Credit Suisse Healthcare Conference Wade Miquelon CFO, EVP & - - PowerPoint PPT Presentation

Credit Suisse Healthcare Conference Wade Miquelon CFO, EVP & President International

November 12, 2013

 Certain statements and projections of future results made in this

presentation constitute forward-looking statements that are based on current market, competitive and regulatory expectations that involve risk and uncertainty. Except to the extent required by the law, we undertake no obligation to update publicly any forward-looking statement after this presentation, whether as a result of new information, future events, changes in assumptions or otherwise.

 Please see our latest Form 10-K &10-Q and subsequent filings for a

discussion of risk factors as they relate to forward-looking statements.

 Today’s presentation includes certain non-GAAP financial measures,

and we refer you to the Appendix to the presentation materials available on our investor relations website for reconciliations to the most directly comparable GAAP financial measures and related information.

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Safe Harbor and Non-GAAP

To help people get, stay and live well Our Purpose Our Vision To be the first choice in health and daily living for everyone in America – and beyond

Our Purpose & Vision

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The Best Corners in America

8,131 Locations… …serving 40M customers per week

90-Day at Retail Generic Utilization and Conversion Flu Shots Administered Retail Pharmacy Sales and Scripts Retail Pharmacies, 24 Hour, Drive-Thru Employer of Pharmacists Certified Immunizing Pharmacists Certified Pharmacy Technicians

Ranked #1 in…

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Worksite and Retail Clinics Hospital On-Site Pharmacies Home Infusion

Offering the Best in Health & Wellness

• 2%
• 1%

0% 1% 2% 3%

Q1 (J 1 (J-M) M) Q2 (A 2 (A-J) Q3 (J 3 (J-S) WAG

• 0.3

0.3%

• 0.7

0.7% 2. 2.2% 2% Dr Drug ug A A 1.4%

• 0.4

.4%

• 1.0

.0%

Front t End Comp

YOY % Change

WAG Drug A

Front End Gaining Momentum

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• 2%
• 1%

0% 1% 2% 3%

Q4 (D- 4 (D-F) Q1 (M 1 (M-M) M) Q2 (J 2 (J-A) WAG

• 1.4

1.4% 0. 0.2% 2% 1. 1.8% 8% Dr Drug ug B B 0.3% 0.4%

• 0.3

.3%

Drugstor tore A Calendar Drugstor tore B Calendar

WAG Drug B

• 2%

0% 2% 4% 6% 8% 10%

Q1 (J 1 (J-M) M) Q2 (A 2 (A-J) Q3 (J 3 (J-S) WAG 6. 6.6% 6% 7. 7.6% 6% 8. 8.5% 5% Dr Drug ug A A 4.7% 5.0% 4.5%

Rx Script t Comp

YOY % Change

WAG Drug A

Continued Strong Growth in Prescriptions

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• 2%

0% 2% 4% 6% 8% 10%

Q4 (D- 4 (D-F) Q1 (M 1 (M-M) M) Q2 (J 2 (J-A) WAG 6. 6.7% 7% 7. 7.0% 0% 7. 7.2% 2% Dr Drug ug B B 3.0%

• 0.1

.1% 0.0%

Drugstor tore A Calendar Drugstor tore B Calendar

WAG Drug B

Create a Well Experience Establish an Efficient Global Platform Transform the Role of Community Pharmacy

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Three Strategic Growth Drivers

Have opened over 500 Well Experience stores and 12 flagship stores to date

Customer Value Innovative Products and Services Systematic Localized Offering Most Relevant Network and Formats

Launched Boots No7 for women and Botanics in flagships and Phoenix market Expanded offering of Boots products by launching No7 for men nationwide More than 2/3 of all Daily Living purchases involve Balance Rewards loyalty card Private brand penetration increased to 22.3% in Q4 FY13 Over 85 million Balance Rewards members registered to date

Progress

Launched 400 new private brand items in Q4 FY13 (2,225 in FY2013)

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Create a Well Experience

Create a Well Experience

Create a Well Experience - Flagships

Create a Well Experience - Flagships

Boots Brands Enhance Beauty Offering

Phoenix New York City

190 store roll out complete Displays vary dependent upon type of store Soon to be available in select Walgreens Look Boutique’s

Own Brand Innovation Enables Record Share

Customer Led Innovation - Balance Financial

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Direct deposit No minimum balance Cash withdrawals Earn points with Balance Rewards Manage account anywhere Use Balance Financial anywhere

Corporate Partners

398 Take Care clinics rebranded as Healthcare Clinics at Walgreens Expanded services to include diagnosis and treatment of four chronic diseases 8.6 million immunizations and vaccinations administered in FY13 Established partnership with Theranos Increased 90-day at retail penetration & announced Smart90 with Express Scripts

Progress

Formed strategic relationship with Health Systems, ACOs and Cystic Fibrosis Services, Inc.

Strategic Partnerships Differentiated Experience Comprehensive Care

Transform the Role of Community Pharmacy

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Workplace Health Centers & Pharmacies Community Pharmacy & Centers of Excellence Specialty Pharmacy, Infusion Services & Home Infusion Hospital Onsite Pharmacies Mail & Mobile Pharmacy Take Care Clinics

Well Network

Innovating - Leveraging Assets & Capabilities

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Lab tests on samples as small as 1/1,000 the size of a typical blood draw Results to you and your doctor in less than four hours, on average Pricing dramatically low rates and accepting major insurance carriers as well as Medicare and Medicaid.

AmerisourceBergen began distributing branded drugs on September 1, 2013 Purchased $224M of AmerisourceBergen stock Formed JV in Bern, Switzerland Exceeded first year combined synergy estimate Began launching Boots products in Walgreens stores

Progress

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Design a Winning Global Organization Optimize the Global Supply Chain Expand Own Brand Portfolio Leverage Best Practices, Capabilities, & Innovation Pursue New Market Opportunities

Alex Gourlay appointed EVP, Presioent of Customer Experience and Daily Living

Establish an Efficient Global Platform

Richard Ashworth appointed Healthcare Director, Health & Beauty UK and Republic of Ireland

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Alliance Boots Transformational Partnership

UK leading skincare brand No1 healthcare brand in the UK

17.8 M Members

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AmerisourceBergen - Shifting the Paradigm

Strategic 10-year agreement Expanded service levels and more frequent deliveries Improved economics via operational efficiencies and rates

Distribution Agreement

Supply chain and procurement Customer and supplier collaboration Domestic and international growth

Strategic Collaboration

Align Common Interests Participate in joint value creation

Equity Alignment

GLOBAL PHARMACEUTICAL SUPPLY CHAIN & PRODUCT INNOVATION

• #1 Pharmaceutical Wholesaler in

Europe

• Health & Beauty Private Brands

Innovation

• Global New & Emerging Market

Entry U.S. DRUG DISTRIBUTION

• Specialty Distribution Market

Leadership

• Good Neighbor Pharmacy

Network

• Extensive Manufacturer

Relationships

8,000+

Drugstores

700+

Retail & Onsite Clinics

FULL MARKET ACCESS

• ESI Multiyear Contract, Preferred

in PDPs

• Omni-channel Leadership
• Differentiated Store Experience

~85M

Balance Reward Registrations

26,000+

Pharmacists

Combined 12,000+ global store footprint

3,300+

Drugstores

170,000+

Wholesale Clients

~17.8M

Boots Advantage Card Members

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Countries Served

35,000+

Active Customers in Vaccines, Biological & Injectables

4,700+

Good Neighbor Pharmacy Network

4,500+

Oncologist Practices Served

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U.S. Distribution Centers

Unprecedented, integrated retail/wholesale global supply chain

#1 Global Pharmacy-Led Health, Beauty and Daily Living Enterprise & Network

A Globally Integrated Team

Creating Value for Shareholders

Significant Global Revenues Strong Cash Generation Returning Cash to Shareholders Sound and Flexible Balance Sheet

72.2 71.6 72.2

$0 $20 $40 $60 $80

FY11 FY12 FY13 Revenue ($ in Billions)

34.2 38.7 38.4

$0 $20 $40 $60

FY11 FY12 FY13 Revenue ($ in Billions)

U.S. Retail Pharmacy U.S. Health & Daily Living International Wholesale International Health & Beauty

Goal

+

FY16 Goal

$130B

Revenue

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Robust EBIT Growth

Alliance Boots financials translated to U.S. dollars at a rate of $1.56/£

Creating Value for Shareholders

Significant Global Revenues Robust EBIT Growth Strong Cash Generation Returning Cash to Shareholders Sound and Flexible Balance Sheet

4,358 4,097 4,674

$0 $2,000 $4,000 $6,000

FY11 FY12 FY13 Adjusted FIFO EBIT ($ in Millions)

1,744 1,931 2,002

$0 $1,000 $2,000 $3,000

FY11 FY12 FY13 Trading Profit ($ in Millions)

$9.0B - $9.5B

Adjusted FIFO EBIT

$1B

Combined Synergies

including Generics Branded Products (Pharma) Branded Products (Non-Pharma) Own Brands and General Merch. Goods not for Resale Front of Store Growth

FY16 Goal +

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Alliance Boots financials translated to U.S. dollars at a rate of $1.56/£

Creating Value for Shareholders

Significant Global Revenues Strong Cash Generation Returning Cash to Shareholders Sound and Flexible Balance Sheet

3,643 4,431 4,301

$0 $2,000 $4,000 $6,000

FY11 FY12 FY13 Cash Flow From Operations ($ in Millions)

2,042 2,498 2,571

$0 $1,000 $2,000 $3,000

FY11 FY12 FY13 Total Cash Flow ($ in Millions)

$8.0B

Operating Cash Flow FY16 Goal +

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Reinvest in Core Strategies Invest in Strategic Opportunities Return Cash to Shareholders Maintain Strong Balance Sheet and Financial Flexibility

adhering to Capital Allocation Policy

Robust EBIT Growth

Alliance Boots financials translated to U.S. dollars at a rate of $1.56/£

0.14 0.14 0.15 0.15 0.17 0.21 0.26 0.31 0.38 0.45 0.55 0.70 0.90 1.10

0.00 0.20 0.40 0.60 0.80 1.00 1.20

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Creating Value for Shareholders

Significant Global Revenues Strong Cash Generation Returning Cash to Shareholders Sound and Flexible Balance Sheet

3,643 4,431 4,301

$0 $2,000 $4,000 $6,000

FY11 FY12 FY13 Cash Flow From Operations ($ in Millions) Total Cash Flow (£ in Millions)

17.5% CAGR

Dividends Per Share

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Robust EBIT Growth

2,042 2,498 2,571

$0 $1,000 $2,000 $3,000

FY11 FY12 FY13 Alliance Boots financials translated to U.S. dollars at a rate of $1.56/£

Creating Value for Shareholders

Significant Global Revenues Strong Cash Generation Returning Cash to Shareholders Sound and Flexible Balance Sheet

2.1 5.1

$0 $2 $4 $6

Cash Debt FY13 Net Debt ($ in Billions)

1.0 10.2

$0 $5 $10 $15

Cash Debt FY13 Net Debt ($ in Billions)

$11.0B

Net Debt FY16 Goal +

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maintaining investment grade ratings

Moody’s S&P 500 Baa1 BBB

Robust EBIT Growth

Alliance Boots financials translated to U.S. dollars at a rate of $1.56/£

$20 $25 $30 $35 $40 $45 $50 $55 $60 $65 11/1/2010 12/1/2010 1/1/2011 2/1/2011 3/1/2011 4/1/2011 5/1/2011 6/1/2011 7/1/2011 8/1/2011 9/1/2011 10/1/2011 11/1/2011 12/1/2011 1/1/2012 2/1/2012 3/1/2012 4/1/2012 5/1/2012 6/1/2012 7/1/2012 8/1/2012 9/1/2012 10/1/2012 11/1/2012 12/1/2012 1/1/2013 2/1/2013 3/1/2013 4/1/2013 5/1/2013 6/1/2013 7/1/2013 8/1/2013 9/1/2013 10/1/2013 11/1/2013

Creating Value for Shareholders

Total Shareholder Return 1 Year 72.2% 2 Year 94.2% 3 Year 84.3%

Thank You

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