forward-looking statements
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31st Annual Gabelli Automotive Aftermarket Symposium October 30, 2007
Mike DolanExecutive Vice President and Chief Administrative Officer
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Forward-Looking Statements
This presentation contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management’s projections and estimates is contained in the CarMax, Inc. SEC filings. The Company disclaims any intent or obligation to update its forward-looking statements.
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The CarMax Advantage®
Unique consumer offer
Proprietary processes and systems
Skilled, dedicated people
Diversified profit base
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Unique Consumer Offer
Low, no-haggle prices Huge selection carmax.com Customer-friendly service
Ease of Shopping
Peace of Mind
Guaranteed quality
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CarMax Today Nation’s largest used car retailer
• 84 used car superstores
• 38 markets
• Store growth:•FY07 10 stores +15%
•FY08 13 stores +17% (Est.)
Large markets (9)
Mid-sized markets (28)Small markets (1)
Sacramento
Los Angeles
Salt Lake City
Albuquerque
San Antonio
Wichita
Austin
Kansas City
Chicago
Houston
Dallas
Oklahoma City
Miami
TampaOrlando
JacksonvilleBirmingham
Memphis
Nashville
LouisvilleIndianapolis
Columbus
KnoxvilleVa. BeachRichmond
DC / Baltimore
C’ville
RaleighGreensboro
CharlotteGreenville
ColumbiaAtlanta
Las VegasFresno
Hartford /
New HavenMilwaukee
Tucson
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Consumer and Business Recognition
25+ awards in the last 2 years “Best of” Atlanta , Austin, Columbia,
Sacramento, San Antonio consumer awards BBB award for Business Ethics in Atlanta, central
Indiana, central North Carolina and others American Business Award – “Stevie Award” for
Best Overall Company
2 million cars sold as of December 2006
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Finance Originations
Purchasing/ Inventory
Management
Reconditioning
ConsumerOffer
Proprietary Processes and Systems 14 Years of Refinement
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Skilled, Dedicated Associates
Three years running (2005 - 2007)
THE CARMAX CULTURE
Comprehensive, formal training in four functional areas Classroom and on-line training Mentoring
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Diversified Gross Profit ContributionFY 2007
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CarMax Lifecycle
1993 2000 2003 2007 FutureStart up Stop
growth to refine model
Restartgrowth
Proven concept
15% annual store growth
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Future Sources of Growth
Store Expansion
84 stores today
CarMax has stores in markets where 40% of the U.S. population lives
15% - 20% new store openings
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Future Sources of Growth
Market Share Expansion
Comp used unit sales (5-year average) CarMax +6% Public new car dealers (3)%
Monthly used unit sales per store CarMax 426 Public new car dealers 49
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Strong Results – FY07
2,000
4,000
6,000
8,000
FY06 FY07
40
90
140
190
240
FY06 FY07
$ in millions $ in millions
Superstores Revenues Net Earnings*
* FY06 restated for SFAS 123R
30
50
70
90
FY06 FY07
AGR = 15% AGR = 19% AGR = 48%
67
77
$6,260
$7,466
$134
$199
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16.4%
13.5%12.3% 12.0% 11.9%
11.1%10.1% 10.0%
6.3%
0
2
4
6
8
10
12
14
16
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HD BBY WMT KMX KSS SPLS COST TGT PublicDealer
Average
RO
IC (%
)
(2)
ROIC (1)
5-Year Average (2002 thru 2006)
CarMax Earns Attractive Returns
Source: Published reports and CarMax estimates.
(1) After-tax EBIT/average invested capital. Invested capital includes operating leases capitalized at 8x rentals. Results not adjusted for subsequent restatements.
(2) Public dealer average includes: ABG, AN, GPI, LAD, PAG, and SAH.
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Future Sources of Growth
Sales Growth
Comp used unit growth: 4% - 8%
New store openings: 15% - 20%
Resulting FY12 revenue range: $13 - $18 bn
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New at CarMax
New carmax.com Search CapabilityGive customers greater search flexibilityImprove site-to-store conversionProvide competitive advantage
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Current carmax.com Search Capability
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New carmax.com Search Capability
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Appraisal System EnhancementsBetter and more timely analytical data for
buyers Improved estimation of reconditioning costsImproved customer offers and delivery
mechanism
New at CarMax
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What is CarMax?
A unique and sustainable retail growth story with
defensible competitive advantages
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