Fossil Group, Inc. · NASDAQ:FOSL

Fossil — Investor Presentation (January 2008)

47 slides from Fossil's investor presentation, Jan 15, 2008

  1. Slide 1: [LOGO]

    [LOGO]

  2. Slide 2: Company Highlights

    Company Highlights • Global accessory leader • Globally recognized brand portfolio • High margin business • Fossil brand strength • Growing and profitable retail segment • Solid operating results and cash flow

  3. Slide 3: Design & Execution Core Strengths

    DESIGN & EXECUTION Core Strengths

  4. Slide 4: World Class Design

    World Class Design

  5. Slide 5: World Class Execution

    World Class Execution

  6. Slide 6: Watches: Our Model

    WATCHES Our Model

  7. Slide 7: [LOGO]

    [LOGO]

  8. Slide 8: Zodiac for the Deco Collection

    @zopiac FOR THE DECO COLLECTION

  9. Slide 9: [LOGO]

    [LOGO]

  10. Slide 10: Licensed brands: Marc Jacobs, DKNY, Burberry, Diesel, Michael Kors

    A\Y MARC JACOBS DKNY BURBERRY DONNA KARAN NEWYORK DIESEL MICHAEL MICHAEL KORS

  11. Slide 11: Watches Accessories

    WATCHES ACCESSORIES

  12. Slide 12: [LOGO]

    [LOGO]

  13. Slide 13: [LOGO]

    [LOGO]

  14. Slide 14: Jewelry Watches Accessories

    JEWELRY WATCHES ACCESSORIES

  15. Slide 15: [LOGO]

    [LOGO]

  16. Slide 16: Fossil Direct: Jewelry Watches Accessories

    FOSSIL DIRECT JEWELRY WATCHES ACCESSORIES

  17. Slide 17: Financial Projections 2012

    Financial Projections 2012 69.2M 68.8M Shares Outstanding $3.82 $1.13 Diluted E.P.S. 10.5% 6.4% NI Margin 22.5% 264 78 Net Income 16.9% 10.2% OI Margin 23.0% 425 123 Operating Income 54.2% 50.2% GP Margin 14.3% 1,360 609 Gross Profit 12.9% 2,510 1,214 Net Sales CAGR 2012 2006 ($ in millions except s

  18. Slide 18: Major Opportunities

    3 Major Opportunities • Fossil Brand • Fossil Direct • International Platform

  19. Slide 19: Brand Repositioning

    Brand Repositioning X( Nit

  20. Slide 20: Fossil Sales 2006 to 2012

    2006 2012 $ 614 Million $ 1.4 Billion Fossil Sales

  21. Slide 21: Fossil Direct Stores, Web, Catalog

    • Direct distribution for core businesses • Strong financial metrics • Excellent use of capital • Global footprint – early mover advantage • Accelerates global brand communication Fossil Direct Stores – Web - Catalog

  22. Slide 22: Fossil Direct Stores Growth by Concept

    2002 2003 2004 2005 2006 Accessory Apparel Outlet Fossil Direct Stores Growth by Concept 104 119 136 171 198 Total Doors

  23. Slide 23: Global Stores 2007 and 2012

    Global Stores 700 2012 246 2007

  24. Slide 24: Fossil Direct Accessory Stores

    • Strong 4 wall metrics • High ROI • Positive Comps • Scalable Fossil Direct Accessory Stores Non-Watch 42% Watch 58%

  25. Slide 25: [LOGO]

    [LOGO]

  26. Slide 26: [LOGO]

    [LOGO]

  27. Slide 27: [LOGO]

    [LOGO]

  28. Slide 28: Northpark, Dallas

    Northpark, Dallas

  29. Slide 29: Hollywood, California

    Hollywood, California

  30. Slide 30: Citrus Park, Florida

    Citrus Park, Florida

  31. Slide 31: Berlin, Germany

    Berlin, Germany

  32. Slide 32: Leipzig, Germany

    Leipzig, Germany

  33. Slide 33: Birmingham, UK

    Birmingham, UK

  34. Slide 34: Wolfsburg, Germany

    a “ FOSSIL wi ee Wolfsburg, Germany

  35. Slide 35: Linz, Austria

    Linz, Austria

  36. Slide 36: Venetian, Macau

    Venetian, Macau

  37. Slide 37: Heeren, Singapore

    Heeren, Singapore

  38. Slide 38: WWW.FOSSIL.COM web traffic

    +700 Million Impressions +1.8 Million Visitors / Month +1.0 Million Opt-In Email Addresses WWW.FOSSIL.COM

  39. Slide 39: Catalogs

    CATALOGS 2006: 4.6 Million Circulation 2007: 7.0 Million Circulation 700K Name House File

  40. Slide 40: Global Presence

    Global Presence Fossil offices Regional distribution locations

  41. Slide 41: Financial Summary

    Financial Summary

  42. Slide 42: Historical Net Sales Growth

    2002 2003 2004 2005 2006 US Wholesale Intl Wholesale Direct Net Sales Growth ($ in Millions) $1,043 $1,214 $957 $781 $663 17.4 15.7 18.0 20.7 5 Year 19.4 19.1 19.4 22.2 10 Year 2006 2005 2004 2003 CAGR % Increase 27.6 20.0 38.5 25.3 Direct 20.1 6.2 26.9 34.4 Intl Wholesale 7.5 7.9 13.2 3.0 US Wholes

  43. Slide 43: Historical Growth: Gross Profit and Operating Income

    $334 $398 $503 $535 $609 2002 2003 2004 2005 2006 $95 $106 $131 $109 $123 2002 2003 2004 2005 2006 Historical Growth Gross Profit and Operating Income Gross Profit ($ in Millions) Operating Income ($ in Millions) 50.2 51.3 52.5 51.0 50.4 2006 2005 2004 2003 2002 Gross Profit Margin % 2006 2005 2004

  44. Slide 44: Current Performance Year-To-Date

    Current Performance Year-To-Date Net Sales ($ in Millions) 17.8% Gross Profit ($ in Millions) Op Income ($ in Millions) 20.9% $1.67 FY ’07 Guidance $1.00 Q3 YTD ‘07 $0.62 Q3 YTD ‘06 Diluted E.P.S. 57.4% 10.7% 8.1% Operating Income 50.9% 49.6% Gross Profit Q3 YTD ‘07 Q3 YTD ’06 Margin 2006 $823.1 200

  45. Slide 45: Current Performance Diluted EPS Proforma

    Current Performance Diluted E.P.S – Proforma $1.12 $0.12 - $1.00 2007 $0.57 Adjusted Diluted E.P.S - • Option review costs <$0.05> - • Q1 ’06 Additional week Proforma Adjustments: $0.62 Year-to-date through Q3 2006

  46. Slide 46: Current Performance Selected Financial Information

    24 24 $0.64 45 708 12 266 203 185 YTD Q3 2007 40 24 $0.4 30 560 55 270 169 69 YTD Q3 2006 51 32 $2.16 148 602 11 228 155 140 2006 53 Capital expenditures 27 Depreciation and amortization expense $0.48 Cash flow / share 35 Cash flow from operations 526 Stockholders’ equity 9 Short-term debt 241 Inven

  47. Slide 47: Thanks For Stopping By!

    THANKS For Stopping By!

Fossil — Investor Presentation (January 2008) on 6ix