Slide 1: Q1 Fiscal Year 2021 Financial Results
logitech Q1 Fiscal Year 2021 Financial Results July 20, 2020
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 ended June 30, 2020, secular trends, long-term trends a
Slide 3: Key Messages - Q1 FY 2021
KEY MESSAGES - Q1 FY 2021 Q1'21 sales increased 25% (CC) to $792M, as we continue to see strong demand for our products that help people work, learn, and play from anywhere as well as create, stream, and share content online Gross margin of 39.2% was stronger than expected due to favorable product m
Slide 4: OcweeH
OcweeH
Slide 5: Environmental, Social, Governance (ESG)
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) Logitech pledged to communicate the carbon impact of all its products on packaging and the company website Will be the first consumer electronics company to provide detailed carbon impact labeling on product packaging across the entire portfolio, so consumers
Slide 6: Gaming
GAMING Logitech G915 TKL LIGHTSPEED Wireless Gaming Keyboard offers the same core technologies and experience of the G915, in a smaller tenkeyless form factor Delivers high-performance LIGHTSPEED wireless technology, LIGHTSYNC RGB and low-profile mechanical gaming switches in an ultra-thin design LI
Slide 7: Financial Results
FINANCIAL RESULTS
Slide 8: Q1'21 Sustained Strong Double-Digit Growth
Q1'21 SUSTAINED STRONG DOUBLE-DIGIT GROWTH ee sa | seas Y/Y % chg 23% 6% Y/Y % chg (CC) 25% 9% Gross profit 311 243 28% % margin 59.2% 37.8% 140 bps Operating expense 193 176 10% % of sales 24.4% 27.4% (300 bps) % margin 14.8% 10.4% 440 bps Net income 109 66 66% % margin 13.7% 10.2% 350 bps Earnings
Slide 9: Underlying Secular "xFH" Trends Accelerated
UNDERLYING SECULAR “xFH” TRENDS ACCELERATED I Pointing Devices (1%) 1% ' Keyboards & Combos 145 129 13% 15% PC Webcams 61 28 116% 121% Tablet & Accessories 46 38 20% 22% Video Collaboration 130 73 77% 81% Mobile Speakers 29 50 (42%) (42%) Audio & Wearables 71 59 22% 23% Gaming 182 135 35% 38% Smart
Slide 10: Consistent Trends Fueling All Three Regions
CONSISTENT TRENDS FUELING ALL THREE REGIONS A Y/Y Y/Y Sell-through| Americas 23% 21% 19% EMEA 211 179 21% 18% 17% Asia Pacific 33% 31% 35% Sales growth Y/Y % (CC) 35% Sales growth Y/Y % (US$) 30% 30% 25% 5% 20% 20% 15% 15% 10% 10% 5% =~ 5% 0% | 0% i ox ax! @r20 © -@220 320420 ar @r20 @220@3'20 420 a
Slide 11: Achieved Excellent Gross Margins
ACHIEVED EXCELLENT GROSS MARGINS 41% 40% 39% 38% 37% 36% 35% 34% Non-GAAP Gross Margin Long-term target range Q1'20 Q2'20 Q3'20 Note: Figures are for illustrative purposes only. Qt'21 Q1'21 gross margin expanded 140 basis points to a better-than-expected 39.2%, with favorable product mix and reduced
Slide 12: OPEX Investments to Capture Market Growth
OPEX INVESTMENTS TO CAPTURE MARKET GROWTH investments in etail and strategic Of eae . . Sales & marketing 7% growth initiatives partially offset by % of sales 15.7% 18.0% (230 bps) reduced travel and physical retail Research & development 47 40 16% store marketing campaigns % of sales 5.9% 6.2% (30
Slide 13: Record Low Cash Conversion Cycle
RECORD LOW CASH CONVERSION CYCLE Cash from operations Ending cash balance 809 Inventory 271 Inventory turns 7.2 DOI 50 Accounts receivable 500 DSO 57 Accounts payable 430 Cash conversion cycle 27 days | 50 days | (23 days) | (17 days) 598 297 55 66 419 59 339 212 (26) 1.7 turns (16 days) 81 (2 days)
Slide 14: Raising Fiscal Year 2021 Outlook
RAISING FISCAL YEAR 2021 OUTLOOK FY 2021 OUTLOOK NEW OLD Sales growth (CC) 10-13% Mid-single digits Non-GAAP operating income $410 - 425M $380 - 400M ADDITIONAL ASSUMPTIONS Currency exchange rates Q1’21 actuals and Q2-Q4’21 projections! Non-GAAP effective tax rate 8-9% Cash from operations ~1x non-G
Slide 15: Appendix
APPENDIX
Slide 16: 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 2020 2019 Gross profit - GAAP 305,733 $ 238,976 Share-based compens
Slide 17: 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 2020 2019 Operating income - GAAP $ 83427 $ 47,467 Share-based comp
Slide 18: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the month ended June 30, 2020 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 our condensed con
Slide 19: 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 20: Logitech
logitech