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1
Continuing Our Growth Through Customer Centricity
Best Buy Co., Inc.
Lehman BrothersRetail Seminar
May 2, 2006
2
BRAD ANDERSONVice Chairman andChief Executive Officer
3
Our JourneyOur Journey
BeforeCustomer Centricity
Fiscal 2006 Fiscal 2007
4
Customer CentricityCustomer Centricity
Full Solutions
Unique Customers
EngagedEmployees
5
DARREN JACKSONExecutive Vice President –Finance and Chief Financial Officer
6
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%
7
$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
8
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
9
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
14
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
15
Continuing Our Growth Through Customer Centricity
Best Buy Co., Inc.
Lehman BrothersRetail Seminar
May 2, 2006