EX-99.1 2 v192532_ex99-1.htm
Investor / Analyst Presentation August 5, 2010

Forward Looking Statements This presentation -looking statements” within the meaning includes “forward Reform Act of1995. Black Diamond Equipment (“Black “plans,” “expects,” “intends,” “future,” -looking statements. These”will,” and forward-looking statements involve a number of risks, uncertainties and assump’tions which are difficult to predict. Black Diamond you that any forward-looking statement is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statement. Examples of forward-looking statements include, but are not limited to: (i) statements about the benefits of the acquisitions of Black Diamond Equipment, Ltd. and Gregory Mountain Products, Inc., including future financial and operating results that may be realized from the acquisitions; (ii) statements of plans, objectives and expectations of Black Diamond or its management or Board of Directors; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to: (i) our ability to successfully integrate our recent acquisitions; (ii) our ability to realize financial or operating results as expected; (iii) material differences in the actual financial results of the mergers compared with expectations, including the impact of the mergers on conditions and the impact they may have on Black Diamond and our customers or demand for products; (v) our ability to implement our acquisition growth strategy or obtain financing to support such strategy; (vi) the loss of any member of our senior management or certain other key executives; (vii) our ability to utilize our net operating loss carry forward; and (viii) our ability to adequately protect our intellectual property rights. Additional factors that could cause Black Diamond’s results to differ -looking statements can bematerially from found in the “Risk Factors” section of Black Diamond’s including its latest annual report on Form 10-K and most recently filed Forms 8-K and 10-Q, which may be obtained at our web site at www.claruscorp.com or the Securities forward-looking statements included in this presentation are based upon information available to Black Diamond as of the date of this presentation, and speak only as the date hereof. We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date of this presentation.

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Investment Considerations Formative transaction creates “pure play” in the A leading global designer, manufacturer and distributor of technical outdoor recreation equipment and lifestyle products for climbers, alpinists, hikers, freeride skiers, and outdoor enthusiasts and travelers Targeting $500 million of revenue in next five years through combination of organic growth and targeted acquisitions History of continuous product development Experienced management team with significant ownership Well-capitalized balance sheet Anticipating cost synergies and near-term revenue synergies Strong partnerships with leading global retailers Intimate relationship with consumers / user communities Champion of environmental stewardship and corporate social responsibility

Black Diamond Equipment Board of Directors Warren B. Kanders, Executive Chairman - Chairman and Chief Executive Officer of Armor Holdings, Inc. (NYSE: AH), 1996 2007 - Founder and Vice Chairman of the Board of Benson Eyecare Corporation (NYSE: EYE) Robert R. Schiller, Executive Vice Chairman - Director, 2005 2007; President, 2004 2007; Chief Operating Officer, 2003 2007, of Armor Holdings, Inc. Peter Metcalf, President and Chief Executive Officer - Co-founded Black Diamond Equipment, Ltd. in 1989;1982 - present Philip N. Duff, Director - 15 Years with Morgan Stanley, Chief Financial Officer of Morgan Stanley - Original investor in Black Diamond Equipment, Ltd. Michael A. Henning, Director, Chairman of the Audit Committee - Deputy Chairman of Ernst & Young, 1978 - 2000 - Vice Chairman of Tax Services, Ernst & Young,1991 - 1993 Donald L. House, Director, Chairman of the Compensation Committee - Technology industry executive; private investor Nicholas Sokolow, Director, Chairman of the Nominating and Governance Committee - Partner at Lebow & Sokolow LLP

Black Diamond Equipment Management Team Peter Metcalf, President and Chief Executive Officer, 28 years with BDE - Co-founded Black Diamond Equipment, Ltd. in 1989 Robert Peay, Chief Financial Officer and Secretary, 14 years with BDE - Accounting Manager, Financial Controller and Chief Financial Officer of Black Diamond - Arthur Andersen Christian Jaeggi, Head of BD Europe, 14 years with BDE - Established Black Diamond European headquarters in 1997 - Mammut Ryan Gellert, Head of BD Asia, 10 years with BDE - Purchasing, Planning, and Logistics departments of Black Diamond - J.D. University of Utah Rick Luskin, General Counsel, 11 years with BDE - Personal counsel to Frank Wells, President of the Walt Disney Company - Litigator, Bingham McCutchen

Black Diamond Equipment Management Team VP of Product Development, 8 years with BDE - Director of Product Creation for Reef - Nike, The North Face, and Giro VP of Sales, 17 years with BDE - President of Entre Prises, climbing wall manufacturer - Co-founder and senior manager of Metolius Mountain Products VP of Operations, 15 years with BDE - Production Planner - U.S. Olympic Whitewater Kayak team. VP of Marketing, 4 years with BDE - Product Marketing Manager at Patagonia, Inc., 10 years with Patagonia VP of Systems Integration, 19 years with BDE - CFO and IT Director from 2000-2007, and a member of the Board of Directors from 2000-2010 - VP of Finance of Skullcandy Inc., consumer electronics company VP of MIS, 9 years with BDE - Project manager and software engineer at Boeing

Corporate Structure Leverage Global Operating Platform Black Diamond Equipment, Inc. Future Brands

Heritage and History 1957 Chouinard Equipment, Ltd. founded by Yvon Chouinard with his purchase of a second-hand coal-fired forge to make hard-steel pitons for use in Yosemite Valley 1972 Introduces new aluminum chockstone, called Hexentrics 1982 Peter Metcalf hired to run Chouinard Equipment, a $900,000 annual revenue company 1989 Metcalf and employees purchase assets of Chouinard Equipment Ltd. and rename the company Black Diamond Equipment, Ltd. 1996 Black Diamond Europe founded; company receives CE certification 1997 Acquires Bibler Tents 1998 Acquires Franklin Climbing 1999 Introduces Avalung; acquires Ascension Skins 2002 Black Diamond Asia founded 2010 Black Diamond Equipment goes public on NASDAQ (BDE) through a combination with Clarus and Gregory Mountain Products

Heritage and History 1965 At age 14, Wayne Gregory designs his first backpack as part of a Boy Scout project 1970 Wayne starts his first company, Sunbird, with the goal of producing advanced external frame packs 1973 Peter Metcalf uses a Sunbird pack for his Alaskan first ascent 1977 Wayne founds Gregory Mountain Products in San Diego, California 1977 Gregory forms relationship with Japanese distributor A&F 1980’s Gregory develops first backpacks in different frame, harness and waist belt sizes 1990’s Gregory develops the center-locking bar tack for increased strength at major stress points 2008 Retail store opens in Tokyo, Japan selling exclusively Gregory products 2009 Retail store opens in Seoul, South Korea selling exclusively Gregory products

The Black Diamond Code We should always aim to be the best at what we do and be the market leader Our products and passion should be toward building a true global presence Our efforts should always support the foundation of the industry, the specialty retailer We create long-term partnerships with companies we do business with at every step of the value chain We should aim to be easy to do business with Be a fierce competitor in your pursuit of perfection but always with the highest ethical standards Aim to develop a sustainable competitive advantage in every facet of the business Success is a result of its employees, hard work and dedication and that success should always be shared The work environment should be a safe, personally fulfilling place for all employees all the time We champion the preservation of, and access to, mountain and crag environments around the world while working to minimize our own environmental footprint

Black Diamond Markets to a Wide Variety of Passionate Outdoor Enthusiasts Around the World

Black Diamond Creates Products Out of Necessity Not Fashion or Fad Black Diamond began as a Company fueled by providing innovative and leading edge products to customers who demand the best Creating superior technical products Each product is designed and crafted for a specific need or to perform a specific function from the ground up Company free from meeting any pre-conceived notions be it hoped for market success, competitive pressures, or hype and focus on meeting specific needs of its customers Each product is crafted out of the most appropriate, high quality materials in partnership with our top suppliers Each product undergoes a rigorous, multi-step testing process, surpassing the performance limits the product would experience in real life use And all of this process is done in the “Black

Our Products - Climbing Carabiners and quick draws Harnesses Belay and rappel Protection Chalk bags Dogbones and runners Helmets Climbing packs

Our Products - Climbing

Our Products - Skiing Skis Boots Bindings Poles Snow gloves Skins Avalung Snow safety Snow packs

Our Products - Skiing

Our Products - Mountain Lighting Trekking poles Gloves Technical mountaineering packs Backpacking Backpacking ventilated Hiking ventilated All mountain packs Active trail Shelter Gaiters Tents Accessories

Our Products - Mountain

Our Products - Lifestyle High-end daypacks Japanese/other Asian lifestyle Shoulder bags and carry-alls Satchels Duffle bags Rain covers Clothing

Our Products - Lifestyle

Brand Positioning - Climbing High Brand Cachet Arc’Teryx Five Ten Patagonia Misty Sterling Petzl Mountain Rope prAna Wild Mammut Krieg Country Edelrid La Sportiva Narrow Product Range Broad Product Range Camp Metolius Grivel Evolv Mont Blanc DMM Trango Omega Red Chili Pacific Mad Rock Voodoo Climbing Low Brand Cachet

Brand Positioning Skiing High Brand Cachet Atomic Line Salomon Nordica Scott Volkl K2 Marker Tecnica Dynastar Rossignol Narrow Product Range Broad Product Range Lange Voile G3 bca Fischer Swix Karhu Dynafit Leki Low Brand Cachet

Brand Positioning - Mountain High Brand Cachet Patagonia The North Face Osprey Mountain MSR Dakine Cloudveil Hard Wear OR Marmot Kelty Narrow Product Range Broad Product Range deuter Go Lite Sierra Big Agnes Designs REI Leki Eastern Vaude Mountain Sports Gordini Low Brand Cachet

Accolades Winner of “REI Vendor of the Year” in both specific Consistently rank as one of the top vendors to key dealers Winner of product and category awards from industry magazines Outside, Backpacker, Powder, Ski, Skiing, Climb, Rock & Ice and many others Outside Magazine 2009/2010 Gear of the Year Award, Gregory Targhee backcountry pack State of Utah’s technical manufacturer of the year Women’s Adventure, April 2009, Gregory Jade 25 Wins Editor’s Choice Award Utah small business person of the year, Peter Metcalf Ernst & Young’s Entrepreneur Team of the Year award

Environmentalism and Corporate Social Responsibility Black Diamond and our employees support a number of non-profit organizations that help the Outdoor industry, our community, and the environment Black Diamond initiated a solid waste recycling program in 2007 - Recycled approximately 60% of total solid waste stream - Reduction in greenhouse gas emissions of approximately 510 tons CO2e, an amount equivalent to driving 720,000 miles Products built to minimize our environmental footprint Headquarters facility has engaged in a series of energy efficiency projects - Duro-Last roofing - T8 lighting - High efficiency HVAC

Product and Market Diversification Categories Markets 20% 32% 50% 53% 27% 18% Climb Ski Mountain North America Europe Rest of World Significant R&D capabilities and pipeline Diversified geographies and channels for new product introductions

Global Operations BD: Salt Lake City, UT Headquarters, manufacturing and distribution center Gregory: Japan 250+ employees Sales and marketing 3 employees Gregory: Sacramento, CA Gregory, sales and marketing BD: Basel, Switzerland 43 employees Sales and marketing, distribution Gregory: Calexico, CA 31+ employees BD: Zhuhai, China Production Manufacturing and 50 employees distribution 113+ employees 40+ Distributors worldwide Dedicated Gregory retail stores in Japan and South Korea Retail store in Salt Lake City 28

Salt Lake City, UT - Headquarters 250+ employees Manufacturing and office facility - ISO 9001 certified - 3 Sigma testing of personal protective equipment Distribution Center - Quality assurance Product testing Research and Design Retail store Indoor climbing

Zhuhai, China Manufacturing and Distribution In 2006, Black Diamond Equipment Asia was established in southeast China - Black Diamond built, owned and managed facility that is operated and staffed by Black Diamond employees - The manufacturing standards are identical to Salt Lake City factory Manufacture and assemble product Serve as a global distribution hub Support product design and development activities Assist in the sourcing of raw materials, components, and finished goods Provide on-site quality assurance and inspection Drive BD brand-building efforts throughout China

Zhuhai, China Manufacturing and Distribution

Zhuhai, China Manufacturing and Distribution

Growth through New Product Development Express Ice Screw, Move HQ to Salt HotWire carabiner Adopt 3 Sigma acquire Bibler Lake City Tents 1989 1992 1994 1996 1991 1993 1995 1997 Black Diamond Riva T1, first plastic FlickLock Europe, ISO 9001 certified telebinding telemark boot adjustable pole BD becomes CE certified Black Diamond holds over 60 patents and over 25 registered trademarks

Growth through New Product Development C3 Camalots, O1 AvaLung and Freeride boots, Viper Ice Tool telebindings and Acension Skins BD UIAA certified AvaLung packs 1998 2001 2004 2007 2009 1999 2002 2006 2008 Half Dome helmet, Moonlight and Hot forged acquire Franklin Black Diamond Asia SpaceShot carabiners and Climbing is founded headlamps Freeride skis Black Diamond Equipment has grown at a revenue CAGR averaging approximately 14% over the last 21 years

Areas of Expansion Organic and Acquisition Technical clothing Technical footwear Mountain apparel / products Lifestyle apparel / products Military Helmets Goggles Sunglasses Electronics

The Opportunity Hunting / Camping / Hiking / Climbing Snowboard / Ski Fashion Workwear Fishing Mountain Hardware Spyder Moncler Timberland The North Face Burton Pro Patagonia Bogner Wolverine Rossignol Oakley Bulwark Nike ACG Timberland Orvis K2 Arc’teryx Premium Descente UGG Hunter Under Merrell Rocky Armour LaCrosse Helly Hansen Skullcandy Barbour Ride Analog Arbor Salomon Bass Cabela’s Outdoor Research Keen Atomic Pro PL PL Cloudveil Sorel Sessions Special Blend Armada SmartWool 686 Marmot Nordic Gear Sitka Asolo Outback Field & Red Columbia Stream Kap Drake Primos Teva Obermeyer Carhartt Woolrich Red Head Dri-Duck White Sierra Rockport Medalist Stansport Value Hi-Tec Bonfire Icebreaker Camelbak Asolo Dickie’s Xtek Wildfowler Outfitter Cannondale Castelli Artic Shield Master Annual Sales ($US) Sportsman Browning Ahnu REI <$250mm $250-$500mm >$500mm Moose Jaw ____________________ ____________________ Note: Excludes equipment companies and sales. Note: Excludes equipment companies and sales.

Pure Play in Active Outdoor Lifestyle Markets $US in millions CY 2010E Price % of 52- Valuation EBITDA EV / Sales EV / EBITDA P/E PEG Div Company 7/22/10 Wk high Equity Enterprise Revenue margin 2009A 2010E 2011E 2009A 2010E 2011E 2010E 2011E Ratio yield Nike Inc. $71.56 91.1% $34,565 $30,011 19,673 14.2% 1.63x 1.53x 1.43x 10.8x 10.7x 9.2x 18.4x 15.7x 1.3x 1.5% V.F. Corporation 78.40 87.9% 8,632 9,273 7,541 15.1% 1.28 1.23 1.17 9.0 8.1 7.5 13.0 11.9 1.1 3.0% Jarden Corp. 29.36 83.6% 2,707 4,680 5,841 11.6% 0.91 0.80 0.76 7.9 6.9 6.3 10.7 9.2 0.9 1.1% Amer Sports Corp. 10.83 92.1% 1,312 1,631 2,107 7.9% 0.74 0.77 0.74 16.2 9.8 8.3 18.9 13.4 0.5 1.9% Quiksilver Inc. 4.13 67.8% 548 1,290 1,829 10.6% 0.66 0.71 0.68 7.0 6.7 5.7 20.2 12.3 0.9 n.a. Columbia Sportsw ear Company 48.22 80.2% 1,629 1,230 1,418 9.8% 0.99 0.87 0.82 9.9 8.9 7.5 21.6 17.7 1.7 1.5% Billabong International Ltd. 8.03 73.0% 2,033 2,213 1,394 18.3% 1.55 1.59 1.44 9.1 8.7 7.4 13.7 11.8 1.2 3.9% Timberland Co. 17.33 72.4% 929 690 1,355 10.4% 0.54 0.51 0.49 6.5 4.9 4.4 13.6 12.6 n.a. n.a. Wolverine World Wide Inc. 27.88 86.1% 1,383 1,273 1,208 13.8% 1.16 1.05 0.99 9.2 7.7 7.1 13.4 12.3 0.8 1.5% Under Armour, Inc. 37.00 95.2% 1,876 1,728 982 13.4% 2.02 1.76 1.53 15.2 13.1 11.5 33.5 28.7 1.4 n.a. Deckers Outdoor Corp. 47.61 84.8% 1,842 1,509 925 23.6% 1.86 1.63 1.46 7.8 6.9 6.3 14.3 12.8 0.5 n.a. Lululemon Athletica Inc. 40.49 87.1% 2,870 2,696 636 25.8% 5.95 4.24 3.52 25.0 16.5 13.4 35.0 28.4 1.0 n.a. Black Diamond Equipment 500+ Volcom Inc. 18.71 75.5% 456 347 320 13.9% 1.24 1.08 0.98 9.5 7.8 6.8 17.2 15.3 1.0 n.a. Rocky Brands, Inc. 7.10 66.6% 53 96 245 7.4% 0.42 0.39 0.38 6.1 5.3 5.1 10.3 8.4 0.8 n.a. Lacrosse Footw ear Inc. 17.60 83.8% 113 96 155 10.4% 0.69 0.62 0.58 8.5 5.9 5.3 14.3 14.8 0.8 3.2% Black Diamond Equipment 6.70 85.9% 146 165 120 -125 n.a. n.a. 1.35 n.a. n.m. n.a. n.a. n.a. n.a. n.a. n.a. Mean 82.1% 13.7% 1.44x 1.26x 1.13x 10.5x 8.5x 7.5x 17.9x 15.0x 1.0x 2.2% Median 84.3% 13.4% 1.16x 1.07x 0.98x 9.1x 7.8x 7.1x 14.3x 12.8x 1.0x 1.7% Notes: Per share values based on common shares outstanding as of latest SEC filings. Data from Capital IQ.

Q2 2010 Press Release Summary Selected Balance Sheet Information Pro Forma Revenues and Gross Profit $US in millions $US in millions June 30, 2010 3 months 6 months (Unaudited) ended ended 6/30/2010 6/30/2010 Cash $ 3.3 Total revenue 23.7 56.8 Net deferred assets Gross profit (3) 9.422.5 Deferred tax asset prior year NOLs $ 65.0 Margin 39.8% 39.7% Deferred tax asset for GMP note discount 3.0 DTL - purchase accounting (18.3) DTL - other (0.8) Total deferred tax assets, net $ 48.9 Debt Revolving credit facility (1) 9.9 5% subordinated notes due 2017 (2) 13.2 Capital leases 0.4 Total Debt $ 23.6 Total Stockholders’ Equity 163.7 Equity Value per Share $ 7.56 Notes: (1) Company has a $35 million revolving credit facility with Zion’s Bank. (2) Fair market value. (3) Three and six months ended June 30, 2010 excludes $1,163 of non-cash inventory fair value adjustment.

Selected Pro Forma Financial Information Pro forma combined Income Statement Year 3 months ended ended $US in thousands 12/31/2009 3/31/2010 Domestic sales 51,162 14,365 International sales 62,338 18,747 Total revenue 113,500 33,112 Gross profit 43,466 13,128 Margin 38% 40% SG&A 35,476 9,721 Amortization of intangibles1,317 331 Depreciation1,439 394 Merger and integration 73964 Transaction costs1,61323 Total operating expenses 40,584 10,533 Operating income2,882 2,595 Margin 3% 8% Total Depreciation and Amortization3,710 917 EBITDA6,592 3,512 Transaction costs1,61323 Non-cash equity compensation 538 130 Merger and integration 73964 Adjusted EBITDA 9,482 3,729 Margin 8% 11% Cash net income5,393 2,785 Basic earnings per common share $0.26 $0.13 Adjusted cash net income 7,582 2,886 Basic earnings per common share $0.36 $0.14 GAAP basic shares outstanding 21,058 21,058 Notes: EBITDA = earnings before interest, taxes, depreciation and amortization and other special items. Adjusted EBITDA = EBITDA plus transaction costs, non cash equity compensation and merger and integration expenses. Cash Net Income = net income adjusted for amortization, other non-cash items, GAAP and cash taxes. Adjusted Cash Net Income = cash net income plus transaction costs and merger and integration expenses, net of the cash tax effect.

Tax Considerations Company has NOLs of $237.5 million as of June 30, 2010 $65 million long-term deferred tax asset related to prior operating losses BDE has the ability to issue up to approximately 40 million additional common shares in a single, fully distributed offering under certain conditions Rights Agreement limiting the number of 5% stockholders

Investment Considerations Formative transaction creates “pure play” in the A leading global designer, manufacturer and distributor of technical outdoor recreation equipment and lifestyle products for climbers, alpinists, hikers, freeride skiers, and outdoor enthusiasts and travelers Targeting $500 million of revenue in next five years through combination of organic growth and targeted acquisitions History of continuous product development Experienced management team with significant ownership Well-capitalized balance sheet Anticipating cost synergies and near-term revenue synergies Strong partnerships with leading global retailers Intimate relationship with consumers / user communities Champion of environmental stewardship and corporate social responsibility

The Beginning