BBYM FY09QRP

BBYM FY09QRP 3 Year Plan Overview Template / Alignment from our meeting last week Best Buy Mobile Confidential

QRP / 12 month plan purpose • Role / intent Best Buy Mobile Confidential

FY09 Overview • Objectives: • SWAS Scale • / Ramp Execution / Performance management • SAS • growth and op model refinement • Go to market strategy • Win Drive Times • Expand customer VPE’s • Rewards / Recognition • Communication plan • Organic growth in business • Upgrades • Regional Carriers • Incremental Subs • Aircards / Mobility integration • Reserve Rate • Attachments • Insurance • New Business (entertainment etc) • Recurring revenue Best Buy Mobile Confidential

SWAS Scale (Staudt/Suda) • Best Buy Mobile is a partnership between Carphone Warehouse & Best Buy whose goal is to grow wireless market share from the current level of 2% to 10% over 5 years by improving the current wireless purchasing experience for US consumers. • We will be converting 433 existing BBY stores to BBYM during Program 1 and 303 stores in Program 2. • Include Services/Geek New Postpaid Handset Tables BBYM Brand Wall/Accessories Sections Best Buy Mobile Confidential

SAS Growth (Damian/Kohout) • Exec Summary • Services/Geek Best Buy Mobile Confidential

Best Buy Mobile Council • Council is a selected group of Retail leaders to provide feedback for • Drive Times • Merchandising • Advertising • Product Assortment • Store Innovation • PSP, RZ, Service offerings • Several departments pioneered and mastered the Council program • In FY09 ALL store departments will have a council • How is the Council Selected • Applications will be published for a week starting January 25th • Applications will be evaluated by CST and GM of selected stores, based on department performance in Key areas Best Buy Mobile Confidential

Drive Times (Brian) • High level view of critical months / Weeks and financial impact of each • Show calendar (M.O.A.S? … pick a name) • Tech Tours • Events • Summit Best Buy Mobile Confidential

IPC Year at a glance Best Buy Mobile Confidential

Insert IPC Calendar Best Buy Mobile Confidential

Best Buy Mobile Training and Recognition Events Calendar Best Buy Mobile Confidential

Reserve Rate . Company Write Off will hit $20,000,000 fiscal ’07 - Our company write off % of sales is 6%, 7% in BBYM stores - Our goal in fiscal ’08 is 4%, projected savings of $8,000,000 - Training, Partnership with LP and Field Leadership will happen - Employee fraud is investigated with Field LP - Visibility and Timely Reporting to the Field - BBYM P&L is posted with Store, District and Territory Month End Results . Customer Experience will improve - September we will roll out Escape and POS combined - Customers will see improved billing, fast processing - Reserve Rate improvement with Family Plan/Add a Line Fix - Customer will return handset to store to cancel service - Two carriers live now, Sprint 4/1. Verizon- goal September live Best Buy Mobile Confidential

Expanded VPE’s (Brian) • Mike Samson / CST Summary of FY09 slated initiatives Best Buy Mobile Confidential

FY09 BBY Mobile MarketingYear-At-A-Glance Best Buy Mobile Confidential

Rewards / Recognition / Communications • Summary / Overview: Jones Best Buy Mobile Confidential

Organic growth in business • 1 slide for each • Include financial impact, customer need, timing, and high level implementation approach ( Test, communication, training, performance management, etc..) • Upgrades (Mike) • Aircards / Mobility integration (Mike) • Incremental Subs (Mike) • Regional Carriers (Mike) • Reserve Rate (Ed) • Attachments (Damian) • Insurance (Ed) • New Business (entertainment, PC, etc) / Damian • BBFB (Tom) Best Buy Mobile Confidential

Upgrades • Industry Facts • 78% of Americans have a wireless account • 75% of Customers stay with their carrier and upgrade, 17% are switchers • 66% of “loyal” customers upgrade through their carrier, only 10% upgrade through national retailers • 50% of switchers upgrade/change through carrier stores, only 15% purchase at national retailers • Customers want a better upgrade experience • “Why does a customer pay less for a phone than a loyal customer” • “Reward me for keeping my service with a great deal on a new phone” Best Buymust give customers a more compelling reason to shop at a national retailer for upgrades. Best Buy Mobile Confidential

subject to change after merchant FY09 deck is complete Upgrades • Upgrade FY’09 priorities • Upgrades will continue to become a larger part of the business in FY’09 • We will continue to grow our upgrade to new activations mix in FY’09 • New activations remain extremely important. We can’t comp down YOY, upgrades are an enabler of growth • Scale • Leverage customer promises • Informed and impartial advice – we can recommend the right handset, plan and carrier for customer’s needs. • New and improved store environment – Complete with program 2 in August • Better range of phones and network – Choice is a differentiator between us and our competition • Someone to be there for the life of your phone – Makes BBM shopping experience unique • Merchant • Bring visibility to upgrade business through advertising and promotions • Re-negotiate commissions with carriers to favor growing upgrade mix • Address customer request on pricing of new vs. upgrade handsets • Retail • Bring upgrades to life through training, communication, merchandising, events and drive times • Execute and performance manage upgrade tool lead generator • We are currently at 15% conversion in the infancy stage, we can be over 50% with the proper execution • Capitalize on store traffic • Training and relationships with CA team is paramount • .com / multi channel • Establish direct marketing rhythm (call center, email, mailers etc…) to invite customers into BBY • Maximize leads captured with upgrade tool and drive traffic back into store or fulfill through call center or other channel Best Buy Mobile Confidential

subject to change after merchant FY09 deck is complete Broadband Cards • Trends • 50% of broadband cards sold are attached to a laptop transaction • Attachment to laptops and overall ratio of broadband cards to laptops has been steadily increasing throughout FY’07 • Total broadband card unit sales have been ramping up consistently throughout FY’07 • Other facts • The computer labor department in store does not receive credit for broadband card sales • There is not a strong merchandising solution in the computer department for broadband cards • Promotional activity has been an enabler of attachment and awareness Sept Oct Nov Dec Jan Sept Oct Nov Dec Jan Best Buy Mobile Confidential

subject to change after merchant FY09 deck is complete Broadband Cards • Broadband Card FY’09 Priorities • Broadband Cards will continue to become a larger part of the business in FY’09 • Emerging technology (back half) • Embedded broadband cards within laptops • Currently not set up to sell and activate these cards • WIMAX data network launches • New hardware and improved data speeds • Enables wireless solution for home as well as mobile • Merchant • Marketing, advertising and promotions within BBM and computer space • Negotiate commissions on embedded cards • Retail • Develop improved merchandising solutions in BBM and computer labor departments • Resolve labor department reporting issues • Grow attachment rate and ratio to laptops • Bring technology to live through training, communication, events and drive times • .com / multi channel • Establish .com and call center direct ship solution • BBFB capability to sell cards to business customers – this does not exist today Best Buy Mobile Confidential

subject to change after merchant FY09 deck is complete Feature and Data • Feature and Data sales were a $20M margin opportunity in FY’08 • AT&T stores sell $21 per handset opportunity in plan add on’s, Best Buy is averaging $3. • Carriers tell us 15-20% of customers who purchase a new phone at Best Buy call them within 30 days of purchase to modify their plan • They add data plans, features such as unlimited text bundles or simply increase their voice plan • BBY gaps to resolve in FY’09 • Measurement and incentive (#1 priority) • Stores have no visibility or tracking mechanism for plan add on’s • Currently, stores receive a P&L credit inconsistent to what they actually sell • No credit is assigned on daily reports such as Matrix, Me and BBM reports • Merchandising • Need to be able to “show” benefits by other means than collateral to enable customer demonstration • Sales proficiency • Structured alignment of training and communication to mirror marketing • Sync with carrier priorities • Customer incentive • Advertising and promotions – contingent on systems • Contingencies • Currently no systematic way to track add on’s within BBY • Plan A – Implement ESC change in Q1 • Plan B – Wait for new IS system to launch in Q2 • Can not create customer value without systematic support • Risky to implement plan A outside BBM • Without field support, employee’s could easily “cheat” manual process • Scorecarding • Can not determine exact value of each add on even with plan A system enhancement making integration to ME and Matrix difficult • We can integrate with notional margin metric on BBM reporting, Best Buy Mobile Confidential

subject to change after merchant FY09 deck is complete Regional Carriers • Best Buy assortment today • X stores have 3 post paid carriers • X stores have 2 post paid carriers • X stores have 1 post paid carrier • Best Buy assortment tomorrow • All stores have 2, 3 or more carriers driving incremental sales opportunities • Round out assortment with other national carriers such as Alltel and Helio or regional carriers such as US Cellular • Carrier names used for illustrative purposes only • Implementation • Planning begins in Q1 • Late Q2 or early Q3 implementation / test • Retail risks • Version management • Market specific training and communication rhythms • Contingencies exist with current carrier contracts Best Buy Mobile Confidential

BBY IPP Plan (Brian) • Insert 12 month IPP Events calendar • AA • BTS • Holiday • Etc… • A • M/D/Grads etc… • B • Mobility etc… • General BBY story • Achievers • When dates lock for each ( how far out from event are the lead times to influence change?) • Advertising ( bids / pricing / etc…) • Communications ( BBYM tools and BBY) • Systems / scorecards • Training Best Buy Mobile Confidential

BK to Insert Q1 Calendar of events • 12 week view • Training • Communication • National activities • Scale activities • Promotions • Recognition Best Buy Mobile Confidential

Quarterly / Monthly view to be populated on the following slides – responsibilities Financial BK National activities BK SAS Activities BK Scale activities BK Labor Ed Services Ed Training Mike/Damian Communication Mike Best Buy Mobile Confidential

FY ’09 Q1 Overview Financial Marketing Overview Scale Activities • X • X • X • X • X • X • X SAS Activities • X • X • X • X • X • X • X Best Buy Mobile Confidential

FY ’09 Q1 Overview Best Buy Mobile Confidential

FY ’09 Q1 March Financial Marketing Overview Scale Activities • X • X • X • X • X • X • X SAS Activities • X • X • X • X • X • X • X Best Buy Mobile Confidential

FY ’09 Q1 March Best Buy Mobile Confidential

FY ’09 Q1 April Financial Marketing Overview Scale Activities • X • X • X • X • X • X • X SAS Activities • X • X • X • X • X • X • X Best Buy Mobile Confidential

FY ’09 April Best Buy Mobile Confidential

FY ’09 Q1 April Best Buy Mobile Confidential

FY ’09 Q1 May Financial Marketing Overview Scale Activities • X • X • X • X • X • X • X SAS Activities • X • X • X • X • X • X • X Best Buy Mobile Confidential

FY ’09 Q1 May Best Buy Mobile Confidential

Q1 • Financial summary • BBY / BBYM / Expected KPI’s / impact on the FY09 plan • Scale Calendar • National focus items • Critical months / Weeks • BBYM events ( SAS and SWAS) • Training - done • Labor plan • Communication – don’t have much to talk about • Merchandising • Metrics / systems / Score carding tools • Recognition Best Buy Mobile Confidential

Training • FY’09 Alignment • Training topics synced with marketing calendar, buyers guides and promotional focus in FY’09 • Training will align with key events, campaigns and drive times throughout the year • Internal field support teams and Retails stores will also receive strategic focus areas via communication vehicles • Carrier support • Carrier field reps will also be aligned against strategic focus areas throughout the year • Carriers will supply and be supplied materials to enable training • Improve overall training planning between BBY and carrier teams • Continue new carrier guidelines focusing carriers on training and not assisted sales • Desired outcomes • Aligned focus monthly synced with marketing and promotional activity • All employee training channels rally around common objectives Best Buy Mobile Confidential

BBYM FY09QRP

BBYM FY09QRP

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