Message From the CEODear Fellow Stakeholders: Last year was a difficult year for our company with all the effects of the economy. This year our company bounced back and has had an increase in sales of 7% showing that all the hard work we put in last year has paid off. Through our growth this year, we have not lost sight of the values that are important to our company. This year our efforts have focused even more on making our products and all of our services environmentally friendly. We introduced our new product of Waterless jeans. We already make it a priority of our company to use only sustainable cotton in our products, but now we have taken the sustainability of our products even farther with our Waterless jeans. These jeans use only 1 liter of water to finish as compared with our old jeans, which used 41 liters of water. Product sustainability is not the only area that we have excelled in this year. We have also made several efforts to put our workers out there in the community helping all of our customers and the rest of the people in need in the world. We dedicated an entire day of service for our workers to do just that. In addition, we have also started our 100,000 Denim Insulation Fund to help communities make the buildings where they work environmentally friendly as well.

Our products and workers are also not our companys only focus. We are also striving to be there for our customers in every way that we can. This year we focused more to help our customers when picking their jeans with our Curve ID Shape on our website, which allows women to pick out the perfect style of our jeans for their shape to give everyone the perfect fit for them. This year we also added new members to our Levi family whom we hope will come to feel as home in our company as everyone else has these past years.

We have made good progress in 2010 and my hope is that this progress will continue throughout the years of our company. We are a company that stands for empathy, originality, integrity and courage and we will continue to be as we move forward. Thank you for all your support over the year.

Sincerely, John Anderson President and Chief Executive Officer

Keeping Our Pioneering Spirit Alive in 2011.Revenue (In millions)5000 4000 3000 2000 1000 0 2008 2009 2010

Income (in millions)250 200 150 100 50 0 2008 2009 2010

Levis has reflected the economical state of our nation. In 2009 we saw a large decrease in both income and revenue. People did not have the extra funds to purchase clothing. However, in 2010 our sales have increased by 7 percent. This growth has been slow but shows signs of sustaining The jean industry will continue to grow, especially with the new support for the environment.

Water