Best Buy Co., Inc.

Morgan StanleyGlobal Consumer &

Retail Conference

Nov. 14, 2006

Kal PatelExecutive Vice President,Strategy & International Development

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 factorscould 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.

• 30-percent earnings growth in fiscal 2006

• Revenue exceeded $30B, net earnings exceeded $1B

• Expanding into new markets: services, small businesses, international

$30.8$27.4

$24.5$20.9

$17.7

FY02 FY03 FY04 FY05 FY06

($ in billions)

15% Compounded growthRevenue Growth

Strong History of Growth

$2.27

$1.07 $1.11$1.44

$1.75

FY02 FY03 FY04 FY05 FY06

25% Compounded growthEPS1

1Pro-forma adjusted for FAS 123 expense

Fiscal 2007Annual Guidance

(reiterated on 10/5)

• Revenue of approx. $35.5 billion

• Comparable store sales gain of 3% to 5%

• Diluted EPS of $2.65 to $2.80, up roughly 20%

• Up to 90 new stores in North America

• Operating income rate improvement of 40 bps

Revenue ($ inbillions)

Diluted EPS

FY06FY07

$12.8$14.6

$0.71

$0.94

First Half

• Net earnings growth of 30% • SG&A rate improvement of

100 basis points• Revenue of $14.6B, same

store sales up 4.2%

Fiscal 2006 Fiscal 2007 BeforeCustomer Centricity

Our Journey

HonorUnique

Customers

ProvideEnd-to-EndSolutions

Invite Employee

Ideas

Customer Centricity

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

Growth

$100B

$120B$50B

ServicesSmall

Businesses

China

$80B

MarketPotential

New Markets

NorthAmericanCE Market

$300B

Market sizes are internal estimates.

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

• 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

Five Star

Best Buy China

• 85,000-square-foot store in Times Squareof 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

HonorUnique

Customers

ProvideEnd-to-EndSolutions

Invite Employee

Ideas

Customer Centricity

Tom HealyExecutive Vice PresidentBest Buy For Business

Customer Centricity Philosophies

Best Buy For Business

Invite employee ideas • Provide tools to connect and leverage 10,000 employees and their ideas

Honor unique customers • Deliver simple, reliable and affordable technology solutions that satisfy each business customer’s unique needs

Provide end-to-end solutions • Offer multiple brands, products and services – before, during and after the sale

Why Business Customers?

My Business Is Personal

Our Target Customer

Our customer: small business <100 employees=Our customer: small business <100 employees=

$132 billion annual technology spend$132 billion annual technology spend

Pay Me Back Make It Easy

Value Proposition

My Business is PersonalMake it Convenient

Pay Me Back

Business Technology

Pros andBusiness

Consultants

Geek Squad Service

Reward Zone For Business

Expanded Assortment

Community Networks

Integrated Business Model

.com

Direct Sales

Technology Consulting

Internet SalesMany Profiles

Individual Needs

Many Psyches

Commercial Sales

Retail

Stores

Our CustomerOur Customer

VoIP

VoiceData$83B Small Business Spend $49B Small Business Spend

Product Convergence

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 collaboration4) Adding nearly 600 trained business

professionals5) Building outside sales and CRM capabilities6) Refining our offerings to more effectively meet

customer needs

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

1990 2010??

Acceleration of Innovation & Convergence

2006

Collaboration and Community are Key

Your Questions