Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Albertson’s Account Status 3/2/06

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 1 Albertsons Account Status History/Status: Original contract: 5/1/04-5/01/07 Contract Extension: 5/01/07 – 8/31/07 Focus of deployment is with remaining Supervalue divisions. CVS and Cerberus are not interested at this time Trained 118 BBs – 300 planned Trained 250 Project Sponsors 286 active projects Closed 104 projects worth $52.7 Million per year Impact To Client: Cultural impact: 101 Current BB candidates, 16 certified Divisional budgets linked to Six Sigma initiative 12 ABS Deployment Leaders, 8 Sr. Ops VPs, trained and functioning in Divisions Financial impact: ABS 2006 Six Sigma Budget -$147M Average Project Value >$531K Average Project Cycle time 210 days SSA Financials $(000) Non Divestiture : Total Cash5001,6016,97517,26318,66145,000 Cost8861,9892,5281, ,028 Margin(386)(388)4,44715,69418,45537,972 Key Opportunities & Challenges: Challenges: 66% of current closed project value will remain after divestiture Recent turnover in FA and IT support (Shannon) Early repatriation of BB into business Significant attrition of BB Approximately 6 BBs to CVS 15 BBs to Cerberus Opportunities: Executive Steering Committee – better alignment of company wide initiatives and resource allocation Divisional Assessment Kaizens – enable more in-depth projects and better align high level company goals with six sigma projects Continued Kaizen events improving project closure

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 2 Albertsons divestiture analysis 2006 JanFebMarAprMayJunJulAugSepOctNovDecCum Feb Forecast $ 323 $ 249 $ 294 $ 329 $ 383 $ 449 $ 520 $ 685 $ 817 $ 904 $ 1,009 $ 1,011 $ 6,975 Divestiture Adjusted $ 323 $ 249 $ 294 $ 329 $ 383 $ 296 $ 343 $ 452 $ 539 $ 597 $ 666 $ 667 $ 5,140 Variance $ - $ (153) $ (177) $(233) $ (278) $ (308) $ (343) $ (344) $ (1,834) * assumes finalized sale of Albertsons in June  34% of SSA Closed Projects in at risk divisions, potential 2006 reduction of $1.8 Million  For 2007, with same analysis, SSA stands to reduce cash estimate by $5.9 Million ($17MM to $11MM)

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 3 Albertsons Project Cycle Time and Value Average Project Cycle Time: 210 Days To Close. Continuing to work project cycle times with Kaizen events, better leadership engagement and increasing number of leverage projects. January Average Project Value: $531K. Albertsons continues to maintain high average project value. Divisional Assessment Kaizens should help generate future projects and maintain high value.

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 4 Albertsons Project Closures and New Charters Projects closures accelerating 13 projects closed in Feb worth $3.7 mil Significant number of projects expected to close in March, April and May Charter generation ramp-up Divisional Assessment Kaizens Will enable generation of more and higher quality charters Leverage charters continue to help generate more charters with reduced cycle times

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 5 Executive Kaizen Assessment Divisional Kaizen Assessment Functional Kaizen Assessment Define Key Strategic Business Objectives (What is important to your business success?) Establish Clearly Defined Measures That Characterize Key Business Objectives (How do you measure your success?) Create Business Relationship Map of Operations (High Level) That Align With The Key Business Measures (What is the process that drives this success?) Narrow focus to either a function within a division or a division linked to a corporate function Feed Metrics Back To Executive Dashboard Key Deliverables: Dashboard: Metrics Linked to Strategic Goals Process Map of Operations Activities Identification Divisional and/or Functional processes that drive key metrics Future State Process Maps Performance to Plan Metrics Gap Analysis.VSM of Divisional Operations Identification/Alignment Key Divisional Metrics to Executive Key Metrics Division Level Dashboard to Monitor Performance Future State of Divisional Operations Performance to Plan/Gap Analysis “We might know this …let’s make it visible!”.VSM of Functional Operations Identification/Alignment Key Functional Metrics to Executive Key Metrics Functional Level Dashboard Future State of Functional Operations Performance to Plan/Gap Analysis Albertsons Assessment Kaizens

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 6 Albertsons Project Closure Kaizens Kaizen Events and lessons learned −Used in the improve and control phases for faster project closure. -6 events completed through Feb 2006, 3 led by SSA, 3 completed by ABS. Events reduced cycle time by 6 months for IT Kaizen, 2 months for DFW Distribution Center. Chicago Kaizens being expanded to 120 stores -SSA Kaizen teams: Robert Vaughn lead Victoria Keys, Ray Hemmele, Bill Denniston, Dan Sears, Kevin Kidder, Bob Sutter, Rodney Reed and Todd Griggs. All involved to help facilitate and gain greater experience with the process. General Kaizen Best Practices 1. Measurement systems: Attempt to address prior to Kaizen. If not able to and must include in event, address in the agenda and specify team to work this issue from day Have financial translator completed prior to Kaizen event 3. For materials needing to be purchased during event, have ABS personnel use corporate card and get leadership approval 4. Complete Executive Report outs at end of all meetings 5. Use 5S videos for Manufacturing and Transactional examples 6. Identify Vendors prior to Kaizen and include on team

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 7 Albertsons Program risk assessment Project Closure improvements -6 Kaizen Events have gone well. Expanding use throughout deployment. -Divisional Assessment Kaizens will generate more and higher quality charters

Copyright © Six Sigma Academy International, LLC All rights reserved; for use only in compliance with SSA license. Account StatusPg 8 Albertsons Account Next Steps 2006 Training waves: 2 BB and 1 MBB. Likely beginning in May 88% of our 2006 benefits are in Close or Active projects 34% of SSA Closed Projects in at risk divisions, potential 2006 reduction of $1.8 Million $295K Monthly invoice for projects closed in January. Increasing by approximately 50K per month Divisional Assessment Kaizens start in March. Will provide better alignment of company goals with Six Sigma objectives and high quality projects.

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