Crocs, Inc. · NASDAQ:CROX
Crocs — Investor Day (September 2021)
93 slides from Crocs's investor day presentation, Sep 14, 2021
Slide 1: Picking Up the Pace: Investor Day 2021
PICKING UP THE PACE INVESTOR DAY 2021
Slide 2: Forward Looking Statements
PICKING UP THE PACE | OPENING FORWARD LOOKING STATEMENTS Some information provided in this document will be forward-looking, and accordingly, is subject to the Safe Harbor provisions of the federal securities law. These statements include, but are not limited to, statements regarding potential impac
Slide 3: Crocs History
PICKING UP THE PACE | OPENING CROCS HISTORY | Confidential || IBNRVAENS DT OPRU RD PA OY S 2E 0 2 1 3
Slide 4: Picking Up the Pace: Investor Day 2021
PICKING UP THE PACE INVESTOR DAY 2021
Slide 5: Leadership
PICKING UP THE PACE | OPENING LEADERSHIP Andrew Rees Michelle Poole Anne Mehlman CEO President EVP & Chief Financial Officer Heidi Cooley Adam Michaels SVP, Chief Marketing Officer SVP, Chief Digital Officer | INVESTOR DAY 2021 * Green outline indicates today’s speakers. 5
Slide 6: Leadership
PICKING UP THE PACE | OPENING LEADERSHIP Elaine Boltz Dan Hart Michael Feliton Adrian Holloway EVP, Chief Operations & EVP, Chief Legal & SVP & Chief Information Officer SVP & GM, EMEA Transformation Officer Risk Officer Emma Minto Shannon Sisler Megan Welch SVP & GM, Americas SVP, Chief People Offi
Slide 7: Agenda
PICKING UP THE PACE | OPENING AGENDA TOPIC PRESENTER Growth Framework Andrew Rees, CEO Product Growth Levers Michelle Poole, President Consumer & Marketing Strategy Heidi Cooley, SVP & CMO Digital Strategy Adam Michaels, SVP & CDO ESG Andrew Rees, CEO Long Range Plan Anne Mehlman, EVP & CFO Q&A Andr
Slide 8: Growth Framework
GROWTH FRAMEWORK ANDREW REES, CHIEF EXECUTIVE OFFICER | Confidential
Slide 9: Everyone Comfortable in Their Own Shoes
PICKING UP THE PACE | GROWTH FRAMEWORK OUR VISION EVERYONE COMFORTABLE IN THEIR OWN SHOES | INVESTOR DAY 2021 9
Slide 10: Track Record of Value Creation
PICKING UP THE PACE | GROWTH FRAMEWORK TRACK RECORD OF VALUE CREATION $7.7B+ >870% SHAREHOLDER VALUE TOTAL SHAREHOLDER CREATION SINCE MID-2014 RETURN * From June 30, 2014 to August 31, 2021. Shareholder value creation defined as increase in market capitalization. | INVESTOR DAY 2021 10
Slide 11: Our Ambition
PICKING UP THE PACE | GROWTH FRAMEWORK OUR AMBITION $5B+ 17%+ CAGR $2.25B 2021E 2026E * Reflects revenues. FY 2021E based on midpoint of revenue guidance provided on July 22, 2021. | INVESTOR DAY 2021 11
Slide 12: Growth Framework
PICKING UP THE PACE | GROWTH FRAMEWORK GROWTH FRAMEWORK DIGITAL SANDALS ASIA PRODUCT & MARKETING INNOVATION | INVESTOR DAY 2021 12
Slide 13: Digital
PICKING UP THE PACE | GROWTH FRAMEWORK DIGITAL 50%+ Long-Term Revenue* Elevate consumer experiences Personalize consumer journeys Invest in capabilities and analytics Direct consumer connection * Long-term defined as expectation for 2026E. Digital sales includes sales through our | INVESTOR DAY 2021
Slide 14: Sandals
PICKING UP THE PACE | GROWTH FRAMEWORK SANDALS $30B+ +10% >4X Total Addressable Crocs Revenue CAGR Crocs Sandals Revenue Market for 3 Years Pre-COVID by 2026E * Total Addressable Market is based on management estimates. | INVESTOR DAY 2021 14
Slide 15: Asia
PICKING UP THE PACE | GROWTH FRAMEWORK ASIA ~25% Long-Term Revenue* China is the #2 footwear market Increase awareness with brand ambassadors & key opinion leaders Invest in brand relevance, digital capabilities, and talent | INVESTOR DAY 2021 * Long-term defined as expectation for 2026E. China foot
Slide 16: Product Innovation
PICKING UP THE PACE | GROWTH FRAMEWORK PRODUCT INNOVATION New silhouettes to reach new consumers & increase margin Best-in-class molded and comfort technology Collaborations, licensed and energy product Trend-right color, graphics and treatments Personalization | INVESTOR DAY 2021 16
Slide 17: Marketing Innovation
PICKING UP THE PACE | GROWTH FRAMEWORK MARKETING INNOVATION A brand OF the people FOR the people 4 years of DD+ increases in brand relevance Strong pipeline of collaborations 360 integrated, digital global and local marketing | INVESTOR DAY 2021 17
Slide 18: Create a More Comfortable World
PICKING UP THE PACE | GROWTH FRAMEWORK OUR PURPOSE CREATE A MORE COMFORTABLE WORLD | INVESTOR DAY 2021 18
Slide 19: Our Purpose: Three Pillars
PICKING UP THE PACE | GROWTH FRAMEWORK OUR PURPOSE: THREE PILLARS SUSTAINABILITY COMMUNITY INCLUSIVITY Comfort without Carbon Comfort for Our Communities Comfort for All People | INVESTOR DAY 2021 19
Slide 20: Our Ambition
PICKING UP THE PACE | GROWTH FRAMEWORK OUR AMBITION $5B * Reflects long-term revenue expectation for 2026E. | INVESTOR DAY 2021 20
Slide 21: Product Growth Levers
PRODUCT GROWTH LEVERS MICHELLE POOLE, PRESIDENT | Confidential
Slide 22: Aligned with Consumer Trends
PICKING UP THE PACE | PRODUCT GROWTH LEVERS ALIGNED WITH CONSUMER TRENDS CASUALIZATION COMFORT-LED SUSTAINABILITY PERSONALIZATION FUNCTIONALITY | INVESTOR DAY 2021 22
Slide 23: Our Product Pillars
PICKING UP THE PACE | PRODUCT GROWTH LEVERS OUR PRODUCT PILLARS CLOGS PERSONALIZATION (JIBBITZ) SANDALS Provide Brand Drive Consumer Expand Wearing Halo Engagement & Retention Occasions | INVESTOR DAY 2021 23
Slide 24: Clogs
PICKING UP THE PACE | PRODUCT GROWTH LEVERS CLOGS Drive global clog relevance Acquire new consumers Accelerate purchase frequency Innovation | INVESTOR DAY 2021 24
Slide 25: Sandals
PICKING UP THE PACE | PRODUCT GROWTH LEVERS SANDALS 4X Revenue by 2026 Drive awareness Convert existing customers Additional gateway to our brand Year-round digital opportunity Win across 4 key sub-categories | INVESTOR DAY 2021 25
Slide 26: Sandals: Win in 4 Sub-Categories
PICKING UP THE PACE | PRODUCT GROWTH LEVERS SANDALS: WIN IN 4 SUB-CATEGORIES ICON STYLE COMFORT ADVENTURE Classic, Crocband Brooklyn, Tulum LiteRide, Capri Swiftwater, All-Terrain | INVESTOR DAY 2021 26
Slide 27: Personalization (Jibbitz)
PICKING UP THE PACE | PRODUCT GROWTH LEVERS PERSONALIZATION (JIBBITZ) Position personalization as heartbeat of the brand Drive engagement and purchase frequency Expand relevance Leverage opportunity in sandals Jibbitz audience has 2x customer lifetime value* Develop new categories beyond footwear *
Slide 28: Innovation
PICKING UP THE PACE | PRODUCT GROWTH LEVERS INNOVATION BRAND DNA CONSUMER INSIGHTS Comfort Democratic Versatility Voice of the consumer Color / fun Social listening Molded Market research & consumer analytics | INVESTOR DAY 2021 28
Slide 29: More Opportunity Than Ever
PICKING UP THE PACE | PRODUCT GROWTH LEVERS MORE OPPORTUNITY THAN EVER SILHOUETTE EXPANSION BEYOND FOOTWEAR Athleisure Casual Comfort Flats Key Items | INVESTOR DAY 2021 29
Slide 30: Strong Growth Potential
PICKING UP THE PACE | PRODUCT GROWTH LEVERS STRONG GROWTH POTENTIAL CLOGS SANDALS OTHER Grow the Category 4X Revenue by 2026 Expand the Brand Crocs DNA: comfortable, casual, democratic, self-expression | INVESTOR DAY 2021 30
Slide 31: Consumer & Marketing Strategy
CONSUMER & MARKETING STRATEGY HEIDI COOLEY, SVP & CHIEF MARKETING OFFICER | Confidential
Slide 32: High Global Brand Awareness
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY HIGH GLOBAL BRAND AWARENESS | INVESTOR DAY 2021 32
Slide 33: Dramatic Increase in Brand Relevance
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY DRAMATIC INCREASE IN BRAND RELEVANCE CONSUMER-CENTRIC APPROACH 4 consecutive years of double-digit increases | INVESTOR DAY 2021 33
Slide 34: Dramatic Increase in Brand Relevance
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY DRAMATIC INCREASE IN BRAND RELEVANCE CONSUMER-CENTRIC ALIGNED BRAND APPROACH PURPOSE 4 consecutive years of double-digit increases | INVESTOR DAY 2021 34
Slide 35: Dramatic Increase in Brand Relevance
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY DRAMATIC INCREASE IN BRAND RELEVANCE CONSUMER-CENTRIC ALIGNED BRAND BRAND APPROACH PURPOSE INNOVATION 4 consecutive years of double-digit increases | INVESTOR DAY 2021 35
Slide 36: Dramatic Increase in Brand Relevance
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY DRAMATIC INCREASE IN BRAND RELEVANCE CONSUMER-CENTRIC ALIGNED BRAND BRAND IMAGINATIVE APPROACH PURPOSE INNOVATION INTEGRATED MARKETING 4 consecutive years of double-digit increases | INVESTOR DAY 2021 36
Slide 37: Consumer-Centric Approach
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY CONSUMER-CENTRIC APPROACH BASE IS BROAD AND DEMOCRATIC CULTURE CREATORS EXPLORERS FEEL GOODS FASHION ENTHUSIASTS SPORT LIFESTYLE EARLY ADOPTER EARLY MAJORITY Purchase Motivation: Purchase Motivation: ALPHA CONSCIOUS Self-Expression, Comfort, Versat
Slide 38: Come As You Are
We live for our fans, a beautifully diverse tapestry of one-of-a-kinds from all walks of life and from every corner of the world. And we stand with those who bravely inspire others to embrace these beliefs and celebrate what it means to truly. COME AS YOU ARE | Confidential
Slide 39: Brand Intrinsically Aligns with Consumer Values
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY BRAND INTRINSICALLY ALIGNS WITH CONSUMER VALUES SUSTAINABILITY SELF-EXPRESSION INCLUSIVITY COME AS DIGITAL YOU ARE COMMUNITY CREATIVITY | INVESTOR DAY 2021 39
Slide 40: Innovation and Agility
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY INNOVATION AND AGILITY We’ll take risks that many others will not Agile innovation creates deep connections | INVESTOR DAY 2021 40
Slide 41: Integrated Marketing Model
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY INTEGRATED MARKETING Social Media Activations & Innovations GLOBALLY MODEL IS LED DRIVING Public Relations GLOBAL Ambassadors, IMPACT Influencers & Collaborations Retail & Partner Experience Media, Custom Programs & Activations LOCALLY RELEVANT Dig
Slide 42: Growth Framework
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY GROWTH FRAMEWORK DIGITAL SANDALS ASIA PRODUCT & MARKETING INNOVATION | INVESTOR DAY 2021 42
Slide 43: Digitally Led, Social First
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY DIGITALLY LED, SOCIAL FIRST Creating Powerful Brand Connection Through Consumer-Driven Activations | INVESTOR DAY 2021 43
Slide 44: Igniting Sandals Through Personalization
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY IGNITING SANDALS THROUGH PERSONALIZATION Leveraging proven year-round icon playbook | INVESTOR DAY 2021 44
Slide 45: Accelerating Brand Relevance in Asia
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY ACCELERATING BRAND RELEVANCE IN ASIA Increasing investment to create more consumer moments year-round | INVESTOR DAY 2021 45
Slide 46: Digital Innovation Scaled Globally
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY DIGITAL INNOVATION SCALED GLOBALLY Drive consumer acquisition & engagement on platforms where fans are spending their time | INVESTOR DAY 2021 46
Slide 47: We Listen, We Connect, We Evolve
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY WE LISTEN WE CONNECT WE EVOLVE | INVESTOR DAY 2021 47
Slide 48: Consumer & Marketing Video
PICKING UP THE PACE | CONSUMER & MARKETING STRATEGY CONSUMER & MARKETING VIDEO | Confidential || IBNRVAENS DT OPRU RD PA OY S 2E 0 2 1 48
Slide 49: 15-Minute Break
PICKING UP THE PACE INVESTOR DAY 2021 15-MINUTE BREAK
Slide 50: Digital Strategy
DIGITAL STRATEGY ADAM MICHAELS, SVP & CHIEF DIGITAL OFFICER | Confidential
Slide 51: Our Digital Ambition
PICKING UP THE PACE | DIGITAL STRATEGY OUR DIGITAL AMBITION $2.5B+Digital Revenue* 50%+ of Total Global Revenue* | INVESTOR DAY 2021 * Reflects long-term revenue expectation for 2026E. Digital sales includes sales through 51 our company-owned websites, third party marketplaces, and e-tailers.
Slide 52: Already a High Growth Channel
PICKING UP THE PACE | DIGITAL STRATEGY ALREADY A HIGH GROWTH CHANNEL $700M+ 53% CAGR ~$300M 2019 LTM Q2 2021 | INVESTOR DAY 2021 * Reflects digital sales, which includes sales through our company-owned websites, third party marketplaces, and e-tailers. 52
Slide 53: Growing Digital Demand
PICKING UP THE PACE | DIGITAL STRATEGY GROWING DIGITAL DEMAND Worldwide Google Search Volume “Crocs” “Jibbitz” 125 125 100 100 75 75 50 50 25 25 0 0 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 *Source: Google Trends from January 2014 through August 2021. Numbers r
Slide 54: Keys to Success
PICKING UP THE PACE | DIGITAL STRATEGY KEYS TO SUCCESS Evolved Democratic & Compelling Data- Digital Strategic Consumer Driven Ecosystem Distribution Experiences Insights | INVESTOR DAY 2021 54
Slide 55: Evolved Digital Ecosystem
PICKING UP THE PACE | DIGITAL STRATEGY EVOLVED DIGITAL ECOSYSTEM Evolved from a heavy focus on Crocs.com to a more customer centric, connected experience across both Physical and Digital touchpoints | INVESTOR DAY 2021 55
Slide 56: Democratic & Strategic Distribution
PICKING UP THE PACE | DIGITAL STRATEGY DEMOCRATIC & STRATEGIC DISTRIBUTION CROCS.COM PURE PLAY E-TAIL MARKETPLACES Best Representation Key Partners Broad Consumer Reach of the Brand | INVESTOR DAY 2021 56
Slide 57: More Balanced Digital Business
PICKING UP THE PACE | DIGITAL STRATEGY MORE BALANCED DIGITAL BUSINESS EMEA ~24% EMEA ~25% LTM Q2 2026E 2021 Asia ~18% Americas ~50% Americas ~58% Asia ~25% | INVESTOR DAY 2021 * Reflects digital sales, which includes sales through our company-owned websites, third party marketplaces, and e-tailers.
Slide 58: Compelling Consumer Journeys
PICKING UP THE PACE | DIGITAL STRATEGY COMPELLING CONSUMER JOURNEYS COLLABORATIONS PERSONALIZATION LOYALTY | INVESTOR DAY 2021 58
Slide 59: Data-Driven Insights
PICKING UP THE PACE | DIGITAL STRATEGY DATA-DRIVEN INSIGHTS Leverage technology we have been building for years. Better understand consumer behavior More personalized experiences Improved customer acquisition and retention Insights that drive speed & improved outcomes | INVESTOR DAY 2021 59
Slide 60: Future Key Investments
PICKING UP THE PACE | DIGITAL STRATEGY FUTURE KEY INVESTMENTS Investing in projects and technology that will provide the foundation for future growth. APP Customization Customer Experience Commerce B2B Omnichannel Loyalty/Engagement Licensed Distribution Centers Unique Experiences Unique GTM Digital
Slide 61: Our Digital Ambition
PICKING UP THE PACE | DIGITAL STRATEGY OUR DIGITAL AMBITION $2.5B+Digital Revenue* 50%+ of Total Global Revenue* | INVESTOR DAY 2021 * Reflects long-term revenue expectation for 2026E. Digital sales includes sales through 61 our company-owned websites, third party marketplaces, and e-tailers.
Slide 62: ESG
ESG ANDREW REES, CHIEF EXECUTIVE OFFICER | Confidential
Slide 63: Create a More Comfortable World
PICKING UP THE PACE | ESG OUR PURPOSE CREATE A MORE COMFORTABLE WORLD | INVESTOR DAY 2021 63
Slide 64: Our Purpose: Three Pillars
PICKING UP THE PACE | ESG OUR PURPOSE: THREE PILLARS SUSTAINABILITY COMMUNITY INCLUSIVITY Comfort without Carbon Comfort for Our Communities Comfort for All People | INVESTOR DAY 2021 64
Slide 65: Low Carbon Footprint Today
PICKING UP THE PACE | ESG LOW CARBON FOOTPRINT TODAY | INVESTOR DAY 2021 65
Slide 66: Net Zero by 2030
PICKING UP THE PACE | ESG OUR BOLD COMMITMENT NET ZERO BY 2030 | INVESTOR DAY 2021 66
Slide 67: Sustainability: Comfort Without Carbon
PICKING UP THE PACE | ESG SUSTAINABILITY: COMFORT WITHOUT CARBON Sustainable Ingredients Resource Use Packaging Afterlife Product Solutions | INVESTOR DAY 2021 67
Slide 68: Sustainability: Bio-Based Croslite
PICKING UP THE PACE | ESG SUSTAINABILITY: BIO-BASED CROSLITE Variety of sources for sustainable, bio-based Croslite Partnering with Dow Began phasing into Classic Cost embedded within long-term guidance provided | INVESTOR DAY 2021 68
Slide 69: Community: Comfort for Our Communities
PICKING UP THE PACE | ESG COMMUNITY: COMFORT FOR OUR COMMUNITIES GIVING SHOES GIVING FUNDS GIVING TIME | INVESTOR DAY 2021 69
Slide 70: Inclusivity: Comfort for All People
PICKING UP THE PACE | ESG INCLUSIVITY: COMFORT FOR ALL PEOPLE | INVESTOR DAY 2021 70
Slide 71: ESG Video
PICKING UP THE PACE | ESG ESG VIDEO | Confidential || IBNRVAENS DT OPRU RD PA OY S 2E 0 2 1 71
Slide 72: Long-Range Plan
LONG-RANGE PLAN ANNE MEHLMAN, EVP & CHIEF FINANCIAL OFFICER | Confidential
Slide 73: Track Record of Value Creation
PICKING UP THE PACE | LONG-RANGE PLAN TRACK RECORD OF VALUE CREATION $7.7B+ >870% SHAREHOLDER VALUE* TOTAL SHAREHOLDER CREATION SINCE MID-2014 RETURN * From June 30, 2014 to August 31, 2021. Shareholder value creation defined as increase in market capitalization. | INVESTOR DAY 2021 73
Slide 74: Our Ambition
PICKING UP THE PACE | LONG-RANGE PLAN OUR AMBITION $5B+ 17%+ CAGR $2.25B 2021E 2026E * Reflects revenues. FY 2021E based on midpoint of revenue guidance provided on July 22, 2021. | INVESTOR DAY 2021 74
Slide 75: Channel Mix
PICKING UP THE PACE | LONG-RANGE PLAN CHANNEL MIX DIGITAL DIGITAL 37% 50% LTM Q2 2026E 2021 PHYSICAL PHYSICAL 63% 17%+ 50% CAGR WHL WHL 51% 55% LTM Q2 2026E 2021 DTC DTC 49% 45% | INVESTOR DAY 2021 * Reflects revenue mix. WHL represents Wholesale channel. 75
Slide 76: Product Mix
PICKING UP THE PACE | LONG-RANGE PLAN PRODUCT MIX Other 7% Jibbitz 6% >4X >2X Sandal 16% LTM Q2 2021 Crocs Sandals Jibbitz Revenue Revenue Clog (2020 to 2026E) (2020 to 2026E) 71% | INVESTOR DAY 2021 * Reflects revenue mix 76
Slide 77: Geographic Mix
PICKING UP THE PACE | LONG-RANGE PLAN GEOGRAPHIC MIX Americas Americas 65% 56% EMEA LTM Q2 17%+ 20% 2026E CAGR EMEA 2021 17% Asia Asia 18% 24% | INVESTOR DAY 2021 * Reflects revenue mix 77
Slide 78: Top Markets
PICKING UP THE PACE | LONG-RANGE PLAN TOP 5 MARKETS US, China, Japan, Germany, S. Korea ~75% 20%+ of Revenue in 2020 CAGR through 2026 | INVESTOR DAY 2021 78
Slide 79: Strategic Priorities Driving Growth
PICKING UP THE PACE | LONG-RANGE PLAN STRATEGIC PRIORITIES DRIVING GROWTH DIGITAL SANDALS ASIA ~25% 4X ~25% CAGR through 2026 Revenue by 2026 of 2026E Revenue | INVESTOR DAY 2021 79
Slide 80: High Organic Revenue Growth
PICKING UP THE PACE | LONG-RANGE PLAN HIGH ORGANIC REVENUE GROWTH $5B+ 17%+ CAGR | INVESTOR DAY 2021 * Reflects long-term revenue expectation for 2026E. 80
Slide 81: Industry-Leading Profitability
PICKING UP THE PACE | LONG-RANGE PLAN INDUSTRY-LEADING PROFITABILITY 26%+ Adjusted Operating Margin* | INVESTOR DAY 2021 * Reflects long-term expectation for 2026E. Please refer to Appendix for definition. 81
Slide 82: Investments Focused on Strategic Priorities
PICKING UP THE PACE | LONG-RANGE PLAN INVESTMENTS FOCUSED ON STRATEGIC PRIORITIES DIGITAL: Consumer Experience, Analytics, and Talent ASIA: Brand Relevance, Digital Capabilities, and Talent MARKETING: 7% to 9% of Revenue* CAPITAL EXPENDITURES: ~3% of Revenues* | INVESTOR DAY 2021 * Reflects long-ter
Slide 83: Capital Allocation Priorities
PICKING UP THE PACE | LONG-RANGE PLAN CAPITAL ALLOCATION PRIORITIES FINANCIAL BUSINESS SHAREHOLDER FLEXIBILITY INVESTMENT RETURNS | INVESTOR DAY 2021 83
Slide 84: Stepping Up Repurchase in 2021
PICKING UP THE PACE | LONG-RANGE PLAN STEPPING UP REPURCHASE IN 2021 New Accelerated New Increase in Share Share Repurchase Repurchase Authorization $500M $1B | INVESTOR DAY 2021 84
Slide 85: 2021E Repurchases of $1B
PICKING UP THE PACE | LONG-RANGE PLAN 2021E REPURCHASES OF $1B Q3 2021E YTD Repurchases Q4 2021E Repurchases $500M $500M Expected Shares Repurchased in 2021* 8.1M | INVESTOR DAY 2021 * YTD reflects $150M open market repurchase in Q3 and today’s announced $500M ASR. For shares not repurchased as 85 o
Slide 86: Financial Plan
PICKING UP THE PACE | LONG-RANGE PLAN FINANCIAL PLAN FY21E* Long Term* Revenue $2.2 - $2.3B $5B+ Revenue Growth 60-65% 17%+ Adj. Operating Margin* ~25% 26%+ Non-GAAP Tax* 23% ~25% Capital Expenditures $80-$100M ~3% of revenues * Long term defined as expectation for 2026E. Please refer to Appendix fo
Slide 87: Exceptional Cash Flow Generation
PICKING UP THE PACE | LONG-RANGE PLAN EXCEPTIONAL CASH FLOW GENERATION $1B+ Annual Free Cash Flow by 2026E* | INVESTOR DAY 2021 * Please refer to Appendix for definition and Non-GAAP reconciliation. 87
Slide 88: Significant Value Creation
PICKING UP THE PACE | LONG-RANGE PLAN SIGNIFICANT VALUE CREATION High Organic Industry Exceptional Revenue Leading Cash Flow Growth Profitability Generation | INVESTOR DAY 2021 88
Slide 89: Q&A
Q&A ANDREW REES CHIEF EXECUTIVE OFFICER MICHELLE POOLE PRESIDENT ANNE MEHLMAN EVP & CHIEF FINANCIAL OFFICER | Confidential 89
Slide 90: Thank You
THANK YOU ANDREW REES CHIEF EXECUTIVE OFFICER | Confidential 90
Slide 91: Appendix
PICKING UP THE PACE | APPENDIX APPENDIX | INVESTOR DAY 2021 91
Slide 92: Definitions and Non-GAAP Reconciliations
PICKING UP THE PACE | APPENDIX DEFINITIONS AND NON-GAAP RECONCILIATIONS Adjusted Operating Margin: (GAAP income from operations adjusted for non-recurring items) / (GAAP revenues) Free Cash Flow: (GAAP cash provided by operating activities) – (Purchases of property, equipment, and software) Reconcil
Slide 93: Appendix
PICKING UP THE PACE | APPENDIX | INVESTOR DAY 2021 93