Logitech International S.a. · SIX:LOGN
Logitech International — Investor Day (March 2018)
17 slides from Logitech International's investor day presentation, Mar 6, 2018
Slide 1: Financials
logitech => FINANCIALS ~ ay Vincent Pilette & CFO
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: projected fiscal year 2018 sales, sales growth, strategic growth, operating income, gross profit, gross margin
Slide 3: Our Journey Together
OUR JOURNEY TOGETHER . i! Roadmap to $2 - ! 3-year turnaround (done in 2!) i! non-GAAP EPS by FY20 um I tee ee eee ee ee ee eee eee eee eee Vee eee ee eee eee eee
Slide 4: Five Consecutive Years of Growth
FIVE CONSECUTIVE YEARS OF GROWTH 12%-14% Smart Home ASTRO Gaming Jaybird Music Video Collaboration C&P Net retail sales ($M) Note: Based on FY18E non-GAAP outlook. Comparisons are YoY and in constant currency. Consistently re-evaluated portfolio PC Peripheral sales mix ~40% Gained share across categ
Slide 5: Diversified Portfolio Sustains Growth
DIVERSIFIED PORTFOLIO SUSTAINS GROWTH +1744 SMART HOME +i | | wey | es GAMING +45% music +5 % =. =-% ) ae ® VIDEO COLLABORATION Note: Based on mid-point of FY18E non-GAAP outlook. Comparisons are YoY and in constant currency.
Slide 6: On Track to FY18E Outlook
ON TRACK TO FY18E OUTLOOK 10%-12% ; i en4% > Organic growth +10-12% gies 9 99% nnnennn nner e «oii ! of NET SOT anne 10.5%-11.0% Acquisition growth +2% ; a $270M AAA © 6.9% to in I $252M fl $280M 2 Gross margin ~36% H = 1 £0 1 $139M ig (@)) Operating income $270-280M H Acquisition $85M c 2 rm] ie} o
Slide 7: What Is Our Approach?
WHAT IS OUR APPROACH? ! RESET Il POSITIONFOR I! INVEST FOR ! ul GROWTH u GROWTH ; #1 Grow top-line I l l Il ul I u ul #2. Improve gross profits l i ul l I ul #3 Re-invest in business I _—— a #4 Constantly assess the | ee portfolio position across a ! ! I i multitude of opportunities ! l i iL FY13/14
Slide 8: Design for Cost Conceptual Framework
DESIGN FOR COST CONCEPTUAL FRAMEWORK A Ability to influence cost DESIGN FOR : HISTORICAL COST SAVINGS : COST FOCUS PRODUCT LAUNCH Note: Figures are for illustrative purposes only.
Slide 9: Design for Cost Driving Better Results
DESIGN FOR COST DRIVING BETTER RESULTS Cost ($) Product design Note: Figures are for illustrative purposes only. Product launch Post launch Price Time UE Roll savings: Procurement Manufacturing Scale Wonderboom savings: Speaker design Printed circuit board Fabric & Plastic Packaging
Slide 10: Organic Growth FY13 FY18E
FY13 FY18E Organic growth F A Acquisitions B Gross margin D C Investing for growth B Meet or exceed profit targets F A Cash from operations A A Grow dividends B Opportunistic share buyback B
Slide 11: Long-Term Business Model
Pr ae LONG-TERM BUSINESS MODEL Retail sales CC growth High single-digit Operating margin Cary
Slide 12: Logitech Net Sales Growth High Single-Digit CC
LOGITECH NET SALES GROWTH HIGH SINGLE-DIGIT cc Creativity & Productivity Flat to low-single digit | Video Collaboration 30% - 40% Low-single digit Note: Comparisons are YoY and in constant currency.
Slide 13: Operating Income Outlook
OPERATING INCOME OUTLOOK $30M ~$330M $15M $310M #1 Temporary cost from §320M operating two distribution centers in the Americas $ $10M 270M . . to | #2 One-time hedging cost from $280M | | rapid USS depreciation in FY18; FY19 currency assumed to be similar to average FY18 rates #3 Profits growing fa
Slide 14: Continued Strong Cash Generation
CONTINUED STRONG CASH GENERATION Cumulative cash from operations #1 = Acquisitions $68M #1 Business investments and acquisitions #2. Dividend payments $223M #2 Growing dividends #3 Share buyback $156M #3 $250M three-year buyback
Slide 15: Fiscal Year 2019 Outlook
FISCAL YEAR 2019 OUTLOOK OUTLOOK Net sales growth High single-digit cc Non-GAAP operating income $310 - 320M ASSUMPTIONS Currency Non-GAAP effective tax rate Cash from operations FY18E average rates 7-8% 1x non-GAAP operating income esc FI rd F3 tn ax Ne Fe Fo FIO) FI
Slide 16: On Track to FY20 EPS
ON TRACKTO > =) ~~ $0.65 to ~$0.20 — FYB FYI7 FYIBE Revenue@ ~~“ Productivity investments FY20E growth gains 1st time implementation of breakage in EMEA; ~$0.09 positive EPS impact Assuming high single- digit CAGR over three years Moving toward the high-end of gross margin target range of 35-37% Inv
Slide 17: Logitech
logitech