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Best Buy Co., Inc.

William Blair Growth Stock Conference

June 27, 2006

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Ryan Robinson Senior Vice President –Treasury & Corporate Development

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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 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 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.

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• 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 growth

Revenue Growth

Strong History of Growth

$2.27

$1.75$1.44

$1.11$1.07

FY02 FY03 FY04 FY05 FY06

25%Compounded growthEPS1

1Pro-forma adjusted for FAS 123 expense

FY02 FY03 FY04 FY05 FY06

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BeforeCustomer Centricity

Fiscal 2006 Fiscal 2007

Our Journey

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HonorUnique

Customers

ProvideEnd-to-EndSolutions

Invite Employee

Ideas

Customer Centricity

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ProvideEnd-to-End

Solutions

HonorUnique

Customers

Our Priorities

1. Integrated Customer-Centric Operating Model

2. New Store Growth & Magnolia Home Theater

3. Services4. Best Buy For Business5. International6. Capabilities for End-To-

End Solutions

InviteEmployee

Ideas

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Fiscal 2007Annual Guidance

• Revenue of $35 billion• Comparable store sales

gain of 3% to 5%• Earnings per diluted

share of $2.65 to $2.80, an increase of approximately 20%

• Up to 90 new stores in North America

Revenue ($ inbillions)

Diluted EPS

FY06FY07

$6.1$7.0

$0.34

$0.47

First Quarter

• Net earnings growth of 38% • SG&A rate improvement of

110 basis points• Revenue of $7B, comparable

store sales up 4.9%

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HonorUnique

Customers

Our Growth Strategy

New Market Growth

Operating Income

NorthAmericanCE Market

$120$50

$80

$100 $350

Services

SmallBusinesses

China

PotentialMarket

Best Buy Canada

Supply Chain

IT

New Stores,

CustomerCentricity,Services

5.3%

7.0%

Fiscal 2006 Goal

Capabilities

Bottom-LineProfitability

Top-LineGrowth

ProvideEnd-to-End

Solutions

InviteEmployee

Ideas

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Kevin LaydenPresident & Chief Operating OfficerBest Buy Canada

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Number of Stores

104 108 114 118

1930

95

44

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FY02 FY03 FY04 FY05 FY06

Future Shop Best Buy Canada

Future Shop:•Acquired in November 2001•Future Shop Web site is #1 consumer electronics site in Canada•Market share of approximately 20-22%

Best Buy Canada:•Opened Toronto store August 2002•Opened stores in all major markets, including 8 bilingual stores in Montreal•Operate English and French Best Buy Web sites•Geek Squad in all stores•Market share of approximately 8-9%

Canadian Store Count and Revenue

Dual Brand Strategy Boosts Share

$1.4B*

$3.5B

•As-adjusted information presents the results of operations as though Future Shop had been acquired at the beginning of fiscal 2002.

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Progress so far• 71% increase in

store count• Revenue growth of

150% through fiscal 2006

• Operating income rate up 110 bps

• Market share nearly doubled

Evolution of the Dual Brand Strategy

Three-year goals• Brand differentiation• Business model

optimization• Customer centricity

2001 2009

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HonorUnique

Customers

ProvideEnd-to-EndSolutions

Invite Employee

Ideas

Customer Centricity

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Brand Differentiation

• Guiding principle: replicate U.S. Best Buy brand in Canadian marketplace

• Future Shop brand will retain its own imagery and customer experience

• Changes to dual brand operating structure• Brand architecture project initiated in late fiscal

2006– Develop strategic framework to further differentiate the

brands – Ensure clear differentiation on the customer experience

and employee experience

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Business Model OptimizationCanadian Operating Income Rate

Fiscal 2006 Goal

1.6%Scale

Store Labor

Web,Services

Gross Profit

5.0%

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FY06FY07

Revenue Operating Income (Loss)(US$ i

$4

($3)

$626$797

Results are Encouraging

First Quarter – Canadian Results(U.S. Dollars in Millions) • Initial Best Buy Canada stores’

(Toronto and Edmonton) operating profits have dramatically improved

• Best Buy Canada’s operating profit lags Future Shop’s:– Higher advertising expense

and overhead due to early stage of launch

– Maturity curve of stores• Supply chain work beginning• Leveraging enterprise to

improve operating income rate

• Revenue growth of 27%, comparable store sales of 7.1%*

• SG&A rate improvement of 110 basis points

• Profitable first quarter – first time in seven years

*Comparable sales percentage excludes effect of foreign currency exchange

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HonorUnique

Customers

Our Growth Strategy

New Market Growth

Operating Income

NorthAmericanCE Market

$120$50

$80

$100 $350

Services

SmallBusinesses

China

PotentialMarket

Best Buy Canada

Supply Chain

IT

New Stores,

CustomerCentricity,Services

5.3%

7.0%

Fiscal 2006 Goal

Capabilities

Bottom-LineProfitability

Top-LineGrowth

ProvideEnd-to-End

Solutions

InviteEmployee

Ideas

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Your Questions