INDIANA UNIVERSITY

FALL 2002

• WHO?

• WHAT?

• WHEN?

• WHERE?

• WHY?

WHO...

• LISA EHLERS - DISTRICT MANAGER

• BRIAN GARISH - STORE MANAGER

• DAWN HARLOW - STORE MANAGER

WHAT...

• WE’RE HERE TO TALK ABOUT...

WHY...

• WE WANT TO SELL YOU ON RETAILING, MORE SPECIFICALLY…

CHAIN DRUG INDUSTRY

• 3 BILLION PRESCRIPTIONS FILLED IN THE UNITED STATES IN 2001

• TOP 4 CHAINS DO 82 BILLION IN ANNUAL SALES

• 14,000 STORES…

• 46% INCREASE IN PRESCRIPTIONS IN NEXT 4 YEARS

The Boomer Wave is Rolling to Shore…

0

10

20

30

40

50

Under 25 25-34 45-54 65+

Population in Millions, by AgePopulation in Millions, by Age RangeRangePopulation in Millions, by AgePopulation in Millions, by Age RangeRange

35-44 55-64

Customer Count Is UP!

Slow Down Growth? You’ve Got to Be Kidding!

Slow Down Growth? You’ve Got to Be Kidding!

Net Store Growth, Last 2 YearsNet Store Growth, Last 2 YearsNet Store Growth, Last 2 YearsNet Store Growth, Last 2 Years

0

Top 5 Drug Chains

365365200

400

600

800

-200

-400

Slow Down Growth?Slow Down Growth? You’ve Got to Be Kidding! You’ve Got to Be Kidding!

Net Store Growth, Last 2 YearsNet Store Growth, Last 2 Years

0

Walgreens

699699

-334

-334

200

400

600

800

-200

-400Next 4 Drug Chains

27 Consecutive Record Years…Sales (in Billions)Sales (in Billions)Sales (in Billions)Sales (in Billions)

75 80 85 90 95 010

5

10

25

20

15

0

200

400

1,000

800

600

Recession Years

Earnings (in Millions)Earnings (in Millions)Earnings (in Millions)Earnings (in Millions)

FY01 Sales Up 16.1%FY01 Sales Up 16.1%FY01 Earnings Up 15.3%FY01 Earnings Up 15.3%

WHERE DOES WALGREENS RANK

• RANKED #1 IN THE FOOD DRUG INDUSTRY IN FORTUNE’S MOST ADMIRED COMPANIES IN AMERICA

• RANKED #2 IN THE USE OF CORPORATE ASSETS

• RANKED #3 IN EMPLOYEE TALENT• RANKED #2 IN QUALITY IN MANAGEMENT

WHERE DOES WALGREENS RANK

• 28.7 BILLION IN SALES• 3,883 TOTAL STORES• 12% PHARMACY MARKET SHARE IN US• 78TH ON FORTUNE 500 RANKING• NATION’S LARGEST DRUG STORE CHAIN &

11TH LARGEST RETAILER• SERVE 3 MILLION CUSTOMERS PER DAY

Pharmacy Sales…

Daily Average Per StoreDaily Average Per StoreDaily Average Per StoreDaily Average Per Store

WalgreensRite-Aid Eckerd CVS

$7,400$7,400$9,500$9,500 $8,900$8,900

$13,500

Front-End Sales…

Daily Average Per StoreDaily Average Per StoreDaily Average Per StoreDaily Average Per Store

WalgreensRite-Aid Eckerd CVS

$4,500$4,500 $5,000$5,000 $5,100$5,100

$9,100

Performance Snapshot…

97 98 99 00 01

SalesSales 97 98 99 00 01

EarningsEarnings

97 98 99 00 01

Shareholders EquityShareholders Equity

97 98 99 00 01

Stock PriceStock Price

27 Consecutive Record Years…

Sales (in Billions)Sales (in Billions)Sales (in Billions)Sales (in Billions)

75 80 85 90 95 010

5

10

25

20

15

0

200

400

1,000

800

600

Earnings (in MillionsEarnings (in Millions)Earnings (in MillionsEarnings (in Millions)

FY01 Sales Up 16.1%FY01 Sales Up 16.1%FY01 Sales Up 16.1%FY01 Sales Up 16.1%

FY01 Earnings Up 15.3%FY01 Earnings Up 15.3%FY01 Earnings Up 15.3%FY01 Earnings Up 15.3%

WHEN & WHERE...

• WEDNESDAY OCTOBER 23RD

• KELLEY SCHOOL OF BUSINESS

• 2 INTERVIEW SCHEDULES