Logitech International S.a. · SIX:LOGN
Logitech International — Investor Day (March 2022)
143 slides from Logitech International's investor day presentation, Mar 3, 2022
Slide 1: Logitech Analyst and Investor Day
LOGITECH ANALYST AND INVESTOR DAY MARCH 3, 2022
Slide 2: Agenda
AGENDA STRATEGY & OUTLOOK 4 VIDEO COLLABORATION 14 CREATIVITY & PRODUCTIVITY 55 GAMING 77 STREAMERS & CREATORS 95 OPERATIONS & SUSTAINABILITY 112 FINANCIALS 131
Slide 3: 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 strategy and outlook; trends, opportunities and implications in Video Collaboration, Gaming, Creati
Slide 4: Strategy & Outlook
STRATEGY & OUTLOOK Achieving Strong, Long-Term Growth Bracken Darrell March 2022
Slide 5: Purpose
PURPOSE To help all people pursue their passions…in a way that is good for the planet.
Slide 6: Why We're Here, Where We Play, How We Win
WHY WE’RE WHERE WE HOW WE HERE PLAY WIN
Slide 7: Where We Play
WHERE WE PLAY Growth Markets New Markets Exit / Scale Back
Slide 8: How We Win
HOW WE WIN Design and Innovation Operational Excellence Financial Discipline Global Go-To-Market Sustainability Marketing People & Culture
Slide 9: Categories and Capabilities
GROW CORE CAPABILITIES CONTINUOUSLY, GROW MARKET SHARE TO LEADERSHIP POSITIONS CAPABILITIES Design and Operational Global Financial Sustainability Marketing Innovation Excellence Go-To-Market Discipline People & Culture CATEGORIES WORKSPACE SOLUTIONS VIDEO COLLABORATION GAMING CONTENT CREATION & STR
Slide 10: We Play in Big, Attractive Market Areas
WE PLAY IN BIG, ATTRACTIVE MARKET AREAS Video Collaboration Gaming ~100M conference rooms, 3B+ active gamers only 10% penetration Creativity & Productivity Streaming & Creating ~1B workspaces, billions of product Over 190M content sales and upgrade opportunities creators worldwide
Slide 11: Design and Innovation Leadership
DESIGN AND INNOVATION LEADERSHIP DESIGN CULTURE 260+ Awards Over Past 6 years
Slide 12: Operational Excellence with a Commitment to Sustainability Leadership
OPERATIONAL EXCELLENCE WITH A COMMITMENT TO SUSTAINABILITY LEADERSHIP OPERATIONAL Customer Centric Diversified Resilient EXCELLENCE Supply Chain Manufacturing Operations COMMITMENT TO Climate Positive | Carbon Labeling | Growth Driver SUSTAINABILITY
Slide 13: Leveraging Strong Capabilities to Grow in Big Markets
LEVERAGING STRONG CAPABILITIES TO GROW IN BIG MARKETS HOW WE WIN WE PLAY IN BIG, ATTRACTIVE MARKET AREAS Design and Operational Financial Video Collaboration Gaming Innovation Excellence Discipline ~100M conference rooms, 3B+ active gamers only 10% penetration Global Sustainability Marketing Go-To-M
Slide 14: Video Collaboration
VIDEO COLLABORATION Scott Wharton March 2022
Slide 15: Market Trends, What We've Done, Why We're Positioned to Win
MARKET WHAT WE'VE WHY WE’RE TRENDS DONE POSITIONED TO WIN
Slide 16: Market Trends
SECTION ONE MARKET TRENDS
Slide 17: 4 Key Trends: Video Is Transforming Work
4 KEY TRENDS: VIDEO IS TRANSFORMING WORK 1 2 3 4 Video Hybrid Work Shift from Video Cloud is Becoming Creates New Products Dominant The Norm Opportunities to Systems
Slide 18: Video Becoming the Norm
1VIDEO BECOMING THE NORM 1 2 3 4 Video Hybrid Work Shift from Video Cloud is Becoming Creates New Products Dominant The Norm Opportunities to Systems
Slide 19: Explosion of New Video Users
EXPLOSION OF NEW VIDEO USERS Source: Craig Roth, December 11, 2019, Blog Post at www.blogs.gartner.com Source: Gartner Press Release, "Gartner Forecasts 51% of Global Knowledge Workers Will Be Remote by the End of 2021," June 22, 2021, LINK.
Slide 20: Even Big, Slow Moving Verticals Are Using Video
EVEN BIG, SLOW MOVING VERTICALS ARE USING VIDEO GOVERNMENT HEALTHCARE EDUCATION
Slide 21: Plenty of Room to Grow
PLENTY OF ROOM TO GROW 100M 50% 40% Video-enabled % of Rooms 30% Meeting Rooms and Classrooms 20% <10% 10% 0% Mid to Large Rooms Total Meeting Small Rooms Classrooms Room Penetration are video enabled 2020 2021 (Q1-3) 2026 Source: Frost & Sullivan Report K5BE-64
Slide 22: Total Addressable Market Expected to Nearly Double to $10B
TOTAL ADDRESSABLE MARKET EXPECTED TO NEARLY DOUBLE TO $10B $5.8B $10B Personal (Headsets, Personal Webcams, Docks) (Headsets, Webcams, Docks) Conferencecams 2021 Conferencecams Mid Decade Logitech estimates based on data from NPD, GfK, and 3rd party research.
Slide 23: Video Cloud Is Dominant
2 VIDEO CLOUD IS DOMINANT 1 2 3 4 Video Hybrid Work Shift from Video Cloud is Becoming Creates New Products Dominant The Norm Opportunities to Systems
Slide 24: Video Cloud Is Dominant: Platform Winners
VIDEO CLOUD IS DOMINANT Platform Winners Chart: Primary platform share by business users Huawei Welink MICROSOFT, Others Tencent ByteDance ZOOM, AND GOOGLE Group Enterprise Lark WeChat Have become the dominant players Google Tencent Meeting Zoom TENCENT AND ALIBABA Alibaba CHINA Microsoft DingTalk T
Slide 25: Microsoft/Zoom Explosive Growth Has Set the Stage
MICROSOFT/ZOOM EXPLOSIVE GROWTH HAS SET THE STAGE MICROSOFT TEAMS DAILY ACTIVE USERS2 ZOOM REVENUE GROWTH Quarterly revenue of Zoom Video Communications1 120 $1,200M 110 $1,021M 100 $1,000M 90 80 $800M 70 60 $600M 50 40 $400M 30 20 $200M 10 0 $0 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 26: Hybrid Work Brings New Opportunities
3 HYBRID WORK BRINGS NEW OPPORTUNITIES 1 2 3 4 Video Hybrid Work Shift from Video Cloud is Becoming Creates New Products Dominant The Norm Opportunities to Systems
Slide 27: Hybrid Work 5X Larger Than Pre-Pandemic
HYBRID WORK 5X LARGER THAN PRE-PANDEMIC 2021+ 25%+ 75% Pre Covid <5% 95% WFH (Multiple Days) Location-Based Growing Share of Work From Home (WFH) Chart: % of U.S. Workforce Source: Global Workplace Analytics
Slide 28: Hybrid Work Creates New Opportunities
HYBRID WORK CREATES NEW OPPORTUNITIES
Slide 29: Shift from Products to Systems
4 SHIFT FROM PRODUCTS TO SYSTEMS 1 2 3 4 Video Hybrid Work Shift from Video Cloud is Becoming Creates New Products Dominant The Norm Opportunities to Systems
Slide 30: Shift from Products to Systems
4 SHIFT FROM PRODUCTS TO SYSTEMS Remote Management Front Camera Whiteboard Camera Scheduler Control Hubs Accessories
Slide 31: Shift from Products to Systems
4 SHIFT FROM PRODUCTS TO SYSTEMS SHIFT FROM PRODUCTS TO SYSTEMS Webcam Remote Management Dock Keyboard Headset Mouse
Slide 32: Systems Approach Needed Across Org
SYSTEMS APPROACH NEEDED ACROSS ORG Meeting Room Meeting Room Meeting Room Workspace Workspace Meeting Room
Slide 33: Market Driving More Innovation, Big System-Level Opportunities
MARKET DRIVING MORE INNOVATION, BIG SYSTEM-LEVEL OPPORTUNITIES Video Becoming The Norm More (and upgraded) video needed The speed of adoption and innovation is Video Cloud is Dominant increasing Hybrid Work Creates New Opportunities These challenges create big new opportunities Increased complexity
Slide 34: What We've Done
SECTION TWO WHAT WE'VE DONE
Slide 35: Logitech Video Collaboration Tripled During the Pandemic
LOGITECH VIDEO COLLABORATION TRIPLED DURING THE PANDEMIC 180% $1,000 FY13-FY21 +56% CAGR $800 YTDQ3FY22 YTDQ3FY21 $600 $400 43% 44% $200 40% 43% 113% 51% 55% 57% $0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 *FY22e Note: Figures based on net sales and year-over-year comparisons are in constant cur
Slide 36: Collaboration $1.6B with Retail; Poised to Become Next $2B Category
COLLABORATION $1.6B WITH RETAIL; POISED TO BECOME THE NEXT $2B CATEGORY Video Collaboration Retail Personal Collaboration $1,600 $1,400 FY20-FY22 +67% CAGR $1,200 $1,000 $800 $600 $400 $200 $0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22e Note: Figures based on net sales and year-over-year comp
Slide 37: In 2019, #2 in Overall VC Systems Revenue
IN 2019, #2 IN OVERALL VC SYSTEMS REVENUE 50% 40% 30% 20% 15% 10% 0% Competitor A Logitech Competitor B Competitor C Competitor D 2019 Note: Figures based on Synergy Research.
Slide 38: From Small Player to Nearly 1/3rd of Overall VC Market
FROM SMALL PLAYER TO NEARLY 1/3RD OF OVERALL VC MARKET IN REVENUE LOGITECH MARKET SHARE REVENUE 40% 31% 30% 25% 20% 15% 11% 10% 7% 4% 0% 2016 2017 2018 2019 2020 2021 (Q1 - Q3) Note: Rounded figures based on Synergy Research.
Slide 39: In 2021, Tied for #1 Overall Revenue
IN 2021, TIED FOR #1 OVERALL REVENUE 50% 40% 31% 30% 20% 10% 0% Competitor A Logitech Competitor B Competitor C Competitor D 2019 2021 Note: Figures based on Synergy Research.
Slide 40: 1 out of Every 2 VC Rooms WW on Logi
1 OUT OF EVERY 2 VC ROOMS WW ON LOGI LOGITECH PERCENTAGE OF MEETING ROOM INSTALLS Logitech 48% Competitor 1 15% Competitor 2 8% Competitor 3 8% Competitor 4 5% Rest of Market 16% 2021 Q3 Note: Figures based on Synergy Research.
Slide 41: We Lead Room USB/Cloud Installs
WE LEAD ROOM USB/CLOUD INSTALLS, WHERE THE MARKET IS GOING LOGITECH USB DEVICE MARKET SHARE 80% 60% 40% 20% 0% 2016 2017 2018 2019 2020 2021 (Q1 - Q3) Note: Figures based on Synergy Research.
Slide 42: Logitech's Innovation Pipeline Is Robust
LOGITECH’S INNOVATION PIPELINE IS ROBUST
Slide 43: Rally Bar & Rally Bar Mini
RALLY BAR & RALLY BAR MINI logitech’
Slide 44: Scribe: Bringing the Whiteboard into Video Meetings
SCRIBE: BRINGING THE WHITEBOARD INTO VIDEO MEETINGS
Slide 45: Logi Dock: Simplify the Home Office & Hybrid Work
LOGI DOCK: THE PERFECT PRODUCT TO SIMPLIFY THE HOME OFFICE & HYBRID WORK
Slide 46: Logi Dock: Simplify the Home Office & Hybrid Work
LOGI DOCK: THE PERFECT PRODUCT TO SIMPLIFY THE HOME OFFICE & HYBRID WORK
Slide 47: RightSight 2.0: Adding AI for the Best View
RIGHTSIGHT 2.0: ADDING AI FOR THE BEST VIEW
Slide 48: Logitech Sync: Rapid Enterprise Adoption
LOGITECH SYNC: RAPID ENTERPRISE ADOPTION 1,200 25,000+ March, 2020 March, 2022
Slide 49: Adding Personal Devices for Logitech Sync
ADDING PERSONAL DEVICES FOR LOGITECH SYNC
Slide 50: Logitech Select: Disruptive ARR Services
LOGITECH SELECT: DISRUPTIVE ARR SERVICES
Slide 51: Why We're Positioned to Win
SECTION THREE WHY WE'RE POSITIONED TO WIN
Slide 52: Shift from Products to Systems
4 SHIFT FROM PRODUCTS TO SYSTEMS Remote Management Front Camera Whiteboard Camera Scheduler Control Hubs Accessories
Slide 53: We've Built Out Our Global Go-To-Market Team
WE’VE BUILT OUT OUR GLOBAL GO-TO-MARKET TEAM … AND BUILDING ENTERPRISE SALES… Startup Conglomerate SMALL NUMBER OF GLOBAL TEAM OF SALES VC SPECIALISTS COLLABORATION GENERALISTS SPECIALISTS
Slide 54: Best Positioned to Win
BEST POSITIONED TO WIN Video is here to stay, Hybrid Work creates challenges Complexity requires move to way more growth ahead (but also opportunities) software and systems Logitech is positioned to win Tripled category and Largest market share With the most innovative increased market share and ins
Slide 55: Creativity & Productivity
CREATIVITY & PRODUCTIVITY Delphine Donne-Crock March 2022
Slide 56: We help ALL people create, communicate, learn and work in the digital world
We help ALL people create, communicate, learn and work in the digital world.
Slide 57: Our C&P Category Was Growing
OUR C&P CATEGORY WAS GROWING GROWING SALES IN A GROWING MARKET WHERE WE’RE GROWING SHARE +6% +5% NET +3% SALES CAGR NET SALES +6% GROWTH USD LOGI SHARE* LOGI LOGI SHARE* 44% SHARE* 43% 42% FY17 FY18 FY19 All data is for cordless and corded: keyboards, combos, mice, trackballs, trackpads, presenters
Slide 58: Then We Changed Our Approach
THEN WE CHANGED OUR APPROACH
Slide 59: Now We Design Around Each Audience
NOW WE DESIGN AROUND EACH AUDIENCE
Slide 60: Now We Design Around Each Audience
NOW WE DESIGN AROUND EACH AUDIENCE
Slide 61: Our Each-Audience Approach Unleashes Accelerated Growth
OUR “EACH-AUDIENCE” APPROACH UNLEASHES ACCELERATED GROWTH GROWING SALES IN A GROWING MARKET WHERE WE’RE GROWING SHARE +25% NET SALES +4% +31% GROWTH USD Double-digit H2 FY20 sell-thru LOGI SHARE* + 27% NET LOGI LOGI SHARE* 50% SALES CAGR SHARE* 49% 46% FY20 FY21 YTD FY22 61 All data is for cordless
Slide 62: The Future Is Full of Opportunity
THE FUTURE IS FULL OF OPPORTUNITY + MORE DIGITAL + MORE + MORE ACTIVITIES & PEOPLE SPACES OPPORTUNITIES E.G. METAVERSE
Slide 63: Macro Trends Will Drive Our Growth Ahead
MACRO TRENDS WILL DRIVE OUR GROWTH AHEAD 1 2 3 4 NEW DIGITAL WORK & LEARN CHINA & EMERGING WELL-BEING AT WORKER & CREATOR FROM ANYWHERE MARKETS WORK JOBS
Slide 64: Our Capabilities Also Drive Growth
OUR CAPABILITIES ALSO DRIVE GROWTH 1 2 3 B2B OPPORTUNITY SUSTAINABILITY NEW AUDIENCES (WIRELESS ADOPTION)
Slide 65: Growth upon Growth, with Logi in the Driver's Seat
GROWTH UPON GROWTH, WITH LOGI IN THE DRIVER’S SEAT A R E GAIN SH LOGI Market TIES tomorrow P AB I L I LOGI CA Market today MACRO TRENDS
Slide 66: 5 Ways to Take Advantage of the Opportunity
5 WAYS TO TAKE ADVANTAGE OF THE OPPORTUNITY DIFFERENT FOR EACH PEOPLE- CENTERED BRAND & CHINA & B2B SUSTAINABILITY AUDIENCE INNOVATION CUSTOMER LOYALTY
Slide 67: We're Doing It Already. Here's How...
We’re doing it already. Here’s how...
Slide 68: Where There's a Workspace, There's a Workplace
WHERE THERE’S A WORKSPACE, THERE’S A WORKPLACE IMPACTING OFFICE LAYOUT & DECISIONS PEACE OF MIND & SECURITY THE RIGHT CHOICE FOR EACH EMPLOYEE, FOR THE I.T. MANAGER ACROSS ALL WORKSPACES HOTDESK/SHARED WORKSPACE HOME/REMOTE WORKSPACE DEDICATED OFFICE WORKSPACE
Slide 69: Logi Bolt for Business
LOGI BOLT FOR BUSINESS NEXT-GEN WIRELESS TECHNOLOGY ERGO K8 60 for Bu siness MX M FULL ENCRYPTION & SECURE & as Logi B USB R olt for Bu ter 3 sines s ROBUST CONNECTIONS eceiv er MX An yw for Bu here 3 sines s CONNECT YOUR WAY MX Ke ys for Busine ss NEW OPTIONS+ SOFTWARE ERGO M565 for Bu Track b WORK
Slide 70: Signature M650 Wireless Mouse
SIGNATURE M650 WIRELESS MOUSE A FIT FOR EVERY HAND SCROLL SMARTER SILENT TOUCH TECHNOLOGY CONNECT YOUR WAY MADE WITH RECYCLED PLASTIC NEW OPTIONS+ SOFTWARE WORKS WITH ALL OS & SCREENS
Slide 71: MX & the Growing Creators Workforce
MX & THE GROWING CREATORS WORKFORCE MILLIONS OF CREATORS…AND GRAPHIC DESIGNERS, AND VIDEO EDITORS, ARCHITECTS, PHOTOGRAPHERS, SOFTWARE DEVELOPERS, ENGINEERS….
Slide 72: Logitech MX Line-Up
LOGITECH MX LINE-UP SCROLL & TYPE SMARTER TRACK EVERYWHERE CONNECT YOUR WAY WORK ANYTIME NEW OPTIONS+ SOFTWARE SMART CUSTOMIZATION, PRE-DEFINED PROFILES WORKS WITH ALL OS & SCREENS MX LINE-UP +26% +85% +53% NET SALES GROWTH FY20 FY21 YTD FY22
Slide 73: Logitech POP Keys & POP Mouse
LOGITECH POP KEYS & POP MOUSE UNLIMITED SELF-EXPRESSION EMOJI KEYCAPS CONNECT YOUR WAY WORKS WITH ALL OS & SCREENS
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Slide 75: A Solution for All People's Workspaces
A SOLUTION FOR ALL PEOPLE’S WORKSPACES DISCOVER LOGI WITH A $20 MOUSE GROW TO A $1000 ADVANCED CREATOR WORKSPACE The right fit for all Simple & Intuitive Works on all X-OS Sustainable
Slide 76: Creativity & Productivity Is...
CREATIVITY & PRODUCTIVITY IS… A GROWTH CATEGORY THAT HELPS ALL PEOPLE WITH IMPACTFUL INNOVATION GLOBAL OPERATIONAL EXCELLENCE
Slide 77: Gaming
GAMING Ujesh Desai March 2022
Slide 78: Market Trends & Focus Areas
fi. 9 MARKETTRENDS & FOCUS ps fy
Slide 79: Key Trends & Opportunities
KEY TRENDS & OPPORTUNITIES 1 2 3 4 GAMING IS A MASS ESPORTS CONTINUES CLOUD GAMING WILL GAMING IS DRIVING ENTERTAINMENT & TO GROW EXPAND THE MARKET THE METAVERSE SOCIAL ACTIVITY
Slide 80: Gaming Is a Mass Entertainment Activity
1 GAMING IS A MASS ENTERTAINMENT ACTIVITY WORLDWIDE GAMERS SET TO PASS 3 BILLION Number of worldwide gamers 2020-2024, unit: billion 3.3B 3.2B 3.0B 3.1B 2.8B 2.6B 2019 2020 2021 2022 2023 2024 Source: Newzoo Gamers = anyone who plays games on any major platform: PC/Console/Mobile (which individually
Slide 81: Gaming Is a Mass Entertainment Activity
1 GAMING IS A MASS ENTERTAINMENT ACTIVITY GAMING IS INCREASINGLY BECOMING A FORM OF ENTERTAINMENT, PARTICULARLY FOR YOUNG GAMERS Gen Z Prefers Gaming Over Social Networks, Game Livestreaming is Mainstream and Growing Movies & Music YoY Hours Watched (billion hours) Choice of Favorite Entertainment A
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Slide 83: Esports Continues to Grow
2 ESPORTS CONTINUES TO GROW ESPORTS MARKET PROJECTED TO GENERATE $1.6B REVENUE BY 2024E Esports Revenue Growth Global USD (Millions) $1,618 Streaming $32 $1,084 Digital $49 Merchandise & Tickets $178 Streaming $22 Digital $33 Game Publisher Fees $162 Merchandise & Tickets $65 Media Rights $259 Game
Slide 84: Esports Continues to Grow
2 ESPORTS CONTINUES TO GROW GLOBAL ESPORTS AUDIENCE WAS 474M IN 2021 Esports Viewership Global Audience (M) and YoY Change 577M 474M Occasional Viewers 292M Occasional Viewers 240M Esports Enthusiasts Esports Enthusiasts 286M 234M 2021 2024e Source: Newzoo Source: Newzoo: How different generations e
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Slide 86: Zero Opposition: Pro X Superlight
ZER@ OPPOSITION LATEST. LIGHTEST. ENGINEERED TO WIN. PLAY TO WIN PRO X SUPERLIGHT logitech
Slide 87: Cloud Gaming Will Expand the Market
3 CLOUD GAMING WILL EXPAND THE MARKET CLOUD GAMING EXPECTED TO GROW FROM 34.9M PAYING SUBSCRIBERS IN 2020 TO 60.7M BY 2024 Number of registered users of cloud gaming platforms 2020-2024, unit: million 2019-2024 60.7M +35% CAGR 48.6M ● Instantaneous access to deep game libraries 34.9M ● Ability to pl
Slide 88: Cloud Gaming Will Expand the Market
3 CLOUD GAMING WILL EXPAND THE MARKET Snack Graze Full experience < 20mins 20mins - 2hrs > 2hrs Mobile Gaming Cloud Gaming Immersive Gaming Need for immediacy New entrants that want Deeper experiences, AAA and short gaming to access AAA games on games and specialized experiences lower cost devices g
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Slide 90: Gaming Is Driving the Metaverse
4 GAMING IS DRIVING THE METAVERSE GAME DEVELOPERS AND CONTENT CREATORS ARE LEADING THE WAY “If web developers are the architects of the internet as we know it (Web 2.0), then game developers are the architects of the metaverse – Web 3.0.” Crucible’s CEO and Co-Founder, Ryan Gill Source: Newzoo Globa
Slide 91: Gaming Is Driving the Metaverse
4 GAMING IS DRIVING THE METAVERSE THE METAVERSE WILL ATTRACT NEW GAMERS AND EXISTING GAMERS WILL PLAY MORE More broadly, all consumers agreed that participation Interest in the metaverse in the metaverse would increase their game play increases intent to start playing games If you were to start soci
Slide 92: Gaming avatars and our gear will be the keys to the Metaverse
Gaming avatars and our gear will be the keys to access, interact & create in the Metaverse Ariana Grande concert in Fortnite by Epic Games
Slide 93: In the future our gear might also detect when you're in the zone
YOU ARE IN THE ZONE In the future our gear In the future our gear might might also when also detect detectyou’re in TEAM COMMS MONITORING when you’re the zone in the or need a break zone or need a break
Slide 94: Gaming trends summary
1 2 3 4 Gaming is a mass Cloud Gaming Gaming is Esports continues entertainment & will expand driving the to grow social activity the market Metaverse
Slide 95: Streamers & Creators
STREAMERS & CREATORS Vincent Borel March 2022
Slide 96: Logitech for Creators
looitech “ for creators
Slide 97: Gen Z Are the First Generation Born in a World Where Everyone Creates Content
GEN Z ARE THE FIRST GENERATION BORN IN A WORLD WHERE EVERYONE CREATES CONTENT
Slide 98: Creators Are the Most Influential People of the Next Decade
CREATORS ARE THE MOST INFLUENTIAL PEOPLE OF THE NEXT DECADE PAST FUTURE MEDIA COMPANIES CREATORS Hundreds of TV shows Hundreds of millions of consumed by billions. “shows” that cater to billions.
Slide 99: Influencer Marketing Rapidly Expanding
INFLUENCER MARKETING RAPIDLY EXPANDING +52% CAGR 2016 2021 $1.7B $13.8B REVENUE REVENUE Sources: Influencer Orchestration Network, Influencer Marketing Industry Expected To Be Worth $13.8 Billion This Year. www.ion.co/influencer-marketing-industry-to-reach-13-8-billion-in-2021; Markets and Markets r
Slide 100: 40% of Consumers Are Already Paying Creators Directly
40% OF CONSUMERS ARE ALREADY PAYING CREATORS DIRECTLY New Donation Ariana Barros donated $45 https://www.campaignlive.com/article/direct-to-fan-marketing-skyrockets-consumers-pay-creators-directly/1731143
Slide 101: Creator Economy: VC Investments Hit $5B
CREATOR ECONOMY CHASING THE CREATOR ECONOMY The % of total funding for creator economy startups by subsector 50% 40% VC INVESTMENTS HIT $5B 30% 20% 10% IN 2021 0% SOCIAL CREATOR CREATOR EDUCATION GAMING MUSIC CRYPTO SHOPPING MEDIA PLATFORM SERVICES Q2 Q3 www.theinformation.com/articles/how-creator-e
Slide 102: Platforms Are Creating Billion Dollar Funds for Creators
PLATFORMS ARE CREATING BILLION DOLLAR FUNDS FOR CREATORS $ MILLIONS $1 BILLION $1 BILLION $100 MILLION $25 MILLION /MONTH FACEBOOK TIKTOK YOUTUBE SNAP LINKEDIN
Slide 103: Creator Monetization Is Spreading
CREATOR MONETIZATION IS SPREADING… https://www.cnbc.com/2021/04/27/zuckerberg-announces-new-ways-for-instagram-creators-to-make-money.html https://techcrunch.com/2021/02/25/twitters-super-follow-creator-subscription-takes-shots-at-substack-and-pa treon/ https://www.tubefilter.com/2021/12/07/discord-
Slide 104: Market Trends & Creator Opportunity
MARKET TRENDS & CREATOR OPPORTUNITY 1 2 3 4 Creator Creators need Diversification Shift from economy help to make it of creator products to is booming a career monetization solutions
Slide 105: Emergence of Creators as Businesses
EMERGENCE OF CREATORS AS BUSINESSES 6 1 Create Manage Content Your Business 5 2 Monetize Grow Your Offline Audience 4 3 Monetize Own Your Online Audience
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Slide 107: From Products to Studios
FROM PRODUCTS TO STUDIOS Hardware | Software Hardware & Software creator products creator studios
Slide 108: Dedicated Studio
DEDICATED STUDIO Insert lifestyle picture here
Slide 109: Anywhere Studio
ANYWHERE STUDIO Insert lifestyle picture here
Slide 110: One Unified Experience
ONE UNIFIED EXPERIENCE looitech “ for creators A 205268 c ‘ LEVEL UP YOUR GAME STREAM — wo logitech + © streai © Fa aan i logitech to: creators
Slide 111: We Make the Tools, You Change the World
READY FOR CLIENT REVIEW WE MAKE THE TOOLS, YOU CHANGE THE WORLD.
Slide 112: Operations & Sustainability
OPERATIONS & z SUSTAINABILITY Prakash Arunkundrum March 2022
Slide 113: Operations Update
OPERATIONS UPDATE logitec
Slide 114: Another Year of Operational Execution
ANOTHER YEAR OF OPERATIONAL EXECUTION Delivered nearly Record volumes 40 new shipped products Diversified and Availability aided automated market share gains manufacturing DESIGN AND PRODUCT QUALITY EXCELLENCE
Slide 115: Our Operations Are Diverse, Global, and Resilient
OUR OPERATIONS ARE DIVERSE, GLOBAL, AND RESILIENT DELIVERING SUSTAINED PROFITABLE GROWTH DIVERSE HIGH COST PORTFOLIO QUALITY OPTIMIZED Global Suppliers Global Manufacturing Global Distribution Customers & Channels Thousands of parts, Owned & outsourced Reaching 80 countries Millions of consumers Hun
Slide 116: Challenging Macro Environment
CHALLENGING MACRO ENVIRONMENT Tough component Port congestion and Demand variability in Inflation market longer shipping times our categories CONTINUOUS COVID-RELATED DISRUPTIONS
Slide 117: Operational Capabilities Have Enabled Us to Be Resilient
OPERATIONAL CAPABILITIES HAVE ENABLED US TO BE RESILIENT Margin assurance Competitive diversified Closed loop Customer centric design for cost manufacturing product quality supply chain value DIVERSE TALENT FLAT & ADAPTIVE CULTURE
Slide 118: Sustainability
SUSTAINABILITY
Slide 119: Why Does Sustainability Matter to You?
WHY DOES SUSTAINABILITY MATTER TO YOU? BRANDS THAT ARE UNIQUELY POSITIONED TO DEMONSTRATE THE BUSINESS VALUE OF SUSTAINABILITY WILL THRIVE Consumers Sustainable Climate risk voting with their brands grow faster is investment risk dollars
Slide 120: Help ALL people pursue their passions
Help ALL people pursue their passions by designing experiences so everyone can create, achieve, and enjoy more…and in a way that is good for the environment.
Slide 121: A Climate Positive Company
A CLIMATE POSITIVE COMPANY 2030+ 2021 Climate Carbon Positive 2020 Neutral Carbon 2019 Labels 1.5 Climate Pledge
Slide 122: Our Climate Positive Strategy
OUR CLIMATE POSITIVE STRATEGY RETHINKING BUSINESS REDUCE RENEW RESTORE Design for Sustainability (DfS) Drive ambitious uptake of Adopt a climate positive to achieve ambitious carbon renewable electricity in our approach to restore forestry reductions in our products, own operations and supply and cl
Slide 123: Our Goal Is to Leave a Zero Footprint & Go Beyond
OUR GOAL IS TO LEAVE A ZERO FOOTPRINT & GO BEYOND
Slide 124: Increasing Sustainability, Decreasing Carbon
INCREASING SUSTAINABILITY, DECREASING CARBON Since 2019:of24% 20% reduction improvement carbon in of per a dollar carbon intensity revenue since while CY’19,continuing to growto grow while continuing 2021 BY THE NUMBERS RECYCLED PLASTIC (POST-CONSUMER) RENEWABLE ENERGY MATERIALS 62M >8,000t 100% >14
Slide 125: Reducing Carbon While Delivering New & Better Experiences
REDUCING CARBON WHILE DELIVERING NEW & BETTER EXPERIENCES G435 LIGHTSPEED WIRELESS GAMING HEADSET POP MOUSE MX KEYS MINI Carbon savings 40% 18% 10% vs. baseline product ● Recycled plastics ● Recycled plastics Recycled plastics Design Principles ● ● Lightweight product ● Designed for recyclability ●
Slide 126: Packaging That Is Better for the Planet
PACKAGING THAT IS BETTER FOR THE PLANET Eliminated 5.6 million plastic bags during shipping Plastic bag protection Tissue paper protection OUR GOAL ● No single use plastics Eliminated 5.8 million plastic bags inside ● FSC certified paper packages ● No PVC ● Smaller better packaging Eliminated >1.1 m
Slide 127: Carbon Is the New Calorie
CARBON IS THE NEW CALORIE First consumer electronics company to commit to providing detailed carbon impact labeling on product packaging across the entire portfolio.
Slide 128: Carbon Labeled Products: Doing as We Pledged
CARBON LABELED PRODUCTS DOING AS WE PLEDGED 8.76 22.0 8.64 7.10 1.62 2.11 kg CO e kg CO2e kg CO2e kg CO2e 2 kg CO2e kg CO2e Logitech G304 Lightspeed Logitech G213 RGB Prodigy Logitech G903 Lightspeed Logitech G502 Hero H111 Multi-Device H151 Stereo Gaming Mouse* Gaming Keyboard* Gaming Mouse* Gaming
Slide 129: Awards and Acknowledgements
AWARDS AND ACKNOWLEDGEMENTS “GOLD” RATING LISTED LISTED “AA” RATED* LISTED CLIMATE LEADER SDG2000 LISTED 2020 OVERALL WINTER 2021 HONOREE IN CONSUMER TECHNOLOGY CATEGORY *The use by Logitech of any MSCI ESG Research LLC or its Affiliates (“MSCI”) data, and the use of MSCI logos, Trademarks, Service
Slide 130: Operational Excellence
OPERATIONAL EXCELLENCE Sustained profitable growth & Resilient operations operating leverage High quality, cost optimized & cutting edge Amazing experience for consumers, product operations enterprises and customers Agile customer centric supply chain Growth and market leadership PERVASIVE SUSTAINAB
Slide 131: Finance
FINANCE Nate Olmstead March 2022
Slide 132: We're Focused on the Categories and Capabilities That Matter
WE’RE FOCUSED ON THE CATEGORIES AND CAPABILITIES THAT MATTER Growing markets Leadership position in Operational design and innovation excellence
Slide 133: Confirm Fiscal Year 2022 Outlook
CONFIRM FISCAL YEAR 2022 OUTLOOK FY 2022 Sales (CC) Growth 2% – 5% Non-GAAP operating income $850M – $900M Note: Figures are non-GAAP and sales growth is in constant currency (cc) Note: See the Forward-Looking Statements for factors that could cause actual results to differ materially from the guida
Slide 134: Targeted Investments with Clear Objectives
TARGETED INVESTMENTS WITH CLEAR OBJECTIVES GROWTH OPPORTUNITY INVESTMENTS INTENDED RESULTS Higher ASP Across Larger TAM Research & Development Differentiated Products New Users, Sell Whole Portfolio Marketing/Brand Campaigns Awareness & Consideration Enterprise Sales B2B Sales Coverage & Tools Expan
Slide 135: Navigating Through FY 2023
NAVIGATING THROUGH FY 2023 Headwinds Tailwinds Past experience leads to successful execution Inflationary environment persists of promotional and pricing strategy Unpredictable supply chain environment causes Investments in multi-sourcing and strategic capacity shortages, delays, increased logistics
Slide 136: No Change in Capital Allocation Strategy
NO CHANGE IN CAPITAL ALLOCATION STRATEGY MORE THAN $1B IN SHARE BUYBACKS AND DIVIDENDS OVER LAST 3 YEARS $151M $579M $430M Mergers & Acquisitions Share Buybacks Dividends Note: Totals above represent cumulative over prior three (3) years. Note: Share buybacks are through 2/24/2022.
Slide 137: Fiscal Year 2023 Outlook
FISCAL YEAR 2023 OUTLOOK FY 2023 OUTLOOK Sales (CC) Growth Mid Single Digits Non-GAAP operating income $900M – $950M ADDITIONAL ASSUMPTIONS Currency Current Rates Non-GAAP effective tax rate Approximately 13% Cash from operations 1x non-GAAP OP Capex Approximately $115M Note: Figures are non-GAAP an
Slide 138: Fiscal Year 2023 Category Growth Expectations
FISCAL YEAR 2023 CATEGORY GROWTH EXPECTATIONS MAJOR CATEGORY (CC) GROWTH Creativity & Productivity 0% – 10% Video Collaboration 5% – 15% Gaming 0% – 10% Music (15%) – (5%) Note: Net sales figures are Y/Y. (CC) = constant currency. Creativity & Productivity includes pointing devices, keyboards and co
Slide 139: Long-Term Model
LONG-TERM MODEL READY FOR DESIGN CONFIRM Sales (CC) Growth Up 8 – 10% Gross Margin 39 – 44% Operating Margin 14 – 17% Note: Figures are non-GAAP and sales growth is in constant currency (cc).
Slide 140: Long-Term Model
LONG-TERM MODEL READY FOR DESIGN OUR LONG TERM MODEL… IMPLIES IN 5 YEARS… Sales (CC) Growth Up 8 – 10% FY 2027 Sales $7.7 – $8.4B Gross Margin 39 – 44% FY 2027 Operating Profit $1.1 – $1.4B Operating Margin 14 – 17% Note: Time period covers FY23 guidance plus four (4) years of LTM growth. Note: Figu
Slide 141: Long-Term Model
LONG-TERM MODEL TO ACHIEVE THIS IN 5 YEARS… … A CATEGORY GROWTH SCENARIO COULD BE: Creativity & Productivity 8% FY 2027 Sales $7.7 – $8.4B Video Collaboration 14% FY 2027 Operating Profit $1.1 – $1.4B Gaming 9% Note: Figures are non-GAAP. Music -10% Note: Growth rates are FY22 - FY27 CAGR (CC)
Slide 142: Long-Term Model: Annual Revenue Growth (Pre-Pandemic)
LONG-TERM MODEL ANNUAL REVENUE GROWTH (PRE-PANDEMIC) Logitech Net Sales FY 2016 - FY 2020 $3,000M $3.0B $2.8B $2,500M $2.6B $2,000M $2.2B $1.9B $1,500M $1,000M FY16 FY17 FY18 FY19 FY20 AT OR ABOVE Sales Growth (CC) 9% 15% 13% 10% 9% LONG-TERM MODEL
Slide 143: Logitech
logitech