1. NACS Association Collaboration in a Complex World 84 th Annual Food Industry Association Executives Convention November 8, 2011 Henry Armour, President/CEO 1

2. Presentation Overview NACS » An Organizational Overview » Our Value Proposition » Our Industry Top Issues Confronting the Industry Collaboration in a Complex World »Our belief in JFK Open Dialogue Throughout

3. NACS Overview Founded in 1961…50 Years Old This Year! Mission: Knowledge, Connections & Advocacy 2,400 retail member companies » Operating 80,000 stores in the USA » Operating 350,000 stores globally » Members in 44 countries 2,000 supplier member companies Governed by a diverse retail board of directors 58 staff colleagues Headquartered in Alexandria, VA

4. The NACS Value Proposition Knowledge » State of the Industry Data (SOI) & Performance Benchmarking (CSX) » Consumer Intercept Research (CTP) » NACS Center for Achieving Foodservice Excellence (NACS Café) » Educational Programs  NACS/Cornell University Executive Leadership Program  NACS Leadership Challenge for Store Supervisors  Over 100 educational workshops and forums  Computer based store-level training modules » Business process improvements/technology standards (PCATS) Connections » NACS Show » NACS Global Forum » NACS Leadership Forum » NACStech Show Advocacy » Government Relations » Media Relations 4

5. Key Industry Facts! Part of the everyday life of the American consumer » 146,000 stores  90,000 single store operators » 160 million transactions/day  82% of motor fuels sold in the USA (#1)  75% of tobacco products (#1)  90% of lottery products (#1)  56% of beer (#1)  #2 in salty snacks, candy & package beverage » 1.6 million employees » In virtually every community of America » The store is increasingly relevant  68% of facility gross profit dollars  28% of inside gross profit dollars is foodservice

6. Weathering the Great Recession! 2007200820092010 ‘10 Change Industry Stores 146,294144,875144,541146,341 1.2% Industry Sales$577B$624B$511B$576B12.6% Industry Profits$3.4B$5.2B$4.8B$6.5B $1.7B Credit Card Fees $7.6B$8.4B$7.4B$9.0B $1.6B Number of Employees 1,714,3301,727,7001,580,0001,601,000 -.-% Source: NACS State of the Industry Database powered by CSX

7. Top Advocacy Issues Swipe fees FDA tobacco Menu labeling The Nutrition/Obesity Issue Health care reform Renewable fuel standard/E15+

8. Collaborative Advocacy Family vs. Share Group vs. Coalition Models Guiding Principles – JFK’s: Focus on what Unites Us not on what Divides Us » Interest sets and policy positions will not always align – Always keep the end, the objective, in mind » The poison of association politics – Understanding Relative Resources » Not everyone brings the same things to the table » Equality of commitment is what’s important » Trust & Respect despite size

9. Collaborative Model Family » NACS and state associations » (Almost) perfectly aligned interests » Synergistic power: resources + grassroots » Respect Share Groups » NACS/API/SIGMA/PMAA/NATSO, GGAC » Common interest spheres » Information sharing, POSSIBLE position alignment » Back scratching potential Coalitions » MPC, LUST Taskforce » Common issue focus » Resource sharing, common position (but only on this issue) » Can be strange bed-fellows & relative resource contribution friction

10. So What Do You Think? Q&A Time

11. NACS Contact Information Henry Armour President & Chief Executive Officer +1.703.518.4282 harmour@nacsonline.com www.nacsonline.com

12. FIAE Excelling in Today’s Food Industry 84 th Annual Food Industry Association Executives Convention November 8, 2011 12