CarMax (KMX) 8-K Lehman Brothers Retail Conference

1

Lehman Brothers Retail Conference

May 1, 2007

Joe Kunkel

Senior Vice President, Marketing and Strategy

Exhibit 99.1

2

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.  The Company

disclaims any intent or obligation to update its

forward-looking statements.

3

What is CarMax?

How have we done?

Where are we going?

4

What is CarMax?

A unique and sustainable retail

growth story with

defensible competitive advantages

5

The CarMax Advantage

®

Unique consumer offer

Proprietary processes and systems

Skilled, dedicated people

Diversified profit base

6

Unique Consumer Offer

Low, no-haggle prices

Huge selection

carmax.com

Customer-friendly service

Ease of Shopping

Peace of Mind

Guaranteed quality

7

Consumer Recognition

25+ Consumer awards in the last 2 years

“Best of”

San Antonio, Austin, Sacramento,  

Columbia, Atlanta

BBB award for Business Ethics in Atlanta,

central Indiana, central North Carolina and others

2 million cars sold as of December 2006

8

Finance

Originations

Purchasing/

Inventory

Management

Reconditioning

Consumer

Offer

Proprietary Processes and Systems

14 Years of Refinement

9

Skilled, Dedicated Associates

Three years running (2005 -

2007)

THE CARMAX CULTURE

Comprehensive, formal training in four functional areas

Classroom and on-line training

Mentoring

10

Diversified Gross Profit Contribution

10

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What is CarMax?

How have we done?

Where are we going?

12

Strong Results

30

60

90

40

90

140

190

240

2,000

4,000

6,000

8,000

$ in millions

$ in millions

Superstores

Revenues

Net Earnings

*

6 yr CAGR = 15%

6 yr CAGR = 18%

6 yr CAGR = 28%

* All years restated for SFAS 123R

33

77

$2,758

$7,466

$45

$199

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Strong Results –

FY07

2,000

4,000

6,000

8,000

FY06

FY07

40

90

140

190

240

FY06

FY07

$ in millions

$ in millions

Superstores

Revenues

Net Earnings

*

* FY06 restated for SFAS 123R

30

50

70

90

FY06

FY07

AGR = 15%

AGR = 19%

AGR = 49%

67

77

$6,260

$7,466

$134

$199

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Strong Results –

FY07

Strong store and web traffic

Continuous execution improvement

Stable external economic and

incentive environment

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What is CarMax?

How have we done?

Where are we going?

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CarMax Lifecycle

Proven

concept

2007

Restart

growth

Stop

growth to

refine

model

Start up

Future

2003

2000

1993

15-20% delivered annual store growth

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Future Sources of Growth

Store Expansion

80 stores today

40% of U.S. markets

15% -

20% new store openings

Market Share Expansion

8% -

10% in strong markets

4-5 year purchase cycle

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Long-Term Growth Plan

Comp used unit growth:

4%  -

8%

New store openings:

15% -

20%

Resulting FY12 revenue range:

$15  -

$20 Bn

Sales Growth

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CarMax Today

Nation’s largest used car retailer

•80 used car superstores (at 5/1/07)

•38 markets

•Store Growth:

•FY07  10 stores  +15%

•FY08  13 stores  +17% (Est.)

Large markets (9)

Mid-sized markets (28)

Small markets (1)

Sacramento

Los Angeles

Salt Lake City

Albuquerque

San Antonio

Wichita

Austin

Kansas City

Chicago

Houston

Dallas

Oklahoma City

Miami

Tampa

Orlando

Jacksonville

Birmingham

Memphis

Nashville

Louisville

Indianapolis

Columbus

Knoxville

Hartford

Va. Beach

Richmond

DC / Baltimore

C’ville

Raleigh

Greensboro

Charlotte

Greenville

Columbia

Atlanta

Las Vegas

Fresno

New Haven

Milwaukee

Tucson

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2008 Projections

New store opening:

17%

Comp used unit growth:

3% -

9%

EPS growth:

12% -

24%

Los Angeles (2)

San Diego

Tucson

Modesto

Newport News

Baltimore

Omaha

Milwaukee (2)

Atlanta

Jackson

Charlotte

Opened

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What is CarMax?

A unique and sustainable retail

growth story with

defensible competitive advantages

22