Crocs, Inc. · NASDAQ:CROX
Crocs — Investor Presentation (January 2013)
29 slides from Crocs's investor presentation, Jan 15, 2013
Slide 1: Investor Presentation
Mm JANUARY — 2012 i | INVESTOR PRESENTATION
Slide 2: Regarding Forward-Looking Statements
Regarding Forward-Looking Statements
Slide 3: Investment Highlights
Investment Highlights • Global Multi Channel Casual Lifestyle Footwear Brand • Focus on the Consumer • Balanced, International Long-Term Sales Growth • Strong Balance Sheet • Strong Free Cash Flow • Rewarding Investors Through Reinvestment of Cash
Slide 4: Fourth Quarter Update
Fourth Quarter Update
Slide 5: Key Observations on Q4 2012
• Revenue expected to be in line with previous guidance of $220mm • Difficult holiday retail sales environment similar to other brands / retailers • New products were well accepted in most markets • Global opportunities and challenges remain • Backlog for first half is estimated to be up 15% on a no
Slide 6: Strong Quarterly and YOY Revenue Growth
Strong Quarterly and YOY Revenue Growth First Half growth of 16%, Second half growth of 8% 2012 Revenue Growth of Approximately 12% On a Constant Currency Basis – Annualized Growth of Approximately 15% * Based on October 24, 2012 Q412 revenue guidance of $220mm
Slide 7: Long-Term Revenue Growth
Slide 8: Long-Term Organic Growth Drivers
Long-Term Organic Growth Drivers • Product-Driven • New Consumers • Multi-Channel, Global Business Model • Wholesale Channel Expansion
Slide 9: Global Sustained Revenue Growth
Global Sustained Revenue Growth 2012E* CAGR Asia Wholesale $ $ $ 14% Retail Internet Total Europe Wholesale $ $ $ 5% Retail Internet Total Americas Wholesale $ $ $ 9% Retail Internet Total Global Long-Term Multi Channel Growth Asia: 17% Europe: 9% Americas: 9% * Based on October 24, 2012 Q412 revenu
Slide 10: Expanding Product Line
Expanding Product Line
Slide 11: Stylish and Colorful
Stylish and Colorful
Slide 12: Product Road Map – All Year Growth
Product Road Map – All Year Growth
Slide 13: Product Stories – Compelling Line up of All Season Products
Product Stories – Compelling Line up of All Season Products Launched Year-Round
Slide 14: ecrocs, beach line, huarache
ecrocs’ get crocs inside beach line huarache
Slide 15: Product Stories – FH13
Easy on | off Lightw eight Purpose Built Stylish Product Stories – FH13 Crocband Boot Airy Flat
Slide 16: Marketing
Marketing
Slide 17: Engaging New Consumers
Engaging New Consumers • Emerging Lifestyle Brand - Engage New Consumers - Innovative Products - Retain Crocs loyalists • Multi-Channel Approach of print /outdoor /social media Consumer Marketing Investment will Increase Going Forward Expanding Consumer Awareness is Key to Crocs Strategy
Slide 18: Engaging New Consumers
Engaging New Consumers Multi-Channel Global Message Around Lifestyle Imaging Fun, Cool, Colorful, Casual, Comfort
Slide 19: Key Future Financial Events
Slide 20: 2013 SAP Investment
• SAP Implementation through 2013 - $0.04 per share FY 2013 impact due to accelerated depreciation - $0.04 - $0.06 per share FY 2013 impact due to increased op ex • Expected launch in 1H 2014 2013 SAP Investment * SAP expenses are excluded from normalized operating income results Total FY 2013 SAP I
Slide 21: Capital Allocation – Credit Agreement
Credit Agreement – Key Terms Capital Allocation – Credit Agreement • Renegotiated credit agreement in December 2012 • Credit line increased to $100mm • Up to $50mm per quarter – $150mm per year - can now be used towards share repurchases
Slide 22: Capital Allocation – Share Repurchase
Share Repurchase *Share repurchase totals are as of market close December 31, 2012 Capital Allocation – Share Repurchase • Since November 2012, approximately 1.9 million shares have been repurchased at an average price of $13.25 - ~$25.0mm* • Shares are being repurchased under the Share Repurchase a
Slide 23: 2013 Planned Retail Store Growth
2013 Planned Retail Store Growth 2013 Global Retail Store Growth of Approximately 70 - 95 Net Stores Estimated 600 - 625 Retail Locations Globally by YE 2013
Slide 24: New Retail Investment Metrics
Avg Store Size – US Avg Store Size - Asia 1500 – 1800 sqft 650 – 1500 sqft New Retail Investment Metrics • Location, Location, Location • Focus on High Traffic, Outlet Locations Avg. Store Cost – US Avg. Store Cost – Asia $240K $140K Avg. Store Sales Operating Income (OI) $750K-$800K >20% ROI Paybac
Slide 25: First Half Drivers – Building on A Solid Base
• Engaging with the Consumer through Core and New Innovative Products • Growing Wholesale with Key Partners • Retail and Internet Expansion to Connect with Core and New Consumers • Focus on Retail Excellence • Increased Investment in Marketing • Creating Leverage First Half Drivers – Building on A S
Slide 26: Back Half Drivers – A Slow Methodical Journey
• Benefit from our Global Footprint • Growing our Back to School Business in US Market, Licensing Products, Fall and Winter Products • Increased Marketing of New, Comfortable Products • Expansion into Contraseasonal Markets – Latin / South America, Middle East, Asia Pacific • Managing Fixed Costs Ba
Slide 27: Investment Summary
Slide 28: Investment Summary
Investment Summary • Global Multi Channel Casual Lifestyle Footwear Brand • Focus on the Consumer • Balanced, International Long-Term Sales Growth • Strong Balance Sheet • Strong Free Cash Flow • Rewarding Investors Through Reinvestment of Cash
Slide 29: Thank You
Thank You