{
  "docId": "019dd923-622b-71dc-a6d9-c4b955586b03",
  "docSlug": "ac649d3561f0",
  "documentTitle": "Macy's Inc. (M)",
  "authorId": "03_Starboard_Value",
  "authorName": "Starboard Value",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2016-01-11 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 5,
  "pageCount": 27,
  "prevPage": 4,
  "nextPage": 6,
  "slideType": "executive_summary",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 2,
  "notes": "Includes a call-to-action box at the bottom summarizing the valuation target.",
  "elementsJson": [
    "headline_text",
    "paragraph",
    "bullet_list",
    "callout_box",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6d9-c4b955586b03/5",
  "deckHref": "/decks/019dd923-622b-71dc-a6d9-c4b955586b03",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6d9-c4b955586b03.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6d9-c4b955586b03#slide-5",
  "components": [
    {
      "bbox": {
        "h": 0.12,
        "w": 0.94,
        "x": 0.03,
        "y": 0.76
      },
      "kind": "callout",
      "text": "By following this plan, we believe Macy's has the opportunity to create significant value for shareholders and massively improve its share price to approximately $70 per share (before value creation from further improved operations and credit card earnings), while maintaining its cash flow and real estate flexibility and reducing risk.",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bc71d67b-5f77-44f6-b43b-aab43ef4c992",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.92,
        "x": 0.04,
        "y": 0.59
      },
      "kind": "list",
      "text": "We believe shareholders want Macy's to separate or monetize its highly valuable real estate portfolio, and this plan is an intelligent and prudent way to accomplish that goal.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2f35b374-d562-4d61-97ed-43430ad4c8b2",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.92,
        "x": 0.04,
        "y": 0.68
      },
      "kind": "list",
      "text": "This plan will allow Macy's to unlock value from the real estate while maintaining a highly conservative capital structure.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "30b08ab5-5b14-4dbb-b5bd-4f7dfc2b1fb3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.92,
        "x": 0.04,
        "y": 0.5
      },
      "kind": "list",
      "text": "In addition to unlocking real estate value, we believe there is an opportunity to further improve margins in Macy's core retail business and to highlight the highly valuable cash flow stream from Macy's credit card earnings.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6556fc8e-b595-4062-a54e-26646e3fea3c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.92,
        "x": 0.04,
        "y": 0.26
      },
      "kind": "list",
      "text": "Macy's should split its real estate assets into two (or more) JVs in order to attract the appropriate partners who will pay the most for different types of assets.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "af5857a9-b877-44be-b4ab-541caae588e9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.88,
        "x": 0.08,
        "y": 0.35
      },
      "kind": "list",
      "text": "We believe it is most logical for Macy's to immediately drop down Macy's iconic stores and the substantial majority of its mall stores into two separate JVs (estimated combined value of $16.5 billion). Macy's could partner with different parties for each JV, maximizing the value of each JV, as certain parties may be willing to pay more for iconic urban properties versus mall stores, or vice versa.",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "bd1d939e-2854-49a2-882a-85c9b8d926f3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "share price: $70",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-25b3-7229-beef-cf0c70a09a8f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.92,
        "x": 0.04,
        "y": 0.15
      },
      "kind": "paragraph",
      "text": "We believe Macy's can unlock tremendous value and remain investment grade by pursuing a Joint Venture (\"JV\") transaction (or series of transactions) similar to the scenario outlined in this presentation.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6abfe74b-ff0d-4595-a00e-12e23b8dae02",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.55,
        "x": 0.04,
        "y": 0.93
      },
      "kind": "source-note",
      "text": "Source: Company filings and Starboard Value estimates. (1) Includes Herald Square, Union Square, State Street, and Downtown Minneapolis. (2) Does not include owned \"C\" mall based locations, distribution centers, ground leased mall locations, or highly valuable leases.",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "337b2f1b-0310-4e5d-aaf6-f1fda81cb401",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.05,
        "w": 0.45,
        "x": 0.04,
        "y": 0.07
      },
      "kind": "title",
      "text": "Executive summary (cont'd)",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "76b23fe8-ac5c-4727-9237-fda59c7d35c9",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [
    {
      "name": "Executive summary",
      "slug": "executive-summary",
      "agent": null,
      "layer": "slide",
      "matchId": "bbe82dcc-8a39-407c-87c6-5e954fa4b45b",
      "evidence": "type: executive_summary",
      "confidence": 0.8
    }
  ],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 5,
      "from": 1,
      "beatId": "494727b6-fb99-4df0-ab0b-43f57f543b22",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Situation & Context",
      "beatSlug": "consultants-gambit-situation-context",
      "evidence": "The document provides an executive summary and a valuation table to set the context",
      "position": 0,
      "confidence": 0.8,
      "parentBeatName": "Setup",
      "parentBeatSlug": "setup"
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}