Growth Opportunities in Logitech for Business

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1 Growth Opportunities in Logitech for Business Logitech Analyst & Investor Day Eric Kintz, VP Logitech for Business November 9, 2011

2 Forward-Looking Statements This presentation contain forward-looking statements, including the statements regarding Logitech s growth strategies and opportunities in business markets. These forward-looking statements involve risks and uncertainties that could cause Logitech s actual results to differ materially from those anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include: If our investments in growing our B2B sales and marketing teams and in developing products for business markets do not result in the incremental sales and profitability growth we expect, or when we expect it If desktop and notebook PC usage significantly declines in business markets, and our sales of peripherals products for tablets and other mobile devices in enterprises do not compensate for the decline If we fail to introduce differentiated B2B product and marketing strategies to separate ourselves from competitors, or fail to successfully execute on our strategies More information about these and other factors impacting Logitech s business and prospects is contained in Logitech s periodic filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended March 31, 2011, our Quarterly Report on Form 10-Q for the fiscal quarters ended June 30, 2011 and September 30, Logitech does not undertake to update any forward-looking statements, which speak as of their respective dates. 2

3 Logitech for Business Large and growing opportunity Timely opportunity, supported by multiple trends Differentiated offerings Go to market model 3

4 Large & Growing Opportunity

5 Large Addressable Worldwide Market for B2B PC Peripherals Vendor Revenue Worldwide $2.2B $300M Webcams 25% CAGR $550M Office Headsets 30% CAGR (1) $1.2B $100M $150M $950M $1,350M Mice & Keyboards 7% CAGR (2) (1) Excludes desk phone only office headsets. (2) Branded market only. Excludes OEM sales Source: Logitech internal estimates based on Frost &Sullivan and NPD data 5

6 PC Peripherals: Huge Attach Opportunity in B2B FY12 Estimate: Logitech Net Revenue per Installed PC Worldwide 6.6x more revenue generated per Consumer PC than Business PC (webcams, headsets, mice and keyboards) B2B Consumer Source: Logitech internal estimates; Gartner, March

7 Timely Opportunity

8 Favorable Trends Support Launch of Logitech for Business The PC retains its role in B2B, with continued growth linked to Windows 7 refresh cycle Shift from desktop to notebook creates enhanced attach for Logitech after-market mice and keyboards Pervasiveness of workspaces creates new pain points that Logitech can help address Increased employee influence on computing purchasing process creates new up-sell opportunities UC inflection point creates new attach opportunities for webcams and headsets with secular trends favorable to Logitech 8

9 The PC Retains Its Role in B2B, with Continued Growth Linked to Windows 7 US B2B Desktop and Notebook YoY Unit Growth Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Win7 and Microsoft Office refreshes drive PC upgrade cycle Desktops still significant. 1:1 shipment ratio with notebooks (US) Tablets are an additive opportunity to PC growth New refresh cycle likely with Windows 8 9

10 Shift from Desktop to Notebook Creates Enhanced Attach for After-market Top brand preference mouse in US large businesses Bundled with PC (system builder) Stand alone purchase (after-market) 1. Logitech 41% 2. Dell 33% 3. Microsoft 26% 4. HP 19% 5. Belkin 7% 1. Logitech 67% 2. Microsoft 22% 3. Dell 11% 4. HP 11% 5. Lenovo11% Notebook shift has spurred desire for alternate input devices in offices Higher relevance of peripheral brands in aftermarket Higher ASPs in aftermarket Source: AMI -Research computer peripheral study for Logitech, US,

11 Pervasiveness of Workspaces Creates New Pain Points Home office Rise of tele-working creates need for company-sponsored peripherals at home Open Space Office High penetration of docking stations and monitors increases relevance of external peripherals for desktop-like usability Mobile Office Rapid adoption of company-sponsored tablets and tablet peripherals for executives and sales forces 11

12 Increased Employee Influence Creates New Up-sell Opportunities Purchase triggers for stand alone peripherals in US businesses Wireless Replaced broken device 68% Employee requested upgrade Ergonomics 31% 30% Ergonomics Business needs Keeping up with latest features 21% 25% Personal expression Source: AMI -Research computer peripheral study for Logitech, US,

13 UC Inflection Point Creates New Attach Opportunities for Webcams and Headsets M 15% Unified Communications (UC) Client Installed Base 81M 20% % Penetration 103M 128M 32% 25% 155M 45% 40% 38% 35% 30% FY12e FY13e FY14e FY15e FY16e 25% 20% 15% 10% 5% - Shift to software and PC based communications drives higher attach for PC webcams and headsets Hardware and software UC purchasing decisions shifting from telecom department to IT group, driving positive trend for Logitech vs. headset vendors: IT channel growth Brand preference for IT brands Focus on price and durability vs. pure acoustics Source: Logitech internal estimates, Frost & Sullivan

14 International Expansion Opportunity China Alone Represents Significant Upside $ M addressable market in China 50% in large enterprise and government 65% mice and keyboards 14

15 Differentiated Offerings

16 Broadest Assortment of High Quality Peripherals in the Market Why Logitech? Reputation for quality and durability #1 criteria for IT managers Employee centric choice / IT compatible Highest PC attach opportunity for channel 16

17 R&D Innovation in UC Only One Stop Shop UC Vendor in the Market 17

18 Go To Market Model

19 Affordable, Efficient and Scalable Model R&D strong leverage of consumer product innovation, tuned for B2B pain points Focused B2B innovation for portfolio gaps Marketing new brand positioning focused on the Anywhere Office deployed virally and through channel co-marketing Sales leverage of consumer distribution relationships, direct coverage for OSS/DMRs, telesales for VAR/Sis Partnerships strong leverage across LifeSize and Logitech for Business 19

20 Marketing New Brand Positioning Focused on the Anywhere Office 20

21 Sales: Efficient and Scalable Go-To-Market Distributors Direct leverage of consumer infrastructure DMR/ OSS VAR / SIs DMR/OSS Existing relationships Highly concentrated channel makes 1:1 sales coverage possible VAR/SI Low-cost web portals and distribution pass-thru merchandising enable streamlined Go-to-market Enabled by Logitech channel program and efficient telesales 75 partners signed up in first 3 months 21

22 Partnerships Strong Leverage Across LifeSize and Logitech for Business LifeSize / Logitech leverage One stop shop certification across the portfolio Co-marketing activities across the portfolio Co R&D with key partners 22

23 Summary We have a large and growing opportunity to provide peripherals for the flexible ways people work in the Anywhere Office Confluence of consumer and business trends highly favorable to launch of Logitech for Business Affordable, efficient, and scalable model Leveraging our retail and enterprise product offerings, partnerships and distribution channels 23

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