Download - Annual Meeting 2007
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AnnualShareholderMeeting
June 27, 2007
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RICHARD M. SCHULZEFounder and
ChairmanDirector since 1966
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• Election of Directors• Ratification of
Appointment of Deloitte & Touche LLP
• Amend 2004 Omnibus Stock and Incentive Plan
• Management Presentation
• Q&A Session
Agenda
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Directors for Election
Ronald JamesDirector since 2004
Elliot S. KaplanDirector and Secretary
since 1971
Matthew H. PaullDirector since 2003
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James E. PressDirector since 2006
Richard M. SchulzeFounder and Chairman
Director since 1966
Mary A. TolanDirector since 2004
Hatim A. TyabjiDirector since 1998
Directors for Election
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Rogelio M. RebolledoDirector since 2006
Ratification of Director
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Director Voting Results
Kaplan Press Tolan Rebolledo
0%
20%
40%
60%
80%
100%
James Paull Schulze Tyabji
For Withheld
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Auditor Voting Results
99%
0.20% 0.50%
For Against Abstain
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Omnibus Voting Results
94%
5% 0.70%
For Against Abstain
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AnnualShareholderMeeting
June 27, 2007
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Brad AndersonVice Chairman andChief Executive Officer
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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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Darren JacksonExecutive Vice President – Finance and Chief Financial Officer
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History of Growth
21%
16%19% 20%
22%
FY03 FY04 FY05 FY06 FY07
$1.11$1.44
$1.75$2.27
$2.79
FY03 FY04 FY05 FY06 FY071 Pro-forma adjusted for FAS 123 expense
21% CAGR
ROIC2 FY07 Results
Total revenue growth 16%
Comp revenue growth 5.0%
Operating income % +23 bps
Diluted EPS growth 23%
N. American market share 20%2 FY03-FY05 are not adjusted for FAS 123 expense
Diluted EPS1
+5 pts
$35.9$30.8
$27.4$24.5
$20.9
FY03 FY04 FY05 FY06 FY07
15% CAGR
Revenue($ in billions)
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Fiscal 2008
First Quarter:• Revenue of $7.9 billion• Comparable store sales
gain of 3.0%• Gross profit rate decline• SG&A rate flat• Repurchase $412 million
of common stock• Earnings per diluted
share decreased 17%
Annual Guidance:• Revenue of $39 billion• Comparable store sales
gain of 3% to 5%• Nominal improvement in
operating income rate• EPS of $2.95 to $3.15• 130 New stores:
– 95 United States– 35 International
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Investing for the Future
Investing in growth and ROIC
Core Business Growth Opportunities
Direct Shareholder Returns
• New stores• Services• Pacific Sales• Best Buy Mobile• Best Buy For Business
• Acquisitions to provide new:– Capabilities (Speakeasy)– Customers(Pacific Sales)– Markets (Future Shop)– Vendor relationships (Magnolia)–Geographies(Five Star)
• $5.5 billion Stock repurchase plan
– $3.0 billion accelerated share repurchase
• 30% dividend increase
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Brian DunnPresident and Chief Operating Officer
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Notebook
Gaming System
Digital Camera
Networking
PhoneSatellite Radio
iPhone
DVR
Home Theater Systems
Desktop
Technology is Not Just a Lifestyle…
It is the infrastructure of life.
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Customer Centricity: Our Growth Lens
Core Business
New Customers & Formats
New Markets
Customer Experience
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Future Growth
Today Goal New Goal
U.S. Best Buy Pacific Sales Canada: Future Shop/Best Buy
N. American New Store Runway
1,035
1,400
1,800
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Your Questions