SKETCHERS USA Inc.

INPUTS

Company Name: SKETCHERS USA Inc.

Currency: USD

Color Coding
Blue Font: Street/sell side Assumptions
Green Font: Assumptions
Black Font: Numbers reported by the company (either in a press release, presentation, filing or a conf

6/24E

Income Statement Inputs

Wholesale Revenue Growth % 3.4%
Direct to Consumer Revenue Growth % 306.4%

Cost of Goods Sold (as % of Revenue) 48.0%

Sales & Marketing Expenses (as % of Revenue) 11.0%
G&A Expenses (as % of Revenue) 6.5%
Stock Option Expenses (as % of Revenue) p.a.

Tax Rate (as % of EBT) 19.0%

Interest Income (as % of Cash+Marketable Securities+Investments) 0.04%

Other Income (as % of Revenue) 0.0%
Interest Expense (as % of Debt) 0.3%

Balance Sheet Inputs

No of days Receivables 66
No of days Payables 20

Marketable Securities (Growth Rate %) 0.42%

Other Current Assets (as % of Revenue) 20.0%
Other Non-Current Assets (Growth Rate %) 0.0%
Accrued Expenses and other Current Liabilities (as % of Revenue) 40.0%
Income Taxes Payable and Other (as % of Revenue) 6.0%
Other Long Term Liabilities (Growth Rate %) 1.0%
Repayment of Long-Term Debt, noncurrent (as % of Debt Balance) 2.0%

Additional Paid-In Capital $2,000

Accumulated other comprehensive income $50
e, presentation, filing or a conference call) and calculations

2024 2026 202

9/24E 12/24E YoY 3/25E 6/25E 9/25E 12/25E 3/26E 6/26E 9/26E 12/26E

6.6% 1.3% 1.5% 0.6% 0.3% 0.8% 0.2% -0.3% 0.3% 0.03%
327.2% 353.5% 68.3% 75.7% 77.4% 82.5% 87.7% 92.1% 96.1% 102.5%

48.0% 48.0% 48.0% 48.0% 48.0% 48.0% 48.0% 48.0% 48.0% 48.0% 48.0% 48.0%###
11.0% 11.0% 11.0% 11.2% 11.4% 11.6% 11.8% 12.0% 12.0% 12.2% 12.4% 12.6%###
6.5% 6.5% 6.5% 6.7% 6.9% 7.1% 7.3% 7.5% 7.5% 7.7% 7.9% 8.1%###
0.081 0.081 0.081

23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0%

0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.3% 0.3% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

66 67 67 68 64 66 71 67 67 67 67
20 20 20 20 20 20 20 20 20 20 20 20 ###

0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42%
20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%###
6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%
1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

$2,000 $2,000 $756 $825 $871 $848 $1,276 $1,381 $1,452 $1,417
$50 $50 $0 $0 $0 $0 $0 $0 $0 $0
 2027 2028
3/27E 6/27E 9/27E 12/27E 3/28E 6/28E 9/28E 12/28E

0.8% -0.7% 0.4% -0.2% 1.0% 0.9% 0.5% 0.4%

107.6% 115.2% 120.4% 128.5% 135.4% 142.3% 132.0% 119.8%

48.0% 48.0% 48.0% 48.0%### 48.0% 48.0% 48.0% 48.0%

12.8% 13.0% 13.2% 13.4%### 13.6% 13.8% 14.0% 14.2%
8.3% 8.5% 8.7% 8.9%### 9.1% 9.3% 9.5% 9.7% 9.90%
0.081 0.081

23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0% 23.0%

0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

67 67 67 67 67 67 67 67
20 20 20 20 ### 20 20 20 20

0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42% 0.42%

20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
40.0% 40.0% 40.0% 40.0%### 40.0% 40.0% 40.0% 40.0%
6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%
1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

$1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

$0 $0 $0 $0 $0 $0 $0 $0
SKETCHERS USA Inc.
SCENARIOS

2024
3/24A 6/24E

Scenarios Defined
Scenario 1 = Base Case
Scenario 2 = Bull Case
Scenario 3 = Bear Case

Revenue based Scenarios

WholeSale Revenue Scenarios

WholeSale Revenue Scenarios 1 (select here)

Scenario 1 - Base Case 3.4%

Scenario 2 - Bull Case Added by: 1% 4.40%
Scenario 3 - Bear Case Reduced by: 1% 2.40%
Active Scenario Base Case 3.4%

Direct to Customer Revenue Scenario

Direct to Customer Revenue Scenario 1 (select here)

Scenario 1 - Base Case 306.4%

Scenario 2 - Bull Case Added by: 5% 311.4%
Scenario 3 - Bear Case Reduced by: 3% 303.4%
Active Scenario Base Case 306.4%

Cost based Scenarios

Sales & Marketing Expense (as % of Revenue) Scenarios

Sales & Marketing Expense Scenario selected 1 (select here)

Scenario 1 - Base Case 11.0%

Scenario 2 - Bull Case Reduced by: 3% 8.0%
Scenario 3 - Bear Case Added by: 3% 14.0%
Active Scenario Base Case 11.0%

Direct Cost Scenario selected 1 (select here)

Scenario 1 - Base Case 48.0%
Scenario 2 - Bull Case Reduced by: 3% 45.0%
Scenario 3 - Bear Case Added by: 3% 51.0%

Active Scenario Base Case 48.0%

2024 2025 2026
9/24E 12/24E 3/25E 6/25E 9/25E 12/25E 3/26E 6/26E 9/26E

6.6% 1.3% 1.5% 0.6% 0.3% 0.8% 0.2% -0.3% 0.3%

7.60% 2.30% 2.50% 1.60% 1.30% 1.80% 1.20% 0.70% 1.30%
5.60% 0.30% 0.50% -0.40% -0.70% -0.20% -0.80% -1.30% -0.70%
6.6% 1.3% 1.5% 0.6% 0.3% 0.8% 0.2% -0.3% 0.3%

327.2% 353.5% 68.3% 75.7% 77.4% 82.5% 87.7% 92.1% 96.1%

332.2% 358.5% 73.3% 80.7% 82.4% 87.5% 92.7% 97.1% 101.1%
324.2% 350.5% 65.3% 72.7% 74.4% 79.5% 84.7% 89.1% 93.1%
327.2% 353.5% 68.3% 75.7% 77.4% 82.5% 87.7% 92.1% 96.1%

11.0% 11.0% ### 11.2% 11.4% 11.6% 11.8% ### 12.0% 12.2% 12.4%
8.0% 8.0% ### 8.2% 8.4% 8.6% 8.8% ### 9.0% 9.2% 9.4%
14.0% 14.0% ### 14.2% 14.4% 14.6% 14.8% ### 15.0% 15.2% 15.4%
11.0% 11.0% ### 11.2% 11.4% 11.6% 11.8% ### 12.0% 12.2% 12.4%
48.0% 48.0% ### 48.0% 48.0% 48.0% 48.0% ### 48.0% 48.0% 48.0%
45.0% 45.0% ### 45.0% 45.0% 45.0% 45.0% ### 45.0% 45.0% 45.0%
51.0% 51.0% ### 51.0% 51.0% 51.0% 51.0% ### 51.0% 51.0% 51.0%

48.0% 48.0% ### 48.0% 48.0% 48.0% 48.0% ### 48.0% 48.0% 48.0%
026 2027 2028
12/26E 3/27E 6/27E 9/27E 12/27E 3/28E 6/28E 9/28E 12/28E

0.03% 0.8% -0.7% 0.4% -0.2% 1.0% 0.9% 0.5% 0.4%

1.03% 1.80% 0.30% 1.40% 0.80% 2.00% 1.90% 1.50% 1.40%
-0.97% -0.20% -1.70% -0.60% -1.20% 0.00% -0.10% -0.50% -0.60%
0.0% 0.8% -0.7% 0.4% -0.2% 1.0% 0.9% 0.5% 0.4%

102.5% 107.6% 115.2% 120.4% 128.5% 135.4% 142.3% 132.0% 119.8%

107.5% 112.6% 120.2% 125.4% 133.5% 140.4% 147.3% 137.0% 124.8%
99.5% 104.6% 112.2% 117.4% 125.5% 132.4% 139.3% 129.0% 116.8%
102.5% 107.6% 115.2% 120.4% 128.5% 135.4% 142.3% 132.0% 119.8%

12.6% ### 12.8% 13.0% 13.2% 13.4% ### 13.6% 13.8% 14.0% 14.2%
9.6% ### 9.8% 10.0% 10.2% 10.4% ### 10.6% 10.8% 11.0% 11.2%
15.6% ### 15.8% 16.0% 16.2% 16.4% ### 16.6% 16.8% 17.0% 17.2%
12.6% ### 12.8% 13.0% 13.2% 13.4% ### 13.6% 13.8% 14.0% 14.2%
48.0% ### 48.0% 48.0% 48.0% 48.0% ### 48.0% 48.0% 48.0% 48.0%
45.0% ### 45.0% 45.0% 45.0% 45.0% ### 45.0% 45.0% 45.0% 45.0%
51.0% ### 51.0% 51.0% 51.0% 51.0% ### 51.0% 51.0% 51.0% 51.0%

48.0% ### 48.0% 48.0% 48.0% 48.0% ### 48.0% 48.0% 48.0% 48.0%
SKETCHERS USA Inc.
REVENUE BUILD

($'s in Millions) Actuals

2020
3/20 6/20 9/20 12/20

Revenue Build Up
Domestic Wholesale $378 130.738 537.53 80.336
International Wholesale $575 $385 $763 $534
Total Wholesale 953.15 $516 $1,301 $614
YoY Growth
QoQ Growth -45.9% 152.1% -52.8%

Direct to Consumer $289 $214 $14 $696

YoY Growth
QoQ Growth -26.2% -93.5% 4916.8%

Revenue
Total Revenue $1,242 $729 $1,315 $1,311
YoY Growth
QoQ Growth -41.28% 80.24% -0.30%

Moving Average Calculation for Wholesale

-45.9% 152.1% -52.8%

152.1% -0.9% 14.0%
-52.8% 76.9% 5.8%
76.9% 5.8% -7.6%
5.8% -7.6% 9.6%
-7.6% 9.6% 7.5%
9.6% 7.5% -8.9%
7.5% -8.9% 4.5%
-8.9% 4.5% -11.9%
4.5% -11.9% 23.4%
-11.9% 23.4% -17.1%
23.4% -17.1% 9.5%
-17.1% 9.5% -18.0%
9.5% -18.0% 3.4%
-18.0% 3.4% 11.0%
3.4% 11.0% 1.3%
11.0% 1.3% 1.5%
1.3% 1.5% 0.6%
1.50% 0.6% 0.3%
Moving Average Calculation for Direct to Consum

-26.15% -93.50% 4916.83%

-93.50% 4916.83% -50.9%
4916.83% -50.9% 48.70%
-50.9% 48.70% -3.85%
48.70% -3.85% -0.98%
-3.85% -0.98% 17.5%
-0.98% 17.5% 28.0%
17.5% 28.0% -5.6%
28.0% -5.6% 20.8%
-5.6% 20.8% -14.7%
20.8% -14.7% 32.8%
-14.7% 32.8% -9.5%
32.8% -9.5% 17.4%
-9.5% 17.4% 25.8%
17.4% 25.8% 306.4%
25.8% 306.4% 327.2%
306.4% 327.2% 353.5%
327.2% 353.5% 68.3%
353.5% 68.3% 75.7%
 Actuals Ac
20 2021
FY20 3/21 6/21 9/21 12/21 FY21

1,126.564 374.665 399.653 350.672 313.048 $1,438

$2,258 $712 $750 $712 $851 $3,025
$3,384 $1,087 $1,150 $1,063 $1,164 $4,464
14.0% 122.9% -18.3% 89.5% 31.9%
76.9% 5.8% -7.6% 9.6%

$1,213 $342 $508 $488 $484 $1,822

18.1% 137.8% 3418.5% -30.6% 50.2%
-50.9% 48.7% -3.8% -1.0%

$4,597 $1,428 $1,658 $1,551 $1,648 $6,285

15% 127% 18% 26% 36.71%
8.97% 16.06% -6.44% 6.25%

lation for Wholesale

76.9% 5.8% -7.6% 9.6% 7.5% -8.9% 4.5% -11.9% 23.4%

5.8% -7.6% 9.6% 7.5% -8.9% 4.5% -11.9% 23.4% -17.1%
-7.6% 9.6% 7.5% -8.9% 4.5% -11.9% 23.4% -17.1% 9.5%
9.6% 7.5% -8.9% 4.5% -11.9% 23.4% -17.1% 9.5% -18.0%
7.5% -8.9% 4.5% -11.9% 23.4% -17.1% 9.5% -18.0% 3.4%
-8.9% 4.5% -11.9% 23.4% -17.1% 9.5% -18.0% 3.4% 11.0%
4.5% -11.9% 23.4% -17.1% 9.5% -18.0% 3.4% 11.0% 2.3%
-11.9% 23.4% -17.1% 9.5% -18.0% 3.4% 11.0% 2.3% 6.0%
23.4% -17.1% 9.5% -18.0% 3.4% 11.0% 2.3% 6.0% 1.3%
-17.1% 9.5% -18.0% 3.4% 11.0% 2.3% 6.0% 1.3% 1.0%
9.5% -18.0% 3.4% 11.0% 1.3% 1.5% 0.6% 0.3% 0.8%
-18.0% 3.4% 11.0% 1.3% 1.5% 0.6% 0.3% 0.8% 0.2%
3.4% 11.0% 1.3% 1.5% 0.6% 0.3% 0.8% 0.2% -0.3%
11.0% 1.3% 1.5% 0.6% 0.3% 0.8% 0.2% -0.3% 0.3%
1.3% 1.5% 0.6% 0.3% 0.8% 0.2% -0.3% 0.3% 0.03%
1.5% 0.6% 0.3% 0.8% 0.2% -0.3% 0.3% 0.03% 1.1%
0.6% 0.3% 0.8% 0.2% -0.3% 0.3% 0.03% 1.1% -0.4%
0.3% 0.8% 0.2% -0.3% 0.3% 0.03% 1.1% -0.4% 0.8%
0.8% 0.2% -0.3% 0.3% 0.03% 1.1% -0.4% 0.8% 0.2%
lation for Direct to Consumer

-50.9% 48.70% -3.85% -0.98% 17.5% 28.0% -5.6% 20.8% -14.7%

48.70% -3.85% -0.98% 17.5% 28.0% -5.6% 20.8% -14.7% 32.8%
-3.85% -0.98% 17.5% 28.0% -5.6% 20.8% -14.7% 32.8% -9.5%
-0.98% 17.5% 28.0% -5.6% 20.8% -14.7% 32.8% -9.5% 17.4%
17.5% 28.0% -5.6% 20.8% -14.7% 32.8% -9.5% 17.4% 25.80%
28.0% -5.6% 20.8% -14.7% 32.8% -9.5% 17.4% 25.80% 306.40%
-5.6% 20.8% -14.7% 32.8% -9.5% 17.4% 25.80% 306.40% 327.2%
20.8% -14.7% 32.8% -9.5% 17.4% 25.80% 306.40% 327.2% 353.5%
-14.7% 32.8% -9.5% 17.4% 25.80% 306.40% 327.2% 353.5% 68.3%
32.8% -9.5% 17.4% 25.80% 306.40% 327.2% 353.5% 68.3% 75.7%
-9.5% 17.4% 25.80% 306.40% 327.2% 353.5% 68.3% 75.7% 77.4%
17.4% 25.80% 306.40% 327.2% 353.5% 68.3% 75.7% 77.4% 82.5%
25.80% 306.40% 327.2% 353.5% 68.3% 75.7% 77.4% 82.5% 87.7%
306.4% 327.2% 353.5% 68.3% 75.7% 77.4% 82.5% 87.7% 92.1%
327.2% 353.5% 68.3% 75.7% 77.4% 82.5% 87.7% 92.1% 96.1%
353.5% 68.3% 75.7% 77.4% 82.5% 87.7% 92.1% 96.1% 102.5%
68.3% 75.7% 77.4% 82.5% 87.7% 92.1% 96.1% 102.5% 107.6%
75.7% 77.4% 82.5% 87.7% 92.1% 96.1% 102.5% 107.6% 115.2%
77.4% 82.5% 87.7% 92.1% 96.1% 102.5% 107.6% 115.2% 120.4%
 Actuals Actuals
2022 2023
3/22 6/22 9/22 12/22 FY22 3/23 6/23 9/23 12/23

1,251.306 1,140.325 1,191.586 1,049.212 4,632.429 1,294.558 1,073.019 $1,175 $963

$0 0 $0 $0
$1,251 $1,140 $1,192 $1,049 $4,632 $1,295 $1,073 $1,175 $963
15.1% -0.8% 12.1% -9.9% 3.8% 3.5% -5.9% -1.4% -8.3%
7.5% -8.9% 4.5% -11.9% 23.4% -17.1% 9.5% -18.0%

$568 $727 $687 $830 $2,812 $707 $939 $850 $998

66.4% 43.2% 40.6% 71.5% 54.4% 24.5% 29.1% 23.8% 20.3%
17.5% 28.0% -5.6% 20.8% -14.7% 32.8% -9.5% 17.4%

$1,820 $1,868 $1,878 $1,879 $7,445 $2,002 $2,013 $2,025 $1,961

27% 13% 21% 14% 18.45% 7% 1% 1% -3%
10.42% 2.65% 0.57% 0.02% 6.55% 0.53% 0.62% -3.16%

Final Growth Rate

-17.1% 9.5% -18.0% 8.5%

9.5% -18.0% 3.4% 11.0%
-18.0% 3.4% 11.0% 2.3%
3.4% 11.0% 2.3% 6.0%
11.0% 2.3% 6.0% 1.3%
2.3% 6.0% 1.3% 1.0%
6.0% 1.3% 1.0% 1.6%
1.3% 1.0% 1.6% 1.0%
1.0% 1.6% 1.0% 0.6%
1.6% 1.0% 0.6% 1.2%
0.2% -0.3% 0.3% 0.32%
-0.3% 0.3% 0.03% 1.1%
0.3% 0.03% 1.1% -0.4%
0.03% 1.1% -0.4% 0.8%
1.1% -0.4% 0.8% 0.2%
-0.4% 0.8% 0.2% 1.4%
0.8% 0.2% 1.4% 1.3%
0.2% 1.4% 1.3% 0.6%
1.4% 1.3% 0.6% 0.6%
 Final Growth Rate

32.8% -9.5% 17.4% 25.8% 306.4%

-9.5% 17.4% 25.80% 306.40% 327.2%
17.4% 25.80% 306.40% 327.2% 353.5%
25.80% 306.40% 327.2% 353.5% 68.3%
306.40% 327.2% 353.5% 68.3% 75.7%
327.2% 353.5% 68.3% 75.7% 77.4%
353.5% 68.3% 75.7% 77.4% 82.5%
68.3% 75.7% 77.4% 82.5% 87.7%
75.7% 77.4% 82.5% 87.7% 92.1%
77.4% 82.5% 87.7% 92.1% 96.1%
82.5% 87.7% 92.1% 96.1% 102.5%
87.7% 92.1% 96.1% 102.5% 107.6%
92.1% 96.1% 102.5% 107.6% 115.2%
96.1% 102.5% 107.6% 115.2% 120.4%
102.5% 107.6% 115.2% 120.4% 128.5%
107.6% 115.2% 120.4% 128.5% 135.4%
115.2% 120.4% 128.5% 135.4% 142.3%
120.4% 128.5% 135.4% 142.3% 132.0%
128.5% 135.4% 142.3% 132.0% 119.8%
 Projected Projected Pro
2024 2025
FY23 3/24A 6/24E 9/24E 12/24E FY24E 3/25E 6/25E 9/25E

$4,505 $995 $1,029 $1,097 $1,111 $4,233 $1,128 $1,135 $1,138

$4,505 $995 $1,029 $1,097 $1,111 $4,233 $1,128 $1,135 $1,138

-2.8% -23.1% -4.1% -6.6% 15.5% -6.0% 13.3% 10.3% 3.7%
3.4% 3.4% 6.6% 1.3% 1.5% 0.6% 0.3%

$3,496 $1,256 $5,104 $21,806 $98,890 $127,056 $166,432 $292,420 $518,754

24.3% 77.6% 443.3% 2464.3% 9805.5% 3534.8% 13150.9% 5628.8% 2279.0%
25.8% 306.4% 327.2% 353.5% 68.3% 75.7% 77.4%

$8,000 $995 -$3,016 $22,903 $100,001 $120,883 $167,560 $293,555 $519,892

7.47% -50% -250% 1031% 5000% -11.68 16740% -9833% 2170%
-49.26% -403.12% -859.38% 336.63% 67.56% 75.19% 77.10%
 Projected Projected
2025 2026
12/25E FY25E 3/26E 6/26E 9/26E 12/26E FY26E

$1,147 $4,548 $1,150 $1,146 $1,150 $1,150 $4,595

$1,147 $4,548 $1,150 $1,146 $1,150 $1,150 $4,595

3.2% 7.5% 1.9% 1.0% 1.0% 0.2% 1.0%
0.8% 0.2% -0.3% 0.3% 0.0%

$946,726 $1,924,332 ### ### $6,694,120 $3,598,434 $15,483,183

857.4% 1414.6% 967.7% 1067.4% 1190.4% 280.1% 704.6%
82.5% 87.7% 92.1% 96.1% 102.5%

$947,873 $1,928,880 ### ### $6,695,269 $3,599,584 $15,487,779

848% 961% 1063% 1188% 280%
82.32% 9.6120621 10.632466 11.8781900354 2.7975375240796
ted Projected
2027 2028
3/26E 6/26E 9/26E 12/27E FY27E 3/28E 6/28E 9/28E

$1,159 $1,151 $1,156 $1,153 $4,619 $1,165 $1,175 $1,181

$1,159 $1,151 $1,156 $1,153 $4,619 $1,165 $1,175 $1,181

0.8% 0.4% 0.5% 0.3% 0.5% 0.5% 2.1% 2.2%
0.8% -0.7% 0.4% -0.2% 1.0% 0.9% 0.5%

$7,470,349 $16,076,191 ### ### $139,940,412 ### ### ###

320.4% 370.9% 429.3% 2149.9% 803.8% 2451.2% 2772.5% 2923.7%
107.6% 115.2% 120.4% 128.5% 135.4% 142.3% 132.0%

$7,471,508 $16,077,342 ### ### $139,945,031 ### ### ###

320% 371% 429% 2149% 2451% 2772% 2924%
107.57% 115.18% 120.39% 128.50% 2450.83% 2772.29% 2923.57%
2028
12/28E FY28E

Notes:
$1,186 $4,707 1. Sketcher USA used to sell product outside of USA. But after 2021 , Sketcher USA Inc
2. There is a significant growth in Sketcher USA's Direct to Consumer sales rather than
$1,186 $4,707
2.8% 1.9%
0.4%

### $4,078,527,513
2808.5% 2814.5%
119.8%

### $4,078,532,221
2809%
2808.50%
 ut after 2021 , Sketcher USA Inc is considered to be a separate independent unit. International sales revenue is no longer included in the S
ct to Consumer sales rather than wholesale revenue growth by geography. As post Covid Sketcher USA is focusing on online sales.
is no longer included in the Sketchers USA's Financial Statements.
sing on online sales.
SKETCHERS USA Inc.
INCOME STATEMENT

($'s in Millions) Actuals Actuals Actuals

2020 2021 2022
3/20 6/20 9/20 12/20 FY20 3/21 6/21 9/21 12/21 FY21 3/22

Revenue
Wholesale $953 $516 $1,301 $614 $3,384 $1,087 $1,150 $1,063 $1,164 $4,464 $1,251
Direct to Consumer $289 $214 $14 $696 $1,213 $342 $508 $488 $484 $1,822 $568
Total Revenue $1,242 $729 $1,315 $1,311 $4,597 $1,428 $1,658 $1,551 $1,648 $6,285 $1,820
% growth (41%) 80% (0%) 9% 16% (6%) 6% 37% 10%

Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Cost of Services $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $695 $361 $676 $676 $2,408 $749 $808 $782 $847 $3,186 $995
Cost of Sales Margin 56% 49% 51% 52% 52% 52% 49% 50% 51% 51% 55%
profit $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Total Gross Profit $548 $369 $639 $635 $2,190 $680 $849 $769 $801 $3,099 $824
Total Gross Margin % 44.1% 50.5% 48.6% 48.4% 47.6% 47.6% 51.2% 49.6% 48.6% 49.3% 45.3%
Operating Expenses
Sales & Marketing Expenses $74 $60 $86 $98 $318 $85 $141 $128 $145 $500 $108
Sales & Marketing Expenses (as % of Revenue 6.0% 8.3% 6.5% 7.5% 6.0% 8.5% 8.2% 8.8% 5.9%
R&D Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
R&D Expenses (as % of Revenue) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
G&A Expenses $434 $372 $450 $498 $1,754 $443 $511 $503 $570 $2,027 $540
G&A Expenses (as % of Revenue) 34.9% 51.0% 34.2% 38.0% 31.0% 30.8% 32.4% 34.6% 29.7%
Total Operating Expenses $508 $432 $536 $596 $2,072 $528 $652 $631 $715 $2,526 $648
EBITDA $40 ($64) $103 $39 $118 $152 $197 $139 $86 $573 $176
EBITDA % 3.2% -8.7% 7.8% 3.0% 2.6% 10.6% 11.9% 8.9% 5.2% 9.1% 9.7%
Other Income $3 $5 $8 ($16) $0 $0 $2 $0 ($2) $0 $0
Interest Income $2 $2 $2 $0 $6 $1 $0 $0 ($1) $0 $0
SKETCHERS USA Inc.
CASHFLOW STATEMENT

($'s in Millions) Actuals Actuals Actuals

2020 2021 2022
4/19 7/19 10/19 0.0 FY20 4/20 7/20 10/20 1/21 FY21 3/22 6/22 9/22 12/22 FY22

Cash Flow from Operations

Net Income $429
Depreciation and Amortization $154
Stock based Compensation $60
Gain/(Losses) on Investments $0
Provision for bad debts and return $38
Decreases / (increases) in Accounts Receivable ($180)
Decreases / (increases) in Inventory ($389)
Net foreign currency adjustments ($2)
Decreases / (increases) in Deferred Income Taxes ($6)
Decreases / (increases) in Other Current Assets ($33)
Increases / (decreases) in Accounts Payable & Accrued Liabilities $107
Increases / (decreases) in Deferred Revenue $0
Increases / (decreases) in Convertible Notes/Debt (Current portion) $0
Increases / (decreases) in Other Liabilities $61
Increases / (decreases) in Income Taxes payable and Others $0
Cash Flow from Operations $238

Cash Flow from Investing

(Purchase)/Sale of Marketable Securities $0 ($2,316) ($2,193) ($1,165) $0
(Purchase)/Sale of PPE ($171) ($213) ($166) ($167) ($359)
(Purchase)/Sale of Goodwill/Intangibles $0
(Purchase)/Sale of Investments ($451) ($335) $3,819 ($481) ($71)
Proceeds - Sale & Maturities of Investments $0 $6,166 ($2,401) $414 $142
Purchase of Businesses, net of cash ($425) ($14,356) ($35) ($60) $0
Decreases / (increases) in Deferred Commissions (Non-Current portion) $0
Decreases / (increases) in Deferred Tax Assets $0
(Purchase)/Sale of Software $0
Decreases / (increases) in Non-current assets $0
Cash Flow from Investing ($1,047) ($11,054) ($976) ($1,459) ($287)

Cash Flow from Financing

Net cash used in financing activities $0 $7,912 ($6) ($7,906) $0
Effect of exchange rates on cash and cash equivalents $0 $0 $0 $0 $0
Net Proceeds from exercise of stock options $225 $375 $430 $259 $1,289
Payment - Line of Credit & Capital Lease $0 $0 $0 ($160) ($160)
RePayment -of short term borrowing ($60) ($15) ($46) $8,027 $7,906
Stock Compensation $0 $168 ($1,348) ($17) ($1,197)
Repurchases of common stock ($160)
Long-Term Convertible Debt $0
Long-Term Debt, noncurrent, repayment $0
Deferred Tax Liability $0
Long-Term Deferred Revenue $0
Minority Interest $0
Distributions to noncontrolling interests $0
Repurchases of common stock $0
Accumulated other comprehensive income $0
Cash Flow from Financing $165 $8,440 ($970) $203 $7,678
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period $3 ($14) $0 ($15) ($26)

BOP cash balance $0 ($879) ($3,507) ($5,453) $0

Total cash flow ($879) ($2,628) ($1,946) ($1,271) ($6,724)
EOP cash balance ($879) ($3,507) ($5,453) ($6,724) ($6,724)

Check
$8,544 $6,299 $4,753 $5,464 $5,464
SKETCHERS USA Inc.
BALANCE SHEET

($'s in Millions) Actuals Actuals Actuals

2020 2021 2022
3/20 6/20 9/20 12/20 FY20 3/21 6/21 9/21 12/21 FY21 3/22 6/22 9/22 FY22 FY22

Assets
Cash and Cash Equivalents $2,669 $4,110 $3,510 $3,868 $4,145 $4,145 $1,285 $4,052 $3,724 $6,195 $6,195 $8,544 $6,299 $4,753 $616 $616
Short-term Investments $1,673 $2,269 $2,532 $2,661 $3,802 $3,802 $106 $5,231 $5,768 $5,771 $5,771 $6,479 $3,351 $4,638 $102 $102
Trade Accounts Receivables $4,924 $2,153 $2,332 $2,573 $6,174 $6,174 $799 $3,445 $3,316 $7,786 $7,786 $3,174 $4,074 $4,019 $848 $848
Other receivables $0 $0 $0 $0 $0 $0 $71 $0 $0 $0 $0 $0 $0 $0 $86 $86
Inventory $788 $786 $786 $813 $926 $926 $1,067 $948 $1,017 $1,146 $1,146 $8 $8 $8 $1,818 $1,818
Prepaid expense and others $0 $0 $0 $0 $0 $0 $137 $0 $0 $0 $0 $0 $0 $0 $176 $176

Other Current Assets $629 $717 $743 $1,111 $916 $916 $0 $1,170 $1,121 $991 $991 $1,081 $1,321 $1,305 $0 $0
Total Current Assets $10,683 $10,035 $9,903 $11,026 $15,963 $15,963 $3,465 $14,846 $14,946 $21,889 $21,889 $19,286 $15,053 $14,723 $3,646 $3,646

Property, plant and equipment, net $2,051 $2,243 $2,283 $2,365 $2,375 $2,375 $993 $2,528 $2,564 $2,459 $2,459 $2,490 $2,711 $2,768 $1,345 $1,345
Operating lease right-of-use assets $0 $0 $0 $0 $0 $0 $1,159 $0 $0 $0 $0 $0 $0 $0 $1,201 $1,201
Deferred tax assets $12,851 $14,648 $13,199 $25,022 $25,134 $25,134 $63 $26,301 $26,313 $26,318 $26,318 $26,640 $48,103 $47,951 $454 $454
Long-term investments $1,302 $1,548 $1,614 $1,760 $1,963 $1,963 $124 $2,555 $3,927 $3,909 $3,909 $3,944 $4,105 $4,004 $70 $70
Goodwill $1,232 $1,149 $1,105 $1,103 $1,348 $1,348 $93 $1,309 $1,462 $1,715 $1,715 $8 $8 $8 $93 $93
Other assets, net $46 $46 $46 $46 $46 $46 $88 $46 $46 $46 $46 $46 $46 $46 $83 $83
Total non-current assets $2,420 $3,333 $5,034 $8,468 $7,718 $7,718 $2,521 $7,615 $7,314 $7,272 $7,272 $6,944 $12,823 $11,951 $3,247 $3,247
Total Assets $30,585 $33,002 $33,184 $49,790 $54,547 $54,547 $5,986 $55,200 $56,572 $63,608 $63,608 $59,357 $82,848 $81,450 $6,893 $6,893

Liabilities
Accounts payable $2,688 $2,903 $2,347 $2,881 $3,433 $3,433 $808 $3,485 $3,546 $4,355 $4,355 $3,439 $4,274 $4,231 $957 $957
Accrued expenses $165 $180 $206 $228 $180 $180 $184 $1,020 $1,088 $1,156 $1,156 $1,224 $2,029 $1,481 $294 $294
Operating lease liabilities $2,523 $2,723 $2,141 $2,653 $3,253 $3,253 $217 $2,465 $2,458 $3,199 $3,199 $2,215 $2,245 $2,750 $239 $239
Current installments of long-term borrowings $8,564 $0 $0 $0 $0 $0 $61 $0 $0 $0 $0 $0 $0 $0 $103 $103
Short-term borrowings $0 $0 $0 $0 $0 $0 $1 $0 $0 $0 $0 $0 $1,339 $0 $20 $20
Total Current Liabilities $11,252 $2,903 $2,347 $2,881 $3,433 $3,433 $1,271 $3,485 $3,546 $4,355 $4,355 $3,439 $5,613 $4,231 $1,613 $1,613

Long-term operating lease liabilities $0 $0 $0 $0 $0 $0 $718 $0 $0 $0 $0 $0 $0 $0 $1,064 $1,064

Long-term borrowings $0 $0 $0 $0 $0 $0 $1,040 $0 $0 $0 $0 $0 $0 $0 $216 $216
Deferred tax liabilities $3,173 $3,173 $2,973 $2,824 $2,673 $2,673 $11 $2,673 $2,672 $2,673 $2,673 $2,672 $10,589 $10,591 $9 $9
Other long-term liabilities $0 $0 $0 $0 $0 $0 $114 $0 $0 $0 $0 $0 $0 $0 $120 $120
Total non-current liabilities ($329,219 and $293,726 related
to VIEs) $14,425 $6,076 $5,320 $5,705 $6,106 $6,106 $1,883 $6,158 $6,218 $7,028 $7,028 $6,111 $16,202 $14,822 $1,409 $1,409
Total Liabilities $28,850 $12,152 $10,640 $11,410 $12,212 $12,212 $3,154 $12,316 $12,436 $14,056 $14,056 $12,222 $32,404 $29,644 $3,022 $3,022

Convertible preferred stock $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Additional Paid-In Capital $1 $1 $1 $1 $1 $1 $377 $1 $1 $1 $1 $1 $1 $1 $404 $404
Accumulated other comprehensive income (loss) $13,927 $14,383 $15,024 $31,243 $32,116 $32,116 ($36) $33,922 $34,727 $35,601 $35,601 $36,232 $48,666 $49,770 ($85) ($85)
Retained earnings $0 $0 $0 $0 $0 $0 $2,235 $0 $0 $0 $0 $0 $0 $0 $3,251 $3,251
Skechers U.S.A., Inc. Equity $0 $0 $0 $0 $0 $0 $2,576 $0 $0 $0 $0 $0 $0 $0 $3,570 $3,570
Noncontrolling interests $255 $302 $302
Accumulated surplus/deficit $1,735 $2,127 $2,218 $2,109 $1,861 $1,861 $0 $4,585 $5,666 $5,933 $5,933 $6,402 $6,937 $7,405 $0 $0
Total Stockholders' Equity $15,663 $16,511 $17,243 $33,353 $33,978 $33,978 $2,831 $38,508 $40,394 $41,535 $41,535 $42,635 $55,604 $57,176 $3,871 $3,871

Total Liabilities and Stockholders' Equity $44,513 $28,663 $27,883 $44,763 $46,190 $46,190 $5,985 $50,824 $52,830 $55,591 $55,591 $54,857 $88,008 $86,820 $6,893 $6,893

Balance Sheet Check ($13,928) $4,339 $5,301 $5,027 $8,357 8,357 $0 $4,376 $3,742 $8,017 8,017 $4,500 ($5,160) ($5,370) 0 0

Working capital $7,132 $7,556 $8,145 $12,530 $12,530 $2,193 $11,361 $11,400 $17,534 $17,534 $15,847 $9,440 $10,492 $2,033 $2,033
Changes in working capital $424 $589 $4,385 ($10,337) $9,168 $39 $6,134 $5,004 ($1,688) ($6,407) $1,052 ($15,501) ($15,501)
SKETCHERS USA Inc.
OTHER WORKINGS

($'s in Millions) Actuals A

2020
3/20 6/20 9/20 12/20 FY20 3/21

Stock Compensation Granted

- Restricted Stock $786 $786 $813 $926 $926 $881
- Performance based $1,149 $1,105 $1,103 $1,348 $1,348 $1,171
Total Employee stock options $1,935 $1,891 $1,916 $2,274 $2,274 $2,052

PPE
PPE, Gross $3,724 $3,724 $3,724 $3,724 $3,724 $3,724
Less: Accumulated Depreciation $1,481 $1,441 $1,359 $1,349 $1,349 $1,206
PPE, Net $2,243 $2,283 $2,365 $2,375 $2,375 $2,518

Capitalized $159 $178 $170 $136 $643 $323

as % of Total Revenue

Depreciation
Timeframe for Amortization

Goodwill & Intangibles

Goodwill & Intangibles $14,648 $13,199 $25,022 $25,134 $25,134 $25,266

Amount Amortized
as % of Total Revenue
 Actuals Actuals
2021 2022
6/21 9/21 12/21 FY21 3/22 6/22 9/22 12/22 FY22

$948 $1,017 $1,146 $1,146 $8 $8 $8 $8 $30

$1,309 $1,462 $1,715 $1,715 $8 $8 $8 $8 $30
$2,257 $2,479 $2,861 $2,861 $15 $15 $15 $15 $60

$3,724 $3,724 $3,724 $3,724 $3,724 $3,724 $3,724 $3,724 $2,222

$1,196 $1,160 $1,265 $1,265 $1,234 $1,013 $956 $909 $877
$2,528 $2,564 $2,459 $2,459 $2,490 $2,711 $2,768 $2,815 $1,345

$114 $124 $149 $710 $171 $213 $166 $167 $717

$26,301 $26,313 $26,318 $26,318 $26,640 $48,103 $47,951 $47,937 $47,937

 Actuals Projected
2023 2024
3/23 6/23 9/23 12/23 FY23 3/24 6/24 9/24E 12/24E FY24E

$9 $9 $9 $9 $34 $9 $9 $9 $9 $34
$9 $9 $9 $9 $34 $9 $9 $9 $9 $34
$17 $17 $17 $17 $68 $17 $17 $17 $17 $68

$3,724 $3,724 $3,724 $3,724 $2,807 $2,864 $3,019 $3,597 $6,197 $6,197
$856 $349 $210 $22 $1,300 $73 $199 $744 $3,250 $3,250
$2,868 $3,375 $3,514 $3,702 $1,507 $2,790 $2,819 $2,853 $2,947 $2,947

$179 $203 $198 $218 $798 $57 $155 $579 $2,600 $3,391
2.5% 2.5% 2.5% 2.6%

$376 $557 $932

2.2 2.2

$0 $0 $0 $0 $101 $94 $76 $7 $0 $283

6.753995 18.40067 68.70908 300.0037

0.30% 0.30% 0.30% 0.30%
 Projected Projected
2025 2026
4/24E 7/24E 10/24E 1/25E FY25E 4/25E 7/25E 10/25E 1/26E

$9 $9 $9 $9 $34 $9 $9 $9 $9
$9 $9 $9 $9 $34 $9 $9 $9 $9
$17 $17 $17 $17 $68 $17 $17 $17 $17

$6,232 $6,257 $6,287 $6,318 $6,318 $6,354 $6,380 $6,411 $6,444

$3,736 $4,223 $4,713 $5,206 $5,206 $5,701 $6,198 $6,698 $7,200
$2,496 $2,033 $1,573 $1,112 $1,112 $653 $182 ($286) ($756)

$34 $25 $30 $31 $120 $36 $26 $31 $32

3.0% 2.2% 2.6% 2.7% 3.1% 2.3% 2.7% 2.8%

$486 $488 $490 $492 $1,956 $495 $497 $500 $502

3.2 3.2 3.2 3.2 3.2 3.2 3.2 3.2

($220) ($1,100) ($2,660) ($5,504) $0 $0 $0 $0 $0

$503 $881 $1,560 $2,844 $0 $0 $0 $0 $0

0.30% 0.30% 0.30% 0.30% 6.0% 6.0% 6.0% 6.0%
 Projected Projected
2027 2028
FY26E 4/26E 7/26E 10/26E 1/27E FY27E 4/27E 7/27E 10/27E

$34 $9 $9 $9 $9 $34 $9 $9 $9
$34 $9 $9 $9 $9 $34 $9 $9 $9
$68 $17 $17 $17 $17 $68 $17 $17 $17

$6,444 $6,475 $6,506 $6,538 $6,569 $6,569 $6,601 $6,633 $6,665

$7,200 $7,705 $8,212 $8,721 $9,233 $9,233 $9,748 $10,265 $10,784
($756) ($1,229) ($1,705) ($2,183) ($2,664) ($2,664) ($3,146) ($3,631) ($4,119)

$126 $32 $31 $32 $31 $126 $32 $32 $32

2.7% 2.7% 2.7% 2.7% 2.7% 2.7% 2.7%

$1,994 $505 $507 $510 $512 $2,033 $514 $517 $519

3.2 3.2 3.2 3.2 3.2 3.2 3.2

$0 $0 $0 $0 $0 $0### $0 $0 $0

$0 $0 $0 $0 $0 $0### $0 $0 $0
6.0% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%
Projected
2028
1/28E FY28E

$9 $34 Assumption:
$9 $34
$17 $68 Total employee stock option will be 68 in the following years

$6,698 $6,698
$11,306 $11,306
($4,608) ($4,608)

$32 $128
2.7%

$522 $2,073
3.2

$0 $0

$0 $0
6.0%
 #NAME?
#VALUE!
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

($ in '000s)

Incorporating depreciation schedules into a model is part science and part art. As a general rule, a company's book depreciation will be relatively smooth since companies will seek to limit the variability of the depreciation impact on earnings. Creating a smooth
a model, however, is not always simple when utilizing formulas to derive depreciation. As such, it may be necessary to smooth certain book depreciation forecasts by hand.

Embedded Base Depreciation

Incorporating depreciation schedules into a model is part science and part art. As a general rule, a company's book depreciation will be relatively smooth since companies will seek to limit the variability of the depreciation impact on earnings. Creating a smooth
a model, however, is not always simple when utilizing formulas to derive depreciation. As such, it may be necessary to smooth the embedded base book depreciation forecasts by hand. The embedded base for book and tax may be different if the company has a
its balance sheet that is directly related to accelerated depreciation. If a DTL exists, the embedded base differences can be backed into, based upon the DTL balance (see reference formula below).

PP&E, net

BOP PP&E $0 $993 #NAME? #NAME? #NAME? #NAME? #NAME?

Capex 13,970 12,573 13,202 13,862 14,555 15,283 16,047
Depreciation for the year #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
EOP PP&E $0 $993 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

New Operating Lease - additions during the year #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Book Depreciation of Future Capex

There are a variety of methods that can be used to forecast the book depreciation associated with new capex. Regardless of the method used, the forecasts should dynamically change with the model and provide flexibility in changing key assumptions (such as u
example of a good method for projecting book depreciation of new capex.

Embedded
Base #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
$993 $0 $50 $50 $50 $50 $50 $50 $50
(45.000%) 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Useful Life
(In Years) 0 1 2 3 4 5 6 7
5 0.5 1 1 1 1 0.5 0 0

Year Capex #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

$0 $0 $0 $0 $0 $0 $0
2022 $13,970 2,794 2,794 2,794 2,794 1,397 0
2023 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
2024 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
2025 #NAME? #NAME? #NAME? #NAME? #NAME?
2026 #NAME? #NAME? #NAME? #NAME?
2027 #NAME? #NAME? #NAME?
2028 #NAME? #NAME?
2029 #NAME?
2030 #NAME?
2031 #NAME?
2032 #NAME?
Total Book Depreciation $0 $50 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Tax Depreciation of Future Capex

There are a variety of methods that can be used to forecast the book depreciation associated with new capex. Regardless of the method used, the forecasts should dynamically change with the model and provide flexibility in changing key assumptions (such as u
example of a good method for projecting book depreciation of new capex.

Embedded
Base #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
#NAME? $328 $268 $199 $139 $60 $0 $0 $0
0.000% 33% 27% 20% 14% 6% 0% 0% 0%

Useful Life
(In Years)
5 20% 32% 19% 12% 12% 6% 0% 0%

Year Capex #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
$0 $0 $0 $0 $0 $0 $0 $0 $0
2022 $13,970 2,794 4,470 2,682 1,609 1,609 805 0
2023 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
2024 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
2025 #NAME? #NAME? #NAME? #NAME? #NAME?
2026 #NAME? #NAME? #NAME? #NAME?
2027 #NAME? #NAME? #NAME?
2028 #NAME? #NAME?
2029 #NAME?
2030 #NAME?
2031 #NAME?
2032 #NAME?
Total Tax Depreciation $328 $3,062 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Macrs Schedule (half-year convention) depreciation factor Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
3 33.3% 44.5% 14.8% 7.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
5 20.0% 32.0% 19.2% 11.5% 11.5% 5.8% 0.0% 0.0% 0.0% 0.0% 0.0%
7 14.3% 24.5% 17.5% 12.5% 8.9% 8.9% 8.9% 4.5% 0.0% 0.0% 0.0%
15 5.0% 9.5% 8.6% 7.7% 6.9% 6.2% 5.9% 5.9% 5.9% 5.9% 5.9%
20 3.8% 7.2% 6.7% 6.2% 5.7% 5.3% 4.9% 4.5% 4.5% 4.5% 4.5%
 #NAME?
0
#NAME? #NAME? #NAME? #NAME?

of the depreciation impact on earnings. Creating a smooth depreciation schedule in

of the depreciation impact on earnings. Creating a smooth depreciation schedule in

base for book and tax may be different if the company has a deferred tax liability on

#NAME? #NAME? #NAME? #NAME?

16,849 17,691 18,576 19,505
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?

#NAME? #NAME? #NAME? #NAME?

nd provide flexibility in changing key assumptions (such as useful life). Below is an

#NAME? #NAME? #NAME? #NAME?

$50 $50 $50 $50
5.00% 5.00% 5.00% 5.00%

8 9 10 11
0 0 0 0

#NAME? #NAME? #NAME? #NAME?

$0 $0 $0 $0
0 0 0 0
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME?
#NAME?
#NAME? #NAME? #NAME? #NAME?

nd provide flexibility in changing key assumptions (such as useful life). Below is an

#NAME? #NAME? #NAME? #NAME?

$0 $0 $0 $0
0% 0% 0% 0%

0% 0% 0% 0%

#NAME? #NAME? #NAME? #NAME?

$0 $0 $0 $0
0 0 0 0
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME?
#NAME?
#NAME? #NAME? #NAME? #NAME?

Year 12 Year 13 Year 14 Year 15

0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0%
5.9% 5.9% 5.9% 5.9%
4.5% 4.5% 4.5% 4.5%
 #NAME?
#VALUE!
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Tax Rate #NAME?

($ in '000s)

Book Tax Calculation

Book Earnings Before Tax #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Book Tax Expense #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Levered Cash Tax Calculation

#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Book Earnings Before Tax #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Plus: Book Depr & Amort 0 50 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Less: Tax Depr & Amort (328) (3,062) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Levered Taxable Income #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Beginning NOL Balance $0 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
NOL Utilization #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
New NOL #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Ending NOL Balance #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Levered Taxable Income - Post NOL #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Levered Cash Taxes #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Unlevered Cash Tax Calculation

#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Levered Taxable Income #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Plus: Interest Expense / (Income), net 0 0 39 36 33 31 28 25 23
Unlevered Taxable Income - Pre NOL #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Beginning NOL Balance $0 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
NOL Utilization #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
New NOL #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Ending NOL Balance #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Unlevered Taxable Income - Post NOL #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Unlevered Cash Taxes #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Deferred Tax Calculation

#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Book D&A $0 $50 #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Less: Tax D&A (328) (3,062) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Book less Tax D&A ($328) ($3,012) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Deferred Tax Asset / (Liability) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Levered Cash Taxes #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Deferred Tax Liability / (Asset) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Total Book Tax Expense #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

BOP DTA / (DTL) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
New DTA / (DTL) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
EOP DTA / (DTL) #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Deferred tax assets #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Deferred tax liability #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
 #NAME?
0
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
20 17 15
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?

#NAME? #NAME? #NAME?
 #NAME? #NAME?
#VALUE! 0
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

($ in '000s)
Beginning Cash Balance $4,145 $0 $1,285 $4,052 $3,724 $6,195 $6,195 $0 $8,544 $6,299 $4,753 $616
Levered Free Cash Flow 0 0 0 0 0 0 0 8,544 6,299 4,753 5,464 5,464
Equity Issuance / (Repurchase) 0 0 0 0 0 0 0 0 0 0 0 0
Dividends 0 0 0 0 0 0 0 0 0 0 0 0
Mandatory Debt Repayments 0 0 (48) (48) (48) (48) (48) (48) (48) (48) (48) (48)
Less: Minimum Cash Balance 0 0 0 0 0 0 0 0 0 0 0 0
Cash Available for Revolver $4,145 $0 $1,237 $4,004 $3,676 $6,147 $6,147 $8,496 $14,795 $11,004 $10,169 $6,032
Revolver Drawdown / (Repayment)
Cash Available After Revolver $4,145 $0 $1,237 $4,004 $3,676 $6,147 $6,147 $8,496 $14,795 $11,004 $10,169 $6,032
Plus: Minimum Cash Balance 0 0 0 0 0 0 0 0 0 0 0 0
Ending Cash Balance $4,145 $0 $1,237 $4,004 $3,676 $6,147 $6,147 $8,496 $14,795 $11,004 $10,169 $6,032

Debt Balances

Revolver
Beginning Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Drawdown / (Repayment)
Ending Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

LT Debt
Beginning Balance $718 $670 $622 $574 $526 $478 $431 $383 $335 $287
Drawdown / (Repayment) (48) (48) (48) (48) (48) (48) (48) (48) (48) (48)
Ending Balance $718 $670 $622 $574 $526 $478 $431 $383 $335 $287 $239

Interest Expense, Net

Revolver Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

LT Debt Interest Expense 0 39 36 33 31 28 25 23 20 17 15
Interest Expense, Net $0 $0 $39 $36 $33 $31 $28 $25 $23 $20 $17 $15

Revolver
Average Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Rate 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

LT Debt
Average Balance $718 $694 $646 $598 $550 $502 $454 $407 $359 $311 $263
Interest Rate 5.6% 5.6% 5.6% 5.6% 5.6% 5.6% 5.6% 5.6% 5.6% 5.6% 5.6%
Interest Expense $0 $0 $39 $36 $33 $31 $28 $25 $23 $20 $17 $15
SKETCHERS USA Inc.
INCOME STATEMENT

($'s in Millions) Actuals Actuals

2020 2021
FY20 4/20 7/20

Total Billings YoY growth Err:509 Err:509

Current Remaining Performance Obligations (cRPO) growth Err:509 Err:509
Current RPO Bookings growth Err:509 Err:509
Operating Margin 0.0% 0.0%

Revenue Growth
FCF Margin
Actuals Actuals
2021 2022
10/20 1/21 FY21 4/21 7/21 10/21 1/22

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

182151%
-49%
 Actuals Actuals
2023
FY22 4/22 7/22 10/22 1/23 FY23 4/23

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

281212% 349557%
131% 4%
Actuals Projected Projected
2024 2025
7/23 10/23E 1/24E FY24E 4/24E 7/24E 10/24E

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

12705620%
4%
ected Projected
2025 2026
1/25E FY25E 4/25E 7/25E 10/25E 1/26E FY26E

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

192433188% ###
48% 39%
 Projected Projected
2027 2028
4/26E 7/26E 10/26E 1/27E FY27E 4/27E 7/27E

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509

Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
Err:509 Err:509 Err:509 Err:509 Err:509 Err:509 Err:509
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

###
44%
Projected
2028
10/27E 1/28E FY28E

Err:509 Err:509 Err:509

Err:509 Err:509 Err:509
Err:509 Err:509 Err:509
0.0% 0.0% 0.0%

###
51%
SKETCHERS USA Inc.
DCF VALUATION

($'s in Millions) 2020 2021 2022 2023 2024 2025 2026 2027 2028
FY20A FY21A FY22A FY23A FY24E FY25E FY26E FY27E FY28E

Revenue $4,597 $6,285 $7,445 $8,000 $131,289 ### ### ### ###
Revenue Growth (%) 37% 18% 7% 1541% 1369% 703% 804% 2814%
EBITDA $118 $573 $547 $785 $49,562 $702,758 ### ### ###
Less: Unlevered Cash Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0
Less: Capex ($643) ($710) ($717) ($798) ($3,391) ($120) ($126) ($126) ($128)
Less: Increases in Working Capital ($2,954) $9,922 $316 ($40,799) $218,397 $484,957 ### ###
Unlevered Free Cash Flow ($525) ($3,091) $9,751 $302 $5,372 $921,035 ### ### ###
Unlevered FCF margin -11% -49% 131% 4% 4% 48% 39% 44% 51%

End of Year Date 01/31/20 01/31/21 01/31/22 01/31/23 01/31/24 01/31/25 01/31/26 01/31/27 01/31/28
CF Adjustment 0.00 0.00 0.00 0.00 1.00 1.00 1.00 1.00 1.00
Adjusted Free Cash Flow $0 $0 $0 $0 $5,372 $921,035 ### ### ###
End of Period 0.00 0.00 0.00 0.00 1.00 2.00 3.00 4.00 5.00
Discount Factor 0.20 0.00 0.00 0.00 0.50 1.50 2.50 3.50 4.50
PV Factor
9.0% 0.983 1.000 1.000 1.000 0.958 0.879 0.806 0.740 0.679
9.5% 0.982 1.000 1.000 1.000 0.956 0.873 0.797 0.728 0.665
10.0% 0.981 1.000 1.000 1.000 0.953 0.867 0.788 0.716 0.651
10.5% 0.980 1.000 1.000 1.000 0.951 0.861 0.779 0.705 0.638
11.0% 0.979 1.000 1.000 1.000 0.949 0.855 0.770 0.694 0.625
PV of Cash Flows
9.0% $0 $0 $0 $0 $5,145 $809,350 ### ### ###
9.5% $0 $0 $0 $0 $5,134 $803,812 ### ### ###
10.0% $0 $0 $0 $0 $5,122 $798,338 ### ### ###
10.5% $0 $0 $0 $0 $5,110 $792,926 ### ### ###
11.0% $0 $0 $0 $0 $5,099 $787,574 ### ### ###
SKETCHERS USA Inc.
WACC

Discount Rate / Weighted Average Cost of Capital

Risk Free rate 4.34% 1 1 Govt 10-yr Bond Rate
Equity Risk Premium 5.00% 2 2 https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html
Beta 1.17 3 3 https://finance.yahoo.com/quote/CRM?p=CRM&.tsrc=fin-srch
Calculated Discount Factor 10.0%
4 Startup risk premium is an adhoc number which is applied based on the stage of company
Applied WACC 10.0%

Available WACC from market data: 10.30% https://valueinvesting.io/CRM/valuation/wacc

Pre-tax Cost of Borrowing 5.6%

Marginal Tax Rate 23.0%

Cost of Debt * this table is only for reference purpose; to cros

Debt / Relevered Cost of
Debt / Capital Equity Beta Equity Pre-tax After-tax WACC
0.0% 0.0% 1.17 10.2% 5.6% 4.3% 10.2%
10.0% 11.1% 1.27 10.7% 5.6% 4.3% 10.1%
20.0% 25.0% 1.40 11.3% 5.6% 4.3% 9.9%
30.0% 42.9% 1.56 12.1% 5.6% 4.3% 9.8%
40.0% 66.7% 1.77 13.2% 5.6% 4.3% 9.6%
50.0% 100.0% 2.07 14.7% 5.6% 4.3% 9.5%
60.0% 150.0% 2.52 16.9% 5.6% 4.3% 9.4%
70.0% 233.3% 3.27 20.7% 5.6% 4.3% 9.2%

1
Unlevered Beta = Levered Beta / (1 + (Debt/Equity) * (1 - Tax Rate))
Relevered Beta = Average Unlevered Beta * (1 + (Debt/Equity) * (1 - Tax Rate))
2
10 year U.S. Treasury Rate as of 9/19/23 https://in.investing.com/rates-bonds/u.s.-10-year-bond-yield

Levered LT Debt/ Debt/ Unlevered

Comparables Ticker Beta Total Cap Equity Beta1
Nike, Inc. NKE 1.32 1.4% 1.5% 1.30
Adidas AG. ADS 0.88 1.9% 2.0% 0.86
Puma SE PUM 1.21 2.9% 3.0% 1.17
VF Corporation VFC 1.02 21.3% 27.1% 0.80
Wolverine World Wi WWW 0.96 4.9% 5.2% 0.91
Average 1.08 6.5% 7.7% 1.01

(in millions except per share) Share Shares Market Debt Debt / Debt /
Company Ticker Price O/S Cap Cap Equity
ADOBE NKE $608.41 455 $277,100 $4,046 1.4% 1.5%
Adidas AG. ADS $377.10 7,430 $2,802,000 $54,718 1.9% 2.0%
Puma SE PUM $324.70 2,571 $834,922 $25,224 2.9% 3.0%
VF Corporation VFC $116.32 2,739 $318,645 $86,420 21.3% 27.1%
Wolverine World Wide, Inc. WWW $158.45 1,170 $185,339 $9,547 4.9% 5.2%
datafile/ctryprem.html

ased on the stage of company

is only for reference purpose; to cross check WACC

* this table is only for reference purpose; to see comparable data

 2018 A 2019 A 2020 A 2021 A 2022 A

1. Liquidity (Safety)
a. Current ratio (x)
b. Quick ratio (x)
c. Accounts Receivable Turnover (x)
d. Days in Receivable

2. Productivity (Efficiency)
a. Inventory Turnover (x) 1.47x 1.53x 1.46x 1.39x Current ratio
b. Days in Inventory 1.05 1.09 0.99 0.87 Quick ratio (
c. Total Asset Turnover (x) 3.00x 2.49x 2.93x 3.33x Accounts Re
d. Total Fixed Asset Turnover (x) 121.47x 146.71x 124.42x 109.75x Days in Rec
e. Days in Payables 0.00 0.00 0.00 0.00 Productivity
f. Cash Conversion Cycle 3.48 2.76 2.70 2.68 Inventory Tu

3. Profitability (Performance)
a. Operating profit margin (%) 68.58% 53.30% 61.56% 72.52% Total Asset
b. Return on Asset (%) 416.92% 336.65% 421.60% 494.07% Total Fixed
c. Return on Sales, net profit margin (%) 5545.71% 7097.54% 7860.06% 7279.22% Days in Pay
d. Return on Equity (%) 17089.21% 20779.07% 18114.01% 17326.12% Cash Conver
e. Return Over Invested Capital (%) 0.00% 0.00% 0.00% 0.00% Profitabilit
f. Sustainable Growth (%) 15.41% 10.91% 13.49% 13.30% Operating pr

4. Insolvency (Leverage)
a. Debt Ratio (%) 11.33% 7.18% 12.73% 11.28% Return on Sa
b. Asset to Equity (Equity Multiplier) (x) 0.42x 0.19x 0.39x 0.42x Return on Eq
c. Current Liabilities to Total Debt Ratio (%) 12.53% 6.85% 10.01% 11.81% Return Over
d. Interest Coverage (x) 0.28x 0.05x 0.27x 0.26x Sustainable
e. Total Debt 0 0 0 0 Insolvency
f. Total Debt to EBITDA (x) 0.81x 0.80x 0.80x 0.81x Debt Ratio
g. Total Debt to Net Worth 5.36x 5.09x 5.01x 5.16x Asset to Equi

5. DuPont Analysis. (ROE break-down)

a. Return on Sales, net profit margin (%) 1969.12% 885.80% 1409.43% 1784.20% Interest Cov
b. Asset Turnover (x) 37657.00x 37163.00x 37789.00x 36993.00x Total Debt
c. Asset to Equity (x) 3.10x 4.40x 3.67x 3.02x Total Debt t
d. Return on Equity (%) 257.41% 241.66% 228.80% 232.79% Total Debt t

6. Dividend & Price Metrics

a. Earnings Per Share 0.69 0.53 0.62 0.73 Asset Turnov
b. Dividend per Share 0.42 0.19 0.39 0.42 Return on Eq
c. Dividend Payout Ratio (%) 0.00% 0.00% 0.00% 0.00% Dividend & P
d. Dividend Yield (%) 13655.13% 17337.37% 20103.31% 23842.29% Price per Sh

7. Margins
a. Revenue Growth (%) Ra
b. COGS (excluding D&A) as % of Sales
c. Gross Profit
d. Gross Margin (%)
e. SG&A as % of Sales
f. R&D as % of Sales
g. EBITDA
h. EBITDA Margin
i. NOPAT
j. Effective Tax Rate
k. Capex as % of Sales
 2023 F 2024 F 2025 F 2026 F 2027 F

2.38x

1.39x 1.52x 1.67x 1.85x 2.06x

0.87 1.08 1.23 1.41 1.63 Ratio
3.33x 3.33x 3.41x 3.48x 3.65x
109.75x 109.75x 107.00x 105.00x 100.00x
0.00 0.00 0.00 0.00 0.00
2.41 2.97 3.04 3.09 3.17

72.52% 72.85% 71.60% 70.18% 68.78%

494.07% 476.78% 467.21% 465.15% 469.01%
8104.79% 6850.98% 6850.98% 6850.98% 6850.98%
18046.41% 16411.98% 15849.02% 15449.02% 14649.02%
0.00% 0.00% 0.00% 0.00% 0.00%
16.91% 16.81% 18.57% 20.31% 22.15%

11.28% 12.79% 14.21% 15.60% 17.09%

0.42x 0.41x 0.39x 0.36x 0.35x
11.81% 14.27% 14.98% 15.52% 16.06%
0.26x 0.51x 0.48x 0.46x 0.43x
0 0 0 0 0
0.81x 0.77x 0.74x 0.70x 0.66x
5.16x 4.37x 3.79x 3.32x 2.95x

2267.95% 2560.51% 2962.38% 3413.88% 3942.45%

36993.00x 39002.96x 41316.17x 44144.91x 47581.82x
3.02x 3.00x 2.73x 2.50x 2.30x
232.79% 196.31% 165.41% 140.48% 121.26%

0.11 0.13 0.14 0.16 0.17

0.73 0.73 0.72 0.70 0.69
515.66% 437.16% 378.56% 331.56% 295.33%
42.19% 40.74% 38.52% 36.31% 34.70%
 #NAME? #NAME?
#VALUE! 0
#NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?

Tax Rate #NAME?

($ in millions)
EBITDA #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Less: Unlevered Cash Taxes #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Less: Capex 0 (13,970) (12,573) (13,202) (13,862) (14,555) (15,283) (16,047) (16,849) (17,691) (18,576) (19,505)
Less: Increases in Working Capital 0 10,337 (9,168) (39) (6,134) (5,004) 0 1,688 6,407 (1,052) 15,501 15,501
Unlevered Free Cash Flow #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Less: Tax-affected Interest #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME? #NAME?
Levered Free Cash Flow #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!