Forward-Looking Statements

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Anne Horton
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1 Goldman Sachs 13 th Annual Global Retailing Conference 2006 September 6 th, 2006

2 Forward-Looking Statements Certain statements contained in this presentation are forward-looking statements. Forward-looking statements typically use words such as believe, anticipate, should, intend, plan, will, expect, estimate, project, positioned, strategy, and similar expressions. These are based on assumptions and assessments made by our management in light of experience and perception of historical trends, current conditions, expected future developments and other factors that we believe to be appropriate. These forward-looking statements are subject to a number of risks and uncertainties, including without limitation: competition; product demand; the economy; the ability to hire and retain qualified employees; consumer debt levels; inflation; weather; raw material costs of our suppliers; gasoline prices; war and the prospect of war, including terrorist activity; availability of consumer transportation; construction delays; access to available and feasible financing; and changes in laws or regulations. Forward-looking statements are not guarantees of future performance and actual results; developments and business decisions may differ from those contemplated by such forward-looking statements, and such events could materially and adversely affect our business. Forward-looking statements speak only as of the date made. Except as required by applicable law, we undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may materially differ from anticipated results. Please refer to the Risk Factors section of AutoZone s Form 10-K for the fiscal year ended August 27, 2005, for more information related to those risks. In addition to the financial statements presented in accordance with Generally Accepted Accounting Principles, AutoZone has provided metrics in this presentation that are not calculated in accordance with GAAP. For a reconciliation of these metrics, please see AutoZone s press release in the Investor Relations section at 2

3 Overview America s #1 auto parts/accessories retailer Annual sales $5.9 billion 3,699 stores in 48 states and Puerto Rico 92 stores in Mexico Founded in 1979 Listed on NYSE: AZO since 1991 Included in S&P 500 since

4 Overview Sell automotive maintenance and repair parts, accessories Specialize in two customer segments: Retail Do-It-Yourself (DIY) Commercial delivery to professional technicians All stores are company-owned and operated no franchises 4

5 Strategic Priorities! U.S. Retail (DIY) Commercial (DIFM) Mexico 2005 Sales by Strategic Priority 5

6 The AutoZone Pledge AutoZoners always put customers first! We know our parts and products. Our stores look great! We ve got the best merchandise at the right price. 6

7 (FY ending August) (000 s) $6,000 AZO: Record Sales TOTAL COMPANY SALES $5,000 CAGR = 12% $4,000 $3,000 $2,000 $1,000 $0 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 7

8 (FY ending August) ($) AZO: Record EPS TOTAL EPS GROWTH* $8.00 $7.00 CAGR = 22% $6.00 $5.00 $4.00 $3.00 $2.00 $1.00 $0.00 '94 '95 '96 '97 '98 '99 '00 01* '02 '03 '04 '05 *Comparable EPS 8

9 AZO: Record ROIC (FY ending August) After-Tax Return on Invested Capital* 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% '00 '01 '02 '03 '04 '05 * Comparable ROIC 9

10 Industry Perspective Do-It It-Yourself Auto Aftermarket Do-It-Yourself Auto Aftermarket U.S. Industry size: $37 Billion* Industry growth: 4.2% nine-year CAGR* AutoZone: AutoZone DIY sales: $4.9 Billion** AutoZone DIY position: #1 AutoZone DIY market share: 13% *Source: AAIA 2006/2007 Factbook **Q3F06 Trailing 4 quarters 10

11 DIY Industry Growth 9 year CAGR 4.2% $ Billions * Source: Total per AAIA Factbook 2006/

12 Compelling growth initiatives Open new stores at a mid-single digit square footage growth rate per year Estimated $60 billion in unperformed maintenance each year.* Got It! initiative: more than doubles our parts availability Valucraft and Duralast brand extensions Superior parts coverage Innovative marketing *2005/2006 AAIA Factbook 12

13 Continuing to develop Our Brands 13

14 Operating initiatives for 2006 Improving our customers shopping experience Reducing the amount of fringe items (store adjacency efforts) Renewing emphasis on training and making sure we ve got the appropriate number of AutoZoners Expanding the hours of operation Sourcing directly 14

15 Industry Perspective Do-It It-For-Me Commercial Auto Aftermarket Do-It-For-Me Auto Aftermarket U.S. Industry size: $54 billion Industry growth: +4.3% nine-year CAGR* A highly fragmented market AutoZone: AutoZone DIFM sales: $715 million** DIFM market share: 1.3% *Source: AAIA 2006/2007 Factbook **Q3F06 Trailing 4 Quarters 15

Grow Commercial Providing the right parts at the right time to our professional installer customers Expanded inventory coverage Target customers within 5 mile radius 30 minutes or less delivery

16 Grow Commercial Providing the right parts at the right time to our professional installer customers Expanded inventory coverage Target customers within 5 mile radius 30 minutes or less delivery target Established a commercial sales force to build broader customer base Focusing on achieving first call status with dual targets: Up & Down the Street speed of delivery Chain Accounts speed of delivery plus consistent price, quality & one-stop shopping Offering ALLDATA- software for on-line electronic diagnostic, repair, and ordering information, currently serving 60,000+ professionals Utilize new technology - PDAs 16

17 Grow AutoZone de Mexico Abundance of old cars Shortage of quality parts, few organized chains 92 AutoZone stores mainly along US border U.S. model successfully translates to Mexico Challenges supply chain, economy Opportunity for continued, profitable, prudently paced expansion 17

18 Third Quarter FY 2006 P&L $ Millions 12 Weeks Ending 5/6/06 12 Weeks Ending 5/7/05 B/(W) Net Sales $ 1,417 $ 1, % Gross Margin 49.7% 50.3% - 62 bps Operating Expense Ratio 31.8% 30.9% - 90 bps Operating Profit (EBIT) $ 253 $ 259-2% Operating (EBIT) Margin 17.9% 19.4% bps Interest $ 24.9 $ % Tax Rate 36.7% 37.2% Net Income $ 144 $ 148-2% Shares Outstanding % Diluted EPS $ 1.89 $ % 18

19 Third Quarter FY 2006 P&L Comparable $ Millions 12 Weeks Ending 5/6/06 12 Weeks Ending 5/7/05 B/(W) Net Sales $ 1,417 $ 1, % Gross Margin 49.7% 50.3% - 62 bps Operating Expense Ratio 31.5% 30.9% - 61 bps Operating Profit (EBIT) $ 257 $ 259-1% Operating (EBIT) Margin 18.2% 19.4% bps Interest $ 24.9 $ % Tax Rate 36.7% 37.2% Net Income $ 147 $ 148 0% Shares Outstanding % Diluted EPS $ 1.92 $ % 19

20 Year-to to-date Third Quarter FY 2006 P&L $ Millions 36 Weeks Ending 5/6/06 36 Weeks Ending 5/7/05 B/(W) Net Sales $ 4,009 $ 3, % Gross Margin 49.3% 49.0% + 27 bps Operating Expense Ratio 33.4% 32.7% - 70 bps Operating Profit (EBIT) $ 637 $ % Operating (EBIT) Margin 15.9% 16.3% - 43 bps Interest $ 73.0 $ % Tax Rate 36.9% 34.3% Net Income $ 356 $ 364-2% Shares Outstanding % Diluted EPS $ 4.62 $ % 20

21 Year-to to-date Third Quarter FY 2006 P&L Comparable $ Millions 36 Weeks Ending 5/6/06 36 Weeks Ending 5/7/05 B/(W) Net Sales $ 4,009 $ 3, % Gross Margin 49.3% 49.0% + 27 bps Operating Expense Ratio 33.1% 31.6% bps Operating Profit (EBIT) $ 649 $ 665-2% Operating (EBIT) Margin 16.2% 17.4% bps Interest $ 73.0 $ % Tax Rate 36.9% 37.1% Net Income $ 363 $ 375-3% Shares Outstanding % Diluted EPS $ 4.72 $ % 21

22 Retail Strong Financial Disciplines Continued EPS growth Maintain new store openings in F06 at mid-single digit level. Focus on improving Trustworthy Advice. Focus on improving same store sales. Commercial Only 13% of domestic sales. Only 1.3% market share today. Significant growth opportunities Mexico Optimize gross margins Relentless focus on controlling costs Share buybacks 22

William Blair 32 nd Annual Growth Stock Conference

William Blair 32 nd Annual Growth Stock Conference June 13, 2012 Forward Looking Statements The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the