Logitech International S.a. · SIX:LOGN
Logitech International — Q2 2021 Earnings Presentation
22 slides from Logitech International's earnings presentation, Oct 20, 2020
Slide 1: Q2 Fiscal Year 2021 Financial Results
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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 September 30, 2020, product demand, product suppl
Slide 3: Key Messages — Q2 FY 2021
KEY MESSAGES — Q2 FY 2021 Q2'21 sales grew 73% (CC) to $1.26B, the first time sales reached $1B in a quarter, driven by strong demand for our products that help people work, game, engage, and connect with coworkers, friends, and family Gross margin rose to 45.7% due to increased sales volume, lower
Slide 4: What's New from Logitech
Slide 5: Gaming: racing wheel
GAMING is a high-performance racing wheel that revolutionizes the simulation racing experience Features , a new high- definition feedback system that dials into a game’s physics and audio engine to deliver an ultra-realistic sensation Has been modernized with a brushed metal steering wheel, polished
Slide 6: Gaming: color collection
GAMING brings a new series of gaming gear that celebrates self expression and fun The comes in four vibrant colors and features new colorful and reversible suspension headbands Rounding out the Color Collection are black or white versions of the G915 TKL wireless mechanical keyboard and black, white
Slide 7: Creativity & Productivity: MX Anywhere
CREATIVITY & PRODUCTIVITY Logitech MX Anywhere 3 is the latest addition to the premium MX line of products Featuring a compact, low-profile design for advanced creators, developers and anyone who seeks performance, portability, and comfort anywhere they need to work Enhanced with the next-generation
Slide 8: Creativity & Productivity: Folio Touch
CREATIVITY & PRODUCTIVITY Logitech Folio Touch is the newest flexible keyboard case with integrated trackpad for the new iPad Air Features a versatile laptop-like keyboard that connects to the iPad Air via the Smart Connector for instant pairing and power Work in apps like Pages, Numbers and Keynote
Slide 9: Financial Results
Slide 10: Q2'21 Delivered Record Sales and Profits
Q2'21 DELIVERED RECORD SALES AND PROFITS P| em | are | sias7_| sro Y/Y % chg 75% 4% Y/Y % chg (CC) 73% 6% Gross profit 574 277 108% % margin 45.7% 38.4% 730 bps Operating expense 221 187 18% % of sales 17.6% 26.0% (840 bps) % margin 28.1% 12.4% 1570 bps Net income 320 85 276% % margin 25.4% 11.8% 13
Slide 11: Large Secular Trends Continued to Accelerate
LARGE SECULAR TRENDS CONTINUED TO ACCELERATE ere ea) Pointing Devices 27% 26% Keyboards & Combos 202 139 45% 44% PC Webcams 102 29 256% 258% Tablet & Accessories 83 34 145% 144% Video Collaboration 237 90 164% 161% Gaming 298 161 85% 84% Mobile Speakers 44 57 (24%) (25%) Audio & Wearables 114 68 68%
Slide 12: Record Demand Continued Across All Regions
RECORD DEMAND CONTINUED ACROSS ALL REGIONS YY Y/Y _ |Sell-through All three regions benefited from our fast- (Cc) S$) (55) growing large secular trends, with Americas 85% 83% 50% double-digit and triple-digit growth in VTE xe = Bs CER 205% several product categories 9 9 9 Asia Pacific 69% 70% 60% Se
Slide 13: Gross Margin Reached an All-Time High
GROSS MARGIN REACHED AN ALL-TIME HIGH Non-GAAP Gross Margin 46% 44% 42% 40% Long-term target range 38% 36% 34% Q1'20 Q2'20 Q3'20 Note: Figures are for illustrative purposes only. Q4'20 Q1'21 Q2'21 Q2’21 gross margin increased 730 basis points to a record 45.7% as a result of significantly stronger s
Slide 14: Opex Investments to Accelerate in H2'21
OPEX INVESTMENTS TO ACCELERATE IN H2’21 RU increased investments ceross our Sales & marketing strategic priorities in product % of sales 11.8% 17.7% (590 bps) development, sales coverage and Research & development 50 40 25% brand development % of sales 3.9% 5.5% (160 bps) H2’21 operating expense gro
Slide 15: Strong Balance Sheet and Working Capital Management
STRONG BALANCE SHEET AND WORKING CAPITAL MGMT RUM Sein necer sam runesto Cash from operations shareholders in the quarter Ending cash balance 917 574 343 108 Inventory 395 338 56 124 In Q2, we paid $147M in dividends and Inventory turns 7.0 5.3 1.7 turns (0.2 turns) repurchased $22M of stock po! 82
Slide 16: Raising Fiscal Year 2021 Outlook
RAISING FISCAL YEAR 2021 OUTLOOK FY 2021 OUTLOOK NEW OLD Sales growth (CC) 35-40% 10-13% Non-GAAP operating income $700 - 725M $410- 425M Currency exchange rates H1’21 actuals and H2’21 projections! Non-GAAP effective tax rate 10 - 11% Cash from operations ~1x non-GAAP operating income Capex $75 - 8
Slide 17: Appendix
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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 Six Months Ended September 30, September 30, SUPPLEMENTAL FINANCIAL INFORMATION 2020 2019 2020 2019 Gross profi
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 —_Six Months Ended September 30, September 30, SUPPLEMENTAL FINANCIAL INFORMATION. 2020 2019 2020 2019 Operating
Slide 20: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the month ended September 30, 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 condense
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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