700

LOWPAC Candidates Who Won in 2016

92% Federal71% State

71%

92%

92%

87% Federal $565,00013% State $82,700

87%

13%

Expenditures by Level

Cash on Hand Remaining at End of 2017

$526,378

2017Political

Expenditures

$647,700

6

Our PAC Board of Advisors is composed of employees from different departments who meet quarterly to govern LOWPAC, using the criteria below to select recipients. LOWPAC transactions are publicly reported through the Federal Election Commission.

Criteria for Recipients

IssuesCandidate's position on policy issues

Constituency Candidate's presence within the district

Influence Candidate'sability to make adifference withingovernment

ViabilityCandidate's ability to succeed

IntegrityCandidate'score values

4

4

4

4

4

NC Representative Jeffrey Elmore (second from left) tours store 170 in Wilkesboro, NC with Store Manager Kevin Little (second from right), Craig Dowdle (left) and Pam Hodges

Brent Kirby, Chief Supply Chain Officer:

As Chairman of our LOWPAC Advisory Board, I work with our team to make sure that every penny of our voluntary budget is used ethically and effectively to help our company and our fellow employees.

7

Let’s take a closer look at one of the hot policies at issue right now:

Since 2016 Lowe’s strengthened ORC laws in 12 states.

Policy Spotlight

In 2017, after retailers advocated tougher measures to the state capitol, North Carolina enacted a bill against Organized Retail Crime resulting in:

4 Increased penalties4 Aggregate multiple charges

In 2018, similar bills on Organized Retail Crime will be debated in Colorado, Florida, Indiana, Maryland, and other states.

Government touches every part of our business. Policies that impact our company include these and many more.

Taxes Trade SupplyInfrastructure

Finance,Swipe Fees

OrganizedRetail Crime

Cyber-Security

Employment,Health & Safety

Organized Retail Crime Costs retailers $30 billion a year

NC State Representative Harry Warren speaking about ORC with NC State Representative John Fraley

8

Strength in Numbers

We spoke and Congress acted.

This year we mobilized a grassroots effort by asking employees to email Congress to oppose a harmful tax proposal called the Border Adjustment Tax. This would have created a new tax increase on Lowe’s, our customers, and other retailers by over one trillion dollars over ten years. The results:

4 1,100 letters were sent to Members of Congress.4 Congress defeated the Border Adjustment Tax increase in July.

Contributions to the PAC are voluntary and can be declined without reprisal. Any employee cannot be favored nor disadvantaged by reason of amount or decision not to contribute. Contributions to LOWPAC are not tax deductible. LOWPAC must make a best effort to obtain and report the name, address, occupation and employer of each contributor who gives more than $200 a calendar year.

Congressman Patrick McHenry (NC) tours store 457 in Gastonia, NC with Store Manager Larry Taylor and team