Driving Strategy Through Smarter Process Oct 13, 2008 Supervalu Inc. Operations Review

1 Historical timeline and Background: 2,474 Stores, 191,400 Employees $44B Revenue, 591M Net income Original Shared Value contract: 5/1/04-5/01/07 1 st Contract Extension: 5/01/07 – 8/1/07 2nd Contract Extension: 8/1/07 – 8/1/08 Jan 06: Supervalu purchases Albertsons 4th qtr 06’ Cerberus buyout of Albertsons projects 3 rd Contract Extension: 8/1/08 – 9/1/09 Impact To Client: Cultural impact: 15+ Waves of training thru active BB candidates. 57 Certified BBs SVU Financial impact: 2006 Six Sigma Budget Forecast–$80 Million 2007 Six Sigma Budget Forecast–$105 Million Average Total Project Value >$404K Average Total Project Cycle time 9.5 Months SVU BBs: Trained 190+ BBs SVU MBBs: Trained 17 SVU GBs: 17 Trained 207+ active projects Closed 550 projects worth $221+ Million per year SSA Financials $(000) Including Divestiture: Updates: Transition of Kathy (Sept 08) and Kevin (Oct 08) Continued support by Dan at Farm Fresh and Acme through FY09 Advance BB training continuing weeks 3 (Nov 3) and 4 (Dec 1) Save-A-Lot expansion (800 stores) Supervalu Account Status *2007 Does not include CVS and Cerberus settlements totaling $1 Mill ** Includes Contract Extension for Dan, Kathy & Kevin *2008**2009 Cash5001,6014,0419,28011,3054,000 Cost8861,9901, Margin(386)(388)2,246 [56%] 8,551 [92%]

2 Transition updates  Kathy transitioned Sept 08 -Transition to SVU MBBs complete  Kevin to transition Oct 08 -Transition in process for Shaw’s  Dan -Completed 2 nd week of Advanced Black Belt training -Continuing support at Acme and Farm Fresh -Save A Lot opportunity

3 Questions & Recommendations ?

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