Fossil Group, Inc. · NASDAQ:FOSL

Fossil — Investor Presentation (March 2013)

36 slides from Fossil's investor presentation, Mar 12, 2013

  1. Slide 1: [LOGO]

    [LOGO]

  2. Slide 2: Safe Harbor

    SAFE HARBOR 2 Certain statements contained herein that are not historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. The actual results of the future events described in suc

  3. Slide 3: Why Fossil?

    WHY FOSSIL? Proven track record of consistent growth Powerful global brands – proprietary and licensed Advantageous business model with high margins Significant growth opportunities Expansion in infrastructure supports long term growth Strong balance sheet and cash flow 3 3/12/13

  4. Slide 4: Sustained Growth

    2009 2010 2011 2012 2013 10 Year CAGR 14.0% 14.9% 16.8% 15.7% 15.0% 5 Year CAGR 10.1% 14.3% 16.2% 14.8% 14.8% $1.55B $2.03B $2.57B * Consensus estimate as of 3-6-2013 SUSTAINED GROWTH 3/12/13

  5. Slide 5: Global Diversity

    GLOBAL DIVERSITY Europe 31% Americas 53% Asia 16% 5 3/12/13

  6. Slide 6: Brand Building

    BRAND BUILDING We build world-class brands. 6 3/12/13

  7. Slide 7: Our Business Model

    OUR BUSINESS MODEL Ep WATCH PORTFOLIO »*« SKAGEN

  8. Slide 8: Fossil is an American lifestyle brand

    FOSSIL IS AN AMERICAN LIFESTYLE BRAND, CREATIVELY ROOTED IN AUTHENTIC VINTAGE AND CLASSIC DESIGN.

  9. Slide 9: Brand of the Year: Fossil

    BRAND OF THE YEAR: FOSSIL “Although perhaps best known for its timepieces, Fossil generates significant revenues in jewelry and leather goods as well.” 9 3/12/13

  10. Slide 10: Graphic Design USA recognizes Fossil design

    9 3/12/13 GRAPHIC DESIGN USA RECONGIZES FOSSIL DESIGN AS ONE OF MOST INFLUENTIAL IN LAST 50 YEARS. 1. Target 2. Apple 3. CBS 4. IBM 5. Starbucks 6. Herman Miller 7. Adobe 8. Nike 9. Disney 10. Fossil

  11. Slide 11: The Fossil Brand

    THE FOSSIL BRAND 10 $377M $782M $954M $1.14B $1.14B $788M $702M $618M $561M $527M 3/12/13

  12. Slide 12: The Fossil Brand

    THE FOSSIL BRAND 11 North America 54% Europe 36% Asia 10% 3/12/13

  13. Slide 13: The Fossil Brand

    Sense of Optimism Appreciation of Authenticity Passion for Creativity Love of Community THE FOSSIL BRAND 12 3/12/13

  14. Slide 14: 13 3/12/13

    13 3/12/13

  15. Slide 15: Fossil Retail

    FOSSIL RETAIL Accessory Outlet Clothing 33 85 218 191 79 33 31 87 230 36 92 245 33 122 251 14 3/12/13

  16. Slide 16: Fossil Retail

    FOSSIL RETAIL 15 3/12/13

  17. Slide 17: Fossil Accessory Stores

    FOSSIL ACCESSORY STORES 16 North America 48% Europe 38% Asia 14% Americas Europe Avg Size - SF 1,550 1,300 Avg Sales - PSF $780 $735 Avg Build Out $555K $530K Asia 1,100 $1,000 $320K 3/12/13

  18. Slide 18: Fossil Outlet Stores

    FOSSIL OUTLET STORES 17 North America 77% Europe 14% Asia 9% Americas Europe Avg Size - SF 2,775 1,850 Avg Sales - PSF $930 $1,115 Avg Build Out $485K $540K Asia 1,200 $1,275 $265K 3/12/13

  19. Slide 19: 18 3/12/13

    18 3/12/13

  20. Slide 20: 19

    19

  21. Slide 21: Watch Portfolio

    WATCH PORTFOLIO Distinctive Lifestyle Portfolio Global Platform Increasing Market Share World-Class Supply Chain 20 3/12/13

  22. Slide 22: Watch Portfolio

    WATCH PORTFOLIO 20 3/12/13

  23. Slide 23: Watch Portfolio

    WATCH PORTFOLIO 21 $1.02B $1.42B $1.84B $1.06B $963M $793M $693M $656M $2.14B $540M 3/12/13

  24. Slide 24: Watch Station

    WATCH STATION Total Stores – 46 Outlet – 35 Full-Price – 11 22 3/12/13

  25. Slide 25: Asia Concession Opportunity

    ASIA CONCESSION OPPORTUNITY Total Concessions – 270 Multi-brand – 227 Fossil – 30 Mono-brand – 13 23 3/12/13

  26. Slide 26: Population Growth – 2030

    POPULATION GROWTH – 2030 * Source: The Brookings Institution 24 3/12/13

  27. Slide 27: Swiss Opportunity

    SWISS OPPORTUNITY SWISS FASHION MASS PRICE 25 3/12/13

  28. Slide 28: Swiss Opportunity

    SWISS OPPORTUNITY SWISS LIFESTYLE BRAND WATCHES MASS PRICE SWISS MECHANICAL 26 3/12/13

  29. Slide 29: a ae

    os 8 a ae ISTINCTIVE BASIC ana (rossit)

  30. Slide 30: Financials

    Financials 28 3/12/13

  31. Slide 31: Sustained Growth

    SUSTAINED GROWTH 29 2008 2009 2010 2011 2012 53.8 54.6 56.9 56.1 56.2 Gross Margin % 2008 2009 2010 2011 2012 13.0 13.7 18.6 18.4 17.1 Operating Margin % Gross Profit ($ in Millions) Operating Income ($ in Millions) 2008 2009 2010 2011 2012 17.8 16.2 25.0 28.0 29.9 Return on Equity % 3/12/13

  32. Slide 32: Long-Term Opportunities

    Leverage strategic investments Mix shift to higher-margin regions (Asia impact) Direct channel growth and productivity Effective use of capital Ongoing stock buyback LONG-TERM OPPORTUNITIES 30 3/12/13

  33. Slide 33: Americas Growth Opportunities

    Leverage leadership position in wholesale channel by growing newer businesses Expand retail store footprint “Ownership” opportunities in Latin America AMERICAS GROWTH OPPORTUNITIES 31 3/12/13

  34. Slide 34: Europe Growth Opportunities

    EUROPE GROWTH OPPORTUNITIES Expand under-penetrated Markets Brands/categories Expand retail store footprint “Ownership” opportunities in distributor markets 32 3/12/13

  35. Slide 35: Asia Growth Opportunities

    Focus on “game-changing” markets (China, Japan, Korea, India) Fossil flagship locations as brand builders Use the power of the watch portfolio to expand concessions Leverage ongoing strategic investments ASIA GROWTH OPPORTUNITIES 33 3/12/13

  36. Slide 36: Thanks for stopping by!

    THANKS for stopping by!

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