2008 Annual Stockholders’ Meeting
Forward-Looking Statements
        Certain statements contained in this presentation are forward-looking statements. Forwa...
Overview

                  America’s #1 auto parts/accessories retailer and
                  a leading distributor
     ...
Overview

                  Sell automotive maintenance
                  and repair parts, accessories
                  ...
Strategic Priorities!

                       U.S. Retail (DIY)
                       Commercial (DIFM)          2008 Sal...
The AutoZone Pledge

   AutoZoners always put customers first!

           We know our parts and products.

              ...
AZO: Record Sales
            (FY ending August) (000’s)

                  $7,000

                                      ...
AZO: Record EPS
                      (FY ending August) ($)              TOTAL EPS GROWTH*


                 $12.00
    ...
Strong financial results

                                                 Operating Cash Flow (000s)
                    ...
Strong financial results

                                                Return On Invested Capital
                     ...
Industry Perspective
                                      “Do-It-Yourself” Auto Aftermarket
          Do-It-Yourself” Aut...
DIY Industry Growth
                                                     10 year CAGR 4.1%
                               ...
Opportunity: Positive Long-Term Trends

                                        Increasing Vehicle Count,                 ...
DIY Growth Initiatives

                  New Stores
                  “The Right Product In The Right Place”
            ...
Current National U.S. Footprint
                                                  (New Store Additions)
                  ...
“The Right Product”

                  Every category update
                  completed for 2nd year in a row
           ...
High Quality Parts and Products

                    Critical Areas
                      Product Innovation
             ...
“Great People / Great Service”

                  We’re optimistic about 2009
                  (Commercial and Retail)

 ...
Industry Perspective
                                      “Do-It-For-Me” Commercial Auto Aftermarket

          “Do-It-Fo...
DIFM Industry Growth
                                                     10 year CAGR 4.2%
                              ...
Q1 Commercial Highlights
                                                      # of
                                      ...
Commercial Growth Initiatives

                  Enhancing our products and services to achieve first call
               ...
Commercial Promotions




                                                              9
Copyright 2006, All Rights Reser...
Grow AutoZone de Mexico

                  Abundance of old cars
          •

                  Shortage of quality parts,...
Grow ALLDATA

              70,000+ current repair shop
          •

          subscribers
              Leading provider ...
Strong Financial Disciplines
                                      Continued EPS growth
                  Grow Retail Sale...
autozone   45E1C146-74DD-4D77-B8DB-AFBFCDEC97CA_ShareholdersMeeting_121708
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autozone 45E1C146-74DD-4D77-B8DB-AFBFCDEC97CA_ShareholdersMeeting_121708

  1. 1. 2008 Annual Stockholders’ Meeting
  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 2006, All Rights Reserved
  3. 3. Overview America’s #1 auto parts/accessories retailer and a leading distributor Annual sales $6.5 billion* 4,122 stores in 48 states and Puerto Rico** 150 stores in Mexico** Founded in 1979 Listed on NYSE: AZO since 1991 Included in S&P 500 since 1996 • Q1 FY 2009 Trailing 4 Quarters ** As of November 22, 2008 3 Copyright 2006, All Rights Reserved
  4. 4. Overview Sell automotive maintenance and repair parts, accessories Specialize in two customer segments: Retail “Do-It-Yourself” (DIY) Commercial delivery to professional technicians All stores are company-owned and operated – no franchises 4 Copyright 2006, All Rights Reserved
  5. 5. Strategic Priorities! U.S. Retail (DIY) Commercial (DIFM) 2008 Sales by Strategic Priority Mexico 5% ALLDATA 12% U.S. Retail U.S. Commercial Other 83% 5 Copyright 2006, All Rights Reserved
  6. 6. 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. 6 Copyright 2006, All Rights Reserved
  7. 7. AZO: Record Sales (FY ending August) (000’s) $7,000 10-yr CAGR = 7% $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 7 Copyright 2006, All Rights Reserved
  8. 8. AZO: Record EPS (FY ending August) ($) TOTAL EPS GROWTH* $12.00 10-yr CAGR = 21% $10.00 5-yr CAGR 14% $8.00 $6.00 $4.00 $2.00 $0.00 '97 '98 '99 '00 01* '02 '03 '04 '05 '06 '07 '08 *Comparable EPS 8 Copyright 2006, All Rights Reserved
  9. 9. Strong financial results Operating Cash Flow (000s) $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 9 Copyright 2006, All Rights Reserved
  10. 10. Strong financial results Return On Invested Capital 30% 24.0% in 2008 25% 20% 15% 10% 5% 0% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 10 Copyright 2006, All Rights Reserved
  11. 11. Industry Perspective “Do-It-Yourself” Auto Aftermarket Do-It-Yourself” Auto Aftermarket U.S. Industry size: $39 Billion* Industry growth: 4.1% ten year CAGR* AutoZone: AutoZone DIY sales: $5.4 Billion** AutoZone DIY position: #1 AutoZone DIY market share: 13% *Source: AAIA 2007/2008 Factbook **FY 2008 U.S. Retail Sales 11 Copyright 2006, All Rights Reserved
  12. 12. DIY Industry Growth 10 year CAGR 4.1% 38 5 year CAGR 3.96% 36 34 $ Billions 32 30 28 26 24 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 * Source: Total per AAIA 2007/2008 Factbook 12 Copyright 2006, All Rights Reserved
  13. 13. Opportunity: Positive Long-Term Trends Increasing Vehicle Count, Miles Driven Increasing OKVs Increasing 250 3.5 225 200 3.0 Vehicles (in MM's) 175 Miles driven (Trillions) 150 2.5 125 100 2.0 75 50 1.5 25 0 1.0 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 OKV's <7 years The USDT has reported a 3.5% decline thru October 2008. In fact, every month in 2008 has been Source: Ward’s Automotive Yearbook through 1999, negative R.L. Polk Company data 2000 through 2006 Source: USDOT Federal Highway Administration website 13 Copyright 2006, All Rights Reserved
  14. 14. DIY Growth Initiatives New Stores “The Right Product In The Right Place” “Great People Providing Great Service” Effective & Efficient Marketing 14 Copyright 2006, All Rights Reserved
  15. 15. Current National U.S. Footprint (New Store Additions) AutoZone is the only Auto Parts Retailer with stores across the U.S. Continued opportunity for further expansion 48 1 6 1 1 16 27 66 23 114 2 18 50 5 15 140 22 107 14 32 211 34 58 48 131 58 197 23 82 38 95 10 75 438 157 38 150 116 66 59 6 73 57 84 90 171 105 512 185 PR 17 PR Note: Added 185 stores in FY 2008. Total 4,240 Stores as of 8.30.2008 1 Copyright 2006, All Rights Reserved
  16. 16. “The Right Product” Every category update completed for 2nd year in a row Every Category: a category sponsor and a category captain + $300 million in parts and products in 2 years MAP Process: Leverages millions of look ups for the right placement Enhanced HUB best practices 2 Copyright 2006, All Rights Reserved
  17. 17. High Quality Parts and Products Critical Areas Product Innovation Coverage – especially late model applications 3 Copyright 2006, All Rights Reserved
  18. 18. “Great People / Great Service” We’re optimistic about 2009 (Commercial and Retail) Focusing on Great People Providing Great Service a. Continual improvement in Customer Satisfaction Scores b. Enhanced training c. Selling the complete job d. New Transaction process e. ASE certification f. “Hire the best” initiative g. Continual systems enhancements h. Appropriate marketing messages around value proposition 4 Copyright 2006, All Rights Reserved
  19. 19. Industry Perspective “Do-It-For-Me” Commercial Auto Aftermarket “Do-It-For-Me” Auto Aftermarket U.S. Industry size: $52 billion Industry growth: +4.2% ten year CAGR* A highly fragmented market AutoZone: AutoZone DIFM sales: $754 million** DIFM market share: 1.3% *Source: AAIA 2007/2008 Factbook ** FY 2008 U.S. Commercial Sales 5 Copyright 2006, All Rights Reserved
  20. 20. DIFM Industry Growth 10 year CAGR 4.2% 54 5 year CAGR 3.64% 52 50 48 $ Billions 46 44 42 40 38 36 34 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 •Source: Total per AAIA 2007/2008 Factbook Prices quoted at Wholesale prices 6 Copyright 2006, All Rights Reserved
  21. 21. Q1 Commercial Highlights # of Commercial Programs Domestic AutoZone Stores: New 2,240 2% % increase in programs vs. LY 1st Quarter Domestic Commercial Sales: $170.6 ($ millions) 1.8% % increase in sales 7 Copyright 2006, All Rights Reserved
  22. 22. Commercial Growth Initiatives Enhancing our products and services to achieve first call status for targeted customers Developing a premier selling organization Improved parts assortment and availability Expanding the number of Commercial programs supported by enhancements to the service model Supporting with a great marketing program 8 Copyright 2006, All Rights Reserved
  23. 23. Commercial Promotions 9 Copyright 2006, All Rights Reserved
  24. 24. Grow AutoZone de Mexico Abundance of old cars • Shortage of quality parts, few organized chains • 150 AutoZone stores mainly along US border* • U.S. model successfully translates to Mexico • Challenges – supply chain, economy • Opportunity for continued, profitable, prudently paced expansion • •As of November 22, 2008 10 Copyright 2006, All Rights Reserved
  25. 25. Grow ALLDATA 70,000+ current repair shop • subscribers Leading provider of manufacturers’ • service and repair information, shop management software and customer relations tools for the auto repair and collision industries Introduced ALLDATA Collision in • 2007 and subscriber base now includes ~2,000 accounts 11 Copyright 2006, All Rights Reserved
  26. 26. 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 12 Copyright 2006, All Rights Reserved

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