Small businesses and international expansion, specifically in Canada, are key growth drivers for Best Buy. Best Buy Canada has grown significantly through its dual brand strategy of Future Shop and Best Buy stores, nearly doubling its market share. Best Buy aims to further differentiate the brands and optimize its business model in Canada. Key priorities include deploying Best Buy for Business to more stores, building training capacity for consultants, and refining offerings to meet small business customer needs.

1. Small Businesses and
International Stores:
Key Growth Drivers For Best Buy
Bear Stearns’ 12th Annual Retail,
Restaurants & Consumer
Conference
March 8, 2006

2. Tom Healy
Executive Vice
President
Best Buy For Business

3. 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.

4. Best Buy
• #1 consumer electronics
retailer
• $30 billion annual revenue
38%
• $1.5+ billion operating
30%
28%
income for fiscal 2006
21%
• 17% U.S. market share
18%
17%
• Fortune 100 company
• Selling TVs, computers,
entertainment software,
Annual Avg. Revenue (CAGR) EPS (CAGR)
appliances
Shareholder Return
5-Year 10-Year

5. Top-Line Growth
?
Int’l
Services
Small
$30 B Business
New Customers
Stores
2006 2011
Two drivers that will extend our business: Small Business and International

6. Best Buy Model Transformation
Customer needs drive product Employees essential to
Products marketed to
selection and store experience customer experience
the masses
SEGMENT

7. Customer Segmentation
Small businesses Affluent professionals Young
entertainment
enthusiasts
Busy suburban moms Tech-savvy families

8. Why Business Customers?
Customer Centricity Goals Best Buy For Business
• Identify and attract profitable • Small business represents an $80
customers to existing locations billion opportunity
• These customers already shop at
Best Buy for personal needs
• Create new and improved • Unique localized services and
customer experiences expanded assortments available via
multi-channels, serving unmet needs
• Improve overall customer • Trained and certified professionals
satisfaction and loyalty catering to the needs of small
business owners

9. Unique Position, Not Easily Replicated
Competition Best Buy
• Fragmented • 900+ retail stores
• Inconsistent service • Geek Squad agents
and product • Product and service expertise
assortment • Multiple brands
• Narrow range of • Multi-channel business model
capabilities and
• Strong brand with pre-
offerings
existing customer
relationships
Changing the way small business buys IT solutions

10. Value Proposition
Business
Technology
Pros and
Business
Consultants
Reward
Geek Squad
Zone For
Service
My Business is Personal
Business
Make it Convenient
Pay Me Back
Expanded Community
Assortment Networks

11. Integrated Business Model
Our Customer
.com
Internet Sales
Many Profiles
Retail
Stores
Individual
Needs
Many Psyches
Direct Sales
Commercial Sales Technology
Consulting

12. Near-Term Priorities
1)Deploying BBFB
to a broader geography
2)Currently 100 U.S. stores
offer Best Buy for Business;
planning to have 220 stores
by end of fiscal 2007
3)Building our training and development capacity
4)Adding nearly 600 trained business professionals
5)Building outside sales capabilities
6)Refining our offerings to more effectively meet
customer needs

13. Key to Long-Term Success
• Co-creation of technology solutions with
customer and vendor partners
• Widely available technology experts in
solutions for business, offering a local
relationship
• Differentiated training and development
capability for technology consultants and
Geek Squad agents

14. Kevin Layden
President &
Chief Operating Officer
Best Buy Canada

15. Canada is Key to BBY’s Growth
7.0%
BBY Operating
BBY Revenue
Income Rate
?
Organic
Growth
Int’l
IT
Services
Small Supply
$30 B Chain
Business
5.3%
New Customers
Best Buy
Stores
Canada
FY’05 Goal
Today Goal

16. Best Buy Domestic & International
Fiscal Year 2005
Domestic International
($ in millions)
$24,616 $2,817 10%*
Revenue
$1,393 $49 3%*
Operating Income
Operating Income
5.7% 1.7% N.M.
Rate
688 144 17%*
Stores
* Represents percentage of total Best Buy

17. Dual Brand Strategy Boosts Share
Future Shop:
$3.6B*
Canadian Store Count •Acquired in November 2001
and Number of Stores
Revenue •Future Shop Web site is #1 consumer
electronics site in Canada
44
30
•Market share of approximately 20-
19
$2B* 22%
8
Best Buy Canada:
•Opened Toronto store 8/2002
120
114
108
104
•Opened stores in all major markets,
95
including 8 bilingual stores in Montreal
•Operate English and French Best Buy
Web sites
2002 2003 2004 2005 2006
•Geek Squad in all stores
•Market share of approximately 8-9%
Future Shop Best Buy Canada
* Canadian dollars

18. Evolution of the Dual Brand Strategy
2001 2009
Three-year goals
Progress so far
• 73% increase in store • Brand differentiation
count by FY’06 • Business model
• Revenue growth of optimization
80% through FY’05
• Customer centricity
• Operating income
rate up 150 bps
• Market share nearly
doubled

19. Brand Differentiation
• Future Shop brand will retain its own imagery and
customer experience
• Guiding principle: replicate U.S. Best Buy brand in
Canadian marketplace
• Changes to dual brand operating structure
• Brand architecture project initiated in late fiscal 2006
– Develop strategic framework to further differentiate the
brands
– Ensure clear differentiation on the customer experience
and employee experience

20. Business Model Optimization
Canadian Operating Income Rate
5.0%
Gross
Profit
Web,
Services
Store
1.7% Labor
Scale
FY ’05 Goal

21. Results are Encouraging
• Initial Best Buy Canada stores’
Number ofStore Count
Canadian
Stores
(Toronto and Edmonton)
operating profits have
44
30
dramatically improved
19
•
8
Best Buy Canada’s operating
profit lags Future Shop’s:
– Higher advertising expense
120
and overhead due to early
114
108
104
95
stage of launch
– Maturity curve of stores
• Supply chain work beginning
2002 2003 2004 2005 2006
• Leveraging enterprise to
improve operating income rate
Future Shop Best Buy Canada

22. Customer Centricity
• Best Buy Canada selectively pulling Customer Centricity
elements:
– Geek Squad in Best Buy stores, 6 stand-alone units
– Best Buy for Business locations
• Best Buy Canada in early stages of segmentation analysis
• Common tools with U.S. but different segments:
– More than 30% of greater Vancouver population is of
Asian descent
– 90% of Montreal population speaks French
• Building capacity for labs in fiscal 2008

23. Key Growth Area
7.0%
BBY Operating
Income Rate
BBY Revenue ?
Organic
Growth
Int’l
IT
Services
Small Supply
$30 B Chain
Business
5.3%
New Customers
Best Buy
Stores
Canada
Today Goal FY’05 Goal

24. Your Questions