December 6, 2017

Kevin HofmannPresident, Online and Chief Marketing Officer

Interconnected Investments

1

Marketing Progress

Media Mix Shift Results and RecognitionReturn on Ad Spend

2011 Current

TRADITIONAL

TRADITIONAL

DIGITAL

DIGITAL

% OF TOTAL WORKINGMEDIA SPEND

TOP SOCIALMEDIA

- RETAIL-2016

Sprinklr

THE BESTDIGITAL

MARKETERS#2 RANK

Ecommerce List

2013 2014 2015 2016

2

Online Progress

Online Visits Results and RecognitionOnline Sales

BEST INMOBILE

L2

OMNICHANNELRETAILER

OF THE YEAR

2017

Internet Retailer

#1 BIG BOXRETAILER

FOR 3 YEARS

L2

2013 2014 2015 20162013 2014 2015 2016

3

Aligning with One Home Depot Strategy

4

FLEXIBLE

PERSONAL

EASY

Aligning with One Home Depot Strategy

5

FLEXIBLE EASY

PERSONAL

Know: The Power of Our Data

…TO KNOW AND UNDERSTAND OUR CUSTOMER BETTER

CustomerLocation

EmailEngagement

Mobile AppBehavior

StoreOnline Visits& Transactions

Services

Media Partners

VendorData

PublisherData

BuildingPermits

OnlineBehavior

Demographics PropertyData

Mobile Location Data

3rd Party Credit Card Transactions

www

SOURCES OF CUSTOMER DATA…

1.7 TrillionData points per week in various

predictive models

ProXtra

Private Label Credit Card

+90 MillionTotal customer

households

+50 MillionActive customer households in

last 12 months

6

Knowing Our Customers

Millennials at THD One-fifth of THD’s consumer sales

Open to difficult home improvement projects

Love THD brand as much as other generations

Millennials Largest generation

Most likely generation to buy homes

Consider themselves DIY’ers

Brand loyal

Sources: U.S. Census Bureau; adroitdigital.com

7

Target: Reaching Our Customers

FACEBOOK PINTEREST DISPLAY ADS RADIO PRINTSEARCH TELEVISION

Digital Traditional

• Weather Triggering

• Mobile Location Data

• Geo-Fencing

• Competitor Conquesting

• Mobile App Conquesting

• Retargeting

• Product Attach

• Propensity Models

• Lookalike Modeling

• Interest/PersonaBased Targeting

• Search-Based Targeting

8

Targeting in Digital ChannelsWeather-Triggering

Geo-Fencing

Google Local Inventory Ads

Pinterest“Shop the Look”

9

10

Targeting in Traditional Channels

Targeting in Traditional ChannelsSame Neighborhood - Same Street - Same Show - Different Ads

Holiday Pro TVHoliday Gift Center TV

11

Takeaway Bar

Tailor: Personalize our Message

12

Aligning with One Home Depot Strategy

13

PERSONAL

EASYFLEXIBLE

Interconnected InvestmentsFulfillment

CapabilitiesDigital

InfrastructureExtended Reach &

Enhanced Experiences

14

Enhancing ExperiencesContext AwareLocation Aware Persona Aware

Pro Experience

Consumer Experience

15

Atlanta, GA Home Page in Dec.Atlanta, GA Home Page in Dec.

Boston, MA Home Page in Dec.Boston, MA Home Page in Dec.

Contextually Aware

16

One Home Depot Strategy

17

FLEXIBLE

PERSONAL

EASY