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Frank Blake Chairman & CEO The Home Depot The Home Depot was built on a set of values that define our culture and allow for our success. These values, such as giving back, building strong relationships and doing the right thing, aren’t just ideas that we talk about, they set the parameters for how we act and for what we do. The Home Depot Foundation is a very important way that we live these values and create significant positive impacts on communities across the country. In 2007, The Home Depot Foundation celebrated its fifth anniversary, and we are proud to reflect on its outstanding success in this report. In its five short years, the Foundation has helped more than 50,000 working families by supporting the development of homes that are healthy to live in and affordable to own. The Foundation works with its nonprofit partners to ensure that these homes are energy- and water-efficient, use durable materials and provide a safe and healthy place to live over the long term. As we embark on 2008, we are eager to strengthen our existing partnerships and explore new opportunities to build healthy, affordable homes and strong, stable communities. While focused on building affordable homes, the Foundation also is committed to improving the overall health of our communities. We take a comprehensive approach when thinking about where a family lives and accordingly, invest in the planting and restoration of trees along streets, in parks and in schoolyards; the building and refurbishment of community play spaces; and the revitalization of school facilities. In fact, since 2002, the Foundation has supported the planting and preservation of one million trees, and in 2007, by volunteering with KaBOOM!, the associates of The Home Depot completed 1,000 playground projects in 1,000 days. We are proud of these accomplishments and even more excited about the future. The Home Depot Foundation has made a commitment to invest $400 million in grants over the next 10 years, which will result in the development of 100,000 affordable, healthy homes for working families and enable us to plant and preserve more than three million community trees in urban areas. This is a significant pledge, and one that we could not make without the ongoing support and partnership of our supplier partners. Sharing in our commitment to give back to our communities are more than 3,000 suppliers who fill the shelves of our stores. They generously supported the Foundation in 2007, whether through financial donations, or time spent volunteering at community projects. Their contributions are essential to the Foundation’s ability to accomplish its goals. As we embark on 2008, we are eager to strengthen our existing partnerships and explore new opportunities to build healthy, affordable homes and strong, stable communities. 1 se Lawson Photograph by: Jes “The Home Again progra m is strengthening the he art of Pass Christian and givi ng people an opportunit y to have a normal life agai n. These new houses are bringing life and hope ba ck to our neighborhood. ” Donna Maurice Homeowner, Pass Christian, MS e that I “I am so thankful to have a hom affordable. know is energy efficient, safe and the bills and Now I can stop worrying about and my spend my time enjoying my family new home!” Steve Lucero rque, NM Homeowner, Albuque 2 “After a divorce I was left to raise three small children on my own as a single parent. After several months of struggling to pay my bills, I found out about the mixed income housing program at Tyree Scott Apartments. Being at this complex has given me a feeling of stability and has made me realize that the future can always be brighter.” Taneka Amos Resident, Seattle, WA “My home is beautiful. One of the best features of my home is that it is energy efficient. I save money on my gas, heating and air conditioning bills and it is easy to keep my home cool in the summer and warm in the win ter. I love it because I [now] have a peaceful space of my own.” Dorothy Hunter Homeowner, Atlanta, GA 3 Neighbor w o o d s Launched with support from The Home Depot Foundation in 2005 and led by the Alliance for Community Trees (ACT), NeighborWoods is a national program that engages communities and volunteers across the country to plant and care for trees. In 2007 alone, more than 75,000 trees were planted or maintained in 74 cities. The Home Depot Foundation supported large-scale planting, training and outreach events in 10 cities including Atlanta, Chicago, Los Angeles and Nashville. More than 300 Team Depot volunteers from 18 The Home Depot stores contributed 1,000 service hours. 144,000 Trees 27,000 Volunteers $1.6 Million Granted Over 3 Years Complementing the Foundation’s goals surrounding urban forestry, the NeighborWoods program addresses canopy loss and promotes livability in communities’ neighborhood-by-neighborhood. Over the past three years, the Foundation has provided $1.6 million in support of the program. Local grants administered by ACT are focused on projects that improve affordable housing or contribute to community improvement in underserved neighborhoods. “The Home Depot Foundation has made an enormous and inspiring impact on the entire urban forestry profession. The Foundation really understands the essential role of trees to improving community health and vitality.” Shannon Ramsay President Alliance for Community Trees 4 Sawmill C OMMUNIT Y L A ND T R U S T In the 1990’s, the Sawmill Community Land Trust (SCLT) worked with the City of Albuquerque, NM to acquire 27 acres of land in order to develop a community land trust. The purpose of the land trust was — and still is — to build permanently affordable homes and to create economic opportunity within a master-planned infill development. “Before, we did not have a good place for our kids to play. Now it’s like we have our own backyard playspace!” The project fully aligns with the Foundation’s goals as it takes a comprehensive approach to development considering both the long-term affordability of the homes and the proximity to safe and healthy outdoor spaces. Over the last four years, The Home Depot Foundation Kathy Vaughn has donated $175,000 to Neighborhood Parent support the redevelopment of the Arbolera de Vida, which features 93 homes and 60 live/work rental units, which were all developed with green infrastructure and responsible design. 153 Affordable Housing Units 2 Acre Park & Playground $175,000 Granted Over 4 Years In addition to the affordable housing units, the Foundation provided funds for the development of a two acre community park complete with a brand new state-of-the-art playground. In October 2007, 180 volunteers from The Home Depot, SCLT and organizers from KaBOOM!, a national 153 nonprofit organization, built the playground Affordable Housing Units and planted large shade trees. The park and 2 the playground create an area where Acre Park & Playground the residents of the community can gather $175,000 together to enjoy the outdoors, exercise Granted Over 4 Years and play. 5 million trees N Y C Supported by a $1.5 million donation from The Home Depot Foundation, New York City’s Parks Department and the nonprofit New York Restoration Project (NYRP) launched Million Trees NYC to plant and care for one million trees throughout the five boroughs of New York City over the next decade. The Foundation’s funding will be used to bring the economic, social and environmental 1 Million benefits of trees to areas where homes are affordable to working Trees families. Approximately 220,000 trees will be planted along streets and an additional 280,000 trees will reforest the city’s parks. $1.5 Million Granted Over 3 Years Through a mix of public and private plantings, Million Trees NYC will expand New York City’s urban forest by 20 percent. All New Yorkers will share in the many benefits that come from planting trees: more beautiful neighborhoods and parks; cleaner air and water; higher property values; energy savings; cooler summer streets, yards, and public open spaces; and a healthier, more environmentally sustainable city. To ensure that the initiative has broad impact beyond the tree plantings, program elements include community outreach, public education, tree maintenance and urban forestry research. The Million Trees NYC campaign underscores the importance of trees in urban areas and the positive impact they have on the health of local communities. Mayor Michael Bloomberg and New York Restoration Project Founder Bette Midler plant the first tree to launch Million Trees NYC. 6 LISC five years — $70 million invested 50,000 HEALTHY AFFORDABLE HOMES BUILT Support by State: Building Healthy Communities Across the Country In five short years, The Home Depot Foundation has invested more than $70 million in nonprofit organizations across the country and supported the development of more than 50,000 homes for working families < $100,000 $100,000 to $1 Million > $1 Million Location of project that received Award of Excellence for Affordable Housing Built Responsibly Location of project that received Award of Excellence for Community Trees that are healthy to live in and affordable to own. This map highlights a handful of the programs the Foundation has supported through the years. *Given the incorporation of the Company’s community affairs department, 2007 is the first year in which corporate donations are included in the Foundation’s total giving. *Case Studies of all Awards of Excellence recipients can be found online at www.homedepotfoundation.org. Folsom / Dore Apartments San Francisco, CA Citizens Housing Corporation built 98 units of very efficient affordable housing for low-income residents in San Francisco. The transit-oriented infill development is 20 percent more efficient than California’s energy code requirements. Nat i o n a l T r e e P l a n t i n g P r o g r a m Denver, CO For two consecutive years, the Foundation has partnered with The National Arbor Day Foundation for a 10-city campaign to draw attention to the economic, social and environmental benefits of community trees. To date, the partnership has planted 2,000 trees in 20 cities across the country. 10 Davenport Tree Pl anting Progr am Davenport, IA The City of Davenport partnered with Greenway Habitat to launch the Davenport Tree Planting Program, a comprehensive city-wide initiative that has planted over 8,500 trees since 1992, and is approaching its goal of restocking the city’s urban forest by 2010. trolley square Cambridge, MA The City of Cambridge created a mixed-income, mixed-use green development with 40 affordable residential units for first-time buyers. By placing the parking underground, developers were able to provide more open, green space for residents. Hometown Commitment Atlanta, GA Through strategic partnerships with many of Atlanta’s most effective nonprofit organizations, the Foundation is committed to the long-term health and sustainability of our hometown. Roanoke-Lee Street Blacksburg, VA Led by Community Housing Partners, the Roanoke-Lee Street Project consists of 14 units of green, affordable, sustainable duplex housing for sale to first-time homebuyers within walking distance of the town center. 11 awards of excellence The Home Depot Foundation created the Awards of Excellence program in order to identify, recognize and showcase the outstanding and innovative work being done by nonprofit organizations across the country in the areas of affordable housing built responsibly and community trees. The overarching goal of the program is to celebrate the achievements of local organizations and provide opportunities for our nonprofit partners — both new and existing— to share their experiences, key learnings, challenges and best practices. Congratulations to our 2007 Awards of Excellence winners! Rental Category National Winner Citizens Housing Corporation San Francisco, CA Homeownership Category National Winner Community Housing Partners Corporation Blacksburg, VA National Runner-up Homeowner’s Rehab, Inc. Cambridge, MA Large City Category National Winner City of Philadelphia, PA & Pennsylvania Horticultural Society Small City Category National Winner City of Wilmington, DE & Delaware Center for Horticulture National Runner-up City of Albuquerque, NM & Tree New Mexico National Runner-up Village of Orland Park, IL & Openlands of Orland Park * Case studies of Awards of Excellence projects can be found online at www.homedepotfoundation.org. 12 u.s. conference of “A quality of life is the most important thing that a city can provide for its residents. We came to understand very early on that in order to have a high quality of life…we had to get rid of the concrete and add trees and life. We have planted over 50,000 trees in neighborhoods in our city.” MAYORS The financial stability of neighborhoods, availability of affordable, healthy housing and access to safe recreational spaces are issues challenging mayors throughout the country. Through our partnership with the U.S. Conference of Mayors, The Home Depot Foundation has shared resources, information and best practices that have helped Former Mayor John F. Street City of Philadelphia local leaders enhance the social, economic and overall well-being of their cities. With a focus on the benefits of community trees, the partnership has highlighted the urban forest as an essential part of any healthy, stable community. Together with the Conference, the Foundation is improving the quality of life for residents of America’s cities. visionary award In 2007, The Home Depot Foundation presented its inaugural Visionary Award to Bart Harvey, former Chairman of Enterprise Community Partners, for outstanding leadership in affordable housing built responsibly. Since the launch of the Green Communities Initiative in 2004, under Harvey’s leadership Enterprise has transformed the way the entire industry thinks about, designs and builds affordable housing. He created a new vision and framework for sustainable cities, healthy communities and efficient homes by building a coalition of organizations to support the initiative. Harvey’s influence extends far beyond the bricks and mortar of the homes— his work has allowed thousands of families of modest means the opportunity to create successful lives in healthy, efficient, environmentally smart affordable homes. 13 Supplier Advisory Committee “Without the support of the Company’s supplier/ vendor community, The Home Depot Foundation would not be able to fully reach its mission of building healthy, affordable housing and strong, stable communities. Absolutely 100% of your donations go to improve our communities. Thanks to each of you for your partnership, your financial generosity and your time spent volunteering in your community; it really makes a difference.” In 2007, The Home Depot Foundation formed a Supplier Advisory Committee as a way to better connect with and strengthen the relationship between the supplier/vendor community that so generously supports the Foundation and its mission. Bruce Merino Chair of The Home Depot Foundation SVP Merchandising, The Home Depot Advisory CommitteE Members Chris Allen Vice President and General Manager The Scotts Company Kevin Harlan Vice President Freud America Ned Bartlett, Esq. Partner Bowditch & Dewey, LLP Ruth Isaac Partner Kutak Rock, LLP Jim Breech Vice President – Sales Oldcastle Retail John Johannson Senior Vice President Welsh Companies, LLC Diane Fannon Principal The Richards Group Roy Keating Vice President – Sales and General Manager MTD Products, Inc. Richard Filler Executive Vice President and COO The Harlem Irving Companies Doug Frain Executive Vice President and Principal Diversified Maintenance Systems, Inc. 14 Steve Mog Vice President and General Manager Andersen Windows Jane Nelson Shareholder Lane Powell P.C. George Newi Senior Vice President and Group Account Director Initiative John Russell President Mendocino Forest Products Company, LLC Melody Watson National Sales Director Coca Cola Enterprises Joe Wersosky Vice President – Sales Ames True Temper 2007 Corporate 3M A&E Television Networks ABC Radio Networks ABC Television Network ABCO Products Abitibi Consolidated Inc. Above All Landscaping, Inc. Above All Maintenance Company, Inc. AcuityBrands Lighting AcuityBrands Specialty Products Adance Adjusta-Post Lighting Advance, Division of Philips Lighting Electronics Advanced Drainage Systems, Inc. Advanced Equipment Maintenance Co. of DE, Inc. Advantage Sales & Marketing ADVO, Inc. Aearo Technologies Aerocom Systems, Inc AFC Cable Systems Affiliated Customer Service, Inc. Air Cool Industrial Co., Ltd. Alderman Company Alexandria Moulding All-Coast Forest Products, Inc. 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