Slide 1: Creating a Leader in Global Casual Footwear
+ CREATING A LEADER IN GLOBAL CASUAL FOOTWEAR DECEMBER 2021 | Confidential
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This document includes estimates, projections, and statements relating to our plans, commitments, objectives, and expectations that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Ac
Slide 3: Strategic Rationale
STRATEGIC RATIONALE | Confidential
Slide 4: Strategic Rationale
STRATEGIC RATIONALE • Creates a global, scaled leader in branded casual footwear • Combines two fast-growing footwear brands and more than quadruples total addressable market to more than $160bn* • Diversifies product portfolio from single-brand to multi-brand • Builds upon Crocs’ already high digit
Slide 5: Creates Global, Scaled Leader in Branded Casual Footwear
CREATES GLOBAL, SCALED LEADER IN BRANDED CASUAL FOOTWEAR ($ in bn) Pro Forma 2022E Revenue* 8.0 6.0 4.0 2.0 0.0 Skechers C+HD Deckers Wolverine Crocs Steve Madden Dr. Martens HEYDUDE Allbirds + * FactSet consensus estimates for competitors as of 12/16/2021. Crocs based on midpoint of 2021 revenue gu
Slide 6: Adds Fast-Growing, Scale Brand in Casual Footwear
ADDS FAST-GROWING, SCALE BRAND IN CASUAL FOOTWEAR Significant Positions in ~$305B Casual Footwear Market Clogs Casual Sandals ~$8B* ~$125B* ~$30B* * Total addressable market sizes based on management estimates. 6
Slide 7: Diversifies Product Portfolio from Single-Brand to Multi-Brand
DIVERSIFIES PRODUCT PORTFOLIO FROM SINGLE-BRAND TO MULTI-BRAND Pro Forma 2021E Other Other 7% Jibbitz 5% Jibbitz 5% 6% Sandal 13% Sandal 16% + * Clog 57% Casual Footwear Clog 20% 71% * Crocs PF 2021 applies LTM Q2 2021 product mix to midpoint of 2021E revenue guidance. This guidance is not being upd
Slide 8: Builds Upon Crocs' Already High Digital Penetration
BUILDS UPON CROCS’ ALREADY HIGH DIGITAL PENETRATION Pro Forma 2021E Digital Digital 37% 43% Digital 38% * * + * * Crocs PF 2021 applies Crocs LTM 9/30/2021, and HEYDUDE LTM 10/31/2021 channel mix to midpoint of 2021E revenue guidance. This guidance is not being updated or reaffirmed hereby. 8
Slide 9: Ideal Fit with Crocs and Long-Term Consumer Trends
IDEAL FIT WITH CROCS AND LONG-TERM CONSUMER TRENDS CASUALIZATION COMFORT-LED SUSTAINABILITY PERSONALIZATION FUNCTIONALITY Versatile silhouette with many wearing occasions 9
Slide 10: Opportunity to Leverage Crocs' Proven Global Playbook
OPPORTUNITY TO LEVERAGE CROCS’ PROVEN GLOBAL PLAYBOOK GLOBAL MARKETING WHOLESALE FOOTPRINT EXPERTISE RELATIONSHIPS <5%/32% ~20%/92% 30% HEYDUDE vs. Crocs HEYDUDE vs. Crocs HEYDUDE Account Overlap Non-US Revenues* Brand Awareness** with Crocs Top 20 B&M WHL * Crocs based on LTM 9/30/2021 sales mix, H
Slide 11: Accretive to Crocs' Industry-Leading Growth and Margins
ACCRETIVE TO CROCS’ INDUSTRY- LEADING GROWTH AND MARGINS Long-Term Revenue Growth* 17%+ 20%+ Long-Term Adjusted ~26%+ ~26%+ Operating Margin* Immediately accretive to Crocs EPS • Crocs long-term guidance provided here is on a pre-acquisition standalone basis, as provided on September 14, 2021. Long
Slide 12: Building HEYDUDE to $1bn+ by 2024
BUILDING HEYDUDE TO $1BN+ BY 2024 • Invest in industry-leading marketing to build brand awareness • Enhance digital capabilities to further accelerate digital • Leverage Crocs strong wholesale relationships to enhance distribution • Leverage Crocs distribution for global growth • Invest to scale sup
Slide 13: Integration Plan for HEYDUDE
INTEGRATION PLAN FOR HEYDUDE • Continue innovative product development, led by HEYDUDE founder, Alessandro Rosano, who will stay on as a Strategic Advisor and Creative Director • Build separate HEYDUDE leadership team under new Brand President, Rick Blackshaw, to maintain growth trajectory and minim
Slide 14: Business Overview
BUSINESS OVERVIEW | Confidential
Slide 15: HEYDUDE at a Glance
HEYDUDE AT A GLANCE ~$570mm 10mm+ 95% 72 900k+ CY2021E Pairs Shipped Revenues in Exceptionally high Followers Across Revenue Globally in LTM US Market NPS* Social Channels* 100 ‘HEYDUDE Shoes’ Search Trend Google Trends: Level of Interest in US in Past 3 Years 50 0 Dec-18 Dec-19 Dec-20 Dec-21 *Crocs
Slide 16: Growing Community of Loyal Customers and Passionate Brand Ambassadors
GROWING COMMUNITY OF LOYAL CUSTOMERS AND PASSIONATE BRAND AMBASSADORS 4.8 72 8.9/10 51% Growth in Facebook Stars out of 5 from 31k+ Overall customer Exceptionally high NPS* followers from Q2 reviews on Shopify satisfaction score* to Q3 2021 *Crocs management 2021 survey and analysis. 16 Note: Pictur
Slide 17: Innovative Loafer Concept Differentiated Through Quality and Comfort
INNOVATIVE LOAFER CONCEPT DIFFERENTIATED THROUGH QUALITY AND COMFORT Perfect Fit Simple core product that sells easily Wide toebox and online relaxed upper Ergonomic Insole Price-quality Ratio Ultra light and comfortable casual Memory anatomic Competitive base footwear product insole, with leath
Slide 18: Fast-Growing, Digital-First Distribution
FAST-GROWING, DIGITAL-FIRST DISTRIBUTION Digital 43% ~14x Growth in Digital Sales since 2018 KEY WHOLESALE PARTNERS Note: Digital penetration as of LTM 10/31/2021. 18
Slide 19: Transaction Overview
TRANSACTION OVERVIEW | Confidential
Slide 20: Transaction Overview
TRANSACTION OVERVIEW Purchase Price(1) $2.5 billion Valuation Multiple Less than 15x EV/EBITDA HEYDUDE Revenue ~$570M Revenue for 2021E Closing 1Q 2022, subject to customary closing conditions and regulatory approval Expected acquisition financing of: • $2.0B Term Loan B Financing • $450M Crocs shar
Slide 21: Appendix
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Slide 22: Definitions and Non-GAAP Reconciliations
DEFINITIONS AND NON-GAAP RECONCILIATIONS Adjusted Operating Margin: (GAAP income from operations adjusted for non-recurring items) / (GAAP revenues) Reconciliation of GAAP to Non-GAAP Financial Guidance: Full Year 2021 (as provided on October 21, 2021) Non-GAAP operating margin reconciliation: Appro
Slide 23: | Confidential
+ | Confidential