Best Buy Co., Inc.



    Regular Meeting of Shareholders
                      June 21, 2006




               Richfield...
RICHARD M.
    SCHULZE
    Founder and Chairman
    Director since 1966



2
Agenda


• Election of Class 1
  Directors
• Ratification of
  Appointment of
  Deloitte & Touche LLP
• Management
  Prese...
James C. Wetherbe
    Director since 1993




4
Directors for Election




                                                                    FRANK D. TRESTMAN
         ...
Director Voting Results



    100%
    80%
    60%
    40%
    20%
     0%
           Anderson            Lenzmeier
     ...
Auditor Voting Results



      99%




              0.50%     0.50%

     For     Against   Abstain

7
Best Buy Co., Inc.



    Management Presentation
             June 21, 2006




               Richfield, MN


8
Safe Harbor
     Cautionary Statement Pursuant to the Private
       Securities Litigation Reform Act of 1995
    This pre...
BRAD ANDERSON
     Vice Chairman and
     Chief Executive Officer



10
Our Journey

                      Fiscal 2006   Fiscal 2007
Before
Customer Centricity




 11
Richfield, MN
         Store #281



      Angela Bruhn
           and
     Sarah Zambrano



12
SHARI BALLARD
     Executive Vice
     President – Human
     Resources and Legal


13
Customer Centricity




                     Invite
                    Employee
                      Ideas



          ...
Engaged, Energized
              Employees


     Employee Turnover                      Engagement Scores
               ...
BRIAN DUNN
     President and
     Chief Operating
     Officer


16
Our Priorities
                          1. Integrated Customer-
                             Centric Operating Model
    ...
DARREN JACKSON
     Executive Vice
     President – Finance
     and Chief Financial
     Officer


18
History of Growth
                           EPS1
                                         wth
                           ...
Superior Returns
                                                                                       Return on
        ...
Fiscal 2007 Update
          First Quarter                           Annual Guidance
             $7.0
                   ...
Our Growth Strategy
                                                                                               $350
  ...
Your
     Question
      Cards

23
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Best Buy Co., Inc. Shareholders Meeting Presentation

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Best Buy Co., Inc. Shareholders Meeting Presentation

  1. 1. Best Buy Co., Inc. Regular Meeting of Shareholders June 21, 2006 Richfield, Minnesota 1
  2. 2. RICHARD M. SCHULZE Founder and Chairman Director since 1966 2
  3. 3. Agenda • Election of Class 1 Directors • Ratification of Appointment of Deloitte & Touche LLP • Management Presentation • Q&A Session 3
  4. 4. James C. Wetherbe Director since 1993 4
  5. 5. Directors for Election FRANK D. TRESTMAN KATHY J. HIGGINS VICTOR Director since 1984 Director since 1999 ALLEN U. LENZMEIER BRAD ANDERSON Vice Chairman Vice Chairman and Director since 2001 Chief Executive Officer Director since 1986 5
  6. 6. Director Voting Results 100% 80% 60% 40% 20% 0% Anderson Lenzmeier Higgins Trestman Victor For Withheld 6
  7. 7. Auditor Voting Results 99% 0.50% 0.50% For Against Abstain 7
  8. 8. Best Buy Co., Inc. Management Presentation June 21, 2006 Richfield, MN 8
  9. 9. 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 Current 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. 9
  10. 10. BRAD ANDERSON Vice Chairman and Chief Executive Officer 10
  11. 11. Our Journey Fiscal 2006 Fiscal 2007 Before Customer Centricity 11
  12. 12. Richfield, MN Store #281 Angela Bruhn and Sarah Zambrano 12
  13. 13. SHARI BALLARD Executive Vice President – Human Resources and Legal 13
  14. 14. Customer Centricity Invite Employee Ideas Honor Provide Unique End-to-End Customers Solutions 14
  15. 15. Engaged, Energized Employees Employee Turnover Engagement Scores 4.1 4.1 81% 69% FY05 FY06 FY05 FY06 Source: Gallup survey, using a 5-point scale Average annualized employee turnover 15
  16. 16. BRIAN DUNN President and Chief Operating Officer 16
  17. 17. Our Priorities 1. Integrated Customer- Centric Operating Model 2. New Store Growth & Magnolia Home Theater Invite Employee 3. Services Ideas 4. Best Buy For Business Honor 5. International Provide Unique End-to-End Customers Solutions 6. Capabilities for End-To- End Solutions 17
  18. 18. DARREN JACKSON Executive Vice President – Finance and Chief Financial Officer 18
  19. 19. History of Growth EPS1 wth d g ro n de • 30-percent earnings $2.27 pou Com 25% $1.75 growth in fiscal 2006 $1.44 $1.11 $1.07 • Revenue exceeded $30B, net earnings FY02 FY03 FY04 FY05 FY06 FY02 FY03 FY04 FY05 FY06 exceeded $1B 1Prior year results are shown on a comparable basis. A reconciliation to GAAP results is available on the company’s website. • N. America market Revenue Growth share hit 22% ($ in billions) h growt d ounde Comp • Expanding into new $30.8 % 15 $27.4 $24.5 $20.9 markets – services, $17.7 small businesses, international FY02 FY03 FY04 FY05 FY06 19
  20. 20. Superior Returns Return on Equity Returns Invested Capital 58% 42% 21.7% 20.0% 18.7% 25% 22% 17% 8% 2% -1% FY04 FY05 FY06 5-Year 3-Year 1-Year CYTD S&P BBY • Please see the company’s fiscal 2006 annual report • Compounded Annual Growth Rates, including the reinvestment of dividends, through February 25, 2006 for a reconciliation of Return on Invested Capital • CYTD represents calendar-year 2006 stock returns through 6/20/06 20
  21. 21. Fiscal 2007 Update First Quarter Annual Guidance $7.0 • Revenue of $34 to $35 $6.1 Billion $0.47 FY06 • Comparable Store sales $0.34 FY07 Gain of 3% to 5% • Earnings per diluted Share of $2.65 to $2.80, Revenue ($ in Diluted EPS billions) An Increase of • Net Earnings Growth of 38% Approximately 20% • SG&A Rate Improvement of 110 Basis Points • Up to 90 New stores in • Revenue of $7B, comparable North America Store Sales up 4.9% 21
  22. 22. Our Growth Strategy $350 $100 New Market Growth $80 China $50 $120 Small Businesses Top-Line Services Growth Invite North Potential Employee American Market Ideas CE Market 7.0% Operating Income Bottom-Line Profitability New Honor Provide Stores, Unique IT Customer End-to-End Customers Centricity, Supply 5.3% Solutions Services Chain Best Buy Canada Goal Fiscal 2006 Capabilities 22
  23. 23. Your Question Cards 23

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