Boots Group PLC Annual General Meeting 2003

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Boots Group PLCAnnual General Meeting 2003
Thursday 24th July 2003
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John McGrath Chairman
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Howard Dodd Chief Financial Officer
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Agenda

• Financial highlights 2002/03
• Q1 trading update
• Refocusing on 2 core businesses
• Driving profitable sales growth
• Investing for the future

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Financial highlights 2002/03

• Sales 5.3bn
• up 6 from continuing operations
• Operating profit 544m, down 11 due to
• sale of Halfords
• 24m restructuring costs
• 21m additional investment
• pension charge up 25m
• Dividend up 4 at 28.6p

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Q1 trading update

• BTC sales up 4.7
• dispensing up 8
• cosmetics fragrance up 6
• excellent Sunshop sales
• BTC gross margins up
• Investment and cost programmes on track
• BHI sales up 7.6 (local currency)
• increases across all major brands

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Refocusing on 2 core businesses
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Boots The Chemists
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Driving profitable sales growth through

• Our store teams
• Product choice
• Christmas
• Better value

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Driving sales through our store teams

• Help Advice
• 1,100 extra store staff
• Improved pay rates to attract retain key staff
• Increased training
• Mystery customer measures up 9
• On-shelf availability over 98on all lines
  including key lines

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Driving sales through product choice

• Putting more of our products into more of our
  stores
• Extended Baby range with mini mode
• Expanded Christmas offer
• Increased choice in refitted stores
• New products and new ideas

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Driving sales at Christmas

• Bigger offer attracted new and lapsed customers
• Extra Christmas sales 70m
• Q3 sales up 7.5 like for like

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Driving sales through better value

• Advantage Card relaunch
• - 1 million new card holders
• - 9 million active users
• 99p offers on key brands
• Strong events

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Driving sales through better value

• Advantage Card relaunch
• - 1 million new card holders
• - 9 million active users
• 99p offers on key brands
• Strong events
• Lower Prices Youll Love

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Investing in our stores

• 239 store refurbishments completed against target
  of 300
• 163 in London
• 300 refurbishments planned for 03/04
• 20 new Edge of Town stores in 03/04
• 5,000 touch screen tills in 360 stores by end
  03/04

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Investing in pharmacy

• OFT enquiry
• Government rejected complete deregulation
• control of entry regulations to remain subject to
  certain exemptions
• proposals due end of August then consultation
• Updating dispensaries
• 39 last year
• 220 this year
• New system in 560 stores

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Boots Healthcare International
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Boots Healthcare International

• Sales up 13 to 460m
• Profit up 5 to 70m
• Nurofen grew by 22
• Clearasil Total Control launched

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Getting in Shape

• 3 year programme to save 100 m
• Simplify Head Office
• Transform supply chain
• on-shelf availability
• manufacturing, warehousing and transport
• store costs
• New systems
• Organisation change

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Financial strength

• Net debt 52m
• Strong cash flow
• 353m in 2002/03
• Over 450m cash returned to shareholders
• Dividend up 4.4

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Resolutions
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Resolution 1
To receive the directors reportand annual
accounts and theauditors report thereon
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Resolution 1
Postal Proxy Voting
no.

213,052,962
99.90
For
0.10
214,380
Against
213,267,342
Total
(26.50 of total shares)
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Resolution 2
To declare afinal dividend
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Resolution 2
Postal Proxy Voting
no.

219,896,436
99.99
For
30,100
0.01
Against
219,926,536
Total
(27.33 of total shares)
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Resolution 3
To reappointMr P Batemanas a director
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Resolution 3
Postal Proxy Voting
no.

213,377,413
98.95
For
2,270,983
1.05
Against
215,648,396
Total
(26.80 of total shares)
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Resolution 4
To reappointMr J Benninkas a director
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Resolution 4
Postal Proxy Voting
no.

217,609,384
99.15
For
1,871,270
0.85
Against
219,480,654
Total
(27.27 of total shares)
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Resolution 5
To reappointMr H Doddas a director
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Resolution 5
Postal Proxy Voting
no.

213,213,003
98.87
For
2,442,988
1.13
Against
215,655,991
Total
(26.86 of total shares)
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Resolution 6
To reappointMr J McGrathas a director
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Resolution 6
Postal Proxy Voting
no.

215,473,079
98.68
For
2,881,056
1.32
Against
218,354,135
Total
(27.20 of total shares)
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Resolution 7
To reappointMadame H Ploixas a director
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Resolution 7
Postal Proxy Voting
no.

217,362,533
99.01
For
2,163,264
0.99
Against
219,525,797
Total
(27.34 of total shares)
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Resolution 8
To reappointDr M Read as a director
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Resolution 8
Postal Proxy Voting
no.

217,547,662
99.12
For
1,936,399
0.88
Against
219,484,061
Total
(27.34 of total shares)
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Resolution 9
To reappointSir Nigel Rudd as a director
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Resolution 9
Postal Proxy Voting
no.

210,408,310
98.37
For
3,485,300
1.63
Against
213,893,610
Total
(26.64 of total shares)
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Resolution 10
To reappointMr A Smith as a director
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Resolution 10
Postal Proxy Voting
no.

213,307,614
98.89
For
2,401,772
1.11
Against
215,709,386
Total
(26.87 of total shares)
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Resolution 11
To approve theremuneration report
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Resolution 11
Postal Proxy Voting
no.

183,181,097
93.43
For
12,875,428
6.57
Against
196,056,525
Total
(24.42 of total shares)
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Resolution 12
To reappoint the auditors and to authorise the
directors to determine the remunerationof the
auditors
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Resolution 12
Postal Proxy Voting
no.

209,196,986
97.95
For
4,371,653
2.05
Against
213,568,639
Total
(26.60 of total shares)
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Resolution 13
To authorise the directorsto allot unissued
share capital
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Resolution 13
Postal Proxy Voting
no.

216,102,659
98.39
For
3,540,267
1.61
Against
219,642,926
Total
(27.36 of total shares)
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Resolution 14
To authorise the directorsto allot shares for
cash
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Resolution 14
Postal Proxy Voting
no.

218,239,446
99.36
For
1,406,821
0.64
Against
219,646,267
Total
(27.36 of total shares)
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Resolution 15
To authorise market purchasesof the companys
own shares
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Resolution 15
Postal Proxy Voting
no.

219,236,544
99.75
For
542,713
0.25
Against
219,779,257
Total
(27.37 of total shares)
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Resolution 16
To authorise political donationsand political
expenditure bythe company
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Resolution 16
Postal Proxy Voting
no.

200,547,636
93.65
For
13,602,999
6.35
Against
214,150,635
Total
(26.67 of total shares)
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Resolution 17
To authorise political donationsand political
expenditure byThe Boots Company PLC
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Resolution 17
Postal Proxy Voting
no.

200,471,866
93.61
For
13,691,506
6.39
Against
214,163,372
Total
(26.67 of total shares)
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