2018 annual shareholder meeting - the home depot/media/files/h/homedepot... · (as of may 15, 2018)...

2018 Annual Shareholder Meeting

Carol ToméCFO and Executive Vice President, Corporate Services


2018 Shareholder Meeting

Forward-Looking Statements and Non-GAAP Financial Measurements

Certain statements contained in today’s presentations 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 demand for our products and services; net sales growth; comparable sales; effects of competition; implementation of

store, interconnected retail, supply chain and technology initiatives; issues related to the payment methods we accept; state of the economy; state of the residential

construction, housing and home improvement markets; state of the credit markets, including mortgages, home equity loans and consumer credit; demand for credit offerings;

inventory and in-stock positions; management of relationships with our suppliers and vendors; 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 the Tax Cuts and Jobs Act of 2017; store openings and closures; guidance for

fiscal 2018 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. These forward-looking statements are based on currently available information and current assumptions, expectations and projections about future events,

and actual results could differ materially from our expectations and projections. You should not rely on our forward-looking statements as they speak only as of the date

hereof, and we undertake no obligation to update these statements to reflect subsequent events or circumstances except as may be required by law. Additional information

regarding risks and uncertainties is described in Item 1A, "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended January 28, 2018 and our

subsequent Quarterly Reports on Form 10-Q.

Today’s presentations are also supplemented with certain non-GAAP financial measures. We believe these non-GAAP financial measures better enable management and

investors to understand and analyze our performance. However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP

measures. Reconciliations of the supplemental information to the comparable GAAP measures can be found on our Investor Relations website at ir.homedepot.com.


Sales ($B) Diluted EPSNet Earnings ($B)

$94.6

$100.9

$6.45

$7.29

FY 2016 FY 2017 FY 2016 FY 2017 FY 2016 FY 2017

$8.0

$8.6

Fiscal 2017 Financial Highlights


FYE 2016 Cash Flow from theBusiness

Net DebtIssuance

Capital Expenditures Dividends Share Repurchases FYE 2017

Fiscal 2017 Cash Flow($ Billions USD)

$2.5

$12.3

$3.3 $2.3

$4.2

$8.0

$3.6

We Continue to Generate Strong Cash Flow

2018 Shareholder Meeting1) All guidance based on GAAP; includes 53rd week

Fiscal 2018 Guidance1)

(As of May 15, 2018)

Sales growth ~6.7% (53rd week adding ~$1.6 billion in sales)

Comp store sales growth ~5.0% (based on 52-week comparison)

New store openings 3 new stores

Operating margin ~14.5%

Diluted EPS growth$9.31, or an increase of ~28% (53rd week contributing

~19 cents)

Share repurchases Targeting $4 billion


$1.04 $1.16

$1.56

$1.88

$2.36

$2.76

$3.56

$4.12

2011 2012 2013 2014 2015 2016 2017 2018F

Annual Dividend Paid

Announced 15.7% Increase in Quarterly Dividend in February

Committed to Dividend Payout


Total Shareholder Return* of 247% from Fiscal 2013 through Fiscal 2017

Total Shareholder Return in Past 5 Years

-50%

0%

50%

100%

150%

200%

250%

300%

Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18

HD %

S&P 500 %

* Includes the Reinvestment of Dividends

Craig MenearChairman, CEO & President


Retail Environment is Changing Rapidly


HD Must Continue to Keep Pace with Changing Environment

Retail Customers Expect More

Personalized Experiences

SeamlessCheckout

ImprovedDelivery


Our Objectives

Deliver Shareholder Value

Grow Market Share – Pro and Consumer


Growth Through an Interconnected Customer Experience

Investing in One Home Depot

Store Online Store / Online

Product

Supply Chain

Delivery

Associates

Innovation

Services

Pro

Product

Pro

Services

Supply Chain

Delivery

Product

Pro

Services

Supply Chain

Delivery

Associates Associates



Leveraging the Convenience of Our Locations

Investing in Stores

Investing in Associates


Investing in Product & Innovation


Investing in Pro & Services


Investing in Supply Chain & Delivery


Investing in Canada & Mexico

Canada Mexico

#1 Home Improvement Retailer



Our Culture

What is NOT Changing?

Question & Answer

2018 annual shareholder meeting - the home depot/media/files/h/homedepot... · (as of may 15, 2018)...

Documents