Second Quarter Earnings Release, FY 2009
                                           1
Forward-Looking Statements
        Certain statements contained in this presentation are forward-looking statements. Forwa...
Second Quarter Fiscal 2009
     Conference Call

                     March 3, 2009

                                 3
The AutoZone Pledge -

          AutoZoners always put customers first!
              We know our parts and products.
    ...
Second Quarter FY 2009 P&L
                                            12 Weeks Ended   12 Weeks Ended
                   ...
Second Quarter YTD FY 2009 P&L
                                            24 Weeks Ended   24 Weeks Ended
               ...
Growth Priorities
   U.S. Retail (DIY)
   Commercial (DIFM)
   Mexico




                       7
New Store Highlights
                                                                  Total
                             ...
Growth Priorities
   U.S. Retail (DIY)
   Commercial (DIFM)
   Mexico




                       9
Q2 Commercial Highlights
                                                      # of
                                      ...
Growth Priorities
   U.S. Retail (DIY)
   Commercial (DIFM)
   Mexico




                       11
Q2 FY 2009 Total Cash Flow

                                             12 weeks      12 weeks     24 weeks     24 weeks
...
Balance Sheet Highlights
            $ Millions                         2/14/2009    2/9/2008        H/(L)
            Inv...
Strong Financial Disciplines
                                      Continued EPS growth
                  Grow Retail Sale...
15
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autozone 2CB07739-9816-492C-B4D9-28343226C218_Q2F09Slides

  1. 1. Second Quarter Earnings Release, FY 2009 1
  2. 2. Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements. Forward-looking statements typically use words such as “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: competition; product demand; the economy; credit markets; the ability to hire and retain qualified employees; consumer debt levels; inflation; weather; raw material costs of our suppliers; energy prices; war and the prospect of war, including terrorist activity; availability of consumer transportation; construction delays; access to available and feasible financing; and changes in laws or regulations. Forward-looking statements are not guarantees of future performance and actual results; developments and business decisions may differ from those contemplated by such forward-looking statements, and such events could materially and adversely affect our business. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may materially differ from anticipated results. Please refer to the Risk Factors section of AutoZone’s Form 10-K for the fiscal year ended August 30, 2008 for more information related to those risks. In addition to the financial statements presented in accordance with Generally Accepted Accounting Principles, AutoZone has provided metrics in this presentation that are not calculated in accordance with GAAP. For a reconciliation of these metrics, please see AutoZone’s press release in the Investor Relations section at www.autozoneinc.com. 2 Copyright 2005, All Rights Reserved
  3. 3. Second Quarter Fiscal 2009 Conference Call March 3, 2009 3
  4. 4. The AutoZone Pledge - AutoZoners always put customers first! We know our parts and products. Our stores look great! We’ve got the best merchandise at the right price. 4
  5. 5. Second Quarter FY 2009 P&L 12 Weeks Ended 12 Weeks Ended B(+)/W(-) 2/14/2009 2/9/2008 $ Millions Net Sales $ 1,448 $ 1,339 + 8% Gross Margin 49.7% 49.9% - 18 bps Operating Expense Ratio 34.9% 35.2% + 31 bps Operating Profit (EBIT) $ 215 $ 197 + 9% Operating (EBIT) Margin 14.8% 14.7% + 13 bps Interest $ 31.9 $ 28.6 - 12% Tax Rate 36.6% 36.6% Net Income $ 116 $ 107 + 9% Diluted Shares 57.2 63.7 + 10% Diluted EPS $ 2.03 $ 1.67 + 21% 5 Copyright 2005, All Rights Reserved
  6. 6. Second Quarter YTD FY 2009 P&L 24 Weeks Ended 24 Weeks Ended B(+)/W(-) 2/14/2009 2/9/2008 $ Millions Net Sales $ 2,926 $ 2,795 + 5% Gross Margin 49.9% 49.9% + 3 bps Operating Expense Ratio 34.4% 34.3% - 7 bps Operating Profit (EBIT) $ 453 $ 434 + 4% Operating (EBIT) Margin 15.5% 15.5% - 5 bps Interest $ 63.1 $ 56.7 - 11% Tax Rate 36.6% 36.6% Net Income $ 247 $ 239 + 3% Diluted Shares 58.0 64.6 + 10% Diluted EPS $ 4.26 $ 3.70 + 15% 6 Copyright 2005, All Rights Reserved
  7. 7. Growth Priorities U.S. Retail (DIY) Commercial (DIFM) Mexico 7
  8. 8. New Store Highlights Total 2nd Store Quarter Count New 20 Replaced 0 Closed 1 Ending Domestic AutoZone Stores: 4,141 Dom estic square footage (000's) 26,573 Dom estic square footage per store 6,417 Ending Mexico Stores 8 158 Ending Total Store Count 4,299 8 Copyright 2005, All Rights Reserved
  9. 9. Growth Priorities U.S. Retail (DIY) Commercial (DIFM) Mexico 9
  10. 10. Q2 Commercial Highlights # of Commercial Programs Domestic AutoZone Stores: New 2,252 1% % increase in programs vs. LY 2nd Quarter Domestic Commercial Sales: $162.7 ($ millions) 4.3% % increase in sales 10 Copyright 2005, All Rights Reserved
  11. 11. Growth Priorities U.S. Retail (DIY) Commercial (DIFM) Mexico 11
  12. 12. Q2 FY 2009 Total Cash Flow 12 weeks 12 weeks 24 weeks 24 weeks ended ended ended ended $ Millions 2/14/2009 2/9/2008 2/14/2009 2/9/2008 Net increase (decrease) in $ 22 $ 14 $ (134) $ 7 cash and cash equivalents Subtract increase/(decrease) in debt 423 (66) 441 159 Subtract share repurchases (375) - (647) (350) Cash flow before share $ (25) $ 80 $ 72 $ 197 repurchases & changes in debt Ending debt $ 2,691 $ 2,095 $ 2,691 $ 2,095 12 Copyright 2005, All Rights Reserved
  13. 13. Balance Sheet Highlights $ Millions 2/14/2009 2/9/2008 H/(L) Inventory $ 2,190 $ 2,068 + 6% Pay-on-scan inventory $ 5 $ 11 - 54% Total inventory $ 2,195 $ 2,079 + 6% Inventory/store $ 0.511 $ 0.504 + 1% Inventory, net of payables $ 215 $ 226 - 4% Inv., net of payables/store $ 0.050 $ 0.055 - 8% Inventory turns 1.6x 1.6x Working capital $ 112 $ 31 Net fixed assets $ 2,267 $ 2,204 + 3% Debt $ 2,691 $ 2,095 + 28% Equity $ (187) $ 282 - 166% 13 Copyright 2005, All Rights Reserved
  14. 14. Strong Financial Disciplines Continued EPS growth Grow Retail Sales Refinement of Parts Coverage Deploy inventory more effectively across network with specific emphasis on utilizing Hub network more effectively Invest in AutoZoner training and retention Make sure our stores look great Make sure we put our customers first in everything we do Customer service will continue to be our key point of differentiation Grow Commercial Sales Only 12% of domestic sales & 1.3% market share today Continue focus on building best-in-class B2B selling organization Focused on profitable growth Prudently paced growth in Mexico Relentless focus on managing costs 14 Copyright 2005, All Rights Reserved
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