Asset Protection Update North Pacific ZLC August 18, 2016

Topics NBLC Audit Sub-Committee Work Current Trends in Asset Protection CSA Investments in AP Tests in Progress 2

NBLC Audit Sub Committee 3 Audit Sub Committee focus areas: –Audit Event Execution Improved consistency in procedure execution –4400 audit evaluations completed –RGIS execution of Account Procedures improvement (80% to 92%) –Store engagement in audit event improvement (74% to 85%) Introduction of random SKU verification (RMV) –Available in all Markets –RGIS offering at beginning of audit events –On-going training provided at RI meetings and AP Open Houses

–Variance Reporting Live in all BT Markets –Audit notification enhancement 3 advance notifications –45 day with Audit Overview –15 day with link to prep guide –2 day reminder –Multiple Franchisee schedule option (3+ option) Enrolled Franchisees provided to RGIS RGIS working to accommodate requests in Q3 / Q4 schedules 103/453 Franchisees have opted “in” (23%) 4 NBLC Audit Sub Committee

–Pilots Alternative audit provider –WIS test - Markets 2360 / 2367 –Test for two audit cycles –Q2 audits – first cycle of audits Hybrid audit service approach –Market 2366 (San Francisco) –Test timeline: June 1 – August 31 ETA Focus –Analysis of ETA impact on audit event –Procedures on how to manage inactive/discontinued items –Monitoring shortage and other concerns 5 NBLC Audit Sub Committee

Crime Update Since 2013, the retail industry has experienced a significant increase in criminal activity. Homicides and shootings across the US increased in This results in fewer law enforcement resources being dedicated to investigating & resolving the majority of crimes that occur on our property. These trends have directly impacted 7-Eleven © Copyright 7-Eleven, Inc. – Confidential and Proprietary Some police officials have suggested that a so-called “Ferguson effect” has resulted from heightened criticism of police. That criticism, according to the theory, has caused officers to be less aggressive and leave their patrol cars less, giving violent criminals more freedom to operate.

Where’s the increase? Why? Cigarettes have been targeted and have led to more organized robberies, thefts and flash mobs 7-Eleven’s move into more urban areas Our stores are open 24/7 Though improved from 2015, cash levels in registers remains outside of recommendations –$166 average cash loss per robbery YTD in 2016 Loitering & panhandling –Becoming a major issue for image & customer experience Better visibility to incidents –Google Alerts, Social Media, Law Enforcement Partnerships Better reporting by stores to the AP Hotline © Copyright 7-Eleven, Inc. – Confidential and Proprietary

Investments 2011 –65% of stores had VCRs 2012 –Purchased 4000 ClickIt DVRs –Purchased other AP Analysis Tools –Improved Case Management Process 2013 –Networked DigiOp DVRs –Increased investment in AP Team Headcount 2014 –Implemented a Law Enforcement Partnership program Letter Campaign Dedicated Resources 2015 –Upgraded 600 safes that were not compatible –Purchased RiskPulse for store monitoring 2016 –New HD 360 cameras –ClickIt Video Wall –AP Alerts & Critical Incidents –Social Media Monitoring © Copyright 7-Eleven, Inc. – Confidential and Proprietary

Law Enforcement Partnerships –100+ requests per month –545 agencies supported Operation Chill –950+ agencies provided with over 1.5 million coupons in 2016 National Night Out CrimeStoppers Organized Retail Crime Associations Franchisee Support © Copyright 7-Eleven, Inc. – Confidential and Proprietary

Cigarette GPS Trackers Newport cigarette packs installed with GPS units Deployed to combat robberies & thefts involving cigarettes Currently deployed in Greater LA & Liberty Zones. © Copyright 7-Eleven, Inc. – Confidential and Proprietary Used with multiple retailers to resolve pharmacy robberies 90% apprehension rate when a device is activated

Merchandise Protection © Copyright 7-Eleven, Inc. – Confidential and Proprietary