Logitech International S.a. · SIX:LOGN
Logitech International — Q4 2021 Earnings Presentation
22 slides from Logitech International's earnings presentation, Apr 29, 2021
Slide 1: Q4 Fiscal Year 2021 Financial Results
Q4 Fiscal Year 2021 Financial Results’» April 28, 2021 , looitech ww
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 full fiscal year ended March 31, 2021, long-term gr
Slide 3: Key Messages - Q4 FY 2021
KEY MESSAGES —- Q4 FY 2021 Q4'21 sales increased a record 108% (CC) to $1.54B, an acceleration of growth versus prior quarters and demonstrated the sustainability of several large secular trends that are driving growth across our product categories Gross margin expanded to 46.6% due to stronger-than
Slide 4: Key Messages - Fiscal Year 2021
KEY MESSAGES — FISCAL YEAR 2021 8th year of consecutive sales growth', with FY’21 sales up 74% (CC) and over $2.2B versus the prior year Our three largest categories reached new milestones, with Creativity & Productivity (C&P) sales over $2B and both Video Collaboration and Gaming sales each exceedi
Slide 5: What's New from Logitech
WHAT'S NEW FROM LOGITECH
Slide 6: Marketing
—A————i~ — — MARKETING (Fass
Slide 7: Environmental, Social, Governance (ESG)
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) = © — PR WIRELESS kg CO2e On Earth Day, we announced an . ; , Neutral to include detailed carbon impact — transparency labeling on all product packaging across our entire portfolio Like nutrition labels on food packaging, we believe that consumers should be em
Slide 8: Tablet & Accessories
TABLET & ACCESSORIES Logitech Combo Touch is now available for the new iPad Pro 11” and coming soon for iPad Pro 12.9” Introduces the largest trackpad for a keyboard case that allows users to click anywhere on the surface while offering an even thinner protective case Features multiple use modes wit
Slide 9: Financial Results
~ FINANCIAL R
Slide 10: FY'21 Sets a New Baseline for Future Growth
FY’21 SETS A NEW BASELINE FOR FUTURE GROWTH 1 Y/Y ee ce Retscies | suse TT Y/Y % chg 117% 76% Y/Y % chg (CC) 108% 74% Gross profit 716 154% 2,356 106% % margin 46.6% 680 bps 44.8% 640 bps Operating expense 391 92% 1,083 44% % of sales 25.5% (320 bps) 20.6% (480 bps) % margin 21.2% 1010 bps 24.2% 112
Slide 11: Multiple Growth Drivers... Today and Future
MULTIPLE GROWTH DRIVERS ... TODAY AND FUTURE areas al vee Pointing Devices 31% 27% Keyboards & Combos 219 48% 44% PC Webcams 145 261% 248% Tablet & Accessories 117 268% 254% Video Collaboration 386 248% 233% Mobile Speakers 30 40% 32% Audio & Wearables 130 100% 94% Gaming 323 117% 108% Smart Home 1%
Slide 12: Broad-Based Growth Across All Regions
BROAD-BASED GROWTH ACROSS ALL REGIONS Y/Y Y/Y _ |Sell-through| (CC) S$) (US$) Americas 92% N% 51% EMEA 588 221 144% 166% 82% Asia Pacific 344 172 89% 100% 83% 180% 180% Sales growth Y/Y % (CC) Sales growth Y/Y % (US$) 160% 160% 140% 140% 120% 120% 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% (20%) (
Slide 13: Continued Strong Gross Margin
CONTINUED STRONG GROSS MARGIN 48% 46% 44% 42% 40% 38% 36% 34% Q1'20 Q2'20 Non-GAAP Gross Margin Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q4'21 gross margin increased 680 basis points to 46.6% versus Q4’20 ... ... While FY’21 gross margin expanded 640 basis points to 44.8% due to robust sales volume, lowe
Slide 14: Opex Investments to Capture Future Growth
OPEX INVESTMENTS TO CAPTURE FUTURE GROWTH a es Ee Sales & marketing 97% % of sales 17.2% (170 bps) Research & development 65 37% % of sales 4.2% (250 bps) General & administrative 62 184% % of sales 4.0% 90 bps Operating expenses $391 $1,083 20.6% (480 bps) % of sales 25.5% (320 bps) 14.0% 212 4.0%
Slide 15: Record Cash Flow Generation
RECORD CASH FLOW GENERATION Cash flow from ops (Q4/21) 530 426% Cash flow from ops (FY‘21) 1,459 243% Ending cash balance (Mar ‘21) 1,750 145% Inventory 661 188% Inventory turns 5.0 (2.6 turns) DO! 72 24 days Accounts receivable 612 55% DSO 36 (14 days) Accounts payable 823 218% DPO 90 36 days Cash
Slide 16: Raising Fiscal Year 2022 Outlook
RAISING FISCAL YEAR 2022 OUTLOOK FY 2022 OUTLOOK NEW OLD Sales growth (CC) -5% to +5% -5% to +5% Non-GAAP operating income $800 - 850M $750 - 800M Currency exchange rates FY’21 average rates! Non-GAAP effective tax rate 11-12% Cash from operations ~1x non-GAAP operating income Capex $80 - 90M Note:
Slide 17: Appendix
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS LOGITECH INTERNATIONAL S.A. PRELIMINARY RESULTS* (In thousands, except per share amounts) - Unaudited SUPPLEMENTAL FINANCIAL INFORMATION Three Months Ended Fiscal Years Ended March 314, March 314, GAAP TO NON GAAP RECONCILIATION () 2021 2020 2021 2020 Gross profit -
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS LOGITECH INTERNATIONAL S.A. PRELIMINARY RESULTS* (in thousands, except per share amounts) - Unaudited SUPPLEMENTAL FINANCIAL INFORMATION Three Months Ended Fiscal Years Ended March 34, March 31, GAAP TO NON GAAP RECONCILIATION 2024 2020 2021 2020 Operating income - G
Slide 20: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three months and full fiscal year ended March 31, 2021 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K. (A) Non-GAAP Financial Measures To su
Slide 21: 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 22: Logitech
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