Vision 2013Vision 2013

VansOctober 1, 2008October 1, 2008

Presented by:Presented by: Steve Murray - President

VIDEO

Agenda

• Brand Positioning• Sales OverviewSales Overview• Segmentation Strategy

P d t & M k ti• Product & Marketing• Growth Drivers & Opportunities

Vans Sales Growth2004 20082004-2008

22% CAGR

$770$770

$350

2004 2005 2006 2007 2008

Vans Success FactorsAthleteTeamCulture of

Winning

Enhanced CustomerService

EmployeeCreative

Marketing

Vans RetailUpgrade

Employee MotivationalPrograms

Marketing

Consumer-Driven

RestructuredSales Force

VF VendorRelationships

Consumer DrivenProduct, Sales and

MarketingSales Force

IncreasedRD&D

Proprietary Events

Optimal Disciplined

Segmentation by Channel

Visual Merchandise

RD&DFinancial Disciplines

& Controls

Optimal, DisciplinedBrand Management

Visual Merchandise

InvestmentIn Apparel

GreatProduct

Vision Statement

Vans is the original action sportsVans is the original action sports footwear company grounded in p y g

youth, authenticity and individual styleindividual style …

The Vans Brand: Rooted in Boards and Bikes

Action sports, including surfing, skateboarding, snowboarding, BMX, wakeboarding and motocross, provide an outlet for individual athletic

expression in an unstructured format.

Vans: Expanding the Brand from an Action Sports FoundationAction Sports Foundation

Action Sports

Street/FashionArtMusic

Vans Sales by Product

20047% 2008

4%2%

8%

6%7%

Footwear18%

4%2%

Footwear

Apparel

Equipment

79% Other

76%

Vans Sales by RegionVans Sales by Region2004-2008

500

600

300

400

500

North America

200

300International

0

100

2004 2005 2006 2007 20082004 2005 2006 2007 2008

Vans Sales by RegionVans Sales by Region2004-2008

2004 2008

4%

18%

US &Canada

25%

1%Canada

Central/SouthAmerica 4%

3%

77%

AmericaAsia

68%

Vans Sales by ChannelVans Sales by Channel(US Wholesale)

20045%

2008

0%

9% Core

Boutique

15%

1%32%

9% Mall Specialty/Lifestyle

Sporting Goods

2 %59%

18%

Family Footwear

Mid Tier/Moderate

27%

19%6%

19%

Vans US Distribution Model

DestinationTrend Setter

Mall Specialty

CoreCore BoutiqueBoutique

Vans RetailEarly Adopter Mall Specialty

Mall Specialty

Early Adopter

Off Mall Sporting Goods & Family FootwearSporting Goods & Family Footwear

MidMid--Market Dept StoresMarket Dept Stores

Emulator

Product Hierarchy - Footwear

Authenticity

Authenticity Aspiration

DestinationBoutiqueBoutique

Trend Setter CoreCore

Mall SpecialtyEarly AdopterVans Retail

Mall Specialty

Off Mall Emulator

Mall Specialty

Sporting Goods & Family FootwearSporting Goods & Family Footwear

MidMid--Market Dept StoresMarket Dept Stores

Signature$70 MSRP

Geoff RowleyROWLEY [ X ]

Share of US Core Market2008 Brand Unit Share - Footwear * Source - ActionWatch POS data

2008 Brand $ Share - Footwear * Source - ActionWatch POS data

White Space

• Extension of skateboarding into mainstream• Growth outside of CA• Product extensions

Sk8 LS Strategygy

Skate LS category…A multi action sport category supported by athletes in

skate bmx and moto Distribution includes mall basedskate, bmx, and moto. Distribution includes mall based specialty, better sporting goods, and better family footwear

Surf Strategy

Surf footwear categorySurf footwear category…A footwear and sandal category grounded in surf and supported by surf athletes Distributionsurf and supported by surf athletes. Distribution includes boutique, core boardshop and better lifestyle accounts

Aspiration

Authenticity Aspiration

DestinationBoutiqueBoutique

Trend Setter CoreCore

Mall SpecialtyEarly AdopterVans Retail

Mall Specialty

Off Mall Emulator

Mall Specialty

Sporting Goods & Family FootwearSporting Goods & Family Footwear

MidMid--Market Dept StoresMarket Dept Stores

Classic Slip-OnClassic Slip On

Vault Account Strategy

0 %

Collaborations/Special ProjectsCollaborations/Special Projects

Marc Jacobs

The Simpsonsp

AvrilLavigne

Ashley Simpson Fergie

Vans Classics Opportunities

• Organic Growth With Strategic Partners• Owned Retail PlatformOwned Retail Platform• Evolution of Classics Internationally

E i f V lt i t N M k t• Expansion of Vault into New Markets• Expanded Custom Footwear On Web

V A lVans Apparel

Presented by:Presented by: Michael Schulam – Vice President Apparel

• 40-plus years of action sports heritage

• 100 years of VF• 100 years of VF sourcing expertise

Global Apparel Channel Mix

US Whls

31% EMEA

EMEA

16%

US Retail

27%US Retail

84%40%Central /

South

Americas

84%

2008 2%2004

Steps in Achieving Apparel’s Increase

Inject DNA and target consumer into productTransition of Men’s & Girls product to be trend right

Invested in apparel specific staffSegment the line between core and mid-tier

Men’s Target Consumer

CORE SKATERCORE SKATER

Men’s Target Consumer

INDIE KIDINDIE KID

Men’s Target Consumer

SO CAL BROSO CAL BRO

Girl’s Target Consumer

VANS GIRL

Mid-Tier Target Consumer

Vans GirlEMULATOR

Points of Differentiation

Di t t il f t• Direct retail format

Points of Differentiation

• Apparel Athletes

Points of Differentiation

• Black and White• Black and White checkerboard

Points of Differentiation

• Music influence• Music influence

Points of Differentiation

• Direct footwear tie backs

Points of Differentiation

Apparel-Specific Ads in Core Mags

Vans Apparel Opportunities

• Expanded Real Estate in Core Channel• Penetrate Lifestyle ChannelPenetrate Lifestyle Channel• Growth at Vans Retail

K P t G th t Mid Ti• Key Partner Growth at Mid-Tier• International Expansion• Product Extensions-Boys, Juniors

Vans MarketingVans MarketingPresented by:Presented by:

Doug Palladini – Vice President Marketing

V Athl tVans Athletes

Vans Skate Team: Signature, Pros, Ams, Legends, and Groms

Vans Snowboard Team: Halfpipe, Big Mountain, Slopestyle, Rails

Vans Surf Team: Travel, Contests, Big Waves, Beach Culture

Vans BMX Team: Street, Dirt, Park, Vert, Freestyle

Vans Motocross Team: Freestyle, Lites, Supercross, Outdoor

Vans Proprietary Eventsp y

15th th ld’ l t• 15th year as the world’s longest running rock tour

• 49 stops nationwide Jun-Aug

• 650,000 tickets sold annually

Warped Tour GraduatesWarped Tour Graduates

• Green Day

• Weezer

• My Chemical Romance

• Eminem

• Social Distortion• Social Distortion

• The Offspring

Wangl Tangl (Pan-European – Snow & Skate)(Pan European Snow & Skate)

Vans Tour (Spain – Music)

Fuel TV

Each Proprietary Vans Event Yields 100s of Content Pieces

WebcastsBlogs

Vans Events Drive Content Maga inesiT nes Drive Content Syndication

MagazinesiTunes

WebsitesBoard Shops

Rush HDTV

Vans Dustin Dollin and The DowntownVans, Dustin Dollin, and The Downtown Showdown in Tony Hawk’s Proving Ground:

4 Million Units4 Million Units Delivered in 20074 Million Units4 Million Units Delivered in 2007

Vans Interactive MarketingVans Interactive Marketing

As Young People Shift to Interactive Media, Vans Delivers

Vans Widgets

Daily BlogsBlogs

Mobile AppsApps

ContentContent Sharing

Vans Industry-Leading Web Presence Drives Brand Affinity

Among Skate Sites

V PRVans PR

Vans PR and Organic Product Placement Lead ROI

Steve Nash/NBA All-Star/Slip-Ons

Iron Man Wears Vans: Robert DowneyIron Man Wears Vans: Robert Downey

Owen Wilson/Movie Set/Vault Slip-Ons

Vans PR and Organic Product Placement Lead ROI

Canvas/Spain/Waffle SoleOwen Wilson/Movie Set/Vault Slip Ons Canvas/Spain/Waffle Sole

Vans PR and Organic Product Placement Lead ROI

Michael C Hall/Dexter/Showtime Network Zac Efron/People Mag/CheckerboardsMichael C. Hall/Dexter/Showtime Network Zac Efron/People Mag/Checkerboards

Vans PR and Organic Product Placement Lead ROI

The Governator/The Senate/Slip-Ons Reese Witherspoon/Kids/Old Skools

Vans Visual MerchandisingVans Visual Merchandising

Jack’s Surfboards-Huntington Beach

Classic Kicks-NYC

Sun Diego-Carlsbad Freedom-Phoenix

France (Colette – Paris)

UK (50/50 –Bristol) & (The Mole – Brighton)

And at the End of the Day, Vans Owns a Brand Position that is Both Ownable and Highly DefendableBoth Ownable and Highly Defendable…

Vision 2008-2013Steve Murray - President

Vans Sales 2008-2013 10% CAGR

$1235

$770

$

$770

2008 2009 2010 2011 2012 20132008 2009 2010 2011 2012 2013

Geographic and ChannelGeographic and Channel Growth 2008-2013

• US Wholesale – primarily higher distribution channels O d R t il i il t id C lif i• Owned Retail – primarily outside California

• E-CommerceE i d E t bl k• Europe – organic and Eastern block

• Asia Pacific – driven by China, Japan and KoreaKorea

• Central & South Americas – driven by Mexico and Brazil

SGB Sporting Goods

Vans Heritage Store -Tustin

North America – Vans RetailNorth America Vans Retail

2008 Full Price Stores 2013 Full Price Stores

S G h SStore Growth Strategy•Calculated National growth that positions Vans in markets that have an Action Sports culture and affinity for the Vans Brand.•50% of new stores will be in “mature” and “developing”

Representation

None

Minimal

A t bl 50% of new stores will be in mature and developing markets.•50% of new stores will be in “new” markets using a cluster strategy.•Target “A” and “B” centers only.

Acceptable

Moderate

High

Vans Europe Retail StoresLONDON

AMSTERDAM

ANTWERPANTWERP

FULL PRICE

OUTLET

PARTNERSHIPPARTNERSHIP

Vans RetailNew Vans Retail Store, Santiago, Chile

Japan Stores

China Stores

E-Commerce

Vans Sales by Geography 08-13

201322%

200822%

25%

4%7%

4%

3%

US & Canada

Central/SouthAmericaA i 67%4%4%

68%

Asia

Europe

Vans Sales by Product 08-13

20133%6%

20084%2%

21%18%

FootwearApparelEquipmentOther

70%76%76%

Summary• Confidence bred from success• Confidence, bred from success• Clear direction

Brand momentum• Brand momentum• Increasingly influential market sector• Solid platform for growth• Geographical and brand extension

opportunities• Not looking for a “silver bullet “• Winning, results orientated culture