King Capital recommends that Ralph Lauren pursue a negotiated sale to VF Corp. An acquisition by VF Corp would result in Ralph Lauren gaining a stronger manufacturing base through integration with VF Corp's existing network of manufacturers. This would allow Ralph Lauren to reduce operational expenses. The acquisition would also stabilize Ralph Lauren's stock valuation, which has recently been volatile, and maximize shareholder value through securing long-term growth opportunities.

1. PRESENTATION TO RALPH LAUREN BOARD OF DIRECTORS
Discussion Materials | February 11th, 2016
King Capital

2. King Capital
King Capital Partners
Skylar Gibson
• From: Los Angeles, California
• Majors: Finance and Entrepreneurship
• Scholarship Advisory Committee
Anshul Gupta
• From: New Delhi, India
• Majors: Finance and Accounting
• Game Theory Researcher
2
Zachary LaPasso
• From: St. Louis, Missouri
• Majors: Finance and Accounting
• Legal Research Intern
Austin Peters
• From: Greenwood, Indiana
• Majors: Finance and Chinese
• Private Equity Analyst
Brandon Jonas
• From: Fishers, Indiana
• Majors: Finance and Accounting
• IUDM Dancer
King Capital

3. Table of Contents
I. Executive Summary 4
II. Industry and Company Analysis 6
III. Strategic Recommendations 10
IV. Appendix 16
3
King Capital

4. I. Executive Summary
King Capital

5. Executive Summary
Executive Summary
5
King Capital
recommends
that Ralph
Lauren sells
itself to VF
Corp
Ralph
Lauren’s
integration
with VF Corp
results in a
stronger
manufacturing
base
RALPH LAUREN OVERVIEW
• The stock price has recently been
extremely volatile and dipped 32% in
the past three months
• Mr. Ralph Lauren stepped down in
September of 2015 and the company is
currently restructuring to reduce
operational expenses
• 52% of revenue is derived from retail
and 48% from wholesale, which is
increasing at a faster rate
CURRENT POSITIONING
• Sold merchandise through 433 retail
stores and 503 concession-based shop-
within-shops
• Overseas sales currently amount to
33.1% of revenue
• Strong US dollar has had a significant
negative impact on sales, but Ralph
Lauren still holds a strong portfolio of
global luxury lifestyle brands
STRATEGY ASSESSMENT
• Ralph Lauren can capitalize on VF
Corp’s existing network of
manufacturers to reduce operational
expenses
• Investor unease likely caused volatility
in stock valuation which will stabilize
through acquisition by VF Corp
• A strategic sale maximizes current
company position, secures long-term
shareholder value, and decreases
dependency on third-party suppliers
RECOMMENDATIONS
• To maximize shareholder value, we
recommend that Ralph Lauren pursue a
negotiated sale to VF Corp
• This approach will secure Ralph Lauren
stakeholders’ value, stabilize the
company, and provide more
opportunities for growth through
acquisition by a conglomerate with strong
management and operational expertise
King Capital

6. II. Industry and Company Analysis
King Capital

7. Sector Analysis
Consumer Discretionary Sector Performance
• Stabilization in the housing market and declining U.S. unemployment rate may lead to increased consumer spending
• E-commerce sales expected to grow at a CAGR rate of 14% in United States, 16.2% in Europe, and 159.4% in Asia Pacific
region by 2019
• Strengthening US dollar combined with real wage increases will support augmented consumer spending
• Increased retail competition and the growing prevalence of counterfeit products will put pressure on margins
7
S&P 500 vs. Vanguard Consumer
Discretionary ETF
Consumer Discretionary Sector
EPS Growth
Lower
commodity
prices will put
more money in
consumers’
pockets and
promote more
discretionary
spending
E-commerce
industry is
projected to
grow at an
average of 5.8%
per year
through 2024
Source: Bloomberg, Charles Schwab, MarketLine, Vanguard
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
2015 2016 Estimate
YOYGrowth
Time Period
Key:
Vanguard Consumer Discretionary ETF
S&P 500
King Capital

8. ($ in millions) LTM
Country Revenue EV/EBITDA
USA 4,511.66 8.88x
USA 12,542.84 15.82x
USA 5,844.59 11.90x
USA 3,016.56 10.61x
USA 7,976.60 11.62x
USA 2,690.85 14.32x
UK 2,331.04 11.10x
USA 7,506.00 5.87x
Industry Analysis
Luxury Apparel Industry Performance
8
Consumer Retail M&A Diversified Luxury Retailers
Source: Harris Williams & Co, Deloitte
• The global luxury market, currently valued at $320 billion, is projected to expand to $374.85 billion by 2020
• Demand for luxury leather goods continues to grow, especially men’s
• Global online sales of luxury goods reached $25 billion in 2015, up 134% from 2005
• US P/E deal multiples are considerably above 15-year average
• US companies have increasing cash reserves, positioning them to make acquisitions
• Strategic buyers have been pursuing an aggressive acquisition strategy
Luxury goods
market is
anticipated to
grow at 3.4%
CAGR through
2020
47
63 66
98
127
77
57
77
43
66
35 39
67
18
14
20
23
16
13
14
25
34
22
18 14
5
4Q11 1Q12 2 Q1 2 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
NUMBEROFTRANSACTIONS
TIME FRAME
Strategic Buyer PEG Acquirer
King Capital

9. • Founded in 1967 by Mr. Ralph Lauren, the company is a
global leader in the design, marketing, and distribution
of premium lifestyle products, including apparel,
accessories, home furnishings, and other licensed
product categories
• 67% of revenue is derived from the Americas, 21% of
revenue is derived from Europe, and 12% from Asia
• Major brands: Polo Ralph Lauren, Club Monaco, and
Chaps
• Since 11/11/15 Ralph Lauren stock price has dropped
32%
• Ralph Lauren stepped down in September and the
company is restructuring to decrease operational
expenses
Strategic Focus
Ralph Lauren Strategic Focus
9
Business Description Revenue Segmentation
Financial Statistics Stock Performance
Ralph Lauren
aims to extend
international
presence in Asia
and Europe
Ralph Lauren
reacquired the
Chaps label
from
PVH/ Warnaco
Wholesale
46%
Retail
52%
Licensing
2%
Source: Company Reports
• Market Capitalization: $7.57 billion
• TTM Revenue: $7.42 billion
• TTM EBITDA: $1.17 billion
King Capital

10. III. Strategic Recommendations
King Capital

11. Strategic Recommendation
Strategic Recommendation: Acquisition of Ralph Lauren
11
Strategic Sale Rationale Sources & Uses
Pro Forma Capitalization Table
• A strategic sale will position Ralph Lauren for significant
and stable growth
• Lessens reliance on third-party suppliers and vendors
• Focuses on core business growth, not on acquiring and
integrating a company in which Ralph Lauren has no
competitive advantage
• Allows geographic expansion, specifically into Asia,
through capitalizing on preexisting relationships
VF Corp
acquired
Timberland,
their last
acquisition, for
$1.97 billion on
June 13, 2011
Global
reorganizing
plan will reduce
Ralph Lauren’s
operating
expenses by
$100 million
Source: Bloomberg, Company Reports
Transaction Structure ($ in millions)
Projected Offer Price $127.85
x RL Shares Outstanding $86.70
= Projected Offer Value $11,084.16
Less Cash used $500.00
Residual $10,584.16
/ Acquirer Stock Price $56.60
= Shares Issued in Transaction $187.00
% Cash 4.51%
VF Corp shares per RL share 2.16
Number of VF Corp shares per RL share $122.08
Cash per RL share $5.77
Value Per RL share $127.85
2016E 2017E 2018E 2019E
King Capital
Net Income $2,021.00 $2,329.12 $2,597.13 $3,391.35
Fully Diluted Shares 599.70 599.70 599.70 599.70
Pro Forma EPS 3.37 3.88 4.33 5.66
Standalone EPS 3.46 3.90 4.20 4.98
Accretive $ -0.09 -0.02 0.13 0.68
Accretive % -2.60% -0.42% 3.11% 13.56%
NI Cushion Over BE ($53.96) ($9.71) $78.39 $404.84
Recommended Buyer - VF Corp
• VF Corp’s growth strategy “17x17” aims to achieve $17
billion in revenue by 2017, requiring a sizeable
acquisition
• Capitalizing on VF Corp’s internet marketing expertise,
Ralph Lauren will improve their internet branding
• VF Corp offers needed product diversification through
its extensive footwear and accessories manufacturing
• The seamless implementation of lean manufacturing
processes directly reduces COGS, while significantly
decreasing overall working capital and inventory
• Manufacturing facilities located in the US, Mexico, and
the Middle East are in close geographic proximity to
Ralph Lauren’s suppliers, thus reducing manufacturing
expenses
• VF Corp is seeking to expand into a higher luxury
bracket, making Ralph Lauren a prized acquisition
• The selling of Ralph Lauren is the appropriate action
because it secures long-term shareholder value and
improves the business practices of Ralph Lauren

12. Football Field Analysis 12
Strategic Recommendation: Football Field Analysis
9.6x – 12.1x TTM EBITDA
14.5x – 17x P/E
10.0x-13.0x TTM EBITDA
10% WACC
King Capital
11.0x-14.0x TTM EBITDA
Discounted Cash Flow Analysis
Comparable Companies Analysis
Precedent Transaction Analysis

13. Strategic Alternatives
Strategic Alternatives: Acquisition by LVMH
13
Business Description Revenue Segmentation
Strategic Rationale Stock Performance
• LVMH Moët Hennessy Louis Vuitton is one of the
world’s leading luxury goods conglomerates
• LVMH is involved in the manufacturing and sales of
wines, spirits, cosmetics, jewelry, fashion, and leather
products
• Worldwide, the company operates through a network of
3,708 stores
• In the apparel industry, LVMH includes brands such as
Louis Vuitton, Fendi, Marc Jacobs, Givenchy, Loro Piana,
and more
• LVMH recently acquired Hermes, a French manufacturer
of luxury goods, for $5.2 billion
LVMH recently
acquired
Bulgari SpA in
2011 for about
$5.2 billion,
doubling the
size of their
jewelry unit
• LVMH has a large presence in European and Asian
markets, providing an excellent opportunity for Ralph
Lauren to increase its international sales, as 67% of Ralph
Lauren sales comes from the Americas
• Conglomerates provide diversified business operations,
which prevents significant reliance on a single supplier
• LVMH owns and operates much of their own
manufacturing, drastically reducing overhead costs and
providing control of the manufacturing process
• LVMH is highly focused in the luxury apparel industry
and has valuable expertise in this specific market
• The conglomerate’s substantial debt could lessen the
probability of an acquisition because they would not
want to increase their leverage Source: Bloomberg, MarketLine, Wall Street Journal
Fashion and
Leather
Goods
35%
Selective
Retailing
31%
Wines and
Spirits
13%
Perfumes
and
Cosmetics
11%
Watches
and Jewelry
9%
Other activities and holding
companies
1%
LVMH has
significant cash
reserves,
currently
holding around
$4 billion
King Capital

14. Strategic Alternatives
Strategic Alternatives: Potential Financial Sponsors
14
• Bain Capital Private Equity pioneered the value added investment approach. They
partner with management teams to provide strategic resources that build and grow
great companies
• Bain Capital is one of the leading investors in the Consumer, Retail and Dining sectors
with a global platform allowing them to identify industry best-practices and help
companies compete on a global scale
• TPG Capital is one of the largest private equity investment firms globally, focused on
leveraged buyout, growth capital, and leveraged recapitalization investments in
distressed companies and turnaround situations
• TPG has an extensive global network and long-standing, on-the-ground presence in
critical markets. TPG has built a strong international presence with 18 offices worldwide
• They were one of the first U.S.-based private investment firms to establish significant
operations in Asia and Europe, in 1994 and 1995 respectively
• The Carlyle Group is a global alternative asset manager with more than $203 billion in
assets under management
• Operating in 40 offices in North America, South America, Europe, the Middle East,
North Africa, Sub-Saharan Africa, Japan, Asia, and Australia
• Through an array of products and geographic specific-funds, Carlyle works to meet the
dynamic needs of the world’s most sophisticated investors
• Expertise and deep industry knowledge - Invest in sectors they know, and value depth
over breadth
• Blackstone strives to create value by investing in great businesses where their capital,
strategic insight, global relationships and operational support can drive transformation
and realize the company’s potential
• The resulting improvements in growth and global competitiveness benefit not only
investors, but also workers, communities and all stakeholders
King Capital

15. Strategic Alternatives
Strategic Alternatives: Acquisition of Fossil Group
15
Business Description Revenue by Region
Strategic Rationale Stock Performance
• Fossil Group is a marketer, distributor, and global
designer that specializes in luxury accessories
• Fossil offers men’s and women’s fashion watches,
jewelry, handbags, and other leather goods
• Globally, the company has more than 400 retail locations,
4,000 wholesale locations, and 13,000 employees
• The company has wholesale relationships with
department stores such as Dillard’s, Saks Fifth Avenue,
and Nordstrom
• Fossil has licensing agreements with companies such as
Armani Exchange, Michael Kors, Burberry, and Marc
Jacobs
• Recently acquired wearable maker Misfit for 260 million
Fossil’s
wholesale
business
accounts for
more than 80%
of their sales
Source: Company Reports, Thomson Reuters, Wall Street Journal
In 2014, Fossil
posted revenues
of $3.5 billion
King Capital
• The valuation of a Fossil acquisition is calculated to
be approximately $3.1 billion
• Fossil’s accessory products would implement
Ralph Lauren’s growth strategy
• Fossil’s recent acquisition of Misfit would allow
Ralph Lauren to reach a new customer base and a
market that is projected to grow at a high rate
• Fossil’s existing Asian revenue would increase
Ralph Lauren’s by around 50%
• Fossil’s strong brand image would complement
Ralph Lauren’s already strong customer base
34.60%
26.50%
12.60%
North America
Europe
Asia Pacific

16. IV. Appendix
King Capital

17. Appendix 17
Appendix: Comparable Companies Analysis
King Capital
Tier 1
Name Ticker Stock Price 52 Week High % of 52 week high
Enterprise
Value
EV/EBITDA
TTM
EV/EBIT
TTM
EV/Sales
TTM
Total Debt/
Equity Market Cap
P/E
TTM
Price/
Book Value
Michael Kors KORS $37.79 $73.47 51.44% $6,582.18 8.88 9.85 1.46 0.00 $6,999.44 8.92 3.87
Hanesbrands HBI $30.05 $34.80 86.35% $14,269.00 11.90 13.33 2.00 143.05 $11,774.24 14.08 7.19
Carter's CRI $95.23 $109.53 86.94% $5,248.07 10.61 14.00 1.74 74.49 $4,951.05 19.78 5.50
PVH PVH $69.45 $120.67 57.55% $8,688.46 11.62 12.49 1.62 81.26 $5,691.16 10.35 1.27
G-III Apparel GIII $45.78 $73.93 61.92% $2,202.23 11.10 12.47 0.94 0.00 $2,084.69 16.64 2.41
Ralph Lauren RL $85.15 $141.08 60.36% $6,837.17 5.87 7.92 0.92 13.67 $7,185.90 12.65 1.88
Mean 67.43% $7,304.52 10.00 11.68 1.45 52.08 $6,447.74 13.74 3.69
Median 61.14% $6,709.68 10.86 12.48 1.54 44.08 $6,345.30 13.37 3.14
High $95.23 $141.08 86.94% $14,269.00 11.90 14.00 2.00 143.05 $11,774.24 19.78 7.19
Low $30.05 $34.80 51.44% $2,202.23 5.87 7.92 0.92 0.00 $2,084.69 8.92 1.27
Tier 2
Name Ticker Stock Price 52 Week High % of 52 week high
Enterprise
Value
EV/EBITDA
TTM
EV/EBIT
TTM
EV/Sales
TTM
Total Debt/
Equity Market Cap
P/E
TTM
Price/
Book Value
Kate Spade KATE $17.00 $35.75 47.55% $2,352.76 35.25 63.31 1.94 205.77 $2,170.81 18.46 12.56
Gildan GIL $25.12 $35.15 71.47% $6,540.08 14.32 18.00 2.43 7.76 $6,125.17 15.03 2.88
Perry Ellis PERY $17.71 $28.19 62.82% $374.29 12.27 18.07 0.41 56.99 $278.46 N/A 0.86
Vince VNCE $4.88 $25.30 19.29% $254.58 12.48 13.41 0.81 122.27 $179.48 11.89 2.36
VF Corp VFC $58.75 $77.83 75.49% $27,189.09 15.82 17.67 2.17 25.74 $25,045.66 18.84 4.73
Mean 59.04% $4,904.65 12.99 17.93 1.34 64.57 $2,858.15 16.74 5.43
Median 61.53% $4,446.42 11.50 12.94 1.20 48.08 $4,147.99 13.74 2.64
High $95.23 $141.08 86.94% $14,269.00 35.25 63.31 2.43 205.77 $11,774.24 19.78 12.56
Low $4.88 $25.30 19.29% $254.58 5.87 7.92 0.41 0.00 $179.48 8.92 0.86
Implied
Valuation
EV/EBITDA
TTM
Implied
Enterprise
Value
Valuation Metric TTM EBITDA Low High Low High
$1,165.00 5.87 11.90 $6,838.55 $13,863.50

18. Appendix 18
Appendix: Precedent Transactions Analysis
King Capital
Date Target Acquirer Transaction Value EBITDA Mulitple
June 26, 2015 Tommy Hilfiger Corp PVH Corp $ 3,144.56 15.61x
June 26, 2015 New Look Retail Group Brait SE $ 1,782.80 8.57x
June 19, 2014 Jos A Bank Clothiers Inc. Men's Wearhouse Inc. $ 1,486.07 11.16x
April 9, 2014 Jones Group Inc. Sycamore Partners LLC $ 2,199.05 11.06x
February 14, 2013 Warnaco Group Inc. PVH Corp $ 3,022.00 11.28x
June 13, 2011 Timberland Co. VF Corp $ 1,971.75 12.30x
March 7, 2011 Bulgari SpA LVMH SA $ 5,184.23 28.2x
Mean $ 2,267.71 11.7x
Median $ 2,085.40 11.2x
High $ 3,144.56 15.6x
Low $ 1,486.07 8.57x

19. Appendix 19
Appendix: Ralph Lauren Discounted Cash Flow Analysis
King Capital
Actual FYE March
31st
Projected FYE
March 31st
2013A 2014A 2015A LTM 2016E 2017E 2018E 2019E 2020E
. 0.5 1.5 2.5 3.5 4.5
Total Revenues $ 6,944.80 $ 7,450.00 $ 7,620.00 $ 7,419.00 $ 7,392.70 $ 7,229.00 $ 7,543.25 $ 7,929.46 $ 8,335.45
% Growth 7.27% 2.28% -2.64% -0.35% -2.21% 4.35% 5.12% 5.12%
Cost of Sales $ 2,789.00 $ 3,140.00 $ 3,242.00 $ 3,199.00 $ 3,208.43 $ 3,132.59 $ 3,272.26 $ 3,367.56 $ 3,540.07
% Sales 40.16% 37.44% 41.21% 43.70% 43.40% 43.33% 43.38% 42.47% 42.47%
Net operating revenues $ 4,155.80 $ 4,310.00 $ 4,378.00 $ 4,220.00 $ 4,184.27 $ 4,096.41 $ 4,270.99 $ 4,561.90 $ 4,795.39
% Margin 59.84% 57.85% 57.45% 56.88% 56.60% 56.67% 56.62% 57.53% 57.53%
Selling, General, & Administrative $ 2,971.60 $ 3,142.00 $ 3,301.00 $ 3,338.00 $ 3,478.00 $ 3,289.20 $ 3,386.92 $ 3,481.03 $ 3,517.56
42.79% 42.17% 43.32% 44.99% 47.05% 45.50% 44.90% 43.90% 42.20%
Adjusted EBITDA $ 1,391.00 $ 1,391.00 $ 1,346.00 $ 1,165.00 $ 1,079.53 $ 1,106.87 $ 1,169.33 $ 1,237.00 $ 1,283.00
% Margin 20.03% 18.67% 17.66% 15.70% 14.60% 15.31% 15.50% 15.60% 15.39%
Less: Depreciation & Amortization $ 232.30 $ 258.00 $ 294.00 $ 302.00 $ 284.13 $ 300.43 $ 308.10 $ 336.00 $ 336.75
% Sales 3.34% 3.46% 3.86% 4.07% 3.84% 4.16% 4.08% 4.24% 4.04%
EBIT $ 1,158.70 $ 1,133.00 $ 1,052.00 $ 863.00 $ 795.40 $ 806.44 $ 861.23 $ 901.00 $ 946.25
% Margin 16.68% 15.21% 13.81% 11.63% 10.76% 11.16% 11.42% 11.36% 11.35%
Taxes $ 360.36 $ 330.84 $ 303.82 $ 242.50 $ 223.51 $ 226.61 $ 242.01 $ 253.18 $ 265.90
Tax Rate 31.10% 29.20% 28.88% 28.10% 28.10% 28.10% 28.10% 28.10% 28.10%
EBIAT $ 798.34 $ 802.16 $ 748.18 $ 620.50 $ 571.89 $ 579.83 $ 619.22 $ 647.82 $ 680.35
Plus: Depreciation & Amortization $ 232.30 $ 258.00 $ 294.00 $ 302.00 $ 284.13 $ 300.43 $ 308.10 $ 336.00 $ 336.75
Less: (Inc.)/Dec. In Net Working Capital $ 85.60 $ 153.00 $ 282.00 $ 88.00 $ 87.69 $ 85.75 $ 89.47 $ 94.05 $ 98.87
Less: Capital Expenditures $ 276.50 $ 390.00 $ 391.00 $ 416.00 $ 430.00 $ 432.75 $ 383.67 $ 340.00 $ 322.00
Unlevered Free Cash Flow $ 668.54 $ 517.16 $ 369.18 $ 418.50 $ 338.33 $ 361.76 $ 454.18 $ 549.76 $ 596.23
Present Value $ 322.58 $ 313.55 $ 357.85 $ 393.77 $ 388.22
Sum PV FCF $ 1,775.98

20. Appendix 20
Appendix: Ralph Lauren Discounted WACC Calculation
WACC Calculation
Debt
Total Debt 8.60%
Debt Adjustment Factor 1.29
Average Weighted Cost 1.90%
Tax Rate 27.75%
Tax Effected Cost of Debt 0.15%
Equity
Risk Free Rate 1.75%
Levered Beta 1.08
Expected Market Return 10.11%
Mkt Risk Premium 8.36%
CAPM 10.78%
Total Equity 91.40%
Weighted Cost of Equity 9.85%
WACC 10.00%
Source: Bloomberg
WACC Graph
Capital Structure
King Capital
91.40%
0.30%
8.30%
Equity
STD
LTD

21. Appendix
Appendix: Ralph Lauren DCFs Terminal Value and Equity Value
21
Source: Company Reports
King Capital
Terminal Value
Exit Multiple Method
Terminal Year EBITDA $1,283.00
Exit Multiple 11.0 x
Terminal Value $14,113.00
Discount Rate 10.00%
Present Value $8,761.42
Enterprise Value $10,537.41
Perpetuity Growth Method
Final Year FCF $596.23
Growth Rate 3.00%
Discount Rate 10.00%
Terminal Value $13,792.43
Present Value $8,562.41
Implied Equity Value
Enterprise Value $10,537.41
Less: Debt $1,021.00
Less: Minority Interest $0.00
Less: Preferred Equity $0.00
Plus: Cash $1,126.00
Implied Equity Value $10,642.41
Implied EV/EBITDA Multiple
Enterprise Value $10,537.41
2015A EBITDA $1,346.00
Implied EBITDA Multiple 11.0 x

22. Appendix 22
Appendix: Ralph Lauren Exit Multiple Sensitivity Analysis
Exit Multiple
Enterprise Value 9 10 11 12 13
8.00% $ 9,828.13 $ 10,701.32 $ 11,574.51 $ 12,447.69 $ 13,320.88
9.00% $ 9,429.27 $ 10,263.13 $ 11,096.99 $ 11,930.85 $ 12,764.72
WACC 10.00% $ 9,051.14 $ 9,847.78 $ 10,644.42 $ 11,441.06 $ 12,237.70
11.00% $ 8,692.47 $ 9,453.87 $ 10,215.27 $ 10,976.66 $ 11,738.06
12.00% $ 8,352.10 $ 9,080.10 $ 9,808.11 $ 10,536.12 $ 11,264.13
King Capital

23. Appendix 23
Appendix: VF Corp - Ralph Lauren Acquisition Consequences Analysis
King Capital
Accretion/Dilution
2016E 2017E 2018E 2019E
Revenues $ 20,780.98 $ 21,642.17 $ 23,352.23 $ 25,452.46
% Growth 4.14% 7.90% 8.99%
Cost of Goods Sold $ 10,035.67 $ 10,405.52 $ 11,545.72 $ 12,041.19
Manufacturing Synergies $ 166.26 $ 221.68 $ 277.10 $ 332.52
Operational Synergies $ - $ 180.13 $ 60.42 $ 110.84
Less: Post Synergy Cost of Goods Sold $ 9,869.41 $ 10,003.71 $ 11,208.20 $ 11,597.83
% Sales 47.49% 46.22% 48.00% 45.57%
Gross Profit $ 10,911.57 $ 11,638.46 $ 12,144.03 $ 13,854.63
% Margin 52.51% 53.78% 52.00% 54.43%
Selling, General, & Administrative $ 3,478.00 $ 3,289.20 $ 3,386.92 $ 3,481.03
% Sales 16.74% 15.20% 14.50% 13.68%
Adjusted EBITDA $ 3,571.09 $ 4,015.53 $ 4,413.18 $ 5,159.21
% Margin 17.18% 18.55% 18.90% 20.27%
Less: Depreciation & Amortization $ 583.93 $ 593.14 $ 563.43 $ 468.50
% Sales 2.81% 2.74% 2.41% 1.84%
EBIT $ 2,803.46 $ 3,233.75 $ 3,412.89 $ 4,690.71
% Margin 13.49% 14.94% 14.61% 18.43%
Taxable Income $ 2,862.04 $ 3,299.24 $ 3,621.00 $ 4,798.56
Effective Tax Rate 30.00% 30.00% 30.00% 30.00%
Taxes $ 841.04 $ 970.13 $ 1,023.87 $ 1,407.21
Net Income $ 2,021.00 $ 2,329.12 $ 2,597.13 $ 3,391.35
Fully Diluted Shares 599.70 599.70 599.70 599.70
Pro Forma EPS 3.37 3.88 4.33 5.66
Standalone EPS 3.46 3.90 4.20 4.98
Accretive $ -0.09 -0.02 0.13 0.68
Accretive % -2.60% -0.42% 3.11% 13.56%
NI Cushion Over BE $ (53.96) $ (9.71) $ 78.39 $ 404.84

24. Appendix 24
Appendix: VF Corp – Ralph Lauren Acquisition Consequences Analysis
King Capital
Transaction Structure (in millions except per share amounts)
Projected Offer Price $127.85
x RL Shares Outstanding $86.70
= Projected Offer Value $11,084.16
Less Cash used $500.00
Residual $10,584.16
/ Acquirer Stock Price $56.60
= Shares Issued in Transaction 187.00
% Cash 4.51%
VF Corp. shares per Ralph Lauren share 2.16
Value of VF Corp. shares per Ralph Lauren share $122.08
Cash per Ralph Lauren $5.77
Value Per Ralph Lauren share $127.85
Pre-tax Synergies to Breakdown
EPS Accretion/Dilution ($0.09)
Pro Forma Shares 599.7
After-tax synergies/Losses to Breakeven ($53.96)
Pre-tax Synergies/Losses to Breakeven ($83.01)
Enterprise Value $ 12,105.16