THE HOME DEPOTAsset Protection Group

Shawn B. BlankenshipVice President Asset ProtectionApril 30, 2015

Company Culture

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US Retail Store Location / Stats

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The Home Depot® is the world's largest home improvement specialty retailer, with more than 2,200 retail stores in the United States (including Puerto Rico, the U.S. Virgin Islands and the territory of Guam), Canada and Mexico.

Company Facts 1,980 US stores ~400K US store associates 3 divisions 19 regions 209 districts

181 stores in Canada 111 stores in Mexico

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Our Vision: To Enhance and Protect The Home Depot brand

Our Mission: To support sales and service and maximize profit through simplification and innovation of Asset Protection processes.

The Home Depot AP Organization

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SSC Support Team: 58 associates

supporting Asset Protection

Field Team: 202 Multi APMs 223 Single Store APMs 1,067 APSs 21 - Home Depot Investigations

Vice PresidentAsset Protection

DirectorAP Field

Director Loss Prevention

DirectorEnvironmental Health & Safety

DirectorAP Supply Chain

2015 Loss Prevention Strategy

MPS Innovation Benefit Denial MPS Playbook Pick Ticket Standardization

AP Merchandising: Simplified, Best in Class MPS

Upstream Focus Rollout Integration Transaction Testing

AP Forensics: Proactive Approach to Accuracy

Partnership with Store Operations Returns Fraud Mitigation Process Improvement Field Support

AP Operations: Drive Accuracy and Profitability

2015 Field Asset Protection Strategy

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Leverage IT partnerships Manage Assets to Store Level Deploy Capital Based on ROI

ORC: Best in Class Investigation Execution

Run the Business: Simplify Field Reporting

Leverage learning resources Implement Case Management System Improve Alert Cost/Benefit and Conduct Focused Investigations

Focus on speed of case closure Leverage Network Analytics Leverage ORCA/LE relationships

Investigation Speed: Push Complexity Upstream

Asset Management: Capital & Expense Leverage

Reduce Metrics to the Critical Few Deploy Mobile Reporting Streamline Pull Reporting

Internal Investigation Tools

Partnered with AP Field and HDI/CIT on design

Co-developed design with camera manufacturer

16 Pending Investigations with coverts currently installed 6 Investigations closed YTD for $100k in value

Internal Investigations

Covert Cameras

Spec’d a design for HD racking

Reduced size and weight of covert kit

Executive Summary: Operation “Ackerman”

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• Case Value : $ 693,206• Location: Midwest• Method Of Theft: Merchandise Thefts/Refunds • Detection Method: AP Field Tip• Exposure Period: 2 years• Investigation Life Cycle: 1 year 4 months• AP Team: HDI Team Detroit (Jeremy Greenleaf), APM Rob Lancioni, APM

Jason Megge APS Adam Green, APS Jason Wegman, APS Scott Manely , APS Matt Olarin

• LE Partnerships: Oakland County Sheriff’s Office / Utica Police Department• Arrest and Charges: 14 arrests and facing charges of Continuing Criminal

Enterprise (20 Year Felony), Organized Retail Crime (5 Year Felony) and Financial Transaction Device Fraud (4 Year Felony).

• Synopsis and Investigative Steps: AP team reported to HDI about a subject that daily dropped off homeless

individuals to conduct non-receipted refunds. Store AP obtained the license plate of their vehicle - HDI was able to

positively ID the subjects with this intelligence HDI conducted mobile surveillance on the suspect multiple times with LE. LE successfully introduced a Confidential Informant to Ackerman to

complete non-receipted refunds. The suspects recruited over 1000 homeless individuals to conduct retail

fraud and or non-receipted refunds. HDI and LE conducted several interviews on suspects apprehended by AP

that stated Ackerman paid $10.00 for refunds and 20% for thefts up to $200.00 a day

Exposure: • Associate awareness of High Theft Merchandise• Opportunity with Theft Trend DashboardsResolution:• Associate awareness of customer service in high theft areas• Emphasis on detailed and more frequent review of Theft Trend Dashboard

Reports

Exposure / Preventable Resolution Refund Impact - Top 5 Stores

Communicating w/Booster

STORE $ LOSS2701 $230,2332706 $193,9372738 $27,5176821 $20,3812789 $11,123

Coordinating the TheftsRecruiting Location

Typical Product Selection