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You are urged to review Rite Aid’s SEC filings. Statements, estimates, targets, projections and other information included herein
and therein might be considered forward-looking. These statements and estimates are based upon various assumptions that may
not prove to be correct. Such assumptions are inherently subject to significant uncertainties and contingencies, many of which are
beyond the company’s control. No representation is made, and no assurance can be given, that such results can or will be
attained. The risk factors associated with those uncertainties are described in Rite Aid’s most recent Form 10-K and other filings
with the SEC.
Rite Aid assumes no obligation to update the information or the forward-looking statements contained herein, whether as a result
of new information or otherwise. Also included herein are non-GAAP financial measures. The definition and purpose for using
these measures are in Rite Aid’s Form 10-K filed with the SEC on April 23, 2014.
This presentation contains forward-looking statements, which 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. Factors that could cause actual
results to differ materially from those expressed or implied in such forward-looking statements include our high level of
indebtedness; our ability to make interest and principal payments on our debt and satisfy the other covenants contained in our
senior secured credit facility and other debt agreements; general economic conditions, including the impact of continued high
unemployment and changing consumer behavior, inflation and interest rate movements; our ability to improve the operating
performance of our stores in accordance with our long term strategy; our ability to maintain or grow prescription count and realize
front end same store sales growth; our ability to hire and retain qualified personnel; the efforts of private and public third-party
payors to reduce prescription drug reimbursements and encourage mail order and limit access to payor networks; competitive
pricing pressures, including aggressive promotional activity from our competitors; decisions to close additional stores and
distribution centers, which could result in further charges to our operating statement; our ability to manage expenses and our
investment in working capital; continued consolidation of the drugstore and pharmacy benefit management industries; changes in
state or federal legislation or regulations and the continued impact from the ongoing implementation of the Patient Protection and
Affordable Care Act and the outcome of lawsuits and governmental investigations. Consequently, all of the forward-looking
statements made in this presentation are qualified by these and other factors, risks and uncertainties. Readers are also directed
to consider other risks and uncertainties discussed in documents filed by the Company with the Securities and Exchange
Commission. Forward-looking statements can be identified through the use of words such as “may”, “will”, “intend”, “plan”,
“project”, “expect”, “anticipate”, “could”, “should”, “would”, “believe”, “estimate”, “contemplate”, and “possible”.
Safe Harbor Statement
Leading national drug chain with nearly 4,600 stores as of May, 2014
Approximately $25.7 billion in pharmacy and front end revenues and $1.263 billion in Adj. EBITDA for LTM ended May 31, 2014
Fill approx. 295 million scripts per year
OVERVIEW
STRONG NATIONAL FOOTPRINT
Rite Aid States & Store Count
Rite Aid Distribution Centers
As of 5/31/2014
Leading National Drugstore Chain
138
13 72
1
578
22 20
276
10 225
116
81
62
26 93
95
224
535
104
79
192
37
68 148
43 77
256
42
D.C.
185
613
7
143
30
Industry Opportunities
Aging US Population
Generic Calendar
Affordable Care Act
Changing Healthcare
Environment
Older Patients Use More Scripts
2.55 2.43 3.08 4.28
7.88
12.85
19.53
27.87
31.12
0
5
10
15
20
25
30
35
Scripts
pe
r Y
ea
r
Age Group
Prescriptions Filled
at Retail Pharmacies
Source: Medical Expenditure Panel Survey, 2009; NACDS Economics Dept.
35
40
48
56
30
40
50
60
2000 2010 2015e 2020e
Pe
op
le in M
illio
ns
U.S. Population
Ages 65 & Over
Source: U.S. Census Bureau
Additional $88 BN Exposed to Generic Competition by 2019
$18.4 $19.2
$21.5
$35.2
$9.4
$22.9
$18.0
$12.2 $10.6
$19.5
$5.4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
SPENDING $BN
Source: IMS National Sales Perspectives, Nov. 2013; sales in year prior to expiry for 2009-2012; MAT Nov. 2013 sales shown for 2013-2019
2014-2019 LOE Exposure: $89 billion
ACA Opportunity Additional Lives Covered
2014 2015 2016
Medicaid Expansion 7 11 12
Insurance Exchanges 6 13 24
Reduction in Other Coverage(1) (1) (5) (11)
Total Coverage Expansion 12 19 25
(millions of lives)
Source: CBO’s April 2014 Estimate of Effect of the Affordable Care Act on healthcare coverage.
(1) Represents transfer out of employment-based and non-group coverages
Polychronic Patients Drive Healthcare Costs
5%
Polychronic
10%
Chronic &
at Risk
85%
Healthy,
minor issues
Source: Oliver Wyman.
45% ER visits, over-
utilization, high care
variation, non-
compliance
35% Infections,
complications, and
rehospitalizations
20%
Company Turnaround
No significant maturities until 2018
Reinvigorate Top-line Growth
Strengthen Customer Loyalty
Control Costs
Grow EBITDA
Proactively Manage Debt Maturities
Grew Front End Sales and Script Count
Successfully launched and grew wellness+
Reduced Adjusted EBITDA SG&A by more than $300 million since
beginning of turnaround
Increased Adj. EBITDA by over $400 million from lowest point in turnaround
Two-Year Stacked Comparable Scripts
2.9%
4.0% 4.3%
1.2%
2.2%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
FY14 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY15 Q1
EBITDA Turnaround
$800
$850
$900
$950
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
2009 2010 2011 2012 2013 LTM EndedMay 2014
$991
$925
$859
$943
$1,128
$1,263
$ in millions
-$506.7 -$555.4
-$368.6
$118.1
$249.4
Return to Profitability Net Income/Loss in Millions
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
wellness+ Benefits
• 1 Point: For every dollar spend on non-prescription purchases
• 25 Points: For every prescription filled Earn Points
every time
you shop
• Plus Tier: Members-only savings for circular items
• 250 Points Bronze Tier: 10% off all private label purchases every day and a one-time, 10% off shopping pass
• 500 Points Silver Tier: 10% off all non-prescription purchases every day and wellness rewards including free health screening, magazine subscriptions and GNC Gold card membership
• 1,000 Points Gold Tier: 20% off all non-prescription purchases every day
The more
you earn, the
more rewards
you’ll receive
• 24/7 exclusive access to a pharmacist at 1-800-RITE-AID or online chat
• Special member-only offers on store receipts, email, and online
• Online account access and relationship dashboard
• $100 - $200 in +UP Rewards available each week
• Load2Card digital couponing
Enjoy every-
day benefits
including…
Loyalty Card Comparison
RAD CVS WAG
Weekly sales price for members
Weekly TPR/Coupons + Ups Extra
Bucks
$
Points
Script Rewards Loyalty
Points
Extra
Bucks
$
Points
Loyalty Rewards Up to
20% 2% None
Value
Benefit
• NEW points on co-pays for government scripts
• Exclusive sale day (20% OFF the entire store the 1st Wednesday of every month)
Bundling of Pharmacy
& Clinical Services Targeted to Seniors
• Medication reviews, POC compliance, Medicare D plan reviews, blood pressure screenings and pharmacy services reviews
• Monthly themed health and wellness events aligned with wellness65+ Wednesdays
Extensive Customer
Engagement
• Top-market mobile event tour
• Increased community outreach activation of wellness ambassadors
• Advanced CRM segment and 1:1 marketing plans
wellness65+ Benefits
Over 1.9 million Seniors enrolled since the start of the program
Genuine Wellbeing Wellness Store Renovations
Introduction of Genuine Wellbeing format
Ongoing merchandising innovations
Wellness Ambassadors – Over 1,950 as of May, 2014
Front end sales and script results for the wellness stores continue to exceed the chain average
1,325 stores completed as of June, 2014
Over 1,600 stores to be completed by the end of Fiscal 2015
Store Growth
Significant store relocation opportunity
Further develop underpenetrated markets
Enter contiguous markets that have positive demographics
Strengthen our pharmacy network
Leverage our infrastructure
REMODELS RELOCATIONS
& NEWS NEWS Year: 0 2 5+ 4
Expanding Our Pharmacy Services
Immunization Services Flu shot program
14 Diseases
Expanding the role of the pharmacist Medication therapy management and patient consultation
Focus on medication adherence – Prescription Advisor
Chronic Care Management
RediClinic
675,000
1,458,000
2,350,000
2,829,600
77,900
206,000
415,000
436,100
752,900
1,664,000
2,765,000
3,265,700
FY 2011 FY 2012 FY 2013 FY 2014
Flu Other
Immunization Growth
Rite Aid Chronic Care Management
Create personalized care plans for each enrolled patient Partner with Healthcare Providers
Targeting common “high cost” chronic diseases
Pharmacists and health coaches, in collaboration with the physician, provide: • One-on-one coaching sessions with patients in- store or by phone
• Coaches work with patients to meet physician-identified wellness goals
• Pharmacists conduct comprehensive medication reviews to improve compliance and adherence and screen for dangerous drug interactions
Data exchange to better manage and monitor health status as well as measure outcomes
Chronic care management enables Rite Aid to actively participate in integrated healthcare delivery models of the future
An innovative population health management program for chronic and poly-chronic patients
Improves Patient Care & Lowers Healthcare Costs
RediClinic
RediClinic has 30 walk-in clinics located in HEB stores in San Antonio, Houston and Austin
Acquisition provides Rite Aid with a platform to offer convenient clinic services to its customers
Rite Aid plans to add 70 clinics to Rite Aid stores over the next 18-24 months
McKesson & Rite Aid Expand Distribution Agreement
McKesson to assume responsibility for the sourcing and distribution of generic pharmaceuticals for Rite Aid as part of McKesson's One Stop proprietary generics program
Expanded distribution relationship to provide Rite Aid with daily direct-to-store delivery for all brand and generic pharmaceutical products
Distribution agreement extends through March 2019
Rite Aid expects to benefit from lower purchasing costs and improvements in working capital
New relationship will drive greater supply chain efficiencies, improve working capital, and ensure highest levels of service for customers
Gross Profit Improvement/Decline
($93.9) ($83.7)
($100.9)
($54.3)
($29.4)
($45.8)
($10.7) ($5.0)
$0.5
$33.8
$69.9
$56.8 $47.9
$106.2 $103.8
$56.3
$116.6
$8.9
$50.5
($28.7)
($150)
($100)
($50)
$0
$50
$100
$150
(1)
(1) Calculated as the change in Adjusted EBITDA Gross Margin compared to the corresponding prior year quarter.
(2) Presented on a 13 week basis.
(2)
(2)
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Fiscal
2011
Fiscal
2012
Fiscal
2013
Fiscal
2010
Fiscal
2014
Fiscal
2015
SG&A Growth/Decline
($90.5)
($78.3)
($35.5)
($54.8)
$5.8
($4.1)
($21.1) ($18.0)
($2.5)
$24.8 $28.8
$45.5
$13.5
$32.3
$20.1
($14.3)
($6.4)
$21.9
$34.4 $33.4
($100)
($80)
($60)
($40)
($20)
$0
$20
$40
$60
(2)
(2)
(1) Calculated as the change in Adjusted EBITDA SG&A compared to the corresponding prior year quarter.
(2) Presented on a 13 week basis.
(1)
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Fiscal
2011
Fiscal
2012
Fiscal
2013
Fiscal
2010
Fiscal
2014
Fiscal
2015
Debt Maturity Profile
Current maturity table.
Note: Maturities reflect calendar year.
$351
$1,444
$1,152
$650
$270 $295 $128
$64
$470
$500
$906
$810
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2013 2014 2015 2016 2017 2018 2019 2020 2021 . . . . . . 2027 2028
FIRST LIEN
SECOND LIEN
REVOLVER COMMITMENT
UNSECURED
($ in millions)
$552,625 $547,581
$529,255
$515,421
$424,591
$390,000
Interest Expense Reduction
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
(in thousands)
FY 2015
Guidance
CapEx Recap
FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 (e)
New and relocated stores 31$ 20$ 42$ 39$ 55$
Remodels and resets 20 75 158 180 225
Backstage,infrastructure & maintenance 111 120 116 115 155
Prescription file buys 24 35 67 87 90
Total capex 186$ 250$ 383$ 421$ 525$
New Stores 3 - - 1 1
Relocations 28 15 13 11 19
Wellness Remodels - 274 517 405 450
Total 31 289 530 417 470
($ in millions)
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