Logitech International S.a. · SIX:LOGN
Logitech International — Investor Day (March 2020)
13 slides from Logitech International's investor day presentation, Mar 3, 2020
Slide 1: Nate Olmstead, CFO
ya Nate Olmstead CFO
Slide 2: Forward-Looking Statements & Non-GAAP Reporting
FORWARD-LOOKING STATEMENTS & NON-GAAP REPORTING This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: key product categories, growth opportunities, long-term growth, investments for growth, m
Slide 3: Creativity & Video
Creativity & Video Productivity Collaboration Boni
Slide 4: Investing for Long-Term Growth
INVESTING FOR LONG-TERM GROWTH New Users E Evolve Existing Experiences New New Product Introductions (NPlIs) are categorized across multiple dimensions — focusing on the User and Experience SUSTAIN are refreshes of our existing product lines — new markets EVOLVE improves upon our existing innovation
Slide 5: LOGITECH CONFIDENTIAL
Us: Music eater Creativity & Productivity om Video VED “ Gaming Home CATEGORY COUNTRIES B2C B2B = Beanag| =o Bates ; e pTc : Direct t aa Retail eTail Channel Enterprise Direct to stores Partners & Education Distributors CUSTOMERS
Slide 6: Robust Compounded Financial Performance
ROBUST COMPOUNDED FINANCIAL PERFORMANCE ~12.7% OP Gross i margin margin 7% g to) 38.0% +20 to 70 aeote bps 37.3% 11.4% $375M FYI7 FY20(E) CAGR mz 9 414% — $252M ° 26.0% Opex as % of sales -100 bps ~25.0% — FYI7 FY20(E) FYI7 FY20(E) FYI7 FY20(E) Net sales Non-GAAP operating profit Note: FY20(E) figur
Slide 7: Strong Free Cash Flow Generation ...
STRONG FREE CASH FLOW GENERATION ... $350 5 $300 + $250 | $200 $150 | $100 + $50 $0 + "FY20 (YTD) Dollars (in millions)
Slide 8: ... and Consistent Capital Allocation Priorities
... AND CONSISTENT CAPITAL ALLOCATION PRIORITIES $350 5 $300 + $250 + é iz m Buyback = $200 | £ £ ye $150 4 § = Dividends 9° ° s100 | wo] oe L sua $0 : T + r r + FY15 FY16 FY17 FY18 FY19 FY20 (YTD)
Slide 9: Financial Outlook
Slide 10: Fiscal Year 2021 Outlook
FISCAL YEAR 2021 OUTLOOK FY 2021 OUTLOOK Sales growth Mid-single digit Non-GAAP operating income $380 - 400M ASSUMPTIONS Supply challenges drive revenue/cost pressures in Q1; Cc irus i t . we aan Oronavirus impac normalized supply conditions starting in Q2 US/China tariffs No change to current tarif
Slide 11: Fiscal Year 2021 Growth Expectations
FISCAL YEAR 2021 GROWTH EXPECTATIONS CATEGORY OUTLOOK GROWTH Creativity & Productivity Low single digit Video Collaboration 25 - 30% Gaming 10 - 15% Music Flat to down 10% Smart Home Too small to matter Note: Sales growth is in constant currency unless otherwise noted.
Slide 12: Our Long-Term Financial Strategy Is Clear
OUR LONG-TERM FINANCIAL STRATEGY IS CLEAR growth Operating margin 11 to 14% Note: Figures are non-GAAP. Sales growth is in constant currency unless otherwise noted. Deliver the growth potential of our three largest categories Transform business to ag more pull-driven model Reinvest gross profits to
Slide 13: Logitech
logitech