Fossil Group, Inc. · NASDAQ:FOSL
Fossil — Investor Presentation (September 2020)
20 slides from Fossil's investor presentation, Sep 25, 2020
Slide 1: Fossil Group Investor Presentation September 2020
FOSSIL GROUP INVESTOR PRESENTATION September 2020
Slide 2: Financial Disclosure Advisory
FINANCIAL DISCLOSURE ADVISORY 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
Slide 3: Market Opportunity: Addressable Category Size
MARKET OPPORTUNITY ADDRESSABLE CATEGORY SIZE 2019 ™ Watch: $34B Hybrid: $3B ™ Smartwatch $17B ™ Jewelry: $49B ™ Leather $42B 2023 ™ Watch: $40B Hybrid: $4B ™ Smartwatch $25B ™ Jewelry: $64B ™ Leather $52B Addressable Leather — Includes: Small leather goods (wallets, and coin purses meant to carry no
Slide 4: Strategic Priorities
STRATEGIC PRIORITES Deliver exceptional storytelling and innovation Drive commercial transformation Expand on our opportunity in China and India Continue to implement our New World Fossil 2.0 program o0 00
Slide 5: 1. Storytelling and Innovation
1. Storytelling and Innovation
Slide 6: Drive brand heat and consumer interest
Drive brand heat and consumer interest Deepen engagement with consumers Sharpen our product focus Bring great style, brands, stories and value to the marketplace
Slide 7: Connected Watches
CONNECTED WATCHES ¢ Significant Total Addressable Market and category growth ¢ Product roadmap built around a core set of brands, SKUs and channels ¢ Expanding into consumer electronics and telecom channels ¢ Introducing LTE 2H 2020
Slide 8: Traditional Watches
TRADITIONAL WATCHES Tailor assortments for key growth markets Accelerate DTC sales Drive consumer-based product development Exit sub scale distribution and markets 10
Slide 9: 2. Commercial Transformation
2. Commercial Transformation
Slide 10: Expand digital commerce and marketing capabilities
© commeRrciAL TRANSFORMATION Expand digital commerce and marketing capabilities; increase digital sales penetration * Implemented new e-commerce platform in Q1 2020 ¢ Enhancing our multi-brand omni-channel capabilities * Leveraging marketing and analytics Strengthen mix of digital and physical touch
Slide 11: Strong Growth Across Digital Channels
STRONG GROWTH ACROSS DIGITAL CHANNELS OWNED THIRD-PARTY E-COMMERCE E-COMMERCE WHOLESALE.COM *&kmacys amazon ———T i) Cfossit> MICHELE SKAGEN &zopIac SWISS MADE 1882 Dillards NORDSTROM FG Tnauw.con Station ® zalando INFRASTRUCTURE IN PLACE TO DRIVE SCALE + POWERFUL ECONOMICS 13
Slide 12: 3. Driving Growth in China and India
3. Driving Growth in China and India
Slide 13: Driving Growth in China and India
3 ] DRIVING GROWTH IN CHINA AND INDIA Emerging middle class is driving category growth ¢ Double-digit gains in 2019 * 1H2020 sales +33% in Mainland China a Proven strategy focused on localized marketing and segmented assortments Success with online marketplaces 15
Slide 14: 4. New World Fossil 2.0
4. New World Fossil 2.0
Slide 15: New World Fossil 2.0
4) NEW WORLD FOSSIL 2.0 Drive efficiency in processes and workstreams Re-engineer the supply chain Reduce costs * Total program $250M 2019-2021 * Targeted savings of $100M in 2020 7
Slide 16: More About Us...
More About Us...
Slide 17: The Leadership Team
THE LEADERSHIP TEAM Kosta Kartsotis Chairman and CEO F ° 'S S IL Jett Boye Eve, c00 4 CFO Pir imports Ke, @ Michaels sears Greg McKelvey EVP. Chief Commercial Officer m Dean. wee P BAIN ® accenture yeooes reese & COMPANY Steven Evans EVP, Chief Brand Officer eA \ VICTORIA'S IMMEQ \ SECRET Darren Har
Slide 18: Navigating 2020
NAVIGATING 2020 Acted quickly to manage for liquidity and increase financial flexibility ¢ Lowered costs across payroll, marketing, travel, professional fees, and contract labor Cut capital expenditures Reduced incoming inventory ¢ Amended credit facility * Managing timing of cash outflows through p
Slide 19: Balance Sheet and Liquidity
BALANCE SHEET AND LIQUIDITY Pe 1/4/20 12/28/19 12/28/18 Cash and cash equivalents $278M $200M $403M Total debt $269M $205M $396M Revolver availability $32.5M $120M $322M Cash flow from operations $12M $(14M) $248M
Slide 20: Key Considerations
KEY CONSIDERATIONS * Diversified business model ¢ Culture and track record of innovation ¢ Rapidly growing digital business with powerful economics ¢ New World Fossil programs are rightsizing and refocusing the business 22
Fossil Group — Investor Presentation (September 2020) on 6ix