Carmax Inc · NYSE:KMX
Carmax — Lehman Brothers 10th Annual Retail Conference 2007
22 slides from Carmax's conference presentation, May 1, 2007
Slide 1: Lehman Brothers Retail Conference
Exhibit 99.1 Lehman Brothers Retail Conference May 1, 2007 Joe Kunkel Senior Vice President, Marketing and Strategy
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: What is CarMax?
What is CarMax? How have we done? Where are we going?
Slide 4: What is CarMax?
What is CarMax? A unique and sustainable retail growth story with defensible competitive advantages
Slide 5: The CarMax Advantage
The CarMax Advantage ® Unique consumer offer Proprietary processes and systems Skilled, dedicated people Diversified profit base
Slide 6: Unique Consumer Offer
Unique Consumer Offer Low, no-haggle prices Huge selection carmax.com Customer-friendly service Ease of Shopping Peace of Mind Guaranteed quality
Slide 7: Consumer Recognition
Consumer Recognition 25+ Consumer awards in the last 2 years “Best of” San Antonio, Austin, Sacramento, Columbia, Atlanta BBB award for Business Ethics in Atlanta, central Indiana, central North Carolina and others 2 million cars sold as of December 2006
Slide 8: Proprietary processes and systems
Slide 9: Skilled, Dedicated Associates
Skilled, Dedicated Associates Three years running (2005 - 2007) THE CARMAX CULTURE Comprehensive, formal training in four functional areas Classroom and on-line training Mentoring
Slide 10: Diversified Gross Profit Contribution
10 Diversified Gross Profit Contribution
Slide 11: How have we done?
What is CarMax? How have we done? Where are we going?
Slide 12: Strong Results
33 Strong Results 2,000 4,000 6,000 8,000 $ in millions $ in millions Superstores Revenues Net Earnings * 6 yr CAGR = 15% 6 yr CAGR = 18% 6 yr CAGR = 28% * All years restated for SFAS 123R $2,758 $7,466 $45 $199
Slide 13: Strong Results – FY07
67 Strong Results – FY07 2,000 4,000 6,000 8,000 FY06 FY07 FY06 FY07 $ in millions $ in millions Superstores Revenues Net Earnings * * FY06 restated for SFAS 123R FY06 FY07 AGR = 15% AGR = 19% AGR = 49% $6,260 $7,466 $134 $199
Slide 14: Strong Results – FY07
Strong Results – FY07 Strong store and web traffic Continuous execution improvement Stable external economic and incentive environment
Slide 15: Where are we going?
What is CarMax? How have we done? Where are we going?
Slide 16: CarMax Lifecycle
CarMax Lifecycle Proven concept Restart growth Stop growth to refine model Start up Future 15-20% delivered annual store growth
Slide 17: Future Sources of Growth
Future Sources of Growth Store Expansion 80 stores today 40% of U.S. markets 15% - 20% new store openings Market Share Expansion 8% - 10% in strong markets 4-5 year purchase cycle
Slide 18: Long-Term Growth Plan
Long-Term Growth Plan Comp used unit growth: 4% - 8% New store openings: 15% - 20% Resulting FY12 revenue range: $15 - $20 Bn Sales Growth
Slide 19: CarMax Today
Salt Lake City Albuquerque Wichita Austin Kansas City Chicago Dallas Oklahoma City Birmingham Memphis Nashville Louisville Indianapolis Columbus Knoxville Hartford Richmond DC / Baltimore C’ville Greensboro Greenville Atlanta Las Vegas Milwaukee CarMax Today Nation’s largest used car retailer • 80 u
Slide 20: 2008 Projections
Omaha Milwaukee (2) Jackson 2008 Projections New store opening: 17% Comp used unit growth: 3% - 9% EPS growth: 12% - 24% Los Angeles (2) San Diego Tucson Modesto Newport News Baltimore Atlanta Charlotte Opened
Slide 21: What is CarMax?
What is CarMax? A unique and sustainable retail growth story with defensible competitive advantages
Slide 22: Slide 22
Carmax — Lehman Brothers 10th Annual Retail Conference 2007 on 6ix