1. The Army and Air Force Exchange Service Presented by Ana Middleton Executive Vice President and Chief Merchandising Officer We go where you go to improve the quality of your lives through goods and services we provide

2. Reposition The Main Store- Randolph

3. Ft. Hood- The Beacon Model Beauty Redefined

4. Ft. Hood-Powerzone

5. Ft. Hood-Chef Shop

6. Be Fit

7. Operation BeFit Supporting Readiness

8. Grow The Express Exchange Extra App

9. Supply Chain Optimization & Vendor Collaboration McLane’s Candy Pilot began in August Vendor Collaboration Distilled Spirits in Europe Dynamic Replenishment Having the optimal amount of stock on hand in a given location to capture all sales between replenishment cycles Economic Order Quantity The optimal quantity of orders that minimizes total variable costs required to order and hold inventory

10. Family Serving Family Disney’s Jedi Academy 12 events in 2015 Over 3,000 graduates 8 more events scheduled

11. Strength & Beauty Events In-store events combine skincare and beauty brands Specialists conduct makeovers to engage customers Generate an average 150% sales increase

12. Transform the Online Experience Home Page Experiential Landing Pages Product Page Detail Filtering and Left Navigation

13. Improve the Customer Experience Intensify National BrandsImprove Online FulfillmentEnhance Call Center Operations Improve Assortment Brand Initiative 3 rd Party Logistics Future Fulfillment from Store Improved Operational Efficiency & Reduced Costs

14. Results Year to Date Results to Date +13.1%

15. Improvements in Assortment/Customer Response Expanding Assortment for Broader Demographic Appeal National BrandsItem Options Michael Kors Ralph Lauren Ellen Tracy Calvin Klein Samsung GoPro Apple Bose More Colors Plus Sizes/Big and Tall

16. Thank You