How does this rotary encoder work with only 3 pins used?

Emily, there are no part numbers on the encoder, I de-soldered it and couldn't see any numbers on the encoder at all. There are numbers on the breakout board (JT6.352.035V3.0 and 2017901) but nothing seemed to come up on a google search for it.

I think I may have made a mistake here as the single pin on the socket IS connected to a pin on the encoder - for some reason I just cannot find the track ....

As far as the output goes, I hadn't got to that stage as I couldn't find any info on how to wire it up. All the tutorials I has saw shows a VCC pin on the breakout board but don't seem to show VCC on the rotary encoder without the breakout board, confusing