Macy's Inc · NYSE:M
Macy's — Non-Deal Roadshow (October 2023)
35 slides from Macy's's roadshow presentation, October 2023
Slide 1: Off-Season 2023 Shareholder Outreach
Off-Season 2023 Shareholder Outreach October 2023
Slide 2: Safe Harbor Statement
Safe Harbor Statement All forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those in the forwa
Slide 3: Contents
Contents • Macy’s, Inc. Transformation o Timeline of Key Initiatives o Leadership Transition o Spring 2023 Performance o Five Growth Vectors o Capital Allocation • Social Purpose o Sustainability o Diversity, Equity & Inclusion • Compensation • Governance Profile
Slide 4: Macy's, Inc. Transformation
Macy’s, Inc. Transformation
Slide 5: Modern Department Store Transformation
Modern Department Store Transformation Timeline of key initiatives from FY19-1H23 Bloomingdale’s Private Brand Unveiled capital Refinanced and paid celebrated 150th And Now This allocation down debt: re- anniversary Formally Launched strategy, paid laddered debt introduced 6th down secured maturitie
Slide 6: Macy's, Inc. Leadership Transition
Macy’s, Inc. Leadership Transition Announced in March 2023 Jeff Gennette, Chairman and CEO Tony Spring, President and CEO-Elect Adrian Mitchell, COO and CFO After 5+ years as CEO, retiring in February Will assume the CEO role in February In addition to prior CFO responsibilities, 2024. Jeff will rem
Slide 7: Spring Season 2023 Performance Highlights
Spring Season 2023 Performance Highlights 1H23 Highlights Financial Health $10.1B 39.0% ~4 yrs $1.2B 2.0x Net Sales Gross Margin Rate No Material Less Debt on FY22 Adjusted Debt Maturities the Balance Debt-to- Sheet FY22 vs. Adjusted FY19 EBITDAR Leverage Ratio -10% 7.8% $0.82 $25M $90M YOY Change i
Slide 8: Five Growth Vectors
Five Growth Vectors Strategic investments designed to fuel future profitable sales growth Macy’s Private Brand Reimagination Designed to drive customer loyalty, be a differentiator for the business, complement our national brand matrix, drive sales and benefit gross margin. • Recently launched On 34
Slide 9: Growth Vector Spotlight: Macy's Private Brand Reimagination
Growth Vector Spotlight: Macy’s Private Brand Reimagination Designed to drive customer loyalty, be a differentiator for Macy’s, complement our national brand matrix, drive sales and benefit gross margin Private Brand Reimagination • Creating a portfolio that is differentiated, defendable and durable
Slide 10: Growth Vector Spotlight: Small-Format Off-Mall Locations
Growth Vector Spotlight: Small-Format Off-Mall Locations Locations play an integral role in supporting Macy’s, Inc.’s omnichannel ecosystem Small-Format Off-Mall Strategy • Small-format off-mall stores are ~1/5 the size of on-mall locations, offering curated and localized private and top market bran
Slide 11: Capital Allocation Strategy
Capital Allocation Strategy The company will continue to take a balanced approach to capital allocation with an ongoing focus on maintaining a healthy balance sheet, investing in the business and returning capital to shareholders • Well-positioned for access to bank and capital market funding under
Slide 12: Social Purpose
Social Purpose
Slide 13: Creating a brighter future with bold representation for all
Creating a brighter future with bold representation for all Our signature commitment: Consumers have a rising expectation $5B directed to our people, partners, products and that how companies do business is as programs through 2025 to create a more important as what they sell. equitable and sustaina
Slide 14: Sustainability
Sustainability
Slide 15: Sustainability and Notable ESG Rankings
Sustainability Notable ESG Rankings* Our guiding principles The Sustainability team is a center of excellence that is embedding sustainability throughout the organization, supporting future profitable sales growth strategies while improving the company’s environmental, social, and governance perform
Slide 16: Sustainability: Four pillars of our approach
Sustainability Four pillars are key to our approach Environment Human Rights Products Governance Operational Environmental Human Rights and Social Private Brand and Market Brand Disclosure, Data Analysis, Management and Compliance Compliance Policies and Product Sustainability Reporting, and Colleag
Slide 17: Progress on Key Focus Areas
Progress on Key Focus Areas Governance Published 2022 Sustainability Report in September 2023 Environment Human Rights Products Disclosing environmental performance and Raising the bar on our social compliance Increasing sales while expanding private brands managing programs to reduce impact program
Slide 18: Diversity, Equity and Inclusion
Diversity, Equity and Inclusion
Slide 19: Diversity, Equity & Inclusion
Diversity, Equity & Inclusion OUR VISION is to be the beacon of diversity, equity and inclusion for our colleagues, customers and communities OUR MISSION is to embed diversity, equity and inclusion into how we think, act, and operate OUR FOCUS areas are Colleagues, Customers, Suppliers, Communities,
Slide 20: Diversity, Equity & Inclusion
Diversity, Equity & Inclusion We aim to reflect the diversity of our customers across all levels of our organization % Ethnic Diversity by Job Level % Female by Job Level 73% 71% 63% 64% 63% 68% 61% 45% 46% 47% 28% 29% 27% 30% 29% 26% FY 2021 FY 2022 Aug-23 Overall Managers Directors Sr. Directors O
Slide 21: Diversity, Equity & Inclusion: 2023 Key Accomplishments
Diversity, Equity & Inclusion 2023 Key Accomplishments COLLEAGUE CUSTOMER SUPPLIER COMMUNITY MARKETING Revitalized Colleague Continued roll-out of All Expanded our Business Continued to maintain $1M Exceeded 58% diverse Resource Groups (CRGs) Gender restrooms, ensuring Diversity policy and affidavit
Slide 22: Diversity, Equity & Inclusion: News, Features & Recognition
Diversity, Equity & Inclusion News, Features & Recognition
Slide 23: Compensation
Compensation
Slide 24: Total Reward Strategies for Colleague Attraction and Retention
Total Reward Strategies for Colleague Attraction and Retention Our goal is to build a rewards strategy that encourages and recognizes performance Recent Highlights: • Minimum wage is $15/hour for all colleagues, companywide • Path to Growth: Every job matters, and the Path to Growth Incentive plan (
Slide 25: Compensation Programs Grounded in Strong Governance Practices
Compensation Programs Grounded in Strong Governance Practices Align pay with company performance Incentive plans use multiple metrics to reward performance for driving company strategy and strengthening stock valuation. Leverage relative total shareholder return metric within our long-term incentive
Slide 26: Executive Compensation Philosophy
Executive Compensation Philosophy 2022 Program Design Our executive compensation structure is designed to attract, motivate, and retain executives with the skills required to formulate and implement our strategic CEO business objectives and deliver on our commitment to build long-term shareholder Ba
Slide 27: Strong Alignment between Pay and Performance
Strong Alignment between Pay Demonstrated in the outcome of our programs and Performance is at the Core of CEO Realized Compensation (‘000s) Macy's, Inc. Compensation Program • We believe our executive compensation program is competitive, strongly focused on pay-for-performance principles and approp
Slide 28: Governance
Governance
Slide 29: Corporate Governance Highlights
Corporate Governance Highlights 12 of 14 directors are independent* Lead independent director Annual board and committee evaluation Majority voting in uncontested director elections Annual election of all directors No Poison Pill plan Policy prohibiting pledging and hedging ownership of Board and co
Slide 30: Corporate Governance Highlights
Corporate Governance Highlights Directors provide mix of experience, fresh ideas, gender, age and racial/ethnic diversity Racial / Ethnic Diversity Director Tenure 14% 1 Asian >20 years 7% 2 Black 10 - <20 years 29% 7% Hispanic / 6.3 Ethnically Latino Average Diverse 8 <5 years 3 72% 5 - <10 years W
Slide 31: Additional Resources
Additional Resources Quarterly Results Annual Reports and Proxy Statements Sustainability Report Human Capital Report DE&I Report Additional ESG Resources and Reports Policies and Commitments
Slide 32: Appendix
Appendix
Slide 33: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non- GAAP financial measures provide users of the company's financial information with ad
Slide 34: Reconciliation of GAAP to Non-GAAP Financial Measures - EBITDA Excluding Certain Items
Reconciliation of GAAP to Non-GAAP Financial Measures - Earnings Before Interest, Taxes, Depreciation, and Amortization Excluding Certain Items Millions, except percentages 26 weeks ended July 29, 2023 Most comparable GAAP measure: Net income $133 Total revenue $10,453 Net income as a percent to tot
Slide 35: Reconciliation of GAAP to Non-GAAP Financial Measures - Diluted EPS Excluding Certain Items
Reconciliation of GAAP to Non-GAAP Financial Measures - Diluted Earnings Per Share, Excluding Certain Items 26 weeks ended July 29, 2023 Most comparable GAAP measure: Diluted earnings per share $0.48 Non-GAAP measure: Diluted earnings per share $0.48 Impairment, restructuring and other costs 0.01 Se