Annual Meeting of Stockholders. June 25, 2008

Transcription

1 Annual Meeting of Stockholders June 25,

2 Forward-Looking and Cautionary Statement This is an oral presentation which is accompanied by slides. Investors are urged to review Rite Aid s SEC filings. During today s presentation forward-looking statements may be made. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Consequently, all forward-looking statements made during this presentation are qualified by those risks, uncertainties and other factors. 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 materially from those expressed or implied in such forward-looking statements. Also during today s presentation, a non-gaap financial measure is referenced. The definition and purpose for using this measure and historical and prospective reconciliations to the GAAP measure are in our Form 8-K we furnished to the SEC which is available on Rite Aid s web site. 2

3 3 Mary Sammons Chairman, President & CEO

4 Completed the Brooks Eckerd Acquisition

5 Completed the Brooks Eckerd Acquisition 5

6 A Stronger National Drugstore Chain with 5,000 Stores Rite Aid is the Largest Drugstore Chain in the Eastern US and the 3 rd Largest in the Country 6

7 Strong Position in 73% of Our Major Markets New York Los Angeles Pittsburgh Philadelphia Detroit Boston Atlanta Baltimore Washington DC Buffalo Raleigh Lexington Sacramento San Diego Seattle Spokane Bakersfield Providence Portland OR Portland ME Norfolk Rochester Charleston WVA Lansing Toledo Burlington Riverside CA Richmond Santa Barbara Harrisburg

8 Strong Position in 73% of Our Major Markets Hartford Louisville Albany NY Albany GA Greensboro Grand Rapids Fresno Charlottesville Greenville- Spartanburg Charlotte Binghamton Monterey Redding Parkersburg Syracuse Flint Bangor Utica Yakima Erie Wheeling Youngstown Johnstown Wilkes-Barre Medford Greenville- New Bern

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

12 New Store Development Continued 120 New Customer World Stores

13 Increased Management Depth of Senior Team Rob Easley Chief Operating Officer Brian Fiala Executive VP, Store Operations

14 14 Successfully Complete the Integration

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

17 17 Sales Trends Improving in Acquired Stores

18 Closing the Gap in Critical Categories

19 Closing the Gap in Critical Categories 19

20 Closing the Gap in Critical Categories

21 Private Brand Penetration Improving 21

22 Increase Productivity in ALL Stores

23 23 Focused on the Customer Experience

24 24 Our Health and Wellness Vision

25 25 Leader in Diabetes Care

26 26 Health Condition Marketing Programs

27 27 Immunizations

28 28 More In-Store Clinics

29 29 Capitalize on Success of Living More

30 Increase Industry Leading Generic Dispense Rate 30

31 Focus on Compliance Prescriptions x100 Source: IMS Health 31

32 Free Rite Aid Rx Savings Card Pilot in 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

33 33 Aggressive Acquisition/ File Buy Program

34 34 Fill Up & Fuel Up

35 35 Rite Aid Brand Sales Growth

36 36 Upgraded Photo Departments

37 37 More GNC Departments

38 Effectively Control Expenses A Frugal Mentality 38

39 New Store Development Continues 85 new and relos for fy 09 39

40 40 Being Caring Neighbors

41 41 Building our Future