Logitech International S.a. · SIX:LOGN
Logitech International — Q1 2023 Earnings Presentation
21 slides from Logitech International's earnings presentation, Jul 26, 2022
Slide 1: Q1 Fiscal Year 2023 Financial Results
Q1 Fiscal Year 2023 Financial Results July 25, 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 months ended June 30, 2022, secular trends and opportunities,
Slide 3: What's New From Logitech?
What’s New From Logitech?
Slide 4: Keyboards & Combos: Enterprise combos for business
KEYBOARDS & COMBOS MX Keys Mini Combo for Business Insert pictures of both Signature MK650 Combo for Business Logitech launched two enterprise mouse-keyboard combos designed to improve employee experience and productivity. The new combos include Logi Bolt wireless security, are compatible with Logi
Slide 5: Keyboards & Combos: MX Mechanical and MX Master 3S
KEYBOARDS & COMBOS MX Mechanical | MX Mechanical Mini Insert pictures of both MX Master 3S Logitech also expanded its Master Series, with the introduction of two new mechanical keyboards - the full-size MX Mechanical and minimalist MX Mechanical Mini – and MX Master 3S mouse. Logitech’s Master Serie
Slide 6: Sustainability
SUSTAINABILITY The MX Mechanical wireless keyboard was designed with sustainability in mind. The MX Mechanical wireless keyboard is a case study in Logitech's Design for Sustainability (DfS) approach to product development. The chassis and keys on MX Mechanical have been specifically designed to opt
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: Key Messages – Q1'23
KEY MESSAGES – Q1’23 Q1’23 net sales declined 9% (CC) to $1.16B, as category and geographical results were uneven, reflecting a volatile macroeconomic environment. In the quarter, we had growth in Video Collaboration, Keyboards & Combos and Pointing Devices. And despite declines in Webcams and Gamin
Slide 9: P&L Remains Solid Despite Challenging Global Economy
P&L REMAINS SOLID DESPITE CHALLENGING GLOBAL ECONOMY Q1’23 Q1’22 Y/Y Net sales down 9% (CC) to $1.16B, reflecting Net sales $1,160 $1,312 (12%) uneven and volatile economic conditions around Y/Y % chg (12%) 66% the globe Y/Y % chg (CC) (9%) 58% Gross margin was 40.0% despite inflation, Gross profit
Slide 10: Long Term Secular Trends Remain Durable Despite Near Term Headwinds
LONG TERM SECULAR TRENDS REMAIN DURABLE DESPITE NEAR TERM HEADWINDS Q1’23 Q1’22 Y/Y Y/Y (CC) % of Total Gaming, Video Collaboration, Keyboards & Combos Sales and Pointing Devices revenues, 81% of our total sales, Gaming 283 335 (16%) (13%) 24% were flat (CC) compared to Q1’22 Video Collaboration 246
Slide 11: Asia Pacific Demonstrated Strong Growth to Start the Year
ASIA PACIFIC DEMONSTRATED STRONG GROWTH TO START THE YEAR Q1’23 Q1’22 Y/Y Y/Y Sell-through Americas and EMEA declined, after growing 70% and (CC) (US$) (US$) 56%, respectively, the prior year Americas 502 613 (18%) (18%) (7%) Asia Pacific 367 342 11% 7% (1%) Asia Pacific held up well, growing 11% in
Slide 12: Gross Margin Remains in Long Term Range
GROSS MARGIN REMAINS IN LONG TERM RANGE Gross margin was 40.0%, nearly flat sequentially, and within our long term range Increases in component costs and ocean and air shipping rates, and foreign exchange pressure, were only partially offset by lower air freight costs and favorable category mix Cont
Slide 13: Focused on Reducing Variable Cost While Sustaining Investment
FOCUSED ON REDUCING VARIABLE COST WHILE SUSTAINING INVESTMENT TO SUPPORT FUTURE GROWTH Q1’23 Q1’22 Y/Y Sales & marketing 220 244 (10%) Continued to reduce variable costs as Sales & Marketing expenses were down 10% % of sales 18.9% 18.6% 30 bps Research & development 70 64 9% R&D increased 9%, reflec
Slide 14: Balance Sheet Remains Strong, Supports Return of Capital to Shareholders
BALANCE SHEET REMAINS STRONG, SUPPORTS RETURN OF CAPITAL TO SHAREHOLDERS Q1’23 Q1’22 Q/Q Y/Y Ending cash balance of $1.1B and Q1 cash from Cash from operations (36) (115) (136) 79 operations of ($36M) Ending cash balance 1,107 1,498 (222) (391) Returned nearly $121M to shareholders through share Inv
Slide 15: FY'23 Updated Outlook
FY’23 UPDATED OUTLOOK FY’23 OUTLOOK NEW OLD Sales growth (CC) (8%) - (4%) 2% - 4% Non-GAAP operating income $650M - $750M $875M - $925M ADDITIONAL ASSUMPTIONS Approximately -4ppts delta between USD and CC growth year over year, Currency exchange rates based on rates as of July 1 Non-GAAP effective t
Slide 16: Appendix
APPENDIX APPENDIX
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 17
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 18
Slide 19: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three months ended June 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 supplement our conden
Slide 20: 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 21: Logitech
logitech
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