Annual Report

1 2020. Annual Report Walgreens Boots Alliance #WeAreWBA. Board of Directors James A. Skinner Stefano Pessina Executive Chairman, Executive Vice Chairman Walgreens Boots Alliance, Inc. and Chief Executive Officer, Walgreens Boots Alliance, Inc. Jos (Joe) E. Almeida Janice M. Babiak David J. Brailer, MD. Chairman of the Board Former Managing Partner, Chairman, and Chief Executive Officer, Ernst & Young LLP Health Evolution Partners Baxter International Inc. William C. Foote Ginger L. Graham Valerie Jarrett Lead Independent Director, Former President and Former Senior Advisor to Walgreens Boots Alliance, Inc. Chief Executive Officer, President Barack Obama Former Chairman and Chief Amylin Pharmaceuticals Executive Officer, USG Corporation John A. Lederer Dominic Murphy Nancy M. Schlichting Senior Advisor, Co-Head of UK Investments, Former Chief Executive Officer, Sycamore Partners CVC Capital Partners Henry Ford Health System As of October 29, 2020.

2 UNITED STATES. SECURITIES AND EXCHANGE COMMISSION. Washington, 20549. FORM 10-K. Annual Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES. EXCHANGE ACT OF 1934. For the fiscal year ended August 31, 2020. TRANSITION Report PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES. EXCHANGE ACT OF 1934. For the Transition Period From to Commission file number 001-36759. WALGREENS BOOTS ALLIANCE, INC. (Exact name of registrant as specified in its charter). Delaware 47-1758322. (State of incorporation) ( Employer Identification No.). 108 Wilmot Road, Deerfield, Illinois 60015. (Address of principal executive offices) (Zip Code). Registrant's telephone number, including area code: (847) 315-3700. Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $ par value WBA The Nasdaq Stock Market LLC. Walgreens Boots Alliance, Inc.

3 Notes due 2020 WBA20 The Nasdaq Stock Market LLC. Walgreens Boots Alliance, Inc. notes due 2025 WBA25 The Nasdaq Stock Market LLC. Walgreens Boots Alliance, Inc. notes due 2026 WBA26 The Nasdaq Stock Market LLC. Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No . Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No . Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes No . Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T ( of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

4 Yes No . Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, . smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer . Non-accelerated filer Smaller reporting company . Emerging growth company . If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.. Indicate by check mark whether the registrant has filed a Report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 (b)) by the registered public accounting firm that prepared or issued its audit Report .

5 Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No . As of February 29, 2020, the aggregate market value of Walgreens Boots Alliance, Inc. common stock held by non-affiliates (based on the closing transaction price on Friday, February 28, 2020) was approximately $ billion. As of September 30, 2020, there were 865,915,666 shares of Walgreens Boots Alliance, Inc. common stock outstanding. DOCUMENTS INCORPORATED BY REFERENCE. Portions of the definitive proxy statement for our Annual Meeting of Stockholders planned to be held on January 28, 2021 are incorporated by reference into Part III of this Form 10-K as indicated herein. Walgreens Boots Alliance, Inc. Annual Report on Form 10-K. Table of Contents Part I. Page Item 1. Business 1. Item 1A. Risk factors 11. Item 1B. Unresolved staff comments 37. Item 2. Properties 37. Item 3.

6 Legal proceedings 38. Item 4. Mine safety disclosures 39. Information about our executive officers 39. Part II. Item 5. Market for registrant's common equity, related stockholder matters and issuer purchases of equity securities 42. Item 6. Selected financial data 43. Item 7. Management's discussion and analysis of financial condition and results of operations 45. Item 7A. Quantitative and qualitative disclosure about market risk 74. Item 8. Financial statements and supplementary data 76. Item 9. Changes in and disagreements with accountants on accounting and financial disclosure 134. Item 9A. Controls and procedures 134. Item 9B. Other information 135. Part III. Item 10. Directors, executive officers and corporate governance 136. Item 11. Executive compensation 136. Item 12. Security ownership of certain beneficial owners and management and related stockholder matters 136. Item 13. Certain relationships and related transactions and director independence 136.

7 Item 14. Principal accounting fees and services 136. Part IV. Item 15. Exhibits and financial statement schedules 137. Item 16. Form 10-K summary 150. Signatures 151. On December 31, 2014, Walgreens Boots Alliance, Inc. became the successor of Walgreen Co. ( Walgreens ). pursuant to a merger to effect a reorganization of Walgreens into a holding company structure (the Reorganization ), with Walgreens Boots Alliance, Inc. becoming the parent holding company. References in this Annual Report on Form 10-K (this Form 10-K ) to the Company, we, us or our refer to Walgreens Boots Alliance, Inc. and its subsidiaries from and after the effective time of the Reorganization on December 31, 2014 and, prior to that time, to the predecessor registrant Walgreens and its subsidiaries, and in each case do not include unconsolidated partially-owned entities, except as otherwise indicated or the context otherwise requires.

8 Our fiscal year ends on August 31, and references herein to fiscal 2020 refer to our fiscal year ended August 31, 2020. This Form 10-K includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. See cautionary note regarding forward-looking statements in management's discussion and analysis of financial condition and results of operations in part II, item 7 below. All trademarks, trade names and service marks used herein are the property of their respective owners. PART I. Item 1. Business Overview Walgreens Boots Alliance, Inc., a Delaware corporation ( Walgreens Boots Alliance ), is a global leader in retail and wholesale pharmacy, touching millions of lives every day through dispensing and distributing medicines, and through its convenient retail locations, digital platforms and health and beauty products with sales of $ billion in the fiscal year ended August 31, 2020.

9 The Company has more than 100 years of trusted healthcare heritage and innovation in community pharmacy and pharmaceutical wholesaling. Walgreens Boots Alliance's purpose is to help people across the world lead healthier and happier lives. Walgreens Boots Alliance is proud of its contributions to healthy communities, a healthy planet, an inclusive workplace and a sustainable marketplace. Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the United States and Europe. Walgreens Boots Alliance and the companies in which it has equity method investments together have a presence in more than 251 countries and employ more than 450,0001 people. The Company is a global leader in retail and wholesale pharmacy and, together with the companies in which it has equity method investments, has over 21,0001 stores in 111 countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 4251 distribution centers delivering to more than 250,0002.

10 Pharmacies, doctors, health centers and hospitals each year in more than 201 countries. In addition, Walgreens Boots Alliance is one of the world's largest purchasers of prescription drugs and many other health and well- being products. The Company's size, scale and expertise will help us to expand the supply of, and address the rising cost of, prescription drugs in the United States and worldwide. We provide customers with convenient, omni-channel access through our portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as increasingly global health and beauty product brands, such as No7, NICE!, Soap & Glory, Liz Earle, Finest Nutrition, Botanics, Well Beginnings, Sleek MakeUP and YourGoodSkin. Our global brands portfolio is enhanced by our in-house product research and development capabilities. We seek to further drive innovative ways to address global health and wellness challenges.