Logitech International S.A. (SWX:LOGN)
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Sep 11, 2026, 5:30 PM CET
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AGM 2020 (Q&A)

Sep 9, 2020

Wendy Becker
Chairperson of the Board, Logitech

Welcome, and thank you for joining us today for our question- and- answer webcast in connection with Logitech International S.A.'s 2020 Annual General Meeting. We're disappointed that we're not able to meet with shareholders in person at this year's AGM. We have attempted to strike a balance between giving our shareholders a forum to ask questions and engage with our leaders while protecting the health and safety of shareholders, the board, and employees. We held the official AGM this morning. I'm pleased to report that all of the proposals passed, and we'll be publishing the results over the next few days. On behalf of myself, my fellow board members, and management, thank you for your support, participation, and trust in us.

As we have entered fiscal year 2021, it has been an extraordinary time for the world and Logitech's place in the world, not just as a result of the COVID-19 pandemic. Bracken and I would like to share with you our thoughts from our shareholders letter before we answer the questions that you posed to us. Bracken?

Bracken Darrell
President and CEO, Logitech

Thank you, Wendy. First, let me say, fiscal year 2020, as Wendy said, was a remarkable year for all of us. As we shared in the shareholder letter, the world has experienced an unprecedented combination of economic and social impact in the last 12 months. With the first significant U.S. tariff activity in decades, and then COVID-19 developing quickly into a full-blown global pandemic. For companies like ours, costs were driven up dramatically, and we were faced with the unprecedented closure of our entire supply chain for three weeks, disrupting supply throughout February and March. Our employees were concerned about their own health and the safety of their loved ones while finding themselves transitioning from the office to their homes to work. Despite these exceptional global macro events, our strategy and execution successfully delivered. We grew 9% last year, our fifth year of near double-digit growth or better.

Our sales hit a record high of almost $3 billion. We delivered record non-GAAP gross margins of 38.4%. Our non-GAAP profit reached a record $387 million, and our cash flow from operations was even higher at $425 million. Taking a step back, since we began our transformation in 2013, we have entered and now compete in 28 categories, up from 10, extended our brand portfolio to 7 brands from just one, and begun to be recognized as the design company we envisioned eight years ago. Where once we outsourced design without a single designer working at Logitech, we now have a strong and broad design team around the world. We're recognized by Forbes and McKinsey as a leader in the design world, and we win more design awards per revenue dollar than anyone in our industry.

Today, Logitech is worth approximately 11 times more than it was in fiscal year 2013.

Wendy Becker
Chairperson of the Board, Logitech

The most exciting thing is not what we've achieved. It's the remarkable opportunity we have in front of us as a business, and in the challenge to help the environment and assure equality in every person. The most exciting time in Logitech's nearly 40-year history is now. Logitech products, taken together, connect COVID-19 patients with their loved ones who can't visit them. They enable doctors, nurses, and other health practitioners to communicate with patients, eliminating the distance between patient and doctor. They enable teachers to instruct students remotely, most for the first time. They are the tools of content creators streaming or recording themselves for others to see on YouTube, Twitch, Facebook Live, and other sites. Many are starting to build an audience or even make a living for the first time.

They support the gaming world that seeks community, skill development, camaraderie, and fun, particularly as so many conventional sports are rendered unavailable to watch or play. They make us look and feel close to others through video conferencing with coworkers, family members, and friends, while helping minimize the impact of the environment by saving on travel. Ironically, as dramatic as the moment was for everyone to be sheltering in place at the beginning of this year, this forced confinement accelerated the four primary long-term secular trends that Logitech was well-positioned to take advantage of. One, video everywhere. Two, work from anywhere, including home. Three, the rise of gaming as a sport. Four, the democratization of content creation, which drives creators and streamers, the company's newest product category, and includes Blue Microphones, streaming cameras, and Streamlabs.

Bracken Darrell
President and CEO, Logitech

As ambitious as we are about growth, we're just as ambitious about making Logitech a force for good, for the environment, and for equality. We're moving decisively to be a model for sustainability. At the end of 2019, we announced our support of the Paris Agreement, pledging to align our corporate carbon emissions to support the ambitious goal of limiting global warming to 1.5 degrees Centigrade. We also announced that we'll be powered exclusively by renewable electricity by 2030. We are currently 88% of the way to that goal. We've already neutralized the carbon footprint for our entire gaming product portfolio, our manufacturing facility, and our corporate travel. We will neutralize more of the environmental impact of our business as we move ahead. In June, we committed to communicate the carbon impact of all our products.

Logitech will be the first consumer electronics company to provide detailed product carbon footprint labeling on product packaging across the entire portfolio. We're calling on the rest of the industry, and on all companies in any industry to join us. This will motivate all companies to reduce a product's carbon footprint, and thereby enable consumers and customers to influence the industry with their purchase decisions. We'll be treating carbon labeling like calorie labeling in the food industry. We believe that most companies will follow over the next several years. The leading provider of information on environmental, social, and governance, or ESG, matters ranked us fifth out of 145 tech companies for sustainability performance. In both 2019 and 2020, World Finance Magazine listed us among only 19 companies in the world as leaders in environmental responsibility, the only tech company.

The UN's [World Benchmarking Alliance] has included Logitech in the SDG 2000, a list of the companies that have the most influence over our ability to move to a more sustainable future. These recognitions were far before our carbon labeling initiative. They were also before we could disclose many of the other steps we're taking to make ourselves a leader in the movement to stop damaging the Earth. We still have a long way to go, but we're on the right track. You can now learn more about our efforts in our fiscal year 2020 sustainability report, which was launched today on our website. We also want to be a model for diversity and inclusion. Today, we are not. We will increase our focus on supporting Black and Brown people, women, LGBTQ+, and other underrepresented communities, internally and externally.

Internally, we've broadened the makeup of our leadership team, with 10 women in leadership positions, up from two. Our board has long benefited from the talent of our female directors, including Wendy, our chair, but we have so far to go to be a model for equality. As of today, we have the highest number of women on our board in company history, and the highest number of women in our leadership team. It's still not enough. We've published a seven-point plan to address the injustice captured in the Black Lives Matter movement in the U.S. We must work to ensure our teams, suppliers, and partners represent the communities in which we operate. We want Logitech to be an inspiring company to be affiliated with, and we hope we will sometimes inspire others with our actions.

While the world has rarely seen such uncertainty, our business and teams have demonstrated unprecedented resilience. We will continue to transform ourselves to change ourselves fast in this world of accelerating change. We're doing it for a better society, one based on care for the planet and care for the equalities of everyone. With that in mind, we are so grateful to our employees, our consumers, and our shareholders. Grateful for your trust and loyalty. You have so often looked past our mistakes or flaws at the good outcomes we deliver. We appreciate that. As we go forward, we expect to be held accountable, not just for our financial performance, but also for our environmental performance, and for our performance in helping to ensure the world is fair for every person.

We know we can't completely change the world, but we believe that we can address our own shortcomings, and then be a great example for others by performing well as a company, and by showing through our actions that we are changing to improve the environment and ensure equality. If change sounds like a key theme of this letter, then we've captured the feeling in the company today. We're changing faster and faster. Our business is so different today from the business I started in eight years ago. The company and the business will be more different in five years compared to today. With all this change, you might ask yourself, "What isn't changing about Logitech?" The humble, always learning, nimble, entrepreneurial company that started 40 years ago on October 2nd, 1981, is still at the core of Logitech today.

That is the heart of Logitech, and we pledge to sustain that beating heart. It's been another remarkable year, not just for the world, but also for us at Logitech. We believe what's ahead of us will be far more remarkable, more fair, and better for the world. We hope that you stay with us through an exciting and fulfilling ride.

Wendy Becker
Chairperson of the Board, Logitech

Now on to the final business of our annual general meeting. Although we could not be in person, we do value the shareholder engagement and actively solicited shareholder questions. Most that were received related to voting rights and procedures, which were addressed in advance of the AGM. We did receive the following question related to company business that will be shared and answered. The question was: how much of the current stock price can be attributed to the gaming category, and what actions are being taken to grow that part of the business? Are there any prospective businesses or adjacencies that could be effective areas in gaming that Logitech could grow? Bracken?

Bracken Darrell
President and CEO, Logitech

That's a great question, Wendy. Our investors and shareholders, like those of you listening now or watching this video, appreciate Logitech for our ability to consistently perform and grow our sales and profits. Gaming has been a big contributor to that success and to our growth. We continue to invest in new products and adjacent categories within the gaming space to continue to grow in gaming. We are performing extremely well. That said, gaming is only 1/5 , or about 1/5, of our total portfolio of businesses. We are growing across our entire portfolio. Gaming is super important. We are a portfolio business with so many growth opportunities and such an exciting path ahead in so many different areas.

Wendy Becker
Chairperson of the Board, Logitech

Thank you for that, Bracken, and thank you for another terrific year. That concludes our question and answer webcast in connection with our 2020 annual general meeting. If shareholders have pertinent follow-up questions to the questions and answers addressed in this webcast, please do submit them via email to the company's investor relations group in the next week, including evidence that you are a shareholder, as described in the company's proxy statement, and the company will post responses in its investor relations website. Thank you very much for joining us today, and we hope to be with you in person next year.