Frank BlakeChairman & CEO

2008 Annual Meeting of Shareholders

May 22, 2008

Cautionary Statement Pursuant to the Private Securities Litigation Reform Act of 1995

Certain statements contained herein, including any statements related to the state of the home improvement market, the state of the housing market, continuation of reinvestment plans and other factors affecting earnings and sales, earnings and earnings per share guidance for Fiscal 2008 constitute "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based on currently available information and on our current expectations and projections about future events. Risks and uncertainties include, but are not limited to: economic conditions in North America; fluctuating commodity prices; our ability to successfully operate in countries outside the United States; conditions affecting customer transactions and average ticket, including, but not limited to, weather conditions; improving and streamlining operations and customers' in-store experience; and the impact of competition. Undue reliance should not be placed on such forward-looking statements as they speak only as of the date hereof, and we undertake no obligation to update these statements to reflect subsequent events or circumstances except as may be required by law. Additional information regarding these and other risks and uncertainties is contained in our periodic filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended February 3, 2008.

2007 Financial Performance

Sales

FY 2006

$79.0 $77.3

-2%

$ Billions

EPS

Continuing OperationsContinuing Operations

FY 2007 FY 2006 FY 2007 FY 2006 FY 2007

Net Earnings$ Billions

$5.3 $4.2$2.27$2.55

-20%-11%

HD Stock Price

$20

$25

$30

$35

$40

$45

Jan-0

7

Mar-07

May-07

Jul-0

7

Sep-07

Nov-07

Jan-0

8

Mar-08

May-08

2%

3%

4%

5%

6%

7%

8%

1950

1954

1958

1962

1966

1970

1974

1978

1982

1986

1990

1994

1998

2002

2006

Private Residential Investment

Source: Bureau of Economic Analysis (BEA)

Private Residential Investment as a % of GDP

60 yr average: 4.8%

Residential Investment Declined $270+ Billion in Past 2 YearsResidential Investment Declined $270+ Billion in Past 2 Years

Q108: 3.8%

2007 Accomplishments

Invested in Five Priorities

Divested HD Supply in August 2007

Returned excess cash to our shareholders

―Bought back $10.7 billion through a tender offerAchieved almost half of our $22.5 billion recap plan

―Dividend payout ratio was 38% in 2007

Investing in the CoreInvesting in the Core

Five Priorities

Associate EngagementObjectiveDeliver excellent customer service

Key ’07 Actions• Focused on Taking Care of our Associates• De-leveraged payroll• Invested in know-how - Master Trade Specialists• Launched Aprons on the Floor campaign• Improved training

VoluntaryHourly Attrition

down 14%

Availability of AssociatesMean (1 to 10 Scale)

FY 2006

7.33 7.61

FY 2007

Shopping Environment

Clean & Uncluttered AislesMean (1 to 10 Scale)

FY 2006

7.69 7.93

FY 2007

ObjectiveProvide clean and enjoyable shopping environment to our customers

Key ‘07 Actions• Completed an aggressive list of maintenance projects, including new

lighting and basic clean-up in over half of our stores• Implemented programmatic maintenance schedule• Established store standards nationwide

Product Availability

Products in StockMean (1 to 10 Scale)

FY 2006

8.098.23

FY 2007

ObjectiveImprove in-stock rates and reduce lead times and costs

Key ’07 Actions• RDC (Rapid Deployment Center) pilot successful

• 3 RDCs live, 5 more planned for 2008• Launched a new warehouse management system • Implemented enhancements to our replenishment systems

Product Excitement

Likely to RecommendMean (1 to 10 Scale)

FY 2006

8.48 8.53

FY 2007

ObjectiveFocus on providing great value and product innovation

Key Actions• Launched Merchandising Transformation• Accelerated product line reviews• Expanded Eco Options

Own the Pro

Pro, Likely to RecommendMean (1 to 10 Scale)

FY 2006

8.43 8.51

FY 2007

ObjectiveBe the number one destination for the Pro customer

Key Actions• Focused on job lot quantities in key Pro categories• Expanded Pro Bid Room, including direct ship programs• Tapped local vendors to provide local product

International

#1 Home ImprovementRetailer in Canada165 Stores28,000 AssociatesNearly $6 Billion in SalesPositive ’07 CompsMarket Opportunity: $32 Billion

#1 Home Improvement Retailer in Mexico 66 Stores7,000 AssociatesNearly $1.5 Billion in SalesDouble Digit Positive ’07 CompsMarket Opportunity: $17 Billion

12 Stores in 6 cities3,000 AssociatesPositive ’07 CompsMarket Opportunity: $50 Billion

CANADA MEXICO CHINA

2008 Outlook

2008 will be another difficult year

– Sales guidance down 4%-5%

– Earnings per share guidance down 19%-24%

Will continue to invest in our key priorities

Will continue to allocate capital in the most efficient

manner

3

4

5

6

7

8

9

10

11Q

199

Q39

9

Q10

0

Q30

0

Q10

1

Q30

1

Q10

2

Q30

2

Q10

3

Q30

3

Q10

4

Q30

4

Q10

5

Q30

5

Q10

6

Q30

6

Q10

7

Q30

7

Q10

8

Existing Homes

New Homes

Source: NAR, Moody’s Economy.com, Bureau of Census

Months Supply of Homes for Sale

Inventory of Homes for Sale

Housing inventory continues to growHousing inventory continues to grow

Long-term Fundamentals2002 2008F

U.S. OwnerHouseholds(Millions)

73.4 77.15.1%5.1%

U.S. Households(Millions) 108.0 113.14.8%4.8%

2012F

80.03.8%3.8%

119.25.4%5.4%

Strong Household GrowthStrong Household GrowthSource: Moody’s

2008 FocusAssociate Engagement– Re-deploy $180 million from non-selling expense to Aprons on the

Floor

Store Environment– Maintain spend to provide enjoyable shopping environment

Product Excitement– Complete SCORE implementation in Canada and key elements of

our US merchandising transformation

Product Availability– Build and operate Rapid Deployment Centers sufficient to supply

40% of US stores, with 30% of COGS flowing through those stores

Own the Pro– Invest to Serve Pro Needs

The Home Depot’s Values

Sgt.Sgt. 11stst Class Class Travis S. Travis S. BachmanBachmanReceiving

Supervisor, 2219

Cpl.Cpl. Victor Victor Manuel Manuel

LangaricaLangaricaD28 Sales

Associate, 443

Capt. Sean E. Capt. Sean E. LyerlyLyerly

D28 Dept Supervisor, 6653

11stst Lt. Michael Lt. Michael W. VegaW. Vega

Pro Account Sales Associate,

662

Sgt. Shakere Sgt. Shakere Taffari GuyTaffari GuyLot Associate,

1084

Sgt. Clarence Sgt. Clarence ““LavonLavon””Floyd, Jr.Floyd, Jr.D21 Sales

Associate, 4106

Sgt. Regina C. Sgt. Regina C. RealiReali

Special Services Associate, 644

Sgt. Sgt. Christopher B. Christopher B.

WilliamsWilliamsElectrical Dept

Associate, HD Supply

The Home Depot’s Values