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

CarMax, Inc. Annual Shareholders’ Meeting June 22, 2015

Board of Directors Ron Blaylock Tom Folliard Founder and Managing Partner President and CEO GenNx360 CarMax Retired CEO Blaylock & Company 2

Board of Directors Rakesh Gangwal Jeff Garten Former CEO Juan Trippe Professor Worldspan Technologies Yale School of Management Former CEO Chairman U.S. Airways Group Garten Rothkopf 3

Board of Directors Shira Goodman Bob Grafton President, North American Retired Managing Partner – Commercial Chief Executive Staples Andersen Worldwide 4

Board of Directors Ed Grubb Marcy Shinder Retired EVP and CFO Chief Marketing Officer Transamerica Nielsen N.V. 5

Board of Directors Mitch Steenrod Tom Stemberg SVP, Chief Financial Officer Founder and Chairman Emeritus Pilot Travel Centers Staples Managing General Partner, Highland Consumer Fund Highland Capital Partners 6

Board of Directors Bill Tiefel Chairman Emeritus The Ritz-Carlton Hotel Company Retired Vice Chairman Marriott International 7

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. 9

Current CarMax Locations Today -- 150 used car stores in 75 markets Existing markets, FY15 New markets opening in FY16 10 (Size of markers is based on number of stores in each market)

Compelling Growth Opportunity Used Car Store Base 13 to 16 new 225 stores / yr 200 190 14 new 174 184 175 stores 171 150 158 144 125 131 118 100 108 103 100 100 89 75 77 67 50 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 11

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 12

Financial Summary Total Revenues Earnings per Diluted Share $2.73 $16 B $3.00 $14.3 $12.6 $14 B $2.50 $2.16 $11.0 $12 B $1.87 $10.0 $1.79 $2.00 $1.65 $9.0 $10 B $8.2 $7.5 $7.5 $1.24 $7.0 $8 B $1.50 $6.3 $0.89 $5.3 $0.80 $6 B $1.00 $0.61 $0.46 $4 B $0.25 $0.50 $2 B $0 B $0.00 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 10 year CAGR = 10.5% 10 year CAGR = 19.5% FY15 up 13.5% FY15 up 26.4% 13

Key Performance Metrics Total Retail Used Units Total Wholesale Units CAF Income 600 K 400 K $400 M 582 K $367 376 K $336 550 K $350 M 527 K 343 K 350 K $299 325 K 500 K $300 M 317 K $262 448 K 450 K 300 K $250 M $220 396 K 408 K 263 K 400 K $200 M 250 K 350 K $150 M 300 K 200 K $100 M FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY15 up 10.5% FY15 up 9.8% FY15 up 9.3% 14

Q1 FY16 Results Used Units Q1 EPS (diluted) 180 K $1.00 165 K $0.86 $0.90 160 K 151 K 137 K $0.76 $0.80 140 K $0.70 $0.64 112 K 120 K $0.60 $0.52 100 K $0.50 80 K $0.40 60 K $0.30 40 K $0.20 20 K $0.10 $0.00 0 K FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 Q1 FY16 up 9.3% Q1 FY16 up 13.2% 15

Stock Repurchase Program • 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 16

CarMax Cares  FY15 CarMax Foundation milestones  $5.2 million in annual grants; $25 million in total giving since inception  800 volunteer events; 100% store participation 17

CarMax Cares  KaBOOM! partnership  3-year, $4.1 million commitment to bring play to more than 100,000 children 18

CarMax Cares  KaBOOM! partnership  22 of 30 playgrounds completed 19

CarMax Cares  CarMax Summer Basketball League  9 th year in operation  +500 participants 20

Above & Beyond Recognition Above & Beyond Representatives: Gordon Amidon Sales Associate – Jacksonville, Fla. 21

Above & Beyond Recognition Above & Beyond Representatives: Gordon Amidon Sales Associate – Jacksonville, Fla. Anita Howard Business Office Associate – Columbus Sawmill 22

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