RENEW

BLUE
Best Buy Analyst and Investor Day
November 13, 2012
FORWARD-LOOKING AND CAUTIONARY STATEMENTS:
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in
Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management‟s 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 “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “project,” “guidance,” “plan,” “outlook,” “opportunities,” 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, changes in consumer preferences, credit market constraints, acquisitions and
development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of competitors, profit
margins, weather, natural or man-made disasters, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate
locations, the company‟s ability to react to a disaster recovery situation, the impact of labor markets and new product introductions on overall
profitability, failure to achieve anticipated benefits of announced transactions, integration challenges relating to new ventures and unanticipated
costs associated with previously announced or future restructuring activities. A further list and description of these risks, uncertainties and other
matters can be found in the company‟s annual report and other reports filed from time to time with the Securities and Exchange Commission,
including, but not limited to, Best Buy‟s Annual Report on Form 10-K filed with the SEC on May 1, 2012. Best Buy cautions that the foregoing list
of important factors is not complete, and any forward-looking statements speak only as of the date they are made, and Best Buy assumes no
obligation to update any forward-looking statement that it may make.

2
PRESENTATION OF FINANCIAL INFORMATION:
The financial information included in this presentation is based on our old fiscal calendar for FY08 – FY10 and our new fiscal calendar for FY11 –
FY13. Except for amounts used in the calculation of Return on Invested Capital (“ROIC”), all information is presented on a continuing operations
basis. In addition, the financial information is presented on a non-GAAP basis. Such non-GAAP financial information should not be considered
superior to, as a substitute for, or as an alternative to, and should be considered in conjunction with, the GAAP financial information reported in
our 10-K, 10-Q and 8-K filings. For GAAP to non-GAAP reconciliations, please refer to the supplemental non-GAAP reconciliation schedule
available on our website at www.investors.bestbuy.com.

3
AGENDA
I. INTRODUCTION

II. DIAGNOSIS

III. RENEW BLUE

4
 INTRODUCTION
DIAGNOSIS
RENEW BLUE

RENEW THE PREFERRED AUTHORITY AND DESTINATION

BLUE FOR TECHNOLOGY PRODUCTS AND SERVICES

Reinvigorate and Work with Continue leadership

rejuvenate the VENDOR PARTNERS role in positively
CUSTOMER to innovate and impacting
EXPERIENCE drive value OUR WORLD

Attract and inspire Increase ROIC for

LEADERS AND INVESTORS
EMPLOYEES

5
AGENDA
I. INTRODUCTION

II. DIAGNOSIS

III. RENEW BLUE

6
 INTRODUCTION
DIAGNOSIS
RENEW BLUE

BEST BUY HAS

GREAT STRENGTHS

7
 INTRODUCTION
DIAGNOSIS
BEST BUY OPERATES IN A RENEW BLUE

LARGE AND GROWING MARKET

U.S. CONSUMER ELECTRONICS AND APPLIANCES

MARKET
($ billion)

CAGR
+3.2%

FY09 FY10 FY11 FY12

Includes mobile phones, tablets, eReaders, appliances, physical music/movies, gaming, notebooks/desktops, home
theater, digital imaging, connections, services and digital content.
SOURCE: NPD, Nielsen, Stevenson Traqline, Forrester, CEA, internal analysis

8
 INTRODUCTION
DIAGNOSIS
MARKET GROWTH CONTINUES TO BE RENEW BLUE

DRIVEN BY INNOVATION
U.S. RETAIL SALES BY CATEGORY
Smartphones

Tablets

Digital TVs
Notebooks

Desktops

SOURCE: NPD, Nielsen, Stevenson Traqline, Forrester, CEA, internal analysis

9
 INTRODUCTION
DIAGNOSIS
BEST BUY IS THE OVERALL CATEGORY RENEW BLUE

LEADER IN A HIGHLY-FRAGMENTED MARKET

U.S. CONSUMER ELECTRONICS AND APPLIANCES EVOLUTION*
48%
of market
served by
competitors
50% 49% 48% 48% Other with less than
4% share
1% 3% 4% Amazon
4% Circuit 2% 5% 5% Target
2% 5% 5% 6% Sears
4% City 6%
5% 7% 8% Apple
5% 5%
15% 16% 15% Walmart
14%

15% 17% 16% 16%

FY09 FY10 FY11 FY12

*Excludes connections, services, digital content. Includes retailers‟ share of mobile phones, tablets, eReaders, appliances, physical
music/movies, gaming, notebooks/desktops, home theater and digital imaging.
SOURCE: NPD, Nielsen, Stevenson Traqline, internal analysis
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 INTRODUCTION
DIAGNOSIS
BEST BUY HAS BEEN GAINING SHARE IN RENEW BLUE

KEY CATEGORIES
BEST BUY REVENUE SHARE BY CATEGORY
(percent)
30
Home Theater
25 +1800 +270
Desktop/Notebook bps bps
20 Tablets/eReaders
15

10 Major Appliances
5 Smartphones +100 bps

0
FY10 FY11 FY12
SOURCE: NPD, Stevenson Traqline, internal analysis

11
 INTRODUCTION
DIAGNOSIS
BEST BUY HAS A RENEW BLUE

LARGE AND LOYAL CUSTOMER BASE

TOP ESTIMATED RETAIL LOYALTY PROGRAMS IN 2012
(in million)

40 75

Sears #1
loyalty
Toys „R‟ Us program

Dick‟s Sporting Goods

Hallmark
Starbucks
Active
Amazon Prime Inactive

SOURCE: Reward Zone, Colloquy, Bloomberg, Best Buy estimates

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BEST BUY OFFERS A
UNIQUE CUSTOMER
PROMISE

THE LATEST DEVICES AND SERVICES,

ALL IN ONE PLACE

IMPARTIAL & KNOWLEDGEABLE ADVICE

COMPETITIVE PRICES

THE ABILITY TO SHOP WHEN AND WHERE

YOU WANT

SUPPORT FOR THE LIFE OF YOUR PRODUCTS

13
 INTRODUCTION
DIAGNOSIS
BEST BUY HAS A RENEW BLUE

PROMISING MULTI-CHANNEL PLATFORM

U.S. DIGITAL CHANNEL IN FY12

Traffic: 1 Billion
70% of customers do research on
bestbuy.com before buying in our
stores
Revenue: $2.3 Billion

of bestbuy.com orders are picked up

40% in stores
U.S. PHYSICAL STORES IN FY12

Traffic: 600 Million

of pick-up orders result in additional
Revenue: $35 Billion
15% purchase

14
 INTRODUCTION
DIAGNOSIS
KEY OPERATING METRICS HISTORICALLY RENEW BLUE

AMONG HIGHEST IN INDUSTRY

REVENUE PER SQUARE FOOT OPERATING INCOME PER SQUARE FOOT
(trailing four quarters) (trailing four quarters)

Costco $1,140 $36

$852 Costco $32

Walmart $444 Home Depot $31

Home
$305 Walmart $26
Depot

Target $303 Target $22

Lowe's $258 Lowe's $19

SOURCE: Most recent four quarter revenue and operating income per Thomson First Call. Peer square footage per Bloomberg.
15
 INTRODUCTION
DIAGNOSIS
RENEW BLUE

BEST BUY‟S PERFORMANCE

HAS
UNSATISFACTORY
BEEN

16
 INTRODUCTION
DIAGNOSIS
BEST BUY HAS BEEN SLOW TO RESPOND TO RENEW BLUE

CHANNEL AND CATEGORY SHIFTS

BEST BUY U.S. MARKET SHARE

17.0% 15.5%
(30 bps) (50 bps) (70 bps)

FY10 Channel Mix Product Mix Share Loss FY12

SOURCE: NPD, Stevenson Traqline, Nielsen and internal analysis

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 INTRODUCTION
DIAGNOSIS
ONLINE IS RENEW BLUE

INCREASING ITS SHARE OF THE MARKET

INDUSTRY $160 $151 $159 $160

TOTALS*

Physica
SHARE l Stores
($ billion) (1.5%)

Online
+7.7%

ONLINE %
SHARE 15% 16% 17% 19%
*Excludes connections, services, digital content. Includes mobile phones, tablets, eReaders,
appliances, physical music/movies, gaming, notebooks/desktops, home theater and digital imaging.
SOURCE: NPD, Nielsen, Stevenson Traqline, internal analysis

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 BEST BUY HAS
BEEN SLOW TO
CAPTURE THE
ONLINE
OPPORTUNITY

Excludes connections, services, digital content. Includes mobile phones, tablets, eReaders, appliances, physical music/movies, gaming, notebooks/desktops, home theater and digital imaging.
SOURCE: NPD, Nielsen, Stevenson Traqline, Forrester, CEA, internal analysis

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 INTRODUCTION

BEST BUY‟S CUSTOMER SATISFACTION

DIAGNOSIS
RENEW BLUE

HAS IMPROVEMENT OPPORTUNITIES

CUSTOMER SATISFACTION RATINGS

100
In-Store
Retail Purchaser
90
Purchaser
80 Online
Dotcom
Purchaser
70 Online
DotcomShopper
Shopper
Non-Buyer
60 Retail Shopper
In-Store Shopper
Non-Buyer
Non-Buyer
50

40
Oct 11 Jan 12 Apr 12 July 12 Oct 12

SOURCE: Internal survey data. n=80,000 (monthly average)

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 INTRODUCTION
DIAGNOSIS
AND WHILE BEST BUY RENEW BLUE

LEADS THE COMPETITION ON MOST KEY ATTRIBUTES...

0% 100%

OFFERS THE LATEST PRODUCTS AND

SERVICES IN ONE PLACE

PROVIDES EXPERT, UNBIASED ADVICE

HAS SIMPLE STRAIGHTFORWARD PRICING

Best Buy
HAS CONVENIENT SHOPPING OPTIONS Competitor 1
Competitor 2
Competitor 3
PROVIDES THE SUPPORT I NEED EVERY
STEP OF THE WAY

SOURCE: Marketing Evolution Brand Tracker, July 2012. n=2,700 for Best Buy and minimum of 500 per competitor brand.
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 INTRODUCTION
DIAGNOSIS
...BEST BUY NEEDS TO RAISE THE BAR IN ITS RENEW BLUE

RELATIONSHIP WITH CUSTOMERS

0% 100%

ALWAYS DELIVER ON WHAT THEY PROMISE

Best Buy
I KNOW WHAT THEY STAND FOR AND WHAT
MAKES THEM DIFFERENT Competitor 1

Competitor 2
SETS THE STANDARD FOR OTHER BRANDS TO Competitor 3
FOLLOW
Competitor 4
THERE IS NO OTHER BRAND QUITE LIKE THEM
Competitor 5

PEOPLE RAVE ABOUT HOW GREAT THE BRAND IS Competitor 6

SOURCE: Marketing Evolution Brand Tracker, July 2012. n=300 per brand.
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 INTRODUCTION
DIAGNOSIS
BEST BUY HAS A RENEW BLUE

PRICE PERCEPTION ISSUE

Walmart

Amazon

Target

Apple 43%

Lower than others About the same Higher than others No answer

SOURCE: Marketing Evolution Brand Tracker, n=2,804 FY13 Q2 Data

23
 INTRODUCTION

BEST BUY‟S OVERALL RETURN ON INVESTED

DIAGNOSIS
RENEW BLUE

CAPITAL (ROIC) IS UNSATISFACTORY

35%
Costco

Walmart
25%
20%
Home Depot

10%
Amazon

Target

0%
-4 years -3 years -2 years -1 year
years Most Recent Fiscal Year

SOURCE: Peer financials per Thomson Reuters Checkpoint. Peer ROIC calculated using Best Buy‟s methodology as disclosed in the supplemental non-GAAP
reconciliation available at www.investors.bestbuy.com.
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 INTRODUCTION
DIAGNOSIS
BEST BUY‟S ROIC DECLINE DRIVEN BY RENEW BLUE

DECREASING MARGINS AND INCREASING CAPITAL

BEST BUY ROIC 4.2%

3.6% 3.6% 3.6% 3.4% 3.3% NOPAT
(% of sales)
16.8%

11.1% 11.2% 11.1% 10.9% 11.1%

FY08 FY09 FY10 FY11 FY12 FY13
trailing
4Q*
$14.7 $16.1 $16.3 $15.9 $15.0
FY08 FY09 FY10 FY11 FY12 FY13 $10.0
trailing
Invested
4Q* Capital
($ billion)
FY08 FY09 FY10 FY11 FY12 FY13
trailing
4Q*

*Ending in Q2 FY13

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 INTRODUCTION
DIAGNOSIS
BEST BUY HAS RENEW BLUE

TWO MAIN PROBLEMS TO SOLVE

DECLINING COMPS DECLINING OPERATING MARGIN

1.9% 1.7% 5.9%

5.4% 5.6% 5.6%
4.8% 4.7%
U.S. U.S.
COMPS OPERATING
MARGIN

(1.3%) (1.6%)
(1.7%)
(2.1%)

FY08 FY09 FY10 FY11 FY12 FY13 FY08 FY09 FY10 FY11 FY12 FY13
trailing trailing
4Q* 4Q*

*Ending in Q2 FY13

26
RENEW
BLUE
27
 INTRODUCTION
DIAGNOSIS
RENEW BLUE

RENEW THE PREFERRED AUTHORITY AND DESTINATION

BLUE FOR TECHNOLOGY PRODUCTS AND SERVICES

Reinvigorate and Work with Continue leadership

rejuvenate the VENDOR PARTNERS role in positively
CUSTOMER to innovate and impacting
EXPERIENCE drive value OUR WORLD

Attract and inspire Increase ROIC for

LEADERS AND INVESTORS
EMPLOYEES

28
 INTRODUCTION
DIAGNOSIS
REINVIGORATE THE RENEW BLUE

ONLINE SHOPPING EXPERIENCE

TOP REASONS FOR IMPACT OPPORTUNITIES:

1.3%
9% NOT PURCHASING
FY12 Need more product info 2% • Improve consumer electronics
1 Conversion shopping tools / product content
90%
billion Product was unavailable 1% / recommendations
FY12 • Expand assortment
Price too high 1% • Be price competitive
Traffic
Need to see in person 1% • Diversify fulfillment
• Improve check-out flow
Nor available for store pickup 1%
Shipping will take too long 1%
Total Purchased Didn‟t Other
Digital Purchase But
Traffic Wanted To One point of conversion
rate improvement equals:
$250 MILLION
INCREMENTAL OPERATING
INCOME 29
 INTRODUCTION
DIAGNOSIS
DEVELOP A RENEW BLUE

WINNING ONLINE STRATEGY

Optimize shopping and commerce
flows to simplify, streamline, and
1 reduce abandonment

Build a world-class e-
Incent and reinforce desired
behaviors using the currency of
5 2 commerce platform

our rewards system MULTI-CHANNEL

EXPERIENCE

Enhance the experience with Enable Web 3.0

ubiquitous availability on any 4 3 personalization
device at any time

30
 INTRODUCTION
DIAGNOSIS
REINVIGORATE THE RENEW BLUE

IN-STORE SHOPPING EXPERIENCE

TOP REASONS FOR IMPACT OPPORTUNITIES:

NOT PURCHASING
600 40% Need more product info 4% • Enhance in-stock performance
million • Implement holiday price match
FY12 Price too high 4% • Develop multi-channel sales
Traffic • Enhance in-store pickup
19% Poor selection 3% • Train and incent Blue Shirts
Conduct additional research 2%
41% Bad experience with employee 2%

Total Store Purchased Didn‟t Other

Traffic Purchase But One point of close rate
Wanted To improvement equals:
$200 MILLION
INCREMENTAL OPERATING
INCOME
31
 INTRODUCTION
DIAGNOSIS
TURN THE TABLES ON SHOWROOMING: RENEW BLUE

PRICE MATCH

32
REDESIGNING THE
SHOPPING EXPERIENC

E
33
 INTRODUCTION
DIAGNOSIS
EARLY RESULTS FROM RENEW BLUE

RICHFIELD PROTOTYPE

AUGUST AND SEPTEMBER

RESULTS

*Adjusted to exclude estimated impact from the closure of a nearby

store in June 2012

NOTE: “BEFORE” is FY12 and “AFTER” is FY13, except ROIC.

**”BEFORE” ROIC based on trailing 12 months ending May, 2012. “AFTER” ROIC is the projected FY16 rate.

34
 INTRODUCTION
DIAGNOSIS
EMBRACE SHOWROOMING: RENEW BLUE

BEST BUY PREMIUM BRANDS

35
 INTRODUCTION
DIAGNOSIS
EMBRACE SHOWROOMING: RENEW BLUE

VENDOR SHOWROOMS

36
 INTRODUCTION
DIAGNOSIS
EMBRACE SHOWROOMING: RENEW BLUE

REDLASER PARTNERSHIP

• In partnership with
eBay and PayPal
• One-click check out for
Best Buy products
• Geo-fencing capability
offering deals when in
Best Buy store

37
 INTRODUCTION
DIAGNOSIS
DEPLOY A BROAD SET OF RENEW BLUE

SOLUTIONS AND SERVICES

• Consultation
• Financing
PURCHASE • Leasing
• Delivery
ACTIVATE • Installation
• Activation
• Problem resolution
USE • Classes
• Calibration
• Warranty
PROTECT • Security services
• Protection
• Data transfer
• Trade-in
REPLACE • Recycle
• Upgrade services 38
 INTRODUCTION
DIAGNOSIS
GROW COMPARABLE SALES RENEW BLUE

THROUGH RETAIL EXCELLENCE

COMP PERFORMANCE VS. MEDIAN ACTIONS:

5% • Establish robust, objective store assessment

process
Stores with highest • Tighten accountability
employee engagement • Implement rigorous training and coaching
• Introduction of team-based incentives for all sales
employees

Stores with lowest 200 basis points of

employee engagement incremental comp equals:
(2%)
$150 MILLION
INCREMENTAL OPERATING INCOME

39
 INTRODUCTION
DIAGNOSIS
IMPROVE SCHEDULING RENEW BLUE

TO DRIVE INCREASED REVENUE

CLOSE RATE BY DAY OF WEEK

45%
Raising
Saturday/Sunday to
reduce gap vs. weekday
40%
CLOSE levels by half equals:
RATE
35%
$150 MILLION
INCREMENTAL OPERATING INCOME

30%
Monday Tuesday Wednesday Thursday Friday Saturday Sunday

40
 INTRODUCTION
DIAGNOSIS
ENHANCE STORE RENEW BLUE

MARGIN THROUGH
SPACE OPTIMIZATION

OPPORTUNITIES:

• Increase space allocated to growing/more profitable

categories
• Reduce or restructure space allocated to other
categories, e.g., entertainment

Store restructuring
could lead to:
$200 MILLION
INCREMENTAL OPERATING INCOME

Sketch of Best Buy space allocation, created by Hubert Joly 41

 INTRODUCTION
DIAGNOSIS
OPTIMIZE COST STRUCTURE RENEW BLUE

U.S./Canada/Mexico FY12 Actuals

($ billion)

$8.5 $40.8
$32.3

Cost of Goods Sold Selling, General & Administrative Total Costs

42
 INTRODUCTION
DIAGNOSIS
OPTIMIZE RENEW BLUE

COST OF GOODS SOLD

U.S./Canada/Mexico FY12 Actuals
OPPORTUNITIES:
($ billion)

$8.5 $40.8 • Optimize returns

• Increase private label penetration
$32.3 • Improve logistics
• Optimize assortment and terms

Impact of 1% reduction in
cost of goods sold:
$325 million
INCREMENTAL OPERATING INCOME
Cost of Goods Selling, General Total Costs
Sold & Administrative

43
 INTRODUCTION
DIAGNOSIS
REDUCE RENEW BLUE

SELLING, GENERAL & ADMINISTRATIVE

U.S./Canada/Mexico FY12 Actuals
OPPORTUNITIES:
($ billion)

$8.5 $40.8 • Streamline organization

• Eliminate non-strategic activities
$32.3 • Improve efficiencies
• Manage demand
• Optimize IT spend
• Consolidate and competitively bid
spend
Impact of 5% reduction
in SG&A:
Cost of Goods Selling, General Total Costs $400 million
Sold & Administrative INCREMENTAL OPERATING INCOME

44
 INTRODUCTION
DIAGNOSIS
IMPLEMENT REAL ESTATE RATIONALIZATION STRATEGY: RENEW BLUE
1. ADDRESS LOWER PERFORMING STORES

FOUR-WALL ROIC FOR U.S. LARGE FORMAT

STORES
10% -
< 0% 0% - 10% 20% + TOTAL
20%
6+ years 3 21 60 213 297
YEARS UNTIL 4 - 6 years 1 11 51 200 263
LEASE END
2 - 4 years 0 3 31 246 280 71%
0 - 2 years 0 2 13 177 192

TOTAL 4 37 155 836 1,032

64 STORES 45
 INTRODUCTION
DIAGNOSIS
IMPLEMENT REAL ESTATE RATIONALIZATION STRATEGY: RENEW BLUE
2. RATIONALIZE FOOTPRINT AT MARKET LEVEL

TWIN CITIES EXAMPLE

(excludes impact of remodels)
FY12 FY16E CHANGE

# of Large Format Stores 24 20 (4)

# of Best Buy Mobile Stores 4 13 +9

Revenue per Sq. Ft. $730 $875 +20%

Operating Income per Sq. Ft. $75 $90 +20%

ROIC 26% 29% +300 bps

46
 INTRODUCTION
DIAGNOSIS
SUMMARY OF RENEW BLUE

OPERATIONAL IMPROVEMENT OPPORTUNITIES

Close Rates $450
RETAIL Store
$300
Performance
EXECUTION
($ million) Space Redesign $200

Premium Brands TBD

OPERATING Services TBD

INCOME
Cost of Goods Sold $325
(including Supply Chain)
COST
($ million)
Selling, General & $400
Administrative

47
 INTRODUCTION
DIAGNOSIS
THROUGH RENEW BLUE, BEST BUY EXPECTS RENEW BLUE

TO INCREASE OPERATING INCOME AND ROIC

OPERATING MARGIN ROIC

5-6% 13-15%

11.1%
4.2%

FY13 trailing 4Q* FY 20XX FY13 trailing 4Q* FY 20XX

*Ending in Q2 FY13

48
 INTRODUCTION
DIAGNOSIS
TARGETS ARE IN LINE WITH RENEW BLUE

THE AVERAGE OF OTHER RETAILERS

OPERATING MARGIN ROIC

Home Depot 10.1% Costco 15.8%

Target 7.4% Home Depot 14.8%

Lowe's 6.4% Walmart 14.4%

Walmart 5.9% Best Buy Renew Blue 13-15%

Best Buy Renew Blue 5-6% Best Buy 11.1%

Best Buy 4.2% Target 10.2%

Costco 2.8% Lowe's 8.3%

Amazon 1.2% Amazon 5.9%

SOURCE: Peer financials per Thomson Reuters Checkpoint. Peer ROIC calculated using Best Buy‟s methodology as disclosed in the supplemental non-GAAP
reconciliation available at www.investors.bestbuy.com. Data reflects most recent four quarters.

49
 INTRODUCTION
DIAGNOSIS
RENEW BLUE

RENEW THE PREFERRED AUTHORITY AND DESTINATION

BLUE FOR TECHNOLOGY PRODUCTS AND SERVICES

Reinvigorate and Work with Continue leadership

rejuvenate the VENDOR PARTNERS role in positively
CUSTOMER to innovate and impacting
EXPERIENCE drive value OUR WORLD

Attract and inspire Increase ROIC for

LEADERS AND INVESTORS
EMPLOYEES

50
 INTRODUCTION
DIAGNOSIS
WE HAVE RENEW BLUE

TWO PROBLEMS TO SOLVE

PROBLEM #1 DRIVEN BY SOLUTIONS

• Channel shift • Reinvigorate and rejuvenate

NEGATIVE • Product mix shift customer experience
• Online
• Customer satisfaction

COMPS • Price perception • In-store

• Multi-channel
• Price match
• Retail execution

51
 INTRODUCTION
DIAGNOSIS
WE HAVE RENEW BLUE

TWO PROBLEMS TO SOLVE

PROBLEM #2 DRIVEN BY SOLUTIONS

• Declining comps • Reinvigorate and
DECLINING • Price competition rejuvenate customer experience
• Brand identity
• Inability to get fully
MARGINS •
compensated for value
Rising costs
• Differentiation
• Premium brands
• Services/membership
• Work with vendor partners to
innovate and drive value
• Increase efficiency/take costs out

52
 INTRODUCTION
DIAGNOSIS
INVESTMENT THESIS RENEW BLUE

1 Market leader in growing, fragmented market

2 Unique platform to deliver a multi-channel shopping and customer experience

Significant operational opportunities to enhance returns through improved execution and cost
3
reduction opportunities

4 Opportunity to rejuvenate the customer experience and the company as the preferred authority
and destination for technology products and services

5 Ability to stabilize and then improve comps and operating margin, with strong cash flow generation

6 Results-focused management team committed to delivering improved performance

53
RENEW
BLUE
54
THANK
YOU
55