Walgreens Analysts Day

Thursday,  October 30, 2008
Chicago,  Illinois
Welcome

Rick Hans
Divisional Vice President, 
Investor Relations and Finance
Morning Agenda. ..

9:00 a. m. Welcome and Safe Harbor Rick Hans

Our Strategic Focus -

9115 a'm' the Core Business

Al l...
Afternoon Agenda. ..
,  

Expanding Health and Wellness

Hal Rosenbluth

12:45 p. m. Peter Hotz
Q&A Peter Miller
.  Stan B...
Safe Harbor

I Certain statements and projections of future
results made in this presentation constitute
forvvard-looking ...
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the Care Business

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More from the Core

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Our Care Business -
to Grow and Create Value

Greg Wasson
President and ...
The Walgreen Value Proposition. ..

I Who We Are I Core Strengths
I Key Growth Strategies

I Introduce Key Initiatives

I ...
A Strong Foundation for Growth. ..

I Best corners in America

I 5.3 million customers daily

I 70% of U. S. households li...
A History of Innovation. ..

  
  
 
 
         

Stand-alone
Pharmacies stores with Multiple
linked by drive-thru languag...
Our Core Sti'ei'ig'I'I'is. ..

F 34 years of consecutive sales and earnings growth

$ Billions
60
34 Year Sales CAGR: 
34 ...
Our Core Sti'ei'igtl'is. ..

F‘ 34 years of consecutive sales and earnings growth

F‘ Growing market share
F Strong balanc...
Walgreens Marketshare More
than Doubles Strong Industry Growth. ..

199} 2007

Mail WAG

Other

Super
’ Chains

markets

O...
Rx Growth Is Slowing,  but
We Are Outpertorming the Industry. ..

Total Retail Script Growth

 
 
 

12%
WAG

8% '

4% '

...
Ou'i'se| ling the Co *npe'i'i'i'ioi'i. ..

Sales Growth for Walgreens Top 60 Categories
In percent,  for 52 weeks ending A...
October Scales. ..
Through October 28

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WAG Customers Using Credit Cards Less. ..
% Growth by Payment Type

     
    

16%
Credit Card Sales

12% '

8% ' ’

Cash...
Leverage and Enhance Our Care Business. ..

    
   
  

Enhance
the
customer

  
   
  

Leverage the
best store
network ...
Levercage and IEnncai*ace Our Care Business. ..

     
   

Enhance

 
 
  

      

Leverage the

best store the
network ...
The Stren c= th at Our C are. ..

In! ‘

Walgreens is Number 1 in 147 Metro Markets

25
109 3 1 ,  , r 2
117 y  6
13 206 1...
Leverage & Enhance Our Care Business. ..

Target
1 0,000
- Take Care Clinics
-Worksite Health Centers
- Specialty!  Infusi...
Leverage the
best store .  

network in  , ’ W,    customer

America v~ /  - 71‘ .  ,_experience

  
 

 
    

Major cost...
Beyoric!  Location,  Loccation,  Loccetion. ..

   

 
    

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Leverage the Enhance
best store , , 1:‘.  ll .  F,  ..  the
network in 5 _=  9 customer
...
Leverage and Enhance Our Care Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
customer exp...
Leveicage canc!  Enhcance Our Care Business. ..
Strategic Initiatives

Slowing store growth

     
    
 

Re-inventing th...
Leveicage canc!  Enhcance Our Care Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
custome...
Leverage and Enhance Our Care Business. ..
Strategic Initiatives

  
 
 
 
    
 
 

Slowing store growth

Re-inventing th...
Levercage and Enhcar'1ce Our Care Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
customer...
Leverage and Enhance Our Core Business. ..
Strategic Initiatives

  
 
 
 
    
 
 

Slowing store growth

   

Re-inventi...
Leveitage cane!  Erahcarace Our Core Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
custo...
Levercage canc!  Eniacaruce Our Core Business. ..
Strategic Initiatives

  
   

Slowing store growth

Re-inventing the
cu...
Leveitage canc!  Enhcarace Our Core Business. ..
Strategic Initiatives

Slowing store growth

     
    
 

Re-inventing t...
Slowing Store Growth

Mark Wagner
Executive Vice President,  Store Operations
m
Old,  New and Experienced. ..
 Age of the Company
 Median Store Age
13 Average Manager Tenure

 Average District Manager...
Slowing Growth Reduces
CAPEX by $500 million over 3 years. ..

Net organic new drugstores
600

529
&0% 3%

500

9W5CP&fl‘ 6...
Slower Store Growth Helps to Improve. ..
I Training
I Service
I Execution

I Real Estate Focus
Targeted Growth
Allows Average Store to Mature. ..

Current average New average

store age ‘l 17 store age

    

EBIT

A ...
Slowii1g Store Growi'l1.. .

9°
01

Average
Age: 

10.2 years

EBIT ($ Billions)

1,000 2,000 3,000

Average
Age: 

7.7 ye...
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Morning Break

We will continue in 15 minutes
Leverage and Enhance Our Core Business. ..
Strategic Initiatives

  
 

Slowing store growth

 
  
  
      

  
  
 

  
...
Re-inventing the
Customer Experience

Kim Feil
Chief Marketing Officer

George Riedl
Executive Vice President,  Merchandis...
Sharper Focus on Understanding Today’s Customer Needs

Will Guide Re-inventing the Customer Experience. ..

 

517-"? -ll'...
Earning Sustainable Customer Loyalty
Requires a Multi-Dimensional Plan. ..

   
    

Distinctive
brand

Effective

engage...
Loyalty Initiatives. ..

Prescription Savings Club

  

I > 1 million members a
Z4’/ ,.. ..vz47,. ., 
I Offers more overal...
Opportunity to Differentiate Drug Retailing. ..

CONVENIENT PHARMACY

 
  

   
      
         
      
 

  

  

IN N OV...
Earning Sustainable Customer Loyalty
Customer Centric Retailing. ..

   
 
    
   

Distinctive

Effective
engagement
(in...
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Customer-Centric Retailing - Building Loyalty with
Distinctive Assortment,  Access,  8. Affordability. ..

F'r»: li‘i, l

...
Customer-Centric Retailing
Reinvents the Shopping Experience. ..

I Right categories and brands mix (including private bra...
Assortment Example: 
Better Targeting Variety. ..

% Growth Over 10 Years I Over last 10 years,  item
29% .  growth has ou...
Opportunity:  Improve . *i*. ssori'rnen't
and Cross-Sell Solutions. ..

% of Baskets and Average Front-End Items Per Baske...
Partnering with Vendor and Customer Insights
in Baby Care. ..

E-E  "7. 7 -r ' '

esa‘en? ~.1gi'- *9 "5'f_; _'I§;  .: .*. ...
Partnering with Vendor and Customer Insights
in Baby Care. ..

Results: 

I Increased sales trend from
+6% to +20%

I Baby...
Responding to Changing Consumer Needs. ..
Affordability,  availability,  and timing

I Essentials
I Consumables/ groceries...
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War

Sona Chawla
Senior Vice President,  E-Commerce

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Online Leverdges the Core. ..

"WI"
 rant. 

. ... _.. . . ... 
.. ...  .. ... ... .. ‘. :.: ‘.'. ‘.' , .l. : . ... ... t‘...
Good Fundamentals Drive Online Growth. ..

    
 

Millions Millions (average)
/  7
6

/11
, , — .   7

I +330/E I

5
4

4...
Retail Core Creates Advantage. ..
Photo Example

 

‘07-’08 Online Photo Growth Why Customers Picked Walgreens
Percent Per...
Three-Part Plan for Success. ..

Online _
 J ,7 / ' ' V /7 x.  X

www. walgreens. com

Useful and
Usable

Integrated
with ...
Spectru “n of Online Customer Bene'ti'ts. ..

Diabetes Example

Learn = m~ Use

"? IlII'J(‘-i""vl"wII| (‘J'

Community

Or...
C§t. .;es‘tiiiel1,s  . ‘:. r sniei‘s

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Leverage and Enhance Our Core Business. ..
Strategic Initiatives

  
 
 
 
    
 
 

Slowing store growth

Re-inventing th...
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ll. ‘?.3i‘ll.3l. ‘e: }EEi1itltl. [¢;  ‘« . ...
Benefits of ‘ii’i’©lnst@>rmlng
Community Phelrmcicy. ..

I Substantial savings in pharmacy costs over
three years

I Pharm...
Traditional Rx Fill Process. ..

I Scan Rx

I Data entry

I Data review

  
 

I Clinical review
I FillingIProduct review
...
Script Demand Varies by the Hour. ..

Number of Scripts 4»

 

Time of Day

W Wm»
Workload Balancing Outruns Gustav. ..

Covington,  LA

1 600

I Our store typically averages

about 600 Rx’s per day 

I T...
Rx Fill Process Enhancements. ..

 
   
     
 

  
   

I Scan Rx

— Data entry
— Data review Workload
— Clinical review ...
POWER. ..

   
 

Distribution
Retail Store ‘r'etv. *.'or: ;
Picks up Sends to local  
previously placed store with daily ...
POWER in Practice. ..

I POWER Today: 
— 152 Florida stores

I By end of Year: 
— 750+ Florida stores
— Will represent ove...
Benefits of POWER. ..

I Reduces payroll costs

I Creates more time for pharmacists
— Improved service model
—Offer additi...
Increased Loyalty 8. Revenue. ..

     
    
 
     
     
  
  
 

Improve
Customer
Service

 
   

Encourage
Customer

L...
C§: .,; es‘l: ii«: ;;: ms  . “:. r* svver‘s

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Lunch Break

We will continue in 45 minutes
Levercage cane!  Enhicaruce Our Core Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
custo...
Expanding Health 8. Wellness

Hal Rosenbluth
President,  Health &We| |ness Division

Peter Hotz
President,  Take Care Heal...
The Health 8. Wellness Division. ..

I A new model of affordable,  accessible,  high quality
health and wellness services
...
Take Care Resource Relationships. ..

Shared Resources: 

I Clinical Staff

Take Care ' 'T_9{iafi’P'a”°'m5 Take Care
consum...
worksite clinics  _ -51. ,2‘

Every Service Relcates to Building ttie Core. ..

s
. ,)

_. /'

            
    
 

4
4

3...
Take.  Care.  'H*esa| t’h
Employer Solutions

Peter Hotz
President,  Take Care Health Employer Solutions
Leveraging and Enhancing the Core Business. ..

I Rapidly growing market segment
I 364 sites - 180 clients - 44 states

I ...
Worksite Health Value Proposition - Clients. ..

I Quality Care — Clinical Excellence

I Compliance & Safety

I Cost Savin...
Market Growth Accelerating. ..

I Demand for on-site health and pharmacy
services experiencing rapid growth

I Total proje...
Market Opportunity - On-site Health Centers. ..

Take Care
Not offered Health Services
In-House other

Third Parties
The “E_Iolu'i'ion” of On-site l-lecslth Cerrters. ..

Movement toward Primary Care,  Wellness,  and Integration

I Risk Ma...
Scope of Service - iiiicass CU$'i‘Oi"i“il?1 atior. ..

PRIMARY SERVICES

r Primary Care

r.  Acute! Extended Episodic Care...
Engagement Drives Value for Employers. ..

On-site clinicians drive improved engagement 8. retention rates
which creates v...
Turn-Key Worksi'i'e Services. ..

F‘ Facility Design

T Management of all Clinical 8.
Administrative Staff

“ Clinical Pol...
Worlct Clcass Pcartriers. ..
E riployer Success Storv. ..

.  kn‘

Vi _ _
J . _ v. ‘ ' I “ ‘-

. ._‘ i«'i. J i

- cqc-mrio  -~—sEnvicE
Wwbl
I ‘ V F‘ su...
. /czluec!  Clierrts. ..

   

1"’ _ j  i : _ ;  , :   ". :" ‘ : l'_', ',}: - 1.
.724-.3 .  .1 ', |,| ‘|L: ‘E I?  CREDIT S...
Multiple Drivers of Growth. ..

I Core market 8. services

I Outsourcing

I Expansion of pharmacy offering

I Introduction...
Take.  "Care.  ‘Health
Consumer Solutions

Peter Miller
President and CEO of Take Care Health Systems LLC
The Problem
A Broken Healthcare System. ..

@ The NEW ENGLAND
]OURNALofMEDICINE

Primary Care — Will It Survive? 

Thomas ...
The $yrrrp'i'orhs. ..

F ERs bursting at the seams
— 40% of patients are non-emergent

F 1 of 5 of consumers do not have a...
A Compelling Solution. ..

I A low cost model built entirely around satisfying
patients

I Utilizing Nurse Practitioners a...
Inventing Whole New Patient Experience. ..

 

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in

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*i*i‘orc! c5!; :>le I-Iec; |tl‘i Services. ..

 

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Critical Success Factors. ..

Delighting patients

Becoming a destination employer

Delivering the highest standard qualit...
Patient Satisfaction is Exceptionally High. ..

Gallup Survey Results

% top box

Overall Satisfaction 92%

Likelihood to ...
Becoming a Destination Employer. ..

Take Care Nurse Prospect Nurse

Practitioners Practitioners Difference

% top 2 box

...
Unit Economics in Mature Sites are Sound. ..

I Mature sites are two years old

I Expect majority of mature sites to break...
Patient Traffic Increasing in Mature Markets. ..

30 day rolling average

   
  

40 T
22 ptslcliniclday total 19 ptslclin...
Payor Relationships are Very Strong. ..

I National contracts with all major national payers
—Aetna,  Cigna,  Wellpoint,  ...
Significant Additional Revenue Opportunities. ..

L

Strong consumer interest in new offerings

Platform Opportunities
Pri...
Leveraging and Enhancing
the Core Businesses. ..

Major sources of value beyond stand alone value: 

I Significant number ...
@

take ca re
health systems”
C§E. ..£¢$Sl’li3t1.S  . ‘:. r svv°er‘s

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Levercage cane!  Enhance Our Core Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
customer...
Enhancing the Core Through
Integrated Pharmacy Services

Stan Blaylock
President,  Walgreens Health Services

Michael Name...
Walgreens Health Services

I Delivers an integrated portfolio of convenient
health services to improve patient care

I Pro...
Convenient,  Cost-Effective Coordinated Care

I Retail - Existing I Specialty I Take Care Worksites
I Retail - Approved Ma...
Convenierir,  Cost-Ettective,  Coordincstec!  Care

Community Pharmacy

 

.  E‘
Home Infusion,    ‘Online
r f.  //  ll
 I...
O

  salty Ptteirrneicy

$70 billion industry growing to
over $500 billion in 15 to 20 years

Leading independent specialt...
Cancer Is Becoming a Chronic Disease

I More than two-thirds of newly diagnosed cancer
patients will live at least five ye...
Disecsse-Focusec!  Teams

[-

Organized into care management teams with
specialized knowledge and understanding

Provide c...
Walgreens Specialty Pharmacy
Improves Patient Compliance

Medication Possession Ratio (MPR)

100%
92% 88%

80% I Managed b...
Exceptional Patient Satisfaction

2007-2008
Overall 96% - 98%
Pharmacist Care 95% - 99%

Packing Accuracy/ Reliable Delive...
Wc§lgreei'ts Home lntusion Lowers
I-lospi'i'c3|i. '£c5'i‘ion Rates tor I-lemoptlilics Pcatients

l‘ Substantially lower ho...
Proven Cost Scaxtings for ca lvlcajor Pcayor
r Per Member Per Month (PMPM) Specialty Pharmacy

150
140

Spending Indexed t...
Multiple Fulfillment Options

Central  fafifi Community

Fulfillment J ,  ,‘ _4_J__Lj_ Pharmacy

   

Home Ambulatory
Infusi...
Convergence of Speci alty Pi‘iCii'lfiCEC‘, '
and Home Intusiorl

Business
. D.°_59!'i_Pt. l9'? ?

Therapies: 

Cost Per

Pa...
Home Infusion
Respiratory Therapy Services

 

I Leading provider of home and
specialty infusion services

Convenient, 
co...
Benefits of Home Infusion Leadership

Coordinated
site of care
management

     
   
  
 
   

Biotech,  infusible
pipelin...
Levercage cane!  Enhcartce Our Core Business. ..
Strategic Initiatives

Slowing store growth

   

Re-inventing the
custom...
Payor Strategy

I Ensure access to lives and a fair reimbursement
for services

I Enhance the franchise through selling ou...
Sources of Walgreens Rx Revenue

   
 

Medicaid MC 05
cash that contract
directly

Other
stand-alone
PBMs

Big 3 PBMs

W ...
Sources of Walgreens Rx Revenue

Medicaid

MC Os
that contract
directly

 
 
  
 

Other
stand-alone
PBMs

Big 3 PBMs

W E...
Partnering with Payors

I MCOs without captive PBMs
I MCOs with captive PBMs

I PBMs

I Employers

I Government
Expanding Relationships with Blues Plans

I Eldsting Specially BCBS Clients
I Prime Therapeutics BCBS Clients
I Home Infus...
Expanding Relationships with Blues Plans

| :| Existing Specialty BCBS Clients
I Prime Therapeutics BCBS Clients
I Home In...
Expanding Relationships with Blues Plans

E] Existing Specialty BCBS Clients
I Prime Therapeutics BCBS Clients
I Home Infu...
C? §:i, ;aa~s‘Eii: :;r1is  ; “:. r sWai‘3

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Levei'cage cane!  Ermcaruce Our Core Business. ..
Strategic Initiatives

  
   

Slowing store growth

Re-inventing the
cu...
Rewiring for Growth

Wade Miquelon
Senior Vice President & Chief Financial Officer
Levei*caging S'i'i'ca'i'egies to Create V cslue. ..

“More from the Core”

     
 
  
  

   
 

Leverage the Enhance

  
...
Best

l. evercaging the
tore i~! etwork in ii‘.  Ttericca. ..

“More from the Core”

       

 
     
 
  
  

Leverage th...
Slowing Store Growth. ..

 

3.5

1?

: 

.2 +1 ,300 in
E 3 years
in

‘3.

5 Average Average Average Average
. _,_,  Age: ...
Ei’ii'iCEt'iCli'iC5 the Customer Experience. ..

fil

“More from the Core”

     
 
  
  

   
  

Leverage the Enhance
bes...
Enhancing the Customer Experience. ..

Gross Profit

%

 

Efficient 8: Streamline Optimize Improve Total
Compelling Supply ...
Rewiring tor Gro:1tt°n. ..

“More from the Core”

   
     

   

Leverage the Enhance
best store [1 ; —;<', , ,  ,3,‘ the...
Rewiring tor Growi‘l°r. ..
What is it’? 

Effectiveness Efficiency

Resulting in a cost,  culture,  and

capabilities tran...
What Rewiring for Growth Focuses On. ..

I Ensure we have a sustainable growth model
whereby SG&A is accretive over-time

...
Major Cost Reduction and Productivity Gain. ..
Costs Have Been Growing Too Rapidly

Generics lower sales,  increasing SG&A...
We Are Looking cat ca Large Cost Bcase. ..
Scope

F Includes all SG&A spend across headquarters
and field

r Focus is on h...
We Are Targeting SIB
in Annual Cost Reduction. ..

Opportunity Targeted
Description FY ‘11 Benefit

_ _ - Standardize spec...
Annual Benefits targeted by FY 11.. .

Net Benefit
After One
Time Costs

One-Time $300 - $400 Million
Costs over two years...
Strategic Sourcing of Indirect Spending. ..

Walgreens vendor concentration

Value Drivers ‘°°°"’
I Fragmented vendor base...
This Is Going to Be CI Phased Effort -
We Are on Our Way. ..

Phase 1 — Phase 2 — Phase 3 —
opportunity assessment Opportu...
Financial Objectives

Wade Miquelon
Senior Vice President & Chief Financial Officer
Short-Term Environment is Challenging. ..

Front-End Comp

 

Script Comp** 1.1% 0.7% -0.2%*"*

As of Oct.  28th,  2008

A...
Long-Terrn Fincancical Objectives. ..

    
   
 

  
  
  

   
 

Eps Total
Growth Shareholder
Targets Returns

  

Zflzz...
Topline Gi'o~wtl'u. ..
Goal:  Industry Leading Sales Growth

 

 

I.  1;:  7 /  H‘
- ) ' V .  — '1‘-V" * r , 
’ ‘’', :'_5...
EPS Growth Targets. ..
Goal:  Return to Strong Double-Digit EPS Growth

   
  

  

Leverage the
best store
network in
Ame...
EPS Growth Targets. ..
Goal:  Return to Strong Double-Digit EPS Growth

25%

20%»

15%

10%-

5%‘

0%

EPS Growth

96

97 ...
Walgreens Health Services 8.
Health 8. Wellness Division Impact on EPS. ..

W€z. ..*¢. :c4.. ..
r""

take ca re
health sys...
ROIC Focus. ..

600

400

200

Goal:  Steady Increase in ROIC

Net New Organic Drugstores
 Organic‘: 
J Growth
o4 os os or...
Strong Balance Sheet. ..

Goals 9 ”'°°“V"

 
&P

AAA Aaa
_ AA+ Aa1
I Preserve investment AA Wm M2 WM-r
grade credit rating...
Strong Balance Sheet. ..

Goals

I Preserve investment grade credit ratings
I Maintain strong liquidity

I Financial flexib...
Total Shareholder Return. ..
Goal:  Strong Top Tier Shareholder Returns

Total Shareholder Returns

5 Year 10 Year 20 Year...
C§: ..; es‘irli:5i1.s  . ‘:. r* s1srer‘s

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Walgreen Co. 2008 Analyst Day
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Walgreen Co. 2008 Analyst Day

  1. 1. Walgreens Analysts Day Thursday, October 30, 2008 Chicago, Illinois
  2. 2. Welcome Rick Hans Divisional Vice President, Investor Relations and Finance
  3. 3. Morning Agenda. .. 9:00 a. m. Welcome and Safe Harbor Rick Hans Our Strategic Focus - 9115 a'm' the Core Business Al lIllcNally Leveraging 8: Enhancing 9:30 a'm' Our Core to Grow and Create Value Greg wasson _ Slowing Store Growth Mark Wagner 10.00 a. m. Q&A I 10:30 a. m. Morning Break . . Kim Feil 10:45 am. Re-Inventing the Customer Experience George Riedl Q&A Sona Chawla 1130 a m Transforming Community Pharmacy Kermit Crawford ' ' ' Q&A Charlie Goodall Noon Buffet Lunch walgzwm
  4. 4. Afternoon Agenda. .. , Expanding Health and Wellness Hal Rosenbluth 12:45 p. m. Peter Hotz Q&A Peter Miller . Stan Blaylock 1:25 p_m_ | Enhancing the Core Through Paul Mastrapa ntegrated Pharmacy Services Michael Namath Broadeninglbeepening Stan Blaylock the Payor Relationship Q&A 2:00 p'm' R_ewire_for Growth wade Miquelon Financial Review 2:30 p. m. Final Q&A Greg Wasson, Officers 2:55 p. m. Concluding Remarks Greg Wasson 3:00 p. m. Closing Rick Hans walyzwau
  5. 5. Safe Harbor I Certain statements and projections of future results made in this presentation constitute forvvard-looking information that is based on current market, competitive and regulatory expectations that involve risk and uncertainty. I Please see our latest Form 10-K for a discussion of factors as they relate to forward-looking statements.
  6. 6. .4 T-mi E. ii‘. f‘ ’-°-s‘: "' i L‘ ‘ $7. I . _., ~‘i g, _ _ K, '7‘ . . l7‘, } -' E i, I‘ia : lfiiilfii Al Mcila| ly Chairman and acting Chief Executive Officer ZUa@»zee/ o1.
  7. 7. teveragilirig the Care Business -(U¢z@2tee/ (4.
  8. 8. More from the Core Zlfazgzeexa.
  9. 9. "Lljé‘véi‘faig‘li"n*gr-rid ‘E r? ilh‘afnc’ih, “gI Our Care Business - to Grow and Create Value Greg Wasson President and Chief Operating Officer
  10. 10. The Walgreen Value Proposition. .. I Who We Are I Core Strengths I Key Growth Strategies I Introduce Key Initiatives I Our Plan to Win
  11. 11. A Strong Foundation for Growth. .. I Best corners in America I 5.3 million customers daily I 70% of U. S. households live within 5 miles of a Walgreens store I 85% free-standing stores with drive-through I America’s #1 drugstore brand
  12. 12. A History of Innovation. .. Stand-alone Pharmacies stores with Multiple linked by drive-thru language satellite pharmacies Rx labels 1981 1992 2002 1950 1968 1991 1999 2005 Self-service First with Point-of-sale Prescription Online stores chiId—resistant scanning history onl ine digital photo containers W whlg/ team.
  13. 13. Our Core Sti'ei'ig'I'I'is. .. F 34 years of consecutive sales and earnings growth $ Billions 60 34 Year Sales CAGR: 34 Year Earnings CAGR: 45 D Economic Downturns 13% 18% 1974 I 2.0 f I I 1.5 I 1.0 ‘ .5 2008 ZU: z@»zee/ (4.
  14. 14. Our Core Sti'ei'igtl'is. .. F‘ 34 years of consecutive sales and earnings growth F‘ Growing market share F Strong balance sheet and financial flexibility F" History of winning and creating shareholder value "r-‘. “.v . 4 "I «i . c. . . ,- ». -1 , . I1‘! '4 .1 M. . ‘M _ . _ . ’/. ‘.7.f- " ’ , ; _. , -- ~. «.. ... .’. ._{ ¢. ,. '7. . D~Y'. , ‘ -- _ T " IF I’ v‘ ‘A »———-x .14 f , -. .-; , . if _m, ’“_j. ' ‘}. ~. up wit 'mf; § : i teas" smut air at 7 , ,§§§§'§ . I . , , ..' — . ,-. . H. -gvffiffijr _’_ ‘ | l 1 : ‘ " 1 ' '. :‘. " _ _ V I - - ‘ ~ . 1 "; .—aI; :=. :1. m’; m‘. ':' ‘.743:-",
  15. 15. Walgreens Marketshare More than Doubles Strong Industry Growth. .. 199} 2007 Mail WAG Other Super ’ Chains markets Other Chains Super Mass markets Independents Independents $93.8 Billion $259.4 Billion W walgzeaa.
  16. 16. Rx Growth Is Slowing, but We Are Outpertorming the Industry. .. Total Retail Script Growth 12% WAG 8% ' 4% ' 0% Total Market (IMS) without WAG -4% Q3-07 Q4-07 Q1-08 Q2-08 Q3-08 Q4-08 W "(flag/ zeex4.
  17. 17. Ou'i'se| ling the Co *npe'i'i'i'ioi'i. .. Sales Growth for Walgreens Top 60 Categories In percent, for 52 weeks ending August 31, 2008 i 4/-2.". /,, r/422 /2.1 Mass Merchants Food Stores [I Drugstores (wlo Walgreens) 0% 2% 4% 68: Annual Growth Rate 8% Source: AC Nielsen 10% ZU: z@»zee«/1.
  18. 18. October Scales. .. Through October 28 Zflczlyxzee/ (4.
  19. 19. WAG Customers Using Credit Cards Less. .. % Growth by Payment Type 16% Credit Card Sales 12% ' 8% ' ’ Cash, Debit Cards, Check 4% ‘ 0% I I * I Q4 ‘05 Q2 ‘06 Q4 ‘06 Q2 ‘07 Q4 ‘07 Q2 ‘08 Q4 ‘08 @ Zflalyeeeatd.
  20. 20. Leverage and Enhance Our Care Business. .. Enhance the customer Leverage the best store network in Major cost reduction and productivity gain
  21. 21. Levercage and IEnncai*ace Our Care Business. .. Enhance Leverage the best store the network in customer ‘experience Major cost reduction and productivity gain ZW¢@/ tee/ (A.
  22. 22. The Stren c= th at Our C are. .. In! ‘ Walgreens is Number 1 in 147 Metro Markets 25 109 3 1 , , r 2 117 y 6 13 206 1 55 27 so 63 ‘W ‘ 95 , 23 63 ‘ V 189 231 76 36 133 ’ . 4 « 1o9 ‘)- 53 174 ‘ 62 Numberof ’ 499 ~ A ' ’ . ‘ stores 7 93 -V 248 131 42 j 54 — _ _ 50 73 60 35 160 ‘ 607 1, . Washington D. C. 1 100-150 ‘ 125 ‘ —757 50-100 ‘ Puerto Rico ZUQQ/ tee/ (A.
  23. 23. Leverage & Enhance Our Care Business. .. Target 1 0,000 - Take Care Clinics -Worksite Health Centers - Specialty! Infusion Centers 7,151 6,059 4 985 5,461 4,613 ’ ' ‘ 4,252 I I I Stores 2003 2004 2005 2006 2007 2008 2012 E Zllcziy/ tee/ (4.
  24. 24. Leverage the best store . network in , ’ W, customer America v~ / - 71‘ . ,_experience Major cost reduction and productivity gain Levercage and Enhcance Our Care Business. .. ZUa@»zee/ o1.
  25. 25. Beyoric! Location, Loccation, Loccetion. .. ~. . $.53 . -w -wr--I ‘-1 ‘ ~ 1 . .;A. , _. _ . '*“*-i-u'JL_g, -§ii. i.i. :~ —"«: ,i ". ' . .4R 4'17~ ~ .5. '-' :4" , .;"? “'‘~ , =—e 2. = . s _. ._. e -1.» .1 4 a_a-o. .m. o‘ ' 7 " V" , ‘%a. —' I 5-It-. ._ "_' '
  26. 26. T .4 Leverage the Enhance best store , , 1:‘. ll . F, .. the network in 5 _= 9 customer America " , ~ “I , experience / ;~‘ Major cost reduction and productivity gain Levercage and Enhance Our Care Business. .. ZUa@»zee/14.
  27. 27. Leverage and Enhance Our Care Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer expefience Leverage the best store network in America Transforming community pharmacy Expanding health & wellness Expanding specialty pharmacy Broadening 8: deepening T payor relationships Major cost reduction and productivity gain Rewiring for growth w Z041;/ zeatd.
  28. 28. Leveicage canc! Enhcance Our Care Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance Leverage the best store , the network in customer America . experience 1 Transforming community pharmacy V Expanding health & wellness tsetse ' Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth lg/ If ZU: z@»tee/ (A;
  29. 29. Leveicage canc! Enhcance Our Care Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance " the J ""‘ I I — customer _ , experience ‘-.1’-6771:: 1 Leverage the best store network in Transforming community pharmacy Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth lg/ If ZU: z@»tee/ (A;
  30. 30. Leverage and Enhance Our Care Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer expefience Leverage the best store network in America Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth W mm
  31. 31. Levercage and Enhcar'1ce Our Care Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance Leverage the best store /7 , the network in -- - customer . . America A4.1_: ,fj—. ,ih’ : L experience Transforming community pharmacy is risw. t'e' ’ » I Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth {(0} waxy/ teem:
  32. 32. Leverage and Enhance Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer expefience Leverage the best store network in America Transforming community pharmacy Expanding health & wellness Expaffn i A . .,. a.: :: t Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth W mm
  33. 33. Leveitage cane! Erahcarace Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance ‘a the * B '. customer 3 experience Leverage the best store Transforming community pharmacy Expanding health & wellness Expanding specialty pharmacy Broadening 8: deepening payor relationships Major cost reduction and productivity gain Rewiring for growth gr/ If ZUa. @/Lee/ (A;
  34. 34. Levercage canc! Eniacaruce Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer ff, ‘ experience Leverage the best store T network in ’ ‘ 5 Transforming community pharmacy Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth {(0} wag; /Lew:
  35. 35. Leveitage canc! Enhcarace Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance Leverage the best store T the network in customer America . experience 1 Transforming community pharmacy V Expanding health & wellness BBEBB» ' Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth gr/ If ZUa. @/Lee/ (A;
  36. 36. Slowing Store Growth Mark Wagner Executive Vice President, Store Operations
  37. 37. m Old, New and Experienced. .. Age of the Company Median Store Age 13 Average Manager Tenure Average District Manager Tenure Average Store Ops VP Tenure
  38. 38. Slowing Growth Reduces CAPEX by $500 million over 3 years. .. Net organic new drugstores 600 529 &0% 3% 500 9W5CP&fl‘ 6% 4°“ 5% 5% —> 300'———————————— “ — — — " — ' — 161 13% 200 100' 97 98 99 00 01 02 03 04 05 O6 07 08 09 10 11 W We/ «em
  39. 39. Slower Store Growth Helps to Improve. .. I Training I Service I Execution I Real Estate Focus
  40. 40. Targeted Growth Allows Average Store to Mature. .. Current average New average store age ‘l 17 store age EBIT A A 0-1 1-2 2-3 3-4 4-5 5-10 10+ Store Age in Years
  41. 41. Slowii1g Store Growi'l1.. . 9° 01 Average Age: 10.2 years EBIT ($ Billions) 1,000 2,000 3,000 Average Age: 7.7 years 4,000 5,000 Today Average Age: 2.7 years 6,000 7,700 Zffazly/ cee/ (A.
  42. 42. C§: .,; es‘fiii:3l1.s . ‘:. r £'ié'iii“é§. ‘:i-'3 '((}cz@/ zee/ oi.
  43. 43. Morning Break We will continue in 15 minutes
  44. 44. Leverage and Enhance Our Core Business. .. Strategic Initiatives Slowing store growth Enhance . ; the _ E 5 _ __ customer expefience Leverage the best store network in V i‘ Transforming community pharmacy Expanding health & wellness Expanding specialty pharmacy Broadening 8: deepening Z payor relationships Major cost reduction and productivity gain Rewiring for growth W mm
  45. 45. Re-inventing the Customer Experience Kim Feil Chief Marketing Officer George Riedl Executive Vice President, Merchandising Sona Chawla Senior Vice President, E—Commerce
  46. 46. Sharper Focus on Understanding Today’s Customer Needs Will Guide Re-inventing the Customer Experience. .. 517-"? -ll'llf—l9:i fl’§*". l’n"II? -‘ ail: -1-ftllirailteiil =21‘? fiilsllfi? , //}:9': o g er/ J, . - 7 VJ ' ’ f I ‘ G 7 Trusted, well-liked, Opportunity for more differentiation ZUQQ/ tee/ (A.
  47. 47. Earning Sustainable Customer Loyalty Requires a Multi-Dimensional Plan. .. Distinctive brand Effective engagement (in-sto re, Incentives, Accessibility, Convenience Affordability
  48. 48. Loyalty Initiatives. .. Prescription Savings Club I > 1 million members a Z4’/ ,.. ..vz47,. ., I Offers more overall value than : ;:, :‘; =v; L;c 1 . 78 1234 567 ». ... .,. .,, ,,, ,_, ,_'_M other discount programs ” I Discounts on more than 5,000 drugs, including a 90-day supply of more than 400 generics for less than a dollar a week i Iflalgaeeaa.
  49. 49. Opportunity to Differentiate Drug Retailing. .. CONVENIENT PHARMACY IN N OVAT IVE Easy in and out A store I can trust 0 lias great sales Prescriptions are always Most trustworthy ready when promised . . O _ pharmacists . I Has mores in my "ammo I d Items I want are always In stock . . 9 RHE 0 Best selection of things w Convenient Location A store leader throuh the years I buy regularly Pharmacists are a good source of healthcare information LOW PRICE Has fairest prices on over the counter products 0 Low prices everyday
  50. 50. Earning Sustainable Customer Loyalty Customer Centric Retailing. .. Distinctive Effective engagement (in-store, online) Incentives, Accessibility, Convenience Affordability Right assortment
  51. 51. .4 71¢)! &~‘.37"F Tat! ) _. _. r 9" may I 37$! " pk r rm: I’. T», prsl! :,; :9l»""' Ni '4' var . . H Qt l. l 2:5 “ ‘+. .,x'». :‘E ml, if? .. ‘»: ‘.'i ‘I I, H I; ,:; George Riedl Executive Vice President, Merchandising ZUa@»zee/ (4.
  52. 52. Customer-Centric Retailing - Building Loyalty with Distinctive Assortment, Access, 8. Affordability. .. F'r»: li‘i, l r Something for everyone if ltemldepartment focus r Item-intensive! labor demand r Best offerings for valued customers r Convenient solutions for essentials and discretionary needs r Personalized customer service ZU: z@»zee/ (4.
  53. 53. Customer-Centric Retailing Reinvents the Shopping Experience. .. I Right categories and brands mix (including private brands) I Targeted assortment I Improved shopability, planograms and adjacencies Optimize assortment Arnpjify Vendor I More collaboration and shared insights ”"a“°"5hiP5 I Joint solution development Priced right, especially on SKUs that matter More effective promotions Focused loyalty initiatives Effective pricing and promotion Enhance Improved satisfaction: offering and service shopping Improved sightlines, layout, and signage expenence Operations designed from the customer back
  54. 54. Assortment Example: Better Targeting Variety. .. % Growth Over 10 Years I Over last 10 years, item 29% . growth has outpaced basket 19% size growth I Diminishing returns requires refocus on select categories and the right items I Differentiating offerings improves customer service 2% Basic Basket Assortment Size W Yflalgzzeexa.
  55. 55. Opportunity: Improve . *i*. ssori'rnen't and Cross-Sell Solutions. .. % of Baskets and Average Front-End Items Per Basket 60% Solution sell 46% 45% 0 Understand Learn and 30”’ and QFOW reward Cross-sell 20% 19% 15% 15% 5 1.. -‘.1“_‘r£’tL 0». | Rx Only 1-2 3 - 4 5+ ‘ I # of items in Basket (rat wazgxzeem
  56. 56. Partnering with Vendor and Customer Insights in Baby Care. .. E-E "7. 7 -r ' ' esa‘en? ~.1gi'- *9 "5'f_; _'I§; .: .*. :i~; :=2: ‘-'= ‘«‘«‘: .n t“'“f‘. ‘—. .£. ‘-151 K -" n ' , -It" K : 's. l.rF§. ;[i"t‘ I? ‘ , . . - - -' ~. '~; ‘ : ":EE7_‘&¥_fi‘: ‘V . Added Baby OTC . g__ —~~ , / . 5 - - E " ’ ‘ 1 . 7,. ‘ - ' . .. . . , . _.. N A %i l f r°t: '"°r~ 1 T if . ”.‘_"_i H pr ucs
  57. 57. Partnering with Vendor and Customer Insights in Baby Care. .. Results: I Increased sales trend from +6% to +20% I Baby OTC sales trend +50% I Baskets with Baby Care items increased 41% "(flag/ zeexa.
  58. 58. Responding to Changing Consumer Needs. .. Affordability, availability, and timing I Essentials I Consumables/ groceries I Staples I Private brands
  59. 59. .4 War Sona Chawla Senior Vice President, E-Commerce ZUa@»zee/ o1.
  60. 60. Online Leverdges the Core. .. "WI" rant. . ... _.. . . ... .. ... .. ... ... .. ‘. :.: ‘.'. ‘.' , .l. : . ... ... t‘‘' - : .mIi w. .i. ... ... . .1-u-lAIU4l' Vmn nirudlo , ... .u. m. u.a n. ..m. .. i. AIM‘: ,. _, l‘li. irm. ity 't'luunt' I. .. i. ... In ilk‘ l’h. ll’lll. it_‘ 0 Row Puunpmuu a mu emmpiimu Add up to 30 picmres o Inntfor Pruulpimm 0 s. “» M” k“ 1‘ L‘ n . . I . <_ . IICDul't’J‘Cl'J[-L P, ‘w-ii - v . i _ Got your photos fa-st! Zl}. .1‘Z1u*. '-:1. com "" ’ "““""""“ . ... ... ... ~ ~ -It ll-‘ ‘”""“"‘ Gilt (Lmls Specials slain Noun I. :;7?. i<: .g; » Our Slow / I. 'lC>'
  61. 61. Good Fundamentals Drive Online Growth. .. Millions Millions (average) / 7 6 /11 , , — . 7 I +330/E I 5 4 4 3 I 6 07 Active Registered Customers Monthly Unique Visitors I 2005 06 07 2008 2005* 0 2008* " Partial year reported Source: Walgreen internal data; NielsenINetRatings
  62. 62. Retail Core Creates Advantage. .. Photo Example ‘07-’08 Online Photo Growth Why Customers Picked Walgreens Percent Percent WAG Online Locations by 34 photo home/ work Price 1 2 Online photo market Product mix 12 Help available 11 Source: PMA, Walgreens Internal Data! Ana| ysis, Walgreens Photo Research (Aug 2008)
  63. 63. Three-Part Plan for Success. .. Online _ J ,7 / ' ' V /7 x. X www. walgreens. com Useful and Usable Integrated with Every Walgreens Business
  64. 64. Spectru “n of Online Customer Bene'ti'ts. .. Diabetes Example Learn = m~ Use "? IlII'J(‘-i""vl"wII| (‘J' Community Order Refills Setup W W W W Select Ef§_§_C_? lmLEm “1 {W1 {Hi yr. 1.“ Refill Number i i l 'l , [_ 252434-32024 l _ Shopping Cart Nature Made Diabetes Health - 3°13 93» Product . '. | , (5 Ratings) 'k'rF’5'A'l, Walgreens Blood Glucose Test ’ 1’ 0 re , .,. ,., ., mew * me 5 health systems Usually ships in 3 business days. (More) FREE shipping eligible ~"(! /I)‘ Z€}a: @/Lee/01.
  65. 65. C§t. .;es‘tiiiel1,s . ‘:. r sniei‘s '((}cz@/ zee/ oi.
  66. 66. Leverage and Enhance Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer expefience Leverage the best store network in America Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth W mm
  67. 67. .4 War r: r‘ ‘efla . -' '* er‘ I 1’ ff’ *2‘ _«“. h“ ‘ 9’ 6:” (of 9-“ rs, ll. ‘?.3i‘ll.3l. ‘e: }EEi1itltl. [¢; ‘« . »%'i‘: li i‘. EIIUliKll1:: I Kermit Crawford Senior Vice President, Pharmacy Services ZUa@»zee/ o1.
  68. 68. Benefits of ‘ii’i’©lnst@>rmlng Community Phelrmcicy. .. I Substantial savings in pharmacy costs over three years I Pharmacists spend more time with customers I Additional retail clinical services
  69. 69. Traditional Rx Fill Process. .. I Scan Rx I Data entry I Data review I Clinical review I FillingIProduct review I Insurance issues I Phone calls
  70. 70. Script Demand Varies by the Hour. .. Number of Scripts 4» Time of Day W Wm»
  71. 71. Workload Balancing Outruns Gustav. .. Covington, LA 1 600 I Our store typically averages about 600 Rx’s per day I To assist customers 1200 preparing to flee Hurricane Gustav, we shifted work to our Ohio market 800 5 Average Volume I We filled nearly double the average daily Rx volume! 400 . , , . 0 Rx
  72. 72. Rx Fill Process Enhancements. .. I Scan Rx — Data entry — Data review Workload — Clinical review Balance I Insurance issues I Phone calls POWER I FillinglProduct review — 1/3 of prescriptions
  73. 73. POWER. .. Distribution Retail Store ‘r'etv. *.'or: ; Picks up Sends to local previously placed store with daily '” ' ’ . refill order delivery V. L‘ ‘J: 1“ Refills sent to central facility , Central Pharmacy Operations
  74. 74. POWER in Practice. .. I POWER Today: — 152 Florida stores I By end of Year: — 750+ Florida stores — Will represent over 10% of the chain Zflaéyzzeeaox.
  75. 75. Benefits of POWER. .. I Reduces payroll costs I Creates more time for pharmacists — Improved service model —Offer additional retail clinical services - fir! ’ '= !T'. ';ESlfi : “—‘: ‘—*~*" '
  76. 76. Increased Loyalty 8. Revenue. .. Improve Customer Service Encourage Customer Loyaky Offerings Increase Repeat Visits Improve Brand wareness
  77. 77. C§: .,; es‘l: ii«: ;;: ms . “:. r* svver‘s '((}cz@/ zee/ oi.
  78. 78. Lunch Break We will continue in 45 minutes
  79. 79. Levercage cane! Enhicaruce Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance Leverage the best store /7 ‘ the network in -- - customer . . America A4.e_:2j—. .lh’ . L experience Transforming community pharmacy to r: sw. »'a' ’ » L Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth {(0} wag; /Lew:
  80. 80. Expanding Health 8. Wellness Hal Rosenbluth President, Health &We| |ness Division Peter Hotz President, Take Care Health Employer Solutions Group Peter Miller President & CEO, Take Care Health Systems, LLC
  81. 81. The Health 8. Wellness Division. .. I A new model of affordable, accessible, high quality health and wellness services I Provides services for Walgreens patients and shoppers I Network of clinics, worksite health centers and pharmacies I Establishes a cost effective provider network for managed care companies I Creates a customerlpatient centric experience that provides satisfaction and inspires loyalty walyzwm
  82. 82. Take Care Resource Relationships. .. Shared Resources: I Clinical Staff Take Care ' 'T_9{iafi’P'a”°'m5 Take Care consumer - Clinical Management Employer Solutions - HR Infrastructure - Brand I Collaborating Physicians - Strategic Leadership Solutions
  83. 83. worksite clinics _ -51. ,2‘ Every Service Relcates to Building ttie Core. .. s . ,) _. /' 4 4 3*- MI‘/ , fl‘ Medical Campuses . _/ _-_. -‘ ' I". ' . 5 Take Cares" Health Clinics ; ' Mail Service “’lj. (. - Home Care ‘
  84. 84. Take. Care. 'H*esa| t’h Employer Solutions Peter Hotz President, Take Care Health Employer Solutions
  85. 85. Leveraging and Enhancing the Core Business. .. I Rapidly growing market segment I 364 sites - 180 clients - 44 states I Low risk, accretive business model — cost-plus pricing I High levels of employer “stickiness” and patient engagement I Positions Walgreens “Closest to the Employer/ Payor” I Significant growth potential through: — Expansion of pharmacy — Introduction of otherwalgreen services — Integration with consumer clinics w Iflalyzeeaa.
  86. 86. Worksite Health Value Proposition - Clients. .. I Quality Care — Clinical Excellence I Compliance & Safety I Cost Savings I Improved Health Status 8. Productivity I Employee Engagement I Integration of Employee Health Management Programs I Employer of Choice walyzwm
  87. 87. Market Growth Accelerating. .. I Demand for on-site health and pharmacy services experiencing rapid growth I Total projected market of over 7,000 sites and $7.3 billion (medical & pharmacy) I 2007 Watson Wyatt survey indicated a 25+% increase in on-site health centers and pharmacies planned for 2008 walyzwm
  88. 88. Market Opportunity - On-site Health Centers. .. Take Care Not offered Health Services In-House other Third Parties
  89. 89. The “E_Iolu'i'ion” of On-site l-lecslth Cerrters. .. Movement toward Primary Care, Wellness, and Integration I Risk Management l ‘ Medical Management l Population Management l Medical OSHA V Disability Wellness! Disease Primary Surveillance Reporting Management Prevention Management Care Exams In-[mes & Referral 1 Workers Case Travel Urgent Mam ement "mess Compensation Manaement Medicine Care 494- Ergonomics EAP pharmacy Emerency Behavioral Absence Emergency 4 Response Health Management Preparedness I Health Advocacy 25% 75% % of Employer Healthcare Costs {(0} wa47/awe:
  90. 90. Scope of Service - iiiicass CU$'i‘Oi"i“il?1 atior. .. PRIMARY SERVICES r Primary Care r. Acute! Extended Episodic Care r. Pharmacy I“, Prevention! Wellness r Occupational Health r Fitness ADDITIONAL SERVICES Disability Management Physical Therapy Laboratory Services Dental 8. Vision Services Woman’s Health Medical Emergency Services Substance Abuse Testing Global Medical Leadership! Direction 71171717171717] . Occupational Health Compliance . Medical Surveillance . workplace Safety i Physical Examinations Retum to Work Programs , Ergonomics . Pharmacy Concierge Services . Retail Pharmacy Network . High-Performance Provider Network . Specialty Pharmacy 8. Infusion Services . Travel Medicine . Disease Management! Wellness Coordination Health Screening! Fairs , HRAs! Biometric Testing Health Coaching , Health Advocacy ZU: z@»zee/ (A.
  91. 91. Engagement Drives Value for Employers. .. On-site clinicians drive improved engagement 8. retention rates which creates value for employers in disease management I Traditional I Integrated 100% 100% 96% 0.8 75% 0.6 60% 51% 0.4 0.2 24% 12% Eligible Contacted Participated Retained for one year walytwu
  92. 92. Turn-Key Worksi'i'e Services. .. F‘ Facility Design T Management of all Clinical 8. Administrative Staff “ Clinical Policies 8. Protocols T Marketing 8. Promotion 5 Information Technology '“ Ongoing Measurement 8. Satisfaction -
  93. 93. Worlct Clcass Pcartriers. ..
  94. 94. E riployer Success Storv. .. . kn‘ Vi _ _ J . _ v. ‘ ' I “ ‘- . ._‘ i«'i. J i - cqc-mrio -~—sEnvicE Wwbl I ‘ V F‘ surrnrmvn - _ Ayeutuaat anew l L RECI STRATION
  95. 95. . /czluec! Clierrts. .. 1"’ _ j i : _ ; , : ". :" ‘ : l'_', ',}: - 1. .724-.3 . .1 ', |,| ‘|L: ‘E I? CREDIT SUISSE _ TOYOTA g+FEE%! L3:L| <.>%: __ 1 , ff , ~ ‘ I c. Q} 3.. J @/ I G L A T F E L T E R QuALco/ wv' “‘. .C.00I‘, S ’_’D‘~’““ J (:3 Agilent Technologies [ I il spr-nt , | Together with NEXTEL ln'«‘| -"' T Z Vermeer I‘ NEWMONT. ’ . TIAA I-. '.. " cu-mum-g Int.
  96. 96. Multiple Drivers of Growth. .. I Core market 8. services I Outsourcing I Expansion of pharmacy offering I Introduction of specialty and infusion services I Employer coalitions I Managed Care partnerships I Collaborative growth with consumer clinics (after-hours, out of area, scope of services) w walgzeeaa.
  97. 97. Take. "Care. ‘Health Consumer Solutions Peter Miller President and CEO of Take Care Health Systems LLC
  98. 98. The Problem A Broken Healthcare System. .. @ The NEW ENGLAND ]OURNALofMEDICINE Primary Care — Will It Survive? Thomas Bodenheimer, M. D. FRiT1Li§? MEDICINE “Family Medicine cannot fully succeed, nor will the needs of the public be met, without fundamental changes in the U. S. health care system. ”
  99. 99. The $yrrrp'i'orhs. .. F ERs bursting at the seams — 40% of patients are non-emergent F 1 of 5 of consumers do not have a regular primary care provider r 80% of consumers believe fundamental changes needed in healthcare system F 65% of consumers could not get a doctor’s appointment on the same day E 72% of consumers found it difficult to get care on evenings/ weekends without going to an ER ZU: z@»zee«/1.
  100. 100. A Compelling Solution. .. I A low cost model built entirely around satisfying patients I Utilizing Nurse Practitioners and Physician Assistants I An integrated team-based approach I An unrelenting focus on quality I Strong utilization of technology to improve the patient experience and efficiency of process Zflczlyaeata.
  101. 101. Inventing Whole New Patient Experience. .. Z€}cz@»zee/ ,z/ .1.
  102. 102. rz/ /I Corlvernierit 0 in I ‘I C *i*i‘orc! c5!; :>le I-Iec; |tl‘i Services. .. Zflcziyxee/ (4.
  103. 103. Critical Success Factors. .. Delighting patients Becoming a destination employer Delivering the highest standard quality of care Providing value to payor community Expansion into other services that leverage competencies Creating value for Walgreens beyond clinics
  104. 104. Patient Satisfaction is Exceptionally High. .. Gallup Survey Results % top box Overall Satisfaction 92% Likelihood to Recommend 91% Carefully listened to by Nurse Practitioner Nurse Practitioner spent enough time
  105. 105. Becoming a Destination Employer. .. Take Care Nurse Prospect Nurse Practitioners Practitioners Difference % top 2 box Overall Satisfaction 92% 81 % Favorability 92% 79% Likelihood to 0 Continue to Work 90 / " Likelihood to 0 Recommend 92 / "
  106. 106. Unit Economics in Mature Sites are Sound. .. I Mature sites are two years old I Expect majority of mature sites to break even in two-three years I Significant synergy benefit to rest of store from Take Care patients — Protocols ensure patients have the choice of where to fill prescriptions I Leveraging Walgreens expertise to further improve staffing model I 273 in 33 markets (16 states) I 400 by the end of FY09 walyzwau
  107. 107. Patient Traffic Increasing in Mature Markets. .. 30 day rolling average 40 T 22 ptslcliniclday total 19 ptslclinic/ day without flu shot + 38% vs. Prior year + 43% vs. Prior year 30 20 I Total with flu shots I Total minus flu shots I Breakeven 10 0 Jul 2006 1 2007 | 2008 Sep
  108. 108. Payor Relationships are Very Strong. .. I National contracts with all major national payers —Aetna, Cigna, Wellpoint, Humana, United, Coventry —Average over 80% of lives covered in markets open more than one year I Providing significant financial value by reducing ER and urgent care visits — 1/3 of visits would have been in ER/ Urgent Care
  109. 109. Significant Additional Revenue Opportunities. .. L Strong consumer interest in new offerings Platform Opportunities Primary Care Procedures Vaccinations EXPan5i°n - Nebulizer treatment - Travel Vaccinations - Cryotherapy - Hep A - Suturing - MMR - Incision 8. Drainage - IPV (polio) - Ear wax - Varicella - STD test and treatment - Pneumonia - Pap Smears - Gardasil Health 8. Wellness Screenings Other - Health Risk Assessment - Routine Physical - women’s 8. Men’s screen - Smoking Cessation Eval - Heart Health - weight Loss Plan - Diabetes screen - Skin exam - Obesity screen - Hearing test - Allergy screen - Employer drug screening Specialty - Infusion Pharmaceuticals . |njectab| es
  110. 110. Leveraging and Enhancing the Core Businesses. .. Major sources of value beyond stand alone value: I Significant number of Take Care patients do not regularly use Walgreens I Enhance Walgreen equity as a place that helps consumers Take Care and Be Well. Zflczlyzeata.
  111. 111. @ take ca re health systems”
  112. 112. C§E. ..£¢$Sl’li3t1.S . ‘:. r svv°er‘s '((}cz@/ zee/ oi.
  113. 113. Levercage cane! Enhance Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer expenence Leverage the best store network in America Transforming community pharmacy Expanding health 8. wellness Expanding specialty pharmacy Broadening 8. deepening payor relationships Major cost reduction and productivity gain Rewiring for growth *"(! ’/ Z€}. z@»zee/ (A;
  114. 114. Enhancing the Core Through Integrated Pharmacy Services Stan Blaylock President, Walgreens Health Services Michael Nameth Divisional Vice President, Specialty Pharmacy Paul Mastrapa Divisional Vice President, Home Care walyzwm
  115. 115. Walgreens Health Services I Delivers an integrated portfolio of convenient health services to improve patient care I Provides cost-effective health solutions to payors and providers I Enhances our high-quality reputation through execution and trusted service I Builds shareholder value by developing deep relationships with our customers walyzwm
  116. 116. Convenient, Cost-Effective Coordinated Care I Retail - Existing I Specialty I Take Care Worksites I Retail - Approved Mail I Medical On-Sites W I Home Infusion! RT I Take Care Clinics I Institutional Z0
  117. 117. Convenierir, Cost-Ettective, Coordincstec! Care Community Pharmacy . E‘ Home Infusion, ‘Online r f. // ll I '_ ‘/ /l Medicaj on_site{_"‘fl. I ‘lg’ . ; _ ~ 3“ NorkSlt_e/ _TalS(”e Pharmacy ‘__ . :. _ . _; «- . tn, » ‘K. W M, ‘ Care Clinics ~ » '1 - . ..J<. «I 3.. ., 1; p _ I * S: ' ' fl. 0 1 ‘ ‘ —". V '_) _ _ , f, ,.. __ 5!’ ’f. .‘7-'. .. , , . i_“'7- ' T‘ ' V ‘ "~V“§i*? ‘ N. ~ Institutional Specialty “. —~. . - “ «'-L5+__, _-J Pharmacy Pharmacy’ ‘rt’? .7‘ ~‘ '3'}. " ’ ‘II: - ( Lb" 7 5)‘ R’ .4 . . 0 Pharmacy ‘ Mail Order Pharmacy ‘ »- . " " Benefit Solutions 311:‘ Zflazézzee/ (4.7
  118. 118. O salty Ptteirrneicy $70 billion industry growing to over $500 billion in 15 to 20 years Leading independent specialty phamiacy Payor-focused, outcomes-driven Simplifying and improving patients’ lives Dedicated disease-focused teams In Multiple fulfillment options
  119. 119. Cancer Is Becoming a Chronic Disease I More than two-thirds of newly diagnosed cancer patients will live at least five years I 10-year survival rate for oncology patients has doubled in the last 30 years I Approximately 50% of the biotech drug pipeline targets cancer I New oral oncology products are frequently prescribed with estimated revenues over $5 billion I Over 1.2 million cancer patients with Walgreens Source: American Cancer Society, Cancer Research UK, Walgreens Research w w. .4,-me.
  120. 120. Disecsse-Focusec! Teams [- Organized into care management teams with specialized knowledge and understanding Provide continuity with providers and their office staff Facilitate patient interaction and compliance Foster accountable customer service and comprehensive pharmacy care Dedicated pharmacists and nurses in charge of managing the patient experience ZU: z@»zee«/1.
  121. 121. Walgreens Specialty Pharmacy Improves Patient Compliance Medication Possession Ratio (MPR) 100% 92% 88% 80% I Managed by Walgreens Specialty 60% Pharmacy 40% I Unmanaged 20% 0% Multiple Sclerosis Rheumatoid Arthritis W walguem.
  122. 122. Exceptional Patient Satisfaction 2007-2008 Overall 96% - 98% Pharmacist Care 95% - 99% Packing Accuracy/ Reliable Delivery 97% - 99% Recommend Our Services 97% - 98% Prepared by CJ Olson Market Research Inc. beginning April 2007.
  123. 123. Wc§lgreei'ts Home lntusion Lowers I-lospi'i'c3|i. '£c5'i‘ion Rates tor I-lemoptlilics Pcatients l‘ Substantially lower hospitalization rates for hemophilia patients cared for by Walgreens infusion nurses: — 5.7 admissions per 100 PY vs. 21.2 admissions per 100 PY r Average hospitalization cost per admission for a patient with hemophilia of $75,000 Hospitalization Rates (Number of Admissions per 100 Patient Years) 0 10 20 30 40 Patients cared for by agency 3&5 nurses Benchmark study patients* I 21-2 Patient cared for by Walgreens N 5] Home Infusion nurses *Hemophi| ia Surveillance System Project Investigators, 1998. ZU: z@»zee«/1.
  124. 124. Proven Cost Scaxtings for ca lvlcajor Pcayor r Per Member Per Month (PMPM) Specialty Pharmacy 150 140 Spending Indexed to 100 130 P 120 110 100 90 80 70 P 60 50 40 30 20 10 0 Walgreens Implementation (Medical Benefit) 2002 I l 2003 I I l I Walgreens Implementation (Pharmacy Benefit) 2004 - 9%) v . ... . , ‘“ I I 2005 1 , _ . * 2006 Zflalyzzee/ oz.
  125. 125. Multiple Fulfillment Options Central fafifi Community Fulfillment J , ,‘ _4_J__Lj_ Pharmacy Home Ambulatory Infusion Treatment Centers wuzgum
  126. 126. Convergence of Speci alty Pi‘iCii'lfiCEC‘, ' and Home Intusiorl Business . D.°_59!'i_Pt. l9'? ? Therapies: Cost Per Patient! Year: Home . '!‘f! J_‘-“! i_9'. .‘ Local - Nutrition - Anti-infectives - Antivirals - Hydration - Pain Management - Heart Failure - Oncology Highest Touch $5,000—$40,000 Specialty Infusion Loca| !Central - Rheumatoid Arthritis (RA) - Multiple Sclerosis - Gaucher’s - Hemophilia - Psoriasis - Oncology - Autoimmune Conditions Patient Interaction $7,500—$300,000 Specialty Di_str_ibut_i7on Central - RA - Multiple Sclerosis - Hepatitis - Growth Disorders - Crohn’s - Fertility - Asthma - Psoriasis - Oncology -RSV High Touch $7,500—$50,000 Zflzzézzee/ (A.
  127. 127. Home Infusion Respiratory Therapy Services I Leading provider of home and specialty infusion services Convenient, cost-effective care I Unique, flexible model that leverages I More than 100 infusion pharmacy °"" brand and RT sites in 36 states and the core I Over 800 nurses and 250 pharmacists Zflczlgzzeexa.
  128. 128. Benefits of Home Infusion Leadership Coordinated site of care management Biotech, infusible pipeline management Typical home infusion patient takes an additional 6 Rxs Broader and deeper payor relationships
  129. 129. Levercage cane! Enhcartce Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance ‘a the * . '. customer 3 experience Leverage the best store Transforming community pharmacy Expanding health 8. wellness Expanding specialty pharmacy Broadening 8. deepening payor relationships Major cost reduction and productivity gain Rewiring for growth »", '(/ If w447». eem:
  130. 130. Payor Strategy I Ensure access to lives and a fair reimbursement for services I Enhance the franchise through selling our portfolio of value-added services I Promote independence and partner to drive share I Improve and develop senior relationships with key payors to execute on all of the above
  131. 131. Sources of Walgreens Rx Revenue Medicaid MC 05 cash that contract directly Other stand-alone PBMs Big 3 PBMs W Estimated from Walgreens Rx and revenue data. %@“a“_
  132. 132. Sources of Walgreens Rx Revenue Medicaid MC Os that contract directly Other stand-alone PBMs Big 3 PBMs W Estimated from Walgreens Rx and revenue data. %@“a“_
  133. 133. Partnering with Payors I MCOs without captive PBMs I MCOs with captive PBMs I PBMs I Employers I Government
  134. 134. Expanding Relationships with Blues Plans I Eldsting Specially BCBS Clients I Prime Therapeutics BCBS Clients I Home Infusion/ Specialty BCBS Clients
  135. 135. Expanding Relationships with Blues Plans | :| Existing Specialty BCBS Clients I Prime Therapeutics BCBS Clients I Home Infusion/ Specialty BCBS Clients
  136. 136. Expanding Relationships with Blues Plans E] Existing Specialty BCBS Clients I Prime Therapeutics BCBS Clients I Home Infusion/ Specialty BCBS Clients '((}cz@/ zeaa.
  137. 137. C? §:i, ;aa~s‘Eii: :;r1is ; “:. r sWai‘3 '((}cz@/ zee/ oi.
  138. 138. Levei'cage cane! Ermcaruce Our Core Business. .. Strategic Initiatives Slowing store growth Re-inventing the customer experience Enhance the customer ff, ‘ experience Leverage the best store g network in ’ ‘ 5 Transforming community pharmacy Expanding health & wellness Expanding specialty pharmacy Broadening & deepening payor relationships Major cost reduction and productivity gain Rewiring for growth {(0} wag; /Lew:
  139. 139. Rewiring for Growth Wade Miquelon Senior Vice President & Chief Financial Officer
  140. 140. Levei*caging S'i'i'ca'i'egies to Create V cslue. .. “More from the Core” Leverage the Enhance best store j g; ‘', ,’, ,--_ the network inij/ ft" ' E . customer America I 4 i ‘ ’J l j . experience Major cost reduction and productivity gain Zflzzézzee/ (4.
  141. 141. Best l. evercaging the tore i~! etwork in ii‘. Ttericca. .. “More from the Core” Leverage the Enhance best store i 75%, , , ,3,‘ the network in = = - customer America " 4 i “J M j, experience 1;? -A Major cost reduction and productivity gain Zflzzézzee/ (4.
  142. 142. Slowing Store Growth. .. 3.5 1? : .2 +1 ,300 in E 3 years in ‘3. 5 Average Average Average Average . _,_, Age: Age: Age: Age: 13.2 years 10.7 years 5.7 years 1.5 years 0 1,000 2,000 3,000 4,000 5,000 6,000 7,700 W wagmm
  143. 143. Ei’ii'iCEt'iCli'iC5 the Customer Experience. .. fil “More from the Core” Leverage the Enhance best store [1 ; —;<', , , l--_ the network in H as » customer America " , i “J M j, experience . r;~-A Major cost reduction and productivity gain Zflzzézzee/ (4.
  144. 144. Enhancing the Customer Experience. .. Gross Profit % Efficient 8: Streamline Optimize Improve Total Compelling Supply Pricing & Shopping Assortment Chain Promotions Experience W Tllzgxzeaol.
  145. 145. Rewiring tor Gro:1tt°n. .. “More from the Core” Leverage the Enhance best store [1 ; —;<', , , ,3,‘ the network in H gr . customer America " , i “J J J, experience . r;~-A Major cost reduction and productivity gain Zflzzézzee/ (4.
  146. 146. Rewiring tor Growi‘l°r. .. What is it’? Effectiveness Efficiency Resulting in a cost, culture, and capabilities transformation to support our strategy ZU: z@»zee«/1.
  147. 147. What Rewiring for Growth Focuses On. .. I Ensure we have a sustainable growth model whereby SG&A is accretive over-time I Redesign the operating model for more — Enhanced customer focus — Improved agility — Innovation
  148. 148. Major Cost Reduction and Productivity Gain. .. Costs Have Been Growing Too Rapidly Generics lower sales, increasing SG&A as % to Sales 0 25 5 23.2% 235% 223% 22.5"/ 20% , 21.6% 22-1% ° SG&A as%to Sales _ Gross ProfIt$ Growth 15% r 10% . §G&A$ srqmn 5% ' Without the vacation accrual credit, SG&A expenses would have increased 3.0 percent 0% Q3-03 > Q4-08 @ walyaeeaa.
  149. 149. We Are Looking cat ca Large Cost Bcase. .. Scope F Includes all SG&A spend across headquarters and field r Focus is on headquarters and the complexity driven by its choices across the organization F Targets $14.6B in expenses, and $0.8B in Cap Ex. ZU: z@»zee«/1.
  150. 150. We Are Targeting SIB in Annual Cost Reduction. .. Opportunity Targeted Description FY ‘11 Benefit _ _ - Standardize specifications, Strategm S°"r°'"9 enforce compliance and 25% of Indirect Spend leverage scale ’ - Zero base and focus on “must have” or corporate overhead differentiating work 500/ and Store Labor - Lower complexity from ° efficient assortment, product flows, and policies - Improve service levels, foster customer loyalty and POWER / Workload reduce costs Balancmg - Free up time for pharmacists to offer new clinical services Total:
  151. 151. Annual Benefits targeted by FY 11.. . Net Benefit After One Time Costs One-Time $300 - $400 Million Costs over two years Additional Operational and Working Capital Benefits - $500 million reduction in working capital from category management initiatives - Better customer satisfaction
  152. 152. Strategic Sourcing of Indirect Spending. .. Walgreens vendor concentration Value Drivers ‘°°°"’ I Fragmented vendor base 30% $353 Spend I Multiple systems 3 5 60% I Range of specifications g C 0 I Distributed decision rights E 40% <1% vendors I Ad hoc demand management make 30% 20% of spend MO I I I 15,000 30,000 45,000 60,000 Number of vendors ? flz@2zeex4.
  153. 153. This Is Going to Be CI Phased Effort - We Are on Our Way. .. Phase 1 — Phase 2 — Phase 3 — opportunity assessment Opportunity detailing Implementation Identify Iterative Process Quick wins & accelerators
  154. 154. Financial Objectives Wade Miquelon Senior Vice President & Chief Financial Officer
  155. 155. Short-Term Environment is Challenging. .. Front-End Comp Script Comp** 1.1% 0.7% -0.2%*"* As of Oct. 28th, 2008 Adjusted for Day-Fa| l @ *** Adjusted for Hurricanes Gustav and Ike ulzgleaa
  156. 156. Long-Terrn Fincancical Objectives. .. Eps Total Growth Shareholder Targets Returns Zflzzézzee/ (4.
  157. 157. Topline Gi'o~wtl'u. .. Goal: Industry Leading Sales Growth I. 1;: 7 / H‘ - ) ' V . — '1‘-V" * r , ’ ‘’', :'_5yZ€P«. ».'; ). U ~ : .F: '_"F‘! .~{ ' ; ' ' — I J/ -5 5' ‘ ; . '=, .x. g '. “‘ ~ f '>'~5~—_ . V. -.'. ‘Q -I, ——r, —:. .-, -5" . ‘, J, ‘-3: U. : J I‘ I, . mg 5.2: 2 rtr E T: .fi'iE: ' ism rm: re; 4 at- I . _=. ’t:1'3“4*‘L. ;as. ... ,, . .,. _‘. .¢; __. ;. r.’“"" I _ ’ , _J, “.; ’=EEE: - 1' | 4 I I I. ,3 "" ~ Targeted/ Focused Growth 7 Retail Pharmacies Other Pharmacies and Health & Wellness Locations 5,461 _ _. , 4,935 4,252 f F +. —. ‘» 2003 2004 2005 2006 20071 20031 20121 ‘$1,’! ) Z€}a. @/Lee/01. . .“_. .,. w.. ... -.- . an
  158. 158. EPS Growth Targets. .. Goal: Return to Strong Double-Digit EPS Growth Leverage the best store network in America customer expefience Major cost reduction and productivity gain
  159. 159. EPS Growth Targets. .. Goal: Return to Strong Double-Digit EPS Growth 25% 20%» 15% 10%- 5%‘ 0% EPS Growth 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 Iflalyaeeaa. IIIIIIIIIIIIIIIIIIIIIIIIIII
  160. 160. Walgreens Health Services 8. Health 8. Wellness Division Impact on EPS. .. W€z. ..*¢. :c4.. .. r"" take ca re health systems“ Zflczlyxzeaa.
  161. 161. ROIC Focus. .. 600 400 200 Goal: Steady Increase in ROIC Net New Organic Drugstores Organic‘: J Growth o4 os os or or; 09 1o 11 12 13 14 20% C Total Company 15% 10% 5% 0% 2005 2006 100 Efficient Assortment 3 I J 7 J 7 7 . ..«»-~‘- ' '1 $13.23 “’ 75 . .» “IV Q / / 8 J , / _: _; so . =1 / . as 25 / / J I J $3 is 1531.7 48'}; 57% 70% i_ no 1o 2o 3o 4o so so 7o so go 1oo = /iorrtems C Mature Stores 2007 2008 ZU: z@»zee/ (4.
  162. 162. Strong Balance Sheet. .. Goals 9 ”'°°“V" &P AAA Aaa _ AA+ Aa1 I Preserve investment AA Wm M2 WM-r grade credit ratings AA- Aa3 A+ WAG A1 I Maintain strong A A2 WAG Ii uidi A‘ A3 q ty BBB+ CV3 Baa1 BBB Baa2 CV8 I Financial flexibility to BBB_ Em 5"PP°"5"a*°9‘°‘ BB+ Bat BB Ba2 BB- Ba3 B+ B1 B B2 B- RAD B3 CCC+ Caa1 CCC Caa2 RAD Tflzlgxeaa.
  163. 163. Strong Balance Sheet. .. Goals I Preserve investment grade credit ratings I Maintain strong liquidity I Financial flexibility to support strategies I I Flexibility to acquire if that is the best ROIC proposition I Share buyback or dividend increase Zflczlyzeata.
  164. 164. Total Shareholder Return. .. Goal: Strong Top Tier Shareholder Returns Total Shareholder Returns 5 Year 10 Year 20 Year WAG 5% 49% 1.739% cvs I 123% it 64% it 539% CRAD if -84% -98% -88% WMT J 15% 141% 1,634% TGT 36% 195% 1.775% S&P 500 29% 35% 565% @ As ofsisoioo magma
  165. 165. C§: ..; es‘irli:5i1.s . ‘:. r* s1srer‘s '((}cz@/ zee/ (4.
  166. 166. I Z(}cz@/ tee/ (4.

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