Second quarter earnings per share (EPS*) from continuing operations was $1.02, a decrease compared with an EPS of $1.06 in the year-ago quarter; continuing operations adjusted** EPS increased 25.9 percent to $1.59, up 26.5 percent on a constant currency basis

Second quarter sales from continuing operations increased 3.0 percent over the year-ago quarter to $33.8 billion, up 3.8 percent on a constant currency basis

Second quarter operating income from continuing operations increased to $1.2 billion, compared with operating income of $832 million in the year-ago quarter; adjusted operating income from continuing operations increased to $1.7 billion, up 35.9 percent on a constant currency basis

Strategic review of the Boots business in progress, in line with the company’s renewed priorities and strategic direction, including greater focus on U.S. healthcare

Strong execution across business segments, led by COVID-19 vaccinations and testing, U.S. retail comparable sales up 14.7 percent, and Boots UK retail comparable sales up 22.0 percent with share gains across all major categories

WBA continues to serve local communities to manage the COVID-19 pandemic, with Walgreens administering over 62.8 million vaccines to date, including 11.8 million in the second quarter

Walgreens Health pro forma sales up 128 percent compared to year-ago standalone results, progressing toward long-term targets

The expanded Transformational Cost Management Program is on track to deliver $3.3 billion in annual cost savings by fiscal 2024

Maintaining full year adjusted EPS guidance of low-single digit growth

Playing a leading role in COVID-19 vaccinations and testing

Walgreens administered 11.8 million vaccinations and 6.6 million tests in 2Q

Over 12 million boosters administered to date

Largest pediatric vaccine provider in the pharmacy channel

Launched the Walgreens COVID-19 Index to advance rapid detection of the Omicron variant and to track variant activity by state

U.S. retail comparable sales growth of 14.7 percent was the highest in over 20 years

Robust growth in U.S. omnichannel business with digital sales up 38 percent in 2Q, on top of 78 percent in the year-ago period, driven by 3.9 million same day pick-up orders

MyWalgreens membership reached 96.1 million members in 2Q, up 10.9 million since 4Q

Three automated microfulfillment centers opened, on pace to 22 centers by the end of FY24

Reintroduction of iconic Boots 17 beauty brand in February

Nationwide launch of Boots Price Advantage program for Advantage cardholders

Leveraging VillageMD and Shields majority investments

Rollout of VillageMD continues with 102 co-located clinics now open, on track toward 200+ by CY22 year-end; expansion into new markets including Boston, Massachusetts; Jacksonville, Florida; and Tucson, Arizona in February; Denver, Colorado in January; and San Antonio, Texas in December

Shields contract wins with two significant health systems with geographic reach in the Northwest and Northeast U.S.

47 Walgreens Health Corners launched to date, on track toward 100+ by CY22 year-end

Added features to the Walgreens Health consumer app, including secure chat with health advisors, to increase access, engagement, and convenience

CareCentrix closing expected by the end of 3Q, subject to regulatory approval

Strategic review of the Boots business is progressing

Completed the consolidation of holding in AllianceRx Walgreens from 55 percent to 100 percent, on December 31, 2021

Acquired remaining interest in Germany wholesale business on January 31, 2022

Achieved recent honors, including being named to Fast Company’s list of the World’s 50 Most Innovative Companies, and Time’s 100 Most Influential Companies

Launched FY21 Environmental, Social, and Governance (ESG) Report

Moving to a hybrid working model, and expecting to fully reopen U.S. support offices on April 4

Driving the national discussion on provider status for pharmacists, in recognition of their critical role in the COVID-19 response

A majority position in VillageMD, a leading, national provider of value-based primary care services;

A majority position in Shields, a specialty pharmacy integrator and accelerator for hospitals; and

The Walgreens Health organically-developed business that contracts with payors and providers to deliver clinical healthcare services to their members and members’ caregivers through both digital and physical channels.

Media Relations

U.S. / Morry Smulevitz

International

Investor Relations

Tiffany Kanaga

Sales

Cost of sales

Gross profit

Selling, general and administrative expenses

Equity earnings (loss) in AmerisourceBergen

Operating income

Other (expense) income

Earnings before interest and tax

Interest expense, net

Earnings before tax

Income tax provision (benefit)

Post tax earnings from other equity method investments

Net earnings from continuing operations

Net earnings from discontinued operations

Net earnings

Net (loss) earnings attributable to non-controlling interests - continuing

operations

Net earnings attributable to non-controlling interests - discontinued

operations

Net earnings attributable to Walgreens Boots Alliance, Inc.

Net earnings attributable to Walgreens Boots Alliance, Inc.:

Continuing operations

Discontinued operations

Total

Basic net earnings per common share:

Continuing operations

Discontinued operations

Total

Diluted net earnings per common share:

Continuing operations

Discontinued operations

Total

Weighted average common shares outstanding:

Basic

Diluted

Assets

Current assets:

Cash and cash equivalents

Accounts receivable, net

Inventories

Other current assets

Total current assets

Non-current assets:

Property, plant and equipment, net

Operating lease right-of-use assets

Goodwill

Intangible assets, net

Equity method investments

Other non-current assets

Total non-current assets

Total assets

Liabilities, redeemable non-controlling interest and equity

Current liabilities:

Short-term debt

Trade accounts payable

Operating lease obligations

Accrued expenses and other liabilities

Income taxes

Total current liabilities

Non-current liabilities:

Long-term debt

Operating lease obligations

Deferred income taxes

Other non-current liabilities

Total non-current liabilities

Redeemable non-controlling interest

Total equity

Total liabilities, redeemable non-controlling interest and equity

Cash flows from operating activities:

Net earnings

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

Deferred income taxes

Stock compensation expense

Equity (earnings) loss from equity method investments

Gain on previously held investment interests

Gain on sale of equity method investment

Impairment of equity method investments and investments in equity securities

Other

Changes in operating assets and liabilities:

Accounts receivable, net

Inventories

Other current assets

Trade accounts payable

Accrued expenses and other liabilities

Income taxes

Other non-current assets and liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Additions to property, plant and equipment

Proceeds from sale-leaseback transactions

Proceeds from sale of other assets

Business, investment and asset acquisitions, net of cash acquired

Other

Net cash used for investing activities

Cash flows from financing activities:

Net change in short-term debt with maturities of 3 months or less

Proceeds from debt

Payments of debt

Acquisition of non-controlling interests

Stock purchases

Proceeds related to employee stock plans

Cash dividends paid

Other

Net cash provided by (used for) financing activities

Effect of exchange rate changes on cash, cash equivalents and restricted cash

Changes in cash, cash equivalents and restricted cash:

Net increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash at beginning of period

Cash, cash equivalents and restricted cash at end of period

 Net earnings from continuing operations (GAAP)

 Adjustments to operating income:

 Transformational cost management ¹

 Acquisition-related amortization ²

 Acquisition-related costs ³

 Certain legal and regulatory accruals and settlements ⁴

 Adjustments to equity earnings (loss) in AmerisourceBergen ⁵

 LIFO provision ⁶

 Total adjustments to operating income

 Adjustments to other (expense) income:

 Net investment hedging (gain) loss ⁷

 Adjustment to gain on disposal of discontinued operations ⁸

 Impairment of equity method investment and investment in equity securities ⁹

 Gain on previously held investments ¹⁰

 Gain on sale of equity method investment ¹¹

 Total adjustments to other income

 Adjustments to income tax provision (benefit):

 Equity method non-cash tax ¹²

 Tax impact of adjustments ¹²

 Total adjustments to income tax provision (benefit)

 Adjustments to post tax equity earnings from other equity method investments:

 Adjustments to equity earnings in other equity method investments ¹³

 Total adjustments to post tax earnings from other equity method investments

 Adjustments to net earnings attributable to non-controlling interests:

 Transformational cost management ¹

 Acquisition-related amortization ²

 Acquisition-related costs ³

 LIFO provision ⁶

 Total adjustments to net earnings attributable to non-controlling interests

 Adjusted net earnings attributable to Continuing Operations

 (Non-GAAP measure)

 Net earnings attributable to Walgreens Boots Alliance, Inc. – discontinued operations (GAAP)

 Acquisition-related amortization ²

 Acquisition-related costs ³

 Transformational cost management ¹

 Tax impact of adjustments ¹²

 Total adjustments to net earnings attributable to Walgreens Boots Alliance, Inc. – discontinued operations

 Adjusted net earnings attributable to Walgreens Boots Alliance, Inc. - discontinued operations

 (Non-GAAP measure)

 Adjusted net earnings attributable to Walgreens Boots Alliance, Inc.

 (Non-GAAP measure)

 Diluted net earnings per common share - continuing operations (GAAP)

 Adjustments to operating income

 Adjustments to other income

 Adjustments to income tax provision (benefit)

 Adjustments to post tax earnings from other equity method investments ¹³

 Adjustments to net (loss) earnings attributable to non-controlling interests

 Adjusted diluted net earnings per common share - continuing operations

 (Non-GAAP measure)

 Diluted net earnings per common share - discontinued operations (GAAP)

 Total adjustments to net earnings attributable to Walgreens Boots Alliance, Inc. – discontinued operations

 Adjusted diluted net earnings per common share - discontinued operations (Non-GAAP measure)

 Adjusted diluted net earnings per common share (Non-GAAP measure)

 Weighted average common shares outstanding, diluted (in millions)

Transformational cost management charges are costs associated with a formal restructuring plan. These charges are primarily recorded within selling, general and administrative expenses. These costs do not reflect current operating performance and are impacted by the timing of restructuring activity.

Acquisition-related amortization includes amortization of acquisition-related intangible assets, inventory valuation adjustments and stock-based compensation fair valuation adjustments. Amortization of acquisition-related intangible assets includes amortization of intangible assets such as customer relationships, trade names, trademarks and contract intangibles. Intangible asset amortization excluded from the related non-GAAP measure represents the entire amount recorded within the Company’s GAAP financial statements. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP measures. Amortization expense, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired, or the estimated useful life of an intangible asset is revised. These charges are primarily recorded within selling, general and administrative expenses. Business combination accounting principles require us to measure acquired inventory at fair value. The fair value of the inventory reflects cost of acquired inventory and a portion of the expected profit margin. The acquisition-related inventory valuation adjustments excludes the expected profit margin component from cost of sales recorded under the business combination accounting principles. Stock based compensation fair valuation adjustment reflects difference between fair value based remeasurement of awards and the grant date fair valuation. Post-acquisition compensation expense recognized in excess of the original grant date fair value of acquiree awards are excluded from the related non-GAAP measures as these arise from acquisition-related accounting requirements or agreements, and are not reflective of normal operating activities.

Acquisition-related costs are transaction and integration costs associated with certain merger, acquisition and divestitures related activities. These costs include all charges incurred on certain mergers, acquisition and divestitures related activities, for example, including costs related to integration efforts for successful merger, acquisition and divestitures activities. Examples of such costs include deal costs, severance and stock compensation. These charges are primarily recorded within selling, general and administrative expenses. These costs are significantly impacted by the timing and complexity of the underlying merger, acquisition and divestitures related activities and do not reflect the Company’s current operating performance.

Certain legal and regulatory accruals and settlements relate to significant charges associated with certain legal proceedings. The Company excludes these charges when evaluating operating performance because it does not incur such charges on a predictable basis and exclusion of such charges enables more consistent evaluation of the Company’s operating performance. These charges are recorded within selling, general and administrative expenses.

Adjustments to equity earnings (loss) in AmerisourceBergen consist of the Company’s proportionate share of non-GAAP adjustments reported by AmerisourceBergen consistent with the Company’s non-GAAP measures. The Company recognized equity losses in AmerisourceBergen of $1,373 million during the three months ended November 30, 2020. These equity losses are primarily due to AmerisourceBergen’s recognition of $5.6 billion, net of tax, charges related to its ongoing opioid litigation in its financial statements for the three months period ended September 30, 2020.

The Company’s United States segment inventory is accounted for using the last-in-first-out (“LIFO”) method. This adjustment represents the impact on cost of sales as if the United States segment inventory is accounted for using first-in first-out (“FIFO”) method. The LIFO provision is affected by changes in inventory quantities, product mix, and manufacturer pricing practices, which may be impacted by market and other external influences. Therefore, the Company cannot control the amounts recognized or timing of these items.

Gain or loss on certain derivative instruments used as economic hedges of the Company’s net investments in foreign subsidiaries. These charges are recorded within other income (loss). We do not believe this volatility related to mark-to-market adjustment on the underlying derivative instruments reflects the Company’s operational performance.

During the three months ended February 28,2022, the Company finalized the working capital adjustments with AmerisourceBergen resulting in $38 million reduction in this receivable balance. This reduction of $38 million is recognized as a charge in the Consolidated Condensed Statement of Earnings, in Other (expense) income.

Impairment of equity method investment and investment in equity securities includes impairment of certain investments. The Company excludes these charges when evaluating operating performance because these do not relate to the ordinary course of the Company’s business and it does not incur such charges on a predictable basis. Exclusion of such charges enables more consistent evaluation of the Company’s operating performance. These charges are recorded within Other (expense) income.

Includes significant gains on business combinations due to the remeasurement of previously held minority equity interests and debt securities to fair value. During the three months ended November 30, 2021, the Company recorded such pretax gains of $2.2 billion and $402 million for VillageMD and Shields respectively.

Includes significant gain on sale of equity method investment. During the three months ended February 28, 2021, the Company recorded a gain of $191 million in Other income due to a partial sale of its equity method investment in Option Care Health.

Adjustments to income tax provision (benefit) include adjustments to the GAAP basis tax provision (benefit) commensurate with non-GAAP adjustments and certain discrete tax items including U.S. tax law changes and equity method non-cash tax. These charges are recorded within income tax provision (benefit).

Adjustments to post tax earnings from other equity method investments consist of the proportionate share of certain equity method investees’ non-cash items or unusual or infrequent items consistent with the Company’s non-GAAP adjustments. These charges are recorded within post tax (loss) earnings from other equity method investments. Although the Company may have shareholder rights and board representation commensurate with its ownership interests in these equity method investees, adjustments relating to equity method investments are not intended to imply that the Company has direct control over their operations and resulting revenue and expenses. Moreover, these non-GAAP financial measures have limitations in that they do not reflect all revenue and expenses of these equity method investees.

 Sales

 Gross profit (GAAP)

 LIFO provision

 Acquisition-related amortization

 Adjusted gross profit (Non-GAAP measure)

 Selling, general and administrative

 expenses (GAAP)

 Acquisition-related costs

 Transformational cost management

 Acquisition-related amortization

 Adjusted selling, general and administrative

 expenses (Non-GAAP measure)

 Operating income (loss) (GAAP)

 Adjustments to equity earnings in AmerisourceBergen

 Acquisition-related amortization

 Transformational cost management

 LIFO provision

 Acquisition-related costs

 Adjusted operating income (loss)

 (Non-GAAP measure)

 Gross margin (GAAP)

 Adjusted gross margin (Non-GAAP measure)

 Selling, general and administrative expenses

 percent to sales (GAAP)

 Adjusted selling, general and administrative

 expenses percent to sales (Non-GAAP measure)

 Operating Margin (GAAP)²

 Adjusted Operating Margin (Non-GAAP measure)²

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two-month reporting lag, operating income (loss) for the three and six month period ended February 28, 2022 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2021 through December 31, 2021 and the period of July 1, 2021 through December 31, 2021, respectively. Operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020, and the period of July 1, 2020 through December 31, 2020, respectively.

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

 Sales

 Gross profit (GAAP)

 Transformational cost management

 LIFO provision

 Adjusted gross profit (Non-GAAP measure)

 Selling, general and administrative

 expenses (GAAP)

 Acquisition-related amortization

 Certain legal and regulatory accruals and settlements

 Transformational cost management

 Acquisition-related costs

 Adjusted selling, general and administrative

 expenses (Non-GAAP measure)

 Operating income (loss) (GAAP)

 Adjustments to equity earnings (loss) in

 AmerisourceBergen

 Acquisition-related amortization

 Transformational cost management

 LIFO provision

 Certain legal and regulatory accruals and

 settlements

 Acquisition-related costs

 Adjusted operating income (loss)

 (Non-GAAP measure)

 Gross margin (GAAP)

 Adjusted gross margin (Non-GAAP measure)

 Selling, general and administrative expenses

 percent to sales (GAAP)

 Adjusted selling, general and administrative

 expenses percent to sales (Non-GAAP measure)

 Operating margin (GAAP)²

 Adjusted operating margin (Non-GAAP measure)²

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two-month reporting lag, operating income (loss) for the three and six month period ended February 28, 2022 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2021 through December 31, 2021 and the period of July 1, 2021 through December 31, 2021, respectively. Operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020, and the period of July 1, 2020 through December 31, 2020, respectively.

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

Fiscal 2021 data related to Walgreens Health operating segment has been reclassified to conform to the current period presentation.

 Gross profit (GAAP)

 Adjusted gross profit (Non-GAAP measure)

 Selling, general and administrative

 expenses (GAAP)

 Adjusted selling, general and administrative

 expenses (Non-GAAP measure)

 Operating income (loss) (GAAP)

 Adjustments to equity earnings (loss) in

 AmerisourceBergen

 Adjusted operating income (loss)

 (Non-GAAP measure)

 Gross margin (GAAP)

 Adjusted gross margin (Non-GAAP measure)

 Selling, general and administrative expenses

 percent to sales (GAAP)

 Adjusted selling, general and administrative

 expenses percent to sales (Non-GAAP

 measure)

 Operating Margin (GAAP)²

 Adjusted Operating Margin (Non-GAAP

 measure)²

Operating income (loss) for United States includes equity earnings (loss) in AmerisourceBergen. As a result of the two-month reporting lag, operating income (loss) for the three and six month period ended February 28, 2022 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2021 through December 31, 2021 and the period of July 1, 2021 through December 31, 2021, respectively. Operating income (loss) for the three and six month period ended February 28, 2021 includes AmerisourceBergen equity earnings (loss) for the period of October 1, 2020 through December 31, 2020, and the period of July 1, 2020 through December 31, 2020, respectively.

Operating margins and adjusted operating margins have been calculated excluding equity earnings (loss) in AmerisourceBergen and adjusted equity earnings (loss) in AmerisourceBergen, respectively.

 Gross profit (GAAP)

Adjusted gross profit (Non-GAAP measure)