CIBC World Markets 7th Annual Consumer Growth Conference
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CIBC World Markets 7th Annual Consumer Growth Conference

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CIBC World Markets 7th Annual Consumer Growth Conference CIBC World Markets 7th Annual Consumer Growth Conference Presentation Transcript

  • CIBC Consumer Growth Conference July 10, 2007
  • Tim McGeehan Executive Vice President – Retail Sales 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
  • History of Growth ROIC2 Diluted EPS1 21% +4 pts CAGR 22% $2.79 21% 20% 19% $2.27 17% 16% $1.75 $1.44 $1.11 $1.07 FY02 FY03 FY04 FY05 FY06 FY07 FY02 FY03 FY04 FY05 FY06 FY07 2Fiscal years 2002 thru 2005 have not been adjusted for FAS 123 1 Pro-forma adjusted for FAS 123 expense expense Revenue Growth FY07 Results 15% ($ in billions) CAGR Total revenue growth 16% $35.9 Comp revenue growth 5.0% $30.8 $27.4 $24.5 Operating income % +23 bps $20.9 $17.7 Diluted EPS growth 23% Market share 21% 4 FY02 FY03 FY04 FY05 FY06 FY07
  • The Dallas Story, 2004 Summary • Objective: Increase convenience and pursue market share with new stores, while lifting the performance of all stores. • Actions Taken: Listened to employees about growth nodes in the market; identified 6 new locations (55% growth). 5
  • The Dallas Story, 2007 • Summary of Results: • Total market revenue surpassed goal •Market share increased • Annual EVA increased for the existing stores and for the entire metro area • Comp USA will reduce its local store count to 2 stores (from 10) • Results varied by market but were consistently above plan, including the impact of cannibalization 6
  • Winning with Customers, Employees 76 Total U.S. Market Share Customer Satisfaction 20% 19% 20.0% #1 Driver of Improvement: Quality of Interaction with Employees 14% 15.0% 13% 72 72 71 10.0% 7% 6% 6% 5.0% 5% 5% 5% 0.0% 2003 2004 2005 2006 1997 1999 2001 2003 2004 2005 2006 Source: American Customer Satisfaction Index Fourth Quarter Scores – 2/20/07 (www.theacsi.org) Calendar Year Reward Zone = 20 million members Retail Turnover 81% 69% 67% $ Billion FY05 FY06 FY07 7
  • Optimizing Labor • 1998: SOPs, variable labor, unspecialized • 2003: customer centricity, specialized labor, high fixed costs • 2008: finding the right balance 8
  • Investing for the Future Core Business Acquisitions and Direct Shareholder Alliances Returns • New stores New: • $5.5 billion stock repurchase • Services • Capabilities authorization • Supply chain • Customers – $3.0 billion • Best Buy Mobile • Markets accelerated • Best Buy For • Vendor share Business relationships repurchase • Geographies • 30% dividend increase 9
  • Sean Skelley Senior Vice President – Services 10
  • Technology: Not Just a Lifestyle… It’s the infrastructure of life Home Theater Systems DVR Gaming System Desktop Notebook Digital Camera iPhone Networking Satellite Radio Phone 11
  • Increasing Complexity Then Now 12
  • U.S. Services: $50B Market Geek Home Service Squad Theater Auto Appliance Centers Deliver Repair Install Configure Shared Service Capabilities 13
  • The Services Story Partnerships Small Business Managed Green Migration Services & Disposal International Assurance Home Web 2.0 Integration R&D / New Product Trials Global Workforce Customer Focused Agents BUILD Decision Support Data Analytics SERVICES Claims Processing Call Center OPERATION Remote Services C SI ch Scor pat Br es / Dis an te m ting rm d ou ys G e/R MR fo S MyAgent ee edul t tah en at Sc h k Pl I em Sq yU ag g ua n in Ma nn ill d ld B C Fie Jo ity nd t ta en ac Ag tr on C Services Foundation 14
  • Any other partners? 15
  • Home Theater: Building Scale • 3,000 installers today • Leveraging capabilities from our service platform • Investing in new tools to improve productivity 16
  • Your Questions 17