2022 Analyst & Investor Conference

D E C E M B E R 7 , 2 0 2 2

Forward-looking statements

This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services, share repurchases, Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, the risk that asset impairment and deal-related transaction costs on the divestiture of the Canadian retail business could ultimately be greater than what we currently expect, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

Brandon Sink

C H I E F F I N A N C I A L O F F I C E R

Affirming 2022 financial outlook

~$97-98B 13.0% $13.65-$13.80

Sales1

Adjusted

Adjusted

Operating Margin2,3

Diluted EPS3

Up to

2B

13B

37

$

$

>

%

~

Capital Expenditures

Share Repurchases

Adjusted Return on

Invested Capital (ROIC)3

Note: Canadian retail business represents 60 basis points dilution to the FY2022 adjusted operating margin outlook.

  1. Includes 53rd week, which is expected to increase total sales by approximately $1.0 - $1.5 billion.
  2. Adjusted Operating Margin represents Adjusted Operating Income as a percentage of Sales.
  3. All full year 2022 outlook adjusted measures exclude asset impairment and expected transaction costs associated with the sale of our Canadian retail business. Adjusted Operating Margin, Adjusted Operating Income and Adjusted Diluted

Earnings per Share are non-GAAP financial measures. In addition, ROIC is calculated using a non-GAAP financial measure. The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort, including timing of and deal-related transaction costs associated with the sale of our Canadian retail business.

2023 scenario planning

GIVEN THE UNCERTAIN NATURE OF THE SECTOR'S PERFORMANCE AND RANGE OF POSSIBLE OUTCOMES, LOWE'S HAS MODELED VARIOUS FINANCIAL RESULTS IN 2023

Fiscal 2023 Scenarios1

O U T L O O K

R O B U S T

M O D E R A T E

W E A K

2 0 2 2 2

M A R K E T

M A R K E T

M A R K E T

T O TA L S A L E S

$97 - 98B

$92B

$90B

$87B

Comp Sales

Flat to -1.0%

+2%

-1%

-4%

A D J . O P E R AT I N G I N C O M E

$13B

$13B

$12B

$12B

% of Sales

13.0%

13.9%

13.7%

13.3%

vs. LY

+40 bps

+90 bps

+70 bps

+30 bps

R O I C

>37%

~40%

~38%

~36%

Flat to +1%

-2% to -3%

-5% to -6%

R E L E VA N T M A R K E T

  1. Each scenario assumes that the sale of the Canadian retail business is complete at end of fiscal year 2022.
  2. Includes 53rd week, which is expected to increase total sales by approximately $1.0 - $1.5 billion. Full year 2022 outlook for Adjusted Operating Income, which is a non-GAAP financial measure, and ROIC, which is calculated using a non-GAAP financial measure, excludes asset impairment and expected transaction costs associated with the sale of our Canadian retail business.

.

Note: Lowe's relevant market is 75% DIY / 25% Pro vs. Total Market of 50% Pro / 50% DIY.

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Lowe's Companies Inc. published this content on 07 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2022 14:41:05 UTC.