Logitech International S.a. · SIX:LOGN
Logitech International — Q3 2021 Earnings Presentation
22 slides from Logitech International's earnings presentation, Jan 19, 2021
Slide 1: Q3 Fiscal Year 2021 Financial Results
Q3 Fiscal Year 20) Financial Results January 18,2021 logitech qa,
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 December 31, 2020, PCR commitments and their impa
Slide 3: Key Messages — Q3 FY 2021
KEY MESSAGES — Q3 FY 2021 Q3'21 sales surged 80% (CC) to $1.67B, continuing the strong momentum from the prior quarter with double- and triple-digit demand growth across most of our product categories Gross margin increased to 45.2% due to strong sales volume, lower promotional spending, favorable p
Slide 4: What's New from Logitech
WHAT'S NEW FROM LOGITECH
Slide 5: Environmental, Social, Governance (ESG)
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) Committed to incorporating post- consumer recycled plastic (PCR) into our products at scale in an effort to reduce our carbon impact and increase circularity of consumer products By the end of 2021, more than 50% of PC mice and keyboards produced will be made
Slide 6: Gaming
GAMING Logitech G PRO X SUPERLIGHT is our lightest wireless esports gaming mouse, weighing less than 63 grams and is nearly 25% lighter than the standard PRO Wireless mouse Also features a faster and more responsive 2.4GHz LIGHTSPEED wireless for untethered play and up to 70 hours of battery life an
Slide 7: Video Collaboration
VIDEO COLLABORATION Logitech Rally and Logitech Rally Bar Mini are premier, all-in-one video conferencing appliances that natively support various VC services, such as Microsoft Teams and Zoom Features 4K video and up to 5X optical zoom, crisp and adaptive audio, and a second camera dedicated to com
Slide 8: Creativity & Productivity
CREATIVITY & PRODUCTIVITY ERGO M575 Wireless Trackball is an elegant wireless trackball with easy thumb control designed to maximize comfort and save space Features a smooth and responsive control and an angled scroll wheel that keeps fingers in a more natural position for all- day comfort Was desig
Slide 9: Financial Results
FINANCIAL RESULTS
Slide 10: Q3'21 Results Showed Continued Momentum
Q3’21 RESULTS SHOWED CONTINUED MOMENTUN ... Ce sor | $903 Y/Y % chg 85% 4% Y/Y % chg (CC) 80% 5% Gross profit 754 340 122% % margin 45.2% 37.6% 760 bps Operating expense 278 188 48% % of sales 16.7% 20.8% (410 bps) % margin 28.6% 16.8% 1180 bps Net income 423 143 195% % margin 25.4% 15.9% 950 bps Ea
Slide 11: Driven by Large Secular Trends
DRIVEN BY LARGE SECULAR TRENDS I Pointing Devices 38% 35% Keyboards & Combos 218 156 40% 36% PC Webcams 132 32 309% 302% Tablet & Accessories 138 31 342% 334% Video Collaboration 293 92 218% 211% Gaming 436 246 78% 73% Mobile Speakers 73 93 (22%) (24%) Audio & Wearables 153 82 87% 83% Smart Home (33
Slide 12: Broad-Based Growth Across All Regions
BROAD-BASED GROWTH ACROSS ALL REGIONS Y/Y Y/Y Sell-through| 21 oc) (cc) (USS) Americas EMEA 547 Asia Pacific 100% 80% 60% 40% 20% Sales growth Y/Y % (CC) 0% | (20%) @1'20 @2'20 @3'20 @4'20 @t'21 @221 @3'21 87% 67% 89% 100% 80% 60% 40% 20% 0% 85% 58% 77% 56% 95% 81% Sales growth Y/Y % (US$) Q1'20 @2'
Slide 13: Continued Strong Gross Margin
CONTINUED STRONG GROSS MARGIN 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 Q3’'21 gross margin increased 760 basis points to 45.2% versus Q3’20 The improved margin was driven by the seasonal surge in sales, reduced promotions, favorable product mix, and
Slide 14: Strategically Accelerating OPEX Investments
STRATEGICALLY ACCELERATING OPEX INVESTMENTS oe 520 ay Sales & marketing % of sales Research & development % of sales General & administrative % of sales Operating expenses $278 $188 % of sales 11.8% 50 3.0% 31 1.9% 16.7% 14.3% 4 4.5% 18 2.0% 20.8% 52% (250 bps) 23% (150 bps) 73% (10 bps) (410 bps) O
Slide 15: Record Cash from Operations
RECORD CASH FROM OPERATIONS oo 5'20 el Cash from operations Ending cash balance 1,389 Inventory 477 Inventory turns 7.7 DOI 47 Accounts receivable 895 DSO 48 Accounts payable 812 Cash conversion cycle 15 days | 32 days | (17 days) | (4 days) 656 307 7.4 49 531 53 439 733 169 0.3 turns (2 days) 364 (
Slide 16: Raising Fiscal Year 2021 Outlook
RAISING FISCAL YEAR 2021 OUTLOOK FY 2021 OUTLOOK NEW OLD Sales growth (CC) 57-60% 35-40% Non-GAAP operating income Approximately $1.05B $700 - 725M Currency exchange rates FY’21 nine months actual and Q4’21 projection! Non-GAAP effective tax rate 11-12% Cash from operations ~1x non-GAAP operating in
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 SUPPLEMENTAL FINANCIAL INFORMATION B “ Gross profit - GAAP Share-based compensation expense Amortization of intangible assets Gross profit - Non-GAAP Gross margin -
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 Nine Months Ended December 31, December 31 rz a 2020 2019 2020 2019 Operating income - GAAP $448,063 $128,828
Slide 20: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three months ended December 31, 2020 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 co
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
Logitech International — Q3 2021 Earnings Presentation on 6ix