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Bank of America 2008 Health Care Conference
 

Bank of America 2008 Health Care Conference

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    Bank of America 2008 Health Care Conference  Bank of America 2008 Health Care Conference Presentation Transcript

    • Confidential Bank of America 2008 Health Care Conference John Spina, Treasurer May 15, 2008 Las Vegas © Copyright 2008 Walgreen Co.
    • Safe Harbor • Certain statements and projections of future results made in this presentation constitute forward-looking information that is based on current market, competitive and regulatory expectations that involve risk and uncertainty. • Please see our Form 10-K for a discussion of factors as they relate to forward-looking statements dated August 31, 2007. 2 © Copyright 2008 Walgreen Co.
    • Walgreens At a Glance The nation’s largest and fastest growing drugstore chain Solid track record: 33 years of record sales and earnings Highly respected brand and growing market share Highest sales and earnings per square foot among peers Strong cost discipline and best in class execution Focused on driving sales and improving returns 3 © Copyright 2008 Walgreen Co.
    • New Stores Deliver Growing Sales Returns Improve as they Mature Average Front-End Sales/Store by Class Year (000’s) 57% improvement 9.5% $3,500 from year 1 to 5 $3,192 $2,988 7.7% $3,000 ars $2,738 Ye $2,453 rs $2,500 a 39.0% 0-1 Ye 6.9% 2 $2,037 1- ears 10+ Years 2-3 Y $2,000 3-4 Ye ars 6.3% 4-5 $1,500 Ye ars $1,000 5.6% 5-10 Years $500 25.0% $0 36% of stores are less than 5 years old Year Year Year Year Year 1 2 3 4 5 4 Note: Data based on net new drugstores, excluding acquired stores and stores converting to or from 24- © Copyright 2008 Walgreen Co. hour format. Class Year is calculated on a Calendar Year basis; includes only stores open at least 12 months as of 12/31/2007.
    • We Build Markets – Las Vegas 60 50 Store Count 40 30 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Fiscal Year • First store opened in 1996 • Currently enjoy #1 market share. • Strip location among most profitable in chain • January 2008 – purchased the files of 27 Rite Aid stores 5 © Copyright 2008 Walgreen Co.
    • Multiple Growth Platforms Store Health & Pharmacy Wellness Retail Sales Medical Specialty Campus Pharmacy 6 © Copyright 2008 Walgreen Co.
    • Walgreens Strategy Retail and health care trends have created a more complex and competitive environment As the market leader in retail pharmacy we have tremendous assets to: • Broaden access through expanded footprints • Leverage the box to drive top and bottom line productivity • Expand into adjacent health care services to strengthen the core Our goal: • 10,000 points of care by 2012 • 8% annual square footage growth • 15% earnings CAGR • Significant value creation for shareholders 7 © Copyright 2008 Walgreen Co.
    • Why Walgreens? Efficient Operators • Store Productivity Leads Industry • Not Experiencing Diminishing Returns Favorable Trends • Aging Population – Baby Boomers • Healthcare Spend Multiple Growth Platforms • Retail Drugstores – Focus on Market Growth • WHS • Health & Wellness Historically Low Valuation 8 © Copyright 2008 Walgreen Co.