Best Buy reported strong growth in fiscal year 2006 with 30% earnings growth, revenue exceeding $30 billion and net earnings over $1 billion. The company is guiding for continued growth in fiscal year 2007 with revenue of $35.5 billion, comparable store sales up 3-5% and diluted EPS growth of 20%. Best Buy is expanding into new markets internationally including China, and within the US through services and small businesses. The company aims to honor unique customers through its customer centric focus of inviting employee ideas and providing end-to-end solutions.

1. Best Buy Co., Inc.
Morgan Stanley
Global Consumer &
Retail Conference
Nov. 14, 2006

2. Kal Patel
Executive Vice President,
Strategy & International
Development

3. 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.

4. Strong History of Growth
EPS1
wth
d gro
un de $2.27
mpo
Co
• 30-percent earnings
25%
$1.75
$1.44
growth in fiscal 2006
$1.11
$1.07
• Revenue exceeded
$30B, net earnings
FY02 FY03 FY04 FY05 FY06
exceeded $1B
1Pro-forma adjusted for FAS 123 expense
• Expanding into new
Revenue Growth
markets: services,
($ in billions)
owth
r
n d ed g
mpou
o
15 % C small businesses,
$30.8
$27.4
$24.5
$20.9
international
$17.7
FY02 FY03 FY04 FY05 FY06

5. Fiscal 2007
First Half Annual Guidance
(reiterated on 10/5)
$14.6
$12.8
• Revenue of approx.
$0.94
FY06
$35.5 billion
$0.71
FY07
• Comparable store sales
gain of 3% to 5%
• Diluted EPS of $2.65 to
Revenue ($ in Diluted EPS
billions)
$2.80, up roughly 20%
• Net earnings growth of 30%
• Up to 90 new stores in
• SG&A rate improvement of
North America
100 basis points
• Operating income rate
• Revenue of $14.6B, same
store sales up 4.2% improvement of 40 bps

6. Our Journey
Fiscal 2006 Fiscal 2007
Before
Customer Centricity

7. Customer Centricity
Invite
Employee
Ideas
Honor
Provide
Unique
End-to-End
Customers
Solutions

8. Growth
Our approach:
• Dream big
• Start small
• Learn fast
• Scale profitably

9. New Markets
$300B
$100B
$80B
China
$50B
$120B Small
Businesses
Services
Market
North
Potential
American
CE Market
Market sizes are internal estimates.

10. Chinese Retail Environment
• Different retail experience versus the U.S.
• Chinese consumers are rapidly changing
• Multi-pronged approach to the Chinese
market
– Five Star, a traditional electronics player
– Best Buy, with a U.S.-like business model
– Potential opportunities in services, dot com

11. Five Star
• Fourth-largest appliance
and consumer electronics
retailer (at time of
acquisition) with 131 stores
• BBY acquired a 75%
interest in June 2006
• 2005 revenue of US $700
million
• Strong existing
management team
remains intact

12. Best Buy China
• 85,000-square-foot
store in Times Square
of Shanghai
• Grand opening by the
end of fiscal 2007
• Consumer research is
driving store design;
goal is an improved
retail experience for
the Chinese consumer

13. Customer Centricity
Invite
Employee
Ideas
Honor
Provide
Unique
End-to-End
Customers
Solutions

14. Tom Healy
Executive Vice
President
Best Buy For Business

15. Why Business Customers?
Customer Centricity Best Buy For Business
Philosophies
Honor unique customers • Deliver simple, reliable and
affordable technology solutions that
satisfy each business customer’s
unique needs
Invite employee ideas • Provide tools to connect and
leverage 10,000 employees and their
ideas
Provide end-to-end solutions • Offer multiple brands, products and
services – before, during and after the
sale

16. Our Target Customer
My Business
Is Personal
Make It Easy
Pay Me Back
Our customer: small business <100 employees=
$132 billion annual technology spend

17. Value Proposition
Business
Technology
Pros and
Business
Consultants
Reward
Geek Squad
Zone For
Service
My Business is Personal
Business
Make it Convenient
Pay Me Back
Expanded Community
Assortment Networks

18. Integrated Business Model
Our Customer
.com
Internet Sales
Many Profiles
Retail
Stores
Individual
Needs
Many Psyches
Direct Sales
Commercial Sales Technology
Consulting

19. Product Convergence
$83B Small Business Spend $49B Small Business Spend
Data Voice
VoIP

20. Near-Term Priorities
1) Deploying BBFB
to a broader geography
2) 173 U.S. stores
offer Best Buy for Business;
planning to have 200+ stores
by end of fiscal 2007
3) Training, development and collaboration
4) Adding nearly 600 trained business
professionals
5) Building outside sales and CRM capabilities
6) Refining our offerings to more effectively meet
customer needs

21. Keys to Long-Term Success
• Co-creation of technology solutions with
customer and vendor partners
• Widely available technology experts in
solutions for business, offering a local
relationship
• Differentiated training and development
capability for technology consultants and
Geek Squad agents
• Community collaboration capabilities
• Virtual application integration

22. Acceleration of Innovation &
Convergence
2010
2006
1990
??
Collaboration and Community are Key

23. Your
Questions