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Harmony Home Control Logitech Analyst & Investor Day 11 March 2015 Bruce Lancaster 1

Transcript of Harmony Home Controls21.q4cdn.com/.../2015/4_Harmony...Logitech_AID15.pdfsmartphone or the remote...

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Harmony Home ControlLogitech Analyst & Investor Day

11 March 2015

Bruce Lancaster

Logitech Analyst & Investor Day

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This presentation contains forward-looking statements within the meaning of the U.S. federalsecurities laws, including, without limitation statements regarding: size, growth and opportunity for theadvanced 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 todiffer materially, including without limitation: if our product offerings, marketing activities andinvestment prioritization decisions do not result in the sales, profitability or profitability growth weexpect, or when we expect it; the demand of our customers and our consumers for our products andour 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 ourgrowth opportunities in our new product categories or our growth opportunities are more limited thanwe expect; the effect of pricing, product, marketing and other initiatives by our competitors; if our

Forward Looking Statements

we expect; the effect of pricing, product, marketing and other initiatives by our competitors; if ourproducts and marketing strategies fail to separate our products from competitors’ products; if there is adeterioration of business and economic conditions in one or more of our sales regions or operatingsegments, or significant fluctuations in exchange rates. A detailed discussion of these and other risksand uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in Logitech’s periodic filings with the Securities and ExchangeCommission, 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, availableat www.sec.gov, under the caption Risk Factors and elsewhere. Logitech does not undertake anyobligation to update any forward-looking statements to reflect new information or events orcircumstances occurring after the date of this presentation.

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Harmony Two Years Ago

Unprofitable.

Stale portfolio.

Lacked direction.

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Harmony Today

Profitable.

Revitalized portfolio.

Focused on broader

market opportunity.market opportunity.

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$M

illio

ns

Other Brands

Logitech

Value Market Share

Advanced Remotes Market in the USHarmony is the Go-To Brand

95.9%

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2

4

6

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Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

Source: US Market Data, NPD, Ending January 2015

90.8%

89.2%

88.4% 90.1%

89.8%

91.4%91.5%

90.6%92.1%

92.8%91.9%

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“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.”

Recent Critical Acclaim

“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.”

“Harmony system hits the trifecta — it’s easy to set up, capable of controllingall of my audio and video components (and 270,000 others), and is far morereliable than any app-and-dongle combo I tried.”

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• Going from creating products to creating customizableexperiences

– One touch control simplifies complex actions

• Crowd-sourced database

– Gives us insights to design better experiences

Software is the Key to Harmony’s Success

– Gives us insights to design better experiences

• Moved to mobile

– Android and iOS

• Launched new Harmony API

– Ensures interoperability as developers can create experiencesthat integrate Harmony control

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Going Beyond the TV

● From home entertainmentcontrol to Harmony HomeControl

● Leveraging our software anddatabase assets to extend

LIGHTING

BLINDS/SHADES

database assets to extendour reach

● From creating great remotesto delivering even moreamazing experiences

THERMOSTATS

DOOR LOCKS

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Harmony brings it together.You bring it to life.

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Europe North America

DIY Connected Home Market is Exploding

Total Number of Smart Homes*(Millions of Homes)

● $1.3B US connected homemarket today, growing at 40%CAGR to estimated $7.8B infive years

● Drivers for growth of

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2014 2015 2016 2017 2018 2019

Source: Berg Insights, December 2014

“Smart home” definition requires that it has a smartphone app or a web portal as a user interface. Devices that only can be controlledwith switches, timers, sensors and remote controls are not included.

● Drivers for growth ofaffordable home automationsolutions include:− Growing smartphone usage− Increasing cloud computing and

applications− Availability of reliable, low-cost

sensors and devices based oncommon standards

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Key Players in Home Control Include…

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…And Logitech!

● Over 9 million active users

● Superior home entertainment

control

● Expertise in connecting millions of

devicesdevices

● Robust retail and manufacturing

capabilities

● Broad compatibility with multiple

partners, devices and platforms

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Harmony Home Control - Right Time & Place

Leading consumer brand in home entertainment controlTrusted and known for over a decade for simplifying control

Market share leader with 9M+ active customers

Leader in compatibilityDatabase of 270,000+ devices with up to 1,100 new devices/month

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Database of 270,000+ devices with up to 1,100 new devices/month

Combining Philips hue, Lutron, Nest, Sonos, Honeywell and more

Expanding beyond the living roomAndroid and iOS Harmony app

Control of home entertainment, lights, locks, thermostats and moreeven when away from home

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