Merger Model - The Men's Wearhouse, Inc. and JoS. A. Bank Clothiers, Inc.

($ in Millions, Except Per Share Amounts in Dollars as Stated)

Transaction Assumptions

Target - "Undisturbed" Share Price: $ 41.66 Advisory Fee %:

Premium Paid to Target's Share Price: 56.0% Debt Issuance Fee %:
Offer Price per Share: $ 65.00 Amortization Period (Years):

Price at Which Acquirer Issues Shares:
Purchase Equity Value:
Purchase Enterprise Value:
Implied LTM EV / EBITDA Multiple:
Implied LTM EV / Revenue Multiple:
$ 54.57 Breakup Fee Paid to Previous Target:
Legal and Other Fees:
Combined Minimum Cash Balance:
Pre-Deal Combined Cash Balance:

% Cash: 0.0%
% Debt: 100.0% Cash Used:
% Stock: 0.0% Debt Issued:
New Shares Issued (Millions):
Revenue Synergies % Combined Revenue: Weighted Average Acquisition Cost:
Gross Margin on Revenue Synergies: Target's "Yield":
Sensitivity Toggle for Expense Synergies:
 1.0%
3.0%
Period (Years): 5

aid to Previous Target: $ 48.0

$ 83.7

nimum Cash Balance:

bined Cash Balance:

Pre-Tax After-Tax
Amount: Cost: Cost:
0.4%

sued (Millions):
age Acquisition Cost:
Merger Model - The Men's Wearhouse, Inc. and JoS. A. Bank Clothiers, Inc. - Financial Profile of the Acquirer
($ in Millions, Except Per Share Amounts in Dollars as Stated)

Acquirer - Financial Profile

Acquirer Name: The Men's Wearhouse, Inc. Options - Treasury Stock Me

Acquirer Ticker: MW
Last Fiscal Year: 2013-12-31
Name:
"Undisturbed" Share Price: $ 35.24 Options A
Share Price as of Transaction Date: $ 54.57 Total:
Tax Rate: 34.0%

Basic Shares Outstanding (Millions): 47.605 Restricted Stock and Other

Diluted Shares Outstanding (Millions): 48.504

Equity Value: $ 2,646.9 Name:

Less: Cash & Cash-Equivalents: (59.3) Restricted Stock:
Less: Equity Investments: - Time-Based DSUs:
Less: Other Non-Core Assets, Net: - Perf.-Based DSUs:
Less: Net Operating Losses: - Total:
Plus: Total Debt: 97.5
Plus: Preferred Stock: -
Plus: Noncontrolling Interests: 14.0
Plus: Unfunded Pension Obligations: -
Plus: Capital Leases: -
Plus: Restructuring & Other Liabilities: -
Enterprise Value: $ 2,699.1
 Historical
Acquirer - Key Drivers Units FY11 FY12 FY13 FY14

Number of Retail Stores:

Open at Beginning of Period: # Stores 1,192 1,166 1,143 1,124
Opened: # Stores 25 37 25 37
Closed: # Stores (51) (60) (44) (15)
Open at End of Period: # Stores 1,166 1,143 1,124 1,146

Sales per Store: $M / Store $ 2.02 $ 2.16 $ 2.18 $ 2.25

COGS % Revenue: % 56.0% 55.5% 56.0% 55.8%

Minimum Lease Payments: $M 177.1

Operating Lease Expense: $M 165.1 169.4 175.9 177.1
Lease Expense per Store: $M / Store 0.140 0.147 0.155 0.155

SG&A Expense: $M 696.4 739.7 771.8 737.8

SG&A Expense per Store: $M / Store 0.59 0.64 0.68 0.650

Cash Flow Drivers:

Depreciation & Amortization: $M 76.0 85.0 88.7 86.8

D&A % Revenue: % 3.2% 3.4% 3.6% 3.4%

Tuxedo Rental Amortization: $M 28.9 28.3 32.3 31.1

Tuxedo Rental Amort. % Revenue: % 1.2% 1.1% 1.3% 1.2%

Loss on Disposition of Assets: $M 2.8 2.0 0.2 -

Goodwill Impairment Charge: $M - - 9.5 -
Asset Impairment Charge: $M 2.0 0.5 2.2 -

Stock-Based Compensation: $M 13.8 16.5 17.1 16.5

SBC % Revenue: % 0.6% 0.7% 0.7% 0.6%

Deferred Taxes & Rent: $M 30.5 6.2 5.2 5.1

Deferred Taxes & Rent % Revenue: % 1.3% 0.2% 0.2% 0.2%

Change in Op. Assets and Liab.: $M (109.7) (41.8) (48.3) (32.2)

% Change in Revenue: % (39.2%) (39.6%) 321.1% (40.0%)

Capital Expenditures: $M 91.8 121.4 108.2 85.1

CapEx per Store: $M / Store $ 0.08 $ 0.11 $ 0.10 $ 0.08

Dividends: $M 25.1 37.1 35.5 42.7

Dividends % Net Income: % 20.8% 28.2% 42.4% 30.5%

Debt Principal Repayments: $M - - 2.5 10.9

 Historical
Acquirer - Income Statement Units FY11 FY12 FY13 FY14

Revenue: $M $ 2,382.7 $ 2,488.3 $ 2,473.2 $ 2,553.8

Cost of Goods Sold: $M 1,333.8 1,380.1 1,384.2 1,425.1
Gross Profit: $M 1,048.9 1,108.1 1,089.0 1,128.7

Selling, General & Administrative: $M 696.4 739.7 771.8 737.8

Rental Expense: $M 165.1 169.4 175.9 177.1
Goodwill Impairment Charge: $M - - 9.5 -
Asset Impairment Charges: $M 2.0 0.5 2.2 -
Operating Income: $M 185.4 198.6 129.6 213.8

Interest Income: $M 0.4 0.6 0.4 0.5

Interest Expense: $M (1.4) (1.5) (3.2) (2.0)
Net Interest Income / (Expense): $M (1.0) (0.9) (2.8) (1.5)

Pre-Tax Income: $M 184.4 197.7 126.8 212.3

Income Tax Provision: $M 63.9 65.6 42.6 72.2

Net Income: $M 120.5 132.1 84.2 140.1

Net (Income) Loss Attrib. to NCI: $M 0.1 (0.3) (0.4) (0.2)
Net Income to Common: $M $ 120.6 $ 131.7 $ 83.8 $ 139.9

Earnings Per Share (EPS): $ / Share $ 2.33 $ 2.58 $ 1.70 $ 2.88

Weighted Avg. Dil. Shares: M Shares 51.692 51.026 49.162 48.504

Historical
Acquirer - Key Metrics and Ratios Units FY11 FY12 FY13 FY14

EBITDA Calculation:
Operating Income: $M $ 185.4 $ 198.6 $ 129.6 $ 213.8
Depreciation & Amortization: $M 76.0 85.0 88.7 86.8
Tuxedo Rental Amortization: $M 28.9 28.3 32.3 31.1
Loss on Disposition of Assets: $M 2.8 2.0 0.2 -
Goodwill Impairment Charge: $M - - 9.5 -
Asset Impairment Charge: $M 2.0 0.5 2.2 -
EBITDA: $M $ 295.1 $ 314.3 $ 262.5 $ 331.7
Rental Expense: $M 165.1 169.4 175.9 177.1
EBITDAR: $M $ 460.2 $ 483.7 $ 438.4 $ 508.8

Revenue Growth: % 13.3% 4.4% (0.6%) 3.3%

Gross Margin: % 44.0% 44.5% 44.0% 44.2%
Operating Margin: % 7.8% 8.0% 5.2% 8.4%
EBITDA Margin: % 12.4% 12.6% 10.6% 13.0%
EBITDAR Margin: % 19.3% 19.4% 17.7% 19.9%
Net Margin: % 5.1% 5.3% 3.4% 5.5%

Effective Tax Rate: % 34.7% 33.2% 33.6% 34.0%

Inventory Turnover Ratio: x 2.44 x 2.39 x

Asset Turnover Ratio: x 1.71 x 1.62 x
D&A % Revenue: % 3.2% 3.4% 3.6% 3.4%
CapEx % Revenue: % 3.9% 4.9% 4.4% 3.3%
 Historical
Acquirer - Balance Sheet Units FY11 FY12 FY13 FY14

Assets:
Current Assets:
Cash & Cash Equivalents: $M $ 125.3 $ 156.1 $ 59.3
Accounts Receivable: $M 56.7 63.0 63.2
Inventory: $M 572.5 556.5 599.5
Other Current Assets: $M 70.9 79.5 93.2
Total Current Assets: $M 825.4 855.2 815.1

Long-Term Assets:
Plants, Property & Equipment: $M 355.7 389.1 408.2
Tuxedo Rental Product, Net: $M 99.8 126.8 142.8
Goodwill: $M 87.8 87.8 126.0
Other Intangible Assets: $M 33.7 32.4 58.0
Other Assets: $M 3.5 5.0 5.1
Total Long-Term Assets: $M 580.6 641.2 740.1

TOTAL ASSETS: $M $ 1,406.0 $ 1,496.3 $ 1,555.2

Liabilities & Shareholders' Equity:

Current Liabilities, Excluding Debt:
Accounts Payable: $M $ 123.4 $ 124.0 $ 148.8
Accrued Expenses & Other Liab.: $M 154.4 164.3 175.8
Income Taxes Payable: $M 3.4 5.9 0.7
Total Current Liabilities, Excl. Debt: $M 281.3 294.2 325.3

Long-Term Liabilities, Including All Debt:

Total Debt: $M - - 97.5
Deferred Income Tax Liability: $M 92.9 92.9 109.3
Total Liabilities, Including All Debt: $M 92.9 92.9 206.8

Total Liabilities: $M $ 374.1 $ 387.1 $ 532.1

Shareholders' Equity: $M $ 1,019.2 $ 1,096.3 $ 1,009.1

Noncontrolling Interests: $M 12.7 13.0 14.0
Total Equity: $M $ 1,031.8 $ 1,109.2 $ 1,023.1

TOTAL LIABILITIES & EQUITY: $M $ 1,406.0 $ 1,496.3 $ 1,555.2

Balance Sheet Check: OK! OK! OK!

f the Acquirer

Options - Treasury Stock Method:

Number Exercise
(Millions): Price: Dilution:
Options A 0.347 $ 28.92 0.163
0.347 0.163

estricted Stock and Other Sources:

Number Exercise
(Millions): Price: Dilution:
Restricted Stock: 0.081 N/A 0.081
Time-Based DSUs: 0.573 N/A 0.573
Perf.-Based DSUs: 0.083 N/A 0.083
0.737 0.737
 Projected
FY15 FY16 FY17 FY18

1,146 1,171 1,181 1,196

40 35 35 35
(15) (25) (20) (20)
1,171 1,181 1,196 1,211

$ 2.27 $ 2.28 $ 2.28 $ 2.30

55.8% 55.8% 55.8% 55.8%

162.4 138.3 107.8 82.1

179.6 188.2 190.2 198.6
0.155 0.160 0.160 0.165

753.0 764.4 772.5 782.3

0.650 0.650 0.650 0.650

89.3 91.1 92.1 94.0

3.4% 3.4% 3.4% 3.4%

32.0 32.7 33.0 33.7

1.2% 1.2% 1.2% 1.2%

- - - -
- - - -
- - - -

17.0 17.3 17.5 17.9

0.6% 0.6% 0.6% 0.6%

5.3 5.4 5.4 5.5

0.2% 0.2% 0.2% 0.2%

(30.4) (20.6) (11.4) (23.3)

(40.0%) (40.0%) (40.0%) (40.0%)

92.7 100.0 107.0 114.3

$ 0.08 $ 0.09 $ 0.09 $ 0.10

45.9 46.4 46.9 48.5

30.5% 30.5% 30.5% 30.5%

16.4 16.4 26.9 26.9

 Projected
FY15 FY16 FY17 FY18

$ 2,629.8 $ 2,681.3 $ 2,709.8 $ 2,768.1

1,467.5 1,496.2 1,512.2 1,544.7
1,162.3 1,185.0 1,197.6 1,223.4

753.0 764.4 772.5 782.3

179.6 188.2 190.2 198.6
- - - -
- - - -
229.7 232.5 234.9 242.5

0.5 0.5 0.5 0.5

(2.0) (2.0) (2.0) (2.0)
(1.5) (1.5) (1.5) (1.5)

228.2 231.0 233.4 241.0

77.6 78.5 79.4 81.9

150.6 152.4 154.1 159.1

(0.2) (0.2) (0.2) (0.2)
$ 150.4 $ 152.2 $ 153.9 $ 158.9

$ 3.10 $ 3.14 $ 3.17 $ 3.28

48.504 48.504 48.504 48.504

Projected
FY15 FY16 FY17 FY18

$ 229.7 $ 232.5 $ 234.9 $ 242.5

89.3 91.1 92.1 94.0
32.0 32.7 33.0 33.7
- - - -
- - - -
- - - -
$ 351.1 $ 356.2 $ 360.0 $ 370.3
179.6 188.2 190.2 198.6
$ 530.6 $ 544.4 $ 550.2 $ 568.9

3.0% 2.0% 1.1% 2.2%

44.2% 44.2% 44.2% 44.2%
8.7% 8.7% 8.7% 8.8%
13.3% 13.3% 13.3% 13.4%
20.2% 20.3% 20.3% 20.6%
5.7% 5.7% 5.7% 5.7%

34.0% 34.0% 34.0% 34.0%

3.4% 3.4% 3.4% 3.4%

3.5% 3.7% 3.9% 4.1%
 Projected
FY15 FY16 FY17 FY18
Merger Model - The Men's Wearhouse, Inc. and JoS. A. Bank Clothiers, Inc. - Financial Profile of the Target
($ in Millions, Except Per Share Amounts in Dollars as Stated)

Target - Financial Profile

Target Name: JoS. A. Bank Clothiers, Inc. Options - Treasury Stock Me

Target Ticker: JOSB
Last Fiscal Year: 2013-12-31
Name:
Offer Price per Share: $ 65.00 Options A
Tax Rate: 38.1% Total:

Basic Shares Outstanding (Millions): 27.998 Restricted Stock and Other

Diluted Shares Outstanding (Millions): 28.113

Equity Value: $ 1,827.3 Name:

Less: Cash & Cash-Equivalents: (445.5) Restricted Stock:
Less: Equity Investments: - Total:
Less: Other Non-Core Assets, Net: -
Less: Net Operating Losses: -
Plus: Total Debt: -
Plus: Preferred Stock: -
Plus: Noncontrolling Interests: -
Plus: Unfunded Pension Obligations: (82.0)
Plus: Capital Leases: -
Plus: Restructuring & Other Liabilities: -
Enterprise Value: $ 1,299.8
 Historical
Target - Key Drivers Units FY11 FY12 FY13 FY14

Number of Retail Stores:

Open at Beginning of Period: # Stores 506 556 602 628
Opened: # Stores 53 46 30 33
Closed: # Stores (3) - (4) (2)
Open at End of Period: # Stores 556 602 628 659

Sales per Store: $M / Store $ 1.85 $ 1.81 $ 1.68 $ 1.65

COGS % Revenue: % 37.9% 41.7% 42.2% 42.5%

Minimum Lease Payments: $M 78.6

Operating Lease Expense: $M 62.8 68.0 74.9 78.6
Lease Expense per Store: $M / Store 0.118 0.117 0.122 0.122

Sales & Marketing Expense: $M 309.5 341.2 341.6 353.9

Sales & Marketing per Store: $M / Store 0.58 0.59 0.56 0.55

G&A Expense % Revenue: % 7.8% 7.1% 7.6% 7.0%

Cash Flow Drivers:

Depreciation & Amortization: $M 26.1 28.5 29.6 29.2

D&A % Revenue: % 2.7% 2.7% 2.9% 2.7%

Loss on Disposition of Assets: $M 0.3 0.3 0.4 -

Asset Impairment Charge: $M 0.3 0.8 1.0 -

Stock-Based Compensation: $M 2.5 2.2 1.6 2.2

SBC % Revenue: % 0.3% 0.2% 0.2% 0.2%

Deferred Taxes: $M 11.0 1.3 (8.7) (0.3)

Deferred Taxes % Taxes: % 17.8% 2.6% (22.4%) (0.7%)

Change in Op. Assets and Liab.: $M (46.0) (28.3) 11.0 (11.8)

% Change in Revenue: % (37.8%) (40.7%) (64.2%) (40.0%)

Capital Expenditures: $M 37.5 35.6 29.3 38.6

CapEx per Store: $M / Store $ 0.07 $ 0.06 $ 0.05 $ 0.06
 Historical
Target - Income Statement Units FY11 FY12 FY13 FY14

Revenue: $M $ 979.9 $ 1,049.3 $ 1,032.2 $ 1,061.8

Cost of Goods Sold: $M 371.6 437.6 435.6 451.3
Gross Profit: $M 608.3 611.8 596.6 610.5

Sales & Marketing: $M 309.5 341.2 341.6 353.9

Rental Expense: $M 62.8 68.0 74.9 78.6
General & Administrative: $M 76.6 74.2 78.1 74.3
Operating Income: $M 159.4 128.4 102.0 103.7

Interest Income: $M 0.3 0.4 0.4 0.5

Interest Expense: $M (0.3) (0.0) (0.0) -
Net Interest Income / (Expense): $M 0.0 0.4 0.3 0.5

Pre-Tax Income: $M 159.4 128.8 102.4 104.2

Income Tax Provision: $M 62.0 49.1 39.0 39.7

Net Income: $M 97.5 79.7 63.3 64.5

Earnings Per Share (EPS): $ / Share $ 3.49 $ 2.84 $ 2.26 $ 2.29

Weighted Avg. Dil. Shares: M Shares 27.961 28.013 28.053 28.113

Historical
Target - Key Metrics and Ratios Units FY11 FY12 FY13 FY14

EBITDA Calculation:
Operating Income: $M $ 159.4 $ 128.4 $ 102.0 $ 103.7
Plus: Depreciation & Amortization: $M 26.1 28.5 29.6 29.2
Plus: Loss on Disposition of Assets: $M 0.3 0.3 0.4 -
Plus: Asset Impairment Charge: $M 0.3 0.8 1.0 -
EBITDA: $M $ 186.1 $ 158.0 $ 133.0 $ 132.9
Rental Expense: $M 62.8 68.0 74.9 78.6
EBITDAR: $M $ 248.9 $ 226.0 $ 207.9 $ 211.5

Revenue Growth: % 14.2% 7.1% (1.6%) 2.9%

Gross Margin: % 62.1% 58.3% 57.8% 57.5%
Operating Margin: % 16.3% 12.2% 9.9% 9.8%
EBITDA Margin: % 19.0% 15.1% 12.9% 12.5%
EBITDAR Margin: % 25.4% 21.5% 20.1% 19.9%
Net Margin: % 9.9% 7.6% 6.1% 6.1%

Effective Tax Rate: % 38.9% 38.1% 38.1% 38.1%

Inventory Turnover Ratio: x 1.38 x 1.37 x
Asset Turnover Ratio: x 1.23 x 1.13 x
D&A % Revenue: % 2.7% 2.7% 2.9% 2.7%
CapEx % Revenue: % 3.8% 3.4% 2.8% 3.6%
 Historical
Target - Balance Sheet Units FY11 FY12 FY13 FY14

Assets:
Current Assets:
Cash & Cash Equivalents: $M $ 87.2 $ 71.3 $ 305.5
Short-Term Investments: $M 240.3 305.8 140.0
Accounts Receivable: $M 15.9 10.6 13.6
Inventory: $M 304.7 330.5 304.3
Other Current Assets: $M 20.9 23.9 23.1
Total Current Assets: $M 668.9 742.2 786.5

Long-Term Assets:
Plants, Property & Equipment: $M 144.4 152.4 149.0
Other Assets: $M 0.3 0.3 0.3
Total Long-Term Assets: $M 144.7 152.7 149.3

TOTAL ASSETS: $M $ 813.6 $ 894.8 $ 935.7

Liabilities & Shareholders' Equity:

Current Liabilities, Excluding Debt:
Accounts Payable: $M $ 66.7 $ 53.8 $ 32.9
Accrued Expenses & Other Liabilities$M 92.9 104.6 115.0
Deferred Tax Liability - Current: $M 8.5 11.9 1.8
Total Current Liabilities, Excl. Debt: $M 168.1 170.3 149.8

Long-Term Liabilities, Including All Debt:

Total Debt: $M - - -
Deferred Rent: $M 47.6 45.5 41.3
Deferred Tax Liability - Noncurrent: $M 12.0 9.8 11.2
Other Noncurrent Liabilities: $M 1.0 1.6 1.4
Total Liabilities, Including All Debt: $M 60.6 56.9 53.9

Total Liabilities: $M $ 228.7 $ 227.3 $ 203.7

Shareholders' Equity: $M $ 584.9 $ 667.6 $ 732.1

Noncontrolling Interests: $M - - -
Total Equity: $M $ 584.9 $ 667.6 $ 732.1

TOTAL LIABILITIES & EQUITY: $M $ 813.6 $ 894.8 $ 935.7

Balance Sheet Check: OK! OK! OK!

Options - Treasury Stock Method:

Number Exercise
(Millions): Price: Dilution:
Options A -
- -

estricted Stock and Other Sources:

Number Exercise
(Millions): Price: Dilution:
Restricted Stock: 0.115 N/A 0.115
0.115 0.115
 Projected
FY15 FY16 FY17 FY18

659 687 710 728

30 25 20 20
(2) (2) (2) (2)
687 710 728 746

$ 1.65 $ 1.67 $ 1.67 $ 1.70

42.5% 43.0% 43.0% 43.5%

71.9 64.0 55.6 46.5

82.1 87.3 89.9 92.1
0.122 0.125 0.125 0.125

370.2 387.7 399.0 412.7

0.55 0.56 0.56 0.56

7.0% 7.0% 7.0% 7.0%

30.5 32.1 33.0 34.4

2.7% 2.7% 2.7% 2.7%

- - - -
- - - -

2.3 2.4 2.5 2.6

0.2% 0.2% 0.2% 0.2%

(0.3) (0.3) (0.3) (0.3)

(0.7%) (0.7%) (0.7%) (0.7%)

(19.5) (22.4) (13.7) (20.9)

(40.0%) (40.0%) (40.0%) (40.0%)

40.4 48.9 50.3 59.0

$ 0.06 $ 0.07 $ 0.07 $ 0.08
 Projected
FY15 FY16 FY17 FY18

$ 1,110.5 $ 1,166.5 $ 1,200.7 $ 1,252.9

471.9 501.6 516.3 545.0
638.5 664.9 684.4 707.9

370.2 387.7 399.0 412.7

82.1 87.3 89.9 92.1
77.7 81.7 84.1 87.7
108.5 108.3 111.4 115.3

0.5 0.5 0.5 0.5

- - - -
0.5 0.5 0.5 0.5

109.0 108.8 111.9 115.8

41.5 41.4 42.7 44.1

67.5 67.3 69.3 71.7

$ 2.40 $ 2.39 $ 2.46 $ 2.55

28.113 28.113 28.113 28.113

Projected
FY15 FY16 FY17 FY18

$ 108.5 $ 108.3 $ 111.4 $ 115.3

30.5 32.1 33.0 34.4
- - - -
- - - -
$ 139.0 $ 140.3 $ 144.5 $ 149.8
82.1 87.3 89.9 92.1
$ 221.2 $ 227.6 $ 234.3 $ 241.9

4.6% 5.0% 2.9% 4.3%

57.5% 57.0% 57.0% 56.5%
9.8% 9.3% 9.3% 9.2%
12.5% 12.0% 12.0% 12.0%
19.9% 19.5% 19.5% 19.3%
6.1% 5.8% 5.8% 5.7%

38.1% 38.1% 38.1% 38.1%

2.7% 2.7% 2.7% 2.7%
3.6% 4.2% 4.2% 4.7%
 Projected
FY15 FY16 FY17 FY18