Best Buy Co., Inc. · NYSE:BBY
Best Buy — Corporate Update (November 2011)
13 slides from Best Buy's corporate update, Nov 7, 2011
Slide 1: Best Buy Strategic Announcements November 7, 2011
Best Buy Strategic Announcements November 7, 2011
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking and Cautionary Statements: This news release 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 o
Slide 3: Best Buy Accelerates Connections Strategy
Best Buy Accelerates Connections Strategy 3
Slide 4: Highlights
Highlights • Strategic changes to Carphone Warehouse plc (CPW) relationship – Purchasing CPW’s contractual interest in the U.S. and Canadian Best Buy Mobile profit-based management fee (profit share agreement) – Focusing Best Buy Europe on installed base of approximately 2,500 small box stores and o
Slide 5: Strategic Changes to CPW Relationship
Strategic Changes to CPW Relationship 5 1. Purchasing CPW’s interest in Best Buy Mobile profit share agreement – Enables Best Buy to capture all future profits on the Best Buy Mobile operations in U.S. and Canada, as well as the connections growth of all connectible devices – Leverage connectivity e
Slide 6: Expansion of Services Portfolio
Expansion of Services Portfolio 6 • Acquisition of mindSHIFT Technologies – A leading national provider of managed IT services for small and mid- sized businesses (SMB) – Purchase price approximately $167 million – Currently provides cloud services, data center services and professional services to
Slide 7: Financial Details of CPW Relationship Changes: Purchase of CPW's Interest in Profit Share Agreement
Financial Details of CPW Relationship Changes 7 Purchase of CPW’s Interest in Best Buy Mobile Profit Share Agreement • Purchase of the 50% interest in Best Buy Mobile profit share that currently flows to CPW through the Best Buy Europe venture • Fiscal 2012 Implication: – Purchase price: $1.3 billio
Slide 8: U.K. Big Box Store Closures and Restructuring Charges
8 U.K. Big Box Store Closures and Restructuring Charges • Closures expected to be completed by end of calendar year • Fiscal 2012 Implication: – Estimated pre-tax restructuring costs of $250 to $270 million; of this amount approximately $140 to $150 million (annual diluted EPS of approximately $0.28
Slide 9: Goodwill Impairment Charge
9 Goodwill Impairment Charge for Best Buy Europe • As a direct result of the purchase of CPW’s contractual interest in Best Buy Mobile, which is currently held within Best Buy Europe, and the closure of the big box U.K. stores, the company expects to record a non- cash write down of substantially al
Slide 10: Summary of Expected Financial Impact
Summary of Expected Financial Impact 10 • Excluding restructuring and one-time charges, accretive impact from purchase of Best Buy Mobile profit share agreement to fiscal 2012 results expected to be approximately $0.05 per diluted share Summary of Estimated Restructuring and One-Time Charges FY2012
Slide 11: Other Reporting Implications
Other Reporting Implications 11 Reporting of Discontinued Operations • Based on the planned closure of the U.K. big box pilot stores, coupled with restructuring activities announced last February around Turkey and China, Best Buy now expects to report all of these activities together as discontinued
Slide 12: Appendix
Appendix 12
Slide 13: About the Venture with Carphone Warehouse
About Best Buy Europe 13 • Best Buy Europe is a venture with Carphone Warehouse Group plc (CPW) formed in 2008 • Results are 100% consolidated by Best Buy, with 50% of Best Buy Europe net earnings flowing to CPW through the noncontrolling interest line item Current Structure 1. 2,500 small box store