222 Military Readiness –Peace of Mind: focus on mission –Recruitment: family member advocacy –Retention: Service Members rate commissary among their top quality of life services Quality of Life –Savings: family of four saves over $4,400 per year 2 to 1 return on investment –Ancillary Industry Support: contributions to Installations, giveaways, scholarships, income opportunities –Military Related Employment: 62.5% of U.S. employees Favorable Impact on DoD Costs –Defense Transportation System: a leading peacetime shipper of military goods overseas –Cost of Living Allowance: adjusted for commissary benefit

33 Resale Trends FY 2010FY 2009Change% Change Sales$5.84B$5.98B-$136.3M-2.28% Transactions94.79M94.75M0.04M0.04% Basket Size$61.66$63.12-$ % Over $2.69B in Patron Savings Generated!

44 FY 2010 Sales, although down from FY 2009, were still very strong compared to recent history!

55 SalesFY 2010FY 2009Change% Change DECA EAST $ 2,736,306,661 $ 2,825,532,761-$89,226, % DECA EUROPE $ 506,351,602 $ 504,642,025$1,709, % DECA WEST $ 2,601,982,814 $ 2,650,755,360-$48,772, % DeCA Total $ 5,844,641,077 $ 5,980,930,146-$136,289, % TransactionsFY 2010FY 2009Change% Change DECA EAST 40,465,344 40,948,540 (483,196)-1.18% DECA EUROPE 11,333,044 11,233,242 99, % DECA WEST 42,993,490 42,571, , % DeCA Total 94,791,878 94,752,868 39, % Transactions Remained Stable

66666 FY Overall Patron Savings more than $9M FY 2008 to FY 2009 Comparison – Sales increased 105% – Customer count increased 100% – Average customer basket size increased to over $110 FY 2010 Business – Completed 156 events totaling more than $8.3M in sales – Average customer basket size has increased to nearly $125 Served more than 192K since start of program

77 Commissary Customer Satisfaction Index (CCSS) – Patron Satisfaction – 4.68 (out of 5.0) American Customer Satisfaction Index (ACSI) – National average for commercial grocers: 76 – DeCA’s score: 80 Customer Service at All Time High!

888 Military spouses & family members = 42% –Military spouses – 4,385 or 28% –Other family members – 2,138 or 14% Sponsors = 11.5% –Retirees – 1,632 or 10% –Guard and Reserve – 239 or 1.5% Other veterans = 1,500 or 9% 9,894 U.S. Employees are Military Related Total 62.5%

99 Keesler AFB, MS Chievres AB, BE

10 Eglin AFB, Fla. Moody AFB, Ga. Fort Riley, Kan. NAS-JRB, New Orleans, La. Fort Campbell, Ky. Fort Bliss, Texas

11 Gift of Groceries Turn key gift card program –Effective January 15, 2011 Replace existing paper voucher program Available in two denominations –$25.00 and $50.00 Purchase at store or through Internet Reduced labor and costs through technology

12 Loyalty card in source selection process Evaluations being conducted based on information received as result of solicitation Goal: 3rd Quarter FY 2011

13 Participation rate has increased 60% in the last year Notice to the Trade 10-59, Brand Name Resale Swell Allowance Program POC: Marye Carr – , extension

14 Company Bank Account Review and Approve Entry into CARTS CARTS System Sales Rep Company Credit Card Acct Company SEBBS Mgr Company Unit Mgr Company Business Mgr Company A/P Admin to Company Company

15 Facebook page –Interactive medium –7,740-plus fans –More than 4,000 hits per month DeCA Twitter/DeCA Dietitian Twitter –Connected to Facebook posts –380 and 2,340 respectively DeCA You Tube –Video recordings DeCA FLICKR page –Still photos and video recordings

16 DeCA Radio Shows Future campaigns tied to promotion calendar Customer appreciation campaign “Your Family is Our Family” Shop After Work campaign Great Inside-the-Gate campaign –Promoting the base/post as a place of savings, value, activities, and fun

17 Over past three decades childhood obesity rates in America have tripled Nearly one in three children are overweight or obese – greater risk for health problems National security is at risk More than one quarter Americans ages are unqualified for military service because too heavy Several key military leaders are raising awareness and calling for action “Obesity is a Critical Long-term Challenge for the Nation”

18 First Lady launched Let’s Move! Campaign in February 2010 –Centered on ambitious goal to solve the problem of childhood obesity President created Childhood Obesity Task Force –Charged to develop national action plan to address public health crisis –Report released in May 2010, detailing over 70 recommendations Goal: To Solve the Problem of Childhood Obesity

19 Commissaries provide a unique opportunity to support these initiatives Empower parents to make healthier choices –Product placement highlighting healthy choices –Education at point of purchase –Healthy recipes –Offer healthy choices at check-out lanes Increase demand for fruits, vegetables, and reformulated products with less sugar, salt, trans and saturated fats Great Opportunity to Support “Lets Move!” Campaign

20 Expand “Food for Thought” program –Partnership with DoDEA, currently in Europe schools –Nutrition curriculum that includes commissary connection component Commissary “Lets Move!” healthy kid events Month of Military Child (April) –Develop healthy life-long eating habits National Fitness Month/Family Fun Fitness Festival (May) − Case lot sale, partnering with MWR and exchanges

21 Lewis-Main Commissary “Lets Move!” Healthy Kid Event

22 Military Resale (Exchanges) Morale Welfare & Recreation Private Organizations Installation Chaplains DeCA Patron Council Defense School System Scholarships for Military Children Industry

23 *Savings from BRAC & OCONUS CFE are not included in above Efficiencies FY92 – FY10: $692M Inflation FY92 – FY10: $759M Baseline had no efficiencies been achieved Actual Costs w/Reductions Cost (FY 1992 Constant $)

24 Shifting overhead costs to force structure and future modernization Inviting outside experts to suggest ways the Department can be more efficient – Defense Business Board Front-End Assessments – FY 2012 Budget Reduce excess and duplication across the defense enterprise – Organizational Assessments and Zero-Based Reviews Moving Toward More Efficient, Effective, Cost-Conscious Way of Doing Business

25 FY 2011 budget in flux Continuing Resolution Authority – 64 days (December 3) No new initiatives until budget approved Phase III of Organizational Assessment due October 29

26 One Vision, One Team, One DeCA We have Passion for what we do! P We PURSUE EXCELLENCE A We are ACCOUNTABLE and FISCALLY RESPONSIBLE S We have a SENSE OF URGENCY S We SET HIGH STANDARDS I We value INNOVATION O We take OWNERSHIP of our PERFORMANCE N We are NECESSARY