investor presentation...this presentation contains additional trade names, trademarks and/or service...

Investor Presentation

©2019 Levi Strauss & Co.

Europe NDR

December 2019

DISCLAIMERS

FORWARD-LOOKING STATEMENTS

This presentation contains “forward-looking statements.” All statements other than statements of historical fact are forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning our anticipated financial performance, business prospects, strategic initiatives, debt reduction, currency values and financial impact, foreign exchange counterparty exposures, liquidity levels and dividends. In some cases, you can identify forward-looking statements by terminology such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “objective,” “ongoing,” “plan,” “predict,” “project,” “potential,” “should,” “will,” “would” or the negative of these terms or other comparable terminology.

Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results to differ materially from those expressed in the forward-looking statements. For a detailed discussion of many of these risks and uncertainties, see the section entitled “Risk Factors” in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov. All forward-looking statements contained in this presentation are qualified by these cautionary statements. The forward-looking statements contained in this presentation speak only as of the date of this presentation. We undertake no obligation to update any forward-looking statements after the date of this presentation or to conform such statements to actual results or revised expectations, except as required by law. Comparisons of results between current and prior periods are not intended to express any future trends, or indications of future performance, unless expressed as such, and should only be viewed as historical data.

GAAP AND NON-GAAP RESULTS

To supplement our consolidated financial statements prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures to provide investors with additional useful information about our financial performance, to enhance the overall understanding of our past performance and future prospects and to allow for greater transparency with respect to important metrics used by our management for financial and operational decision making. We are presenting these non-GAAP financial measures to assist investors in seeing our financial performance from management’s view and because we believe they provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry. However, non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. In addition, non-GAAP financial measures may be calculated differently from, and therefore may not be directly comparable to, similarly titled measures used by other companies. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our consolidated financial statements prepared and presented in accordance with GAAP. A reconciliation of these non-GAAP measures to their nearest equivalent GAAP measures can be found at https://investors.levistrauss.com/financials/quarterly-results/default.aspx.

FISCAL YEAR

Our fiscal year ends on the last Sunday in November. All year references in this presentation are to our fiscal years.

TRADEMARKS AND SERVICE MARKS

"Levi Strauss & Co.", "Levi Strauss", "Levi's", "Dockers", "501" "Signature by Levi Strauss & Co.", "Denizen", the Levi Strauss logo and the other trademarks and service marks of Levi Strauss & Co. appearing in this presentation are the property of Levi Strauss & Co. This presentation contains additional trade names, trademarks and/or service marks of others, which are the property of their respective owners. Solely for convenience, trademarks and trade names referring to this presentation generally appear without the ® or ™symbols.

©2019 Levi Strauss & Co. 2

1

TODAY’S PRESENTERS

3©2019 Levi Strauss & Co.

Key Investor Contacts

Chris Ogle and Aida Orphan

Investor Relations

(415) 501-6194

Chip BerghPresident &

Chief Executive Officer

PRIOR EXPERIENCE

Harmit SinghChief Financial Officer

PRIOR EXPERIENCE

STEPS IN THE ONGOING TRANSFORMATION

Commitment to Culture and Profits Through Principles

Significant Talent Upgrade

• Senior Management and Board of Directors

Investment Choices

• DTC, Brand Building, Innovation, Foundational Systems

Driving Financial Discipline

• Pay Down Debt, Improve Returns

Strategy

• Grow the Profitable Core

• Diversify Across Channels, Categories and Geographies


WE ARE FOCUSED ON DELIVERING SUSTAINED PROFITABLE GROWTH

1

2

3

4

5

LEVI STRAUSS & CO. IS A TRANSFORMED BUSINESS (1)

5

MEN’S(2)

69%

WOMEN’S(2)

29%

TOPS

20%

BOTTOMS

74% 6%

FOOTWEAR &

ACCESSORIES

86% 7% 7%


(1) CAGRs are for the period 2015 – 2018. Other percentages are of total net revenues in 2018. Other numbers are for or as of the end of 2018.

(2) 2% of net revenues in 2018 were from non-gendered products

ASIA,

MIDDLE EAST

AND AFRICA16%

EUROPE

29%

AMERICAS

55%

50,000+RETAIL

LOCATIONS

110+COUNTRIES

2018NET REVENUES

$5.6B

~3,000BRAND-

DEDICATED

STORES AND

SHOP-IN-SHOPS

WHOLESALE

(INCLUDING 7%

FRANCHISE)

65%RETAIL COMPANY-

OPERATED

31%

eCOMMERCE

(COMPANY-

OPERATED ONLY)

4%

CAGR: +31%

CAGR: +17%

CAGR: +4%

CAGR: +6%

CAGR: +3%CAGR: +6%

CAGR: +21%CAGR: +4%

CAGR: +14%

CAGR: +19%

CAGR: +4%

O U R S T R AT E G I E S A R E W O R K I N G : Q 3 Y T D 2 0 1 9

6

Strengthen position as a leadingomni-channel retailer

ENHANCE OUR

eCOMMERCE CAPABILITIES

COMPANY-OPERATED SITES

+24%

EXPAND

BRICK-AND-MORTAR

STORE NETWORK

+11%

+90 STORES since Q3’18 (net)

DEEP FOCUS ON SEAMLESS

CONSUMER EXPERIENCE

Drive the

profitable core

TOP 10

WHOLESALE

CUSTOMERS

+1%

MEN’S

BOTTOMS

BUSINESS

+3%

5 LARGEST

MATURE MARKETS

+5%

#1 JEANSWEAR BRAND

GLOBALLY(1)


Expand

for more

WOMEN’S

+15%

TOPS

+19%

VALUE

BRANDS

+9%

EUROPE

+15%

ASIA

+13%

Note: Unless otherwise noted all data above is for, or as of August YTD 2019. All percentages reflect constant-currency growth in net revenues year-to-date Q3 2019.

(1) Measured by 2018 retail sales.

(2) Year-over-year margin expansion excluding all currency effects, both translation and transaction; note that transaction effects result primarily from product sourced in USD or EUR.

Reported gross margin declined 40 basis points year-over-year due to the negative impact of currency (both translation and transaction) of 80 basis points

Enhance operational

excellence

F.L.X.: IMPROVED

FLEXIBILITY AND SPEED

TO MARKET

GROSS MARGIN

+ 40 BPS

EXCLUDING CURRENCY(2)

SOURCING FROM

APPROXIMATELY 25

COUNTRIES, WITH NO SINGLE

COUNTRY REPRESENTING

>20% OF OUR SOURCING

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwj5ivLvhIjfAhWnnuAKHePzDLgQjRx6BAgBEAU&url=https://en.wikipedia.org/wiki/France&psig=AOvVaw2cQy4O3STFW8_CZ65tLoEB&ust=1544076907306291

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwj_l6_5hIjfAhUSneAKHdeSArYQjRx6BAgBEAU&url=https://en.wikipedia.org/wiki/Mexico&psig=AOvVaw069iy2OcV0EPagO5B47S4G&ust=1544076928490399

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwin5aOBhYjfAhXDMd8KHVd5A3cQjRx6BAgBEAU&url=https://en.wikipedia.org/wiki/Germany&psig=AOvVaw2q_-ATSOx4Ystw6kSyyNoA&ust=1544076944641961

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwib1JqKhYjfAhUST98KHeJQBeIQjRx6BAgBEAU&url=https://en.wikipedia.org/wiki/United_Kingdom&psig=AOvVaw1xLh1BjxFBgSpFsPp7DIaR&ust=1544076964061933

https://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjr1qbOhYjfAhVhkuAKHQjhCOYQjRx6BAgBEAU&url=https://en.wikipedia.org/wiki/United_States&psig=AOvVaw0oRXYmZFhtCKOKGJBE86wE&ust=1544077105468485

NET REVENUE

Europe

$1.6B

(29%)

STRONG PROFIT LEVERAGE(2) PROFITABILITY

GROWING STORE FOOTPRINTCHANNEL SPLITS (1)

BRAND MIX (1)

2018

Total company

Revenue

$5.6B

BOTTOM’S, TOPS’S,

FOOTWEAR & ACCESSORIES (1)

MEN’S VS.

WOMEN’S(1)

WHOLESALE

FRANCHISE

RETAIL

COMPANY-

OPERATED

ECOMMERCE

(COMPANY-

OPERATED

ONLY)

96%

E U R O P E 2 0 1 8 : O U R B E S T R E G I O N A L E X A M P L E O F T H E B R A N D ’ S P O T E N T I A L

7

4%

300COMPANY OWNED &

OPERATED STORES

(+ another 204 Concession &

Commissionaire stores)

MEN’s

65%

WOMEN’s

35%TOPS

31%

BOTTOMS

57% 12%

45%

40%

4%

11%

OPERATING

MARGIN

18%

GROSS

MARGIN

~60%

Three consecutive years of

double-digit constant-

currency revenue growth…

…well outpacing market

growth

SUBSTANTIAL GROWTH

3yrs

EXECUTING ON

THE STRATEGY:

REVENUE

GROWTH (2)

20%

32%

55%

TopsDTC Women’s

FOOTWEAR &

ACCESSORIES

38%EBIT growth

on top of

21%Net Revenue growth

…resulting in EBIT margin

expansion of

220 bps

(1) Percentages are of Europe’s total net revenues in 2018.

(2) Growth vs. prior year in constant-currency. Note that regional EBIT is equal to regional operating income.

Note: Europe’s results include the company’s footwear and accessories business


DIVERSIFIED DISTRIBUTION NETWORK

SEGMENTED AND DIFFERENTIATED WHOLESALE GO-TO-MARKET STRATEGY

8

DEPARTMENT STORES

MASS

SPECIALTY

DIGITAL

WHOLESALE STRATEGIES (1)

Enhancing partnerships

with our key accounts

Expanding floor space at key accounts

and adding new accounts

Diversifying categories

to driving growth


(1) Global wholesale grew 5% Q3 year-to-date. Excluding the impacts of a decline in sales to one large retailer, the reset of

a product line and a reduction in sales to the off-price channel, U.S. Wholesale was roughly flat Q3 year-to-date.

EXPAND FOR MORE: TOPS AND INTERNATIONAL

9

Significant Market Growth OpportunitiesTops Momentum Is Strong

$1.1B of 2018 net revenues,

comprising a fifth

of total net revenues

Strong growth

+19% year-to-date

Q3 2019

Growth is broad-based across tops subcategories

Graphic tees +12% year-to-date Q3 2019


Digitizes denim finish design and reduces

finishing time

Improves inventory management

Eliminates thousands of chemical formulations

Reduces lead times

CONSUMER-DRIVEN PRODUCT INNOVATION


Innovated our product offerings to meet the evolving

tastes of today’s consumers with an emphasis on

fit, finish and fabric

Completed the women’s relaunch in 2015

Women’s bottoms net revenues CAGR of 16%

from platform relaunch in 2015 to 2018

Redesigning the shopping experience through

customization and personalization with a focus on

delivering a frictionless omni-channel environment

DIRECT-TO-CONSUMER IS A CORE COMPONENT OF OUR GROWTH STRATEGY

11

DTC business has grown from 29% of net revenues in 2015

to 37% of net revenues in the first nine months of 2019

DTC channel enables better control

of our brands and drives meaningful

connections with our consumers

Innovative eCommerce features such as “Ask

Indigo” designed to drive increased traffic,

conversion and order size


PROFITS THROUGH PRINCIPLES


SOCIAL & ENVIRONMENTAL

SUSTAINABILITY

100% Sustainably-Sourced Cotton

80+% of Levi’s® Products are Water<less®

80% of Products Made at

Worker Well-Being Factories

Industry Adoption of Screened Chemistry

2020 Targets

GIVING BACK

TO OUR COMMUNITIES

Community Engagement

Red Tab Foundation

Levi Strauss Foundation

ADVOCATING FOR

WHAT’S RIGHT

LGBTQ+ Equality

Tackling Climate Change

Gun Violence Prevention

Voter Engagement

LEVI’S®: OPPORTUNITIES FOR CONSISTENT SUSTAINABLE GROWTH


Note: Chart not to scale; represents growth opportunities and not actual or projected growth.

POTENTIAL TO ENTER AND EXPAND

IN OTHER CATEGORIES THAT ARE

SMALLER FOR US TODAY

TOPS HAVE NEARLY DOUBLED

AS A PERCENTAGE OF TOTAL

NET REVENUES SINCE 2015

SIGNIFICANT SUCCESS IN

WOMEN’S BOTTOMS SINCE

2015 RELAUNCH

MEN’S BOTTOMS:

CONTINUED

SOLID GROWTH

FINANCIAL OVERVIEW


FINANCIAL EXECUTIVE SUMMARY

16

1

We have delivered six

consecutive years of

strong financial

performance with a

recent inflection

towards higher

profitable growth

3

We have improved our

overall financial profile

and balance sheet while

maintaining a disciplined

approach to investment

1

We have a consistent

track record of delivering

strong financial

performance with a recent

inflection towards higher

profitable growth and we

feel confident about our

performance for the future


2

We believe future growth

will be fueled by continued

diversification across

channels, geographies and

product categories, while

we continue to focus on

productivity to drive

leverage

4

Our top capital allocation

priorities are reinvesting

back into the existing

business and returning

cash to shareholders

WE HAVE GROWN THROUGH DIVERSIFICATION ACROSS MARKETS,

CHANNELS AND PRODUCT CATEGORIES (1)

17

Strong growth in key focus areas … … changing the composition of LS&Co. today and for the future

(1) Numbers / percentages on this page are not additive (some overlap).

(2) International is all markets other than the United States. ©2019 Levi Strauss & Co.

Our U.S. wholesale business is slightly larger today than it was in 2015—yet declined as a % of total net revenues

from 40% in 2015 to 32% in 2018—during which time we’ve grown our total U.S. business at a 2% CAGR.

18

Q3 YTD

+ 8%

+ 40 bps

+ 11%

+ 30 bps

+16%

$0.85

(1) Year-over-year comparisons in constant-currency; note that the company’s constant-currency methodology excludes translation effects by translating prior-year local currency amounts at current period exchange rates.

(2) Year-over-year margin expansion excluding all currency effects, both translation and transaction; note that transaction effects result primarily from product sourced in USD or EUR. Reported gross margin declined 40 basis

points year-over-year due to the negative impact of currency (both translation and transaction) of 80 basis points.

(3) Adjusted net income and Adjusted EBIT, non-GAAP financial measures, exclude loss on early extinguishment of debt, charges related to the transition to being a public company, impact of changes in fair value on cash-

settled stock-based compensation, restructuring and related charges, severance and asset impairment charges, net, pension and postretirement benefit plan curtailment and net settlement losses (gains) and, in fiscal year

2018, the re-measurement of our deferred tax assets and liabilities based on the lower rates at which they are expected to reverse in the future as a result of the Tax Act, adjusted to give effect to the income tax impact of

such adjustments. Adjusted EBIT further excludes all other income tax expenses as well as interest expense and other expense (income), net.

(4) Adjusted diluted EPS is equal to Adjusted net income divided by “Weighted-average common shares outstanding–diluted” for the period presented.

Reconciliations of non-GAAP measures Adjusted EBIT, Adjusted EBIT margin, Adjusted net income and Adjusted diluted EPS can be found at “https://investors.levistrauss.com/financials/quarterly-results/default.aspx”


STRONG Q3 YEAR-TO-DATE FINANCIAL PERFORMANCE

https://investors.levistrauss.com/financials/quarterly-results/default.aspx

19

Reinvest for Growth

Invest in organic opportunities

& initiatives Dividends

Target cash dividends equal to

or greater than our most

recent annual dividends

1

Return Capital to

Shareholders

Share repurchases

Evaluate offsetting dilution

from incentive programs

through share buybacks

2

Acquisitions

Evaluate both organic and

inorganic acquisitions that

support our current strategies

3


CAPITAL ALLOCATION STRATEGY TO GROW AND DELIVER STRONG

SHAREHOLDER RETURNS

FINANCIAL GROWTH MODEL (ANNUALIZED, EXCLUDING CURRENCY EFFECTS)


Net Revenue Adjusted EBIT Adjusted Net Income

Mid-Single Digits Mid- to High-

Single Digits

High-Single to

Low-Double Digits

Note: This model is forward-looking, is subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company

and its management, and is based upon assumptions with respect to future decisions, which are subject to change. Actual results may vary and these variations may be material. For

discussion of some of the important factors that could cause these variations, please consult the "Risk Factors" section of our Q3 2019 Form 10-Q. Nothing in this presentation should be

regarded as a representation by any person that this model will be achieved and, except as required by law, the Company undertakes no duty to update its model.

In Addition, Potential for Acquisitions and Share Repurchases

• Leverage on revenue via

Adjusted EBIT margin

expansion of 20-30bps

• Leverage on fixed

interest expense

• Dividend augments

Total shareholder return

• By Geography

• By Global channel

• By Category

…ready for the next 165 years


Appendix


OUR CORE: LEVI’S® BRAND MEN’S BOTTOMS +3% Q3 YEAR -TO-DATE

23

Growth Opportunities

Updated styles, fabrics, fit and finish

to appeal to evolving consumer base

Expand international presence

in top and underpenetrated markets

Continue to expand retail presence

Where We Are Today

#1 Jeanswear Brand

Globally(1)

The 501 by itself is bigger

than entire denim lines

at many peer brands(1)

Majority of volume is

core(2) with some seasonal

/ fashion lines

New taper fits (502/512)

have grown significantly

in last two years


(1) Measured by 2018 retail sales.

(2) Core is defined as non-season-specific product that typically carries forward from one season to the next.

EXPAND FOR MORE: WOMEN’S

24

Where We Are Today

$1.6B of 2018 net revenues,

comprising nearly a third

of total net revenues

Completed Women’s line

relaunch in 2015

Strong growth

+15% Q3 year-to-date

Broad-based growth

across tops

and bottoms

Growth Opportunities

WE REMAIN UNDERPENETRATED IN WOMEN’S WITH A LONG RUNWAY FOR GROWTH

New fits and finishes including

non-denim and shorts

Strengthen position in regions outside the U.S.

including China and India


We are a market

leader in jeanswear

in India and have

consistently

increased net

revenues in 2016

through 2018

across all channels

GLOBAL FOOTPRINT: INTERNATIONAL REVENUES 57% OF TOTAL Q3 YTD


China represented

roughly 20% of the

global apparel

market, but only

represented 3% of

our net revenues in

fiscal year 2018

Our current business

in Brazil is <1% of

total net revenues, but

has net revenues

CAGR of 20% from

2016 to 2018

The Levi’s® brand

has the highest

brand awareness

in the denim

bottoms category

globally and is the

#1 brand globally

in jeanswear

(measured by

total retail sales)

Facebook marketplace and/or LSE channel on mobile

Facebook marketplace and/or LSE channel on mobile

DIRECT-TO-CONSUMER: INNOVATING IN THE RIGHT AREAS


IN-STORE EXPERIENCE MOBILE APP FIT EXPERIENCE ASK INDIGO

TAILOR SHOP OMNI-CHANNEL INITIATIVES SOCIAL MEDIA PAYMENT EXPERIENCE

OUR COMPETITIVE STRENGTHS HAVE CREATED SIGNIFICANT VALUE

27

Iconic brands with deep heritage, superior product quality

and a culture of innovation

BRANDS

Unique connection with our consumersCONNECTION

WITH CONSUMERS

Robust, diversified business model across multiple

regions, channels and categories

BUSINESS MODEL

GLOBAL INFRASTRUCTURE Strong global operating infrastructure

Values-driven company with an unwavering

commitment to corporate citizenship

PROFITS THROUGH

PRINCIPLES

Management team with a track record of successMANAGEMENT TEAM


28

FROM: 2015 TO: 2018

$1.1B

$0.7B

$0.3B

1.5x

$55MM

$159MM

(1) Net Debt calculated as gross debt less cash and cash equivalents.

(2) Leverage Ratio = Gross Debt / Adjusted EBITDA. Adjusted EBITDA is defined as Adjusted EBIT excluding depreciation and amortization expense.

Reconciliations of non-GAAP measures Net Debt and Leverage Ratio can be found at “https://investors.levistrauss.com/financials/quarterly-results/default.aspx”©2019 Levi Strauss & Co.

$2.0B

3.8x

2011

WE HAVE STRENGTHENED OUR BALANCE SHEET –

IT IS NOW AN ENABLER OF GROWTH

https://investors.levistrauss.com/financials/quarterly-results/default.aspx

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