#1Cr CS cr OCS CI OC! crocs™ Investor Presentation February 2023 333 1000#2Cr CS cr OCS CI OC! FORWARD-LOOKING STATEMENT 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 Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements regarding potential impacts to our business related to our supply chain challenges, cost inflation, our financial condition, brand and liquidity outlook, and expectations regarding our future revenue, margins, non- GAAP adjustments, tax rate, earnings per share, debt ratios and capital expenditures, the acquisition of HEYDUDE and benefits thereof, Crocs' strategy, plans, objectives, expectations (financial or otherwise) and intentions, future financial results and growth potential, statements regarding full year and first quarter 2023 financial outlook and future profitability, cash flows, and brand strength, anticipated product portfolio and our ability to deliver sustained, highly profitable growth and create significant shareholder value. These statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results, performance, or achievements to be materially different from any future results, performances, or achievements expressed or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to, the following: our expectations regarding supply chain disruptions; the COVID-19 pandemic and related government, private sector, and individual consumer responsive actions; cost inflation; current global financial conditions, including economic impacts resulting from the COVID-19 pandemic; the effect of competition in our industry; our ability to effectively manage our future growth or declines in revenues; changing consumer preferences; our ability to maintain and expand revenues and gross margin; our ability to accurately forecast consumer demand for our products; our ability to successfully implement our strategic plans; our ability to develop and sell new products; our ability to obtain and protect intellectual property rights; the effect of potential adverse currency exchange rate fluctuations and other international operating risks; and other factors described in our most recent Annual Report on Form 10-K under the heading "Risk Factors" and our subsequent filings with the Securities and Exchange Commission. Readers are encouraged to review that section and all other disclosures appearing in our filings with the Securities and Exchange Commission. All information in this document speaks as of February 16, 2023. We do not undertake any obligation to update publicly any forward- looking statements, whether as a result of the receipt of new information, future events, or otherwise, except as required by applicable law.#3Cr CS cr CS C Oc C CONTENTS O O O O O BUSINESS & FINANCIAL HIGHLIGHTS UPDATE ON SELECT GROWTH DRIVERS BRAND PERFORMANCE FINANCIAL OUTLOOK APPENDIX#4Cr CS cr OC! CI OC C OUR VISION | SP-1-1-1 Everyone Comfortable In Their Own Shoes#5Cr CS cr OCS CI OC! OUR VALUES THE PATH WE CHOOSE TO WALK DELIGHTFULLY DEMOCRATIC We celebrate one-of-a-kinds. and stand together with all different kinds. IMAGINATIVE INNOVATION We stretch the possibilities of design and creative thinking so you can reach your highest potential. PEOPLE-PURPOSED DESIGN We think people-first at every step. We design for everything you do and everywhere you go. UNAPOLOGETIC OPTIMISM We make a choice every day to have an open mind and look on the bright and colorful side. INHERENT SIMPLICITY We know smart doesn't have to mean complicated. So we keep things simple, light, and totally intuitive. CONFIDENTLY COMFORTABLE We support comfort on every level, because when you're comfortable, you can do anything.#6Cr CS cr OCS CI OC! OUR STORY CROCS INC. IS A PROVEN GROWTH COMPANY Entrepreneurial Phase 2002 - 2006 Classic clog is born in 2002 and gains broad popularity for its comfort, utility, and unique look In 2006, completed largest footwear IPO in U.S. history at that time Acquired Jibbitz, increasing personalization 764140 Overextension 2008 to 2013 Over diversified product line (e.g., golf shoes and leather boots) and little investment in the iconic clog led to low brand relevance and subpar gross margins Disparate go to market created many subscale geographies Over extension of global retail fleet to 600+ stores in 2013 No cohesive global marketing strategy High cost base (SG&A 47% of revenues) ● ● ● ● Announced intention to refine strategy and earnings growth through simplification and focus Shrunk revenue to get to a profitable base O O Under Rees' leadership, transformed the Crocs brand: Consumer-centric brand strategy to drive relevance Implemented global brand marketing playbook focusing on driving relevance for iconic Clog Shifted to digital-only marketing for scale and efficiency Leveraged influencers and partnerships and launched first collaboration in 2017 with Christopher Kane O O O O Iconic, focused product offering Focused on clogs, sandals and Jibbitz Introduced seasonally relevant graphics and prints to drive clog purchases O Transformation & Brand Re-ignition 2014 to 2017 O Improved gross margin 50% SKU reduction O Blackstone invested $200M to fund share repurchase and bring in new leadership with industry experience Appointed Andrew Rees as President O O Continued shift to molded product Closed owned manufacturing facilities Flexible SG&A base Cut $80M in fixed expenses, reinvesting a portion back into marketing Reduced store count from 600+ to <400, and focused on profitable outlets Transitioned sub-scale direct markets to distributors ● ● ● Profitable Growth 2018 to Present 2018 begins a 5 year run of double-digit revenue growth, finishing 2022 with record revenues of $3.6B ● Relevance for the Crocs brand has increased 34% and consideration increased 69% Achieved double-digit operating margin target in 2019 and expanded adjusted margin to 28% in 2022 Expanded adj. gross margin for the Crocs brand 510 bps supported by shift to molded product and Jibbitz Increased Crocs brand marketing spend from $70M to ~$190M Repurchased ~$1.7B of shares since 2014 at average price of $37.90 per share Outlined growth strategy for the Crocs Brand including: sandals, Asia, digital and product & marketing innovation Announced commitment to net zero carbon emissions Acquired casual footwear brand HEYDUDE DUDE GOOD TO GO-TO#7Cr CS cr OCS CI OC! OUR RESULTS MARKET LEADING SHAREHOLDER RETURNS $1,200 $1,000 $800 $600 $400 $200 VALUE OF $100 INVESTED DECEMBER 31, 2017 Crocs, Inc. Dow Jones US Footwear Index -Nasdaq Composite Index 54% five-year annualized TSR S&P 500 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2017 2018 2019 2020 2021 2022 CROCS INC. 5-YEAR TSR #2 BEST PERFORMER HAD WE BEEN IN S&P 500#8Cr CS cr CS CI oc CI UNB 43DB QB BUSINESS & FINANCIAL HIGHLIGHTS B P#9Cr CS cr OCS CI OC! BUSINESS & FINANCIAL HIGHLIGHTS "I Consumer demand for the Crocs and HEYDUDE brands has been exceptional, fueling record 2022 revenues for both brands at a combined $3.6 billion. and top-tier adjusted operating margin of 28%. and We anticipate another record year in 2023 with growth expected to expected to be led by sandals international for the Crocs Brand and increased US market penetration for HEYDUDE." - Andrew Rees, CEO#10Cr CS cr OCS CI OC! BUSINESS & FINANCIAL HIGHLIGHTS Q4 2022 REVENUE GROWTH SUMMARY $945M Crocs, Inc. +61% / 65% CC (1) +23% Crocs Brand Digital Sales CC Growth (1.3) $666M Crocs Brand +14% / 17% CC (1) 19% Crocs Brand DTC Comp Growth (²) 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 2. See further details in Appendix for DTC comparable sales definition. 3. Digital sales include Crocs.com, heydude.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). $279M HEYDUDE Brand +34% 45% Digital Penetration (3) 10#11Cr CS cr CS CI OC! BUSINESS & FINANCIAL HIGHLIGHTS Q4 2022 FINANCIAL HIGHLIGHTS Revenues ($M) Gross Margin Adjusted Gross Margin (2) Adjusted SG&A as % of Revenue (2) Operating Margin Adjusted Operating Margin (2) Diluted EPS Adjusted Diluted EPS (2) 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 2. See reconciliation to GAAP equivalents in Appendix. Q4 $945.2 52.5% 53.3% 27.3% 23.3% 26.0% $2.20 $2.65 B/(W) vs. PY 65% (1) (1,090) bp (1,040) bp 780 bp (400) bp (260) bp (14)% +23% 11#12Cr CS cr CS CI OC! BUSINESS & FINANCIAL HIGHLIGHTS 2022 REVENUE GROWTH SUMMARY 1. 2. 3. 4. $3.55B Crocs, Inc. +54% / 58% CC (1) +22% Crocs Brand Digital Sales CC Growth (1.4) $2.66B Crocs Brand +15% / 19% CC (1) 15% Crocs Brand DTC Comp Growth (3) (2) $896M / $986M PF HEYDUDE Brand +54% / +70% PF(1) 38% Digital Penetration (4) Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. Pro forma ("PF") includes HEYDUDE for the period prior to acquisition close (assuming the acquisition had closed on the first day of such trailing twelve month period). For the period following the closing of the acquisition on February 17, 2022. See further details in Appendix for DTC comparable sales definition. Digital sales include Crocs.com, heydude.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). 12#13Cr CS cr CS CI OC! BUSINESS & FINANCIAL HIGHLIGHTS FY2022 REVENUE BREAKDOWN 1. 2. Geography (¹) EMEALA 20% Asia Pacific 18% HEYDUDE 25% Brand O 62% O North America Crocs 75% Other Casual 43% Digital Penetration (2) O Product Penetration O Digital 38% Clogs 57% Geography is for Crocs Brand only. Digital sales include Crocs.com, heydude.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). WHL 55% Channel DTC 45% O 13#14Cr CS cr OCS CI OC! BUSINESS & FINANCIAL HIGHLIGHTS 2022 FINANCIAL HIGHLIGHTS Revenues ($B) Gross Margin Adjusted Gross Margin (2) Adjusted SG&A as % of Revenue (2) Operating Margin Adjusted Operating Margin (2) Diluted EPS Adjusted Diluted EPS (2) 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 2. See reconciliation to GAAP equivalents in Appendix. 2022 $3.55 52.3% 54.4% 26.7% 23.9% 27.7% $8.71 $10.92 B/(W) vs. PY +58% (1) (910) bp (720) bp 490 bp (560) bp (240) bp (24)% +31% 14#15Cr CS cr CS CI oc CI SPAR UNB 43DB QB UPDATE ON SELECT GROWTH DRIVERS B#16Cr CS cr OCS CI OC! GROWTH DRIVERS IMPORTANCE OF SANDALS TO THE CROCS BRAND $30B global footwear category Our molded technologies, accessible price points, and strong go-to-market should allow us to compete effectively • Additional entry point for the Crocs Brand High purchase frequency • Crocs Brand sandal consideration is on ● par with that of clogs ● ● ● Crocs has a sizeable business, with 2022 sandal revenues of ~$310M FOMO 99089 W www 300 16#17Cr CS cr OCS CI OC! GROWTH DRIVERS EXPECT STRONG SANDAL GROWTH IN 2023 We expect strong sandal growth for the Crocs Brand in 2023 due to: ● ● ● Planned newness, such as: Additional height O • New uppers in popular Brooklyn style New Mellow flip O O Significant increase in sandal-specific marketing Strong brand trajectory in important sandal markets (e.g., India, Southeast Asia) Crocs Brand Sandal Revenues - $310M 2022 29% Growth -$400M 2023E 17#18cr CS cr OCS CI OC! GROWTH DRIVERS FOCUS ON 4 KEY CATEGORIES TO DRIVE GROWTH EVERYDAY Broad-reaching, iconic franchises with opening price points, personalization and longer lifecycles S STYLE Trend-driven with extended price points and shorter lifecycles with a focus on females SPORT/STREET Culturally relevant, rooted in street style and innovation with a focus on him, inclusive of her ADVENTURE Functional design leveraging Crocs brand heritage with extended price points and a focus on the full family 18#19Cr CS cr OCS CI OC CI 1. GROWTH DRIVERS GROWING CROCS BRAND MOMENTUM INTERNATIONALLY CC GROWTH (1) Asia Pacific Revenues ($M) $279 FY20 19% CAGR $350 FY21 +22% $474 FY22 +47% EMEALA Revenues ($M) Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. $275 FY20 25% CAGR $409 FY21 +46% $541 FY22 +47% EIGHT CONSECUTIVE QUARTERS OF DOUBLE-DIGIT INTERNATIONAL REVENUE GROWTH 19#20Cr CS cr OCS CI OC GROWTH DRIVERS CROCS PRODUCT & MARKETING INNOVATION JING DAILY Clogcore: The "ugly shoe" that became cool In 2023 we expect: Record new product introductions Strong pipeline of 60+ global brand partnerships across a healthy mix of celebrities, mega brands and licenses- of which -25% will be regionally led ● ● • Invest a record amount of marketing over $200M - to drive relevance, amplify our products and engage and acquire customers Source: Jing Daily and salehebembury on Instagram. N 自然新季 OHARR 916 dents SANKUANZ coorbel crocs 780012454 Trave Crocs has earned cultural credibility through partnerships with brands like actor Bai Jingting's Goodbai (left). Photo: Crocs Clogcore isn't a meme, it's a movement. Shoes that were once seen as categorically uncool or worn ironically, like the Crocs Classic Clog, are now at the center of a cultural wave. Spurred by the early pandemic days of working at home and the revival of Y2K (Crocs came about in 2002), the slip-on style is all about effortless comfort and convenience. The trend has gained momentum in China through celebrities such as Justin Bieber, Ouyang Nana, and Yang Mi, as well as Crocs' collaborations with Salehe Bembury, Balenciaga and local brands like Chinese actor's Ba Jingting's brand Goodbai and Melting Sadness. Other labels have even launched their own clogs in recent years: There's the Yeezy Foam Runner, Nike's Jordan System.23 Clog, Prada's Foam Runner Mule, and Adidas' adiFOM Q to name a few. Cute, chunky and customizable, the Clogs hashtag # has 61.4 million views on Xiaohongshu, with many users sharing their own DIY creations. 20#21Cr CS cr CS CI OC: 1. 2. CI HEYDUDE PROGRESS Grew revenue 70% to $986M (1) by expanding distribution in the US with large, important wholesale partners • Staffed the entire leadership team and hired over 150 roles Stabilized and expanded the manufacturing footprint Developed a business systems roadmap Expanded distribution capabilities to handle the immediate throughput needs • Turned over many international distributors Expanded the line with several new icons to be trialed in 2023 Updated the brand identity and clarified its purpose and meaning ● ● GROWTH DRIVERS ● Spent nearly $60 million of marketing in H2'22, which on an annualized basis was almost 4x the 2021 spend (2) 1440 Revenue growth on a Pro forma basis, which includes HEYDUDE for the period prior to acquisition close (assuming the acquisition had closed on the first day of such trailing twelve month period). 2021 spend was prior to Crocs, Inc. ownership ATH 21#22Cr CS cr CS CI oc CI BRAND PERFORMANCE UNB 4300 QB عمد JE B P#23Cr CS cr CS CI OC! BRAND PERFORMANCE CROCS BRAND Q4 HIGHLIGHTS ● ● Revenues +17% CC vs. PY (1) ● ● ● Celebrated 20 Years of Crocs Fandom in Croctober with giveaways, product launches, and a Croc Day Party in the Metaverse • Crocs named Second Fastest Growing Brand by Morning Consult Adj. Gross Margin decreased ~760 bp driven by ~340 basis points of promotions, 180 basis points of inflationary costs, and -180 basis points of higher freight and inventory handling costs. Currency negatively impacted gross margin by 70 basis points 1. 2. ● North America DTC comparable sales +13% (1) EMEALA +76% CC vs. PY (1) Asia Pacific +75% CC vs. PY (1) Revenues Adj. Gross Margin (2) Adj. SG&A as % of Revenue (2) Adj. Operating Margin (2) Q4'2022 $666M 56.1% 24.2% 31.9% B/(W) vs. PY +17.2% (1) (760) bp 210 bp (550) bp SALEHE BEMBURY. VERENKORY LUKE GOMBS X crocs Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. See reconciliation to GAAP equivalents in Appendix. SEA crocs JIMMY Kimmel x crocs 23#24Cr CS cr CS CI OC! BRAND PERFORMANCE CROCS BRAND Q4 REVENUE GROWTH Geography Channel +0.3% North America +22% Digital Sales CC Growth (1,2) +59% / 75% CC (1) +60% /76% CC (1) Asia Pacific +19% DTC Comparable Growth (³) 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 2. Digital sales include Crocs.com, heydude.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). 3. See further details in Appendix for DTC comparable sales definition. EMEALA +13% Wholesale CC Growth (1) 24#25Cr CS cr OCS CI OC! BRAND PERFORMANCE CROCS BRAND Q4 REVENUE BREAKDOWN Digital Penetration (1) EMEALA 18% North America 68% Digital 42% O O Asia Pacific 14% Geography 1. Digital sales include Crocs.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando) WHL 43% Channel DTC 57% 25#26Cr CS cr CS CI OC! BRAND PERFORMANCE CROCS BRAND FY HIGHLIGHTS ● ● ● ● Revenues +19% CC vs. PY (1) North America DTC comparable sales +12% (1) EMEALA +47% CC vs. PY (1) Asia Pacific +47% CC vs. PY (1) Launched innovative digital marketing campaigns with several collaborators, like Karol G, Spotify, and many others O O Crocs named "Accessories Product of the Year" by Universal for our Jurassic World collection Adj. Gross Margin decreased 500 bp driven by ~220 basis points of air freight investment, ~190 basis points of higher freight and inventory handling costs and ~150 basis points of inflationary costs. Currency negatively impacted gross margin by ~90 basis points. 1. 2. Revenues Adj. Gross Margin (2) Adj. SG&A as % of Revenue (2) Adj. Operating Margin (2) FY 2022 $2.7B 56.7% 23.7% 33.0% B/(W) vs. PY +19.4% (1) (500) bp 40 bp (450) bp 2 Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. See reconciliation to GAAP equivalents in Appendix. 26#27Cr CS cr CS CI OC! BRAND PERFORMANCE CROCS BRAND FY REVENUE GROWTH Geography Channel +6% North America +22% Digital Sales CC Growth (1,2) +35% / 47% CC (1) +32% / 47% CC (1) Asia Pacific +15% DTC Comparable Growth (³) 1. Revenue growth on a constant currency basis, which is a Non-GAAP Financial Measure. See further details in Appendix. 2. Digital sales include Crocs.com, heydude.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). 3. See further details in Appendix for DTC comparable sales definition. EMEALA +23% Wholesale CC Growth (1) 27#28Cr CS cr OCS CI OC! BRAND PERFORMANCE CROCS BRAND FY REVENUE BREAKDOWN Digital Penetration (¹) EMEALA 20% North America 62% O O Asia Pacific 18% Geography Digital 38% 1. Digital sales include Crocs.com, third-party market places (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando) WHL 52% Channel DTC 48% 28#29Cr CS cr OCS CI OC BRAND PERFORMANCE HEYDUDE BRAND Q4 HIGHLIGHTS ● ● 1. 2. 3. 4. Q4 Revenues of $279M exceeded our initial guidance Revenue growth of +34% vs PY O Brand awareness +53% from Q2 to Q4 (3) Impacted by investment in media spending as well as strong traction in the family channel, where we are now a top 5 brand Over 1MM engaged followers (4) Revenue Adj. Gross Margin (1) SG&A as % of Revenue (2) Adj. Operating Margin (1) Q4'2022 $279M 47.2% 19.5% 27.7% See reconciliation to GAAP equivalents in Appendix Non-GAAP SG&A adjustments were not made within the HEYDUDE brand From Crocs MOTO Brand Tracker study Aggregate of all social media channels (i.e., Meta, Tik Tok, Instagram, Twitter, etc) HEY DUDE 29#30Cr CS cr OCS CI OC! BRAND PERFORMANCE HEYDUDE BRAND FY HIGHLIGHTS • FY Revenues of $896M exceeded previous guidance. • Revenue growth of +54% vs PY O • Introduced an updated brand identity and launched new HEYDUDE brand campaign ● Brand began rollout of influencer strategy with a portfolio of partners Continuing to expand wearing occasions with sneaker silhouettes and the introduction of new colors & prints Revenue Adj. Gross Margin(1) SG&A as % of Revenue (2) Adj. Operating Margin (1) FY 2022 $896M 48.0% 17.2% 30.8% 1. See reconciliation to GAAP equivalents in Appendix 2. Non-GAAP SG&A adjustments were not made within the HEYDUDE brand 30#31Cr CS cr CS CI oc CI FINANCIAL OUTLOOK UNB 4300 QB عمد JE B P#32cr CS cr OCS CI OC FINANCIAL OUTLOOK 2023E GUIDANCE (numbers on reported basis, unless otherwise noted) Total Revenues crocs™ HEY DUDE GOOD TO GO-TO Adjusted Operating Margin (³) Adjusted One Time Costs (4) Adjusted Tax Rate (3) Adjusted Diluted EPS (³) Capital Expenditures Q1 2023E 27% to 30% Double-digit growth 24% to 25% ~ $10M $2.06 to $2.19 FY 2023E 10% to 13% (1,2) 6% to 8%; 9% to 11% CC (1) Mid-20% growth on a reported basis -26% 1. Crocs Inc. expected revenue growth at current currency rates, which is a Non-GAAP Financial Measure. See further details in Appendix For FY 2023E of approximately 10% to 13% implies expected revenues of $3.9 to $4.0B at current currency rates. 2. 3. See reconciliation to GAAP equivalents in Appendix. 4. Non-GAAP adjustments include an expected: $30 million of costs primarily related to capital investments to support growth, and to be fairly balanced across COGS and SG&A. ~ $30M -20% $11.00 to $11.31 $165M to $180M 32#33Cr CS cr OCS CI OC! FINANCIAL OUTLOOK CAPITAL ALLOCATION PRIORITIES Business Investment Invest to support long-term, profitable growth Deleverage to <2.0x Gross Leverage by Mid-2023 Committed to working towards deleveraging quickly Balance Deleveraging and Share Repurchase Long-term target of 1.0-1.5x net leverage 33#34Cr CS cr OCS CI OC! FINANCIAL OUTLOOK DELEVERAGING REMAINS ON TRACK Gross Debt / Adjusted EBITDA Outlook (¹) O Committed to quickly deleveraging and targeting to be below 2.0x gross leverage by mid-year 2023 • Share repurchases on O hold until gross leverage is <2.0x, which we expect to occur by mid-2023 Net Debt/Adj. EBITDA (2) 1.1x 0.8x YE 2021 3.1x 2.9x PF YE 2021 for HEYDUDE 2.25x 2.1x PF YE 2022 for HEYDUDE 1. Assumes excess free cash flow used to repay borrowings. Gross Debt / Adjusted EBITDA calculated as: Total Gross Debt / Trailing Twelve Months ("TTM") Adjusted EBITDA. a. Adjusted EBITDA calculated as Adjusted Operating Income plus depreciation and amortization. Please refer to Appendix for definition and Non-GAAP reconciliation. b. Pro forma ("PF") includes HEYDUDE for the period prior to acquisition close (assuming the acquisition had closed on the first day of such trailing twelve month period). 2. Net Debt / Adjusted EBITDA calculated as: (Total Gross Debt - Cash and Cash Equivalents) / TTM Adjusted EBITDA, as calculated above. ≤ 2.0x Mid-Year 2023E 34#35Cr CS cr OCS CI OC! OUR RESULTS MARKET LEADING SHAREHOLDER RETURNS $1,200 $1,000 $800 $600 $400 $200 VALUE OF $100 INVESTED DECEMBER 31, 2017 Crocs, Inc. Dow Jones US Footwear Index -Nasdaq Composite Index 54% five-year annualized TSR S&P 500 DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, 2017 2018 2019 2020 2021 2022 CROCS INC. 5-YEAR TSR #2 BEST PERFORMER HAD WE BEEN IN S&P 500#36Cr CS cr CS CI oc CI APPENDIX UNB 130 C QB JE B P#37cr CS cr OCS CI OC! APPENDIX NON-GAAP RECONCILIATION In addition to financial measures presented on the basis of accounting principles generally accepted in the United States of America ("GAAP"), we present "Non-GAAP cost of sales," "Non- GAAP gross profit," "Non-GAAP gross margin," "Non-GAAP gross margin by brand," "Non-GAAP selling, general, and administrative expenses," "Non-GAAP selling, general and administrative expenses as a percent of revenues," "Non-GAAP selling, general and administrative expenses by brand," "Non-GAAP selling, general and administrative expenses as a percent of revenues by brand," "Non-GAAP income from operations," "Non-GAAP income from operations by brand," "Non-GAAP operating margin," "Non-GAAP operating margin by brand," "Non- GAAP income tax expense (benefit)," "Non-GAAP effective tax rate," "Non-GAAP net income," and "Non-GAAP basic and diluted net income per common share," which are non-GAAP financial measures. We also present future period guidance for "Non-GAAP operating margin," "Non-GAAP effective tax rate," and "Non-GAAP diluted earnings per share." Non-GAAP results and guidance exclude the impact of items that management believes affect the comparability or underlying business trends in our condensed consolidated financial statements in the periods presented. We also present certain information related to our current period results of operations through "constant currency," which is a non-GAAP financial measure and should be viewed as a supplement to our results of operations and presentation of reportable segments under GAAP. Constant currency represents current period results that have been retranslated using exchange rates used in the prior year comparative period. We believe the use of constant currency enhances the visibility of the underlying business trends excluding the impact of foreign currency exchange rate fluctuations. Management uses non-GAAP results to assist in comparing business trends from period to period on a consistent basis in communications with the board of directors, stockholders, analysts, and investors concerning our financial performance. We believe that these non-GAAP measures are useful to investors and other users of our condensed consolidated financial statements as an additional tool for evaluating operating performance and trends. For the three months and year ended December 31, 2022, management believes it is helpful to evaluate our results excluding the impacts of various adjustments relating to special or non-recurring items. Investors should not consider these non-GAAP measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Comparable store status, as included in the DTC comparable sales figures, is determined on a monthly basis. Comparable store sales include the revenues of stores that have been in operation for more than twelve months. Stores in which selling square footage has changed more than 15% as a result of a remodel, expansion, or reduction are excluded until the thirteenth month in which they have comparable prior year sales. Temporarily closed stores are excluded from the comparable store sales calculation during the month of closure and in the same month in the following year. Location closures in excess of three months are excluded until the thirteenth month post re-opening. E-commerce comparable revenues are based on same site sales period over period. E-commerce sites that are temporarily offline or unable to transact or fulfill orders ("site disruption") are excluded from the comparable sales calculation during the month of site disruption and in the same month in the following year. E-commerce site disruptions in excess of three months are excluded until the thirteenth month after the site has re- opened. 37#38cr CS cr OCS CI OC APPENDIX NON-GAAP RECONCILIATION Non-GAAP Cost of Sales, Gross Profit, and Gross Margin Reconciliation: Year Ended December 31, GAAP revenues GAAP cost of sales Distribution centers (1) HEYDUDE inventory fair value step-up (2) Inventory reserve in Russia (3) Other Total adjustments Non-GAAP cost of sales GAAP gross profit GAAP gross margin Non-GAAP gross profit Non-GAAP gross margin SA GA $ GA Three Months Ended December 31, 2021 2022 945,162 448,839 (6,162) 590 (1,930) (7,502) 441,337 496,323 52.5 % 503,825 53.3 % (in thousands) 586,626 $ 214,602 (1,705) (1,705) 212,897 372,024 63.4 % 373,729 63.7% $ GA $ 2022 3,554,985 1,694,703 (11,058) (62,238) 390 (1,930) (74,836) 1,619,867 1,860,282 52.3 % 1,935,118 54.4 % GA SA 2021 2,313,416 893,196 (5,836) (5,836) 887,360 1,420,220 61.4 % 1,426,056 61.6 % ((1) Represents expenses, including expansion costs and duplicate rent costs, primarily related to our distribution centers in Dayton, Ohio, Dordrecht, the Netherlands, and Las Vegas, Nevada. (2) Primarily represents a step-up of HEYDUDE inventory costs to fair value upon the close of the acquisition on February 17, 2022. (3) Represents the net impact of an inventory reserve expense in our EMEALA segment associated with the shutdown of our direct operations Russia. 38#39Cr CS cr OCS CI OC! APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation: GAAP revenues GAAP selling, general and administrative expenses HEYDUDE acquisition and integration costs (1) Impact of shutdown of Russia direct operations (2) Duplicate headquarters rent (3) Other (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, 2022 2021 945,162 276,271 (4,992) (8,489) (973) (3,782) (18,236) 258,035 29.2 % 27.3 % $ (in thousands) 586,626 212,036 (6,362) (6,362) 205,674 36.1 % 35.1 % 2022 Year Ended December 31, $ 3,554,985 $ $ 1,009,526 (38,197) (14,286) (3,348) (4,909) (60,740) 948,786 28.4 % 26.7 % 2021 $ 2,313,416 $ 737,156 (6,362) (6,362) 730,794 (1) Represents costs related to the acquisition and integration of HEYDUDE, including legal, professional, consulting, and transaction fees. (2) Represents various costs associated with the continued shutdown of our direct operations in Russia, including the recognition of cumulative translation adjustments into earnings, severance, and lease exit costs and penalties. (3) Represents duplicate rent costs associated with our upcoming move to a new headquarters. (4) Represents costs associated with the implementation of a new enterprise resource planning system. (5) Non-GAAP selling, general and administrative expenses are presented gross of tax. 31.9 % 31.6% 39#40Cr CS cr OCS CI OC APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income from Operations and Operating Margin Reconciliation: GAAP revenues GAAP income from operations Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments (2) Non-GAAP income from operations GAAP operating margin Non-GAAP operating margin $ $ Three Months Ended December 31, 2022 2021 945,162 220,052 7,502 18,236 245,790 23.3% 26.0 % (in thousands) 586,626 $ 159,988 1,705 6,362 168,055 27.3 % 28.6 % $ 2022 Year Ended December 31, 3,554,985 850,756 74,836 60,740 986,332 23.9 % 27.7 % 2021 2,313,416 683,064 5,836 6,362 695,262 29.5% 30.1 % (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more details. (2) See 'Non-GAAP selling, general and administrative expenses and selling, general and administrative expenses as a percent of revenues reconciliation' above for more details. 40#41cr CS cr OCS CI OC! APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income Tax Expense (Benefit) and Effective Tax Rate Reconciliation: Year Ended December 31, GAAP income from operations GAAP income before income taxes Non-GAAP income from operations (1) GAAP non-operating income (expenses): Foreign currency loss, net Interest income Interest expense Other income (loss), net Non-GAAP income before income taxes GAAP income tax expense (benefit) Tax effect of non-GAAP operating adjustments Impact of intra-entity IP transfers (2) Non-GAAP income tax expense GAAP effective tax rate Non-GAAP effective tax rate Three Months Ended December 31, $ $ 2022 220,052 175,569 245,790 4,343 801 (49,801) 174 201,307 37,834 $ 4,629 (6,737) 35,726 $ 21.5% 17.7% $ 2021 (in thousands) 159,988 152,959 168,055 (56) 62 (8,817) 1,782 161,026 $ (1,894) $ 439 33,076 31,621 $ 2022 (1.2)% 19.6 % 850,756 718,508 986,332 3,228 1,020 (136,158) (338) 854,084 178,349 23,418 (25,011) 176,756 24.8% 20.7 % $ $ 2021 683,064 663,849 695,262 (140) 775 (21,647) 1,797 676,047 (61,845) 1,477 206,579 146,211 (9.3)% 21.6% (1) See 'Non-GAAP income from operations and operating margin reconciliation' above for more details. (2) In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. The transfers resulted in a step-up in the tax basis of intellectual property rights and correlated increases in foreign deferred tax assets based on the fair value of the transferred intellectual property rights. This adjustment represents the current period impact of these transfers. The prior year adjustment also includes the release of the valuation allowance as a result of a tax law change. 41#42cr CS cr OCS CI OC APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Earnings Per Share Reconciliation: Numerator: GAAP net income Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments (2) Tax effect of non-GAAP adjustments (3) Non-GAAP net income Denominator: GAAP weighted average common shares outstanding - basic Plus: GAAP dilutive effect of stock options and unvested restricted stock units GAAP weighted average common shares outstanding - diluted GAAP net income per common share: Basic Diluted Non-GAAP net income per common share: Basic Diluted $ $ $ $ $ Three Months Ended December 31, 2021 2022 137,735 7,502 18,236 2,108 165,581 61,747 754 62,501 2.23 2.20 2.68 2.65 (1) See 'Non-GAAP cost of sales, gross profit, and gross margin reconciliation' above for more information. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation' above for more information. (3) See 'Non-GAAP income tax expense (benefit) and effective tax rate reconciliation' above for more information. 2022 (in thousands, except per share data) $ $ $ $ 154,853 1,705 6,362 (33,515) 129,405 58,847 1,291 60,138 2.63 2.57 2.20 2.15 $ $ $ Year Ended December 31, 540,159 74,836 60,740 1,593 677,328 61,220 786 62,006 8.82 8.71 11.06 10.92 $ $ $ $ $ $ 2021 725,694 5,836 6,362 (208,056) 529,836 62,464 1,254 63,718 11.62 11.39 8.48 8.32 42#43Cr CS cr OCS CI OC! APPENDIX NON-GAAP RECONCILIATION (CONT'D) Reconciliation of GAAP to Non-GAAP Financial Guidance: First Quarter 2023: Non-GAAP operating margin reconciliation: GAAP operating margin Non-GAAP adjustments, primarily related to capital investments to support growth (1) Non-GAAP operating margin Non-GAAP diluted earnings per share reconciliation: GAAP diluted earnings per share Non-GAAP adjustments, primarily related to capital investments to support growth and amortization of intellectual property (1)(2) Non-GAAP diluted earnings per share Full Year 2023: Non-GAAP operating margin reconciliation: GAAP operating margin Non-GAAP adjustments, primarily related to capital investments to support growth (1) Non-GAAP operating margin Non-GAAP effective tax rate reconciliation: GAAP effective tax rate Non-GAAP adjustments associated with amortization of intellectual property (2) Non-GAAP effective tax rate Non-GAAP diluted earnings per share reconciliation: GAAP diluted earnings per share Non-GAAP adjustments, primarily related to capital investments to support growth and amortization of intellectual property Non-GAAP diluted earnings per share Approximately: ($ in millions, except per share data) 23% to 24% $190 to $200 $10 1% 24% to 25% $200 to $$210 $1.91 to $2.04 $0.15 $2.06 to $2.19 Approximately: 25% 1% 26% 24% (4)% 20% $10.54 to $10.85 $0.46 $11.00 to $11.31 $990 to $1,010 $30 $1,020 to $1,040 (1) For the full year 2023, we expect to incur $30 million costs primarily related to capital investments to support growth and to be fairly balanced across COGS and SG&A. We expect to incur $10 million of these costs in Q1 2023. (2) In the fourth quarter of 2020, and subsequently in the fourth quarter of 2021, we made changes to our international legal structure, including an intra-entity transfer of certain intellectual property rights, primarily to align with current and future international operations. This adjustment represents the amortization of the deferred tax asset related to these intellectual property rights in this period and the tax impact of cost of sales and SG&A non-GAAP adjustments. Our long-term guidance for "Consolidated adjusted operating margin" is a non-GAAP financial measure that excludes or otherwise has been adjusted for special items from our U.S. GAAP financial statements. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment. We are unable to reconcile expected long-term consolidated adjusted operating margin to its nearest U.S. GAAP measure without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of the special and 43 other non-core items. By their very nature, special and other non-core items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results. Therefore, we are unable to provide a reconciliation of these measures.#44cr CS cr CS CI OC Cl APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Gross Margin Reconciliation by Brand: GAAP Crocs Brand gross margin Non-GAAP adjustments: Distribution centers (1) Inventory reserve in Russia (2) Non-GAAP Crocs Brand gross margin GAAP HEYDUDE Brand gross margin Non-GAAP adjustments: Distribution centers (3) Inventory fair value step up (4) Other Non-GAAP HEYDUDE Brand gross margin Three Months Ended December 31, 2022 2021 55.3% 0.9 % (0.1) % 56.1 % Three Months Ended December 31, 2022 46.4% 0.1 % % 0.7 % 47.2 % Year Ended December 31, 2022 63.4 % 0.3% 63.7 % 40.8% less than 0.1% 6.9 % 0.2 % 48.0 % 2022 Year Ended December 31, (1) Represents expenses, including expansion costs and duplicate rent costs, related to our distribution centers in Dayton, Ohio and Dordrecht, the Netherlands. (2) Represents the net impact of an inventory reserve expense in our EMEALA segment associated with the shutdown of our direct operations in Russia. (1) Represents expenses related to our distribution center in Las Vegas, Nevada. (2) Represents a step-up of HEYDUDE inventory costs to fair value upon the close of the acquisition on February 17, 2022. 56.3% 0.4 % less than 0.1% 56.7 % 2021 61.4 % 0.3% 61.7 % 44#45cr CS cr OCS CI OC Cl APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Selling, General and Administrative Expenses Reconciliation by Brand: GAAP Crocs Brand selling, general and administrative expenses as a percent of revenues Non-GAAP adjustments: Impact of shutdown of Russia direct operations (1) Non-GAAP Crocs Brand selling, general and administrative expenses as a percent of revenues GAAP HEYDUDE Brand selling, general and administrative expenses as a percent of revenues Non-GAAP adjustments: Other Non-GAAP HEYDUDE Brand selling, general and administrative expenses as a percent of revenues Three Months Ended December 31, 2021 2022 25.4 % (1.2)% 24.2 % Three Months Ended December 31, 2022 19.6 % (0.1) % 19.5 % 26.2 % - % 26.2% Year Ended December 31, 2022 2022 17.2 % - % 17.2 % Year Ended December 31, 24.3% (0.6)% 23.7% (1) Represents various costs associated with the continued shutdown of our direct operations in Russia, including the recognition of cumulative translation adjustments into earnings, severance, and lease exit costs and penalties. 2021 24.2% % 24.2 % 45#46Cr CS cr OCS CI OC APPENDIX NON-GAAP RECONCILIATION (CONT'D) Non-GAAP Income from Operations and Operating Margin Reconciliation by Brand: GAAP Crocs Brand operating margin Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments (2) Non-GAAP Crocs Brand operating margin GAAP HEYDUDE Brand operating margin Non-GAAP cost of sales adjustments (1) Non-GAAP selling, general and administrative expenses adjustments (2) Non-GAAP HEYDUDE Brand operating margin Three Months Ended December 31, 2021 (1) See 'Non-GAAP gross margin reconciliation by brand' above for more information. (2) See 'Non-GAAP selling, general and administrative expenses reconciliation by brand' above for more information. 2022 29.9 % 0.8 % 1.2 % 31.9% Three Months Ended December 31, 2022 26.9 % 0.8% 0.1 % 27.7 % 37.2 % 0.3% - % 37.5 % Year Ended December 31, 2022 23.6 % 7.2 % - % 30.8% 2022 Year Ended December 31, 32.0 % 0.4 % 0.6 % 33.0 % 2021 37.2 % 0.3% - % 37.5 % 46#47oco C crocs 00 000