CFO Letter

A Letter from Scott Roe, Vice President and Chief Financial Officer

“Sustainability and responsibility add meaningful and measurable benefits to our business and our shareholders.”

13000Scott Roe, Vice President and Chief Financial Officer

VF is focused on delivering sustainable, long-term growth to our shareholders. We do this by setting lofty goals, putting the right people and resources on the task and diligently measuring the results of our actions to ensure that our shareholders are rewarded for our efforts.

It is precisely this same discipline that gives us confidence that we will become an even more responsible company each year. Past performance, along with our leadership position, affords us a unique ability to shape our company’s future while having a positive influence within the apparel and footwear industry. We will continue to pursue responsible and sustainable ways to partner with our suppliers, customers and consumers.

The good news is that a profitable business can also be a responsible one. We consider environmental waste to be financial waste, and we focus on preventing both. Sustainability efforts have enabled VF to save $20 million dollars in energy costs since 2009 by reducing energy usage, even though VF’s site count has grown by more than 400 during the same period. These efforts have included employee-led Green Team efforts, energy efficiency projects and capital investments in renewable energy. Such initiatives are not only good for the planet, but they also contribute to bottom-line savings, giving us the ability to deliver growing shareholder value.

Our brands are focused on creating compelling products that meet our consumers’ demands for performance, style and durability, and their expectations related to responsible materials and design. Solving a consumer need in a more sustainable way often leads to innovations that would not be possible without the added expectation of reducing the impact on the planet. For example, the Timberland® brand has made a choice to build sustainability into the core of its products by implementing environmental product standards and using recycled, organic or renewable materials across all of their business units. From recycled fleece in its Denali Jacket to local production in the Backyard Hoodie, The North Face® brand continues to deliver top-tier technical products that incorporate sustainable materials and manufacturing practices wherever possible. And, our Wrangler® and Lee® businesses in Europe combined source more than 25 percent of their total cotton as Better Cotton.

Sustainability and responsibility add meaningful benefits to our business and our shareholders. And we are only at the beginning of our journey. We will continue to make significant investments in socially and environmentally responsible initiatives throughout our business. We know those investments will yield measurable value for our customers and consumers, our brands, the communities where we operate and our shareholders.

13001Scott Roe, Vice President and Chief Financial Officer