INVEST FOR YOUR FUTURE

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401(K) SAVINGS PLAN

WELCOME to Best Buy’s 401(k) savings plan!

First things first, it’s important to understand what a 401(k) Savings Plan is. When you participate in the Plan, you are not only saving money to help you meet long-term needs, but also investing that money so it can grow. Do you think it’s beyond your means to invest in the stock market? Think again — that’s exactly what you do when you participate in the 401(k) plan.

HERE ARE 5 IMPORTANT THINGS TO KNOW ABOUT INVESTING IN THE 401(K) PLAN: • You get FREE MONEY! That’s right. For every dollar you save in the 401(k) — up to the first 3 percent of your eligible compensation — Best Buy contributes another dollar. In addition, Best Buy contributes $0.50 for each dollar of the next 2 percent of pay you save in the Plan. • It’s convenient. Automatic payroll deductions make it easy to save. Unless you want to make a change, you set it and forget it. Plus, it’s out of sight, out of mind. You don’t see the money, so you may not even miss it. • You pay lower taxes. Your contribution comes out of your paycheck before federal and most state income taxes are deducted. This means you pay lower taxes now because your income is reduced by the amount you save. Plus, you don’t pay income tax on your contributions, the Company matching contributions, or your investment earnings until you withdraw funds from the Plan. • The choice is yours. You decide how much to save — anywhere from 1 percent to 50 percent of your eligible compensation, up to the 2013 IRS maximum amount of $17,500.* Plus, you get to choose from many different investment options. • The money in your account is yours to keep — even when you leave Best Buy. You are always 100 percent vested in your own contributions to the Plan and Company matching contributions.

Learn more about Best Buy’s 401(k) Plan from Alex, your personal benefits counselor. Search for Alex on mybbybest.com.

* If you will be celebrating your 50th birthday this year (or already have), you can make pre-tax contributions that exceed the 2013 IRS dollar limit for pre-tax contributions and the Plan’s maximum pre-tax contribution rate. Once you sign up for this “catch-up” feature, you will be automatically enrolled each year.

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TAKE A CLOSER LOOK. The simple image below shows how a 401(k) works. The chart dives deeper into the details. See how the numbers add up for a Best Buy employee making $16,000 a year, depending on whether a 401(k) contribution is made. $16,000 Salary

Salary Taxable Salary

Contribute 5%

FREE Company Match

401(k) Contributions

Taxes Paycheck

401(k) Savings Account

1

Don’t Contribute

401(k) Contributions

$800

Taxable Salary

$15,200

$16,000

Taxes2

$2,280

$2,400

Paycheck

$12,920

$13,600

$0

3

401(k) Savings Account

$1,440

$0

Total for Employee

$14,360

$13,600

Employee contributes 5 percent of eligible pay. Assumes 15 percent tax bracket. 3 Stocks, bonds and investments before any earnings. This includes the FREE Company match of $640: $480 match for first 3 percent and $160 match for next 2 percent. 1 2

UNDERSTAND ELIGIBILITY. You must have reached age 18 and completed a minimum period of service with Best Buy. • For active full-time employees, you must have 60 days of continuous service in which you’re scheduled to work at least 32 hours per week. • For active part-time employees, you will become eligible after completion of one year of service. Once you meet these requirements, you can begin in the Plan on the first day of the month on or after the date you satisfy these requirements, if you’re still an eligible employee on that date.

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IT’S EASY TO ENROLL. • Visit www.mybbyrewards.com.

your time frame and the particular level of risk that an investor – on average – would expect for that time frame. If you like these choices, simply click Submit.

• Log on using your Employee ID (excluding the leading letter) and your BeRewarded password. The first time you enroll in benefits online, you’ll be prompted to register as a new user by following the appropriate prompts to create your password. If you’ve been there before, then you just have to remember your password.

Or you may choose to change any of those settings by clicking Make Changes and entering new information. Remember, you may mix and manage your own portfolio by choosing from Best Buy’s many investment options. Turn the page to learn more about your choices.

• Under the Savings tab, click on 401(k). Click Start Saving. • You may choose to use the Quick Enrollment™ option. The default settings help you make smart decisions. —— Your contribution is set at 5 percent so you can take advantage of the full Company match. —— It’s set up so your contribution rate increases by 1 percent every year until you reach 10 percent. Don’t worry! You can always change your savings rate if it starts feeling like too much.

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—— Your contribution is invested in a Hewitt EnnisKnupp (HEK) Custom Lifecycle Fund, based on your age and assumption that you’ll retire at age 65. Investing in a single Lifecycle Fund gives you a well-diversified investment mix based on

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Learn More About Your Choices in the Best Buy 401(k) PLAN. Fund Choices

Ticker

Fund Fees

Fund Goals

Company Stock

Best Buy Stock

BBY

N/A

Long-term growth of capital

International Core

MFS Institutional International Equity

MIEIX

0.75%

Seeks capital appreciation

Small US Equity

Prudential Jennison Small Company

PSCZX

0.87%

Seeks capital growth

Small US Equity

Artisan Small Cap Value

ARTVX

1.22%

Seeks long-term capital growth through a diversified portfolio of small company stocks believed to be undervalued and offers a controlled level of risk

Mid US Equity

RidgeWorth Mid Cap Value Eq

SMVTX

1.04%

Seeks to provide capital appreciation and, secondarily, to provide current income

Mid US Equity

TimesSquare Mid Cap Growth

TMDIX

1.06%

Seeks to achieve long-term capital appreciation

Large US Equity

BBY Harbor Capital Appreciation Institutional

HACAX

0.39%

Seeks long-term growth of capital

Large US Equity

BlackRock S&P 500 Eq

N/A

0.05%

Capture earnings and growth through investing in the same stocks held in the S&P 500 Index

Large US Equity

American Beacon Large Cap Value

AADEX

0.59%

Seeks combination of long-term capital appreciation and current income

Bond

PIMCO Total Return Institutional Fund

PTRAX

0.46%

Seeks total return consistent with preservation of capital

Stable Value

Galliard Stable Value

N/A

0.37%

To protect principal from market volatility and seek yields higher than money ­­market funds at a relatively predictable annual return

Higher

Potential of Risk/Return

Asset Class

Lower

Plus a choice of nine Hewitt EnnisKnupp (HEK) Custom Lifecycle Funds. You may also choose to invest in the HEK Lifecycle Fund with the date closest to the year you plan to retire. The investment strategy for each of these funds is based on a unique time frame and the particular level of risk that an investor – on average – would expect for that time frame. Each Lifecycle Fund includes investments from different asset classes, so that the fund is properly diversified. Revised April 2013

Manage your account online. Follow the instructions on the previous page to log on anytime and manage your account. Some of the other things you can do include: • Check your balance. • Change the percentage of pay you want to contribute to the Plan, or stop contributions. • Manage the way your plan money is invested. • Request a loan or withdrawal. • Review a fund prospectus. • Use the tools and calculators Best Buy provides to help you make smart decisions.

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A FEW LAST WORDS…

Understand your fees. Participants with more than $500 in their 401(k) Savings Plan are charged a $16.50 quarterly administrative fee. The fee comes out of your account and is displayed as “Fee/Expenses” on your quarterly statement. Requiring participants to help pay an administrative fee for their 401(k) Savings or Retirement Plan is a very common practice. Consult a professional. It’s always a good idea to consult your personal financial or tax advisor before finalizing your choices. Review your investment choices annually. No matter how you invest, you’re responsible for your investment decisions and their outcome. Your goals and tolerance for risk are likely to change over time. So, it’s wise to periodically review your savings growth and your plans for the years ahead. It’s important to diversify or spread your investments across different types of asset classes so that your account isn’t as vulnerable to drops in one specific investment. Review the Best Buy 401(k) Savings Plan investment options and find the balanced approach that’s right for you. It’s important not to wait! Your 401(k) account grows not only from investment earnings on your contributions…but also from earnings on those earnings! In other words, the earlier you start saving and investing, the less you may have to contribute over your lifetime to reach your savings goal. Learn more. Visit the BeYourBest website at www.mybbybest.com and click on Be$mart. Check out all the online tools and financial resources Best Buy provides to help you save for the future, invest wisely, manage your debt and more. This document provides an overview of the Best Buy Retirement Savings Plan [401(k) Savings Plan]. The actual provisions of the Plan are governed by federal laws, the Plan document and administrative agreements. Best Buy may amend, modify or terminate this Plan, in whole or in part, at any time. If there is a conflict between this document and the official Plan document, the official Plan document will govern. There are always risks involved in investing, including possible loss of principal. Diversification does not ensure a profit or protect against loss. LifePath® is a registered trademark of Barclays Global Investors, NA. Quick Enrollment™ is a trademark of Hewitt Associates LLC.

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