Rite Aid Corporation

Rite Aid — Investor Presentation (July 2020)

26 slides from Rite Aid's investor presentation, Jul 24, 2020

  1. Slide 1: July 2020 Investor Presentation

    July 2020 Investor Presentation

  2. Slide 2: Cautionary Statement Regarding Forward Looking Statements

    Cautionary Statement Regarding Forward Looking Statements Statements in this presentation that are not historical, are forward - looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 . Such statements include, but are not limited to, s

  3. Slide 3: Non-GAAP Financial Measures

    The following presentation includes the non - GAAP financial measure Adjusted EBITDA . Rite Aid defines Adjusted EBITDA as net income (loss) excluding the impact of income taxes, interest expense, depreciation and amortization, LIFO adjustments, charges or credits for facility closing and impairment

  4. Slide 4: It's a New Day at Rite Aid

    © 2020 Rite Aid. All rights reserved. It’s a New Day at RITE AID 4

  5. Slide 5: Who Are We?

    © 2020 Rite Aid. All rights reserved. Who Are We? 5 Revenue 31% 41 % Adj. EBITDA 65 % LEADING PBM 4+ million members 2,400+ Retail Pharmacies 69 % Note: Figures represent mix for LTM ended May 30, 2020 35 %

  6. Slide 6: Strong Presence in Key States

    © 2020 Rite Aid. All rights reserved. Stores 1 st 2 nd 3 rd California 539 32% 35% 18% Pennsylvania 519 62% 24% 7% New York 318 30% 10% 25% Michigan 260 72% 3% 10% Ohio 208 62% 15% 3% Washington 134 42% 42% 11% Oregon 71 55% 10% 25% 6 WA 134 ID 14 OR 71 NV 1 CA 539 CO 3 MI 260 OH 208 PA 519 VA 70 MA

  7. Slide 7: Recent Highlights; Q2 Trends & FY Expectations

    © 2020 Rite Aid. All rights reserved. Recent Highlights Q2 Trends & FY 21 Expectations x New leadership team with top talent x Solid revenue growth, strong adjusted EBITDA x Increasing same - store sales in both the pharmacy and front end x Grew front end market share 270 bps in Q1 FY21 x Elixir dro

  8. Slide 8: Q1 FY2021 at a Glance

    8 Q1 FY2021 at a Glance ( excluding tobacco ) Adjusted EBITDA

  9. Slide 9: Rite Aid Evolution

    RITE AID evolution —

  10. Slide 10: Our Key Strategic Pillars

    © 2020 Rite Aid. All rights reserved. Our Key Strategic Pillars Unlocking the value of our pharmacists Becoming the dominant mid - market PBM Renewing our retail and digital experience 10

  11. Slide 11: Elixir is the only independent pharmacy owned national PBM

    © 2020 Rite Aid. All rights reserved. Family with kids with dog and pets elixir is the ONLY independent pharmacy owned national PBM 11

  12. Slide 12: Elixir is an important part of Rite Aid's future

    © 2020 Rite Aid. All rights reserved. __________ is an important part of Rite Aid’s future 12 We believe we can position elixir as the dominant mid - market PBM • Completed the recruiting and hiring of our new leadership team • Integration is moving forward as planned • Rebranding is well underway •

  13. Slide 13: Our goal is to grow Rite Aid share of Elixir members

    © 2020 Rite Aid. All rights reserved. 13% 30% Our goal is to grow Rite Aid share of Elixir members Source: IQVIA 13

  14. Slide 14: Unlocking the Value of the Pharmacist

    14 Unlocking the Value of the Pharmacist

  15. Slide 15: 90% of consumers trust their pharmacist

    © 2020 Rite Aid. All rights reserved. 90% of consumers trust their pharmacist 25 - 30 average engagements per year with pharmacists Source: Drug Topics “Pharmacists Top Most Trusted Professionals in Gallup Poll” 15

  16. Slide 16: Empower the Pharmacists: Rite Aid's Solution

    © 2020 Rite Aid. All rights reserved. Empower the Pharmacists Comprehensive Wellness Rite Aid’s Solution 16

  17. Slide 17: In the pharmacy

    © 2020 Rite Aid. All rights reserved. in the pharmacy 17 x 40 basis point same - store prescription count growth, even with COVID - 19 headwind x Increased COVID - 19 testing x 258 sites with the capacity to conduct 94,000 tests weekly x Prescription delivery business expanded to all stores x Delive

  18. Slide 18: Our Stores are Transforming

    © 2020 Rite Aid. All rights reserved. 18 “Our Stores are Transforming” First Arrivals in Fall of 2020 We Have Begun Our New Store Signage Initiative

  19. Slide 19: Sharpening Target Customer Focus

    © 2020 Rite Aid. All rights reserved. Millennial and Gen X Women 19 Sharpening Target Customer Focus Primary Family Caregiver

  20. Slide 20: Evolving Merchandise

    © 2020 Rite Aid. All rights reserved. Evolving merchandise 20 “Must be on trend and always relevant”

  21. Slide 21: Digital and Omnichannel Experience

    © 2020 Rite Aid. All rights reserved. Digital and Omnichannel Experience 21 We’re investing in our Digital Experience

  22. Slide 22: Seamless Consumer Experience

    © 2020 Rite Aid. All rights reserved. Seamless Consumer Experience 22 Cohesive experience digitally and in - store

  23. Slide 23: Summary

    © 2020 Rite Aid. All rights reserved. Summary 23 x New energized leadership team x Maximizing value of PBM & Pharmacy strength x Taking steps to reduce debt and address near term maturities x Strategy for success put in place early 2020 x Strong execution in COVID - 19 environment x Early results ar

  24. Slide 24: Appendix

    © 2020 Rite Aid. All rights reserved. Family with kids with dog and pets 24 APENDIX APPENDIX

  25. Slide 25: Reconciliation of Net Loss to Adjusted EBITDA

    ($ in thousands) Q 1 - Fiscal 2021 Reconciliation of Net Loss to Adjusted EBITDA 25 13 Weeks Ended May 30, 2020 13 Weeks Ended June 1, 2019 Net Loss $ (72,702) $ (99,339) Adjustments: Interest expense 50,547 58,270 Income tax (benefit) expense (8,018) 7,374 Depreciation and amortization 79,103 83,92

  26. Slide 26: 26

    26

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