3. Safe Harbor
Best Buy’s Forward-Looking and Cautionary Statements:
This presentation contains forward-looking statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 as contained in Section 27A of the U.S. Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934 that reflect Best Buy management’s current views and
estimates regarding future market conditions, company performance and financial results, business
prospects, new strategies, the competitive environment and other events. You can identify these
statements by the fact that they use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“project,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a
number of risks and uncertainties that could cause actual results to differ materially from the potential
results discussed in the forward-looking statements. Among the factors that could cause actual results and
outcomes to differ materially from those contained in such forward-looking statements are the following:
failure to receive necessary approvals for the transaction; failure to achieve anticipated benefits of the
transaction; and integration challenges relating to the new venture. Other factors include the following:
general economic conditions, acquisitions and development of new businesses, divestitures, product
availability, sales volumes, pricing actions and promotional activities of competitors, profit margins,
weather, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate
locations, Best Buy’s ability to react to a disaster recovery situation, and the impact of labor markets and
new product introductions on overall profitability. A further list and description of risks, uncertainties and
other matters can be found in Best Buy’s annual report and other reports filed from time to time with the
U.S. Securities and Exchange Commission, including, but not limited to, Best Buy’s Annual Report on
Form 10-K filed with the SEC on April 30, 2008. Best Buy cautions that the foregoing list of important
factors is not complete and assumes no obligation to update any forward-looking statement that it may
make.
3
4. Best Buy - A History of Growth
Annual Revenue (U.S. $ in Billions)
15% $40.0
AGR $35.9
C
$30.8
$27.4
$24.5
$20.9
$17.7
FY02 FY03 FY04 FY05 FY06 FY07 FY08
4
5. Steady Earnings Expansion
Diluted EPS
20% $3.12
AGR $2.79
C
$2.27
$1.75
$1.44
$1.11
$1.07
FY02 FY03 FY04 FY05 FY06 FY07 FY08
FY02 through FY05 have been adjusted for FAS 123 expense. All years are adjusted for stock splits.
5
6. Fiscal 2009
First Quarter: FY09 Guidance:
• EPS of $0.43 vs. $0.39 in last • EPS of $3.25 to $3.40, an
year’s quarter increase of 7%, before impact
of European Venture & Lower
• Comparable store sales gain
Share Repurchase
of 3.7%
• Revenue of $43 billion to $44
• 599 Best Buy Mobile stores
billion
converted, balance of US
chain completed by Dec. • Comparable store sales gain
of 1% to 3%
• Estimated market share rose
1.5 points, fueled by • 30-40 bps of operating
notebooks, mobile phones, income de-leverage driven by
flat-panel TVs, video gaming, growth investments
appliances
6
7. Growth Runways
Market Size New New Business
Share Gain
Growth Categories Models
We plan to Grow
BBY plans to Our Best and
The Industry is
Within/Outside
Grow with Our Under-Served
expected to Grow
the Brand…
Current Customers Want
Businesses More…
7
14. FY09 Q1 Update - International
• Total international revenue increased 26%
– Canada comparable store sales gain of 4.3%
– China comparable store sales gain of 6.3%
• Gross margin rate increased 40 bps
• SG&A rate increased as continued improvements
in Canada were more than offset by growth
investments in new countries
• Operating profit breakeven vs. a loss of $4 million
in the prior year quarter
– Funding international growth investments with
strong profit growth in Canada
14
15. Impact of New Venture With CPW
• Provides access to estimated $175 billion European
CE market
– Faster
– Lower risk
• Outstanding cultural fit
– Customer focus
– Shared vision of growth in mobility
• Combination of mobile phone,
computing expertise
• CPW deal expected to close on or about June 30,
2008
15
16. Objectives of New Venture
• Continue to grow CPW’s existing retail
business through physical expansion in
its existing European markets, and
accelerating its current evolution towards
mobile and fixed line connectivity
• Build a significant market share in
consumer electronics retailing in Europe,
through the roll-out of Best Buy stores,
services and Web sites in selected
markets, beginning in calendar 2009
• Bring to Best Buy’s core North American
operations CPW’s expertise in sourcing
mobility products, bundling services and
operating smaller stores
16
19. New Country Start‐up Investments
Canadian Key Metrics
Operating Income % of Sales
1.2%
2.5% .5% 2.0% 3.6% 5.0%
$6.0 $300
$250
$5.0
$200
$4.0
Operating Profit
OPERATING
Sales
PROFIT
$3.0 $150
EXPENSES
$2.0 $100
$1.0 $50
$0.0 $0
FY02 FY03 FY04 FY05 FY06 FY07
Time:
19
20. Strategies - International
Nation FY09 Priorities
A balance of optimization,
growth initiatives
Measured growth as we
learn about Chinese
consumers and our brands
Launch their greenfield
entry strategy
Plan launch of greenfield
entry strategy in early fiscal
2010
20
21. Strategies - International
CPW / BBY Mobile –
Leverage our existing
agreement and new
venture
Global Sourcing and
Private Label
Expansion
Invest in infrastructure
to support Global
expansion
21
22. Our Global Opportunity
CE Market
CPW Retail Business Venture < 3% Share
~$175 B
BBY ~ 21% Share
~$160 B
Dual Brand ~ 1% Share
~$80 B
Dual Brand ~ 35% Share
~$17 B
Source: Verdict, Mintel, Euromonitor, OC&C analysis, and internal data 22