SunTrust Robinson Humphrey April 7, 2003

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SunTrust Robinson HumphreyApril 7, 2003

• Dollar General Corporation
• Don Shaffer
• President and Chief Operating Officer

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Forward-Looking Information
Our comments today will contain historical and
forward-looking information. The forward-looking
information includes, but is not limited to,
information regarding the 2003 Company outlook,
including without limitation, annual sales and
earnings guidance, growth targets, capital
expenditures and key goals. The words believe,
anticipate, plan, project, expect,
estimate, objective, forecast, goal,
intend, will likely result, or will
continue and similar expressions generally
identify forward-looking statements. The
forward-looking statements are made pursuant to
the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The
Company believes the assumptions underlying these
forward-looking statements are reasonable
however, any of the assumptions could be
inaccurate, and therefore, actual results may
differ materially from those projected by or
implied in the forward-looking statements. A
number of factors may result in actual results
differing from such forward-looking information,
including, but not limited to the factors set out
in our most recent Annual Report on Form
10K. You are cautioned not to place undue
reliance on these forward-looking statements,
which speak only as of the date of this
presentation. The Company disclaims any
obligation to publicly update or revise any
forward-looking statements contained herein to
reflect events or circumstances occurring after
the date of this presentation or to reflect the
occurrence of unanticipated events. In this
presentation we refer to certain non-GAAP
financial information, specifically net income,
earnings per share and S,GA expenses, excluding
restatement-related items. We have made these
disclosures in an effort to clarify, for our
investors, our normalized operating results on a
comparable basis. The compensation committee of
our board of directors may use this information
for compensation purposes to ensure that no
person is inappropriately penalized or rewarded
as a result of unusual items affecting our
financial statements. Management also may use
this information to better understand the
underlying ongoing operations of the company. A
reconciliation to GAAP is included in this
presentation as well as on the accompanying
slides, which can be found on our website at
www.dollargeneral.com

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Our Strategy
A customer-driven distributor of consumable
basics
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Our Niche
Small store convenience and everyday low price
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Our Customer

• Primarily low and fixed income customers
  attracting more affluent customers
• 76 female increasing male shoppers
• 66 Caucasian, 27 African-American 7 Hispanic

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2002 Key Accomplishments

• Opened 622 stores
• Completed rollout of new registers and VSAT
• Converted Fulton DC to dual sortation
• Opened our Florida Import Center in Alachua
• Implemented the Seven Habits of a Highly
  Effective Dollar General Store
• Reduced excess inventories

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2002 Key Accomplishments

• (Continued)
• Completed UPC inventories in all stores
• Launched aggressive shrink control program
• Installed Arthur merchandising system
• Added coolers to 956 stores
• Thoroughly tested store auto replenishment system
• Opened 18 training centers

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As of 1/31/03
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Distribution Center Initiatives

• Converted Fulton DC to dual sortation equipment
• Opened Florida Import Center at Alachua DC

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Perpetual Inventory

• Completed item inventories in all stores
• Opportunities
• For auto replenishment
• Proper allocation of seasonal inventory
• Improve in-stock position
• Increase sales
• Increase inventory turnover

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The Seven Habits

• Ordering
• Stocking
• Receiving
• Presentation
• Selling
• Staffing
• Support

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Inventory Shrink Initiatives

• 28 person loss prevention team located in high
  shrink areas
• Exception reporting software
• Installed 415 closed circuit TVs in 2002 plan
  to add 1,000 in 2003
• Installed 1,900 security alarms in 2002 plan to
  add 1,600 in 2003
• Shrink tip hotline
• Shrink committee headed by senior director of
  internal audit

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Arthur Merchandising System

• Provides a single source for merchandising data
• Sales and receipts loaded daily from POS and
  warehouse system data
• 2003 merchandising plan for sales, receipts,
  inventory and IMU by week by class
• Analysis and planning by groups of similar stores
• Ability to cluster stores based on sales trends
• 2003 planned by week for 500 classes

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Cooler Program

• Includes milk, eggs, cheese, sandwich items,
  frozen foods, ice cream
• Inventory managed by vendors
• Coolers in 1,367 stores in five states as of
  January 31
• Plan to add 1,000 stores and four additional
  states in 2003
• Average ticket with cooler transaction is 13.00
  vs 8.50 without cooler transaction
• 40 of the increase is non-cooler product
• Allows the store to accept federal food stamps
  (EBT)

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Auto Replenishment

• Automatic replenishment of 13 of SKUs in all
  stores includes cough and cold, vitamins,
  family core apparel, insecticides
• Tested auto replenishment on all core merchandise
  in select stores for over 3 years
• Utilized in 175 stores in two regions since
  mid-year
• Higher in-stocks and lower inventory levels
• More even workflow at stores and distribution
  centers
• Currently in over 350 stores plan to expand to
  up to 2,500 stores in 2003

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Store Manager Training

• Curriculum
• Week 1 Classroom training - 7 Habits
• Weeks 2 and 3 in-store training
• Week 4 Classroom training - Role of the Manager
• 23 training centers open
• Total of 35 before summer
• Currently only new managers goal is to have all
  managers attend

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2003 Initiatives

• Open 650 new stores, remodel or relocate 145,
  close 50-70
• Continued implementation of the Seven Habits
• Continued emphasis on shrink reduction
• Addition of coolers to 1,000 stores
• Implementation of auto replenishment in up to
  2,500 stores
• Testing of debit, credit and EBT cards
• Search for new distribution center site

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Financial Review

• Jim Hagan
• Executive Vice President and
• Chief Financial Officer

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Q4 Earnings Results and Reconciliation to GAAP
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Q4 Statements of Income
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Q4 Statements of Income
(Dollars in millions except per share amounts)
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Q4 Statements of Income
(Dollars in millions except per share amounts)
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Q4 Statements of Income
(Dollars in millions except per share amounts)
(Dollars in millions except per share amounts)
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Q4 Statements of Income
(Dollars in millions except per share amounts)
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FY 2002 Earnings Results and Reconciliation to
GAAP
Dollar General Corporation
Dollar General Corporation
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FY 2002 Statements of Income
(Dollars in millions except per share amounts)
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FY 2002 Statements of Income
(Dollars in millions except per share amounts)
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FY 2002 Statements of Income
(Dollars in millions except per share amounts)
(Dollars in millions except per share amounts)
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FY 2002 Statements of Income
(Dollars in millions except per share amounts)
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FY 2002 Statements of Income
(Dollars in millions except per share amounts)
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Balance Sheet Summary ( in millions)
(Dollars in millions)
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2003 Financial Guidance

• 13 - 15 total sales growth
• 4 - 6 same store sales growth
• Net income growth of 11-15, excluding
  restatement-related items
• 650 new stores, 145 remodels or relocations,
  50-70 closings
• Planning shrink improvement
• No significant lowering of S,GA to sales rate
• Tax rate of 36.4
• Capital expenditures of 165 million

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Miscellaneous Topics of Interest

• Share repurchase program 12 million shares
  authorized through March 2005
• Increased quarterly dividend from 0.032 to
  0.035
• David Perdue named as CEO last week
• SEC investigation continues

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Our Mission
Serving Others For CustomersA Better Life For
ShareholdersA Superior Return For
EmployeesRespect and Opportunity