Corporate Social Responsibility Report 2013 | 2 At Timberland, one of our goals is to find new and innovative ways to connect communities while reducing our carbon footprint. MESSAGE FROM Patrik Frisk The wealth of passion and performance our employees bring with them to work each day is incredibly inspiring. Timberland continuously pursues both an impeccable business value and social justice. With nearly 40 years of commitment to sustainability, our core belief that business can create a positive impact in the world, still holds true today. Through our initiatives, we have proved that corporate social responsibility isn’t a responsibility at all but a powerful, motivating competitive advantage. By reducing our carbon footprint, through our factories and materials used to make our shoes we have decreased our energy costs. The money saved is going to creating a top line growth that meets consumers’ growing desire for eco-friendly products. In addition we strive to preserve the outdoors and how it affects people in communities throughout the globe. Timberland is a leader in corporate responsibility, and this asset was a major component in VF Corporation’s acquisition of Timberland in 2011. When a $9 billion apparel and footwear powerhouse is attracted to a brand due to its innovative approach to sustainability, you know there is a higher business value. Timberland brings expertise and insight about protecting the outdoors, innovating products, improving workers’ lives and engaging in community service. Other VF brands are learning from Timberland to make their own organization more sustainable. The more companies to become sustainable, the bigger impact of change we will be able to make. Our commitment to corporate social responsibility has always come straight from the top. I will continue to encourage and support sustainable practices in the business world. My new role gives me the opportunity to make positive change within our company and in the world. Timberland’s past and future have one commonality: both are powered by a desire to transform and operate our business in an accountable, responsible and sustainable manner. This brand hasn’t yet reached its full potential, but we’re on our way. Thank you, Patrik Frisk Patrik Frisk President, Timberland LLC Corporate Social Responsibility Report 2013 | 3 Company Profile Founded: Abington Shoe Company became The Timberland Company in 1978 Products: Premium-quality footwear, apparel and accessories for men, women and children, as well as a line of professional footwear and apparel under the Timberland PRO® series brand. Employees: 5,600 around the world Corporate Headquarters: 200 Domain Drive, Stratham, NH 03885 USA (603) 7729500 Product Sales: North America (40%) / International (60%) by Business Segment: Wholesale (70%) / Retail (30%) Footwear (79%) / Apparel and Accessories (21%) Where Sold: Independent retailers worldwide, upper class department stores, athletic specialty stores, Timberland's own retail locations Philosophy: By distributing world-class products Timberland is committed to “Doing Well and Doing Good.” Timberland believes that to make a difference through the world’s communities creates value for shareholders, employees and consumers. 2011 Revenue: $1.5 billion Award: Environmentally Friendly Award Corporate Social Responsibility Report 2013 | 4 CHOCOLATE COSMOS TO APPRECIATE MOMS Started in June 2012 and went until May 2013. For the entire year, the Men’s 6-­‐inch Premium Waterproof Boot ($180) was the featured boot. Every time a pair of boots was sold a rare Chocolate Cosmos was planted in a poverty-­‐stricken town in Haiti. At the end of the year, on Mother’s Day the children from these communities were able to pick the flowers to show appreciation to their mothers. Boots Sold 22,121 boots sold during the year, throughout the world. * 15,484-­‐ Sold in the US United States 70% Europe, Asia 10% *2,213– Sold in Europe and Asia *4,425-­‐ Sold through the Internet Internet Sales 20% Flowers Planted *300 Chocolate Cosmos planted per 73 communities *10 flowers were given to 30 mothers within each community *73 thank you notes were sent to Patrik Frisk Corporate Social Responsibility Report 2013 | 5