Levi Strauss Investor Day Presentation Deck slide image

Levi Strauss Investor Day Presentation Deck

NET DEBT AND LEVERAGE RATIO We define net debt, as total debt, excluding capital leases, less cash and cash equivalents. We define leverage ratio, as the ratio of total debt to the last 12 months Adjusted EBITDA. Our management believes that net debt and leverage ratio are important measures to monitor our financial flexibility and evaluate the strength of our balance sheet. Net debt and leverage ratio have limitations as analytical tools and may vary from similarly titled measures used by other companies. Net debt and leverage ratio should not be considered in isolation or as substitutes for an analysis of our results prepared and presented in accordance with GAAP. LEVI STRAUSS & CO. The following table presents a reconciliation of total debt, excluding capital leases, the most directly comparable financial measure calculated in accordance with GAAP, to net debt for each of the periods presented. (Dollars in millions) MOST COMPARABLE GAAP MEASURE Total debt, excluding capital leases NON-GAAP MEASURE Total debt, excluding capital leases Cash and cash equivalents Short-term investments in marketable securities NET DEBT 2021 (Dollars in millions) Total debt, excluding capital leases Last Twelve Months Adjusted EBITDA LEVERAGE RATIO $1,026.6 $1,026.6 (810.3) (91.5) $ 124.8 2021 $1,026.6 854.9 2020 1.2 $1,564.3 $1,564.3 (1,497.2) (96.5) $ (29.4) 2020 $1,564.3 The following table presents a reconciliation of total debt, excluding capital leases, the most directly comparable financial measure calculated in accordance with GAAP, to leverage ratio for each of the periods presented. 317.7 2019 4.9 $1,014.4 $1,014.4 (934.2) (80.7) $ (0.5) 2019 $ 1,014.4 734.5 2011 1.4 $1,972.4 $1,972.4 (204.5) $1,767.9 2011 $ 1,972.4 521.3 3.8 ©2022 Levi Strauss & Co. CONFIDENTIAL 165
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