#15 CROCS inc TM A LEADER IN GLOBAL CASUAL FOOTWEAR JANUARY 2024 (40#2Forward Looking Statements This document includes estimates, projections, and statements relating to our business plans, commitments, objectives, and expected operating results 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, share repurchases, 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 fourth quarter, full year 2023, and full year 2024 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; cost inflation; current global financial conditions; 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 only as of January 8, 2024. 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. CROCS Inc | 2#3Business Update Andrew Rees, Chief Executive Officer CROCS inc#4Crocs, Inc. Expects to Report Record 2023 Results ● ● Expect FY23 revenues of ~$3.95B or over 11% Y/Y exceeding high-end of guidance(¹) Crocs Brand revenues expected to be up -13% Y/Y, surpassing $3B mark(1) HEYDUDE Brand revenues expected to be ~$949M(¹) Expect Q4'23 revenues of ~$960M or over 1% Y/Y above guidance for (4%)-(1%) (¹) Crocs Brand Q4 revenue expected to be up almost 10% Y/Y above guidance of 4%-7% (1) HEYDUDE Brand revenues down (19%) Y/Y vs. guidance for (25%)-(20%) (¹) ● ● Expect another year of industry-leading margins Raising our adjusted operating margin guidance to "in excess" of 27%(1) ● Continue to deploy our strong FCF generation through rapid debt paydown and share buyback Expect to achieve net leverage <1.5x in FY23E with incremental $277M net debt paydown in Q4(1) Repaid $1.2B in debt since HEYDUDE acquisition and ~$665M in 2023 Bought back $25M in stock in Q4 at an average cost of $86.32 per share ● CROCS Inc | ● 1. FY 2023E reflects expected estimated revenues and guidance for revenues and non-GAAP operating margin. Full 2023 financial results to be announced in February 2024. See reconciliation to GAAP equivalents in Appendix. 4#5Investment Highlights Global leader in casual footwear with two iconic brands in a $160B TAM(¹) Diversified sources of growth across brands, categories, channels, and regions Durable, profitable growth with top-tier margins and cash flow generation Strong value positioning with assortments <$100 taking market share Best-in-class management team with track record of delivering top-tier TSR CROCS Inc | 1. Based on management estimates. 5#6A Global Leader In Branded Casual Footwear... ($B) $9.0 $8.0 $7.0 $6.0 $5.0 $4.0 $3.0 $2.0 $1.0 $0.0 Skechers CROCS inc Deckers FY23E Revenue(¹) CROCS inc Wolverine Steve Madden Birkenstock Allbirds 1. FactSet consensus estimates for peers upcoming fiscal year end as of 1/5/2024. Crocs Inc. FY2023E reflects expected estimated revenues, full 2023 financial results to be announced in February 2024.#7...With Best-In-Class Operating Margins FY23E Adj. Operating Margin %(¹) 40.0% 30.0% 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% CROCS inc >27.0% CROCS inc 22.9% Birkenstock 18.8% Deckers 11.6% Steve Madden 9.8% Skechers Adj. Operating Margins supported by best-in-cla gross margins 3.4% Wolverine Allbirds (50.2%) 1. FactSet consensus estimates for peers upcoming fiscal year end as of 1/5/2024. Crocs Inc. FY2023E reflects expected estimated adjusted operating margin, full 2023 financial results to be announced in February 2024. See reconciliation to GAAP equivalents in Appendix. 7#8Taking Share Within $160B+ Total Addressable Market -$305B Non-Athletic Footwear Market (¹) Other (Dress, Fashion) $142B CROCS inc Clogs $8B Sandals $30B Casual $125B 1. Total addressable market sizes based on management estimates. MURD de 8#9Our Portfolio Is Aligned with Long-Term Consumer Trends CROCS inc CASUALIZATION Net Zero By 2040 SUSTAINABILITY COMFORT-LED FUNCTIONALITY VALUE POSITIONING PERSONALIZATION 9#10Our Brand Strategies Are Resonating Favorite Footwear Brand For U.S. Teens(1) Fall '23 Nike Converse Adidas New Balance Vans Crocs HEYDUDE # 1 2 3 4 5 6 7 8 9 10 On Running Foot Locker UGG CROCS inc % Mindshare 61% 9% 7% 3% 3% 2% 1% 1% 1% 1% We are driving awareness, generating buzz & capturing a broad base set of consumers OD 1. Piper Sandler Fall 2023 "Taking Stock With Teens" survey DUDE HEY M BE 10#11Diversified Sources of Growth(¹) CROCS inc HEYDUDE 25% Digital 38% Brand Digital Penetration (2) Crocs 75% Physical 62% Int'l 33% Wholesale 53% Geography Channel 1. Data is for trailing twelve months ended September 30, 2023 2. Digital sales include Crocs.com, heydude.com, third-party marketplaces (e.g. Tmall), and e-tailers (e.g. Amazon, Zappos, Zalando). 40% of Crocs Brand TTM sales were from International markets Americas 67% DTC 47% 11#12Established Global Footprint With Accelerating Traction Americas +7% CROCS inc Revenue Growth(1) EMEALA +17% Asia +37% 1. Data is for trailing twelve months ended September 30, 2023. Geography is for Crocs Brand only. EMEALA %% of Sales(1) 20% O Asia 20% Americas 60% 12#13Near-Term Catalysts Strong franchise management for the Crocs' brand augmented by new product introductions in 2024 (Street, height & new sandal franchise) Global growth expected to be led by international markets, especially in APAC Acute focus on account & channel segmentation for HEYDUDE Gross margin stabilization expected through abatement of HEYDUDE grey goods headwind, new DC & ERP system Expansion of HEYDUDE's omni-channel strategy through thoughtful development of outlet business Prioritize ongoing debt paydown and returning cash to shareholders through buybacks CROCS Inc | T 13#14Long-Term Enterprise Priorities Remain confident in Crocs as a $5B brand supported by clog, sandal, Jibbitz, digital & international growth overtime Return HEYDUDE to consistent, profitable growth as we improve segmentation & product differentiation, evolve our omni-channel strategy and lay the groundwork internationally Committed to retaining best-in-class adjusted gross margin and allow for upside to be reinvested into focused marketing, talent & other strategic brand investments Maintaining industry-leading margins but will invest as appropriate to support durable, long- term growth, recognizing adj. operating margins will not be 26% each and every year(¹) CROCS inc 1. See reconciliation to GAAP equivalents in Appendix 14#15Track Record Of Value Creation $4.9B SHAREHOLDER VALUE CREATION SINCE 2017(1) CROCS Inc | +39% ANNUALIZED TOTAL SHAREHOLDER RETURN SINCE 2017(1) 10th Best Performer in S&P 500 over the past 6 years had Crocs Inc. been in the S&P 500(2) 1. From December 31, 2017 to December 31, 2023. Shareholder value creation defined as increase in market capitalization. Annualized Total Shareholder Return defined as share price CAGR from December 31, 2017 to December 31, 2023. 2. Based on share price change of S&P 500 companies on January 2, 2024 from December 31, 2017 to December 31, 2023. 15#16Value Creation Roadmap Anne Mehlman, EVP & Chief Financial Officer CROCS inc#17Significant Value Creation At Enterprise Level Durable, Profitable Growth CROCS Inc | Industry- leading Profitability Exceptional Cash Flow Generation 17#18Expect 2023 to be a Record Year For Crocs, Inc. 2023E(¹) Revenues Revenue Growth (Y/Y) Adjusted Operating Margin CROCS Inc | 1. 2. HEY crocs DUDE CROCS -$3.0B +13% -$0.95B +6% / (4%) PF(2) -$3.95B +11% >27% inc FY 2023E reflects expected estimated revenues and guidance for revenues and non-GAAP operating margin. Full 2023 financial results to be announced in February 2024. See reconciliation to GAAP equivalents in Appendix. Pro forma ("PF") includes HEYDUDE revenues for the period prior to acquisition close (assuming the acquisition had closed on January 1, 2022). 18#196th Year of Crocs Brand Revenue Growth $3.5 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Yo Y Growth $1.0 2017 (1.2%) Transformation & CROCS Inc | Brand Re-ignition 1. 2. $1.1 2018 6.3% $1.2 2019 13.1% +20% CAGR $1.4 2020 12.6% $2.3 2021 66.9% 5+ Years of Profitable Growth(2) $2.7 2022 14.9% Reflects Crocs Brand revenues presented in billions. FY 2023E reflects expected estimated revenues. Full financial results to be announced in February 2024. Excluding Q1 & Q2 2020 -$3.0 2023E - 13% 19#20Crocs Brand Holiday & 2023E Highlights(¹) Q4'23E Revenues ~$732M Up almost 10% Y/Y exceeding high-end of guidance +4% to +7% Broad-based global growth Top-5 footwear brand in key strategics during Holiday Inline promotional plan Healthy channel inventory CROCS inc FY23E Revenues -$3.0B >13% Y/Y slightly ahead of the high-end guidance of +12% to +13% Another year of double-digit Brand growth Broad-based global growth Continued strength across Asia notably in China Sandal revenues expected to achieve ~$400M Strong franchise management with success of Echo, Brooklyn, core Classic, height product 1. FY 2023E and Q4'23E reflects expected estimated revenues. Full 2023 financial results to be announced in February 2023. See reconciliation to GAAP equivalents in Appendix. 20#21HEYDUDE Brand Holiday & 2023E Highlights(¹) Q4'23E Revenues ~$227M (19%) Y/Y exceeding high-end of guidance (25%) to (20%) Top-5 footwear brand in key strategics during Holiday ~55% of revenues from DTC channels Improved channel inventory CROCS inc FY23E Revenues -$949M +6% Y/Y in-line with high-end of guidance of +4% to +6% Drove brand awareness from 18% to 32% Took proactive action to improve channel inventory & elevate pricing on digital Curtailed over 50% of non-strategic accounts in 2023 and pulled-back on digital rights Laid groundwork for better product & channel segmentation in 2024 1. FY 2023E and Q4'23E reflects expected estimated revenues. Full 2023 financial results to be announced in February 2023. See reconciliation to GAAP equivalents in Appendix. 21#222024E Guidance Framework Revenue Growth (1) Adjusted Gross Margin(2) Adjusted Operating Margin (2) CROCS Inc | crocs™ +4% to 6% Stable 1. FY2024E reflects expected estimated revenues at constant currency rates. 2. See reconciliation to GAAP equivalents in Appendix. HEY DUDE Flat to slightly up Up vs. 2023 CROCS inc Reinvest gross margin into SG&A to support brand-accretive, strategic investments +3% to 5% Up vs. 2023 ~25% TM 22#23Upcoming Segment Reporting Changes We are changing our reportable operating segments from four to two: Old reportable segments were comprised of three regions for Crocs and HEYDUDE • New reportable segments to be Crocs Brand and HEYDUDE Brand • As filed in today's 8-K we have included: ● Three years of recast annual results (2020-2022) • 2023 recast quarterly data (Q1-Q3) • We plan to have a non-GAAP reconciliation for our legacy Crocs segments (three regions) for comparability purposes in tandem with our Q4 earnings report • In the interest of transparency of our core business drivers, we will provide visibility on the following trends by brand going forward: North America vs. International ● ● CROCS inc Wholesale vs. DTC Pricing & Units Country-specific and product-specific call outs as appropriate 23#24O • Net debt paydown of $277M in Q4 2023 ● Significant Cash Flow Generation Fuels Rapid Deleveraging Gross Leverage Ratio (¹) 2.25x ● bringing 2023E full-year pay down to $665M Repaid $1.2B since the HEYDUDE acquisition Met the upper- bound of LT target to get to 1.0x-1.5x net leverage (3) CROCS Inc | 1. 2. 3. PF YE 2022 for HEYDUDE (2) 2.1x PF Q1 2023 for HEYDUDE (2) 1.8x Q2 2023 1.7x Q3 2023 Net Leverage (³); <1.5x Q4 2023E Gross leverage ratio calculated consistent with debt covenants. Pro forma ("PF") includes HEYDUDE revenues for the period prior to acquisition close (assuming the acquisition had closed on January 1, 2022.) See reconciliation to GAAP equivalents in Appendix. 1.0x-1.5x Long-Term Target 24#25Capital Allocation Priorities #1 Brand Growth Investment CROCS Inc | #2 Debt Paydown #3 Return of Capital to Shareholders 25#26Appendix CROCS inc TM#27Non-GAAP Reconciliations 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 gross margin," "Non-GAAP gross margin by brand," "Non-GAAP operating margin," and "net leverage" which are non-GAAP financial measures. We also present future period guidance for "Non-GAAP operating margin" and "net leverage". Non-GAAP results 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 to enhance 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, in addition to corresponding 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 by providing meaningful information about operations compared to our peers by excluding the impacts of various differences. Management believes Non-GAAP gross margin, and Non-GAAP gross margin by brand are useful performance measures for investors because they eliminate the impact of certain expenses and allow a direct comparison of these measures between periods without the impact of certain expenses not related to our normal operations, such as costs to expand and transition to new distribution centers. Management believes Non-GAAP selling, general and administrative expenses is a useful performance measure for investors because it provides a more meaningful comparison to prior periods and may be indicative of the level of such expenses to be incurred in future periods. These measures exclude the impact of certain expenses not related to our normal operations, such as costs related to the acquisition and integration of HEYDUDE and other costs that are expected to be non-recurring in nature. Non-GAAP operating margin reflects the impact of Non-GAAP cost of sales and Non-GAAP selling, general, and administrative expenses, as discussed above. We believe this is a useful performance measure for investors because it provides a useful basis to compare performance in the period to prior periods. Management believes net leverage is a useful performance measure for investors because it allows a direct comparison of this measure between periods and is reflective of outstanding borrowings after using all available cash and cash equivalents to reduce borrowings. For the periods presented herein, 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. CROCS inc 27#28Non-GAAP Reconciliations Reconciliation of GAAP to Non-GAAP Operating Margin Outlook Full Year 2023 (estimated): Non-GAAP operating margin reconciliation: GAAP operating margin Non-GAAP adjustments associated with distribution center investments & Other Non-GAAP operating margin Approximately: CROCS inc >25.5% 1.5% >27.0% Our guidance for "Non-GAAP 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, such as inventory write-offs, duplicate rent costs, bad debt expense. 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 Crocs Inc., Crocs Brand, and HEYDUDE Brand 2024 non-GAAP gross margin and operating margin guidance, Q4 2023E net leverage and the long-term, non-GAAP adjusted operating margin measures to their nearest U.S. GAAP measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of the special and 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. 28#29CROCS inc TM