18 May 071DeCA/EU-CC "Gentlemen, we are going to relentlessly chase perfection, knowing full well we will not catch it, because nothing is perfect. But we are going to relentlessly chase it, because in the process we will catch excellence. I am not remotely interested in just being good." - Vince Lombardi

DeCA/EU-CC 18 May 072 Defense Commissary Agency, Europe DeCA/EU-CC Performance with Purpose Thomas E. Milks Region Director THE COMMISSARY … It's Worth The Trip!

18 May 073DeCA/EU-CC Current Major Projects Note: There will be enlarged departments throughout

18 May 074DeCA/EU-CC Sustainment Projects

18 May 075DeCA/EU-CC LOCATIONLAST DAY Würzburg8 August 2008 Darmstadt8 August 2008 Hanau15 August 2008 Idar-Oberstein23 August 2008 Dexheim23 August 2008 Projected Store Closures

18 May 076DeCA/EU-CC Customer Breakout* Sponsor StatusActive DutyRetiredOther DeCA Europe65%15.3%19.2% ** DeCA East/West**36.7%56.7%2.9% Family SizeOneTwoThree DeCA Europe12.5%25.2%25.8% DeCA East/West9.1%34.5%22.4% Sponsor Age DeCA Europe13.9%27.8%29.4% DeCA East/West6.9%14%19.3% * *Source: Commissary Customer Service Survey (CCSS) ** **CONUS regions combined

18 May 077DeCA/EU-CC

18 May 078DeCA/EU-CC Virtual Commissary Process Customer WEB Virtual Store DeCA Europe Distribution Center Customer Service Cell MPS Satisfied Customer Order Receipt Picking Packing Shipping Billing Replenishment/Case orders Bench Stock Fill Customer Case Orders DeCA Europe Down Range Concept

18 May 079DeCA/EU-CC DeCA Europe Down Range Concept Reach those customers w/o convenient access to existing commissary facilities Distribution center operated by DeCA Europe IAW postal regulations Nonperishable commissary items –Rollout in increments –Start with 500 items

18 May 0710DeCA/EU-CC DeCA Europe Down Range Concept Available to specified authorized locations –APO ship-to-addresses Customer authorization verified through DEERS Secure payment authorization & payment process –Credit card, debit card, Pay Pal DeCA accounting rules applied Confirmation of order completion from DeCA Europe Means for customer feedback

18 May 0711DeCA/EU-CC 8 Commissaries RAF Menwith Hill RAF Croughton RAF Fairford RAF Lakenheath RAF Mildenhall RAF Alconbury England the Netherlands Belgium Schinnen Chiévres UK Zone Beginning FY09 ZM Office

18 May 0712DeCA/EU-CC Ramstein Zone Beginning FY09 Germany 10 Commissaries Neubrücke Baumholder Ramstein Sembach Vogelweh Mannheim Heidelberg Spangdahlem Bitburg Wiesbaden ZM Office

18 May 0713DeCA/EU-CC Bavaria Zone Beginning FY09 Germany 11 Commissaries Schweinfurt Bamberg Grafenwöhr Vilseck Ansbach Hohenfels Illesheim Kelley Barracks Patch Barracks Panzer Kaserne Garmisch ZM Office New Name

18 May 0714DeCA/EU-CC Med Zone Beginning FY09 Italy Turkey Egypt Saudi Arabia Spain 13 Commissaries Aviano Vicenza Livorno Naples Rota Ankara Incirlik Izmir Cairo Riyadh ZM Office Portugal the Azores (Terceira Island) Lajes Field Sigonella Mineo

18 May 0715DeCA/EU-CC DeCA Europe Accountability 2-week course held at Region Raise professional level of store directors & administrators Coursework major topics –Manpower, T&A, payroll, funding, contracting –Brand name resale, IT systems –Accountability control processes –Financial transactions & inventories –AIMS, SAVES, VRGC, STANFINS Feedback overwhelmingly positive Certification Program

18 May 0716DeCA/EU-CC New Item Marketing Flyer sent to stores along with monthly Through the Aisles Placed in AAFES buddy list publications Sent to PA offices Placed on every DeCA/EU store web page Sent to AFN radio, Base PAs & EU media Sent as a link on all YAL responses New flyer every month

18 May 0717DeCA/EU-CC DeCA's Transformation Initiatives in Support of Army's Transformation Opened 2 new stores Nielson Cat. Mgt. Training Gift certificates Bag salads Reusable bags Natural beef Seafood Road Show Resets Club pack sale Case lot sale Display contests Created new accountability course Natural items Single serve Grab 'n Go Organics Self-help bakery cases Combined deli/bakery ops New chicken contract 150 new chill items New port for Riyadh Closed 5 stores Converted to NSPS Won OCONUS Best Large Comsy Won 13 th Annual Merchandising Award

18 May 0718DeCA/EU-CC Region Awards Program Monthly Best Themed Display Contest Large & Small Commissaries Annual Department Awards Large & Small Commissaries HQ DeCA Best Commissary Award Winners Region Quarterly Sales Increase Large & Small Commissaries Director’s Gold & Silver Awards Semiannual Large & Small Commissaries DeCA's Annual Meat & Produce Merchandising Contests DeCA's Annual Merchandising Contest Local Awards Industry Awards Baseline - Stores Meet Minimum Basic DeCA/EU Operational Principles O n e - T i m e S t o r e E v e n t s Director’s Star Performer Awards Annual Large & Small Commissaries 1st Qtr Best Store in Zone Awards 2nd Qtr Best Store in Zone Awards 3rd Qtr Best Store in Zone Awards 4th Qtr Best Store in Zone Awards

18 May 0719DeCA/EU-CC Monthly Themed Contests Stores encouraged to participate & build massive displays Monthly awards to best large & small stores Selection based on customer eye appeal, sales potential, shopping ability & attractiveness From FY-to-FY themes will vary –Examples might be –1Q - Halloween; Thanksgiving; Tie-in w/HQ DeCA promotion –2Q - Super Bowl; Valentine's Day; St. Patrick's Day –3Q - Spring Cleaning; Memorial Day; Zone Feature –4Q - Independence Day; BBQ Grill Party; Back to School In-Store Displays

18 May 0720DeCA/EU-CC Club Pack Program Target 14 commissaries –Large stores for more bang –Geographical considerations –Choose items & quantities from entire club package First one was Fantastic February Jammin' July held 26 th & 27 th Next one in January

18 May 0721DeCA/EU-CC Seafood Road Show 1 st -ever road shows in European commissaries Enjoy some "Surf & Turf"… King crab legs and claws Slipper lobster tails Tiger shrimp Atlantic salmon fillets Tilapia fillets Catfish fillets Tuna steak Bay scallops …and some “turf” too - Angus top loin roast AT GREAT $AVING$!! Up to 52%!! Ramstein √ June Patch Barracks √ July 5-6 Heidelberg √ July Grafenwöhr √ August 2-3 WiesbadenAugust VogelwehAugust RAF LakenheathOctober 4-5 AvianoOctober Very well received – Great success

18 May 0722DeCA/EU-CC Case Lot Sale 30 stores selected for May 2008 case lot –Geographical location considerations –Concentrated effort in these stores 92 items –Sold 79K cases –Almost 18K more cases than May 2007 Next case lot in September with same 30 stores Results

18 May 0723DeCA/EU-CC ResetsResets Completed 6 major store resets CYTD Expect 5 more by end of CY –Vilseck, Cairo, Incirlik, Ankara & Sembach Impact on sales positive –E.g. –Aviano reset sales up $185K 3-week period after reset vs. '07 –Mannheim up $62K for 2 weeks after vs. '07 –Kelley up $12K for 1 st week after vs. '07 Store category plan-o-gram implementation policy –Applies to C & D stores –Live set plan-o-grams posted to Public Folders –SD has 30 days to complete at store level –DeCA/EU plan-o-grams based on DeCA/EU register movement

18 May 0724DeCA/EU-CC Reusable Bags Savvy Saver green bag sales –Units 154K –$107.5K Keep Cool thermal bag sales –Units 17K –$25.5K White plastic bag & brown paper bag usage –As measured from CDC to stores –Average use is trending down Nov 07 thru Jun 08 GO GREEN - DeCA IS COUNTING ON YOU

18 May 0725DeCA/EU-CC Sales Analysis Grocery Dry +3.15% Chill +6.90% Freeze -1.29% Deli +0.27% Bakery +6.01% Seafood % Fresh Chicken Contract -7.31% Sodas (AAFES) -8.97% Produce Bag Salads +1.91% Plants % Meat Value Added $2.2M (Oct 07 to Jun 08) Natural $332K (Mar 08 to Jun 08) Pork +11.5% FYTD Jun 08 vs. '07

18 May 0726DeCA/EU-CC DeCA Europe FY08 Sales Sales In $M Note: 7.3% over target YTD

18 May 0727DeCA/EU-CC THE COMMISSARY … It's Worth The Trip!