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. Director Voting Results
100%
80%
60%
40%
20%
0%
Anderson Lenzmeier
Higgins
Trestman
Victor
For Withheld
6
8. Best Buy Co., Inc.
Management Presentation
June 21, 2006
Richfield, MN
8
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. BRAD ANDERSON
Vice Chairman and
Chief Executive Officer
10
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. BRIAN DUNN
President and
Chief Operating
Officer
16
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. DARREN JACKSON
Executive Vice
President – Finance
and Chief Financial
Officer
18
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. 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. 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. 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
