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Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
Annual Shareholders Meeting Presentation
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Annual Shareholders Meeting Presentation

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Transcript

  • 1. Regular Meeting of Shareholders June 25, 2008
  • 2. RICHARD M. SCHULZE Founder and Chairman Director since 1966 2
  • 3. Agenda • Election of Directors • Ratification of Appointment of Deloitte & Touche LLP • Approve 2008 Employee Stock Purchase Plan • Approve Amendment to Restated Articles of Incorporation • Management Report • Q&A Session 3
  • 4. Class 1 Directors for Election Bradbury H. Anderson Allen U. Lenzmeier Kathy J. Higgins Victor Vice Chairman and CEO Vice Chairman Director since 1999 Director since 1986 Director since 2001 4
  • 5. Class 1 Directors for Election Rogelio M. Robolledo Frank D. Trestman Director since 2006 Director since 1984 5
  • 6. Ratification of Class 2 Director G. Mike Mikan Director since 2008 6
  • 7. Director Voting Results 100% 75% 50% 25% 0% Anderson Higgins Lenzm eier Rebolledo Trestm an Mikan Victor For Withheld 7
  • 8. Auditor Voting Results 99.1% 0.8% 0.1% For Against Abstain 8
  • 9. ESPP Voting Results 96% 3% 1% For Against Abstain 9
  • 10. Amendment to Articles Voting Results 78% 21% 1% For Against Abstain 10
  • 11. Management Report 11
  • 12. Brad Anderson Vice Chairman and Chief Executive Officer 12
  • 13. Safe Harbor Best Buy’s Forward-Looking and Cautionary Statements: This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect Best Buy management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: failure to receive necessary approvals for the transaction; failure to achieve anticipated benefits of the transaction; and integration challenges relating to the new venture. Other factors include the following: general economic conditions, acquisitions and development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of competitors, profit margins, weather, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate locations, Best Buy’s ability to react to a disaster recovery situation, and the impact of labor markets and new product introductions on overall profitability. A further list and description of risks, uncertainties and other matters can be found in Best Buy’s annual report and other reports filed from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, Best Buy’s Annual Report on Form 10-K filed with the SEC on April 30, 2008. Best Buy cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statement that it may make. 13
  • 14. Customer Centricity 14
  • 15. Jim Muehlbauer Executive Vice President – Finance and Chief Financial Officer 15
  • 16. History of Strong Growth Revenue Growth Diluted EPS1 ~15% CAGR 23% CAGR +11% +17% +12% +12% +23% +12% +30% $40.0 +17% $35.9 +22% +18% $3.12 +30% $30.8 $2.79 $27.4 +4% $24.5 $2.27 $20.9 $1.75 $1.44 $1.11 FY03 FY04 FY05 FY06 FY07 FY08 FY03 FY04 FY05 FY06 FY07 FY08 Pro-forma adjusted for FAS 123 expense 1 ($ in billions) 16
  • 17. History of High Returns ROIC1 FY08 Results • Milestone of $40B in revenue +4Pts • Comparable store sales gain of 2.9% 22% 21% 20% 20% 19% • 12% EPS growth 16% • Strong strategic indicators • U.S. market share: 21% FY03 FY04 FY05 FY06 FY07 FY08 Fiscal years 2003 thru 2005 have not been adjusted for FAS 123 expense • Canada market share: >35% • Employee turnover: ~60% 17
  • 18. Fiscal 2009 First Quarter: FY09 Guidance: • Revenue of $9.0 billion • Revenue of $43 billion to • Comparable store sales $44 billion gain of 3.7% • Comparable store sales • EPS of $0.43, increased gain of 1% to 3% 10% vs. prior year’s quarter • 30-40 bps of operating • 599 Best Buy Mobile stores income de-leverage driven converted; balance of U.S. by growth investments chain completed by 12/08 • EPS of $3.25 to $3.40, an • Increased market share 1.5 increase of 7%, before points (est.), fueled by impact of European new notebooks, mobile phones, flat-panel TVs, video venture & postponed share gaming, appliances repurchase activity 18
  • 19. Investing For Returns and Future Growth Two-Year History Direct Core Growth Shareholder Business Opportunities Returns • New stores • Acquisitions/Ventures • $4.1B of share repurchases • Pacific Sales • 217 new North American stores • Dividend increases • Five Star • FY07 25% increase • BestBuy.com • Speakeasy • FY08 30% increase • Best Buy Mobile • Home Theater Experience • FY09 8% increase • CPW/BBY Venture • Apple Store in Store • New Countries 19
  • 20. 20
  • 21. Bob Willett Chief Executive Officer – Best Buy International and Chief Information Officer 21
  • 22. Our International Portfolio Growth Approach China Europe Canada Mexico Turkey 22
  • 23. CPW’s Retail Presence CPW is Europe’s largest independent mobile phone retailer and is the leading independent retailer in most of the markets in which it operates Sweden Belgium UK 96 Stores / 10% Market Share 84 Stores / 15% Market Share 824 Stores / 20% Market Share Netherlands 190 Stores / 10% Market Share Ireland 69 Stores / 20% Market Share Portugal 171 Stores / 18% Market Share Germany 210 Stores / Spain 5% Market Share 432 Stores / 10% Market Share France 335 Stores / 10% Market Share March 2008 Estimated Store Count and Market Share 23 23
  • 24. Best Buy’s Strategy – Own the Home The Living Room The Bedroom The Car The Home Office The Kitchen Service 24
  • 25. CPW’s Strategy – Connections Wireless & MVNO Billing & Insurance Broadband and Fixed Line 25
  • 26. Together we create a “Connected World” Service Wireless & MVNO The Living Room The Bedroom ic a Dat T Mus V ce Voi Game s Movies Billing & Wireless The Car Network Insurance The Home Office The Kitchen Broadband and Fixed Line 26
  • 27. 27
  • 28. Brian Dunn President and Chief Operating Officer 28
  • 29. Our Brands and Partners 29
  • 30. Our Brands and Partners 30
  • 31. Past, Present and Future Growth Goal: Double in Five Years $80 Billion $40 Billion $20 Billion FY03 FY08 FY13 31
  • 32. Your Questions 32

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