To start off, one of the first sessions, I'm really pleased to have with us, Walgreens, and joining us is, Tim Wentworth, newly appointed CEO, and Manmohan Mahajan, newly appointed full-time CFO. Really thanks for both of you being here today. Thanks. Glad to be here. You know, maybe just start off, Tim. 4 months in now, I know you had spoken with investors at earnings in January, kind of got a first glance, I think, 2 months on the job, 2 months more now. Maybe give us a sense on what you're seeing, in terms of where we're at, and, you know. Sure. Maybe give us an update there. Sure. Thanks. And appreciate everyone joining us this morning here in the room, and online. So it's, you know, as you say, it's been four months. We, thankfully, were able to deliver earnings as pretty much folks would have expected. All of that wasn't a surprise. I think for me, as I look at four months in, there are a couple of things I would just point to. One is that we've put together a team who I feel is really, really going to drive the business effectively. So if you haven't been following us in the first three months, actually, I was fortunate enough to be able to appoint four executive vice presidents from outside the company, so four external hires, and two internal promotions out of my nine-member team. And that was the starting point. To get anything else done, we needed a team that believed in the company. One of the things that's been a, you know, I don't want to call it a pleasant surprise, but has been just reassuring, has been the amount of goodwill that this company has, both from the employees inside the company, the belief in what we do, and those who have stayed with the company a long time. We got Rick Gates here, who's been with the company over 20 years, for example, who is driving our pharmacy results, which have been very good, as you would have heard in the first quarter, where we actually gained share. Again, those new folks joining us and bringing a sense of energy and belief in what we can do, with this amazing platform in healthcare. I think the other thing is, we are now meaningfully looking at the entire portfolio of assets that we have to ensure that everything we have is going to drive to the growth that we aspire to deliver. We've got some very interesting things inside the company. The work that particularly we are doing with payers, in pharmacy services, the work we are doing with pharma, in clinical trials and supporting vaccines and drug launches is actually quite a bit more evolved than I appreciated coming in from the outside. So as we look at building a plan for 2025 and beyond that, that is not only believable but executable, I think we've actually got a really, really good starting point in a number of places. We have a ton to do still. You've seen us do some of that work as it relates to the balance sheet, whether it's the dividend, selling some core shares outright, because we know investors prefer the clarity that that provides, as well as meaningful capital reductions and expense reductions that we are well on path to deliver. And so we've done some very heavy lifting. We got more to do as it relates to that. This is not a quick story, but I believe it will be a highly sustained story, because the other thing that's very clear to me in every conversation I have, is that a large-scale, community-based, engagement-driven, trusted brand has a meaningful role to play in healthcare over the next 20 or 30 years. Would you say that's maybe one of the was maybe underappreciated by you coming in from the outside? You know, obviously, extensive experience, more from the payer side, obviously, running a big specialty pharmacy. So you understand pharmacy itself. But maybe, you know, what specifically about the retail pharmacy business maybe that you maybe underappreciate coming in? So, you know, I'd like to think, you know, I was sitting on my couch for 2 years and enjoying retirement, and I highly recommend it to anybody that's interested. But, what pulled me off that couch was I had seen firsthand in my family and in my own personal experience what I knew Walgreens, obviously, from my, you know, 25-year PBM career. But during the pandemic, it really, in the minds of not only me but American consumers, it redefined what a retail pharmacy can and should be in the care continuum in our communities and working on behalf of both patients and payers. You know, we saw suddenly pharmacists and technicians giving vaccines to millions of people. And for me, it wasn't so much how interesting it was that that was the only scalable way to deliver vaccines, which it was. But more importantly, the trust that the average American gave to their pharmacist or to their pharmacy to go into the store and actually have that person put a needle in their arm. It opened my eyes to the fact that that trust can be leveraged a lot of other ways on behalf of payers to drive engagement. Because if you think about why have Google and Apple and others struggled in healthcare, Amazon, it's because human-to-human engagement is still a fundamental dynamic in healthcare that payers are looking for, because it will measurably improve outcomes in a lot of areas. It's not to say there aren't areas where digital or virtual isn't value added and isn't complementary and doesn't make sense. But ultimately, there are meaningful delivered value points that can be enabled through a very large-scale, highly trusted point of contact. And that's what we have. And that's the piece I hadn't thought about when I ran Express Scripts. I remember Kermit Crawford saying to me, you know, we've got these clinics and, you know, people love us. And I said, Kermit, just because you got great clinics doesn't mean people will pay more for pharmacy. And by the way, they won't. But the idea that relationship you build through pharmacy can meaningfully be expanded to delivering services at a high level of engagement and trust and value creation on behalf of others was not something I fully appreciated. No, that's really helpful. And Manmohan, maybe you know, now, you know, was interim, now full-time, you know, full, I was full-time. Oh, yeah, yeah. Permanent appointment. Kermit is getting rid of the crown. Right, right. The permanent appointment here. Maybe you can share with us some of sort of your key areas of focus, you know, coming into the role. Yeah, sure. Establishing in the role. Sure. So look, I think the first and the foremost is, as we put out the guidance, the short-term goal is, right-size the cost structure of the company. So we put out the goal there, $1 billion of cost saving, in the year. We're also optimizing our capital project spend in the year and $600 million reduction there. And at the same time, improving our working capital year on year. And so those are, you know, three hefty goals, significant impact, on the business. And, you know, I think six months in, I'd say, you know, we're trending in the right direction on all three of those. So that's, you know, first and the foremost. Second, obviously, is delivering guidance. You know, I think we want to build credibility over time. And so, you know, to hit our guidance is critical. We understand that, and we work through that every day. You know, third, you would see incrementally us taking incremental steps on simplifying our financials. And so, yeah, I think we've talked about, sa lease back, and it's going to be the last year. You must have seen us trading out of our Cencora investment this time versus using a variable prepaid forward structure. So those are steps that we're taking intentionally to simplify our financials and, you know, making sure that, you know, everybody understands kind of where we are. And now, you know, the team is together; over the next 2-3 months is going to be all hands on deck. We're going through a strategic review, and, you know, that's going to be a focus area. You know, maybe on the strategic review. I think you've said it's coming up in April, and maybe talk a little bit about sort of maybe the kind of 3 kind of key things that you would like to come out of that meeting. And what do you think investors should hope to expect? So let me be really clear about one thing. In April, as I mentioned last night to you, we are sitting down with our board and going through a strategic review. There will not be a big bang after that, where we announce and unveil some incredibly new Walgreens. What you will see is that will be the starting gun for a lot of work that we have to deliver. And to answer the question in terms of what pieces and by the way, we will be driving messages to investors as we have reached conclusions about a number of things that will, I believe, be evaluated and ultimately supported by the board here. One is the role of the retail stores. You know, one of the things I think that's really important in our narrative that we got a little bit away from is that the stores are central to our strategy. Now, it does not mean 8,600 stores are central to our strategy. We need to get the footprint right. We need to look at the fleet, not based on what it's doing today, but what we need it to do in five years, given our services aspirations, and then reverse engineer what that footprint should look like, both the footprint in terms of numbers of stores and the footprint in terms of types of stores by market, whether that's urban, suburban, rural, whether that's a store that's delivering incremental health services, or one that's simply a is functioning more as a community pharmacy. So all of that and getting the board aligned on that, because, again, I believe it's really important, not to look past the stores to the other things that we aspire to grow incrementally, but rather be clear about our strategy for the back and the front of the stores. And that's a big piece of work. Let me be clear, because traditional retail is under pressure, as we all know. I believe there's a role for the front of our store to play. But we've got to really look at critically how to what does the investment need to be? What does the format need to be? What is the process to achieve that? And how do we unlock enough capital to do what we would want to do? So that's number one. Number 2 is to clearly align the board on our assessment of the current assets that we have. We've got some very good assets. Let me be very clear. In fact, there are for everything that we have, whether it's home care, whether it's Shields, whether it's Boots, whether it's VillageMD as an investment, there are folks that absolutely believe in the future of those businesses. We believe in the future of those businesses. That's not the question. The question is, are we the most appropriate place for that to sit as 100% owners in the case of most of those, not Village? Or do we belong in a different place? And how do those relationships enable us to grow our services business in the ecosystem, in a complementary way? So questions like, how much does Shields drive our specialty business, for example, is something that we're looking at, not just today, but in the future, because we love working with health systems, and Shields is a terrific asset. And I love the fact that we've got it. And so from that standpoint, whatever you may have read, don't believe it. We are not announcing we're selling Shields. We are looking at Shields to make sure we think about the best way to get the most value for the marketplace and for ourselves, by owning that. So that's the second piece. And then the third will be clarity and agreement on either the things that we're currently doing today that are small green shoots in the business, such as clinical trials for pharma, for example, such as Test and Treat and other extensions of our pharmacy on behalf of payers, such as central services and investment in our multi-site fulfillment facilities, for example. Those are things where we need to plot the future. And so we're doing mini-strat plans for every one of those assets, CareCentrix, Shields, and so forth, so that we've got the context of each of those businesses. And getting the board aligned around that is the third piece. So I think it's really, really important to understand that that's going to yield then a roadmap of things that we will do. As we look at announcing our 2025 guidance, we'll be clearly by then giving a picture of where we intend to invest and how. Great. Want to touch on the first of those, right? With retail as the core, part of the strategy. Yeah, I definitely think that over the last couple of years, the messaging kind of drifted to sound like all focus was on healthcare, and the stores were part of that, but maybe not as important. You know, you mentioned a little bit beforehand. Well, if retail is the core, you mentioned it's a tough environment. You know, how are you thinking about to improve that and to fix that, right? I know would love to touch on your thoughts on, obviously, a shift to cost-plus model. Does that really help? You know, what about the SKU reductions you talked about? Maybe touch on those couple of things. Sure. So front of the store in particular. I mean, first of all, you know, if you walk into our stores, depending on where you walk into them, they either look great or some of them don't. You know, we also have the shrinkage problem, and some of our urban locations are very, very challenged right now, and it shows. And we're working through a number of solutions on that, everything from how we engage legislatively to strategic use of technology and so forth. So from that standpoint, you know, that's going to be an ongoing challenge for us. When you think about, though, the fact that, again, I talked about footprint, SKUs, you know, we work with a large number of the national brands now, and we're important to them. I believe, much as a PBM uses a formulary, you know, we can take a critical look at category by category, who we work with, along with our own brand, because over time, growing our own brand, which we've done some this year, but meaningfully growing our own brand is something we actually should be driving at. We have a trusted brand. We have a trusted name. And our own and our we have pharmacists that can direct patients to certain over-the-counter solutions. And so driving own brand, along with a narrowing of the SKUs of national brands, could, I think, unlock some real value. I think as well, the front of the store, our patient experience, and I hate using buzzwords, so I'm going to really try to define it rather than use a buzzword, to engage with the consumer where she or he, but many of our target consumers are she's, want to engage with us. If she wants to drive through the drive-through today, she wants to order online and pick up in store next week, and she wants to order online and have it delivered to her home, and she wants to come into the store and have a good experience. We got to be able to deliver on all 4 of those really, really well from a technology-supported perspective. And we aren't there all the way yet. It requires a lot of systems talking to other systems so that your inventory at the store level at that moment, it ties to what that consumer is actually thinking that she's or he's getting. And so the digital omnichannel experience is something that we can evolve meaningfully. And we've got some resources internally now that I think will put us a long way down there. And then that will also tie to loyalty, because I think that, you know, as you know, consumers respond fairly aggressively to well-designed loyalty programs. Walgreens actually had the best one back when they launched it in the mid-2000s. And we've kind of gotten away from investing in that. That's another piece. So front of the store, how we engage, SKUs, own brand, also being distinctive. That's the piece that, you know, I'm not prepared to talk a lot about today, but to say, you know, who do we want to be deep with? I believe it's women 30-50 years old, and there's a number of levers that we have in our stores that could potentially create that. So that's something that we're spending a lot of time on. Back of the store and reimbursement, as you say, that pressure has been, you know, forever. I'm one of the guys that put a lot of that pressure on over the years, as Rick reminds me all the time. And I think we see now the fact that the underlying dynamics that created, you know, the meaningful pressure at the back of the store are changing. And so whether it's CVS's announcement or other signals that you would see, I have reason to believe that the reimbursement pressures at the back of the store, which have positioned us to really we still make money back there, but it gets harder and harder, are not going to go away. But I think things like a Cost Plus Model will offer what I believe the market wants. Because I think what's interesting is I think what CVS was doing was responding to what the market is increasingly wanting at the payer level. And I think that, therefore, to the extent that the market wants to pull these models forward, that's going to be good for us to pay us for the services that we provide. and to begin to eliminate what's been a 25-year cross-subsidy, which many of you would be aware of, but many of you may not, which basically was the PBMs would give brands and the retailers would basically give the brands away or even give them away at a loss in order to make money on the generics, because everybody was aligned to drive generics, which was really important when generics were 40% of the market. Today, they're 91% of the market. You suddenly have a situation where there are no more or there aren't more, but not many more new generics every year. So you're not growing the pool of subsidy as well. There's not a lot of brand inflation. So, therefore, what you are giving away incrementally on brand is not being supported by more pricing in the market. You've got new brands coming in at very high rates, like the GLP-1s. So it is unsustainable. The PBMs know this because their mail service pharmacies experience the same dynamic. So I believe it gives us a chance to meaningfully change the conversation, not just to cost plus, but to other services we can provide that create value, that PBMs or payers can actually bundle up for their members and create new value. Because the days of PBMs being able to give 3%-5% improvements on retail or threaten to move to a more narrow network for 4%, most payers just are not going to narrow their networks. So we have to change the conversation. And we already see that happening. I'm very, very encouraged by the fact that the PBMs are very realistic about how do we sit down and change the conversation. That will, again, create more space at the back of the store for more services that are paid for. We do this today. Get paid vaccines, Test and Treat, those things. We are paid a fair fee for the services we provide. There's no cross-subsidization going on that distorts the economics for us or for the marketplace. If we talk about this increase in services, right, we've seen operating margins in the retail segment, you know, have been declining year-over-year for a while. Have you, do you feel like we've reached sort of the bottom here? And then maybe talk a little bit of what your current mix between sort of core dispensing of prescriptions versus, you know, these other services, which I'm assuming are coming at better margins. Yeah. You know, maybe give us a sense here. Have we kind of hit the floor, you think? I think it's close. I'm going to let Manmohan add a little color here on sort of how it adds up, the non-pill putting in bottle part of our business. But what I would say is I'm not calling the bottom here. I mean, listen, PBMs are always going to be pressed to create value by their customers, and they're going to look to us to share value. But do I think that what we've seen over the last several years is, as a percentage of AWP, the reimbursement gives for new contracts have meaningfully declined. And they're not quite at a manageable level yet, but they're darn close. And I think that that's where they are headed. And the good news is the services that now occupy a material part of our back-of-store economics, also are material, I believe you would say, in terms of their contribution. Yeah, absolutely. So look, if you look away from Script for a second and think about the services, maybe three separate buckets to think about it. The first one, obviously, is vaccination. And that has come in really strong. We talked about this, at the earnings after first quarter. We do see, you know, us gaining more than our fair share on that, given, you know, how we drove that, in this year. So that's one part of it. The second, which is upcoming, and we're seeing a lot of progress is test and treat as we talk about it. And we see a pipeline of contracts that we're working with peers and others, to put that in place in a big way, for our fiscal year 2025, and forward. Then there is, you know, what we call, you know, adherence programs that we work with, our peers, on behalf of our peers. This is just achieving outcomes that are critical for them to achieve their goals. So, you know, those are maybe three different buckets you need to think about from a services standpoint. Yeah, the only I want to do an and here because just to double-click quickly on an added one that 3 years ago didn't exist, and yet today is meaningful, particularly from a use of capital standpoint. That is, pharma trial recruitment, which puts us in a really, really interesting place with pharma companies. I spent 30 minutes at the JP Morgan conference with one of the largest pharma companies, along with Rick and Manmohan, in the world, who at that conference, nobody has time, wanted to talk to us for 30 minutes about what we were doing with them there and on vaccines, and 1 hour with the largest vaccine manufacturer in the in the world. What I would tell you is, you know, those businesses that didn't exist for us 3 years ago are natural for us. We don't own a PBM, so there's no payer conflict in terms of using our data to recruit patients for trials on behalf of pharma. We're able to recruit diverse patient panels 4 times faster than pharma can do it themselves; speed matters when you're doing trials. And we get paid for it, and it's a variable cost business. We hire late; we hire humans, and we use our data to deliver that value to pharma. We aren't buying clinics and building brick and mortar to do it. We may leverage our stores to draw blood in the middle of a trial or something like that, but that's an added service. Point being, these sorts of things, while any one of them may not look like it's 10% of our underlying earnings, is highly capital efficient. 2 or 3 of those added together suddenly starts becoming a meaningful part of our growth story. Absolutely. Yeah, no, that makes a lot of sense. You know, maybe you just wanted to follow up, though. What what would you think is the you talk about capital efficient, so maybe from an investment side, it's not as significant. But in terms of timelines, you know, I think, you know, Boots is a great example of a business that's done pretty well over the last few years. You know, it is how long do you think if when you have this review, let's say Napalm, that's starting good and starts, investors can think about progression? Yeah, I mean, this is not a 12-month turnaround story, right? I mean, there's some things you can unwind quickly if you don't like them, or you want to redo how you think about them, or you want to grow them more quickly. All of that takes time and thoughtful planning as well, even the decision to unwind something, you know, the timing to unwind it may matter in terms of how much of your investment you get back or how much growth you're able to achieve from it. And so what I would tell you is, you know, I think post our earnings call the next quarter, you know, we intend to begin to develop a narrative about the things that we're deeply committed to and focused on. But again, it's, you know, I don't anticipate an analyst day in September where we open a curtain up and there's some new company. I think you're talking about, you know, this is a 12-24-month process to ultimately settle the, by the way, while growing every one of these services that we're talking about here. So from our perspective and managing reimbursement, you know, in a different way. So it's not as if nothing's going to happen in the next, you know, between April and middle to end of next year. But just as you if you look at something like you mentioned Boots, even if we were to make a decision today, which we have not, to execute some sort of a separation with Boots, that's a, you know, minimally probably a 15-month transaction. Again, we're not going to wait 15 months to tell you, but we don't have anything to announce today either. I think throughout the year, you should hold us to being honing to a philosophy that gets very clear about focus, gets very clear about making it easier to track our performance, and gets very clear about the fact that the retail stores front and back will be center of the enablement of the broader part of our strategy. No, that means that's helpful. I was actually more meaning like, you know, I think Boots has had great success in, you know, gaining share in this market, particularly in the U.K., where they're obviously in a recession as well. A lot of learnings. Do you feel you can bring a lot of knowledge? I appreciate. Sorry, that's a great question. We have actually spent a lot of time, with our Boots colleagues, both over there and them coming over. And we've actually transferred some talent back and forth, which has been terrific at the senior level. You know, Boots, to your point, was 5 years ago. Boots was not performing. And today, they are a very highly performing retailer, probably the highest performing retailer in Great Britain. And of course, they have some other operations as well, but they really are UK-centric. And so you look at that. That was 5 years ago; they were troubled. It probably took a solid 3 years for them to meaningfully be delivering consistent performance. And so I don't think that's an unrealistic sort of timeframe to be looking at. I mean, converting a large fleet of stores and showing the consumers something new and getting them to engage doesn't just happen overnight. Don't get me wrong. We had a TikTok influencer put something up about peeled mango gummies, and we can't keep them in stock now. So certainly, we can do have some virality to our consumer base. But by and large, the broader set of questions that we've got to answer, we'll probably take a couple of years to really begin to show fruit. Right. And Manmohan, maybe talk about you talk about simplifying the financials, making things a lot cleaner and easier for investors to understand. I imagine some of that we'll start to see with the second quarter here. But just, you know, maybe to help level set folks as we think about maybe headwinds and tailwinds we should think about for 2025. I know it's a little early, but there are some big moving pieces that people should remember. Yeah. So maybe very quickly on simplification. I think I did talk about sale-leaseback, which we've, you know, talked about externally. You've already seen what we're doing with Cencora stock, which is a block trade versus VPF. We will, you know, there's a lot of expectation from the community on more information around U.S. healthcare segment. And so you will see over the next, you know, 3-6 months, we'll start putting out more information so that, you know, you can see the building blocks of the adjusted EBITDA growth, which is significant year-on-year. So you will see all of those coming together over time. Now, in terms of, you know, look forward to 2025 and, you know, headwinds and tailwinds, let me a couple of headwinds, as you know, I can point out, you know, we're going to stop sale-leaseback. And so, you know, there's going to be a level of headwind, as we get into next year. Similarly, as we continue to sell down our interest in Cencora, you'll see the equity earnings pickup we have. You'll see that as kind of a headwind into 2025. Now, what we feel good about in terms of tailwinds are some of the themes we talked about, you know, a couple of months ago in January. And so pharmacy services, you know, we've been talking about that here. We see continued growth in that. We're seeing our clinical trials business shaping up. We're seeing our data analytics and platform, you know, shaping up. Shields continue to grow. We talk about it in our earnings call. And the adjusted EBITDA growth within overall healthcare segment, obviously, is a growth story for us as well. So, you know, those are components of the tailwind. So maybe, you know, that's kind of how you need to think about. There is work, Tim has talked about it, on the retail side that we have embarked on. It's not one thing. It's multiple things. We're looking at it from a customer standpoint, assortment standpoint, own brands. And all those themes are, you know, going in, you know, being put into works here. But again, I, you know, this is something that's going to take a little bit of time. Yeah. And our operating assumption, just to be super clear about 1 element of it, is that the consumer is challenged and will remain challenged. It'd be nice if that isn't true. Challenge to our consumer. And so if we get a tailwind on that, that'd be wonderful. Our assumption is we're going to have to earn that consumer back. We're going to have to engage with them better than anybody. We're going to have to create what I call the Chick-fil-A experience for our members, except 7 days a week. And that's going to have to be earned. No, no, that well, look, we're looking forward to that. Maybe just, lastly, you know, if we look at the fiscal 2024 guidance, right, it implies a steep ramp as we get into the back half of the year. Maybe give us, you know, your sense on visibility. Like, what are sort of the tailwinds that, you know, help us get there? Yeah, sure. So, you know, No. 1, we talked about cost savings. And so the thing that's simple to think about is, you know, we take initiatives. We exercise, you know, certain actions. You begin to see them, the benefit of that, obviously, ramping up in the second half. So we do see second half more benefits coming through our right-sizing the cost structure versus the first half. We continue to see, you know, good progress in our U.S. healthcare segment, on the road to, you know, adjusted EBITDA positive, by the end of this year. And so that is going to continue to scale. You know, that, you know, we continue to see that. There is a tax benefit that we talked about in our January earnings call that we do see there's going to be benefit in the second half that hasn't come through here in the first half. Outside of that, I, you know, look, yeah, on the retail side, you know, as I said, you know, we're all hands on deck. We're very focused on that. The one thing I do point out is if you look at the comps we have in the second half this year versus second half last year, it's going to be better than the first half. And so, you know, there is that playing out for us. So those are maybe four components, four larger components, as you think about first half versus the second half ramp. Great. And maybe in the last minute here, Tim, you talked about strategic review. Where do these assets sit best? And, you know, with the retail pharmacy kind of becoming more front and center, you know, where does healthcare, in your mind, sit in terms of, you know, how it will benefit Walgreens going forward? Yeah, I think it's central. I actually think there's a demand pull for what we can do on health services that's very real, and that we've already responded to. But we have a tremendous amount of runway, I believe, to build in front of us that we can respond to. So I think it's central. I think to believe in this thesis, it's not sufficient to just see us as a retail pharmacy that has a good front end. I think you have to believe that, as I do and as our team does, including, again, four new people from the outside who all left really good jobs, all who have very large and appropriate reputations, see that opportunity. They came to be part of that, to be part of an iconic brand that has permission to drive engagement in a way that very, very few people can do. I'm going to close with a story. It's graphic, and I'll apologize. But, you know, if you're familiar with Cologuard, which is a necessary colon cancer screening device that you can take home and use and then send in or bring to a pharmacy, when a Walgreens pharmacist talks to you about that and gives it to you, you're likely 50% of the time to complete it. If your health plan asks you to do it, it's less than it's about 10% of the time. That kind of engagement in a very difficult-to-take test. Look it up, and see what that process is. I threw mine out when it came to my house because I was like, "I'm not doing that." And yet and I was indicated that I should have, right? And so the fact that we've got that kind of trust with tens of millions of Americans and engagement points and engagement experiences, even if it's in front of the store buying a bag of Doritos, like I said, we have a chance to turn that into a value-creating opportunity for others that are taking risk, that are collecting premiums, and that will pay us a fair fee to deliver it. And I think that's integral to the future growth story that'll be Walgreens. Great. I think we'll end it with there.