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Group 6 Ankita Joshi (44) Ankush Patodi (19) Sneha Suman (33) Iqbal Ahmed (48) Sreejith Menon (26) Sreejit Nair (25)

The Home Depot Final

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Group 6 Ankita Joshi (44) Ankush Patodi (19) Sneha Suman (33) Iqbal Ahmed (48) Sreejith Menon (26) Sreejit Nair (25)

"Bernie and I founded [The Home Depot] with a special vision -- to create a company that would keep alive the values that were important to us. Values like respect among all people, excellent customer service and giving back to communities and society. Arthur Blank

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The largest home improvement retailer with stores in U.S. (all 50 states, the District of Columbia, Puerto Rico, U.S. Virgin Islands), 10 Canadian provinces, Mexico and China More than 2,200 retail stores convenient locations They house different kinds of building materials, home improvement supplies, appliances and lawn and garden products for all of your project needs The fifth largest retailer in the world Ranked in the top 50 on Forbes 2009 America's Most Reputable Companies list Revenue is $71.288 billion USD (to Feb 2009) Net income is $2.260 billion USD(2008) Total employees are 209,300 (Feb 2009)

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The Home Depot was founded by Bernie Marcus, Arthur Blank, Ron Brill, and Pat Farrah in 1978 The Home Depot's proposition was to build homeimprovement warehouses, larger than any of their competitors' facilities. Investment banker Ken Langone helped Marcus and Blank to secure the necessary capital. They opened the first 2 stores, built in spaces leased from J. C. Penney that were originally Treasure Island "hypermarket" (discount department and grocery) stores, on June 22, 1979 in Atlanta, Georgia They came up with the do-it-yourself concept

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Since the 1990s, its current headquarters is a complex of highrise buildings on Paces Ferry Road, Cumberland/Galleria edge city, Cobb County, Georgia Many of the company's employees refer to the headquarters as the "Taj Mahal" because of the luxurious look on the interior and exterior of the buildings In 2000, after the retirement of Marcus and Blank, Robert Nardelli was appointed chairman, president, and CEO. Nardelli was replaced in January 2007 by Frank Blake Current members of the board of directors of the Home Depot are: F. Duane Ackerman, David H. Batchelder, Frank Blake, Ari Bousbib, Gregory D. Brenneman, Albert P. Carey, Armando Codina, Brian C. Cornell, Bonnie G. Hill, and Karen Katen. The Home Depot's board consists of 10 members, with 9 of them being outside directors

Beautification and added features. Comfort. Maintenance and repair. Saving energy. Safety and preparedness.

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Home improvement products such as home appliances, tools, hardware, lumber, building materials, paint, plumbing, flooring and garden supplies & plants. The inventory consists of 40,000 to 50,000 different kinds of building materials, home improvement supplies, and lawn and garden products, as well as 250,000 products that can be special ordered Offers proprietary and exclusive brands Long-term commitment to the environment and sustainability with the launch of its Eco Options program in 2007. E.g. CFL bulbs, programmable thermostats, and certified wood

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Average size of The Home Depots warehouse-style stores is 105,000 square feet Serving the Pro Customer--A dedicated Contractor Services Desk is available in each store Free How-To Clinics. Kids Workshops.

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American Craftsman by Andersen (windows, patio doors) American Woodmark (cabinetry) BEHR Paint Brinkmann outdoor grills and supplies Chem-Dry (carpet cleaning, upholstery cleaning, tile and grout services) Distinctions Cabinetry Feather River Doors G.E. (water heaters) Glacier Bay (faucets and bath) Husky (tools, store brand)

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Homelite (outdoor and power tools) Legacy Doors (premium wood and steel entry doors) Millstead (lumber, store brand) Pegasus (kitchen and bath items) Ryobi, RIDGID (power tools) Thomasville cabinetry Vigoro (fertilizer)

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Commercial Electric (lighting and electrical) Eco Options (store brand) Hampton Bay (lighting, ceiling fans & patio furniture) n:vision (compact fluorescent bulbs, formerly part of Commercial Electric) Workforce (discount tools and hardware brand)

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Entered Canada in 1994 and Mexico in 2001 through a combination of acquisitions and organic growth Also operates 12 stores in six cities in China as a result of an acquisition made in December 2006 The global expansion demonstrates how The Home Depot combines its vast knowledge of the home improvement industry with the needs, shopping trends and customs of each unique geography to best serve customers

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Global The Home Depot Lowes OBI (Germany) In US The Home Depot Lowes Menards

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Money

The table below sets forth the high and low sales prices of Home Depots common stock on the New York Stock Exchange and the quarterly cash dividends declared per share of common stock during the periods indicated.Price Range High Low Fiscal Year 2008 First Quarter Ended May 4, 2008 Second Quarter Ended August 3, 2008 Third Quarter Ended November 2, 2008 Fourth Quarter Ended February 1, 2009 Fiscal Year 2007 First Quarter Ended April 29, 2007 Second Quarter Ended July 29, 2007 Third Quarter Ended October 28, 2007 Fourth Quarter Ended February 3, 2008 Cash Dividends Declared $0.225 $0.225 $0.225 $0.225

$30.12 $29.53 $30.16 $25.26

$25.00 $21.46 $18.51 $18.52

$41.76 $40.94 $38.31 $31.51

$36.74 $36.75 $30.70 $24.71

$0.225 $0.225 $0.225 $0.225

As of March 17, 2009, there were approximately 156,000 shareholders of record and approximately 1,200,000 additional shareholders holding stock under nominee security position listings.

HD FY2006-2008 Financial Metrics ($ millions)Metric FY2008 % Change FY2007 % Change FY2006

Net Sales Revenue

$71,288

-7.8%

$77,349

-2.1%

$79,022

Gross Profit

$23,990

-7.7%

$25,997

-2.1%

$26,546

Operating Margin

6.1%

-5.8%

11.7%

0.5%

11.2%

Net Income

$2,260

-48.6%

$4,395

-23.7%

$5,761

Comparable Store Sales

-8.7%

-2.0%

-6.7%

-3.9%

-2.8%

FY 2008 Home Depot vs. Lowe's ($ millions)

Company

Revenue

Net Income

Operating Income

Operating Margin

Comparable Store Sales

Home Depot

$71,288

$2,260

$4,359

6.1%

-8.7%

Lowes Companies

$48,230

$2,195

$3,506

7.3%

-7.2%

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Home Depot operates under four different business segmentsPlumbing, Electrical and Kitchen (30.6% of net sales) Hardware and Seasonal (28.7% of net sales) Building Materials, Lumber and Millwork (22.1% of net sales) Paint and Flooring (18.6% of net sales)

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The Home Depot has a strong "union-free" policy like other major retail companies, such as Wal-Mart In 2004, Home Depot workers at a suburban Detroit store in Harper Woods, MI, rejected a bid to be represented by a labor union, voting 115 to 42 against joining the United Food and Commercial Workers If the union had won, the Michigan store would have been the first Home Depot ever to have union representation. The retailer has more than 2,200 stores in the United States, Canada, Mexico, and China In October 2008, co-founder Bernie Marcus called the Employee Free Choice Act "the demise of a civilization"

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The Home Depot owned EXPO Design Center, a chain of higher-end home decorating and appliance stores, but closed the chain in 2009 In 2006, the Home Depot acquired Hughes Supply which was assimilated into HD Supply serving contractors, which it eventually sold in June 2007 In September 2005, Home Depot Direct launched its high-end online home-furnishings store, 10 Crescent Lane, shortly followed by the launch of Paces Trading Company, its highend online lighting store In mid 2006, the Home Depot acquired Home Decorators Collection which was placed as an additional brand under its Home Depot Direct Division

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Home Depot Landscape Supply, with only a few stores each in metro Atlanta and Dallas/Fort Worth, was founded in 2002 and closed in late 2007 Reports that the Home Depot is interested in acquiring B&Q, the largest DIY retailer in the United Kingdom, Republic of Ireland and China. However, several talks have not yet resulted in a takeover deal Since fiscal 2002, HD has repurchased shares of its common stock having a value of approx $27.3 billion pursuant to its share repurchase program

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The Home Depot Domestic/Import Logistics partners provide transportation and distribution services EDI is The Home Depot method for electronic exchanges of business transactions. The Home Depot EDI program relies on the standards and conventions as developed by the American National Standards Institute (ANSI) Carriers must first establish a business relationship with The Home Depot Logistics Organization before pursuing an electronic partnership with the Supplier Services Department

Fuel centers` `

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In 2006, The Home Depot started fuel centers at some of its stores. The first such "Home Depot Fuel" convenience store (C-Store) was located in Brentwood, Tennessee ,subsequently extending to stores in Hermitage, Nashville; Acworth, Georgia; Smyrna, Tennessee; Greensboro, Georgia; and then Winchester, Tennessee. The centers are expected to earn $5$7 million per year, though the actual number is reported to be much higher. Other than offering beer, foods and snacks the fuel centers offer car washes, which are large enough to accommodate full-size pickup trucks.

Home Depot construction toys ` The Home Depot has its own brand of construction toys, which include plastic hammers, wrenches and screwdrivers but are sold exclusively at Toys R Us Home Depot Expo Design Centers ` Which used Evviva Virtual Art Solutions to leverage the new kiosk appliance to deliver a virtual shopping experience to Home Depot's Expo Design Center customers shopping for artwork

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Operating StrategyOffer a broad assortment of high-quality merchandise and services at competitive prices using knowledgeable, service-oriented associates and strong marketing and credit promotions

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Three primary customer groupsDo-It-Yourself (D-I-Y) Customers Do-It-For-Me (D-I-F-M) Customers Professional Customers

Focused

on style and needs of local neighborhood

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Turned focus from expert associates and in-store experience to consumers and their amazing home improvement stories 60 second documentary in Feb 2007 depicting true stories Sports sponsorship Sponsor home improvement TV programs like Trading Spaces, This Old House, and Take Home Handyman Digital Marketing through homedepot.com

The slogan "More saving. More doing." was introduced by The Home Depot in the March 18, 2009 circular, replacing "You can do it. We can help." which had been used since 2003. Other slogans used in the past 25 years include "The Home Depot, Low prices are just the beginning" in the early 1990s and "When you're at the Home Depot, You'll feel right at home" in the late 1990s and "The Home Depot: First In Home Improvement!" from 1999-2003.

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Build on core values Company has always tried to provide customers great products with excellent service and earn their loyalty has hundreds of thousands of associates who understand, believe, and live these values Five key priorities Associate Engagement Product Excitement Product Availability Shopping Environment Own the Pro

Corporate Governance Overview

HOME DEPOT FOUNDATION

The

Home Depot Foundation is dedicated to building affordable homes for working families that are healthy to live in and affordable to own. We pledged to invest $400 million to build and rehabilitate 100,000 affordable homes and to plant and restore three million trees in ten years.

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No. 5 Ranking for Most Environmentally and Socially Responsible Companies (March) Natural Marketing Institute No. 25 on Fast Company 50 for Forest Friendly Construction (March) Fast Companymagazine Recognized by the U.S. Environmental Protection Agency with its ENERGY STAR Retail Commitment Award. Received the 2005 Salute to Greatness Award from The King Center for demonstrating a commitment to social responsibility in the spirit of Dr. Martin Luther King Jr. Ranked 4th on the HACR Corporate Responsibility Index by the Hispanic Association for Corporate Responsibility

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Received the 2005 Private Sector Leadership Award from the Partnership for Public Service Recognized for its outstanding support of the men and women in the armed services by the Military Officers Association of America, and the United Services Organization (USO) Received the Award for Excellence for Workplace Volunteer Programs from the Points of Light Foundation Recognized by FORTUNE magazine as the No. 1 Most Admired Specialty Retailer and the No. 13 Most Admired Corporation in America for 2006 Golden Halo Award [joint award for KaBOOM! and The Home Depot] from the Cause Marketing Forum

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2006 Hunt-Scanlon Human Capital Advantage Award Corporate Sponsor of the Year from SER- Jobs for Progress National Inc. 2006 CEO Diversity Leadership Award from the Diversity Best Practices (DBP) and the Business Womens Network (BWN) Recognized by G.I. Jobs Magazine as the No. 2 Employer for Military Personnel Ranked No. 8 by Chief Executive magazine on its annual list of Best Companies for Leader (2005 and 2006)

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Since 1991, the company has become a large supporter of athletics, sponsoring the United States and Canadian Olympic teams, and launching a program which offered employment to athletes that accommodates their training and competition schedules. While remaining supportive of Canadian Olympians, the Home Depot ceased to be a sponsor of the Canadian Olympic Team in 2005 Company co-founder Blank also purchased the Atlanta Falcons franchise of the National Football League in February 2002 In January 2007, the Home Depot became the official Home Improvement sponsor of the National Football League Seventy-three percent of the Home Depot's campaign contributions went to Republican candidates in the 2005-2006 US elections

CEO

Upper Senior Management

Organizational Hierarchy

Geographical Division Presidents

Information Services

Legal Matters

Advertising

Merchandise Accounting

Functional Departments Regional Manager Store Manager Store Department Managers

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Strong market position Largest home improvement retailer Product Mix Brand Recognition Strong Customer Base Largest seller of garden products in the US Reinvesting 350million to improve service at existing stores Stocks all premium product brands Targeting DIY customers enable HD to target a diverse customer base Self-checkout aisles and in-store Web kiosks

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Large recalls were announced from 2004 to 2009 Long Term Debt increased Decreasing Stock Prices Decrease in quality control as seen through number and breadth of recalls Store Layout Debt/ Equity ratio increased by more than 30% Much Greater Debt than the industry average.

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Chinese home improvement market valued at 50 million with 20% annual growth rate Repurchased 10 billion in stock from funds acquired through the sale of HD supply 18,000 products sold online Entered into the convenience and fuel sales market with new stores

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Economic GDP projected to fall 3.4% Housing Market Slump Lowes Tight Credit Markets Caused Home Depot to deduct 2billion from its deal on HD supply. Opening of Urban targeted stores in Manhattan US interest rate up to 5.25% Mergers and Acquisitions of other larger retail companies creates a highly competitive market for HD

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In 2008 and 2009, with the downturn in the housing market, The Home Depot announced the layoff of several thousand associates, as well as the closing of 54 stores nationwide, including the entire EXPO Design Center chain. In the year to February 2009 sales totaled $71.288 billion, more than $20 billion down from the peak of two years earlier due to the sale of HD Supply and falling revenue at the retained business Based on 2008 profit of $1.37/share it expects earnings per share from continuing operations to fall by 20 percent to 26 percent Expects sales to fall by about 9 percent this year

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Expects 2009 earnings per share from continuing operations to be flat to down 7 percent from last year, compared with its previous forecast of a 7 percent decline. Earlier this year, Home Depot announced plans to freeze officers' salaries Home Depot which shed about 7,000 jobs earlier this year, cut operating expenses 16.4 percent in the first quarter, which ended on May 3

Home Depot was very vulnerable to interest rate Continued housing market slowdown.. Subprime mortgage crisis in the financial industry has also been a major factor behind Home Depot's struggles.

The Whistleblower case Overhauling brought about by Robert Nardelli Slower growth rate during Nardelli s tenure

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Home Depot stores "cluttered, dark and dirty Home Depot is much more of a warehouse. Lowe's is much more of a shopping experience It did not provide a time frame for that long-term operating target

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Making it more customer-friendly Housing Market downturn- Horizontally integrate Integrate Expo center goods into Home Depot stores cleaner aisles and better stocked shelves do-it-for-me ,rather than the do-it- yourselfers.

PositioningLow Pricing or Promotion Portfolio approach where every product in store has a role and intent which drives the pricing strategy Example Insulation---Home Depot on top of the line for consumers. Lowest price in town AA Battery---impulse product Role and intent defined for products keeping in mind customers and share holders Profit on sales increased and Gross margin expansion No.3 in appliances and are happy there http://money.cnn.com/video/fortune/2009/08/19/ f_cs_tome_recession_home_depot.fortune/

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The worlds largest home improvement retailer. The fourth largest retailer in the U.S. The fifth largest retailer in the world. The Home Depot is the youngest retailer in the Fortune 50. The Home Depot was ranked No. 25 in 2009 on the Fortune 500 U.S. list. The Home Depot was ranked No. 127 in 2009 on the Forbes Global 2000 Largest Companies list. The Home Depot won the ENERGY STAR Partner of the Year Award for our leadership in reducing greenhouse gas emissions through marketing and promotion of energyefficient solutions. Since 1997, more than 17.5 million projects have been completed at Kids Workshops.

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More than 1 million children built their first toolbox at a Kids Workshop The Home Depot is the fastest growing retailer to reach $30 billion, $40 billion, $50 billion, $60 billion and $70 billion in sales. At the end of fiscal year 2006, revenue was $90.8 billion. The Home Depot, The Home Depot Foundation, and our suppliers committed a total of more than $11 million to support recovery and rebuilding efforts throughout the regions impacted by the Hurricanes Katrina, Rita and Wilma. The Home Depot ranked in the top 50 on Forbes 2009 America's Most Reputable Companies list. The domain homedepot.com attracted at least 120 million visitors annually by 2008 according to a Compete.com survey.

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www.wikipedia.com www.homedepot.com www.moneycentralcom

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