EX-99.1 2 exhibit991.txt MATERIALS PRESENTED IN MEETINGS WITH CERTAIN ANALYSTS Exhibit 99.1 _____________________________________________________________________________ MAY _____________________________________________________________________________ MAY The May Department Stores Company Lord & Taylor Famous Barr Filene's Foley's Hecht's Kaufmann's LS Ayres Marshall Field's Meier & Frank Robinsons May Strawbridges The Jones Store David's Bridal After Hours Formalwear Priscilla of Boston _____________________________________________________________________________ MAY MARSHALL FIELD'S Acquisition [Merchandise Photo] _____________________________________________________________________________ MAY MARSHALL FIELD'S 62 Stores [Map] Department Stores May - 438 Marshall Field's - 62 _____________________________________________________________________________ MAY STRATEGIC RATIONALE - Chicago, Minneapolis and Detroit - 2003 revenues: $2.6 billion - 2003 EBIT: $107 million - Expense and merchandise synergies _____________________________________________________________________________ MAY FINANCIAL PERFORMANCE 2003 ROE 15.8% Sales $13.3 Billion EPS* $1.98 Cash Flow $ 1.7 Billion * before restructuring expenses and tax credit _____________________________________________________________________________ MAY CAPITAL STRUCTURE - $3.2 billion cash purchase - Long-term debt: $2.2 billion - Short-term debt and cash: $1 billion - Impact on debt/capital _____________________________________________________________________________ MAY STRONG CASH FLOW - Investing $600 million - Reducing debt - Dividends _____________________________________________________________________________ MAY DIVIDENDS - 97 cents per share - Increased for 29 years - Uninterrupted for 93 years _____________________________________________________________________________ MAY GROWTH - Department stores - Bridal Group - Other opportunities _____________________________________________________________________________ MAY INITIATIVES - Differentiated merchandise _____________________________________________________________________________ MAY NEWNESS AND FASHION Genuine and Faux Fur [Merchandise Photo] _____________________________________________________________________________ MAY NEWNESS AND FASHION Ponchos and Argyles [Merchandise Photo] _____________________________________________________________________________ MAY PROPRIETARY BRANDS Karen Scott i.e. All Mine Exceed Q & A Marsh Landing John Ashford Erika Taylor Intimates Brandini Amanda Smith Valerie Stevens Christie Brooks Just Friends Ideology Sun Covers Pacer by Karen Scott Emerge Moonbeams Lord & Taylor Grant Thomas Metropolitan by Lord & Taylor Context Angel Fish Global I.D. Spotted Frog Identity by Lord & Taylor Kate Hill _____________________________________________________________________________ MAY PROPRIETARY BRANDS Ideology [Merchandise Photo] _____________________________________________________________________________ MAY PROPRIETARY BRANDS i.e. and i.e. relaxed [Merchandise Photo] _____________________________________________________________________________ MAY PROPRIETARY BRANDS Valerie Stevens Cashmere [Merchandise Photo] _____________________________________________________________________________ MAY PROPRIETARY BRANDS Brandini [Merchandise Photo] _____________________________________________________________________________ MAY PROPRIETARY BRANDS Hotel Suite [Merchandise Photo] _____________________________________________________________________________ MAY PROPRIETARY BRANDS House Beautiful [Merchandise Photo] _____________________________________________________________________________ MAY TRAFFICE GENERATORS Tech Gift Centers [Merchandise Photo] _____________________________________________________________________________ MAY Giftables [Merchandise Photo] _____________________________________________________________________________ MAY INITIATIVES - Differentiated merchandise - Grow better segments _____________________________________________________________________________ MAY GROW BETTER SEGMENTS Michael by Michael Kors [Merchandise Photo] _____________________________________________________________________________ MAY GROW BETTER SEGMENTS Lauren Ralph Lauren [Merchandise Photo] _____________________________________________________________________________ MAY GROW BETTER SEGMENTS Calvin Klein and Jones Signature [Merchandise Photo] _____________________________________________________________________________ MAY GROW BETTER SEGMENTS Calvin Klein and Michael Kors [Merchandise Photo] _____________________________________________________________________________ MAY INITIATIVES - Differentiated merchandise - Grow better segments - Grow younger businesses _____________________________________________________________________________ MAY GROW YOUNGER BUSINESSES - 19-30 year olds - 31-44 year olds [Merchandise Photo] _____________________________________________________________________________ MAY GROW YOUNGER BUSINESSES Proprietary Brands - Ideology - i.e. - Brandini [Merchandise Photo] _____________________________________________________________________________ MAY GROW YOUNGER BUSINESSES Bridal Group [Merchandise Photo] _____________________________________________________________________________ MAY IMAGINATION! - Casual - Tailored [Graphic: Floor Layout] _____________________________________________________________________________ MAY IMAGINATION! [Occasion Merchandising Photo] _____________________________________________________________________________ MAY IMAGINATION! [Occasion Merchandising Photo] _____________________________________________________________________________ MAY INITIATIVES - Differentiate merchandise - Grow better segments - Grow younger businesses - Easier, faster, more enjoyable shopping _____________________________________________________________________________ MAY BETTER EDITED MERCHANDISE Wider Aisles and More Open Departments [Floor Layout Photo] _____________________________________________________________________________ MAY MORE FASION GUIDANCE Assemble Outfits and Translate Trends [Merchandise Photo] _____________________________________________________________________________ MAY MORE INFORMATION Directional Signage and Price Checkers [Photo] _____________________________________________________________________________ MAY EASIER TRANSACTIONS Smart Terminals [Photo] _____________________________________________________________________________ MAY LORD & TAYLOR - Repositioning as upscale retailer - Distinctive fashion and style _____________________________________________________________________________ MAY LORD & TAYLOR - 32 stores to be divested - 19 stores to be closed by year-end _____________________________________________________________________________ MAY LORD & TAYLOR [Map] _____________________________________________________________________________ MAY BRIDAL GROUP David's Bridal After Hours Formalwear Priscilla of Boston [Merchandise Photo] _____________________________________________________________________________ [Bridal Merchandise Photo] _____________________________________________________________________________ MAY EXPENSE MANAGEMENT - Strong financial disciplines - Culture of continuous improvement _____________________________________________________________________________ MAY _____________________________________________________________________________