1 Mr. Thomas E. Milks Chief Operating Officer Mr. Thomas E. Milks Chief Operating Officer

2 Saving money on eating out: switching from fine dining to fast foods and seeking supermarket meals solutions in place of restaurant fare Saving in the store: buying more value brands, using coupons, buying basic ingredients, and shopping with a plan Switching store formats: buying at supercenters, warehouse clubs, and limited assortment stores Consumers are economizing on food purchases; three trends have emerged in 2009: Source: FMI Grocery Shopper Trends 2009: Recession Changing Consumers Shopping Behavior at the Supermarket (14 May 2009)

3 Pressures from the turbulent economy are changing consumers behavior… Consumers are doing MORE of: –Going out of their way to find bargains –Shopping multiple stores for the best price –Clipping & redeeming coupons –Eating out less –Reading supermarket circulars Consumers are doing LESS of: –Dining out for lunch & dinner –Buying less organic produce & meats –Buying less Starbucks Coffee –Buying less Premium dark chocolate Source: NGA, 2009 Consumer Panel Survey & Phil Lempert, Supermarket Guru & Mintel

4 Source: Retail Forward ShopperScape, Feb/Mar/Apr 2009 Grocery Food Shopping

5 Source: Retail Forward ShopperScape, Feb/Mar/Apr 2009 Grocery Food Shopping Using coupons, buying multiple items at a time, and stockpiling sale items most common Consumers are looking for that Multiple item buy (i.e. 10/$10 or 5/$3) in order to get best value on deal

6 Capitalize on Increased In-Home Eating Occasions –Consumers and Patrons eating out less: Restaurant quality & Healthy meals, conveniently prepared at home Saving Money is a Priority –Increased use of coupons –Buying products on sale –Provide multiple pricing for value and stock up Consumers are Time Stressed –Provide convenient home meals solutions, in both Frozen and Shelf Stable Grocery –Key in on innovation and flavor profiles that meet the needs of the Patrons: Dining out “At Home,” Convenience, Healthy Fit Importance of Variety –Patrons expressed satisfaction with DeCA’s strong variety offering –DeCA point of difference versus Grocery & Club channels

7 Page 7 DeCA 2008 Annual State of the Business Source: Nielsen Homescan 2008 Cross Outlet Facts DeCA 2008 Annual State of the Business Source: Nielsen Homescan 2008 Cross Outlet Facts Confidential & Proprietary Copyright 2009 The Nielsen Company Confidential & Proprietary Copyright 2009 The Nielsen Company

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9 Location TypeDate Richards-Gebaur, MO NewJanuary 27, 2009 New Orleans, LA Interim store March 31, 2009 Saratoga Springs, NY NewApril 14, 2009 Dyess AFB, TX Re-openingApril 21, 2009 Robins AFB, GA NewMay 28, 2009 Livorno/Camp Darby, Italy NewJune 5, 2009 Fort Drum, NY Re-openingJune 30, 2009

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11 LocationTypeOpening Chievres, BelgiumNew Jan 2010 Keesler AFB, MSNew Apr 2010 New Orleans, LANew Oct 2010 Eglin AFB, FLRe-openingDec 2010 Fort Riley, KS (MILCON)Re-opening May 2011 Fort Bliss, TX (BRAC)New Jun 2011 Fort Campbell, KYNew Jun 2011 Moody, GARe-opening Jul 2011 Quantico, VANew Nov 2011

12 Project awarded: Project awarded: Sept 2007 Project cost: Project cost: $20.1 M New facility: 48,256 square feet (sales area 22,295 SF) Project includes the following: Project includes the following: New administration offices, employee break rooms, cashier office, a bakery/deli area, self checkout, all new refrigeration display cases, walk-in coolers and freezer, new décor package, staging/receiving areas and patron parking.

13 Project awarded: Project awarded: Apr 2007 Completion: Jan 2010 Project cost: Project cost: $30.3 M New facility: New facility: 97,876 SF (sales area 51,600 SF) Project includes the following: A modern state-of-the-art shopping facility that will be environmentally friendly and energy efficient.

14 Project includes the following: Project includes the following: a modern state-of-the-art shopping facility that will be environmentally friendly and energy efficient. Project awarded: Project awarded: Sep 2008 Completion: Completion: Aug 2010 Project cost: Project cost: $19.5M New facility: New facility: 48,041 SF (sales area 24,503 SF) part of shopping complex with exchange

15 Project awarded: Project awarded: Oct 2008 Completion: Completion: Oct 2010 Total project cost: Total project cost: $22.3M Renovated facility: Renovated facility: 105,573 SF (sales area 56,988) Project includes the following: Project includes the following: This project will expand portions of the warehouse, the front end area for new entrance area, shopping carts and checkout area. It also includes new admin offices, and storage areas. The sales area will be renovated with a new décor package, refrigerated display cases and bakery/deli service area. The refrigeration system, HVAC and lighting system will be replaced.

16 Project includes the following: Project includes the following: The project provides new refrigeration systems, display cases, including monitoring and controls, expanded sales/checkout area, and relocated backroom food processing areas. Also included is upgrade of all interior Décor and finishes, HVAC system replacement, repairs, and site improvements. Project awarded: Project awarded: Aug 2009 Completion: Completion: Spring 2011 Total project cost: Total project cost: $24M Renovated facility: Renovated facility: Square footage increased from 62,067 to 108,178 SF. (Sales Area will increase by 74% to 58,980 SF )

17 Project awarded: Project awarded: May 2009 Completion: Completion: Mar 2011 Total project cost: Total project cost: $26.1M New facility: New facility: 113,827 SF (sales area, 60,765 SF) Project includes the following: Project includes the following: A modern state-of-the-art shopping facility with a large deli and bakery, hot foods, sushi to go and self-checkouts conveniently located next to Grab ‘N Go products. The store will be environmentally friendly and energy efficient. The project is being funded under the Base Realignment and Closure program.

18 Project awarded: Project awarded: Sep 2009 Completion: Completion: Jun 2011 Total project cost: Total project cost: $29.6 M New facility: New facility: 121,871 SF, (sales area, 63,134 SF) Project includes the following: Project includes the following: A modern state-of-the-art shopping facility that will be environmentally friendly and energy efficient.

19 Project awarded: Project awarded: Aug 2009 Completion: Completion: May 2011 Total project cost: Total project cost: $15.6M Renovated facility: Renovated facility: 65,470 SF (sales area 34,127) Project includes the following: Project includes the following: The project includes major additions and alterations to existing commissary for expanded sales area, bakery deli, updated decor, new refrigeration system and controls and display cases, force protection provisions, site improvements related to expansion.

20 Project awarded: Project awarded: Sep 2009 Completion: Completion: Nov 2011 Total project cost: Total project cost: $26.1 M New facility: New facility: 121,226 SF, (sales area, 64,135 SF) Project includes the following: Project includes the following: An international delicatessen and bakery, self-checkouts, modern décor; the store will be environmentally friendly and energy efficient.

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22 HQ Performance & Policy reorganizes under CoE concept Aligns with Commissary Levels of Authorized Standard Service (CLASS) More efficient, flexible to support culture of innovation and creativity Personnel assigned to individual CoEs will be linked to store departments for all policy oversight, construction reviews, and other operational issues

23 – Operations Division – strategy and oversight – Management/Admin Division – Grocery Division – Customer Service Division – Meat Division – Produce Division – Specialty Departments Division – Facilities Division – Environmental Management Division – Security Division

24 Current label operations are labor intensive Automatically installed with all new CONUS commissary construction Beginning January 2010 replace CONUS commissary labels with ESL over 5 years Overseas stores: ESLs only installed at LARGE locations such as Ramstein, Vogelweh, Osan, Kadena

25 Efforts to Improve –Re-commissioning at Mayport Commissary to reduce energy use by optimizing refrigeration and air handling controls –Preparing to conduct DeCA-wide equipment assessment to meet FY 2015 energy and water goals New Initiatives –Initiating Web-based refrigeration monitoring –Low ambient “layered” lighting and daylighting at Little Creek NAB Commissary Successes –Energy reporting Web site –Annual worldwide Facility Energy Supervisor energy efficiency training

26 In-house Gift Voucher Program – Available in stores October 15, 2009 – $25 denomination – Issued and redeemable at all 255 locations – Purchased with cash, check, debit, traveler’s check, or money order – Large quantities should be preordered at the store a week in advance

27 May 2010 Family Fun and Fitness Festival 5K Run/Walk (DeCA Industry partners onboard) Everyone Wins! Exchanges, DeCA & MWR/Services “Big Top” in the parking lot: DeCA Case Lot Sale; Exchange Sidewalk Sale; Fitness Demos Theme - Health, Wellness, Fitness, Super Sales/Savings! Food sampling; music; recreation demos; health and wellness outreach; kids programs May 2010 Family Fun and Fitness Festival 5K Run/Walk (DeCA Industry partners onboard) Everyone Wins! Exchanges, DeCA & MWR/Services “Big Top” in the parking lot: DeCA Case Lot Sale; Exchange Sidewalk Sale; Fitness Demos Theme - Health, Wellness, Fitness, Super Sales/Savings! Food sampling; music; recreation demos; health and wellness outreach; kids programs

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29 Area Dollar Sales Percent Change Customer Transactions Percent Change East$2.8B+ 3.5%91.9M+ 0.70% Europe$503M+ 3.4%21.1M+4.18% West$2.6B+ 2.1%94.8M-0.14% Total$5.9B+ 3.0%207.8M +1.00% Sales/transactions through September 30

30 Estimated sales through September 31 Sales through September 30 Estimated sales through September 32

31 Increased focus on “Winning Weekends” – 7 of Top 15 Record “Single Day Sales” Expanded Guard and Reserve sales Aggressively expanded and promoted club packs – Focused on perishable Case Lot sales – Twice-a-year worldwide sales – Increased number of region and zone sales Focused on “Greener” Efforts

32 RankDay and Date SalesEvent 1Saturday, January 31, 2009 $29,478,429.87Super Bowl 2Saturday, February 02, 2008 $28,554,263.79Super Bowl 3Saturday, November 17, 2007 $26,860,563.76Thanksgiving 4Saturday, November 22, 2008 $26,485,054.81Thanksgiving 5Saturday, January 31, 2004 $26,032,612.39Super Bowl 6Saturday, February 03, 2007 $26,029,117.16Super Bowl 7Saturday, November 01, 2008 $25,708,710.38Payday 8Saturday, November 15, 2008 $25,339,345.38Thanksgiving 9Tuesday, December 23, 2008 $25,321,467.24Christmas 10Saturday, November 18, 2006 $25,255,742.11Thanksgiving 11Thursday, July 03, 2008 $25,045,894.17July 4th 12Saturday, May 02, 2009 $24,873,606.71Payday 13Saturday, February 02, 2002 $24,835,463.69Super Bowl 14Saturday, August 30, 2008 $24,469,813.43Labor Day 15Saturday, February 28, 2009 $24,444,430.57Payday FY 2009: 7 of Top 15

33 FY 2009 Totals 164 On-Site Sales! Sales: $9.1M Savings: $4.1M Serving 81,668 Patrons! As of September 30

34 FY 2009 vs  Sales:  111 % ( 4.8M )  Customer count:  103% Serving 41,524 more Patrons! As of September 30

35 18 Surveys completed 92.10% Met or exceeded customer expectations 91.97% Met or exceeded savings expectations 83.15% Consider these sales to be a valuable benefit 53.01% of patrons traveled from a distance greater than 16 miles from the event 59.25% of the patrons do not regularly shop at the commissary 14.28% were Active Duty 38.97% were Retired Military 39.28% were Guard & Reserve

36 FallWinterSpring Summer (July-Aug) East$8,698,994$9,531,161$13,303,787$8,242,088 Europe$722,518$859,764$1,389,331$532,007 West$9,441,503$10,803,787$14,190,858$8,330,102 Total$18,863,015$21,194,712$28,833,976$17,104,197

37 DOLLARS DeCA EUROPE $504,700 DeCA EAST $8,913,526 DeCA WEST $8,541,620 GRAND TOTAL $17,959,846 1% increase over Worldwide Case Lot Sale in May 2008

38 Earth Friendly Days promotion featuring “Go Green” products –April 16-29, 2009, promotion, coinciding with Earth Day (April 22) and Arbor Day (April 24) Leveraging explosive category growth for green and organic products FY 2008 surpassed CFL Bulb Goal – over 1.25 million sold! –FY 2009 through September 21, we‘ve sold 578,773 –FY 2009 energy savings: $7.5M ($13 per bulb sold/over life of bulb) Reusable grocery bags –Over 2.1 million DeCA imprinted non-thermal bags have been sold since October 2007 –Over 627,000 non-imprinted thermal bags sold since 2005

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40 Distributor Support P We PURSUE EXCELLENCE Our pursuit of excellence is demonstrated through the valued benefit we deliver to the military members and their families. A We are ACCOUNTABLE We are accountable for commitments, results, and quality to customers, stakeholders, partners, and employees. We drop our personal agendas and band together as a team with shared results. We extend trust, respect each other, and value differing opinions. S We have a SENSE OF URGENCY We are steadfast in our belief in the value of the benefit we provide. We have a sense of urgency and a common purpose. S We SET HIGH STANDARDS We ensure standards are set HIGH to measure our progress and continuously improve our processes. I We value INNOVATION We recognize the value of innovation, ideas, collaboration and teamwork from across the enterprise. We seek open and honest exchange of information and ideas. We look for opportunities to make positive changes. We get better everyday. O We take OWNERSHIP We are leaders that take ownership and pride in what we do. We provide a clear and compelling vision. We empower and engage team members. We treat all with respect and dignity. We expect and model excellence in delivering the “benefit.” N We are NECESSARY We are necessary to the Quality of Life of the military warfighter and their families.

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