Deckers Outdoor Corporation - UK Tax Strategy Introduction Deckers Outdoor Corporation (“Deckers”) is a global leader in designing, marketing, and distributing innovative footwear, apparel, and accessories developed for both everyday casual lifestyle use and high performance activities. Deckers sells its products, including accessories such as handbags and outerwear, through (i) domestic and international retailers, (ii) international distributors, and (iii) directly to end-user consumers both domestically and internationally, through its websites, call centres, and retail stores. Scope of UK tax strategy Deckers publishes this UK tax strategy, for the year ending 31 March 2019, in compliance with its duty under paragraph 22(2) Schedule 19 Finance Act 2016. The overall aim of Deckers’ tax strategy is to support its business by maintaining a sustainable tax rate, while mitigating tax risks, and complying with rules and regulations in the jurisdictions in which Deckers operates. The following document lays out Deckers’ strategy and approach for the United Kingdom. Currently, the Deckers group of companies includes two UK companies: Deckers Europe Limited and Deckers UK Ltd. Approach to risk management & governance in relation to UK taxation Deckers’ systems of internal control are assessed, at least annually, by Deckers executives, in compliance with Section 404 of the Sarbanes-Oxley Act of 2002. These systems guide the risk management culture within Deckers, including the approach to managing risk in relation to Deckers’ tax affairs. Deckers seeks to identify and address tax risks in respect of all UK taxes and works to ensure that its tax positions appropriately reflect the business activities it undertakes in the UK. The day to day management of Deckers' UK tax affairs is undertaken by the EMEA ("Europe, Middle East & Africa") tax team, who are appropriately qualified in-house tax professionals based principally in the UK. Where a tax risk is identified, Deckers’ internal governance procedures require that those risks are promptly brought to the attention of the appropriate senior personnel, including Deckers executives. When appropriate, advisory and technical support is sought from external tax accounting and legal advisors, to both reduce and manage tax risk. Attitude to tax planning in relation to UK taxation When making business decisions tax is one of the factors considered and Deckers will claim properly available allowances, deductions, reliefs, incentives, exemptions and credits in line with tax legislation. We adhere to relevant tax law and we seek to minimize the risk of uncertainty or disputes. In order to reduce the level of tax risk, as far as is practically reasonable, Deckers may either consult with external tax advisors or engage directly with HM Revenue & Customs (“HMRC”) to ensure adherence to the relevant tax law. What is an acceptable level of risk in relation to UK taxation? Deckers has a conservative approach to tax risk. The level of acceptable tax risk is assessed, as required, on a case-by-case basis within Deckers’ wider system of internal controls and governance. Deckers takes a responsible approach to managing its UK tax affairs and complies with all applicable tax laws and regulations. Transactions between Deckers group companies are conducted on an arm's-length basis, in accordance with relevant UK domestic tax laws and current OECD guidelines. Deckers’ tax positions and reporting reflect the business activities undertaken in the UK. Deckers does not enter into artificial or abusive arrangements in order to reduce its liability to UK taxes. Deckers’ tax positions reflect determinations that it is “more likely than not” the tax benefits reflected in its tax positions will be sustained on the merits of the positions if challenged by a tax authority. Our approach towards dealings with HMRC Deckers is committed to having an open and cooperative relationship with the UK tax authority, HMRC. We openly provide details to support the level of taxes paid and to demonstrate compliance with the relevant tax laws in a responsible manner. Deckers maintains a transparent, proactive and constructive working relationship with HMRC, predominantly through regular meetings with HMRC. We are committed to timely disclosure and transparency, across all relevant tax and duty regimes, administered by HMRC. We recognize that there will be areas of differing legal interpretations between ourselves and HMRC and, where this occurs, we will engage in proactive communication to conclude matters in a timely fashion. This approach is in line with Deckers' core values: “Be Kind, Bold, Honest, Open and Courageous”. Review and update of UK tax strategy Deckers will review and update its UK tax strategy annually. The UK tax strategy was last approved and updated on 23 March 2018.