Best Buy Road Show PresentationOctober 2010

1

Safe Harbor Statement

Forward-Looking and Cautionary Statements

This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the US Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect managementrsquos current views and estimates regarding future market conditions company performance and financial results business prospects new strategies the competitive environment and other events You can identify these statements by the fact that they use words such as ldquoanticipaterdquo ldquobelieverdquo ldquoestimaterdquo ldquoexpectrdquo ldquointendrdquo ldquoprojectrdquo ldquoplanrdquo ldquooutlookrdquo and other words and terms of similar meaning These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following general economic conditions acquisitions and development of new businesses divestitures product availability sales volumes pricing actions and promotional activities of competitors profit margins weather changes in law or regulations foreign currency fluctuation availability of suitable real estate locations the companyrsquos ability to react to a disaster recovery situation the impact of labormarkets and new product introductions on overall profitability failure to achieve anticipated benefits of announced transactions and integration challenges relating to new ventures A further list and description of these risks uncertainties and other matters can be found in Best Buyrsquos annual report and other filings made from time to time with the US Securities and Exchange Commission including but not limited to Best Buyrsquos Annual Report on Form 10-K filed with the SEC on April 28 2010 Management cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statement that it may

make

2

Store Counts

BEST BUYUS 1091

Turkey 2

Mexico 5

UK 3

China 8

Canada 70

GEEK SQUADStand-Alone Stores 5

BEST BUY MOBILEStand-Alone Stores US 109

Stand-Alone Stores Canada 6

FAMILY OF BRANDSThe Carphone Warehouse 2436

Five Star 159

Future Shop 145

Magnolia Audio Video 6

Pacific Sales 35

3

FY11 vs LY

Revenue Growth 29

Comp Growth (1) (01)

Gross Profit 257

SGampA 221

Operating Inc 36

EPS $060

Second Quarter Results

Strategic Results

(1) Domestic (14) International 43

Customer Satisfaction

Employee Retention

2nd Quarter Financial Performance

+130bps

+110bps

+62

gt70

gt84

Market Share ~(50bps)(30bps)

+380bps

4

Margin Expansion

Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps

Gross Margin strength has driven strong enterprise level Operating Income rate performance

5

Exciting product cycle for 2nd half

PlayStationreg

Move

6

Safe Harbor Statement

Forward-Looking and Cautionary Statements

This presentation contains forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the US Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect managementrsquos current views and estimates regarding future market conditions company performance and financial results business prospects new strategies the competitive environment and other events You can identify these statements by the fact that they use words such as ldquoanticipaterdquo ldquobelieverdquo ldquoestimaterdquo ldquoexpectrdquo ldquointendrdquo ldquoprojectrdquo ldquoplanrdquo ldquooutlookrdquo and other words and terms of similar meaning These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following general economic conditions acquisitions and development of new businesses divestitures product availability sales volumes pricing actions and promotional activities of competitors profit margins weather changes in law or regulations foreign currency fluctuation availability of suitable real estate locations the companyrsquos ability to react to a disaster recovery situation the impact of labormarkets and new product introductions on overall profitability failure to achieve anticipated benefits of announced transactions and integration challenges relating to new ventures A further list and description of these risks uncertainties and other matters can be found in Best Buyrsquos annual report and other filings made from time to time with the US Securities and Exchange Commission including but not limited to Best Buyrsquos Annual Report on Form 10-K filed with the SEC on April 28 2010 Management cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statement that it may

make

2

Store Counts

BEST BUYUS 1091

Turkey 2

Mexico 5

UK 3

China 8

Canada 70

GEEK SQUADStand-Alone Stores 5

BEST BUY MOBILEStand-Alone Stores US 109

Stand-Alone Stores Canada 6

FAMILY OF BRANDSThe Carphone Warehouse 2436

Five Star 159

Future Shop 145

Magnolia Audio Video 6

Pacific Sales 35

3

FY11 vs LY

Revenue Growth 29

Comp Growth (1) (01)

Gross Profit 257

SGampA 221

Operating Inc 36

EPS $060

Second Quarter Results

Strategic Results

(1) Domestic (14) International 43

Customer Satisfaction

Employee Retention

2nd Quarter Financial Performance

+130bps

+110bps

+62

gt70

gt84

Market Share ~(50bps)(30bps)

+380bps

4

Margin Expansion

Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps

Gross Margin strength has driven strong enterprise level Operating Income rate performance

5

Exciting product cycle for 2nd half

PlayStationreg

Move

6

Store Counts

BEST BUYUS 1091

Turkey 2

Mexico 5

UK 3

China 8

Canada 70

GEEK SQUADStand-Alone Stores 5

BEST BUY MOBILEStand-Alone Stores US 109

Stand-Alone Stores Canada 6

FAMILY OF BRANDSThe Carphone Warehouse 2436

Five Star 159

Future Shop 145

Magnolia Audio Video 6

Pacific Sales 35

3

FY11 vs LY

Revenue Growth 29

Comp Growth (1) (01)

Gross Profit 257

SGampA 221

Operating Inc 36

EPS $060

Second Quarter Results

Strategic Results

(1) Domestic (14) International 43

Customer Satisfaction

Employee Retention

2nd Quarter Financial Performance

+130bps

+110bps

+62

gt70

gt84

Market Share ~(50bps)(30bps)

+380bps

4

Margin Expansion

Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps

Gross Margin strength has driven strong enterprise level Operating Income rate performance

5

Exciting product cycle for 2nd half

PlayStationreg

Move

6

FY11 vs LY

Revenue Growth 29

Comp Growth (1) (01)

Gross Profit 257

SGampA 221

Operating Inc 36

EPS $060

Second Quarter Results

Strategic Results

(1) Domestic (14) International 43

Customer Satisfaction

Employee Retention

2nd Quarter Financial Performance

+130bps

+110bps

+62

gt70

gt84

Market Share ~(50bps)(30bps)

+380bps

4

Margin Expansion

Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps

Gross Margin strength has driven strong enterprise level Operating Income rate performance

5

Exciting product cycle for 2nd half

PlayStationreg

Move

6

Margin Expansion

Domestic Gross Margins have been bolstered by strong rate improvements as well as enhanced mix given the strong growth of BBY Mobile leading to a H1 YOY GM rate increase of 110bps

Gross Margin strength has driven strong enterprise level Operating Income rate performance

5

Exciting product cycle for 2nd half

PlayStationreg

Move

6

Exciting product cycle for 2nd half

PlayStationreg

Move

6

How Does Best Buy Make Money in the Connected World

Accessories

Content

Services

Connections

Hardware=

7

Connections ndash High level business model

1B+ annual traffic to stores amp BBYcom

Blue shirt expertise and assistance

Millions in unit sales of connectable hardware

Significant opportunity to connect customers to

necessary video voice amp broadband solutions

Ongoing paymentBBY receives a portion of recurring monthly revenue

paid to carriers or entire monthly revenue paid directly to BBY (eg BBY Connect)

Bounty Model (majority)Portion of expected lifetime value of customer

is shared with BBY via an upfront bounty

Through helping customers solve their Connected World needs Best Buy is positioned as an extremely valuable customer acquisition engine for carrier partners

Resulting in economics shared

with BBY

8

Connections ndash Examples

New Customer or Upgrade

Wireless Broadband

Mobile Phone Contracts

Faster Home Connection

9

Services - examples

Services bullUp-frontbullMonthly

10

Content ndash Examples

New Customer or Upgrade

11

Holiday Store Activities

bull Primary goalndash Better optimization of the space within the entertainment

areabull Reduce the space dedicated to physical music amp movies with the first

meaningful reduction since the shift to digital music

ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs

bull Give more space to gaminghellip

ndash To provide the in store environment to experience new motion based gaming launches

ndash To assort pre-owned video games

bull Free up space for expanded BBY Mobile SWAS

bull Free up space for eReaders and Gadgets

12

Holiday Store Activities - responds to the continued declines in physical media

20102007

Use the space for growth opportunities

Significantly reduce the space dedicated to physical music amp movies this year

Center of Store in

typical 45k format

13

Holiday Store Activities - BBY Mobile SWAS expansion

Current Format of over 150 SWAS locations by holiday

bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution

14

Holiday Store Activities - Used Gaming

bull Game trade in amp pre-owned games will be in nearly all stores before Holiday

bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk

bull Customer receives a BBY gift card that can be used for anything in the store

15

Content ndash Examples

New Customer or Upgrade

11

Holiday Store Activities

bull Primary goalndash Better optimization of the space within the entertainment

areabull Reduce the space dedicated to physical music amp movies with the first

meaningful reduction since the shift to digital music

ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs

bull Give more space to gaminghellip

ndash To provide the in store environment to experience new motion based gaming launches

ndash To assort pre-owned video games

bull Free up space for expanded BBY Mobile SWAS

bull Free up space for eReaders and Gadgets

12

Holiday Store Activities - responds to the continued declines in physical media

20102007

Use the space for growth opportunities

Significantly reduce the space dedicated to physical music amp movies this year

Center of Store in

typical 45k format

13

Holiday Store Activities - BBY Mobile SWAS expansion

Current Format of over 150 SWAS locations by holiday

bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution

14

Holiday Store Activities - Used Gaming

bull Game trade in amp pre-owned games will be in nearly all stores before Holiday

bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk

bull Customer receives a BBY gift card that can be used for anything in the store

15

Holiday Store Activities

bull Primary goalndash Better optimization of the space within the entertainment

areabull Reduce the space dedicated to physical music amp movies with the first

meaningful reduction since the shift to digital music

ndash Improve inventory turns and eliminate ampor redeploy a significant amount of physical media ldquotaskingrdquo SGampA costs

bull Give more space to gaminghellip

ndash To provide the in store environment to experience new motion based gaming launches

ndash To assort pre-owned video games

bull Free up space for expanded BBY Mobile SWAS

bull Free up space for eReaders and Gadgets

12

Holiday Store Activities - responds to the continued declines in physical media

20102007

Use the space for growth opportunities

Significantly reduce the space dedicated to physical music amp movies this year

Center of Store in

typical 45k format

13

Holiday Store Activities - BBY Mobile SWAS expansion

Current Format of over 150 SWAS locations by holiday

bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution

14

Holiday Store Activities - Used Gaming

bull Game trade in amp pre-owned games will be in nearly all stores before Holiday

bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk

bull Customer receives a BBY gift card that can be used for anything in the store

15

Holiday Store Activities - responds to the continued declines in physical media

20102007

Use the space for growth opportunities

Significantly reduce the space dedicated to physical music amp movies this year

Center of Store in

typical 45k format

13

Holiday Store Activities - BBY Mobile SWAS expansion

Current Format of over 150 SWAS locations by holiday

bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution

14

Holiday Store Activities - Used Gaming

bull Game trade in amp pre-owned games will be in nearly all stores before Holiday

bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk

bull Customer receives a BBY gift card that can be used for anything in the store

15

Holiday Store Activities - BBY Mobile SWAS expansion

Current Format of over 150 SWAS locations by holiday

bull Approximate 25 increase to SWAS square footage ndash Expanded accessory amp no contract space ndash Showcasing smart phones (8 end caps vs current 4) amp 7 inch tabletsndash Displaying a 3 screen solution

14

Holiday Store Activities - Used Gaming

bull Game trade in amp pre-owned games will be in nearly all stores before Holiday

bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk

bull Customer receives a BBY gift card that can be used for anything in the store

15

Holiday Store Activities - Used Gaming

bull Game trade in amp pre-owned games will be in nearly all stores before Holiday

bull In a select number of stores there will be a dedicated trade in desk (pictured above) but in most stores the trade in will occur at the customer service desk

bull Customer receives a BBY gift card that can be used for anything in the store

15