Delivering Growth in Tablet Keyboards & Cases

Transcription

1 Delivering Growth in Tablet Keyboards & Cases March 6, 2014 Mike Culver

2 Forward Looking Statements This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: size, growth and opportunity for the tablet accessories markets; keyboard usage with mobile devices; competitive differentiators; and our keys to delivering growth. These statements are subject to risks and uncertainties that may cause actual results and events to differ materially, including without limitation: 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; the demand of our customers and our consumers for our products and our ability to accurately forecast 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 in our new product categories and sales in emerging market geographies; the effect of pricing, product, marketing and other initiatives by our competitors; if our products and marketing strategies fail to separate our products from competitors products; if there is a deterioration of business and economic conditions in one or more of our sales regions or operating segments. These risks and uncertainties are detailed in Logitech s filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2013 and its Annual Report on Form 10-K/A for the fiscal year ended March 31, 2013, available at under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forwardlooking statements to reflect new information or events or circumstances occurring after the date of this presentation. 2

3 Continued Growth for Tablet Accessories Tablet Keyboards A growing category led by Logitech Tablet Cases Big opportunity in a large, highly fragmented market 3

4 Tablet Shipments Expected to Grow 20% in FY15 ipad Android Windows 84M units 174M units 16M units Growth expected across all tablet OS types 4 Source: IDC WW Tablet Tracker (Q update); Fiscal Years estimated by Logitech

5 FY15 Growth Expected Across All Screen Sizes, Plus New 12 Tablets # Units FY15E YOY growth Key Players 7 inch 103M 16% Samsung and other Android 8 inch 69M 21% ipad Mini, Samsung, other Android 10 inch 94M 19% ipad, Samsung, Surface, others NEW 12 inch 8M 193% Samsung, Win8 tablets 5 Source: IDC WW Tablet Tracker (Q update); Fiscal Years estimated by Logitech; Samsung 12 in Tablets estimated by Logitech

6 Tablet Keyboards Growing Faster Than Tablets FY15E YOY % Growth 35% 20% 6 Tablet Market Tablet Keyboard Market Source: IDC WW Tablet Tracker (Q update) and Logitech estimates

7 Tablet Keyboard Attach Rate Tablet Keyboard Attach Continues to Increase 12% ipad Keyboard Attach Rate to ipad and ipad Mini 10% 8% 6% 4% 2% 0% CY: 2010 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 ipad Mini ipad 7 Source: IDC Q4 CY 2013, GfK Dec. 2013, NPD Dec. 2013, MA Forecast Model

8 Attach Rate for 12 + Tablets Expected at 40% or Higher Samsung s Galaxy Note Pro 12.2 is the first tablet of this screen size and more entrants are expected Larger screen size translates into potential for high keyboard attach rate as size and functionality rival latops 8

9 Will Attach Continue To Grow? Are on-screen keyboards sufficient for entering text? What about new solutions for entering text (e.g. Swiping and Voice)? Typing on a physical keyboard remains the most preferred and efficient input method for more than short messages Continued keyboard usage is a core tenant of our mobile device growth strategy 9

10 Our Keyboard Expertise = Competitive Advantage Leveraging 15+ years designing keyboards Comprehensive understanding of consumer typing preferences and best user experience Deep ergonomic know-how Flexible manufacturing capabilities Experience managing multiple language layouts Global retail distribution channel World-class design and engineering team with long standing market leadership in PC keyboards 10

11 Reflected in Our Award-Winning Tablet Keyboards Ultrathin Keyboard Cover: our award winning design is #1 selling ipad keyboard Ultrathin Keyboard Folio: the lightest keyboard folio FabricSkin Keyboard Folio: perfect fusion between style and technology 11

12 Market Leadership In Tablet Keyboards Apple Worldwide Tablet Keyboard Sales and Market Share for Apple Tablets in Units Logitech ended CY 2013 with 51% market share of Apple tablet keyboards 12 Source: GfK December 2013, NPD December 2013, MA hand coding, WW = US, UK, FR, DE, AU, JP

13 Tablet Keyboard Attach Rate Logitech is Growing the Overall Market 12% ipad Keyboard Attach Rate to ipad and ipad Mini 10% Ultrathin KB Folio for ipad 8% 6% 4% Ultrathin KB for ipad Ultrathin KB Folio for ipad Mini 2% Ultrathin KB for ipad Mini 0% CY: 2010 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 ipad Mini ipad Creating distinctive products that enhance the tablet experience 13 In-store merchandising builds category awareness Source: IDC Q4 CY 2013, GfK Dec. 2013, NPD Dec. 2013, MA Forecast Model

14 Increasing Tablet Attach Through Design & Innovation The Art of Typing Industrial Design On Trend Materials Intelligent Materials Power Management Deliver the functionality consumers want, in designs they will love to own 14

15 15 Expanding Growth with Tablet Cases

16 Tablet Case Market is Large and Fragmented Apple is the dominant brand in tablet cases, with 24.5% share No other brand owns >10% share Market size at $1B+ 16 Source: GfK December 2013, NPD December 2013, MA hand coding, WW = US, UK, FR, DE

17 Applying Speed and Innovation to Tablet Cases Entered tablet case market in May 2013 Launched our next generation tablet case products within just five months On shelf the same day as ipad Air Delivered the only case at launch with suspend/resume magnets for ipad Air Earned WW placement in Apple Stores We have the design experience and operational speed to win 17

18 Differentiating through Design Smart protection Precision engineering and state-ofthe-art high performance materials working together to provide comprehensive protection Smart design Delivering superior experiences through Design focus Leveraging Logitech expertise On target materials and on trend colors Continue to offer a broad pallet of durable, on trend color and materials 18

19 Winning in Tablet Cases DESIGN Leverage our new design DNA and tablet usage know-how to offer consumers the protection, functionality and style they want OPERATIONS Leverage our development and operational speed to align with each tablet generation - Products on the shelf at the right time DISTRIBUTION Leverage our retail global distribution to gain placement 19

20 Delivering Continued Growth in Tablet Accessories Tablet keyboard market is growing with opportunities to continue increasing attach rate Tablet cases market is large and fragmented and we know how to differentiate and grow share Continue to move faster to stay ahead of a rapidly evolving market Leverage consumer insights, testing, partnerships and trends Apply our new Design DNA to deliver products people will love to own 20

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