morgan stanley global consumer & retail conference

Morgan StanleyGlobal Consumer &Retail Conference

November 14, 2007

2

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 factors could 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 5/02/07. 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.

3

Dave MorrishSenior Vice President – PC Mobility Solutions

4

Sean SkelleySenior Vice President – Services

5

History of Growth

$35.9$30.8

$27.4$24.5$20.9

$17.7

FY02 FY03 FY04 FY05 FY06 FY07

($ in billions)

$1.07 $1.11$1.44

$1.75

$2.27$2.79

FY02 FY03 FY04 FY05 FY06 FY07

1 Pro-forma adjusted for FAS 123 expense

15% CAGR

21% CAGR

22% 21%

17% 16%19%

20%

FY02 FY03 FY04 FY05 FY06 FY07

ROIC2

FY07 Results

Total revenue growth 16%

Comp revenue growth 5.0%

Operating income % +23 bps

Diluted EPS growth 23%

Market share 20%

+4 pts

2Fiscal years 2002 thru 2005 have not been adjusted for FAS 123 expense

Diluted EPS1

Revenue Growth

6

Appliances

Home OfficeEntertainment Software

Consumer Electronics

ServicesOther

Total

Revenue Mix Summary

Three Months Ended Sept. 1, 2007

Comparable Store Sales

Three Months Ended Sept. 1, 2007

38%

31%16%

8%

6%1%

100%

(1.6)%

9.8%9.3%

(7.1)%

5.3%n/a1

3.6%

1

1Other includes fees received from cardholder account activ ations that are def erred and recognized ov er time, resulting in rev enue recognition that is not indicativ e of the v olume of activations in the current period. These rev enues are excluded from our comparable store sales calculation. Other also includes revenue from the sale of products unrelated to our core offerings. For this reason, we do not prov ide a comparable store sales metric f or this revenue category.

Revenue Mix and Growth

1

7

BeforeCustomer Centricity

Fiscal 2006 Now

Our Journey

8

Total U.S. Market Share

Winning with Customers

0%

5%

10%

15%

20%

25%

1997 '99 2001 '03 '04 '05 '06

Computer Return & Exchange Rate

Improving the Experience and Growing Share

+

9

You can trust Best Buy and Geek Squad to make your computer and everything

you connect to it always work seamlessly so that you can

enjoy your passions.

Imagine if…

This is Why We Come to Work

10

Trusted Perspective For Inspired Living

You can trust Best Buy and Geek Squad to make your computer and everything

you connect to it always work seamlessly so that you can

enjoy your passions.

Store & Online

Assortment & Experience

We > MeCustomerResolution

Support

Transparency

Reputation

11

12

13

14

Addressing Customer Needs

15

Unique Customer Solutions

16

Trusted Perspective For Inspired Lives

You can trust Best Buy and Geek Squad to make your computer and everything

you connect to it always work seamlessly so that you can

enjoy your passions.

Store & Online

Assortment & Experience

We > MeCustomerResolution

Support

Transparency

Reputation

17

EXPANDING ON GEEK SQUAD’S FOOTHOLD IN THE HOME

Car ElectronicsHome Theater Computer Support

Geek Squad is now the master services brand for Best Buy (except appliances).Making Geek Squad a resource for “whole home” tech support in advance of convergent technology.

Expands the ranks of our agents and installers to 17,000.

18

GEEK SQUAD CITY165,000 square ft. centralized repair facility in Louisville, KY (partnered with UPS)Over 500 dedicated employees on-site to speed turn-times and improve repair quality/consistency.Go-to backup for service and repair work that can’t be performed inside a Best Buy store.Rallying point for our agents - a spiritual home for the Geek Squad brand.

19

GOING BEYOND BREAK/FIX

Sky high (85%) consumer awareness of mature break/fix business.

Raising awareness of Geek Squad services in growing categories like wireless networking.

Showing consumers ways they can proactively engage Geek Squad. We can help with wants and needs.

Telling them how Geek Squad services are truly different from competitors (e.g. phone & cable co’s)

20

R&D / New Product Tr ials

Remote ServicesCall CenterClaims Pro cessingData An alytics

Customer Focused AgentsGlobal W orkforce

Decision Support

Contract a

nd Billing Platfo

rm

Field Management System

Schedule / Routing / Dispatch

Agen

t Jon

ny U

tah

HomeIntegration

Assurance

ManagedServices

Small Business Partnerships

Green Migration& Disposal

International

Web 2.0

MRI

MyA

gent

Geek Squad City

Brand

CSI Scores

BUILDSERVICES

OPERATION

The Services Story

Services Foundation

21

Adapting to Serve Customers

22

Customer Research Tools

23

Adding On-Line Capabilities

• Customer Ratings and Reviews• Independent Research• Launched website in Spanish• Earn and redeem Reward Zone

points on-line

1M+ Members~25M Members

Core Program RZ MasterCard

24

Part of a Global Community

• Nominated for U.S. Chamber of Commerce Corporate Citizenship Award (11/07)

• Named one of top 100 U.S. Corporate Citizens in 2007 by CRO magazine

• Donated approximately $25 million to our communities in fiscal 2007

• Facilitated 30,000 tons of e-waste recycling in fiscal 2007 – more than any other retailer in the U.S.

Our Employees Providing Leadership for our Industry, our Customers and Our Communities

25

Notebook

DVR

Home Theater Systems

Gaming System

Desktop

Digital Camera

Networking

PhoneSatellite Radio

iPhone

Technology: Not Just a Lifestyle…It’s the infrastructure of life

26

Your Questions