Best Buy : Presentation Materials PDF (19.22 MB)

FY22 Results and Investor Update

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8:00 a.m.

Agenda (ET)

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9:30 a.m. (ET)

FY22 results and FY23 outlook

Strategic setup and membership

Omnichannel

Best Buy Health

Financial discussion

Break

Q&A

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This presentation includes non-GAAP financial measures, such as non-GAAP operating income, non-GAAP operating income rate, non-GAAP diluted earnings per share ("EPS"), non-GAAP EPS growth, non-GAAP return on investment ("ROI"), non-GAAP gross profit rate, non-GAAP SG&A expense and free cash flow. These non-GAAP financial measures are provided to facilitate meaningful year-over-year comparisons, but should not be considered superior to, as a substitute for, and should be read in conjunction with, the GAAP financial measures for the periods presented. Definitions and reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, and an explanation of why these non- GAAP financial measures are useful, can be found in the attached supporting schedules entitled 'Non-GAAP Reconciliation.'

This presentation also includes estimates of future non-GAAP operating income, non-GAAP operating income rate, non-GAAP effective tax rate, future non-GAAP diluted EPS and future non-GAAP ROI, which are forward-lookingnon-GAAP financial measures. The company is unable to provide reconciliations of these forward-lookingnon-GAAP financial measures to the most directly comparable GAAP financial measures without unreasonable. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as restructuring charges; price-fixing settlements; goodwill impairments; gains and losses on investments; intangible asset amortization; certain acquisition-related costs; and the tax effect of all such items. Historically, the company has excluded these items from non-GAAP financial measures. The company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, "non-GAAP adjustments"). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business or reaching settlement of a legal dispute, are inherently unpredictable as to if or when they may occur. For the same reasons, the company is unable to address the probable significance of the unavailable information, which could be material to future results.

This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect management's current views regarding future financial conditions, results of operations, business initiatives, growth plans, operational investments and prospects of the company as well as industry trends and consumer behavior. These statements use words such as "believe," "assume," "estimate," "outlook," "opportunities," "expect," "potential," "continues," "may," "will," "should," "could," "seek," "project," "predict," "intend," "plan," "anticipate", and other words and terms of similar meaning. They are subject to 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 to differ materially from those contained in such statements are: the duration and scope of the COVID-19 pandemic and its resurgence and the impact on demand for our products and services, levels of consumer confidence and our supply chain; the effects and duration of steps we have taken and will continue to take in response to the pandemic, including the implementation of our interim and evolving operating model; actions governments, businesses and individuals have taken and will continue to take in response to the pandemic and their impact on economic activity and consumer spending; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; competition (including from multi-channel retailers, e-commerce businesses, technology service providers, traditional store-based retailers, vendors and mobile network carriers); our expansion strategies; our focus on services as a strategic priority; our reliance on key vendors and mobile network carriers; our ability to attract and retain qualified employees; changes in market compensation rates; risks arising from statutory, regulatory and legal developments; macroeconomic pressures in the markets in which we operate; failure to effectively manage our costs; our reliance on our information technology systems; our ability to prevent or effectively respond to a privacy or security breach; our ability to effectively manage strategic ventures, alliances or acquisitions; our dependence on cash flows and net earnings generated during the fourth fiscal quarter; susceptibility of our products to technological advancements, product life cycle preferences and changes in consumer preferences; economic or regulatory developments that might affect our ability to provide attractive promotional financing; interruptions and other supply chain issues; catastrophic events; health crises; pandemics; our ability to maintain positive brand perception and recognition; product safety and quality concerns; changes to labor or employment laws or regulations; our ability to effectively manage our real estate portfolio; constraints in the capital markets or our vendor credit terms; changes in our credit ratings; any material disruption in our relationship with or the services of third-party vendors that source products outside of the U.S., including trade restrictions or changes in the costs of imports (including existing or new tariffs or duties and changes in the amount of any such tariffs or duties) and risks arising from our international activities. Please refer to the company's current SEC filings, including its most recent Form 10-K, and subsequent filings on Form 10-Q for more information on these risks and uncertainties. Best Buy cautions that 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.

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Chief Executive Officer

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