Logitech International S.a. · SIX:LOGN
Logitech International — Q1 FY2018 Earnings Presentation
25 slides from Logitech International's earnings presentation, Jul 25, 2017
Slide 1: Q1 Fiscal Year 2018 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 growth, vision, momentum, long-term gross margin target, ability to expand our capacity and capabilities,
Slide 3: Key Messages - Q1 FY2018
KEY MESSAGES —- Q1 FY2018 Strong momentum, with sales growth of 13% (CC) to $530M Video Collaboration, Gaming, and Smart Home sales up over 40% (CC) Gross margins within our targeted range of 35-37%, enabling us to expand our capacity in global go-to-market, R&D, and marketing Operating profits rose
Slide 4: What's New from Logitech
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Slide 5: Gaming
GAMING POWERPLAY is the world’s first wireless charging system for gaming mice that provides continuous charging Now you can charge your gaming mice while you are simultaneously playing or at rest Our newest LIGHTSPEED wireless technology offers esports-level responsiveness at speeds faster than man
Slide 6: Gaming
GAMING and gaming headsets combine superior audio performance with a lightweight, comfortable, and fashion-forward design Feature advanced Pro-G drivers that provide high-quality audio Include a removable, high-quality boom microphone with a micro pop filter Available in four colors: Royal Blue, Fir
Slide 7: Video Collaboration
VIDEO COLLABORATION Logitech MeetUp is designed specifically for small conference rooms and huddle rooms Compact all-in-one design combines 120-degree field of view with acoustics custom-tuned for huddle rooms Features low-distortion lens, UltraHD 4K optics, three sound-isolating mics, and a voice-o
Slide 8: PC Peripherals
PC PERIPHERALS Logitech Flow is our newest and free software enhancement to our MX family of mice Seamlessly control up to three computers with one mouse Copy and paste content, images, and documents between three computers — even between a Mac and a PC Aj ih,
Slide 9: Tablet Accessories
TABLET ACCESSORIES Logitech Slim Combois a protective cover and detachable keyboard for Apple’s 10.5” and 12.9” iPad Pro Detachable keyboard connects to the iPad Pro via its Smart Connector No need for charging cables, batteries, or pairing Full-size keyboard is backlit and has a dedicated row of iO
Slide 10: Tablet Accessories
TABLET ACCESSORIES Logitech Rugged Combo, Rugged Case, and Add-on Keyboard for Rugged Case for Apple’s 9.7” iPad Complete solution designed specifically for students and teachers Available for purchase by schools and school districts in the U.S. and Canada
Slide 11: Smart Home
SMART HOME Logitech Circle 2 is our latest indoor and outdoor, weatherproof, wired or 100% wire-free home security camera 1080p HD camera offers night vision and up to 180-degree field-of-view Various accessories are available: window mount, rechargeable battery, plug mount, and weatherproof extensi
Slide 12: Matterhorn
Matterhorn ° 14,692 ft > Hérnili Zmutt
Slide 13: Q1'18 Financial Summary
Q1'18 Q1'17 YoY Net Sales 530 480 10% YoY% 10% 7% YoY% CC 13% 7% Gross Profit 196 171 15% % of Net Sales 37.0% 35.6% 140bp Operating Expenses 153 133 15% % of Net Sales 28.9% 27.7% 120bp Operating Income 43 38 14% % of Net Sales 8.1% 7.9% 20bp Net Income 40 33 20% % of Net Sales 7.5% 6.9% 60bp Earni
Slide 14: Net Sales by Product Category
Net Sales (USD) Q1'18 Q1'17 YoY YoY CC Pointing Devices 122 117 5% 6% Productivity Creativity & Keyboards & Combos 116 118 (2%) 0% PC Webcams 26 25 1% 3% Tablet & Access 23 14 67% 71% VC Video Collaboration 36 24 49% 51% Mobile Speakers 63 57 10% 10% Music Audio PC & Wearables 50 57 (11%) (10%) Gami
Slide 15: Net Sales by Region
Net Sales (USD) Sell- Through Q1'18 Q1'17 YoY YoY CC YoY Americas 245 223 10% 11% 14% EMEA 151 143 5% 11% 15% Asia Pacific 134 114 17% 19% 22% Net Sales 530 480 10% 13% 16% Regional Sales YoY% CC 30% 22% 23% 20% 19% 17% 14% 13% 11% 11% 11% 11% 8% 6% 8% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18
Slide 16: Non-GAAP Gross Margin
Non-GAAP Gross Margin 40.0% 39.2%1 39.0% 38.0% 37.4% 37.0% 37.0% 37.0% 35.6% 36.0% 35.0% 34.0% 33.0% 32.0% 31.0% 30.0% Q1'17 Q2'17 Q3'17 Q4'17 Q1'18
Slide 17: Operating Expenses
Q1'18 Q1'17 YoY Sales & Marketing 98 80 22% % of Sales 18.5% 16.8% 170bp Research & Development 34 31 8% % of Sales 6.3% 6.5% (20bp) General & Administrative 21 22 (1%) % of Sales 4.0% 4.5% (50bp) Operating Expenses 153 133 15% % of Sales 28.9% 27.7% 120bp
Slide 18: Cash Flow and Balance Sheet Metrics
Q1'18 Q1'17 YoY 1 Cash from Operations (1) 17 (18) Ending Cash Balance 528 440 88 Inventory 279 248 32 Inventory Turns 4.8 5.0 (0.2 Turns) DSI 75 72 3 Days Accounts Receivable 221 192 29 DSO 38 36 2 Days Accounts Payable 313 293 20 DPO 84 85 (1 Days) Cash Conversion Cycle 29 23 6 Days
Slide 19: Raising Fiscal Year 2018 Outlook
RAISING FISCAL YEAR 2018 OUTLOOK FY2018 OUTLOOK NEW OLD Sales CC growth Up 10-12% ' Up high-single digits Non-GAAP operating income $260 - 270M ' $250 - 260M ASSUMPTIONS Currency Approximately FY17 average rates Non-GAAP effective tax rate ~8-9% Cash from operations ~1x non-GAAP operating income Cap
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Slide 21: 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 June 30, SUPPLEMENTAL FINANCIAL INFORMATION 2017 2016 Gross profit - GAAP $ 193,668 $ 168,626 Share-based compens
Slide 22: 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 June 30, SUPPLEMENTAL FINANCIAL INFORMATION 2017 2016 ‘Operating income - GAAP $ 31425 S$ 25,655 Share-based comp
Slide 23: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and twelve months ended June 30, 2017 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
Slide 24: 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 25: Logitech
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