Levi Strauss : Investor Presentation

Investor Presentation

Europe NDR

December 2019

©2019 Levi Strauss & Co.

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

TODAY'S PRESENTERS

Chip Bergh	Harmit Singh
President &	Chief Financial Officer
Chief Executive Officer	1
	PRIOR EXPERIENCE	PRIOR EXPERIENCE

Key Investor Contacts

Chris Ogle and Aida Orphan

Investor Relations

[phone]

©2019 Levi Strauss & Co.

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STEPS IN THE ONGOING TRANSFORMATION

1. Strategy
2. • Grow the Profitable Core
   • Diversify Across Channels, Categories and Geographies
3. Significant Talent Upgrade
4. • Senior Management and Board of Directors
5. Driving Financial Discipline
6. • Pay Down Debt, Improve Returns
7. Investment Choices
8. • DTC, Brand Building, Innovation, Foundational Systems
9. Commitment to Culture and Profits Through Principles

WE ARE FOCUSED ON DELIVERING SUSTAINED PROFITABLE GROWTH

©2019 Levi Strauss & Co.

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

55%

AMERICAS

CAGR: +4%

29%

EUROPE

CAGR: +17%

50,000+

RETAIL

LOCATIONS

110+

COUNTRIES

ASIA,

MIDDLE EAST 16%

AND AFRICA

CAGR: +6%

2018

NET REVENUES

$5.6B

69%	29%
MEN'S(2)	WOMEN'S(2)
CAGR: +4%	CAGR: +21%

74%	20%	6%
BOTTOMS	TOPS	FOOTWEAR &
CAGR: +3%	CAGR: +31%	ACCESSORIES
		CAGR: +6%

65%

WHOLESALE (INCLUDING 7% FRANCHISE)

CAGR: +4%

31%

RETAIL COMPANY-

OPERATED

CAGR: +14%

~3,000

BRAND-

DEDICATED

STORES AND

SHOP-IN-SHOPS

4%

eCOMMERCE (COMPANY-

OPERATED ONLY)

CAGR: +19%

		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	©2019 Levi Strauss & Co.	5

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

Drive the profitable core

#1 JEANSWEAR BRAND

GLOBALLY(1)

Expand		Strengthen position
for more		as a leading
		omni-channelretailer

TOPS
+19%	DEEP FOCUS ON SEAMLESS
	CONSUMER EXPERIENCE
	WOMEN'S
	+15%

Enhance operational excellence

GROSS MARGIN

• 40 BPS
  EXCLUDING CURRENCY(2)

TOP 10

WHOLESALE

CUSTOMERS

+1%

MEN'S

BOTTOMS

BUSINESS

+3%

VALUE
BRANDS	EXPAND
+9%
	BRICK-AND-MORTAR
	STORE NETWORK
	+11%
	+90 STORES since Q3'18 (net)
	EUROPE

+15%

F.L.X.: IMPROVED

FLEXIBILITY AND SPEED

TO MARKET

5 LARGEST MATURE MARKETS +5%

ENHANCE OUR

ASIAeCOMMERCE CAPABILITIES +13%

COMPANY-OPERATED SITES

+24%

SOURCING FROM

APPROXIMATELY 25

COUNTRIES, WITH NO SINGLE

COUNTRY REPRESENTING >20% OF OUR SOURCING

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-yearmargin 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	©2019 Levi Strauss & Co.	6

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

NET REVENUE

Europe

$1.6B (29%)

2018

Total company

Revenue

$5.6B

STRONG PROFIT LEVERAGE(2)

38%

EBIT growth on top of

21%

Net Revenue growth

…resulting in EBIT margin

expansion of

220 bps

SUBSTANTIAL GROWTH

3yrs

Three consecutive years of

double-digit constant-

currency revenue growth…

…well outpacing market

growth

PROFITABILITY

~60%

GROSS

MARGIN

18%

OPERATING

MARGIN

MEN'S VS.	BOTTOM'S, TOPS'S,
WOMEN'S(1)	FOOTWEAR & ACCESSORIES (1)

				65%
					MEN's
				35%	31%	57%	12%
					WOMEN's	TOPS	BOTTOMS	FOOTWEAR &
							ACCESSORIES
EXECUTING ON		CHANNEL SPLITS (1)			GROWING STORE FOOTPRINT
THE STRATEGY:		ECOMMERCE
	45%
REVENUE		(COMPANY-
GROWTH (2)		OPERATED		WHOLESALE
	4% ONLY)			300
55%
32%		40%			COMPANY OWNED &
	11%	OPERATED STORES
			RETAIL	(+ another 204 Concession &
20%			COMPANY-		FRANCHISE
			Commissionaire stores)
		OPERATED
			BRAND MIX (1)		96%	4%
DTC Women's Tops

	Note: Europe's results include the company's footwear and accessories business
(1)	Percentages are of Europe's total net revenues in 2018.	©2019 Levi Strauss & Co.		7
(2)	Growth vs. prior year in constant-currency. Note that regional EBIT is equal to regional operating income.

SEGMENTED AND DIFFERENTIATED WHOLESALE GO -TO-MARKET STRATEGY

DIVERSIFIED DISTRIBUTION NETWORK

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.

©2019 Levi Strauss & Co.	8

EXPAND FOR MORE: TOPS AND INTERNATIONAL

Tops Momentum Is Strong

Significant Market Growth Opportunities

$1.1B of 2018 net revenues,		Strong growth
comprising a fifth		+19% year-to-date
of total net revenues		Q3 2019

Growth is broad-based across tops subcategories

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

©2019 Levi Strauss & Co.	9

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

Digitizes denim finish design and reduces finishing time

Improves inventory management

Eliminates thousands of chemical formulations

Reduces lead times

©2019 Levi Strauss & Co.

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

DTC business has grown from 29% of net revenues in 2015 to 37% of net revenues in the first nine months of 2019

Redesigning the shopping experience through customization and personalization with a focus on delivering a frictionless omni-channel environment

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

©2019 Levi Strauss & Co.	11

©2019 Levi Strauss & Co.	12

PROFITS THROUGH PRINCIPLES

GIVING BACK		ADVOCATING FOR		SOCIAL & ENVIRONMENTAL
TO OUR COMMUNITIES		WHAT'S RIGHT		SUSTAINABILITY
				2020 Targets
Community Engagement		Tackling Climate Change		100% Sustainably-Sourced Cotton
	80+% of Levi's® Products are Water<>®
Levi Strauss Foundation		Gun Violence Prevention
		80% of Products Made at
	LGBTQ+ Equality
			Worker Well-Being Factories
Red Tab Foundation		Voter Engagement
		Industry Adoption of Screened Chemistry

©2019 Levi Strauss & Co.

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LEVI'S®: OPPORTUNITIES FOR CONSISTENT SUSTAINABLE GROWTH

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

POTENTIAL TO ENTER AND EXPAND IN OTHER CATEGORIES THAT ARE SMALLER FOR US TODAY

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

©2019 Levi Strauss & Co.	14

FINANCIAL OVERVIEW

©2019 Levi Strauss & Co.

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FINANCIAL EXECUTIVE SUMMARY

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

3

4

We have improved our	Our top capital allocation
overall financial profile	priorities are reinvesting
and balance sheet while	back into the existing
maintaining a disciplined	business and returning
approach to investment	cash to shareholders

©2019 Levi Strauss & Co.

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WE HAVE GROWN THROUGH DIVERSIFICATION ACROSS MARKETS, CHANNELS AND PRODUCT CATEGORIES (1)

Strong growth in key focus areas …

… changing the composition of LS&Co. today and for the future

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.

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.

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STRONG Q3 YEAR-TO-DATE FINANCIAL PERFORMANCE

Q3 YTD

+ 8%

+ 40 bps

+ 11%

+ 30 bps

+16%

$0.85

1. Year-over-yearcomparisons 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-yearmargin 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"

©2019 Levi Strauss & Co.

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CAPITAL ALLOCATION STRATEGY TO GROW AND DELIVER STRONG SHAREHOLDER RETURNS

1

Reinvest for Growth

Invest in organic opportunities & initiatives

2

Return Capital to Shareholders

Dividends

Target cash dividends equal to or greater than our most recent annual dividends

Share repurchases

Evaluate offsetting dilution from incentive programs through share buybacks

3

Acquisitions

Evaluate both organic and inorganic acquisitions that support our current strategies

©2019 Levi Strauss & Co.

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FINANCIAL GROWTH MODEL (ANNUALIZED, EXCLUDING CURRENCY EFFECTS)

	Net Revenue	Adjusted EBIT	Adjusted Net Income
Mid-Single Digits	Mid- to High-		High-Single to
Single Digits		Low-Double Digits
•	By Geography	• Leverage on revenue via	•	Leverage on fixed
•	By Global channel	Adjusted EBIT margin		interest expense
expansion of 20-30bps	•	Dividend augments
•	By Category			Total shareholder return

In Addition, Potential for Acquisitions and Share Repurchases

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	©2019 Levi Strauss & Co.	20
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.

…ready for the next 165 years

©2019 Levi Strauss & Co.

Appendix

©2019 Levi Strauss & Co.

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

Where We Are Today

Growth Opportunities

	#1 Jeanswear Brand		The 501 by itself is bigger		Updated styles, fabrics, fit and finish
			to appeal to evolving consumer base
		than entire denim lines
	Globally(1)
		at many peer brands(1)
		Expand international presence
					in top and underpenetrated markets
	Majority of volume is		New taper fits (502/512)
	core(2) with some seasonal		have grown significantly		Continue to expand retail presence
	/ fashion lines		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.	©2019 Levi Strauss & Co.
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EXPAND FOR MORE: WOMEN'S

Where We Are Today

Growth Opportunities

Completed Women's line		$1.6B of 2018 net revenues,
	comprising nearly a third
relaunch in 2015
	of total net revenues

Strong growth		Broad-based growth
	across tops
+15% Q3 year-to-date
	and bottoms

New fits and finishes including

non-denim and shorts

Strengthen position in regions outside the U.S.

including China and India

W E R E M A I N U N D E R P E N E T R AT E D I N W O M E N ' S W I T H A L O N G R U N WAY F O R G R O W T H

©2019 Levi Strauss & Co.	24

GLOBAL FOOTPRINT: INTERNATIONAL REVENUES 57% OF TOTAL Q3 YTD

Our current business

in Brazil is <1% of

total net revenues, but

has net revenues CAGR of 20% from 2016 to 2018

				China represented
				roughly 20% of the
				global apparel
				market, but only
				represented 3% of
				our net revenues in
				fiscal year2018
	We are a market
	leader in jeanswear
	in India and have
	consistently
	increased net
	revenues in 2016
	through 2018
	across all channels

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)

©2019 Levi Strauss & Co.	25

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

©2019 Levi Strauss & Co.	26

OUR COMPETITIVE STRENGTHS HAVE CREATED SIGNIFICANT VALUE

B R A N D S

CONNECTION

WITH CONSUMERS

BUSINESS MODEL

GLOBAL INFRASTRUCTURE

PROFITS THROUGH

PRINCIPLES

MANAGEMENT TEAM

Iconic brands with deep heritage, superior product quality and a culture of innovation

Unique connection with our consumers

Robust, diversified business model across multiple regions, channels and categories

Strong global operating infrastructure

Values-driven company with an unwavering commitment to corporate citizenship

Management team with a track record of success

©2019 Levi Strauss & Co.

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WE HAVE STRENGTHENED OUR BALANCE SHEET - IT IS NOW AN ENABLER OF GROWTH

2011	FROM: 2015	TO: 2018
$2.0B		$1.1B

$0.7B

$0.3B

3.8x

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.	©2019 Levi Strauss & Co.	28
	Reconciliations of non-GAAP measures Net Debt and Leverage Ratio can be found at "https://investors.levistrauss.com/financials/quarterly-results/default.aspx"