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Mr. Patrick B. NixonDirector and CEO

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Sales Growth• $4,587.4 FYTD July vs. $4,496.2 in July FYTD 2006 (up $91.2M; +2.0%)

Benefit Value• 32% in FY 2006 vs. 30% Goal• Annual savings for family of four: $3,064• Annual savings for individual: $1,063

Patron Satisfaction• 4.23 vs. 4.61 - (+9.0%)• ACSI for CY 2006 is 77 vs. Supermarket Industry 75

• DeCA was second only to PUBLIX supermarkets

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Sales • 2006: $212.4 million• $179.5 million FYTD July vs. $177.2 million in July FYTD 2006 (up $2.3M; +1.3%)

Contracts• Total contractor reimbursement: $4.5 million

Employees• Total employed: 2,030 • Annual payroll: $23.7 million

Economic Impact• Local produce—150 line items, 5.8 million pounds, $6.8 million (25% of total)• $28.2 million total

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Promotes: Recruitment, Readiness, Retention

• Recruit the individual—retain the family

Community focal point

Outreach

• Family Day

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15.322.1Inventory Turns

45,00016,829Avg. Number of SKU’s

34,14731,392Avg. Sq. Ft. per Store

$30.86$60.76Avg. Transaction

$ 7.12$16.15Weekly Dollar Sales per Sq. Ft. of Sales Area

$297,496$506,968Avg. Sales per Week

15.322.1Inventory Turns

45,00016,829Avg. Number of SKU’s

34,14731,392Avg. Sq. Ft. per Store

$30.86$60.76Avg. Transaction

$ 7.12$16.15Weekly Dollar Sales per Sq. Ft. of Sales Area

$297,496$506,968Avg. Sales per Week

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“Clean Audit Opinion” Fifth 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

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Best customer identity theft protection

• Latest encryption in DoD

• Strong firewalls and intrusion detection protect

confidential data

Annual FISMA and Privacy Act compliance

certification

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Scholarship program• Applications: 39,927

• Recipients: 3,532

• Dollars awarded: $5,506,000

Voter Assistance & Military One-Source

Spouse & family member hiring• 38% employment

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DeCA Dietitian• Promote DeCA as Nutritional Leader

• Partnership with DoD

• Partnership with TRICARE DoD Nutrition Committee

• “Ask a Dietitian” on www.commissaries.com

“Its Your Choice, Make It Healthy” Campaign

• Regional commercial grocer application

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Hawaiian Food Show• Opportunity for made in or unique to Hawaii products

• Manufacturers, brokers and distributors display, sample and present to commissary and exchange buyers and decision makers

• 1998 to present• 993 new items introduced to commissary shelves • 40 new companies/contracts

• 2007 show• Larger facility to accommodate exhibitor demand

• Doubling past years’ participation from 50 to 100

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Key initiatives

• Workforce of the Future (WoF)

• National Security Personnel System (NSPS)

• Commissary Advanced Resale Transaction System

(CARTS)

• DeCA Enterprise Business System (DEBS)

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Individualized Shopping Experience• Nutritional leader

• Creating a sense of community

• Exciting shopping experience

• Brand name recognition

• World class perishables

• Speed to shelf on new items

• Pantry loading or grab & go

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Naval Station San Diego –

Store of the Future