June 25, 2013

The Company claims the protection of the safe-harbor for forward-looking

statements contained in the Private Securities Litigation Reform Act of 1995.
The Company intends these forward-looking statements to speak only as of the
time of the presentation and does not undertake to update or revise them, as
more information becomes available. These statements discuss, among other
things, expected growth, store development and expansion strategy, business
strategies, future revenues and future performance. These forward-looking
statements are based on estimates, projections, beliefs and assumptions,
including, but not limited to, competition, product demand, economic
conditions, inflation, consumer debt levels, governmental approvals, ability to
hire and retain qualified employees, weather, etc.
Actual results may materially differ from anticipated results described in these
forward-looking statements. Please refer to the Risk Factors section of the
Companys Form 10-K for more details.
2

 Largest specialty retailer of farm & ranch stores

Service the lifestyle needs of recreational farmers &

ranchers, rural tradesmen and small businesses

Customers are home, land, pet & animal owners with
above average income and below average cost of living
Stores are located in towns outlying major
metropolitan markets and rural communities
1,197 stores in 45 states
Sales and EBITDA of $4.7b and $526m in 2012

Unique niche growth company

New strategic initiatives to drive:

-

comparable store sales

operating profit

return on capital

Significant growth opportunities

Clearly defined capital allocation strategy

Focus on shareholder value and returns

Comprehensive, yet tailored, assortment

Livestock & Pet

Percent of Sales - 2012

6%

Hardware, Tools & Truck

9%
42%

Seasonal, Gift & Toys

20%

Clothing & Footwear

Agricultural Products

23%

Be the most dependable supplier of basic

maintenance needs
Differentiate through products and brands
Offer value that exceeds customer expectation
Excite customers with treasure hunt experience
Maintain commitment to supporting the
Out Here customer

Livestock &
Pet

Seasonal, Gifts &

Toy Products

Hardware, Tools &

Truck

Clothing &
Footwear

Agriculture

Stores
1,500
1,000

855

Sales (in $ billions)

1,085 1,176
930 1,001

$6
$4

500

$2

$0
'08

'09

'10

'11

'12

3.01

3.21

3.64

'08

'09

'10

EBITDA (in $000s)

$600
$400
$200

239 258

336

433

'09

'10

'11

4.66

'11

'12

E.P.S.
526

$0
'08

4.23

'12

$4
$3
$2
$1
$0

1.44

1.63

'08

'09

2.25

'10

3.01

'11

3.80

'12
9

Comparable
Sales

Gross Margin

Expense
Management

New Products

Price
Optimization

TVS

C.U.E.

Exclusive Brands

Property
Ownership

Regionalization

Strategic Sourcing

Purchasing

Drive Aisle

Inventory
Management

Energy
Management

10

Balanced focus on sales and margin

Will not risk market share for margin rate
Will continue to

take calculated risks

test and learn
utilize, learn and improve from C.O.E. process

Excited about pipeline of opportunities

11

New Products

C.U.E.

Sales
Drive Aisle
Merchandising

Regionalization

12

New
Products

Pipeline of opportunities
Structured test program
Culture of risk-taking
Open buying days
Category resets

13

14

C.U.E.

Be the most dependable

supplier
Grow market share
Improve in-stock levels
Continue to improve
price management
Expand assortments

15

16

17

Regionalization

Relevant assortments
Brand preferences
Customer feedback
Town Hall meetings
A D assortments

18

Local Store Assortment

Geographic Assortment

Regional Brand Preference

19

Drive Aisle
Merchandising

Increase basket
Utilize event merchandising
Enhance Treasure Hunt
experience
Learn from customer
Improve impulse item offers

20

Wild Game Supplies

Chick Days Event

21

22

Price
Optimization

Exclusive
Brands

Gross Margin
Inventory
Management

Strategic
Sourcing

23

Price
Optimization

Does not mean price increase

Utilize test and learn
approach
Will not risk market share
Focused on Regular Price
Add Promotion and
Clearance modules later

24

Exclusive
Brands

~ 25% of sales
Brand development
approach
Provide value to customers
Opportunity for growth
4health expanding
offering

25

Livestock & Pet

Seasonal, Gifts
& Toy Products

Hardware, Tools
& Truck

Clothing &
Footwear

Agriculture

26

4health Expansion

C.E. Schmidt
Leather Footwear

27

Strategic
Sourcing

Determining factors
Product quality
Sufficient supply chain
& vendor stability
Price / landed cost
Multiple sources
preferred

28

Inventory
Mgmt.

Allocate more productively

Regionalize the assortments
Continue to adapt & react to
trends
Seize opportunities
End seasons clean

29

 Defined test programs

Inventory Turns
3.4
3.3

3.23

3.2

3.09

3.1
3
2.9
2.8

3.28

2.88
2.79

2.7
2.6
2.5
'08

'09

'10

'11

'12

Disciplined flow of

merchandise
Improved ability to adapt
and react to trends
Committed to ending
seasons clean
Dedicated to meet
customer needs through
emergency response
30

Grow Stores ~ 8% square footage

Same-Store Sales Growth ~ 3% - 5%
Improve Operating Margin ~20 bps
Invest to Grow Business ~ $250m

Grow EPS in the

14% to 16% range
on an annual
basis

Return Cash to Shareholders

31

Operating Margin
9.4%

EPS
$7.20 - $7.70

10.5%

6.1%

$3.80

$1.24

2007

2012

2017e

2007

2012

2017e

32

 Investing for Growth

~ $250m annually

Dividend

Currently $0.26 per share quarterly

20 to 25% payout ratio
15 to 20% dividend growth

Share Repurchase

Dividend

Reinvest in
the
Business

Share
Repurchase

~ 40% - 45% of operating cash flow

~ $170m - $290m annually
~ 2% - 3% shares purchased annually

Creating Shareholder Value

33

42/307

176/353

475/763

480/677
Tractor Supply
Store Count
1Q13 / Opportunity
(excludes 24 Dels stores)

Total: 1173 / 2100

34

June 25, 2013