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
5/10/06. 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.
3. North American Leader
Total U.S. Market Share
20%
19%
20.0%
14%
15.0%
13%
10.0%
7%
6%
6%
5.0% 5%
Superstores FY07 End 5% 5%
990 stores
0.0%
Superstores Future
1997 1999 2001 2003 2004 2005 2006
1,200+ stores
Calendar Year
Canadian Market Store Presence
Best Buy U.S. Market Share - Products
24%
23%
22%
20%
47
16% 15%
13%
11%
7%
121
5%
95
Total Home Computing/ Music Appliances
FY02 FY07
Theater Dig. Imag.
Canadian Market Share Over 30%
Based on
2001 Market Share 2006 Market Share Calendar Year
4. History of Growth
ROIC2
Diluted EPS1 21% +5 Pts
CAGR 22%
$2.79
20%
19%
$2.27
17% 16%
$1.75
$1.44
$1.11
$1.07
FY02 FY03 FY04 FY05 FY06
FY02 FY03 FY04 FY05 FY06 FY07
2Fiscalyears 2002 thru 2005 have not been adjusted
Pro-forma adjusted for FAS 123 expense
1
for FAS 123 expense
FY07 Results
Revenue Growth
15%
($ in billions)
$35.9 CAGR
Total revenue growth 16%
$30.8
$27.4
$24.5
Comp revenue growth 5.0%
$20.9
$17.7
Operating income % +23 bps
Diluted EPS growth 23%
FY02 FY03 FY04 FY05 FY06 FY07
U.S. Market Share 20%
5. Fiscal 2008 Guidance1
• Revenue Up 9% to $39B
• Gross profit % Down 30 - 40 bps
• SG&A % Improve 60 - 70 bps
• Operating inc. % Improve 30 bps
• Diluted EPS $3.10 - $3.25
Average of 14% EPS Growth
1 As communicated on April 4, 2007
6. Customer Centricity:
Our Growth Lens
N
ew
Invite
C
Employee Ideas
s
us
s
to
ne
m
er
si
s
Bu
&
Fo
re
rm
Co
at
s
Customer
Provide End-to- Honor Unique
Experience
End Solutions Customers
New Markets
7. Growth: Core Business
• Full Solutions
• New Formats
• Private Label
• Services
• Customer Access:
– In stores, online, over the phone, in home
8. Growth: Core Business
Vista Home Theater
• 24-Hour support • 3,000 HT Installers
• Geek Squad City • HD Done Right
• 60,000 trained Vista – Installations up
experts (Blue-shirts and
– Returns down
Geeks)
• Customer Satisfaction
• In-store tutorials
Up
• In-home set-up and new
PC data transfer
9. Fiscal 2008: Domestic New
Store Opening Plans
# of New Sq. Ft. %
Stores % Change Change
~ 90 +11% +9%
Up to Up to
36%
Up to 5 35%
Fiscal 2008 store expansion plans announced on February 21, 2007
13. Fiscal 2008: International
New Store Opening Plans
# of New Sq. Ft.
Country Stores % Change % Change
Canada 6–7 +5% +6%
Canada 6–7 +14% +12%
China 20 – 23 +16% +16%
China 2–3 +>200% +145%
14. Chinese Retail Environment
• Different retail experience versus the U.S.
• Consumer behavior is rapidly changing
• China has 176 cities with >1M
people…North America has 9 cities
• Multi-pronged approach to the market
– Five Star, a traditional electronics player
– Best Buy, with a U.S.-like business model
– Potential opportunities in services, dot com
15. Five Star
• Third-largest appliance
and consumer
electronics retailer
• BBY acquired a 75%
interest in June 2006
• 2006 CY revenue of
~$0.9 billion (USD)1
• Strong existing
management team
remains intact
1
Represents revenue for the entire calendar year including
the portion of the year not under Best Buy ownership
16. Best Buy China
• 86,000-square-foot
store in Times Square
of Shanghai
• Opened on
December 28, 2006
• Consumer research is
leading the way
• Goal is an improved
retail experience for
the Chinese consumer
17. International Priorities
• Leverage our strengths
• Focus on large, growing and
“optimistic” economies
– Announced tests in
Mexico and Turkey
• Approach:
– Dream big
– Start small
– Learn fast
– Scale profitably
18. BBY: Customer Satisfaction
76
#1 Driver of Improvement:
Quality of Interaction with
Employees
72 72
71
2003 2004 2005 2006
Source: American Customer Satisfaction Index Fourth Quarter Scores – 2/20/07 (www.theacsi.org)