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Safe Harbor Statement

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are based on current expectations and are indicated by words or phrases
such as “anticipate, “estimate,” “expect,” “project,” “plan,” “we believe,” “will,” “would,” “guidance,” and similar
words or phrases, and involve known and unknown risks, uncertainties and other factors which may cause actual
results, performance or achievements to be materially different from the future results, performance or achievements
expressed in or implied by such forward-looking statements.

Detailed information concerning those risks and uncertainties are readily available in the Company’s filings with the
U.S. Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise.

Where indicated, certain financial information herein has been presented on a non-GAAP basis. This basis adjusts for
non-recurring items that management believes are not indicative of the Company’s underlying operating performance.
These measures may not be directly comparable to similar measures used by other companies and should not be
considered a substitute for performance measures in accordance with GAAP such as operating income and net
income. Additionally, a reconciliation of the projected non-GAAP EPS, which are forward-looking non-GAAP financial
measures, to the most directly comparable GAAP financial measures, is not provided because the Company is unable
to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the
uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-
GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as restructuring
charges, acquisition and integration related expenses, asset impairments and the tax effect of all such items. As
previously stated, the Company has historically excluded these items from non-GAAP financial measures. The
Company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures
and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events
that typically lead to the recognition of non-GAAP adjustments, such as actions under the Company's Change for
Growth program, or acquisition and integration expenses, are inherently unpredictable as to if or when they may
occur. For the same reasons, the Company is unable to address the probable significance of the unavailable
information, which could be material to future results. Reference should be made to the Company’s earnings releases
filed on Form 8-K for the nature of such adjustments and for a reconciliation of such non-GAAP measures to the
Company’s financial results prepared in accordance with GAAP.
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Company
Overview

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Largest specialty apparel retailer focused
exclusively on women and girls

($ billions)
TTM Net Sales
$ 15.5

$ 12.3

$ 6.6

$ 3.7 $ 3.6 $ 3.3


$ 2.5 $ 2.4 $ 2.3 $ 2.1 $ 1.8
$ 0.9 $ 0.9
$ 0.4

Children's
Abercrombie

Lululemon

& Company
Outfitters

Christopher
Buckle
ascena

American Eagle
Gap

Express
J. Crew
L Brands

Chico's

New York

& Banks
Urban

Place
Outfitters

& Fitch

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Well-diversified brand portfolio…

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…with balanced revenue contribution

Ann
Justice Taylor
15% 11%

Catherines
5%
LOFT
23%
Lane
Bryant
16%

dressbarn maurices
14% 16%

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Continued growth in digital channel…

y-o-y direct transaction growth

21.5%

15.2% 15.4%
13.5% 13.9%

9.6%

FY17 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY18 Q1 FY18 Q2 QTD

Note: FY17 Q3 excludes Plus segment startup period on new ecom platform 7
…supported by integrated omni-channel
platform capability

Lane
Ann Taylor LOFT maurices dressbarn Bryant Catherines Justice

Oracle ATG web platform ✓ ✓ ✓ ✓ ✓ ✓ ✓


Adaptive / Responsive
Mobile Website ✓ ✓ ✓ ✓ ✓ ✓ ✓
Ship from Store ✓ ✓ ✓ ✓ ✓ ✓ ✓
Order in Store ✓ ✓ ✓ ✓ ✓ ✓ ✓
Buy online, pick-up in store
(BOPIS) ✓ ✓ Under consideration at remaining brands

Ship to Store ✓ ✓ ✓ ✓ ✓ ✓
Find in Store ✓ ✓ ✓ ✓ ✓ ✓ ✓
Late Late Late Late
Multi-tender loyalty 2018 2018 ✓ 2019
2018 2018 ✓
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Diversified brick and mortar revenue base across
multiple real estate formats and landlord base

Real Estate Format Landlord Base


(% of total fleet)

Lifestyle &
Downtown
11%
Landlords
Outlet Landlords with 1-5
Strip
15% Stores;
Centers with > 25
44% Stores; 36%
45%

6-15
Enclosed
Stores;
Malls
30% 16-25 11%
Stores; 9%

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Transformation –
our path forward

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Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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We have transitioned to an operating model
that drives focus and accountability

Prior model

CEO

President President President President President President


COO
Premium maurices dressbarn Lane Bryant Catherines Justice

Current model
CEO

President / CEO President / COO


ascena Brands brand services

Product & Customer Service Delivery Platform


Responsibility Responsibility 12
Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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Customer-centricity is key to delivering consistent
product and merchandising execution

 Customer Insights ‘Center of Excellence’;


common methodology and shared best
practices to develop brand / product strategy

 Brand-specific customer panels to inform


product assortment and pricing opportunities

 Unique, brand-appropriate product


assortment; balance fashion newness,
updated essentials, and key category
distortions

 Shorter product lifecycle, amplified by


introduction of new speed models

 Seamless omni-channel experience;


enhanced product and storytelling
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Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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Roughly two-thirds of fleet leases expire or have
actionable kick-outs before July 2020

95% of fleet is cash flow positive

Q1 FY18 TTM Comp 4-Wall EBITDA (% of fleet) Next Lease Action Date (% of fleet)

29%
29% Median life 1.8 years

21%
21%
19% 17%

11% 11% 11%


11%
7%
5% 5%

<0 0-100 100- 200- 300- 400- >500 FY18 FY19 FY20 FY21 FY22 FY23+
200 300 400 500
($000) 16
Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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Investing over $40M in FY18 to enhance
analytic capabilities; expected ROI of 3x – 4x

 Merchandising systems
Raw Data
– Markdown / size pack optimization Internal
Sources
– Advanced demand planning maurices

– Enhanced allocation dressbarn

Lane Bryant

 Marketing Catherines
User Layer
– Enable personalization for our 27 Ann Taylor
million active customers
LOFT
– Develop and enhance our loyalty
Justice
and private label credit programs

 Advanced analytics External


Sources Data Marts

– AI / machine learning for decision Weather Partners

support
Campaign Reporting Analytics
Social IoT

APT Profitect Etc.


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Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities across all decision


support functions

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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We are exploring four new sources of growth,
leveraging historical investments

Domestic Points of
International
Distribution

Transformative
Growth
Opportunities

Cacique Third Party


Expansion Services

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Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities across all decision


support functions

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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We are on track to take out $300M of structural cost by
July 2019…

$300M

$50M

$50M

$100M

$100M

Operating Non-Merch IT Fleet Total Cost


Model Procurement Efficiency Optimization Takeout

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…and we expect platform savings will result in meaningful
profit flow-through with improved merchandising execution

($ millions) Fiscal 2017 EBITDA Bridge

$644

$213 $528
$63

$96
$75
$4 $16

FY16 Negative OpEx Store Variable ANN Transformation FY17


Adjusted 5.4% Comp Inflation Closures Expense Flex Synergies Savings Adjusted
EBITDA EBITDA

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Roadmap in place to significant savings through FY19,
and we are developing incremental opportunities

($ millions)

ANN Synergies $164


$159
Change for Growth

$129
$63

$114

$104

$96

$56 $50
$7 $25 $26

FY15 FY16 FY17 FY18 (E) FY19 (E) FY20 (E)


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Path to success

 Leverage executive team strengths through new operating model

 Deliver strong, consistent merchandising execution

 Create agility in real estate portfolio

 Drive digital fluency and enhanced capabilities across all decision


support functions

 Leverage brands and operating platform

 Attack structural cost

 Maintain strong liquidity position and maximize balance sheet


flexibility

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While we are comfortable with our capital structure, we
remain committed to de-leveraging our balance sheet

 Ending Q1 fiscal 2018 liquidity of $844 million

 Manageable debt levels


– Net debt to TTM EBITDA of 2.5x
– Strong interest coverage of 5.8x

 Covenant light term loan, with maturity in August 2022;


remaining balance of $1,574 million, with amortization prepaid
through August 2018

 Significant repatriation opportunity

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Capital expenditures approaching steady-state levels,
with ongoing investment focused in key growth areas

($ millions)

$483
$64

$372
$97
$336
$299 $95
Supply Chain $67 $16
$91 $27 Guidance
$33 $27
Corp. Facilities $224 $190M - $220M
Technology $63 $94 $98 $46 $20

$87
$231 $125
Stores $173 $162 $152
$91
$55

FY13 FY14 FY15 FY16 FY17 FY18

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In closing

 Transforming the company to be a lean, aggressive competitor

 Well-positioned for significant profit flow-through on


merchandising execution improvements

 Investing in advanced technology and capabilities required to


compete and win in an evolving marketplace

 Strong liquidity position and improving balance sheet

 New business opportunities

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