2. Forward-Looking and
Cautionary Statement
This is an oral presentation which is accompanied by slides. Investors are
This is an oral presentation which is accompanied by slides. Investors are
urged to review Rite Aid’s SEC filings.
urged to review Rite Aid’s SEC filings.
During today’s presentation forward-looking statements may be made.
During today’s presentation forward-looking statements may be made.
Such statements are subject to certain risks and uncertainties that could
Such statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those expressed or implied in
cause actual results to differ materially from those expressed or implied in
the forward-looking statements. Consequently, all forward-looking
the forward-looking statements. Consequently, all forward-looking
statements made during this presentation are qualified by those risks,
statements made during this presentation are qualified by those risks,
uncertainties and other factors.
uncertainties and other factors.
Please reference Rite Aid’s SEC filings, which are available on its web site,
Please reference Rite Aid’s SEC filings, which are available on its web site,
for a detail description of factors that could cause actual results to differ
for a detail description of factors that could cause actual results to differ
materially from those expressed or implied in such forward-looking
materially from those expressed or implied in such forward-looking
statements.
statements.
Also during today’s presentation, a non-GAAP financial measure is
Also during today’s presentation, a non-GAAP financial measure is
referenced. The definition and purpose for using this measure and
referenced. The definition and purpose for using this measure and
historical and prospective reconciliations to the GAAP measure
historical and prospective reconciliations to the GAAP measure
are in our Form 8-K we furnished to the SEC which is available
are in our Form 8-K we furnished to the SEC which is available
on Rite Aid’s web site.
on Rite Aid’s web site.
2
6. A Stronger National Drugstore
Chain with 5,000 Stores
Rite Aid is the Largest Drugstore Chain in the
Eastern US and the 3rd Largest in the Country
6
7. Strong Position in 73% of
Our Major Markets
New York Raleigh Norfolk
Los Angeles Lexington Rochester
Pittsburgh Sacramento Charleston WVA
Philadelphia San Diego Lansing
Detroit Seattle Toledo
Boston Spokane Burlington
Atlanta Bakersfield Riverside CA
Baltimore Providence Richmond
Washington DC Portland OR Santa Barbara
Buffalo Portland ME Harrisburg
8. Strong Position in 73% of
Our Major Markets
Hartford Binghamton Erie
Louisville Monterey Wheeling
Albany NY Redding Youngstown
Albany GA Parkersburg Johnstown
Greensboro
Syracuse Wilkes-Barre
Grand Rapids
Flint Medford
Fresno
Bangor Greenville-
Charlottesville
Utica New Bern
Greenville-
Yakima
Spartanburg
Charlotte
9. Benefits of the Acquisition
► Enhanced competitive position
► Strong East coast market share
► Expected to accelerate revenue and
earnings growth
► Expected annual net cost savings of
approximately $300 million on
a full run-rate basis
► Potential to further realize additional
cost savings and revenue synergies
9
10. Great Progress Integrating
Acquired Stores
► Integrated six new distribution centers
► Rite Aid assortments, private brand in all
1,800+ stores
► Replaced systems in 2/3 of the stores
► 20% of minor remodels completed
► Consolidated back office functions like
payroll and accounting
► Delivered more cost savings synergies,
than originally expected
11. Improved Performance
of Core Stores
► Same store sales increased by 1.3%
► Pharmacy same store sales growth at 1.7%
► Front end same store sales up 0.7%
► Customer satisfaction improved
15. Our Progress to Date
► Systems conversions complete
► Field management alignment complete
► Nearly all stores in close proximity
combined
► Minor remodels complete in almost 70%
of acquired stores
On Track to Complete
the Integration by October!
15
16. What We’re Hearing
“I like the appearance of the store. It is much
more open, wider and inviting.”
“They are clean, organized and have a larger
selection.”
“I don’t have to wait for my prescriptions.”
“Now I can find the stuff I need quickly.”
“It’s easier to find make-up and over the
counter medicine. The make-up is better
organized with more selection.”
16
32. Free Rite Aid Rx Savings Card
► Pilotin Michigan stores
► Savings on 10,000
prescription drugs
▪ 400 generics at $8.99 for 30
days; $15.99 for 90 days
▪ 20% discount on most other
generics, most brands
▪ 10% off Rite Aid private brand,
including 1,500+ over the
counter medications
32
