Slide 1: Q2 Fiscal Year 2022 Financial Results
Q2 Fiscal Year 2022 Financial Results October 25, 2021
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 and six months ended September 30, 2021, fiscal year 2022 outl
Slide 3: What's New From Logitech
WHAT’S NEW FROM LOGITECH
Slide 4: Climate Positive
SUSTAINABILITY Logitech is adopting a climate positive approach, addressing its carbon footprint across the entire value chain (Scope 1, 2, and 3) to achieve carbon neutrality this year and setting the company on a path to net zero by 2030, and beyond that, climate positive CLIMATE Logitech is accel
Slide 5: Creativity & Productivity
CREATIVITY & PRODUCTIVITY MX Keys Mini and MX Keys Mini for Mac, offers the best features of the standard-sized MX Keys in a minimalist wireless keyboard designed for any space you work Offering USB-C quick-charging, MX Keys Mini easily connects up to three wireless devices with Bluetooth® Low Energ
Slide 6: Gaming
GAMING Logitech G435, the company’s lightest, most affordable, sustainable wireless gaming headset yet Weighing in at only 5.8 oz (165 grams), G435 is ultra lightweight and comfortable enough to wear all day G435 is certified CarbonNeutral®, which means that we finance high-quality certified carbon
Slide 7: Financial Results
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Slide 8: Financial Key Messages – Q2 FY 2022
FINANCIAL KEY MESSAGES – Q2 FY 2022 Q2’22 net sales increased 2% (CC) to $1.31B, a record for Q2, with double digit sell-through growth in all regions, strong share gains in most categories, and we confirmed our full year outlook despite global supply chain challenges Gross margin was 42%, within ou
Slide 9: Sales Growth and Investment for the Future
SALES GROWTH AND INVESTMENT FOR THE FUTURE Q2’22 Q2’21 Y/Y Net sales +2% (CC) to $1.31B, with market Net sales $1,306 $1,257 49 share growth in the majority of the Y/Y % chg 4% 75% categories Y/Y % chg (CC) 2% 73% Gross margin was 42% and decreased as Gross profit 548 574 (26) expected due to increa
Slide 10: As Secular Growth Trends Continued
… AS SECULAR GROWTH TRENDS CONTINUED Our large secular market trends sustained last Q2’22 Q2’21 Y/Y Y/Y (CC) year’s overall sales levels Pointing Devices 189 169 12% 10% Keyboards & Combos 236 202 17% 15% Pointing Devices +10% (CC) and Keyboards +15% (CC) delivered another double-digit growth PC Web
Slide 11: Double Digit Sell-Through Growth in All Regions
DOUBLE DIGIT SELL-THROUGH GROWTH IN ALL REGIONS Y/Y Y/Y Sell-through Q2’22 Q2’21 (CC) (US$) (US$) Sell-through growth was balanced and double digit across all three regions Americas 542 542 (1%) (0%) 13% EMEA 399 390 0% 3% 16% Net sales grew 4% after growing 73% last Asia Pacific 365 325 9% 12% 18%
Slide 12: Gross Margin Within Target Range
GROSS MARGIN WITHIN TARGET RANGE Gross margin decreased 370 basis points to 42.0% versus Q2’21 and increased 360 basis points vs Q2’20 Results were as expected, despite higher freight and component costs, and we continue to expect our gross margins to be within our target range of 39-44% over the lo
Slide 13: Investing for Long-Term Business Growth
INVESTING FOR LONG-TERM BUSINESS GROWTH Q2’22 Q2’21 Y/Y Strategically investing in the business as we shift our model to be more marketing and Sales & marketing 247 148 66% innovation-led versus promotion-led % of sales 18.9% 11.8% 710 bps Research & development 64 50 29% S&M expenses up 66% as our
Slide 14: Strategic Investments in Working Capital
STRATEGIC INVESTMENTS IN WORKING CAPITAL Q2’22 Q2’21 Y/Y Q/Q Cash balance at $1.1B, up $0.2B Y/Y Cash from operations (63) 280 (343) 52 In Q2, cash flow from operations was a Ending cash balance 1,137 917 220 (360) negative $63M Inventory 828 395 110% 6% Inventory turns 3.7 7.0 (3.3) (0.1) Made an a
Slide 15: Reaffirming Fiscal Year 2022 Outlook
REAFFIRMING FISCAL YEAR 2022 OUTLOOK FY 2022 OUTLOOK Sales growth (CC) -5% to +5% Non-GAAP operating income $800M - $850M ADDITIONAL ASSUMPTIONS Currency exchange rates YTD FY’22 actuals and Q3-Q4’22 projections 1 Non-GAAP effective tax rate 12% – 13% Cash from operations ~0.5x non-GAAP operating in
Slide 16: Appendix
logitech \ Wz APPENDIX
Slide 17: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS
Slide 18: GAAP to Non-GAAP Reconciliations
GAAP TO NON-GAAP RECONCILIATIONS
Slide 19: GAAP to Non-GAAP Reconciliation Notes
GAAP TO NON-GAAP RECONCILIATION NOTES Note: These preliminary results for the three and six months ended September 30, 2021 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 consumers and by our distributor customers to their not be an entirely accurate indicator of actual consumer demand customers for our products. Limitations
Slide 21: Logitech
logitech