Presented by Empower IT August 2008

1. European Market Overview Presented by Empower IT August 2008 Heidelberg, Germany

2. Overview of the Market Place

3. “The dollar is down, so he’s worshipping the Euro.”

4. DeCA vs Top AmericanRetailers DeCA ranks 15th among America’s Top Food Retailers *DeCA base sales adjusted by 30% Source: Information Service Food Marketing Institute April 2007 – ranking and sales information taken directly from Directory of Supermarket, Grocery & Convenience Store Chains

5. Consumer Packaged Goods Dollar Share by Channel The average consumer makes one less shopping trip per month today than five years ago Source: Food Industry Review 2007

6. How $100 is Spent in Supermarkets Source: Progressive Grocer, April 15, 2008 (www.ProgressiveGrocer.com)

7. Food Safety Concerns Source: FMI's U.S. Grocery Shopper Trends 2007

8. Factors for Selecting a Grocery StoreBy Gender Source: Food Marketing Institute’s U.S. Shopper Trends 2007

9. Characteristics of Store FormatsRetail vs Military DeCA is doing more with less! Average weekly customer transactions are $58.57 compared to $27.34 outside the gate! Source: Willard Bishop’s Future in Food Industry Review 2007

10. Now let’s take a closer look at DeCA Europe

11. Source: 2007 Commissary Customer Service Survey (CCSS) DeCA Europe Customer Comparison 58% of Military Shoppers in Europe fall into the 25-44 age group

12. DeCA Store Count The majority of store closures during the past 6 years has occurred in Europe Total number of stores open by year Store count includes CDCs and Nexmarts Source: DeCA Headquarters

13. Total DeCA Sales ConUS vs Europe Five-Year Trend (FY 2002 – 2007) Despite store closures, Europe has sustained 5.3% growth in the past 5 years DeCA Sales FY07 vs FY03 Europe: +5.3% ConUS: +9.7% Source: American Logistics Association Site

14. Europe Average Dollar Sales per Store …and average sales per store in Europe have increased dramatically Source: DeCA Headquarters & ALA Site

15. 52 Wk Trend vs YAG $ % Chg Pkg % Chg Europe +0.8% -4.3% ConUS +4.8% -0.3% Sales Performance ConUS vs Europe 52-Week Trends (Millions) (Millions) 4 Wk Pd. Ending: Source: TotCat 52 weeks ending 6/07/08

16. Sales Performance Europe 52-Week $ Sales Changes Store closures had a major impact on sales from July thru December 2007 Europe had growth of 5.7% in the first half of 2008 versus prior period and growth of +3.1% versus year ago period Europe $ Sales % Chg vs Year Ago Closures 2007 Bad Nauheim, GE (June 2007) McCully Barracks, GE (July 2007) Giessen, GE (September 2007) Buedingen, GE (October 2007) Gelnhausen, GE (October 2007) Darmstadt, Hanau, and Wuerzburg scheduled to close August 2008 Source: TotCat 52 weeks ending 6/07/08

17. Region Summary October-May, FY 2008 The weak US dollar combined with higher fuel costs are forcing European patrons to stock up more vs a year ago Source: DeCA Sales, ALA Website

18. Europe Sales by Country In 2008, troops will be migrating from Germany to Italy % of Europe Dollars by Country Source: TotCat 52 weeks ending 6/07/08

19. DeCA Stores in Europe

20. Store Performance Europe Store Ranking Top six stores accounted for 40% of Europe dollar volume Europe Store Ranking based on Dollar Volume Source: TotCat 52 weeks ending 6/07/08

21. Category Performance Top 15 Categories by Dollars Top three categories are Beverages followed by Salty Snacks Source: TotCat 52 weeks ending 6/07/08

22. Store Performance Dollar Ranking Top 25 European Items - Dollars • Of the top 50 items… • 9 Soda • 5 Milk • 5 Bread • 5 Frz Chicken • 4 Water • 3 Salty Snacks • 3 Infant Nutritionals • 3 Chill Juice • 2 Cigarettes • 2 Charcoal • 2 Bacon • 1 Toilet Paper • 1 Sour Cream • 1 Frz Fish • 1 Energy Drink • 1 Cheese • 1 Butter • These 25 items generate 6.4% of all Europe dollar volume • The top 50 generate 9.3% Source: Empower IT, 52 Weeks End Dec 2007

23. Store Performance Package Ranking Top 25 European Items - Packages Source: Empower IT, 52 Weeks End Dec 2007

24. Store Performance Assortment Most of the top European stores carry close to the full assortment of overall top items Most stores have more than 9% of their sales in the top 50 items. Only Lakenheath shows a considerably lower % of volume generated by the top items. Source: Empower IT, 52 Weeks End Dec 2007

25. Store Performance Fastest Growing Stores Grafenwoehr opened a new store plus an increase in troops stationed on the base Dollar Sales Change (in millions) Dollar % Change Source: TotCat 52 weeks ending 6/07/08

26. Store Performance Growing Stores • Grafenwoehr - Has a new store, 830 new families stationed there. Also eight new single soldier barracks were added. • Schweinfurt - Sales will remain stable in 2008. Dagger brigade was relocated to Grafenwoehr. • Patch - 300 new AFRICOM members, 700 more arrived in June. • Ramstein - Sales have been increased by case lot sales, supporting the regions promo package. • Aviano & Lakenheath - Sales are enhanced due to the current exchange rate. • Vogelweh - Concentrating on aggressive customer outreach programs. • Lajes Field & Schinnen - Tremendous effort in maintaining in-stock ratio and additional efforts on customer service and merchandising.

27. Store Performance Ramstein AB, Germany Ramstein aggressively utilized region’s promotion program and took advantage of all shippers offered Commodities ranked on Dollar Volume Source: TotCat 52 weeks ending 6/07/08

28. Store Performance Lakenheath, England Efficient stocking and merchandising strategies are proving to be successful for Lakenheath Commodities ranked on Dollar Volume Source: TotCat 52 weeks ending 6/07/08

29. Store Performance Vogelweh AB, Germany Vogelweh’s success is attributable to outstanding service provided to patrons by the store personnel and strong growth from refrigerated section Commodities ranked on Dollar Volume Source: TotCat 52 weeks ending 6/07/08

30. Store Performance Fastest Declining Stores (Excluding Closures) Vilseck’s losses may be due to new store opening at Grafenwoehr Dollar Sales Change (in millions) Dollar % Change Source: TotCat 52 weeks ending 6/07/08

31. Store Performance Declining Stores • Vilseck - Some of their customers returned to shopping at Graf. Also the impending deployment of 4,000 in Sept, 2007 affected their sales. • Vicenza - Sales have just leveled off from 06. 75% of the troops were deployed in 2007. The impending deployment of troops from Germany to Italy will affect future sales. • Bitburg - The 52nd Airwing is on continuous deployment. In Jan. 2008, 1,500 troops were deployed. Active duty has dropped by 200 at this base. • Incirlik - Major reconstruction of housing is taking place. This has delayed incoming families to this area. • Mildenhall - Reduced store hours and days. • Wiesbaden - Troops are on continuous deployment. • Ansbach - Several troops deployed, many family members went back to the US. New troops are expected this fall. • Croughton - Less troops stationed in this area.

32. Let’s dive down deeper into the data!

33. Commodity Ranking Europe Overview Dollar Volume (millions) • Top Commodities in Europe Source: TotCat 52 weeks ending 6/07/08

34. Commodity Performance Europe Overview $ Shr Index To ConUS $ % Chg Europe ConUS • Baby Products are twice as developed in Europe than in ConUS • Tobacco indexes only 47 compared to ConUS Source: TotCat 52 weeks ending 6/07/08

35. Commodity Performance Frozen Foods Frozen Fish, Entrees, and Chicken categories drive the Frozen Commodity’s strength in Europe Source: TotCat 52 weeks ending 6/07/08

36. Commodity Performance Baby Products Commodity Baby Products account for 4.6% of dollar sales in Europe, significantly more than its contribution in ConUS (2.2%) and growing Source: TotCat 52 weeks ending 6/07/08

37. Category Performance Highest Category Contribution Indices Demographic differences in Europe drive category shares in Gourmet and Baby related categories Category Contribution Index Source: TotCat 52 weeks ending 6/07/08

38. Category Performance Top 15 Categories by Dollars Top three categories are Beverages followed by Salty Snacks Source: TotCat 52 weeks ending 6/07/08

39. Category Performance Fastest Growing Categories by $ Six of the top ten growth categories are in the Chilled Section Source: TotCat 52 weeks ending 6/07/08

40. Category Performance Lowest Category Contribution Indices Many different factors contribute to low indices for these categories (e.g., yogurt - shelf life issues, coffee – local offerings) Category Contribution Index Source: TotCat 52 weeks ending 6/07/08

41. Category Performance Fastest Declining Categories by $ Fresh Vegetables* and Brooms/Mops/Cleaning Supplies were the fastest declining categories both in dollars and packages * Produce sales were affected by discontinuation of a contract with Fresh Express during spring and summer last year Source: TotCat 52 weeks ending 6/07/08

42. A quick look at Sales Bands, Store Class, • and Case Lot Sales

43. Store Performance Europe by Store Class Overall three new stores were added to Class B and two Class B stores were closed in 2007* % of Total Dollars $ % Change vs Year Ago # of Stores by Class * Lajes Field, Livoron, and Illesheim - Class was changed to B; Class B stores Bad Nauheim and Giessen were closed in 2007 Source: TotCat 52 weeks ending 6/07/08

44. Store Performance Europe by Sales Bands Sales Bands 5 & 4 are the largest in dollar volume and had the highest growth $ % Change vs Year Ago % of Total Dollars Source: TotCat 52 weeks ending 6/07/08

45. May Case Lot Performance Europe Case Lot Sales by Zone 78,897 Cases Sold • Ramstein led the way in case lot sales, selling 8,300 cases (32% of Ramstein Zone sales); Vogelweh followed closely behind. • Napels, Incirlik, Bamberg, and Cairo sold 100% of the cases ordered. Source: Stephen J. Armbruster, Chief, Marketing Branch (DeCA/EU/DOM)

46. Case Lot Performance Europe Case Lot Sales by Zone Hohenfels Case Lot Bitburg Case Lot Cairo Case Lot

47. DeCA Europe Key Facts to Take Away • DeCA has sustained 5.3% dollar growth for the past five years! • Their average dollar sale has increased dramatically, up 4% (Oct-May 2008) • The top six stores account for 40% of Europe’s sales volume • New troops and families are continuing to arrive to Europe • The largest group of troops are young, active duty with growing families • Many categories index much higher in Europe vs. ConUS • Baby Products, Frozen Foods, Confectionery, Household Supplies • Europe sold 80,000 cases in its May Case Lot Sale

48. DeCA Europe DeCA’s dollar sales goal for FY 2008 is $6 billion… So what can you do to assist DeCA achieve this goal?

49. DeCA Europe Opportunities Important Market • 58% of the active duty troops stationed in Europe are 25-44 years of age • Most of them have two or more children • This is a key time to formulate brand loyalty and establish shopping patterns that will be lifelong • Most shop exclusively on base for their food and other related items • Bringing a taste of home means so much to them

50. So when you start putting together your marketing budget, please don’t forget this group! Support the troops when they need it most!