1. 1 Mr. Patrick B. Nixon Director and CEO Mr. Patrick B. Nixon Director and CEO

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3. 3  Control produce procurement  Leadership role in Health & Wellness  Virtual Commissary (Phase II)  Set the standard for fiscal responsibility  Speed to shelf  Lift per promotional dollar  Deliver the Store of the Future  Control produce procurement  Leadership role in Health & Wellness  Virtual Commissary (Phase II)  Set the standard for fiscal responsibility  Speed to shelf  Lift per promotional dollar  Deliver the Store of the Future

4. 4 (Insert Store of the Future Video Here)

5. 5  Sales Growth $3,675.9 FYTD May vs. $3,610.5 in May FYTD 2006 (up $65.4M; +1.8%)  Benefit Value 32% in FY 2006 vs. 30% Goal  Patron Satisfaction 4.23 vs. 4.55 - (+7.6%) ACSI for CY 2006 is 77 vs. Supermarket Industry 75  Sales Growth $3,675.9 FYTD May vs. $3,610.5 in May FYTD 2006 (up $65.4M; +1.8%)  Benefit Value 32% in FY 2006 vs. 30% Goal  Patron Satisfaction 4.23 vs. 4.55 - (+7.6%) ACSI for CY 2006 is 77 vs. Supermarket Industry 75

6. 6 15.322.1Inventory Turns 45,00016,829Avg. Number of SKU’s 34,14731,392Avg. Sq. Ft. per Store $30.86$60.76Avg. Transaction $ 7.12$16.15Weekly Dollar Sales per Sq. Ft. of Sales Area $297,496$506,968Avg. Sales per Week 15.322.1Inventory Turns 45,00016,829Avg. Number of SKU’s 34,14731,392Avg. Sq. Ft. per Store $30.86$60.76Avg. Transaction $ 7.12$16.15Weekly Dollar Sales per Sq. Ft. of Sales Area $297,496$506,968Avg. Sales per Week

7. 7  The AAFES Community Development Initiative Concepts  Town Center  Lifestyle Center  Mixed Use Development Locations: AAFES investigating feasibility at 7 locations  DeCA will participate where it makes sense  FY 2008 replacement commissary at Fort Bliss being planned as part of a Town Center May include: Fast food, fitness centers, furniture, military clothing, theatres, and national retail chains for books, clothing, casual dining, etc.  The AAFES Community Development Initiative Concepts  Town Center  Lifestyle Center  Mixed Use Development Locations: AAFES investigating feasibility at 7 locations  DeCA will participate where it makes sense  FY 2008 replacement commissary at Fort Bliss being planned as part of a Town Center May include: Fast food, fitness centers, furniture, military clothing, theatres, and national retail chains for books, clothing, casual dining, etc.

8. 8  “Clean Audit Opinion” Fifth Consecutive Year  Highest score in DoD for FY 2006 Annual Statement of Assurance for Internal Controls  Average energy use per sq. ft. 10% above the “Energy Star” rating for supermarkets  “Clean Audit Opinion” Fifth Consecutive Year  Highest score in DoD for FY 2006 Annual Statement of Assurance for Internal Controls  Average energy use per sq. ft. 10% above the “Energy Star” rating for supermarkets

9. 9  Best customer identity theft protection Latest encryption in DoD Strong firewalls and intrusion detection protect confidential data  Annual FISMA and Privacy Act compliance certification  Best customer identity theft protection Latest encryption in DoD Strong firewalls and intrusion detection protect confidential data  Annual FISMA and Privacy Act compliance certification

10. 10  Scholarship program Applications: 39,927 Recipients: 3,532 Dollars awarded: $5,506,000  Voter Assistance & Military One-Source  Spouse & family member hiring 38% employment  Scholarship program Applications: 39,927 Recipients: 3,532 Dollars awarded: $5,506,000  Voter Assistance & Military One-Source  Spouse & family member hiring 38% employment

11. 11  DeCA Dietitian Promote DeCA as Nutritional Leader Partnership with DoD Partnership with TRICARE  DoD Nutrition Committee “Ask a Dietitian” on www.commissaries.com  “ Its Your Choice, Make It Healthy” Campaign Regional commercial grocer application  DeCA Dietitian Promote DeCA as Nutritional Leader Partnership with DoD Partnership with TRICARE  DoD Nutrition Committee “Ask a Dietitian” on www.commissaries.com  “ Its Your Choice, Make It Healthy” Campaign Regional commercial grocer application

12. 12  Workforce of the Future Critical strategic element  Implement a more productive, flexible store level workforce  Better serves needs of all stakeholders  More viable in a competitive sourcing environment Status  Initial briefing provided to 38 stores as of June 1, 2007  Implementation on target for 53 stores – FY 2007  All Hawaii stores; Grand Forks, ND; and Smokey Point, WA have received comprehensive WOF training  Workforce of the Future Critical strategic element  Implement a more productive, flexible store level workforce  Better serves needs of all stakeholders  More viable in a competitive sourcing environment Status  Initial briefing provided to 38 stores as of June 1, 2007  Implementation on target for 53 stores – FY 2007  All Hawaii stores; Grand Forks, ND; and Smokey Point, WA have received comprehensive WOF training

13. 13  Commissary Advanced Resale Transaction System (CARTS) On track to deploy CARTS at all commissaries by May 2008 CONUS operational testing & evaluation initiated February 23, 2007  Engaged in testing at Fort Lewis, WA; McClellan, CA; Lackland, TX; Fort McCoy, WI; San Diego, CA; Harrison Village, IN OCONUS operational testing & evaluation initiated May 16  Engaged in testing at Vogelweh, GE  Commissary Advanced Resale Transaction System (CARTS) On track to deploy CARTS at all commissaries by May 2008 CONUS operational testing & evaluation initiated February 23, 2007  Engaged in testing at Fort Lewis, WA; McClellan, CA; Lackland, TX; Fort McCoy, WI; San Diego, CA; Harrison Village, IN OCONUS operational testing & evaluation initiated May 16  Engaged in testing at Vogelweh, GE

14. 14  DeCA Enterprise Business System – Replaces legacy business applications Cataloging Receiving Ordering Inventory Management Milestone A approval on target – 4th quarter FY 2007 Projected Milestone B approval & software contract award – 3rd quarter FY 2008 Projected Initial Operating Capability – FY 2011  DeCA Enterprise Business System – Replaces legacy business applications Cataloging Receiving Ordering Inventory Management Milestone A approval on target – 4th quarter FY 2007 Projected Milestone B approval & software contract award – 3rd quarter FY 2008 Projected Initial Operating Capability – FY 2011

15. 15  Individualized Shopping Experience Creating a sense of community Exciting shopping experience Brand name recognition High coupon usage Pantry loading or grab & go  Individualized Shopping Experience Creating a sense of community Exciting shopping experience Brand name recognition High coupon usage Pantry loading or grab & go

16. 16  Cooperative alliances with key business partners  Effective use of technology  Individualized shopping experience  Enhance use of shopper data  Deliver premier shopping experience  Cooperative alliances with key business partners  Effective use of technology  Individualized shopping experience  Enhance use of shopper data  Deliver premier shopping experience

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