Consolidated Income Statements

(in US$ thousands except shares & per share amounts) Actuals Es

Period Ending December 31 2010A 2011A 2012A 2013

Current Case - Case A (Street) Case

Y/Y revenue growth (%) -3%
COGS as a % of revenue 74%
Selling expenses as a % of revenue 22%

Case A (Street)
Y/Y revenue growth (%) 0.0% 1.0% 1.9% -3.2%
COGS as a % of revenue 73.8% 72.7% 73.2% 73.5%
Selling expenses as a % of revenue 19.8% 20.8% 20.6% 21.5%

Case B (Downside)
Y/Y revenue growth (%) 0.0% 1.0% 1.9% -5.0%
COGS as a % of revenue 73.8% 72.7% 73.2% 73.5%
Selling expenses as a % of revenue 19.8% 20.8% 20.6% 21.5%

Case C (Upside)
Y/Y revenue growth (%) 0.0% 1.0% 1.9% 1.0%
COGS as a % of revenue 73.8% 72.7% 73.2% 73.2%
Selling expenses as a % of revenue 19.8% 20.8% 20.6% 20.6%

Case C (LBO)
Y/Y revenue growth (%) 0.0% 1.0% 1.9% 1.0%
COGS as a % of revenue 73.8% 72.7% 73.2% 73.0%
Selling expenses as a % of revenue 19.8% 20.8% 20.6% 20.2%
 Estimates

2014 2015 2016 2017 2018

-2% -2% -2% 1% 1% 1

74% 74% 74% 74% 74%
22% 22% 22% 22% 22%

-2.0% -2.0% -2.0% 1.0% 1.0%

73.6% 73.6% 73.6% 73.6% 73.6%
21.6% 21.6% 21.6% 21.6% 21.6%

-4.0% -3.0% -2.0% -1.0% -1.0%

73.6% 73.6% 73.6% 73.6% 73.6%
21.6% 21.6% 21.6% 21.6% 21.6%

0.0% 0.0% 0.0% 0.0% 0.0%

73.2% 73.2% 73.2% 73.2% 73.2%
20.6% 20.6% 20.6% 20.6% 20.6%

1.0% 1.0% 1.0% 1.0% 1.0%

73.0% 73.0% 73.0% 73.0% 73.0%
20.2% 20.2% 20.2% 20.2% 20.2%
Consolidated Income Statements
(in US$ thousands except shares & per share amounts) Actuals Est

For the fiscal year ended March 3, 2012 2010A 2011A 2012A 2013
Revenue $49,243.0 $49,747.0 $50,705.0 49,082.4
Y/Y revenue growth (%) 1% 2% -3%
Cost of goods sold 36,363.0 36,190.0 37,130.0 36,075.6
COGS as a % of revenue 74% 73% 73% 74%
Gross profit $12,880.0 $13,557.0 $13,575.0 $13,006.8
Gross profit margin (%) 26% 27% 27% 27%
Operating expenses
Selling, general and administrative 9,755.0 10,325.0 10,451.0 10,552.7
SG&A as a % of revenue 19.8% 20.8% 20.6% 21.5%
Other 0.0 0.0 0.0 0.0
Total operating expenses 9,755.0 10,325.0 10,451.0 10,552.7
Equity in earnings of unconsolidated affiliates 0.0 0.0 0.0 0.0
EBITDA 3,125.0 3,232.0 3,124.0 2,454.1
EBITDA margin (%) 6.3% 6.5% 6.2% 5.0%
Depreciation 838.0 896.0 897.0 905.2
Amortization 88.0 82.0 48.0 46.5
Adjusted EBIT 2,199.0 2,254.0 2,179.0 1,502.4
EBIT margin (%) 4.5% 4.5% 4.3% 3.1%
Operating income (GAAP) 2,368.0 2,374.0 1,085.0 0.0
Interest
Interest expense 92.0 86.0 134.0 76.7
Interest income (53.0) (43.0) (37.0) (0.3)
Gain on sale of investments 0.0 0.0 0.0 0.0
Net interest expense 39.0 43.0 97.0 76.4
Income before tax (IBT) 2,160.0 2,211.0 2,082.0 1,426.0
IBT margin (%) 4% 4% 4% 3%
Income tax expense 836.0 781.0 705.0 482.9
All-in effective tax rate (%) 39% 35% 34% 34%
Net income from continuing ops 1,324.0 1,430.0 1,377.0 943.1
Non-recurring events
Restructuring charges - COGS 31.9 5.8 12.0 0.0
Restructuring charges 0.0 86.9 25.8 0.0
Best Buy Europe transaction costs - SG&A 0.0 0.0 30.4 0.0
Goodwill impairment 0.0 0.0 1,180.0 0.0
Gain on sale of investments 0.0 0.0 48.0 0.0
Restructuring charges NCI 0.0 0.0 (4.0) 0.0
Best Buy Europe transaction costs - NCI 0.0 0.0 (13.0) 0.0
BBYM profit share buyout - NCI 0.0 0.0 1,303.0 0.0
Discontinued operations 0.0 0.0 0.0 0.0
Restructuring charges - COGS 0.0 10.0 8.0 0.0
Restructuring charges 0.0 44.0 178.0 0.0
Restructuring charges NCI 0.0 0.0 (85.0) 0.0
Total non-recurring events 31.9 146.8 2,683.2 0.0
Net income 1,292.1 1,283.2 1,306.2 943.1
 Dividend payout (234.0) (237.0) (228.0) (141.5)
% of net income 18.1% 18.5% 17.5% 15.0%
Per share dividend 0.55 0.57 0.62 0.39

Adjusted Earnings per share

Basic $3.10 $3.16 $3.57 $2.57
Diluted $3.02 $3.08 $3.57 $2.57
Earnings per share (GAAP) $3.10 $3.14 ($3.36) $0.00

Average common shares outstanding

Basic 416.8 406.1 366.3 366.3
Diluted 427.5 416.5 366.3 366.3
 Estimates

2014 2015 2016 2017 2018

48,100.8 47,138.8 46,196.0 46,658.0 47,124.5
-2% -2% -2% 1% 1%
35,402.2 34,694.1 34,000.3 34,340.3 34,683.7
74% 74% 74% 74% 74%
$12,698.6 $12,444.6 $12,195.7 $12,317.7 $12,440.9
26% 26% 26% 26% 26%

10,389.8 10,182.0 9,978.3 10,078.1 10,178.9

21.6% 21.6% 21.6% 21.6% 21.6%
0.0 0.0 0.0 0.0 0.0
10,389.8 10,182.0 9,978.3 10,078.1 10,178.9
0.0 0.0 0.0 0.0 0.0
2,308.8 2,262.7 2,217.4 2,239.6 2,262.0
4.8% 4.8% 4.8% 4.8% 4.8%
943.7 981.7 1,016.4 1,050.6 1,084.7
45.5 44.6 43.7 44.2 44.6
1,319.6 1,236.3 1,157.3 1,144.9 1,132.6
2.7% 2.6% 2.5% 2.5% 2.4%
0.0 0.0 0.0 0.0 0.0

9.9 0.0 0.0 0.0 0.0

(3.0) (8.2) (13.8) (18.2) (23.9)
0.0 0.0 0.0 0.0 0.0
6.9 (8.2) (13.8) (18.2) (23.9)
1,312.7 1,244.5 1,171.1 1,163.0 1,156.5
3% 3% 3% 2% 2%
444.5 421.4 396.5 393.8 391.6
34% 34% 34% 34% 34%
868.2 823.1 774.5 769.2 764.9

0.0 0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0
868.2 823.1 774.5 769.2 764.9
(130.2) (123.5) (116.2) (115.4) (114.7)
15.0% 15.0% 15.0% 15.0% 15.0%
0.36 0.34 0.32 0.31 0.31

$2.37 $2.25 $2.11 $2.10 $2.09

$2.37 $2.25 $2.11 $2.10 $2.09
$0.00 $0.00 $0.00 $0.00 $0.00

366.3 366.3 366.3 366.3 366.3

366.3 366.3 366.3 366.3 366.3
Consolidated Statements of Cash Flows
(in US$ thousands) Actuals

Period Ending December 31 2010A 2011A 2012A

Cash flows from operating activities

Net income after distributions 1,394.0 1,366.0 22.0
Depreciation and amortization 838.0 896.0 897.0
Acquired identifiable amortizable intangible assets, net of accum. amort. 0.0 0.0 0.0
Amortization of definite-lived intangible assets 88.0 82.0 48.0
Restructuring 52.0 222.0 288.0
Goodwill impairment 0.0 0.0 1,207.0
Stock-based compensation 118.0 121.0 120.0
Gain on sale 0.0 0.0 (55.0)
Deferred tax (30.0) (134.0) 28.0
Excess tax benefits (7.0) (11.0) 0.0
Other, net 0.0 11.0 25.0
Income taxes 103.0 (33.0) 25.0
Changes in operating operating working capital
Changes in trade accounts receivable (63.0) (371.0) 41.0
Changes in inventories (609.0) (400.0) 120.0
Changes in other current assets (98.0) 40.0 (24.0)
Changes in accounts payable 141.0 (443.0) 574.0
Changes in gift card liabilities 0.0 0.0 0.0
Changes in accrued compensation 0.0 0.0 0.0
Changes in accrued liabilities 279.0 (156.0) (23.0)
Net changes in working capital (350.0) (1,330.0) 688.0
Total cash provided by (used for) operating activities 2,206.0 1,190.0 3,293.0

Cash flows from investing activities

CAPEX [Purchase of property, leasehold improvements & equipment] (615.0) (744.0) (766.0)
Proceeds from sale of property, leasehold improvements & equipment (16.0) (267.0) (112.0)
Business acquisitions net of cash acquired [& net of intangibles/other] (7.0) 0.0 (174.0)
Proceeds from sale of businesses [spin-offs] 0.0 21.0 0.0
Proceeds from sale of investments 56.0 415.0 290.0
Change in restricted assets 18.0 (2.0) 40.0
Settlement of investment hedges 40.0 12.0 0.0
Other (16.0) (4.0) (2.0)
Total cash provided by (used for) investing activities (540.0) (569.0) (724.0)

Cash flows from financing activities

Short-term borrowings (repayments) 0.0 0.0 0.0
Long-term borrowings (repayments) (210.0) (99.0) 509.0
Proceeds from issuance of common stock and additional paid-in capital 138.0 179.0 67.0
Repurchase of common stock [treasury stock] 0.0 (1,193.0) (1,500.0)
Preferred Dividends Payable 0.0 0.0 0.0
 Distributions (234.0) (237.0) (228.0)
Payments to non-controlling interests 0.0 0.0 (1,303.0)
Other (42.0) (7.0) (23.0)
Total cash provided by (used for) financing activities (348.0) (1,357.0) (2,478.0)
Effect of exchange rate on cash 10.0 13.0 5.0

Total change in cash and cash equivalents 1,328.0 (723.0) 96.0

SUPPLEMENTAL DATA:
Cash flow before debt paydown
 Estimates

2013 2014 2015 2016 2017 2018

943.1 868.2 823.1 774.5 769.2 764.9

905.2 943.7 981.7 1,016.4 1,050.6 1,084.7
0.0 0.0 0.0 0.0 0.0 0.0
46.5 45.5 44.6 43.7 44.2 44.6
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
120.0 120.0 120.0 120.0 120.0 120.0
0.0 0.0 0.0 0.0 0.0 0.0
(30.0) (134.0) 28.0 (30.0) (134.0) 28.0
(11.0) (11.0) (11.0) (11.0) (11.0) (11.0)
0.0 0.0 0.0 0.0 0.0 0.0
103.0 (33.0) 25.0 103.0 (33.0) 25.0

44.2 44.9 44.0 43.1 (21.1) (21.3)

82.1 105.4 110.9 108.7 (53.2) (53.8)
34.5 20.9 20.5 20.1 (9.8) (9.9)
(380.7) (93.0) (97.8) (95.9) 47.0 47.4
(5.9) (9.0) (8.8) (8.6) 4.2 4.3
20.9 (8.6) (11.0) (10.8) 5.3 5.3
(91.6) (24.6) (31.4) (30.7) 15.1 15.2
(296.5) 35.9 26.3 25.8 (12.6) (12.8)
1,780.4 1,835.4 2,037.7 2,042.4 1,793.3 2,043.5

(749.5) (770.5) (760.0) (693.0) (683.3) (683.3)

(112.0) (112.0) (112.0) (112.0) (112.0) (112.0)
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
(861.5) (882.5) (872.0) (805.0) (795.3) (795.3)

(523.0) 0.0 0.0 0.0 0.0 0.0

(1,403.4) (281.6) 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
 (141.5) (130.2) (123.5) (116.2) (115.4) (114.7)
0.0 0.0 0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0 0.0 0.0
(2,067.9) (411.8) (123.5) (116.2) (115.4) (114.7)
0.0 0.0 0.0 0.0 0.0 0.0

(1,149.0) 541.1 1,042.3 1,121.2 882.6 1,133.4

777.4 822.7 1,042.3 1,121.2 882.6 1,133.4

Operating Working Capital Schedule (OWC)
(in US$ thousands) Actuals Estima

For the fiscal year ended March 3, 2012 2010A 2011A 2012A 2013 2014

Current assets
Trade accounts receivable 2,348.0 2,288.0 2,243.8 2,198.9
Days receivable 17.0 16.5 16.5 16.5
Inventories 5897.0 5731.0 5,648.9 5,543.4
Inventory turnover days 58.7 56.4 56.4 56.4
Other current assets 1,103.0 1,079.0 1,044.5 1,023.6
% of revenue 2.2% 2.1% 2.1% 2.1%
Total current assets 9,348.0 9,098.0 8,937.2 8,766.0

Current liabilities
Accounts payable 4,894.0 5,364.0 4,983.3 4,890.3
Days payable 48.7 49.7 49.7 49.7
Gift card libilities 474.0 456.0 450.1 441.1
Days payable 3.4 3.3 3.3 3.3
Accrued compensation 570.0 539.0 559.9 551.3
Days payable 19.9 19.1 19.1 19.1
Accrued liabilities 1,471.0 1,685.0 1,593.4 1,568.8
Days payable 51.3 54.4 54.4 54.4
Total current liabilities 7,409.0 8,044.0 7,586.7 7,451.4

Total operating working capital 1,939.0 1,054.0 1,350.5 1,314.5

Change in total operating working capital $885.0 ($296.5) $35.9
Match? (Y/N) Y Y
 Estimates

2015 2016 2017 2018

2,155.0 2,111.9 2,133.0 2,154.3

16.5 16.5 16.5 16.5
5,432.6 5,323.9 5,377.2 5,430.9
56.4 56.4 56.4 56.4
1,003.1 983.0 992.9 1,002.8
2.1% 2.1% 2.1% 2.1%
8,590.7 8,418.8 8,503.0 8,588.1

4,792.5 4,696.7 4,743.6 4,791.1

49.7 49.7 49.7 49.7
432.3 423.6 427.9 432.2
3.3 3.3 3.3 3.3
540.2 529.4 534.7 540.1
19.1 19.1 19.1 19.1
1,537.4 1,506.6 1,521.7 1,536.9
54.4 54.4 54.4 54.4
7,302.4 7,156.4 7,227.9 7,300.2

1,288.2 1,262.5 1,275.1 1,287.9

$26.3 $25.8 ($12.6) ($12.8)
Y Y Y Y
Consolidated Balance Sheets
(in US$ thousands) Actuals

For the fiscal year ended March 3, 2012 2010A 2011A 2012A

Assets
Current assets:
Cash and cash equivalents 1,103.0 1,199.0
Trade accounts receivable 2,348.0 2,288.0
Short term investments 22.0 0.0
Inventories 5,897.0 5,731.0
Other current assets 1,103.0 1,079.0
Total current assets 10,473.0 10,297.0
Property, plant and equipment, net 3,823.0 3,471.0
Goodwill 2,454.0 1,335.0
Acquired identifiable amortizable intangible assets, net of accum. amort. 0.0 0.0
Trader names & customer relationships 336.0 359.0
Equity and other investments 328.0 140.0
Other long-term assets 435.0 403.0
Total assets 17,849.0 16,005.0

Liabilities
Current liabilities:
Short term debt 998.0 523.0
Trade accounts payable 4,894.0 5,364.0
Unredeemed gift card liabilities 474.0 456.0
Accrued compensation 570.0 539.0
Accrued liabilities 1,471.0 1,685.0
Accrued income taxes 256.0 288.0
Other current liabilities 0.0 0.0
Total current liabilities 8,663.0 8,855.0
Long-term debt 711.0 1,685.0
Other long-term liabilities 1,183.0 1,099.0
Total liabilities 10,557.0 11,639.0

Stockholders' equity
Equity infusion + Co-Invest 0.0 0.0
Common stock par value and additional paid-in-capital 57.0 34.0
Less stock repurchased [treasury stock] 0.0 0.0
Non-controlling interests 690.0 621.0
Accumulated other comprehensive income (loss) 173.0 90.0
Retained earnings 6,372.0 3,621.0
Total stockholder equity 7,292.0 4,366.0

Total liabilities & stockholders' equity 17,849.0 16,005.0

SUPPLEMENTAL DATA: 0.0 0.0

Balance? (Y/N) Y Y Y
 Estimates

2013 2014 2015 2016 2017 2018

50.0 591.1 1,633.4 2,754.6 3,637.3 4,770.7

2,243.8 2,198.9 2,155.0 2,111.9 2,133.0 2,154.3
0.0 0.0 0.0 0.0 0.0 0.0
5,648.9 5,543.4 5,432.6 5,323.9 5,377.2 5,430.9
1,044.5 1,023.6 1,003.1 983.0 992.9 1,002.8
8,987.2 9,357.1 10,224.1 11,173.5 12,140.3 13,358.7
3,427.2 3,366.0 3,256.2 3,044.8 2,789.6 2,500.2
1,335.0 1,335.0 1,335.0 1,335.0 1,335.0 1,335.0
0.0 0.0 0.0 0.0 0.0 0.0
312.5 267.0 222.4 178.6 134.5 89.9
140.0 140.0 140.0 140.0 140.0 140.0
403.0 403.0 403.0 403.0 403.0 403.0
14,605.0 14,868.1 15,580.6 16,274.9 16,942.3 17,826.8

0.0 0.0 0.0 0.0 0.0 0.0

4,983.3 4,890.3 4,792.5 4,696.7 4,743.6 4,791.1
450.1 441.1 432.3 423.6 427.9 432.2
559.9 551.3 540.2 529.4 534.7 540.1
1,593.4 1,568.8 1,537.4 1,506.6 1,521.7 1,536.9
361.0 194.0 247.0 320.0 153.0 206.0
0.0 0.0 0.0 0.0 0.0 0.0
7,947.7 7,645.4 7,549.4 7,476.4 7,380.9 7,506.2
281.6 0.0 0.0 0.0 0.0 0.0
1,099.0 1,099.0 1,099.0 1,099.0 1,099.0 1,099.0
9,328.3 8,744.4 8,648.4 8,575.4 8,479.9 8,605.2

0.0 0.0 0.0 0.0 0.0 0.0

143.0 252.0 361.0 470.0 579.0 688.0
0.0 0.0 0.0 0.0 0.0 0.0
621.0 621.0 621.0 621.0 621.0 621.0
90.0 90.0 90.0 90.0 90.0 90.0
4,422.7 5,160.6 5,860.2 6,518.6 7,172.4 7,822.5
5,276.7 6,123.6 6,932.2 7,699.6 8,462.4 9,221.5

14,605.0 14,868.1 15,580.6 16,274.9 16,942.3 17,826.8

0.0 0.0 0.0 0.0 0.0 0.0

Y Y Y Y Y Y
Depreciation
(in US$ thousands) Actuals Estimates

For the fiscal year ended March 3, 2012 2010A 2011A 2012A 2013 2014
Property, plant & equipment on March 31, 3,471.0
Capital expenditures as of March 31, (615.0) (744.0) (766.0) 749.5 770.5
Straight line depreciation 1.2% 1.5% 1.5% 1.5% 1.6%
Years (PP&E) 4
Years (CAPEX) 20 20
Existing PP&E 867.8 867.8
2013 CAPEX 37.5 37.5
2014 CAPEX 38.5
2015 CAPEX
2016 CAPEX
2017 CAPEX
2018 CAPEX
Total book depreciation 838.0 896.0 897.0 905.2 943.7
As % of revenue 2% 2% 2% 2% 2%
Amortization of definite-lived intangible a 88.0 82.0 48.0 46.5 45.5
As % of revenue 0.2% 0.2% 0.1% 0.1% 0.1%
Estimates

2015 2016 2017 2018

760.0 693.0 683.3 683.3

1.6% 1.5% 1.5% 1.5%

20 20 20 20
867.8 867.8 867.8 867.8
37.5 37.5 37.5 37.5
38.5 38.5 38.5 38.5
38.0 38.0 38.0 38.0
34.7 34.7 34.7
34.2 34.2
34.2
981.7 1,016.4 1,050.6 1,084.7
2% 2% 2% 2%
44.6 43.7 44.2 44.6
0.1% 0.1% 0.1% 0.1%
Debt Schedule
(in US$ thousands) Actuals Estimates

For the fiscal year ended March 3, 2012 2010A 2011A 2012A 2013 2014

Cash available to pay down debt

Cash at beginning of year 1,199.0 50.0
Cash flow before debt paydown 777.4 822.7
Minimum cash cushion (50.0) (50.0)
Total cash available to pay down debt 1,926.4 822.7

Revolver
Debt (beginning of year) 523.0 0.0
Mandatory issuances / (retirements) 0.0 0.0
Non-mandatory issuances / (retirements) (523.0) 0.0
Debt (end of year) 523.0 0.0 0.0
Interest expense 7.8 0.0
Interest rate 3.0% 3.0%

Long term debt

Short term debt (beginning of year) 1,685.0 281.6
Mandatory issuances / (retirements) 0.0 0.0
Non-mandatory issuances / (retirements) (1,403.4) (281.6)
Short term debt (end of year) 1,685.0 281.6 0.0
Short term interest expense 68.8 9.9
Short term interest rate 7.0% 7.0%

Total issuances / (retirements) (1,926.4) (281.6)

Total interest expense 76.7 9.9

Cash at the end of the year 1,199.0 50.0 591.1

Interest income 0.3 3.0
Interest rate 1% 1%

Match? (Y/N) Y Y
 Estimates

2015 2016 2017 2018

591.1 1,633.4 2,754.6 3,637.3

1,042.3 1,121.2 882.6 1,133.4
(50.0) (50.0) (50.0) (50.0)
1,583.4 2,704.6 3,587.3 4,720.7

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 Sweep
0.0 0.0 0.0 0.0 100%
0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0
3.0% 3.0% 3.0% 3.0%

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0 Sweep
0.0 0.0 0.0 0.0 100%
0.0 0.0 0.0 0.0
0.0 0.0 0.0 0.0
7.0% 7.0% 7.0% 7.0%

0.0 0.0 0.0 0.0

0.0 0.0 0.0 0.0

1,633.4 2,754.6 3,637.3 4,770.7

8.2 13.8 18.2 23.9
1% 1% 1% 1%

Y Y Y Y
Discounted Cash Flow Analysis
(in US$ millions including shares & except per share amounts) Actuals

For the fiscal year ended March 3, 2012 2010A 2011A 2012A 2013

Unlevered Free Cash Flow

EBIT 2,179.0 1,502.4
Depreciation & Amortization 945.0 951.7
Deferred Taxes 28.0 (30.0)
Other 0.0 0.0
Changes in Working Capital 688.0 (296.5)
Capital Expenditures (766.0) (749.5)
Taxes (508.7)
Total Unlevered Free Cash Flow 869.4

Net Present Value Calulation

Period 0.5
Discounted Cash Flow 9.00% 832.8
Total Net Present Value 4,151.5

Terminal Value
EBITDA Method
Exit Year EBITDA 2,239.6
Multiple 2.0x
Terminal Value 4,479.2
Net Present Value 3,039.3
Perpetuity Method
Unlevered Free Cash Flow 1,022.0
Growth Rate -2.0%
Terminal Value 9,104.7
Net Present Value 6,178.0

Discounted Cash Flow Total Valuation (Enterprise Value)

EBITDA Method 7,190.8
Perpetuity Method 10,329.5
Net Debt 1,546.0
Basic Share Count (millions) 336.7
Est. Fair Equity Value per share EBITDA Method $16.77
Est. Fair Equity Value per share Perpetuity Method $26.09

EBITDA Method Sensitivity (WACC vs. Exit Multiple)

$16.8 8.0% 9.0% 10.0%

1.5x

2.0x
 2.5x

Perpetuity Method Sensitivity (WACC vs. Growth)

$26.1 8.0% 9.0% 10.0%

-2.5%

-2.0%

-1.5%
 Estimates

2014 2015 2016 2017

1,319.6 1,236.3 1,157.3 1,144.9

989.3 1,026.4 1,060.1 1,094.7
(134.0) 28.0 (30.0) (134.0)
0.0 0.0 0.0 0.0
35.9 26.3 25.8 (12.6)
(770.5) (760.0) (693.0) (683.3) Tax rate
(446.8) (418.6) (391.9) (387.7) 34%
993.5 1,138.3 1,128.3 1,022.0

1.5 2.5 3.5 4.5

873.0 917.7 834.5 693.5

Cost of Capital:
Risk Free Rate 2.8% Stock Price $12.95
Equity Risk Premium 6.0% Diluted shares 0
Beta 1.48 Shares Outstanding 337
Cost of Equity 11.68% Equity value $4,359.8
Total debt 2,226.0
Cost of Debt 7.0% Cash -680.0
Cost of Preferred Stock 0.0% Minority interest 596.0
WACC 9.3% Enterprise value $6,501.8

Equity $4,359.8 66%

Debt 2,226.0 34%
Cap. Structure 6,586
Comparable Companies Analysis
($ in millions)
Stock Stock price as Market Enterprise Enterprise value / EBITDA
Company symbol of:11/29/2012 Capitalization Value 2013E LTM
Direct Retail
GameStop Corp. GME $26.21 $3,170 $2,830 3.5x 3.6x
Conns Inc. CONN $28.09 $915 $1,220 10.9x 25.9x
HHgregg, Inc. HGG $7.44 $257 $255 2.7x 2.7x
Median 3.5x 3.6x
Mean 5.7x 10.7x
Online
Apple Inc. AAPL $589.36 $554,410 $519,240 7.8x 8.9x
Amazon.com Inc. AMZN $251.27 $113,810 $106,680 28.5x 51.1x

Median 18.2x 30.0x

Mean 18.2x 30.0x
Best Buy Co., Inc. BBY $12.95 $4,360 $6,501.8 2.8x 1.9x

Source: yahoo finance and Thomson Reuters.

Enterprise value
Share price $12.95
Shares outstanding (mm) 337
Options outstanding TSM 0
Diluted shares outstanding 337
Equity value $4,360
Calculation of Enterprise Value
Short-term debt 1,061.0
Long-term debt 1,165.0
Convertible debt 0.0
Convertible preferred 0.0
Preferred (ie. straight) 0.0
Minority interest 596.0
Less: Cash & equivalents (680.0)
Enterprise value $6,501.8

Options Strike Fully Diluted

Outstanding Price Shares
35.80 $38.08 0
0.00 0.00 0
Total 0
Comparable comps valuation analysis
Stats Low High
2012 LTM EBITDA 3,178.0 2.0x 3.0x
2013E EBITDA 2,454.1 1.5 2.5
Implied enterprise value
Net debt
Implied equtiy value
Shares outstanding
Implied stock price value
prise value / EBITDA Enterprise value / Revenue Price / Earnings
2014E 2013E LTM 2014E 2013E LTM 2014E

3.4x 0.3x 0.3x 0.3x 8.2x NM 7.6x

8.9x 1.4x 1.5x 1.2x 18.4x 50.5x 14.7x
2.6x 0.1x 0.1x 0.1x 8.0x 3.6x 7.4x
3.4x 0.3x 0.3x 0.3x 8.2x 27.1x 7.6x
5.0x 0.6x 0.6x 0.5x 11.5x 27.1x 9.9x

6.5x 2.7x 3.3x 2.3x 11.9x 13.4x 10.1x

17.0x 1.3x 1.9x 1.1x 138.1x NM 64.4x

11.7x 2.0x 2.6x 1.7x 75.0x 13.4x 37.3x

11.7x 2.0x 2.6x 1.7x 75.0x 13.4x 37.3x
3.0x 0.1x 0.1x 0.1x 6.2x NM 6.0x
 Enterprise value
Low High
6,356 9,534
3,681 6,135
5,019 7,835
2,142 2,142
2,877 5,693
336.67 336.67
$8.54 $16.91
 52 week ranage Comparable analysis
Low High Low
11.41 28.51 $8.54
Share price
Shares outstanding
Equity value
Net debt
Enterprise value

$12.95

DCF Perpetuity method analysis $22.89

Comparable company analysis $8.54 $16.91

52 week high low $11.41

DCF EBITDA method analysis $13.97 $19.78

$0.00 $10.00 $20.00 $30.00

mparable analysis DCF EBITDA method analysis DCF Perpetuity method analysis
High Low High Low High
$16.91 $13.97 $19.78 $22.89 $30.28

$24 - $26

89 $30.28

$16.91

$28.51

$19.78

$20.00 $30.00 $40.00 $50.00

Category Low Spread High Current
DCF EBITD $13.97 $5.81 $19.78 $12.95
52 week hi $11.41 $17.10 $28.51 $12.95
Comparabl $8.54 $8.36 $16.91 $12.95
DCF Perpe $22.89 $7.39 $30.28 $12.95