Carmax Inc · NYSE:KMX
Carmax — Robert W. Baird & Co.'s 2009 Growth Stock Conference
17 slides from Carmax's conference presentation, May 13, 2009
Slide 1: Robert W. Baird & Co.'s 2009 Growth Stock Conference
Robert W. Baird & Co.’s 2009 Growth Stock Conference May 13, 2009 Tom Folliard President & Chief Executive Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management’s projections and estimates is contained in the CarMax, Inc. SEC filin
Slide 3: Largest Used Car Retailer in the U.S.
Largest Used Car Retailer in the U.S. CarMax currently has: 100 used car superstores 46 markets In FYE 02/28/09 CarMax sold: 345,465 used vehicles 194,081 wholesale vehicles
Slide 4: Unmatched Consumer Offer
Unmatched Consumer Offer Competitively low, no-haggle prices Huge selection Guaranteed quality Customer-friendly sales processes
Slide 5: Unique Culture
Unique Culture Founded on the principle of integrity Well-trained, engaged associates Culture recognized in wide variety of awards Fortune’s “100 Best Companies to Work For” 5 consecutive years 2008 International Torch Award for Marketplace Excellence by the Council of Better Business Bureaus 2009 T
Slide 6: Diversified Profit Base
Diversified Profit Base ( FYE 2/28/09) Percentages represent breakdown of gross profit dollars, including CAF income
Slide 7: What Happened in FY 2009
What Happened in FY 2009 Difficult economic conditions led to si g nificant drop in customer traffic Substantial increase in g as prices drove temporary shift in demand Si g nificant wholesale price depreciation throu g hout the fiscal year, followed by sharp increase at fiscal year end Credit crunc
Slide 8: What Happened to CarMax
What Happened to CarMax Record drop in used unit sales Si g nificantly increased CAF costs Unable to access the ABS market after July securitization
Slide 9: How CarMax Responded
How CarMax Responded Suspended store g rowth Reduced variable expenses Mana g ed inventory to level of sales Slowed warehouse utilization Completed a TALF-eligible securitization
Slide 10: Comparable Fiscal Year Results
$182.0 mm $ 59.2 mm Net earnings $2,731 $2,715 Gross profit / unit $8.20 bn $6.97 bn Revenue 3% (16)% Used unit comps FY2008 FY2009 Comparable Fiscal Year Results
Slide 11: Our Future Opportunity
Our Future Opportunity Competitive advantages Proprietary processes and systems Volume Flexibility Lon g -term g rowth potential
Slide 12: Slide 12
Slide 13: Two-Year Wholesale Price Changes
Two-Year Wholesale Price Changes (Source: NADA Auctions – Reported by ADESA Inc) The analysis is based on nearly seven million annual sales transactions from over 170 of the largest U.S. wholesale auto auctions, including those of ADESA as well as other auction companies. -1200 -1000 -800 -600 -400
Slide 14: Competitive Advantages
Competitive Advantages Volume Sell more used cars Monthly used unit sales/store CarMax = 335 (FY09) Public new car dealers = 46 (CY08) 24,000 used vehicle inventory Customer transfers represent over 25% of sales carmax.com and marketing efficiencies 70% of customers visit website first
Slide 15: Competitive Advantages
Competitive Advantages Flexibility Adaptable to chan g ed market conditions Ability to rapidly manage inventory and expenses Cost reduction opportunities SG&A Reconditioning initiatives
Slide 16: Our Future Opportunity
Our Future Opportunity Lon g -term g rowth potential Stores cover only 45% of population #1 seller of used cars, but only 2% market share for late model vehicles First or second purchase cycle in most markets Competitive advanta g es
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