Logitech International S A : Q3 2023 Quarterly Factsheet

SUPPLEMENTAL FINANCIAL INFORMATION

Q3 FISCAL YEAR 2023 (QUARTER ENDED December 31, 2022)

Q3 FY 2023 FINANCIAL HIGHLIGHTS

$1,270	-17%	37.9%	$204	$1.14	$280
million			million	per share	million
Revenue	Y/Y Sales Growth	Non-GAAP	Non-GAAP	Non-GAAP	Cash Flow from
Gross Margin	Operating Income	Diluted EPS	Operations

Results listed in non-GAAP. Sales are net sales and comparisons are Y/Y and on a constant currency basis.

Quarterly Financial Trends 1,2

Preliminary results *
In $ millions except per share and %
	Q3'20	Q4'20	Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23
GAAP Results
Net Sales	903	709	792	1,257	1,667	1,536	1,312	1,306	1,633	1,230	1,160	1,149	1,270
Gross Margin	37.1%	39.0%	38.6%	45.3%	44.9%	46.3%	43.4%	41.5%	40.3%	40.2%	39.6%	38.2%	37.6%
Operating Expenses	206	245	222	248	301	416	366	363	395	365	344	311	301
Operating Income	129	32	83	322	448	295	203	179	263	129	115	127	177
Operating Margin	14.3%	4.5%	10.5%	25.6%	26.9%	19.2%	15.5%	13.7%	16.1%	10.5%	10.0%	11.1%	13.9%
Net Income	118	214	72	267	383	226	187	139	210	108	101	82	140
Diluted EPS	$0.69	$1.26	$0.42	$1.56	$2.22	$1.31	$1.09	$0.81	$1.24	$0.64	$0.61	$0.50	$0.86
Avg. Diluted Shares Outstanding	170	170	170	171	173	173	172	171	170	169	166	164	163
Non-GAAP Results
Net Sales	903	709	792	1,257	1,667	1,536	1,312	1,306	1,633	1,230	1,160	1,149	1,270
Gross Margin	37.6%	39.8%	39.2%	45.7%	45.2%	46.6%	43.8%	42.0%	40.6%	40.5%	40.0%	38.6%	37.9%
Operating Expenses	188	203	193	221	278	391	340	337	361	342	319	287	278
Operating Income	152	79	117	354	476	325	235	211	302	156	146	156	204
Operating Margin	16.8%	11.1%	14.8%	28.1%	28.6%	21.2%	17.9%	16.2%	18.5%	12.7%	12.6%	13.6%	16.1%
Net Income	143	71	109	320	423	251	210	180	263	136	123	138	185
Diluted EPS	$0.84	$0.42	$0.64	$1.87	$2.45	$1.45	$1.22	$1.05	$1.55	$0.81	$0.74	$0.84	$1.14
Net Sales by Product Category
Pointing Devices	155	135	120	169	214	178	183	189	231	178	183	185	199
Keyboards & Combos	156	148	145	202	218	219	218	236	282	231	228	201	220
PC Webcams	32	40	61	102	132	145	110	94	115	84	59	60	58
Tablet & Other Accessories	31	32	46	83	138	117	79	81	83	67	67	54	65
Video Collaboration	92	111	130	237	293	386	235	232	287	243	246	236	226
Gaming 2	246	149	182	298	436	323	335	331	469	316	283	298	392
Mobile Speakers	93	21	29	44	73	30	28	39	57	25	22	39	38
Audio & Wearables	82	65	71	114	153	130	117	98	104	82	69	73	69
Other 1	16	8	7	9	11	8	6	6	5	2	2	2	1
Total Net Sales	903	709	792	1,257	1,667	1,536	1,312	1,306	1,633	1,230	1,160	1,149	1,270

Note: These preliminary results for the three months ended December 31, 2022 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

1. Other includes Smart Home.
2. Gaming includes streaming services revenue generated by Streamlabs.

Cash Flow and Operational Trends 1

Preliminary results *
In $ millions except working capital metrics
	Q3'20	Q4'20	Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23
Balance Sheet
Cash and Cash Equivalents	656	716	809	917	1,389	1,750	1,498	1,137	1,364	1,329	1,107	869	1,036
Debt	0	0	0	0	0	0	0	0	0	0	0	0	0
Accounts Receivable	531	395	500	751	895	612	546	728	846	676	707	773	802
Inventory	307	229	271	395	477	661	779	828	835	933	917	880	798
Accounts Payable	439	259	430	663	812	823	710	661	739	636	559	547	491
Net Working Capital 1	400	365	342	483	560	450	615	895	942	972	1,065	1,106	1,109
Working Capital Metrics
Days Sales Outstanding	53	50	57	54	48	36	37	50	47	49	55	61	57
Days of Inventory	49	48	50	52	47	72	94	97	77	114	118	112	91
Days Payables Outstanding	70	54	80	87	80	90	86	78	68	78	72	69	56
Cash Conversion Cycle	32	44	27	19	15	18	45	69	56	85	101	104	92
Cash Flow from Operations	181	101	119	280	530	530	(115)	(63)	377	100	(36)	73	280
Capital Return
Dividends Paid	0	0	0	147	0	0	0	159	0	0	0	159	0
Shares Repurchased	0	35	0	22	50	92	55	120	116	121	121	117	90
Total Capital Return	0	35	0	169	50	92	55	279	116	121	121	276	90
LTM Capital Return	149	175	159	204	255	311	366	476	542	571	637	634	608

1. Net Working Capital is defined here as Accounts Receivables + Inventory - Accounts Payable.

Note: These preliminary results for the three months ended December 31, 2022 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.

GAAP to Non-GAAP Reconciliations

Preliminary results *
In $ millions except per share and %
	Q3'20	Q4'20	Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22	Q3'22	Q4'22	Q1'23	Q2'23	Q3'23
Gross Profit - GAAP	334	277	306	570	749	711	569	542	658	494	460	439	477
Share-based compensation expense	1	1	1	2	2	2	1	2	2	1	1	1	1
Amortization of intangible assets and purchase accounting	4	4	4	3	3	4	4	4	3	3	3	3	3
efffect on inventory
Gross Profit - Non-GAAP	340	282	311	574	754	716	574	548	663	498	464	443	482
Operating Expenses - GAAP	206	245	222	248	301	416	366	363	395	365	344	311	301
Share-based compensation expense	13	13	19	23	18	20	22	22	23	20	22	11	14
Amortization of intangible assets and acquistion-related	5	5	5	4	5	5	5	5	4	3	3	3	3
costs
Change in fair value of contingent consideration for	0	23	6	0	0	0	(1)	(1)	(1)	0	0	0	0
business acquisition
Restructuring charges (credits), net	(0)	0	(0)	(0)	0	0	0	0	2	0	0	11	6
Intangible Impairment	0	0	0	0	0	0	0	0	7	0	0	0	0
Operating Expenses - Non-GAAP	188	203	193	221	278	391	340	337	361	342	319	287	278
Operating Income - GAAP	129	32	83	322	448	295	203	179	263	129	115	127	177
Share-based compensation expense	14	15	20	25	20	21	24	24	25	21	24	12	16
Amortization of intangible assets	8	9	8	7	8	9	9	9	7	6	6	6	6
Purchase accounting effect on inventory	0	0	0	0	0	0	0	0	0	0	0	0	0
Acquistion-related costs	1	0	0	0	0	0	0	0	0	0	0	0	0
Change in fair value of contingent consideration for	0	23	6	0	0	0	(1)	(1)	(1)	0	0	0	0
business acquisition
Restructuring charges (credits), net	(0)	0	(0)	(0)	0	0	0	0	2	0	0	11	6
Intangible Impairment	0	0	0	0	0	0	0	0	7	0	0	0	0
Operating Income - Non-GAAP	152	79	117	354	476	325	235	211	302	156	146	156	204
Net Income From Continuing Operations - GAAP	118	214	72	267	383	226	187	139	210	108	101	82	140
Share-based compensation expense	14	15	20	25	20	21	24	24	25	21	24	12	16
Amortization of intangible assets	8	9	8	7	8	9	9	9	7	6	6	6	6
Purchase accounting effect on inventory	0	0	0	0	0	0	0	0	0	0	0	0	0
Acquistion-related costs	1	0	0	0	0	0	0	0	0	0	0	0	0
Change in fair value of contingent consideration for	0	23	6	0	0	0	(1)	(1)	(1)	0	0	0	0
business acquisition
Restructuring charges (credits), net	(0)	0	(0)	(0)	0	0	0	0	2	0	0	11	6
Intangible Impairment	0	0	0	0	0	0	0	0	7	0	0	0	0
(Gain)/loss from equity method investments	1	(40)	(0)	3	2	1	(1)	2	0	0	(11)	23	1
Non-GAAP tax adjustment	2	(150)	3	18	10	(6)	(7)	7	13	(0)	3	4	16
Net Income From Continuing Operations - Non-GAAP	143	71	109	320	423	251	210	180	263	136	123	138	185
Net Income from Continuing Operations Per Share
Diluted- GAAP	$0.69	$1.26	$0.42	$1.56	$2.22	$1.31	$1.09	$0.81	$1.24	$0.64	$0.61	$0.50	$0.86
Diluted - Non-GAAP	$0.84	$0.42	$0.64	$1.87	$2.45	$1.45	$1.22	$1.05	$1.55	$0.81	$0.74	$0.84	$1.14

Note: These preliminary results for the three months ended December 31, 2022 are subject to adjustments, including subsequent events that may occur through the date of filing our Quarterly Report on Form 10-Q.