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Best Buy Co., Inc.
Investor PresentationApril 2007
Safe Harbor
Cautionary Statement Pursuant to the Private Securities Litigation Reform Act of 1995
This presentation may contain forward-looking statements, which are subject to risk and uncertainty. A variety of factorscould cause our actual results to differ materially from the anticipated results expressed in such forward-looking statements, including, among other things, factors listed in our Annual Report on Form 10-K filed with the SEC on 5/10/06. That 10-K describes additional factors that could cause actual results to differ materially from those contemplated by the forward-looking statements made in this presentation.
Superstores FY07 End990 stores
Superstores Future1,200+ stores
Canadian Market Share Over 30%
Total U.S. Market Share
Canadian Market Store Presence
North American Leader
95121
47
FY02 FY07
Best Buy U.S. Market Share - Products
5%
15%11%
16%13%
7%
24%22%23%
20%
Total HomeTheater
Computing/Dig. Imag.
Music Appliances
2001 Market Share 2006 Market Share
5%
20%19%
13%14%
6%6%
7%
5%5%
0.0%
5.0%
10.0%
15.0%
20.0%
1997 1999 2001 2003 2004 2005 2006
Calendar Year
Based onCalendar Year
$35.9$30.8
$27.4$24.5
$20.9$17.7
FY02 FY03 FY04 FY05 FY06 FY07
($ in billions)Revenue Growth
History of Growth
$1.07 $1.11$1.44
$1.75
$2.27$2.79
FY02 FY03 FY04 FY05 FY06 FY07
Diluted EPS1
1 Pro-forma adjusted for FAS 123 expense
15% CAGR
21% CAGR
22%
17% 16%19% 20%
FY02 FY03 FY04 FY05 FY06
ROIC2
2Fiscal years 2002 thru 2005 have not been adjusted for FAS 123 expense
+5 Pts
FY07 Results
Total revenue growth 16%
Comp revenue growth 5.0%
Operating income % +23 bps
Diluted EPS growth 23%
U.S. Market Share 20%
• Revenue Up 9% to $39B
• Gross profit % Down 30 - 40 bps
• SG&A % Improve 60 - 70 bps
• Operating inc. % Improve 30 bps
• Diluted EPS $3.10 - $3.25
Fiscal 2008 Guidance1
1 As communicated on April 4, 2007
Average of 14% EPS Growth
Customer Centricity: Our Growth Lens
Invite Employee Ideas
Provide End-to-End Solutions
Honor Unique Customers
Customer Experience
Core B
usine
ss
New Customers & Formats
New Markets
• Full Solutions
• New Formats
• Private Label
• Services
• Customer Access: – In stores, online, over the phone, in home
Growth: Core Business
Vista• 24-Hour support• Geek Squad City• 60,000 trained Vista
experts (Blue-shirts and Geeks)
• In-store tutorials• In-home set-up and new
PC data transfer
Growth: Core Business
Home Theater• 3,000 HT Installers• HD Done Right
– Installations up– Returns down
• Customer Satisfaction Up
Fiscal 2008: Domestic New Store Opening Plans
# of NewStores % Change
Sq. Ft. %Change
~ 90 +11% +9%
Up to 5Up to 35%
Up to 36%
Fiscal 2008 store expansion plans announced on February 21, 2007
Business
High-end
Others?
Growth: New Customers
#1 with 20% Market Share
Growth with New Formats
• Canada
• China
• United Kingdom
Growth: New Markets
Fiscal 2008: International New Store Opening Plans
Country# of NewStores % Change
Sq. Ft. % Change
Canada 6 – 7 +5% +6%
Canada 6 – 7 +14% +12%
China 20 – 23 +16% +16%
China 2 – 3 +>200% +145%
Chinese Retail Environment
• Different retail experience versus the U.S.• Consumer behavior is rapidly changing• China has 176 cities with >1M
people…North America has 9 cities• Multi-pronged approach to the market
– Five Star, a traditional electronics player– Best Buy, with a U.S.-like business model– Potential opportunities in services, dot com
• Third-largest appliance and consumer electronics retailer
• BBY acquired a 75% interest in June 2006
• 2006 CY revenue of ~$0.9 billion (USD)1
• Strong existing management team remains intact
Five Star
1 Represents revenue for the entire calendar year including the portion of the year not under Best Buy ownership
Best Buy China
• 86,000-square-foot store in Times Squareof Shanghai
• Opened on December 28, 2006
• Consumer research is leading the way
• Goal is an improved retail experience for the Chinese consumer
International Priorities
• Leverage our strengths
• Focus on large, growing and “optimistic” economies– Announced tests in
Mexico and Turkey
• Approach:– Dream big– Start small– Learn fast– Scale profitably
72 72
71
76
2003 2004 2005 2006
BBY: Customer Satisfaction
#1 Driver of Improvement: Quality of Interaction with
Employees
Source: American Customer Satisfaction Index Fourth Quarter Scores – 2/20/07 (www.theacsi.org)
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