Leveraging Technology to Solve Retail Asset Protection Challenges Mark Stinde- Sr. Director, Asset Protection January 3, 2012

Session Agenda Overview of 7-Eleven Asset Protection Challenges at 7-Eleven In-Flight Technology Solutions for Asset Protection Integration of Solutions to Maximize Systems Building Infrastructure that Supports both the Current and Future Needs of the Business Questions

3 7-Eleven – World’s Largest Convenience Retailer 40,000 Stores Worldwide Operating in 16 Countries Worldwide Revenue $62.5 Billion Over 7,000 Stores U.S. and Canada Predominately Franchised

Asset Protection- Overview 2010 Strengths Robbery Prevention Programs Response to theft and fraud Incident Management/Loss Recovery Opportunities Reactive versus Proactive Event Driven Respond and Report Limited Technology Data Mining inefficient and ineffective Case Management non-existent Significant theft, fraud in the stores Safety/Risk Management Limited resources in Asset Protection Transition from Corporate to Franchise Respond and Report Critical Incidents Theft and Fraud Focus Reactive Approach SME on all areas of Asset Protection Business Leaders Strong Business Acumen Leveraging Technology and Data Proactive Approach CurrentBest in Class

Revenue/ Profit Assurance Inventory Variation Control Incidents and Investigations Safety and AP Awareness Asset Protection Team Asset Protection Core Strategy

7-Eleven Franchise System- Partnership Franchisee Initial Franchise Fee Labor Expenses Payroll Workers Compensation Insurance Maintenance (Some) Inventory Shortage 7-Eleven Own the location or hold the lease Responsible for most of the occupancy costs Utilities Maintenance Expense (Most) General Liability Expense Marketing/Brand Finance Inventory Shared Merchandise Write-offs Gross Profit *** Franchisee can purchase up to 15% of their merchandise from Non-Recommended Vendor

Talent Investment Investigations Field AP Specialists Exception Based Reporting Exception Reporting Fraud Management System Integration Case Management System Case Management “Cradle to Grave” Resolution Asset Recovery System Integration Networked In-Store Video DVR Technology in all Stores Networked for Remote Access System Integration The utilization of Video Analytics In Flight Technology Solutions

1) Transaction activity captured in the POS T-Log is sent from the store’s ISP to the HP Data Center. 2) The POS T-Log is captured in an unedited form and sent along with other data feeds (21 in total) to the “Secure” Exception Based Reporting tool. Some feeds are also sent to APIS. 3) The “Secure” EBR tool (SaaS) collects data & flags potential fraud or other risk conditions based on the criteria established by the AP team. 4) The video is networked at the store and is called up for exceptions identified in the Secure Tool. Video evidence can be stored in either Secure or APIS as digital evidence. 5) When a condition of concern is identified a ticket is logged in the Case Management tool (SaaS) with the associated data from the EBR tool. 6) The Asset Protection Field Manager accesses both systems via the web and manages the investigation information and results. The Asset Protection System Data Center Asset Protection Team

Investigators have an overview of system activity, quick links to reports and system configuration The portal is customized for each user’s or role requirements The Secure Portal

Secure Questions Automated queries are created to monitor specific fraud risk areas are saved in the system to process data

Secure Investigations Results of Saved questions are fed into the Investigation Center where investigators can review suspect transactions

Secure Transaction Viewer Transaction viewer will have access to details such as: Receipt View Tlog Audit View Store Sequence CCTV footage Users can drill into the investigation results to see the details of specific transactions which have been flagged by the system.

Infrastructure to Support the Future In considering all of our technology solutions, we are balancing our current needs with those of the future. How flexible is the solution, and can it accommodate future needs? Is the provider committed to further development of their solution? Can the solution continue to support our needs as we grow in store count and scale? Can the solution easily integrate with other solutions that are currently in place or may be added?

Front Door Path Analysis

Front Door Pay & Leave

Arlington Advanced ATM Path

Arlington - People Count

Questions