Slide 1: Creating a Leader in Global Casual Footwear
CREATING A LEADER IN GLOBAL CASUAL FOOTWEAR JANUARY 2022 | 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: Business Update
BUSINESS UPDATE ANDREW REES, CHIEF EXECUTIVE OFFICER | Confidential
Slide 4: Crocs Had an Incredible 2021
CROCS HAD AN INCREDIBLE 2021 • Crocs had an amazing year in 2021E* − ~67% Revenue growth to ~$2.3B* − Best-in-class non-GAAP operating margins of nearly 30% − $1B of share repurchase • Fully committed to grow Crocs Brand revenues to $5B+ by 2026 • HEYDUDE adds a second high growth, highly profitable
Slide 5: Industry-Leading Growth, Operating Margins & Returns
INDUSTRY-LEADING GROWTH, OPERATING MARGINS & RETURNS ~67% ~30% $1B 2021E Revenue Growth* 2021E non-GAAP 2021 Share Repurchase Operating Margin* * FY 2021E reflects estimated actuals for revenues and non-GAAP operating margin. Non-GAAP operating margin expected to be nearly 30%. See reconciliation to
Slide 6: Crocs Brand Ambition Unchanged
CROCS BRAND AMBITION UNCHANGED $5B+ 17%+ CAGR ~$2.3B 2021E* 2026E* * Reflects Crocs Brand revenues, excluding HEYDUDE. FY 2021E reflects estimated actuals. 6
Slide 7: Crocs Growth Framework
CROCS GROWTH FRAMEWORK DIGITAL SANDALS ASIA PRODUCT & MARKETING INNOVATION 7
Slide 8: HEYDUDE Will Add Another High Growth, Highly Profitable Brand
HEYDUDE WILL ADD ANOTHER HIGH GROWTH, HIGHLY PROFITABLE BRAND • 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 $160B* • Diversifies product portfolio from single-brand to multi-bran
Slide 9: Creates Global, Scaled Leader in Branded Casual Footwear
CREATES GLOBAL, SCALED LEADER IN BRANDED CASUAL FOOTWEAR ($ in bn) Full Year 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 1/6/2022. Crocs based on ~$2.3B 2021E reven
Slide 10: 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. 10
Slide 11: Diversifies Product Portfolio from Single-Brand to Multi-Brand
DIVERSIFIES PRODUCT PORTFOLIO FROM SINGLE-BRAND TO MULTI-BRAND Full Year Pro Forma 2021E Other Other 5% Jibbitz 4% Jibbitz 6% 7% Sandal 11% Sandal 14% + * Casual Footwear Clog 20% 59% Clog 74% * Crocs reflects 2021E revenues by product category. HEYDUDE assumes all of 2021E revenue of $580M is casua
Slide 12: Builds Upon Crocs' Already High Digital Penetration
BUILDS UPON CROCS’ ALREADY HIGH DIGITAL PENETRATION Full Year Pro Forma 2021E Digital 37% Digital Digital 48% 39% * * + * * Crocs PF 2021 reflects Crocs and HEYDUDE 2021E revenues and digital penetration. 12
Slide 13: 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 13
Slide 14: HEYDUDE's Rapid Revenue Growth Since 2018
HEYDUDE’S RAPID REVENUE GROWTH SINCE 2018* • 2017: HEYDUDE begins selling on Amazon $580 • 2018: Wendy style begins selling • 2019: Secures significant distribution partnerships (e.g., The Buckle, $191 Journeys, Shoe Show) $56 $20 • 2020-2021: Continued penetration of new and 2018 2019 2020 2021E ex
Slide 15: Opportunity to Leverage Crocs' Proven Global Playbook
OPPORTUNITY TO LEVERAGE CROCS’ PROVEN GLOBAL PLAYBOOK GLOBAL MARKETING WHOLESALE FOOTPRINT EXPERTISE RELATIONSHIPS <5%/31% ~20%/92% 30% HEYDUDE vs. Crocs HEYDUDE vs. Crocs HEYDUDE Account Overlap International Revenues* Brand Awareness** with Crocs Top 20 B&M WHL * Based on Crocs 2021E and HEYDUDE L
Slide 16: 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 17: New Ambition of $6B+ Revenues
NEW AMBITION OF $6B+ REVENUES* $6B+ $5B+ ~$2.9B ~$2.3B $1B+ ~$0.6B 2021E* 2026E 2021E* 2024E PF 2021E* 2026E Crocs, Inc. * Reflects long-term revenues expectation for 2026E. FY 2021E reflects estimated actuals for Crocs and HEYDUDE. Crocs, Inc. full year pro forma 2021E is as if it had owned HEYDUDE
Slide 18: Value Creation Roadmap
VALUE CREATION ROADMAP ANNE MEHLMAN, EVP & CHIEF FINANCIAL OFFICER | Confidential
Slide 19: Robust Crocs Brand Revenue Growth
ROBUST CROCS BRAND REVENUE GROWTH* ~$2.3 $1.4 $1.2 $1.0 $1.1 2017 2018 2019 2020 2021E YOY Growth (1.2%) +6.3% +13.1% +12.6% ~67% * Reflects Crocs Brand revenues presented in billions. FY 2021E reflects estimated actuals. 19
Slide 20: Broad-Based Strength in 2021E
BROAD-BASED STRENGTH IN 2021E* Revenue Growth* ~86% 45% 4Q 2021E DTC Comparable Sales Growth* ~46% 37% ~26% 2021E Digital Penetration* Americas EMEA Asia * Reflects Crocs Brand revenues. FY 2021E reflects estimated actuals. 20
Slide 21: Industry-Leading Profitability
INDUSTRY-LEADING PROFITABILITY 2021E Non-GAAP Operating Margin* ~30% * Non-GAAP operating margin expected to be nearly 30% for 2021E. Please refer to appendix for reconciliation. 21
Slide 22: Significant Shareholder Returns
SIGNIFICANT SHAREHOLDER RETURNS 2021 Total Share Repurchase 2021 Shares Repurchased $1B 8.2M * As of December 31, 2021, Crocs, Inc. had 58,329,856 shares of its common stock, par value $0.001 per share, outstanding. Pursuant to our Securities Purchase Agreement for HEYDUDE, we will 22 issue 2,852,28
Slide 23: HEYDUDE Adds a Second High Growth, Highly Profitable Brand
HEYDUDE ADDS A SECOND HIGH GROWTH, HIGHLY PROFITABLE BRAND 9/30 LTM PF FY22E Long Term* Revenues $467M $700-750M $1B+ Revenue Growth 100%+ 21 – 29% 20%+ Non-GAAP ~40% ~26% 26%+ Operating Margin We intend to invest to build HEYDUDE to $1B+ by 2024 * Long term for HEYDUDE for PF 2022E through 2024E. P
Slide 24: HEYDUDE Is Expected to Be Accretive to Crocs' Industry-Leading Growth & Margins
HEYDUDE IS EXPECTED TO BE ACCRETIVE TO CROCS’ INDUSTRY- LEADING GROWTH & MARGINS Long-Term Revenue Growth* 17%+ 20%+ Long-Term non-GAAP ~26%+ ~26%+ Operating Margin* Attractive acquisition multiple of 13x Expected to be immediately accretive to Crocs EPS * Acquisition multiple assumes LTM EBITDA of
Slide 25: Strong Revenue Outlook
STRONG REVENUE OUTLOOK FY22E Long Term* $ Growth ~$2.8B 20%+ $5B+ $700-750M 21 – 29% $1B+ Pro Forma Crocs Company ~$3.5B 20 – 22% $6B+ • Crocs FY22E assumes 2021E Revenues of ~$2.3B grow by 20% during 2022E. Crocs long-term guidance provided here is on a pre-acquisition standalone basis. Long term f
Slide 26: 2022 Timing Considerations
2022 TIMING CONSIDERATIONS • HEYDUDE acquisition is expected to close in the second half of Q1 2022, subject to regulatory approval and customary closing conditions • HEYDUDE financials will be included after close (i.e, ~10 months of 2022) and reported separately for transparency • For the Crocs br
Slide 27: Significant Cash Flow Generation Fuels Rapid Debt Repayment
SIGNIFICANT CASH FLOW GENERATION FUELS RAPID DEBT REPAYMENT Net Debt / Adjusted EBITDA 2.9x ≤ 2.0x 0.8x YE 2021E PF YE 2021E for HEYDUDE PF YE 2023E* * Assumes excess free cash flow used to repay borrowings. Net Debt / EBITDA calculated as: (Total Debt – Cash and Cash Equivalents) / TTM Adjusted EBI
Slide 28: Significant Value Creation from Both Brands
SIGNIFICANT VALUE CREATION FROM BOTH BRANDS Industry Exceptional High Revenue Leading Cash Flow Growth Profitability Generation 28
Slide 29: Appendix
APPENDIX 29
Slide 30: HEYDUDE Transaction Overview
HEYDUDE TRANSACTION OVERVIEW Purchase Price(1) $2.5 billion Valuation Multiple 13x Enterprise Value / LTM EBITDA as of 9/30 HEYDUDE Revenue ~$580M Revenue for 2021E Closing 1Q 2022, subject to customary closing conditions and regulatory approval Expected acquisition financing of: • $2.0B Term Loan B
Slide 31: Definitions and Non-GAAP Reconciliations
DEFINITIONS AND NON-GAAP RECONCILIATIONS Non-GAAP Operating Margin: (GAAP income from operations adjusted for non-recurring items) / (GAAP revenues) Reconciliation of GAAP to Non-GAAP Financial Guidance: Full Year 2021E Non-GAAP operating margin reconciliation: Approximately: GAAP operating margin 2
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