The Value of Independence - True Value 2016 Annual Report€¦ · · 2017-05-18The Value of Independence ... patronage dividend is crucial, ... enterprise determined to do what

2016 Annual Report

The Value of Independence

We’re proving it as we compete against the big boxes—the independent hardware store has more value than ever. The independent store owner is a person, not a large corporation. The owner is an active part of the community. When a customer speaks, the owner listens.

True Value exists for the local, independent retailer.

At True Value, independence also means freedom. Our retailers design their own stores. Determine their own locations. Make the decisions on which programs work for them. In short, True Value retailers have the freedom to pursue growth on their own terms.

The Value of Independence

About the cover Allen, Tara and son Justin Witherite, owners of Triangle True Value of Bellefonte, Pennsylvania, chose to include major exterior façade work as part of a full DTV remodel. The business saw immediate increases in traffic and sales after DTV completion.

TRUE VALUE 2016 ANNUAL REPORT 1

Independence sets us apart. It’s why we’re winning. And it’s how we’ll win over the long term.

DEAR TRUE VALUE COLLEAGUES: Our transformation continues. In 2016, the second

full year of our strategic plan, we continued to build momentum. The positives are

multiplying. The results are coming.

A MESSAGE TO OUR RETAILERS, VENDORS AND ASSOCIATES

We know achieving higher retail profit and a higher

patronage dividend is crucial, and the good news is

we saw that happening in 2016. We exceeded last

year’s net margin, and our investments are making you

more competitive with advances in key areas such as

customized assortments, paint, brand building and

operations. Here are a few highlights from the year:

CTB SUCCESS As Johnny Boyle, owner of Bandera

True Value in Bandera, Texas, will tell you, our

Customized True Blue (CTB) assortment program

drives significant sales growth. We continue to

expand CTBs with a revamped, faster line review

process that goes beyond products and pricing to

include supply chain, inventory and transportation.

This new approach supports not just growing

sales, but also a stronger True Value and improved

retailer profitability.

RECORD DTV REMODELS Over the past two years,

we have refined our Destination True Value (DTV)

store format to increase its flexibility, and in 2016

our efforts showed in a record number of remodels.

J.C. Crowder and Dave Williams of Crowder Bros.

Hardware in Spring Hill, Florida, told us they are

believers after implementing a DTV remodel which

brought double-digit sales growth in the first year.

TRUE VALUE PAINT INNOVATION AND

PERFORMANCE It was a great year for our paint

business. We bolstered our EasyCare® paint offering

with an expanded product line and the launch of

new DreamWorks Trolls colors. Allen, Tara and Justin

Witherite, owners of Triangle True Value in Bellefonte,

Pennsylvania, were among the many who are using

the Trolls paint program to attract parents whose

young children are fans of the hit movie.

JOHN R. HARTMANN AND BRENT A. BURGER

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Transformation, Year TwoTransformation, Year Two

This is our fundamental, defining

commitment: At True Value,

we’ll never stop assessing our

role and developing innovative

new ways to support our

retailers’ independence, growth

and profitability.

2


Engagementwith consumers, retailers,

vendors and associates

Growthof your customer base, sales

and profitability

Efficiency to improve our operations

and service levels

The Plan is WorkingOur growing number of accomplishments together, including breaking a 10-year-plus negative growth trend, tells us we’re on the right track with our strategic plan. We’re going to continue to work hard, building on what’s working and changing or eliminating what isn’t.

HISTORICAL NET NEW SALESCO-OP GROWING IN VOLUME ON NET BASIS

$20M$22M

20072005 2010 20112009 20132012

$24M

$50M

$18M$14M

$2M

$21M$21M

$24M

$9M

$31M

2008

2006

2014 2015 2016

4 TRUE VALUE 2016 ANNUAL REPORT

We innovated to strengthen and expand the paint

business for retailers with our new True Value 2-4-1

(two brands, four price points, one color system)

offering, adding premium Coronado® paint to the

portfolio through a new alliance with Benjamin

Moore & Co. in 2016. Where the innovation comes

in: This high-end national paint brand utilizes the

same colorants, chip sets and matching system

as EasyCare®, making it possible for retailers to

add a high-margin paint line at a fraction of the

usual investment.

Our international business delivered strong year-

over-year sales growth of more than 14 percent in

2016, thanks to product improvement and localized

strategies that continue to earn the loyalty of retailers

like Rodrigo Cuarón and his partners at Hágalo True

Value in Juárez City, Mexico.

EXPANDING ONLINE SHOPPING AND FULFILLMENT

OPTIONS Today, almost 90 percent of do-it-

yourselfers visiting TrueValue.com are researching

home improvement projects before driving to a

local store to make their purchases. In 2016, we

improved the TrueValue.com online shopping

experience by enabling our stores to show on-

hand inventory and item availability to consumers.

TrueValue.com sales are up approximately 50

percent year over year with more than 80 percent

of sales being shipped to the consumer’s local True

Value store for pick up, driving new and repeat

customers to participating stores. We’re also

enhancing direct-to-consumer fulfillment options

for all True Value retailers. By retrofitting three

regional distribution centers to focus on direct

shipments to consumers, our retailers will be able

to offer two-day shipping on any orders placed at

their store on behalf of customers.

TRANSPORTATION SAVINGS FOR OUR RETAILERS

Our alliance with Ryder netted big results in 2016.

We achieved on-time delivery of 95 percent, and

we’re projecting retailer freight rate reductions of an

average of 25 basis points for 2017, a collective $3

million in savings to retailers. We also worked with

Ryder to develop a new app that will allow real-time

shipment tracking on a smartphone.

CONTINUED INVESTMENT IN A STRONGER TRUE

VALUE We have transformed True Value from a

status quo company to a forward-looking growth

enterprise determined to do what is necessary

to support retailer relevance and success. 2016

marks the second year of a planned period of

elevated capital investment. Key initiatives include

IT infrastructure and disaster recovery, voice-pick

technology at our distribution centers, and many

others aimed ultimately at increasing capabilities

over the long term.

Dave Williams, General Manager, Crowder Bros. Hardware in Springhill, Florida, says one key goal—and outcome—of the store’s recent DTV remodel was to attract more female shoppers.

Powell’s True Value in Appleton City, Missouri, celebrated the grand re-opening of a new DTV-remodeled store in 2016.


$41.1†

$13.2 million

cost

$23.2 million

cost

20152014

GROSS BILLINGS* $ IN MILLIONS

REVENUE* $ IN MILLIONS

NET MARGIN $ IN MILLIONS

$2,073.7

2016

$2,014.8

2014 2015

$1,495.0$2,033.2

2014 2015

$1,497.2

2016

* Note: fiscal 2014 figures are based on a 53-week

year, fiscal 2013 and 2015 figures are based on

52-week years

†Including 2014 Strategy Cost

‡Including 2015 Strategy Cost

˚Including 2016 Strategy Cost

$19.0‡

$23.7˚

$18.8 million

cost

2016 Financial HighlightsYEAR-TWO TRANSFORMATION MOMENTUM in 2016 included improved results across important measures of financial success as we met our commitment to delivering an increased cash dividend for the year.

+2.5%Year-Over-Year Growth in Retail Sales, 2016

+2.0%Year-Over-Year Growth in Gross Billings, 2016

~25%Year-Over-Year Growth in Net Margin, 2016

THE VALUE OF TRUE VALUE

($ IN MILLIONS) 2015 2016

PATRONAGE DIVIDEND/CASH $19.0 $21.3

PATRONAGE DIVIDEND/NOTES & STOCK $0.0 $1.8

INTEREST ON NOTES $6.1 $6.0

PROMOTIONAL DISCOUNTS $36.0 $39.8

DATING & ANTICIPATION $17.9 $16.7

REUNION SPIFFS/RACKING $7.8 $8.9

MARKETING REIMBURSEMENTS $10.3 $10.9

GROWTH CREDITS & LOANS $41.0 $42.9

PROMOTIONAL FREIGHT $5.8 $4.9

TOTAL $143.9 $153.2

% OF PURCHASES 7.5% 7.9%

2016

$1,514.1


STRONG 2016 RESULTS True Value experienced

positive results across the business in 2016. Retail

sales were up by 2.5 percent over 2015, with DTV

stores seeing year-over-year growth of 3.7 percent.

It was a record year for DTV with 101 remodels and 68

ground-up projects completed, representing nearly

1.5 million square feet of fresh, modern retail space.

Next year’s DTV pipeline looks even better, with a

projected 130 remodels and over 70 ground-ups.

We saw a net positive of $31.4 million sales from

new stores to terminations in 2016, the third year in

a row of positive performance in this key measure.

Significantly, the majority of our terminations this

year were store closings.

Total gross billings for 2016 were $2,073.7 million,

up by 2.0 percent over 2015. In the current period

of heavy reinvestment, we were pleased to achieve

an improved net margin of $23.7 million, up by nearly

25 percent year over year. We were equally pleased

to meet our commitment to deliver an increased

dividend in 2016.

A BRIGHT FUTURE FOR TRUE VALUE There is still

plenty of room for improvement, but we’ve already

come a long way in True Value’s transformation. The

organization is stronger than it’s been in decades,

our financials are solid, our programs are working

and our results are steadily improving.

This is an exciting time to be a part of True Value.

We’re looking forward to continuing to prove—and

improve—the value of the independent hardware

store.

Sincerely,

JOHN R. HARTMANN

President and Chief Executive Officer

BRENT A. BURGER

Chairman of the Board

We’re driven to efficiently provide our retailers the products their customers want, at competitive prices that help them grow both sales and profit.

NET MARGIN

THREE-YEAR PERIOD OF SIGNIFICANT

INVESTMENT TO ACCELERATE PERFORMANCE

2013 2014 2015 2016 2017 2018 2019 2020 2021

3-YEAR INITIAL

SIGNIFICANT

INVESTMENT

PROJECTED

PARTICIPATION

MATTERS!


PROGRAMS DESIGNED TO DRIVE YOUR SUCCESS The numbers tell the story—retailers who participate in True Value programs consistently perform better than those who don’t. Time to get on board!

The Value of ParticipationThe Value of Participation

NATIONAL ADVERTISING EVENTS

+3.0%2016 Avg. True Value Item Retail Sales (Comp Core Stores)

-1.0%2016 Avg. True Value Item Retail Sales (Comp Core Stores)

DESTINATION TRUE VALUE (DTV) +3.7%

2016 Avg. DTV Stores Retail Sales Variance Year Over Year

+1.7%2016 Avg. Non-DTV Retail Sales Variance Year Over Year

CUSTOMIZED TRUE BLUE (CTB)ASSORTMENTS

+4.7%2016 Avg. CTB Stores Retail Sales Variance Year Over Year

+1.8%2016 Avg. Retail Sales Variance Year Over Year (All Stores)

TRUE VALUE REWARDS (TVR) +2.6%

2016 Increase in Median Transactions Per Store

-2.1%2016 Decrease in Median Transactions Per Store

PARTICIPANT PERFORMANCE

NON-PARTICIPANT PERFORMANCE

TRUE VALUETRUE VALUE PROGRAMPROGRAM


11,000Unique New CTB Assortments

35,000sfof CTB Assortments, Retail Assortments, Specials, Live Product Demos

CTB sales are growingSIMPLIFIED, TRIED AND TRUE Customized True Blue (CTB) assortments continued

to build momentum in 2016 with an improved, streamlined line review process

along with a new implementation guide and a faster, easier implementation tool for

retailers. 2016 results:

Assortment City is here to stayCTB COMES TO FALL REUNION Attendees at our 2016 Fall Reunion got to experience CTB

products and assortments firsthand at Assortment City, our huge dedicated assortment

space. It’s a great way to see and order sales-driving True Value assortments. Look for it at

future Reunions.

FOR CTB PARTICIPANTS:

Power Tool Accessories 3.9%

Tape 16.4%

Garden Sprayers 5.3%

Pool Chemicals 11.5%


My True Value–A New Customer ExperienceSM Training is paying offThanks in part to My True Value–A New Customer ExperienceSM customer service

training, the company saw some great news in key third-party national rankings for

retailing and customer service.

A NEW Record

101DTV Remodels Completed

A NEW Record

68Ground-Up New Stores Added

Staff and Service Score UP

+28pts.by J.D. Powers

More retailers are implementing DTVDTV MOMENTUM Our highly flexible and successful Destination True Value (DTV)

store modernization program continues to build momentum and retailer sales. There’s

no doubt—remodels work. In 2016, DTV retail comp store sales were up 3.7 percent

compared with non-DTV retail comp store sales of 1.7 percent.

#1 Retailer Ranking by Temkin Group

BEFORE

Triangle True Value’s pre-DTV exterior was

less than inspiring.

AFTER

The DTV remodel included a new

façade—a dramatic difference.


International Paint Sales UP

11.6%

International Sales UP

14.5%

EasyCare® is better than everEASYCARE REBRAND We continued efforts and initiatives to enhance our already

popular EasyCare® paint offering in 2016. Quality improvements over the last few years

gained recognition:

Color us globalINTERNATIONAL GROWTH Bigger is better for all of us. Increasing international

volume supports better pricing and brand presence overall. By all measures, 2016 was

a great year for the international channel.

Consumer Reports®

TOP 10Quality Ranking

Third-Party Blind Testing

BESTValue Ranking Compared With National Brands


2 Brands

4 Price Points

1 Color System

CORONADO® FROM BENJAMIN MOORE SHARES SYSTEMS WITH EASYCARE®:

Introducing Coronado® from Benjamin MooreAN INDUSTRY FIRST True Value’s national brand alliance with Benjamin Moore & Co. offers the

opportunity to add a higher-price-point, higher-margin premium paint with unprecedented ease and

economy. This game-changing alliance is True Value innovation at its best—the ability to add a national

paint brand at virtually no incremental cost and within a single color system.


Fuel Efficiency IMPROVED

6%

2017 Freight Rate DOWN 25 Basis Points, Resulting

in a $3 million Reduction in Retailer Fees

95% On-Time Delivery Service in 2016

Ship-to-Store Transactions UP 53%

Ryder is driving resultsTRUE VALUE-RYDER PARTNERSHIP Our partnership with Ryder brought excellent

results in 2016, with route optimization improving delivery reliability and saving costs for

our company and our retailers. Next: a new app that enables real-time shipment tracking.

Drawing new customers to your storeTRUE VALUE SHIP-TO-STORE PROGRAM Although 93 percent of retail sales still happen

in stores, the majority of consumers report that they decide where to make their purchases

by visiting a retailer’s website. Our True Value Ship-to-Store program aligns with this trend,

helping to drive new customer orders, traffic, sales and loyalty. In addition to this already

successful program, we launched new two-day ship-to-home capabilities for orders

placed from our stores.

1,800 Retailers Participating in Ship-to-Store Program

TrueValue.com Sales UP

~50%

“ We have one son in the business and three younger kids. We want to build this business and pass it on.” —ALLEN, TARA AND JUSTIN WITHERITE, OWNERS, TRIANGLE TRUE VALUE, BELLEFONTE, PENNSYLVANIA

“ Each market is different. It’s not a cookie-cutter deal. True Value’s flexibility makes us stronger.” —JOHNNY BOYLE, OWNER, BANDERA TRUE VALUE, BANDERA, TEXAS

“ We would like to continue to grow. In 10 years, I could see us having 10–25 stores.” —RODRIGO CUARÓN, CO-OWNER, HÁGALO TRUE VALUE, JUÁREZ CITY, MEXICO


Celebrating Retailer SuccessRetailer stories inspire us every day, reminding us of what we’re in business to do: support your relevance, growth and profitability, and long-term success. The pages that follow tell just a few of those stories.

EXPANDED RENTAL CENTER

From contractor to do-it-yourselfer, heavy equipment to hand tools, for four hours to four weeks, Triangle True Value’s newly expanded rental department is a profit center that builds relationships.

SERVICE MAKES THE DIFFERENCE

The Witherites credit their friendly, dedicated staff as the biggest difference-maker in competing successfully against larger retailers in their marketplace.

A FULL DTV REMODEL

The store executed a full DTV remodel last year and customer response was highly positive. The program’s increased flexibility enabled ownership to fund the project through loans.


RETAILER PROFILE

Triangle True Value BELLEFONTE, PENNSYLVANIA

Triangle True Value is a classic small-town, family-owned hardware store operating in a big-box world. With True Value programs and support, owners Allen, Tara and Justin Witherite are keeping their store relevant and competing successfully.

“ True Value lets us run our business. Very flexible. But they’re always there to help, which is huge in my book.” —ALLEN WITHERITE, CO-OWNER, TRIANGLE TRUE VALUE

TRUE VALUE 2016 ANNUAL REPORT 15TRUE VALUE 2016 ANNUAL REPORT 15

Triangle True Value competes—and wins—through customer service, one shopper at a time.

A HISTORY OF INTEGRITY

The McCoy family’s belief in fair dealing came to the fore when Hurricane Carla hit the Texas coast in 1961. McCoy’s refused to join other businesses that inflated prices in the storm’s aftermath.

RETAILER PROFILE

McCoy’s Building Supply SAN MARCOS, TEXAS

McCoy’s was founded as a roofing supply business in 1927 on the principles of honesty and

taking care of customers. Four generations later, the business spans 86 retail locations in

five states.

CULTURE MATTERS, PEOPLE ARE KEY

Owners Brian McCoy and daughter Megan have invested significant time and resources in “relational training” to develop leaders who foster a relationship-focused culture, both among employees and with customers.


“ We teach our leaders to grow themselves and grow others. When they do that, we grow the business.” —DAN STAUFFER, VP MARKETING AND REAL ESTATE, MCCOY’S BUILDING SUPPLY


Left to right: Erica McKinney, Eddie Sturm, Olga Martinez, Scott Sternadel (store manager, in white shirt), Kevin Bartos, Valerie Duque

DTV DRIVES RESULTS

DTV’s impact on sales was big, and immediate—the stores saw combined double-digit (11.7%) sales growth the first year.

SELECTION AND CONVENIENCE

J.C. Crowder says the key to consumer relevance is product selection that includes top brands, and convenience, driven by a clean, well-organized store, expedient check-out and great customer service.

MODERN FROM THE GROUND UP

In addition to a new computerized paint match station, the retailer went all in with DTV—a major remodel in one location and ground-up construction on a new site, both in 2014.

RETAILER PROFILE

Crowder Bros. Hardware SPRING HILL, FLORIDA

Crowder Bros. Hardware has been a family business since 1955. The owners of two store

locations had worked with a number of co-ops before joining True Value in 2014. Why True

Value? Flexibility, selection and DTV.


“ True Value’s product selection is much superior to our former co-op. And we felt DTV gave us the best opportunity to grow.” —DAVE WILLIAMS, MANAGING PARTNER, CROWDER BROS. HARDWARE


Dave Williams and members of the Spring Hill, Florida, Crowder Bros. retail team

BIGGEST DEPARTMENT: LAWN & GARDEN

Lawn & Garden is big in Boyle’s marketplace. His stores carry a full array of tools and equipment, live goods and nursery products, including True Value’s exclusive Green Thumb line.

TRUE VALUE TRUE BELIEVER

When it comes to True Value programs, Boyle’s stores do it all—Bargains of the Month, Customized True Blues, National Ad Program, True Value Rewards, DTV— because he says they all drive sales, DTV alone by double digits the first year.

GENERATIONS OF RETAIL KNOW-HOW

Johnny Boyle is a born retailer. With a grandfather and great uncle who started a Bandera food and general merchandise store in 1907, Johnny was raised among retail shelves. He learned a thing or two.

RETAILER PROFILE

Bandera True Value BANDERA, TEXAS

Owner Johnny Boyle tells us he has grown his two locations—he has a second

store in nearby Lakehills—by listening to customers and identifying “voids” in what

competitors offer, then filling them. It works.


Left to Right: John Boyle III, Holly Boyle, Johnny Boyle and Milam Boyle

“ You have to evolve. You can’t be satisfied with the status quo. If you’re not changing, you might not know it yet, but you’re in trouble.” —JOHNNY BOYLE, OWNER, BANDERA TRUE VALUE


SIX SIMPLE WORDS “ Did you find what you wanted?” These six words are critical at Hágalo because ownership believes documenting what customers are NOT finding is vital to guiding inventory and purchasing decisions.

STAFFING IS A SUCCESS DRIVER With service speed at a premium, being well staffed is a competitive advantage. For Rodrigo it’s a top priority to have enough people on the floor to help customers make their purchases quickly.

RETAILER PROFILE

Hágalo True Value JUÁREZ CITY, MEXICO

Hágalo True Value has been a fixture in Juárez City, Mexico, since 1946. Co-owner

Rodrigo Cuarón’s grandfather Pablo, 96, still comes in every day. No doubt he is

pleased to see the business he co-founded grow to eight stores. And counting.

PAINT IS A GREAT BUSINESS Paint is a key True Value product category at Hágalo, and Rodrigo tells us the lifetime warranty is particularly popular. By investing in promotional events and other marketing, Hágalo aims to continue to grow the category.


“ Hardware and home center customers here demand fast, convenient service. With True Value’s help, that is exactly what we provide.” —RODRIGO CUARÓN, CO-OWNER, HÁGALO TRUE VALUE


Left to right: Hector Hayen, Rodrigo Cuarón, Pablo Cuarón and, seated, co-founder Pablo Cuarón, Sr.

EXPERT LOCAL FIELD REPS Dedicated local Hillman field representatives know more than the product and its applications. They know the area, the store owner and the customers. It’s an approach that lines up perfectly with True Value’s.

HIGH-SKU PERFORMANCE In an SKU-intense business like Hillman’s, connecting the right products to the right customers is critical. The back end is key—Hillman’s distribution center ships an average of 350,000 lines a day.

FOCUSED INNOVATION Hillman’s Tempe, Arizona, Innovation Center drives a continuous pipeline of new products such as the premium PowerPro™ line, the top-performing wood screw in the market.

2016 VENDOR OF THE YEAR

The Hillman Group CINCINNATI, OHIO

Offering a huge selection of fasteners, anchors, construction fasteners and more, The Hillman Group excels through product quality and innovation, merchandising expertise, and the biggest, best field sales and support team in the business.

Left to right: Gary Seeds, VP of Sales, CEO Greg Gluchowski, Brett Hillman, Director of Sales


“ We’re proud of our 50-plus-year relationship with True Value. We’re looking forward to the next 50.” —GREG GLUCHOWSKI, CEO, THE HILLMAN GROUP



SUPPORTING STRONGER COMMUNITIES

True Value CaresTrue Value Cares

TRUE RETAILER COMMITMENT After a hurricane devastated his community, Al Locklear, owner of Lumber River Trading Company in Lumberton, North Carolina, stepped up. He donated 1,000 gallons of propane, along with other basic necessities, to residents in need. When the local gas company gifted the store an additional 1,000 gallons, he donated that, too. Al Locklear embodies the spirit that lives in every True Value retailer.

TRUE VALUE FOUNDATION seeks to make a difference locally and nationally through a wide variety of ways:

• Last year’s three-year, $1.5 million grant to the True Value Boys & Girls Club in Chicago

• A national partnership with the Boys & Girls Club of America

• Contributions by the foundation, retailers, vendors and associates to United Way

• Our Painting a Brighter Future program

• Thousands of volunteer hours donated by True Value associates

BE PARTNERS We collaborate effectively to achieve our desired results as a company. Theresa Shea, Assistant General Counsel, points out how embracing diversity at True Value is critical to successfully partnering and collaborating. Theresa believes.

NO FEAR We solicit our colleagues’ open and candid feedback and we provide same. Ask Dan Swolley, Team Leader, Center of Excellence, and he’ll tell you we must be fearless in our pursuit of excellence together in all we do. Dan believes.

CAN DO We proactively challenge the status quo and use forward thinking to develop fact-based solutions. Antoine Hinton, Senior Global Product Merchant, and Herb Bellmer, Divisional Vice President, know this is the key to staying relevant to customers. Antoine and Herb believe.

ACT NOW We act quickly after gathering sufficient information. Jennifer Niehoff, Global Product Merchant, and Chris Galletto, Director, Supply Chain, know that trust and commitment to success are keys to decisive action. Jennifer and Chris believe.

ADD VALUE We embrace best practices to deliver added value. Vincent Zuber, Senior Learning Consultant, True Value University, sees continuous learning as a fundamental part of maximizing the value of True Value, every day. Vincent believes.

TAKE RISKS We are accountable for making decisions and taking smart risks. John Vanderpool, Divisional Vice President, Paint, has seen how this approach has contributed to the dramatic improvements in True Value paints. John believes.


TRUE VALUE ASSOCIATES

The Value of CultureThe Value of CultureSHAPING OUR FUTURE TOGETHER Culture drives results. The right culture drives the right results. In fact, studies suggest that the culture of an organization can contribute directly to growth and profitability. That’s why the transformation of True Value includes undergoing cultural change, one individual at a time. True Value’s Culture Change Training Program equips associates with tools and techniques like focused storytelling and focused feedback, establishes a framework for positive accountability around business outcomes, and seeks to empower our people in their everyday work.

UNITED BY SIX CULTURAL BELIEFS:


The Best Hardware Store in Town Awards

2016 Winners:

Anchorage True Value

Anchorage, Alaska

Burney True Value

Aberdeen, North Carolina

Ed Young’s True Value

Williamsville, New York

Green Valley True Value

Green Valley, Arizona

Handyman True Value

Florissant, Missouri

Hardware & Lumber Ltd.

Kingston, Jamaica

Kula Hardware & Nursery

Kula, Hawaii

Lewis True Value Mercantile

Bayfield, Colorado

Morrison True Value

Alpine, Texas

Nelson True Value

Prairie du Chien, Wisconsin

Qualheim’s True Value

Shawano, Wisconsin

Steele’s True Value

Tannersville, Pennsylvania

Wilton Hardware

Wilton, Connecticut

2016 Overall WinnerWillis Qualheim, Qualheim’s True Value Shawano, Wisconsin

Board of Directors

FROM LEFT TO RIGHT:

Heath Ashenfelter Vice President and Chief

Merchandising Officer

Barbara Wagner Vice President and

Corporate Treasurer

Abhinav Shukla Senior Vice President and

Chief Operating Officer

Cathy Anderson Senior Vice President

Human Resources,

General Counsel and

Secretary

Jean Saelens Vice President and

Corporate Controller

John Hartmann President and

Chief Executive Officer

Jean Niemi Vice President,

Communications

Tim Mills Senior Vice President,

Growth

Deborah O’Connor Senior Vice President and

Chief Financial Officer

Rosalee Hermens Senior Vice President and

Chief Information Officer

Eric Lane Vice President, Strategic

and Specialty Accounts

Company Officers

FROM LEFT TO RIGHT:

Brian WebbNeenah, Wisconsin 1,7*

Kathleen GuionAustin, Texas 2,7,8*

Jared LittmannAnnapolis, Maryland 1,6,8

Richard GeorgeElmhurst, Illinois 2,6,8,˚

Brent BurgerOakland, Maine. 1,4,˚

Gregory JosefowiczFennville, Michigan 2,5,˚

M. Shân AtkinsLong Grove, Illinois 2,6,7

James WatersSalina, Kansas 1,6,7

Thomas MarkertDelray Beach, Florida 2,7

Alan BryantOakhurst, California 1,8

John HartmannChicago, Illinois 3,˚

Director Designations 1 Store Owner 2 Outside Director 3 President & Chief Executive Officer 4 Board Chair 5 Board Vice-Chair

Board Committees 6 Audit Committee 7 Compensation Committee 8 Corporate Governance Committee * Committee Chair ̊ Executive Committee

29

©2017 True Value Company

Retail Support Center

8600 West Bryn Mawr Avenue

Chicago, Illinois 60631-3505

773.695.5000

truevaluecompany.com

Documents

The Value of Independence - True Value 2016 Annual Report€¦ · · 2017-05-18The Value of Independence ... patronage dividend is crucial, ... enterprise determined to do what