Dear Fellow Stockholders:
Our company performed well in fiscal 2017, notwithstanding currency
headwinds and some challenging market conditions, with our businesses
delivering significant progress while competing in the fast-changing
healthcare and retail environments. We continued to maintain a
disciplined approach to capital allocation; investing opportunistically to
drive growth and generate strong returns while returning excess cash
to our stockholders through our 42nd consecutive annual increase in
our dividend, as well as the authorization of up to $7 billion in share
repurchases since January 2017.
We are pleased to have obtained regulatory clearance in September for our amended and restated
asset purchase agreement with Rite Aid Corporation to purchase 1,932 stores, three distribution centers
and related inventory from Rite Aid for $4.375 billion in cash and other consideration. This transaction,
completion of which is subject to closing conditions set forth in the agreement, will further our company’s
commitment to accessible, affordable, quality healthcare in the U.S. and advance consumer access to
pharmacy-led health and wellbeing.
My fellow directors and I are committed to strong, independent Board leadership and good corporate
governance practices, which continuously evolve with the benefit of input from our stockholders. We
believe that maintaining an ongoing and open dialogue with our stockholders is critical to our success
and I would highlight that we made a number of changes this year in response to stockholder feedback.
Furthermore, we continue to conduct a robust, multi-step Board evaluation process, which we believe is
an essential component of Board effectiveness. We also regularly discuss director succession and board
refreshment, both in executive sessions and as a full Board. To that end, we are proud to have elected
José Almeida, the Chairman and Chief Executive Officer of Baxter International, as an independent director
in April. We are confident that Joe’s expertise in managing complex global businesses will prove to be
invaluable.
Our company is committed to sustainable business practices, which has been demonstrated by the
company’s actions and transparency. The Board shares in the responsibility that comes with this
commitment, and our Nominating and Governance Committee, which I chair and which consists solely
of independent directors, is charged with reviewing our Corporate Social Responsibility policies and
activities. Based in part on stockholder feedback, we amended the Committee’s charter during this past
year to clarify the Committee’s role in providing independent oversight and guidance over our company’s
sustainability responsibilities and related risk management.
Our 2018 Annual Meeting of Stockholders will be held on Wednesday, January 17, 2018 at 8:30 a.m.
Mountain Standard Time at the Foundry Ballroom, Andaz Scottsdale Resort & Spa, 6114 North Scottsdale
Road, Scottsdale, Arizona 85253. We look forward to seeing you there. Even if you cannot attend in
person, your vote is very important. Please vote at your earliest convenience.
On behalf of my fellow independent directors and the entire Board, thank you for your continued trust and
confidence in Walgreens Boots Alliance.
Sincerely,
William C. Foote
Lead Independent Director
Walgreens Boots Alliance, Inc.