Best Buy Co., Inc.

Bear Stearns Conference

Feb. 27, 2007

Michael VitelliSenior Vice President & General Manager – Home Solutions

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 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 Annual Report on Form 10-K filed with the SEC on 5/10/06. That 10-K describes additional factors that could cause actual results to differ materially from those contemplated by the forward-looking statements made in this presentation.

Superstores Today980 stores

Superstores Future1,200+ stores

Canadian Market Share Over 30%

Total U.S. Market Share

Best Buy U.S. Market Share - Products Canadian Market Store Presence

5%

11%11%

20%

13%

6%

15%

21%

25%

18%

Total CE Computing/Dig. Imag.

Entertainment Appliances

2001 Market Share 2005 Market Share

North American Leader

95121

47

FY02 Current

Based on calendar year

Based on calendar year

6%

18%

14%

7%

3%0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

1997 1999 2001 2003 2004 2005

$30.8$27.4

$24.5$20.9

$17.7

FY02 FY03 FY04 FY05 FY06 FY07

($ in billions)Revenue Growth

History of Growth

$2.27

$1.07 $1.11$1.44

$1.75

FY02 FY03 FY04 FY05 FY06 FY07

Diluted EPS1

1 Pro-forma adjusted for FAS 123 expenseNote: FY07 represents 1/5/07 guidance

15% CAGR

21% CAGR

22%

17% 16%19% 20%

FY02 FY03 FY04 FY05 FY06

ROIC2

2Fiscal years 2002 thru 2005 have not been adjusted for FAS 123 expense

+5 Pts

FY07 9-Month Results

Total revenue growth 14%

Comp revenue growth 4.4%

Operating income % +30 bps

Diluted EPS growth 25%

Note: FY07 represents 1/5/07 guidance

Where Can We Use our Strengths to Improve

the Customer Experience?

How We Create Value

Customer Experience

Customer Centricity:Our Growth Lens

Invite Employee Ideas

Honor Unique

Customers

Provide End-to-End

Solutions

Customer Centricity: Our Growth Lens

Invite Employee Ideas

Provide End-to-End Solutions

Honor Unique Customers

Customer Experience

Core B

usine

ss

New Customers

New Markets

Customer Centricity: Our Growth Lens

Invite Employee Ideas

Provide End-to-End Solutions

Honor Unique Customers

Customer Experience

Core B

usine

ss

New Customers

New Markets

• Services

• Full Solutions

• New Formats

• Private Label

Growth: Core Business

Vista• 24-Hour support• Geek Squad City• 60,000 trained Vista

experts• In-store tutorials• In-home set-up and

new PC data transfer

Growth: Core Business

Home Theater• 2,800 HT Installers• HD Done Right

– Installations up– Returns down

Growth: Core Business

.com placeholder

Fiscal 2008: Domestic New Store Opening Plans

# of NewStores % Change

Sq. Ft. %Change

~ 90 +11% +9%

Up to 5Up to 35%

Up to 36%

Fiscal 2008 store expansion plans announced on February 21, 2007

72 72

71

76

2003 2004 2005 2006

BBY: Customer Satisfaction

#1 Driver of Improvement: Quality of Interaction with

Employees

Source: American Customer Satisfaction Index Fourth Quarter Scores – 2/20/07 (www.theacsi.org)

Ryan RobinsonSenior Vice President -Treasury and Corporate Development

Customer Centricity: Our Growth Lens

Invite Employee Ideas

Provide End-to-End Solutions

Honor Unique Customers

Customer Experience

Core B

usine

ss

New Customers

New Markets

Business

High-end

Others?

Growth: New Customers

#1 with 18% Market Share

Growth with New Formats

• Canada

• China

• United Kingdom

Growth: New Markets

Coming Soon!

Fiscal 2008: International New Store Opening Plans

Country# of NewStores % Change

Sq. Ft. % Change

Canada 6 – 7 +5% +6%

Canada 6 – 7 +14% +12%

China 20 – 23 +16% +16%

China 2 – 3 +>200% +145%

Customer Experience

Using Our Strengths Globally

Invite Employee Ideas

Honor Unique

Customers

Provide End-to-End

Solutions

Chinese Retail Environment

• Different retail experience versus the U.S.• Consumer behavior is rapidly changing• China has 176 cities with >1M

people…North America has 9 cities• Multi-pronged approach to the market

– Five Star, a traditional electronics player– Best Buy, with a U.S.-like business model– Potential opportunities in services, dot com

• Third-largest appliance and consumer electronics retailer

• BBY acquired a 75% interest in June 2006

• 2005 CY revenue of $700 million (USD)

• Strong existing management team remains intact

Five Star

Best Buy China

• 86,000-square-foot store in Times Squareof Shanghai

• Opened on December 28, 2006

• Consumer research is leading the way

• Goal is an improved retail experience for the Chinese consumer

International Priorities

• Leverage our strengths

• Focus on large, growing and “optimistic”economies

• Approach:– Dream big– Start small– Learn fast– Scale profitably

Your Questions