ICONS & INNOVATION FOOTWEAR D A V E S O L O M O N Vice - PowerPoint PPT Presentation

ICONS & INNOVATION – FOOTWEAR D A V E S O L O M O N Vice President, Footwear – Vans

I C O N S A N D I N N O V A T I O N 1 2 3 4 DEEP CONSUMER ICONS AND EXPANDING NEXT INSPIRE ASIAN CONNECTIVITY INNOVATION GENERATION DIRECT- EXPRESSIVE TO-CONSUMER CREATORS

V A N S A U T H E N T I C I T Y I S B A S E D O N T H E H I S T O R Y A N D S T R E N G T H O F O U R I C O N I C F R A N C H I S E S

T H E D I V E R S I T Y V A N S O F F E R S A C R O S S C L A S S I C S I L H O U E T T E S P R O V I D E S M E A N I N G F U L D I F F E R E N T I A T I O N

T H E D I V E R S I T Y O F V A N S C L A S S I C S T Y L E S A L L O W S F O R H E A L T H Y S A L E S E V O L U T I O N Authentic & Era Sk8-Hi & Slip-on Old Skool Rest of business (incl. Apparel) < 25% of business > 25% of business CY’13 CY’15 CY’17 Global Revenue Global Revenue Global Revenue WHILE INDIVIDUAL CLASSICS STYLES DIP AND RISE IN POPULARITY, THE OVERALL CLASSICS BUSINESS CONTINUES TO GROW AND DIVERSIFY Note: Numbers above presented on a calendar year basis

V A N S “ H E R I T A G E ” P R O D U C T C O N T I N U E S T O E V O L V E A N D D R I V E E N E R G Y WE UTILIZE VANS ICONIC FRANCHISES AS A “BLANK CANVAS” KEEPING THEM TREND-RELEVANT THROUGH COLLABORATIONS AND BY APPLYING COLOR, MATERIALS AND PRINTS

V A N S M A N A G E S O U R C L A S S I C S T H R O U G H I N F L U E N C E , M A R K E T I N G A N D S E G M E N T A T I O N WE MANAGE OUR ICONS SEASONALLY IN ORDER TO REMAIN RELEVANT AND PROVIDE ENERGY IN THE MARKET ROBUST SEEDING AND TARGETED POINTED PRODUCT SEGMENTATION INFLUENCER STRATEGY BRAND CAMPAIGN AND SKU MANAGEMENT

L I K E E V E R Y T H I N G E L S E A T V A N S , O U R F O O T W E A R N E W N E S S S T O R Y B E G I N S W I T H S K A T E B O A R D I N G PROGRESSION IN SKATE FOOTWEAR CURRENT ATHLETES CONTINUE TO INSPIRE WORLD CLASS TECHNOLOGY HAS BEEN INGRAINED IN OUR BRAND AND PROVIDE KEY INSIGHTS SUPPORTS OUR ATHLETES FROM THE BEGINNING

V A N S H A S A M U L T I - F A C E T E D A P P R O A C H T O F O O T W E A R N E W N E S S TECHNICAL INNOVATION PRODUCT FAMILY EVOLUTION FOCUS ON SOLVING CONSUMER PROBLEMS

T H E S U C C E S S O F V A N S U L T R A R A N G E R E F L E C T S T H E P O W E R O F T H I S A P P R O A C H CY’17 +150% CY’18 +75% Spring Bookings Fall Bookings Holiday Bookings Globally Globally Globally

W H A T ’ S N E X T : I N N O V A T I O N , S U P P O R T E D B Y A “ T E S T A N D L E A R N ” M I N D S E T Vans remains committed to testing, learning, experimentation and agility

V A N S C L E A R S T R A T E G I C D I R E C T I O N W I L L P O W E R O U R C O N T I N U E D P E R F O R M A N C E HOW WE’LL GET THERE TOTAL GLOBAL FOOTWEAR REVENUE CONTINUE TO EVOLVE AND 5 yr. CAGR DRIVE ENERGY THROUGH +10-12% HERITAGE >22% INNOVATE TO SOLVE ~ 10% CONSUMER PROBLEMS THROUGH PROGRESSION TEST AND EXPERIMENT CY’13 FY’17 FY’19 E FY’23 TARGET Note: CY’13-FY’17 CAGR represents 2013-2016 CAGR presented on a calendar year basis; Fiscal year (FY) represents trailing twelve months ending Saturday closest to March 31 of each year