2. Fiscal 2008
Color Commentary:
Annual Guidance:
• Q108 sales were on plan
• Revenue of $39 billion
led by the international
• Comparable store sales
business
gain of 3% to 5%
• Focusing on customers
• EPS of $2.95 to $3.15
– Growing market share
• Anticipated modest
– Improving customer
benefit to fiscal 2008 satisfaction scores
earnings per diluted
• Earnings growth in the back
share as a result of the
half of the year
$3.0B accelerated share
repurchase program
3. Building the Customer Franchise
Key Initiatives:
Reward Zone
22 million
• Store operating model
• Customer satisfaction
7 million
follow-up and call
backs
2006 Today
• Winning with Women
Customer Satisfaction
76
• Financial Services
#1 Driver of Improvement:
Quality of Interaction w ith
• Best Buy Mobile
Employees
• International: Canada,
72 72
71
China
2003 2004 2005 2006
Source: American Customer Satisfaction Index
Fourth Quarter Scores – 2/20/07 (www.theacsi.org)
4. Expanding the Growth Options
15%
Revenue Growth
Key Initiatives: CAGR
($ in billions)
$35.9
• Build and launch $30.8
$27.4
$24.5
enterprise e-commerce $20.9
$17.7
infrastructure
• 40% increase in U.S.
FY02 FY03 FY04 FY05 FY06 FY07
Best Buy store footprint
• 200 Pacific Sales stores Opportunities:
– Women
– Loyalty Programs
• Best Buy For Business $380B
– Financial Services
$100B
• Expanding Apple $110B
$50B
locations $120B
• Services
Market
North China
U.S. Small
• International expansion Potential
American
Services Businesses
CE Market
Market sizes are internal estimates.
5. Increasing the Returns
21%
Diluted EPS1
Improving our performance:
CAGR
$2.79
$2.27
• Accenture partnership
$1.75
$1.44
• Supply chain
$1.11
$1.07
• Financial services
• Canada
FY02 FY03 FY04 FY05 FY06 FY07
• Organic growth (services)
1 Pro-forma adjusted for FAS 123 expense
+4 pts
ROIC2
While Investing for the future:
22% 21%
20%
19%
17%
• Core business
16%
• Growth opportunities
• Direct shareholder returns
FY02 FY03 FY04 FY05 FY06 FY07
2Fiscal
years 2002 thru 2005 have not been adjusted for FAS 123
expense
6. The Next Frontier
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