ANALYST AND INVESTOR DAY 2 MARCH 2016 VIDEO COLLABORATION SCOTT WHARTON

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Transcription:

ANALYST AND INVESTOR DAY 2 MARCH 2016 VIDEO COLLABORATION SCOTT WHARTON

FORWARD LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: workplace transformation, addressable market, growth drivers, potential, opportunities and momentum, market share, and our collaboration program. 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 or our growth opportunities are more limited than we expect; 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 product categories, or significant fluctuations in exchange rates. 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, 2015 and its Annual Report on Form 10-K for the fiscal year ended March 31, 2015, 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.

VIDEO CALLING IS MAINSTREAM WITH CONSUMERS

But still early days for video calling at work

TRADITIONAL VIDEO SOLUTIONS: MATURE MARKET FOR BIG ROOMS 10M Rooms Boardrooms Immersive Suites Addressable market for legacy video conferencing solutions Large Meeting Rooms ~10M large meeting rooms Huddle Rooms Source: Wainhouse Research; Understanding the Huddle Room, Logitech estimates

THE OPPORTUNITY IS HUDDLE ROOMS 10M Rooms Boardrooms Immersive Suites ~40 million huddle rooms Large Meeting Rooms Number of huddle rooms growing Assume average $500-$1K/room 30 50M Rooms Huddle Rooms Addressable Market = $20-40B Source: Wainhouse Research; Understanding the Huddle Room, Logitech estimates

WORKPLACE TRANSFORMATION % of workspace change Next 24 months Teleworking 55% Open Workspace Huddle Rooms Large Conference Rooms 36% 34% 9% Source: Internal Logitech + Wainhouse Workspace Transformation, 1/2015, IT Decision Makers Source: Bluejeans, State of the modern meeting, 08/15

THE WORLD MOVES TO OPEN FLOOR PLANS

THE REALITY OF OPEN FLOOR PLANS

HUDDLE ROOMS DRIVE THE NEXT GROWTH WAVE $3,000 M$ Traditional VC Endpoints VCaaS + UCWeb TOTAL ADDRESSABLE MARKET 9.7M $2,500 4.2M # of Rooms $2,000 $1,500 $1,000 GROWTH DRIVERS More Users 2015 2018P $500 $0 2014 2015 2016 2017 2018 Better, Simpler, and Affordable Solutions Source: Wainhouse, VC endpoints, Infrastructure & Services Market Sizing & 5Y Forecast 2015 Traditional VC Endpoints exclude sub-$2k units, Wainhouse Research and management estimates

TODAY S SOLUTION FALLS SHORT

TRADITIONAL VIDEO CONFERENCING SOLUTIONS ARE TOO EXPENSIVE AND COMPLICATED Single Vendor Provider Scheduling Manageability Call Control Directory services Operating system Hardware

OPEN SYSTEMS ARE THE FUTURE Single Vendor Provider Scheduling Manageability Best-of-Breed Ecosystem SOFTWARE Call Control Directory services HARDWARE Control Processor Hardware Display Video Audio

HARDWARE IS CORE TO THE EXPERIENCE

Price VIDEO CONFERENCING HARDWARE LANDSCAPE Traditional VC Systems ConferenceCams Laptop - embedded Cost-Conscious Performance16

LOGITECH GROUP: DISRUPTING THE MARKET Razor Sharp Video Crystal Clear Audio Disruptive Price-Performance (< $1k) Compatible with all leading communication applications

PORTFOLIO FOR ALL CONFERENCE ROOM NEEDS CONFERENCECAM BCC950 Connect GROUP GROUP + Mics PTZ Pro $249 $499 $999 $1249 $799 up to 4 up to 6 up to 10 up to 20 20+ with custom audio

ALIGNING WITH PARTNERS

STRONG GROWTH MOMENTUM Logitech Video Collaboration Sales 100 80 60 M$ 40 20 0 FY13 FY14 FY15 FY16e Wainhouse, VC endpoints, Infrastructure & Services Market Sizing & 5Y Forecast 2015 Traditional VC Endpoints exclude sub-$2k units

#2 IN CONFERENCE ROOM VIDEO +100K ConferenceCams shipped in the past year! (k units) 160 140 120 100 80 60 40 20 Competitor 1 Competitor 2 Competitor 3 Competitor 4 Source: Internal Logitech Estimates, Wainhouse Research Spotcheck CY Q4 14 to Q3 15, Single Codec Units Shipment

And we are just getting started