Stan Lucas1998 David McMurry2000

FACS Mission  Demonstrating excellence in our operating results, administrative processes, and personal performances.  Providing superior customer service to our credit, business, and employee customers.  Developing a corporate culture that is so positive and motivating that it provides the company with a competitive advantage.

Who is Federated?  Named to Fortune’s Global 500 List  1830 Shillito’s founded in Cincinnati  1851 Lazarus founded in Columbus, OH  1929 Federated Department Stores, Inc.  Total Department Stores 461  Total Employees115,000  Total Sales $15.7 billion  Net Income$604 million  Operating States34 + Guam & Puerto Rico

Federated Divisions & Brands  13 Retail Divisions and Support Operations  9 Exclusive Brands

Federated Department Stores Inc.  Macy’s East  Macy’s West  Bloomingdale’s  The Bon Marche’  Burdines  Rich’s / Lazarus/Goldsmith’s  Specialty Stores  Bloomingdale’s/Macy*s by Mail  macys.com/bloomingdales.com  Corporate Office  Federated Merchandising  Federated Product Development  Federated Logistics  Federated Systems Group  FACS Merchandising Divisions Support Divisions

Federated Department Stores Inc.

Capital Plan

The FACS Group...  Located in Mason, Ohio- a suburb of Cincinnati, Ohio  Established in 1989  Provides proprietary credit and administrative services for Federated Department Stores, as well as, outside companies  Third largest contributor of operating income for Federated Department Stores

Tempe, AZ. Cincinnati, OH. Clearwater, FL.

FACS FinancialAdministrative Credit Services 2001 FACS Functional Chart

Financial, Administrative and Credit Services (FACS)

Executive Development Program Requirements  Strong Leadership Abilities  Excellent Interpersonal Skills  All Majors  May/June 2003 Graduates  We’re looking for Future Leaders of the Company

Executive Development Program  1st Rotation lasting 8 months  Job Shadowing  FACS Academy Classroom Training  FACS Academy Cross Training  Executive Board Presentation  2 Future Rotations lasting 12 months...Skills learned with each assignment are reinforced and strengthened throughout your career at FACS.

Executive Career Path  You start your career as an executive with FACS!!! EDP Manager Manager Lead Associate Associate Director Vice President CEO

Executive Development Program Training Features:  On-the-Job Training  FACS Academy Classroom Training  FACS Academy Cross Training  Board Presentation

FACS Academy Training  Supervisory Skills  Diversity Awareness  Effective Interviewing Techniques  Communication Skills  Expense Administration  Preventing Sexual Harassment  Time Management  Performance Appraisals  Employment Law  Associate Motivation

FACS Corporate Culture  Open Door Policy  Casual yet Professional Environment  State-of-the-Art Facility  Industry Leader

FACS Culture in Action  People Development  Quarterly Review Program  Mentor Program  Fun  70 Associate Events  FACS Softball Diamond  FACS Outdoor Volleyball Court

FACS Partners In Time  Federated award winning program established in 1989  FACS, as well as all Federated stores and support divisions participates  In 2001, over 115,800 hours have been donated in services to the community

Federated’s Core Charities  United Way  In 2001, Federated and it’s employees contributed more than 13.1 million to United Way local campaigns  Habitat for Humanity  Bag Hunger food drive (in 2002 Federated collected over 1.5 million tons of food)  Passport Fund (established in ’97 to support AIDS-related organizations in the Macy’s markets)  Others:  Coat, food and personal items drives  Clean-up and renovation efforts throughout the community Over $15 Million were donated to charities last year!!!

FACS Activities  Hallway Golf  M.S. Walk  Blood Drive  Pizza Day  Fitness Days  FACS Birthday Celebration  Softball League  Golf League  Volley Ball League  Brown Bag Lunch Forums  Bowling League  Company Picnic  Decorating Contest  United Way Activities  Karaoke Contest  Halloween Contest  Holiday Choir  FACS Pep Band  Picnic on the Patio  Activity Fairs

FACS Associate Demographics AGE Average Age37 Years under 20 years7% years37% years21% over 40 years 35%

FACS Levels and Population Total Exempt380  Chairman/CEO1  President1  Sr. Vice President4  Vice President14  Managing Director9  Director55  Manager296 Total Non- Exempt3,729  Lead Associate660  Associate3,069 Total Population4,109

THIS IS WHY YOU WENT TO COLLEGE!  Retailing – a large and growing industry  A fun, exciting and fast-paced workplace  Abundant opportunity and rapid advancement  Federated as an industry leader and innovator 