1. Continuing to Leverage Technology to Solve Retail Asset Protection Challenges Byron Smith – Corporate Asset Protection Manager October 2013

2. Agenda Overview of 7-Eleven Asset Protection Core Strategy 7-Eleven Technology Solutions Integration of Solutions to Maximize Systems CCTV Systems & Tools The Future Mobile App Questions

3. 3 7-Eleven – World’s Largest Convenience Retailer 50,900 Stores Worldwide Operating in 16 Countries Worldwide Revenue $62.5 Billion Over 10,200 Stores U.S. and Canada Each store's selection of about 2,500 different products Predominately Franchised (80%)

4. 7-Eleven Franchise System- Partnership Franchisee Initial Franchise Fee Labor Expenses o Payroll o Workers Compensation Insurance Maintenance (Some) Inventory Shortage 7-Eleven Own the location or hold the lease Responsible for most of the occupancy costs o Utilities o Maintenance Expense (Most) General Liability Expense Marketing/Brand Finance Inventory Shared Merchandise Write-offs o Gross Profit *** Franchisee can purchase up to 15% of their merchandise from Non-Recommended Vendors

5. Revenue/ Profit Assurance Inventory Variation Control Incidents and Investigations Safety and AP Awareness Asset Protection Team Asset Protection Core Strategy

6. Talent Investment Investigations Specialists Field AP Specialists Subject Matter Experts Exception Based Reporting Exception Reporting Fraud Management System Integration Automation Case Management System Case Management “Cradle to Grave” Resolution Asset Recovery System Integration Networked In-Store Video DVR Technology in all Stores Networked for Remote Access System Integration The utilization of Video Analytics 7-Eleven Technology Solutions

7. 1) Transaction activity captured in the POS T-Log is sent from the store’s ISP to the 7-Eleven Data Center. 2) The POS T-Log is captured in an unedited form and sent along with other data feeds (21 in total) to the “Secure” Exception Based Reporting tool. Some feeds are also sent to APIS. 3) The “Secure” EBR tool (SaaS) collects data & flags potential fraud or other risk conditions based on the criteria established by the AP team. 4) The video is networked at the store and is called up for exceptions identified in the Secure Tool. Video evidence can be stored in either Secure or APIS as digital evidence. 5) When a condition of concern is identified, a ticket is logged in the Case Management tool (SaaS) with the associated data from the EBR tool. 6) The AP Field Team and Corporate Investigations accesses both systems via the web and manages the investigation information and results. The Asset Protection System Data Center Asset Protection Team

8. Quick overview of system activity, links to reports and system configuration. The portal is customized for each user or specific role requirements. Types of inquiries: Non Scanned Refunds Price Overrides Tobacco Promos Transaction Lookup Item Voids Penny Rings No Sales Non Scanned Sales Coupons Cancel Age Verification Aborted Transactions The Secure Portal

9. Secure Questions Automated queries are created to monitor specific fraud risk areas are saved in the system to process data

10. Secure Investigations Results of Saved questions are fed into the Investigation Center where investigators can review suspect transactions

11. Secure Transaction Viewer Transaction viewer will have access to details such as: Receipt View Tlog Audit View Store Sequence CCTV footage Users can drill into the investigation results to see the details of specific transactions which have been flagged by the system.

12. CCTV Systems & Tools

13. ClickIt Retail Analytics 360 Video

14. Transaction Review - 360 Video

15. Advanced ATM Path

16. Front Door Path Analysis

17. Analytics Path Results

18. Front Door Pay & Leave

19. Analytics Heat Map

20. Dwell Time Map

22. Infrastructure to Support the Future In considering all of our technology solutions, we are balancing our current needs with those of the future. o How flexible is the solution, and will it be able to accommodate our future needs? o Will the provider commit to further development of their solution? o As we address scale, can the solution continue to support our needs as we grow in store count? o Can the solution easily integrate with other solutions that are currently in place or may be added? o Are we focused on innovation and best in class solutions?

23. The Future Product Protection Automation – Cycle Counts Vending Product Options Prevention Programs Robbery Prevention Programs Response to theft and fraud Travel Safety & Security Business Continuity Management Investigations Support Surveillance Integrity Shops Enforcing Compliance with Business & Regulatory Practices Termination Investigation Process Coupon Intergrity ERM Approach Weather Alerting Options Merchandising Smart Safes Product Security Innovation

24. Mobile App

25. Main Screen

26. Navigation

27. Featured Products

28. Special Events

29. Current Offers

30. Questions?