Tractor Supply Company · NASDAQ:TSCO
Tractor Supply — Q4 2021 Earnings Presentation
109 slides from Tractor Supply's earnings presentation, Jan 27, 2022
Slide 1: Enhanced Earnings Event Q4 2021
Enhanced Earnings Event Q4 2021 January 27, 2022
Slide 2: Welcome
Welcome Mary Winn Pilkington Senior Vice President, Investor and Public Relations
Slide 3: Agenda
Agenda Kurt Barton Hal Lawton Q4 and FY 2021 Earnings Recap President & CEO EVP, Chief Financial Officer & Treasurer Hal Lawton Life Out Here President & CEO Christi Korzekwa Capitalizing on Customer Insights SVP, Marketing John Ordus Leading with Legendary Service EVP, Chief Stores Officer BREAK Ro
Slide 4: Safe Harbor and Non-GAAP Measures
Safe Harbor and Non-GAAP Measures The Company claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The information in this presentation contains certain forward-looking statements. These statements discuss, among o
Slide 5: Hal Lawton
Hal Lawton President and Chief Executive Officer
Slide 6: Q4 and FY 2021 Review
Q4 and FY 2021 Review January 27, 2022
Slide 7: Slide 7
Slide 8: 2021 Milestones
2021 Milestones Another Year of Record Sales and Earnings Opened our 2,000th Store 23.6 Million Neighbor’s Club Members, +24% Unaided Brand Awareness Reached 55%, +2100 bps Broke Ground on our 9th Distribution Center Released New ESG Goals Successfully Navigated Supply Chain Disruptions and Unpreced
Slide 9: Q4 2021 Performance Highlights
Q4 2021 Performance Strong Sales Growth Net Sales Growth ($ in Billions) HIGHLIGHTS +15.3% $3.3 7th Consecutive Quarter with 10%+ $2.9 Comparable Store Sales Growth Q4 2020 Q4 2021 Average Ticket Up 10.3% Comp Sales Growth Customer Transactions 27.3% +40.0% 2-Year Stack Increased 2.4% 12.7% Double-d
Slide 10: FY 2021 Performance Highlights
FY 2021 Performance Strong Sales Growth Net Sales Growth ($ in Billions) HIGHLIGHTS +19.9% $12.7 $10.6 Sales Surpass $12B – A New Record E-commerce Sales Penetration FY 2020 FY 2021 Reached 7%; Triple-Digit E-commerce Growth from FY 2019 Comp Sales Growth +40.0% Average Ticket Up 9.8% 23.1% 2-Year S
Slide 11: Broad-Based Strength in Customer Trends
Broad-Based Strength in Customer Trends Record Retention Rates, Spending and Engagement Neighbor’s Club More Customers Shopping Tractor Supply than Ever Before 23.6M Members
Slide 12: Kurt Barton
Kurt Barton Executive Vice President and Chief Financial Officer
Slide 13: Q4 2021 Performance
Q4 2021 Performance Gross Margin Adjusted SG&A Expenses as a % of net sales as a % of net sales 83 bps Decrease 68 bps Improvement 25.6%* 24.9% 34.6% 33.8% Q4 2020 Q4 2021 Q4 2020 Q4 2021 Key Drivers Key Drivers • Strong Price Management Actions • Leverage in Occupancy & Other Fixed Costs • Continua
Slide 14: Q4 2021 Performance: Profitability
Q4 2021 Performance Profitability Adjusted Operating Income Adjusted Net Income Adjusted Diluted EPS ($ in Millions) ($ in Millions) +13.4% +14.6% +17.7% $293.1 $221.3 $1.93 $258.5* $193.2* $1.64 * Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 *Adjusted to exclude non-cash impairment charge in Q4
Slide 15: FY 2021 Performance: Profitability
FY 2021 Performance Profitability Adjusted Operating Income Adjusted Net Income Adjusted Diluted EPS ($ in Millions) ($ in Millions) +22.0% +23.7% +25.3% $997.1 $8.61 $1,306.7 * $1,071.0 * $806.2* $6.87 FY 2020 FY 2021 FY 2020 FY 2021 FY 2020 FY 2021 *Adjusted to exclude non-cash impairment charge i
Slide 16: Additional Financial Highlights
Additional Financial Highlights Strong Free Cash Flow Generation Balance Sheet Remains Strong Average Inventory per Store +15% Strong New Store Economics $1 Billion in Capital Returned to Shareholders through Dividends and Share Repurchases
Slide 17: FY 2022 Outlook (53-Week Year)
Net Sales $13.6B to $13.8B Comparable Store Sales +3.0% to +4.5% Operating Margin Rate 10.1% to 10.3% Net Income $1.04B to $1.08B Diluted Earnings Per Share $9.20 to $9.50 Effective Tax Rate 22.6% to 23.1% Capital Expenditures $625M to $675M Share Repurchases $700M to $800M (53-Week Year) 14
Slide 18: Additional Modeling Considerations for FY 2022
• 53rd Week Impact: Adds 1.5 Additional Modeling Percentage Points to Net Sales & ~$0.15 Earnings per Diluted Share Considerations for • Positive Transaction & Ticket Growth • Gross Margin and SG&A: Flattish Year-Over-Year • Outlook Excludes Prospective (53-Week Year) Acquisition of Orscheln Farm &
Slide 19: Life Out Here Strategy
LIFE’/ HERE STRATEGY We are committed to being an integral part of our customers’ lives as the dependable supplier of Out Here Lifestyle solutions. Anytime e Anywhere e Anyway TRACTOR SUPPLY C2 g Ih 5; + > SS: x cal Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities Operate t
Slide 20: Life Out Here
Life Out Here Hal Lawton President, Chief Executive Officer
Slide 21: Bright Past, Brighter Future
Bright Past, Brighter Future
Slide 22: Our Culture is a Competitive Advantage
Our Culture is a Competitive Advantage
Slide 23: Stewards of Life Out Here
Stewards of Life Out Here Ambitious Goals Transparent Reporting Independent Recognition NET ZERO EMISSIONS ACROSS ALL OPERATIONS BY 2040
Slide 24: Strong Track Record of Performance
Strong Track Record of Performance Sales Growth EPS Growth New Store Growth 20 Year CAGR = 14.5% 20 Year CAGR = 21.4% 20 Year CAGR = 10.0% $12.7B $8.61 178 2,003 $850M 323 $0.18 2001 2021 2001 2021 2001 2021 Note: 2001 EPS is adjusted to reflect four stock splits since that time.
Slide 25: Resilient and Proven Business Model in a Challenging Environment
Resilient and Proven Business Model in a Challenging Environment Capitalizing on Growing Market Capturing Structural with Significant Growth Through Advantages Opportunity Strategic Actions
Slide 26: Significant and Enduring Structural Advantages
Significant and Enduring Structural Advantages Strong Brand 46,000+ Team Members 23.6M Neighbor’s Club Members Resilient Supply Chain Digital Capability 2,000+ Stores
Slide 27: Effectively Navigating Market Conditions
Effectively Navigating Market Conditions Tailwinds Homestead Rural Trip Pet Self- Sanctuary Revitalization Consolidation Ownership Reliance Headwinds Supply Labor Inflation COVID-19 Constraints Market
Slide 28: Total Addressable Market: Significant Opportunity for Growth
Total Addressable Market: Significant Opportunity for Growth ~$180B ~$140B 7% 9% ~$110B +50% 8% Market Expansion Market Growth +$40B Market +$30B +27% 2019 2021 2021 Including Market Expansion Note: 2019 TAM share represents 2019 Net Sales / TAM . Previous estimates compared 2020 Net Sales to the 20
Slide 29: Increasing Long-Term Store Growth Targets
Increasing Long-Term Store Growth Targets 2,700 New Long-Term Target 2,500 Prior Long-Term Target Note: Excludes Petsense locations and Orscheln opportunity
Slide 30: Strategy: Customer Commitment and Priorities
Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities We are committed to being an integral part of our customers’ lives as the dependable supplier of Operate the Tractor Way Out Here Lifestyle solutions. Anytime • Anywhere • Anyway Go the Country Mile for Our Team Generate Heal
Slide 31: Life Out Here Strategy
LIFE"S/ HERE STRATEGY
Slide 32: Strategy
STRATEGY LIFE’ HERE
Slide 33: Strategy
STRATEGY LIFE’S7 HERE
Slide 34: Life Out Here Strategy
LIFE"S/ HERE STRATEGY SAVE UP TO 30% ‘Select Toys, Ride Ons and Playsets SAVE NOW ‘Coleman Go-Kart KT196
Slide 35: Lead with Legendary Service, Increase Mobile Engagement, Deliver on CUE
Lead with Legendary Service Increase Mobile Engagement Deliver on CUE
Slide 36: Updated Long-Term Targets
Updated Long-Term Targets FY22-26 Financial Outlook Net Sales Growth 6 to 7% Comp Sales Growth 4 to 5% Operating Margin % 10.1 to 10.6% Diluted EPS Growth 8 to 11% Store Opportunity 2,700
Slide 37: Yesterday / Tomorrow
Yesterday LIFES HERE STRATEGY
Slide 38: Capitalizing on Customer Insights
Capitalizing on Customer Insights Christi Korzekwa Senior Vice President, Marketing
Slide 39: Robust, Attractive, Growing Market
Robust, Attractive, Growing Drivers Market Rural Revitalization Homestead Sanctuary Pet Ownership 40M+ Additional Customers Available in Self-Reliance Our Trade Areas
Slide 40: Expanding Customer Base
Core Farm and Ranch New Customer Shopping More Categories, More Frequently Increased Participation in Out Here Lifestyle Expanding Customer Base
Slide 41: Differentiating Program to Grow Customer Loyalty
Differentiating Program to Grow Customer Loyalty Re-Launched Program in 2021 • Introduced Points and Tiers • Enhanced Member Experiences • Positioned for Growth
Slide 42: Winning with Neighbor's Club
WINNING WITH NEIGHBOR’S CLUB 23.6M Members Enrolled 70% Penetration of Total Sales 97%+ Top-Tier Customer Retention 3X Member vs. Non-Member Spend 5
Slide 43: Increasing High-Value Customers
Increasing Key High-Value Customers Categories Animal Feed Pet Gardening & Land Tools / Equipment Grew Number of High-Value Outdoor Living Customers by 50% Since 2019
Slide 44: Core Customer Example: Jake
Core Jake Customers (High-Value Tier) Shopping Across More Core Farm and Ranch Customer since 2017 Categories Annual Spend: $4,500 Annual Transactions: 30 Departments Shopped: 7 Jake is a Intro New Added Outdoor Core Farm to TSC Puppy Livestock Gardening Living Nov 2017 Jan 2018 Oct 2018 Nov 2019 Ju
Slide 45: Acquired Nearly 19M New Customers
New Customers Growing their Acquired Engagement in the Out Here Nearly Lifestyle 19M New Customers with 55% Repeat Shopping Rate
Slide 46: New Customer Example: Sarah
New Sarah Customers (New Customer) Seek Convenience Customer since 2020 and Annual Spend: Annual Transactions: $1,150 20 Know-How Departments Shopped: 5 Sarah is a Started Raising Chickens Pet Clothing Gardening New Poultry Apr 2020 Jun 2020 Nov 2020 Mar 2021 Enthusiast Live Bird Pet Food & Outerwea
Slide 47: Personalizing Messages to Our Customers
Personalizing Messages to Our Customers Core Farm and Ranch New
Slide 48: Powerful Investments in High Profile Awareness Marketing
Powerful Investments in High Profile Awareness Marketing
Slide 49: We're Making Tractor Supply a Household Name
We’re Making Tractor Supply a Household Name +2100bps +1000bps +25% Unaided Brand Increase in Increase in Favorite Awareness Consideration Retailer Ranking
Slide 50: Compelling Gameplan for Growth
Compelling Gameplan for Growth Robust, Growing, Attractive Market Extremely Loyal Customers with Record Retention Best-in-Class Neighbor’s Club, Driving Expansive Growth Industry-Leading Platforms for Personalization Powerful Investments in High-Profile Awareness Marketing
Slide 51: Leading with Legendary Service
Leading with Legendary Service John Ordus Executive Vice President, Chief Stores Officer
Slide 52: Positioning to Lead with Legendary Service
Positioning to Lead with Legendary Service Our GURA and the Our Stores, Leading with Game Plan Mission Country Mile Team Members Legendary for Growth and Customers Service
Slide 53: Our Mission and Our Promise
Our Mission and Our Promise Goal: Become the #1 Industry Leader in Customer Service
Slide 54: Going the Country Mile with GURA
Going the Country Mile with GURA Our Team Members Make the Difference Our Team Members live the GURA is our proven service We reward Team Members Out Here Lifestyle and program to treat every who keep commitments and provide seasoned advice Customer like a neighbor Go the Country Mile!
Slide 55: Jacob Tilson
Jacob Tilson Jonesborough, TN
Slide 56: Key Customer Service Metrics
Key Customer Service Metrics Our Customers Value Friendly, Knowledgeable, Efficient Service Best-In-Class Customer Perception of Purchase Drivers Team Member Industry Benchmark Friendliness 0% 10% 20% 30% 40% 50% 60% 70% Speed and Ease Industry Benchmark of Checkout 0% 10% 20% 30% 40% 50% 60% Team M
Slide 57: Optimizing Customer Time
Optimizing Customer Time Our Operating Model is the Foundation for Efficiently Creating More Customer Time Tractor Way FAST Team High Volume Legendary Operating Model Service Model Continuous Task Efficiency and More Time for GURA
Slide 58: Training to Drive GURA
Training to Drive GURA Average Amount Spent by GURA Experience Consistent GURA Execution Increases Customer Experience, Spend, and Sales Greet Upon Entering Uncover Needs Recommend Products Ask for Purchase No Yes +15% Increase in Spend When All Four GURA Steps are Executed
Slide 59: Enabling Customer Convenience
Enabling Customer Convenience Additional Selling Tools will Drive Team Member Productivity One Integrated Mobility Device Expand Communication Capabilities Capture Additional Sales with Omni Technology Conversion We are Enabling Experts
Slide 60: Compelling Gameplan for Growth
Compelling Gameplan for Growth Leading with Differentiated, Relationship-Driven Customer Experience Refining our Operating Model to Create More Customer Facing Time Delivering on Our Commitment of Legendary Customer Service Utilizing New and Existing Technology to Drive Convenience
Slide 61: Capturing Digital Growth
Capturing Digital Growth Rob Mills Executive Vice President, Chief Technology, Digital Commerce and Strategy Officer
Slide 62: E-commerce Growth, BOPIS and Mobile App Sales
38 Quarters of Double-Digit+ E-commerce Growth ~80% BOPIS Transactions 10%+ Mobile App Sales as a % of Total E-commerce Sales
Slide 63: Digital Visits and First-time Customers
NEARLY 20% YoY Growth in Digital Visits OVER 1.4 Million First-time Customers Came Through a Digital Channel in 2021
Slide 64: Our Digital Opportunity: E-commerce vs. Retail Peers
Our Digital Opportunity E-commerce % of Sales vs. Select Retail Peers 20% 15% 10% 5% Average Farm & Ranch 0%
Slide 65: Our Digital Opportunity: Digital Penetration
Our Digital Opportunity Digital Penetration as a % of Sales >15% $2B 7% <1% PA S T PRESENT FUTURE
Slide 66: Increasing Mobile Engagement
Increasing Connecting Our Customers Advancing the Omni- Mobile Engagement with Care for Pet & Animals Channel Delivery Experience
Slide 67: Increasing Mobile Engagement
Increasing Connecting Our Customers Advancing the Omni- Mobile Engagement with Care for Pet & Animals Channel Delivery Experience
Slide 68: Our Mobile Focus
Our Mobile Focus Frictionless Shopping – Anytime, Anywhere, Anyway Data-Driven Personalized Experiences Differentiating for Out Here Lifestyle
Slide 69: Frictionless Shopping and Neighbor's Club Rewards
Frictionless Shopping Neighbor’s Club Rewards Market Wayfinding
Slide 70: A Place to Manage Your Pet's Needs
A Place to Manage Your Pet’s Needs Easy Access to: Pet Prescriptions | Veterinarian Access | Managing Subscriptions | Scheduling Appointments
Slide 71: Differentiating by Connecting Customers and Team Members
Differentiating by Connecting Customers and Team Members Access to Experts Assisted Shopping: In App Checkout machine learning (skip the line)
Slide 72: Increasing Mobile Engagement
Increasing Connecting Our Customers Advancing the Omni- Mobile Engagement with Care for Pet & Animals Channel Delivery Experience
Slide 73: Connecting Our Customers with Care for Pet & Animals
Connecting Our Customers with Care for Pet & Animals Subscriptions Prescriptions Vet Services
Slide 74: Increasing Mobile Engagement
Increasing Connecting Our Customers Advancing the Omni- Mobile Engagement with Care for Pet & Animals Channel Delivery Experience
Slide 75: Increasing Mobile Engagement
Increasing Connecting Our Customers Advancing the Omni- Mobile Engagement with Care for Pet & Animals Channel Delivery Experience
Slide 76: Strategy: Customer Commitment and Priorities
Deliver Legendary Customer Experiences Advance Our ONETractor Capabilities We are committed to being an integral part of our customers’ lives as the dependable supplier of Operate the Tractor Way Out Here Lifestyle solutions. Anytime • Anywhere • Anyway Go the Country Mile for Our Team Generate Heal
Slide 77: Compelling Gameplan for Growth
Compelling Gameplan for Growth Capture Significant Market Share by Creating Best-in-Class Digital Interactions Deploy Best-in-Breed Technology that Capitalizes on our Unique Strength in the Pet and Animal Categories Own the Relationship with our Customers at all Times Through Conversational Commerce
Slide 78: Transforming the Store Experience
Capitalizing on Customer Insights Seth Estep Executive Vice President, Chief Merchandising Officer
Slide 79: Delivering on Our Strategic Investments
Delivering on Our Strategic Investments Fusion Fusion + Side Lot Store Base by 2026 +MSD +HSD Comp Sales Lift Comp Sales Lift 100% 60-70% 1. From FY22 onward, we will be rolling out Side Lot to target stores at the same time as the Fusion remodel, which are referred to as "Combo stores"
Slide 80: Compelling Gameplan for Growth
Compelling Gameplan for Growth Deliver on Our Strategic Investments Drive Innovation and Differentiated Product Assortments Capture Market Share of Expanded TAM with Core and New Customers Be the Indispensable Supplier for Life Out Here
Slide 81: Delivering the CUE Demand
Delivering the CUE Demand Colin Yankee Executive Vice President, Chief Supply Chain Officer
Slide 82: Tractor Supply is the Leader in CUE
Tractor Supply is the Leader in CUE For the Out Here Lifestyle
Slide 83: CUE Volume Growth per Store
CUE Volume Growth per Store 2021 Growth Rate (over 2019) +26% Cubic Volume +18% Unit Volume
Slide 84: Growth Initiatives Driving CUE Demand
Growth Initiatives Driving CUE Demand Growth Drivers CUE Opportunity Differentiated Brands Volume Assortment and Market Share Growth Fusion Velocity Side Lot Variety Neighbor’s Club
Slide 85: Deliver on CUE: End-to-End Operational Efficiency
Deliver on CUE End-to-End Operational Efficiency 1 DC Network Expansion More Volume 2 Advanced Inventory Planning Through 3 Replenishment Frequency Store Footprint 4 Mixing Center Expansion 5 Real Time Visibility Lowest Cost 6 Store Process Engineering per Pound 7 Space Utilization 5
Slide 86: Scale the Supply Chain
Scale the Supply Chain Frankfort Waverly Pendleton Hagerstown Franklin Casa Grande Macon Waco Distribution Centers Future Distribution Centers
Slide 87: Advanced Technology to Drive Operational Efficiency
Advanced Technology to Drive Operational Efficiency Vendor Days of Order Localized Performance the Week Coordination Price/Promotion Seasonality Machine Traffic Learning External Trend Weather Space Data Changes Allocation
Slide 88: Mixing Center Network
Mixing Center Network Frankfort Strategically Located Waverly Pendleton Just-In-Time Replenishment Facilities Hagerstown Franklin Top 100 CUE items in full pallet quantities Casa Grande +150 to +200 bps Macon of in-stock improvement Waco Removes 400 sq. ft. of Mixing Centers safety stock from store
Slide 89: Real Time Visibility
Real Time Visibility Predictive Arrival Analytics Staffing Optimization Space and Equipment Allocation
Slide 90: Compelling Gameplan for Growth
Compelling Gameplan for Growth Industry-Leading Position as Dependable Supplier for CUE Products Opportunity to Drive Throughput in Existing Store Network Continuous Improvement for End-to-End Operational Efficiency Flexible and Agile Supply Chain Network
Slide 91: Delivering Strong and Sustainable TSR
Delivering Strong and Sustainable TSR Kurt Barton Executive Vice President, Chief Financial Officer
Slide 92: Strong and Sustainable TSR
From October 2020 Enhanced Earnings Call Focus on Delivering Strong and Sustainable TSR Differentiated and Disciplined Capital Durable Core Business Stewardship #1 farm & ranch retailer Deliver Legendary Strong and durable with substantial growth potential Customer Experiences financial performance
Slide 93: We Continue to Add Important New Strengths
We Continue to Add Important New Strengths Differentiated and Disciplined Durable Core Business Capital Stewardship High quality growth mix Lead with The “Power of AND” from a diverse range of sources Legendary Service Make significant investments that protects gross margin to grow the business Incr
Slide 94: Tractor Supply's Growth is Firing on All Cylinders
Tractor Supply's Growth is Firing on All Cylinders Strength and Diversity of Comp Growth in FY20 & FY21 Strong Substantial Omnichannel Market share gains customer growth volume growth growth in new categories Inflation Digital New/ New Expanding customers Ticket Categories Basket growth Brick & Exis
Slide 95: High-Quality and Durable Growth Outlook
High-Quality and Durable Growth Outlook Long-Term (FY22-26) Long-Term Drivers Revenue Growth Composition 2% 6 to 7% Comp growth • Growth in customer demand 4 to 5% • TAM expansion • Side Lot and Fusion • #1 in customer experience • Neighbor's Club Loyalty Program New total store target of 2,700 • +2
Slide 96: Expected Evolution of Long-Term Operating Margin
Expected Evolution of Long-Term Operating Margin Drivers of Increase to Long-Term (FY22-26) Potential Additional Operating Margin Outlook Margin Opportunities 10.1 to 10.6% Normalization of 9 to 9.5% investments to sustain growth trajectory Operating Operating Pricing & Product Leverage Efficiency P
Slide 97: Significant Progress Made on Strategic Investments
Significant Progress Made on Strategic Investments Omnichannel 314 166 +4.6M 80% stores completed to date stores completed to date new members in FY21, annual e-commerce 23.6M total members growth since FY19 Halved ~70% of total sales from 7% digital sales penetration completion time and store disru
Slide 98: We Remain Highly Disciplined in How We Allocate Capital
We Remain Highly Disciplined in How We Allocate Capital Priority Capital Allocation Priorities Our approach Organic growth Significant investments in strategic initiatives investments and new stores, accelerated where appropriate Healthy and growing Dividends growing at least as fast as earnings div
Slide 99: Robust Free Cash Flow Enables the Power of AND
Robust Free Cash Flow Enables the Power of “AND” ~$8B ~$5B FY22-26 Cumulative Operating Cash Flow FY22-26 Cumulative Free Cash Flow Making significant Returning significant investments to deliver capital ($6B+) through sustainable long-term growth AND dividends and buybacks $3B in CapEx investments
Slide 100: Updated Long-Term (FY22-26) Financial Outlook
Updated Long-Term (FY22-26) Financial Outlook Pre-COVID Past 2 years1 Long-Term FY19 Adjusted2 FY22-26 outlook Net Sales Growth 5.6% 23.5% 6 to 7% Comp Sales Growth 2.7% 20.0% 4 to 5% Operating Margin % 8.9% 10.2%2 10.1 to 10.6% EPS Growth 8.1% 36.4%2 8 to 11% Leverage (Debt/EBITDAR)3 2.0x 2.0x2 2.0
Slide 101: Strong Financials Enable Double Digit TSR Potential
Strong Financials Enable Double Digit TSR Potential Long-Term (FY22-26) Annualized TSR Performance ~1.5% 10 to 12% 2 to 2.5% Potential upside from: 0 to 1% • Strategic initiatives 6 to 7% • Tuck-in acquisitions • Multiple expansion Revenue Margin Share Dividends Annualized growth expansion repurchas
Slide 102: Compelling and Sustainable Long-Term Financial Outlook
Compelling and Sustainable Long-Term Financial Outlook Strong & Sustainable Long-Term Growth: Comps, TAM Expansion and New Stores Attractive Margin Profile with Higher Operating Margin Outlook The “Power of AND": Significant Organic Investments AND Return of Capital Strong and Balanced Double-Digit
Slide 103: Life Out Here
TRACTOR SUPPLY C2 Life Out Here Hal Lawton
Slide 104: Today's Headlines
Today’s Headlines Structural Consumer Trends Continue Robust Long-Term Outlook Update Growth in our TAM to $180 Billion from $110 Billion Increase in Store Growth Opportunity to 2,700 locations, +200 stores Balance Return of Capital to Shareholders: Raising Quarterly Dividend by 77% and Increasing S
Slide 105: Yesterday / Tomorrow
Yesterday LIFES HERE STRATEGY
Slide 106: Tractor Supply Co For Life Out Here
TRACTOR SUPPLY Co FOR LIFE OUT HERE
Slide 107: Appendix
TRACTOR SUPPLY C2 Appendix a
Slide 108: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company also uses certain non-GAAP measures that fall within the meaning of Securities and Exch
Slide 109: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Fiscal Year Ended Fiscal Year Ended 12/26/2020 12/25/2021 Net Income $ 748,958 $ 997,114 Add: Interest Expense, net of interest income 28,781 26,610 Depreciation and amortization 217,124 270,158 Income Taxes 219,189 282,974 EBITDA $ 1,214,052 $ 1
Tractor Supply Company — Q4 2021 Earnings Presentation on 6ix