Home Depot, Inc. (the) · NYSE:HD
Home Depot, Inc. (the) — The Home Depot — Merger or Acquisition (March 2024)
15 slides from Home Depot, Inc. (the)'s merger presentation, Mar 28, 2024
Slide 1: The Home Depot to Acquire SRS Distribution
The Home Depot to Acquire SRS Distribution March 28, 2024
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and Non-GAAP Financial Measures Certain statements contained herein 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 proposed acquisition of SRS Dis
Slide 3: The Home Depot Strategy
The Home Depot Strategy Grow Market Share Create Exceptional Objectives with Pros and Consumers Shareholder Value Strategies DELIVER THE BEST DEVELOP EXTEND OUR CUSTOMER DIFFERENTIATED LOW-COST PROVIDER EXPERIENCE CAPABILITIES POSITION 3 CONFIDENTIAL
Slide 4: Key Growth Opportunities
Key Growth Opportunities INTERCONNECTED PRO NEW CUSTOMER ECOSYSTEM STORES EXPERIENCE SRS expands our Pro Ecosystem 4 CONFIDENTIAL
Slide 5: SRS's Strong Performance and Track Record of Growth
SRS’s Strong Performance and Track Record of Growth ROOFING & BUILDING LANDSCAPE POOL PRODUCTS Entered in 2008 Entered in 2019 Entered in 2021 2023 REVENUE 2023 ADJUSTED EBITDA ~ $10B ~ $1.1B MULTI-FACETED GROWTH APPROACH % Same-Store Sales NOW OPEN Greenfields M&A Digital Notes: 2023 revenue and ad
Slide 6: SRS has a Robust Set of Capabilities for the Pro
SRS has a Robust Set of Capabilities for the Pro Strategic Locations 760+ branches and warehouses across 47 states 2,500+ inside and outside professional Salesforce sales representatives Delivery Fleet 4,000+ flatbed, box, and boom delivery assets SRS ASSETS & Brands & Assortment Trusted brands with
Slide 7: Experienced Leadership Team to Support Continued Growth and Value Creation
Experienced Leadership Team to Support Continued Growth and Value Creation with The Home Depot President & Chief Human President, President, President, Chief Financial Chief Digital Chief Supply Chief Executive Resource Building Heritage Landscape Heritage Pool Officer Officer Chain Officer Supply G
Slide 8: SRS Accelerates The Home Depot's Growth
SRS Accelerates The Home Depot’s Growth ▪ Housing is a large asset class worth over ~17% $45 trillion THE HOME DEPOT MARKET SHARE ▪ Establishes The Home Depot as a leading specialty trade distributor across three different verticals ~$1T ▪ SRS’s model is complementary to The Total Addressable Home D
Slide 9: SRS Expands The Home Depot's Capabilities
SRS Expands The Home Depot’s Capabilities Specialty Trade Pro Customer Renovator/Remodeler, Small Homebuilder, MRO Type (1) and Property Investor Electrician, HVAC, Millwork, Painter, Plumber, Wallboard, etc. Roofer Landscaper Pool The Home Grow leading Depot Expand & strengthen offering to serve re
Slide 10: Transaction Overview & Financial Highlights
Transaction Overview & Financial Highlights ▪ $18.25 billion transaction value implies a multiple of approximately 16.1x 2023E Adj. EBITDA(1) Transaction ▪ SRS senior leadership is fully committed to continue to lead this exceptional and growing business Overview ▪ Transaction is subject to customar
Slide 11: Creates Significant Long-Term Value
Creates Significant Long-Term Value INCREASE REVENUE OPERATING PROFIT GENERATE SUPERIOR WITH THE PRO DOLLAR GROWTH RETURNS 11 CONFIDENTIAL
Slide 12: Appendix
Appendix CONFIDENTIAL
Slide 13: Non-GAAP Measures
Non-GAAP Measures The Company’s presentation includes the pro forma adjusted debt/EBITDAR ratio at the anticipated closing date of the transaction and the pro forma adjusted debt/EBITDAR ratio that the Company expects to achieve over a 24-month period following closing of the transaction. This suppl
Slide 14: Adjusted Debt Calculation
Adjusted Debt Calculation Adjusted Debt Calculation Pro Forma Pro Forma (USD millions) The Home Depot(1) SRS(2) Adjustments Combined Long-term debt (including current installments of long-term debt) $ 44,111 $ 5,812 n/a $ 49,923 Repayment of SRS debt at close(3) n/a n/a $ (5,537) $ (5,537) Pro forma
Slide 15: EBITDAR & Adjusted Debt/EBITDAR Calculations
EBITDAR & Adjusted Debt/EBITDAR Calculations EBITDAR Calculation The Home Pro Forma Adjusted Debt/EBITDAR Calculation (USD millions) Depot(1) SRS(2) Combined(5) Net earnings $ 15,143 $ 75 $ 15,218 The Home Pro Forma (USD millions) Depot Combined Interest and other, net(3) 1,765 404 2,169 Adjusted de