Logitech International S.a. · SIX:LOGN
Logitech International — Q4 FY2020 Earnings Presentation
22 slides from Logitech International's earnings presentation, May 11, 2020
Slide 1: Q4 and Full Fiscal Year 2020 Financial Results
logitech Q4 and Full Fiscal Year 2020 Financial Results May 11, 2020
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, 2020, the importance an
Slide 3: Key Messages — Q4 FY 2020
KEY MESSAGES — @4 FY 2020 Q4'20 sales grew 15% (CC) to $709M, with strong momentum early in the quarter that further accelerated in March due to work-from-home and shelter-in-place mandates Gross margin reached a record 39.8%, driven by better product mix and cost reductions Operating profits increa
Slide 4: Key Messages — Fiscal Year 2020
KEY MESSAGES — FISCAL YEAR 2020 Fifth year at or near double-digit growth, with sales up 9% to a record $2.98B Delivered another year of mid single-digit sales growth in PC Peripherals and double-digit growth in Video Collaboration and Gaming (in 2H’20) Overcame 2 ppts of China tariff and currency h
Slide 5: What's New from Logitech
"S NEW FROM LOGITECH WHAT
Slide 6: PC Webcams
PC WEBCAMS Logitech StreamCam is a new webcam designed specifically for streamers and digital content creators Features 1080p/60 fps video, USB-C connectivity, and flexible mounting options Also includes facial recognition smart focus and exposure and Al-enabled smart framing Comes with stereo and d
Slide 7: Gaming
GAMING offers gaming-grade performance, versatility and a classic design at a great value Features 6 customizable buttons and a high-precision sensor with adjustable DPI up to 8000 DPI LIGHTSYNC RGB lighting includes a palette of up to 16.8M colors and different brightness levels Response time is up
Slide 8: Tablets & Accessories
TABLETS & ACCESSORIES Logitech Combo Touch is our first keyboard case with integrated trackpad for the iPad, iPad Air, and iPad Pro The new trackpad gives users an on- screen cursor to edit documents and to navigate with familiar gestures A full row of shortcut keys provides one- tap access to a var
Slide 9: Financial Results
— we FINANCIAL RESULTS
Slide 10: Exited FY'20 on a Strong Note
EXITED FY’20 ON A STRONG NOTE [Net sales | sop | sz | 7% YoY % chg (USS) 14% YoY % chg (CC) 15% 9% Gross profit 282 19% 1,142 8% % margin 39.8% 180 bps 38.4% 60 bps Operating expense 203 18% 755 8% % of sales 28.7% 100 bps 25.4% 20 bps % margin 11.1% 80 bps 13.0% 40 bps Net income 71 10% 365 8% % ma
Slide 11: Logitech Products Even More Relevant Today
LOGITECH PRODUCTS EVEN MORE RELEVANT TODAY Pointing Devices $135 Keyboards & Combos 148 PC Webcams 40 Tablet & Accessories 32 Video Collaboration 11 Mobile Speakers 21 Audio & Wearables 65 Gaming 149 Smart Home 8 3% 12% 32% 36% 60% (7%) 0% 8% (28%) 4% 13% 34% 37% 62% (5%) 1% 10% (27%) $545 572 129 1
Slide 12: Americas Growth Accelerated in Q4'20
AMERICAS GROWTH ACCELERATED IN Q4’20 BEES eee (CC) S$) (US$) home and shelter-in-place mandates Americas $316 $244 30% 29% 24% drove an acceleration in several key EMEA 221 214 7% 4% 19% categories Asia Pacific 3% EMEA sales growth moderated to +7% SiS) || Gen (CC), although sell-through was Sales g
Slide 13: Record Gross Margin Despite Headwinds
RECORD GROSS MARGIN DESPITE HEADWINDS 41% 40% 39% 38% 37% 36% 35% 34% Note: Figures for Q1’19 are for illustrative purposes only. One-time benefit from legal settlement ' Ql'1g Q2'19 Non-GAAP Gross Margin Q3'19 Q419 Q1'20 Q2'20 Q3'20 Q4'20 Q4’20 gross margin expanded 180 basis points to a record 39.
Slide 14: OPEX Investments to Capture Market Growth
OPEX INVESTMENTS TO CAPTURE MARKET GROWTH Sales & marketing $134 18% $506 8% % of sales 18.9% 60 bps 17.0% 20 bps Research & development 47 19% 168 9% % of sales 6.7% 30 bps 5.7% 20 bps General & administrative 22 15% 80 0% % of sales 3.1% 10 bps 2.7% (20 bps) % of sales 28.7% 100bps 25.4% 20 bps Op
Slide 15: All-Time Highs in Cashflows and Cash Balance
ALL-TIME HIGHS IN CASHFLOWS AND CASH BALANCE cv] ver | Cash flow from operations $101 Ending cash balance $716 Inventory $229 Inventory turns 7.5 DSI (days) 48 Accounts receivable $395 DSO (days) 50 Accounts payable $259 DPO (days) 54 Cash conversion cycle (days) | 44 | (13 days) | 43 | (8 days) 218
Slide 16: Fiscal Year 2021 Outlook
FISCAL YEAR 2021 OUTLOOK FY 2021 OUTLOOK Sales growth Mid single-digit Non-GAAP operating income $380 - 400M US/China tariffs No change to current tariff rates Currency exchange rates FY 2020 average rates Non-GAAP effective tax rate 8-9% Cash from operations ~1x non-GAAP operating income Capex $40
Slide 17: Appendix
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 GAAP TO NON GAAP RECONCILIATION © Three Months Ended Fiscal Years Ended March 31, March 31, SUPPLEMENTAL FINANCIAL INFORMATION 2020 2019 2020 2019 Gross profit - GAA
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 GAAP TO NON GAAP RECONCILIATION © Three Months Ended Fiscal Years Ended March 31, March 31, SUPPLEMENTAL FINANCIAL INFORMATION 2020 2019 2020 2019 Operating income -
Slide 20: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three months and fiscal year ended March 31, 2020 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K. (A) Swiss Federal Tax Reform The change in
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
logitech
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