1. Mr. Terry L. Batenhorst
Area Director, West
San Antonio 2015

2. Budget Uncertainty Original plan $322M Reduction in FY 2016
$1B in FY 2017
Alternate Plan
$183 M Reduction in FY2016
Cuts in days, hours, etc.

3. National Defense Authorization Act
Newest plan, overhaul the commissary system?
Sec of Defense come up with a plan by 1 March to make commissaries and exchanges Budget-Neutral by 1 Oct 2018
Exploit synergies to optimize operations.
Privatizing operations in whole or in part.
Engagement of major Commercial Grocery retailers for discount savings on Groceries.
Closing stores in close proximity to other facilities or where commercial alternatives are available.

4. National Defense Authorization Act
Benchmarks
1. High level of Customer Service
2. Provide high quality products
3. Sustainment of savings.
Pilot program test for 5-10 years.
* Must meet the Benchmarks and be Budget-Neutral.

5. Other Issues
Employee conversion to NAF
Private label
Variable pricing
Headquarters cuts (25%)
Delayering the organization

6. Performance
We’re PROUD. We’re COMMITTED. We’re MORE.

7. DeCA Sales Comparison FY 2015 Area Sales % Change $ Difference
WEST AREA
$1,395,669,070
- 2.45%
- $35,117,678
PACIFIC AREA
$1,036,181,174
- 1.66%
- $17,536,470
EAST AREA
$1,426,549,287
- 1.58%
- $22,950,982
CENTRAL AREA
$1,186,963,906
- 0.88%
- $10,515,376
EUROPE AREA
$397,716,043
- 6.28%
- $26,660,664
DeCA OVERALL
$5,443,079,481
- 2.03%
- $112,781,170
Area FY13 Sales FY12 Sales Difference % Change
WEST AREA $1,395,734,384 $1,444,161, $ 48,426, %
PACIFIC AREA $ 768,328,393 $ 777,347, $ 9,019, %
EAST AREA $1,273,509,542 $1,306,405, $ 32,895, %
CENTRAL AREA $1,037,606,206 $1,065,554, $ 27,948, %
EUROPE AREA $ 375,489,504 $ 407,822, $ 32,332, %
Sum: $4,850,668,030 $5,001,290, $150,622, %

8. Sales per Transaction FY 2015 vs. FY 2014 vs. FY 2013 Area
Sales per Trans FY 2015
Sales per Trans FY 2014
Sales per Trans FY 2013
WEST
$60.53
$61.12
$61.34
PACIFIC
$57.96
$58.29
$58.38
EAST
$70.28
$71.12
$70.69
CENTRAL
$67.51
$67.76
$67.68
EUROPE
$40.68
$41.95
$40.83

9. West Area Sales by Zone FY 2015 Zone Sales % Change $ Difference
CENTRAL TEXAS
$212,060,769
- 3.05%
- $6,675,277
OKLAHOMA-NM
$263,675,670
- 3.88%
- $10,640,395
FRONT RANGE
$295,150,576
- 2.47%
- $7,475,018
NORTHERN CA
$149,982,748
- 2.36%
- $3,617,722
SOUTHERN CA
$271,441,680
- 1.92%
- $5,311,779
CENTRAL CA
$121,384,842
- 1.20%
- $1,469,653
CAN-MEX
$231,955,533
- 1.51%
- $3,545,557
TOTAL
$1,545,651,818
- 2.44%
- $38,735,401

10. West Area Sales – Zone 6 FY 2015 Store Name FY 15 Sales % Change
$ Difference
CORPUS CHRISTI
$8,681,662
1.91%
$162,432
DYESS
$10,320,768
- 1.02%
- $106,572
FORT HOOD I
$37,098,104
- 0.42%
- $156,817
FORT HOOD II
$20,956,636
- 4.21%
- $920,603
FORT SAM HOUSTON
$40,548,937
- 2.56%
- $1,066,899
GOODFELLOW
$9,630,382
0.21%
$20,379
KINGSVILLE
$652,388
- 3.09%
- $20,815
LACKLAND
$36,930,735 %
- $4,547,515
LAUGHLIN
$3,623,229
9.41%
$311,728
RANDOLPH
$43,617,929
- 0.80%
- $350,595
Store Name FY13 Sales FY12 Sales % Change $ Difference
CORPUS CHRISTI $ 7,345,598 $ 7,743, % - $ 397,445
DYESS $ 9,224,065 $ 9,925, % - $ 701,464
FORT HOOD I $34,581,785 $36,779, % - $2,197,636
FORT HOOD II $20,442,435 $21,030, % - $ 587,585
FORT SAM $36,476,326 $38,608, % - $2,131,765
GOODFELLOW $ 8,424,736 $ 8,300, % $ 123,831
KINGSVILLE $ ,358 $ , % $ ,354
LACKLAND $38,557,321 $39,855, % - $1,298,170
LAUGHLIN $ 2,957,120 $ 3,176, % - $ 219,274
RANDOLPH $38,985,465 $41,153, % - $2,168,509

11. Combined Monthly Sales Comparison
DeCA Wide
Combined Monthly Sales Comparison 11

12. Combined sales from the 5 stores
Lackland, Randolph, Fort Sam,
Fort Hood 1 & 2
Combined sales from the 5 stores

13. The Texas Challenge

14. Goal for FY 2016 3% Sales Increase
We’re PROUD. We’re COMMITTED. We’re MORE.

15. DeCA Wide Sales History
Year Sales Trend
2011 $5,873,720,210
2012 $6.008,239,880 Record Year
2013 $5,797,657,15
2014 $5,555,860,651
2015 $5,443,079,481

16. FY 2016 Sales Goals ($M)

17. Director’s Focus Areas
Outstanding Customer Service
Pricing (to include promotions)
Stock Availability/Improved In-Stock Positions
Cleanliness of Stores

18. February – July Comparison
39.7%
15.8%
16.5%
15.1%
12.7%
May not add to 100% due to rounding
Source: DeCA Retail Sales

19. Market Penetration February – July 2015 Scott AFB Pearl Harbor 62% 56%
77%
31%
83%
76%
60%
<5
73%
<5
<5
5-9.9
66%
41%
<10
<10
57%
<15
<15
46%
<20
<20
Source: DeCA Retail Sales

20. Demographic Index Age Group Scott AFB Pearl Harbor Under 22 50 96
22-24 43
126
25-30
139
31-34 65
135
35-44
103
118
45-54
151 87
55-60
134 73
61-64 72
65-69
113 71
70-74 93
75+ 74 78
HH Size
Scott AFB
Pearl Harbor 1 72 95 2
108 88 3
104
112 4
105
111 5+ 98
115

21. Scott AFB – Category Index by Age
February – July 2015
Net Sales Index by Age
CATEGORY DESCRIPTION
Under 22
22-24
25-30
31-34
35-44
45-54
55-60
61-64
65-69
70-74
75+
Grand Total
BREAKFAST BARS 69 65 77
106
160
204
199
186
142
112 85
COUGH COLD SINUS FLU ALLERGY VARIOUS 68 56 82 95
148
190
155
146
126 98 72
129
DOG FOOD DRY 76 83 84 99
143
163
135
125 79 49
119
DOG SNACKS 87 63 89
139
162
134
116 94
111
ISOTONIC 55 52 75
138
124
103 92 45
SODAS ALL FLAVORS 74 62
182
159
127
COFFEE CANNED REGULAR 66 58 78
137
170
131
114
115
FOOD K TO O 1 71 80 91
169
151
121
123
COFFEE TEA COCOA K CUPS 64 96
156
153
136
120
CEREAL FAMILY AND TOPPERS 60 50
133
165
140
113
VITAMIN OR SUPPLEMENT BROADLINE 59
132
174
166
101
MEXICAN
168
147 97
117
MILK FLUID
130
173
118
109
YOGURT LIGHT REDUCED FAT CHILLED
CHEESE SHREDDED CHLLL
CRACKERS CAN CHEESE SPREAD 54 70 90
PIZZA 57
107
BAKERY ITEMS 51
CEREAL ADULT
122 67
TISSUE BATH 53
Source: DeCA Retail Sales

22. Pearl Harbor – Category Index by Age
February – July 2015
CATEGORY DESCRIPTION
Under 22
22-24
25-30
31-34
35-44
45-54
55-60
61-64
65-69
70-74
75+
Grand Total
RICE PLAIN DRY
171
196
241
237
213
167
144
134
121
145
192
181
JUICE BLENDS
117
153
157
151
119 73 59 60 58 61 92
TUNA
146
182
184
179
105
136
114 79 81
139
COFFEE TEA COCOA K CUPS 88
130
133
120 90 57 42 32 29 24 62
CEREAL ADULT
160
183
170
137 84 55 54 47 93
CEREAL FAMILY AND TOPPERS
113
142
164
149
118 72 50 48
CEREAL CHILDREN
107
154
165
158
131 80 74
115
BABY FORMULAS BABY NEED
108
100
111
106
NATURAL ORGANIC
188
194
202
218
123 71
110
178
SODAS ALL FLAVORS 87
128 56 43 37 34 38 68
WATER
177
169
156 95 85 83 94
125
COOKIES
135
150
124 70 51 49 39
CRACKERS CAN CHEESE SPREAD
129 66 53
NUTS CAN OR PK
180
190
148 82
CHIPS TORTILLA
189
141 89 64 65
CHIPS POTATO
103
159 86 69
101
DETERGENTS LAUNDRY LIQUID 98
162
155 78 52
DOG FOOD DRY 63 36 41 35 44
TOWELS PAPER OR CLOTH OR WIPE
176
TISSUE BATH
143
Source: DeCA Retail Sales

23. Facilities Projects
We’re PROUD. We’re COMMITTED. We’re MORE.

24. Facilities Projects – R22 Replacement
FY 2015/16
Store
Projected Start / Completion Date
Miramar
October 2015
Edwards
TBD
El Centro
Fort Huachuca
Fort Worth
Mountain Home
Offutt
Vandenberg

25. Projected Start / Completion Date
Facilities Projects
FY 2015/16/17
Store
Type
Projected Start / Completion Date
Lackland AFB
Renovations/Refrig replace
November 2015
China Lake
Pre-Design
FY 2016
Los Angeles
Port Hueneme
Planning
Altus
FY 2017
F. E. Warren
Fort Irwin