Stan Lucas 1998David McMurry 2000

FACS MissionFACS 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?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 Employees 115,000 Total Sales $15.7 billion Net Income $604 million Operating States 34 + Guam & Puerto Rico

Federated Divisions & BrandsFederated Divisions & Brands

13 Retail Divisions and Support Operations9 Exclusive Brands

Federated Department Stores Inc.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 FACSFACS

Merchandising Divisions Support Divisions

Capital PlanCapital Plan2001-20032001-2003

Exsisting Stores andExpansionsNew Stores

Technology

Direct-to-Consumer

The FACS Group...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.Tempe, AZ.

Cincinnati, OH.Cincinnati, OH.

Clearwater, FL.Clearwater, FL.

FACSFACS

FinancialFinancial AdministrativeAdministrative Credit ServicesCredit Services

2001 FACS Functional Chart2001 FACS Functional Chart

Financial, Administrative and Credit ServicesFinancial, Administrative and Credit Services(FACS)(FACS)

F D S B a nk F A C S B u sin e ssP lan n in g & F in an ce

F ina n cia l S erv ices B a nk rup tcy S e rv ices

Financial

Financial, Administrative and Credit ServicesFinancial, Administrative and Credit Services(FACS)(FACS)

F A C SH u m a n R e so urces

F D SE m p lo yeeS erv ic es

F D SP ay ro ll

F D SB e ne fi ts

F e de ra te d (FD S )H u m a n R e s o u rces

S erv ic es

F A C SA dm in istra t ive

S erv ic es

Adm inistrative

Financial, Administrative and Credit ServicesFinancial, Administrative and Credit Services(FACS)(FACS)

C red it M arketing N ew Bu sinessM arketing

Te lem arke ting M ail & P honeO rd er

Th ird Pa rtyC h arg eba ck

State me ntProcessing a nd

M ailing

PaymentP rocessing

C redit Ca rd andM icroficheProd u ction

S erv ices

C red it C ustom erSe rv ice

C o llections

N ew Accoun ts Au thorization

R iskM a nagement

Pe ir On e C red itO pera tions

FraudPrev ention

Syste msD eve lopment

O pera tion s

Credit Serv ices

Executive Development Program Executive Development Program Requirements Requirements

Strong Leadership Abilities Excellent Interpersonal Skills All Majors May/June 2003 Graduates We’re looking for Future Leaders of the

Company

Executive Development ProgramExecutive 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...Skills learned with eachassignment are reinforced and assignment are reinforced and strengthened throughout your strengthened throughout your

career at FACS.career at FACS.

Executive Career PathExecutive Career Path You start your career as an executive with FACS!!!

EDP ManagerManager

Lead Associate

Associate

Director

Vice President

CEO

Executive Development Program Executive Development Program Training Features:Training Features:

On-the-Job Training FACS Academy Classroom TrainingFACS Academy Cross TrainingBoard Presentation

FACS Academy TrainingFACS 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 CultureFACS Corporate Culture

Open Door PolicyCasual yet Professional EnvironmentState-of-the-Art Facility Industry Leader

FACS Culture in ActionFACS Culture in ActionPeople Development

Quarterly Review Program Mentor Program

Fun 70 Associate Events FACS Softball Diamond FACS Outdoor Volleyball Court

FACS Partners In TimeFACS 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 CharitiesFederated’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!!!Over $15 Million were donated to charities last year!!!

FACS ActivitiesFACS 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 DemographicsFACS Associate DemographicsAGEAGE

Average Age 37 Years

under 20 years 7%20-29 years 37%30-39 years 21%over 40 years 35%

FACS Levels and PopulationFACS Levels and PopulationTotal Exempt380 Chairman/CEO 1 President 1 Sr. Vice President 4 Vice President 14 Managing Director 9 Director 55 Manager 296

Total Non- Exempt 3,729 Lead Associate 660 Associate 3,069

Total PopulationTotal Population 4,1094,109

Associate

Supervisor

M anager

Director

M anagingDirector

V ice President

SeniorV ice President

President

Chairm an/CEO

THIS IS WHY YOU WENT TO THIS IS WHY YOU WENT TO COLLEGE!COLLEGE!

Retailing – a large and growing industryA fun, exciting and fast-paced workplaceAbundant opportunity and rapid

advancementFederated as an industry leader and

innovatorWWW.RETAILOLOGY.COM