CROCS

Crocs – What are they?

Clog design Comfortable Waterproof (used on boats) Light Bright colors Competitors include Nike, Sketchers and

Decker

Styles and Gear

62% of sale from

Cayman and

Beach Styles

25 models in a wide variety of colors and patterns

Branded Apparel, Fury, Ocean Minded,

Jibbitz

Celebrities Wear Crocs

Crocs Timeline

2002 Crocs is founded

by 3 friends sailing in the Caribbean; 1st pair of

shoes sold

2003 Total Rev $1.2 Mil

2004 Former Flextron

ics Executi

ve Ronald Snyder

is named Preside

nt; Acquire

s Finproject NA

2005 Ronald

Snyder is named

CEO and enacts global market

penetration strategy

Feb 2006 Crocs goes

public; Total

Market Cap of $1 Bil

2006 Global Supply chain

brought in house; Crocs

owned manufacturing

(Mexico & Italy) &

compounding (Canada, China & Mexico) facilities opened

Oct 2006 Acquires

Fury Sports

Manufacturer

2006 Year

end Rev of $355

Mil; Total

Market Cap of $1.7 Bil

Jan 2007 Acquires Ocean

Minded, LLC

Designer &

Manufacturer of

Sandals

SWOT Analysis

Strengths Croslite proprietary resin

Odor free & water resistant Molds to wearer’s foot Capable of modular assembly

Executive team and firm vision

Superior supply chain management

If the products sell extremely well, we will build more in

season, and will be back on the shelves in a few weeks…. We’re not going to wait with a hot new product until next

year, when hopefully the same

trend is alive.

CEO Ronald Snyder

Supply Chain Management

Manufacturing

20% of footwear products produced in-house in North America and Italy

3rd party manufactures in China, Italy, Romania, and USA provide the balance

Crocs’ owned compounding facilities in Canada, China, and Mexico

Supply Chain Management

Distribution / Warehousing

Facilities in Colorado, Canada, China, Italy, Hawaii, Mexico & Europe

Warehousing and distribution centers added to manufacturing facilities

Supply Chain Management

Sales

11,000 domestic & 8,000 international retail stores

Direct sales through internet and mall kiosks

Tradition retail sales through large retail chains and boutique shops

SWOT Analysis

Weaknesses

2 suppliers of resin ingredient for Croslite material

Rapid expansion of operations could impact service, product quality, increase costs 136 employees as of 06/2004 and 2,900 as

12/2006

Divided customer opinion over looks

SWOT Analysis

Opportunities

Expand Fury or other similar product lines

Increased vertical integration

Manage backlog more efficiently

SWOT Analysis

Threats

Styles and fashion changes (fad) Backlog of orders becomes

problematic Could result in cancelled orders, decrease

in revenue Increased from $6.7M in 2005 to $74.6M

2006 Increased competition, counterfeiting

and lawsuits

Strategy

Increase Vertical Integration Utilize additional suppliers of resin

Bring additional manufacturing in-house to maintain high degree of flexibility and minimize backlog A single facility accounts for 55% of footwear

products Continue to expand warehousing /

manufacturing / distribution all in one centers

Strategy

Limit over diversification of product lines Focus on high margin products Improve current information system to

handle rapid operations expansion and financial controls

Protect intellectual property rights and trademarks

Develop stand alone retail stores similar to Apple’s model for increased brand recognition

Acquire or develop a different brand to diversify

Strategy Financing

CROCS’ 2006 IPO Proceeds

Aggregate Offering Proceeds $104 million

Underwriting Commissions $7 million

Other Expenses $2.5 million

Net Proceeds $94.5 million

Repaid LOC Facility $14.1 million

Upgraded Info Technology $8.7 million

Capital Expenditures $23.8 million

Acquisitions $15.4 million

IPO Proceeds Available $32.5 million

Solvency Ratios Liability to Assets

30% LT Debt to Equity

0.06% Liquidity Ratios

Quick Ratio 1.49 CFO /Avg. CL 18%

Finance utlizing LT Debt and $20 million from the remaining IPO proceeds. Maintain strong cash position to counter increased weakness in CFO.

Crocs Today

20062900 Employees 4157 employees

25 footwear models 250 footwear models

20.5% of footwear manufactured internally

21% of footwear manufactured internally

2 suppliers of key resin input used to create croslite material

Multiple suppliers and 3rd party broker of key resin input used to create croslite material

0 stand alone outlets and retail stores; 83 Kiosks

430 global kiosks, outlets, and retail stores accounting for 31% of footwear sales

96.5% of sales due to footwear 96.3% of sales due to footwear

$355 million in total revenue $1 billion in total revenue

Market Capitalization $1.7 billion Market Capitalization $1.8 billion

2011

Crocs Stock Performance

Any Questions?

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