Logitech International S A : 2021 Annual General Meeting Invitation, Proxy Statement and Annual Report

2021 Annual General Meeting

Invitation, Proxy Statement and Annual Report

TO OUR SHAREHOLDERS, PARTNERS AND EMPLOYEES

Of course, Fiscal Year 2021 was unprecedented.

As we write this letter, we are more than a year into the pandemic. Our hearts go out to all those most directly hurt by it. It touched almost everyone: through mental health, lost jobs, delayed weddings, separated loved ones and, saddest of all, lost lives. Under these exceptional conditions, we witnessed extraordinary courage and resilience across the world, both from our employees

• who scarcely missed a beat in spite of the pressures thrown at them - and the communities around them. We wish everyone strength as we strive together for a brighter future.

MAKING A BIGGER IMPACT

The pandemic was not the only big, urgent social issue that demanded attention this Fiscal Year 2021. Logitech was also attending to our long-term commitments toward environmental sustainability and social impact.

Our hard work on environmental sustainability had been ongoing for a decade, but our efforts started to bloom publicly during Fiscal Year 2021. This year, we committed to incorporate post-consumer recycled plastic (PCR) at scale in our biggest product portfolio. We intend to eliminate an estimated 7,100 tons of virgin plastic and 11,000 tons of carbon per year by using recycled plastic in 50 million products shipped by the end of 2021. We also became the first consumer electronics company to pledge to provide detailed carbon impact labeling on product packaging across our entire portfolio. Our first products with carbon labeling hit the shelves on Earth Day 2021, empowering consumers to assess our products for carbon impact, just as they would assess food for calorie content.

We're grateful to have been recognized for these efforts, and others like them. Amazon.com labeled our gaming portfolio as Climate Pledge Friendly. We were named to the Dow Jones Sustainability Index Europe, and

Fast Company included us in its annual list of the World's Most Innovative Companies for 2021 with a top 5 ranking in the corporate social responsibility (CSR) category. In Switzerland, Bilanz named us the #1 ranked company for climate consciousness and ranked Bracken the fifth most green CEO. And theFinancial Times ranked Logitech #12 in a list of companies that have reduced greenhouse gas (GHG) emissions. While these milestones are gratifying, they only serve to show how much more work there is to do in this area. We're not slowing down.

In Fiscal Year 2021, we also acted strongly and with purpose in the area of social impact. We are addressing the need for a more diverse, equal and inclusive society with the same approach and energy we are applying to the environment, starting with our workplace. We have a dedicated focus internally and externally, outlined in our seven-point plan to address injustice and work toward a fairer world. It's the right thing to do if we want to be a model for diversity, equality and inclusion. Just as with environmental sustainability, we have an end-to-end,supplier-to-customer approach to improving our supply base, our offerings to customers, our communities, and our own organization.

STRONG FISCAL YEAR 2021 RESULTS

All these actions made for a busy Fiscal Year 2021, coming as they did alongside an unprecedented rhythm of day-to-day business and the pressures of home life under lockdown. We are so proud and grateful for our talented employees who rose to the challenge. The whole Logitech team defied the odds to deliver such strong numbers. Even our most committed investors

and believers were surprised by our results - surprised at the magnitude of growth in general and surprised that we were able to fulfill it. Our strategy is working, our capabilities are robust and growing, and the execution is exemplary.

Our Fiscal Year 2021 net sales gave us an eighth straight year of growth, sixth straight year of near or above double-digit growth, and resulted in another strong year of shareholder returns. Our net sales grew 74% in constant currency to an all-time high of over $5 billion. We broke other records too. Non-GAAP operating income tripled to a record $1.27 billion - nearly as much as our non-GAAP operating income for the past four fiscal years combined. Gross margin was a record 44.8%, and cash flow from operations was a record $1.5 billion.

EXCITING GROWTH OPPORTUNITIES

These outcomes not only changed the scale of our business, they also changed the profile of our brand, as we became the 'got to have it' webcam, mouse, microphone, headset and keyboard brand. We have never been so relevant.

Yet these outcomes didn't show up only because of good maneuvers in Fiscal Year 2021, though we did execute well. They were a result of many years of positioning Logitech against secular growth opportunities that accelerated during the pandemic. We have described them many times before:

• Work from anywhere: The traditional commute to the office has transformed into a new behavior, with people working some days from home or wherever else is convenient to them. This form of hybrid work from anywhere looks to be our future.
• Video everywhere: Communication, at home and from the office, is increasingly video-based, heading in a direction where video will be pervasive.
• Rise of esports: The growth in competitive gaming, known as esports, has been rapid, carrying with it a large, fast-growing, global community of gamers who play, watch and broadcast their play.
• Democratization of content creation: Increasingly people have the tools to design, code, create art, make music, edit video and broadcast at their fingertips at home. These creators are the new studios and media companies.

These trends are keeping all our teams busy, designing and engineering product experiences that tap into them, and then taking those product experiences to market. This is true both of our consumer offerings - for which we are best known - and also of our fast-growing enterprise business, that provides video conferencing equipment and workspace solutions to businesses of all sizes, as well as educational institutions and healthcare providers. This enterprise business was at the heart of much of our Fiscal Year 2021 growth, and will continue to play a key role.

Looking forward, we anticipate ongoing growth in these trends, even post-pandemic, as they continue to evolve. For example, the new world of work will be hybrid. People will work between their home and office, across multiple workspaces. Our mice, keyboards, webcams and video conferencing equipment have never been more relevant, as people and employers kit themselves out to be productive wherever they are, and to communicate over video. We estimate that 2-3 times more people will work more than two days a week at home going forward, reducing the days they spend in the office. In parallel, there is an additional opportunity for Logitech to support the growing remote learning community.

Similarly, gaming is becoming the new playground for more people than ever. It has never been bigger and continues to grow. esports is fast growing into a bigger sport than traditional sports and commands huge audiences. Last fall, the League of Legends Final commanded a live audience of about 110 million people (about the same as the American Super Bowl) and an estimated 1.5 billion people were expected to watch some portion of championships. Every team in the final four, and seven of the final eight representing China, Korea, and Europe, used Logitech products.

Gamers don't just use our products to play and compete; they broadcast, stream, communicate and create too. YouTube claims that gamers viewed over 10 billion hours of live streams on its platform from over 40 million gaming channels in 2020. Twitch, a platform focused on gaming streamers, claims another 2 billion hours and nearly 10 million active streamers. And, beyond gaming, Logitech increasingly sees growth in streaming and creation of all kinds. Anyone in possession of a microphone, webcam and some creative inspiration can command an audience online to share and collaborate.

Logitech underlined that fact this year with our investment in high-profile Super Bowl and GRAMMY ads, kicking off a new brand campaign, called Defy Logic, celebrating people who push boundaries to inspire and change the world by pursuing their passions.

BIG AMBITIONS

This letter gives us an opportunity to reflect on a transformational Fiscal Year 2021 for Logitech. The company is worth more than 18 times its value in 2013 and has grown 1.5 times in value these past twelve months alone. It has doubled in value every 2.5 years before that, since January 1, 2013. We delivered record results and were recognized not just for our innovative products, but also for our progress in pursuing a more equal, sustainable world.

Fiscal Year 2021 was exceptional thanks to underlying strengths that we have developed over decades: our adaptability in the face of change, our strong company values, our impressive capacity for innovation, our capabilities in areas like operations and design, and above all, our team.

Though we will always be a "little mouse company" in spirit, we have big ambitions as we invest in taking advantage of the many growth opportunities before us. We believe you haven't seen anything compared to what we can do ahead: for people in all their diversity, for the planet, for our employees and communities, and for investors. In its fortieth year of existence, Logitech has never had more vitality.

Bracken P. Darrell

President and Chief Executive Officer

Wendy Becker

Chairperson of the Board

Compensation Report for Fiscal Year 2019

2021 Annual General Meeting

Invitation, Proxy Statement and Annual Report

Statement Proxy Invitation, Meeting General Annual 2019

FORWARD-LOOKING INFORMATION

This Invitation, Proxy Statement and Annual Report, including the letter to shareholders, contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on beliefs of our management as of the initial date of making such statements. These forward-looking statements include, among other things, statements related to:

• Our strategy for growth, future revenues, earnings, cash flow, uses of cash and other measures of financial performance, and market position;
• Our business strategy and investment priorities in relation to competitive offerings and evolving consumer demand trends affecting our products and markets, worldwide economic and capital market conditions, fluctuations in currency exchange rates, and current and future general regional economic conditions for fiscal year 2022 and beyond;
• Our commitments toward environmental sustainability and social impact;
• The scope, nature or impact of acquisition, strategic alliance, and divestiture activities and restructuring of our organizational structure;
• Our expectations regarding the success of our strategic acquisitions, including integration of acquired operations, products, technology, internal controls, personnel and management teams;
• Our expectations regarding our effective tax rate, future tax benefits, tax settlements, the adequacy of our provisions for uncertain tax positions;
• Our expectations regarding our potential indemnification obligations, and the outcome of pending or future legal proceedings and tax audits;
• Our business and product plans and development and product innovation and their impact on future operating results and anticipated operating costs for fiscal year 2022 and beyond;
• Opportunities for growth, market opportunities, marketing initiatives and our ability to execute on and take advantage of them;
• Potential tariffs, their effects and our ability to mitigate their effects;
• Capital investments and research and development;
• Our expectations regarding our share repurchase and dividend programs;
• The sufficiency of our cash and cash equivalents, cash generated from operations, and available borrowings under our bank lines of credit to fund capital expenditures and working capital needs;
• The effects of environmental and other laws and regulations in the United States and other countries in which we operate; and
• The impact of the novel coronavirus ("COVID-19") pandemic and any associated economic downturn on our business and future operating and financial performance.

Forward-looking statements also include, among others, those statements including the words "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should," "will" and similar language. These statements reflect our views and assumptions as of the initial date of making such statements. All forward-looking statements involve risks and uncertainties that could cause our actual performance to differ materially from those anticipated in the forward-looking statements depending on a variety of factors. Important information as to these factors can be found in our Annual Report on Form 10-K under the headings of "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Overview," "Critical Accounting Estimates" and "Liquidity and Capital Resources," among others. Factors that might cause or contribute to such differences include, but are not limited to, those discussed under Item 1A Risk Factors, as well as elsewhere in our Annual Report on Form 10-K and in our other filings with the U.S. Securities and Exchange Commission. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the initial date of making such statements. We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances after the initial date of making such statements.