Slide 1: Q4 Fiscal Year 2019 Financial Results
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 months and fiscal year ended March 31, 2019, growth, growth dr
Slide 3: Key Messages - Q4 FY 2019
KEY MESSAGES —- @4 FY 2019 Achieved another solid March quarter, with Q4’19 net sales up 9% (CC) to $624M Drove double-digit growth from Video Collaboration, Gaming, Mobile Speakers, and Audio & Wearables Delivered strong gross margin of 38.0%, up 160 bps as we reduced product costs and remained dis
Slide 4: Key Messages - Fiscal Year 2019
KEY MESSAGES — FISCAL YEAR 2019 Sixth consecutive year of growth, with net sales up 10% (CC) to a record $2.8B Balanced growth across all regions, with strong contribution from Video Collaboration, Gaming, and PC Peripherals Delivered healthy gross margin of 37.8%, driven by favorable product mix an
Slide 5: What's New from Logitech
WHAT'S NEW FROM LOGITEC
Slide 6: Video Collaboration
VIDEO COLLABORATION Logitech Tap is our first touch control display that makes collaboration rooms easy to deploy and use Pre-configured with room solutions for major collaboration platform providers such as Google Hangouts Meet Hardware, Microsoft Teams Rooms and Zoom Rooms Built on open standards,
Slide 7: Logitech Zone Wireless
LOGITECH ZONE WIRELESS Zone Wireless Plus headset was designed for people working in an open office environment Offers Active Noise Cancellation (ANC) to eliminate background noise, as well as a noise cancelling microphone for greater call clarity Has up to a 30m/100ft range, and 15 hours of availab
Slide 8: Slim Folio Pro
SLIM FOLIO PRO Logitech Slim Folio Pro, an all-in-one backlit keyboard case for the new 11-inch and 12.9-inch iPad Pro (3rd Gen) Provides a comfortable, laptop-like typing experience on the iPad Pro with reliable Bluetooth LE pairing in a protective case for wherever you work
Slide 9: Gaming
GAMING i Logitech G935 Wireless and G635 bring 7.1 LIGHTSYNC technology for superior audio and RGB lighting to the gamer ¢ Crafted from hybrid mesh material, our Pro-G 50mm Audio driver delivers deep bass and a round sound profile for highly Re cinematic audio ; & — Features DTS Headphone: X® 2.0 \
Slide 10: Gaming
GAMING The G4532 7.1 Surround Sound Gaming Headset features 50mm drivers and DTS Headphone: X® 2.0 surround sound for an immersive sound experience Includes rotating leatherette ear cups, a large 6mm flip-to-mute mic and convenient multi-platform compatibility Offers the same great comfort and quali
Slide 11: Mobile Speakers
MOBILE SPEAKERS The enables the consumer to create their very own custom BOOM 3 in just minutes offers thousands of possibilities of trendy fabrics, colors and patterns for different parts of the speaker such as the caps, hang loop, and volume buttons You can even add your name on the speaker to mak
Slide 12: Financial Results
FINANCIAL RESU
Slide 13: Delivered Another Growth Year in FY'19
DELIVERED ANOTHER GROWTH YEAR IN FY‘19 a Ret scies see oo YoY % chg (USS) 5% 9% YoY % chg (CC) 9% 10% Gross profit 237 10% 1,054 14% % margin 38.0% 160 bps 37.8% 190 bps Operating expense 173 8% 702 10% % of sales 27.7% 60 bps 25.2% 50 bps % margin 10.3% 100 bps 12.6% 140 bps Net income 65 18% 339 2
Slide 14: Large Markets Driving Top Line Growth
LARGE MARKETS DRIVING TOP LINE GROWTH COS GORE Pointing Devices Keyboards & Combos 132 PC Webcams 30 Tablet & Accessories 23 Video Collaboration 69 Mobile Speakers 23 Audio & Wearables 65 Gaming 138 Smart Home 12 a BS 1% (3%) (4%) (14%) 27% 62% 18% 9% (28%) 5% 0% (1%) (11%) 32% 81% 22% 13% (25%) 537
Slide 15: Diversification Across Regions
DIVERSIFICATION ACROSS REGIONS gata | YoY YoY _ |Sell-through Americas sales +7% (CC), with continued $) (cc) i i i as growth in Gaming and Video Americas 231 6% 4% Collaboration, and easier comparison in EMEA 214 198 8% 16% (1%) Mobile Speakers Asia Pacific 164 2% 6% 13% . i" i" i" EMEA sales growt
Slide 16: Gross Margin Within New Long-Term Range
GROSS MARGIN WITHIN NEW LONG-TERM RANGE Non-GAAP Gross Margin Q4'19 gross margin +160 basis points to 41% 9 38.0% despite unfavorable currency AO% impact 59% One-time benefit Healthy gross margin was driven by 38% from legal settlement ' more favorable product mix and lower 57% product and logistics
Slide 17: Opex Investments to Capture Market Growth
OPEX INVESTMENTS TO CAPTURE MARKET GROWTH es ia Operating expenses +10% (or +8% excluding Blue), as we strategically Sales & marketin 114 9% 12% . . 9 ° ° re-invested for sustainable growth % of sales 18.3% 60 bps 16.8% 50 bps Research & development 40 1% 154 12% Balanced investments in S&M (+12%) %
Slide 18: Working Capital in Line with Seasonality
WORKING CAPITAL IN LINE WITH SEASONALITY Pf at | vor | Eos Cash flow from operations was $305M, down $41M due to the Cash flow from operations 32 (65%) | (12%) . . + strategic pull-in of inventory ahead Ending cash balance 605 (6%) 605 (6%) of tariffs and a more back-end Inventory 293 13% 293 13% lo
Slide 19: Fiscal Year 2020 Outlook
FISCAL YEAR 2020 OUTLOOK FY’20 OUTLOOK Sales CC growth Mid- to high-single digits Non-GAAP operating income $375 - 385M Currency FY'19 average rates Non-GAAP effective tax rate 7-8% Cash from operations ~1x non-GAAP operating income Capex $40 - 50M Note: Comparisons are YoY unless otherwise specifie
Slide 20: Appendix
APPENDIX
Slide 21: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS PRELIMINARY RESULTS* (In thousands, except per share amounts) - Unaudited GAAP TO NON GAAP RECONCILIATION “ Three Months Ended Fiscal Years Ended March 31, March 31, SUPPLEMENTAL FINANCIAL INFORMATION 2019 2018 2019 2018 Gross profit - GAAP. $232,975 $212,235 $1,037,
Slide 22: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS PRELIMINARY RESULTS* (In thousands, except per share amounts) - Unaudited GAAP TO NON GAAP RECONCILIATION “) Three Months Ended Fiscal Years Ended March 31, March 34 SUPPLEMENTAL FINANCIAL INFORMATION 2019 2018 2019 2018 Operating income - GAAP $ 42.227 $39,107 $ 263
Slide 23: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and fiscal year ended March 31, 2019 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K. (A) Preliminary Valuation from the Business Acqui
Slide 24: Sell-Through Data
SELL-THROUGH DATA Measures sales of our products by retailer customers to consumers and by our distributor customers to their customers Compiled by Logitech from data supplied by our customers Customers supplying sell-through data vary by geographic region and from period to period, but typically re
Slide 25: Logitech
logitech