Preliminary Results 2004/05

Notes

Let me tell you what you will hear about today. First, Jim will take you through the financial results.

Then I will give you an update on the progress made by Boots over the past year. During this period we have continued to grow and remained highly profitable, in spite of the massive change programme we have implemented.

None of this has been easy. In particular, we have faced challenging competition and a slowdown in consumer spending. We know that we failed to meet expectations in the second half of last year. And trading in April and the first two weeks of May confirmed that demand on the high street remains subdued. We have seen nothing to suggest the cautious planning assumptions we have built in for sales for the full year are wrong.

However, we are committed to our task. I hope you will understand why that is the case when I share with you some of our thinking about the future.

The old Boots business model was tired and unsustainable; we have been weaning the company away from its reliance on charging ever higher prices to a declining customer base. And the early signs are encouraging. OVER THE LAST YEAR WE HAVE SERVED MORE CUSTOMERS AND HELD OR GROWN SHARE IN OUR CORE MARKETS.

It is early days, but the results of the last year give us confidence that we are pursuing the right strategy. One that will deliver long-term value for our shareholders as we create a sustainable future for Boots.

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Now I will hand over to Jim.