OMSDC COE Kroger Corporate Overview AUGUST 6, 2015  LARISSA ENGLAND | Sr. Manager, Corporate Supplier Diversity

$108.5B Largest Traditional Grocery Retailer 4th Largest Global Retailer $108.5B Total Sales We span 34 states

BY THE NUMBERS Over 2,600 Supermarkets and Multi Department Stores $108.5 BILLION IN TOTAL SALES 782 CONVENIENCE STORES 326 FINE JEWELRY STORES SAME-STORE SALES GROWTH OF 5.2% (WITHOUT FUEL) BY THE NUMBERS 2,626 SUPERMARKETS AND MULTI-DEPARTMENT STORES 200 MILLION MEALS DONATED THROUGH MORE THAN 80 FEEDING AMERICA FOOD BANK PARTNERS 34 DISTRIBUTION CENTERS 400,000 ASSOCIATES COMPANY-WIDE WE COVER 34 STATES 2.2 BILLION KILOWATTS OF ELECTRICITY SAVED. THAT’S ENOGH TO POWER OPERATE ROUGHLY 200,570 SINGLE FAMILY HOME FOR A YEAR Over 2,600 Supermarkets and Multi Department Stores Fine Jewelry Stores Convenience Stores Fuel Centers Pharmacy and Little Clinics 37 Food Processing Plants 34 Distribution Centers 180 MILLION PRESCRIPTIONS FILLED 37 FOOD PROCESSING PLANTS 1,330 SUPERMARKET FUEL CENTERS

Corporate Mission Is to be the leader in the distribution and merchandising of food, pharmacy, health, personal care, seasonal merchandise and related consumable products and services We will conduct our business to produce financial returns that reward investment by shareowners and allow the Company to grow We value diversity and will strive to reflect that diversity in our workforce, the companies we do business with and the customers we serve

Increase sales and profits Meet customer needs/expectations Corporate Goals Increase sales and profits Meet customer needs/expectations Customer 1st Strategy and Associate 1st Offer high quality products and services Gain a competitive advantage Control efficiencies and reduce cost Achieve sustainability and safety objectives Contribute to the economic growth of the communities we serve Customer First Strategy The 4 Keys People: Our people are great. Shopping Experience: Makes you want to return. Product: You get the products you want, plus a little. Prices: Our prices are good.

Our Values Diversity. We seek and embrace differences in the backgrounds, cultures and ethnicities of all associates, customers and vendors. Inclusion. We encourage and expect collaboration, teamwork and the active involvement of all associates. Respect. We treat all with dignity and value the opinions and perspectives of others. Honesty. We insist on truthfulness with each other, with our customers, with our vendors and in our business records. We expect and value openness. Integrity. We act in accordance with our values, even when it’s difficult. Safety. We protect our customers and each other from injury with a safe and secure workplace and shopping environment. In fulfilling our commitment, we always live by our core values:

Supplier Diversity Mission Statement To identify, create and develop sustainable business partnerships with minority-owned, women-owned and other diverse-owned businesses, that allow Kroger to grow and consistently achieve its Customer 1st Strategy.

Organizational Chart Rodney McMullen TBD Reuben Shaffer Caren Hensley Chairman & CEO Reuben Shaffer Chief Diversity Officer Denise Thomas Corporate Supplier Diversity Director Larissa England Corporate Supplier Diversity Sr. Manager Briston Mitchell Supplier Diversity Specialist Caren Hensley Sr. Executive Assistant TBD President & COO We Report Directly into the CEO We do not have a Chief Purchasing Officer We do not fit into HR This works for us because of the way we procure our products and services

Supplier Diversity Process Our processes are imbedded in all aspects of the supply chain to include Diverse suppliers Participate in strategic planning and product review meetings to determine their needs Establish goals and objectives for business units and decision makers Incorporate MBE utilization verbiage and 2nd Tier requirements in all contracts Identify process owners and hold them accountable

Identify Opportunities Annual KOMPASS schedule Retail items that are coming up for review Indirect Sourcing RFP/RFQ/RFI’s Marketing Operations HR Services Facility Engineering Direct Sourcing RFP/RFQ/RFI’s Manufacturing Corporate Brands Logistics IS&S Construction/ Facilities Engineering

Identify Opportunities Supplier Information Management (SIM) Supplier Registration Portal All Suppliers Diverse/Non Diverse Online Bid Process Sourcing Managers Diversity Liaison Analytics Department Metrics Diversity Information Supplier Information Sustainability Certifications Our whole process has changed, the way we purchase items and who handles what is constantly changing Kroger is ever evolving and this is just one aspect of that We have over 30,000 Suppliers all housed in one central location

Thank You Questions?