Best Buy Services: Key for Growth

Morgan Stanley Equity Reserach Retail Field TripApril 19, 2006

Sean SkelleySenior Vice PresidentServices

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 current report on Form 8-K filed with the SEC. 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.

• #1 consumer electronics retailer, Fortune 100 company

• $30.8 billion annual revenue and $1.6 billion operating income for fiscal 2006

• 18% U.S. market share*• Over 940 stores in North

America• Selling TVs, computers,

entertainment software, appliances, services

28%

15%

25%

38%

16%

34%

Annual Avg.Shareholder

Return

Revenue(CAGR)

EPS (CAGR)

5-Year 10-Year

Best Buy Overview

As of 12/31/05

Through fiscal 2006Through fiscal 2006

* Calendar year 2005 market shareBased on internal estimatesand NPD Group Point-of-Sale data

Revenue GrowthRevenue Growth

$34 - $35 BNew

Stores

Small Business

Customers

Services

Int’l

?

Fiscal 2007 Goal

Key drivers to grow our business

Best Buy Model Transformation

Employees essential to customer experience

Products marketed to the masses

Customer needs drive product selection and store experience

Services are Key

U.S. Services Business: $50B Market Opportunity

Shared Service Capabilities

Repair

Deliver

Appliance

Configure

Install

ServiceCentersMobile

HomeTheater

GeekSquad

TestBuild Optimize

Fiscal 2001 Fiscal 2004 Fiscal 2007

12,000Agents

5,000* Agents

20 Agents

20 GeekMobiles

2,000 GeekMobiles

500 GeekMobiles

* Majority of initial agents were transfers from existingin-store technical experts

Geek Squad Expansion

Consumer

Home- Based

Micro

Very Small

Small

Medium

Enterprise

Serv

e th

e C

usto

mer

Empower the Agent/Technician

Basic Services

AdvancedServices

New Customers

New Offerings

Home Theater: Building Scale

• Adding 1,000 installers to existing base of 1,500

• Leveraging capabilities from service platform

• Investing in new tools to improve productivity

Then Now

Complexity is Increasing

Your Questions