Harmony Home Control Logitech Analyst & Investor Day. Bruce Lancaster 11 March 2015

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1 Harmony Home Control Logitech Analyst & Investor Day Bruce Lancaster 11 March

2 Forward Looking Statements This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation statements regarding: size, growth and opportunity for the advanced remote market and the connected home market, and home automation solution 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 costeffective 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 operating segments, or significant fluctuations in exchange rates. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forwardlooking statements is included in Logitech s periodic filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2014 and our Annual Report on Form 10-K for the fiscal year ended March 31, 2014, available at 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. 2

3 Harmony Two Years Ago Unprofitable. Stale portfolio. Lacked direction. 3

4 Harmony Today Profitable. Revitalized portfolio. Focused on broader market opportunity. 4

5 Advanced Remotes Market in the US Harmony is the Go-To Brand $Millions Value Market Share Other Brands Logitech 95.9% % 89.2% 88.4% 90.1% 89.8% 91.4% 91.5% 90.6% 92.1% 92.8% 91.9% 2 0 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 5 Source: US Market Data, NPD, Ending January 2015

6 Recent Critical Acclaim Harmony Ultimate Home has added support for a wide array of connected home devices, allowing you to control just about every digital device you own right from your smartphone or the remote itself The Logitech Harmony Ultimate Home is the most powerful universal remote you can buy. Harmony Home Control, the best remote for the money. Harmony s system just works, seamlessly tying together just about any device with a single remote a child can use. The app and remote really does give you the best of both worlds. 6 Harmony system hits the trifecta it s easy to set up, capable of controlling all of my audio and video components (and 270,000 others), and is far more reliable than any app-and-dongle combo I tried.

7 Software is the Key to Harmony s Success Going from creating products to creating customizable experiences One touch control simplifies complex actions Crowd-sourced database Gives us insights to design better experiences Moved to mobile Android and ios Launched new Harmony API Ensures interoperability as developers can create experiences that integrate Harmony control 7

8 Going Beyond the TV From home entertainment control to Harmony Home Control Leveraging our software and database assets to extend our reach From creating great remotes to delivering even more amazing experiences LIGHTING BLINDS/SHADES DOOR LOCKS THERMOSTATS 8

9 Harmony brings it together. You bring it to life. 9

10 DIY Connected Home Market is Exploding $1.3B US connected home market today, growing at 40% CAGR to estimated $7.8B in five years Drivers for growth of affordable home automation solutions include: Growing smartphone usage Increasing cloud computing and applications Availability of reliable, low-cost sensors and devices based on common standards Total Number of Smart Homes* (Millions of Homes) Europe North America Source: Berg Insights, December Smart home definition requires that it has a smartphone app or a web portal as a user interface. Devices that only can be controlled with switches, timers, sensors and remote controls are not included.

11 Key Players in Home Control Include 11

12 And Logitech! Over 9 million active users Superior home entertainment control Expertise in connecting millions of devices Robust retail and manufacturing capabilities Broad compatibility with multiple partners, devices and platforms 12

13 Harmony Home Control - Right Time & Place 1 2 Leading consumer brand in home entertainment control Trusted and known for over a decade for simplifying control Market share leader with 9M+ active customers Leader in compatibility Database of 270,000+ devices with up to 1,100 new devices/month Combining Philips hue, Lutron, Nest, Sonos, Honeywell and more 3 Expanding beyond the living room Android and ios Harmony app Control of home entertainment, lights, locks, thermostats and more even when away from home 13

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