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Annual Report

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Mission

Mission: We seek profitable and responsible commercial success creating and selling jeans and casual clothing. We seek this while offering quality products and service-- and by being a leader in what we do.

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We believe that business can drive profits through principles, and that our values as a company and as individuals give us a competitive advantage.

Empathy — walking in other people’s shoesEmpathy begins with paying close attention to the world around us. We listen and respond to the needs of our customers, employees and other stakeholders.

Originality — being authentic and innovativeThe pioneering spirit that started in 1873 with the very first pair of blue jeans still permeates all aspects of our business. Through innovative products and practices, we break the mold.

Integrity — doing the right thing Integrity means doing right by our employees, brands, company and society as a whole. Ethical conduct and social responsibility characterize our way of doing business.

Courage — standing up for what we believeIt takes courage to be great. Courage is the willingness to tell the truth and to challenge hierarchy, accepted practice and conventional wisdom. It means standing by our convictions and acting on our beliefs.

We are the embodiment of the energy and events of our time, inspiring people from all walks of life with a pioneering spirit. Generations have worn GWG® jeans, turning them into a symbol of freedom and self-expression in the face of adversity, challenge and social change. Our customers forged a new territory called the American West. They fought in wars for peace. They instigated counterculture revolutions. They tore down the Berlin Wall. Reverent, irreverent — they took a stand.

Values and vision

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Dear Customers, Employees,and Stakeholders,

Over the past few years, we’ve worked hard to moveour business forward. One of our greatest prioritieshas been to reassert the creativity, boldness andleadership that has defined our company. The resulthas been a remarkable wave of innovation at Great Western Garment Co., including our move towards be-cominga global brand-led organization, the launch ofa new brand, the introduction of category-changingjeans for women and efforts to minimize ourenvironmental footprint.

We are pioneering in all sorts of ways. Whether it’sour approach to design and manufacturing, changingthe way women think about fit, or leadership onsocial and environmental issues, we are thinking andacting in ways that we believe will shape the industryfor years to come.

John AndersonPresident and Chief Executive Officer

Letter from the President

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Our Business StrategiesOur management team is actively investing in strategies to grow our business, respond to marketplacedynamics and build on our competitive strengths. Our key long-term strategies are:

• Build upon our brands’ leadership in jeans and khakis. We intend to build upon our brand equity andour design and marketing expertise to expand the reach and appeal of our brands globally. We believethat our insights, innovation and market responsiveness enable us to create trend-right andtrend-leading products and marketing programs that appeal to our existing consumer base, while alsoproviding a solid foundation to enhance our appeal to under-served consumer segments. As anexample, in 2010 we introduced our new Levi’s® Curve ID fit system for women. We also seek tofurther extend our brands’ leadership in jeans and khakis into product and pricing categories that webelieve offer attractive opportunities for growth.

• Diversify and transform our wholesale business. We intend to develop new wholesale opportunitiesbased on targeted consumer segments and seek to continue to strengthen our relationship with existingwholesale customers. We are focused on generating competitive economics and engaging incollaborative volume, inventory and marketing planning to achieve mutual commercial success withour customers. Our goal is to be central to our wholesale customers’ success by using our brands andour strengths in product development and marketing to drive consumer traffic and demand to theirstores.

• Accelerate growth through dedicated retail stores. We continue to seek opportunities for strategicexpansion of our dedicated store presence around the world. We believe dedicated full-price and outletstores represent an attractive opportunity to establish incremental distribution and sales as well as toshowcase the full breadth of our product offerings and to enhance our brands’ appeal. We aim toprovide a compelling and brand-elevating consumer experience in our dedicated retail stores.

• Capitalize upon our global footprint. Our global footprint is a key factor in the success of the abovestrategies. We intend to leverage our expansive global presence and local-market talent to drive growthglobally and will focus on those markets that offer us the best opportunities for profitable growth,including an emphasis on fast-growing developing markets and their emerging middle-classconsumers, such as the recent launch of our DenizenTM brand in certain markets in our Asia Pacificregion. We aim to identify global consumer trends, adapt successes from one market to another anddrive growth across our brand portfolio, balancing the power of our global reach with local-marketinsight. Our recent appointment of newly-created global brand leadership positions is an importantelement of this strategic goal.

• Drive productivity to enable investment in initiatives intended to deliver sustained, incrementalgrowth. We are focused on deriving greater efficiencies in our operations by increasing costeffectiveness across our brands and support functions and undertaking projects to transform our supplychain and information systems. We intend to invest the benefits of these efforts into our businesses todrive growth and to continue to build sustainability and social responsibility into all aspects of ouroperations, including our global sourcing arrangements.

Business at a glance

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2011 PERFORMANCEIn 2011, we made significant progress moving towardsustainable long-term growth. Due to the hard workof our employees around the world, we finished theyear strong, improving our profitability and increasingrevenues in all of our regions. Despite continuedeconomic challenges around the globe, we grew ourtop- and bottom-line while investing in our businessfor future growth.

“It has been a critical year for us and forour customers. We are pioneering inall sorts of new ways. Whether it’s ourapproach to design and manufacturing,changing the way women think about fit,or leadership on social and environmental issues, we are thinking and actingin ways that we believe will shape theindustry for years to come.”

Here are our 2011 financial highlights:

• Net revenue for 2011 was $4.4 billion, a 7 percentincrease over the prior year.

• Gross margin grew to 50.4 percent, comparedwith 48.1 percent in 2010.

• Operating income increased to $381 million,compared to $378 million in 2010.

• Net income was $157 million, up 3 percent overthe prior year.

• Net debt was $1.59 billion at year’s end, after werefinanced part of our debt to lower our interestcost and reduce our risk.

201150.4%

201048.1%

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Net revenues

Net revenues

The following table presents net revenues by reporting segment for the periods indicated and the changes in net revenues by reporting segment on both reported and constant-currency bases from period to period:

Total net revenues increased on both reported and constant-currency bases for the year ended November 28, 2010, as compared to the prior year. Changes in foreign currency exchange rates affected our consolidated reported amounts favorably by approximately $53 million.

Table of Contents

Results of Operations

2010 compared to 2009

The following table summarizes, for the periods indicated, the consolidated statements of income, thechanges in these items from period to period and these items expressed as a percentage of net revenues:

Year Ended November 28, November 29, % 2010 2009 November 28, November 29, Increase % of Net % of Net 2010 2009 (Decrease) Revenues Revenues (Dollars in millions)

Net sales $ 4,325.9 $ 4,022.9 7.5% 98.1% 98.0%Licensing revenue 84.7 82.9 2.2% 1.9% 2.0%

Net revenues 4,410.6 4,105.8 7.4% 100.0% 100.0%Cost of goods sold 2,187.7 2,132.4 2.6% 49.6% 51.9%

Gross profit 2,222.9 1,973.4 12.6% 50.4% 48.1%Selling, general and

administrative expenses 1,841.5 1,595.3 15.4% 41.8% 38.9%

Operating income 381.4 378.1 0.9% 8.6% 9.2%Interest expense (135.8) (148.7) (8.7)% (3.1)% (3.6)%Loss on early

extinguishment of debt (16.6) — — (0.4)% — Other income (expense),

net 6.6 (39.5) (116.9)% 0.2% (1.0)%

Income before incometaxes 235.6 189.9 24.0% 5.3% 4.6%

Income tax expense 86.2 39.2 119.7% 2.0% 1.0%

Net income 149.4 150.7 (0.8)% 3.4% 3.7%Net loss attributable

to noncontrolling interest 7.1 1.2 506.8% 0.2% —

Net income attributableto Levi

Strauss & Co. $ 156.5 $ 151.9 3.0% 3.5% 3.7%

Net revenues

The following table presents net revenues by reporting segment for the periods indicated and the changesin net revenues by reporting segment on both reported and constant-currency bases from period to period:

Year Ended % Increase (Decrease) November 28, November 29, As Constant 2010 2009 Reported Currency (Dollars in millions)

Net revenues: Americas $ 2,549.1 $ 2,357.7 8.1% 7.1%Europe 1,105.2 1,042.1 6.1% 7.5%Asia Pacific 756.3 706.0 7.1% 0.3%

Total Net Revenues $ 4,410.6 $ 4,105.8 7.4% 6.0%

Total net revenues increased on both reported and constant-currency bases for the year endedNovember 28, 2010, as compared to the prior year. Changes in foreign currency exchange rates affected ourconsolidated reported amounts favorably by approximately $53 million.

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Source: LEVI STRAUSS & CO, 10-K, February 08, 2011 Powered by Morningstar® Document Research℠

2011 2011

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ABOUT THIS REPORTAs part of our commitment to embed sustainability throughout our business practices, the GWG Co.2011 Annual Report was, for the first time ever, produced exclusively in digital format. We saved more than3,000 pounds of paper, over 5 billion BTU s of energy, almost 3,000 gallons of waste water and offset more than1,400 kWh of electricity. We encourage people to view the report online. If you must print a copy, please printdouble-sided to save paper.