Macy's Inc · NYSE:M
Macy's — Investor Presentation (October 2021)
32 slides from Macy's's investor presentation, Oct 12, 2021
Slide 1: Shareholder Outreach Off-Season 2021
Shareholder Outreach Off-Season 2021 October 2021 macys inc 0
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 Polaris strategy to achieve long-term sustainable top and bottom line profitability Sustainability strategy Diversity & Inclusion Total Rewards Governance profile 2
Slide 4: Polaris
*POLARIS
Slide 5: Polaris strategy priorities
Build trust and deliver value through simple, easy-to-understand pricing and promotions. Deepen core and new customer engagement through hyper-personalized loyalty ecosystem, communication and personalized experiences. Create a tech-enabled, connected omni-ecosystem that supports reimagined store ex
Slide 6: Fundamental improvements and new experiences
Fundamental improvements and new experiences Upgraded search function to Google Cloud, utilizing AI and machine learning to improve customer experience Improved experience and advanced recommendations: real-time, data-driven, help customers discover what they need or inspire them to expand shopping
Slide 7: Digitally Led Omnichannel Strategy
Digitally Led Omnichannel Strategy Our Omnichannel Ecosystem includes a strong fleet of stores in the best mall and off-mall locations that are fully integrated with online and mobile platforms Well-integrated strategy built on a strong brand leveraging every advantage of brick & mortar and every op
Slide 8: Digitally Led Omnichannel Strategy
Digitally Led Omnichannel Strategy j The pandemic reinforced the importance of our digitally-led omnichannel strategy and we are now focused on achieving $10 billion of digital sales by 2023 Sales +45% vs. Q2 2019 (pre- COVID-19) Net sales penetration of 32% (up from 22% in Q2 2019) 61% of digital d
Slide 9: Capital Allocation Highlights: 1H2021
Capital Allocation Highlights: 1H2021 Capital expenditures of $230 million, down from $501 million in 2019, due primarily to a reduction in capital projects and spend as result of COVID-19 Projected capital expenditures in FY 2022 and FY 2023 of approximately $1 billion annually Heavily focused on s
Slide 10: Sustainability
Sustainability
Slide 11: Sustainability at Macy's, Inc.
Sustainability at Macy’s, Inc. A center of excellence, working with partners across the organization Be the leader in accessible, sustainable product offerings, elevating sustainability for new audiences Shape policies that protect people, the planet and the Macy’s, Inc. brands Develop programs to i
Slide 12: Sustainability Center of Excellence
Sustainability Center of Excellence The Sustainability team is organized around three key focus areas Disclosure, data analytics and reporting Product Human rights Oversee Human Rights and Social Compliance policies, practices and compliance with 3rd party providers Ensure compliance across all Macy
Slide 13: Updates on Key Focus Areas
Updates on Key Focus Areas Published the 2020 Sustainability Report in October 2021 Product Social Compliance sets policy, strategy, process, and provides transparency on compliance through targeted reporting. This year work began to centralize social compliance for Macy’s, Bloomingdales and 3rd-par
Slide 14: Sustainability Sitelet: Small Steps, Big Change
Sustainability Sitelet: Small Steps, Big Change First Phase: Home, Apparel and Beauty Products with Third-Party Certifications/Trademarked Fibers Launch will highlight a new Private Brand, Oake that has been designed to use sustainable alternatives where possible. SUSTAINABILITY Small steps, big cha
Slide 15: Diversity & Inclusion
Diversity & Inclusion
Slide 16: Diversity & Inclusion Vision, Mission and 5 Focus Areas
MARKETING: Consistently and genuinely reflect the full spectrum of our customers in our imagery, messages and experiences COMMUNITY: Drive impact through relationships that reflect our goals and values SUPPLIER: Drive growth with underrepresented suppliers CUSTOMER: Ensure every customer is welcomed
Slide 17: Diversity & Inclusion Our Journey
Diversity & Inclusion Our Journey DIVERSITY AND INCLUSION ICON OF STYLE EARLY 2000S Business case for diversity focused on compliance & representation managed brand reputation through relationships with influential community leaders established security monitor role to mitigate risk launched custome
Slide 18: Increased Ethnic Diverse Representation at all Levels
Diversity & Inclusion Increased Ethnic Diverse Representation at all Levels DIVERSITY AND INCLUSION The number of VP+ has remained consistent since July 2020 Diverse turnover at VP+ is lower than non-diverse turnover in 2021 Female representation remains a strength at Macy’s – where over 72% of our
Slide 19: Diversity & Inclusion 2021 Key Accomplishments
Diversity & Inclusion 2021 Key Accomplishments Celebrated a decade of the Workshop at Macy’s with expanded class size Launched Icons of Style, a collaboration with 5 Black fashion designers Expanded portfolio of diverse suppliers Strengthened program infrastructure with support from executive champi
Slide 20: Diversity & Inclusion What's Ahead
Diversity & Inclusion What’s Ahead DIVERSITY AND INCLUSION Accelerate the Work from 2021 Drive Action, Transparency & Accountability • Further an inclusive culture: leverage feedback from colleagues and create opportunities to further education, drive meaningful dialogue and engagement • Commit to s
Slide 21: Compensation
Compensation
Slide 22: Total Reward Strategies for Attraction and Retention
Total Reward Strategies for Attraction and Retention Our goal is to build a rewards strategy that encourages and recognizes performance. Here are some recent highlights: Due to the challenges of the pandemic and the contributions of our colleagues, we provided premium pay and implemented a COVID spe
Slide 23: 2020 and 2021 Context for Incentive Plan Designs
2020 and 2021 Context for Incentive Plan Designs Macy’s, Inc. began 2020 on a transformation path to stabilize profitability and position the Company for strong future growth, driven by our comprehensive multi-year Polaris strategy initially presented at Investor Day in February 2020. Within a few w
Slide 24: Compensation Programs Grounded in Strong Governance Practices
Compensation Programs Grounded in Strong Governance Practices EXECUTIVE COMPENSATION Align pay with company performance Incentive plans use multiple metrics to reward performance for driving company strategy and align to stock price performance Leverage relative total shareholder return metric, with
Slide 25: Strong Alignment between Pay and Performance
Strong Alignment between Pay and Performance is at the Core of Compensation Program There were no changes to the target compensation levels for any of our NEOs for 2021, including base salaries and target incentive opportunities Along with our shareholders, our CEO will realize gains as the stock pr
Slide 26: 2021 Short-Term Incentive Plan
2021 Short-Term Incentive Plan In alignment with the 2021 business plans, plan design focuses key financial metrics of Sales and EBITDA and strategic initiatives The design of the 2021 short-term incentive (STI) plan reflected a transition from the unique metrics in 2020 to more customary metrics of
Slide 27: 2021 Long-Term Incentive Plan
Taking a longer view and as we get beyond the pandemic and business normalizes, we are focused on delivering on metrics that will cement our position as a digitally led omnichannel retailer For achievement of the above long-term strategic objective and to drive shareholder value, we focus on the fol
Slide 28: Corporate Governance
Corporate Governance
Slide 29: Corporate Governance Highlights
Corporate Governance Highlights CORPORATE GOVERNANACE 9 of 10 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 Board and committee oversight of risk Policy
Slide 30: Corporate Governance Highlights: Board Diversity
RACIAL/ETHNIC DIVERSITY 1 Hispanic 1 Asian American 2 African American INDEPENDENCE DIRECTOR AGE 57.2 years Average age Corporate Governance Highlights Directors provide effective mix of experience, fresh ideas, gender, age and racial/ethnic diversity GENDER DIVERSITY DIRECTOR TENURE 8.6 years Avera
Slide 31: Appendix
Appendix
Slide 32: Health and Safety Standards
Health and Safety Standards We have created an environment that enables our customers and colleagues to shop and work with safety, confidence and peace of mind. ENVIRONMENTAL SAFETY Enhance housekeeping Ensure colleagues follow enhanced cleaning measures Comply with CDC guidelines to increase ventil