Logitech International S.a. · SIX:LOGN
Logitech International — Q4 2022 Earnings Presentation
22 slides from Logitech International's earnings presentation, May 3, 2022
Slide 1: Q4 and Fiscal Year 2022 Financial Results
Q4 and Fiscal Year 2022 Financial Results May 2, 2022
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 and full fiscal year ended March 31, 2022, future growt
Slide 3: What's New From Logitech?
What’s New From Logitech?
Slide 4: Video Collaboration: RightSight 2
VIDEO COLLABORATION RightSight 2 Logitech launched a new software feature, RightSight 2, to create a more equitable meeting experience between those participating in the room and those attending virtually. This software provides two views of the participants - a view of the speaker, and of the entir
Slide 5: Marketing: Lizzo and Logitech Campaign
MARKETING Lizzo and Logitech Launch Next Chapter of Branded Campaign In the quarter we launched the next chapter of “DEFY LOGIC” with pop sensation Lizzo. The campaign encourages us to embrace our individuality and pursue our passions. This campaign is part of Logitech’s continued focus on increasin
Slide 6: Sustainability
SUSTAINABILITY Logitech announced that it has exceeded its commitment to incorporate post-consumer recycled (PCR) plastic into products, reducing its carbon impact and increasing the circularity of consumer product materials and ingredients. Logitech’s Creativity and Productivity portfolio, the comp
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: Key Messages – Q4 FY 2022
KEY MESSAGES – Q4 FY 2022 Q4’22 net sales declined 17% (CC) to $1.23B, after growing more than 100% in Q4’21. In Q4’22 we had continued growth in Pointing Devices, Keyboards & Combos and Gaming despite supply challenges. We gained market share in all three categories and in Video Collaboration. Gros
Slide 9: Key Messages – Fiscal Year 2022
KEY MESSAGES – FISCAL YEAR 2022 Ninth consecutive year of growth, with FY’22 net sales up 4% (CC) over the prior year to $5.48B. Net sales in Gaming (+17%) and C&P1 (+8%) continued their impressive growth building off of FY’21, where they grew 77% and 64%, respectively. Gross margin was 41.7%, withi
Slide 10: Continued Growth Off a Record FY'21
CONTINUED GROWTH OFF A RECORD FY’21 Q4’22 vs. Q4’21 vs. Q4’20 FY’22 vs. FY’21 vs. FY’20 Net sales up 4% (CC) to $5.48B, sustaining growth Net sales $ 1,230 (306) 521 $5,481 229 2,505 following a record year in FY’21. Y/Y % chg (20%) 73% 4% 84% Y/Y % chg (CC) (17%) 72% 4% 81% Gross margin was 41.7%,
Slide 11: Ongoing Benefits of Highly Diversified Portfolio
ONGOING BENEFITS OF HIGHLY DIVERSIFIED PORTFOLIO Double digit FY’22 growth rates (CC) in Pointing Q4’22 Y/Y Y/Y (CC) FY’22 Y/Y Y/Y (CC) Devices +14%, Keyboards +22% and Gaming +17% Pointing Devices 178 0% 3% 781 15% 14% offset declines in other areas of our portfolio. Keyboards & Combos 231 5% 8% 96
Slide 12: All Regions Sustained or Grew Net Sales Versus FY'21
ALL REGIONS SUSTAINED OR GREW NET SALES VERSUS FY’21 FY’22 Q4’22 Q4’21 Y/Y Y/Y Sell-through Diversified, global customer base provides hedge (CC) (CC) (US$) (US$) against regional demand softness or economic Americas 4% 489 603 (19%) (19%) (4%) disruptions. EMEA 0% 414 588 (25%) (30%) (19%) Asia Pac
Slide 13: Gross Margin Remains in Long Term Range
DESPITE INFLUX OF MACRO HEADWINDS, GROSS MARGIN REMAINS IN LONG TERM RANGE FY’22 gross margin was 41.7%, down year-over-year, as anticipated from last year’s elevated levels and remained within our target range. Q4’22 gross margin was 40.5% and flat sequentially despite incremental currency headwind
Slide 14: Continued Investment to Support Future Growth
CONTINUED INVESTMENT TO SUPPORT FUTURE GROWTH Q4’22 Y/Y FY’22 Y/Y As mentioned throughout FY’22, we are committed to strategically investing in marketing and design Sales & marketing 238 (10%) 988 35% and engineering while relying less on promotion. % of sales 19.4% 2.1 ppts 18.0% 4.1 ppts Research
Slide 15: Record Cash Returns to Shareholders, Balance Sheet Remains Strong
RECORD CASH RETURNS TO SHAREHOLDERS, BALANCE SHEET REMAINS STRONG $ Y/Y Ending cash balance of $1.3B and Q4 cash flow from Cash from operations 298 (1,160) operations of $100M. Ending cash balance 1,329 (422) Returned a total of $571M to shareholders in FY’22 Inventory 933 41% through our previously
Slide 16: FY'23 Updated Guidance
FY’23 UPDATED GUIDANCE FY 2023 OUTLOOK NEW OLD Sales growth (CC) 2% - 4% Mid Single Digits Non-GAAP operating income $875M - $925M $900M - $950M ADDITIONAL ASSUMPTIONS Currency exchange rates Q4’22 average rates Non-GAAP effective tax rate Approx. 13% Cash from operations 1x non-GAAP OP Capex Approx
Slide 17: Appendix
APPENDIX APPENDIX
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 18
Slide 19: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS 19
Slide 20: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three months and full fiscal year ended March 31, 2022 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 su
Slide 21: 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 consumers and by our distributor customers to their not be an entirely accurate indicator of actual consumer demand customers for our products. Limitations
Slide 22: Logitech
logitech
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