Focus for a Few Moments on Some Very Focused Auditors. Internal Audit

Focus for a Few Moments on Some Very Focused Auditors Internal Audit

VF Corporation is a global company, with its brands sold in over 150 countries and over half of its 58,000+ associates located outside of the United States 2

VF Corporation -- A Focused, Industry Leader Global Fortune 250 Scope, Small Company Feel Emphasis: Diversity, Dexterity, Innovation, Sharing Strong Growth and Profitability Over 100 Years of Success High Demand for Leadership Talent VF Internal Audit -- A Leader in Strategic Assurance Best Practice Audit Methodologies and Technologies Consistently High Auditor Placement and Retention Flexible, Self-Directed Work A High Quality Work-Life Balance Insistence Upon Excellence 3

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About VF Corporation... As a consumer products company, our name recognition is in our brands. VF Corporation is one of the largest publicly held apparel and footwear companies in the world, and a leader in jeanswear, sportswear, imagewear, outdoor and action sports products. Our principal brands include The North Face, Vans, Timberland, Lee, Wrangler, Rock and Republic, 7 For All Mankind, Ella Moss, Splendid, Nautica, JanSport, Eastpak, Eagle Creek, Majestic, Horace Small, Bulwark, Red Kap, Wrangler Workwear, Nautica, Reef, Napapijri, Kipling, Lucy, and Smartwool. For over a century, VF has enjoyed consistent growth and profitability by remaining very focused on responding to consumers needs and working in partnership with our retail customers. Our goal is to continuously exceed the expectations of our consumers, customers, shareholders and business partners. VF has the strategies in place to help turn market challenges into new opportunities. Our core strategies are: Build a strong portfolio of global lifestyle brands by investing in organic growth opportunities and through acquisitions. Go global, generating 43 percent of total revenues from international markets by 2017. Serve consumers directly by targeting our brands to reach a variety of consumer segments across all retail channels. Lead in innovation, supported by new processes and collaborative networks. Enable our future by investing in retail and supply chain capabilities that provide speed, flexibility and value. Win with winning customers through our global scale, unparalleled consumer knowledge and extensive brand expertise. Our long-term financial goals are to reach $17.3 billion by 2017. We are targeting: (1) sales growth of 10%, (2) return on invested capital of 20%, (3) operating margin of 16%, and (4) a dividend payout of 40%. No other apparel and footwear company has the breadth and depth of resources that are reflected across VF. As a Fortune 250 Company, VF s brands are sold in over 150 countries, and over 58,000 people are employed by VF in 54 countries around the world. Accordingly, career tracks available to a VF associate are many and depend greatly on the contributions and ambition of the individual, rather than being impaired by any constraints within VF. For further information about VF, we invite you to refer to our Annual Report or visit our web site at: http://www.vfc.com. 5

How We Help Assure VF s Success Front-End Business Process Reviews Back-End Business Process Reviews Vendor Reviews Factory Compliance Audits Procurement Studies Licensee Reviews Ad Agency & TPA Reviews Strategic Gap Analyses SBU Performance Studies SKU Management Studies Manning Assessments Workflow Reduction Studies Internal Benchmarking Studies Due Diligence Support Acquisition Integration Support Financial Audits S-Ox Compliance Support External Audit Support Fraud Investigation Support Control Self-Assessments Systems Development Reviews IS Application Reviews IS Security Reviews IS Communication Reviews General IS Control Reviews Procedural Development VF Policy Training Policy Compliance Audits Safety Reviews HR Reviews 6

About VF Internal Audit... Distinction from the internal audit stereotype is the most notable aspect about VF Internal Audit. A number of years ago, we challenged many of the traditional conventions found in internal auditing and designed a somewhat unique approach to our work. We don t mean to imply that the assurance methodology employed in VF Internal Audit does not embody contemporary assurance theory. We benchmark and consult with various professional organizations and research groups around the world. However, we believe we are leaders in the advancement of innovative assurance methods and we are often requested to consult with other organizations on aspects of our assurance methodology. VF Internal Audit is staffed with people who have blue chip experience and they possess more diverse backgrounds than are found in most internal audit functions. Most of our associates work in a team-based environment on a fairly self-directed basis. And, our associates operate from hubs located around the world to optimize their responsiveness to VF s operations. Our internal auditors are expected to provide strategic assurance wherever it is needed within VF. In fact, strategic assurance is what VF Internal Audit is all about. Our charter is fairly straightforward. We assist our Board of Directors and management in obtaining reasonable assurance that VF s goals and objectives will be achieved. This charter is fulfilled by promoting a demand pull form of strategic assurance. In a sense, we provide assurance where VF s management believes the greatest strategic benefit can be derived. Consequently, there is little question as to the relevance and importance of our work. STRATEGY A S S R U R A N C E Strategic Assurance is what VF Internal Audit is all about. R I S K CONTROL S Today, many people who choose to join VF Internal Audit have no interest in an internal audit career. But, they see the unique experience offered by VF Internal Audit as a period of professional enrichment that is rarely found elsewhere. For further information regarding VF Internal Audit, we invite you to visit our web site at: http://www.vfauditmall.com. 7

Internal Audit Focus Brand Management Tens of thousands of customers; goods sold thru 100 s of thousands of retail doors; across 100 s of thousands of styles, colors and sizes; during multiple selling seasons each year. Supply Chain Finance & Administration Global Business Technology HR, Ethics & Compliance Business Practices Factory Compliance Millions of orders processed, 100 s of thousands of miles of fabric used, billions of yards of thread sewn,100 s of millions of units produced, from 1000 s of factories all over the world, with 66+ containers of VF Goods shipped everyday. 8

About VF Internal Audit... In VF Internal Audit we have teams based in Greensboro, North Carolina; Hong Kong, China; and Stabio, Switzerland dedicated to providing assurance to those associates working in VF s Brand Management; Supply Chain; Technology; Finance & Administration; Human Resource; and Ethics & Compliance processes. This dedicated teaming promotes strong development of subject matter expertise by our internal auditors, close relationships with our customers and real opportunities for our internal auditors to deliver value. These process-based teams are also geographically aligned to provide close support to VF s global operations. We have a team based in Greensboro that focuses primarily on consumer and customer facing activities. These Brand Management Analysts typically hold MBAs in finance or marketing and conduct reviews of brand management in areas such as merchandising and design, product development, marketing, account and sales management, licensing, retailing, and ecommerce. VF operates a vast supply chain, which is a network of demand fulfillment competencies strategically located all over the world. We have a team of Supply Chain Analysts based in Greensboro whose members hold educational backgrounds and experience in global supply chain management, engineering and computer science. Our Supply Chain Analysts are typically CSCMs and CIAs. These associates conduct reviews of VF s demand forecasting, production planning, materials management / procurement, manufacturing, sourcing, distribution / logistics, retail floor space management and replenishment, and order management / customer service functions. We also have a team stationed in Greensboro that has VF-wide responsibility for audits of VF s incredible information systems and technology environment. This team is comprised of Senior Technology Auditors who typically have computer science degrees and are CIAs and CSSPs. We also make extensive use of outside technology risk and control experts to augment our technology assurance. VF is an industry leader in the usage of information systems and technology for competitive advantage, and this team is connected at the hip with VF s thought leaders who oversee this area. VF maintains very high financial standards and strong internal accounting and reporting controls. VF s financial community is located at each shared corporate center that provides routine financial services. Finance associates are also positioned within each brand group to ensure strong front-line analysis of strategic and tactical opportunities around each brand. Our teams of Financial Auditors, who are typically CPAs, CIAs, CMAs and CFEs, are based in Greensboro, Hong Kong and Stabio and conduct reviews of VF s accounting and financial reporting, taxation, treasury, mergers and acquisitions, etc. Their reviews can occur in many different locations, including, but not limited to: Moscow, Istanbul, Bangalore, Buenos Aires, Los Angeles or Greensboro. Human resource, ethics & compliance management is a critical activity in VF. People do make the difference and VF management recognizes and respects this principle - - both in words and deeds. In fact, VF is ranked 11th on Chief Executive magazine s 2014 list of Best Companies for Leaders. VF Internal Audit conducts reviews of HRE&C practices in areas such as compensation, benefits, organizational design and development, ethics and various compliance areas. Since VF has 58,000+ associates and more than half of our associates are located outside of the United States, our Human Resource Analysts (typically PHRs and CIAs) face great diversity as they must review multi-national HRE&C practices. At VF we also believe it is important to continually enhance our business practices. Accordingly, a small team of Business Practices Analysts, based in Greensboro and Hong Kong - - and a larger network of like-kind associates working in VF s operating companies - - are continually identifying and implementing enhancements to VF s business practices, in instances of promoting stronger Sarbanes- Oxley compliance, uplifting current financial and administrative practices, improving records and information management, or assisting with integration of VF s acquisitions. And, lastly, the value of VF Corporation is embodied in its portfolio of brands, supported by the people, processes, technologies and capital employed to build and protect such brands. Therefore, it is critically important that every facility involved in the manufacture of a branded product, and brands for which VF has licensed outside business partners to produce and sell, follow VF s Global Compliance Principles. VF Internal Audit employs full-time teams of Factory Auditors located principally in Southeast Asia and Central America to ensure no production of a VF branded product or a VF licensed product occurs prior to the facility having passed a certified VF factory inspection. 9

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Working for VF Internal Audit... A challenge awaits anyone joining VF Internal Audit. Our expectations are very high and the demands are great. Our internal audits canvas the entire spectrum of VF Corporation s internal control process -- from evaluating the reliability of reporting, to evaluating the effectiveness and efficiency of operations, to assessing compliance with applicable laws and regulations. Traditional dominions of auditing normally associated with so-called financial auditing apply, but fall well within the minority of our activities. Our assurance services are provided around the world with respect to strategic acquisitions, product development activities, marketing science, retail space management, strategic alliances or other value added facets of our business. Our internal auditors are challenged to study and evaluate VF s world-class business processes, supported by VF s leading edge technology, on an enterprisewide basis. Congratulations! You are assigned to review: post-merger integration of an acquisition product development execution product line management merchandising retail marketing licensing retail store operations ebusiness account management consumer marketing demand forecasting production planning and scheduling materials management procurement manufacturing sourcing distribution customer service finance human resources information systems information technology treasury tax No one would ever view our internal audits as merely connecting the dots. We expect our internal auditors to quickly grasp our internal auditing approach. An orientation program is provided to each new internal auditor. Then, the internal auditor is assigned to a team of auditors. Thereafter, the internal auditor is scheduled for 8-10 internal audits during each year. We work on a team basis -- every member of a team holds the same share of responsibility to VF and to themselves. Our internal auditors have an equal voice, regardless of whether they are asked to lead or support an internal audit. Our internal auditors are expected to perform internal audits largely on a first-time-through basis. No one would ever view our internal audits as merely connecting the dots. Our internal auditors are expected to quickly define the scope and objectives of their work, and execute an internal audit that delivers value-added action plans, which are developed in close collaboration with our customers. Very few of our internal audits entail study of generic subjects, or prior year work to refer to, and we never engage in pitch and catch with our customers. VF internal auditors operate seamlessly across national borders and are within easy reach of substantial resources that can be accessed electronically via our VF Internal Audit Systems. These systems provide an extensive array of knowledge bases developed for each of VF Corporation s business processes, as well as a repository of audit reference aids and tools. Our internal audits are very fast-paced and rigorous in terms of the assessment criteria that must be considered. However, much of the success of any given internal audit is driven by the business acumen and mental agility applied by our internal auditors. Any of our internal auditors will readily acknowledge that the weeks, months and years fly by while working in VF Internal Audit -- due to the rigor of our work. We expect everyone to come to work each day with a real sense of purpose. 11

U.S. Jeans Mass Brands 12

The Leadership, Skills And Experience You Can Acquire... Apart from monetary reward, we believe it is important for you to also evaluate the opportunities you ll have to hone your leadership skills and experience in an association with VF. Our talent management strategy is guided by the idea of Taking the L.E.A.P. During your time with VF Internal Audit, we look to provide you with opportunities to: Learn actively and continuously; Experience the intricacy of VF s global operations from a unique vantage point offered in VF Internal Audit; Achieve your personal career aspirations while contributing to the achievement of VF s goals and objectives; and Propel into VF s leadership ranks. It is a formal development program provided to each internal auditor. L.E.A.P. (Learn, Experience, Achieve, Propel) is a serious effort that consists of many components. Among its many components, we conduct two one-week sessions each year and the curriculum for these sessions spans a three-year period. Three developmental tracks have been developed for these L.E.A.P. sessions: (1) Behavioral & Leadership Development which consists of classroom and experiential sessions led by professional instructors, (2) Value Chain Management which consists of various subject matter experts from VF s ranks leading classes on various facets of VF s Value Chain and (3) Technical Skills which consists of the requisite technical courses for satisfaction of continuing professional education requirements. The L.E.A.P. is registered with the National Association of State Boards of Accounting (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. As earlier referenced, these sessions are only a part of a much more extensive series of developmental programs within L.E.A.P. Association with VF represents experience with a company that is a leader in the apparel and footwear industry. And, the apparel and footwear industry makes a product people can quickly recognize and understand. However, the operating model VF uses to identify consumer demand, and then uses to fulfill such demand, is incredibly sophisticated. To this end, VF has long been recognized as a leader in using world-class processes and technology for competitive advantage. No better exposure to world-class processes can be found by an internal auditor in our industry. VF Corporation's business process engineering initiatives are targeted at achievement of best-in-class objectives on a global scale. And, our consumer insights and vendor managed inventory systems are best-in-class and serve as a gateway for unprecedented advances in using consumer and vendor intelligence for competitive advantage. Accordingly, auditing in VF exposes the internal auditor to the best-of-the-best in business practices. VF Internal Audit s usage of technology is best observed from outside of VF by surfing our highly acclaimed web site: www.vfauditmall.com. Simply stated, we believe we are a leader in using advanced practices and technology for purposes of optimizing internal audit performance. VF s Internal Audit Systems provide state-of-the-art technology and resources to our internal auditors from wherever they may be working -- anywhere in the world. VF Ideal Audit Model Auditing in VF exposes the internal auditor to the best-ofthe-best. 13 VF Audit Report Guide VF Audit Guide VF ASP VF ERA

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An Important Decision Awaits You... Throughout your life, important decisions await you -- each leading to a new path. Such decisions will have an important bearing on your personal or professional life -- or both. At the end, the path you have taken will define your life such decisions, at each critical juncture, represent the chapters in the book of your life. An important element to consider in your decision should be the fact that VF is a consumer products company. This means you will find certain practices to be more pronounced in our business than in others. For example, as a consumer products company, VF is very focused on strategic planning, consumer and retail marketing, product and service development, merchandising, retailing and other related areas that face our targeted consumers and customers. VF is a manufacturer of basic and fashion apparel. Once again, this characteristic means that we rely upon many manufacturing facilities located around the world. We also deal with fairly sophisticated logistical challenges involving our distribution and transportation processes. As you consider these characteristics, it is important for you to determine if these practices are aspects of an enterprise you can focus on with genuine, sustainable interest. We stress these points because it is important for you to focus on the environmental changes that may occur as you transition from a university environment, a Big Four position, or from another industry where the environment can be significantly different from the apparel industry (i.e. think of the distinctions between the financial services, health care, construction, industrial products sectors). Working with VF is not for everyone. Consumer products - and apparel and footwear - and specifically VF - need to excite and make sense to you. The general perception of internal auditing may leave you with some hesitation in making VF Internal Audit your next career step. However, if you explore our attributes closely, you may share our view that we have broken away from the pack. On the other hand, following convention may be a more comfortable proposition for you. We respect the fact that what we do in VF Internal Audit is not for everyone. With these considerations raised, we also want to stress that VF Internal Audit can represent a wonderful opportunity for the right person. We are looking for achievers. Moreover, we only want to represent the next link in your chain of achievement. There will be few, if any, surprises for you after completing our recruiting process. Ultimately, we understand that the associations we decide to form must be a win/win, as the importance of our staffing decisions and the impact on individuals lives is simply too great to view the recruiting process in any other way. We believe it is far more effective to recruit and develop a new associate that is truly well suited for our organization than to remediate, counsel and replace an ineffective associate. If a decision awaits you...we hope we have the opportunity to share the merits of our organization with you and explore any prospects of a mutual association. For a person with the right profile, VF Internal Audit can be a great career move. I want to be challenged I want to be leading I want to be respected I want to be fairly rewarded I want to be committed to my company I want to be living where I want to live I want to be with friends I want to be making a difference I want to be in a job that I like I want to be heard Ultimately, we understand that those associations we decide to form must be a win/win. 15 I want to be happy I want to be proud of my company I want to be learning I want to be recognized for my efforts I want to be passionate toward my work I want to be trusting of my boss I want to be enjoying the people I work with I want to be healthy I want to be exposed to new horizons I want to be with VF or, not to be?

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Choice of Lifestyle When an association with VF Internal Audit is considered, such a decision involves a choice of lifestyle. A lifestyle aimed at opportunity. We use the internal auditing function to provide strategic assurance to the Board of Directors and management of VF. As part of our Charter, VF Internal Audit is used as a talent pool to be drawn upon in fulfillment of other line and staff position opportunities. However, Who, What, Where, When, Why and How, associated with such advancement opportunities remain unanswered until opportunity knocks. You must be ready. A lifestyle constantly facing new challenges. We expect our internal auditors to extend their skills and knowledge. Many of the areas in VF where our internal auditors work may be entirely new to them; such as marketing, product development, retail space management, production planning, manufacturing, distribution, customer service, etc. Our internal auditors must break out of their old comfort zone and think outside of the box in order to grow and be effective innovators within VF Internal Audit. You must welcome challenge. A lifestyle of fast moving targets. We are sharply focused on ownership of deliverables. Each internal audit involves clear assignment of goals and objectives, and aggressive timetables for their achievement. Our internal auditors must be alert for opportunities to conduct their work in an effective and efficient manner. You must be agile. A lifestyle of transiency. We conduct internal audits all over the world from Greensboro, to Buenos Aires, to Brussels, to Hong Kong. In this sense, time and space mean little. Travel is monitored, managed responsibly and is largely self-directed. Out-of-town travel typically runs less than 40% each year, with departures normally falling on Monday mornings and returns occurring on Friday afternoons. Our internal auditors are receptive to working on a very mobile basis, in varied environments, with little annoyance from the inherent inefficiencies of travel. You must be global. A lifestyle of self-sufficiency. We respect each other as fellow professionals and support one another as a team. However, our internal auditors possess the self-discipline and self-confidence to function effectively in a fairly independent, self-directed capacity. You must be independent. A lifestyle of balance. The demands associated with our work provide our internal auditors with a very challenging professional experience. In turn, we provide an environment which accords a great deal of respect and flexibility to our internal auditors. From self-directed work days to extensive collaboration in conducting their work, each internal auditor is provided ample opportunity to establish a high quality of work-life balance. You must take care of yourself. Work is what you do. each internal auditor is provided ample opportunity to establish a high quality of life. Life is what s happening to you while you work. 17

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Your Compensation and Benefits... Integral to any decision involving a change in professional status is consideration of your compensation and benefits. As a Fortune 250 Company, operating in the global marketplace, VF competes for human resources on a worldwide basis. Accordingly, VF Internal Audit offers compensation and benefits to its associates that are competitive in such an environment. While immediate rewards are a very important element of evaluating compensation and benefits, the potential any prospective organization holds for long-range professional and financial development should also be considered. The temptations offered by a small or troubled organization may be alluring in the near term, while offering limited longer term opportunity for you to continue developing your skills and financial resources. In VF Internal Audit, we compensate our internal auditors based on the contributions they can make to VF. While virtually all of our internal auditors hold the title of Senior or Analyst, these titles have a dramatically different connotation than is held in many other organizations. Many of our Seniors or Analysts are former Supervisors, Managers, or Directors. Accordingly, a great deal of range and flexibility is applied in compensating our internal auditors. The best evidence we can offer when someone is considering all the variables related to an association with us, including compensation and benefits, is to share the retention record we have enjoyed. Over the past decade, a very high percentage of our internal auditors who have been placed outside of VF Internal Audit remain with VF today. We think this is very compelling testimony for one to consider when evaluating the merits of a long term association with us. Should our discussions lead to an offer of employment, our human resources representatives will be pleased to review our benefit programs with you. we compensate our internal auditors based on the contributions they can make to VF. $ Now A Career Then 19

Nautica HQ New York The North Face HQ San Leandro, CA VF WORLD HEADQUARTERS GREENSBORO, NC Vans HQ Cypress, CA VF International Office Stabio, Switzerland 20

Your Future With VF... A change in professional association involves a look into the future and making the best guess as to what the future will hold. In this respect, we can offer few absolutes. As stated earlier, we are looking for achievers. We want our internal auditors to continue to achieve once they join us and we want this notion to be the future they are committed to. It is our goal to provide an environment that promotes and celebrates continued achievement by our internal auditors. With the many challenges and opportunities that VF faces today, there is ample opportunity for our internal auditors to deliver value to our customers. Most of our internal audits are looked upon with keen interest by management. In effect, we work in a fish bowl and; consequently, achievements of our internal audit teams are easy for our customers to judge. Apart from the fulfillment our internal auditors derive from having a real sense of purpose, and the opportunity to deliver meaningful value to their customers, we encourage our internal auditors to look to the future. In fact, opportunity for advancement exists within VF Internal Audit, or outside the internal audit function in other line and staff positions within VF. We do not employ any form of regimented or scheduled rotation program out of VF Internal Audit, rather we let the demand within VF for the skills and experience of our internal auditors take its natural course. In fact, over the last decade, a very high percentage of our internal auditors have migrated into other capacities within VF simply by demonstrating their value, and creating their own demand and opportunity. With roughly a century of growth and success recorded in the history of VF, we believe there is great opportunity for our internal auditors to advance their careers and continue to achieve -- as leaders in VF. If you would like to further explore employment opportunities with VF Internal Audit, we invite you to contact one of our representatives in: Greensboro, North Carolina (US): +1336.424.7740; Stabio, Switzerland: +41916492015; Hong Kong, China: +852-2953 5344 Before signing off, we also thought it would be helpful if you could see what some of our alumni have to say about us... Over 150 internal auditors placed into other positions within VF over the past 10 years. a very high percentage of our internal auditors have migrated into other capacities within VF Corporation. Leaders are emerging throughout VF, whose heritage includes a beginning with VF Internal Audit. 21

22 The People of VF Internal Audit

What Others, Maybe Quite Like You, Have Found... Prior to joining VF Internal Audit, I was an auditor with a Big Six firm and a division controller for another Fortune 500 Company. During all this time, I never thought I would be an internal auditor and I certainly had no interest in making a career out of auditing. Of course, I also had no idea how much value a well run internal audit function could bring to an organization, as well as to me, until I joined VF. I learned a great deal while working in VF Internal Audit and I ultimately realized my goal of continuing my financial management track by accepting a promotion outside of VF Internal Audit with one of VF s businesses. Thereafter, I worked on assignments overseas and, more recently, I returned to Greensboro. Scott Roe VP, Corporate Controller and Chief Accounting Officer VF Corporation A Former VF Internal Audit Manager For other perspectives, visit us on YouTube. Keywords: VF Internal Audit. 23

Internal Audit Helping Assure Your Success Visit us at: http: www.vfauditmall.com 24