Reinvesting in Our Business,
Returning Excess Cash to Shareholders

TJX's financial strength and flexibility have always been cornerstones of our success and give us great confidence in our ability to succeed in many kinds of economic and retail cycles. We have a consistent history of generating enormous amounts of cash through our strong operations and have delivered superior financial returns that are among the highest in retail. We operate with a low cost structure and are extremely focused on returns on investment. We have an “A” Standard & Poor’s credit rating, one of the strongest in the retail industry, and ample financial liquidity, which gives our vendors, landlords and other business associates a high degree of confidence. Our tremendous cash flow has allowed us to simultaneously invest in the growth of our business while returning value to shareholders. We deploy our excess cash with a careful balance between maintaining our flexibility, reinvesting in the growth of our businesses and redistributing cash to our shareholders through our share repurchase and dividend programs. In 2011, we plan to continue our balanced approach to managing cash. We are increasing our capital spending budget to $800-$825 million to support continued growth and improvement in our stores and investments in our supply chain and infrastructure. Simultaneously, we plan to continue our significant share buyback program with $1.2 billion of repurchases planned in 2011. Through our substantial share buyback program, we have repurchased $8.7 billion of TJX stock since 1997.* We increased the per-share dividend by 27% over the prior dividend in April 2011, the 15th consecutive year of a dividend increase. These actions underscore our confidence in the continued profitable growth of our business and our ongoing commitment to shareholder cash distributions. On top of all of this, we expect to end 2011 with approximately $1.5 billion in cash. With our strong financial foundation and cash flow, we believe we are very well positioned to continue growing our business, capitalizing on opportunities, and returning value to shareholders within ever-changing business climates.

*As of Q4 FY11