#1logitech Q3 Fiscal Year 2023 Financial Results January 23, 2023 log#2FORWARD-LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of U.S. federal securities laws, including, without limitation, statements regarding: our preliminary financial results for the three and nine months ended December 31, 2022, secular trends and opportunities, operational performance, product innovation, product launches, our near term plans, our long-term strategy, future growth and efficiencies, restructuring and reduction in expenses and their timing, and Fiscal Year 2023 outlook for sales growth and non-GAAP operating income, and related assumptions. These statements are subject to risks and uncertainties that could cause Logitech's actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: macroeconomic and geopolitical conditions and other factors and their impact, including the COVID-19 pandemic and changes in the COVID-19 pandemic controls and infection levels in China, the war in Ukraine, changes in inflation levels and monetary policies; if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth we expect, or when we expect it; if we fail to innovate and develop new products in a timely and cost-effective manner for our new and existing product categories; if we do not successfully execute on our growth opportunities or our growth opportunities are more limited than we expect; the effect of demand variability, supply shortages, and other supply chain challenges; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins and profitability; if we are not able to maintain and enhance our brands; if our products and marketing strategies fail to separate our products from competitors' products; if we do not efficiently manage our spending; our expectations regarding our restructuring efforts, including the timing thereof; if there is a deterioration of business and economic conditions in one or more of our sales regions or product categories, or significant fluctuations in exchange rates; changes in trade regulations, policies and agreements and the imposition of tariffs that affect our products or operations and our ability to mitigate; if we do not successfully execute on strategic acquisitions and investments; risks associated with acquisitions; and the effect of changes to our effective income tax rates. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech's periodic filings with the Securities and Exchange Commission (SEC), including our Annual Report on Form 10-K for the fiscal year ended March 31, 2022, our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, and our subsequent reports filed with the SEC, available at www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements to reflect new information or events or circumstances occurring after the date of this presentation. To facilitate comparisons to Logitech's historical results, Logitech has included non-GAAP adjusted measures in this presentation, which exclude share-based compensation expense, amortization of intangible assets, acquisition-related costs, impairment of intangible assets, change in fair value of contingent consideration for business acquisition, restructuring charges, loss on investments, non-GAAP income tax adjustment, and other items detailed under "Supplemental Financial Information" in our earnings press release and posted to our website at http://ir.logitech.com. Logitech also presents percentage sales growth in constant currency ("CC"), a non-GAAP measure, to show performance unaffected by fluctuations in currency exchange rates. Percentage sales growth in constant currency is calculated by translating prior period sales in each local currency at the current period's average exchange rate for that currency and comparing that to current period sales. Logitech believes this information, used together with the GAAP financial information, will help investors to evaluate its current period performance, outlook and trends in its business. For historical financials provided in this presentation, reconciliation between non-GAAP amounts and GAAP amounts is provided on the Investors page of our website, together with this presentation and with our earnings releases. With respect to financial outlook, most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Therefore, no reconciliation to the GAAP amounts has been provided for the Fiscal Year 2023 outlook.#3What's New From Logitech? logitech#4INNOVATION 2023 Innovation Award Honorees Logitech won four CES 2023 Innovation Awards: Logitech Litra Beam, Blue Sona, Logi Dock and UE DROPS. The products represent some of the newest innovations from Logitech that enhance experiences and help people pursue their passions across streaming, audio and hybrid work. logi CES INNOVATION AWARDS 2023 HONOREE TO#5GAMING Vantum Representing another example of the research-focused spirit of the partnership between Herman Miller and Logitech G, the Vantum gaming chair was released in Q3. Vantum is centered on versatility, adaptability and purposefully built for gamers from the ground up, providing the correct level of support throughout the various modes of gameplay for increased comfort, concentration and endurance, whether in a position of play or pause. Vantum is the second gaming chair introduced by Logitech, and is priced at a more attractive price point than its predecessor. IT G#6SUSTAINABILITY Logitech was once again recognized as a member of the Dow Jones Sustainability Europe Index (DJSI). Widely recognized as a standard for measuring and advancing Environmental, Social, and Governance (ESG) criteria, the DJSI recognized Logitech for the third consecutive year. The company made advancements in areas such as Cybersecurity & Privacy Protection, Operational Eco-Efficiency, Product Stewardship, and Climate Strategy. The actual improvement reflected in these scores translates into real and tangible benefits to people and our environment, which continues to be Logitech's primary focus and motivation. logitech Member of Dow Jones Sustainability Indices Powered by the S&P Global CSA#7FINANCIAL RESULTS 7#8KEY MESSAGES - Q3'23 Q3'23 net sales declined 17% (CC) to $1.27B, as the industry continues to operate in a volatile macro environment. Despite declines in year-over-year net sales, we grew market share in Gaming, Video Collaboration, Pointing Devices and Tablet Keyboards in the quarter¹. In the quarter we experienced soft demand from our Enterprise and Consumer customers, as well as a more promotional environment for Consumers. We continue to operate the business with discipline, reducing our total operating expenses 23%, which was greater than the year-over-year reduction in revenue. Gross margin was 37.9%, down versus Q3'22. Pressures due to unfavorable currency movements, higher promotional environment and inflation were partially offset by price increases and less reliance on expedited shipping. Operating income was $204M, down 32% year-over-year, reflecting lower demand and gross margin pressure partially offset by reductions in operating expense. Cash flow from operations was $280M, ending cash balance was $1,036M and we returned $90M to shareholders through share repurchases in the quarter. Note: Results are non-GAAP, except for cash flow from operations. Comparisons are Y/Y and in constant currency unless otherwise specified. ¹ Market share data through November 2022. 8#9MANAGED OPEX TO REFLECT CHALLENGING GLOBAL ENVIRONMENT Net sales Y/Y % chg Y/Y % chg (CC) Gross profit % margin Operating expense % of sales Operating income % margin Net income % margin Earnings per share Diluted shares Q3'23 1,270 (22%) (17%) 482 37.9% 278 21.9% 204 16.1% 185 14.6% $1.14 163 Q3'22 1,633 (2%) (2%) 663 40.6% 361 22.1% 302 18.5% 263 16.1% $1.55 170 Note: Numbers in $ millions except EPS and percentages. Diluted share count in millions. Results are non-GAAP. Comparisons are Y/Y and in US$ unless otherwise specified. Y/Y (22%) (27%) (266 bps) (23%) (25 bps) (32%) (242 bps) (29%) (150 bps) (26%) (4%) Net sales down 17% (CC) to $1.27B, reflecting softness in the global economy Gross margin was 37.9%, driven by foreign currency headwinds, increased promotions and inflation, partially offset by pricing actions and less reliance on expedited shipping Reduced operating expense by 23%, including a 27% reduction in sales and marketing expense Operating income of $204M, down 32% year-over-year, reflecting lower demand and gross margin pressure partially offset by reductions in operating expense 9#10RESULTS REFLECT WEAK ENTERPRISE AND CONSUMER DEMAND Gaming¹ Video Collaboration Keyboards & Combos Pointing Devices Audio & Wearables Tablet & Accessories PC Webcams Mobile Speakers Other² Q3'23 Q3'22 392 226 220 199 69 65 58 38 1 469 287 282 231 104 83 115 57 5 Y/Y Y/Y (CC) % of Total Sales 31% (16%) (10%) (21%) (16%) 18% (22%) (17%) 17% (14%) (8%) (34%) (31%) (21%) (15%) 5% (49%) (46%) (32%) (29%) 3% (71%) (74%) 0% (22%) (17%) 100% Net sales 1,270 1,633 1 Gaming includes streaming services revenue generated by Streamlabs. 2 Other includes Smart Home. 3 Market share data through November 2022. Note: Net sales in $ millions. Comparisons are Y/Y and in US$ unless otherwise specified. 16% 5% 5% While all categories were down this quarter, the biggest change from the prior quarter was in Video Collaboration, as Enterprise customers delayed orders or reduced spending Consumer purchases were lighter than expected and highly concentrated in promotional weeks throughout the quarter Despite declines in year-over-year net sales, we grew market share in Gaming, Video Collaboration, Pointing Devices and Tablet Keyboards in the quarter³ 10