1. 1 Mr. Richard S. Page Chief Operating Officer Mr. Richard S. Page Chief Operating Officer

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4. 4  Control produce procurement  Leadership role in Health & Wellness  Virtual Commissary (Phase II)  Set the standard for fiscal responsibility  Speed to shelf  Lift per promotional dollar  Deliver the Store of the Future  Control produce procurement  Leadership role in Health & Wellness  Virtual Commissary (Phase II)  Set the standard for fiscal responsibility  Speed to shelf  Lift per promotional dollar  Deliver the Store of the Future

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6. 6  Sales Growth $4,143.2 FYTD June vs. $4,058.7 in June FYTD 2006 (up $84.4M; +2. 1%)  Benefit Value 32% in FY 2006 vs. 30% Goal  Patron Satisfaction 4.23 vs. 4.55 - (+7.6%) ACSI for CY 2006 is 77 vs. Supermarket Industry 75  Sales Growth $4,143.2 FYTD June vs. $4,058.7 in June FYTD 2006 (up $84.4M; +2. 1%)  Benefit Value 32% in FY 2006 vs. 30% Goal  Patron Satisfaction 4.23 vs. 4.55 - (+7.6%) ACSI for CY 2006 is 77 vs. Supermarket Industry 75

7. 7 15.322.1Inventory Turns 45,00016,829Avg. Number of SKU’s 34,14731,392Avg. Sq. Ft. per Store $30.86$60.76Avg. Transaction $ 7.12$16.15Weekly Dollar Sales per Sq. Ft. of Sales Area $297,496$506,968Avg. Sales per Week 15.322.1Inventory Turns 45,00016,829Avg. Number of SKU’s 34,14731,392Avg. Sq. Ft. per Store $30.86$60.76Avg. Transaction $ 7.12$16.15Weekly Dollar Sales per Sq. Ft. of Sales Area $297,496$506,968Avg. Sales per Week

8. 8  The AAFES Community Development Initiative Concepts  Town Center  Lifestyle Center  Mixed Use Development Locations: AAFES investigating feasibility at 7 locations  DeCA will participate where it makes sense  FY 2008 replacement commissary at Fort Bliss being planned as part of a Town Center May include: Fast food, fitness centers, furniture, military clothing, theatres, and national retail chains for books, clothing, casual dining, etc  The AAFES Community Development Initiative Concepts  Town Center  Lifestyle Center  Mixed Use Development Locations: AAFES investigating feasibility at 7 locations  DeCA will participate where it makes sense  FY 2008 replacement commissary at Fort Bliss being planned as part of a Town Center May include: Fast food, fitness centers, furniture, military clothing, theatres, and national retail chains for books, clothing, casual dining, etc

9. 9  “Clean Audit Opinion” 5th Consecutive Year  Highest score in DoD for FY 2006 Annual Statement of Assurance for Internal Controls  Average energy use per sq ft 10% above the “Energy Star” rating for supermarkets  “Clean Audit Opinion” 5th Consecutive Year  Highest score in DoD for FY 2006 Annual Statement of Assurance for Internal Controls  Average energy use per sq ft 10% above the “Energy Star” rating for supermarkets

10. 10  Best customer identity theft protection Latest encryption in DoD Strong firewalls and intrusion detection protect confidential data  Annual FISMA and Privacy Act compliance certification  Best customer identity theft protection Latest encryption in DoD Strong firewalls and intrusion detection protect confidential data  Annual FISMA and Privacy Act compliance certification

11. 11  Scholarship program Applications: 39,927 Recipients: 3,532 Dollars awarded: $5,506,000  Voter Assistance & Military One-Source  Spouse & family member hiring 38% employment  Scholarship program Applications: 39,927 Recipients: 3,532 Dollars awarded: $5,506,000  Voter Assistance & Military One-Source  Spouse & family member hiring 38% employment

12. 12  DeCA Dietitian Promote DeCA as Nutritional Leader Partnership with DoD Partnership with TRICARE  DoD Nutrition Committee “Ask a Dietitian” on www.commissaries.com  “ Its Your Choice, Make It Healthy” Campaign Regional commercial grocer application  DeCA Dietitian Promote DeCA as Nutritional Leader Partnership with DoD Partnership with TRICARE  DoD Nutrition Committee “Ask a Dietitian” on www.commissaries.com  “ Its Your Choice, Make It Healthy” Campaign Regional commercial grocer application

13. 13  Workforce of the Future Critical strategic element  Implement a more productive, flexible store level workforce  Better serves needs of all stakeholders  More viable in a competitive sourcing environment Status  Initial briefing provided to 38 stores as of June 1, 2007  Implementation on target for 53 stores – FY 2007  All Hawaii stores, Grand Forks, ND and Smokey Point, WA have received comprehensive WOF training  Workforce of the Future Critical strategic element  Implement a more productive, flexible store level workforce  Better serves needs of all stakeholders  More viable in a competitive sourcing environment Status  Initial briefing provided to 38 stores as of June 1, 2007  Implementation on target for 53 stores – FY 2007  All Hawaii stores, Grand Forks, ND and Smokey Point, WA have received comprehensive WOF training

14. 14  Commissary Advanced Resale Transaction System (CARTS) On track to deploy CARTS at all commissaries by May 2008 CONUS operational testing & evaluation initiated February 23, 2007  Engaged in testing at Fort Lewis, WA; McClellan, CA; Lackland, TX; Fort McCoy, WI; San Diego, CA; Harrison Village, IN OCONUS operational testing & evaluation initiated May 16  Engaged in testing at Vogelweh, GE  Commissary Advanced Resale Transaction System (CARTS) On track to deploy CARTS at all commissaries by May 2008 CONUS operational testing & evaluation initiated February 23, 2007  Engaged in testing at Fort Lewis, WA; McClellan, CA; Lackland, TX; Fort McCoy, WI; San Diego, CA; Harrison Village, IN OCONUS operational testing & evaluation initiated May 16  Engaged in testing at Vogelweh, GE

15. 15  DeCA Enterprise Business System – Replaces legacy business applications Cataloging Receiving Ordering Inventory Management Milestone A approval on target – 4th quarter FY 2007 Projected Milestone B approval & software contract award – 3rd quarter FY 2008 Projected Initial Operating Capability – FY 2011  DeCA Enterprise Business System – Replaces legacy business applications Cataloging Receiving Ordering Inventory Management Milestone A approval on target – 4th quarter FY 2007 Projected Milestone B approval & software contract award – 3rd quarter FY 2008 Projected Initial Operating Capability – FY 2011

16. 16  Individualized Shopping Experience Creating a sense of community Exciting shopping experience Brand name recognition High coupon usage Pantry loading or grab & go  Individualized Shopping Experience Creating a sense of community Exciting shopping experience Brand name recognition High coupon usage Pantry loading or grab & go

17. 17  Cooperative alliances with key business partners  Effective use of technology  Individualized shopping experience  Enhance use of shopper data  Deliver premier shopping experience  Cooperative alliances with key business partners  Effective use of technology  Individualized shopping experience  Enhance use of shopper data  Deliver premier shopping experience

18. 18  FY 2007 – 2013 Strategic Plan Published  Sets goals and responsibilities Sound strategies and actions Integrated efforts and metrics People held accountable for achievement  “Roadmap for the Future” – Increase the value of the benefit without increasing its cost  FY 2007 – 2013 Strategic Plan Published  Sets goals and responsibilities Sound strategies and actions Integrated efforts and metrics People held accountable for achievement  “Roadmap for the Future” – Increase the value of the benefit without increasing its cost

19. 19  Know your metrics  Accountability matters Integrity Personal accountability Financial Property book IG  Corporate loyalty to the commissary benefit  Know your customers  Value your team members  Know your metrics  Accountability matters Integrity Personal accountability Financial Property book IG  Corporate loyalty to the commissary benefit  Know your customers  Value your team members

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22. 22 Harlon Block Born: 1924 Yorktown, Texas Died: 1945 Iwo Jima, Japan

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24. 24 Rene Gagnon Born: Manchester, N.H. March 7, 1925 Died: Manchester, N.H. October 12, 1979

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26. 26 Mike Strank Born: 1919 Jarabenia, Czechoslovakia Died: 1945 Iwo Jima, Japan

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28. 28 Ira Hayes Born: January 12, 1923 Sacaton, Arizona Died: January 24, 1955 Bapchule, Arizona

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30. 30 Franklin Sousley Born: Sept. 19, 1925 Hilltop, KY Died: March 21, 1945 Iwo Jima, Japan

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32. 32 John Bradley Born: July 10, 1923 Antigo, WI Died: January 11, 1994 Antigo, WI

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