Strategic Drivers for Business Growth & Sustainability… Strategic Drivers for Business Growth & Sustainability…..A Closer look at Walgreens Tracey V. Bell Manager, Supplier Diversity - Retail

Corner of Happy & Healthy: Business Overview Nations largest and leading drugstore in sales & profit Fiscal Year 2012: Net Sales $71.6 Billion Fiscal Year 2012: Net Earnings - $2.1Billion 8096 Drugstores (May 2013) 11K square feet in selling space for 18K items Service 6.3 Million Customers, Daily 784 Million Prescriptions, Annually 240,000 Employees Mission-- “….where health and happiness come together to help people get, live and stay well.” Source: http://news.walgreens.com/section_display.cfm?section_id=8

Walgreens Marketplace Business Drivers Corporate Strategy Operations Points of Differentiation Cultural Beliefs Walgreens Marketplace Business Drivers Create a Well Experience for customers through four strategies – customer value, innovative products and services, systematic localized offerings and the most relevant networks and formats. Creating a complete Well Experience for our customers across all of our touch points; Establish an unprecedented and efficient global platform through our strategic partnership “that will be very difficult, if not impossible, to replicate.” Help people get, live and stay well. Source: http://news.walgreens.com/section_display.cfm?section_id=8

Supplier Diversity Business Alignment & Interface Customer Value Innovative Products & Services Systematic Localized Offerings Most Relevant Networks & Formats Supplier Diversity Intake Community Corner Private Brands Supplier Diversity Business Resource Groups Power of Alignment Human Resources Community Management

Walgreens Supplier Diversity Functionality Consumer Packaged Goods (CPG) Retail Supports corporate strategies among diverse product suppliers Services Supports corporate strategies among service, non-consumer packaged goods suppliers Operations Supports corporate strategies to insure alignment and integration of programs and activities relative to diverse retail and service suppliers Shelving / Fixtures Facilities/Construction Printing WBE, MBE, VBE, LGBT, HBE, DOBE American Indian, Asian, Small Business

The Business of Diverse Businesses Walgreen Company 9/8/2018 The Business of Diverse Businesses Value Proposition Quantify the current size of the Market Outline the market drivers Channels of Trade Competitive Landscape Product Point-of-Difference (POD) New, Better, Different (Well Experience) Claims, Patents, Ingredient Stories Unique Target Market Pricing Strategy Is there Alignment with Corporate Strategy? Promotion and Pull Through Drive Store Traffic Advertising / Promotional Activities & Schedule Product Life Cycling Project Sales Distribution and # of Stores Sales Per Store, Per Week & Annualized Value Proposition Strategic Alignment Well Experience Impact Innovation Expanded Commerce

Progressing Towards Sustainability Corporate Strategies Well Experience in Communities Strategic Business Units Merchandising Global Sourcing Pharmacy Services Pharmacy Merchandising Private Brands Community & Government Relations Community Management Human Resources Diversity Communications & Networks Business Resource Groups Regional Councils External Business Partnerships and Alliances General Market Allies NMSDC, USBLN, Chambers of Commerce, etc.

In Summary...Growth and Sustainability in Supplier Diversity can be measured by the ability to which diverse businesses can align to, demonstrate, and build upon strategic business drivers. Integrate Corporate Strategy Build Strategic and Quality Vendor Pools Recognize and Communicate Performance Strengthen and Expand Partnerships & Alliances To become a vendor for Walgreens, vendor.walgreens.com/newvendorsetup