Walgreens 2010 Annual Report Download - page 7

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Our decisions and key initiatives are consistent with our previously announced capital allocation plan
to maintain our strong balance sheet and financial flexibility, reinvest in our core strategies, invest in
strategic growth opportunities and return cash to shareholders in the form of dividends and share
repurchases over the long term.
Summary
Walgreens is committed to delivering value to our shareholders. Consistent with this commitment,
our Board of Directors announced in October 2010 a new $1 billion share repurchase program through
calendar 2012. This follows the September 2010 completion of our $2 billion share repurchase
program announced in October 2009.
Our Company continues a relentless focus on operating performance and executing our strategic
initiatives with discipline and excellence. Our businesses are directed toward our goal of returning
to double-digit growth in EPS, improving ROIC and top-tier shareholder returns. Fiscal 2011 will
be sharply focused on revenue generation, cost savings and capital allocation, and enhancing
the relevance of our services to customers, patients, payers and the communities we serve.
While fiscal 2010 was the second consecutive year our pharmacy business was negatively affected
by fewer new generic drug introductions, we expect this trend to reverse in late fiscal 2011.
As we enter fiscal 2011, the Company has a senior leadership team with diverse capabilities and
experiences blending Walgreens talent and externally developed expertise. We recently announced
the appointment of Mark Wagner to President of the Community Management division and
Kermit Crawford to President of Pharmacy Services.
We are delighted that David Brailer, MD, PhD, Chairman of Health Evolution Partners, and
Ginger L. Graham, President and CEO of Two Trees Consulting, recently joined our Board of
Directors. They bring to Walgreens extraordinary health care experience, expertise and insight.
Walgreens ongoing success is attributable to the outstanding service of our 244,000 dedicated team
members who consistently demonstrate their commitment to our customers and our Company.
We thank them most sincerely. We express our deep gratitude and appreciation to our customers,
our suppliers and the communities we serve. And as your Company begins its 110th year,
we thank you, our shareholders, for your continued trust and confidence in Walgreens.
Sincerely,
Alan G. McNally Gregory D. Wasson
Chairman of the Board President and Chief Executive Officer
November 16, 2010
This Walgreens drugstore in
Cornelius, North Carolina, is one
of 292 net new drugstores the
Company opened in fiscal 2010.
Walgreens expects new store
openings of between 2.5 and
3 percent in fiscal 2011.
2010 Walgreens Annual Report Page 5
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