Slide 1: Q4 Fiscal Year 2017 Financial Results
logitech Q4 Fiscal Year 2017 Financial Results Lausanne, April 26, 2017
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 product category strategies, product category growth and trends, regional growth, consistent profitable gr
Slide 3: Key Message - Q4 FY17
KEY MESSAGE - @4 FY17 Highest retail sales growth over the past six years, with retail sales up 17% (CC) to $496M PC peripherals, Video Collaboration, Mobile Speaker, Gaming, and Smart Home sales all grew double digits Record-high gross margins of 37.4% allowed us to re-invest in our capabilities to
Slide 4: Key Message - Fiscal Year 2017
KEY MESSAGE —- FISCAL YEAR 2017 Fourth consecutive year of retail sales growth, with retail sales up 14% (CC) to $2.2B Nearly all products delivered sales growth, with 70% of products posting double-digit gains Gross margins of 36.9% improved 300 basis points, driven by continued focus on cost conta
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Slide 6: Pointing Device
POINTING DEVICE lets you effortlessly navigate slides and interact with on-screen content from up to 100 feet away Advanced pointer system enables you to highlight and magnify points on your slide in great detail Mouse-like cursor control to play videos and open links Spotlight app allows you to tog
Slide 7: Webcam
WEBCAM BRIO 4K Pro Webcam is our most sophisticated webcam yet, delivering high- quality desktop video experience Packed with industry-leading features, including Logitech RightLight 3 with HDR, 4K Ultra HD video quality, and 5x zoom Supports Windows Hello and other secure infrared-based facial reco
Slide 8: Mobile Speakers
MOBILE SPEAKERS is our new pint-sized speaker with big sound Available in six colors: Stone (grey), Phantom (black), Fireball (red), SubZero (blue), Cashmere (pink), and Lilac 360-degree sound with immersive, balanced bass and is drop-proof from up to five feet 10-hour battery life and 100-foot wire
Slide 9: Gaming
GAMING ® im Logitech G Pro Mechanical Gaming nN 5 Keyboard is designed in collaboration 2 a with top eSports athletes Q Ww High performance, ten keyless mechanical gaming keyboard that is purpose-built for professional & competition Exclusive Romer-G mechanical switches, SAE offering 25% faster actu
Slide 10: Smart Home
SMART HOME Harmony Hub now works with the Google Assistant on Google Home in addition to previously announced integration with Amazon Alexa “Ok Google, ask Harmony to...” “,..turn on Hulu or HBO Go” “,..turn on ESPN or ABC News” “...turn up the volume” “...skip forward or skip back”
Slide 11: Matterhorn
Matterhorn ° 14,692 ft > Hérnili Zmutt
Slide 12: Retail Net Sales and Income Statement Summary
Q4'17 Q4'16 YoY FY'17 FY'16 YoY Retail 496 431 15% 2,207 1,947 13% Net Sales 496 431 15% 2,207 2,018 9% Retail YoY% 15% 4% 13% 3% Retail YoY% CC 17% 6% 14% 9% Company YoY% 15% (3%) 9% 1% Gross Profit 186 143 30% 814 683 19% % of Net Sales 37.4% 33.1% 430bp 36.9% 33.9% 300bp Operating Expenses 149 12
Slide 13: Sales by Product Category
Q4'17 YoY YoY CC FY'17 YoY YoY CC Pointing Devices 116 4% 6% 498 1% 2% Creativity & Prodctivity Keyboards & Combos 118 12% 14% 478 11% 12% PC Webcams 26 11% 13% 107 8% 9% Tablet & Access 17 (45%) (43%) 76 (27%) (26%) VC Video Collaboration 37 70% 73% 125 40% 42% Mobile Speakers 38 61% 61% 299 30% 30
Slide 14: Retail Net Sales by Region
Retail Net Sales (USD) Sell- Through Q4'17 Q4'16 YoY YoY CC YoY Americas 210 162 30% 30% 12% EMEA 156 151 3% 7% 19% Asia Pacific 130 118 10% 11% 11% Total 496 431 15% 17% 14% Retail Sales Constant Currency 30% 26% 22% 23% 19% 20% 15% 14% 13% 11% 10% 10% 11% 9% 8% 12% 10% 1% 7% 7% 7% 8% 7% Q1'16 Q2'1
Slide 15: Non-GAAP Gross Margin
38.0% Non-GAAP Gross Margin 37.4% 37.4% 37.0% 37.0% 36.0% Target 35.4% 35.6% 35.0% 34.0% 33.6% 33.4% 33.1% 33.0% 32.0% 31.0% 30.0% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17
Slide 16: Operating Expenses: Sales & Marketing, R&D
Q4'17 Q4'16 YoY FY'17 FY'16 YoY Sales & Marketing 96 74 29% 365 310 18% % of Retail Sales 19.3% 17.3% 200bp 16.5% 15.9% 60bp % of Sales 19.3% 17.3% 200bp 16.5% 15.3% 120bp Research & Development 32 26 23% 126 110 15% % of Retail Sales 6.5% 6.1% 40bp 5.7% 5.7% 0bp % of Sales 6.5% 6.1% 40bp 5.7% 5.5%
Slide 17: Cash Flow and Working Capital
Q4'17 Q4'16 YoY FY'17 FY'16 YoY Cash from Operations 44 32 38% 279 183 52% Ending Cash Balance 548 519 5% 548 519 5% Inventory 253 229 11% 253 229 11% Inventory Turns 4.9 5.0 (0.1 Turns) 5.5 5.0 0.5 Turns DSI 73 71 2 Days 65 62 3 Days Accounts Receivable 175 143 22% 175 143 22% DSO 32 30 2 Days 29 2
Slide 18: Reiterating Fiscal Year 2018 Outlook
REITERATING FISCAL YEAR 2018 OUTLOOK FY18 OUTLOOK Sales CC growth High single digit Non-GAAP operating income $250 - 260M ASSUMPTIONS Currency FY17 average rates Non-GAAP effective tax rate ~9% Cash from operations ~1x non-GAAP operating income Capex ~$50M Note: Share count dependent on various fact
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Slide 20: 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 March 31, SUPPLEMENTAL FINANCIAL INFORMATION 2017 2016 Gross profit - GAAP $183,392 $142,100 ‘Share-based compensat
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 March 31, SUPPLEMENTAL FINANCIAL INFORMATION 2017 2016 Operating income - GAAP’ $ 21,931 $ 10,355 ‘Share-based comp
Slide 22: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and twelve months ended March 31, 2017 are subject to adjustments, including subsequent events that may occur through the date of filing our Annual Report on Form 10-K. (A) Non-GAAP Financial Measures To supplement o
Slide 23: 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 24: Logitech
logitech