cibc world markets 7th annual consumer growth conference
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CIBC ConsumerGrowth Conference
July 10, 2007
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Tim McGeehanExecutive Vice President – Retail Sales
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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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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 21%
+4 pts
2Fiscal years 2002 thru 2005 have not been adjusted for FAS 123 expense
Diluted EPS1
Revenue Growth
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The Dallas Story, 2004
Summary
• Objective: Increase convenience and pursue market share with new stores, while lifting the performance of all stores.
• Actions Taken: Listened to employees about growth nodes in the market; identified 6 new locations (55% growth).
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• Summary of Results:
• Total market revenue surpassed goal
•Market share increased
• Annual EVA increased for the existing stores and for the entire metro area
• Comp USA will reduce its local store count to 2 stores (from 10)
• Results varied by market but were consistently above plan, including the impact of cannibalization
The Dallas Story, 2007
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72 72
71
76
2003 2004 2005 2006Source: American Customer Satisfaction Index Fourth Quarter Scores – 2/20/07 (www.theacsi.org)
#1 Driver of Improvement: Quality of Interaction with
Employees
Total U.S. Market Share
5%
20%19%
13%14%
6%6%
7%
5%5%
0.0%
5.0%
10.0%
15.0%
20.0%
1997 1999 2001 2003 2004 2005 2006
Customer Satisfaction
Calendar Year
Winning with Customers, Employees
67%69%
81%
FY05 FY06 FY07
$ B
illio
n
Retail TurnoverReward Zone = 20 million members
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Optimizing Labor
• 1998: SOPs, variable labor, unspecialized
• 2003: customer centricity, specialized labor, high fixed costs
• 2008: finding the right balance
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Investing for the Future
• $5.5 billion stock repurchase authorization
– $3.0 billion accelerated share repurchase
• 30% dividend increase
New:• Capabilities • Customers • Markets • Vendorrelationships
• Geographies
• New stores• Services• Supply chain• Best Buy Mobile• Best Buy For Business
Direct Shareholder Returns
Acquisitions and Alliances
Core Business
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Sean SkelleySenior Vice President – Services
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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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Then Now
Increasing Complexity
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U.S. Services: $50B Market
Shared Service Capabilities
Repair
Deliver
Appliance
Configure
Install
ServiceCentersAuto
HomeTheater
GeekSquad
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R&D / New Product Trials
Remote ServicesCall CenterClaims ProcessingData Analytics
Customer Focused AgentsGlobal Workforce
Decision Support
Contract
and B
illing Plat
form
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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Any other partners?
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• 3,000 installers today• Leveraging
capabilities from our service platform
• Investing in new tools to improve productivity
Home Theater: Building Scale
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Your Questions
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