1 DeCA Update Mr. Philip E. Sakowitz, Jr. Director & CEO, DeCA

2 Agenda Who is Phil Sakowitz? Priorities Issues/Initiatives

3 Who Is Phil Sakowitz? Balance is Key –Self –Family –Work

4 Priorities DeCA Family Customers Strategic Planning Financial Stewardship Business Transformation

5 Issues/Initiatives “Survival” Challenge –Finance –Strategic Communications Installation Access Infrastructure Technology Partnership

6 Together, We Will Meet Every Challenge! DoD Budget Scrutiny Change in Administration The Economy Competition Relevance The Relentless Pursuit of Excellence The Relentless Pursuit of Excellence The Future…

7 The Commissary--- It’s Worth The Trip!

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9 Sales YTD through June: $4.320B (+ $178M) (+4.26%) 2008 Sales projection: $ 5.76B Costs 2008 Goal: $ B Actual (through June): $924.0M (72.9% execution) Patron Satisfaction 4.60 (out of 5.0) American Customer Satisfaction Index National average for commercial grocers: 76 DeCA’s score: 77 Benefit Value Target: 30% Actual: 31.9% Clean Audit Opinion: 6th straight year Highest score in DoD for FY 2007 Statement of Assurance for internal controls—Second year in a row Performance Metrics

10 Average weekly sales for U.S. stores with sales over $2M per year for CY 2007 –DeCA: $527, 679Retail: $294,454 Average sales growth—Identical store DeCA: 2.2% Retail: 0 Shrink percentages for CY 2007 –DeCA: -.40%Retail: Food Safety—Best in Class! Identity Theft Protection and Information Assurance—Best in Class! Leadership Development—We face the same challenges! Partnerships—Best in the business! From FMI 2008

11 Military Resale Industry / ALA DoD / Military Services − TRICARE − Military OneSource − DoDDS − Mental Health Self Assessment Program (MHSAP) Military Associations Non-profit organizations Military Exchanges Partnerships

12 Joint Communications − Customer linked to AAFES via − Mailers, weekly ads, radio, catalogs Joint Construction − Town Center Concept Joint Business Processes – Exploring and leveraging promotional affinities Partnerships: Military Exchanges

13 FY 2009 Agency Sales Goal The Sky’s the Limit!!!

14 Workforce of the Future NSPS Military family members Wounded Warrior Program Intern Program Leadership Development Employee Quality of Life Workforce of the Future NSPS Military family members Wounded Warrior Program Intern Program Leadership Development Employee Quality of Life Workforce Development

15 Listening to our customers Earth Friendly Days promotion featuring “Go Green” products – April 17-30, 2008 promotion – Coincided with Earth Day (April 22) and Arbor Day (April 25) Leveraging explosive category growth for green and organic products – tripled SKUs in the last six months Reusable grocery bags – Over 1 million DeCA imprinted non-thermal bags sold Oct 2007 to date – Over 500,000 non-imprinted thermal bags sold 2005 to date Focused on “Greener Efforts”

16 Operations—reducing our ecological footprint –Reducing utility consumption and exploring alternative fuels –Equipment, HVAC, fleet, alternative lighting and power supplies Daylight harvesting (skylights) – San Diego & Little Creek Solar Power – Los Angeles Evaluating in partnership with DOE, fiber optic lighting in closed door freezer cases and LED technology for walk-in freezer lighting – Fort Meade –Waste management program – reducing solid waste Recycled more than 20,000 tons of cardboard and 7,000 pallets since Oct 2007 Developing plastic recycling program Focused on “Greener Efforts”

17 Major undertaking to deliver benefit to G&R Industry is a key player Over 100 this year—expand to up to 400 by 2010 Activations to remain at current levels indefinitely This is the right thing to do for our customers!! Guard/Reserve Sales Status –FY 2007: Sales at 21 Guard/Reserve locations Sales were $1.63 million –FY 2008: 124 sales planned 36 completed, 48 scheduled, 40 planned but dates TBD Sales for the 36 completed sales are over $2.1 million Guard & Reserve On-Site Sales

18 Expanded Access –On-site Sales Partnership (DeCA, Industry, Installation) Success Communicate “Quality of Life” commissary benefit Hire military family members –Guard/Reserve On-site Sales System –Virtual Commissary Outreach –“Discover Your Benefit” Campaign Commissary Onsite Sales: Delivering the Benefit! Guard & Reserve On-Site Sales

19 Commissaries Coming Soon… Infrastructure

20 Project Awarded:July 2, 2007 Total Project Cost: $18.7M Overall Store: 70,233 SF Sales Area: 38,895 SF Percent Complete: 70% Replacement commissary with: DeCA standard Decor General sales area with Grab-N-Go area & Deli / Bakery Energy efficient heating and air conditioning system Heat recovery system Return air reclaims cold display case spill-over Automatic refrigeration monitoring and control system Force protection and handicap compliant Energy saving lighting and exterior windows Grand Opening: Robins AFB,GA Projected Annual Sales

21 Grand Opening: Project Awarded: Sep 25, 2007 Total Project Cost: $8.0M Overall Store: 20,277 SF Sales Area: 11,896 SF Percent Complete: 32% New commissary with: DeCA standard Decor General sales area with Grab-N-Go area Energy efficient heating and air conditioning system Heat recovery system Return air reclaims cold display case spill-over Automatic refrigeration monitoring and control system Force protection and handicap compliant Energy saving lighting and exterior windows Projected Annual Sales Richards-Gebaur, MO

22 Grand Opening: Projected Annual Sales Saratoga Springs, NY Project Awarded: Sep 28, 2007 Total Project Cost: $8.0M Overall Store: 22,047 SF Sales Area: 11,694 SF Percent Complete: 25% Replacement of Scotia commissary with: DeCA standard Decor General sales area with Home Meal Replacement area Energy efficient heating and air conditioning system Heat recovery system Return air reclaims cold display case spill-over Automatic refrigeration monitoring and control system Force protection and handicap compliant Energy saving lighting and exterior windows

23 Grand Opening: Projected Annual Sales Livorno, Italy Project Awarded:Sep 29, 2007 Total Project Cost: $10.4M Overall Store: 26,456 SF Sales Area: 18,848 SF Percent Complete: 42% Replacement commissary with: DeCA standard Decor General sales area with Grab-N-Go area & Deli Energy efficient heating and air conditioning system Heat recovery system Return air reclaims cold display case spill-over Automatic refrigeration monitoring and control system Force protection and handicap compliant Energy saving lighting and exterior windows

24 Projected Annual Sales Keesler AFB, MS Project Awarded:Apr 3, 2007 Total Project Cost: $28.9M Overall Store: 96,889 SF Sales Area: 49,450 SF Percent Complete:32% Joint construction with AAFES Replacement commissary with: DeCA standard Decor General sales area with Grab-N-Go area & Deli / Bakery Energy efficient heating and air conditioning system Heat recovery system Return air reclaims cold display case spill-over Automatic refrigeration monitoring and control system Force protection and handicap compliant Energy saving lighting and exterior windows Funded with Hurricane Katrina Recovery Funds Grand Opening:

25 Projected Annual Sales Chievres, Belgium Project Awarded:Sep 26, 2007 Total Project Cost: $19.5M Overall Store: 52,572 SF Sales Area: 22,292 SF Percent Complete: 37% Replacement commissary with: DeCA standard Decor General sales area with Grab-N-Go area & Deli / Bakery Energy efficient heating and air conditioning system Heat recovery system Return air reclaims cold display case spill-over Automatic refrigeration monitoring and control system Force protection and handicap compliant Energy saving lighting and exterior windows Grand Opening:

26 Questions