Corsair Gaming, Inc. · NASDAQ:CRSR
Corsair Gaming — Investor Day (January 2022)
79 slides from Corsair Gaming's investor day presentation, Jan 20, 2022
Slide 1: 2022 Virtual Investor Day
2022 VIRTUAL INVESTOR DAY Thursday, January 20, 2022 10:00AM – 12:30PM ET 7:00AM – 9:30AM PT 1 of 79 Exhibit 99.2
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER Forward Looking Statements This presentation contains forward looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, Corsair Gaming, Inc.’s (the Company) results may differ materially from th
Slide 3: Agenda
AGENDA Overview of Corsair Market Data on Gaming PC Components and Gaming Peripherals Product Line Strategy Go-to-Market Our Path to $3.5B in Revenue in 2026 Financials 3 of 79
Slide 4: Enabling Gamers and Creators to Perform at Their Best
Hardware ENABLING GAMERS AND CREATORS TO PERFORM AT THEIR BEST Software Services 4 of 79
Slide 5: Our Full Suite of Products
OUR FULL SUITE OF PRODUCTS Cases Power Supplies Custom Cooling CPU Coolers Fans Memory Storage Gaming PCs 5 of 79
Slide 6: Established Global Footprint with Over 2,000 Employees
ESTABLISHED GLOBAL FOOTPRINT WITH OVER 2,000 EMPLOYEES FREMONT, CA CORSAIR HQ MIAMI, FL Origin PC UK CORSAIR Europe GERMANY Elgato TAIPEI ATLANTA, GA SCUF VIETNAM CHINA CORSAIR Asia 200+ Sales & Marketing employees in 38+ countries 6 of 79
Slide 7: Solid Revenue Growth
SOLID REVENUE GROWTH Note: *2021 financials are preliminary, unaudited estimates and are subject to change. Please see our Annual Report on form 10-K for the year ended December 31, 2021 when filed. 7 of 79
Slide 8: Business Segments and Product Lines
2 BUSINESS SEGMENTS AND 30 PRODUCT LINES 56% Gaming Components Note: *2021 financials are preliminary, unaudited estimates and are subject to change. Please see our Annual Report on form 10-K for the year ended December 31, 2021 when filed. 8 of 79
Slide 9: Three Main Pillars of Corsair's Growth
THREE MAIN PILLARS OF CORSAIR’S GROWTH Robust growth in the markets where we participate Continued gain in market share through years of experience, innovation and leading technology Entry into new categories via organic growth or acquisition 9 of 79
Slide 10: Market Data
MARKET DATA 10 of 79
Slide 11: Gaming Hardware Growing Faster Than Number of Gamers and Software
MARKET DATA SHOWS THAT GAMING HARDWARE IS GROWING FASTER THAN NUMBER OF GAMERS AND GAMING SOFTWARE Indexed to 100. Indexed to 100 Sources: Number of PC Gamers Worldwide and PC Software Spend: DFC Intelligence (as of Q4 2021); U.S. Components Spend; U.S. & E.U. Peripherals Spend: Corsair Management E
Slide 12: Significant White Space Opportunity in Gaming Hardware TAM
1,400M Casual PC Gamers Casual PC Gamers Little Hardware Ownership, Younger Gamer (Casual PC Gamers) SIGNIFICANT WHITE SPACE OPPORTUNITY. THE MAJORITY OF GAMING HARDWARE TAM IS STILL CONSUMED BY A SMALL PERCENTAGE OF GAMERS Source: DFC Intelligence (as of Q4 2021). Note: Total gamer counts eliminate
Slide 13: Most Gamers Have Not Yet Upgraded to Dedicated Peripherals
HUGE WHITE SPACE, MOST GAMERS HAVE NOT YET UPGRADED TO DEDICATED GAMING PERIPHERALS Last 3 years U.S. market sales 7.5M Keyboards 15.5M PC headsets With refresh rates at approximately three years, the data suggests a huge opportunity for market growth as gamers get better and demand better equipment
Slide 14: Number of Gaming Hours Increasing
NUMBER OF GAMING HOURS INCREASING As gaming hours increase, the installed base for gaming hardware can grow significantly Source: Newzoo. 80% of Gen Z and Millennial Consumers Play Games. August, 2021. 14 of 79
Slide 15: PC Budget Highly Correlates with Time Spent Playing
PC BUDGET HIGHLY CORRELATES WITH TIME SPENT PLAYING THE MORE TIME SPENT PLAYING, THE HIGHER THE INVESTMENT IN THE PC USED FOR GAMING (REGARDLESS OF PC TYPE) Source: Newzoo – Survey of 9,000 PC Gamers across six key markets. 15 of 79
Slide 16: 62% of Dedicated PC Gamers Use a Desktop
62% OF DEDICATED PC GAMERS USE A DESKTOP AS THEIR MAIN GAMING PC VS USING A LAPTOP APPROXIMATELY 1/3 USING SELF BUILT PC Source: Newzoo – Survey of 9,000 PC Gamers across six key markets. 16 of 79
Slide 17: Self-Built PC TAM Forecasted to Show Strong Growth
SELF-BUILT PC TAM IS FORECASTED TO SHOW STRONG GROWTH Source: DFC Intelligence (as of Q4 2021). Note: TAM includes all Gaming PC components and accessories (including GPU and CPU, which Corsair does not sell). 17 of 79
Slide 18: Components: GPU Shortage Has Held Back New Builds
NN FOR COMPONENTS: WW GPU SHORTAGE HAS HELD BACK NEW BUILDS BUT EVEN SO TAM IS STILL GROWING (2H21 VS 2H19) WE EXPECT A POTENTIAL SURGE OF ACTIVITY IN 2022 IF GPUS BECOME MORE AVAILABLE Growth rates represent QoQ growth vs. _ same quarter 2019. Ee +-_— worldwide GPu shortage ————4 I PrePandemic | CO
Slide 19: Gamer Peripherals: TAM Growing Much Faster
FOR GAMER PERIPHERALS: TAM IS GROWING MUCH FASTER, APPROXIMATELY 27% ‘A SURGE OF FIRST TIME BUYERS ENTERED THE MARKET IN 2020, WHO HAVE THE POTENTIAL TO UPGRADE IN LATER YEARS Growth rates represent QoQ growth vs. same quarter 2019. Millions IMM PrePandemic MM COVIDStay at home I Post COVID Stayt ho
Slide 20: Product Strategy
PRODUCT STRATEGY Gaming Components Creator Product Suite Gaming Peripherals 20 of 79
Slide 21: Gaming Components
GAMING COMPONENTS 21 of 79
Slide 22: Corsair Has Grown into a Leadership Market Position
CORSAIR HAS GROWN INTO A LEADERSHIP MARKET POSITION Source: Corsair Management Estimates based on leading external data as of November 2021. 22 of 79
Slide 23: Geoff Lyon
GEOFF LYON SVP and GM of Gaming Components Degree in Aerospace Engineering from Carleton University Veteran tech leader specializing in growth through innovation + Harmony Remote, Logitech, CoolIT Systems Joined Corsair in 2020 to lead the Gaming Components business * Guiding product strategy + Spon
Slide 24: Gaming PCs Have Changed Over the Past Years
GAMING PCS HAVE CHANGED OVER THE PAST 20 YEARS... 24 of 79
Slide 25: $3K-$5K Builds Are Not Uncommon for Enthusiasts
$3K-$5K BUILDS ARE NOT UNCOMMON FOR ENTHUSIAST DESKTOP GAMERS & STREAMERS 25 of 79
Slide 26: Why PC Enthusiasts Build Their Own PCs
WHY PC ENTHUSIASTS BUILD THEIR OWN PCs PERFORMANCE IS NOW DELIVERED HAND-IN-HAND WITH PERSONALIZATION 26 of 79
Slide 27: New Games Constantly Require Higher Performance
NEW GAMES CONSTANTLY REQUIRE HIGHER PERFORMANCE COMPONENTS Gamers want: Desktop System Power Draw Over Time (Watts) + 100+ frames per second + 4k, 8K resolution + Low latency Which drives: + More memory + Higher power GPU + Higher power CPU Which requires: + Improved cooling + Increased airflow 6 +
Slide 28: What Does Corsair Bring to This Market?
WHAT DOES CORSAIR BRING TO THIS MARKET? COMBINATION OF HARDWARE AND SOFTWARE TECHNOLOGY Super speed Storage/SSD solutions* “Must have M.2 for any new build!” “Fast product from a trustworthy company” “Small…Wicked fast…A great drive!” 5000D Airflow Case* “Best case I've ever had” “Beautiful case, lo
Slide 29: Consistent Investment in Performance and Innovation
CONSISTENT INVESTMENT IN PERFORMANCE AND INNOVATION 25 years of experience in PC Gaming Components Close partnership with CPU and GPU manufacturers ensures compatibility to enable new technology adoption Continued innovation allows easier builds and upgrades and better system level performance Compr
Slide 30: iCUE Ecosystem – Central Control for the Entire System
iCUE ECOSYSTEM – CENTRAL CONTROL FOR THE ENTIRE SYSTEM Controls all iCUE enabled Components and Peripherals Monitors performance and controls cooling Synchronising of RGB across all components and devices Creates a Corsair ecosystem – across components and peripherals and in-game interaction 30 of 7
Slide 31: How Does iCUE Help Us Win?
HOW DOES iCUE HELP US WIN? iCUE amplifies the value of our product. Hardware alone is not enough – both performance and personalization are the hallmark of a winning product family We believe that when enthusiasts and gamers use our iCUE ecosystem it encourages them to purchase more of our products
Slide 32: Customers Willing to Pay More for Corsair Components
CUSTOMERS ARE WILLING TO PAY MORE FOR CORSAIR COMPONENTS AND iCUE FEATURES Corsair ASP premium compared to other manufacturers Memory +43% Cooling Products +23% Cases +25% PSU +29% Source: Corsair Management Estimates based on leading external data from January – November 2021. 32 of 79
Slide 33: #1 Position in Components for Self-Built Gaming PCs
GIVING US #1 POSITION IN COMPONENTS FOR SELF BUILT GAMING PCs (MEMORY, PSU, CASES, COOLING, AND FANS) Source: Corsair Management Estimates based on leading external data as of November 2021. 33 of 79
Slide 34: Latest iCUE Solutions Extend Personalization with LCD Display
LATEST iCUE SOLUTIONS EXTEND PERSONALIZATION WITH LCD DISPLAY INTEGRATION 34 of 79
Slide 35: Gaming Components 2022 and Beyond
GAMING COMPONENTS 2022 AND BEYOND Strong growing market fueled by demanding games and consumer performance needs Corsair expects to continue to hold an ASP premium and grow market share with our ecosystem and innovation 35 of 79
Slide 36: Streaming and Content Creation
STREAMING AND CONTENT CREATION 36 of 79
Slide 37: Elgato Is the Fastest Growing Category
CONTENT CREATOR PRODUCTS UNDER THE ELGATO BRAND ARE THE FASTEST GROWING CATEGORY IN OUR BUSINESS Elgato products accounted for approximately 1/3 of the Gamer and Creator Peripherals revenue in 2021 37 of 79
Slide 38: Julian Fest, SVP & GM Elgato
JULIAN FEST SVP & GM ELGATO Masters Degree, Munich University of Management Joined Elgato in 2011 to spearhead a new product initiative geared towards content creators Elgato acquired by Corsair in 2018 Rapid growth since the successful integration into Corsair 38 of 79
Slide 39: Everyone Is Becoming a Content Creator
EVERYONE IS BECOMING A CONTENT CREATOR. WE ENABLE THIS. 10 YEARS OF EXPERIENCE. 39 of 79
Slide 40: User Generated Content Is Everywhere
USER GENERATED CONTENT IS EVERYWHERE Stream Deck 2017 2014 Game Capture 2012 2006 Keying, Mounting & Camera Capture 2018 Lights 2019 Microphones 2020 2022 Content creators everywhere Cameras 2021 40 of 79
Slide 41: User Generated Content Is Everywhere
Source: https://blog.youtube/news-and-events/youtube-gaming-2020/. Source: https://twitter.com/Fwiz/status/1478577526104477700. USER GENERATED CONTENT IS EVERYWHERE 41 of 79
Slide 42: The Elgato Complete Creator Studio
THE ELGATO COMPLETE CREATOR STUDIO 42 of 79
Slide 43: Elgato: Momentum
ELGATO: MOMENTUM Facecam Stream Deck Key Light Air Wave:3 50% OF OUR STREAMING INSTALL BASE Have 2+ Elgato devices Source: Corsair customer survey. Wave Link Camera Hub 43 of 79
Slide 44: Stream Deck – Core of Your Creative Workflow
STREAM DECK – THE CORE OF YOUR CREATIVE WORKFLOW Stream Deck ties together the Elgato product ecosystem, enabling powerful control of audio, video, lighting and more Software Development Kit released in 2019 allows third party developers to integrate their products and services natively with Stream
Slide 45: Elgato: Stream Deck Platform, Over 1M Units Shipped
ELGATO: THE STREAM DECK PLATFORM OVER 1M UNITS SHIPPED SINCE LAUNCH 45 of 79
Slide 46: The Opportunity
Hardware Software Marketplace THE OPPORTUNITY Content creation has expanded beyond social media and into all corners of our personal and professional lives. Elgato has a full production ecosystem across hardware and software in place, with Stream Deck at the core. This year, a new Elgato Marketplace
Slide 47: Gamer Peripherals
GAMER PERIPHERALS 47 of 79
Slide 48: We Make Peripherals for Gamers Who Care About Winning
WE MAKE PERIPHERALS FOR GAMERS WHO CARE ABOUT WINNING 48 of 79
Slide 49: Corsair Excels at Full Feature High ASP Peripherals
CORSAIR EXCELS AT FULL FEATURE HIGH ASP PERIPHERALS Keyboards PC Headsets Total Share Products at $200+ Total Share Products at $200+ 49 0f 79
Slide 50: Leading the Way
LEADING THE WAY SLIPSTREAM Wireless Technology Industry leading wireless low latency ona single unifying receiver Over 20 SLIPSTREAM products now shipping Hyper-Processing. Technology Upto 8.000H poling ‘and 4,000H2 scanning on verboards Supports complex 20- layer lighting effects CHERRY® Key partne
Slide 51: Timeline
TIMELINE 2014 2021 2019 2017 2015 2020 51 of 79 K70 RGB with Cherry mechanical keys and RGB software control M65 RGB with Sniper Control VOID Headset – 50mm drivers with 7.1 surround sound SCUF Custom XBOX Series X and PS5 Controllers Sabre Pro Wireless – Slipstream technology Virtuoso audiophile qu
Slide 52: Corsair Will Continue to Develop Technology for Gamers
CORSAIR WILL CONTINUE TO DEVELOP TECHNOLOGY THAT ALLOWS GAMERS TO BE AT THEIR BEST Our focus is on PC enthusiasts and competitive gamers As people spend more time gaming, we believe that creating a competitive advantage will be increasingly important 52 of 79
Slide 53: Growth in New Categories
GROWTH IN NEW CATEGORIES 53 of 79
Slide 54: Pre-Built Gaming PCs
PRICED BETWEEN $2,000 AND $5,000 Corsair entered the Systems business in 2017, launching the Corsair ONE high performance PC, for both gamers and creators In 2018 we launched the Vengeance PC range of prebuilt systems for enthusiasts Corsair acquired Origin PC in 2019, a custom PC builder, with ASPs
Slide 55: Microphones: Wave Series
PRICED AT $149 TAILORED FOR CREATORS Wave is a broadcast-grade microphone Highly acclaimed WAVE LINK software allows control over many audio channels Market share growing quickly, 5.0% share on $60+ microphones in the U.S. and E.U. markets within the first 18 months of launch MICROPHONES WAVE SERIES
Slide 56: Streaming Cameras: Facecam
PRICED AT $199 High-quality 1080p 60fps streaming camera Camera hub software allows DLSR quality set up During the first six months post-launch it achieved a 4.0% market share for USB Cameras over $60 across Amazon in U.S. and E.U. STREAMING CAMERAS FACECAM LAUNCHED BY ELGATO IN 2021 Worldwide TAM $
Slide 57: Gaming Monitors: Xeneon
GAMING MONITORS XENEON MONITOR LAUNCHED IN 2021 PRICED AT $799 32” QHD 165Hz GAMING MONITOR Fast IPS panel with quantum dot technology provides coverage for more vivid, natural colors and astonishing realism FEATURE PACKED HDR-ready and NVIDIA G-Sync / AMD FreeSync compatible Corsair’s unique featur
Slide 58: High Performance Gaming Controllers
PRICED AT $150+ Leader in performance console controllers Full customizable controllers shipping for XBOX Series X, S and PlayStation 5 Extensive patent portfolio around rear paddles and trigger technology Majority of sales are direct-to-consumer HIGH PERFORMANCE GAMING CONTROLLERS CORSAIR ACQUIRED
Slide 59: Service Revenue
SERVICE REVENUE With our vast installed base, we are adding a digital services layer to enhance the customer experience Esports Coaching (Gamer Sensei) Stream Deck Marketplace Customer Care Extended Warranty 59 of 79
Slide 60: Adrian Bedggood
ADRIAN BEDGGOOD VP CORPORATE MARKETING Masters Degree, Marketing and Business Management, Leeds Metropolitan University, UK Various sales and marketing positions in consumer tech Joined Corsair in 2012 600f 79,
Slide 61: How We Go to Market
HOW WE GO TO MARKET 61 of 79
Slide 62: Multiple Touchpoints to Communicate with Our Customers
MULTIPLE TOUCHPOINTS TO COMMUNICATE WITH OUR CUSTOMERS 62 of 79
Slide 63: Our Fans Love Us!
OUR FANS LOVE US! ‘sal Fricano 2 months 299 Corsair, love you. Best PC hardware company out there. ho DP REPL rs i ion 1 week ago ® AP week ago GP REPL DP Rerty Whippy¥hip ¥ month ago that’s seriously impressive bit of kt from corsair there 3 GP REPLY DiacoDIddyTV @DiacoDidayIV Jon Bsveamer Tp Integ
Slide 64: Survey Shows Brand Loyalty Similar to Intel, NVIDIA, Microsoft
SURVEY OF PC ENTHUSIASTS SHOW OUR BRAND LOYALTY IS AT A SIMILAR LEVEL TO INTEL, NVIDIA AND MICROSOFT Source: DFC Intelligence survey of 5,000 PC Gamers. “I own this brand and plan to buy again in the future” 64 of 79
Slide 65: Social Footprint – Huge Reach and High Engagement
SOCIAL FOOTPRINT – HUGE REACH AND HIGH ENGAGEMENT 17.4M+ Followers 1000+ Media Partners 1500+ Influencers 65 of 79
Slide 66: Partnerships with Leading Game Studios
CORSAIR HAS FORGED WORLDWIDE PARTNERSHIPS WITH LEADING GAME STUDIOS. INTEGRATING iCUE, ELEVATING THE EXPERIENCE 66 of 79
Slide 67: Latest Integration: Far Cry with Ubisoft
LATEST INTEGRATION: FARCRY 6 WITH UBISOFT 67 of 79
Slide 68: Global Sales Force Engages Etailers and Retailers in Over 90 Countries
OUR GLOBAL SALES FORCE ENGAGES WITH ETAILERS AND RETAILERS IN OVER 90 COUNTRIES Source: Corsair. 68 of 79
Slide 69: Present in Most Major Retailers Worldwide
CORSAIR AND ITS BRANDS ARE PRESENT IN MOST MAJOR RETAILERS WORLDWIDE... 69 of 79
Slide 70: Direct-to-Consumer Sales Are Accelerating
..AND OUR DIRECT-TO-CONSUMER SALES ARE ACCELERATING MED2C Net Revenue —% of Total Corsair Revenue 2017 2018 2019 2020 2o2i* T00f 79
Slide 71: $3.5B by 2026
$3.5B BY 2026
Slide 72: Our Plan Is to Have $3.5B Revenue by 2026
OUR PLAN IS TO HAVE $3.5B REVENUE BY 2026 Gaming Components and Systems Gamer and Creator Peripherals We expect the market for peripherals, components and creator products to continue to grow at historical rates. We model the gaming components market to grow by an expected 6-8% per year and we expec
Slide 73: Financials
FINANCIALS 73 of 79
Slide 74: Michael Potter, CFO
Graduate Diploma of Accountancy from McGill University, and a Bachelor of Commerce – Accounting from Concordia University. Vast experience in technology based public companies for 25 years, including Lattice Semiconductor and Canadian Solar. Joined Corsair in 2019. MICHAEL POTTER CFO 74 of 79
Slide 75: Guidance for 2021 and 2022
GUIDANCE FOR 2021 AND 2022 2021 Revenue is estimated to be $1.9B* We expect 2022 Revenue to be between $1.9B and $2.1B The majority of our year over year growth will be in 2H 2022 Source: Corsair finance. Note: *Preliminary / unaudited. 75 of 79
Slide 76: The Path to $3.5B by 2026
THE PATH TO $3.5B BY 2026 Our growth strategy should yield an estimated revenue growth of approximately 12-13% per annum resulting in a 2026 Revenue of approximately $3.5B We expect gross margins to increase from 25-30% to over 30%, coming from increased technology in our products, product mix and f
Slide 77: Capital Structure
CAPITAL STRUCTURE In two years, debt reduced by over 50% and indicative annual interest by over 85% Future priority is to invest in growth (M&A) over further deleveraging Term loan paydown does not impact revolver capacity, with flexibility for incremental revolver capacity as the term loan gets pai
Slide 78: Corsair
CORSAIR of
Slide 79: Questions?
BA CORSAIR © QUESTIONS? O