#1crocs INVESTOR PRESENTATION FEBRUARY 2020 crocs™ I#2FORWARD-LOOKING STATEMENT 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 future revenues, gross margin, selling, general and administrative expenses, operating income and operating margin, income tax expense, capital expenditures, business prospects and product pipeline and the impact of the coronavirus. We caution you that these statements are subject to a number of risks and uncertainties described in the Risk Factors section of the Company's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC"). Accordingly, all actual results could differ materially from those described in this presentation. Those viewing this presentation are advised to refer to Crocs' Annual Report on Form 10-K, as well as other documents filed with the SEC for the additional discussions of these risk factors. Crocs is not obligated to update these forward-looking statements to reflect the impact of future events. crocs™ 2#3AGENDA ● ● ● crocs™ Positioned for Growth...... Financial Information..... Key Investment Considerations.. Appendix..... .4 ...16 .22 ...24 3#4POSITIONED FOR GROWTH crocs™#5A POWERFUL BRAND POSITIONED FOR GLOBAL GROWTH Scale Brand: Top 10 non-athletic global footwear brand Globally Recognized: ~65%* Internal Estimate crocs™ * Global Aided Brand Awareness Iconic Product: The Classic Clog Global Reach: Distributed in over 90 countries Democratic Brand: ii World Class Talent: Driving product and marketing innovation For men, women, and kids LO 5#6LONG-TERM GROWTH DRIVERS crocs™ ● ● ● Product & Marketing 1 Clogs: Innovate & grow clog relevance Sandals: Significant long- term growth potential Visible Comfort Technology Personalization Powerful global social and digital marketing ● Channel 2 DTC: double digit growth continues in E-commerce and prioritization of outlets as the most profitable Retail format Wholesale: greatest growth opportunities within e-tail accounts and distributors Region 3 Asia: largest long-term growth potential Americas: strong growth momentum EMEA: stable growth 6#7● GROW CLOG RELEVANCE Market leader in growing global category that has grown to $5B* Crocs grew clog revenues by 25% in 2019 to ~61% of footwear sales • The key drivers of Clog growth and relevance are: - Impactful collaborations across the globe - Personalization with expanded Jibbitz charms Strongest growth in the Americas with continued opportunity in Asia and EMEA crocs™ *Internal estimate HIGHSNOBIETY Pizzaslime & Crocs' Second Collab Glows in the Dark & Celebrates "Croc Day" elite daily Gifts That Sleigh: Your 2019 Holiday Guide US Zooey Deschanel's Favorite Self-Care Ritual. Plus Her Go-To Date Night Croes Crocs Classic Clog $45 CROCS FOX BUSINESS 5:48 6:48 Crocs sales soar after Post Malone, Luke Combs collaboration, designer partnerships すず1週間休みだったら CROCS RECORD REVENUE SHOE COMPANY REPORTS RECORDS REVENUE OF S3 MILLION カウントでメッセージ募集中 明るい色も 156CN 58 S RE GYOCS Kanke COME AS YOU ARE 313721 Stat Billboard Post Malone & Crocs Announce Fourth Collaboration, Find Out When It's Launching: Exclusive 7#8● SANDALS: SIGNIFICANT LONG-TERM GROWTH OPPORTUNITY Opportunity in growing $30B* fragmented global casual sandal market with no clear market leader Crocs has had a consistent track record of growth and grew sandal revenues by 10% in 2019 to ~22% of footwear sales - 3rd consecutive year of double-digit growth The key drivers of sandal growth are: - Marketing investment to support sandal awareness - Higher purchase frequency of product to address multiple wearing occasions. - Targeting female explorers crocs™ *Internal estimate ∞o#9● INVEST IN NEW, VISIBLE COMFORT TECHNOLOGY Our LiteRide ™M collection, featuring foam footbeds, is a top 5 franchise for Crocs Lite Ride TM comfort technology will be leveraged in other collections including Brooklyn sandals and Crocs@Work TM We will unveil the LiteRide ™M 2.0 collection in 2021 as our next iteration of this comfort franchise crocs™ 9#10● ● PERSONALIZATION WITH JIBBITZ CHARMS Personalization is a global megatrend that drives relevance for the Crocs brand Jibbitz ™ provide consumers with a fun and unique way to personalize their clogs and sandals at point of purchase The effect we see is an overall increase in clog and sandal sales crocs™ C TOHLSO GIRLS GHEO TELL YOUR STORY AD KS love Gleis Girls GIRLS 10#11A STRATEGY DESIGNED TO DRIVE BRAND HEAT ● crocs™ CELEBRITIES MASS INFLUENCERS INTEREST-BASED INFLUENCERS UGC & EMPLOYEES DRIVES MASS REACH DRIVES MASS ENGAGEMENT DRIVES BRAND RELEVANCE DRIVES TRUST + LOCAL WOM #7 among all teens as a preferred footwear brand, up from 13 last year and 27 two years ago in the Fall 2019 Piper Jaffray Taking Stock with Teens Survey Brand desirability, brand relevance and brand consideration each rose double digits over 2018 in our annual brand survey; also averaged double digit growth across those same metrics over the past three years 11#12OUR GROWTH WILL BE IGNITED BY POWERFUL GLOBAL SOCIAL & DIGITAL MARKETING ● ● ● ● 2020: year 4 of "Come As You Are" - the evolution will continue Priyanka Chopra-Jonas and Yang Mi joined as brand ambassadors Focusing on driving clog relevance and sandal awareness Expanding digital reach and engagement in top five markets through increased investment Driving further brand heat and relevance through collaborations Improving social engagement through locally relevant platforms crocs™ BRAND AMBASSADORS COLLABORATIONS 12#13● DTC WILL BE LED BY E-COMMERCE GROWTH & OUTLETS E-commerce: Drive elevated consumer experience and more effective digital marketing Investment in people and technologies to execute e-commerce growth roadmap Marketplaces: Expand direct participation in leading global marketplaces - Controlling and elevating brand representation Retail: Prioritize outlet as growth vehicle Outlet merchandising strategy has been repositioned to majority "Built for Outlet" assortments Focus on the Americas, plus key outlet centers in Europe, Japan, and China crocs™ Americas Asia ΕΜΕΑ Total DTC Comps 2019 21.0% 5.6% 13.3% 16.0% 13#14● E-TAIL AND DISTRIBUTORS DRIVE WHOLESALE E-tailers and distributors represent approximately half of the global wholesale business. Multibrand E-tailers are gaining share globally Crocs: achieving consistent double-digit E- tail growth with elevated brand representation, clear product segmentation, and on-site marketing investment Distributors represent Crocs in large but often underpenetrated markets. - Strong portfolio of leading distributors. Close alignment to Crocs product and marketing strategies crocs™ DISTRIBUTOR FOOTPRINT Region Americas Asia EMEA # of distributors* 8 15 20 *Excludes partners operating stores in Company-operated countries 14#15Asia Greatest growth opportunity long-term Increase brand recognition and drive clog relevance in China with new Tier 1 celebrity, Yang Mi Multichannel growth in Japan and South Korea Strong E-commerce growth supported by participation on key marketplaces Americas - The largest region Maximize clog growth and expand sandal penetration at wholesale Leverage leading position with major E-tailers Continue strong E-commerce growth ● ● ● ● ● ASIA IS LARGEST GROWTH OPPORTUNITY EMEA - The most diverse region Maximize Digital Commerce with a focus on E-tail and marketplaces Drive wholesale growth through distributors ● ● crocs™ MAKE IT A CLASSIC YANG MI GLOBAL BRAND AMBASSADOR OF CROCS CLASSIC CLOG 15#16FINANCIAL INFORMATION crocs™ 16#17HISTORICAL FINANCIAL RESULTS A very successful year: Record revenues - 13% growth to a record of $1.2B despite store closures and currency reducing revenues by ~$45M ● ● ● ● FULL YEAR 2019 Improved the quality of revenues - Fewer and narrower promotions and less liquidation Simplified the business to reduce costs - Right-sized store fleet and associated overhead - Closed owned manufacturing facilities • 10.5% EBIT margin*, up ~470 bps; achieved goal of double-digit operating margins Repurchased 6.1M common shares on the open market for $147.2M; average cost/share of $24.20 crocs™ P A great fourth quarter: Record Revenues: $263.0M up 21.8% - Up 24% on a constant currency basis and excluding impact of store closures ● ● Q4 2019 ● Adjusted Gross Margin*: 49.3%, +310bps - Benefits from favorable product mix, lower levels of promotions and discounts, increased volume helping to leverage fixed cost. Partially offset by higher distribution center cost in the US related to the start up of the new distribution center - GAAP Gross Margin of 48.0%; 130 bps of non-recurring costs associated with relocation of our Americas and Netherlands DCs Adjusted SG&A*: 44.4% of revenues, 620bps improvement Adjusted Operating Margin* at 4.9% vs. a 4.3% loss in 2018. Adjusted EPS* rose to $0.12 from a loss of $0.10 last year * See reconciliation to GAAP equivalents in Appendix 17#18Q1 2020 FINANCIAL GUIDANCE (ISSUED 02/27/20) ● Q1 Revenues: $305M - $325M (up 3.1% -9.8%) vs. $296M in Q1 19 - Expecting a negative currency impact of -$3M; and - Estimated negative impact from coronavirus in Asia region of $20M-$30M ● • Q1 Operating margin to be between 9-12% compared to 11.0% in Q1 19 - ~$3M of one-time expenses for store closures and other provisions in Asia crocs™ 18#19FULL YEAR 2020 FINANCIAL GUIDANCE (ISSUED 02/27/20) ● FY Revenues: Up 8-12% vs $1,231M in 2019 Expecting a negative currency impact of ~$10M; and - Estimated negative impact from coronavirus in Asia region of $40M-$60M ● - • FY Operating margin to be between 11-13% vs. 10.5% in 2019 Estimated adjustments of $3.0M for the new distribution center in the Netherlands; and ~$5.0M of one-time expenses for store closures and other provisions in Asia • FY Interest expense of $9M FY Income tax rate of ~17%, excluding the utilization of any discrete tax benefits • FY Capital expenditures to be between $50-$60M crocs™ 19#20IN 2020, WE WILL BE CHANGING HOW WE REPORT ON OUR DIRECT-TO-CONSUMER AND DIGITAL BUSINESSES ● FROM: Separate reporting for: ● ● E-Commerce Revenue and Comps Owned Retail Revenue and Comps crocs™ ● TO: Combined reporting on Direct-to-Consumer that will include both E-commerce and Retail Reporting on % Digital revenue which will include Crocs.com, Marketplaces, and E-tail We believe this shift will better reflect how we strategically think about future growth channels for Crocs 20#21KEY INVESTMENT CONSIDERATIONS crocs™ 21#22KEY INVESTMENT CONSIDERATIONS An unmistakable icon recognized around the world Management team with deep industry experience and essential skills crocs™ A powerful global brand with a large, democratic consumer base V 1 One of the world's 10 largest non-athletic footwear brands ● alk We are confident that our strategic plan will drive long-term, sustainable growth Growing revenues to drive a sustainable, profitable business model Projected to grow operating margin in 2020 and beyond. Strong balance sheet 22#23APPENDIX crocs™ 23#24NON-GAAP RECONCILIATION Non-GAAP cost of sales and gross margin reconciliation: GAAP revenues GAAP cost of sales New distribution centers (1) Other Total adjustments Non-GAAP cost of sales GAAP gross margin GAAP gross margin as a percent of revenues $ crocs™ $ $ $ Three Months Ended December 31, $ 2019 262,979 $ 136,741 (3,413) 84 (3,329) 133,412 $ $ 126,238 $ 48.0% 2018 (in thousands) 215,989 $ 129,567 $ 116,167 $ 116,167 $ 99,822 $ 46.2% Year Ended December 31, 2019 99,822 $ 1,230,593 $ Non-GAAP gross margin Non-GAAP gross margin as a percent of revenues 49.3% 46.2% 51.1% (1) Primarily represents expenses related to our new distribution centers in Dayton, Ohio and Dordrecht, the Netherlands. 617,056 $ 613,537 $ (11,394) (91) (11,485) 602,052 $ 528,051 50.1% 2018 628,541 $ 1,088,205 528,051 560,154 51.5% 560,154 51.5% Non-GAAP selling, general and administrative expenses reconciliation: GAAP revenues (4) $ GAAP selling, general and administrative expenses Closure of manufacturing and distribution facilities (1) Non-recurring expenses associated with cost reduction initiatives (2) Accelerated depreciation of assets (3) Offering fees (4) Total adjustments Non-GAAP selling, general and administrative expenses (5) GAAP selling, general and administrative expenses as a percent of revenues $ Non-GAAP selling, general and administrative expenses as a percent of revenues $ Three Months Ended December 31, 2019 262,979 117,882 (584) $ 44.8% $ (589) (1,173) 116,709 $ 113,759 2018 (in thousands) 215,989 $ 1,230,593 $ 1,088,205 (741) (2,509) (1,306) (4,556) 109,203 $ 52.7% $ Year Ended December 31, 2018 50.6% 2019 488,407 (2,282) $ (589) (2,871) 485,536 $ 39.7% 497,210 (13,712) (6,082) (1,306) (21,100) 476,110 45.7% 44.4% 39.5% (1) Represents non-recurring expenses associated with the 2018 closures of Mexico and Italy manufacturing and distribution facilities. (2) Represents non-recurring expenses associated with cost reduction initiatives in 2019 and our SG&A reduction plan in 2018. (3) Represents non-recurring expenses related to the relocation of the Crocs corporate headquarters planned for March 2020. (4) Represents fees associated with the November 4, 2019 underwritten public offering, in which certain investment funds affiliated with The Blackstone Group Inc. sold 6.9 million shares of the Company's stock to Morgan Stanley & Co. LLC. The Company did not receive any proceeds from this sale. (5) Non-GAAP selling, general and administrative expenses are presented gross of tax. 43.8% 24#25NON-GAAP RECONCILIATION (CONT'D) Non-GAAP income (loss) from operations and operating margin reconciliation: Three Months Ended December 31, GAAP revenues GAAP income (loss) from operations Non-GAAP cost of sales adjustments (¹) Non-GAAP selling, general and administrative expenses adjustments (2) Non-GAAP income (loss) from operations GAAP operating margin Non-GAAP operating margin $ crocs™ $ $ 2019 262,979 $ 8,356 3,329 1,173 12,858 3.2% 4.9% $ $ 2018 (13,937) (in thousands) 215,989 $ 1,230,593 $ 1,088,205 4,556 (9,381) $ (6.5)% (4.3)% Year Ended December 31, (1) See 'Non-GAAP cost of sales reconciliation' above for more details. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more details. 2019 $ 128,649 $ 11,485 2,871 143,005 $ 2018 10.5% 11.6% 62,944 21,100 84,044 5.8% 7.7% Non-GAAP income tax expense (benefit) and effective tax rate reconciliation: Three Months Ended December 31, GAAP income (loss) from operations GAAP income (loss) before income taxes Non-GAAP income (loss) from operations (¹) GAAP non-operating income (expenses): Foreign currency gains (losses), net Interest income Interest expense Other income, net Non-GAAP income (loss) before income taxes GAAP income tax expense (benefit) Tax effect of non-GAAP operating adjustments and benefit of U.S. deferred tax assets previously subiect to valuation allowance (2) Non-GAAP income tax expense GAAP effective income tax rate Non-GAAP effective income tax rate $ $ $ $ $ 2019 8,356 $ 6,220 12,858 (430) 108 (1,893) 79 10,722 (13,693) $ (220.1)% 19.5% $ $ 15,781 2,088 $ 2018 (in thousands) (13,937) $ (14,016) (9,381) $ (269) 434 (584) 340 (9,460) $ (3,130) $ (3,130) $ 22.3% 33.1% Year Ended December 31, 2019 128,649 $ 119,322 143,005 $ (1,323) 601 (8,636) 31 133,678 $ (175) $ 18,244 18,069 $ (0.1)% 13.5 % 2018 (¹) See 'Non-GAAP income (loss) from operations and operating margin reconciliation' above for more details. (2) Prior to the quarter ended December 31, 2019, non-GAAP operating adjustments were in jurisdictions subject to a full valuation allowance, and thus had no net tax impact. 62,944 65,157 84,044 1,318 1,281 (955) 569 86,257 14,720 14,720 22.6% 17.1% 25#26NON-GAAP RECONCILIATION (CONT'D) Non-GAAP earnings per share reconciliation: (¹) Numerator: GAAP net income (loss) attributable to common stockholders $ Preferred share dividends and dividend equivalents (2) Non-GAAP cost of sales adjustments (3) Non-GAAP selling, general and administrative expenses adjustments (4) Pro forma interest (5) Non-GAAP income tax adjustment (6) Non-GAAP net income (loss) attributable to common stockholders Denominator: GAAP weighted average common shares outstanding - basic Plus: GAAP dilutive effect of stock options and unvested restricted stock units in both periods and Series A Preferred in 2018 GAAP weighted average common shares outstanding - diluted GAAP weighted average common shares outstanding - basic Non-GAAP weighted average converted common shares outstanding adjustment (7) Non-GAAP weighted average common shares outstanding basic (8) Plus: dilutive effect of stock options and unvested restricted stock units (9) Non-GAAP weighted average common shares outstanding diluted (10) crocs™ $ Three Months Ended December 31, 2019 2019 2018 (in thousands, except per share data) 19,913 $ (118,685) $ 107,799 3,329 1,173 (15,781) 8,634 $ 68,441 1,402 69,843 4,556 (1,407) (7,737) $ 69,010 69,010 69,010 4,723 73,733 Year Ended December 31, 73,733 119,497 $ 11,485 2,871 (18,244) 115,609 $ 70,357 1,414 71,771 2018 (69,216) 119,653 21,100 (5,628) 65,909 68,421 68,421 68,421 6,349 74,770 1,936 76,706 GAAP net income (loss) per common share: Basic Diluted Non-GAAP net income (loss) per common share: Basic (11) Diluted (12) $ $ $ $ Three Months Ended December 31, 2019 2018 2019 (in thousands, except per share data) 0.29 S 0.29 $ 0.13 $ 0.12 $ (1.72) $ (1.72) $ Year Ended December 31, 2018 (0.10) $ (0.10) $ 1.70 $ 1.66 $ 1.64 $ 1.61 $ (1.01) (1.01) 0.88 0.86 (¹) Non-GAAP earnings per share calculation for the three months and year ended December 31, 2018 assumes the repurchase and conversion of the Series A Convertible Preferred Stock occurred on December 31, 2017 ("the Conversion"). (2) Adjustment adds back dividends and dividend equivalents for Series A Convertible Preferred Stock in calculating non -GAAP net income attributable to common stockholders for the three months and year ended December 31, 2018. (3) See 'Non-GAAP cost of sales and gross margin reconciliation' above for more information. (4) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information. (5) Pro forma interest for the three months and year ended December 31, 2018 assumes borrowings of $120.0 million on were outstan ding for all of 2018 at a rate of 4.69% to partially finance the Conversion. Calculation assumes no repayments and no financing fees. (6) See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information. (7) Adjustment represents the incremental increase in weighted average common shares outstanding for the three months and year en ded December 31, 2018 resulting from the Conversion. (8) Non-GAAP weighted average common shares outstanding - basic for the three months and year ended December 31, 2018 assumes the Conversion. (9) Adjustment reflects the dilutive impact of stock options and restricted stock units for the three months and year ended December 31, 2018. (10) Non-GAAP weighted average common shares outstanding - diluted for the three months and year ended December 31, 2018 assumes the Conversion. (11) Non-GAAP net income (loss) per common share - basic for the three months and years ended December 31, 2019 and 2018 uses the non- GAAP income (loss) attributable to common stockholders and for the year ended December 31, 2018 assumes the Conversion. (12) Non-GAAP net income (loss) per common share - diluted for the three months and years ended December 31, 2019 and 2018 uses the non-GAAP income (loss) attributable to common stockholders and for the year ended December 31, 2018 assumes the Conversion. 26#27تار crocs™ 1 E