2015 INVESTOR AND ANALYST CONFERENCE

Driving ProductivityImproving Experience Marc PowersExecutive Vice PresidentU.S. Stores

2015 INVESTOR AND ANALYST CONFERENCE

Inverted Pyramid and Values Wheel

2

2015 INVESTOR AND ANALYST CONFERENCE

Our Strategy Creates Value For All

3

Customer

Experience

Associate

Experience

Interconnecting Retail

Capital Allocation

Product Authority

2015 INVESTOR AND ANALYST CONFERENCE

Changing Expectations

4

OurCustomers

OurProductivity Cycle

Our Associates

2015 INVESTOR AND ANALYST CONFERENCE

Our Customers

5

DIY Consumers

Professionals

Professionals

DIY Consumers

% of Customers % Of Sales

2015 INVESTOR AND ANALYST CONFERENCE

Baby Boomers

6

Home Owners

Home Investment

Do It For Me

2015 INVESTOR AND ANALYST CONFERENCE

Millennials

7

Delayed Home Purchase

Need Brick and Mortar

Emotional Connection

2015 INVESTOR AND ANALYST CONFERENCE

Our Professional Customers

8

Transactional Complex B2B

% of Pros % of Pro Sales

2015 INVESTOR AND ANALYST CONFERENCE

Interconnected Store

9

Baby Boomers

Professionals

Millennials

2015 INVESTOR AND ANALYST CONFERENCE

Old Things, New Ways

Interconnected Store

10

Pick Pull Stage

2015 INVESTOR AND ANALYST CONFERENCE

Interconnected Store

11

Customer Order Management

4252 Liberty Avenue

New York, NY 10010

2015 INVESTOR AND ANALYST CONFERENCE

Driving Productivity

12

2015 INVESTOR AND ANALYST CONFERENCE

Freight: Truck to Receiving to Shelf

13

Smart

Sort

Engineered

Unload

Directed

Packout

2015 INVESTOR AND ANALYST CONFERENCE

Freight: Truck to Receiving to Shelf

14

Bay Directed Packdown

Smart List

2015 INVESTOR AND ANALYST CONFERENCE

Fulfillment Team

15

S M T W T F S

Pick Pull Stage Release

Dedicated Service Team

2015 INVESTOR AND ANALYST CONFERENCE

Voice of the Customer

16

Net Promoter Score

63.3%

72.6%

20152009

2015 data through FW42

2015 INVESTOR AND ANALYST CONFERENCE

+/- 5%

<+/- 2%

Improved Forecasting

Consistent Schedules

Associate Experience

17

20152010

Sales Forecast Accuracy

2015 INVESTOR AND ANALYST CONFERENCE

Associate Experience

18

94% 89% 79%

Department

Supervisor

Assistant

Manager

Store

Manager

Began THD Career As Hourly Associate

Growth

2015 INVESTOR AND ANALYST CONFERENCE

Productivity AND Improving Experience

19

It’s What We Do. It’s Who We Are.