lehman brothers retail seminar

1

Continuing Our Growth Through Customer Centricity

Best Buy Co., Inc.

Lehman BrothersRetail Seminar

May 2, 2006

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BRAD ANDERSONVice Chairman andChief Executive Officer

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Our JourneyOur Journey

BeforeCustomer Centricity

Fiscal 2006 Fiscal 2007

4

Customer CentricityCustomer Centricity

Full Solutions

Unique Customers

EngagedEmployees

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DARREN JACKSONExecutive Vice President –Finance and Chief Financial Officer

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18%

14%

6%

7%

3%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

1999 2001 2003 2005

Today941 stores

Future1,200+ stores

Canadian Market Share = 30%

Total U.S. Market Share

Best Buy U.S. Market Share - Products Best Buy Canada Market Share

The Market LeaderThe Market Leader

5%

11%11%

20%

13%

6%

15%

21%

25%

18%

Total CE Computing/Dig. Imag.

Music/ Movies Appliances

2001 Market Share 2005 Market Share

1999 2001 2003 2005

18%

14%

7%

6%

3%

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$30.8$27.5

$24.5$20.9

$17.7

FY02 FY03 FY04 FY05 FY06

($ in billions)

15% Compounded growthRevenue 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

History of GrowthHistory of Growth

•Growing profitably•Investing for continued growth

•Building tools and capabilities

•Expanding into new markets

FY02 FY03 FY04 FY05 FY06

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New Growth DriversNew Growth Drivers

•Expanding in new markets:

– Services– Small Businesses– China

•Optimizing our profit model is #1 priority

NorthAmericanCE Market

$120$50

$80

$100 $350

Services

SmallBusinesses

China

PotentialMarket

New Market Growth

Operating Income

Best Buy Canada

Supply Chain

IT

New Stores,

CustomerCentricity,Services

5.3%

7.0%

Fiscal2006

Goal

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Our AdvantageOur Advantage

Full Solutions

Unique Customers

EngagedEmployees

10

• Integratedcustomer-centric operating model

Transform the Core Enhance the Customer Experience Extend the Business

Customer Centricity

This chart contains forward looking information. Please see the company’s filings with the SEC regarding the risks and uncertainties related to forward looking information.

Our PrioritiesOur Priorities

Stores

Corp.Campus

Field Org.

11

• Integratedcustomer-centric operating model

Transform the Core Enhance the Customer Experience

• Services capabilities (Geek Squad & Home Theater)

• Full-solution offerings• New stores and

extended Magnolia Home Theater experience

Extend the Business

Customer Centricity

This chart contains forward looking information. Please see the company’s filings with the SEC regarding the risks and uncertainties related to forward looking information.

Our PrioritiesOur Priorities

Stores

Corp.Campus

Field Org.

12

• Integratedcustomer centric operating model

Transform the Core Enhance the Customer Experience

• Services capabilities (Geek Squad & Home Theater)

• Full-solution offerings• New stores and

extended Magnolia Home Theater experience

Extend the Business

• Pacific Sales Kitchen and Bath Centers

• Best Buy For Business

• China

Customer Centricity

This chart contains forward looking information. Please see the company’s filings with the SEC regarding the risks and uncertainties related to forward looking information.

Our PrioritiesOur Priorities

Stores

Corp. Field Org.

13

Our Growth StrategyOur 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

Full Solutions

Unique Customers

EngagedEmployees

Capabilities

Bottom-LineProfitability

Top-LineGrowth

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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 8-K filed with the SEC on 3/18/04. That 8-K describes additional factors that could cause actual results to differ materially from those contemplated by the forward-looking statements made in this presentation.

Safe HarborSafe Harbor

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Continuing Our Growth Through Customer Centricity

Best Buy Co., Inc.

Lehman BrothersRetail Seminar

May 2, 2006