Morgan StanleyGlobal Consumer &Retail Conference
November 14, 2007
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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 5/02/07. 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.
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Dave MorrishSenior Vice President – PC Mobility Solutions
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Sean SkelleySenior Vice President – Services
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History of Growth
$35.9$30.8
$27.4$24.5$20.9
$17.7
FY02 FY03 FY04 FY05 FY06 FY07
($ in billions)
$1.07 $1.11$1.44
$1.75
$2.27$2.79
FY02 FY03 FY04 FY05 FY06 FY07
1 Pro-forma adjusted for FAS 123 expense
15% CAGR
21% CAGR
22% 21%
17% 16%19%
20%
FY02 FY03 FY04 FY05 FY06 FY07
ROIC2
FY07 Results
Total revenue growth 16%
Comp revenue growth 5.0%
Operating income % +23 bps
Diluted EPS growth 23%
Market share 20%
+4 pts
2Fiscal years 2002 thru 2005 have not been adjusted for FAS 123 expense
Diluted EPS1
Revenue Growth
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Appliances
Home OfficeEntertainment Software
Consumer Electronics
ServicesOther
Total
Revenue Mix Summary
Three Months Ended Sept. 1, 2007
Comparable Store Sales
Three Months Ended Sept. 1, 2007
38%
31%16%
8%
6%1%
100%
(1.6)%
9.8%9.3%
(7.1)%
5.3%n/a1
3.6%
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1Other includes fees received from cardholder account activ ations that are def erred and recognized ov er time, resulting in rev enue recognition that is not indicativ e of the v olume of activations in the current period. These rev enues are excluded from our comparable store sales calculation. Other also includes revenue from the sale of products unrelated to our core offerings. For this reason, we do not prov ide a comparable store sales metric f or this revenue category.
Revenue Mix and Growth
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BeforeCustomer Centricity
Fiscal 2006 Now
Our Journey
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Total U.S. Market Share
Winning with Customers
0%
5%
10%
15%
20%
25%
1997 '99 2001 '03 '04 '05 '06
Computer Return & Exchange Rate
Improving the Experience and Growing Share
+
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You can trust Best Buy and Geek Squad to make your computer and everything
you connect to it always work seamlessly so that you can
enjoy your passions.
Imagine if…
This is Why We Come to Work
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Trusted Perspective For Inspired Living
You can trust Best Buy and Geek Squad to make your computer and everything
you connect to it always work seamlessly so that you can
enjoy your passions.
Store & Online
Assortment & Experience
We > MeCustomerResolution
Support
Transparency
Reputation
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Addressing Customer Needs
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Unique Customer Solutions
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Trusted Perspective For Inspired Lives
You can trust Best Buy and Geek Squad to make your computer and everything
you connect to it always work seamlessly so that you can
enjoy your passions.
Store & Online
Assortment & Experience
We > MeCustomerResolution
Support
Transparency
Reputation
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EXPANDING ON GEEK SQUAD’S FOOTHOLD IN THE HOME
Car ElectronicsHome Theater Computer Support
Geek Squad is now the master services brand for Best Buy (except appliances).Making Geek Squad a resource for “whole home” tech support in advance of convergent technology.
Expands the ranks of our agents and installers to 17,000.
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GEEK SQUAD CITY165,000 square ft. centralized repair facility in Louisville, KY (partnered with UPS)Over 500 dedicated employees on-site to speed turn-times and improve repair quality/consistency.Go-to backup for service and repair work that can’t be performed inside a Best Buy store.Rallying point for our agents - a spiritual home for the Geek Squad brand.
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GOING BEYOND BREAK/FIX
Sky high (85%) consumer awareness of mature break/fix business.
Raising awareness of Geek Squad services in growing categories like wireless networking.
Showing consumers ways they can proactively engage Geek Squad. We can help with wants and needs.
Telling them how Geek Squad services are truly different from competitors (e.g. phone & cable co’s)
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R&D / New Product Tr ials
Remote ServicesCall CenterClaims Pro cessingData An alytics
Customer Focused AgentsGlobal W orkforce
Decision Support
Contract a
nd Billing Platfo
rm
Field Management System
Schedule / Routing / Dispatch
Agen
t Jon
ny U
tah
HomeIntegration
Assurance
ManagedServices
Small Business Partnerships
Green Migration& Disposal
International
Web 2.0
MRI
MyA
gent
Geek Squad City
Brand
CSI Scores
BUILDSERVICES
OPERATION
The Services Story
Services Foundation
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Adapting to Serve Customers
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Customer Research Tools
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Adding On-Line Capabilities
• Customer Ratings and Reviews• Independent Research• Launched website in Spanish• Earn and redeem Reward Zone
points on-line
1M+ Members~25M Members
Core Program RZ MasterCard
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Part of a Global Community
• Nominated for U.S. Chamber of Commerce Corporate Citizenship Award (11/07)
• Named one of top 100 U.S. Corporate Citizens in 2007 by CRO magazine
• Donated approximately $25 million to our communities in fiscal 2007
• Facilitated 30,000 tons of e-waste recycling in fiscal 2007 – more than any other retailer in the U.S.
Our Employees Providing Leadership for our Industry, our Customers and Our Communities
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Notebook
DVR
Home Theater Systems
Gaming System
Desktop
Digital Camera
Networking
PhoneSatellite Radio
iPhone
Technology: Not Just a Lifestyle…It’s the infrastructure of life
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Your Questions