NYACS Fall Conference Hank Armour, NACS President/CEO

1. NYACS Fall Conference Hank Armour, NACS President/CEO

2. Meeting Agenda • Industry Performance Trends • Advocacy Issues Facing the Industry • The Breadth & Depth of Our Industry • Open Dialogue • What’s on your minds? • NACS Overview, Governance & Focus

3. Industry Performance Update

4. Total Industry Overview Source: Nielsen & 2007 NACS State of the Industry Survey powered by CSX

5. Industry Sales Recession Recession Recession Source: NACS State of the Industry survey for 2007 powered by CSX

6. Industry Pretax Profits Source: NACS State of the Industry survey for 2007 powered by CSX Recession Recession Recession

7. Top Direct Store Operating Expenses As Percentage of Gross Profit Dollars Source: NACS State of the Industry database powered by CSX

8. Credit Card Costs to the Industry Source: NACS State of the Industry survey for 2007 powered by CSX

9. Interchange Rates

10. Industry Credit Fees vs. Pretax Profit Source: NACS State of the Industry survey for 2007 powered by CSX

11. Core Category Performance in 2007 Source: 2007 NACS State of the Industry survey powered by CSX

12. Sales Productivity – by Quartile Source: NACS State of the Industry survey for 2007 powered by CSX

13. People Productivity – by Quartile Source: NACS State of the Industry survey for 2007 powered by CSX

14. Sales Jan/June 2008 Based on 77 firms – 3,655 stores Source: CSX

15. Direct Store Operating Expenses Jan/June 2008 Source: CSX

16. Margins Jan/June 2008 Source: CSX

17. EIA Fuel Supply (Consumption) Pivot point for consumption $4/gallon and the brakes went on! Source: US Department of Energy, Energy Information Agency

18. Change in Annual Sales Convenience Source: Department of Commerce

19. Industry Trends Summary • Harvesting the cigarette category • Refreshment destination is the new destination • Food service important but “localized” • One “size” ceasing to fit “all” • Targeting offers to varying demographic groups • Convenience convergence • Channel obliteration & Global best practices • Will Tesco reset the table in consumers’ minds? • Interchange fees are the #1 economic issue • Increasing focus on supply chain inefficiencies • Emerging liquidity crisis • Very well positioned long term for the ubiquitous demand for convenience

20. NACS 2008 Advocacy Issues • Credit card interchange fees • FDA tobacco • Hot Gas • LUST funding • Ethanol mandates/infrastructure incentives • Credit card expiration • Card check • Death Tax repeal • Health care insurance

21. Credit Card Interchange Fees • Progress in Years 1 & 2 • Antitrust litigation continues • NACS congressional testimony • Transparency (make the operating rules public) • Why are U.S. rates among the highest in the world? • VISA & MC announced plans to fully publish their secret operating rules • MC puts a cap on transaction amount subject to interchange fees • VISA announces a change in RC96 chargebacks • MC & Visa do IPOs • VISA announced a “reduction” in fees for fuel transactions (June 27th) • Legislation introduced in early March - HR 5546 & S 3086 • 3 to 5 year effort • We need your help! • www.nacsonline.com/askcongresscreditcardfees • National pump topper plan over the August congressional recess • Support the effort by making a contribution to the NACS Interchange Action Fund

22. NACS 2008 Advocacy Issues(continued) • Credit card interchange fees • FDA tobacco • Hot Gas • LUST funding • Ethanol mandates/infrastructure incentives • Credit card expiration • Death Tax repeal • Health care insurance

23. The U.S. C-Store Industry • 146,294 stores = 50,000 more than: Warehouse clubs + Supercenters + Dollar stores + Mass merchandise stores + Supermarkets + Drug stores • $577 billion sales (4.25% of GDP) • 159.5 million transactions per day • Every 40 hours the industry serves the equivalent of the entire mobile population of America (6 yrs to 85 yrs old) • 98% of Americans shop at c-stores once/month • 82% of the motor fuel sold in the U.S.

24. The U.S. C-Store Industry • 1.7 million employees • Some of the Best Places to Work in the USA (2008 Fortune Magazine) • #1 Best Big Company (Valero) • #28 (QuikTrip) • Stores in every congressional district • Physically closer to the homes of America than any other channel of trade…and closer to our communities • We are the mosaic of America! • Every race, creed, gender, income, age

25. Open Dialogue What’s on your minds?

26. NACS Overview • Founded in 1961 • 2,400 retail member companies • Operating 70,000 stores in the USA • Operating 300,000 stores globally • Members in 44 countries • 49 of the 50 largest companies in the industry • 71% operate 10 or fewer stores • 2,000 supplier member companies • Governed by a retail board of directors • 54 staff members

27. Retail Board of Directors • 27 U.S. directors, 3 international directors • Bylaw requirements • 1/3rd from companies with fewer than 25 stores, 1/3rd from companies with more than 150 stores • Minimum of 3 from each of the 6 domestic regions • No more than 4 from any one state • 2 year terms, maximum 3 terms

28. Board of Directors Executive Committee Richard Oneslager; Balmar Petroleum Scott Hartman; CHR/Rutter’s Farm Stores Jay Ricker; Ricker Oil Sam Turner; Com-Pac Food Stores Bill Douglass; Douglass Distributing Sonja Hubbard; E-Z Mart Stores Jeff Miller; Miller Oil Alvin New; Susser Holdings; Greg Parker; Parker Companies Tom Robinson; Robinson Oil Government Relations Tom Robinson; Robinson Oil Sonja Hubbard; E-Z Mart Stores Jinger Duryea; CN Brown Jim Garrett; Volta Oil Gil Moore; New West Stations Jay Ricker; Ricker Oil Matt Thornton; Thornton’s Alvin New; Susser Holdings Sam Turner; Com-Pac Food Stores Research & Technology Greg Parker; Parker Companies Mike Call; Maverik Bill Douglass; Douglass Distributing Chip Lavigne; Lavigne Oil Pat Lewis; Oasis Stop ‘N Go Gil Moyle, Jr.; Moyle Petroleum David Sutton; Tiger Fuel Member Services Jeff Miller; Miller Oil Dave Carpenter; JD Carpenter Johnny Milazzo; Lard Oil Stewart Spinks; The Spinx Co. Nichole Torsey; Mountain Counties Lynn Wallis; Wallis Companies Jerry Westgate; WESCo Jack Kofdarali; J&R Masa Asakura; 7-Eleven International Eduardo Padilla; OXXO Wayne Klahs; Chevron Warren Wilmot; 7-Eleven Australia

29. Directors from the Northeast • Jinger Duryea (C.N. Brown Company/The Big Apple Food Stores) • Maine, 90 stores • Legislative & NACSPAC Committees • Jim Garrett (Volta Oil Company, Inc.) • Massachusetts, 10 stores • Legislative Committee • Scott Hartman (CHR Corp./dba Rutter’s Farm Stores) • Pennsylvania, 50 stores • Technology Council Chair; Convention and Events, Audit, Nominating & Executive Committees; Past Chairman of the Board • Jeff Miller (Miller Oil Co., Inc./Miller Mart) • Virginia, 37 stores • Vice Chair, Member Services Committee; Convention and Events, NACSPAC & Executive Committees • David Sutton (Tiger Fuel Co./dba The Market) • Virginia, 13 stores • Technology Council

30. Mission Our mission is to provide the • Knowledge • Connections • Advocacy necessary to represent • the convenience & petroleum retailing industry and to assist our member in • maximizing their effectiveness and profitability

31. NACS’ Three Pronged Focus • Knowledge • State of the Industry (SOI & GSOI) Data/CSX • Business process improvements/Technology standards (PCATS) • Industry research • Educational products & seminars • Connections • The NACS Show • NACStech Show • HR Forum • NACS/ECRM Food Service Business Conference • NACS Global Forum & Study Tours • Advocacy • Government Relations • Media Relations

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