CarMax, Inc. Annual Shareholders Meeting June 22, 2015 Board of - - PowerPoint PPT Presentation

CarMax, Inc. Annual Shareholders’ Meeting

June 22, 2015

Board of Directors

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Ron Blaylock

Founder and Managing Partner GenNx360 Retired CEO Blaylock & Company

Tom Folliard

President and CEO CarMax

Board of Directors

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Rakesh Gangwal

Former CEO Worldspan Technologies Former CEO U.S. Airways Group

Jeff Garten

Juan Trippe Professor Yale School of Management Chairman Garten Rothkopf

Board of Directors

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Shira Goodman

President, North American Commercial Staples

Bob Grafton

Retired Managing Partner – Chief Executive Andersen Worldwide

Board of Directors

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Ed Grubb

Retired EVP and CFO Transamerica

Marcy Shinder

Chief Marketing Officer Nielsen N.V.

Board of Directors

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Mitch Steenrod

SVP, Chief Financial Officer Pilot Travel Centers

Tom Stemberg

Founder and Chairman Emeritus Staples Managing General Partner, Highland Consumer Fund Highland Capital Partners

Board of Directors

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Bill Tiefel

Chairman Emeritus The Ritz-Carlton Hotel Company Retired Vice Chairman Marriott International

CarMax, Inc. Annual Shareholders’ Meeting

Tom Folliard President and Chief Executive Officer

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 filings, including its Form 10-K, for the year ended February 28, 2015. The company disclaims any intent or obligation to update its forward-looking statements.

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Current CarMax Locations

Existing markets, FY15 New markets opening in FY16

Today -- 150 used car stores in 75 markets

(Size of markers is based on number of stores in each market)

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Compelling Growth Opportunity

67 77 89 100 100 103 108 118 131 144 158 171 184

50 75 100 125 150 175 200 225

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18

Used Car Store Base

13 to 16 new stores / yr

174 190

14 new stores

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Compelling Growth Opportunity

Large Market Entries: Fiscal 2013: Denver Fiscal 2014:

• St. Louis

Philadelphia Fiscal 2015: Cleveland Fiscal 2016: Minneapolis / St. Paul Boston Beyond: San Francisco Seattle New York City

Financial Summary

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$0.46 $0.61 $0.89 $0.80 $0.25 $1.24 $1.65 $1.79 $1.87 $2.16 $2.73

$0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Earnings per Diluted Share

10 year CAGR = 10.5% FY15 up 13.5% 10 year CAGR = 19.5% FY15 up 26.4%

$5.3 $6.3 $7.5 $8.2 $7.0 $7.5 $9.0 $10.0 $11.0 $12.6 $14.3

$0 B $2 B $4 B $6 B $8 B $10 B $12 B $14 B $16 B

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Total Revenues

Key Performance Metrics

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FY15 up 10.5%

396 K 408 K 448 K 527 K 582 K

300 K 350 K 400 K 450 K 500 K 550 K 600 K

FY11 FY12 FY13 FY14 FY15

Total Retail Used Units

263 K 317 K 325 K 343 K 376 K

200 K 250 K 300 K 350 K 400 K

FY11 FY12 FY13 FY14 FY15

Total Wholesale Units

$220 $262 $299 $336 $367

$100 M $150 M $200 M $250 M $300 M $350 M $400 M

FY11 FY12 FY13 FY14 FY15

CAF Income

FY15 up 9.8% FY15 up 9.3%

Q1 FY16 Results

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Q1 FY16 up 9.3% Q1 FY16 up 13.2%

112 K 137 K 151 K 165 K

0 K 20 K 40 K 60 K 80 K 100 K 120 K 140 K 160 K 180 K FY13 FY14 FY15 FY16

Used Units

$0.52 $0.64 $0.76 $0.86

$0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 FY13 FY14 FY15 FY16

Q1 EPS (diluted)

Stock Repurchase Program

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• Initially launched in fall 2012
• $3.8 billion in total authorizations
• As of 5/31/15:
• $1.55 billion utilized
• 31.9 million shares repurchased
• $2.25 billion available for repurchase

• FY15 CarMax Foundation milestones
• $5.2 million in annual grants; $25 million in total

giving since inception

• 800 volunteer events; 100% store participation

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CarMax Cares

• KaBOOM! partnership
• 3-year, $4.1 million commitment to bring play

to more than 100,000 children

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CarMax Cares

• KaBOOM! partnership
• 22 of 30 playgrounds completed

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CarMax Cares

• CarMax Summer Basketball League
• 9th year in operation
• +500 participants

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CarMax Cares

Above & Beyond Representatives: Gordon Amidon

Sales Associate – Jacksonville, Fla.

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Above & Beyond Recognition

Above & Beyond Representatives: Gordon Amidon

Sales Associate – Jacksonville, Fla.

Anita Howard

Business Office Associate – Columbus Sawmill

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Above & Beyond Recognition

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