Slide 1: Q3 Fiscal Year 2022 Financial Results
Q3 Fiscal Year 2022 Financial Results January 24, 2022
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three and nine months ended December 31, 2021, future growth, trends
Slide 3: What's New From Logitech
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Slide 4: Environmental, Social & Governance (ESG)
ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) Logitech was recognized the second consecutive year for leadership by retaining its status as a member of the Dow Jones Sustainability Europe Index (DJSI), a widely recognized standard for measuring and advancing Environmental, Social, and Governance (ESG) cr
Slide 5: Creativity & Productivity
CREATIVITY & PRODUCTIVITY M650 Mouse In the quarter introduced the new M650 Wireless Mouse, a comfortable and personalized mouse with two different sizes and a left-handed option, offering a better experience for more people. The wireless mouse is designed to upgrade any desk setup and improve the o
Slide 6: Gaming
GAMING Shroud – Logitech G303 Wireless Gaming Mouse In partnership with one of the world's most popular gaming streamers and former pro player, Michael "Shroud" Grzesiek, introduced a fully redesigned version of Shroud’s favorite mouse, the Logitech G303 Wireless Gaming Mouse. The new mouse is desig
Slide 7: Logitech for Creators
LOGITECH FOR CREATORS Litra Glow Logitech for Creators introduces Litra Glow, a premium streaming light with TrueSoft technology. TrueSoft delivers balanced, full-spectrum LED light with cinematic color accuracy for a natural, radiant look across all skin tones.
Slide 8: Financial Results
FINANCIAL RESULTS
Slide 9: Financial Key Messages – Q3 FY 2022
FINANCIAL KEY MESSAGES – Q3 FY 2022 Q3’22 net sales declined 2% (CC) to $1.63B, nearly sustaining last year’s record Q3 sales which grew 80 percent in constant currency. In Q3’22 we had double-digit growth in Keyboards & Combos, high single-digit year-over-year growth in Pointing Devices and Gaming,
Slide 10: Nearly Sustaining Higher Sales Levels of Last Year
NEARLY SUSTAINING HIGHER SALES LEVELS OF LAST YEAR Q3’22 Q3’21 Y/Y Net sales -2% (CC) to $1.63B, with strong Net sales $1,633 $1,667 (35) growth in Pointing Devices, Keyboards & Y/Y % chg (2%) 85% Combos and Gaming, and share gains in the majority of key categories. Y/Y % chg (CC) (2%) 80% Gross pro
Slide 11: …As Secular Growth Trends Continued
…AS SECULAR GROWTH TRENDS CONTINUED Q3’22 Q3’21 Y/Y Y/Y (CC) Pointing Devices +8% (CC) and Keyboards +29% Pointing Devices 231 214 8% 8% (CC) and saw saw strong growth in our B2B channel and high-end MX product lines. Keyboards & Combos 282 218 29% 29% PC Webcams 115 132 (13%) (12%) Gaming +8% (CC),
Slide 12: Sell-Through & Sell-Out Well Aligned Across Regions
SELL-THROUGH & SELL-OUT WELL ALIGNED ACROSS REGIONS Y/Y Y/Y Sell-through Sell-through growth was flat against a record Q3’22 Q3’21 (CC) (US$) (US$) prior year. Americas 674 705 (4%) (5%) (1%) EMEA 552 547 1% 3% (1%) Sales and sell-through performance was balanced across all three regions. Asia Pacif
Slide 13: Gross Margin Within Target Range Despite Industry Cost Headwinds
GROSS MARGIN WITHIN TARGET RANGE DESPITE INDUSTRY COST HEADWINDS Gross margin was 40.6%, down year-over-year, as anticipated from last year’s elevated levels and remained within our target range. Margins are up 3pts versus Q3’20. Results were as expected, with industry-wide freight cost increases re
Slide 14: Investing for Long-Term Business Growth
INVESTING FOR LONG-TERM BUSINESS GROWTH Q3’22 Q3’21 Y/Y Strategically investing in the business as we shift our model to be more marketing and Sales & marketing 259 196 32% innovation-led versus promotion-led. % of sales 15.9% 11.8% 4.1 ppts Research & development 71 50 41% S&M expenses up 32% as ou
Slide 15: Strong Cash Flow From Operations
STRONG CASH FLOW FROM OPERATIONS Q3’22 Q3’21 Y/Y Q/Q Ending cash balance of $1.4B and Q3 cash flow from operations of $377M. Cash from operations 377 530 (153) 439 Ending cash balance 1,364 1,389 (24) 227 Spent $116M on share repurchases in Q3. Inventory 835 477 75% 1% Year-to-date, have returned $4
Slide 16: Increasing Fiscal Year 2022 Outlook
INCREASING FISCAL YEAR 2022 OUTLOOK FY 2022 OUTLOOK NEW OLD Sales growth (CC) +2% to +5% -5% to +5% Non-GAAP operating income $850M to $900M $800M to $850M ADDITIONAL ASSUMPTIONS Currency exchange rates YTD FY’22 actuals and Q4’22 projections1 Non-GAAP effective tax rate 12% – 13% Cash from operatio
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS
Slide 19: Appendix
APPENDIX
Slide 20: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and nine months ended December 31, 2021 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q. (A) Non-GAAP Financial Measures To suppleme
Slide 21: Sell-Through Data
SELL-THROUGH DATA • Measures sales of our products by retailer customers to • Data is subject to limitations and possible error sources and may consumers and by our distributor customers to their not be an entirely accurate indicator of actual consumer demand customers for our products. Limitations
Slide 22: Logitech
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