Mr. Patrick B. Nixon Director

1. Team DeCA The Race to Raving Fans!! Mr. Patrick B. Nixon Director

2. Relevant Recognized Responsive Race Conditions Today! DeCA's Vision: Patrons, Workforce, Stakeholders Raving Fans

3. The Race To Raving Fans! Winning it All!! The view from Victory Lane Pulling out the stops on Produce Off the brakes on Health & Wellness Moving out on Virtual Commissary Passing the competition as the Nutritional leader In peak condition on fiscal responsibility In R & D on the “shopping model of tomorrow” Setting records in speed to shelf Reaching the big time with highest lift to promotional dollar Running tomorrow’s race today --“Store of the Future” debuts in San Diego We Said We'd Do It and We Did!!

4. The Race To World Class Insert Store of the Future Video here We Said We'd Do It and We Did!!

5. Relevant Proven Business Model Sales Growth $2,760.3 YTD March vs. $2,711.8 in March FY 2006 (up $48.5M; +1.8%) 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

6. The Qualifying Lap First Pole Position Relevant Supermarkets DeCA Outside Pole Position

7. Relevant It's called riding the"draft"... 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 Two or more cars traveling together can always go FASTER than one!

8. Recognized "First, You Gotta Qualify!" “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 The Tech Inspection

9. The Tech Inspection Recognized "First, You Gotta Qualify!" Best customer identity theft protection Latest encryption in DoD Strong firewalls and intrusion detection protect confidential data Annual FISMA and Privacy Act compliance certification

10. Responsive The Race to Raving Fans Scholarship program Applications: 34,912 Recipients: 2,966 Dollars awarded: $4,657,000 Voter Assistance & Military One-Source Spouse & family member hiring 38% employment

11. Responsive The Race to Raving Fans! • Outreach • DeCA Dietitian • Promote DeCA as Nutritional Leader • Partnership with DoD • DoD Nutrition Committee • Partnership with Tricare • Ask a Dietitian on Commissaries.com • Commissary Awareness Month • Regional commercial grocer application

12. Responsive It's about the right "over the wall" gang... 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 25 stores as of April 1, 2007 Implementation on target for 51 stores – FY 2007 All Hawaii stores Grand Forks, ND and Smokey Point, WA commissary have received comprehensive WOF training Only the Agile, Knowledgeable, Motivated MOST

13. Responsive It's about the tires... Commissary Advanced Resale Transaction System (CARTS) – DeCA’s Point of Sale System for today & the future On track to deploy CARTS at all commissaries by May 2008 Operational testing & evaluation initiated February 23, 2007 Engaged in testing at Fort Lewis, WA; McClellan, CA; Lackland, TX; Fort McCoy, WI; and San Diego, CA Preparing for follow on testing at Vogelweh, GE Where the "rubber meets the road"

14. Responsive It's about the balance... Warehouse Management System Manages CDC receiving, storing and shipping functions Streamlines processes by leveraging latest technology Feb & Mar 2007 – Deployed to CDC’s in Germany Successfully deployed Voice Activated Picking Initial deployment of Performance Management Tool Transportation Management System replacement on track for FY08 completion Intelligently Managing Distribution

15. Responsive It's about the suspension... 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 Supporting Core Business Processes

16. Responsive It's about the engine... Individual Shopping Experience Creating a sense of community Exciting shopping experience Brand name recognition High coupon usage Pantry loading or grab & go A Good Driver Must Listen

17. Responsive It's about the weather... Health & Wellness Know your customer Food safety Evaluate and Anticipate "Road" Conditions

18. Responsive Gambling With Pit Stops “In stock-car racing there’s no such thing as drawing up a precise game plan before a race starts—a set, pre-planned strategy gets you nowhere. Racing changes by the minute—or even by the second—with caution flags coming out because of accidents, blown tires, mechanical failures, and even rain….strategy, however, is still very important as the race unfolds…pit stops play the greatest role in race strategy.” Mark Martin, NASCAR Driver and Champion Mapping out the Track Attack

19. Race Conditions for Tomorrow On to the next race... Maintaining the lead Measuring success as a team dynamic High performance requires top talent Staying agile in a continually changing environment Adapt, adapt, adapt The “Lead Draft” Listening to the “spotter”—honing the individual shopping experience Strengthening partnerships Virtual Commissary—Part 2 The Winning Teams Are the Most Responsive Teams!!

20. Tomorrow's Store of the Future Increased Partnership Increased use of technology Increased use of patron demographics Personalized shopping experience Exploring several location options Exploring opportunities!

21. Team DeCA Redefining High Performance, Delivering theWinning Formula and filling the stands with Raving Fans!