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Mr Nick

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Building Better Home Improvement Experiences

2012 ANNUAL REPORT

Building Better Home Improvement Experiences

Learn more by visiting our online Annual Report at www.Lowes.com/2012annual or scan the QR code with your smartphone.

Shareholder Letter
Great customer experiences start with our associates, whether they interact with customers face-to-face or work tirelessly behind the scenes to simplify the complex business of home improvement. And together, Lowe’s associates are building better home improvement experiences. We’ve laid the foundation to transform our core business over the past two years, and we will continue our efforts in 2013 and beyond. We expect to generate compelling returns for shareholders as we further align our people, processes and financial resources to provide better home improvement experiences.
2012 PERFORMANCE We delivered solid performance in 2012. Comparable store sales grew 1.4% and total sales grew 0.6% to $50.5 billion. Net earnings increased by 6.5% to $2.0 billion and diluted earnings per share increased 18.2% to $1.69. Operating cash flows, along with the net issuance of $1.4 billion of long-term debt, were used to acquire $1.2 billion in fixed assets and return $5.1 billion to shareholders through dividends and share repurchases.
Robert A. Niblock Chairman of the Board, President and Chief Executive Officer

OUR PROGRESS Our transformation is centered on the customer. In the inspiration phase of a project, customers realize they want to change something about their home whether it’s a room, their home’s exterior or their yard. They are looking for assistance, recommendations and solutions. With the breadth of products and services we offer and the support of our distribution and technology platforms, we have a unique opportunity to make home improvement simpler and to seamlessly meet customer needs across selling

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