autozone 45E1C146-74DD-4D77-B8DB-AFBFCDEC97CA_ShareholdersMeeting_121708

2008 Annual Stockholders’ Meeting

2Copyright 2006, All Rights Reserved

ForwardForward--Looking StatementsLooking 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; credit markets; the ability to hire and retain qualified employees; consumer debt levels; inflation; weather; raw material costs of our suppliers; energy 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 30, 2008 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 www.autozoneinc.com.


OverviewOverview

America’s #1 auto parts/accessories retailer and a leading distributor

Annual sales $6.5 billion*

4,122 stores in 48 states and Puerto Rico**

150 stores in Mexico**

Founded in 1979

Listed on NYSE: AZO since 1991

Included in S&P 500 since 1996

• Q1 FY 2009 Trailing 4 Quarters

** As of November 22, 2008


OverviewOverview

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


Strategic Priorities!Strategic Priorities!

U.S. Retail (DIY)Commercial (DIFM)MexicoALLDATA

2008 Sales by Strategic Priority

83%

5%

12% U.S. Retail

U.S. Commercial

Other


The AutoZone PledgeThe 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.


AZO: Record SalesAZO: Record Sales(FY ending August) (000’s)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

10-yr CAGR = 7%


(FY ending August) ($) TOTAL EPS GROWTH*

AZO: Record EPSAZO: Record EPS

*Comparable EPS

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

'97 '98 '99 '00 01* '02 '03 '04 '05 '06 '07 '08

10-yr CAGR = 21%5-yr CAGR 14%


Strong financial resultsStrong financial results

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Operating Cash Flow (000s)


Strong financial resultsStrong financial results

0%

5%

10%

15%

20%

25%

30%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Return On Invested Capital

24.0% in 2008


Industry PerspectiveIndustry Perspective““DoDo--ItIt--YourselfYourself”” Auto AftermarketAuto Aftermarket

Do-It-Yourself” Auto AftermarketU.S. Industry size: $39 Billion*Industry growth: 4.1% ten year CAGR*

AutoZone:AutoZone DIY sales: $5.4 Billion** AutoZone DIY position: #1AutoZone DIY market share: 13%

*Source: AAIA 2007/2008 Factbook**FY 2008 U.S. Retail Sales


10 year CAGR 4.1%

* Source: Total per AAIA 2007/2008 Factbook

DIY Industry GrowthDIY Industry Growth$

Bill

ions

24

26

28

30

32

34

36

38

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

5 year CAGR 3.96%


Source: Ward’s Automotive Yearbook through 1999,R.L. Polk Company data 2000 through 2006

0

25

50

75

100

125

150

175

200

225

250

79

80

81

82

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99

00

01

02

03

04

05

06

Veh

icle

s (i

n M

M's

)

OKV's <7 years

1.0

1.5

2.0

2.5

3.0

3.5

79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07

Mile

s dr

iven

(Tr

illio

ns)

Source: USDOT Federal Highway Administration website

Increasing Vehicle Count, Increasing OKVs

Miles Driven Increasing

The USDT has reported a 3.5% decline thru October 2008. In fact, every month in 2008 has been negative

Opportunity: Positive LongOpportunity: Positive Long--Term TrendsTerm Trends


DIY Growth Initiatives DIY Growth Initiatives

New Stores“The Right Product In The Right Place”“Great People Providing Great Service”Effective & Efficient Marketing


Current National U.S. Footprint Current National U.S. Footprint (New Store Additions)(New Store Additions)

1

5

1

2

14

38

66

512 105

59

95

22

2350

197 131

75

150

84 90 171

185

73

157

82

116

438

58

32

10

18

6

38

66

140

48

16

58

15

57

114

211

27

107

34

1

48

6

23

PRPR17

AutoZone is the only Auto Parts Retailer with stores across the U.S.

Continued opportunity for further expansion

Note: Added 185 stores in FY 2008.

Total 4,240 Stores as of 8.30.2008


““The Right ProductThe Right Product””

Every category update completed for 2nd year in a rowEvery Category: a category sponsor and a category captain+ $300 million in parts and products in 2 yearsMAP Process: Leverages millions of look ups for the right placementEnhanced HUB best practices


High Quality Parts and ProductsHigh Quality Parts and Products

Critical AreasProduct InnovationCoverage – especially late model applications


““Great People / Great ServiceGreat People / Great Service””

We’re optimistic about 2009 (Commercial and Retail)

Focusing on Great People Providing Great Service

a. Continual improvement in Customer Satisfaction Scores

b. Enhanced trainingc. Selling the complete jobd. New Transaction processe. ASE certificationf. “Hire the best” initiativeg. Continual systems enhancementsh. Appropriate marketing messages

around value proposition


Industry PerspectiveIndustry Perspective““DoDo--ItIt--ForFor--MeMe”” Commercial Auto AftermarketCommercial Auto Aftermarket

“Do-It-For-Me” Auto AftermarketU.S. Industry size: $52 billionIndustry growth: +4.2% ten year CAGR*A highly fragmented market

AutoZone:AutoZone DIFM sales: $754 million**DIFM market share: 1.3%

*Source: AAIA 2007/2008 Factbook** FY 2008 U.S. Commercial Sales


10 year CAGR 4.2%

•Source: Total per AAIA 2007/2008 FactbookPrices quoted at Wholesale prices

$ B

illio

nsDIFM Industry GrowthDIFM Industry Growth

34

36

38

40

42

44

46

48

50

52

54

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

5 year CAGR 3.64%


Q1 Commercial HighlightsQ1 Commercial Highlights

# ofCommercial

Programs

Domestic AutoZone Stores:New 2,240

% increase in programs vs. LY 2%1st

QuarterDomestic Commercial Sales: $170.6($ millions)% increase in sales 1.8%


Commercial Growth InitiativesCommercial Growth Initiatives

Enhancing our products and services to achieve first call status for targeted customersDeveloping a premier selling organizationImproved parts assortment and availabilityExpanding the number of Commercial programs supported by enhancements to the service modelSupporting with a great marketing program


Commercial PromotionsCommercial Promotions


Grow AutoZone de MexicoGrow AutoZone de Mexico

• Abundance of old cars• Shortage of quality parts, few organized chains• 150 AutoZone stores mainly along US border*• U.S. model successfully translates to Mexico• Challenges – supply chain, economy• Opportunity for continued, profitable, prudently paced expansion

•As of November 22, 2008


Grow ALLDATAGrow ALLDATA

• 70,000+ current repair shopsubscribers• Leading provider of manufacturers’service and repair information, shopmanagement software and customerrelations tools for the auto repair andcollision industries• Introduced ALLDATA Collision in

2007 and subscriber base now includes ~2,000 accounts


Strong Financial DisciplinesStrong Financial DisciplinesContinued EPS growthContinued EPS growth

Grow Retail SalesRefinement of Parts CoverageDeploy inventory more effectively across network with specific emphasis on utilizing Hub network more effectively Invest in AutoZoner training and retentionMake sure our stores look greatMake sure we put our customers first in everything we doCustomer service will continue to be our key point of differentiation

Grow Commercial SalesOnly 12% of domestic sales & 1.3% market share todayContinue focus on building best-in-class B2B selling organizationFocused on profitable growth

Prudently paced growth in MexicoRelentless focus on managing costs

autozone 45E1C146-74DD-4D77-B8DB-AFBFCDEC97CA_ShareholdersMeeting_121708

Economy & Finance

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