2023: Legendary Past; Bright Future

As 2022 comes to a close, we are gearing up for a special year ahead at Tractor Supply.

2023 marks 85 years in business for our company.

It’s a remarkable achievement, especially when you consider that literally hundreds of other retailers have gone out of business over this time.??

This type of longevity is only possible when many things align and work in concert together – both internally and externally. The customer need must be clear and definable. The market opportunity should be large and expanding. Business strategy must be smart and nimble. Financial position must be strong and consistently stable. And a little luck and fortune are required. Tractor Supply has been fortunate to benefit from all of these. As a rural lifestyle retailer, we fill a unique niche and serve a particular customer who is dedicated to living life “Out Here.” Whether it’s providing feed and food for livestock and pets, supplies to care for yard and garden, or tools and hardware to support projects around the family farm, Tractor Supply is trusted by millions of loyal customers. And as more people embrace this lifestyle, we’ve been there to meet their needs.

But beyond that, I firmly believe that the success we’ve experienced since our founder Charles E. Schmidt envisioned the business is primarily due to one thing. Well, make that?50,000+?things: our Team Members.

There will always be other stores that sell similar products, but the strength of Tractor Supply will always be our team.

Our team lives our Mission to “Work Hard, Have Fun and Make Money,” and they bring our Values to life in every interaction. Our Team Members define our culture. It is how things get done at Tractor Supply. It is the feeling you get when you shop our stores. Our Team Members’ legendary service – along with deep knowledge and expertise – foster connections that keep our customers coming back to our stores.?

We have long operated under the guiding principle that if we are taking good care of our team, they in turn take great care of our customers, and the rest takes care of itself. This has proven true for us year after year.?

Tractor Supply boasts an impressive history. We started from humble roots – first as a tractor parts mail-order catalogue founded 1938, then opening our very first store in Minot, North Dakota the following year. Since that time, we have operated in all types of economic conditions. While we experienced some tough times in the 70s, we were able to refocus on our core customer and maintain consistent, stable growth, year after year, over the last 30+ years. There has been very little fanfare, just lots of hard work with our fair share of fun sprinkled in. That’s just who we are.?

In recognition of our legendary 85-year history, I thought I’d take a moment to call out some of the highlights:

• 1960: Opened our 100th?store in Hutchinson, Kansas
• 1979: Moved our headquarters to Nashville?
• 1994: Went public on the NASDAQ (TSCO)
• 2002: Acquired Quality Stores and sales hit $1 billion?
• 2011: Opened our 1,000th?store in South Hill, Virginia
• 2014: First included on the Fortune 500 at #480
• 2016: Acquired Petsense
• 2019: Opened 8th?distribution center in Frankfort, New York
• 2020: Sales hit $10 billion?
• 2021: Opened our 2,000th?store in White House, Tennessee
• 2022: Acquired Orscheln Farm & Home?

Tractor Supply’s needs-based, demand-driven business model has stood the test of time. And our consistency has been reflected in our stock price performance as well. As of this writing, since 2000, we are the 3rd-best performing stock in the S&P 500.?

Today, we have more than 2,100 stores in 49 states, generate over $14 billion in revenue, and are more than 50,000 Team Members strong. And our future couldn’t be brighter. The pandemic has driven several lifestyle shifts that have really accelerated our business. And as we look ahead, our growth will be guided by our “Life Out Here” strategy:

1. Deliver Legendary Customer Experiences?– which focuses on welcoming more customers to our stores and creating an improved experience through initiatives like our Project Fusion store remodels and garden center transformations;
2. Advance Our One Tractor Capabilities?– creating a seamless customer experience across in-store, online and app and engaging with our customers anytime, anywhere and any way;?
3. Operate the Tractor Way?– enhancing the productivity and efficiency of our existing retail assets;
4. Go the Country Mile for Our Team?– ensuring we continue to support and show our appreciation for our team members who drive our business every day; and?
5. Generate Healthy Shareholder Returns?– which reinforces our commitment to effective stewardship of our shareholders’ capital.

This strategy is coming to life through the dedication of our Team Members, supported by a step up in capital investments of about $3 billion over five years (2022 to 2026). At our Store Support Center and in my visits to our stores and distribution centers, it is truly inspiring to see the passion our people have for Life Out Here, their commitment to serving our customers, and their enthusiasm for giving back to our 2,100+ communities.

The coming year will be a year of celebration – looking back at a legendary 85 years and what we have achieved together.

2023 will also be a year of excitement and anticipation as we continue building on the success of the past and embark on the next 85 years, looking toward a bright future ahead.?

My deepest gratitude to our Team Members and all they give to Tractor Supply. And my thanks to our customers for trusting us to serve their needs “Out Here.”