VFSLA & AAPN November 28, 2012

1. YOU ARE HERE VFSLA & AAPN November 28, 2012

2. VF Mission Statement VF’s vision is to growby building leading lifestyle brands that excite consumersaround the world

3. VF Supply Chain - Worldwide per year per day per hour per minute per second 428,000,000 1,172,603 48,858 814 14 Units 760,000 Style/Color Items

4. VF believes in the Western Hemisphere • $1B in sourced & manufactured product • 20,000 of the 28,000 employees in supply chain are in the W. Hemisphere • Opened VFSLA in October 2010 • Includes 3 main components: • Procurement • Internal Manufacturing • Sourcing • Other additions: • Finance, HR, Logistics, etc • Started with 40 employees, today we are double at 80 employees!

5. VFSLA Internal Manufacturing Largest garment producer Mexico/Central America… • World’s largest denim garment producer • 29 facilities worldwide, 25are in W. Hemisphere Largest footwear producer in the Caribbean

6. VFSLA Procurement Procure approximately 150Myds of fabric out of Panama per year…. • Purchases $650M of materials annually • Purchases 50+% of denim fabric produced in USA • Manage 2,300 active fabrics & 9,000 active trim items • Concentrates on Inventory management, cost containment & service

7. VFSLA Sourcing Manage ~$275M FOBper year in 11 countries for 7 brands…. • Shipping to 25 locations with 95%YTD On-time performance • Managing 4 Off Shore Offices (OSO), with employees in 6 countries • Maintaining a 1.5% Defect level on all product YTD • Sourcing through Full Package, CMT, & Bought / Shelf Product • Potential for 4 more brands in 2013….making 11

8. Sourcing Responsibilities Execute, execute, execute……. Understand Brands Needs Vendor Selection Social Compliance Confirmation / Evaluation of Capabilities Development Product trends & concepts Fabric Development Garment Development / Design Sampling Price Negotiation • Testing: RSL/ Product Safety • Quality Assurance • Order Management • Capacity Planning • Final Price Negotiation • Buy Confirmation • PO Management • Delivery Confirmation • On-time delivery

9. VFSLA Sourcing Growth 2009 – 2017

10. 2012 Sourced Product Mix

11. 2012 Sourcing Unit Volume

12. 2012 Sourcing FOB $ Volume

13. 60% in-country vs. 40% in Panama

14. The Region…from a VF Perspective Expanding!

15. The Region…from a VF Perspective • From the Fabric Manager… • Moving from 100% cotton to synthetics • Specializing in Performance features • Wicking, oil repellency, soil release, antimicrobials • New fibers or blends readily available • Coconut, Bamboo, Algae • Triblends • Seeing more warp knits • Woven offerings increasing but a lack of cut/sew • Working on Short Supply fabrics

16. The Region…from a VF Perspective • From the Testing Manager… • Focus on Testing & Compliance • Products going to multiple locations require different compliance procedures & standards • Customs issues delay the process • Building our own lab to be the 1st line of defense • Investing in technical knowledge to create better partnerships

17. The Region…from a VF Perspective • From the Quality Manager… • Not just a “end-of-line” audit anymore • Doing development approvals closer to the needle • Team approves protos, size sets, PPs & TOPs • They look at fit, color, graphic execution, etc • More than an auditor, we need a problem solver with a broad perspective • They need analytical skills to identify trends for a proactive approach, or just preventative maintenance • More than a vendor, we need a Partner • Vendors assume more responsibility for us – less babysitting

18. The Region…from a VF Perspective • From the Sourcing Managers… • Increased product diversity • High needle offerings • Not just apparel, accessories too • More full package options being offered • Working with partners, not just vendors • SPEED – 90 days is TOO long • From knits to outerwear, fire retardant coveralls to denim, socks to backpacks, we are doing it ALL in the Western Hemisphere! • Check out my samples!

19. The Region…from a VF Perspective • Haiti Potential • CMT vs Fabric value equation • Peru & Nicaragua slowing down • Nicaragua • TPL uncertainty • Peru • Great fabrics, high fashion, small runs • More Central American factories entering the market

20. The Region…from a VF Perspective • El Salvador, Guatemala & Honduras big players • El Salvador • New investment in the region • Supplier growth in yarns & fabrics offerings, resulting in expansion of product offerings • Guatemala • Wide array of fabric offerings & quick turn, leading to a Fashion focus • Honduras • Remaining strong in circular cotton knits & textile offerings

21. The Region…from a VF Perspective • Mexico & Colombia re-emerging • Mexico • Mentality shift • Offering up complete supply chains • More competitive on price & product offerings • Colombia • Targeted growth for Brazil & Argentina markets • Diversified product offerings • Fragmented, but improving

22. The Region…in Summary • Evolving mentalities • Performance shift & focus • Improvements in managing complexity • Need for more technical people • Speed still a major factor • Plenty of growth potential

23. Thank You …… Any Questions?