EX-99.1 2 exhibit991.txt MATERIALS THAT THE REGISTRANT PRESENTED IN MEETINGS WITH CERTAIN ANALYSTS. Exhibit 99.1 MAY The May Department Stores Company Lord & Taylor Famous Barr Filene's Foley's Hecht's Kaufmann's L.S. Ayres Marshall Field's Meier & Frank Robinsons May Strawbridge's The Jones Store David's Bridal After Hours Formalwear Priscilla of Boston _______________________________________________________________________________ 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 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 - 2003 operating cash flow: $1.7 billion - Capital expenditures: $550 million - Investing: $550 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 PLANNING AND ALLOCATION - Increase sales - Reduce markdowns - Decrease inventory levels _______________________________________________________________________________ MAY INITIATIVES - Differentiated merchandise - Grow better segments - Grow younger businesses - Improve the shopping experience _______________________________________________________________________________ MAY DIFFERENTIATED MERCHANDISE - Proprietary merchandise - Newness and fashion - Traffic generators _______________________________________________________________________________ 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 Hotel Suite [Merchandise Photo] _______________________________________________________________________________ MAY NEWNESS AND FASHION Genuine and Faux Fur [Merchandise Photo] _______________________________________________________________________________ MAY TRAFFIC GENERATORS Tech Gift Centers [Merchandise Photo] _______________________________________________________________________________ MAY GROW BETTER SEGMENTS Lauren Ralph Lauren [Merchandise Photo] _______________________________________________________________________________ MAY GROW BETTER SEGMENTS Calvin Klein [Merchandise Photo] _______________________________________________________________________________ MAY GROW BETTER SEGMENTS Jones Signature [Merchandise Photo] _______________________________________________________________________________ MAY GROW BETTER SEGMENTS Michael by Michael Kors [Merchandise Photo] _______________________________________________________________________________ MAY GROW YOUNGER BUSINESSES 19- To 30-year-olds 31- to 44-year-olds [Merchandise Photos] _______________________________________________________________________________ MAY GROW YOUNGER BUSINESSES Proprietary Brands - Ideology - i.e. - Brandini [Merchandise Photos] _______________________________________________________________________________ MAY GROW YOUNGER BUSINESSES Bridal Group - David's Bridal - After Hours Formalwear [Merchandise Photos] _______________________________________________________________________________ MAY Imagination! - Casual - Tailored [GRAPHIC] _______________________________________________________________________________ MAY Imagination! [Merchandise Photo] _______________________________________________________________________________ MAY Imagination! [Merchandise Photo] _______________________________________________________________________________ MAY BETTER EDITED MERCHANDISE Wider Aisles and More Open Departments [Merchandise Photo] _______________________________________________________________________________ MAY MORE FASHION GUIDANCE Assemble Outfits and Translate Trends [Merchandise Photo] _______________________________________________________________________________ MAY MORE INFORMATION Directional Signage and Price Checkers [Store Photo] _______________________________________________________________________________ MAY EASIER TRANSACTIONS Point-of-sale equipment [Equipment Photo] _______________________________________________________________________________ MAY LORD & TAYLOR - Repositioning as upscale retailer - Distinctive fashion and style _______________________________________________________________________________ MAY LORD & TAYLOR - 32 stores to be divested - 25 stores closed _______________________________________________________________________________ MAY LORD & TAYLOR [Map] _______________________________________________________________________________ MAY BRIDAL GROUP - David's Bridal - After Hours Formalwear - Priscilla of Boston [Merchandise Photo] _______________________________________________________________________________ MAY BRIDAL GROUP $600 Million Sales in 2003 [Merchandise Photo] _______________________________________________________________________________ MAY EXPENSE MANAGEMENT - Strong financial disciplines - Culture of continuous improvement _______________________________________________________________________________ MAY _______________________________________________________________________________