VF CorporationVF CorporationMerrill Lynch ConferenceMerrill Lynch Conference

March 22, 2006

FD Statement FD Statement Certain statements included in today's remarks and in the question and answer session may constitute forward-looking statements within the meaning of the Federal Securities laws. Forward-looking statements are not guarantees, and actual results may differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations or financial condition of the company to differ are discussed in the documents filed by the company with the Securities and Exchange Commission.

Certain statements included in today's remarks and in the question and answer session may constitute forward-looking statements within the meaning of the Federal Securities laws. Forward-looking statements are not guarantees, and actual results may differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause the actual results of operations or financial condition of the company to differ are discussed in the documents filed by the company with the Securities and Exchange Commission.

Transforming VFTransforming VFOur Growth Plan is working

• 3 consecutive years of record sales & earnings …looking forward to 4th

• Rapidly changing mix of business

Our acquisition strategy is working• Have added 4 dynamic, growing lifestyle brands• Each has strong potential for growth• Each will benefit from VF’s exceptional brand

building, operational & financial disciplines• Most are exceeding our acquisition plans

Our direct-to-consumer plan is working• Current base of 525 monobrand stores• Plan to double number to nearly 1000• Very good profit model

Our Growth Plan is working•• 3 consecutive years of record sales & earnings 3 consecutive years of record sales & earnings ……

looking forward to 4looking forward to 4thth

•• Rapidly changing mix of businessRapidly changing mix of business

Our acquisition strategy is working•• Have added 4 dynamic, growing lifestyle brandsHave added 4 dynamic, growing lifestyle brands•• Each has strong potential for growthEach has strong potential for growth•• Each will benefit from VFEach will benefit from VF’’s exceptional brand s exceptional brand

building, operational & financial disciplinesbuilding, operational & financial disciplines•• Most are exceeding our acquisition plansMost are exceeding our acquisition plans

Our direct-to-consumer plan is working•• Current base of 525 Current base of 525 monobrandmonobrand storesstores•• Plan to double number to nearly 1000Plan to double number to nearly 1000•• Very good profit modelVery good profit model

®

Jeanswear GlobalIntimates

Outdoor Imagewear Sportswear

VF Corporation

VF BrandsVF Brands

*licensed

*

*

*

Our Growth GoalsOur Growth Goals

6 - 8 % Sales Growth3 3 -- 4% organic4% organic3 3 -- 4% acquisitions4% acquisitions

Lifestyle Businesses•• Outdoor Outdoor •• SportswearSportswear

Heritage Businesses•• JeanswearJeanswear•• IntimatesIntimates•• ImagewearImagewear

High single-digit to low double-digit growth

Flat to low single-digit growth

Growth DriversGrowth DriversBuild More Global, Growing Lifestyle BrandsFocus: younger and more female

1.

Expand Our Share With Winning CustomersFocus: new cross coalition customer team organization

2.

Stretch Brands & Customers to New GeographiesFocus: China, India, Japan, Western Europe

Fuel the Growth Focus: leverage VF supply chain capabilities

3.

4.

5.

Build New Growth EnablersFocus: leadership development & new capabilities6.

Expand Our Direct to Consumer Business Focus: owned monobrand retail and e:commerce

Steady Progress On Steady Progress On Our Growth Plan (I)Our Growth Plan (I)

Build more global lifestyle brands

20002000

20032003

20042004

20052005

1

Steady Progress On Steady Progress On Our Growth PlanOur Growth Plan

Expand our share with winning customers

New Customer Teams Organization

•Expand breadth and depth of relationships with customers•Become the world class expert on their strategies•Build strategies aligned with each retailer•Leverage best practices and capabilities•Go to market as total VF Corp

2

Steady Progress On Steady Progress On Our Growth PlanOur Growth Plan

Stretch brands & customers to new geographies

International sales continue to grow

0%

5%

10%

15%

20%

25%

30%

2001 2002 2003 2004 2005

19% 20%23%

25%

International Sales as Percent of Total

3

22%

Steady Progress On Steady Progress On Our Growth PlanOur Growth Plan

4

Expand our direct to consumer business

Focus:Owned monobrand retail and e:commerce

NEW!

VF Owned Retail StoresVF Owned Retail Stores

# of Stores 2005 2009 Goal*

Regular 305 649Outlet 220 279

Total 525 928

% of Total VF Sales 12% 18%

* Before Acquisitions

Steady Progress On Steady Progress On Our Growth Plan Our Growth Plan

5

Fuel the growth

6

Build new growth enablers

New talent in strategy, M&A, customer teams and HR

33.2%36.3%37.8%

40.5%41.8%

0

10

20

30

40

50

'01 '02 '03 '04 '05

Gross Margins

Capability platformsCapability platforms

Total Shareholder ReturnTotal Shareholder Return

Remain Focused on Shareholder Remain Focused on Shareholder Value As We Transform VFValue As We Transform VF

4. P/E multiple

3. Free Cash Flow

Financial StrategyFinancial Strategy

1. Growth

PortfolioPortfolio

2. Margins

Operational Excellence

Operational Excellence

Capability platformsCapability platforms

Total Shareholder ReturnTotal Shareholder Return

Remain Focused on Shareholder Remain Focused on Shareholder Value As We Transform VFValue As We Transform VF

1. Growth 2. Margins 3. Free Cash Flow

4. P/E multiple

Financial StrategyFinancial StrategyPortfolioPortfolio Operational Excellence

Operational Excellence

Clear Criteria For AcquisitionsClear Criteria For Acquisitions

Strategic criteria

Financial Criteria

• Reinforce VF’s lifestyle brand strategy

• Add to VF’s capability set

• Leverage existing VF capabilities and platforms

• International growth potential

• Ideally, dual gender or female appeal

• TSR accretive (no growth for growth’s sake!)

• Expected Return on Capital > 17 %

• Minimum high single-digit sales growth potential

• Operating margin potential > 14 %

• Limited and manageable financial risk

Focus On Two Types Of DealsFocus On Two Types Of Deals

< $100M deal sizeEasy to integrateAdd new capabilities to VFLeverage existing capabilitiesNew product categoriesProbably lower growth

“Tuck-ins”Substantial

Lifestyle PlaysUp to $1B deal sizeStrong lifestyle brandOutdoor or SportswearOpportunity for retailHigher growthHigher gross marginsStrong operating margin opportunities

Superior M&A Track RecordSuperior M&A Track Record

... To

10%

22%

9%

ROC2005

Sales of $238M

Significant operating losses

Sales >$540M

Operating margin >18%

Sales of $536M

Operating margin ~7%

Sales >$570M

Operating margin >16%

Sales of $353M

Operating margin ~3%

Sales >$390M

Operating margin >13%

From ...

2000

2003

2004

Capability platformsCapability platforms

Total Shareholder ReturnTotal Shareholder Return

Remain Focused on Shareholder Remain Focused on Shareholder Value As We Transform VFValue As We Transform VF

1. Growth 2. Margins 3. Free Cash Flow

4. P/E multiple

Financial StrategyFinancial StrategyPortfolioPortfolio Operational Excellence

Operational Excellence

$100M

Advanced Global Procurement

Distribution Network Optimization

Best In Class Inventory

Management

IS/IT Strategies

‘‘Fuel The GrowthFuel The Growth’’: : $100M in Savings$100M in Savings

Improved our Gross margins from 37.8% in 2003 to 41.8% in 2005Improved our Gross margins from 37.8% in 2003 to 41.8% in 2005

$100M run-rate savings are expected by 2009

To date, we have realized over $15M

Savings will be back-end loaded

Reinvest majority of savings

Capability platformsCapability platforms

Total Shareholder ReturnTotal Shareholder Return

Remain Focused on Shareholder Remain Focused on Shareholder Value As We Transform VFValue As We Transform VF

1. Growth 2. Margins 3. Free Cash Flow

4. P/E multiple

Financial StrategyFinancial StrategyPortfolioPortfolio Operational Excellence

Operational Excellence

Free Cash Flow Important Driver Free Cash Flow Important Driver of Strong TSR Performanceof Strong TSR Performance

Cumulative Free Cash Flow of $1.6B from 2003-2005 for VF

Strong ability to fund growth and return cash to investors

VF2004

ApparelMedian

2004

10.7%

5.9%

Free Cash Flow Margin

S&P 500Median

2004

8.4%

Clear Priorities For Use of Clear Priorities For Use of Future Free Cash FlowFuture Free Cash Flow

• Acquisitions

• Dividends

• Buybacks

2005 2009

~450

~600

Free Cash Flow ($M)

Balanced Portfolio: Internally Balanced Portfolio: Internally Generated Cash Funds GrowthGenerated Cash Funds Growth

Heritage Businesses Lifestyle Businesses

Growth Flat to low single-digit

High single-digit to low double-digit

Returnon

Capital

Outstanding - well above cost of capital ~ 20%

Strong - slightly above cost of capital ~10%

Free Cash Flow

$1.3B(2003-2005)

$0.3B(2003-2005)

2006 FY and Q1 Guidance2006 FY and Q1 Guidance

Revenue growth: +4 to 5%~$6.7B

EPS growth: +6%~$4.80

Revenue growth: +5%

EPS growth: Flat to up slightly

2006 Guidance 1Q 2006 Guidance

VF has Made Significant Progress VF has Made Significant Progress in Portfolio Transformationin Portfolio Transformation

Business mix: 2005

70 %30 %

Lifestyle businessesHeritage businesses

Future

40 %

60 %85 %

15 %

Business mix: 2000