Mr. Joseph H. Jeu DeCA Director Mr. Joseph H. Jeu DeCA Director

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Commitment to the Benefit Sound business acumen Dedicated workforce 3

4 “ Innovation is the ability to see change as an opportunity – not a threat” “Excellence is not a skill. It is an attitude.” Store Focus Collaboration Excellence in Service Entrepreneurial Spirit Innovation

5 Performance Management –Outcome Focused –Accountability –Decisions Based on Empirical Evidence –Not Business as Usual Stretch Goals Will Take Us to the Next Level

Quality of Life –Savings totaled $2.69B in FY 2010 –Ancillary Support: industry contributions to installations, give-aways, scholarship program totaling $244M –Military-Related Employment: 62.5% of DeCA workforce Industry also employees military family members Military Readiness –Peace of Mind: focus on mission vs. family/sense of community –Recruitment: family member advocacy –Retention: GAO Report NSIAD Cost Avoidance –Defense Transportation System: a leading peacetime shipper of military goods overseas –Cost of Living Allowance: reduced for commissary presence Emergency Support 6

FY 2010 –Events: 156 –Sales: $8.68 Million –Savings: $4.0 Million –Patrons served: 70,244 YTD FY 2011 –Events: 103 –Sales: $6.07 Million –Savings: $2.81 Million –Patrons served: 44,186 Providing the Benefit On-Site to Our Guard & Reserve 7

Current savings figures for commissary shoppers – FAMILY of FOUR can save over $4,476 – FAMILY of THREE can save nearly $3,494 – A COUPLE can save over $2,827 – SINGLE can save over $1,542 Your Commissary – It’s Worth the Trip! 8

9 Thank you! Partnerships – Win/Win –Growing Business –Pricing Mature Business –Evolving –Manufacturers Welcome Suggestions

Suspends the exemption allowed on sales to Federal Government –Assesses 4% tax Allowed for continued exemption if contract prohibits passing of tax –DeCA Hawaii based contracts amended It is the vendor’s responsibility to determine it’s liability for the tax

11 Commissary Customer Service Survey (CCSS) – Patron Satisfaction – 4.68 (out of 5.0) American Customer Satisfaction Index (ACSI) – ACSI Supermarket Industry Average: 75 – DeCA’s ACSI: 80 Customer Service at All Time High!

12 * DeCA sales data based on CY 2010 data for U.S. stores (including Puerto Rico) over $2 million in CY 2010 (176 Commissaries) to compare with industry ** Savings % used was the 2010 DeCA U.S. (50 State) savings of 29.9% after tax and surcharge. This % is applicable to U.S. data as used in these computations. Overall 2010 DeCA Worldwide savings after tax and surcharge was 31.5% ***Supermarket data from Food Marketing Institute (FMI) Web site (Supermarket Facts - Figures - Industry Overview) MeasureDeCA Actual* DeCA** Adjusted for DeCA Savings Supermarket*** Weekly Sales/Square Foot$16.96$24.18$11.78 Weekly Sales$542,576$773,620$466,011 Customer Purchase$64.87$92.49$26.78 Square Feet/Store31,996 46,000 Sales$4.966B$7.081B$ B DeCA Compares Well with Leading Supermarket Chains!

Total 62.5% 13 Military Spouses – 4,254 or 27.3% Dependents – 1,970 or 12.6% Sponsors: – Retirees – 1,648 or 10.6% – Guard and Reserve – 268 or 1.7% Other Veterans – 1,602 or 10.3% *Population – DeCA U.S. Civilian Employees – 15,579

“Unqualified” opinion of financial statements for 9th straight year!“Unqualified” opinion of financial statements for 9th straight year! Tied for first place along with DLA and SOCOM for FY 2010 Statement of AssuranceTied for first place along with DLA and SOCOM for FY 2010 Statement of Assurance Designated as DoD “Gold Standard” for Managers’ Internal Control ProgramDesignated as DoD “Gold Standard” for Managers’ Internal Control Program Great Stewards of Taxpayer Dollars! 14

15 Turn key gift card program –Rolled out program June 29, 2011 –Fort Bliss Commissary Grand Opening Available in two denominations –$25.00 and $50.00 Purchase at store or via Internet Replaced paper voucher program –No longer available for sale –Redeemable through August 2016

16 Background: –DeCA selected Inmar, Inc. as the provider of the rewards card – Negotiations are ongoing Benefits: –Program will allow savings via digital coupons as a new medium –Reduces fraudulent coupons –Reduces redemption errors –Reduces packing and shipping of coupons Moving forward: –To participate, Industry must partner directly with Inmar, Inc. – Estimated program deployment: 1 st Quarter FY 2012 – Program name – “Commissary Rewards Card”

17 Commissary Connection –More than 33,500 subscribers Facebook –Interactive medium with over 10,060 fans –Averaging 500,000 views per month Guard & Reserve Sales Schedule Newsletter –More than 2,100 subscribers YouTube Flickr Radio Social Media Presence Supplements Print, Broadcast, and Internet Media for Greater Audience Reach Increasing DeCA’s Reach in a Short Time!

18 Future campaigns tied to promotion calendar “Your Family is Our Family” customer appreciation campaign “Shop After Work” campaign “Great Inside the Gate” campaign Commissary Commando competition

Eglin AFB, FL Moody AFB, GA Fort Riley, KS NAS-JRB, New Orleans, LA Fort Campbell, KY Fort Bliss, TX 19

Energy –0.4% annual reduction FY 2010 (4.2% cost increase) –Expect 0.5% in FY 2011 –Implementing additional projects to meet FY 2015 goal Water –17.6% reduction from FY 2007 baseline (FY 2011 Goal 8%) Waste Management –Cardboard recycling (FY 2010: 53,004 tons/FY 2011 goal 56,613) –FY 2010 Surcharge revenue $5 million/DWCF cost avoidance $62,876 High Performance Sustainable Buildings –Designing to LEED standards Environmental Management System certified as conformant with ISO DeCA initiatives resulted in two awards presented in October, 2010 –Federal Electronics Challenge Bronze level –Federal Energy and Water Management Award 20

Why restructure now? –Secretary Gates’ memorandums directing reduction of overhead costs –Directed budget reductions –Known duplication of work activities above store level –Impact of Global Transformation to serviced population –Continued impact of automation and growing complexity on mission 21

* Denotes SES position (6) *CHIEF OPERATING OFFICER/ DEPUTY DIRECTOR *DIRECTOR DeCA WEST (MCCLELLAN, CA) ZONES (12) STORES *DIRECTOR DeCA EUROPE (KAPAUN AS, GE) ZONES (4) STORES *DIRECTOR DeCA EAST (FORT LEE, VA) ZONES (11) STORES HEADQUARTERS SUPPORT OFFICE *DIRECTOR/ CHIEF EXECUTIVE OFFICER *CHIEF OF STAFF OFFICE OF THE GENERAL COUNSEL INFORMATION TECHNOLOGY DIRECTORATE RESOURCE MANAGEMENT DIRECTORATE HUMAN RESOURCES DIRECTORATE PERFORMANCE & POLICY DIRECTORATE CORPORATE PLANNING DIRECTORATE CORPORATE COMMUNICATIONS DIRECTORATE SALES DIRECTORATE PUBLIC HEALTH & SAFETY DIRECTORATE OFFICE OF THE INSPECTOR GENERAL OFFICE OF INTERNAL AUDIT DeCA WASHINGTON OFFICE CSM/SEA CONTRACTING DIRECTORATE EEO DIRECTORATE WORKFORCE DEVELOPMENT DIRECTORATE As of FY 2010 Total 14,681 civilian auth FTEs (includes US Direct Hires and Foreign National Direct and Indirect Hires) Total 5 military authorized billets Current Organizational Chart

Director / Chief Executive Officer Deputy / Chief Operating Officer Executive Director Store Operations Executive Director Sales, Marketing & Policy Executive Director Logistics and Engineering Executive Director Business Enterprise Requirements and Strategic Integration Resource Management Human Resources Information Technology Engineering Logistics Sales Store Support Health & Safety General Counsel Washington Office CONUS and OCONUS Stores Senior Enlisted Advisor Inspector General/Security Acquisition Management Operations & Policy Resale Contracting EEO Executive Services Division Internal Audit Corporate Planning CDC and CMPP Corporate Communications Green blocks - assets located at Ft Lee & geographically dispersed Yellow blocks - ALL assets geographically dispersed Blue blocks - ALL assets at Fort Lee

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