Rite Aid — Merger or Acquisition (June 2018)
22 slides from Rite Aid's merger presentation, Jun 21, 2018
Slide 1: Filed by Albertsons Companies, Inc. Pursuant to Rule 425
Filed by Albertsons Companies, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Exchange Act of 1934 Subject Company: Rite Aid Corporation Commission File No.: 001-05742 The following presentation was provided by members of the Albertsons
Slide 2: Albertsons Companies, Inc. Supplemental Investor Presentation June 2018
Albertsons Companies, Inc. SUPPLEMENTAL INVESTOR PRESENTATION JUNE 2018
Slide 3: Forward Looking Statements
Forward Looking Statements Important Notice Regarding Forward Looking Statements This communication contains certain “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, both as amended by the Private Securities Litigation Reform Act
Slide 4: Additional Disclosures: Additional Information and Where to Find It
Additional Disclosures Additional Information and Where to Find It In connection with the proposed merger involving Rite Aid and Albertsons, Rite Aid and Albertsons have prepared and Albertsons has filed with the SEC on April 6, 2018 a registration statement on Form S-4, as amended by Amendment No.
Slide 5: Additional Disclosures: Non-GAAP measures
Additional Disclosures Non-GAAP measures This communication includes certain non-GAAP measures, including EBITDA (Earnings before interest, tax, depreciation, and amortization), Adjusted EBITDA, free cash flow and net debt (collectively, the "Non-GAAP Measures"). These Non-GAAP Measures are performa
Slide 6: Executive Summary
Executive Summary The Safeway acquisition is expected to generate synergies of $823 million on a full run rate basis, compared to an expectation of $800 million at transaction close, on schedule and largely as planned The financial benefits of these synergies has been masked by an unprecedented 19-m
Slide 7: Historical Financial Overview & FY'18 Outlook
historical financial overview & Fy’18 outlook (FYE, $ in millions) (FYE, $ in millions) (FYE, $ in millions) (FYE, $ in millions) Gross Profit / % Margin Revenue Adj. EBITDA / % Margin Free Cash Flow / % Conversion (1) Note:Fiscal year ended 2/28/2015 represents unaudited pro forma financial informa
Slide 8: Longest food deflation in history but reverted to moderate inflation in July 2017
Longest food deflation in history but reverted to MODERATE inflation in July 2017 Source: U.S. Bureau of Labor Statistics
Slide 9: Albertsons ID Sales & Key Operating Metrics
Albertsons ID SALES & KEY OPERATING METRICS ID Sales %(1) and Food at Home Inflation Calculated irrespective of date of acquisition. After adjusting for the positive sales impact in one of our divisions during the second quarter of fiscal 2014 resulting from a labor dispute at a competitor that caus
Slide 10: FY'17 Summary
FY’17 SUMMARY ($ in millions) FY’17 Quarterly Financials Q1 & Q2’17: ID sales of -2.0% during the first two quarters of fiscal 2017 were impacted by food price deflation ID sales also impacted by investments in promotions and prices to respond to the competitive environment Higher shrink expense and
Slide 11: Safeway integration was disruptive in fiscal 2017 but is on track
Safeway integration was disruptive to the business in FISCAL 2017 but is ON TRACK TO be completed by SEPTEMBER 2018 FACTS TO DATE: ~19 million shelf tags and signs hung in stores ~70,000 store employees trained ~566,000 live training hours delivered 783 trainers actively deployed Significant in-hous
Slide 12: Safeway Synergy Realization
SAFEWAY SyNERGy REALIZATION $522 $630 $750 $823 $823 Full Run Rate Synergies $823M by end of FY’18 ($ in millions) Year-end Run-rate Synergies Breakdown of Realized Safeway Synergies
Slide 13: FY'18 Guidance
Fy’18 guidance ($ in millions) Source:Management estimates. (1)Based on FY 2018E Albertsons management outlook as reported in Albertsons’ Form 8-K filed with the SEC on April 11, 2018. (2)Represents estimates for FY’19E ending February 2019. (3)Includes offset of union contract, minimum wage and oth
Slide 14: Appendix: E-commerce and digital update
Appendix E-commerce and digital update
Slide 15: $1bn ecommerce target for FY'18
$1bn ecommerce Target for fy’18 $1bn $244m $222m $154m $345m(1) Building Breadth of Services Rolled out Home Delivery & Rush Delivery Nationwide Built our own fleet to 1,000 trucks and 1,200+ drivers Expand Drive Up & Go to 500 stores in FY’18 Focus on growth in Business-to-Business delivery Key Cap
Slide 16: Growing our ecommerce capabilities is critical to our overall strategy
Growing our ecommerce capabilities is critical to our overall strategy In-store offering will be in 650+ premium stores by end of FY’18 Seamlessly providing what the customers want, where, when and how they want it Commitment to same-day convenience across Food, Health and Wellness Anticipate doubli
Slide 17: Multi-functional ecommerce solutions
Multi-functional ecommerce solutions Home delivery New eCommerce website & App rolled out to all divisions 14% increase in web conversion and 65% increase in mobile conversion Pushing operational improvements through new detailed operations playbook Goals & metrics to track progress, algorithm-drive
Slide 18: Continuously evolving ecommerce capabilities
continuously Evolving Ecommerce capabilities Plated First omni-channel meal kit offering with national scale Time-saving solution, additional convenience Address new channels with focus on families (larger portions, higher profits) Roll out in-store product to 650+ premium stores in all divisions Bu
Slide 19: Aggressively growing digital, loyalty & rewards
aggressively Growing Digital, loyalty & Rewards Personalized Deals Saves customers money with personalized deals, coupons, free items and rewards Using data to generate 400m personalized deals per week Increases basket size and drives trips for our 13m registered households Changing customer shoppin
Slide 20: Reconciliations
5 bertsons Companies RECONCILIATIONS
Slide 21: Reconciliation of net income to adjusted EBITDA (Q4 and full year ending February 2018)
Albertsons – Reconciliation of net income to adjusted ebitda (Q4 and Full year ending February 2018) Source:Albertsons Form 8-K dated April 11, 2018. Primarily includes costs related to acquisitions, integration of acquired businesses, expenses related to management fees paid in connection with acqu
Slide 22: Reconciliation of operating income to adjusted EBITDA (FY ending February 2019 guidance)
Albertsons – Reconciliation of operating income to adjusted ebitda (FY ending February 2019 guidance) Source:Albertsons Form 8-K dated April 11, 2018. Primarily includes forecasted costs related to integration of acquired businesses, acquisitions and amortization of management fees paid. Primarily i