Logitech International S.a. · SIX:LOGN
Logitech International — Q2 2023 Earnings Presentation
23 slides from Logitech International's earnings presentation, Oct 25, 2022
Slide 1: Q2 Fiscal Year 2023 Financial Results
Q2 Fiscal Year 2023 Financial Results October 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 six months ended September 30, 2022, executive leadership,
Slide 3: What's New From Logitech?
What’s New From Logitech?
Slide 4: Video Collaboration: Logitech Sight AI Camera
VIDEO COLLABORATION Logitech Sight AI Camera Logitech announced the Sight AI Camera, to be released in 2023. Sight is an AI-powered tabletop camera that works with Rally Bar or Rally Bar Mini to capture the best perspective of meeting participants, and track conversation as they move around the conf
Slide 5: Gaming: PRO Racing Wheels
GAMING PRO Racing Wheels Insert pictures of both PRO Racing Pedals Logitech launched two professional-grade racing products designed especially for professional sim drivers. Together, the PRO Racing wheels and Racing pedals deliver unmatched realism, driver information and connection to the car with
Slide 6: Gaming: Logitech G CLOUD
GAMING Logitech G CLOUD Insert pictures Logitech launched of the highly anticipated Logitech G CLOUD Gaming Handheld, a gaming device for cloud gaming. This device includes precision gaming controls, a full 1080p HD screen, amazing battery life, and a lightweight, sleek form factor that enables play
Slide 7: Keyboards & Combos: Designed for Mac collection
KEYBOARDS & COMBOS “Designed for Mac” collection of products Logitech unveiled a new “Designed for Mac” collection of products that are designed to seamlessly integrate with a variety of Mac setups. The new MX Mechanical Mini for Mac, MX MX Mechanical Mini & MX Master 3S for Mac Master 3S for Mac, L
Slide 8: Designing a Positive Future
DESIGNING A POSITIVE FUTURE SUSTAINABILITY Helping ALL people pursue their passions…. in a way that is good for people and planet. Logitech was ranked among the top 1% of sustainable companies by EcoVadis What Sets Logitech Apart Logitech was awarded a Platinum CLIMATE POSITIVE rating from EcoVadis,
Slide 9: Financial Results
FINANCIAL RESULTS 9
Slide 10: Key Messages – Q2'23
KEY MESSAGES – Q2’23 Q2’23 net sales declined 7% (CC) to $1.15B, as the industry continues to operate in a volatile macro environment. For the quarter, Video Collaboration and Pointing Devices grew year-over-year, and Gaming showed nice sequential improvement in year-over-year growth. As indicated l
Slide 11: Managed Opex and Sustained Profitability in Challenging Environment
MANAGED OPEX AND SUSTAINED PROFITABILITY IN CHALLENGING ENVIRONMENT Q2’23 Q2’22 Y/Y Net sales down 7% (CC) to $1.15B, reflecting Net sales 1,149 1,306 (12%) uneven and volatile economic conditions around ___Y/Y % chg (12%) 4% the globe ___Y/Y % chg (CC) (7%) 2% Gross margin was 38.6%, due to inflati
Slide 12: Long Term Secular Trends Continue to Drive Portfolio
LONG TERM SECULAR TRENDS CONTINUE TO DRIVE PORTFOLIO % of Q2’23 Q2’22 Y/Y Y/Y (CC) Total Revenues from products addressing long term trends - Sales Gaming, Video Collaboration, Keyboards & Combos and Pointing Devices - were 80% of our total sales and Gaming1 298 331 (10%) (4%) 26% up 1% excluding cu
Slide 13: Growth in Asia Pacific Partially Offset Declines in Americas, EMEA
GROWTH IN ASIA PACIFIC PARTIALLY OFFSET DECLINES IN AMERICAS, EMEA Y/Y Y/Y Sell-through Americas and EMEA declined overall, despite Q2’23 Q2’22 (CC) (US$) (US$) growth in Video Collaboration in both regions Americas 492 542 (9%) (9%) (6%) Asia Pacific, led by gains in Gaming and Video Asia Pacific 3
Slide 14: Gross Margins Impacted by Currency, Inflation Headwinds
GROSS MARGINS IMPACTED BY CURRENCY, INFLATION HEADWINDS Gross margin was 38.6%, down year over year due to increased costs and unfavorable currency headwinds 2pts FX1 Increases in component costs and logistics rates and foreign exchange pressure, were only 38.6% partially offset by a reduction in ai
Slide 15: Took Swift Actions to Reduce Operating Expenses
TOOK SWIFT ACTIONS TO REDUCE OPERATING EXPENSES Q2’23 Q2’22 Y/Y Sales & Marketing expenses were reduced 21%, Sales & marketing 195 247 (21%) reflecting disciplined management of P&L ___% of sales 16.9% 18.9% (196 bps) R&D increased 3%, as investment in product Research & development 66 64 3% develop
Slide 16: Strong Capital Returns to Shareholders
STRONG CAPITAL RETURNS TO SHAREHOLDERS Q2’23 Q2’22 Q/Q Y/Y Ending cash balance of $869M, as we returned Cash from operations 73 (63) 109 136 $276M to shareholders through our annual dividend and share repurchases Ending cash balance 869 1,137 (238) (269) Inventory 880 828 (37) 52 Cash flow from oper
Slide 17: FY'23 Updated Outlook
FY’23 UPDATED OUTLOOK FY’23 OUTLOOK Sales growth (CC) (8%) - (4%) Non-GAAP operating income $650M - $750M ADDITIONAL ASSUMPTIONS Approximately -5 ppts delta between USD and CC growth year over Currency exchange rates year, based on H1 actuals and H2 rates as of October 1 Non-GAAP effective tax rate
Slide 18: Appendix
APPENDIX
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 19
Slide 20: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 20
Slide 21: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and six months ended September 30, 2022 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 22: 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 23: Logitech
logitech
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