Group strategy and objectives

The strategy for the Group is to continue to grow and develop our core businesses of pharmacy-led health and beauty retailing and pharmaceutical wholesaling in existing geographical markets, to pursue growth opportunities in new markets and to continue to deliver our merger cost savings. We believe that doing this will enable us to achieve sustained growth and turn our vision for Alliance Boots into reality.

Grow our core businesses in existing geographical markets

In existing geographical markets our strategy is to grow our two core business activities, including related healthcare services, both organically and through acquisitions. We believe that we have the capabilities to achieve this, including the customer insight, brands, scale, financial strength, organisation and people.

Pursue international growth opportunities in new markets

As a result of the merger and subsequent move to private ownership, we see Alliance Boots as having the skills, resources and financial strength to execute our strategy of moving profitably into large and fast growing new international markets in pharmacy-led health and beauty retailing and pharmaceutical wholesaling through acquisitions and partnerships, including investments in associates and joint ventures. We also plan to capitalise further on the strength and international appeal of Boots branded products.

Continue to deliver the cost savings announced at the time of our merger

At the time our merger was announced we committed to delivering cost savings of at least £100 million per annum by the fourth full year following completion of the merger. This started with harmonising buying prices and reducing corporate costs and we are on track with our longer term project to streamline our combined distribution network in the UK. Since becoming a private company we have been able to focus on accelerating the programme.