V.f. Corporation · NYSE:VFC
V.f — Investor Day (September 2022)
172 slides from V.f's investor day presentation, Sep 28, 2022
Slide 1: VF Investor Day 2022
Vi INVESTOR a DAY2022 ([ es FFTHEWALLY FACED) DENVER,CO icebreaker smartwoold Rideiaies [ANSrOna KIPl SEPTEMBER 28, 2022
Slide 2: Welcome
WELCOME ALLEGRA PERRY VP, INVESTOR RELATIONS INVESTOR DAY 20%
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT Certain statements included in this presentation are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting VF and therefore involve several ris
Slide 4: GAAP to Non-GAAP
GAAP TO NON-GAAP Financial information contained in this presentation represent financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (GAAP), which include or exclude c
Slide 5: Committed to Win
-COMMITTED RE. == STEVE RENDLE == CHAIRMAN, PRESIDENT & * CHIEF EXECUTIVE OFF! Cia G
Slide 6: The Advantage
THE ADVANTAGE 1 2 3 4 DEEP CONSUMER PORTFOLIO OF SCALABLE OUTSTANDING CONNECTION LEADING BRANDS PLATFORMS TALENT PERFORMANCE-DRIVEN CULTURE, GROUNDED IN PURPOSE I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 7: Committed
COMMITTED
Slide 8: Positioned to Deliver Long-Term, Broad-Based Growth
POSITIONED TO DELIVER LONG-TERM, BROAD-BASED GROWTH FY17 FY18 FY19 FY20 FY21 FY22 FY27 PRE-COVID-19 COVID-19 LONG RANGE PLAN Note: Revenue from continuing operations FY17 and FY18 represent twelve-month periods that have been adjusted to align with VF's current fiscal year (ending on Saturday closes
Slide 9: Our Vision
OUR VISION Be the world's most dynamic portfolio of deeply loved, iconic, active-lifestyle brands
Slide 10: Our Purpose
OUR PURPOSE PEOPLE PLANET PRODUCT I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 11: Our Active-Lifestyle Brands
OUR ACTIVE-LIFESTYLE BRANDS AC T I V E OUTDOOR WORK I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 12: Our Winning Formula
OUR WINNING FORMULA ENTERPRISE AND BRANDS REGIONAL PLATFORMS Consumer Connections Functional Support Product Expertise and Talent Demand Creation Scale DTC / Digital Marketplace Management CONSUMERS Innovation Accelerators Consumer Data & Analytics Digital Go-To-Market Digital
Slide 13: Positioned to Win in a Vast, Strong and Growing TAM
POSITIONED TO WIN IN A VAST, STRONG AND GROWING TAM* OUTDOOR ACTIVE & ATHLEISURE WORK STREET * Total Addressable Market Sources: Euromonitor, Internal VF Estimates I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 14: Positioned to Win in a Vast, Strong and Growing TAM
POSITIONED TO WIN IN A VAST, STRONG AND GROWING TAM* APPAREL OUTDOOR ACTIVE & ATHLEISURE ACCESSORIES & EQUIPMENT FOOTWEAR WORK STREET * Total Addressable Market Sources: Euromonitor, Internal VF Estimates I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 15: Positioned to Win in a Vast, Strong and Growing TAM
POSITIONED TO WIN IN A VAST, STRONG AND GROWING TAM* APPAREL OUTDOOR ACTIVE & ATHLEISURE ACCESSORIES & EQUIPMENT FOOTWEAR WORK STREET * Total Addressable Market Sources: Euromonitor, Internal VF Estimates I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 16: Our Growth Strategy
OUR GROWTH STRATEGY Leverage platforms Find and amplify for speed to scale consumer tailwinds and efficiency Build brands on multiple Resource for portfolio growth horizons agility and performance I N V E S T O R D AY 2 0 2 2 / C O M M I T T E D T O W I N
Slide 17: Our Growth Strategy
OUR GROWTH STRATEGY Leverage brand portfolio in an existing large and growing TAM Purposefully expand into adjacencies that complement core strategies Find and amplify Leverage platforms Amplify tailwinds through deepening consumer consumer tailwinds for speed to scale reach and engagement and
Slide 18: Our Growth Strategy
OUR GROWTH STRATEGY Find and amplify Leverage platforms consumer tailwinds for speed to scale and efficiency Gain share through highly desired, innovative products Build brands on multiple Resource for portfolio growth horizons agility and performance Leverage VF brand building playbook to susta
Slide 19: Our Growth Strategy
OUR GROWTH STRATEGY Enhance the consumer journey through centralized data and analytics capabilities Deliver a seamless consumer experience through scalable omni-technologies Deploy digitally enabled, consumer-focused, Leverage platforms Find and amplify DTC-centric supply chain for speed to s
Slide 20: Our Growth Strategy
OUR GROWTH STRATEGY Leverage platforms Find and amplify for speed to scale consumer tailwinds and efficiency Dynamically invest toward the greatest Build brands on multiple Resource for portfolio opportunities and high potential areas growth horizons agility and performance Continually develop o
Slide 21: Positioned to Deliver Strong, Profitable Growth: FY27 Financial Targets
POSITIONED TO DELIVER STRONG, PROFITABLE GROWTH FY27 FINANCIAL TARGETS REVENUE EPS FREE CASH FLOW* + Mid- to high single digit % + High single to low double-digit % $5.5B CAGR C$ CAGR C$ *Free Cash Flow is defined as cash from operations less capital expenditures and software purchases; represents t
Slide 22: Our Commitments
OUR COMMITMENTS Continue evolving our portfolio of brands to capture and amplify consumer tailwind spaces in large and growing TAMs Deepen our relationships with existing consumers while attracting new ones through highly desired products which support active lifestyles Leverage our powerful b
Slide 23: Today's Speakers
PLATFORMS REGIONS TODAY’S SPEAKERS STEVE RENDLE MATT PUCKETT VELIA CARBONI CAMERON BAILEY MARTINO SCABBIA GUERRINI Chairman, President, & EVP, EVP, Chief Digital & EVP, Global Supply Chain EVP & President, Chief Executive Officer Chief Financial Officer Technology Officer 25 years at VF EMEA Region
Slide 24: Agenda
AGENDA TIME PRESENTER 8:30 AM Welcome ALLEGRA PERRY / VP, Investor Relations 8:35 AM Committed to Win STEVE RENDLE / Chairman, President & Chief Executive Officer 8:55 AM Strategic Platforms: Consumer Data/Digital VELIA CARBONI / EVP, Chief Digital & Technology Officer 9:10 AM Strategic Platforms: S
Slide 25: Velia Carboni
VELIA CARBONI EVP, CHIEF DIGITAL & TECHNOLOGY OFFICER
Slide 26: FY19 – FY22 Focus Areas
FY19 – FY22 FOCUS AREAS Expanded Enterprise Capabilities Build the tools vital to driving consumer-facing opportunities Data & Insights Drive engagement, loyalty and sales Digitally Enabled Value Chain Leverage technology to modernize how we design and distribute products Seamless Consumer Experienc
Slide 27: FY19 – FY22 KPIs: DTC Digital Drives Global Growth
FY19 – FY22 KPI S : DTC DIGITAL DRIVES GLOBAL GROWTH 200K* 6 109.5M* +34%* Successful Orders per Digital Loyalty logins per day second during consumers growth Cyber5** *EMEA & NORA only. **5 days between Thanksgiving and Cyber Monday P E R C E N TAG E O F R E V E N U E B Y C H AN N E L FY19 FY22 WHO
Slide 28: The Power of "We"
THE POWER OF “WE” AGILITY AND RESILIENCY ICONIC BRANDS AND NEW TECHNOLOGIES CULTURE AND EMPOWERMENT UNIQUE COMPETITIVE ADVANTAGE eNPS* = 49.5 vs industry average of 32 *Employee Net Promoter Score I N V E S T O R D AY 2 0 2 2 / D I G I T AL
Slide 29: Our Growth Strategy
OUR GROWTH STRATEGY Enhance the consumer journey through centralized data and analytics capabilities Deliver a seamless consumer experience through scalable omni-technologies Deploy digitally enabled, consumer-focused, Leverage platforms Find and amplify DTC-centric supply chain for speed to s
Slide 30: Coming Together for VF Advantage
COMING TOGETHER FOR VF ADVANTAGE CONSUMER DATA & ANALYTICS SEAMLESS Research CONSUMER Post- Inspiration & Purchase EXPERIENCES purchase Evaluation DIGITALLY ENABLED Concept Create & Make Ship Support VALUE CHAIN ENTERPRISE CAPABILITIES I N V E S T O R D AY 2 0 2 2 / D I G I T AL
Slide 31: Scaled Platforms: Consumer Data & Analytics
SCALED PLATFORMS: CONSUMER DATA & ANALYTICS COMPREHENSIVE INSIGHTS ACTIVATING DATA REAL-TIME OPTIMIZATION CONSUMER 360 & PRICING ANALYTICS BRAND INSIGHTS REAL-TIME INSIGHTS ACCELERATION Consumer behavior tied to Drives performance enhancements Machine learning automates efforts marketing and technol
Slide 32: Scaled Platforms: Digitally Enabled Value Chain
SCALED PLATFORMS: DIGITALLY ENABLED VALUE CHAIN MODERNIZING THE SUPPLY CHAIN TRANSFORMING PRODUCT CREATION Accelerate time to market through reuse of patterns Lower overhead through shared materials and VF scale Interconnected systems streamline processes across VF Historical data drives imp
Slide 33: Scaled Platforms: Seamless Consumer Experience
SCALED PLATFORMS: SEAMLESS CONSUMER EXPERIENCE D I G I TAL D E S I G N USABLE EFFICIENT FORWARD LOOKING TECHNOLOGY eCOMMERCE CAPABILITIES I N V E S T O R D AY 2 0 2 2 / D I G I T AL
Slide 34: FY27 Digital Revenue Target
FY27 DIGITAL REVENUE TARGET + Low Double-Digit % CAGR I N V E S T O R D AY 2 0 2 2 / D I G I T AL
Slide 35: Our Commitments
OUR COMMITMENTS PEOPLE DRIVE SUCCESS Grow our best-in-class team of experts FOUNDATIONAL CAPABILITIES POWER THE ORGANIZATION Mature our core enterprise capabilities PLATFORMS DRIVE COMPETITIVE ADVANTAGE Drive deeper insights through Consumer Data & Analytics Digitally enable the value chain Evolve t
Slide 36: Global Supply Chain
GLOBAL SUPPLY CHAIN == CAMERON BAILEY == EVP, GLOBAL SUPPLY CHAIN Ve — y
Slide 37: Supply Chain Overview
« SUPPLY CHAIN OVER RVIEW
Slide 38: Operational Discipline to Manage Large-Scale Complexity
OPERATIONAL DISCIPLINE TO MANAGE LARGE-SCALE COMPLEXITY ~410MUNITS ANNUALLY ~87K STYLE / COLORS ~7K SUPPLY CHAIN ASSOCIATES I N V E S T O R D AY 2 0 2 2 / G L O B AL S U P P L Y C H AI N
Slide 39: Global Product Supply to Serve Our Diverse Brands
GLOBAL PRODUCT SUPPLY TO SERVE OUR DIVERSE BRANDS >$5.3B FY22 COST OF GOODS 37 COUNTRIES OF ORIGIN 336 VENDORS 722 FACTORIES I N V E S T O R D AY 2 0 2 2 / G L O B AL S U P P L Y C H AI N
Slide 40: Global Footprint to Mitigate Risk Exposure and Drive Advantage
GLOBAL FOOTPRINT TO MITIGATE RISK EXPOSURE AND DRIVE ADVANTAGE OTHERS VIETNAM 24% 26% FY22 TURKEY 3% UNITS BY COUNTRY CHINA OF ORIGIN 15% U.S. 5% INDONESIA 6% BANGLADESH CAMBODIA 10% 11% I N V E S T O R D AY 2 0 2 2 / G L O B AL S U P P L Y C H AI N
Slide 41: Global Fulfillment Network
GLOBAL FULFILLMENT NETWORK TO SERVICE CUSTOMERS AND GROWING DIRECT-TO-CONSUMER BUSINESS 53 PORTS GLOBALLY 28 AMERICAS 44 DISTRIBUTION CENTERS GLOBALLY 18 AMERICAS 13 EMEA 13 EMEA 12 APAC 13 APAC I N V E S T O R D AY 2 0 2 2 / G L O B AL S U P P L Y C H AI N
Slide 42: Scope of Our Supply Chain Provides Opportunity to Drive Change
SCOPE OF OUR SUPPLY CHAIN PROVIDES OPPORTUNITY TO DRIVE LARGE-SCALE CHANGE OUR IMPACT ON PEOPLE OUR IMPACT ON PLANET Material Origin Tier-3 Farmers Material Transformation VF carbon emissions across our value chain: ~700K+ ~2.5M+ Supply Product Materials Logistics Chain Assembly 70% 5% 5% >6 MILLION
Slide 43: Supply Chain Strategy
SUPPLY CHAIN STRATEGY
Slide 44: DTC-Centric Supply Chain Competitive Advantage
DELIVER COMPETITIVE ADVANTAGE TO BRANDS WITH DTC-CENTRIC SUPPLY CHAIN S T R AT E G I C E N T E R P R I S E P L AT F O R M GO-TO-MARKET TRANSFORMATION VERTICAL SUPPLY CAPABILITIES Digital concept-to-market capabilities Local-for-Local production, enabled by vertical regional supply chains FUTURE OF F
Slide 45: Leverage Proven In-Region Product Supply
LEVERAGE PROVEN IN-REGION PRODUCT SUPPLY TO MEET THE DYNAMIC NEEDS OF CONSUMERS Q1’FY21 FY22 FY23 Footwear ~500K pairs 1.3M+ pairs production produced estimated European established Sourcing in Portugal Office Panama Sourcing Office Q2’FY22 FY22 FY23 FY25 Footwear ~330K pairs ~750K pairs 2.3M+ pairs
Slide 46: Build Agility and Consumer Centricity into Fulfillment Network
BUILD AGILITY AND CONSUMER CENTRICITY INTO FULFILLMENT NETWORK MULTI-NODE CONSUMER-ORIENTED FULFILLMENT AUTOMATION EXPERIENCE Efficiency – Speed and Consumer Proximity – Risk Mitigation I N V E S T O R D AY 2 0 2 2 / G L O B AL S U P P L Y C H AI N
Slide 47: Highly Automated Distribution Centers
HIGHLY AUTOMATED DISTRIBUTION CENTERS WITHIN VF FULFILLMENT NETWORK UNITED KINGDOM CALIFORNIA Date Opened: April 2021 Anticipated Opening Date: Spring 2023 I N V E S T O R D AY 2 0 2 2 / G L O B AL S U P P L Y C H AI N
Slide 48: Our Commitments
OUR COMMITMENTS Leverage our supply chain’s long-standing, diversified footprint and key global partnerships to efficiently manage complexity at scale and mitigate risk. Accelerate and enhance proven strategy to increase speed and agility and enable continued growth for our brands across regions
Slide 49: Martino Scabbia Guerrini
MARTINO SCABBIA GUERRINI EVP & PRESIDENT, EMEA REGION & EMERGING BRANDS ORTH berland @§ @azey RE ~ &
Slide 50: VF EMEA Platform at a Glance
VF EMEA PLATFORM AT A GLANCE ROBUST AND ESTABLISHED PLATFORM, BUILT TO EVOLVE AND DELIVER GROWTH 50+ 28 12 YEARS OF PRESENCE MARKETS BRANDS ~7,900 21 ~50 ASSOCIATES OFFICES NATIONALITIES 7 ~330 930+ FULFILLMENT OWNED & OPERATED MONO-BRANDED CENTERS STORES* PARTNER DOORS Note: As of April 2, 2022 *Do
Slide 51: VF EMEA Growth Trajectory
VF EMEA GROWTH TRAJECTORY CONSISTENTLY DELIVERING ACCRETIVE LONG-TERM GROWTH AMID MARKETPLACE DISRUPTIONS EMEA HISTORICAL REVENUE Accretive to VF in: Revenue Growth Gross Margin $3.4B Net Income x $2.2B FY17* FY18* FY19 FY20 FY21 FY22 Note: Revenue from continuing operations *FY17 and FY18 rep
Slide 52: The Power of EMEA Platform
THE POWER OF EMEA PLATFORM ADVANTAGED PLATFORM CAPABILITIES AND OPERATING MODEL TO UNLOCK AND ENABLE GROWTH ACROSS THE PORTFOLIO INNOVATE BUSINESS MODEL AMPLIFY MARKETPLACE ADVANCE CONNECTED AND SCALE ACROSS THE IMPACT VIA INTEGRATED PHYSICAL & DIGITAL RETAIL PORTFOLIO GOVERNANCE ECOSYSTEM TNF x Zal
Slide 53: The Power of Our Brands in EMEA
THE POWER OF OUR BRANDS IN EMEA PROVEN ABILITY TO INFLUENCE AND DRIVE REGIONALLY-RELEVANT, GLOBALLY-CONSISTENT BRAND BUILDING MAXIMIZE REGIONAL AMPLIFY GLOBAL GROWTH CHAMPION BRAND GROWTH THROUGH LOCAL THROUGH REGIONAL ELEVATION AND EQUITY- RELEVANCE AND SPEED EXCELLENCE ENHANCING EXECUTION Dickies
Slide 54: FY27 EMEA Revenue Target
FY27 EMEA REVENUE TARGET + High Single to Low Double-Digit % CAGR I N V E S T O R D AY 2 0 2 2 / E M E A
Slide 55: Our Commitments
OUR COMMITMENTS Proven ability to deliver results – capturing market share and expanding margins – in a dynamic marketplace Diversified and accretive growth – across brands and distribution channels – fueled by consistent business model innovation Advantaged VF platform, driving profitable gro
Slide 56: President, Asia Pacific Region
= PRESIDENTE = ASIA PACIFIC REGION
Slide 57: Growth Amid Disruptions with Strong Foundation to Accelerate
GROWTH AMID DISRUPTIONS WITH STRONG FOUNDATION TO ACCELERATE APAC HISTORICAL REVENUE* VF APAC PLATFORM AT A GLANCE 9MARKETS 7 BRANDS $1.6B 19 OFFICES ~4,700 ASSOCIATES $1.0B FY17** FY18** FY19 FY20 FY21 FY22 642 OWNED AND ~3,300 MONO-BRANDED OPERATED DOORS* PARTNER DOORS *Revenue from continuing ope
Slide 58: Market and Consumer Tailwinds Align with VF Portfolio
MARKET AND CONSUMER TAILWINDS ALIGN WITH VF PORTFOLIO NASCENT BUT GROWING WHITE SPACE FOR HIGH DEMAND FOR SPEED, OUTDOOR AND VF BRANDS IN THE CONVENIENCE AND RELEVANCE ACTIVE MARKET APAC REGION POWERED BY DIGITAL I N V E S T O R D AY 2 0 2 2 / AP A C
Slide 59: APAC Growth Drivers
APAC GROWTH DRIVERS DATA INSIGHTS 1 2 3 INCREASE BRAND EXPAND INTO NEW LEVERAGE APAC DATA PENETRATION CATEGORIES AND PLATFORM MARKETS I N V E S T O R D AY 2 0 2 2 / AP A C
Slide 60: Deepen VF Brand Penetration in Existing Markets
1 DEEPEN VF BRAND PENETRATION IN EXISTING MARKETS ENSURE PRODUCT ACCELERATE DIGITAL BUILD BRAND AWARENESS RELEVANCE AND AGILITY ENGAGEMENT AND COMMERCE I N V E S T O R D AY 2 0 2 2 / AP A C
Slide 61: Grow Beyond Existing Footprint and Reach
2 GROW BEYOND EXISTING FOOTPRINT AND REACH LEVERAGE INFLUENCE OF EXPAND INTO NEW LAUNCH NEW BRANDS JAPAN AND KOREA TO EXTEND ADJACENT CATEGORIES IN CHINA IN SOUTHEAST ASIA TOKYO SEOUL I N V E S T O R D AY 2 0 2 2 / AP A C
Slide 62: Elevate Consumer Connection and Loyalty
3 ELEVATE CONSUMER CONNECTION AND LOYALTY DRIVE DEEP LOCAL EMPOWER END-TO-END CREATE INTEGRATED CONSUMER INSIGHTS DATA DIGITIZATION OMNI EXPERIENCES PLATFORM CAPABILITIES DATA TALENT SCALE I N V E S T O R D AY 2 0 2 2 / AP A C
Slide 63: FY27 APAC Revenue Target
FY27 APAC REVENUE TARGET + High Single to Low Double-Digit % CAGR I N V E S T O R D AY 2 0 2 2 / AP A C
Slide 64: Our Commitments
OUR COMMITMENTS VF brands will accelerate our growth in the nascent but fast-growing Outdoor and Active markets VF will expand beyond the current footprint and into new geographies and categories in APAC VF’s APAC platform will enable brands to deliver differentiated, localized, omnichannel ex
Slide 65: Vans: Off the Wall
“OFF THE WALL" OR DAY 2022
Slide 66: Meaningful Growth and Profitability Since Acquisition
MEANINGFUL GROWTH AND PROFITABILITY SINCE ACQUISITION $4.2B $0.4B 2004* 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY17** FY18** FY19 FY20 FY21 FY22 *2004 includes pre and post VF acquisition revenue **FY17 and FY18 represent twelve-month periods that have been adjusted to align with VF'
Slide 67: The Business Has Faced Several Challenges
THE BUSINESS HAS FACED SEVERAL CHALLENGES CORE BRAND AMERICAS CLASSICS HEAT DTC CHINA I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 68: Vans Growth Drivers
VANS GROWTH DRIVERS ACTIONS TO REFRESH, REFOCUS, REACCELERATE 1 2 3 4 CONSUMER PRODUCTS MARKETPLACE OPERATING MODEL I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 69: Vans Growth Drivers
1 VANS GROWTH DRIVERS ACTIONS TO REFRESH, REFOCUS, REACCELERATE 1 2 3 4 CONSUMER PRODUCTS MARKETPLACE OPERATING MODEL I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 70: Refresh: Our Consumers Have Changed
1 REFRESH: OUR CONSUMERS HAVE CHANGED I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 71: Refocus: Authenticity from Action Sports Heritage
1 REFOCUS: VANS WILL ALWAYS DERIVE OUR AUTHENTICITY FROM OUR ACTION SPORTS HERITAGE < 25% of business SKATE SURF SNOW I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 72: Reaccelerate: Serve Consumers Where They Already Are
1 REACCELERATE: OPPORTUNITIES EXIST TO SERVE OUR CONSUMERS WHERE THEY ALREADY ARE SKATE SURF SNOW STREET ACTIVE OUTDOOR CULTURE LIFESTYLE CULTURE I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 73: Vans Growth Drivers
VANS GROWTH DRIVERS ACTIONS TO REFRESH, REFOCUS, REACCELERATE 1 2 3 4 CONSUMER PRODUCTS MARKETPLACE OPERATING MODEL I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 74: Refresh: Dependent on a Rigid Classics Icon Management Strategy
2 REFRESH: WE GREW DEPENDENT ON A RIGID CLASSICS ICON MANAGEMENT STRATEGY < 25% of business I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 75: Refocus: Style Adaptations and Innovation
2 REFOCUS: STYLE ADAPTATIONS AND INNOVATION DELIVER ON DIVERSIFICATION AND TREND CAPTURE SK8 HI STACKED THE LIZZIE EVDNT ULTIMATE WAFFLE CIRCLE VEE ULTRARANGE EXO HI MTE-3 LOWLAND CC OLD SKOOL STACKFORM AUTHENTIC 44 DX SENTRY OLD SKOOL WC OLD SKOOL OVERT CC ULTRARANGE VR3 STANDARD MID SNOW MTE I N V
Slide 76: Refocus: Core Product from Action Sports POV
2 REFOCUS: WHILE OUR CORE PRODUCT AND BRAND POSITION WILL CONTINUE TO COME FROM OUR ACTION SPORTS POV… KYLE WALKER SURF BOOT HI VERSE RANGE EDITION I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 77: Reaccelerate: Inspired-Lifestyle Products
2 REACCELERATE: …INSPIRED-LIFESTYLE PRODUCTS CAN RESONATE WITH A MUCH LARGER AUDIENCE EVDNT ULTIMATEWAFFLE ULTRARANGE VR3 SK8 HI MTE 2 I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 78: Reaccelerate: Pinnacle Will Drive Influence
2 REACCELERATE: PINNACLE WILL DRIVE INFLUENCE PRODUCT CONSTRUCT PINNACLE OPPORTUNITY PINNACLE THE MOST CONNECTED BRAND TO CREATIVE CULTURE ACTION Pinnacle is the center of excellence for our most elevated LIFESTYLE product expressions and brand experiences, and the platform SPORTS where the brand en
Slide 79: Vans Growth Drivers
VANS GROWTH DRIVERS ACTIONS TO REFRESH, REFOCUS, REACCELERATE 1 2 3 4 CONSUMER PRODUCTS MARKETPLACE OPERATING MODEL I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 80: Refocus: Digital Will Lead DTC Marketplace Strategy
3 REFOCUS: DIGITAL WILL LEAD OUR DIRECT-TO-CONSUMER MARKETPLACE STRATEGY DIGITAL DTC BRICK AND MORTAR DTC I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 81: Refocus: International Penetration Through Regional Localization
3 REFOCUS: INTERNATIONAL PENETRATION WILL GROW THROUGH REGIONAL LOCALIZATION FY22 REVENUE BY REGION LOCAL OPPORTUNITIES APAC 14% EMEA 22% FY22 AMERICAS 64% I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 82: Vans Growth Drivers
VANS GROWTH DRIVERS ACTIONS TO REFRESH, REFOCUS, REACCELERATE 1 2 3 4 CONSUMER PRODUCTS MARKETPLACE OPERATING MODEL I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 83: Refocus: Evolving Organization and Operating Model
4 REFOCUS: WE ARE EVOLVING OUR ORGANIZATION AND OPERATING MODEL TO BE FIT FOR FUTURE TO MARKETING PRODUCT < 25% PINNACLE of business DIGITAL CONSUMER / LEGAL PRODUCT FOCUS ACTION SPORTS SUPPORT STRATEGY HR FUNCTIONS FINANCE LIFESTYLE DATA / INSIGHTS SUPPLY CHAIN I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 84: Vans Growth Drivers
VANS GROWTH DRIVERS ACTIONS TO REFRESH, REFOCUS, REACCELERATE 1 2 3 4 CONSUMER PRODUCTS MARKETPLACE OPERATING MODEL I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 85: FY27 Vans Revenue Target
FY27 VANS REVENUE TARGET + Mid-Single Digit % CAGR I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 86: Our Commitments
OUR COMMITMENTS DELIVER CONSISTENT, SUSTAINABLE, AND PROFITABLE GROWTH Be consumer-led Obsess over product Reshape the marketplace Evolve the operating model I N V E S T O R D AY 2 0 2 2 / V AN S
Slide 87: The North Face Brand Overview
Sp anD OVERVIE NICOLE OTTO GLOBAL BRAND PRESIDENT THE NORTH »FACER INVESTOR DAY 2022
Slide 88: The North Face Journey
THE NORTH FACE JOURNEY I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 89: The North Face Growth Under VF
THE NORTH FACE GROWTH UNDER VF $3.3B $0.2B 2000* 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY17** FY18** FY19 FY20 FY21 FY22 Hyper Growth Product Reset Sustainable Growth +22% CAGR +4% CAGR +7% CAGR *2000 reflects only VF post-acquisition revenue **FY17 and FY18 repr
Slide 90: Consumer and Innovation Focus Have Been Pivotal to Success
CONSUMER AND INNOVATION FOCUS HAVE BEEN PIVOTAL TO SUCCESS BEST-IN-CLASS PRODUCT INSPIRATION LOYALTY ALWAYS GROUNDED IN VALUES, SUSTAINABILITY AND PURPOSE I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 91: Where We Are Headed
WHERE WE ARE HEADED I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 92: Future Success Requires Clear Vision and Direction
FUTURE SUCCESS REQUIRES CLEAR VISION AND DIRECTION MISSION To share the wonder and joy of the outdoors through exploration. VISION Be the world’s leading Outdoor brand anchored in pinnacle performance, iconic style, and authenticity - adopted by explorers everywhere. POSITION Athlete-tested, Expedit
Slide 93: The North Face Growth Drivers
THE NORTH FACE GROWTH DRIVERS 1 2 3 4 CONSUMER PRODUCT MARKETPLACE REGIONS I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 94: Growth Drivers: Consumer
THE NORTH FACE GROWTH DRIVERS CONSUMER We are hyper-focused on welcoming consumers into the outdoors 1 2 3 4 CONSUMER PRODUCT MARKETPLACE REGIONS I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 95: Our Consumer Is the Progressive Explorer
1 OUR CONSUMER IS THE PROGRESSIVE EXPLORER Progressive Explorers understand that Outdoor exploration creates deeper connections with themselves, their community, and the world around them. They are moved by our brand purpose & values and are drawn to our iconic style. I N V E S T O R D AY 2 0 2 2 /
Slide 96: Progressive Explorer Brand Expectations
1 PROGRESSIVE EXPLORER BRAND EXPECTATIONS ENABLED AND INSPIRED VERSATILITY AND MAKE A POSITIVE IMPACT ON TO GET OUTDOORS STYLE YEAR-ROUND THE PLANET AND SOCIETY I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 97: Growth Drivers: Product
THE NORTH FACE GROWTH DRIVERS PRODUCT Our product innovation enables consumers to enjoy and explore the outdoors 1 2 3 4 CONSUMER PRODUCT MARKETPLACE REGIONS I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 98: Performance and Performance-Inspired Product Will Drive Growth
2 PERFORMANCE AND PERFORMANCE-INSPIRED PRODUCT WILL DRIVE GROWTH OUTDOOR PERFORMANCE PERFORMANCE-INSPIRED WIN IN SNOW, LEADING EXTEND HIKE AND TRAIL DISTORT AMPLIFY ICONS, WITH SUMMIT SERIES THROUGH OUTDOOR ACTIVE FOOTWEAR GROWTH ENERGIZE WITH COLLABS I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F
Slide 99: Growth Drivers: Marketplace
THE NORTH FACE GROWTH DRIVERS MARKETPLACE We are committed to giving our consumers the best experience in all channels, leading with DTC 1 2 3 4 CONSUMER PRODUCT MARKETPLACE REGIONS I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 100: Owned Digital and Omni Experience Will Lead Growth
3 OWNED DIGITAL AND OMNI EXPERIENCE WILL LEAD GROWTH ENSURE BEST-IN-CLASS BREAK DOWN THE WALLS ELEVATE STRATEGIC DIGITAL JOURNEYS BETWEEN DIGITAL AND PHYSICAL PARTNERS DOUBLE 300+ DOUBLE DIGIT DIGIT NEW MONO- KEY ACCOUNT GROWTH IN BRAND GROWTH DIGITAL EXPERIENCES I N V E S T O R D AY 2 0 2 2 / T H E
Slide 101: Growth Drivers: Regions
THE NORTH FACE GROWTH DRIVERS REGIONS Each region’s priorities are aligned with our commitment to stay globally consistent, yet locally relevant 1 2 3 4 CONSUMER PRODUCT MARKETPLACE REGIONS I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 102: Regional Growth Tactics Vary Based on Market
4 REGIONAL GROWTH TACTICS VARY BASED ON MARKET AMERICAS EMEA APAC Drive marketplace Curate region-specific Build Outdoor consumer through Digital offerings for Outdoor demand Deliver in-person & Distort Germany, Grow premium and omni-channel experience maintain UK leadership versatile pr
Slide 103: Financial Summary
FINANCIAL SUMMARY I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 104: Win in Our Core While Evolving Our Business by FY27
WIN IN OUR CORE WHILE EVOLVING OUR BUSINESS BY FY27 WIN IN SNOW AND OUTERWEAR TRIPLE REVENUE TRIPLE REVENUE DOUBLE REVENUE HIKE / TRAIL / ACTIVE FOOTWEAR MONO-BRAND EXPERIENCE FY27 TARGETS 50% DTC vs. 50% WHOLESALE 50% AMERICAS vs. 50% INTERNATIONAL I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F A
Slide 105: FY27 The North Face Revenue Target
FY27 THE NORTH FACE REVENUE TARGET + High Single to Low Double-Digit % CAGR I N V E S T O R D AY 2 0 2 2 / T H E N O R T H F AC E
Slide 106: Our Commitments
OUR COMMITMENTS Obsess our consumer and authentically welcome them to the outdoors Create innovative product that serves consumers year-round and head-to-toe Serve consumers with best-in-class experiences in all channels, leading with DTC Grow in all regions through global energy and local r
Slide 107: Dickies Brand Overview
Slide 108: Dickies 100 Years Strong
DICKIES 100 YEARS STRONG BUILDING AN AMAZING STORY, FROM WWII TO THE SUPER BOWL I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 109: Global Dickies Revenue FY19 to FY22
GLOBAL DICKIES REVENUE FY19 TO FY22 SIMPLIFYING OUR MODEL TO FOCUS ON THE CONSUMER DICKIES HISTORICAL REVENUE +19% +4% +7% $0.8B $0.7B $0.6B $0.6B FY19 FY20 FY21 FY22 Growth % reflects C$ Simplified the operating model Focused on the consumer Moved away from dilutive businesses Profit accele
Slide 110: Shape of Business at a Glance FY22
SHAPE OF BUSINESS AT A GLANCE FY22 CHANGING THE COMPOSITION OF THE BUSINESS REGIONS CHANNELS CATEGORIES APAC DTC: 17% DTC: STORES DIGITAL WORK- 2% 16% LIFESTYLE EMEA 31% 11% AMERICAS WORK 72% 69% WHOLESALE 82% Building a global strategy Accelerating DTC Balancing Work and Work-Lifestyle I N V E S T
Slide 111: Dickies Growth Drivers
DICKIES GROWTH DRIVERS DELIVERING BALANCED AND CONSISTENT GROWTH 1 2 3 UNLOCK NEW CONSUMERS CONNECT, ATTRACT AND AMPLIFY THE BRAND THROUGH ICON ELEVATION RETAIN CONSUMERS IN KEY REGIONS I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 112: Unlocking New Consumers
1 UNLOCKING NEW CONSUMERS EXPANDING CONSUMER REACH IN MULTIPLE, YET FOCUSED DIRECTIONS LIFESTYLE OUTREACH WORK ELEVATION SKILLED TRADES STREETWEAR CORE WORK OUTDOOR SKATE I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 113: Elevating Icons
1 ELEVATING ICONS UPDATING THE FOUNDATION FOR NEW WEARING OCCASIONS COLLABORATIONS FUTURE ICONS COLLECTIONS FRANCHISES I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 114: Building Dickies' Community
2 BUILDING DICKIES’ COMMUNITY CREATING A FLYWHEEL FOR FUTURE MOMENTUM
Slide 115: Creating Brand Excitement
2 CREATING BRAND EXCITEMENT CAPTURING MOMENTUM AND COMMITTED TO BRINGING NEW ENERGY 70% BRAND AWARENESS* +17% SEARCH INTEREST** 7.5B IMPRESSIONS*** *2H’FY22 vs. 2H’FY21 **FY22 vs. FY21 ***During the Dickies’ 100-year anniversary campaign
Slide 116: Digital Enablement
2 DIGITAL ENABLEMENT BUILDING ENGAGEMENT TO FUEL FUTURE GROWTH MAKERS 4783 POINTS EARN CONTENT ENGAGEMENT LOYALTY I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 117: Amplifying Key Markets
3 AMPLIFYING KEY MARKETS BUILDING GLOBAL GROWTH WITH A LEVERAGED OPERATING MODEL FUELING EUROPE’S GROWING MARKETS ELEVATING AMERICA’S GROWTH IN ASIA DISTRIBUTION I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 118: FY27 Dickies Revenue Target
FY27 DICKIES REVENUE TARGET + High Single Digit % CAGR I N V E S T O R D AY 2 0 2 2 / D I C K I E S
Slide 119: Our Commitments
OUR COMMITMENTS SIMPLIFIED OPERATING MODEL AND BUILT FOR STRONG, SUSTAINABLE GROWTH Realize our opportunities. We are still early in our journey, with significant runway ahead. We will continue to increase penetration and add new consumers. Leverage our strong, global brand. Creating the global
Slide 120: Brand Overview
BRAND OVERVIEW a 0
Slide 121: Recent Momentum Across Both Revenue and Profit
RECENT MOMENTUM ACROSS BOTH REVENUE AND PROFIT FY19 TO FY22 TIMBERLAND HISTORICAL REVENUE -5% -17% +20% $1.9B $1.8B $1.8B $1.5B FY19 FY20 FY21 FY22 Growth % reflects C$ I N V E S T O R D AY 2 0 2 2 / T I M B E R L AN D
Slide 122: Shape of Business at a Glance FY22
SHAPE OF BUSINESS AT A GLANCE FY22 REGIONS PRODUCTS CHANNELS CATEGORIES ACCESSORIES/OTHER 7% DTC: APAC DIGITAL 14% PRO APPAREL 14% 16% 17% AMERICAS DTC: TREE EMEA 52% STORES WHOLESALE 84% 34% FOOTWEAR 21% 65% 76% Recovery post-Covid Growth in apparel Digital acceleration PRO acceleration momentum in
Slide 123: We Have Sharpened Our Focus to Set the Stage for Growth
WE HAVE SHARPENED OUR FOCUS TO SET THE STAGE FOR GROWTH PERFORMANCE FINANCIAL CONSUMER BRAND PRODUCT MARKETPLACE Aligned on adventurous Sharpened brand DNA: no work, no outdoor, no story Streamlined SKUs Energized & optimized doer as consumer muse GTM process Delivered on purpose to build
Slide 124: Work, Outdoor and Life
& MO INORK 0 OUTDOOR OUTDOOR ‘Allday hiking is the defining activ, but weequip for versatity on and offthe tral Work isthe defining activity, but we equip for versatity| (on and off the job TIMBERLAND LIFE ‘The everyday huste isthe defining acthty and we draft from our ‘work and outdoor positioning
Slide 125: Timberland Growth Drivers
TIMBERLAND GROWTH DRIVERS 1 2 3 4 ACTIONABLE BOLD, DISTINCTIVE, ENERGIZED, GLOBAL CONSUMER INSIGHTS FOCUSED BRAND DESIRABLE PRODUCT MARKETPLACE Membership program Built for the Bold Women’s Key city focus Enhanced consumer insights 50th anniversary Work (PRO) Phy-gital launch culture
Slide 126: Timberland Growth Drivers: Bold, Focused Brand
TIMBERLAND GROWTH DRIVERS BOLD, FOCUSED BRAND 1 2 3 4 ACTIONABLE BOLD, DISTINCTIVE, ENERGIZED, GLOBAL CONSUMER INSIGHTS FOCUSED BRAND DESIRABLE PRODUCT MARKETPLACE Membership program Built for the Bold Women’s 11 key cities Enhanced consumer insights 50th anniversary Work (PRO) Phy-g
Slide 127: Launching New Campaign for 50th Anniversary
2 LAUNCHING NEW CAMPAIGN SETTING THE STAGE FOR OUR 50 TH ANNIVERSARY I N V E S T O R D AY 2 0 2 2 / T I M B E R L AN D
Slide 128: Engaging and Growing Our Community
2 ENGAGING AND GROWING OUR COMMUNITY THROUGHOUT OUR 50 TH ANNIVERSARY YEAR I N V E S T O R D AY 2 0 2 2 / T I M B E R L AN D
Slide 129: Timberland Growth Drivers: Distinctive, Desirable Product
TIMBERLAND GROWTH DRIVERS DISTINCTIVE, DESIRABLE PRODUCT 1 2 3 4 ACTIONABLE BOLD, DISTINCTIVE, ENERGIZED, GLOBAL CONSUMER INSIGHTS FOCUSED BRAND DESIRABLE PRODUCT MARKETPLACE Membership program Built for the Bold Women’s 11 key cities Enhanced consumer insights 50th anniversary Work (P
Slide 130: Winning with Her by Focusing on Her End-to-End
3 WINNING WITH HER BY FOCUSING ON HER FROM END-TO-END INSIGHTS GO-TO-MARKET APPAREL IDENTITY Know her needs to inform Shorten calendar to improve Authentic and feminine, for her product/marketing seasonal insight, leverage trends wearing occasions and focus on her ORGANIZATION PRODUCT FOR HER
Slide 131: Growing Timberland PRO from Work-to-Weekend
3 GROWING TIMBERLAND PRO FROM WORK-TO-WEEKEND SERVE THE WIN THE WORKER ENGAGE POWERFULLY AUTHENTIC WORKER OFF THE JOBSITE WITH THE WORK CONSUMER Capitalize on the $1 trillion Strengthen apparel offering, “Your calling is calling” campaign infrastructure bill ($550B in sectors work-to-weekend w
Slide 132: Driving Innovation Through The Shed
4 DRIVING INNOVATION THROUGH THE SHED NEW PRODUCT ENABLE VISUALIZATION, STORYTELLING CREATION MODEL COLLABORATION Hyper-transparent Better, faster, more efficient AND PROBLEM-SOLVING work/outdoor storytelling in real time I N V E S T O R D AY 2 0 2 2 / T I M B E R L AN D
Slide 133: Timberland Growth Drivers: Energized, Global Marketplace
TIMBERLAND GROWTH DRIVERS ENERGIZED, GLOBAL MARKETPLACE 1 2 3 4 ACTIONABLE BOLD, DISTINCTIVE, ENERGIZED, GLOBAL CONSUMER INSIGHTS FOCUSED BRAND DESIRABLE PRODUCT MARKETPLACE Membership program Built for the Bold Women’s 11 key cities Enhanced consumer insights 50th anniversary Work (PR
Slide 134: Building Global Energy Across 11 Key Cities
4 BUILDING GLOBAL ENERGY WITH STRATEGIC EXECUTION ACROSS 11 KEY CITIES DEEP CONSUMER INSIGHTS PRODUCT STRATEGY Understanding where consumers City-specific assortments and live, shop, spend time marketing MARKETPLACE SEGMENTATION BRING ENERGY Elevated consumer experience, Community programs,
Slide 135: FY27 Timberland Revenue Target
FY27 TIMBERLAND REVENUE TARGET + Mid-Single Digit % CAGR I N V E S T O R D AY 2 0 2 2 / T I M B E R L AN D
Slide 136: Our Commitments
OUR COMMITMENTS No Work No Outdoor No Story. Be clear and focused in our products, in our channels and in our messaging Be Bold. Continue to help move the world forward one boot at a time Expand our Reach to deliver the best products and experiences in women's, apparel and PRO (in addition to
Slide 137: Brand Overview
BRAND OVERVI
Slide 138: Supreme at a Glance
SUPREME AT A GLANCE* FOOTPRINT KEY FACTS 4 4 6 14 Flagship stores 100% Direct to consumer % of revenue 1 1 1 3 Ecomm stores >70% Digital % of revenue AMERICAS >60% North America % of revenue EMEA 2 1 1 4 Other retail locations APAC >90% Newness per collection 40 Releases each year JAPAN CATEGORY MIX
Slide 139: The Model
THE MODEL SUPREME IS AUTHENTIC SUPREME IS SCARCE SUPREME IS GLOBAL SUPREME IS AGILE I N V E S T O R D AY 2 0 2 2 / S U P R E M E
Slide 140: The Consumer
THE CONSUMER I N V E S T O R D AY 2 0 2 2 / S U P R E M E
Slide 141: Supreme Growth Drivers
SUPREME GROWTH DRIVERS PRODUCT/ CATEGORY EXPANSION BRAND INVESTMENT GROW WIDE DIVERSIFY OFFERING DOUBLE DOWN INVESTMENT GROW AWARENESS COMPLEMENT EXISTING LEVERAGE NEW/EXISTING ENGAGE NEW CONSUMERS COLLABORATIONS VEHICLES PRESERVE SCARCITY PEOPLE / SYSTEMS EVOLVE, DEVELOP AND CONTINU
Slide 142: Grow Wide
GROW WIDE Existing Stores Ecomm Only Both Ecomm and Retail New Geographies Neither I N V E S T O R D AY 2 0 2 2 / S U P R E M E
Slide 143: FY27 Supreme Revenue Target
FY27 SUPREME REVENUE TARGET + High Single to Low Double-Digit % CAGR I N V E S T O R D AY 2 0 2 2 / S U P R E M E
Slide 144: Our Commitments
OUR COMMITMENTS Supreme will be Supreme. We will continue to protect the unique Supreme business model and brand DNA Evolve and adapt. Part of being Supreme is adjusting and shifting with consumers and culture, we will always undertake thoughtful and planned changes 1+1=3. Supreme will benefit
Slide 145: Financial Review
FINANCIAL REVIEW == MATT PUCKETT EVP, CHIEF FINANCIAL OFFICER
Slide 146: VF Is a Portfolio of Growth Brands
VF IS A PORTFOLIO OF GROWTH BRANDS
Slide 147: VF Is Strong Through Uncertain Times
VF IS STRONG THROUGH UNCERTAIN TIMES VF ADVANTAGED BUSINESS M ODEL M ACRO CHALLENGES Active-lifestyle brands with deep consumer connections CHANGING CONSUMER DYNAMIC Innovative and unique products with pricing power VOLATILE GLOBAL ENVIRONMENT Omnichannel experience powered by Data & Analytics to de
Slide 148: Active Management of Our Purposefully-Built Portfolio
ACTIVE MANAGEMENT OF OUR PURPOSEFULLY-BUILT PORTFOLIO FY19 REVENUE* ACQUISITIONS & DIVESTITURES FY22 REVENUE REGIONS ACQUISITIONS REGIONS US US 55% 52% CHINA CHINA 8% 6% INTERNATIONAL INTERNATIONAL 45% 48% CHANNELS DIVESTITURES CHANNELS WHOLESALE WHOLESALE 63% 54% DTC DTC 46% 37% DTC DIGITAL DTC DIG
Slide 149: Delivering Growth and Significant Cash Generation Throughout Disruption
DELIVERING GROWTH AND SIGNIFICANT CASH GENERATION THROUGHOUT DISRUPTION FY19 – FY22 FINANCIAL PERFORMANCE REVENUE* EPS* FREE CASH FLOW** +5% +7% $2.9B CAGR C$ CAGR C$ *FY19-FY22 actual as reported with continuing operations; organic C$ CAGR excluding Supreme acquisition was +3% for revenue, +4% for
Slide 150: Broad-Based Performance and Strength of Our Portfolio of Brands
BROAD-BASED PERFORMANCE AND STRENGTH OF OUR PORTFOLIO OF BRANDS REVENUE BRAND PROFIT CONTRIBUTION Balance of Portfolio FY19 FY22 FY19 FY22 Consistent brand profit contribution growth despite Vans' lagging performance I N V E S T O R D AY 2 0 2 2 / F I N AN C I A L R E V I E W
Slide 151: Revised FY23 Outlook
REVISED FY23 OUTLOOK PRIOR OUTLOOK REVISED OUTLOOK Revenue (C$) + at least 7% +5% to +6% The North Face® + low double-digit % + at least low double-digit % Vans® + mid-single digit % down mid-single digit % Adjusted gross margin up slightly vs. LY (bps) down ~50bps vs. LY Adjusted operating margin ~
Slide 152: FY27 Targets
'FY27 TARGETS
Slide 153: FY27 Global Revenue Target
FY27 GLOBAL REVENUE TARGET + Mid-Single to High Single Digit % CAGR
Slide 154: Building Brands for Long-Term, Sustainable Growth
BUILDING BRANDS FOR LONG-TERM, SUSTAINABLE GROWTH BALANCE OF BALANCE OF PORTFOLIO PORTFOLIO OUTDOOR OUTDOOR 5% 4% EMERGING EMERGING BRANDS BRANDS 5% 7% SUPREME SUPREME 5% 6% VANS VANS 31% DICKIES 35% DICKIES 7% + mid- to high single digit 8% FY22 % CAGR FY27 TIMBERLAND 15% TIMBERLAND 14% THE NORTH F
Slide 155: FY27 Revenue Target: The North Face
FY27 REVENUE TARGET: + HSD TO LDD % CAGR Leverage leadership and authenticity in Outdoor to gain share Fuel growth in all categories, driven by strong innovation pipeline, driving outsized growth in footwear and Active/Train Generate faster growth in underpenetrated spring and summer categorie
Slide 156: FY27 Revenue Target: Vans
FY27 REVENUE TARGET: + MSD % CAGR Focus on our heritage, rooted in action sports culture Create energy from the product pipeline with a focus on icons and style adaptations, Progression footwear and apparel Build heat and excitement through Pinnacle products and distribution along with impactf
Slide 157: FY27 Revenue Target: Timberland
FY27 REVENUE TARGET: + MSD % CAGR Further strengthen connection and engagement with the consumer Leverage core icons for consistent growth, and emphasize our heritage and authenticity in our Outdoor and Work products Build a more relevant women’s business Drive outsized growth in Digital, co
Slide 158: Leveraging Our Platforms to Diversify Revenue Streams
LEVERAGING OUR PLATFORMS TO DIVERSIFY REVENUE STREAMS REGIONS AMERICAS EMEA APAC + MSD + HSD to LDD + HSD to LDD % CAGR % CAGR % CAGR % OF FY27 REVENUE ~50% INTERNATIONAL CHANNELS WHOLESALE DTC: DIGITAL DTC: STORES + MSD + LDD + MSD % CAGR % CAGR % CAGR % OF FY27 REVENUE ~35% TOTAL DIGITAL I N V E S
Slide 159: Positioned to Accelerate Profitable, Broad-Based Growth
POSITIONED TO ACCELERATE PROFITABLE, BROAD-BASED GROWTH REVENUE BRAND PROFIT CONTRIBUTION Balance of Portfolio FY22 FY27 FY22 FY27 I N V E S T O R D AY 2 0 2 2 / F I N AN C I A L R E V I E W
Slide 160: Committed to Driving Margin Expansion
COMMITTED TO DRIVING MARGIN EXPANSION FY27 OPERATING MARGIN TARGET ~15 % Gross margin expansion driven by: SG&A leverage driven by: Region and channel mix evolution Maintained key investment spend Leverage scale, speed and agility Dynamic resource allocation Strong brands with continued pr
Slide 161: Strong Cash Generation Will Support Consistent Returns to Shareholders
STRONG CASH GENERATION WILL SUPPORT CONSISTENT RETURNS TO SHAREHOLDERS FY27 CUMULATIVE TARGET FREE CASH FLOW GENERATION AVAILABLE TO RETURN TO SHAREHOLDERS ~$5.5B ~$7B I N V E S T O R D AY 2 0 2 2 / F I N AN C I A L R E V I E W
Slide 162: Capital Allocation Remains Consistent
CAPITAL ALLOCATION REMAINS CONSISTENT ORGANIC GROWTH Make investments necessary to support and accelerate the brands’ and enterprise strategies DIVIDEND ~50% payout target BUSINESS DEVELOPMENT AND M&A Excess capital and capacity enabling a continued focus on portfolio management as well as act
Slide 163: Positioned to Achieve Elevated TSR
POSITIONED TO ACHIEVE ELEVATED TSR BALANCED VALUE CREATION MODEL + LDD to low-teens % +3% to +4% -2% to -1% +2% to +3% + LSD % + MSD to HSD % REVENUE NON- S HARE O R G A N I C T O TA L O P E R AT I N G DIVIDEND GROWTH O P E R AT I N G RE P URCHAS E S HARE HO LDE R MARG I N YIELD I M PA C T RETURN E
Slide 164: Confident in Our Brands, Our Strategy, Our People
CONFIDENT IN OUR BRANDS, OUR STRATEGY, OUR PEOPLE
Slide 165: Our Commitments
OUR COMMITMENTS Drive broad-based growth through a portfolio of leading brands Take action to strengthen our position in any environment Execute ambitious yet achievable growth plan with expanding margins Enable capital allocation flexibility through strong cash generation Deliver elevated
Slide 166: Q&A
Q&A
Slide 167: VF Brands
VANS THE “OFF THE WALL" NORTH oneay Dicki Supri eme ICKICS a Smartwool.#) icebreaker posrom kipling EASTPAK SX UZ
Slide 168: Appendix
_ “APPENDIX
Slide 169: 12 Brands Snapshot
SNAPSHOT 12 BRANDS FY’22 REVENUE 1 $11.8 BILLION BRANDS REGIONS CHANNELS APAC TIMBERLAND 14% DTC DIGITAL 15% 20% DICKIES VANS 7% 35% SUPREME 5% AMERICAS EMEA 57% 29% BALANCE OF DTC STORES WHOLESALE PORTFOLIO 5% 26% 54% OUTDOOR EMERGING THE NORTH FACE BRANDS 28% 5% 1. All financial information provid
Slide 170: GAAP to Non-GAAP
GAAP TO NON-GAAP I N V E S T O R D AY 2 0 2 2 / F I N AN C I A L R E V I E W
Slide 171: GAAP to Non-GAAP
GAAP TO NON-GAAP I N V E S T O R D AY 2 0 2 2 / F I N AN C I A L R E V I E W
Slide 172: Supplemental Financial Information
SUPPLEMENTAL FINANCIAL INFORMATION I N V E S T O R D AY 2 0 2 2 / F I N AN C I A L R E V I E W