Clarus Corporation · NASDAQ:CLAR
Clarus — Black Diamond — IPO Roadshow (February 2012)
29 slides from Clarus's IPO roadshow presentation, Feb 15, 2012
Slide 1: Black Diamond, Inc. Roadshow February 2012
°C Black Diamond. inc. ROADSHOW February 2012 NASDAQ | BDE
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS Please note that in this presentation we may use words such as “appears,” “anticipates,” believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private
Slide 3: Powerful Combination: May 2010
POWERFUL COMBINATION: MAY 2010 « Black Diamond, inc. Instituted highly experienced Board of Directors Developed and implemented 5-year strategic pian ‘+ Integrated Gregory with all objectives achieved ‘+ Generated consistent double-digit quarterly growth ¢ Black Diamond ‘+ One of the most pristine a
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS « Authentic Portfolio of Iconic Lifestyle Brands ¢ Industry Leading Product Innovation and Development Capabilities ¢ Broad Product, Channel and Geographic Diversification ¢ Scalable Global Operating Platform ¢ Significant Growth Opportunities « Experienced and Incentivized Man
Slide 5: Armor Holdings Case Study
ARMOR HOLDINGS CASE STUDY Background & Overview Financial Highlights “ + Industry characteristics ‘oul ‘puoWDIG 4OD/q » Sales eu + Favorable market trends (Sn miltons) sor + Highly fragmented + Under the leadership of Warren 1 Kanders and Rob Schiller, Armor =”, S'S) ys completed in excess of 30 sor
Slide 6: Highly Favorable Market Opportunity
HIGHLY FAVORABLE MARKET OPPORTUNITY Outdoor Sector Highlights + Large and Growing Global Industry with Numerous Favorable Trends + Heatthiweliness and environmentalism embodied in active outdoor lifestyle + Penchant for travel and outdoor exploration, particularly among baby-boomers + U.S. outdoor p
Slide 7: Who We Are...
WHO WE ARE... + Leading global designer and manufacturer of innovative active outdoor performance products. + Double digit top-line growth at Black Diamond Equipment since 1990 VISION: CONSTRUCT: To be one with the sports we serve, absolutely Passion and Intimacy ~ gets us up in the morning indistin
Slide 8: Our Culture Defines Our Products and Iconic Brands
OUR CULTURE DEFINES OUR PRODUCTS AND ICONIC BRANDS Company of Passionate Users High Performance Products ‘+ Our employees are our most ‘+ Our brands and products are discerning customers and demand synonymous with performance, the most innovative, consistent innovation, durability and safety product
Slide 9: Industry Leading Product Innovation and Development Capabilities
INDUSTRY LEADING PRODUCT INNOVATION AND DEVELOPMENT CAPABILITIES QO 2 + Legacy of redefining the categories in fe, which we enter U + Strong track record of technical innovation a and production development 3 * Portfolio of over 70 patents (*) g ¢ Product development strives to elevate Q personal pe
Slide 10: Diversified Business Model
DIVERSIFIED BUSINESS MODEL + Broad distribution platform across multiple channels + ~4,700 retail doors globally + Focused on specialty retail stores including + No specific + Significant global» Seasonal REI, Mountain product category presence - in diversification of Equipment Co- accounts for more
Slide 11: Scalable Global Operating Platform
SCALABLE GLOBAL OPERATING PLATFORM SALT LAKE CITY, UT + Headquarters, sales & marketing, manufacturing & distribution center 300+ employees BASEL, SWITZERLAND les & marketing, distribution puowniq 4901q 4) CALEXICO, CA distribution 165+ employees ‘our employees T veatoaiing Peaicion i Dsttaton © Sat
Slide 12: Incentivized and Experienced Management
INCENTIVIZED AND EXPERIENCED MANAGEMENT TEAM AND BOARD OF DIRECTORS Management Team Board of Directors otra wp _CoFounis Back Daren? Equpner 1689 Waren B.Kandere G President and CEO Pioneer Alaskan alpinist Executive Chairman a Ren Peay flee pert a ble accounting with Arthur An 3 Than eter Tp Enlonn
Slide 13: Growth Opportunities
GROWTH OPPORTUNITIES ‘+ Opportunity to grow with key retail partners including Service and Grow REI, EMS, MEC and Backcountry.com ECU OILCSGUS 6 Build existing and new relationships through multiple corporate initiatives Rak tam + Continued double-digit growth driven by future Technologies product i
Slide 14: Leverage Retail Sector Growth
LEVERAGE RETAIL SECTOR GROWTH + Outdoor specialty retailers have shown considerable growth in recent years + Recreational Equipment, Inc. (REI), our largest customer, has increased its store count by 60% in the last 5 years (?) + 39,000 sq. ft. REI SoHo opened in December 2011; first NYC location +
Slide 15: Introduce New Product Technologies
INTRODUCE NEW PRODUCT TECHNOLOGIES # Continue to redefine the categories through which we ane Magnetron: Uses the power of magnetic fields to reinvent the locking carabiner + Seek out opportunities that meet a specific technical need of our passionate consumer base Commerce Utiizes a bul in heater t
Slide 16: Our Apparel Initiative
OUR APPAREL INITIATIVE + First apparel line launch expected in Fall 2013 + Significant recent hires to meet timing objective + Partnering with specialty retail to fill a void in the marketplace + Leverage intimate understanding of fit, performance, style and aesthetics + History and experience in in
Slide 17: Broaden Distribution and Elevate Brand
BROADEN DISTRIBUTION AND ELEVATE BRAND + European market highly a fragmented with no clear o cross-border leader . x é ry ¢ Significant opportunity to * g elevate the brand across the Q continent through investments 3 in marketing and } merchandising 3 © BD locations a + Asian consumers rapidly GbSO
Slide 18: Pursue Selected Outdoor Acquisitions
PURSUE SELECTED OUTDOOR ACQUISITIONS term opportunities ¢ Acquiror of choice Target Tuck-In/Growth Acquisition Parameters A + Authentic and iconic - to fearcineienel + Revenues $25-50 million U + Global operating platform Gross margin accretive = with universal application 2 Mec ees + Highly technic
Slide 19: Gregory Mountain Products Case Study
GREGORY MOUNTAIN PRODUCTS CASE STUDY » a Background & Investment Rationale Financial Highlights [f) La + In May 2010, Black Diamond, Inc. acquired Gregory ¢ ‘Transaction Value: $44.2 0 Mountain Products, Inc. ("GMP") for $44.2 million in million ¥ Q GeneMeess + 2010 Sales: 27.8mm ‘+ GMP was popular
Slide 20: Building a $500 Million Business
BUILDING A $500 MILLION BUSINESS Growth Plan Targets (8 in millions) * Over 50% potential organic growth through execution of base business strategy + Acquisitions expected to contribute $250 million to top- line sales by 2015 go 2 ir) x Q 3 3 ° s a 3 + Apparel expected to contribute more than $250
Slide 21: Historical Financial Performance
HISTORICAL FINANCIAL PERFORMANCE > Pro Forma Sales () Adj. EBITDA o (Sinmiions) tt, (Sin mions) A Sera saa | x om Q 120m soo 3 $0.5 ° s sia a a Ltmars0111
Slide 22: Operating Margins Poised for Growth
OPERATING MARGINS PO asia tiicant investments inoug LTM Adjusted EBITDA Margin vs. Select Peers global operating platform and R&D 20.0% Leverage these investments as sales a grow + Shift of sales mix to higher margin products 10.0% Technical apparel + Future synergy opportunities 50% Consolidated su
Slide 23: Pro Forma Sales Quarter/Quarter
PRO FORMA SALES QUARTER/QUARTER “) 2 ir) $42.0M LS g $39.1M a >$36.0M J $34.2M ° SoriM $33.9M 3 97% 13.6% $29.6M Hs) sey $30.1M 2 $28.3M 3 | = y-- 7™ ai a2 a3 Qa m 2009 mm 2010” 2011 % - Denotes Y-0-Y Growth ‘See Append recone of Sales Pre Forma Sah 2. Zina ga frma assuming he ecguton of Bac Daman E
Slide 24: Balance Sheet Supports Growth
BALANCE SHEET SUPPORTS GROWTH a + Growth-oriented balance sheet Pro Forma Capitalization ( 8 + Strong cash balance Glatt) ee bar vom ae + Revolver capacity of $10.1 a llinanGl Seer Cath and Cash Equivalents 317 os g + Self-funded growth historically with °°" Crest Facity ca ve gs original investment
Slide 25: NOL Summary
NOL SUMMARY + Net Operating Losses of $225.8 million as of December 31, 2010 + $69.5 million deferred net tax asset as of December 31, 2010 ¢ $214 million of NOL’s do not expire until 2020 and beyond # Rights Agreement limiting the number of 5% stockholders NOL Expiration Schedule 3 115 $120 (Sin mi
Slide 26: Guidance and Long-Term Targets
GUIDANCE AND LONG-TERM TARGETS ir) 2011 & 2012 Guidance Long-Term Targets x Q4 2011 Revenue > $36 million Total Revenue ~$500 million by 2015, G = YOY Growth > 6% Q Revenue Growth Comprised of: 3 2011 Revenue > $145 million ~ Organic Growth $125 million gs ~ YOY Growth > 16% - Acquisitions $250 mill
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS ¢ Authentic Portfolio of Iconic Lifestyle Brands # Industry Leading Product Innovation and Development Capabilities ¢ Broad Product, Channel and Geographic Diversification ¢ Scalable Global Operating Platform ul puowDIq 401g ¢) ¢ Significant Growth Opportunities ¢ Experienced a
Slide 28: Appendix: Adjusted EBITDA Reconciliation
APPENDIX: ADJUSTED EBITDA RECONCILIATION Net Income (Loss) Income Tax Provision (Benefit) ther, Net Interest income Interest Expense Operating Income Depreciation Amortization EBITDA Restuctring Charge Merger and Integration Transaction Costs Non-Cash Expense of Inventory Step-Up Non-Cash Equity Com
Slide 29: Appendix: Pro Forma Sales Reconciliation
APPENDIX: PRO FORMA SALES RECONCILIATION 1313112009 6/30/2009 _ 9/30/2008 12/31/2009 3/31/2010 6/30/2010 _ 9/30/2010 12/31/2010, g 2 ir) x Q 5 3 ° s a 3 Revenues as Reported 30 $0 30 $0 80 $7,744 $33,946 $94,222 Revenues for Predecessor __20788 15219 25.555 26.583 23.657, _11,286 o © Combined Revenu