Rexall Makeover and Its Impact on Human Resources

Today s Agenda Introduction A brief history Brand reinvention and acquisition strategies Impact on HR Attract Retain Motivate Summary of findings 2

My career Joined Katz Group Canada in 2003 and has held his current position of Executive Vice President, Human Resources and Corporate Relations since 2006 Human Resources, Organizational Development and Training, Recruitment and Retention, Communications, Legal President and Chair of Rexall Foundation Held several senior positions at TD Canada Trust in Information Technology, Operations and Development Former Vice President, Human Resources, Money Foods North America 3

A Walk Through Our Evolution 1992 1996 1997 2000 2004 First Medicine Shoppe Opens Rexall chain acquired Pharma Plus Drugmart chain acquired Katz acquires Drug Trading First new large format concept store launched

A Walk Through Our Evolution 2005 2011 2012 2012 2012 Pharma Plus rebrands as Rexall 200+ new or repositioned Rexall and Rexall Pharma Plus pharmacies Katz Group sells Guardian and IDA Katz Group acquires Dell Pharmacies Launch: brand reinvention

HR DNA Organizational Culture Company Brand Employee Value Proposition Total Rewards Strategy Compensation Benefits Work-Life Performance & Recognition Development & Career Opportunities Attract Retain Motivate Employee Satisfaction & Engagement Business Performance & Results 7

Brand Reinvention 8

Rexall s Strategy 13

Attract Where is the company going? What is the external message? What is the employer brand? Ultimately, how will the organization be perceived by candidates? 14

We have a defined strategy to win 15

Our Brand Position For the health-conscious young family, Rexall is Canada s complete healthy daily living destination, which, like a mega-dose of feel good, inspires and makes it easier to live a healthier and happier life.

Attract - Our Core Values

Attract - What Makes Us Special? 18

Attract - How Do We Make A Difference in People s Lives? +329% Ontario Flu Shots 2012 80% 10X 8% % of Stores % of Flu Shots

Retain - Competitive Strategy MANTRA WIN Most complete health experience Feel good guides Personalized health experience Easy to feel good. Every way. Every day. Inspiring feel good store Always a feel good choice Best of both worlds health expertise DIFFERENTIATE First in Feel Good Innovation All-in destination for top 5 health topics First to market Health & Wellness products Brand defining owned products First to market Health & Wellness services Right where you are flexible store formats Easiest multichannel shopping experience Easier to shop Easier to serve my customers Quick and easy Rx Easy Access COMPETE Retail calendar Front Shop Price Strategy Rx Price Strategy Growth through Acquisitions Specialty Rx In-stock & on-shelf FOUND- ATION Processes Technology Skills, capabilities, talent

Retain Change Means Learning

Retain Impact on Talent Management Process

Retain Incentive Programs

Motivate I would recommend this company as a good place to work. 73%

Motivate Improvement was made on 3 key metrics Engagement Scores Overall Corporate Stores Engagement Metric Survey #1 Survey #2 Difference Retail Benchmark 5 Engagement Drivers: 1. Executive Management Driver item #14 2. Customer/Patient Service Driver item #7 3. Training & Development Driver item #22 4. Operating Efficiency Driver item #10 5. Teamwork Driver item #11 55% 60% +5% -1% +1% -2% +1% Survey Participation Rate % of Engagement Action Plans Completed

Motivate - Recognition Programs 26

Motivate - Total Rewards 5 pieces of Total Rewards Pay base pay, vacation pay, bonus, merit, commission payments Benefits medical, dental and insurance coverage Retirement a company matched pension program Recognition Service Awards, WOW cards Perks employee discount, employee purchase program 27

Acquisitions 28

51 1 Corporate Stores Total 473 (April 2016) 95 13 23 289 1 29

Seschelt, BC 30

Devon, AB 32

Devon, AB 33

Acquisitions Develop a Mergers & Acquisitions playbook in order to: Facilitate efficient and effective due diligence and integration of newly acquired stores Assess how the store culture impacts the operating environment and help them integrate into Rexall Develop a retention strategy for key talent acquired 34

Acquisitions Evaluate and align structure and roles Assess the total rewards strategy to align with company Have a comprehensive change management plan Emotions Union/Non-union Communications/Onboarding What are the values of the organization? 35

The Rexall Foundation has been helping build strong and vibrant communities by supporting numerous charitable organizations since 2002. In 2015, the Rexall Foundation donated over $1,000,000 to 84 charities and organizations in Canada, which helped 774 children.

Summary 38

Summary What does this mean for a true HR business partner organization? Brand reinvention: Culture Today s leaders, are they tomorrows? Employee engagement HR programs live up to the new brand Acquisitions: Playbook Culture Emotions HR programs to onboard 39

Thank You 40