ALA Conference/Food Show Honolulu, Hawaii Mr. Philip E. Sakowitz, Jr., Director and CEO August 21, 2009

2 Savings + Service Service+ Foot Traffic Foot Traffic= Sales

3 Updated savings figures for commissary shoppers based on October 2008 USDA figures for retail grocery store food purchases consumed at home: X 31.1% average savings = – FAMILY of FOUR saves nearly $3,400 annually – FAMILY of THREE saves more than $2,600 annually – A COUPLE saves more than $2,100 annually – SINGLES saves nearly $1,200 annually

4 Commissary Customer Satisfaction Index (CCSS) – Patron Satisfaction 4.61 (out of 5.0) American Customer Satisfaction Index (ACSI) – National average for commercial grocers: 76 – DeCA’s score: 76 FDA Recalls – Above average for commercial grocers Sustain Customer Savings – Benefit Value – Mandate: 30% – Actual: 31.1%

5 Contract provides customized world class customer service training to all DeCA employees 1 st Corporate training program ever Dale Carnegie Training will provide training – 648 Classes – Some classes will be bi-lingual as needed – Training dates: Aug 1 – Sep 30, 09 Consistent with our Agency goals of providing great customer service Builds on our strength of customer service Good for the Customers and Good for the Employees – Significant for employees education and training

6 Location TypeDate Richards-Gebaur, MO NewJan. 27, 2009 New Orleans, LA Interim store March 31, 2009 Saratoga Springs, NY NewApril 14, 2009 Dyess AFB, TX Re-openingApril 21, 2009 Robins AFB, GA NewMay 28, 2009 Livorno/Camp Darby, Italy NewJune 5, 2009 Fort Drum, NY Re-openingJune 30, 2009

77 FYLocation Grand Opening 2007Chievres, Belgium Oct New Orleans, LA Oct Eglin, FL Dec Fort Bliss, TX (BRAC) Jul Fort Riley, KS (MILCON) May Moody, GA Jul Quantico, VA Aug Fort Campbell, KY Oct 2011

8 Area Customer Transactions Percent Change East40.1M+ 1.5% Europe10.8M- 1.2% West42.0M+ 2.5% Total92.9M+ 1.6%

9 Area Customer Transactions Percent Change East34.8M+ 1.86% Europe9.5M+ 3.79% West36.2M+ 1.12% Total80.6M+ 1.75% Data current thru Aug 9, 2009

10 Area Dollar Sales Percent Change East$2.7B+ 4.8% Europe$487M+ 2.7% West$2.6B+ 5.6% Total$5.8B+ 5.0%

11 AreaDollar Sales Percent Change East$2.4B+ 4.2% Europe$393M+ 4.5% West$2.3B+ 2.9% Total$5.8B+ 3.66% Data current thru Aug 9, 2009

12 DeCA Has Improved Loyalty Among Their shoppers Compared to 2007, and WMSC Has Slightly Declined DeCA 2008 Annual State of the Business Source: Nielsen Homescan 2008 Cross Outlet Facts DeCA 2008 Annual State of the Business Source: Nielsen Homescan 2008 Cross Outlet Facts

13 Guard and Reserve On-Site Sales Business Transformation Corporate Communications Outreach Efforts Partnerships/ Cooperative Efforts Workforce Development Commissary Construction/ Build to Lease Initiatives Going Greener

14 42% Subscribe to an RSS feed Title Social Media 85% Have watched video clips 65% Have uploaded photos 59% Have joined a social network 79% Of active users have read a blog 55% Have started their own blog

15 Your Text here Increased Focus on the Commissary Benefit Awareness –Army Wives Talk Radio –Operation Homefront Accolades Received “Thank you for having the man on from the commissary (Mr. Sakowitz). I have been married 10 months and I am 4 months pregnant. My husband and I have been looking for ways to cut back In our expenses in anticipation of the baby's arrival. Neither me or Eric knew you could save so much at the commissary. I remember you said on the air that you are the coupon queen but I didn't know that you used them at the commissary.” “I went shopping last night at the commissary. WOW! I took my coupons, my shopping list and when I got home I had saved $14 in coupons and my total bill was $46 dollars less than Safeway! That is $92 a month we could have been saving all along! There should be a big billboard on every base!”

16 FY 2008: 104 on-site sales generated – $4.5M in sales – 41,347 Guard & Reserve customers FY 2009: 169 on-site sales scheduled (150 goal) – 136 events have been accomplished – $ 7.7M in sales – 71,107 Guard & Reserve customers Data current thru Aug 9, 2009

17 Conducted survey to identify stocking issues –Focused on 33 top manufacturers –Targeted 3 Groups 1.Less than 10% support 2.Between 10 & 20% support 3.Over 20% support DeCA provided survey results to buyers/category managers –Use vendor stocking information as part of buying/item selection process –Increase emphasis on manufactures responsibility –Scheduled future surveys to measure support changes Anyone over 20% will be required to meet with the Director on a plan of action to improve support

18 Your Text here Working in partnership with Industry –Conduct meaningful dialogue and interchange of best business practices and processes –Synergistic effort builds supply chain alliances and provides vehicle for developing collaborative innovations Developing Industry Interchange Training Program –Excellence through integration of government/commercial processes to drive new business models –Facilitates integrated multidisciplinary training opportunities across core functional areas with international companies –Key element of our Talent Development Program 10 Industry Partners; 6–12 month assignments

19 Production & Distribution of “How to Conduct a Commissary Tour” DVD – Distribute DVD to DeCA regions, military and civilian dietitians Continue to work with the DoD Nutrition Environment Enhancement Team for health promotion and promotion of the benefit. Target dietitians in the War College – Outreach about the benefit and health promotion – The Navy Health Promotion Course – The Air Force Health and Wellness Centers Kit will be available on

20 DeCA is a Federal partner in promoting USDA’s initiative to DoD community DeCA and its industry partners to promote healthier eating habits in commissaries Children, military members, seniors targeted for reminders on healthy eating options

21 OMB Memo, June 11, 2009, Planning for the President’s FY 2011 Budget and Performance Plan Administration’s Goal: Build a transparent, high- performance government capable of addressing the challenges of the 21 st century. Four deliverables from federal agencies: 1.Identification of limited number of high-priority performance goals 2.Submission of the FY 2011 Budget 3.Steps to reform agency hiring processes 4.Steps to improve employee satisfaction and wellness

22 Audited Opinion of Financial Statements – Clean Audit Opinion — 7th straight year Internal Controls over Financial Reporting – In Top three in DoD for FY 2008 Statement of Assurance for Internal Controls Commercial Services Mgt (formerly Competitive Sourcing) – "The Omnibus Appropriation Act prohibits funding A-76 during FY 2009." Constant Dollar Decline!

23 FY 2000 Constant Dollars ($M)

24 The Economy Competition DOD Budget Scrutiny Relevance

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