A message from the Chairman of the Board

Brett Stephenson, Chairman

Dear Ace Shareholders,

Heading into 2021, we laid out aggressive plans to "Give No Ground" on the unbelievable growth we experienced in 2020. I’m proud to say our Ace team rose to new heights and not only gave no ground but actually gained ground.

What’s even more impressive is that we achieved these results despite a fractured supply chain, labor uncertainty, surging wage rates, inflation and — yes — the lingering reality of COVID-19. While these headwinds made it tougher, 2021 turned out to be one of the most challenging yet financially rewarding years in our company’s great history:

• We served an incremental 4 million new customers
• We opened a record-shattering 182 stores in the U.S.
• We saw a 7.5% increase in same-store sales

These results did not happen by accident. They are a direct result of hard work, perseverance and creativity. And people took notice. Our Customer Engagement scores were outstanding yet again, topping 85% OSAT. And employee engagement scores, even with all the challenges, came in at an impressive 87%.

What’s more is that we as a company maintained our servant hearts and generosity, helping the Ace Foundation raise an astounding $20.8 million overall in 2021. This includes funds for Children’s Miracle Network (CMN) Hospitals, the American Red Cross, Habitat for Humanity and our own Ace Helpful Fund, which has assisted more than 200 members of the Ace family since its inception.

We also received several awards in 2021 that recognized everything from Ace’s outstanding growth to the engagement and talent of our employees. Here are just a few highlights from the past year that illustrate Ace’s significance in the hardware and retail industry:

• Consumers rated Ace retailers #1 in customer service for the 14th time in 15 years, according to J.D. Power
• Ace was ranked as having the 2nd "best reputation" for all retailers by consumers, according to Chain Store Age
• Ace was ranked the 3rd "most admired" retailer by Forbes Magazine
• Ace was ranked the 4th largest franchise in the world by Franchise Times
• Ace Hardware Corporation was ranked the 7th best place to work in the Chicagoland area for large companies by the Chicago Tribune

On behalf of the entire Board, thank you for your remarkable efforts in these unprecedented times. I continue to be amazed by your steadfast commitment to serving your neighbors by being the best, most helpful hardware stores on the planet.

Brett Stephenson
Chairman of the Board