AUXILIARY SERVICES DIVISION UNIVERSITY OF GEORGIA BOOKSTORE

Summary of Major Accomplishments The University of Georgia Bookstore leveraged customer options in Fiscal Year 2011 through a variety of course material choices including textbook rental, electronic textbooks, custom textbooks, as well as used and new textbooks. The Rent-A-Text program provided the following results to students:

up-front cost savings; purchases and returns both online and in-store for students; highlighting and note-taking permitted; payment flexibility including campus cards; help in personal decision to rent v. purchase; and convenience of renting now and purchasing later.

In addition, Rent-a-Text provides the following benefits to the University and bookstore:

drives student course materials use; partners with a proven record of successful bookstore management; improves store performance and creates growth opportunities for associates; sustains bookstore competition; builds customer relations to the bookstore; and drives sell-through.

This past year, Follett launched the next evolution of CaféScribe, a more flexible and even better performing digital textbook platform. The new CaféScribe features improved note-taking and highlighting, as well as enhanced organizational tools for easier searching and sorting. Featuring more than 14,000 titles, the new platform also offers better collaboration tools for students and faculty. The new CaféScribe is now mobile-friendly, enabling students to read textbooks on any tablet or Smartphone via a Web browser. CaféScribe offers digital textbooks (or eBooks) that meet the needs of today’s tech-savvy and budget-conscious student. CaféScribe extends faculty and student collaboration beyond the classroom with powerful features such as:

instructor customization capabilities; interactive note-taking and collaborative learning opportunities; and instant searching of text, notes and supporting documents.

This year Follett launched an entirely new customer experience on ugabookstore.com to improve the shopping experience for students and the campus community. The result of the redesign is a more user-friendly site that puts bookstore products front and center.

D-59

Site enhancements include:

simplified navigation; the addition of more featured items; an events section; improved category pages; sharing tools; enhanced “add to cart” functionality; and a new mobile site.

The bookstore continued to focus on developing new relationships and continuing successful partnerships with organizations throughout campus. The bookstore hosted a number of events throughout the year within the store and participated in a variety of events at locations throughout campus. The UGA Bookstore collaborated with the UGA Alumni Association to host the following events: Alumni Shopping Night, Faculty Author Reception, Parents Council Breakfast and Graduation Celebrations. The UGA Bookstore worked with the College of Agriculture and Environmental Sciences to sell UGA merchandise at the Sunbelt Agriculture Expo in Moultrie, Georgia. Other events included the 42nd Annual Children’s Literature Conference, Harriett Austin Writers Conference, 50th Anniversary of Desegregation Lectures, and the College of Education’s CSSE Summer Institute Conference. As the official bookstore retailer on campus, the bookstore is often approached for donations, sponsorships, partnerships and other arrangements on campus. Such participation provides the bookstore with the opportunity to demonstrate that it plays an active role in the community. More than 50 organizations on campus received donations, including: UGA Graduate School, Finance and Administration, College of Education, African-American Cultural Center, UGA Alumni Association, Student Life, Graduate School Outreach and Diversity Office, Homecoming Executive Board, Relay for Life, UGA Miracle, UGA Office of Admissions, UGA Housing Office, Visitors Center, Office of Sustainability, College of Agriculture, UGA Gwinnett Campus and many more. The University of Georgia Bookstore joined the Clarke County School District’s Adopt-A-Class program and spent one morning a month throughout the school year talking to eighth grade students at Clarke Middle School about acquiring job skills. The bookstore continued to take part on the Commencement Committee and joined the Committee on Compliance with Consumer Information. The University Bookstore continued to offer $12,000 in annual bookstore scholarships, collaborating with the Office of Student Financial Aid, which selects each recipient. A comprehensive secret shopper program measured performance with the UGA bookstores scoring an average of 94.5% for FY 2011, an improvement of 3.78% over last year.

D-60

Readers of the Athens-Banner Herald chose the UGA Bookstore as first place Bulldog memorabilia store for 2011. The UGA Bookstore partnered with the UGA Athletic Association to offer merchandise sales at more than 100 events in 2011 including all home football games; men’s and women’s basketball games; baseball games; gymnastics meets; NCAA events in tennis, track and field, swimming and diving, and softball; and commencement ceremonies. Summary of FY 2012 Goals To continue the mission of making the University of Georgia Bookstore an anchor in the campus community, the following goals for the bookstore team have been set. In an increasingly competitive marketplace, the UGA Bookstore will increase its market share by:

driving adoption compliance, ensuring more adoptions arrive by term deadlines; driving in-store traffic with a robust marketing plan; continuing efforts to encourage the use of ugabookstore.com; encouraging the use of eBooks and other digital formats; meeting one-on-one with faculty to build relationships; and promoting custom merchandise ordering to faculty and staff.

The UGA Bookstore will make every shopping experience superb by:

o continuing to enhance merchandise choice; o continuing in the delivery of exceptional customer service; o growing overall scores on all Secret Shopper Reports; and o continuing the mission to educate and train staff through a comprehensive

Customer Service Program.

The University of Georgia Bookstore will continue to promote the textbook rental program and collaborate with faculty and vendors to offer course materials that can generate cost savings for students while ensuring that they come to class equipped to learn. The bookstore also will continue to explore the growing digital textbook landscape to offer students and faculty leading edge materials.

D-61

(1) Includes a distribution of interest income (2) Includes a distribution of administrative expense

UNIVERSITY BOOKSTORE

FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED JUNE 30, 2011

FY 2011 FY 2010

YEAR TO PERCENT OF YEAR TO PERCENT OF DATE REVENUE DATE REVENUE

Revenue (1) $ 1,205,943 100.0% $ 1,231,831 100.0%

Cost of Goods - 0.0% - 0.0%

Gross Profit 1,205,943 100.0% 1,231,831 100.0%

Operating Expenses:

Personal Services - 0.0% - 0.0% Direct Expenses (2) 301,102 25.0% 160,767 13.1% Indirect Expenses 133 0.0% 97 0.0%

Total Operating Expenses 301,235 25.0% 160,863 13.1%

Net Operating Income 904,708 75.0% 1,070,968 86.9%

Transfers:

Depreciation 90,110 7.5% 90,110 7.3% Debt Service - 0.0% - 0.0% Other Transfers - 0.0% - 0.0%

Total Transfers 90,110 7.5% 90,110 7.3%

Net Income $ 814,598 67.5% $ 980,858 79.6%

D-62

Store Director

James Dwyer

Course Materials Manager

Robert Newsome

Course Materials Manager

Chris Sutton

Team Lead Course Materials

Part-Time

Course Materials

Assistant Director

Robert Bailey

Team Lead Accounting

Part-Time

Accounting

Customer Service Manager

Tracey Holder

Team Lead

Customer Service

Part-Time

Cashiers

Department Manager GM

Chuck Upton

Dept Manager

Concessions

Kristyne Wood

Team Lead

GM/ Mail Order

Part-Time

GM

Department Manager Trade

Jonathan Hall

Dept Manager Computers

Cameron Forshee

Team Lead

Trade

Part-Time

Trade

Shipping & Receiving Mgr

Blake Brown

Team Lead

Receiving

Part-Time

Receiving

Gwinnett Bookstore Supervisor

Victoria Vandecar

AUXILIARY SERVICES DIVISIONUNIVERSITY OF GEORGIA BOOKSTORE

ORGANIZATION CHART

D-63