Slide 1: Q3 Fiscal Year 2023 Financial Results
Q3 Fiscal Year 2023 Financial Results January 23, 2023
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three and nine months ended December 31, 2022, secular trends and opport
Slide 3: What's New From Logitech?
What’s New From Logitech?
Slide 4: Innovation: 2023 Innovation Award Honorees
INNOVATION 2023 Innovation Award Honorees Logitech won four CES 2023 Innovation Awards: Logitech Litra Beam, Blue Sona, Logi Dock and UE DROPS. The products represent some of the newest innovations from Logitech that enhance experiences and help people pursue their passions across streaming, audio a
Slide 5: Gaming: Vantum
GAMING Vantum Representing another example of the research-focused spirit of the partnership between Herman Miller and Logitech G, the Vantum gaming chair was released in Q3. Vantum is centered on versatility, adaptability and purposefully built for gamers from the ground up, providing the correct l
Slide 6: Sustainability
SUSTAINABILITY Logitech was once again recognized as a member of the Dow Jones Sustainability Europe Index (DJSI). Widely recognized as a standard for measuring and advancing Environmental, Social, and Governance (ESG) criteria, the DJSI recognized Logitech for the third consecutive year. The compan
Slide 7: Financial Results
FINANCIAL RESULTS 7
Slide 8: Key Messages – Q3'23
KEY MESSAGES – Q3’23 Q3’23 net sales declined 17% (CC) to $1.27B, as the industry continues to operate in a volatile macro environment. Despite declines in year-over-year net sales, we grew market share in Gaming, Video Collaboration, Pointing Devices and Tablet Keyboards in the quarter1. In the qua
Slide 9: Managed Opex to Reflect Challenging Global Environment
MANAGED OPEX TO REFLECT CHALLENGING GLOBAL ENVIRONMENT Q3’23 Q3’22 Y/Y Net sales down 17% (CC) to $1.27B, reflecting Net sales 1,270 1,633 (22%) softness in the global economy ___Y/Y % chg (22%) (2%) Gross margin was 37.9%, driven by foreign ___Y/Y % chg (CC) (17%) (2%) currency headwinds, increased
Slide 10: Results Reflect Weak Enterprise and Consumer Demand
RESULTS REFLECT WEAK ENTERPRISE AND CONSUMER DEMAND % of While all categories were down this quarter, the biggest Q3’23 Q3’22 Y/Y Y/Y (CC) Total change from the prior quarter was in Video Collaboration, Sales as Enterprise customers delayed orders or reduced Gaming1 392 469 (16%) (10%) 31% spending
Slide 11: Global Economic Downturn Impacted All Regions
GLOBAL ECONOMIC DOWNTURN IMPACTED ALL REGIONS Sell-through declined 12% (US$) and declined Y/Y Y/Y Sell-through2 Q3’23 Q3’22 mid-single digits excluding Russia/Ukraine and in (CC) (US$) (US$) constant currency, and significantly less than net sales Americas 514 674 (23%) (24%) (7%) Sell-through resu
Slide 12: Currency and Inflation Continue to Impact Gross Margin
CURRENCY AND INFLATION CONTINUE TO IMPACT GROSS MARGIN Gross margin was 37.9%, down year over year, as anticipated ~2pts FX1 ~3pts FX1 Pressures due to unfavorable currency movements, higher promotional environment and inflation were partially offset by price increases and less reliance on expedited
Slide 13: Tightly Managing Operating Expenses
TIGHTLY MANAGING OPERATING EXPENSES Q3’23 Q3’22 Y/Y Maintained disciplined approach to managing P&L, Sales & marketing 189 259 (27%) reducing operating expense as a percentage of sales ___% of sales 14.9% 15.9% (102 bps) Investment in R&D down 11% year-over-year, but up Research & development 63 71
Slide 14: Capital Returns to Shareholders Remains a Priority
CAPITAL RETURNS TO SHAREHOLDERS REMAINS A PRIORITY Q3’23 Q3’22 Q/Q Y/Y Cash from operations 280 377 207 (97) Ending cash balance more than $1B, and we returned $90M to shareholders through share repurchases Ending cash balance 1,036 1,364 168 (328) Inventory 798 835 (82) (37) Cash flow from operatio
Slide 15: FY'23 Updated Outlook
FY’23 UPDATED OUTLOOK FY’23 OUTLOOK Sales growth (CC) (15%) - (13%) Non-GAAP operating income $550M - $600M ADDITIONAL ASSUMPTIONS Currency exchange rates Approximately -5 ppts delta between USD and CC growth year over year Non-GAAP effective tax rate Approximately 13% Cash from operations Approxima
Slide 16: Appendix
APPENDIX
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 17
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 18
Slide 19: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and nine months ended December 31, 2022 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 suppleme
Slide 20: Sell-Through Data
SELL-THROUGH DATA • Measures sales of our products by retailer customers to • Data is subject to limitations and possible error sources and may not be consumers and by our distributor customers to their customers an entirely accurate indicator of actual consumer demand for our products. Limitations
Slide 21: Logitech
logitech