Best Buy Co., Inc. · NYSE:BBY
Best Buy — Investor Day (October 2008)
101 slides from Best Buy's investor day presentation, Oct 14, 2008
Slide 1: Best Buy International Strategic Update
Best Buy International Strategic Update October 14, 2008 Chicago, IL
Slide 2: Safe Harbor Forward-Looking and Cautionary Statements
2 Safe Harbor Forward-Looking and Cautionary Statements: This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the U.S. Securities Act of 1933 and Section 21E of the Securities Exchange Act
Slide 3: Today's Agenda
3 Today’s Agenda Best Buy International Strategic Update Evolution of Carphone’s Retail Model Best Buy Mobile Overview European Marketplace & Opportunity U.K. Launch Strategy & Goals Current U.S. Strategies Q&A Session
Slide 4: Robert Willett, Chief Executive Officer, Best Buy International
4 Robert Willett Chief Executive Officer Best Buy International Enterprise Chief Information Officer Chairman, Best Buy Europe
Slide 5: World's Largest Consumer Electronics Retailer
5 1,036 United States – Best Buy – Magnolia Audio Video – Pacific Sales Kitchen & Bath Centers 185 Canada – Future Shop – Best Buy 162 China – Five Star Appliance – Best Buy China 2,415 Europe – The Carphone Warehouse – The Phone House Multiple Web Sites and Call Centers Source: Numbers are as at th
Slide 6: Sales Growth & Operating Profitability
6 Sales Growth & Operating Profitability 8.3 10.1 12.5 15.2 17.7 20.9 24.6 27.4 30.8 35.9 40.0 3.5% 4.3% 4.0% 5.1% 4.8% 5.3% 5.3% 5.3% 5.6% 2.0% 5.4% F98 F99 F00 F01 F02 F03 F04 F05 F06 F07 F08 Revenue Operating Profit Rate Source: Company public filings -- in U.S. billions -- CAGR ~17.0 % Historica
Slide 7: The Quest For Value
7 The Quest For Value 17% 16% 19% 20% 22% 21% 20% F02 F03 F04 F05 F06 F07 F08 ROIC (Non-GAAP) Source: ROIC obtained via company public filings. We Produce An ROIC Among The Highest In The U.S. Retail Industry
Slide 8: What Are The Strategic Issues Facing Best Buy?
What Are The Strategic Issues Facing Best Buy?
Slide 9: What Are The Strategic Issues Facing Best Buy?
9 What is the next source of top-line growth? What am I famous for in each brand? What do my brands stand for today and tomorrow? Which innovations are important for me to respond to? How do I build relationships with customers across each brand? How can technology help me? How do I run a cost effec
Slide 10: The Enterprise Growth Imperative
10 The Enterprise Growth Imperative Agenda We have to increase our momentum and focus to meet shareholder expectations – this is the context for international $20 $40 $80 F2003 F2008 F2013 Growth Goal: Double in 5 Years -- in U.S. billions --
Slide 11: What Are Our Strategic Responses?
What Are Our Strategic Responses?
Slide 12: We're Differentiating Through Co-Creation, Services, Solutions
12 Product and Exclusive Brand Format / Channel Geographic Reach US Canada Europe Global Extension Channel Extension Mass Products Private Label: Insignia, Rocketfish Newchannels.com Core Format New formats e.g. Five Star BBYMobile Call Centers Magnolia Future Shop Range Extension China Solutions Se
Slide 13: The WHAT – Our Growth Agenda
13 The WHAT – Our Growth Agenda Objectives · To be #1 in the market for customer experience. · To achieve the highest market share in the local markets we serve. · To be the #1 place to work. · To produce the highest level of operating profit in the local market over time. · To be the partner of cho
Slide 14: The WHAT – The Co-Creation Experience
14 The WHAT – The Co-Creation Experience Install Repair Research Contact Store Pickup Home Shipment Home Delivery Order Management Online Sites Call Centers Kiosks Stores Service Commerce Experience Shop Fulfill Schedule Sign Up Learn Customer Subscriptions 1. Mass 2. Targeted 3. Personalized 4. Co-
Slide 15: The HOW - A Balanced Big Box Portfolio Over 5 Years
15 United States Fcst Count: 1,400 Canada Fcst Count: 200 - 250 China 5-10 NSOs Fcst Count: 250 - 300 Mexico 1-2 NSOs Fcst Count: 60 - 80 Europe 1-3 NSOs Turkey 1-2 NSOs The HOW - A Balanced “Big Box” Portfolio Over 5 Years Fcst Count: 100 - 200
Slide 16: Canada & China Learnings
16 Canada & China Learnings Canada Focus management attention around CORE / OPTIMIZE / TRANSFORM Dual brands strategy. Keeping brands distinct is essential Utilize private label to improve margins and differentiation Shared infrastructure and capabilities Build international leadership team China Fo
Slide 17: Assessing And Analyzing Markets
17 Market Screening Factors Retail Market Cultural Competitive and Distributive Economic and Socioeconomic Financial Rate of Technology Adoption CE Market Size and Growth Assessing And Analyzing Markets Market screening permits management to identify a small number of desirable markets based on macr
Slide 18: International Leadership Team
18 International Leadership Team Charles Dunstone CEO Carphone Warehouse Roger Taylor CFO Carphone Warehouse David Berg COO International John Noble CFO International Neville Roberts CIO International Marise Kumar CCEO International Todd Soller CIO Domestic Shawn Score Pres. BBY Mobile Dan Currie SV
Slide 19: Organizational Structure
19 Organizational Structure Best Buy International Carphone Warehouse Best Buy Mobile Best Buy Europe “Big Box” Services Marketing and Public Relations Finance Real Estate Merchandising, Supply Chain, Information Technology Human Resources, Legal, Governance China BBY, Five Star & Geek Squad Mexico
Slide 20: Summary
20 Summary • We believe our strategy of customer centricity has the flexibility to travel well internationally • We are excited about the European growth opportunity in terms of market size and the potential for the returns we’re seeking • We’re learning from those who have gone before us, and from
Slide 21: Charles Dunstone, CEO, The Carphone Warehouse Group
21 Charles Dunstone CEO, The Carphone Warehouse Group
Slide 22: Creating a wireless world
22 Creating a wireless world Launching Wireless White City and beyond
Slide 23: Customers live in a wireless world
23 Customers live in a wireless world I can talk and text anywhere I can communicate and enjoy content on any device anywhere Talk, text, IM, email Music, video, games Phones, UMPCs, laptops, gaming consoles etc. Fixed BB with WiFi, mobile BB
Slide 24: What if we could do the same to laptops as mobile phones?
24 What if we could do the same to laptops, as we have to mobile phones?
Slide 25: Wireless Camp for 7,000+ people
25 Wireless Camp for 7,000+ people
Slide 26: 41% YOY broadband growth
26 41% YOY broadband growth 0 5,000 10,000 15,000 20,000 25,000 Wk01 Wk02 Wk03 Wk04 Wk05 Wk06 Wk07 Wk08 Wk09 Wk10 Wk11 Wk12 Wk13 Wk14 Wk15 Wk16 Wk17 Wk18 Wk19 Wk20 Wk21 Wk22 BEL FRA GER IRE NET POR SPA SWE UK Broadband connections, by fiscal week
Slide 27: 10% share of U.K. laptop market
27 0 2,000 4,000 6,000 8,000 10,000 W k 0 1 W k 0 2 W k 0 3 W k 0 4 W k 0 5 W k 0 6 W k 0 7 W k 0 8 W k 0 9 W k 1 0 W k 1 1 W k 1 2 W k 1 3 W k 1 4 W k 1 5 W k 1 6 W k 1 7 W k 1 8 W k 1 9 W k 2 0 W k 2 1 W k 2 2 BE FR GER IE NL PT SP SW UK 10% share of U.K. laptop market Units of laptops sold, by fi
Slide 28: Increasing propensity to trade up
28 Webbook Fujitsu- Siemens Toshiba Sacramento 15SP Toshiba New Orleans 15S Toshiba Hampton 10S Acer Aspire 5315 Increasing propensity to trade up Laptop trade-up, % 2 23 Wk 2 Wk 22 By calendar week
Slide 29: Improving accessories penetration
29 Improving accessories penetration Accessories attach, % 2 38 Wk 2 Wk 22
Slide 30: Doing to laptops what we did to mobile phones
30 • Free or competitively priced laptop was top reason to buy at CPW • 68% of broadband and laptop customers said it was "very important" that their mobile phone came with a laptop • 33% of broadband and laptop customers had not actually intended to buy a laptop but did • 64% of people intending to
Slide 31: Now entering stage of our evolution
31 Now entering stage 3 of our evolution Internet Anywhere Email Anywhere Music Anywhere TV Anywhere Talk Anywhere Stream 1: Trade Wireless Now Focus for growth in 2008/09; becomes part of BAU Stream 2: The Wireless World Pilot in 2008/09 for roll out in 2009/10 & INSURANCE ADDITIONAL SERVICES AND B
Slide 32: Creating a wireless world: Launching Wireless White City
32 Creating a wireless world Launching Wireless White City and Beyond
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Slide 34: Extended laptops and peripherals
34 Extended laptops and peripherals
Slide 35: All phones, with hero BlackBerry and smart phone display
35 All phones, with hero BlackBerry and smart phone display
Slide 36: TV and music
36 TV and music
Slide 37: Geek Squad, content & solutions
37 Geek Squad, content & solutions
Slide 38: Digital TV and broadband
38 Digital TV and broadband
Slide 39: Gaming
39 Gaming
Slide 40: Rolling out Wireless World
40 Rolling out “Wireless World” White City + 4 pilot stores Web, Direct, up to 50 Wireless stores Best Wireless components in many stores
Slide 41: Jude Buckley and Shawn Score, Best Buy Mobile
41 Jude Buckley Chief Merchant and Marketing Officer, Best Buy Mobile Shawn Score President, Best Buy Mobile
Slide 42: Americans thought there had to be a better way to buy a mobile phone
42 of Americans thought there had to be a better way to buy a mobile phone.
Slide 43: Joint Venture Lessons
43 Joint Venture Lessons Culture and values Brand Big box expertise Traffic Reward Zone Employee Engagement Consumer electronics vendor relationships Geek Squad Operating model Small box expertise Commercial terms After-sales support/repairs Walk Out Working offer Global vendor relationships Trainin
Slide 44: Walk Out Working
Walk Out Working Walk Out Working” Our Walk Out Working™ service provides Geek Squad’ setup and personalization on purchases of BlackBerry”, Windows Mobile® and Palm® smart phones, andall GPS receivers. It's only #29.99 with 2-year activation (regularly *49.99) SAVE *20.
Slide 45: Unique Handset Selection
45 Unique Handset Selection BlackBerry Storm BlackBerry Bold Apple iPhone Samsung Instinct
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Slide 48: DVD Movie Best Buy Mobile Story
48 DVD Movie Best Buy Mobile Story
Slide 49: Net Promoter Score (NPS)
49 51% 54% 30.0% 40.0% 50.0% 60.0% Oct FY08 Nov FY08 Dec FY08 Jan FY08 Feb FY08 Mar FY09 Apr FY09 May FY09 Jun FY09 Jul FY09 Source: company internal data Net Promoter Score (NPS)
Slide 50: A Tale of Two Experiences
50 A Tale of Two Experiences Before: • A few New York test stores • Negative comparable store sales in U.S. mobile phones • Market share of 1-2% in the category • No power with vendors Now: • Nearly 1,000 Best Buy Mobile locations • Nearly triple-digit comparable store sales • Market share of ~4%, g
Slide 51: David Berg, Chief Operating Officer, Best Buy International
51 David Berg Chief Operating Officer Best Buy International Board Member Best Buy Europe China JV Best Buy Children’s Foundation
Slide 52: Why Europe? Why A Partner?
52 Why Europe? Why A Partner?
Slide 53: Rationale For European Expansion
53 We wanted to expand to Europe because: – Europe is a huge market; combined GDPs of EU countries is greater than the GDP of the U.S. – Diversification and benefits from purchasing, sourcing, best practices, brand power We want to expand to Europe now because: – Current lack of a consistent, custom
Slide 54: Rationale For A Partner: The Carphone Warehouse
54 We wanted to go to Europe with a partner because: – Local experience and expertise is critical for success in European retail – Accelerates and de-risks entry and expansion in an important but challenging market The Carphone Warehouse is the best partner because: – Our deep and longstanding relat
Slide 55: An Opportunity To Leverage Our Complementary Strengths
55 An Opportunity To Leverage Our Complementary Strengths Relative Competencies Key Competencies and Capabilities Combined Big Box Expertise . . . Small Box Expertise . . . Sourcing . . . Merchandizing Expertise . . . Vendor Relationships . . . Acquisition / Integration Expertise . . . Financial Ser
Slide 56: Two Continents, Two Teams, One Culture
56 Innovative High energy Employee focused Can do Optimistic Customer focused Passionate Organic Best Buy cheer Chalk- talk Passionate, organic Hurricane Katrina Blue shirts Geek Squad Best practice driven Inclusive relationships American dream Work hard, play hard Ready to change the world 6K start
Slide 57: A Comparison of Europe and U.S.
A Comparison of Europe and U.S.
Slide 58: Comparison of U.S. and Europe
58 Key considerations for Best Buy Europe will be store size and location, as Europeans drive less and are less accustomed to out of town shopping than US shoppers. Comparison of U.S. and Europe Sources: Euromonitor, Economic Intelligence Unit, CIA World Factbook, Datamonitor, US Census, CBS News Re
Slide 59: Competitive Landscape: Key European Competitors
60 Competitive Landscape Overview of Key European Competitors European CE Market Position #1 #2 #3 # of Countries 15 15 12 # of Stores 702 1,369 692 LFY Revenue (£mm) £11,711 £8,546 £4,513 5-Year Revenue CAGR (%) 12.3% 7.3% 7.7% LFY EBIT (£mm) £420 £194 £139 LFY EBIT Margin (%) 3.6% 2.3% 3.1% Averag
Slide 60: What Is The Approach To Seizing The Opportunity?
61 What Is The Approach To Seizing The Opportunity?
Slide 61: Customer Centricity | Secret Sauce
62 Invite Employee Ideas Honor Unique Customers Provide End-to-End Solutions Customer Centricity | “Secret Sauce”
Slide 62: Customer Centricity Market Entry Methodology
63 Customer Centricity Market Entry Methodology 1. Identify customers’ unmet needs and competitive landscape 2. Identify customer value segments 3. Sort by domain 4. Create unique customer value propositions 5. Align store operating/customer model
Slide 63: What Are Consumers Telling Us?
What Are Consumers Telling Us?
Slide 64: Consumer Views of European Competitors
65 Everything is so wired you can’t touch it or you’ll set an alarm off Consumer Views of European Competitors Some Major Retailers Have Damaged Consumer Confidence In Shopping For Electronics Products stacked in boxes Products chained to bench or behind glass Products crammed together Security guar
Slide 65: Bring The Connected World To Our Customers
66 .And Bring The Connected World To Our Customers “ personalized offers of subscription services bundled for my needs and budget, not just what the providers want to sell to me” “ fast and easy subscription services availability, qualification, activation, and scheduling process available where and
Slide 66: The Global Opportunity
67 ~$175 B ~$160 B ~$80 B ~$17 B NewCo < 3% Share BBY ~ 21% Share Dual Brand ~ 1% Share Dual Brand ~ 35% Share CE Market Source: Verdict, Mintel, Euromonitor, OC&C analysis, and internal data The Global Opportunity
Slide 67: Roger Taylor, CFO, The Carphone Warehouse Group
68 Roger Taylor CFO, The Carphone Warehouse Group
Slide 68: What is Best Buy Europe?
69 What is Best Buy Europe?
Slide 69: European Electronics Market
70 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 U.K. France Germany Russia Italy Spain Turkey Poland 0% 5% 10% 15% 20% 25% Market Size 5-Yr Growth % (U.S. $ billions) European Electronics Market Source: internal company estimates
Slide 70: CAGR of 6% forecast in EU-5 to 2012
71 16,143 28,065 26,258 23,334 12,702 8,490 9,610 8,250 8,071 7,411 6,443 20,914 17,275 9,688 8,793 4,396 6,619 3,923 6,026 6,975 Decomposition of growth in EU-5 consumer electronics excluding mobile phones, 2007- 2012, £ millions * Includes downloads Source: Verdict, Euromonit or, Mintel 36% 18% 11
Slide 71: U.K. market to provide 5% CAGR to 2012
72 U.K. market to provide 5% CAGR to 2012 4,808 9,467 8,507 5,439 3,877 3,611 3,271 1,867 1,787 1,607 1,503 6,364 4,778 3,359 1,847 1,635 1,758 1,177 880 674 Decomposition of growth in UK consumer electronics excluding mobile phones, 2007-2012, £ millions CAGR 2002-07 % 34 -4 3 12 -2 9 7 2 22 10 CAG
Slide 72: The U.K. market is segmented between a wide variety of players
73 The U.K. market is segmented between a wide variety of players BROAD-BASED PLAYERS WITH ELECTRONICS DEPARTMENTS CATEGORY-SPECIALIST RETAILERS MULTI-CATEGORY CONSUMER ELECTRONICS RETAILERS MULTIPLE WEBSITES – FEW WITH CRITICAL MASS, e.g., * * * ONLINE PURE PLAYS DUAL-CHANNEL: PHYSICAL AND ONLINE I
Slide 73: Sales by channel in U.K.
74 Sales by channel in U.K. 2007, %, £ billions* 17 11 17 42 27 61 36 64 26 36 27 12 30 8 29 40 24 24 Televisions 29 2 Entertainment 4.8 Portable media 23 Other AV 26 Gaming SDAs 26 Photo 18 35** Mobile phones 23 28 48 39 33 33 20 19 18 13 12 8 In-car 36 Computing 4.8 1.2 1.8 3.4 1.6 1.8 1.0 4.3 0.7
Slide 74: Important difference between the U.K. & U.S. markets
75 ...which is an important difference between the U.K. & U.S. markets
Slide 75: Most major players are focused on the mass market
76 Most major players are focused on the mass market Proportion of electricals visitors by socio-demographic group, % 18 21 24 23 11 31 32 30 29 30 21 25 26 29 53 21 29 26 30 21 20 19 6 AB DE C1 C2 24 UK POPULATION 18 21 24 23 11 31 32 30 29 30 21 25 26 29 53 21 29 26 Less wealthy More wealthy
Slide 76: Price is a driver of loyalty, but service and quality are valued
77 Price is a driver of loyalty for most, but service and quality are highly valued when in evidence 8 5 5 41 17 Proportion of electricals loyals mentioning driver of loyalty, % 3 3 3 6 14 51 51 Price Range 40 Convenience Service Quality Layout Ambience Facilities 1 3 3 5 8 41 41 62 3 3 4 6 14 48 42
Slide 77: The New Role of the Experience
78 The New Role of the Experience Source: Accenture 2007 Customer Satisfaction Research Poor Quality of Service/Goods 45% Lower Price 35% Representative Knowledge 26% Custom Solutions 65% and Top Customer Reasons for Switching Providers 59% Customer Service/ Experience 55% Price 34% Product 34% Conv
Slide 78: Key elements of Best Buy in the U.K.
79 What are the key elements of Best Buy in the U.K.? The Connected World Family Interactivity Multi-channel After-sales Advice Personalisation Environment Convenience Specialists
Slide 79: The multi-channel imperative
80 The multi-channel imperative Best Buy’s U.S. multi-channel customers are its best customers – Multi-channel customers transact twice as much as single channel customers, spending 95% more and generating 80% more margin A multi-channel business model is an essential element to Best Buy’s growth st
Slide 80: Shifting channel spend
81 Shifting channel spend ~1/3 Of CE goods in Best Buy’s categories to be sold online by 2012 ~2/3 Of CE goods in Best Buy’s categories to be web-influenced by 2012 Web Purchased Store Purchased Web Influenced Source: Forrester’s October 2006, “US eCommerce: Five-Year Forecast And Data Over view”
Slide 81: U.K. online growth has outstripped the U.S.
82 U.K. online growth has outstripped the growth of the U.S. online business and looks set to continue Source: Management Ventures Inc. 2008 Online sales as a % of total retail sales 2000 - 2013
Slide 82: Geek Squad will be an integral element
83 Geek Squad will be an integral element Expert Support Expert Advice
Slide 83: Propositions supporting the full customer lifecycle
84 We are developing a full set of propositions to support the full lifecycle of customer needs Activate •B Maximise Protection • Help (inspire) me to buy the right things • Start my experience today • Dispose/ upgrade/ re-purpose • Teach me how to use it • Maximise my benefits • Protect my experien
Slide 84: European big box property market
85 European ‘big box’ property market • Generally, government planning policy in all EU markets continues to be protectionist to the town centres and inner cities, unlike the U.S. mall expansion • However, the pipeline of new retail park ‘big box’ space remains strong despite the economic slow down
Slide 85: Retail parks stock & pipeline until 2011
86 Retail parks >10,000m2 stock & pipeline until 2011 UK Netherlands Belgium Germany Spain Poland Austria Ireland Italy Portugal Sweeden Hungary CZ France 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Stock > 10,000m2 Pipeline > 10,000m2
Slide 86: Targeting rents of £25-40/sq. ft
87 We’re targeting rents of £25-40/sq. ft 0 10 20 30 40 50 60 70 80 90 100 0 100 200 300 400 500 600 700 800 900 1000 Number of Retail Parks Highest rent achieved by Sq. Ft
Slide 87: Property strategy
88 Property strategy • Stores to be 25-30,000 sq ft • Preferably “bulky goods” planning consent – up to 30% cheaper than “open A1” (no restrictions on products) • Geographically clustered at launch • No shortage of opportunities in present climate
Slide 88: Average store sizes of incumbents are 15-20k sq ft
89 Average store sizes of incumbents are 15-20k sq ft >30 >20-30 15-20 10-15 0-10 17,900 19,700 14,600 12,000 PC WORLD COMET CURRYS ARGOS AVERAGE STORE SIZE* sq ft BREAKDOWN OF OUT-OF-TOWN STORE SIZE* ‘000 sq ft, % *Gross size, includes warehousing Source: GOAD database, Trevor Wood associates datab
Slide 89: Larger stores expected to generate larger returns
90 .....larger stores are expected to generate larger returns U.K. first store expected to open: Summer 2009
Slide 90: Targeted expansion in Europe
91 Targeted expansion in Europe Summer 2009 ...then... ...moving towards... CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW T TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH CPW TPH
Slide 91: Company operating model
92 Company operating model Exec Operating Board Geek Squad Marketing / PR Finance Property HR IT / Supply Chain / BCF Legal / Governance Stores plus alternate channels Shared services
Slide 92: Typical store economics
93 Typical store economics • Based on a 30,000-sq-ft store • Sales/ sq ft £600-700 – 3-4 years’ maturity profile • Store margin 7%+ at maturity (net of marketing) • Central overhead ~2.0% of sales, longer term leverage • £2m capex per store, plus ~£1.5m working capital • Source: company internal dat
Slide 93: Short-term financial impact
94 Short-term financial impact • Start-up costs of up to £20m in current year and up to £30m in 09/10 • Small capex this year; up to £40m next year covering stores, IT and logistics, and multi channel strategy • All dependent on rate of new store openings Source: company internal data
Slide 94: Financial goals for BBY Europe
95 Financial goals for BBY Europe • Our goal is to double revenue and operating income between March 2008 and March 2013* • Base figures are £3.1bn ($5.6bn) and £175m ($315m), respectively* • Guidance includes Best Buy Mobile profit share but not its revenue • Post-tax ROIC on big box rollout antici
Slide 95: Revenue goal £6-7 billion @ 5% EBIT by 2013
96 £6-7 billion @ 5% EBIT by 2013 Revenue goal Source: internal company estimates
Slide 96: Brian Dunn, President and Chief Operating Officer, Best Buy
97 Brian Dunn President and Chief Operating Officer, Best Buy
Slide 97: The Company We Keep
The Company We Keep sony. _ Peakeasy é (SS Jpnciric sates = Cs (Cok) i G aM ) EEL : ss Ba = APPLIANCE Sty mobile your phone, your way al [sion TOSHIBA aay ForBusiness “Whirlpsot
Slide 98: The Company We Keep
99 The Company We Keep
Slide 99: Recap of our Strategic Update
100 Recap of our Strategic Update Carphone’s retail model continues to evolve Best Buy Mobile exemplifies our ability to work together successfully The European marketplace offers tremendous opportunity We plan to leverage what we learn across all of our markets We believe our strategy has global ap
Slide 100: Your Questions
101 Your Questions
Slide 101: Return on Invested Capital (ROIC)
102 Return on Invested Capital (ROIC) ROIC = NOPAT (as adjusted) Adj. avg. invested capital Operating Income + Net Rent Expense - Depreciation portion of rent - Tax Expense = NOPAT Total Equity + Long-term debt + Capitalized operating leases - Excess cash = Adj. avg. invested capital * Please refer