Slide 1: Investor Presentation January 2021
INVESTOR PRESENTATION January 2021
Slide 2: Forward-Looking Statement
Some information provided in this document will be forward-looking, and accordingly, is subject to the Safe Harbor FORWARD-LOOKING provisions of the federal securities law. These statements include, but are not limited to, statements regarding potential impacts to our business related to the COVID-1
Slide 3: Content
• 2020 Highlights CONTENT • Positioned for Global Growth • ESG Commitment • Financial Outlook • Appendix 3
Slide 4: Executive Summary
Executive Summary • 4Q 2020 to exceed expectations, up ~55% to $407-$410M • Record 2020E revenue to exceed $1.38bn • 2020 revenue growth is expected to be over 12%, in line with pre-COVID guidance • Digital revenue growth for 2020 is expected to be up ~50% resulting in record digital penetration of
Slide 5: 2020 Highlights
2020 HIGHLIGHTS Source: Image from Reddit. 5 Source: Images from Instagram, Twitter.
Slide 6: Incredible Year for Crocs
2020 HIGHLIGHTS Incredible Year for Crocs • Project record revenue of ~$1,382M in 2020, increasing over 12% amidst the COVID-19 pandemic • Awarded Footwear News Achievement Awards (FNAA) 2020 Brand of the Year • Increased brand desirability, relevance and consideration by double digits for 4th conse
Slide 7: Exceptional 2020E Revenue Growth
2020 HIGHLIGHTS Exceptional 2020E Revenue Growth ~$1,382 $1,231 $1,088 $1,024 2017 2018 2019 2020E YOY (1.2%) +6.3% +13.1% > +12% Growth Note: Revenue in USD millions. 2020 figures are unaudited estimates. 7
Slide 8: Best in Class Marketing Activations: 4Q 2020
2020 HIGHLIGHTS Best in Class Marketing Activations: 4Q 2020 8
Slide 9: Accelerated Digital Growth in 2020
2020 HIGHLIGHTS Accelerated Digital Growth in 2020 • 2020E Digital revenue up ~50% with growth in all regions • Strong 2020E e-commerce growth of ~58% • Double-digit growth across multiple e-tail platforms 2020E Digital Penetration 55% 39% 39% 40% 42% 30% 28% 31% Americas Asia Pacific EMEA 2019 2020
Slide 10: Positioned for Global Growth
POSITIONED FOR GLOBAL GROWTH Four Key Powerful Social & Digital-Led Largest Long-Term Product Pillars Digital Marketing Route to Market Growth Opportunity in Asia Clogs: Innovate & grow clog Digital and social focus globally E-commerce: Double-digit plus Americas: Strong growth relevance growth cont
Slide 11: Significant Long-Term Growth Potential in Sandals
POSITIONED FOR GLOBAL GROWTH Significant Long-Term Growth Potential in Sandals • $30B global category growing ~4% p.a. − Fragmented market with no clear leader − Crocs opportunity is to grow our share • Consistent track record of growth ‒ ~18% of footwear sales in 2020 ‒ Pre-COVID, three consecutive
Slide 12: Capitalize on Personalization Trend with Jibbitz Charms
POSITIONED FOR GLOBAL GROWTH Capitalize on Personalization Trend with JibbitzTM Charms • Personalization is a global megatrend • Optimistic story-telling and personalization will be even more critical post COVID-19 • Offers newness and inspiration at a compelling price point at point of sale • Enhan
Slide 13: Digital-Led Route to Market
POSITIONED FOR GLOBAL GROWTH Digital-Led Route to Market ~42% 31% 17% 15% 11% 13% 2015 2016 2017 2018 2019 2020E E-Commerce Penetration E-Tail Penetration 4Q 2020 represented 15th consecutive quarter of double-digit e-commerce revenue growth Note: 2020 figures are unaudited estimates. Chart reflects
Slide 14: The China Opportunity
POSITIONED FOR GLOBAL GROWTH The China Opportunity Significant Whitespace • 2nd largest footwear market in the world • Underpenetrated with only ~5% of our 2019 sales in China Investing for Growth • Building brand awareness in second year with Yang Mi • Developing local-for-local marketing and colla
Slide 15: Comprehensive ESG Commitment
COMPREHENSIVE ESG COMMITMENT Environment Social Governance • Sustainable Ingredients • Human Capital • Board and Management • Resource Use • Social Capital • Business Ethics / Risk Management • Packaging • Community Involvement / Crocs Cares • Accounting Practices / Internal • End of Life Controls W
Slide 16: Financial Outlook
FINANCIAL OUTLOOK 16
Slide 17: 2020: A Very Successful Year
FINANCIAL OUTLOOK 2020: A Very Successful Year • Robust revenue growth (>12%) • Improved quality of revenues ‒ Fewer discounts and promotions • Expanded margins ‒ Higher prices ‒ Fewer discounts and promotions ‒ Favorable product mix ‒ Leveraged SG&A, while supporting growth • Invested to support fu
Slide 18: 2021 Reporting Changes
FINANCIAL OUTLOOK 2021 Reporting Changes • To reflect the importance of Direct to Consumer (DTC), we will report two channels – DTC and Wholesale ‒ Combining Retail and E-Com channels into a new DTC channel ‒ Reporting DTC Revenue and DTC Comp only ‒ Continuing to report Digital as a % Revenue • Rep
Slide 19: 2021 Outlook
FINANCIAL OUTLOOK 2021 Outlook Revenue Assuming no impact of future COVID-related ~$1,730 shutdowns in major markets, we expect: ~$1,660 • Accelerated full year 2021 revenue growth of ~$1,382 ~20-25% over 2020 $1,231 • Ability to leverage SG&A while continuing to $1,088 invest to support sustainable
Slide 20: Key Investment Highlights
Key Investment Highlights • Leading Global Footwear Brand Anchored by Iconic Product with Democratic Appeal • Market Leader in Clog Category with Significant Whitespace in Sandals and Personalization • Accelerating Our Industry Leading Digital Penetration • Global Footprint with Opportunity to Grow
Slide 21: Q&A
Q&A 21
Slide 22: Appendix
APPENDIX 22
Slide 23: Select ESG Data
Select ESG Data Environment Social Governance • Joined Sustainable Apparel Coalition (SAC) • Diverse workforce with diversity recruiting strategy • Remains an area of strength evidenced by ISS − Female: 52% Management / 68% All Other and MSCI rankings • Exploring environmentally-friendly raw materia
Slide 24: 2020 Q3 YTD Financial Results
FINANCIAL RESULTS 2020 Q3 YTD Financial Results Q3 YTD vs. PY Revenue $974.4 +1.9%* Gross Margin 53.5% +280 bp Adj. Gross Margin** 54.0% +240 bp Adj. SG&A as % of Revenue** 36.0% +210 bp Adj. Operating Margin** 18.0% +450 bp Diluted EPS $1.89 +37% Adj. Diluted EPS** $2.17 +44% * Revenue growth on a
Slide 25: Q3 2020 Non-GAAP Reconciliation
Q3 2020 NON-GAAP RECONCILIATION Non-GAAP cost of sales, gross profit, and gross margin reconciliation: Non-GAAP selling, general and administrative expenses reconciliation: Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 3
Slide 26: Q3 2020 Non-GAAP Reconciliation (cont'd)
Q3 2020 NON-GAAP RECONCILIATION (cont’d) Non-GAAP income from operations and operating margin reconciliation: Non-GAAP earnings per share reconciliation: Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2
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