Mr. Richard S. Page, Chief Operating Officer

Mr. Richard S. Page, Chief Operating Officer

The ‘Miracle’ Marine

                                                                           

Nickname "Miracle Man"

Place of birth New York, New York

Place of death San Antonio, Texas

Allegiance United States of America

Service/branch United States Marine Corps

Years of service 2003-2007

Rank Sergeant

Unit 2nd Battalion, 11th Marines

Battles/wars Operation Iraqi Freedom

Awards Purple HeartCombat Action Ribbon

Sergeant Merlin German, USMC

November 15, 1985 – April 11, 2008

“Got 3% Chance of Survival, what ya gonna do?”A). Fight ThroughB). Stay StrongC). Overcome Because I Am a WarriorD). All of the Above

“A veteran - whether active duty, retired, National Guard, or Reserve - is someone who, at one point in his or her life, wrote a blank check made payable to The 'United States of America', for an amount of 'up to and including my life.'”

(Author unknown)

Sales • YTD through May: $3.853B (+ $178M)

Costs• 2008 Goal: $1.267.7B • Actual (through March): $617.3M (48.7%

execution)

Patron Satisfaction• 4.60 (out of 5.0)

American Customer Satisfaction Index• National average for commercial grocers: 76• DeCA’s score: 77

Benefit Value• Target: 30% Actual: 31.9%

Clean Audit Opinion: 6th straight yearHighest score in DoD for FY 2007 Statement

of Assurance for internal controls—Second year in a row

• Best Commissary– MCAS New River, NC – Best Large Commissary in the

U.S.

– NAS Key West, FL – Best Small Commissary in the U.S.

– Patrick AFB, FL – Best Superstore

• Outreach– Fort Drum, NY – Guard/Reserve

• Best Merchandising– Fort Eustis, VA – Large Store in the U.S.

– NAS Patuxent River, MD – Small Store in the U.S.

• COMEX – Promotional Display Compliance– Fort Myer, VA – Best Store

– Zone 29 – Best Zone

• Average weekly sales for U.S. stores with sales over

$2M per year for CY 2007

– DeCA: $527, 679 Retail: $294,454

• Average sales growth—Identical store DeCA: 2.2%

Retail: 0

• Shrink percentages for CY 2007

– DeCA: -.40% Retail: -1.52

• Food Safety—Best in Class!

• Information Assurance—Best in Class!

• Leadership Development—We face the same

challenges!

• Partnerships—Best in the business!

• Average weekly sales for U.S. stores with sales over

$2M per year for CY 2007

– DeCA: $527, 679 Retail: $294,454

• Average sales growth—Identical store DeCA: 2.2%

Retail: 0

• Shrink percentages for CY 2007

– DeCA: -.40% Retail: -1.52

• Food Safety—Best in Class!

• Information Assurance—Best in Class!

• Leadership Development—We face the same

challenges!

• Partnerships—Best in the business!

• Military Resale Industry / ALA

• DoD / Military Services

− TRICARE

− Military OneSource

− DoDDS

− Mental Health Self Assessment Program

(MHSAP)

• Military Associations

• Non-profit organizations

• Military Exchanges

• Military Resale Industry / ALA

• DoD / Military Services

− TRICARE

− Military OneSource

− DoDDS

− Mental Health Self Assessment Program

(MHSAP)

• Military Associations

• Non-profit organizations

• Military Exchanges7

• Joint Communications

− Customer lined to AAFES via

www.commissaries.com

− Mailers, weekly ads, radio, catalogs

• Joint Construction

− Town Center Concept

• Joint Business Processes– Exploring and leveraging promotional affinities

– WOW – Europe

– Sister Service Report Viewer (SSRV)

• Joint Communications

− Customer lined to AAFES via

www.commissaries.com

− Mailers, weekly ads, radio, catalogs

• Joint Construction

− Town Center Concept

• Joint Business Processes– Exploring and leveraging promotional affinities

– WOW – Europe

– Sister Service Report Viewer (SSRV)

1.8% Inflation1.8% Inflation

3% Growth

3% Growth

May figures will change slightly as all accounts not closed

Region Sales % Change

DeCA East $1,807,827,448 4.80%

DeCA Europe $324,801,848 1.01%

DeCA West $1,721,140,716 5.63%

Total $3,853,770,012 4.83%

Region Transactions % Change

DeCA East 26,620,887 1.6%

DeCA Europe 7,189,271 -3.0%

DeCA West 27,926,067 2.3%

Total 61,736,225 1.4%

Region $/Transaction % Change

DeCA East $67.91 3.14%

DeCA Europe $45.18 4.08%

DeCA West $61.63 3.21%

Total $62.42 3.41%

Sales Results Sales Forecast Attainment Status thru 8 Months (2/3 of

Year)

RegionProjected

Sales

East

$ 2,714,580

,498

Europe

$ 463,485,7

14

West

$ 2,559,433

,788

Total

$ 5,737,500

,000

FY 2009

FY 2009

Year Units % Change Dollars % Change

2003(S) 1,072,866 N/A $5,391,897 N/A

2004(S) 1,936,651 80.5% $9,986,974 85.2%

2005(S) 2,886,471 49.0% $14,064,224 40.8%

2006(S) 4,195,379 45.3% $23,116,284 64.4%

2007(S) 5,176,154 23.4% $32,108,584 38.9%

2005(W) 1,568,386 N/A $8,342,999 N/A

2006(W) 2,053,793 30.9% $12,151,444 45.6%

2007(W) 2,354,648 14.6% $18,326,513 50.8%

2008(W) 2,932,568 *24.5% $18,863,015 *2.9%

*3 MONTH SALES VS 4 MONTH SALES FOR 2007*3 MONTH SALES VS 4 MONTH SALES FOR 2007

• DeCA East 19.5% Increase

– May 2008: $8.46M

– May 2007: $7.08M

• DeCA West 32% Increase

– May 2008: $6.12M

– May 2007: $4.63M

• DeCA Europe - 5.8% Decrease

– May 2008: $730K

– May 2007: $775K

• DeCA East 19.5% Increase

– May 2008: $8.46M

– May 2007: $7.08M

• DeCA West 32% Increase

– May 2008: $6.12M

– May 2007: $4.63M

• DeCA Europe - 5.8% Decrease

– May 2008: $730K

– May 2007: $775K

• Major undertaking to deliver benefit to G&R

• Industry is a key player

• Over 100 this year—expand to up to 400 by 2010

• Activations to remain at current levels indefinitely

• This is the right thing to do for our customers!!

• Guard/Reserve Sales Status

– FY 2007: Sales at 21 Guard/Reserve locations

• Sales were $1.63 million

– FY 2008: 124 sales planned

• 36 completed, 48 scheduled, 40 planned but dates TBD

• Sales for the 36 completed sales are over $2.1 million

• Expanded Access

– On-site Sales

• Partnership (DeCA, Industry, Installation) Success

• Communicate “Quality of Life” commissary benefit

• Hire military family members

– Guard/Reserve On-site Sales System

– Virtual Commissary

• Outreach

– “Discover Your Benefit” Campaign

Commissary Onsite Sales: Delivering the Benefit!Commissary Onsite Sales: Delivering the Benefit!

266 Customer Transactions

266 Customer Transactions

$26,161 In Sales $26,161 In Sales

900+ Customer Transactions

900+ Customer Transactions

$187,175 In Sales $187,175 In Sales

2,265

Customer Transactions

2,265

Customer Transactions

$233,414 In Sales $233,414 In Sales

• Workforce of the Future

• NSPS

• Military family members

• Wounded Warrior Program

• Intern Program

• Leadership Development

• Employee Quality of Life

• Workforce of the Future

• NSPS

• Military family members

• Wounded Warrior Program

• Intern Program

• Leadership Development

• Employee Quality of Life

Deployment Status•On track to fully deploy 259 commissaries by August 2008• SCOs account for 29% of total lanes • Follow on deployment begins Fall 2008 to adjust lane configurations at select commissaries as recommended by operational community

– Prioritized by operations as funding is available

System Support• Availability goal of 98%• Balancing Help Desk support with deployments is a primary issue• Improvement Progress:

– Fine tune Tier 1– Establish IBM Region POC– Publish CARTS newsletter– Establish Field Review Board

What is it?

− CAO Order Forecast will run daily vs. weekly for every item

Why do we need it?

− Provides for a much more accurate forecasting capability

− Resolves issues for stores with a 7 day order lead-time or longer

When will we get it?

− Beta Testing at Pearl Harbor and Fort Lewis

• Scheduled to begin around October 31, 2008

• Testing will last two weeks, or longer if needed

− Deployment to rest of Hawaii two weeks later

− Rest of CoNUS stores to follow

• Listening to our customers

• Earth Friendly Days promotion featuring “Go Green”

products

– April 17-30, 2008 promotion

– Coincided with Earth Day (April 22) and Arbor Day

(April 25)

• Leveraging explosive category growth for green and

organic products – tripled SKUs in the last six months

• Reusable grocery bags

– Over 1 million DeCA imprinted non-thermal bags

sold Oct 2007 to date

– Over 500,000 non-imprinted thermal bags sold 2005

to date

• Operations—reducing our ecological footprint

– Reducing utility consumption and exploring alternative fuels

– Equipment, HVAC, fleet, alternative lighting and power

supplies

• Daylight harvesting (skylights) – San Diego & Little Creek

• Solar Power – Los Angeles

• Evaluating in partnership with DOE, fiber optic lighting in

closed door freezer cases and LED technology for walk-in

freezer lighting – Fort Meade

– Waste management program – reducing solid waste

• Recycled more than 20,000 tons of cardboard and 7,000

pallets since Oct 2007

• Developing plastic recycling program

• Operations—reducing our ecological footprint

– Reducing utility consumption and exploring alternative fuels

– Equipment, HVAC, fleet, alternative lighting and power

supplies

• Daylight harvesting (skylights) – San Diego & Little Creek

• Solar Power – Los Angeles

• Evaluating in partnership with DOE, fiber optic lighting in

closed door freezer cases and LED technology for walk-in

freezer lighting – Fort Meade

– Waste management program – reducing solid waste

• Recycled more than 20,000 tons of cardboard and 7,000

pallets since Oct 2007

• Developing plastic recycling program

Project Awarded: September 2005 DeCA Cost $12,900,00Total Project Cost: $29,659,785 Overall Store 54,896 SFGrand Opening November 9, 2007

- New Commissary - Joint construction with NEXCOM - Complete sales area includes “Grab & Go” area - Project is sited in an area master planned as a Community Center - Project included parking area, sidewalks, storm drainage and landscaping - Force protection

Sales Increase:Sales Increase:

Project Awarded: February 21, 2006DeCA Project Cost: $13,500,000Overall Store: 34,210 SFGrand Opening: April 8, 2008 - New commissary - General sales area with “Grab & Go” area-Energy efficient Heating and Air Conditioning system- Heat recovery system-Return air reclaims cold display case spill-over-Automatic refrigeration monitoring and control system- Force Protection

Sales Increase:Sales Increase:

Grand Opening: March 25, 2008

Total Project Cost: $1.2M

Overall Store: 86,101 SF

Sales Area: 44,000 SF

- OSD approved October 29, 2007

- BX Mart to Commissary

- Exchange turned over building on

March 16, 2008

- Projected monthly sales $1.8M

Sales Thru 6-12Sales Thru 6-12

Project Awarded: July 2, 2007

Total Project Cost: $18.7M

Overall Store: 66,910 SF

Project Awarded: July 2, 2007

Total Project Cost: $18.7M

Overall Store: 66,910 SF

Grand Opening:Grand Opening:

Grand Opening:Grand Opening:

Project Awarded: Sep 25, 2007

DeCA Project Cost: $8.0M

Overall Store: 20,277 SF

•

Projected SalesProjected Sales

Together, We Will Meet

Every Challenge!

Together, We Will Meet

Every Challenge!

DoD Budget Scrutiny

Change in Administratio

n

Change in Administratio

n

The Economy

Competition

Relevance

The Relentless

Pursuitof Excellence

The Relentless

Pursuitof Excellence