2018 Annual General Meeting Invitation, Proxy Statement and Annual Report

Letter to Shareholders

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As we’ve brought in talent from have we all for team, example, Nokia, Microsoft, Nike, ideo, ... over smaller companies and design firms.been Our an seednew teamshave attraction for entrepreneurs from outside. (i) We are pleased reportWe to finishedwe another strong in constant sales+13% grew 2018 Our Fiscal Year year. and profitsdollars) +14% up were in U.S. currency (+16% in non-GAAPalmost terms, four times a level to that of theBy time read this, you will we beFY into well 2013. the next fiscal year. There things could are done so we many better have in - the transition forFY distribution our U.S. of 2018 center, learned have fromWe eachthem of example. and are them helpleveraging to drive our transformation. Rather than going performance the into detailsour FY of 2018 - which can you find in this annual report look to want - we forwardand discuss two fundamental questions are you asking yourselveslikely after our five consecutive years and “what growth:of growing?”, “can keep will we we do?” iflook we like WECAN KEEP GROWING? Growth is optional. not our just not business It’s model; the imperative it’s for all companies. Companies can get without growthaway or for two, a year but in the flat end, or declining disappear. companies eventually Socontinue how do we are doing grow?we to Well, things. several startLet’s with the most important are continually we one: inour product innovating categories, using design. And our formula for design-centered growth has delivered. can see it in our five consecutiveYou years growth of reachingdouble into digits the two past can you years; see it in the reinvigoration our gaming of business, creationour video of collaboration business, and more. And as partthat design-centered of we viewinnovation, of capabilities building design.keep Engineering beyond is hardwarenow just not but increasingly software. Almost a third our engineering of members team in product are nowsoftware development engineers,from up about sixa tenth And years ago. continue we hire software to engineers a fast rate. at TO OUR SHAREHOLDERS TO Bracken Darrell Guerrino De Luca Chairman the of Board President and Chief Executive Officer Growth “big of company” titles, and behaviors levels, (and begins suffocate to bureaucracy) growth innovation. of More are added teams and augment layers or to oversee the slowing growth. Segregation responsibilities of creates deeper expertise but less coordination and increasing political challenges. The soul the of company blow takes The companyafter increasingly blow. focuses internally. The customer is no longerthe center everything. of It can happen the to best companies. And ithappens with good intentions. 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Switzerland, Like lose won’t we our humility or ambition grow. as we But we a very was In closing,FY goodyes, year. 2018 staying close are... focused andbeyond well on FY 2019 customers, to and fightinginnovating be to thesmall stay. to andcompany intend are in our we soul… Thank for confidence you your in Logitech and your support. continued (ii) One theof critical things drive do to growth we isthat primarily don’t we focus on our competitors, whoever good competitors have We might be. they our in all of categories.Of course them of are and aware what we are doing. focusthey But we on the users By instead. for innovating doing and by thatdeeply and thoroughly, for what themand for- knoweven want, what they they - realized yet quite haven’t they but know want we they willwe usually succeed. And that will drive growth. WILL WE LOOKWHAT LIKE? sustainingBeyond growth, the other question want we address to is what kind company will of we bewe as The is simple. as not answer continue grow. to Growth is good. But growth somecan negative have side effects. large why companiesThat’s sooner or later and The fall. usually“hit Fortunethe wall” ... 500 turns half every by years. ten GE of isover the example latest How cana large that least at for company now. falling; they be when Can’t had all the they advantages scale? of recruitthe best, buyother companies, and spread best practices inside their faster? walls BecauseNo. big is generally good It’s bad. for scale, of course, but bad for agility to want don’t and speed. We the scale a big dolove company we (though like behave in manufacturing have we and procurement as as well reach). our market unique formula includesLogitech’s our smallness, the mice like just that created Our us. organization is hierarchical, not vicewith multipleexecutive of layers presidents,senior vice presidents and assistant vice presidents sitting in offices. are trying We flat stay to andflexible, as you easy not fast and That’s fun. Hungry. work. a lot of It takes worth But it’s grow. it. Scaling is one the of most popular words around these Scale days. seen in isolation is often cleara advantage. But scaling a bitter can aftertaste. have Scaling can eat the soul the of company and replace it with another kind growth of and profits,revenues of not - ratherbut titles of andhierarchical politics of layers, and bureaucracy.

Letter to Shareholders 2018 Annual General Meeting Invitation, Proxy Statement

2018 Annual General Meeting Invitation, Proxy Statement and Annual Report July 24, 2018 To our shareholders: You are cordially invited to attend Logitech’s 2018 Annual General Meeting. The meeting will be held on Wednesday, September 5, 2018 at 2:00 p.m. at the SwissTech Convention Center, EPFL, in Lausanne, Switzerland. Enclosed is the Invitation and Proxy Statement for the meeting, which includes an agenda and discussion of the items to be voted on at the meeting, instructions on how you can exercise your voting rights, information concerning Logitech’s compensation of its Board members and executive officers, and other relevant information. Whether or not you plan to attend the Annual General Meeting, your vote is important. Thank you for your continued support of Logitech.

Guerrino De Luca Chairman of the Board

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2018 Annual General Meeting Invitation, Proxy Statement

Guerrino De Luca Chairman of the Board

July 24, 2018 our shareholders: To You are SwissTech cordially the at p.m. 2:00 at invited 2018 5, September to Wednesday, on held be attend will meeting Logitech’s 2018 Annual General Meeting. Switzerland. EPFL, in Lausanne, The Convention Center, Enclosed is the Invitation how on and instructions meeting, the Proxy at on Statement voted be to for items the of the discussion and meeting, agenda which includes an you can exercise your voting rights, information compensation concerning Logitech’s and other relevant information. and of its Board members officers, executive important. is vote your Meeting, General Annual the attend to plan you not or Whether continued Thank you for your support of Logitech. LOGITECH INTERNATIONAL S.A. Invitation to the Annual General Meeting Wednesday, September 5, 2018 2:00 p.m. (registration starts at 1:30 p.m.) SwissTech Convention Center, EPFL – Lausanne, Switzerland ***** AGENDA A. Reports Report on Operations for the fiscal year ended March 31, 2018 B. Proposals 1. Approval of the Annual Report, the consolidated financial statements and the statutory financial statements of Logitech International S.A. for fiscal year 2018 2. Advisory vote to approve executive compensation 3. Appropriation of retained earnings and declaration of dividend 4. Amendment of the Articles of Incorporation regarding the creation of an authorized share capital 5. Amendment of the Articles of Incorporation regarding the convening of shareholder meetings 6. Amendment of the Articles of Incorporation regarding the maximum number of mandates that members of the Board of Directors and Management Team may accept for charitable organizations 7. Release of the Board of Directors and Executive Officers from liability for activities during fiscal year 2018 8. Elections to the Board of Directors This page is intentionally left blank. 8.A. Re-election of Dr. Patrick Aebischer 8.B. Re-election Ms. Wendy Becker 8.C. Re-election of Dr. Edouard Bugnion 8.D. Re-election of Mr. Bracken Darrell 8.E. Re-election of Mr. Guerrino De Luca 8.F. Re-election of Mr. Didier Hirsch 8.G. Re-election of Dr. Neil Hunt 8.H. Re-election of Ms. Neela Montgomery 8.I. Re-election of Mr. Dimitri Panayotopoulos 8.J. Re-election of Dr. Lung Yeh 8.K. Election of Ms. Marjorie Lao 9. Election of the Chairman of the Board 10. Elections to the Compensation Committee 10.A. Re-election of Dr. Edouard Bugnion 10.B. Re-election of Dr. Neil Hunt 10.C. Re-election of Mr. Dimitri Panayotopoulos 10.D. Election of Ms. Wendy Becker 11. Approval of Compensation for the Board of Directors for the 2018 to 2019 Board Year 12. Approval of Compensation for the Group Management Team for fiscal year 2020 13. Re-election of KPMG AG as Logitech’s auditors and ratification of the appointment of KPMG LLP as Logitech’s independent registered public accounting firm for fiscal year 2019 14. Election of Etude Regina Wenger & Sarah Keiser-Wüger as Independent Representative Apples, Switzerland, July 24, 2018 The Board of Directors 2018 Annual General Meeting Invitation, Proxy Statement

***** AGENDA Wednesday, September 5, 2018 Wednesday, S.A. INTERNATIONAL LOGITECH Invitation to the Annual General Meeting Annual to the Invitation 2:00 p.m. (registration starts at 1:30 p.m.) 2:00 p.m. (registration SwissTech Convention Center, EPFL – Lausanne, Switzerland EPFL Convention Center, SwissTech independent registered public accounting firm for fiscal year 2019 Logitech International S.A. for fiscal year 2018 charitable may accept for organizations Team Board of Directors and Management Aebischer Patrick Re-election of Dr. 8.A. Becker Re-election Wendy Ms. 8.B. Edouard Bugnion Re-election of Dr. 8.C. Bracken Darrell Re-election of Mr. 8.D. Guerrino De Luca Re-election of Mr. 8.E. Didier Hirsch Re-election of Mr. 8.F. Neil Hunt Re-election of Dr. 8.G. Re-election Neela of Ms. Montgomery 8.H. 8.I. Dimitri Panayotopoulos Re-election of Mr. Yeh Lung Re-election of Dr. 8.J. Election of Ms. Marjorie Lao 8.K. 10.A. Edouard Bugnion Re-election of Dr. 10.B. Neil Hunt Re-election of Dr. Dimitri Panayotopoulos 10.C. Re-election Mr. of 10.D. Becker of Ms. Wendy Election 13. Re-election of AG KPMG as Logitech’s auditors and ratification of the appointment of KPMG LLP as Logitech’s 14. & Sarah Keiser-Wüger as Independent Representative of Etude Regina Election Wenger Report on Operations Report on Operations fiscal year ended for the March 31, 2018 1. Approval of the Annual Report, the consolidated financial statements and the statutory financial statements of 2. Advisory vote to approve executive compensation 3. Appropriation of retained earnings and declaration of dividend 4. Articles of Incorporation regarding the creation of an authorized capital share Amendment of the 5. Articles of Incorporation regarding the convening shareholder meetings of Amendment of the 6. Amendment of the Articles of Incorporation regarding the maximum number of mandates that members of the 7. from liability for activities during fiscal year 2018 Release of the Board of Directors and Executive Officers 8. Elections to the Board Directors of 9. Election of the Chairman of the Board 10. to the Compensation Elections Committee 11. Year Compensation Approval the Board Directors of for of for the 2018 to 2019 Board 12. for fiscal year 2020 Team Compensation Approval the Group Management of for Apples, Switzerland, July 24, 2018 The Board of Directors

A. Reports B. Proposals Questions and Answers about The Logitech 2018 Annual General Meeting General Information for All Shareholders

WHY AM I RECEIVING This document is designed to comply with both Swiss corporate law and U.S. proxy THIS “INVITATION AND statement rules. Outside of the U.S. and Canada, this Invitation and Proxy PROXY STATEMENT”? Statement will be made available to registered shareholders with certain portions translated into French and German. We made copies of this Invitation and Proxy Statement available to shareholders beginning on July 24, 2018. The Response Coupon is requested on behalf of the Board of Directors of Logitech for use at Logitech’s Annual General Meeting. The meeting will be held on Wednesday, September 5, 2018 at 2:00 p.m. at the SwissTech Convention Center, EPFL, in Lausanne, Switzerland.

WHO IS ENTITLED Shareholders registered in the Share Register of Logitech International S.A. TO VOTE AT THE (including in the sub-register maintained by Logitech’s U.S. transfer agent, MEETING? Computershare) on Thursday, August 30, 2018 have the right to vote. No shareholders will be entered in the Share Register between August 30, 2018 and the day following the meeting. As of June 30, 2018, there were 95,053,514 shares registered and entitled to vote out of a total of 165,573,554 Logitech shares outstanding. The actual number of registered shares that will be entitled to vote at the meeting will vary depending on how many more shares are registered, or deregistered, between June 30, 2018 and August 30, 2018. For information on the criteria for the determination of the U.S. and Canadian “street name” beneficial owners who may vote with respect to the meeting, please refer to “Further Information for U.S. and Canadian “Street Name” Beneficial Owners” below. This page is intentionally left blank. WHO IS A REGISTERED If your shares are registered directly in your name with us in the Share Register of SHAREHOLDER? Logitech International S.A., or in our sub-register maintained by our U.S. transfer agent, Computershare, you are considered a registered shareholder, and this Invitation and Proxy Statement and related materials are being sent or made available to you by Logitech.

5 2018 Annual General Meeting Invitation, Proxy Statement 1 5 If your shares are registered directly in your name with us in the Share Register of Register Share the in us with name your in directly registered are shares your If Logitech International S.A., or in our sub-register maintained by our U.S. transfer agent, Computershare, you are considered a Invitation registered and shareholder, and Proxy this Statement and related available to you by Logitech. materials are being sent or made This document is designed to comply with both Swiss corporate law and U.S. proxy U.S. and law corporate Swiss both with comply to designed is document This statement rules. Outside of Statement will be made available to registered shareholders with certain portions the U.S. and Canada, translated into French and German. made We copies of this Invitation this and Proxy Invitation and Proxy Statement available to shareholders beginning 24, 2018. on July Logitech of Directors of Board the of behalf on requested is Coupon Response The for Center, Convention use SwissTech the at p.m. at 2:00 at 2018 5, Logitech’s September Annual Wednesday, General Meeting. The meeting EPFL, in Lausanne, Switzerland. will be held on Shareholders registered in the Share (including Register in of the Logitech sub-register International Computershare) S.A. maintained on Thursday, by August Logitech’s August 30, 2018 and shareholders will be entered in the Share Register between 30, U.S. 2018 shares 95,053,514 were there transfer 2018, 30, June have of As meeting. the agent, following day the the right to registered vote. and No entitled to at vote to entitled be will that shares vote registered of number actual The outstanding. out of a total of the 165,573,554 meeting Logitech will vary shares depending on how August 30, 2018. deregistered, between June 30, 2018 and many more “street Canadian shares and are U.S. registered, the of or determination the for criteria the on information For name” beneficial owners who may vote with respect to the meeting, please refer to “Further Information for U.S. and Canadian “Street Name” Beneficial Owners” below. WHO IS A REGISTERED A WHO IS WHO IS ENTITLED THE AT VOTE TO MEETING? WHY AM I RECEIVING WHY AND THIS “INVITATION STATEMENT”? PROXY Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General SHAREHOLDER? General Information for All Shareholders for Information General

gvmanager.ch/logitech www.proxyvote.com for – Mark the box under Option under box the Mark – Go to the Internet voting site voting Internet the to Go – If you have requested a Proxy Card, Proxy a requested have you If – RESPONSE COUPON COUPON RESPONSE –

– INTERNET VOTING – Go to the Internet voting site PROXY CARD – PROXY and log in with your 16-digit voting control number printed in 2 You may You not attend the meeting and vote your shares in person at the meeting unless you through either shares become your a hold registered you shareholder If by August meeting. 30, the trustee or nominee obtain that holds a “legal your proxy” shares, 2018 from the broker, at or shares you the vote to right the you giving a non-U.S. or International non-Canadian Logitech at Registrar Share our broker, contacting by shareholder trustee registered or nominee, you may become S.A., c/o a Devigus Shareholder Services, by countries, Birkenstrasse certain in 47, or, instructions registration their following CH-6343 and Switzerland, Rotkreuz, your hold you which through brokerage or bank the through registration requesting shares. If you hold your shares through a nominee, U.S. you may or become Canadian a registered broker, shareholder trustee by contacting or your broker, trustee or nominee, and following their registration instructions. If you do not agenda plan the Representative, beside to boxes Ms. applicable Béatrice attend the marking Ehlers, by the instructions to voting meeting, represent your provide you you shareholders, at registered may for the site appoint voting meeting. Internet the Please the on Independent items for shareholders on shareholders on the U.S. share the register, or on the Response Swiss Coupon Card, as applicable. or Proxy share register or – VOTING INTERNET – REGISTER SHARE SWISS instructions your submit and gvmanager.ch/logitech Procuration” “Grant and item log menu the in use Please with Coupon. your one-time code you once expires it once; valid on only is code Your button. “Send” the on clicking by the Response have submitted instructions your voting or any other As instructions voting and signed the off portal. your change may you portal, the to in signed remain you as long at your discretion. REGISTER SHARE SWISS 3 on the enclosed Response Coupon. Please sign, date and promptly mail your completed Response Coupon to enclosed postage-paid envelope. Ms. Béatrice Ehlers using the appropriate U.S. SHARE REGISTER Materials Proxy of www.proxyvote.com Availability Internet of Notice the on arrow the by marked box the that you received from us. Please follow the Representative, Béatrice Ms. Ehlers, to represent you at the meeting. menus to select the Independent REGISTER SHARE U.S. promptly and date sign, Please on meeting. the mark Proxy the Card box to “Yes” select the Independent the Representative, at you represent to Ehlers, Béatrice Ms. mail your completed Proxy Card to Broadridge using the enclosed postage-paid envelope. Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General A AM NOT IF I REGISTERED CAN I SHAREHOLDER, AT AND VOTE ATTEND THE MEETING? Registered Shareholders Further Information for HOW CAN I VOTE IF I DO ATTEND NOT PLAN TO THE MEETING? in the and in Quartier Gateway number number 7700 your account. Switzerland, EPFL – at at telephone is is ain telephone Lausanne, tates main . 1015 witzerland our United S Logitech’s m Center in S and the how to vote the shares held in how to vote the shares in 94560. office Innovation office orel . Shareholders free copies of these . also may request California executive 1 +1-510-795-8500. 2 B Daniel executive is 111 is +41-(0)21-863-5111 principal States http://ir.logitech.com oulevard, Newark, witzerland Logitech’s B de l’Innovation, de our principal S United A copy of our 2018 Annual Report to Shareholders, this Invitation and Proxy and Shareholders, this Invitation Report to Annual 2018 of our copy A Annual Report on Form 10-K for fiscal year 2018 filed with the Statement and our U.S. Securities and Exchange Commission (the “SEC”) are available on our website at in Switzerland or the United States, at materials at our principal executive offices the addresses and phone numbers above. intend to announce voting results at the meeting press release and issue a We Current Report on Form results on a will also file the the meeting. We promptly after copy of the Form 8-K will be A 2018. September 11, Tuesday, 8-K with the SEC by available on our website at http://ir.logitech.com Shareholders that have not requested registration on our Share Register directly, directly, Register our Share on requested registration have not that Shareholders organization other similar nominee or or trustee through a broker, and hold shares in the registered owners of shares are beneficial registered shareholder, a is that name of a custodian. If you hold your Logitech through shares U.S. or Canadian a trustee or nominee or other similar organization (also called holding in “street broker, name”), which is the typical practice of our shareholders in the U.S. and Canada, the organization holding your account is considered the registered shareholder for purposes of voting at the meeting, and this Invitation and Proxy Statement and have the You being made related materials or available to you by them. are sent organization on right to direct that Logitech a public decisions is company and can only be key made by shareholders. are is important so that your shares plan to attend, your vote Whether or not you represented. public quorum Under Swiss law, meeting. for the There is no requirement requirements for shareholder companies do not have specific quorum meetings, not otherwise provide a quorum requirement. Incorporation for of do Articles and our WHERE CAN I FIND THE VOTING RESULTS OF THE MEETING? HOW CAN I OBTAIN LOGITECH’S PROXY ANNUAL STATEMENT, AND REPORT OTHER REPORTING ANNUAL MATERIALS? WHERE ARE LOGITECH’S PRINCIPAL EXECUTIVE OFFICES? HOW MANY REGISTERED SHARES MUST BE PRESENT OR REPRESENTED TO CONDUCT BUSINESS THE MEETING? AT WHY IS IT IMPORTANT IS WHY VOTE? FOR ME TO WHO IS A BENEFICIAL A WHO IS OWNER WITH SHARES THE REGISTERED IN CUSTODIAN, A NAME OF OR “STREET NAME” OWNER? Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement

– INTERNET VOTING – Go to the Internet voting site PROXY CARD – PROXY 3 and log in with your 16-digit voting control number printed in 2 If you do not agenda plan the Representative, beside to boxes Ms. applicable Béatrice attend the marking Ehlers, by the instructions to voting meeting, represent your provide you you shareholders, at registered may for the site appoint voting meeting. Internet the Please the on Independent items for shareholders on the Swiss share register or promptly and date sign, Please on meeting. the mark Proxy the Card box to “Yes” select the Independent the Representative, at you represent to Ehlers, Béatrice Ms. mail your completed Proxy Card to Broadridge using the enclosed postage-paid envelope. You may You not attend the meeting and vote your shares in person at the meeting unless you through either shares become your a hold registered you shareholder If by August meeting. 30, the trustee or nominee obtain that holds a “legal your proxy” shares, 2018 from the broker, at or shares you the vote to right the you giving a non-U.S. or International non-Canadian Logitech at Registrar Share our broker, contacting by shareholder trustee registered or nominee, you may become S.A., c/o a Devigus Shareholder Services, by countries, Birkenstrasse certain in 47, or, instructions registration their following CH-6343 and Switzerland, Rotkreuz, your hold you which through brokerage or bank the through registration requesting shares. If you hold your shares through a nominee, U.S. you may or become Canadian a registered broker, shareholder trustee by contacting or your broker, trustee or nominee, and following their registration instructions. shareholders on the U.S. share register, or on the Response Coupon Card, as applicable. or Proxy – VOTING INTERNET – REGISTER SHARE SWISS 3 on the enclosed Response Coupon. Please sign, date and promptly mail your completed Response Coupon to enclosed postage-paid envelope. Ms. Béatrice Ehlers using the appropriate U.S. SHARE REGISTER Materials Proxy of www.proxyvote.com Availability Internet of Notice the on arrow the by marked box the that you received from us. Please follow the Representative, Béatrice Ms. Ehlers, to represent you at the meeting. menus to select the Independent REGISTER SHARE U.S. Coupon. Please use the menu item “Grant Procuration” and submit your instructions your submit and gvmanager.ch/logitech Procuration” “Grant and item log menu the in use Please with Coupon. your one-time code you once expires it once; valid on only is code Your button. “Send” the on clicking by the Response have submitted instructions your voting or any other As instructions voting and signed the off portal. your change may you portal, the to in signed remain you as long at your discretion. REGISTER SHARE SWISS

HOW CAN I VOTE IF I DO ATTEND NOT PLAN TO THE MEETING? Further Information for Registered Shareholders Further Information for IF I AM NOT A AM NOT IF I REGISTERED CAN I SHAREHOLDER, AT AND VOTE ATTEND THE MEETING? Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General

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Quartier in Gateway number number 7700 your account. Switzerland, EPFL – at at telephone is is ain telephone Lausanne, tates main . 1015 witzerland our United S Logitech’s m Center in S and the how to vote the shares held in how to vote the shares in 94560. office Innovation office orel . Shareholders free copies of these . also may request California executive 1 +1-510-795-8500. B Daniel executive is 111 is +41-(0)21-863-5111 principal States http://ir.logitech.com oulevard, Newark, witzerland Logitech’s de l’Innovation, de our principal B S United A copy of our 2018 Annual Report to Shareholders, this Invitation and Proxy and Shareholders, this Invitation Report to Annual 2018 of our copy A Annual Report on Form 10-K for fiscal year 2018 filed with the Statement and our U.S. Securities and Exchange Commission (the “SEC”) are available on our website at in Switzerland or the United States, at materials at our principal executive offices the addresses and phone numbers above. intend to announce voting results at the meeting press release and issue a We Current Report on Form results on a will also file the the meeting. We promptly after copy of the Form 8-K will be A 2018. September 11, Tuesday, 8-K with the SEC by available on our website at http://ir.logitech.com Shareholders that have not requested registration on our Share Register directly, directly, Register our Share on requested registration have not that Shareholders organization other similar nominee or or trustee through a broker, and hold shares in the registered owners of shares are beneficial registered shareholder, a is that name of a custodian. If you hold your Logitech through shares U.S. or Canadian a trustee or nominee or other similar organization (also called holding in “street broker, name”), which is the typical practice of our shareholders in the U.S. and Canada, the organization holding your account is considered the registered shareholder for purposes of voting at the meeting, and this Invitation and Proxy Statement and have the You being made related materials or available to you by them. are sent organization on right to direct that Logitech a public decisions is company and can only be key made by shareholders. are is important so that your shares plan to attend, your vote Whether or not you represented. public quorum Under Swiss law, meeting. for the There is no requirement requirements for shareholder companies do not have specific quorum meetings, not otherwise provide a quorum requirement. Incorporation for of do Articles and our Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General BENEFICIAL A WHO IS OWNER WITH SHARES THE REGISTERED IN CUSTODIAN, A NAME OF OR “STREET NAME” OWNER? IT IMPORTANT IS WHY VOTE? FOR ME TO HOW MANY REGISTERED SHARES MUST BE PRESENT OR REPRESENTED TO CONDUCT BUSINESS THE MEETING? AT WHERE ARE LOGITECH’S PRINCIPAL EXECUTIVE OFFICES? HOW CAN I OBTAIN LOGITECH’S PROXY ANNUAL STATEMENT, AND REPORT OTHER REPORTING ANNUAL MATERIALS? WHERE CAN I FIND THE VOTING RESULTS OF THE MEETING? and log in. gvmanager.ch/ ). For shareholders on If you are a registered – Go to the Internet voting site

gvmanager.ch/logitech If you request a new Proxy Card and Card Proxy new a request you If [email protected] you may attend the meeting and vote in person. in vote and meeting the attend may you 4 , if you voted by Internet, or by requesting and requesting by or Internet, by voted you if , www.proxyvote.com , or by requesting and submitting a new Response Coupon from our Swiss our from Coupon Response new a submitting and requesting by or , If you have any questions or need assistance in voting your shares, please call us at +1-510-713-4220 or e-mail us at [email protected]. You may change You your vote by Internet or by mail August through 30, 2018. You requesting may also by change vote your your vote revoke by may attending you the meeting register, and voting share in Swiss person. the For on shareholders a new one-time code and providing new logitech voting instructions at Share Register +41-41-798-48-33 or by e-mail at at the U.S. Devigus share automatically register, not you will meeting at instructions the may at Shareholder attendance revoke Your your Card. Proxy vote new a by submitting Services providing new voting (by revoke your vote or Response Coupon or Proxy Card unless you telephone vote again at be instructions voting prior your that writing in request specifically or meeting the at revoked. SWISS SHARE REGISTER – INTERNET VOTING After – you receive the new one-time code, go to the Internet voting site Please use the menu item “Grant Procuration”. Follow the directions on the site person. in vote to and complete meeting and the submit attend your new may instructions you August until or Thursday, 30, 2018, Time), European (Central 23:59 SWISS SHARE REGISTER – RESPONSE Response new COUPON the complete may you again, – vote to wish and Coupon If Response you request a new Coupon and return it to us August by 30, 2018, or you may attend the meeting and vote in person. U.S. SHARE REGISTER – INTERNET VOTING Materials Proxy of in printed number control voting 16-digit Availability your with in log and Internet www.proxyvote.com of Notice the on arrow the by instructions marked new box your the submit to menus the follow Please us. from received you that you or Time), Daylight Eastern (U.S. p.m. 11:59 2018, 30, August Thursday, until may attend the meeting and vote in person. – CARD PROXY – REGISTER SHARE U.S. wish to vote or 2018, again, 30, August you by Broadridge may complete the new Proxy Card and return voting specific it SWISS give to to SHARE have you REGISTER site, voting – Internet the INTERNET using vote VOTING and shareholder – If you are a registered instructions for all agenda items before instructions. you can submit your SWISS SHARE REGISTER – RESPONSE COUPON – shareholder and sign and return a Response Coupon without giving specific voting specific giving without Coupon Response a return and sign and shareholder instructions for some or all agenda items, you thereby Independent give instructions to Representative the to recommendations of the Board of Directors for such agenda items as well as for vote your new and shares amended proposals that could be formulated during in the course of the accordance meeting. with the U.S. SHARE REGISTER – shareholder and vote using the Internet INTERNET voting site without giving specific voting VOTING – instructions If for some you or all agenda are items, you a thereby Independent give instructions registered to Representative the to recommendations of the Board of Directors for such agenda items as well as for vote your new and shares amended proposals that could be formulated during in the course of the accordance meeting. with the U.S. SHARE REGISTER – CARD PROXY – If you are a registered shareholder and sign and return a Proxy Card without giving specific voting instructions for some or all agenda items, Representative to vote you your shares in accordance with the recommendations thereby of give instructions to the Board of the Directors for such Independent agenda items as well as for new and amended proposals that could be formulated during the course of the meeting. CAN I CHANGE MY VOTE MY CAN I CHANGE VOTED? AFTER I HAVE IF I HAPPENS WHAT DO NOT GIVE SPECIFIC VOTING INSTRUCTIONS? WHO CAN I CONTACT IF WHO CAN I CONTACT QUESTIONS? I HAVE Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General PROXY, BY IF I VOTE PROXY, IF I VOTE BY – Go to the Internet voting site voting Internet the to Go – – Go to the Internet voting site – If you have requested a Proxy Card, Proxy a requested have you If – INTERNET VOTING INTERNET – INTERNET VOTING – Mark the box under Option under box the Mark COUPON – – RESPONSE PROXY CARD – PROXY and log in with your 16-digit voting control number printed in 3 4 www.gvmanager.ch/logitech for shareholders on the Swiss share for shareholders on the U.S. share register, or on for shareholders on the U.S. share register, www.proxyvote.com

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement and log in. gvmanager.ch/ ). For shareholders on If you are a registered – Go to the Internet voting site

gvmanager.ch/logitech If you request a new Proxy Card and Card Proxy new a request you If [email protected] you may attend the meeting and vote in person. in vote and meeting the attend may you 5 4 , if you voted by Internet, or by requesting and requesting by or Internet, by voted you if , www.proxyvote.com , or by requesting and submitting a new Response Coupon from our Swiss our from Coupon Response new a submitting and requesting by or , If you have any questions or need assistance in voting your shares, please call us at +1-510-713-4220 or e-mail us at [email protected]. shareholder and vote using the Internet voting site, you have to give specific voting specific SWISS give to SHARE have you REGISTER site, voting – Internet the INTERNET using vote VOTING and shareholder – If you are a registered instructions for all agenda items before instructions. you can submit your voting SWISS specific SHARE giving REGISTER – without RESPONSE Coupon COUPON Response – a return and sign and shareholder instructions for some or all agenda items, you thereby Independent give instructions to Representative the to recommendations of the Board of Directors for such agenda items as well as for vote your new and shares amended proposals that could be formulated during in the course of the accordance meeting. with the U.S. SHARE REGISTER – shareholder and vote using the Internet INTERNET voting site without giving specific voting VOTING – instructions If for some you or all agenda are items, you a thereby Independent give instructions registered to Representative the to recommendations of the Board of Directors for such agenda items as well as for vote your new and shares amended proposals that could be formulated during in the course of the accordance meeting. with the U.S. SHARE REGISTER – CARD PROXY – If you are a registered shareholder and sign and return a Proxy Card without giving specific voting instructions for some or all agenda items, Representative to vote you your shares in accordance with the recommendations thereby of give instructions to the Board of the Directors for such Independent agenda items as well as for new and amended proposals that could be formulated during the course of the meeting. You may change You your vote by Internet or by mail August through 30, 2018. You requesting may also by change vote your your vote revoke by may attending you the meeting register, and voting share in Swiss person. the For on shareholders a new one-time code and providing new voting instructions at logitech Share Register +41-41-798-48-33 or by e-mail at at Devigus Shareholder Services (by telephone at the box marked by the arrow on the Notice of Internet Availability of Proxy Materials Proxy of in printed number control voting 16-digit Availability your with in log and Internet www.proxyvote.com of Notice the on arrow the by instructions marked new box your the submit to menus the follow Please us. from received you that you or Time), Daylight Eastern (U.S. p.m. 11:59 2018, 30, August Thursday, until may attend the meeting and vote in person. – CARD PROXY – REGISTER SHARE U.S. the U.S. share automatically register, not you will meeting at instructions the may at attendance revoke Your your Card. Proxy vote new a by submitting providing new voting revoke your vote or Response Coupon or Proxy Card unless you vote again at be instructions voting prior your that writing in request specifically or meeting the revoked. SWISS SHARE REGISTER – INTERNET VOTING After – you receive the new one-time code, go to the Internet voting site wish to vote or 2018, again, 30, August you by Broadridge may complete the new Proxy Card and return it to Please use the menu item “Grant Procuration”. Follow the directions on the site person. in vote to and complete meeting and the submit attend your new may instructions you August until or Thursday, 30, 2018, Time), European (Central 23:59 SWISS SHARE REGISTER – RESPONSE Response new COUPON the complete may you again, – vote to wish and Coupon If Response you request a new Coupon and return it to us August by 30, 2018, or you may attend the meeting and vote in person. U.S. SHARE REGISTER – INTERNET VOTING WHAT HAPPENS IF I HAPPENS WHAT DO NOT GIVE SPECIFIC VOTING INSTRUCTIONS? CAN I CHANGE MY VOTE MY CAN I CHANGE VOTED? AFTER I HAVE WHO CAN I CONTACT IF WHO CAN I CONTACT QUESTIONS? I HAVE IF I VOTE BY PROXY, IF I VOTE BY IF I VOTE BY PROXY, BY IF I VOTE Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General – Go to the Internet voting site voting Internet the to Go – – Go to the Internet voting site – If you have requested a Proxy Card, Proxy a requested have you If – INTERNET VOTING INTERNET – INTERNET VOTING – Mark the box under Option under box the Mark COUPON – – RESPONSE PROXY CARD – PROXY and log in with your 16-digit voting control number printed in 3 www.gvmanager.ch/logitech for shareholders on the Swiss share for shareholders on the U.S. share register, or on for shareholders on the U.S. share register, www.proxyvote.com

forward it to your representative. Yes. Yes. If you would like (for Coupon Response the someone on 2 Option mark other please meeting, the at than you represent the Independent Representative to shareholders on the Swiss share register) if or, you requested a Proxy Card (for shareholders on the U.S. share register), mark authorize the person you name on the the reverse side of the box Proxy Card. On either on the Proxy Card the Response Coupon or the to Proxy Card, please provide the name and address and signed completed, the return Please you. represent to want you person the of dated Response Coupon to Logitech or August enclosed 30, postage-paid 2018. envelope will We by send an admission Proxy Card to Broadridge, using card for the meeting to your representative. If the the name and address instructions you provide are not Logitech clear, will send the admission card to you, and you must If you requested and received an admission card to attend the meeting, you can also authorize someone other than the Independent Representative to represent you at the meeting on the admission card completed and provide admission that signed, card dated and to instructions. your representative, together with your voting If you wish to attend the meeting, you will need to obtain an admission You card. may order your shareholders, admission card on register or the Internet the voting Response Coupon or site Proxy Card, as for applicable, admission card for the and meeting. If an admission card is we not received by you prior registered will send you an to the meeting and you are a registered shareholder as August of 30, 2018, you may attend the meeting proof of identification by presenting at the meeting. REGISTER SHARE SWISS valid only is code gvmanager.ch/logitech Your and Card”. Admission log “Order item menu in the use with Please Coupon. your one-time the on clicking by code card admission an ordered have you as on soon as expires it once; the Response the portal. “Send” button or submitted other instructions and any signed off REGISTER SHARE SWISS 1 on the enclosed Response Coupon. Please send the completed, dated Response signed Coupon to and Logitech using the enclosed postage-paid envelope August 30, 2018. Thursday, by U.S. SHARE REGISTER – Materials Proxy of www.proxyvote.com Availability Internet of Notice the on arrow the by marked box the that you received from us. personally attend the meeting. Please follow the menus to indicate that you REGISTER SHARE U.S. will mark the box on “Yes” the Proxy Card to indicate that you will personally attend the meeting. Please sign, date and promptly mail your completed Proxy Card to Broadridge using the enclosed postage-paid envelope by August Thursday, 30, 2018. Logitech does not block the transfer of shares before the meeting. However, if you if However, meeting. the before shares of transfer the block not does Logitech sell your Logitech shares before the meeting and Logitech’s Share Registrar is person Any counted. be not will shares those with votes your sale, the of notified who purchases shares after the Share August Register 30, closes on Thursday, 2018 will not be able to register them until the day after the meeting and so will not be able vote the shares the meeting. to at CAN I SELL MY SHARES MY CAN I SELL BEFORE THE MEETING VOTED? IF I HAVE Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General THE ATTEND I HOW CAN MEETING? ANOTHER CAN I HAVE PERSON REPRESENT THE MEETING? AT ME 6 on any Proposals will not be considered votes cast on the Proposal. You may revoke your proxy and change your vote at any time before the final vote final the before time any at vote your change and proxy your revoke may You telephone by or Internet the on date later a on again vote may You meeting. the at be will meeting the to prior submitted proxy telephone or Internet latest your (only counted), or by signing and returning a new proxy card with attending the meeting and voting in person a if you have a “legal proxy” that allows later date, or by you to attend the at again vote meeting you unless proxy your revoke and automatically not will Meeting General vote. However, your attendance at the Annual the meeting or specifically request in writing that your prior proxy be revoked. If you are a beneficial owner of shares held in “street name” and you wish to vote vote to wish you and name” “street in held shares of owner beneficial a are you If that organization the from proxy valid a obtain must you meeting, the at person in holds your shares. proxy by vote may You proxy. by vote may you person, in vote to wish not do you If in provided instructions the following by telephone by or mail by Internet, the over Proxy Card. the Notice or on the If you are a beneficial owner of shares held in “street name” in the United States voting specific with nominee or trustee broker, your provide not do and Canada or instructions, then matters routine on under vote generally may nominee or the trustee broker, your exchanges, rules of various national shares your holds that organization the If matters. non-routine on vote cannot but and non-routine a on shares regional your vote to how securities on you from instructions receive not does matter, your shares will not be voted on such matter and will not be considered votes cast on the applicable instructions to the Proposal. organization that holds We your shares by encourage carefully following the you instructions to provided in provide the voting Notice. We believe the considered following Proposals will non-routine: be of declaration and earnings retained of (Appropriation 3 Proposal compensation), Proposal 2 dividend), (Advisory Proposal 4 (Amendment of Articles the of Incorporation regarding vote the of Articles the of (Amendment 5 Proposal capital), share authorized an of creation to approve Incorporation executive regarding the convening (Amendment of of the Articles of shareholder Incorporation regarding the meetings), maximum number of Proposal mandates that members 6 of the Board Directors of of Board Directors the of and (Release Management 7 may Team Proposal organizations), charitable for accept Proposal 2018), year fiscal during activities for liability from Officers Executive and 8 (Elections to the Board of Directors), Proposal Proposal 9 10 (Elections to (Election the Compensation Committee), of Proposal (Approval 11 the Chairman), fiscal for of Compensation Team for Management Group the the Board for Compensation of of Directors (Approval for 12 Proposal the 2018 to 2019 Board Year), year 2020), Proposal 14 (Election of the Independent Representative). All other Proposals involve Any matters “broker that we believe will be considered routine. non-votes” If you hold your shares through a U.S. or Canadian bank or brokerage or custodian, other you have until 11:59 pm (U.S. Eastern Daylight August 30, 2018 deliver to your voting instructions. Time) on Thursday,

CAN I CHANGE AFTER VOTE MY VOTED? I HAVE Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General U.S. OR A AM IF I HAPPENS IF I WHAT DO NOT GIVE SPECIFIC VOTING INSTRUCTIONS? IS THE DEADLINE WHAT FOR DELIVERING MY VOTING INSTRUCTIONS? CANADIAN “STREET CANADIAN “STREET NAME” BENEFICIAL DO OWNER, HOW I VOTE? as far before August 30, 2018 as possible. August as far before 5 6 View our proxy and materials for the meeting on the Internet; View send materials to you electronically Instruct us to our future proxy email. by

• • For organization nominee purposes or trustee of broker, U.S. Canadian or or U.S. a Canadian through shares beneficial holding shareholder voting, shareholders on July 12, 2018 may direct the organization on how to vote. Logitech has made and trustees brokers, Canadian and U.S. to company service a with share arrangements of reconciliation a provide to company service that for organizations nominee 12, July between owners beneficial name” “street Canadian and U.S. of positions date practicable last the is determined Logitech which 2018, 24, August and 2018 to intended are arrangements These reconciliation. a such for meeting the before result in the following adjustments: If a U.S. or Canadian “street name” beneficial August before shares their sells subsequently but votes 2018 12, July of as owner beneficial name” “street Canadian or U.S. A cancelled. be will votes their 2018, 24, decreases or increases subsequently and voted has that 2018 12, July of as owner have will 2018 24, August of as owner beneficial a remains but shareholdings their their votes August increased 24, or decreased to reflect their shareholdings as of 2018. U.S. a through 2018 12, July after name” “street in shares Logitech acquire you If provide or meeting the at vote to wish and nominee, or trustee broker, Canadian or may You shareholder. registered a become must you proxy, by instructions voting become a registered shareholder by contacting your trustee broker, or nominee, and following their registration instructions. In order to allow registration, for proxy materials to be sent adequate or made available to you, and for time your for voting instructions to be returned to registration process us before the meeting, please begin the We We have provided access to our proxy materials over forwarding the are Internet owners nominees holding their to shares or in “street beneficial name” trustees through a U.S. or brokers, Canadian broker, such Accordingly, nominee. or trustee beneficial such to “Notice”) (the Materials Proxy of Availability Internet of Notice a proxy the of set All printed owners. such a shareholders will receive have to the ability request to access or the Notice proxy materials the in to referred website a on owners beneficial addition, materials. In Instructions on Notice. how to the access the on proxy materials found over the be Internet or may copy printed a request to holding their trustee shares or in street name through a U.S. or Canadian broker, nominee may request to electronically by email on an ongoing basis. receive proxy materials in printed form by mail or The Notice will provide you with instructions regarding how to: Choosing to receive your future proxy materials by email will save us the cost of printing and mailing documents to you and will reduce the impact of our proxy future receive to choose you annual If environment. the on meetings shareholders’ containing instructions with year next email an receive will you email, by materials receive to election Your site. voting proxy the to link a and materials those to link a until you terminate it. proxy materials by email will remain in effect ONE-PAGE NOTICE IN ONE-PAGE REGARDING THE MAIL THE INTERNET OF AVAILABILITY MATERIALS PROXY SET FULL A INSTEAD OF MATERIALS? OF PROXY WHO MAY PROVIDE WHO MAY HOW CAN I GET ACCESS ELECTRONIC THE PROXY TO MATERIALS? WHY DID I RECEIVE A DID I RECEIVE WHY Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General VOTING INSTRUCTIONS FOR THE MEETING? Further Information for U.S. or Canadian “Street Name” Beneficial Owners Owners Beneficial “Street Name” or Canadian for U.S. Information Further

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 7 6 on any Proposals will not be considered votes cast on the Proposal. If you hold your shares through a U.S. or Canadian bank or brokerage or custodian, other you have until 11:59 pm (U.S. Eastern Daylight August 30, 2018 deliver to your voting instructions. Time) on Thursday, vote final the before time any at vote your change and proxy your revoke may You telephone by or Internet the on date later a on again vote may You meeting. the at be will meeting the to prior submitted proxy telephone or Internet latest your (only counted), or by signing and returning a new proxy card with attending the meeting and voting in person a if you have a “legal proxy” that allows later date, or by you to attend the at again vote meeting you unless proxy your revoke and automatically not will Meeting General vote. However, your attendance at the Annual the meeting or specifically request in writing that your prior proxy be revoked. If you are a beneficial owner of shares held in “street name” in the United States voting specific with nominee or trustee broker, your provide not do and Canada or instructions, then matters routine on under vote generally may nominee or the trustee broker, your exchanges, rules of various national shares your holds that organization the If matters. non-routine on vote cannot but and non-routine a on shares regional your vote to how securities on you from instructions receive not does matter, your shares will not be voted on such matter and will not be considered votes cast on the applicable instructions to the Proposal. organization that holds We your shares by encourage carefully following the you instructions to provided in provide the voting Notice. We believe the considered following Proposals will non-routine: be of declaration and earnings retained of (Appropriation 3 Proposal compensation), Proposal 2 dividend), (Advisory Proposal 4 (Amendment of Articles the of Incorporation regarding vote the of Articles the of (Amendment 5 Proposal capital), share authorized an of creation to approve Incorporation executive regarding the convening (Amendment of of the Articles of shareholder Incorporation regarding the meetings), maximum number of Proposal mandates that members 6 of the Board Directors of of Board Directors the of and (Release Management 7 may Team Proposal organizations), charitable for accept Proposal 2018), year fiscal during activities for liability from Officers Executive and 8 (Elections to the Board of Directors), Proposal Proposal 9 10 (Elections to (Election the Compensation Committee), of Proposal (Approval 11 the Chairman), fiscal for of Compensation Team for Management Group the the Board for Compensation of of Directors (Approval for 12 Proposal the 2018 to 2019 Board Year), year 2020), Proposal 14 (Election of the Independent Representative). All other Proposals involve Any matters “broker that we believe will be considered routine. non-votes” If you are a beneficial owner of shares held in “street name” and you wish to vote vote to wish you and name” “street in held shares of owner beneficial a are you If that organization the from proxy valid a obtain must you meeting, the at person in holds your shares. proxy by vote may You proxy. by vote may you person, in vote to wish not do you If in provided instructions the following by telephone by or mail by Internet, the over Proxy Card. the Notice or on the

CAN I CHANGE AFTER VOTE MY VOTED? I HAVE WHAT IS THE DEADLINE WHAT FOR DELIVERING MY VOTING INSTRUCTIONS? WHAT HAPPENS IF I WHAT DO NOT GIVE SPECIFIC VOTING INSTRUCTIONS? IF I AM A U.S. OR U.S. OR A AM IF I Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General CANADIAN “STREET CANADIAN “STREET NAME” BENEFICIAL DO OWNER, HOW I VOTE? as far before August 30, 2018 as possible. August as far before 5 View our proxy and materials for the meeting on the Internet; View send materials to you electronically Instruct us to our future proxy email. by

• • For organization nominee purposes or trustee of broker, U.S. Canadian or or U.S. a Canadian through shares beneficial holding shareholder voting, shareholders on July 12, 2018 may direct the organization on how to vote. Logitech has made and trustees brokers, Canadian and U.S. to company service a with share arrangements of reconciliation a provide to company service that for organizations nominee 12, July between owners beneficial name” “street Canadian and U.S. of positions date practicable last the is determined Logitech which 2018, 24, August and 2018 to intended are arrangements These reconciliation. a such for meeting the before result in the following adjustments: If a U.S. or Canadian “street name” beneficial August before shares their sells subsequently but votes 2018 12, July of as owner beneficial name” “street Canadian or U.S. A cancelled. be will votes their 2018, 24, decreases or increases subsequently and voted has that 2018 12, July of as owner have will 2018 24, August of as owner beneficial a remains but shareholdings their their votes August increased 24, or decreased to reflect their shareholdings as of 2018. U.S. a through 2018 12, July after name” “street in shares Logitech acquire you If provide or meeting the at vote to wish and nominee, or trustee broker, Canadian or may You shareholder. registered a become must you proxy, by instructions voting become a registered shareholder by contacting your trustee broker, or nominee, and following their registration instructions. In order to allow registration, for proxy materials to be sent adequate or made available to you, and for time your for voting instructions to be returned to registration process us before the meeting, please begin the We We have provided access to our proxy materials over forwarding the are Internet owners nominees holding their to shares or in “street beneficial name” trustees through a U.S. or brokers, Canadian broker, such Accordingly, nominee. or trustee beneficial such to “Notice”) (the Materials Proxy of Availability Internet of Notice a proxy the of set All printed owners. such a shareholders will receive have to the ability request to access or the Notice proxy materials the in to referred website a on owners beneficial addition, materials. In Instructions on Notice. how to the access the on proxy materials found over the be Internet or may copy printed a request to holding their trustee shares or in street name through a U.S. or Canadian broker, nominee may request to electronically by email on an ongoing basis. receive proxy materials in printed form by mail or The Notice will provide you with instructions regarding how to: Choosing to receive your future proxy materials by email will save us the cost of printing and mailing documents to you and will reduce the impact of our proxy future receive to choose you annual If environment. the on meetings shareholders’ containing instructions with year next email an receive will you email, by materials receive to election Your site. voting proxy the to link a and materials those to link a until you terminate it. proxy materials by email will remain in effect ONE-PAGE NOTICE IN ONE-PAGE REGARDING THE MAIL THE INTERNET OF AVAILABILITY MATERIALS PROXY SET FULL A INSTEAD OF MATERIALS? OF PROXY Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General A DID I RECEIVE WHY HOW CAN I GET ACCESS ELECTRONIC THE PROXY TO MATERIALS? PROVIDE WHO MAY VOTING INSTRUCTIONS FOR THE MEETING? Further Information for U.S. or Canadian “Street Name” Beneficial Owners Owners Beneficial “Street Name” or Canadian for U.S. Information Further If you are a registered shareholder and sign and return and sign and shareholder registered a are you If

If you are a registered shareholder and vote using the If you are a registered shareholder and vote using the

8 If you are a registered shareholder and sign and return a Proxy a return and sign and shareholder registered a are you If

INTERNET VOTING – Internet voting site, you have to give specific voting instructions to all agenda items before you can your instructions. submit – COUPON RESPONSE a Response Coupon without giving specific voting instructions for some or all agenda items, you thereby give instructions to the Independent Representative to vote your shares in accordance with that proposals the amended and new recommendations for as well of as items agenda the such for Directors Board of could be formulated during the course of the meeting. INTERNET VOTING – Internet voting site without giving specific agenda items, you thereby give instructions voting to the Independent Representative instructions for some or all to vote your shares in accordance with that proposals the amended and new recommendations for as well of as items agenda the such for Directors Board of could be formulated during the course of the meeting. – CARD PROXY you items, agenda all or some for instructions voting specific giving without Card shares your vote to Representative Independent the to instructions give thereby formulated be could that in proposals accordance amended and with new the for as recommendations well as of items the agenda Board of Directors for such during the course of the meeting. nominees for the expenses of doing so in accordance with certain U.S. statutory fee schedules. SWISS SHARE REGISTER SWISS SHARE U.S. SHARE REGISTER Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General Other Meeting Information Other Meeting Proposals There are no other matters that the Board intends to present, or has reason to believe others will present, Annual at the General Meeting. shareholder: If you are a registered properly are matters other if Canada, or States United the in name” “street in held shares of owner beneficial a are you If or card instruction voting a on instructions voting discretionary provided have you and meeting the at voting for presented through the Internet or other permitted voting mechanisms or have not provided voting instructions, your shares will be voted in accordance with the recommendations of Directors at the meeting of the Board on such matters. Proxy Solicitation additional without employees, other and officers directors, our of Certain firm. solicitation proxy a retain to expect not do We the with connection in otherwise or e-mail telephone, by writing, in or personally shareholders contact may compensation, hold who nominees and brokers that request to required are brokers we States, such United reimburse the In must meeting. the we at and made be shares, to proposals the of owners beneficial the to material proxy our furnish names their in shares and . If any If . [email protected] . Other shareholders who have multiple accounts in their in accounts multiple have who shareholders Other . 7 8 shareholders in your household wish to receive a separate proxy statement and annual Newark, Boulevard, Gateway 7700 report Relations, Investor to in write or +1-510-713-4220 the future, they California 94560. They may also send an email to our may investor relations group at call our [email protected] investor relations group names or at who share an or calling by reports annual and statements proxy address multiple of mailings discontinue with other stockholders can authorize writing to investor relations. us to Your Your broker, trustee or instructions for you to use trustee in or directing nominee the how broker, to vote nominee should have your shares. If you did not receive such instructions you enclosed must contact your bank or or brokerage for their voting instructions. provided voting Banks and brokerages typically set deadlines for receiving instructions from their to two typically is deadline this Canada, and U.S. the of Outside holders. account three days before the deadline of This the company holding the general meeting. is so that the custodians can collect the voting instructions and pass them on to the company holding the meeting. If you hold Logitech shares through a bank or brokerage or bank your with check please Canada, or U.S. the outside brokerage far as them to instructions voting your submit and deadline voting specific their for before that deadline as possible. We We have adopted a procedure approved by the SEC shareholders called in the United States. Under this procedure, shareholders who “householding” have for report the annual same and address and statement last proxy name our and of do copy not participate one in only electronic receive delivery will of materials proxy unless one or more of these postage and shareholders costs notifies printing us our that reduces they procedure wish This to copies. continue individual receiving fees. Each U.S. shareholder who participates in householding will continue to be receive able to access or proxy card. a separate If you wish to receive a separate proxy statement and annual by report at Broadridge, this time, agent, mailing our contacting by copy additional the request please at e-mail by or +1-866-540-7095 at telephone Bank or Brokerage as Custodian Bank or Brokerage as or Canada) the U.S. (Outside WHAT IS THE WHAT DEADLINE FOR VOTING DELIVERING MY INSTRUCTIONS IF MY LOGITECH SHARES ARE REGISTERED BANK THROUGH MY AS OR BROKERAGE CUSTODIAN? HOW DO I VOTE BY SHARES IF MY PROXY ARE REGISTERED BANK THROUGH MY AS OR BROKERAGE CUSTODIAN? Further Information for Shareholders with Shares Registered Through a HOW DO I OBTAIN A I OBTAIN HOW DO SET OF SEPARATE OR MATERIALS PROXY SINGLE SET A REQUEST IN HOUSEHOLD FOR MY THE UNITED STATES? Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement If you are a registered shareholder and sign and return and sign and shareholder registered a are you If

If you are a registered shareholder and vote using the If you are a registered shareholder and vote using the

9 8 If you are a registered shareholder and sign and return a Proxy a return and sign and shareholder registered a are you If

INTERNET VOTING – INTERNET VOTING – a Response Coupon without giving specific voting instructions for some or all agenda items, you thereby give instructions to the Independent Representative to vote your shares in accordance with that proposals the amended and new recommendations for as well of as items agenda the such for Directors Board of could be formulated during the course of the meeting. you items, agenda all or some for instructions voting specific giving without Card shares your vote to Representative Independent the to instructions give thereby formulated be could that in proposals accordance amended and with new the for as recommendations well as of items the agenda Board of Directors for such during the course of the meeting. Internet voting site, you have to give specific voting instructions to all agenda items before you can your instructions. submit – COUPON RESPONSE Internet voting site without giving specific agenda items, you thereby give instructions voting to the Independent Representative instructions for some or all to vote your shares in accordance with that proposals the amended and new recommendations for as well of as items agenda the such for Directors Board of could be formulated during the course of the meeting. – CARD PROXY

nominees for the expenses of doing so in accordance with certain U.S. statutory fee schedules.

U.S. SHARE REGISTER SWISS SHARE REGISTER SWISS SHARE Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General If you are a beneficial owner of shares held in “street name” in the United States or Canada, if other matters are properly are matters other if Canada, or States United the in name” “street in held shares of owner beneficial a are you If or card instruction voting a on instructions voting discretionary provided have you and meeting the at voting for presented through the Internet or other permitted voting mechanisms or have not provided voting instructions, your shares will be voted in accordance with the recommendations of Directors at the meeting of the Board on such matters. Proxy Solicitation additional without employees, other and officers directors, our of Certain firm. solicitation proxy a retain to expect not do We the with connection in otherwise or e-mail telephone, by writing, in or personally shareholders contact may compensation, hold who nominees and brokers that request to required are brokers we States, such United reimburse the In must meeting. the we at and made be shares, to proposals the of owners beneficial the to material proxy our furnish names their in shares and Other Meeting Information Other Meeting Proposals There are no other matters that the Board intends to present, or has reason to believe others will present, Annual at the General Meeting. shareholder: If you are a registered . If any If . [email protected] . Other shareholders who have multiple accounts in their in accounts multiple have who shareholders Other . 7 Your Your broker, trustee or instructions for you to use trustee in or directing nominee the how broker, to vote nominee should have your shares. If you did not receive such instructions you enclosed must contact your bank or or brokerage for their voting instructions. provided voting Banks and brokerages typically set deadlines for receiving instructions from their to two typically is deadline this Canada, and U.S. the of Outside holders. account three days before the deadline of This the company holding the general meeting. is so that the custodians can collect the voting instructions and pass them on to the company holding the meeting. If you hold Logitech shares through a bank or brokerage or bank your with check please Canada, or U.S. the outside brokerage far as them to instructions voting your submit and deadline voting specific their for before that deadline as possible. We We have adopted a procedure approved by the SEC shareholders called in the United States. Under this procedure, shareholders who “householding” have for report the annual same and address and statement last proxy name our and of do copy not participate one in only electronic receive delivery will of materials proxy unless one or more of these postage and shareholders costs notifies printing us our that reduces they procedure wish This to copies. continue individual receiving fees. Each U.S. shareholder who participates in householding will continue to be receive able to access or proxy card. a separate If you wish to receive a separate proxy statement and annual by report at Broadridge, this time, agent, mailing our contacting by copy additional the request please at e-mail by or +1-866-540-7095 at telephone shareholders in your household wish to receive a separate proxy statement and annual Newark, Boulevard, Gateway 7700 report Relations, Investor to in write or +1-510-713-4220 the future, they California 94560. They may also send an email to our may investor relations group at call our [email protected] investor relations group names or at who share an or calling by reports annual and statements proxy address multiple of mailings discontinue with other stockholders can authorize writing to investor relations. us to Bank or Brokerage as Custodian Bank or Brokerage as or Canada) the U.S. (Outside Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General A I OBTAIN HOW DO SET OF SEPARATE OR MATERIALS PROXY SINGLE SET A REQUEST IN HOUSEHOLD FOR MY THE UNITED STATES? Further Information for Shareholders with Shares Registered Through a HOW DO I VOTE BY SHARES IF MY PROXY ARE REGISTERED BANK THROUGH MY AS OR BROKERAGE CUSTODIAN? IS THE WHAT DEADLINE FOR VOTING DELIVERING MY INSTRUCTIONS IF MY LOGITECH SHARES ARE REGISTERED BANK THROUGH MY AS OR BROKERAGE CUSTODIAN? 10

. Swiss law. Agenda Proposals and Explanations and Proposals Agenda A. Reports 2018Ended March 31, Year the Fiscal Operations for Report on report and presentation a with Meeting General Annual the provide will S.A. International Logitech of management Senior on operations for fiscal year 2018.of the Company B. Proposals Proposal 1 Statements and the Consolidated Financial Annual Report, the Approval of S.A. for Fiscal of Logitech International Financial Statements the Statutory 2018 Year Proposal financial statutory the and statements financial consolidated the Report, Annual the that proposes Directors of Board The fiscal statements of Logitech International year 2018 be approved. S.A. for Explanation The Logitech consolidated financial statements and the statutory financial or statements on shareholders of registered all Logitech to available International made was S.A. which Report, for Annual Logitech’s in contained are 2018 year fiscal auditors Logitech’s of reports the contains also Report Annual The Statement. Proxy and Invitation this of date the before on the consolidated financial so-called statements (the Corporations Public by Compensation and Excessive Against Ordinance on Swiss the with compliance in the prepared statutory financial statements, Logitech’s Remuneration Report on information additional Report, Remuneration the on auditors statutory the of report the as well as Ordinance”) “Minder and information relating to corporate governance as business, the required organization Company’s by and the strategy, SIX Swiss Exchange directive on corporate governance. Copies of the Annual Report are available ir.logitech.com on the Internet at Under the Swiss annual law, report and financial statements of Swiss companies must be submitted to shareholders for shareholders, by proposal this on vote negative a of event the In meeting. general annual each at disapproval or approval the Board of Directors will call an extraordinary general meeting of shareholders for reconsideration of this proposal by shareholders. Approval of this proposal does not constitute approval or disapproval of any of the consolidated individual matters the referred that to Annual Report or the consolidated or statutory financial statements for fiscal year 2018. in Meeting the General Annual the to recommendation unqualified an issued auditors, Logitech as AG, KPMG the that opinion their expressed AG KPMG approved. be S.A. International Logitech of statements financial statutory and consolidated financial statements for the year ended March 31, 2018 in present all fairly, material respects, the financial position, the results of operations and the cash flows in accordance with accounting principles generally accepted in the United States America of (U.S. GAAP) and comply with Swiss They law. further expressed their opinion and confirmed that the statutory financial statements and the proposed appropriation of available earnings comply with Swiss required information law the and contains Report Remuneration the and S.A. International Logitech of Incorporation of Articles the by Voting Requirement to Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends a vote “FOR” approval Annual of Report, the the consolidated financial statements and the statutory financial statements of Logitech International for fiscal year S.A. 2018. 9 10 . You may also contact the Secretary of Logitech at our principal executive principal our at Logitech of Secretary the contact also may You . http://ir.logitech.com a result, if you are not a registered shareholder you may not make proposals for the 2019 Annual General Meeting. a result, if you are not a registered shareholder make proposals the 2019 you may not for Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General office in either Switzerland or the United States to request a copy of the relevant provisions of our Articles of Incorporation. of Articles our of provisions relevant the of copy a request to States United the or Switzerland either in office Nominations of Director Candidates Nominations of director candidates by registered shareholders must follow for shareholder the rules proposals above. Articles of Incorporation Provisions of The relevant provisions of Articles our of aggregate Incorporation an (ii) regarding or the capital share right issued our of of one percent one or (i) more of lesser registered the least shareholders at who representing shares represent together par value of one million Swiss francs to demand that an item be placed on the agenda of a meeting of shareholders are at website our on available Tabulation of Votes Tabulation Representatives of at least two Swiss banks will serve as scrutineers of the vote As tabulations is at typical the meeting. provided are that shareholders registered of instructions voting the tabulate will Registrar Share our companies, Swiss for in advance of the meeting. and Nominees Shareholder Proposals Meeting Annual General for 2018 Shareholder Proposals Articles Under of our Incorporation, one or more registered shareholders who together represent shares representing at may francs Swiss million one of value par aggregate an (ii) or capital share issued our of percent one (i) of lesser the least demand that an item be placed on the Any agenda such of proposal a must meeting be of included shareholders. by the describe and writing in be must agenda meeting the on item an place to request A meeting. the for materials our in Board shareholder, registered July was agenda a the for proposals from receive to deadline proxy the Meeting, valid General Annual a 2018 the to holding respect With persons proposal. the or shareholders, registered law Swiss under addition, In 2018. 7, Annual General Meeting agenda meeting. before or at the may propose alternatives to items on the 2018 Annual General Meeting Shareholder Proposals for 2019 We anticipate demand holding may Incorporation of Articles our Company’s the 2019 in requirements Annual shareholding minimum the General satisfy who shareholders Meeting on request written a delivering or by shareholders of Meeting General about Annual 2019 our September for agenda the on placed 4, be item an that 2019. One or more registered describing the proposal requirements to shareholding the the Secretary satisfy of and Logitech shareholder at registered our a principal are executive you office in if either addition, Switzerland In or 2019. the 6, United July than later no States under Rule 14a-8 of the U.S. Securities Exchange Act of Annual General Meeting agenda by delivering a request 1934 consideration by the Board of Directors for inclusion in the 2019 (the “Exchange Act”), you may submit a proposal for the Switzerland or either in office principal executive our at Logitech of Secretary the proposal to the of description a and securities which U.S. Act, Exchange the under of 14a-8 Rule with materials comply to need will proposal proxy The 2019. 26, March company-sponsored than later no States United in proposals shareholder of inclusion the for requirements shareholders. the Logitech as lists recognized are shareholders registered only Incorporation of Articles Company’s the Under laws. As

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 11 10

. Swiss law. Agenda Proposals and Explanations and Proposals Agenda Voting Requirement to Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends a vote “FOR” approval Annual of Report, the the consolidated financial statements and the statutory financial statements of Logitech International for fiscal year S.A. 2018. Proposal financial statutory the and statements financial consolidated the Report, Annual the that proposes Directors of Board The fiscal statements of Logitech International year 2018 be approved. S.A. for Explanation The Logitech consolidated financial statements and the statutory financial or statements on shareholders of registered all Logitech to available International made was S.A. which Report, for Annual Logitech’s in contained are 2018 year fiscal auditors Logitech’s of reports the contains also Report Annual The Statement. Proxy and Invitation this of date the before on the consolidated financial so-called statements (the Corporations Public by Compensation and Excessive Against Ordinance on Swiss the with compliance in the prepared statutory financial statements, Logitech’s Remuneration Report on information additional Report, Remuneration the on auditors statutory the of report the as well as Ordinance”) “Minder and information relating to corporate governance as business, the required organization Company’s by and the strategy, SIX Swiss Exchange directive on corporate governance. Copies of the Annual Report are available ir.logitech.com on the Internet at Under the Swiss annual law, report and financial statements of Swiss companies must be submitted to shareholders for shareholders, by proposal this on vote negative a of event the In meeting. general annual each at disapproval or approval the Board of Directors will call an extraordinary general meeting of shareholders for reconsideration of this proposal by shareholders. Approval of this proposal does not constitute approval or disapproval of any of the consolidated individual matters the referred that to Annual Report or the consolidated or statutory financial statements for fiscal year 2018. in Meeting the General Annual the to recommendation unqualified an issued auditors, Logitech as AG, KPMG the that opinion their expressed AG KPMG approved. be S.A. International Logitech of statements financial statutory and consolidated financial statements for the year ended March 31, 2018 in present all fairly, material respects, the financial position, the results of operations and the cash flows in accordance with accounting principles generally accepted in the United States America of (U.S. GAAP) and comply with Swiss They law. further expressed their opinion and confirmed that the statutory financial statements and the proposed appropriation of available earnings comply with Swiss required information law the and contains Report Remuneration the and S.A. International Logitech of Incorporation of Articles the by Proposal 1 Statements and the Consolidated Financial Annual Report, the Approval of S.A. for Fiscal of Logitech International Financial Statements the Statutory 2018 Year B. Proposals Report on Operations for the Fiscal Year Ended March 31, 2018Ended March 31, Year the Fiscal Operations for Report on report and presentation a with Meeting General Annual the provide will S.A. International Logitech of management Senior on operations for fiscal year 2018.of the Company A. Reports shareholders are recognized as Logitech shareholders. Logitech as recognized are shareholders 9 . You may also contact the Secretary of Logitech at our principal executive principal our at Logitech of Secretary the contact also may You . http://ir.logitech.com a result, if you are not a registered shareholder you may not make proposals for the 2019 Annual General Meeting. a result, if you are not a registered shareholder make proposals the 2019 you may not for Questions and Answers about The Logitech 2018 Annual 2018 The Logitech about Answers and Questions Meeting General Tabulation of Votes Tabulation Representatives of at least two Swiss banks will serve as scrutineers of the vote As tabulations is at typical the meeting. provided are that shareholders registered of instructions voting the tabulate will Registrar Share our companies, Swiss for in advance of the meeting. and Nominees Shareholder Proposals Meeting Annual General for 2018 Shareholder Proposals Articles Under of our Incorporation, one or more registered shareholders who together represent shares representing at may francs Swiss million one of value par aggregate an (ii) or capital share issued our of percent one (i) of lesser the least demand that an item be placed on the Any agenda such of proposal a must meeting be of included shareholders. by the describe and writing in be must agenda meeting the on item an place to request A meeting. the for materials our in Board shareholder, registered July was agenda a the for proposals from receive to deadline proxy the Meeting, valid General Annual a 2018 the to holding respect With persons proposal. the or shareholders, registered law Swiss under addition, In 2018. 7, Annual General Meeting agenda meeting. before or at the may propose alternatives to items on the 2018 Annual General Meeting Shareholder Proposals for 2019 We anticipate demand holding may Incorporation of Articles our Company’s the 2019 in requirements Annual shareholding minimum the General satisfy who shareholders Meeting on request written a delivering or by shareholders of Meeting General about Annual 2019 our September for agenda the on placed 4, be item an that 2019. One or more registered describing the proposal requirements to shareholding the the Secretary satisfy of and Logitech shareholder at registered our a principal are executive you office in if either addition, Switzerland In or 2019. the 6, United July than later no States under Rule 14a-8 of the U.S. Securities Exchange Act of Annual General Meeting agenda by delivering a request 1934 consideration by the Board of Directors for inclusion in the 2019 (the “Exchange Act”), you may submit a proposal for the Switzerland or either in office principal executive our at Logitech of Secretary the proposal to the of description a and securities which U.S. Act, Exchange the under of 14a-8 Rule with materials comply to need will proposal proxy The 2019. 26, March company-sponsored than later no States United in proposals shareholder of inclusion the for requirements the lists registered only Incorporation of Articles Company’s the Under laws. As Nominations of Director Candidates Nominations of director candidates by registered shareholders must follow for shareholder the rules proposals above. Articles of Incorporation Provisions of The relevant provisions of Articles our of aggregate Incorporation an (ii) regarding or the capital share right issued our of of one percent one or (i) more of lesser registered the least shareholders at who representing shares represent together par value of one million Swiss francs to demand that an item be placed on the agenda of a meeting of shareholders are at website our on available Incorporation. of Articles our of provisions relevant the of copy a request to States United the or Switzerland either in office 12 Agenda Proposals and Explanations and Proposals Agenda While compensation is a central part of attracting, retaining and motivating the best executives and employees, we believe believe we employees, and executives best the motivating and retaining attracting, of part central a is compensation While why or Logitech, at stay and join to choose employees or executives exceptional why reason exclusive or sole the not is it they work hard to achieve results for shareholders. In this regard, both the Compensation Committee and management express develop, can employees and executives which in opportunities and environment working a providing that believe their individual potential, and make a difference, are also a key part of Logitech’s success in attracting, motivating and retaining executives and employees. The Compensation Committee of the Board has developed a compensation compensation program that philosophy, is compensation described Logitech’s more fully Statement. in Proxy the and Invitation this in included Report Compensation for Report Compensation the in out set also are 2018 year fiscal during paid compensation and design, and risks program 2018. Year Fiscal Approve Proposal to Requirement Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends ” approval of the following a vote “FOR advisory resolution: “Resolved, that Fiscal the compensation paid for to Logitech’s named executive officers as disclosed in the Table Compensation Report Compensation "Summary the Analysis,” and Discussion “Compensation the including 2018, Year Fiscal for 2018" and the related compensation tables, notes, and narrative discussion, is hereby approved.” Year 11 12

Logitech has designed its compensation programs to: reflect an executive’s role and past performance through base salary and short-term cash incentives, and his or her potential future contribution for through long-term equity incentive awards. provide a balance between short-term and long-term objectives and results; increasing to compensation of portion significant a tying by interests shareholders’ with compensation executive align share value; and provide compensation sufficient to attract and retain the level of talent needed to create and manage an innovative, high-growth, global company in highly competitive and rapidly evolving markets; support a performance-oriented culture; at compensation total of portion significant a place and compensation variable and fixed between balance a maintain both in factoring by risk-taking inappropriate over controls maintaining while performance, Logitech’s the on based risk annual and long-term performance;

• • • • • • Agenda Proposals and Explanations and Proposals Agenda Proposal 2 Proposal Compensation Executive Approve to Vote Advisory Proposal named Logitech’s of compensation the basis, advisory an on approve, shareholders that proposes Directors of Board The 2018. Year Compensation Report for Fiscal disclosed in Logitech’s executive officers Explanation Since 2009, the Logitech Compensation the of Board section Analysis” of and Discussion “Compensation Directors the in out has set as practices, asked and policies shareholders philosophy, each year to approve Logitech’s compensation Report, in a proposal commonly known as a Annual “say-on-pay” General proposal. Meeting, Beginning a with the 2011 U.S. applicable the to subject are that Logitech, including companies, public all for required was vote advisory say-on-pay each in practices and policies philosophy, compensation our of supportive been have Shareholders rules. statement proxy of those years. Accordingly, annually. vote say-on-pay the take to proposal a approved shareholders Meeting, General Annual 2017 the At the Board of Directors is asking shareholders to approve, on an advisory basis, the compensation of Logitech’s named executive officers disclosed in the Compensation Report, including the “Compensation Summary Compensation Discussion table and and Analysis,” the related the compensation tables, notes, and narrative. This vote is not but address rather any the specific overall items compensation of compensation or any specific named executive intended officer, to applicable with comply policies and practices described in the Compensation Report. to and the philosophy, of our named executive officers and practice best a as out carried is It binding. not is therefore and advisory is vote say-on-pay This U.S. proxy statement rules, and is consequently independent from, and below comes 11 Proposal contemplated in in Year Board 2019 to 2018 the for Directors of Board the addition of Compensation of Approval contemplated to, 2020 year the fiscal for binding vote Team on Management Group the the for Compensation of Approval the on vote binding the and our about views shareholder regarding us to information provide will vote say-on-pay the However, below. 12 Proposal in able be will Board the of Committee Compensation the which practices, and policies philosophy, compensation executive to consider when determining future executive compensation. The Committee will seek to determine the causes of any significant negative voting result. As discussed in the Compensation Discussion Analysis and section of Logitech’s Compensation Report for Fiscal Year 2018,

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 13 12 Agenda Proposals and Explanations and Proposals Agenda While compensation is a central part of attracting, retaining and motivating the best executives and employees, we believe believe we employees, and executives best the motivating and retaining attracting, of part central a is compensation While why or Logitech, at stay and join to choose employees or executives exceptional why reason exclusive or sole the not is it they work hard to achieve results for shareholders. In this regard, both the Compensation Committee and management express develop, can employees and executives which in opportunities and environment working a providing that believe their individual potential, and make a difference, are also a key part of Logitech’s success in attracting, motivating and retaining executives and employees. The Compensation Committee of the Board has developed a compensation compensation program that philosophy, is compensation described Logitech’s more fully Statement. in Proxy the and Invitation this in included Report Compensation for Report Compensation the in out set also are 2018 year fiscal during paid compensation and design, and risks program 2018. Year Fiscal Approve Proposal to Requirement Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends ” approval of the following a vote “FOR advisory resolution: “Resolved, that Fiscal the compensation paid for to Logitech’s named executive officers as disclosed in the Table Compensation Report Compensation "Summary the Analysis,” and Discussion “Compensation the including 2018, Year Fiscal for 2018" and the related compensation tables, notes, and narrative discussion, is hereby approved.” Year 11

Logitech has designed its compensation programs to: provide compensation sufficient to attract and retain the level of talent needed to create and manage an innovative, high-growth, global company in highly competitive and rapidly evolving markets; support a performance-oriented culture; at compensation total of portion significant a place and compensation variable and fixed between balance a maintain both in factoring by risk-taking inappropriate over controls maintaining while performance, Logitech’s the on based risk annual and long-term performance; provide a balance between short-term and long-term objectives and results; increasing to compensation of portion significant a tying by interests shareholders’ with compensation executive align share value; and reflect an executive’s role and past performance through base salary and short-term cash incentives, and his or her potential future contribution for through long-term equity incentive awards.

• • • • • Agenda Proposals and Explanations and Proposals Agenda • Proposal 2 Proposal Compensation Executive Approve to Vote Advisory Proposal named Logitech’s of compensation the basis, advisory an on approve, shareholders that proposes Directors of Board The 2018. Year Compensation Report for Fiscal disclosed in Logitech’s executive officers Explanation Since 2009, the Logitech Compensation the of Board section Analysis” of and Discussion “Compensation Directors the in out has set as practices, asked and policies shareholders philosophy, each year to approve Logitech’s compensation Report, in a proposal commonly known as a Annual “say-on-pay” General proposal. Meeting, Beginning a with the 2011 U.S. applicable the to subject are that Logitech, including companies, public all for required was vote advisory say-on-pay each in practices and policies philosophy, compensation our of supportive been have Shareholders rules. statement proxy of those years. Accordingly, annually. vote say-on-pay the take to proposal a approved shareholders Meeting, General Annual 2017 the At the Board of Directors is asking shareholders to approve, on an advisory basis, the compensation of Logitech’s named executive officers disclosed in the Compensation Report, including the “Compensation Summary Compensation Discussion table and and Analysis,” the related the compensation tables, notes, and narrative. This vote is not but address rather any the specific overall items compensation of compensation or any specific named executive intended officer, to applicable with comply policies and practices described in the Compensation Report. to and the philosophy, of our named executive officers and practice best a as out carried is It binding. not is therefore and advisory is vote say-on-pay This U.S. proxy statement rules, and is consequently independent from, and below comes 11 Proposal contemplated in in Year Board 2019 to 2018 the for Directors of Board the addition of Compensation of Approval contemplated to, 2020 year the fiscal for binding vote Team on Management Group the the for Compensation of Approval the on vote binding the and our about views shareholder regarding us to information provide will vote say-on-pay the However, below. 12 Proposal in able be will Board the of Committee Compensation the which practices, and policies philosophy, compensation executive to consider when determining future executive compensation. The Committee will seek to determine the causes of any significant negative voting result. As discussed in the Compensation Discussion Analysis and section of Logitech’s Compensation Report for Fiscal Year 2018, 14 Title VIII Title CAPITAL AUTHORIZED AND CONDITIONAL Article 27 at any time until September 5, 2020 to increase the share The Board of Directors is authorized 8,655,331 through the aggregate amount of CHF capital of the Company by a maximum 0.25 each, registered shares with a par value of CHF issuance of not more than 34,621,324 which will have to be fully paid in. The Board of Directors may authorize the issuance Increases in partial amounts are permitted. or similar process carried out by one or more banks of new shares by means of an underwriting view to offering the new shares to existing shareholders or to or other financial institutions with a shall determine the type of contributions, the issue price, third parties. The Board of Directors for the exercise of the preferential subscription rights, the the time of the issue, the conditions rights and the date upon which the new shares use of unexercised preferential subscription The Board of Directors may authorize, restrict or exclude the shall become entitled to dividends. trading of preferential subscription rights. granted, but not exercised, the Board of Directors shall use If preferential subscription rights are the rights associated with the relevant shares in the interest of the Company. rights of existing The Board of Directors may restrict or withdraw the preferential subscription for valid reasons, in shareholders, and allocate such rights to third parties or to the Company acquisition of particular if the new shares are being issued in connection with: (a) the licenses or new companies, enterprises, participations, assets, intellectual property rights, for the financing and/or investment projects; (b) a public offering or private placement of shares a public offering or refinancing of an acquisition of the kind referred to under (a) above; (c) offering or private private placement of shares, under circumstances in which such public out under less favourable placement would be difficult to carry out or could likely only be carried not restricted or terms if the preferential subscription rights of existing shareholders were partner; or (e) the withdrawn; (d) the acquisition of a stake in the Company by a strategic or in the context of a broadening of the shareholder base of the Company in certain jurisdictions listing or admission to trading on a domestic or foreign stock exchange. Agenda Proposals and Explanations and Proposals Agenda Proposal 4 Proposal Amendment of the Articles of Incorporation Regarding the Creation of an Authorized Capital Share registered new 34,621,324 Proposal to up issue to Directors of Board the authorize shareholders that proposes Directors of Board The the in Capital”) effect that to added be Authorized 27 Article new a that and and 2020 5, September until “Conditional each CHF 0.25 of value par renamed a with shares be to VIII Title (such VIII Title under Company the of Incorporation of Articles with the following text: 782,283,046 671,583,046 (110,700,000) Year ended Year March 31, 2018 CHF CHF CHF 13 14

The per share approximations are based on 164,579,978 shares outstanding, net of treasury shares, as of March 31, of as shares, treasury of net outstanding, shares 164,579,978 on based are approximations share per The S.A. International Logitech by held shares treasury for except issued shares all are shares Distribution-bearing 2018. on the day preceding the payment of the distribution. lines of business.

Proposed dividends Retained earnings available at the Retained earnings 2018 end of fiscal year Agenda Proposals and Explanations and Proposals Agenda Balance of retained earnings to be Balance of retained carried forward Voting Requirement to Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation respect with earnings retained of appropriation proposed the of approval “FOR” vote a recommends Directors of Board The to fiscal year 2018,including the payment of a dividend to shareholders in an aggregate amount CHF 110,700,000. of * Proposal 3 Proposal of Dividend Declaration and Retained Earnings of Appropriation Proposal on rate exchange the on based 817,955,153 USD (approximately 782,283,046 CHF that proposes Directors of Board The retained March 31, 2018) of earnings appropriated be as follows: The Board of Directors approved (approximately USD 115,747,920, based on and the exchange rate on proposes March 31, 2018), or approximately distribution CHF 0.6726 per of share (approximately USD 0.7033 per share).* a gross aggregate dividend of CHF No distribution shall be made on shares held in treasury by the Company subsidiaries. and its 110,700,000 If the proposal of the Board of Directors is approved, the dividend payment of approximately CHF 0.6726 per share (or approximately CHF 0.4372 per share after deduction of 35% Swiss withholding tax whenever required) will be made 20, on September about or on be will (which date record the of as record on shareholders all to 2018 21, September about or made payments For 2018. 19, September approximately of as ex-dividend traded be will shares the that expect We 2018). currency in U.S. dollars, we expect use as of the date of the meeting, September to the exchange 5, 2018. rate Explanation Meeting General Annual 2018 the at shareholders Under Logitech Swiss law, of the use disposal of the retained at earnings must earnings be retained submitted The to shareholders meeting. for general approval annual or disapproval at each are the earnings the Logitech of Logitech International parent holding S.A., company. The proposal of the Board of Directors to distribute a gross dividend of approximately CHF 0.6726 per share represents an increase of approximately 10% over following the another prior year year, of strong cash flow from operations, and is Company’s an indication the of of the approval Board the of Directors’ to confidence (subject in the year future every of Company the the Directors Company. decided Since on a recurring annual gross dividend of fiscal and not on As an a occasional consequence, year one. the shareholders Company 2013, the the to Board of dividend a such propose to expects statutory auditors in the applicable year). Other than the distribution of the dividend, the Board of Directors proposes the carry-forward of retained earnings based future for earnings Logitech’s retain to shareholders its and Logitech of interests best the in is it that belief Board’s the companies on other of acquisition possible the for and repurchases, share for business, Logitech’s of growth the in investment or

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 15 14 Title VIII Title CAPITAL AUTHORIZED AND CONDITIONAL Article 27 at any time until September 5, 2020 to increase the share The Board of Directors is authorized 8,655,331 through the aggregate amount of CHF capital of the Company by a maximum 0.25 each, registered shares with a par value of CHF issuance of not more than 34,621,324 which will have to be fully paid in. The Board of Directors may authorize the issuance Increases in partial amounts are permitted. or similar process carried out by one or more banks of new shares by means of an underwriting view to offering the new shares to existing shareholders or to or other financial institutions with a shall determine the type of contributions, the issue price, third parties. The Board of Directors for the exercise of the preferential subscription rights, the the time of the issue, the conditions rights and the date upon which the new shares use of unexercised preferential subscription The Board of Directors may authorize, restrict or exclude the shall become entitled to dividends. trading of preferential subscription rights. granted, but not exercised, the Board of Directors shall use If preferential subscription rights are the rights associated with the relevant shares in the interest of the Company. rights of existing The Board of Directors may restrict or withdraw the preferential subscription for valid reasons, in shareholders, and allocate such rights to third parties or to the Company acquisition of particular if the new shares are being issued in connection with: (a) the licenses or new companies, enterprises, participations, assets, intellectual property rights, for the financing and/or investment projects; (b) a public offering or private placement of shares a public offering or refinancing of an acquisition of the kind referred to under (a) above; (c) offering or private private placement of shares, under circumstances in which such public out under less favourable placement would be difficult to carry out or could likely only be carried not restricted or terms if the preferential subscription rights of existing shareholders were partner; or (e) the withdrawn; (d) the acquisition of a stake in the Company by a strategic or in the context of a broadening of the shareholder base of the Company in certain jurisdictions listing or admission to trading on a domestic or foreign stock exchange. Agenda Proposals and Explanations and Proposals Agenda The Board of Directors proposes that shareholders authorize the Board of Directors to issue up to 34,621,324 new registered new 34,621,324 Proposal to up issue to Directors of Board the authorize shareholders that proposes Directors of Board The the in Capital”) effect that to added be Authorized 27 Article new a that and and 2020 5, September until “Conditional each CHF 0.25 of value par renamed a with shares be to VIII Title (such VIII Title under Company the of Incorporation of Articles with the following text: Proposal 4 Proposal Amendment of the Articles of Incorporation Regarding the Creation of an Authorized Capital Share 782,283,046 671,583,046 (110,700,000) Year ended Year March 31, 2018 CHF CHF CHF 13

Agenda Proposals and Explanations and Proposals Agenda available at the Retained earnings 2018 end of fiscal year Proposed dividends Balance of retained earnings to be Balance of retained carried forward Proposal 3 Proposal of Dividend Declaration and Retained Earnings of Appropriation Proposal on rate exchange the on based 817,955,153 USD (approximately 782,283,046 CHF that proposes Directors of Board The retained March 31, 2018) of earnings appropriated be as follows: Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation respect with earnings retained of appropriation proposed the of approval “FOR” vote a recommends Directors of Board The to fiscal year 2018,including the payment of a dividend to shareholders in an aggregate amount CHF 110,700,000. of * The Board of Directors approved (approximately USD 115,747,920, based on and the exchange rate on proposes March 31, 2018), or approximately distribution CHF 0.6726 per of share (approximately USD 0.7033 per share).* a gross aggregate dividend of CHF No distribution shall be made on shares held in treasury by the Company subsidiaries. and its 110,700,000 If the proposal of the Board of Directors is approved, the dividend payment of approximately CHF 0.6726 per share (or approximately CHF 0.4372 per share after deduction of 35% Swiss withholding tax whenever required) will be made 20, on September about or on be will (which date record the of as record on shareholders all to 2018 21, September about or made payments For 2018. 19, September approximately of as ex-dividend traded be will shares the that expect We 2018). currency in U.S. dollars, we expect use as of the date of the meeting, September to the exchange 5, 2018. rate Explanation Meeting General Annual 2018 the at shareholders Under Logitech Swiss law, of the use disposal of the retained at earnings must earnings be retained submitted The to shareholders meeting. for general approval annual or disapproval at each are the earnings the Logitech of Logitech International parent holding S.A., company. The proposal of the Board of Directors to distribute a gross dividend of approximately CHF 0.6726 per share represents an increase of approximately 10% over following the another prior year year, of strong cash flow from operations, and is Company’s an indication the of of the approval Board the of Directors’ to confidence (subject in the year future every of Company the the Directors Company. decided Since on a recurring annual gross dividend of fiscal and not on As an a occasional consequence, year one. the shareholders Company 2013, the the to Board of dividend a such propose to expects statutory auditors in the applicable year). Other than the distribution of the dividend, the Board of Directors proposes the carry-forward of retained earnings based future for earnings Logitech’s retain to shareholders its and Logitech of interests best the in is it that belief Board’s the companies on other of acquisition possible the for and repurchases, share for business, Logitech’s of growth the in investment or

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement

To To be found at follows: Company as not counting Annual General Meeting, not of Incorporation of the to the Articles of Incorporation of Articles the the proposed amendments to 17 17 at the cast in person or by proxy at legally binding) can legally Article 9 (which shall be the only 9 of the Articles to amend Article a majority of the votes "FOR" vote of Article 9 a before the date of the meeting by shall be called at least twenty days General Meetings below. Article 24 in the media specified in single notice published by means of a notice sent to shareholders at the General Meeting can alternatively be called A notice period referred to In such a case, the twenty-day address entered in the share register. the date on which the notice shall have been mailed. above shall begin on the day following " approval of approval of "FOR" vote a recommends Board of Directors Agenda Proposals and Explanations and Proposals Agenda proposed amendment the proposed of The French text Proposal proposes to The Board of Directors Proposal 5 Proposal Regarding of Incorporation Articles the Convening of of the Amendment Meetings Shareholder http://ir.logitech.com. Explanation convening general meetings. for process the of efficiency increase the and simplify proposes to Directors of Board The the Board of Directors proposes that meetings may be convened by means of a single publication in the Swiss this effect, publication addition be made independently to, any or in may in place of, and official This Commerce. Gazette of Official notice of meeting the Company that may serve to shareholders by postal or electronic mail. Proposal Approve Requirement to Voting affirmative The abstentions. Recommendation The regarding the convening of shareholder meetings. 15 " approval of the proposed amendments to the Articles of to the FOR" approval of the proposed amendments Agenda Proposals and Explanations and Proposals Agenda Other provisions under Title VIII of the Articles of Incorporation of the Company remain unchanged. The French text of The remain unchanged. of the Company Articles of Incorporation the VIII of Title under Other provisions be found at http://ir.logitech.com. legally binding) can shall be the only Article 27 (which new the proposed Explanation The Board of Directors proposes to create an authorized share capital representing fast approximately a in capital raise to Company 20% the for possible it make of will capital share authorized The the existing Company. the of capital share relationships. or transactions strategic or acquisitions finance or out carry to and necessary whenever manner flexible and Approve Proposal to Requirement Voting General Annual the at proxy by or person in represented shares the of majority two-thirds a of vote "FOR" affirmative The Meeting, not counting abstentions. Recommendation a vote " The Board of Directors recommends share capital. Incorporation to create an authorized 19 Agenda Proposals and Explanations and Proposals Agenda Proposal 7 Proposal Release of the Board of Directors and Executive Officers from Liability for Proposal Officers Executive and Directors of Board the of members the release shareholders that proposes Directors of Board The from liability activities fiscal for during 2018. year Explanation As is customary for Swiss from corporations Officers and Executive the in and accordance Directors of with Article Board the 698, of members subsection the 2, release to item requested are 5 shareholders Obligations, of the Swiss Code of liability for their activities during fiscal year 2018 that have been exempts disclosed members to of shareholders. the This Board release of from Directors liability or Executive Officers from liability shareholders on claims behalf of brought the Company by against any the of them Company for activities or carried out its during fiscal year 2018 relating to facts that have been disclosed to shareholders. Shareholders that do not vote in favor of the proposal, or acquire their ending period a for result the by bound not are resolution, this of approval the of knowledge without vote the after shares six months after the vote. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions the Board and not counting the votes of any member of Directors or of any Logitech executive of officers. Recommendation The Board of Directors recommends a vote “FOR” the proposal to release the members of the Board of from liability activities year for during fiscal 2018. Executive Officers Directors and Activities during Fiscal Year 2018 Year Fiscal Activities during 18 18 ter bis Article 18 (5) mandates in supreme may assume more than five No member of the Management Team of legal entities outside the Logitech group, of which no management or supervisory bodies In addition, Members of the Management Team more than two (2) may be in listed companies. in the governing bodies of charitable or similar may assume up to five (5) mandates of the Board of Directors. Any such mandate shall require the approval organizations. Article 17 than ten (10) mandates in supreme Board of Directors shall assume more No member of the no the Logitech group, of which bodies of legal entities outside management or supervisory companies. In addition, Members of the Board of Directors more than four (4) may be in listed in the governing bodies of charitable or similar may assume up to ten (10) mandates Board of Directors must be informed of such mandates. organizations. The Chairman of the Agenda Proposals and Explanations and Proposals Agenda of Mandates that Members of the Board of Directors and Management Team Team Management and Directors of Board the of Members that Mandates of for Charitable Accept Organizations May The second and third paragraphs of Article 18ter remain unchanged. The second and third paragraphs of Articles The 17bis French and text 18ter of (which the shall proposed be amendments the to only legally binding) can be found at http://ir.logitech.com. Explanation The Board of Directors proposes to remove the requirement that the maximum limits of 10 and 5 outside mandates that similar and charitable in have may respectively, Team, Management Group the of and Directors of Board the of members Articles organizations of under Incorporation the be Company's necessarily non-remunerated. With this amendment, the Board of Directors intends to encourage its members and charitable in mandates members of number limited a of accept to executives senior and the members Board Allowing Group activities. charitable Management to Team participate in listed Swiss for practice common become has not or remunerated are mandates such whether of regardless organizations companies. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote "FOR" affirmative The abstentions. Recommendation Incorporation of Articles the to amendments proposed the approval of "FOR" vote a recommends Directors of Board The accept may Team Management and Directors of Board the of members that mandates of number maximum the regarding for charitable organizations. Proposal the of 18ter Article of paragraph first the and 17bis Article of paragraph first the amend to proposes Directors of Board The Articles of Incorporation Company as follows: of the Proposal 6 Proposal Number Maximum the Regarding Incorporation of Articles the of Amendment Article 17bis remain unchanged. The second and third paragraphs of

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 19 19 Agenda Proposals and Explanations and Proposals Agenda Proposal Officers Executive and Directors of Board the of members the release shareholders that proposes Directors of Board The from liability activities fiscal for during 2018. year Explanation As is customary for Swiss from corporations Officers and Executive the in and accordance Directors of with Article Board the 698, of members subsection the 2, release to item requested are 5 shareholders Obligations, of the Swiss Code of liability for their activities during fiscal year 2018 that have been exempts disclosed members to of shareholders. the This Board release of from Directors liability or Executive Officers from liability shareholders on claims behalf of brought the Company by against any the of them Company for activities or carried out its during fiscal year 2018 relating to facts that have been disclosed to shareholders. Shareholders that do not vote in favor of the proposal, or acquire their ending period a for result the by bound not are resolution, this of approval the of knowledge without vote the after shares six months after the vote. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions the Board and not counting the votes of any member of Directors or of any Logitech executive of officers. Recommendation The Board of Directors recommends a vote “FOR” the proposal to release the members of the Board of from liability activities year for during fiscal 2018. Executive Officers Directors and Proposal 7 Proposal Release of the Board of Directors and Executive Officers from Liability for Activities during Fiscal Year 2018 Year Fiscal Activities during 18 bis ter Article 17 Article 18 No member of the Board of Directors shall assume more than ten (10) mandates in supreme Board of Directors shall assume more No member of the no the Logitech group, of which bodies of legal entities outside management or supervisory companies. In addition, Members of the Board of Directors more than four (4) may be in listed in the governing bodies of charitable or similar may assume up to ten (10) mandates Board of Directors must be informed of such mandates. organizations. The Chairman of the (5) mandates in supreme may assume more than five No member of the Management Team of legal entities outside the Logitech group, of which no management or supervisory bodies In addition, Members of the Management Team more than two (2) may be in listed companies. in the governing bodies of charitable or similar may assume up to five (5) mandates of the Board of Directors. Any such mandate shall require the approval organizations. Agenda Proposals and Explanations and Proposals Agenda of Mandates that Members of the Board of Directors and Management Team Team Management and Directors of Board the of Members that Mandates of for Charitable Accept Organizations May Proposal 6 Proposal Number Maximum the Regarding Incorporation of Articles the of Amendment Proposal the of 18ter Article of paragraph first the and 17bis Article of paragraph first the amend to proposes Directors of Board The Articles of Incorporation Company as follows: of the Article 17bis remain unchanged. The second and third paragraphs of Article 18ter remain unchanged. The second and third paragraphs of Articles The 17bis French and text 18ter of (which the shall proposed be amendments the to only legally binding) can be found at http://ir.logitech.com. Explanation The Board of Directors proposes to remove the requirement that the maximum limits of 10 and 5 outside mandates that similar and charitable in have may respectively, Team, Management Group the of and Directors of Board the of members Articles organizations of under Incorporation the be Company's necessarily non-remunerated. With this amendment, the Board of Directors intends to encourage its members and charitable in mandates members of number limited a of accept to executives senior and the members Board Allowing Group activities. charitable Management to Team participate in listed Swiss for practice common become has not or remunerated are mandates such whether of regardless organizations companies. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote "FOR" affirmative The abstentions. Recommendation Incorporation of Articles the to amendments proposed the approval of "FOR" vote a recommends Directors of Board The accept may Team Management and Directors of Board the of members that mandates of number maximum the regarding for charitable organizations. of Tandberg of ASA, Tandberg an 21 1996. She is 44 years old and a Philippine national. Agenda Proposals and Explanations and Proposals Agenda 8.F Re-election of Mr. Didier Hirsch Didier of Mr. 8.F Re-election The Proposal: Board of Directors Didier proposes Hirsch be that Mr. re-elected to the Board for a one-year term ending Annual General Meeting. of the 2019at the closing For biographical information and qualifications of Mr. Hirsch, please refer to “Corporate Governance and Board of Directors of Board and Governance “Corporate to refer please Hirsch, Mr. of qualifications and information biographical For of the Board of Directors” on page Matters – Members 35. Neil Hunt Dr. 8.G Re-election of the at ending term one-year a for Board the to re-elected be Hunt Neil Dr. that proposes Directors of Board The Proposal: Annual General Meeting. closing the 2019of Directors of Board and Governance “Corporate to refer please Hunt, Dr. of qualifications and information biographical For of the Board of Directors” on page Matters – Members 35. Ms. Neela Montgomery 8.H Re-election of Proposal: The Board of Directors proposes that Ms. Neela Montgomery be re-elected to the Board for a one-year term Annual General Meeting. ending at the closing of the 2019 For biographical information please and refer qualifications to of “Corporate Ms. Governance Montgomery, and Board of Board Directors Matters – Members of the Directors” of on page 36. Dimitri Panayotopoulos 8.I Re-election of Mr. term one-year a for Board the to re-elected be Panayotopoulos Dimitri Mr. that proposes Directors of Board The Proposal: Annual General Meeting. ending at the closing of the 2019 Board and Governance “Corporate to refer please Panayotopoulos, Mr. of qualifications and information biographical For Board of Directors” on of Directors Matters – Members of the page 36. Yeh Lung 8.J Re-election of Dr. Proposal: The Board of Directors proposes be that Lung re-elected Dr. Yeh to the Board for a one-year term ending at Annual General Meeting. the closing the 2019of please refer to “Corporate Governance and Board of Directors Yeh, For biographical information and qualifications of Dr. Directors” on page Matters – Members of the Board of 37. 8.K Election of Ms. Marjorie Lao Proposal: In accordance with the recommendation of the Nominating Committee, the Board of Directors proposes that Annual General Meeting. Ms. Marjorie Lao one-year be elected to the Board for a ending at the closing 2019term of the activity main whose company family-owned held, privately a Group, LEGO the of Officer Financial Chief the is Lao Marjorie is the development, production, marketing and sales of play materials based on the LEGO brick. She has served in her current position since February 2017 and previously served as the President, Senior Finance Vice from January 2016 to January 2017 and Senior Vice President, Corporate Finance from January 2014 to December 2015. Prior to joining the to 2013 February from contractor, drilling deepwater a Seadrill, of Projects President, Vice the was Lao Ms. Group, LEGO December 2013. She Systems, served Cisco as by the acquired Chief was Vice Financial the and 2010 April Officer Tandberg to 2006 November from and distributor, and manufacturer Senior systems videoconferencing and 2006. electronics Vice October President, to Finance 2006 January from M&A and Development Business President, Inc., a also worldwide She leader in 2012. Internet February Protocol-based to networking 2010 products April and from services, Analytics and Ms. Business Lao and Strategy joined Cisco Director, as Senior the and Finance Director, Senior firm, consulting management international an Company, & McKinsey of Manager Engagement and Associate an consumer as a served Company, Gamble & Procter The of Manager Controls Internal and Manager Finance a and 2006 to 2002 from from 1996 brand to company, 2000. Ms. Lao holds a BSc Accountancy degree Administration from in and the Business University of from the Harvard Philippines Business and School. an She MBA was certified as a public accountant in the Philippines in Meeting. 20 the closing of the 2019 Annual General 20 to stand for re-election. Meeting. Directors Matters” below. and Board of the Board for a one-year term ending at the closing of the 2019 Annual General serve if elected as a director. Agenda Proposals and Explanations and Proposals Agenda For biographical information and qualifications of Mr. Darrell, please to “Corporate Governance Directors refer and Board of For biographical information and qualifications of Mr. Matters – Members of the Board of Directors” on page 33. Guerrino De Luca 8.E Re-election of Mr. one-year term Board for a the Luca be re-elected to Guerrino De Mr. of Directors proposes that The Board Proposal: ending at Luca, please refer to “Corporate Governance De and Board of Directors For biographical information and qualifications of Mr. Matters – Members of the Board of Directors” on page 34. Proposal 8 Proposal of Directors to the Board Elections Our Board of Directors is presently composed of twelve members. Each director elected was a for one-year term ending Meeting. Annual General 2018at the closing of the At the recommendation of the Nominating Committee, Board has the nominated the eleven individuals below to serve as of the September 5, 2018. Ten Annual General Meeting on of the beginning each case as a one-year term, in directors for Annual the closing of expire upon the terms current Their Directors. the Board of members of serve as nominees currently nominee The other was recommended the Nominating by Committee of the Board General Meeting on September 5, 2018. candidacy a nominee as and approved Board. Ms. Marjorie June 2018as a nominee election by the Board in Lao’s for to the director candidates. Ms. we engaged to identify that a search firm Associates, by Russell Reynolds was recommended stand retire and not to decided for eleven years, has to Board member of the served the Company as a Sally Davis, having Sue Gove has also decided not for re-election. Ms. There will be a separate vote on each nominee. Annual General Meeting. ends at the closing of the next The term of office Board members may only be appointed by shareholders. If the individuals below are elected, the Board Under Swiss law, nominees Board has no reason believe any of our be unwilling The to that will or will be composed eleven of members. unable to Directors, For further information on the Board including of of the Board, the current members of the Board, the Committees information, please see and other executive officers, exercises supervision Logitech’s Board of by which the the means “Corporate Governance Aebischer Patrick Re-election of Dr. 8.A Aebischer re-elected the Board be to for a one-year term ending Patrick The Board Directors of proposes that Dr. Proposal: Annual General Meeting. at the closing of the 2019 “Corporate Governance please refer to and Board of Aebischer, For biographical Dr. information and qualifications of Board Directors” Directors Matters – Members of the on page 32.of Becker 8.B Re-election of Ms. Wendy Board a one-year ending Becker be re-elected for term to the Wendy The Board of Directors proposes that Ms. Proposal: Annual General Meeting. at the closing of the 2019 to “Corporate Governance and please refer Board of Directors For biographical information and qualifications Ms. Becker, of Directors” on page Matters – Members of the Board of 32. Edouard Bugnion 8.C Re-election of Dr. a one-year term ending Edouard be re-elected to the Board for Bugnion Dr. Directors proposes that The Board of Proposal: Annual General Meeting. at the closing of the 2019 Directors of “Corporate Governance and Board Bugnion, please refer to biographical Dr. For information and qualifications of Matters – Members of the Board of Directors” on page 33. Bracken Darrell 8.D Re-election of Mr. Bracken Darrell, Mr. President Officer, and Chief Executive the Company’s Board of Directors proposes that The Proposal: be re-elected to

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 21 21 1996. She is 44 years old and a Philippine national. Agenda Proposals and Explanations and Proposals Agenda 8.F Re-election of Mr. Didier Hirsch Didier of Mr. 8.F Re-election The Proposal: Board of Directors Didier proposes Hirsch be that Mr. re-elected to the Board for a one-year term ending Annual General Meeting. of the 2019at the closing For biographical information and qualifications of Mr. Hirsch, please refer to “Corporate Governance and Board of Directors of Board and Governance “Corporate to refer please Hirsch, Mr. of qualifications and information biographical For of the Board of Directors” on page Matters – Members 35. Neil Hunt Dr. 8.G Re-election of the at ending term one-year a for Board the to re-elected be Hunt Neil Dr. that proposes Directors of Board The Proposal: Annual General Meeting. closing the 2019of Directors of Board and Governance “Corporate to refer please Hunt, Dr. of qualifications and information biographical For of the Board of Directors” on page Matters – Members 35. Ms. Neela Montgomery 8.H Re-election of Proposal: The Board of Directors proposes that Ms. Neela Montgomery be re-elected to the Board for a one-year term Annual General Meeting. ending at the closing of the 2019 For biographical information please and refer qualifications to of “Corporate Ms. Governance Montgomery, and Board of Board Directors” Directors Matters – Members of the on page 36. of Dimitri Panayotopoulos 8.I Re-election of Mr. term one-year a for Board the to re-elected be Panayotopoulos Dimitri Mr. that proposes Directors of Board The Proposal: Annual General Meeting. ending at the closing of the 2019 Board and Governance “Corporate to refer please Panayotopoulos, Mr. of qualifications and information biographical For Board of Directors” on of Directors Matters – Members of the page 36. Yeh Lung 8.J Re-election of Dr. Proposal: The Board of Directors proposes be that Lung re-elected Dr. Yeh to the Board for a one-year term ending at Annual General Meeting. the closing the 2019of please refer to “Corporate Governance and Board of Directors Yeh, For biographical information and qualifications of Dr. Directors” on page Matters – Members of the Board of 37. 8.K Election of Ms. Marjorie Lao Proposal: In accordance with the recommendation of the Nominating Committee, the Board of Directors proposes that Annual General Meeting. Ms. Marjorie Lao one-year be elected to the Board for a ending at the closing 2019term of the activity main whose company family-owned held, privately a Group, LEGO the of Officer Financial Chief the is Lao Marjorie is the development, production, marketing and sales of play materials based on the LEGO brick. She has served in her current position since February 2017 and previously served as the President, Senior Finance Vice from January 2016 to January 2017 and Senior Vice President, Corporate Finance from January 2014 to December 2015. Prior to joining the to 2013 February from contractor, drilling deepwater a Seadrill, of Projects President, Vice the was Lao Ms. Group, LEGO December 2013. She Systems, served Cisco as by the acquired Chief was Vice Financial the and 2010 April Officer Tandberg to 2006 November from and distributor, and manufacturer Senior systems videoconferencing and 2006. electronics Vice October President, to Finance 2006 of ASA, Tandberg January an from M&A and Development Business President, Inc., a also worldwide She leader in 2012. Internet February Protocol-based to networking 2010 products April and from services, Analytics and Ms. Business Lao and Strategy joined Cisco Director, as Senior the and Finance Director, Senior firm, consulting management international an Company, & McKinsey of Manager Engagement and Associate an consumer as a served Company, Gamble & Procter The of Manager Controls Internal and Manager Finance a and 2006 to 2002 from from 1996 brand to company, 2000. Ms. Lao holds a BSc Accountancy degree Administration from in and the Business University of from the Harvard Philippines Business and School. an She MBA was certified as a public accountant in the Philippines in Meeting. 20 the closing of the 2019 Annual General to stand for re-election. Meeting. Directors Matters” below. and Board of the Board for a one-year term ending at serve if elected as a director. the closing of the 2019 Annual General Agenda Proposals and Explanations and Proposals Agenda Proposal 8 Proposal of Directors to the Board Elections Our Board of Directors is presently composed of twelve members. Each director elected was a for one-year term ending Meeting. Annual General 2018at the closing of the At the recommendation of the Nominating Committee, Board has the nominated the eleven individuals below to serve as of the September 5, 2018. Ten Annual General Meeting on of the beginning each case as a one-year term, in directors for Annual the closing of expire upon the terms current Their Directors. the Board of members of serve as nominees currently nominee The other was recommended the Nominating by Committee of the Board General Meeting on September 5, 2018. candidacy a nominee as and approved Board. Ms. Marjorie June 2018as a nominee election by the Board in Lao’s for to the director candidates. Ms. we engaged to identify that a search firm Associates, by Russell Reynolds was recommended stand retire and not to decided for eleven years, has to Board member of the served the Company as a Sally Davis, having Sue Gove has also decided not for re-election. Ms. There will be a separate vote on each nominee. Annual General Meeting. ends at the closing of the next The term of office Board members may only be appointed by shareholders. If the individuals below are elected, the Board Under Swiss law, nominees Board has no reason believe any of our be unwilling The to that will or will be composed eleven of members. unable to Directors, For further information on the Board including of of the Board, the current members of the Board, the Committees information, please see and other executive officers, exercises supervision Logitech’s Board of by which the the means “Corporate Governance Aebischer Patrick Re-election of Dr. 8.A Aebischer re-elected the Board be to for a one-year term ending Patrick The Board Directors of proposes that Dr. Proposal: Annual General Meeting. at the closing of the 2019 “Corporate Governance please refer to and Board of Aebischer, For biographical Dr. information and qualifications of Board Directors” Directors Matters – Members of the on page 32.of Becker 8.B Re-election of Ms. Wendy Board a one-year ending Becker be re-elected for term to the Wendy The Board of Directors proposes that Ms. Proposal: Annual General Meeting. at the closing of the 2019 to “Corporate Governance and please refer Board of Directors For biographical information and qualifications Ms. Becker, of Directors” on page Matters – Members of the Board of 32. Edouard Bugnion 8.C Re-election of Dr. a one-year term ending Edouard be re-elected to the Board for Bugnion Dr. Directors proposes that The Board of Proposal: Annual General Meeting. at the closing of the 2019 Directors of “Corporate Governance and Board Bugnion, please refer to biographical Dr. For information and qualifications of Matters – Members of the Board of Directors” on page 33. Bracken Darrell 8.D Re-election of Mr. Bracken Darrell, Mr. President Officer, and Chief Executive the Company’s Board of Directors proposes that The Proposal: be re-elected to Darrell, please to “Corporate Governance Directors refer and Board of For biographical information and qualifications of Mr. Matters – Members of the Board of Directors” on page 33. Guerrino De Luca 8.E Re-election of Mr. one-year term Board for a the Luca be re-elected to Guerrino De Mr. of Directors proposes that The Board Proposal: ending at Luca, please refer to “Corporate Governance De and Board of Directors For biographical information and qualifications of Mr. Matters – Members of the Board of Directors” on page 34. 23 ” the election of Mr. Guerrino De Luca as Chairman of the Board of

Agenda Proposals and Explanations and Proposals Agenda Proposal 9 Proposal the Board of of the Chairman Election Pursuant to the so-called “Minder Ordinance”, Swiss law requires that the Chairman of the Board of Directors be elected General Annual following the of closing the at ending term one-year a for Meeting General Annual each of occasion the on Meeting. Proposal one- a for Directors of Board the of Chairman as re-elected be Luca De Guerrino Mr. that proposes Directors of Board The Annual Meeting. General year term ending of the 2019at the closing Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends a vote “FOR Directors. ship positions at Meeting, not counting not Meeting, Annual General Officer and other leader Officer and 22 strategy, M&A, strategy, business development, finance, senior leadership, 22 Chief Financial through her as well as brand as well leading technology companies. as marketing or by proxy at the at proxy by or votes cast in person majority of the of of a majority Europe and the United States. She brings She States. United the and Europe Lao has extensive finance expertise extensive finance Lao has developed Agenda Proposals and Explanations and Proposals Agenda abstentions. Voting Requirement to Approve Proposals Requirement to Voting vote “FOR” affirmative The Recommendation recommends The Board of Directors Board of each of the above “FOR” the election to the a vote nominees. Ms. and consumer global Board experience to the from has The Board of Directors that she will determined be an independent Director. companies in companies

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 23 23 ” the election of Mr. Guerrino De Luca as Chairman of the Board of

Agenda Proposals and Explanations and Proposals Agenda Election of the Chairman of the Board of of the Chairman Election Pursuant to the so-called “Minder Ordinance”, Swiss law requires that the Chairman of the Board of Directors be elected General Annual following the of closing the at ending term one-year a for Meeting General Annual each of occasion the on Meeting. Proposal one- a for Directors of Board the of Chairman as re-elected be Luca De Guerrino Mr. that proposes Directors of Board The Annual Meeting. General year term ending of the 2019at the closing Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends a vote “FOR Proposal 9 Proposal Directors. ship positions at Meeting, not counting not Meeting, Annual General Officer and other leader Officer and 22 strategy, M&A, strategy, business development, finance, senior leadership, Chief Financial through her as well as brand as well leading technology companies. as marketing or by proxy at the at proxy by or votes cast in person majority of the of of a majority Europe and the United States. She brings She States. United the and Europe Lao has extensive finance expertise extensive finance Lao has developed Agenda Proposals and Explanations and Proposals Agenda abstentions. Voting Requirement to Approve Proposals Requirement to Voting vote “FOR” affirmative The Recommendation recommends The Board of Directors Board of each of the above “FOR” the election to the a vote nominees. Ms. and consumer global Board experience to the from has The Board of Directors that she will determined be an independent Director. companies in companies 25 190,000.

of USD 1.0301 to CHF 1.00, if any, the maximum aggregate amount of the compensation of the Board of Directors will Directors of Board the of compensation the of amount aggregate maximum the any, if 1.00, CHF to 1.0301 USD of increase by CHF 25,000 for This the adjustment 2018 reflects – the 2019 fact Board that Year. the compensation of our Chairman, which is included in the maximum aggregate amount of the compensation for the Board of Directors, is set in U.S. Dollars. Board of Directors include annual retainers for Board service. and committee equivalent awards corresponds to a fixed amount and the number shares granted will be calculated at market value at the time of their grant. approximately CHF Agenda Proposals and Explanations and Proposals Agenda * For each decrease of 0.01 in the exchange rate of the Swiss Franc against the U.S. Dollar below the assumed level Proposal 11 Proposal for the of Directors the Board for of Compensation Approval 2019 2018 to Proposal the of compensation the of amount aggregate maximum a approve shareholders the that proposes Directors of Board The Board of Directors of CHF 4,900,000 for the term of office from the Annual 2018 General Meeting until the Annual 2019 General Meeting (the “2018 – 2019 Board subject Year”), to adjustment for certain changes in the applicable currency exchange rate.* Explanation a to year each subject be must Directors of Board the of compensation the Ordinance”, “Minder so-called the to Pursuant paragraph quarter, 19 Article Incorporation. of Articles Logitech’s by contemplated manner the in vote, shareholder binding 1(a) of Logitech’s Articles of Incorporation Annual General Meeting. allows compensation period the next of the Board of Directors for the up to shareholders to approve the maximum aggregate amount of Under the Articles the Company’s of Incorporation, the compensation of the members of the Board of Directors who do not have management responsibilities consists of cash compensation payments and and shares shares or or share equivalents. share The value of shares or share equivalents is calculated value at the time of grant. at market responsibilities assumed. The equivalents value of corresponds cash to a fixed amount, Pursuant Article which 19 to bis, paragraph 2 of Articles the of Company’s Incorporation, the compensation reflects of the members of the functions and the Board of Directors who have management responsibilities (i.e., Team. structured similarly members the Group Management to the compensation of the of executive members of the Board of Directors) is The proposed maximum amount of CHF 4,900,000 has been determined based on the decrease from ten to nine non- executive members on the following of the Board of Directors and non-binding assumptions: With respect to the nine non-executive of the Board of Directors: members • Cash payments of a maximum of approximately CHF 800,000. Cash payments for non-executive members of the • Share or share equivalent awards of a maximum of approximately CHF 1,485,000. The value of share or share • Other payments, including accrual of the Company's estimated contributions to social security, of a maximum of Board Year Board 24 24

term ending at the closing of the 2019 Annual General Meeting. term ending at the closing of the 2019 Agenda Proposals and Explanations and Proposals Agenda For biographical information and qualifications of Ms. Becker, please refer to “Corporate Governance and Board of Directors of Board and Governance “Corporate to refer please Becker, Ms. of qualifications and information biographical For Matters – Members of the Board of Directors” on page 32. Approve Proposals Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation Our Board of Directors recommends a vote “FOR” the election to the Compensation Committee nominees. of each of the above Proposal 10 Proposal Committee to the Compensation Elections the to re-election for standing are whom of three members, four of composed presently is Committee Compensation Our January on law corporate Swiss the to amendment the Following Committee. Compensation the to and Directors of Board 1, 2014, the members of the Compensation Committee are to be elected annually and individually by the shareholders. the Board of Directors Only members of the Compensation can be elected as members Committee. of to below individuals four the nominated has Directors of Board the Committee, Nominating the of recommendation the At serve as members of the Compensation Committee for a nominees the of term all charter, of Committee Compensation our by one required as and, Committee year. Compensation Three the of members of the nominees currently serve as are independent in accordance with the requirements of the listing standards of the Nasdaq Stock Market, the outside director definition of Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended, the definition of Rule and Commission, Exchange and Securities U.S. the by promulgated 16b-3 Rule of purposes for director” employee a “non- amended. Act of 1934, as 10C-1(b)(1) Securities of the U.S. Exchange nominee. each on vote separate a be will There Meeting. General Annual next the of closing the at ends office of term The Edouard Bugnion Re-election of Dr. 10.A Edouard Bugnion be The re-elected Board to of Proposal: the Directors Compensation proposes Committee that for Dr. Directors of Annual General Meeting. a one-year ending term at the closing the 2019of Board and Governance “Corporate to refer please Bugnion, Dr. of qualifications and information biographical For Directors” on page Matters – Members of the Board of 33. Neil Hunt 10.B Re-election of Dr. Proposal: The Board of Directors proposes that Neil Dr. Hunt be re-elected to the Compensation Committee for a one- Annual General Meeting. year term ending at the closing of the 2019 Directors of Board and Governance “Corporate to refer please Hunt, Dr. of qualifications and information biographical For Directors” on page Matters – Members of the Board of 35. Dimitri Panayotopoulos 10.C Re-election of Mr. Committee Compensation the to re-elected be Panayotopoulos Dimitri Mr. that proposes Directors of Board The Proposal: Annual General Meeting. for a one-year term ending 2019at the closing of the Board and Governance “Corporate to refer please Panayotopoulos, Mr. of qualifications and information biographical For Board of Directors” on of Directors Matters – Members of the page 36. Becker 10.D Election of Ms. Wendy one- a for Committee Compensation the to elected be Becker Wendy Ms. that proposes Directors of Board The Proposal: year

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 25 25 190,000.

of USD 1.0301 to CHF 1.00, if any, the maximum aggregate amount of the compensation of the Board of Directors will Directors of Board the of compensation the of amount aggregate maximum the any, if 1.00, CHF to 1.0301 USD of increase by CHF 25,000 for This the adjustment 2018 reflects – the 2019 fact Board that Year. the compensation of our Chairman, which is included in the maximum aggregate amount of the compensation for the Board of Directors, is set in U.S. Dollars. Board of Directors include annual retainers for Board service. and committee equivalent awards corresponds to a fixed amount and the number shares granted will be calculated at market value at the time of their grant. approximately CHF Agenda Proposals and Explanations and Proposals Agenda * For each decrease of 0.01 in the exchange rate of the Swiss Franc against the U.S. Dollar below the assumed level Proposal the of compensation the of amount aggregate maximum a approve shareholders the that proposes Directors of Board The Board of Directors of CHF 4,900,000 for the term of office from the Annual 2018 General Meeting until the Annual 2019 General Meeting (the “2018 – 2019 Board subject Year”), to adjustment for certain changes in the applicable currency exchange rate.* Explanation a to year each subject be must Directors of Board the of compensation the Ordinance”, “Minder so-called the to Pursuant paragraph quarter, 19 Article Incorporation. of Articles Logitech’s by contemplated manner the in vote, shareholder binding 1(a) of Logitech’s Articles of Incorporation Annual General Meeting. allows compensation period the next of the Board of Directors for the up to shareholders to approve the maximum aggregate amount of Under the Articles the Company’s of Incorporation, the compensation of the members of the Board of Directors who do not have management responsibilities consists of cash compensation payments and and shares shares or or share equivalents. share The value of shares or share equivalents is calculated value at the time of grant. at market responsibilities assumed. The equivalents value of corresponds cash to a fixed amount, Pursuant Article which 19 to bis, paragraph 2 of Articles the of Company’s Incorporation, the compensation reflects of the members of the functions and the Board of Directors who have management responsibilities (i.e., Team. structured similarly members the Group Management to the compensation of the of executive members of the Board of Directors) is The proposed maximum amount of CHF 4,900,000 has been determined based on the decrease from ten to nine non- executive members on the following of the Board of Directors and non-binding assumptions: With respect to the nine non-executive of the Board of Directors: members • Cash payments of a maximum of approximately CHF 800,000. Cash payments for non-executive members of the • Share or share equivalent awards of a maximum of approximately CHF 1,485,000. The value of share or share • Other payments, including accrual of the Company's estimated contributions to social security, of a maximum of Approval of Compensation for the Board of Directors for the of Directors the Board for of Compensation Approval 2019 2018 to Proposal 11 Proposal Board Year Board 24

term ending at the closing of the 2019 Annual General Meeting. term ending at the closing of the 2019 Agenda Proposals and Explanations and Proposals Agenda Proposal 10 Proposal Committee to the Compensation Elections the to re-election for standing are whom of three members, four of composed presently is Committee Compensation Our January on law corporate Swiss the to amendment the Following Committee. Compensation the to and Directors of Board 1, 2014, the members of the Compensation Committee are to be elected annually and individually by the shareholders. the Board of Directors Only members of the Compensation can be elected as members Committee. of to below individuals four the nominated has Directors of Board the Committee, Nominating the of recommendation the At serve as members of the Compensation Committee for a nominees the of term all charter, of Committee Compensation our by one required as and, Committee year. Compensation Three the of members of the nominees currently serve as are independent in accordance with the requirements of the listing standards of the Nasdaq Stock Market, the outside director definition of Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended, the definition of Rule and Commission, Exchange and Securities U.S. the by promulgated 16b-3 Rule of purposes for director” employee a “non- amended. Act of 1934, as 10C-1(b)(1) Securities of the U.S. Exchange nominee. each on vote separate a be will There Meeting. General Annual next the of closing the at ends office of term The Edouard Bugnion Re-election of Dr. 10.A Edouard Bugnion be The re-elected Board to of Proposal: the Directors Compensation proposes Committee that for Dr. Directors of Annual General Meeting. a one-year ending term at the closing the 2019of Board and Governance “Corporate to refer please Bugnion, Dr. of qualifications and information biographical For Directors” on page Matters – Members of the Board of 33. Neil Hunt 10.B Re-election of Dr. Proposal: The Board of Directors proposes that Neil Dr. Hunt be re-elected to the Compensation Committee for a one- Annual General Meeting. year term ending at the closing of the 2019 Directors of Board and Governance “Corporate to refer please Hunt, Dr. of qualifications and information biographical For Directors” on page Matters – Members of the Board of 35. Dimitri Panayotopoulos 10.C Re-election of Mr. Committee Compensation the to re-elected be Panayotopoulos Dimitri Mr. that proposes Directors of Board The Proposal: Annual General Meeting. for a one-year term ending 2019at the closing of the Board and Governance “Corporate to refer please Panayotopoulos, Mr. of qualifications and information biographical For Board of Directors” on of Directors Matters – Members of the page 36. Becker 10.D Election of Ms. Wendy one- a for Committee Compensation the to elected be Becker Wendy Ms. that proposes Directors of Board The Proposal: year Directors of Board and Governance “Corporate to refer please Becker, Ms. of qualifications and information biographical For Matters – Members of the Board of Directors” on page 32. Approve Proposals Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation Our Board of Directors recommends a vote “FOR” the election to the Compensation Committee nominees. of each of the above 27

performance goals. in the form of performance-based restricted stock units, or PSUs, time-based restricted stock units, or RSUs, or other or RSUs, or units, stock restricted time-based PSUs, or units, stock restricted performance-based of form the in the of amount maximum regarding assumption The plans. equity applicable the in contemplated instruments financial equity incentive awards assumes maximum achievement of all performance goals and full vesting of all time-based equity As incentive in awards. past years, the value of PSUs, RSUs or other financial instruments granted as equity incentive awards, and included in the compensation reported in our Compensation Report, is calculated based on estimated fair value their grant. at the time of For each increase of 0.01 in the exchange rate of the Swiss Franc against the U.S. Dollar above the assumed level the maximum aggregate amount of the compensation of the Group Management of USD 1.0301 to CHF 1.00, if any, one of compensation the that fact the reflects adjustment This 2020. year fiscal for 35,000 USD by increase will Team is set in Swiss Francs. Team member of our Group Management Gross base salaries of a maximum of USD 2,250,000. the form of incentive cash payments may be earned under the Logitech Management Performance Bonus Plan (the “Bonus Plan”) assumption or other The cash incentive. bonuses approved target by the executive’s Compensation the Committee. Payout of under 200% the Bonus to Plan 0% is variable, and is based or on other the performance achievement goals, of individual and the executives’ Company’s, from range to continue to expected is 2020 year fiscal for of achievement maximum assumes 2020 year fiscal for bonus performance-based the of amount maximum regarding all

Agenda Proposals and Explanations and Proposals Agenda • granted generally are awards incentive equity Long-term 15,960,000. USD of maximum a of awards incentive Equity * Proposal 12 Proposal for Fiscal Team Management the Group for of Compensation Approval 2020 Year Proposal applicable the in changes the of compensation certain the of for amount aggregate maximum adjustment a approve shareholders to the that subject proposes Directors of 2020, Board The year fiscal for 23,700,000 USD of Team Management Group currency exchange rate.* Explanation Pursuant to Article the so-called Incorporation. “Minder of Ordinance”, Articles the compensation Logitech’s by of contemplated the manner Company’s the Group in must Management Team vote, be shareholder binding a to year each subject aggregate maximum the approve to shareholders allows Incorporation of Articles Logitech’s of 1(b) Meeting paragraph General quarter, Annual 19 2018 the As year. fiscal next the for Team Management Group the of compensation the of amount takes place in the middle of fiscal Logitech’s year 2019, the applicable next fiscal year is fiscal year This 2020. required, binding vote on the compensation of the Group is Management Team independent from, and comes in addition to, the non-binding, advisory say-on-pay vote contemplated in Proposal 2. Officer, Executive Chief and President Darrell, Bracken Messrs. of consists currently Team Management Group Logitech’s Vincent Pilette, Chief Financial Officer, and Marcel Stolk, Executive Chairman, Logitech Europe S.A. President, and Creativity Senior & Productivity Vice Business Group. L. Joseph Sullivan, Senior Vice President, as of May 2, 2018. Worldwide effective Operations Team resigned from the Group Management compensation program risks and design, and compensation compensation paid Logitech’s philosophy, during fiscal year 2018are forth in the Compensation set Report. assumptions non-binding following the on based determined been has 23,700,000 USD of amount maximum proposed The as an aggregate group: Team Group Management for Logitech’s • includes members. three Team The Group Management • • in compensation cash Performance-based 4,740,000. USD of maximum a of compensation cash Performance-based 26 26 Mr. Bracken Darrell is not entitled to compensation for his services on the Company’s Board of Directors. Board Bracken Darrell is not entitled to compensation his Company’s for services on the Mr. Mr. De Luca’s compensation is set in U.S. Dollars. The estimated amounts in U.S. Dollars used in these assumptions these in used Dollars U.S. in amounts estimated The Dollars. U.S. in set is compensation Luca’s De Mr. were converted using an assumed exchange rate of 1 Swiss Franc to 1.0301 U.S. Dollars based on the 12 (April 2017 to March 2018) average exchange rate. month in the form of incentive cash payments may be earned under the Logitech Management Performance Bonus Plan (the Plan Bonus Performance Management Logitech the under earned be may payments cash incentive of form the in “Bonus Plan”) or other cash bonuses approved by the Compensation Committee. Payout under the Bonus The Plan goals. performance other or employees’ individual is Company’s, the of achievement the on based is and variable, assumption regarding maximum amount of the performance-based bonus assumes maximum performance goals. achievement of all the form of performance-based restricted stock units, or PSUs, time-based restricted stock units, or RSUs, or other the of amount maximum regarding assumption The plans. equity applicable the in contemplated instruments financial equity incentive awards assumes maximum achievement of all performance goals and full vesting of all time-based equity As incentive in awards. past years, the value of PSUs, RSUs or other financial instruments granted as equity incentive awards, and included in the compensation reported in our Compensation Report, is calculated based on grant. estimated fair value their at the time of related expenses, 401(k) savings plan matching contributions, premiums for group term life insurance and long-term disability insurance, employer’s contribution to medical premiums, relocation expenses, or defined benefit extended pension business plan employment travel-related contributions, accrual of of components these estimated of all provide not employer's does generally Company The contribution awards. other and Medicare, to and security social other compensation to all executives each year, but the formulated to provide flexibility cover these to compensation as applicable. components proposed maximum amount of compensation has been

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 27 27

Agenda Proposals and Explanations and Proposals Agenda • granted generally are awards incentive equity Long-term 15,960,000. USD of maximum a of awards incentive Equity * Proposal applicable the in changes the of compensation certain the of for amount aggregate maximum adjustment a approve shareholders to the that subject proposes Directors of 2020, Board The year fiscal for 23,700,000 USD of Team Management Group currency exchange rate.* Explanation Pursuant to Article the so-called Incorporation. “Minder of Ordinance”, Articles the compensation Logitech’s by of contemplated the manner Company’s the Group in must Management Team vote, be shareholder binding a to year each subject aggregate maximum the approve to shareholders allows Incorporation of Articles Logitech’s of 1(b) Meeting paragraph General quarter, Annual 19 2018 the As year. fiscal next the for Team Management Group the of compensation the of amount takes place in the middle of fiscal Logitech’s year 2019, the applicable next fiscal year is fiscal year This 2020. required, binding vote on the compensation of the Group is Management Team independent from, and comes in addition to, the non-binding, advisory say-on-pay vote contemplated in Proposal 2. Officer, Executive Chief and President Darrell, Bracken Messrs. of consists currently Team Management Group Logitech’s Vincent Pilette, Chief Financial Officer, and Marcel Stolk, Executive Chairman, Logitech Europe S.A. President, and Creativity Senior & Productivity Vice Business Group. L. Joseph Sullivan, Senior Vice President, as of May 2, 2018. Worldwide effective Operations Team resigned from the Group Management compensation program risks and design, and compensation compensation paid Logitech’s philosophy, during fiscal year 2018are forth in the Compensation set Report. assumptions non-binding following the on based determined been has 23,700,000 USD of amount maximum proposed The as an aggregate group: Team Group Management for Logitech’s • includes members. three Team The Group Management • • in compensation cash Performance-based 4,740,000. USD of maximum a of compensation cash Performance-based Approval of Compensation for the Group Management Team for Fiscal for Fiscal Team Management the Group for of Compensation Approval 2020 Year Proposal 12 Proposal 26 12 below. In his capacity as a member of the Group Management 12 below. Mr. Bracken Darrell is not entitled to compensation for his services on the Company’s Board of Directors. Board Bracken Darrell is not entitled to compensation his Company’s for services on the Mr. Mr. De Luca’s compensation is set in U.S. Dollars. The estimated amounts in U.S. Dollars used in these assumptions these in used Dollars U.S. in amounts estimated The Dollars. U.S. in set is compensation Luca’s De Mr. were converted using an assumed exchange rate of 1 Swiss Franc to 1.0301 U.S. Dollars based on the 12 (April 2017 to March 2018) average exchange rate. month in the form of incentive cash payments may be earned under the Logitech Management Performance Bonus Plan (the Plan Bonus Performance Management Logitech the under earned be may payments cash incentive of form the in “Bonus Plan”) or other cash bonuses approved by the Compensation Committee. Payout under the Bonus The Plan goals. performance other or employees’ individual is Company’s, the of achievement the on based is and variable, assumption regarding maximum amount of the performance-based bonus assumes maximum performance goals. achievement of all the form of performance-based restricted stock units, or PSUs, time-based restricted stock units, or RSUs, or other the of amount maximum regarding assumption The plans. equity applicable the in contemplated instruments financial equity incentive awards assumes maximum achievement of all performance goals and full vesting of all time-based equity As incentive in awards. past years, the value of PSUs, RSUs or other financial instruments granted as equity incentive awards, and included in the compensation reported in our Compensation Report, is calculated based on grant. estimated fair value their at the time of related expenses, 401(k) savings plan matching contributions, premiums for group term life insurance and long-term disability insurance, employer’s contribution to medical premiums, relocation expenses, or defined benefit extended pension business plan employment travel-related contributions, accrual of of components these estimated of all provide not employer's does generally Company The contribution awards. other and Medicare, to and security social other compensation to all executives each year, but the formulated to provide flexibility cover these to compensation as applicable. components proposed maximum amount of compensation has been

Agenda Proposals and Explanations and Proposals Agenda Shareholders are approving the maximum aggregate amount of compensation set forth in the proposal. The assumptions The proposal. the in forth set compensation of amount aggregate maximum the approving are Shareholders set forth in this explanation are based on the decisions. Company’s The Company current may redesign expectations its compensation about plans or future make alternative compensation compensation decisions plans within the and maximum aggregate amount of compensation approved by members of shareholders. the Board of The Directors for the 2018 actual - 2019 will Board be Year disclosed compensation in the Compensation Report awarded in the to the Annual General Meeting. Invitation and for the 2020Proxy Statement proposal alternative an submit will Directors of Board the shareholders, by proposal this on vote negative a of event the In to the same or a subsequent general meeting. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation The Board of Directors recommends a vote “FOR” the approval of the maximum aggregate amount of the compensation of the members of the Board of Directors of CHF 4,900,000 for the Annual term General of from office Meeting the 2018 Annual General subject to adjustment as set forth in the proposal. Meeting, until the 2019 ** With respect to executive members of the Board Directors: the Board to executive members With respect of of • compensation Gross base of CHF 510,000.** of a maximum • compensation cash Performance-based 1,020,000.** CHF of maximum a of compensation cash Performance-based • in granted generally are awards incentive equity Long-term 815,000.** CHF of maximum a of awards incentive Equity • Other compensation of a maximum of CHF 80,000.** Other compensation may include tax preparation services and applies above to referred compensation regarding assumption the whom to Directors of Board the of member executive The Guerrino is De Mr. Luca, the As Company’s set Chairman. forth in the Compensation Report in this Invitation and Proxy Statement, Mr. De matches budgets previous from Luca’s assumption award incentive equity maximum the in compensation increase the and Team, structure Management matches the compensation structure of the increase described in the explanation for Proposal members of the Group Team, 29 the re-election of KPMG AG as auditors of Logitech International S.A. International Logitech of auditors as AG KPMG of re-election the “FOR” fiscal year ending March 31, 2019. Agenda Proposals and Explanations and Proposals Agenda Proposal 13 Proposal Re-election of KPMG AG as Logitech’s Auditors Appointment of and KPMG Ratification LLP as of Logitech’s Independent the Registered Public Proposal The Board of Directors proposes that AG KPMG be re-elected as auditors of Logitech International S.A. for a one-year term and that the appointment of KPMG LLP as Logitech’s independent registered public accounting firm for fiscal year 2019be ratified. Explanation AG, KPMG upon recommendation of Audit the Committee of the Board, is proposed for re-election for a further year as assumed audit mandate its first for Logitech during AG fiscal year 2015. auditors for Logitech International KPMG S.A. The Audit Committee has also appointed KPMG the LLP, U.S. affiliate of registered Company’s public KPMG accounting firm AG, the for the fiscal as year ending March 31, as 2019 LLP for purposes of U.S. KPMG securities the law reporting. of appointment Company’s the independent ratify shareholders that require not do Incorporation of Articles Logitech’s independent registered public accounting firm. may, shareholders for However, ratification as a matter Committee of good corporate governance. If shareholders do not ratify the appointment, the Audit the Logitech ratified, is appointment the is if Even submitting LLP. KPMG retain to the whether reconsider will Committee appointment Audit of KPMG LLP to the in be would change a such that determines Committee the if year the during appointment the change discretion, its in best interests of Logitech and its shareholders. registered independent and auditors Company’s the LLP, KPMG and AG KPMG to Logitech by paid fees the on Information public accounting firm for fiscal year 2018, as respectively, well as further information regarding AG KPMG and KPMG Audit Committee.” Auditors” and “Report of the is set out below under the heading “Independent LLP, and statement, a make to opportunity the have will Meeting, General Annual the at present be will AG KPMG of Members will be available to respond to appropriate questions you may ask. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation vote a recommends Directors of Board Our for each firm, accounting public registered independent Logitech’s as LLP KPMG of appointment the of ratification the and the Accounting Firm for Fiscal Year 2019 2019 Year Accounting Fiscal Firm for 28 28 related expenses, 401(k) savings plan matching contributions, premiums for group term life insurance and long-term disability insurance, employer’s contribution to medical premiums, relocation expenses, or defined benefit extended pension business plan employment travel-related contributions, accrual of of components these estimated of all provide not employer's does generally Company The contribution awards. other and Medicare, to and security social other compensation to all executives each year, but the formulated to provide cover these flexibility compensation to components as applicable. proposed maximum amount of compensation has been Agenda Proposals and Explanations and Proposals Agenda Shareholders are approving the maximum aggregate amount of compensation set forth in the proposal. The assumptions The proposal. the in forth set compensation of amount aggregate maximum the approving are Shareholders set forth in this explanation are based on the decisions. Company’s The Company current may redesign expectations its compensation about plans or future make Invitation alternative compensation compensation the decisions in plans within Report the and Compensation the in maximum disclosed be aggregate will 2020 amount year fiscal of for compensation Team Management approved Group the by of members shareholders. The actual compensation awarded to the Annual Meeting. General for the 2020 and Proxy Statement proposal alternative an submit will Directors of Board the shareholders, by proposal this on vote negative a of event the In to the same or a subsequent general meeting. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation proposal. the The Board of Directors recommends a vote “FOR” the approval of the in maximum aggregate amount of the compensation forth set as adjustment to subject 2020, year fiscal for 23,700,000 USD of Team Management Group the of • Other compensation of a maximum of USD 750,000. Other compensation may include tax preparation services and

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 29 29 the re-election of KPMG AG as auditors of Logitech International S.A. International Logitech of auditors as AG KPMG of re-election the “FOR” fiscal year ending March 31, 2019. Agenda Proposals and Explanations and Proposals Agenda and the ratification of the appointment of KPMG LLP as Logitech’s independent registered public accounting firm, each for each firm, accounting public registered independent Logitech’s as LLP KPMG of appointment the of ratification the and the Proposal The Board of Directors proposes that AG KPMG be re-elected as auditors of Logitech International S.A. for a one-year term and that the appointment of KPMG LLP as Logitech’s independent registered public accounting firm for fiscal year 2019be ratified. Explanation AG, KPMG upon recommendation of Audit the Committee of the Board, is proposed for re-election for a further year as assumed audit mandate its first for Logitech during AG fiscal year 2015. auditors for Logitech International KPMG S.A. The Audit Committee has also appointed KPMG the LLP, U.S. affiliate of registered Company’s public KPMG accounting firm AG, the for the fiscal as year ending March 31, as 2019 LLP for purposes of U.S. KPMG securities the law reporting. of appointment Company’s the independent ratify shareholders that require not do Incorporation of Articles Logitech’s independent registered public accounting firm. may, shareholders for However, ratification as a matter Committee of good corporate governance. If shareholders do not ratify the appointment, the Audit the Logitech ratified, is appointment the is if Even submitting LLP. KPMG retain to the whether reconsider will Committee appointment Audit of KPMG LLP to the in be would change a such that determines Committee the if year the during appointment the change discretion, its in best interests of Logitech and its shareholders. registered independent and auditors Company’s the LLP, KPMG and AG KPMG to Logitech by paid fees the on Information public accounting firm for fiscal year 2018, as respectively, well as further information regarding AG KPMG and KPMG Audit Committee.” Auditors” and “Report of the is set out below under the heading “Independent LLP, and statement, a make to opportunity the have will Meeting, General Annual the at present be will AG KPMG of Members will be available to respond to appropriate questions you may ask. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation vote a recommends Directors of Board Our Proposal 13 Proposal Re-election of KPMG AG as Logitech’s Auditors Appointment of and KPMG Ratification LLP as of Logitech’s Independent the Registered Public Accounting Firm for Fiscal Year 2019 2019 Year Accounting Fiscal Firm for 28 related expenses, 401(k) savings plan matching contributions, premiums for group term life insurance and long-term disability insurance, employer’s contribution to medical premiums, relocation expenses, or defined benefit extended pension business plan employment travel-related contributions, accrual of of components these estimated of all provide not employer's does generally Company The contribution awards. other and Medicare, to and security social other compensation to all executives each year, but the formulated to provide cover these flexibility compensation to components as applicable. proposed maximum amount of compensation has been Agenda Proposals and Explanations and Proposals Agenda Shareholders are approving the maximum aggregate amount of compensation set forth in the proposal. The assumptions The proposal. the in forth set compensation of amount aggregate maximum the approving are Shareholders set forth in this explanation are based on the decisions. Company’s The Company current may redesign expectations its compensation about plans or future make Invitation alternative compensation compensation the decisions in plans within Report the and Compensation the in maximum disclosed be aggregate will 2020 amount year fiscal of for compensation Team Management approved Group the by of members shareholders. The actual compensation awarded to the Annual Meeting. General for the 2020 and Proxy Statement proposal alternative an submit will Directors of Board the shareholders, by proposal this on vote negative a of event the In to the same or a subsequent general meeting. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation proposal. the The Board of Directors recommends a vote “FOR” the approval of the in maximum aggregate amount of the compensation forth set as adjustment to subject 2020, year fiscal for 23,700,000 USD of Team Management Group the of • Other compensation of a maximum of USD 750,000. Other compensation may include tax preparation services and 31 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Board of Directors Independence Board of Directors The Board of Directors is elected by the shareholders and holds the ultimate decision-making authority within Logitech, except for those matters reserved by law or by Articles Logitech’s of Incorporation to its shareholders or those that are delegated to the executive Chairman the of vote the officers tie, a of event under the In meetings. the at the present members the of vote organizational majority a through resolutions regulations (also known as by-laws). The Board makes decides. Articles of Incorporation Logitech’s set the minimum number of directors at three. We had twelve members of the Board of Directors as of June 30, 2018. If all of the nominees to the Board presented in Proposal 8 are elected, the Board will have eleven members. The Board of Directors has determined that each of our directors and director nominees, other than Bracken Darrell and Guerrino De Luca, qualifies as independent in accordance with the published listing requirements of the Nasdaq Stock Market and Swiss corporate governance best practices guidelines. The Company’s independent directors and director Edouard Wendy Bugnion, Becker, nominees Sally Aebischer, include Davis, Patrick Sue Gove, Didier Hirsch, Neil Hunt, a includes definition independence Nasdaq The Lao. Marjorie and Yeh Lung Panayotopoulos, Dimitri Montgomery, types Neela various in engaged not has and company the of employee an not is director the that as such tests, objective of series subjective a made has Board the rules, Nasdaq by required further as addition, In company. the with dealings business of interfere would Board, the of opinion the in which, exist relationships no that director independent each to as determination determinations, these making In director. a of responsibilities the out carrying in judgment independent of exercise the with director’s each to regard with Company the and directors the by provided information discussed and reviewed directors the management. business and personal activities as they may relate to Logitech and Logitech’s 30 30 Agenda Proposals and Explanations and Proposals Agenda Proposal 14 Proposal Election of Etude Regina Wenger & Sarah Keiser-Wüger as Independent shareholders the of representative independent the that requires law Swiss Ordinance”, “Minder so-called the to Pursuant at ending term one-year a for Meeting General Annual each of occasion the on elected be Representative) (Independent Annual General Meeting. following the closing the of Proposal The Board of Directors proposes Annual General Meeting. Representative term ending for a one-year at the closing of the 2019 that Etude Regina Wenger & Sarah Explanation Keiser-Wüger be elected as Independent Shareholders may either represent their shares themselves or have them represented by a whether third or party, not a if each the In shareholder latter accordance is with may given shareholder, Swiss be a represented law, written at proxy. third-party a by or Keiser-Wüger, Sarah & Wenger Regina Etude Representative, Independent the by meeting general the based public notary respected a is Keiser-Wüger, Sarah & Wenger Regina Etude of principal a Wenger, Regina Ms. proxy. in Lausanne, Switzerland and is the Chairwoman Notaries. of the Swiss Federation of voting General requirements. independence strict satisfy must Representative Independent the law, corporate agenda and Swiss proposals Under to respect with shareholders of meeting general particular a to respect with given be can instructions items that have not been disclosed in the invitation general to the meeting. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation Our Board of Directors recommends a vote “FOR” Independent Representative. the election of Etude Regina Wenger & Sarah Keiser-Wüger as Representative

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 31 31 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Board of Directors Independence Board of Directors The Board of Directors has determined that each of our directors and director nominees, other than Bracken Darrell and Guerrino De Luca, qualifies as independent in accordance with the published listing requirements of the Nasdaq Stock Market and Swiss corporate governance best practices guidelines. The Company’s independent directors and director Edouard Wendy Bugnion, Becker, nominees Sally Aebischer, include Davis, Patrick Sue Gove, Didier Hirsch, Neil Hunt, a includes definition independence Nasdaq The Lao. Marjorie and Yeh Lung Panayotopoulos, Dimitri Montgomery, types Neela various in engaged not has and company the of employee an not is director the that as such tests, objective of series subjective a made has Board the rules, Nasdaq by required further as addition, In company. the with dealings business of interfere would Board, the of opinion the in which, exist relationships no that director independent each to as determination determinations, these making In director. a of responsibilities the out carrying in judgment independent of exercise the with director’s each to regard with Company the and directors the by provided information discussed and reviewed directors the management. business and personal activities as they may relate to Logitech and Logitech’s The Board of Directors is elected by the shareholders and holds the ultimate decision-making authority within Logitech, except for those matters reserved by law or by Articles Logitech’s of Incorporation to its shareholders or those that are delegated to the executive Chairman the of vote the officers tie, a of event under the In meetings. the at the present members the of vote organizational majority a through resolutions regulations (also known as by-laws). The Board makes decides. Articles of Incorporation Logitech’s set the minimum number of directors at three. We had twelve members of the Board of Directors as of June 30, 2018. If all of the nominees to the Board presented in Proposal 8 are elected, the Board will have eleven members. 30 Agenda Proposals and Explanations and Proposals Agenda Proposal 14 Proposal Election of Etude Regina Wenger & Sarah Keiser-Wüger as Independent shareholders the of representative independent the that requires law Swiss Ordinance”, “Minder so-called the to Pursuant at ending term one-year a for Meeting General Annual each of occasion the on elected be Representative) (Independent Annual General Meeting. following the closing the of Proposal The Board of Directors proposes Annual General Meeting. Representative term ending for a one-year at the closing of the 2019 that Etude Regina Wenger & Sarah Explanation Keiser-Wüger be elected as Independent Shareholders may either represent their shares themselves or have them represented by a whether third or party, not a if each the In shareholder latter accordance is with may given shareholder, Swiss be a represented law, written at proxy. third-party a by or Keiser-Wüger, Sarah & Wenger Regina Etude Representative, Independent the by meeting general the based public notary respected a is Keiser-Wüger, Sarah & Wenger Regina Etude of principal a Wenger, Regina Ms. proxy. in Lausanne, Switzerland and is the Chairwoman Notaries. of the Swiss Federation of voting General requirements. independence strict satisfy must Representative Independent the law, corporate agenda and Swiss proposals Under to respect with shareholders of meeting general particular a to respect with given be can instructions items that have not been disclosed in the invitation general to the meeting. Approve Proposal Requirement to Voting counting not Meeting, General Annual the at proxy by or person in cast votes the of majority a of vote “FOR” affirmative The abstentions. Recommendation Our Board of Directors recommends a vote “FOR” Independent Representative. the election of Etude Regina Wenger & Sarah Keiser-Wüger as Representative 33

an MBA from Harvard from University. an MBA is a Professor in the School of Computer and Communication Sciences at the joined Logitech as President April in 2012 and became Chief Executive Officer in 48 Years Old Director since 2015 Director since Old Years 48 is the former Chief Executive Officer of BT Wholesale, a division of BT Group responsible Group BT of division a Wholesale, BT of Officer Executive Chief former the is 55 Years Old Director since 2013 Years 55 64 Years Old Director since 2007 Years 64 In addition to being the President and Chief Executive Officer of the Company, Mr. Darrell brings Darrell brings Mr. Company, of the Chief Executive Officer In addition to being the President and marketing and global experience to the Board. senior leadership, consumer brand Davis Sally Bracken Darrell January 2013. Prior to joining Logitech, Mr. Darrell President, served Vice as Senior President Executive of Whirlpool been Vice President Corporation, a home appliance manufacturer and marketing had of Darrell Whirlpool Mr. EMEA and Previously, 2012. March to 2009 January from company, Darrell Mr. 2008, May to 2002 From 2009. January to 2008 May from EMEA Whirlpool of Operations the as recently most company, brand consumer a Company), Gamble & Procter (The P&G with was various in served Darrell Mr. 2002, in P&G rejoining to Prior subsidiary. GmbH Braun its of President executive and managerial positions with General Electric Company from 1997 to 2002, with P&G from 1991 to 1997, and with PepsiCo Inc. from 1987 to 1989. Darrell Mr. holds a degree BA from Hendrix College and globally, providers service and carriers to bandwidth and services telecommunications providing for since BT within a position roles she held executive from 2007 senior until she held She retired August was in 2011. previously the Chief had Portfolio Officer She 2007. to 2005 from Telecom British of joining the company in 1999, including President, and Global Internet Group Products, Global Director, and Services 2002 to from 2001 from 2002 Hosting Applications to Ignite BT President, 2005, Communications Mercury and States Multimedia United from the 1999 in to Atlantic 2001. Before Bell joining including Ms. BT, companies, Davis held communications leading roles in several major mobile global a Group, Telenor of Boards the on serves currently Davis infrastructure Ms. Kingdom. United the in optic fibre a PLC, Holdings Infrastructure CityFibre company, services communications company, and Arqiva Group Limited, a leading UK communications infrastructure company. She degree is a Fellow of University from and College, London. holds a BA Ms. Davis’ experience as a Chief Executive of Board a leading the European provides telecommunications knowledge, company, portfolio product and strategy product technology significant her and and financial management. product strategy, with expertise in senior leadership, technology, Ms. Davis currently is Chair The Board of Directors has determined that she is an independent Director. Committee. of the Nominating Meeting. General Committee Annual 2018 the at and re-election for stand to not and serves retire to decided has Davis on Ms. the Compensation École Polytechnique Fédérale de Lausanne (EPFL) and, since January 2017, also the Vice President Vice the also Edouard 2017, Bugnion January since and, (EPFL) Lausanne de Fédérale Polytechnique École center for Information Systems data at the EPFL. enterprise Prior to August Bugnion joining of 2012, was the in Dr. a EPFL developer a Inc., Systems, Nuova of Officer Technology Chief and Founder solutions, from October 2005 to May 2008. Nuova Systems was funded by and acquired by Cisco He services. and products networking Protocol-based Internet in leader worldwide a Inc., Systems, Founder a was Bugnion Dr. joined Nuova, to Cisco Prior 2011. as June to 2008 a May from Vice Unit Business President Virtualization many held he and where services, and Chief software virtualization and Technology cloud Officer of provider leading of a VMware, of Cisco’s Server Access and positions, including from Officer, Chief 1998 Technology to 2005. Bugnion Dr. currently serves on the Boards of InnoSuisse, a Swiss agency for innovation promotion (a a is and museum) (a l'Hermitage de Fondation the of and Council) Federal Swiss the by appointed position to which he was member of the Assembly of the International Committee of the from Red Ph.D. a and Cross. University Stanford from Dr. degree Bugnion Master’s a Zürich, holds ETH from Diplom an Engineering all in Computer Science. Stanford University, experience his and computing, cloud and software technology, in expertise significant Bugnion’s Dr. founding technology companies and as a member of the senior leadership of leading technology companies, provides the Board with technology and product strategy expertise as well as leadership. senior Dr. Bugnion currently is Chair determined that he is an independent Director. of the Compensation Committee. The Board of Directors has Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Sally Davis Former Chief Executive Officer, Wholesale BT British national Edouard Bugnion Bugnion Edouard President Vice for Information Systems and Professor, School of Computer and Communication Sciences, EPFL Swiss national Bracken Darrell President and Chief Executive Officer, Logitech International S.A. U.S. national 32 32 is the former President of the École Polytechnique Fédérale de Lausanne (EPFL), Lausanne de Fédérale Polytechnique École the of President former the is 63 Years Old Director since 2016 Old Years 63 52 Years Old Director since 2017 Years 52 manufacturer and retailer of brand name clothing, a position she held from October 2013 to September to 2013 October from held she position Wendy a clothing, Becker name brand of is retailer and the manufacturer former telecommunications Chief global a Plc, Executive Group 2015. She Vodafone was Officer the of Chief Operating Officer Officer of Marketing of Jack Chief Wills August from Group 2012 as to Jack October served 2013. Ms. Becker Wills Limited, a from September company, 2009 to British-based Prior January to she 2011. Vodafone, served as the Managing mobile telephony, voice broadband, line fixed of provider a McKinsey Group, at Telecom practice consumer TalkTalk the of Director Kingdom United the for responsible Partner a services, television and roles brand and marketing various in and firm, consulting Great management international of an director Company, non-executive & a as serves currently Becker Ms. Company. Gamble & Procter The at Oxford the of Committee Finance the Portland of Estates member Plc, a England, a Service) British Health property (National development NHS and of investment director company, a non-executive Chairman University Press, a non-executive director of Said Business School at Oxford University, museum a Museum, Design the of Trustee a and Dartmouth charity, care from social largest UK's Economics the Barnardo's, of in degree BA a holds She form. every in design contemporary to devoted Graduate School of Business. Stanford University’s from College and an MBA Ms. Becker brings senior leadership, well as strategic, consumer TalkTalk and McKinsey brand Vodafone, Wills, Jack at positions her from Board the to experience marketing, telecom and design as her board and trustee positions. The Board of Directors has determined that she is an independent Director. Patrick Aebischer Patrick a position to which he was nominated by the Swiss Federal Council and that he held from Director March and 2000, since EPFL the at Neurosciences in Professor a 2016, December through 2000 was He 2000. since EPFL Institute, Mind Brain the at Laboratory Disease Neurodegenerative the of Aebischer Dr. positions, these to Prior 2012. and 2008 2004, in EPFL the of President as re-elected was a Professor and Director of the Surgical Research Division and Gene Therapy Center at the University Hospital of Lausanne, Chairman of the Section Cellular of Technology of the Artificial Division Organs, biotech of three of Biomaterials founder the Biology also is Aebischer and and Medicine wellness Dr. and at University. Brown health at sciences Brown medical nutrition, in positions University, leading and a held S.A., other Nestlé of Boards Chairman the as on well serves as currently industries, He companies. life-science the to supplier leading a Ltd., Group Lonza and company, University the from M.D. a holds Aebischer Dr. Fund. Venture Novartis the of Board Advisory the of of Geneva and University of Fribourg, Switzerland, Honorary and three Doctorate degrees. and view world global a expertise, technology and innovation leadership, senior brings founding Aebischer experience his EPFL, Dr. the of President the as role his from Board the to experience strategic technology companies, and as a member of the senior leadership leading of companies. Swiss determined has Directors of Board The Committee. Nominating the on serves currently Aebischer Dr. that he is an independent Director. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Former Chief Executive Officer of Jack Wills Limited British, U.S. and Italian national Wendy Becker Wendy Former President, Swiss Federal Institute of Technology (EPFL) Swiss national Patrick Aebischer Aebischer Patrick The members of the Board of Directors, including their principal occupation, business experience, and qualifications, are set out below. Members of the Board of Directors the Board Members of

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 33 33

is a Professor in the School of Computer and Communication Sciences at the joined Logitech as President April in 2012 and became Chief Executive Officer in 48 Years Old Director since 2015 Director since Old Years 48 is the former Chief Executive Officer of BT Wholesale, a division of BT Group responsible Group BT of division a Wholesale, BT of Officer Executive Chief former the is 55 Years Old Director since 2013 Years 55 expertise in senior leadership, technology, product strategy, and financial management. product strategy, expertise in senior leadership, technology, 64 Years Old Director since 2007 Years 64 Ms. Davis currently is Chair The Board of Directors has determined that she is an independent Director. Committee. of the Nominating Meeting. General Committee Annual 2018 the at and re-election for stand to not and serves retire to decided has Davis on Ms. the Compensation Sally Davis Sally globally, providers service and carriers to bandwidth and services telecommunications providing for since BT within a position roles she held executive from 2007 senior until she held She retired August was in 2011. previously the Chief had Portfolio Officer She 2007. to 2005 from Telecom British of joining the company in 1999, including President, and Global Internet Group Products, Global Director, and Services 2002 to from 2001 from 2002 Hosting Applications to Ignite BT President, 2005, Communications Mercury and States Multimedia United from the 1999 in to Atlantic 2001. Before Bell joining including Ms. BT, companies, Davis held communications leading roles in several major mobile global a Group, Telenor of Boards the on serves currently Davis infrastructure Ms. Kingdom. United the in optic fibre a PLC, Holdings Infrastructure CityFibre company, services communications company, and Arqiva Group Limited, a leading UK communications infrastructure company. She degree is a Fellow of University from and College, London. holds a BA Ms. Davis’ experience as a Chief Executive of Board a leading the European provides telecommunications knowledge, company, portfolio product and strategy product technology significant her and with Bracken Darrell January 2013. Prior to joining Logitech, Mr. Darrell President, served Vice as Senior President Executive of Whirlpool been Vice President Corporation, a home appliance manufacturer and marketing had of Darrell Whirlpool Mr. EMEA and Previously, 2012. March to 2009 January from company, Darrell Mr. 2008, May to 2002 From 2009. January to 2008 May from EMEA Whirlpool of Operations the as recently most company, brand consumer a Company), Gamble & Procter (The P&G with was various in served Darrell Mr. 2002, in P&G rejoining to Prior subsidiary. GmbH Braun its of President executive and managerial positions with General Electric Company from 1997 to 2002, with P&G from 1991 to 1997, and with PepsiCo Inc. from 1987 to 1989. Darrell Mr. holds a degree BA from Harvard from University. Hendrix College and an MBA Darrell brings Mr. Company, of the Chief Executive Officer In addition to being the President and marketing and global experience to the Board. senior leadership, consumer brand École Polytechnique Fédérale de Lausanne (EPFL) and, since January 2017, also the Vice President Vice the also Edouard 2017, Bugnion January since and, (EPFL) Lausanne de Fédérale Polytechnique École center for Information Systems data at the EPFL. enterprise Prior to August Bugnion joining of 2012, was the in Dr. a EPFL developer a Inc., Systems, Nuova of Officer Technology Chief and Founder solutions, from October 2005 to May 2008. Nuova Systems was funded by and acquired by Cisco He services. and products networking Protocol-based Internet in leader worldwide a Inc., Systems, Founder a was Bugnion Dr. joined Nuova, to Cisco Prior 2011. as June to 2008 a May from Vice Unit Business President Virtualization many held he and where services, and Chief software virtualization and Technology cloud Officer of provider leading of a VMware, of Cisco’s Server Access and positions, including from Officer, Chief 1998 Technology to 2005. Bugnion Dr. currently serves on the Boards of InnoSuisse, a Swiss agency for innovation promotion (a a is and museum) (a l'Hermitage de Fondation the of and Council) Federal Swiss the by appointed position to which he was member of the Assembly of the International Committee of the from Red Ph.D. a and Cross. University Stanford from Dr. degree Bugnion Master’s a Zürich, holds ETH from Diplom an Engineering all in Computer Science. Stanford University, experience his and computing, cloud and software technology, in expertise significant Bugnion’s Dr. founding technology companies and as a member of the senior leadership of leading technology companies, provides the Board with technology and product strategy expertise as well as leadership. senior Dr. Bugnion currently is Chair determined that he is an independent Director. of the Compensation Committee. The Board of Directors has Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Sally Davis Former Chief Executive Officer, Wholesale BT British national President and Chief Executive Officer, Logitech International S.A. U.S. national Bracken Darrell Edouard Bugnion Bugnion Edouard President Vice for Information Systems and Professor, School of Computer and Communication Sciences, EPFL Swiss national 32 a non-executive director of Said Business School at Oxford University, Chairman a non-executive director of Said Business School at Oxford University, is the former President of the École Polytechnique Fédérale de Lausanne (EPFL), Lausanne de Fédérale Polytechnique École the of President former the is 63 Years Old Director since 2016 Old Years 63 52 Years Old Director since 2017 Years 52 of Barnardo's, the UK's largest social care charity, and a Trustee of the Design Museum, a museum a Museum, Design the of Trustee a and Dartmouth charity, care social from largest UK's Economics the Barnardo's, of in degree BA a holds She form. every in design contemporary to devoted Graduate School of Business. Stanford University’s from College and an MBA Ms. Becker brings senior leadership, well as strategic, consumer TalkTalk and McKinsey brand Vodafone, Wills, Jack at positions her from Board the to experience marketing, telecom and design as her board and trustee positions. The Board of Directors has determined that she is an independent Director. manufacturer and retailer of brand name clothing, a position she held from October 2013 to September to 2013 October from held she position Wendy a clothing, Becker name brand of is retailer and the manufacturer former telecommunications Chief global a Plc, Executive Group 2015. She Vodafone was Officer the of Chief Operating Officer Officer of Marketing of Jack Chief Wills August from Group 2012 as to Jack October served 2013. Ms. Becker Wills Limited, a from September company, 2009 to British-based Prior January to she 2011. Vodafone, served as the Managing mobile telephony, voice broadband, line fixed of provider a McKinsey Group, at Telecom practice consumer TalkTalk the of Director Kingdom United the for responsible Partner a services, television and roles brand and marketing various in and firm, consulting Great management international of an director Company, non-executive & a as serves currently Becker Ms. Company. Gamble & Procter The at Oxford the of Committee Finance the Portland of Estates member Plc, a England, a Service) British Health property (National development NHS and of investment director company, a non-executive University Press, Patrick Aebischer Patrick a position to which he was nominated by the Swiss Federal Council and that he held from Director March and 2000, since EPFL the at Neurosciences in Professor a 2016, December through 2000 was He 2000. since EPFL Institute, Mind Brain the at Laboratory Disease Neurodegenerative the of Aebischer Dr. positions, these to Prior 2012. and 2008 2004, in EPFL the of President as re-elected was a Professor and Director of the Surgical Research Division and Gene Therapy Center at the University Hospital of Lausanne, Chairman of the Section Cellular of Technology of the Artificial Division Organs, biotech of three of Biomaterials founder the Biology also is Aebischer and and Medicine wellness Dr. and at University. Brown health at sciences Brown medical nutrition, in positions University, leading and a held S.A., other Nestlé of Boards Chairman the as on well serves as currently industries, He companies. life-science the to supplier leading a Ltd., Group Lonza and company, University the from M.D. a holds Aebischer Dr. Fund. Venture Novartis the of Board Advisory the of of Geneva and University of Fribourg, Switzerland, Honorary and three Doctorate degrees. and view world global a expertise, technology and innovation leadership, senior brings founding Aebischer experience his EPFL, Dr. the of President the as role his from Board the to experience strategic technology companies, and as a member of the senior leadership leading of companies. Swiss determined has Directors of Board The Committee. Nominating the on serves currently Aebischer Dr. that he is an independent Director. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Patrick Aebischer Aebischer Patrick Becker Wendy Former Chief Executive Officer of Jack Wills Limited British, U.S. and Italian national Former President, Swiss Federal Institute of Technology (EPFL) Swiss national Members of the Board of Directors the Board Members of The members of the Board of Directors, including their principal occupation, business experience, and qualifications, are set out below. since . He serves on y echnologies, Inc., echnologies, T oulouse University and an oulouse University T well as senior leadership. aleo Inc., Gemplus S.C.A., SGS-Thomson aleo Inc., Gemplus ork Stock Exchange (NYSE)-listed global supplier Exchange (NYSE)-listed ork Stock of Y 35 Hirsch brings senior leadership, finance (including U.S. GAAP), GAAP), leadership, finance (including U.S. brings senior Hirsch Durham, U.K.

of a leading public technology company, and with significant finance and with public a leading technology company, of

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement since . He serves on y echnologies, Inc., echnologies, T oulouse University and an oulouse University T well as senior leadership. aleo Inc., Gemplus S.C.A., SGS-Thomson aleo Inc., Gemplus ork Stock Exchange (NYSE)-listed global supplier Exchange (NYSE)-listed ork Stock of Y 35 35 Hirsch brings senior leadership, finance (including U.S. GAAP), GAAP), leadership, finance (including U.S. brings senior Hirsch Durham, U.K.

of a leading public technology company, and with significant finance and with public a leading technology company, of

University of and Asia Pacific, Mr. and Hirsch worked positions in finance with V 67 Years Old Director since 2012 Old Director Years 67 currently is Chair of the Audit Committee and serves on the Nominating Committee. The Nominating the serves on Committee. Committee and Audit Chair of the . Hirsch currently is the Board of Knowles Corporation, a New of Knowles Corporation, a New the Board serving the specialty component solutions, audio processing, and advanced micro-acoustic, and industrial aerospace electronics, communications, consumer medical, military, mobile markets. degree in Computer Sciences from Hirsch holds an MS Mr. health of Curai, a venture-backed technology company building Neil Hunt is the Chief Executive Officer technology to apply artificial intelligence and machine learning to primary care medicine. He has Product was the Chief Hunt Curai, Dr. January 2018. Prior to since his current position served in service TV largest Internet the world’s a of Netflix, Inc., California-based company offering Officer operating in more than 50 countries worldwide. was with Netflix He from 1999 through July 2017, Prior implementation and operation the technology at Netflix. and was responsible for the design, of Netflix from President, Internet Engineering at Vice he served as Officer, becoming Chief Product to Hunt was Director of Engineering Rational for Software, a to 1999, Dr. 1997 1999 to 2002. From California-based software and maker of development tools, in engineering he served roles at Hunt currently serves on the Board of Roku, Inc., a predecessor companies from 1991 to 1997. Dr. through televisions. audio services or streaming video allow players that of seller manufacturer and Aberdeen, U.K. and a Bachelors He holds a Doctorate in Computer of Science from the University degree from the and his product development leadership and strategy, significant expertise in technology, Hunt’s Dr. provides the experience as a member of the senior leadership a leading of digital delivery company, global expertise as product strategy and Board with technology, is the Lead Independent Hunt currently Director and serves on the Compensation Committee and Dr. The Board of Directors has determined that he is an independent Director. the Nominating Committee. is the Senior Vice President and Chief Financial Officer of Agilent of President and Chief Financial Officer Vice is the Senior Didier Hirsch a global leader in life sciences, diagnostics and applied chemical He has served markets. in his Agilent current position July since served 2010 and in various senior finance with positions Finance of Director as served and 1989, joined Hewlett-Packard in had Company Hirsch Mr. 1999. 1996 from Africa (EMEA) to 1999, Administration of Hewlett-Packard Europe, Middle and East and and Director Asia Pacific from 1993 to 1996, Administration of Hewlett-Packard and Director of Finance Hewlett-Packard Administration of to Hewlett-Packard, France from 1989 to 1993. Prior of Finance and Mr. Compan Motor Ford and Corporation Bendix S.A., Holding I.B.H. Microelectronics, Board of Directors has determined that he is an independent Director. MS degree in Industrial Administration from Purdue University. MS degree in Industrial As Chief Financial Officer technology expertise developed manufacturing several decades at over companies in the U.S.A., and EMEA technology and global experience to the Board. Mr 56 Years Old Director since 2010 Years 56 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Chief Executive Officer, Curai U.K. and U.S. national Neil Hunt Didier Hirsch Didier Senior Vice and President Chief Financial Agilent Officer, Technologies, Inc. French and U.S. national ailored a retail holding Brands, Inc., T 34 the Board. Engineering from the University Italy. of Rome, exas at Austin. 65 Years Old Director since 1998 Old Director Years 65 As a member of other public company boards, Ms. Gove also provides cross-board April 2007 to March 2008 and for Alvarez and Marsal Business Consulting, L.L.C. from Alvarez and Marsal Business Consulting, L.L.C. for March 2008 and April 2007 to April 2006 to March 2007. Ms. Gove served Zale Corporation, a leading specialty jewelry retailer, leading specialty jewelry a Corporation, served Zale Gove 2007. Ms. March April 2006 to August 2002 to March 2006, as from 1980 to 2006, including Officer from as Chief Operating member from Board a 2003 and as February to December 1997 from Chief Financial Officer a Iconix Brand Group, Boards of serves on the March 2006. She currently September 2004 to and company, marketing licensing and consumer brand the Accounting from degree in Gove holds a BBA Ms. various men's apparel stores. company for T University of has significant executive experience with international Gove retail, marketing, merchandising Ms. our Board senior leadership, to and global operations, and brings strategic and financial experience. experience. determined that Directors has Board of The Committee. Audit the on currently serves Gove Ms. she is an independent Director. Annual General Meeting. Ms. Gove has decided not to stand for re-election at the 2018 is the President of Excelsior Advisors, LLC, a retail consulting and advisory firm. Prior and advisory firm. retail consulting a LLC, Advisors, Excelsior President of the is Gove Sue August 2014, Ms. Gove was the President and Chief Executive Advisors in to founding Excelsior Officer of Golfsmith International, a multi-channel specialty retailer, from October 2012 golf to Chief as Golfsmith served also She 2014. April to 2012 February from President and 2014 April March from Chief Financial Officer 2012, as October September 2008 to from Operating Officer Prior 2012. February September 2008 to President from Executive Vice 2012 and as July 2009 to was an independent consultant, serving specialty retail and private Gove Ms. joining Golfsmith, to Capital Management, Prentice included consultancy for which 2008, to 2006 from clients equity LP from Guerrino Guerrino De Luca has served as Chairman Logitech of the Board since of Directors January 2008. January and as to 2013 April 2012 from Executive Officer Chief served as Logitech’s De Luca Mr. De Luca Mr. April 2012. Previously, to 2011 July from Officer Chief Executive and acting President from February 1998, when he joined the President and Chief Executive Officer served as Logitech’s President De Luca served as Executive Vice to January 2008. Prior to joining Logitech, Mr. Company, electronics and computer company, a consumer Inc., Computer, Apple Marketing for Worldwide of personal a U.S. and as President of Claris Corporation, September 1997, to from February 1997 De Luca from May 1994 1997. to February to joining Prior Claris, Mr. computing software vendor, Luca De currently serves United and in Europe. Mr. Apple in the States held various positions with He on the Board of Nielsen plc, a global Holdings information, data and measurement company. Electronic holds a Laurea degree in De Luca brings significant senior Mr. Chairman and former Chief Officer, Executive As Logitech’s marketing and global experience the Board and a deep knowledge to strategy, leadership, industry, commitment Logitech, of, passion for and to its people and products. its De Luca currently is Chairman of Mr. 59 Years Old Director since 2015 Years 59 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate President, Excelsior Advisors, LLC U.S. national Guerrino De Luca De Luca Guerrino Chairman, Logitech International S.A. Italian and U.S. national Sue Gove 37 is the Managing Director of Enspire Capital, a Singapore-based venture capital and private and capital venture Singapore-based a Capital, Enspire of Director Managing the is Yeh Lung investments mobile and internet telecommunications, and media technology, on focusing firm equity 2004, in Capital Enspire joining to Prior Singapore. and Kong Hong Taiwan, China, Valley, Silicon in Dr. Yeh was the Vice President of Business Development at Centrality leading provider of GPS Communications, semiconductor platforms for high-functional Inc., mobile devices, from 2003 a to integrated of provider a Inc., Communications Pico of Officer Executive Chief and Founder a 2004, President Bluetooth and mobile Internet access and networking solutions, from 1999 to 2003, Vice Inc., Technology, of the Communication and Internet ShareVision Division of Creative of Labs Ltd., a leader in Officer digital entertainment Executive Chief and Founder a 1998, to 1993 from products, a desktop videoconferencing technology Yeh Dr. 1991. to 1985 company, from Kodak, and NYNEX Inc., Apple at positions technical and from management 1991 to 1993, and holds a BSEE served in Communication Engineering from National University Chiao-Tung and a in Ph.D. in various Electrical Engineering of Wisconsin – Madison. from the University has founder extensive investment and senior Yeh leadership experience, the as a Asia Dr. venture capitalist in as also and communications, and wireless multimedia, on focused States United the and senior Board the to brings He companies. technology several of Officer Executive Chief former and leadership, business development and global expertise. The Board of Audit Directors Committee. has determined that he is currently serves on the Yeh Dr. an independent Director. the Board of Directors should be sent to the above address. 62 Years Old Director since 2015 Director since Old Years 62 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Elections to the Board of Directors Elections Board to the Lung Yeh Yeh Lung Managing Director, Enspire Capital U.S. national Other than the current employment and involvement noted above, no other Logitech Board member currently has material has currently member Board Logitech other no above, noted involvement and employment current the than Other supervisory, management, or advisory functions outside Logitech. None of the Company’s directors functions or political posts. holds any official proposals The Directors. of Board the of proposal upon Shareholders, of Meeting General Annual the at elected are Directors of the Board of Directors are made following the Nominating recommendations Committee. of Nominees Shareholder Recommendations and Articles Under of our Incorporation, one or more registered shareholders who together represent shares representing at may francs Swiss million one of value par aggregate an (ii) or capital share issued our of percent one (i) of lesser the least Board the to election for nominee a including shareholders, of meeting a of agenda the on placed be item an that demand received be and proposal the describe writing, in be must agenda meeting the on item an place to request A Directors. of by our Board of Directors at least 60 days prior to the date of the meeting. Demands by registered shareholders to place an item on the agenda of a meeting of shareholders should be International sent S.A., EPFL to: - Quartier Secretary de l’Innovation, to Daniel Borel the Innovation Board Center, 1015 Lausanne, of Switzerland, or Directors, c/o Logitech 94560, USA. company. Logitech 7700 Inc., Gateway Boulevard, Newark, CA the of shareholders as recognized are shareholders registered only Incorporation of Articles Company’s the Under As a result, beneficial shareholders do not have a right to place an item on the agenda of a meeting, regardless of the number of shares they hold. For information on how beneficial shareholders may become registered shareholders, see “Questions Answers and about the Logitech Annual 2018 General Meeting - If I am not a registered shareholder, can I attend and vote at the meeting?” If the agenda of a general meeting of shareholders includes an item calling for the election of directors, any registered shareholder may propose a candidate for election to the Board of Directors before or at the meeting. The Nominating Committee does not have a policy on consideration of recommendations for candidates to the Board of Directors from registered shareholders. recommendations such of consideration for policy formal a have to not appropriate it considers Committee Nominating The depending process, case-by-case a nature its by is Directors of Board the of members potential of evaluation the because on the composition of the Board at the time, the needs and status of the business of the and Company, the experience on recommendations such any consider would Committee Nominating the Accordingly, individual. the of qualification and a case-by-case basis in their discretion, and, if accepted for consideration, would evaluate any such properly submitted nominee in consideration of recommendations to the membership criteria set forth under “Board Composition” below. Shareholder 36 36 is a Senior Advisor at The Boston Consulting Group, a global management global a Group, Consulting Boston The at Advisor Senior a is 66 Years Old Director since 2014 Years 66 is the Chief Executive Officer of Crate & Barrel, a global home furnishings retailer. retailer. furnishings home global a Barrel, & Crate of Officer Executive Chief the is 43 Years Old Director since 2017 Old Director Years 43 Neela Montgomery Neela Board Executive the of Member a was Montgomery since Ms. 2017, August group, in role services that assuming to Prior and retail operating globally a GmbH, Group, Otto the at Retail Multichannel for store-based and e-commerce in operate that companies Group oversaw she where 2014 November and SportScheck and America North in Barrel & Crate of Chair Executive as serving as well as retail General UK the was Montgomery Ms. Group, Otto the joining to Prior Europe. Central in Frankonia Plc, one largest of retailers, the from world’s June Merchandise Director on the Tesco UK Board of 2012 to June 2014, supervising diverse areas such as Home, Electronics & Entertainment from a since multichannel 2002, perspective. including She as served UK at Tesco E-Commerce Director from March to 2011 December 2012 and as Chief Malaysia Merchant from for Tesco July 2007 to Barrel). & Crate (dba Inc. Designs, Euromarket of Board the on serves Montgomery Ms. 2011. May studied having INSEAD from MBA an holds and University Oxford at literature English studied She in France and Singapore. Ms. Montgomery brings senior leadership, multichannel retail, e-commerce, home electronics and global experience to the Board from her positions Asia in America, and Pacific North EMEA at the Tesco. Group Otto and The Board of Directors has is an independent determined that she Director. Panayotopoulos Dimitri consulting firm. Prior to joining The Boston Consulting Group in April served with The 2014, Procter & Mr. Gamble Panayotopoulos Company (“P&G”), a consumer brand from company, 1977 to Officer Executive Chief & Chairman the to Advisor and Chairman Vice as served he P&G, At 2014. to 2011 May from Units Business Global of Chairman Vice 2014, January to 2013 July from P&G at July 2013, Vice Chairman of Global Household Care Group from July 2007 1999 President to from May China of President-Greater 2011, Group Global and 2004, Fabric July to Care 2001 July from from Africa July and 2004 East Middle to Europe, July 2007, President of Central and Eastern with other positions executive, managerial and various Panayotopoulos served in Mr. 2001. July to the and Egypt Switzerland), (including Europe in advertising and management brand sales, in P&G Far East from 1977 to 1999. He serves p.l.c., on a the London Board American of Tobacco British from degree BA a holds Panayotopoulos Mr. company. tobacco global (LSE)-listed Exchange Stock U.K. Sussex University, Mr. Panayotopoulos brings senior leadership, strategic, financial, consumer brand marketing and global experience to the Board from his former leadership positions with P&G in a broad spectrum of regions. has Directors of Board The Committee. Compensation the on serves currently Panayotopoulos Mr. determined that he is an independent Director. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Dimitri Panayotopoulos Dimitri Panayotopoulos Senior Advisor, Senior The Boston Consulting Group U.K. national Chief Executive Chief Executive of Crate Officer & Barrel British national Neela Montgomery Montgomery Neela

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 37 37 is the Managing Director of Enspire Capital, a Singapore-based venture capital and private and capital venture Singapore-based a Capital, Enspire of Director Managing the is Yeh Lung investments mobile and internet telecommunications, and media technology, on focusing firm equity 2004, in Capital Enspire joining to Prior Singapore. and Kong Hong Taiwan, China, Valley, Silicon in Dr. Yeh was the Vice President of Business Development at Centrality leading provider of GPS Communications, semiconductor platforms for high-functional Inc., mobile devices, from 2003 a to integrated of provider a Inc., Communications Pico of Officer Executive Chief and Founder a 2004, President Bluetooth and mobile Internet access and networking solutions, from 1999 to 2003, Vice Inc., Technology, of the Communication and Internet ShareVision Division of Creative of Labs Ltd., a leader in Officer digital entertainment Executive Chief and Founder a 1998, to 1993 from products, a desktop videoconferencing technology Yeh Dr. 1991. to 1985 company, from Kodak, and NYNEX Inc., Apple at positions technical and from management 1991 to 1993, and holds a BSEE served in Communication Engineering from National University Chiao-Tung and a in Ph.D. in various Electrical Engineering of Wisconsin – Madison. from the University has founder extensive investment and senior Yeh leadership experience, the as a Asia Dr. venture capitalist in as also and communications, and wireless multimedia, on focused States United the and senior Board the to brings He companies. technology several of Officer Executive Chief former and leadership, business development and global expertise. The Board of Audit Directors Committee. has determined that he is currently serves on the Yeh Dr. an independent Director. the Board of Directors should be sent to the above address. 62 Years Old Director since 2015 Director since Old Years 62 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Elections to the Board of Directors Elections Board to the Lung Yeh Yeh Lung Managing Director, Enspire Capital U.S. national Directors are elected at the Annual General Meeting of Shareholders, upon proposal of the Board of Directors. The proposals The Directors. of Board the of proposal upon Shareholders, of Meeting General Annual the at elected are Directors of the Board of Directors are made following the Nominating recommendations Committee. of Nominees Shareholder Recommendations and Articles Under of our Incorporation, one or more registered shareholders who together represent shares representing at may francs Swiss million one of value par aggregate an (ii) or capital share issued our of percent one (i) of lesser the least Board the to election for nominee a including shareholders, of meeting a of agenda the on placed be item an that demand received be and proposal the describe writing, in be must agenda meeting the on item an place to request A Directors. of by our Board of Directors at least 60 days prior to the date of the meeting. Demands by registered shareholders to place an item on the agenda of a meeting of shareholders should be International sent S.A., EPFL to: - Quartier Secretary de l’Innovation, to Daniel Borel the Innovation Board Center, 1015 Lausanne, of Switzerland, or Directors, c/o Logitech 94560, USA. company. Logitech 7700 Inc., Gateway Boulevard, Newark, CA the of shareholders as recognized are shareholders registered only Incorporation of Articles Company’s the Under As a result, beneficial shareholders do not have a right to place an item on the agenda of a meeting, regardless of the number of shares they hold. For information on how beneficial shareholders may become registered shareholders, see “Questions Answers and about the Logitech Annual 2018 General Meeting - If I am not a registered shareholder, can I attend and vote at the meeting?” If the agenda of a general meeting of shareholders includes an item calling for the election of directors, any registered shareholder may propose a candidate for election to the Board of Directors before or at the meeting. The Nominating Committee does not have a policy on consideration of recommendations for candidates to the Board of Directors from registered shareholders. recommendations such of consideration for policy formal a have to not appropriate it considers Committee Nominating The depending process, case-by-case a nature its by is Directors of Board the of members potential of evaluation the because on the composition of the Board at the time, the needs and status of the business of the and Company, the experience on recommendations such any consider would Committee Nominating the Accordingly, individual. the of qualification and a case-by-case basis in their discretion, and, if accepted for consideration, would evaluate any such properly submitted nominee in consideration of recommendations to the membership criteria set forth under “Board Composition” below. Shareholder Other than the current employment and involvement noted above, no other Logitech Board member currently has material has currently member Board Logitech other no above, noted involvement and employment current the than Other supervisory, management, or advisory functions outside Logitech. None of the Company’s directors functions or political posts. holds any official 36 served in various executive, managerial and other positions with with other positions executive, managerial and various served in is a Senior Advisor at The Boston Consulting Group, a global management global a Group, Consulting Boston The at Advisor Senior a is 66 Years Old Director since 2014 Years 66 is the Chief Executive Officer of Crate & Barrel, a global home furnishings retailer. retailer. furnishings home global a Barrel, & Crate of Officer Executive Chief the is 43 Years Old Director since 2017 Old Director Years 43 Dimitri Panayotopoulos Dimitri consulting firm. Prior to joining The Boston Consulting Group in April served with The 2014, Procter & Mr. Gamble Panayotopoulos Company (“P&G”), a consumer brand from company, 1977 to Officer Executive Chief & Chairman the to Advisor and Chairman Vice as served he P&G, At 2014. to 2011 May from Units Business Global of Chairman Vice 2014, January to 2013 July from P&G at July 2013, Vice Chairman of Global Household Care Group from July 2007 1999 President to from May China of President-Greater 2011, Group Global and 2004, Fabric July to Care 2001 July from from Africa July and 2004 East Middle to Europe, July 2007, President of Central and Eastern Panayotopoulos Mr. 2001. July to the and Egypt Switzerland), (including Europe in advertising and management brand sales, in P&G Far East from 1977 to 1999. He serves p.l.c., on a the London Board American of Tobacco British from degree BA a holds Panayotopoulos Mr. company. tobacco global (LSE)-listed Exchange Stock U.K. Sussex University, Mr. Panayotopoulos brings senior leadership, strategic, financial, consumer brand marketing and global experience to the Board from his former leadership positions with P&G in a broad spectrum of regions. has Directors of Board The Committee. Compensation the on serves currently Panayotopoulos Mr. determined that he is an independent Director. Neela Montgomery Neela Board Executive the of Member a was Montgomery since Ms. 2017, August group, in role services that assuming to Prior and retail operating globally a GmbH, Group, Otto the at Retail Multichannel for store-based and e-commerce in operate that companies Group oversaw she where 2014 November and SportScheck and America North in Barrel & Crate of Chair Executive as serving as well as retail General UK the was Montgomery Ms. Group, Otto the joining to Prior Europe. Central in Frankonia Plc, one largest of retailers, the from world’s June Merchandise Director on the Tesco UK Board of 2012 to June 2014, supervising diverse areas such as Home, Electronics & Entertainment from a since multichannel 2002, perspective. including She as served UK at Tesco E-Commerce Director from March to 2011 December 2012 and as Chief Malaysia Merchant from for Tesco July 2007 to Barrel). & Crate (dba Inc. Designs, Euromarket of Board the on serves Montgomery Ms. 2011. May studied having INSEAD from MBA an holds and University Oxford at literature English studied She in France and Singapore. Ms. Montgomery brings senior leadership, multichannel retail, e-commerce, home electronics and global experience to the Board from her positions Asia in America, and Pacific North EMEA at the Tesco. Group Otto and The Board of Directors has is an independent determined that she Director. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Neela Montgomery Montgomery Neela Dimitri Panayotopoulos Advisor, Senior The Boston Consulting Group U.K. national Chief Executive Chief Executive of Crate Officer & Barrel British national 201620172015Annual General Meeting 2018 2013Annual General Meeting 2018 2007Annual General Meeting 2018 1998Annual General Meeting 2018 2015Annual General Meeting 2018 2012Annual General Meeting 2018 2010Annual General Meeting 2018 2017Annual General Meeting 2018 2014Annual General Meeting 2018 2015Annual General Meeting 2018 Annual General Meeting 2018 General Meeting Annual 2018 Year First Year Appointed Expires Current Term Year 39 (1) (1) (2) (1) (1) (2) (1) (1) (1) (1) (1) (1) Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Name Aebischer Patrick Wendy Becker Wendy Edouard Bugnion Bracken Darrell Sally Davis Guerrino De Luca Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung Terms of Office of Directors of Office Terms Each director is elected individually by a separate vote of shareholders. Until 2012, each director was elected for a term director, each that such change a approved shareholders Meeting, General Annual 2012 Company’s the At years. three of starting with the directors elected at the Annual 2012 General Meeting, will be subject to a term Meeting. General of of Annual our one Ten year. 2018 the at Directors of Board the to re-election for presented being are directors current twelve have they after reelection seek not may Directors birthday. seventieth her or his until re-election for eligible is director Each reached 70 years of age or have served on the Board of Directors as a non-employee member for 12 years, unless the Board of Directors member adopts of A a the resolution Board to who the reaches contrary. 70 years of age or 12 years of service as a non-employee member of the Board of Directors during the term of his or her directorship may remain a a as office of term her or his with coincides Chairman as office of director’sterm A term. the of expiration the until director director indefinitely may be re-elected as Chairman, subject to the age and limits mentioned tenure above. A director. as of March 31, 2018 director are as follows: for each The year of appointment remaining and term of office (1) Non-executive member of the Board of Directors. (2) Executive member of the Board of Directors. 38 38 Directors who have served in senior leadership positions are important to Logitech, Because we are a consumer products company, directors who have brand marketing Knowledge of financial markets and accounting and financial reporting processes is important Senior Leadership Experience. because they bring experience and perspective in analyzing, shaping, and overseeing operational and policy issues at a senior level. the execution of important Financial Expertise. because it assists our directors in understanding, advising, and overseeing Logitech’s structure, financial reporting, and internal control of such activities. them ship products, software and hardware manufacture and develop we Because Expertise. Technical and Industry and software, and hardware in expertise retailers, and distributors electronics consumer major to sell and worldwide, experience in supply chain, manufacturing and consumer products is useful in understanding the opportunities and challenges of our business and in providing insight and oversight of management. Brand Marketing Expertise. experience can provide expertise and guidance as we seek to maintain and expand brand and product awareness and a positive reputation. Global Expertise. Because we are a global organization with research and development, and sales and other offices in many countries, directors with global expertise, particularly in Europe, the business and cultural perspective regarding many significant aspects of our business. U.S. and Asia, can provide a useful Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate \ to time to take into account changes in Logitech’s business and other trends, as well as the portfolio of skills and experience time from change and factors these to skills regard with Board the of of and Committee portfolio Nominating the of emphasis the and priorities The as well as trends, other and business Logitech’s in changes account into take to time to of current and prospective Board members. Listed below are key skills and experience note that biographies we directors’ The currently attribute. consider every possess important to director for each expect our not do directors We structure. to and business have current in light of our each director’s relevant experience, qualifications, and skills relative to this list. • • • • • Directors of Nominees for and Evaluation Identification Nominating Our director. for nominees evaluating and identifying for methods of variety a uses Committee Nominating Our Committee regularly assesses the appropriate size and composition of the Board of Directors, the needs of the Board of Directors and the respective Committees of the Board of Directors and the qualifications of candidates in light of these current management, shareholders, through Committee Nominating the of attention the to come may Candidates needs. information on solely based be may candidates these of evaluation The firms. search or Directors of Board the of members provided to the Committee or may also include discussions with persons familiar with the candidate, an interview of the candidates. review to parties third paid of use the including appropriate, deems Committee the actions other or candidate Board Composition The Nominating Committee is responsible for reviewing and assessing with the Board the appropriate skills, experience, Board. the on membership then-current the and business our of context the in members Board of sought background and The Nominating Committee has not formally established any specific, minimum qualifications that must be met by each candidate for the Board of Directors or same specific the have will director attributes, each that intend or qualities expect not do we or However, possess. skills to Directors of Board that the of members are necessary and for skills, one backgrounds, of or portfolio diverse more a of have will the members Board that expect we experience; and business skills, our background, concerning advice and oversight its in whole a as Board the assist to is diversity this of goal One experiences. and operations. Committee Nominating the by Board the of membership current the and candidates Board of assessment and review The understanding experience; management senior independence; as: such factors, diverse numerous includes Board the and of and experience representation; age; and gender diversity. and ethnic in technology, finance, marketing and operations; international experience and geographic

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 199820152012Annual General Meeting 2018 2010Annual General Meeting 2018 2017Annual General Meeting 2018 2014Annual General Meeting 2018 2015Annual General Meeting 2018 Annual General Meeting 2018 General Meeting Annual 2018 201620172015Annual General Meeting 2018 2013Annual General Meeting 2018 2007Annual General Meeting 2018 Annual General Meeting 2018 Annual General Meeting 2018 Year First Year Appointed Expires Current Term Year 39 39 (1) (1) (2) (1) (1) (2) (1) (1) (1) (1) (1) (1) Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Name Aebischer Patrick Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung Wendy Becker Wendy Edouard Bugnion Bracken Darrell Sally Davis Guerrino De Luca (1) Non-executive member of the Board of Directors. (2) Executive member of the Board of Directors. Terms of Office of Directors of Office Terms Each director is elected individually by a separate vote of shareholders. Until 2012, each director was elected for a term director, each that such change a approved shareholders Meeting, General Annual 2012 Company’s the At years. three of starting with the directors elected at the Annual 2012 General Meeting, will be subject to a term Meeting. General of of Annual our one Ten year. 2018 the at Directors of Board the to re-election for presented being are directors current twelve have they after reelection seek not may Directors birthday. seventieth her or his until re-election for eligible is director Each reached 70 years of age or have served on the Board of Directors as a non-employee member for 12 years, unless the Board of Directors member adopts of A a the resolution Board to who the reaches contrary. 70 years of age or 12 years of service as a non-employee member of the Board of Directors during the term of his or her directorship may remain a a as office of term her or his with coincides Chairman as office of director’sterm A term. the of expiration the until director director indefinitely may be re-elected as Chairman, subject to the age and limits mentioned tenure above. A director. as of March 31, 2018 director are as follows: for each The year of appointment remaining and term of office 38 Directors who have served in senior leadership positions are important to Logitech, Because we are a consumer products company, directors who have brand marketing Knowledge of financial markets and accounting and financial reporting processes is important Senior Leadership Experience. because they bring experience and perspective in analyzing, shaping, and overseeing operational and policy issues at a senior level. the execution of important Financial Expertise. because it assists our directors in understanding, advising, and overseeing Logitech’s structure, financial reporting, and internal control of such activities. them ship products, software and hardware manufacture and develop we Because Expertise. Technical and Industry and software, and hardware in expertise retailers, and distributors electronics consumer major to sell and worldwide, experience in supply chain, manufacturing and consumer products is useful in understanding the opportunities and challenges of our business and in providing insight and oversight of management. Brand Marketing Expertise. experience can provide expertise and guidance as we seek to maintain and expand brand and product awareness and a positive reputation. Global Expertise. Because we are a global organization with research and development, and sales and other offices in many countries, directors with global expertise, particularly in Europe, the business and cultural perspective regarding many significant aspects of our business. U.S. and Asia, can provide a useful Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate \ Board Composition The Nominating Committee is responsible for reviewing and assessing with the Board the appropriate skills, experience, Board. the on membership then-current the and business our of context the in members Board of sought background and The Nominating Committee has not formally established any specific, minimum qualifications that must be met by each candidate for the Board of Directors or same specific the have will director attributes, each that intend or qualities expect not do we or However, possess. skills to Directors of Board that the of members are necessary and for skills, one backgrounds, of or portfolio diverse more a of have will the members Board that expect we experience; and business skills, our background, concerning advice and oversight its in whole a as Board the assist to is diversity this of goal One experiences. and operations. Committee Nominating the by Board the of membership current the and candidates Board of assessment and review The understanding experience; management senior independence; as: such factors, diverse numerous includes Board the and of and experience representation; age; and gender diversity. and ethnic in technology, finance, marketing and operations; international experience and geographic to time to take into account changes in Logitech’s business and other trends, as well as the portfolio of skills and experience time from change and factors these to skills regard with Board the of of and Committee portfolio Nominating the of emphasis the and priorities The as well as trends, other and business Logitech’s in changes account into take to time to of current and prospective Board members. Listed below are key skills and experience note that biographies we directors’ The currently attribute. consider every possess important to director for each expect our not do directors We structure. to and business have current in light of our each director’s relevant experience, qualifications, and skills relative to this list. • • • • • Directors of Nominees for and Evaluation Identification Nominating Our director. for nominees evaluating and identifying for methods of variety a uses Committee Nominating Our Committee regularly assesses the appropriate size and composition of the Board of Directors, the needs of the Board of Directors and the respective Committees of the Board of Directors and the qualifications of candidates in light of these current management, shareholders, through Committee Nominating the of attention the to come may Candidates needs. information on solely based be may candidates these of evaluation The firms. search or Directors of Board the of members provided to the Committee or may also include discussions with persons familiar with the candidate, an interview of the candidates. review to parties third paid of use the including appropriate, deems Committee the actions other or candidate http://ir.logitech.com 41 of executive officers. discussions of issues placed on the agenda by the non-executive members the Board Directors. of of in significant transactions, including acquisitions, divestitures and major investments. important issues. The Chief Executive Officer also provides regular updates to the Board members regarding Logitech’s Logitech’s regarding members Board the to updates regular provides also Officer Executive Chief The issues. important business between the dates of regular Board meetings. of the Board and leadership of the day-to-day of Logitech. management outlook, and performance operations, its Logitech, of results financial the on report to Committees its and Board the of please and on areas of as the meetings well business as within other their business responsibility, matters. For Committee further information on and Board in management senior of members other and officers executive by participation refer to “Board Committees” below. by the Lead Independent Director, where Logitech issues are discussed without the presence of executive or non- independent members the Board of or executive officers. members, to discuss matters appropriate to such sessions, including mandates organizational structure and the hiring and Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate • out Board carrying resolutions; • reporting the Chairman regularly to business; activities the of Directors on the of the Board of • preparing supporting be for resolutions documents and Board of Directors; passed by the that are to • officers executive the and Officer Executive Chief the deciding on issues brought by executive officers. to his attention Directors, of Board the of responsibilities and authorities detailed The to refer Please Regulations. Organizational and Incorporation of Articles Company’s the in out set are • There are regularly scheduled reviews at Board meetings of Logitech strategic and operational issues, • including involved actively is and organization, and structure Logitech’s in changes significant approves and reviews Board The • All non-executive Board members request, to all internal have access, at their Logitech information. • Audit Committee. Audit function reports to the The head of the Internal in Risk Oversight Role The Board’s One of the Board’s functions is oversight of risk management at Logitech. “Risk” is inherent in business, and the Board Committees. seeks to understand and advise on risk in conjunction with the activities of the Board and the Board’s for copies of these documents. for copies of these Director Lead Independent As appointed by Hunt the serves The Board, as responsibilities Dr. Lead of Independent the Director. Lead Independent such performing in director presiding the as serving and directors non-executive the of meetings chairing include Director Directors. Independent the by annually elected is Director Independent Lead The direct. may Board the as functions other Supervises the Board of Directors Executive Officers Means by Which activities the monitors and business, Logitech’s in issues and developments on informed regularly is Directors of Board The in various ways. and responsibilities of the executive officers • At each regular Board meeting the Chief Executive Officer reports to the Board of Directors on developments and leadership between balance ensure help to separated, generally • are Officer Executive Chief and Chairman of offices The meetings of portions • attend Board, the of invitation the at management, senior of members other and officers Executive • led Directors, of Board the of members independent non-executive, the of sessions closed quarterly regular are There • The Board holds quarterly closed sessions, where all Board members meet without the presence of non-Board 40 40 Executive Officer. internal audit function; the Board has until decided on matter; the officers budgets; Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Shareholders. The Secretary of the Board of Directors is appointed at the Board meeting coinciding with the Annual General Annual the with coinciding meeting The Board the Chairman at appointed of is Directors the of Board Board the of is Secretary The elected Shareholders. by the shareholders on an General Counsel. Ko, the Company’s Bryan annual was Mr. As of June 30, 2018, the Secretary Meeting of Shareholders. basis, at the Annual General Meeting of Executive Chairman and of the Chief Officer Role of the management, top-level of selection the and planning strategic long-term and mid- in role leading a assumes Chairman The and he supports major transaction initiatives of Logitech. officers. executive other the of support the with Logitech, of operations day-to-day the manages Officer Executive Chief The the following powers and duties: has, in particular, The Chief Executive Officer • defining and implementing short and medium term strategies; • preparing the budget, which be Directors; must approved by the Board of • annual report; reviewing and certifying the Company’s • appointing, dismissing and promoting any employees of Logitech other than executive officers and the head of the executive from suspected is • duty of breach a where Company the of interests the protect to measures immediate taking The Board of Directors is responsible for Directors supervising of Board Logitech the the management law, Swiss of under directors of the boards of business duties and powers and non-transferable the to affairs addition of the Company. In the following also has responsibilities: • the signatory power of its members; • the approval submitted by the Chief Executive of the budget Officer; • approved the in included not aggregate the in million 10 USD than more of acquisitions or investments of approval the • the approval more of any expenditure than USD 10 million of not specifically identified in the approved and budgets; • real estate. the approval acquisition, of the sale or including related borrowings, of the Company’s The Board of Directors has delegated the and management the of executive the Company to the Chief Executive Officer officers, except where Swiss law or the Company’s Articles of Incorporation provide differently. or Organizational Regulations (By-Laws) Board Leadership Structure Officer Executive Chief and Board the of Chairman of positions the that practice general a had 1997 since has Board The should be held by separate persons as an continuity; aid in leadership the Board’s as: oversight of such management. Since 1997, matters the Chairman for has Chairman, as been a former Chief Executive of Officer Officer the Company and has served as a full-time Executive senior executive. Logitech believes Chief former a having to advantages are there that day-to-day assistance to and oversight of and management. other senior communications and relations between the Board, Chief Officer, the Executive the Chief Executive Officer and other executive officers; De Luca, former the Chief and Company’s Executive current Officer Chairman, has served in Mr. that role since January and facilitating 2008. On July 27, 2011, Mr. De Luca assumed the role of acting President and continuing Chief his Executive duties Officer, in as addition Chairman, to at the request of the Board of President as April of Directors. 9, 2012, The and he became Board the Chief Executive appointed Officer as of Bracken January 1, 2013. Darrell The Board considered as and arrangement, temporary a as Luca De Mr. by positions Officer Executive Chief and Chairman the both of holding the returned to its general practice of the positions being held by separate persons upon the appointment of Mr. Darrell as Chief Board Responsibilities and Structure and Responsibilities Board

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement http://ir.logitech.com 41 41 of executive officers. discussions of issues placed on the agenda by the non-executive members the Board Directors. of of in significant transactions, including acquisitions, divestitures and major investments. important issues. The Chief Executive Officer also provides regular updates to the Board members regarding Logitech’s Logitech’s regarding members Board the to updates regular provides also Officer Executive Chief The issues. important business between the dates of regular Board meetings. of the Board and leadership of the day-to-day of Logitech. management outlook, and performance operations, its Logitech, of results financial the on report to Committees its and Board the of please and on areas of as the meetings well business as within other their business responsibility, matters. For Committee further information on and Board in management senior of members other and officers executive by participation refer to “Board Committees” below. by the Lead Independent Director, where Logitech issues are discussed without the presence of executive or non- independent members the Board of or executive officers. members, to discuss matters appropriate to such sessions, including mandates organizational structure and the hiring and Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate • There are regularly scheduled reviews at Board meetings of Logitech strategic and operational issues, • including involved actively is and organization, and structure Logitech’s in changes significant approves and reviews Board The • All non-executive Board members request, to all internal have access, at their Logitech information. • Audit Committee. Audit function reports to the The head of the Internal in Risk Oversight Role The Board’s One of the Board’s functions is oversight of risk management at Logitech. “Risk” is inherent in business, and the Board Committees. seeks to understand and advise on risk in conjunction with the activities of the Board and the Board’s • out Board carrying resolutions; • reporting the Chairman regularly to business; activities the of Directors on the of the Board of • preparing supporting be for resolutions documents and Board of Directors; passed by the that are to • officers executive the and Officer Executive Chief the deciding on issues brought by executive officers. to his attention Directors, of Board the of responsibilities and authorities detailed The to refer Please Regulations. Organizational and Incorporation of Articles Company’s the in out set are for copies of these documents. for copies of these Director Lead Independent As appointed by Hunt the serves The Board, as responsibilities Dr. Lead of Independent the Director. Lead Independent such performing in director presiding the as serving and directors non-executive the of meetings chairing include Director Directors. Independent the by annually elected is Director Independent Lead The direct. may Board the as functions other Supervises the Board of Directors Executive Officers Means by Which activities the monitors and business, Logitech’s in issues and developments on informed regularly is Directors of Board The in various ways. and responsibilities of the executive officers • At each regular Board meeting the Chief Executive Officer reports to the Board of Directors on developments and leadership between balance ensure help to separated, generally • are Officer Executive Chief and Chairman of offices The meetings of portions • attend Board, the of invitation the at management, senior of members other and officers Executive • led Directors, of Board the of members independent non-executive, the of sessions closed quarterly regular are There • The Board holds quarterly closed sessions, where all Board members meet without the presence of non-Board 40 Executive Officer. internal audit function; the Board has until decided on matter; the officers budgets; Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Shareholders. The Secretary of the Board of Directors is appointed at the Board meeting coinciding with the Annual General Annual the with coinciding meeting The Board the Chairman at appointed of is Directors the of Board Board the of is Secretary The elected Shareholders. by the shareholders on an General Counsel. Ko, the Company’s Bryan annual was Mr. As of June 30, 2018, the Secretary Meeting of Shareholders. basis, at the Annual General Meeting of Executive Chairman and of the Chief Officer Role of the management, top-level of selection the and planning strategic long-term and mid- in role leading a assumes Chairman The and he supports major transaction initiatives of Logitech. officers. executive other the of support the with Logitech, of operations day-to-day the manages Officer Executive Chief The the following powers and duties: has, in particular, The Chief Executive Officer • defining and implementing short and medium term strategies; • preparing the budget, which be Directors; must approved by the Board of • annual report; reviewing and certifying the Company’s • appointing, dismissing and promoting any employees of Logitech other than executive officers and the head of the executive from suspected is • duty of breach a where Company the of interests the protect to measures immediate taking Board Responsibilities and Structure and Responsibilities Board The Board of Directors is responsible for Directors supervising of Board Logitech the the management law, Swiss of under directors of the boards of business duties and powers and non-transferable the to affairs addition of the Company. In the following also has responsibilities: • the signatory power of its members; • the approval submitted by the Chief Executive of the budget Officer; • approved the in included not aggregate the in million 10 USD than more of acquisitions or investments of approval the • the approval more of any expenditure than USD 10 million of not specifically identified in the approved and budgets; • real estate. the approval acquisition, of the sale or including related borrowings, of the Company’s The Board of Directors has delegated the and management the of executive the Company to the Chief Executive Officer officers, except where Swiss law or the Company’s Articles of Incorporation provide differently. or Organizational Regulations (By-Laws) Board Leadership Structure Officer Executive Chief and Board the of Chairman of positions the that practice general a had 1997 since has Board The should be held by separate persons as an continuity; aid in leadership the Board’s as: oversight of such management. Since 1997, matters the Chairman for has Chairman, as been a former Chief Executive of Officer Officer the Company and has served as a full-time Executive senior executive. Logitech believes Chief former a having to advantages are there that day-to-day assistance to and oversight of and management. other senior communications and relations between the Board, Chief Officer, the Executive the Chief Executive Officer and other executive officers; De Luca, former the Chief and Company’s Executive current Officer Chairman, has served in Mr. that role since January and facilitating 2008. On July 27, 2011, Mr. De Luca assumed the role of acting President and continuing Chief his Executive duties Officer, in as addition Chairman, to at the request of the Board of President as April of Directors. 9, 2012, The and he became Board the Chief Executive appointed Officer as of Bracken January 1, 2013. Darrell The Board considered as and arrangement, temporary a as Luca De Mr. by positions Officer Executive Chief and Chairman the both of holding the returned to its general practice of the positions being held by separate persons upon the appointment of Mr. Darrell as Chief X X X Chair X X X Chair X X Chair Audit Compensation Nominating 43 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Bracken Darrell Sally Davis Guerrino De Luca Sue Gove Didier Hirsch Wendy Becker Wendy Edouard Bugnion Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung Director Aebischer Patrick Board Committees Board Audit, Compensation, The and Board Nominating has standing Committees to assist the Board in carrying out its duties. Each of the Board committees is composed entirely of directors that are independent in accordance with the published listing requirements of the Nasdaq Stock Market and Committee’s the of substance the on Swiss Board full the to reports Committee Board corporate applicable each meeting, Board quarterly governance best practices guidelines. At each during the quarter. meetings, if any, Committee’s the determines Committee each of chair The Board. the by approved charter written a has Committee Each meeting The agenda. Board Committee members receive materials in advance of Committee meetings allowing them to at website Relations Investor Logitech’s on available are Committee Board each of Charters The meeting. the for prepare . Each Audit, http://ir.logitech.com Compensation of the and Nominating Committees has the authority to engage outside experts, advisors and counsel to the extent it considers appropriate to assist the Committee in The its members work. of identified the Committees are in the following table: 42 42 to assist the Board on matters it is considering. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate its strategy or both, which lasts a full day to a day-and-a-half and in which all directors participate in person except in special special in Company, the of except discussion and review a person for quarter each in meeting Board scheduled participate regularly a holds typically directors Board The all which in and day-and-a-half a to day full a lasts which both, or strategy its individual circumstances. In addition, the Chief Executive Officer and Chief Financial Officer provide a quarterly update to the Board prior to each earnings Additional announcement. meetings of the Board may be held by teleconference or video conference and the duration of such meetings varies depending matters considered. on the subject Emergency Resolutions the Chairman of the Board may have the power to pass resolutions which In case would of otherwise emergency, be the the by ratification to subject are manner this in made Board the of Chairman the by Decisions Board. the of responsibility Board of Directors at its next meeting or by way of written consent. No such emergency resolutions were passed during fiscal year 2018. Director Sessions Independent The Board of Directors has adopted a policy of regularly scheduled sessions of Board meetings where the independent directors meet to consider matters without management or non-independent directors present. During fiscal year 2018, separate sessions of the independent directors were held at four separate meetings. Board Effectiveness in fulfilling its obligations. Our Board of Directors performs an annual self-assessment to evaluate its effectiveness The largest risk in any business typically is that the products and services it offers will not be met by customer demand, business, Company’s the of reviews because regular of poor through poor strategy, level, execution, lack highest of the competitiveness, at or some responsibilities, combination oversight of these risk or its other factors. implements The Board product strategy and competitive position, succession planning. and through management and organizational reviews, evaluations Within the broad strategic framework and established by the Board, management is responsible for identifying risk and risk controls related to significant business activities; mapping the risks to company strategy; and developing programs and recommendations to determine the sufficiency of risk identification, the balance of potential risk to potential reward and the appropriate manner in which risk. to control primary the are risk The Board’s of risk oversight control role is and implemented at identification the full the Board level, which and also in in individual management, Board Committees. The risk full enterprise on reports specific receives Board topics of the discussion. Presentations and other information for the Board and Board Committees generally identify and discuss relevant risk and risk control; and the Board members assess and oversee the risks as a part of their review of the related business, financial, or other activity The of control Compensation the Committee Company. internal oversees issues to related related issues oversees Committee Audit The programs. compensation of controls risk and design the to does oversight in role Board’s The investments. cash-management in tolerance risk Logitech’s and reporting financial over leadership is discussed structure, which above. not have a direct impact on the Board’s Board Meetings The Chairman sets the agenda for Board meetings, in coordination with Any the member Chief of Executive the Officer. Board of Directors may request that a meeting of the Board be convened. The directors receive materials in advance of Board meetings allowing them to prepare for the handling on the agenda. of the items or The other Chairman recommend members and executive of Chief officers senior Executive management Officer who, at the invitation of the Board, attend portions of each quarterly Board meeting to report on areas of the business within the Board Infrequently, their may responsibility. also receive reports from external consultants such as executive search or succession experts or outside legal experts

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement X X X Chair X X X Chair X X Chair Audit Compensation Nominating 43 43 Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Director Aebischer Patrick Becker Wendy Edouard Bugnion Bracken Darrell Sally Davis Guerrino De Luca Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung Board Committees Board Audit, Compensation, The and Board Nominating has standing Committees to assist the Board in carrying out its duties. Each of the Board committees is composed entirely of directors that are independent in accordance with the published listing requirements of the Nasdaq Stock Market and Committee’s the of substance the on Swiss Board full the to reports Committee Board corporate applicable each meeting, Board quarterly governance best practices guidelines. At each during the quarter. meetings, if any, Committee’s the determines Committee each of chair The Board. the by approved charter written a has Committee Each meeting The agenda. Board Committee members receive materials in advance of Committee meetings allowing them to at website Relations Investor Logitech’s on available are Committee Board each of Charters The meeting. the for prepare . Each Audit, http://ir.logitech.com Compensation of the and Nominating Committees has the authority to engage outside experts, advisors and counsel to the extent it considers appropriate to assist the Committee in The its members work. of identified the Committees are in the following table: 42 to assist the Board on matters it is considering. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate its strategy or both, which lasts a full day to a day-and-a-half and in which all directors participate in person except in special special in Company, the of except discussion and review a person for quarter each in meeting Board scheduled participate regularly a holds typically directors Board The all which in and day-and-a-half a to day full a lasts which both, or strategy its individual circumstances. In addition, the Chief Executive Officer and Chief Financial Officer provide a quarterly update to the Board prior to each earnings Additional announcement. meetings of the Board may be held by teleconference or video conference and the duration of such meetings varies depending matters considered. on the subject Emergency Resolutions the Chairman of the Board may have the power to pass resolutions which In case would of otherwise emergency, be the the by ratification to subject are manner this in made Board the of Chairman the by Decisions Board. the of responsibility Board of Directors at its next meeting or by way of written consent. No such emergency resolutions were passed during fiscal year 2018. Director Sessions Independent The Board of Directors has adopted a policy of regularly scheduled sessions of Board meetings where the independent directors meet to consider matters without management or non-independent directors present. During fiscal year 2018, separate sessions of the independent directors were held at four separate meetings. Board Effectiveness in fulfilling its obligations. Our Board of Directors performs an annual self-assessment to evaluate its effectiveness The largest risk in any business typically is that the products and services it offers will not be met by customer demand, business, Company’s the of reviews because regular of poor through poor strategy, level, execution, lack highest of the competitiveness, at or some responsibilities, combination oversight of these risk or its other factors. implements The Board product strategy and competitive position, succession planning. and through management and organizational reviews, evaluations Within the broad strategic framework and established by the Board, management is responsible for identifying risk and risk controls related to significant business activities; mapping the risks to company strategy; and developing programs and recommendations to determine the sufficiency of risk identification, the balance of potential risk to potential reward and the appropriate manner in which risk. to control primary the are risk The Board’s of risk oversight control role is and implemented at identification the full the Board level, which and also in in individual management, Board Committees. The risk full enterprise on reports specific receives Board topics of the discussion. Presentations and other information for the Board and Board Committees generally identify and discuss relevant risk and risk control; and the Board members assess and oversee the risks as a part of their review of the related business, financial, or other activity The of control Compensation the Committee Company. internal oversees issues to related related issues oversees Committee Audit The programs. compensation of controls risk and design the to does oversight in role Board’s The investments. cash-management in tolerance risk Logitech’s and reporting financial over leadership is discussed structure, which above. not have a direct impact on the Board’s Board Meetings The Chairman sets the agenda for Board meetings, in coordination with Any the member Chief of Executive the Officer. Board of Directors may request that a meeting of the Board be convened. The directors receive materials in advance of Board meetings allowing them to prepare for the handling on the agenda. of the items or The other Chairman recommend members and executive of Chief officers senior Executive management Officer who, at the invitation of the Board, attend portions of each quarterly Board meeting to report on areas of the business within the Board Infrequently, their may responsibility. also receive reports from external consultants such as executive search or succession experts or outside legal experts registered public accounting firm, KPMG AG KPMG firm, accounting public registered 45 and recommends the appointment of independent or replacement auditors to the Board of Directors; of the internal auditing staff; with policies and guidelines Company’s the including exposures, those control and monitor to taken has management respect to risk assessment and and risk management; Condition and Results of Operations” and recommends that statements in the annual report made available to shareholders. the Board of Directors include the audited financial Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate and KPMG LLP, respectively, also attended respectively, all and ten KPMG of LLP, the meetings. Other members of management also participated in certain meetings. Four meetings also included separate sessions with representatives of the auditors and independent Audit. and with the head of Internal registered public accounting firm, with the Chief Financial Officer Compensation Committee share- including The programs, Compensation and Committee reviews policies and compensation approves, Logitech’s or recommends and to members the Board Board for non-executive approval, and the officers compensation of executive based compensation programs and other incentive-based compensation. Within the guidelines established by the Board and the limits set forth in the Company’s employee equity incentive plans, the Compensation Committee authority to also grant equity has incentive awards the to employees without further Board approval. The Committee is composed of only non-executive, independent Board members. Panayotopoulos. Mr. and Hunt Dr. Davis, Ms. Chairperson, Bugnion, Dr. of consists currently Committee Compensation The meets Becker, Ms. as well as Committee, Compensation the of member each that determined has Directors of Board The the independence requirements of the Nasdaq Market listing Stock standards. Audit Committee The Audit Committee is appointed by the Board to assist the Board in monitoring the Company’s financial controls, accounting, planning and reporting. It is composed of only non-executive, independent Board Among members. its duties, Committee: Audit the • controls internal and disclosure controls and procedures; reviews the adequacy Company’s of the • auditors, independent Company’s the of performance and scope, audit arrangements, fee independence, the reviews • reviews and approves all be non-audit work by the independent to performed auditors; • reviews the scope of Logitech’s internal auditing and the adequacy of the organizational structure and qualifications • reviews, before quarterly results release, the and interim financial data; • steps the and exposures risk financial major Company’s the auditors independent the and management with reviews • reviews, before release, the audited financial statements and “Management’s Discussion Analysis and of Financial departure Gove's Ms. Following Yeh. Dr. and Gove Ms. Chairperson, Hirsch, Mr. of consists currently Committee Audit The will Montgomery Ms. that expects Directors of Board the Meeting, General Annual 2018 the of as effective Board, the from be appointed to Audit the Committee. The Board has determined that each member of Audit the Committee, as well applicable as the and standards listing Market Stock Nasdaq the of requirements independence the meets Montgomery, Ms. rules and regulations of the SEC. In addition, the Board Hirsch, has Ms. determined Gove that and Mr. Ms. Montgomery are audit committee financial experts as defined by the applicable rules and regulations SEC. of the regularly the to prior day the on person in held were meetings Four 2018. year fiscal in times ten met Committee Audit The scheduled quarterly Board meeting, for approximately Form on Report Annual two and results financial of report quarterly Company’s the preceding less or hour one approximately to three hours, and six were held 10-K. The by Committee teleconference, received reports for and presentations before the meetings At President Vice the of invitation, Committee’s Corporate the Controller, Chief in Company’s Financial Officer, adequately. order to allow them time to prepare and meeting, each attended Counsel General Associate or Counsel General Deputy Counsel, General and Audit Internal independent and auditors then-current Company’s the from representatives 4 2 4 4 4 Committee Nominating 7 7 7 7 6 Committee Compensation 9 10 10 10 Audit Committee 5 7 7 6 5 8 8 8 8 8 7 8 7 44 Board of Directors 44 (2) (1) (2) Nominating Committee meetings were date. that held after that and each attended all five of the Board meetings that were held after that date. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Dimitri Panayotopoulos Yeh Lung Edouard Bugnion Bracken Darrell Sally Davis # of meetings held Patrick Aebischer Patrick Becker Wendy Guerrino De Luca Sue Gove Didier Hirsch Neil Hunt Neela Montgomery (1) Dr. Aebischer was appointed to the Nominating Committee as of September 13, 2017, and attended 2017, 12, both September on of Meeting General the Annual the of as Board the to elected were (2) Montgomery Ms. and Becker Ms. Attendance at Board, Committee and Annual Shareholders’ Meetings Meetings Shareholders’ Annual and at Board, Committee Attendance In fiscal year 2018 the Board times. four met met Committee Nominating the eight and times, seven met times, Committee Compensation the six times, ten met of Committee which were regularly scheduled meetings. In addition, the Audit expect We 2018. year fiscal during consent written by approval for actions two took Board the meetings, its to addition In them expect also and serves, she or he which on Committees the and Board the of meeting each attend to director each to attend the Annual General Meeting of shareholders. All ten of our then All of General the Meeting. incumbent current directors attended at least 75% of the directors meetings of the Board and the attended Committees the 2017 Annual on which he or she served. Detailed attendance information for Board and Board Committee meetings during fiscal year 2018 is as follows:

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement registered public accounting firm, KPMG AG KPMG firm, accounting public registered 45 45 and recommends the appointment of independent or replacement auditors to the Board of Directors; of the internal auditing staff; with policies and guidelines Company’s the including exposures, those control and monitor to taken has management respect to risk assessment and and risk management; Condition and Results of Operations” and recommends that statements in the annual report made available to shareholders. the Board of Directors include the audited financial Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate and KPMG LLP, respectively, also attended respectively, all and ten KPMG of LLP, the meetings. Other members of management also participated in certain meetings. Four meetings also included separate sessions with representatives of the auditors and independent Audit. and with the head of Internal registered public accounting firm, with the Chief Financial Officer Compensation Committee share- including The programs, Compensation and Committee reviews policies and compensation approves, Logitech’s or recommends and to members the Board Board for non-executive approval, and the officers compensation of executive based compensation programs and other incentive-based compensation. Within the guidelines established by the Board and the limits set forth in the Company’s employee equity incentive plans, the Compensation Committee authority to also grant equity has incentive awards the to employees without further Board approval. The Committee is composed of only non-executive, independent Board members. Panayotopoulos. Mr. and Hunt Dr. Davis, Ms. Chairperson, Bugnion, Dr. of consists currently Committee Compensation The meets Becker, Ms. as well as Committee, Compensation the of member each that determined has Directors of Board The the independence requirements of the Nasdaq Market listing Stock standards. • reviews and approves all be non-audit work by the independent to performed auditors; • reviews the scope of Logitech’s internal auditing and the adequacy of the organizational structure and qualifications • reviews, before quarterly results release, the and interim financial data; • steps the and exposures risk financial major Company’s the auditors independent the and management with reviews • reviews, before release, the audited financial statements and “Management’s Discussion Analysis and of Financial departure Gove's Ms. Following Yeh. Dr. and Gove Ms. Chairperson, Hirsch, Mr. of consists currently Committee Audit The will Montgomery Ms. that expects Directors of Board the Meeting, General Annual 2018 the of as effective Board, the from be appointed to Audit the Committee. The Board has determined that each member of Audit the Committee, as well applicable as the and standards listing Market Stock Nasdaq the of requirements independence the meets Montgomery, Ms. rules and regulations of the SEC. In addition, the Board Hirsch, has Ms. determined Gove that and Mr. Ms. Montgomery are audit committee financial experts as defined by the applicable rules and regulations SEC. of the regularly the to prior day the on person in held were meetings Four 2018. year fiscal in times ten met Committee Audit The scheduled quarterly Board meeting, for approximately Form on Report Annual two and results financial of report quarterly Company’s the preceding less or hour one approximately to three hours, and six were held 10-K. The by Committee teleconference, received reports for and presentations before the meetings At President Vice the of invitation, Committee’s Corporate the Controller, Chief in Company’s Financial Officer, adequately. order to allow them time to prepare and meeting, each attended Counsel General Associate or Counsel General Deputy Counsel, General and Audit Internal independent and auditors then-current Company’s the from representatives Audit Committee The Audit Committee is appointed by the Board to assist the Board in monitoring the Company’s financial controls, accounting, planning and reporting. It is composed of only non-executive, independent Board Among members. its duties, Committee: Audit the • controls internal and disclosure controls and procedures; reviews the adequacy Company’s of the • auditors, independent Company’s the of performance and scope, audit arrangements, fee independence, the reviews

2 4

4 4 4 Committee Nominating 7 7 7 6 7 Committee Compensation 9 10 10 10 Audit Committee 8 8 8 5 7 7 6 5 8 8 7 8 7 44 Board of Directors (2) (1) (2) Nominating Committee meetings were date. that held after that and each attended all five of the Board meetings that were held after that date. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Edouard Bugnion Bracken Darrell Sally Davis Dimitri Panayotopoulos Yeh Lung # of meetings held Becker Wendy Guerrino De Luca Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Patrick Aebischer Patrick Attendance at Board, Committee and Annual Shareholders’ Meetings Meetings Shareholders’ Annual and at Board, Committee Attendance In fiscal year 2018 the Board times. four met met Committee Nominating the eight and times, seven met times, Committee Compensation the six times, ten met of Committee which were regularly scheduled meetings. In addition, the Audit expect We 2018. year fiscal during consent written by approval for actions two took Board the meetings, its to addition In them expect also and serves, she or he which on Committees the and Board the of meeting each attend to director each to attend the Annual General Meeting of shareholders. All ten of our then All of General the Meeting. incumbent current directors attended at least 75% of the directors meetings of the Board and the attended Committees the 2017 Annual on which he or she served. Detailed attendance information for Board and Board Committee meetings during fiscal year 2018 is as follows: (1) Dr. Aebischer was appointed to the Nominating Committee as of September 13, 2017, and attended 2017, 12, both September on of Meeting General the Annual the of as Board the to elected were (2) Montgomery Ms. and Becker Ms. 47 Attn: Corporate Secretary Attn: Corporate Secretary Logitech International S.A. Logitech International 1015 Lausanne, Switzerland Daniel Borel Innovation Center Daniel Borel Innovation EPFL - Quartier de l’Innovation - Quartier de l’Innovation EPFL or by writing at the following the Corporate Secretary address: Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Communications Communications the Board of Directors with All such shareholder communications will be forwarded to the appropriate member or members of the Board of Directors Directors of Board the of members or member appropriate the to forwarded be will communications shareholder such All none if is specified, to the Chairman of the Board of Directors. or, Compensation Committee Interlocks and Insider Participation Insider Participation and Interlocks Committee Compensation executive our of None Logitech. of employee or officer an been has Committee Compensation the of members the of serves None that officer executive an has that company a of committee compensation or directors of board the on serves officers Directors. on our Board of email an sending by Logitech about questions or issues fide bona about Directors of Board the contact may Shareholders to [email protected] 46 46 meetings were held in person or by teleconference and lasted approximately half-an-hour one hour. to recommendations recommendations of Directors for approval; to the Board directors with these attributes; and the selection of Board Committee chairs. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Technology and Innovation Committee and Innovation Technology During fiscal year and 2018, Innovation the Committee Company as created a joint Board and Technology management an informal forum to allow management to draw on the expertise and members experience by understanding better of and Board the of our members the and Board management of members between members communication and and to foster Technology The issues. and opportunities plans, strategies, innovation and technology Company’s the of Board the of whom of all Yeh, Dr. and Hunt Dr. Bugnion, Dr. Aebischer, Dr. members Board of consists currently Committee Innovation 2018, June have In advanced technical degrees Officer. and Information have been Chief Officers Chief at and Technology technology Officer companies or Design have Chief founded Company’s the and companies, technology managed and the Board approved and expects to make the and Technology Innovation Committee a formal committee of Annual General Meeting. the following the 2018 Board The Compensation Committee met seven times in fiscal year 2018. At the Committee’s invitation, the Company’s Head of Head Company’s the invitation, Committee’s the At 2018. year fiscal in times seven met Committee Compensation The People & Rewards Culture attended and each Head meeting, of Total the Committee’s independent Agnès advisor from Blust independent Consulting advisor attended from each Compensia meeting, attended and five the of Committee’s the seven meetings. Four of the meetings were held in person and six of the seven meetings lasted for approximately one hour to three hours or more. In addition to its meetings, the Committee took five actions for approval by written consent during fiscal year 2018. Please refer to the Company’s Compensation Report for Fiscal 2018 Year for further information on the Compensation criteria and process for evaluating compensation. executive Committee’s Committee Nominating The Nominating Committee is composed of at least three members, Nominating Among its duties, the Committee: with independent directors. each of the members being non-executive, • evaluates the composition of the Board of Directors and its Committees, determines future requirements and makes • determines on an annual basis the desired Board qualifications and expertise and conducts searches for potential • evaluates makes recommendations and of nominees for election to the Board of Directors; and • evaluates and makes recommendations to the Board concerning the appointment of directors to Board Committees The Nominating Committee may and typically does retain an executive search firm to assist with the identification and evaluation of prospective Board nominees based Nominating on Committee’s policies criteria with respect established to director by nominations please see the “Elections to Committee. the Board above. For of Directors” information on Following Hunt. the Dr. and Hirsch Mr. Aebischer, Dr. Chairperson, Davis, Ms. of consists currently Committee Nominating The Aebischer Dr. that expects Directors of Board the Meeting, General Annual 2018 the of as effective retirement, Davis' Ms. will be appointed as the Nominating Committee Chairperson and the number of members serving on the Committee will the meets Hunt Dr. and Hirsch Mr. Aebischer, Dr. Davis, Ms. of each that determined has Board The three. to reduced be independence requirements of the selected Nasdaq then are Stock Nominees Board. full Market the to listing presented are standards. nominees the Directors, Upon of Board the the to election Committee’s for recommendation nominees of by a majority of the independent members of the Board. The Nominating Committee met four times in fiscal year 2018. The

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 47 47 Attn: Corporate Secretary Attn: Corporate Secretary Logitech International S.A. Logitech International 1015 Lausanne, Switzerland Daniel Borel Innovation Center Daniel Borel Innovation EPFL - Quartier de l’Innovation - Quartier de l’Innovation EPFL or by writing at the following the Corporate Secretary address: Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Communications Communications the Board of Directors with Shareholders may contact the Board of Directors about bona fide issues or questions about Logitech by sending an email an sending by Logitech about questions or issues fide bona about Directors of Board the contact may Shareholders to [email protected] All such shareholder communications will be forwarded to the appropriate member or members of the Board of Directors Directors of Board the of members or member appropriate the to forwarded be will communications shareholder such All none if is specified, to the Chairman of the Board of Directors. or, Compensation Committee Interlocks and Insider Participation Insider Participation and Interlocks Committee Compensation executive our of None Logitech. of employee or officer an been has Committee Compensation the of members the of serves None that officer executive an has that company a of committee compensation or directors of board the on serves officers Directors. on our Board of 46 meetings were held in person or by teleconference and lasted approximately half-an-hour one hour. to recommendations recommendations of Directors for approval; to the Board directors with these attributes; and the selection of Board Committee chairs. Corporate Governance and Board of Directors Matters of Directors Board and Governance Corporate Technology and Innovation Committee and Innovation Technology During fiscal year and 2018, Innovation the Committee Company as created a joint Board and Technology management an informal forum to allow management to draw on the expertise and members experience by understanding better of and Board the of our members the and Board management of members between members communication and and to foster Technology The issues. and opportunities plans, strategies, innovation and technology Company’s the of Board the of whom of all Yeh, Dr. and Hunt Dr. Bugnion, Dr. Aebischer, Dr. members Board of consists currently Committee Innovation 2018, June have In advanced technical degrees Officer. and Information have been Chief Officers Chief at and Technology technology Officer companies or Design have Chief founded Company’s the and companies, technology managed and the Board approved and expects to make the and Technology Innovation Committee a formal committee of Annual General Meeting. the following the 2018 Board The Compensation Committee met seven times in fiscal year 2018. At the Committee’s invitation, the Company’s Head of Head Company’s the invitation, Committee’s the At 2018. year fiscal in times seven met Committee Compensation The People & Rewards Culture attended and each Head meeting, of Total the Committee’s independent Agnès advisor from Blust independent Consulting advisor attended from each Compensia meeting, attended and five the of Committee’s the seven meetings. Four of the meetings were held in person and six of the seven meetings lasted for approximately one hour to three hours or more. In addition to its meetings, the Committee took five actions for approval by written consent during fiscal year 2018. Please refer to the Company’s Compensation Report for Fiscal 2018 Year for further information on the Compensation criteria and process for evaluating compensation. executive Committee’s Committee Nominating The Nominating Committee is composed of at least three members, Nominating Among its duties, the Committee: with independent directors. each of the members being non-executive, • evaluates the composition of the Board of Directors and its Committees, determines future requirements and makes • determines on an annual basis the desired Board qualifications and expertise and conducts searches for potential • evaluates makes recommendations and of nominees for election to the Board of Directors; and • evaluates and makes recommendations to the Board concerning the appointment of directors to Board Committees The Nominating Committee may and typically does retain an executive search firm to assist with the identification and evaluation of prospective Board nominees based Nominating on Committee’s policies criteria with respect established to director by nominations please see the “Elections to Committee. the Board above. For of Directors” information on Following Hunt. the Dr. and Hirsch Mr. Aebischer, Dr. Chairperson, Davis, Ms. of consists currently Committee Nominating The Aebischer Dr. that expects Directors of Board the Meeting, General Annual 2018 the of as effective retirement, Davis' Ms. will be appointed as the Nominating Committee Chairperson and the number of members serving on the Committee will the meets Hunt Dr. and Hirsch Mr. Aebischer, Dr. Davis, Ms. of each that determined has Board The three. to reduced be independence requirements of the selected Nasdaq then are Stock Nominees Board. full Market the to listing presented are standards. nominees the Directors, Upon of Board the the to election Committee’s for recommendation nominees of by a majority of the independent members of the Board. The Nominating Committee met four times in fiscal year 2018. The 49 were first elected as directors of the Company at the Annual General Meeting General Annual the at Company the of directors as elected first were with a market value equal to 2 times their respective annual and base salaries; that are expected to vest within not are 60 but days units, stock after restricted or June options the 30, holding 2018. person the These of ownership shares percentage the are computing of deemed purpose to be outstanding for the outstanding treated as of computing for the purpose ownership the percentage of any other person. shares outstanding). on September 12, 2017. salary; salary; shares value equal to their respective annual base salaries. Security Ownership Security Guidelines Share Ownership (3) Includes shares represented by vested, unexercised options as of June 30, 2018 and options and restricted stock units stock restricted and options and 2018 30, June of as options unexercised (3) vested, by represented shares Includes treasury 7,533,066 less outstanding shares (173,106,620 2018 30, June on outstanding (4) shares 165,573,554 on Based (5) Montgomery Neela and Becker Wendy Members of the Board of Directors and executive officers and other officers who report directly to to share or President are subject ownership guidelines. Officer the Chief Executive Directors are required to own Logitech shares ownership this achieve with to required are Directors 2013. a June in revised and 2006 market June in Board the by adopted value guidelines equal to 3 times adopted, originally were the guidelines the time the annual at serving directors of Board case the in retainer or, Board, under the joining of years five within satisfied within five either years had of director the each effective date 2018, of 30, adoption of June the of guidelines. As The guidelines will time. be to adjusted time to from reflect any Board capital the by reevaluated be will and adjustments, these ownership guidelines or had time remaining do so. to The Compensation Committee adopted share ownership guidelines for executive officers and other officers who report directly to the Chief Executive Officer or President effective September 2008 guidelines and now revised apply in to executive September officers 2013. and These other officers who report directly guidelines require: to the Chief Executive Officer. These • base annual his times 5 to equal value market a with shares Logitech of number a hold to Officer Executive Chief the • to hold the a Chief number Financial of Officer Logitech shares with a market value equal to 3 times his annual base • executive officers, other than the Chief Executive Officer and Chief Financial to Officer, hold a number of Logitech • market a with shares Logitech of number a hold to Officer Executive Chief the to directly report who officers remaining position the to appointed being of years five within guideline the achieve to required are guidelines the to subject Officers making them subject to the guideline, or, in the case of such officers serving guideline at any the reflect to adjusted be will the guidelines The guidelines. the of of adoption of date time effective the of years five within adopted, 50% the to guidelines Up were time. originally to time from Committee Compensation the by re-evaluated be will and adjustments, capital may be met through the net value of vested, unexercised stock options. If the guideline is not met within five years, the Chief Executive Officer must hold 100% of his after-tax shares resulting from option exercises or other equity reached. incentive is hold must guideline reports direct Officer Executive Chief the and officers executive other all and until reached, is guideline the until awards awards incentive equity other or exercises option from resulting shares net the of 50% least at In addition, if the guideline is not met, the officer will have 50% of the after-tax value of any earned bonuses under Bonus Program the Leadership paid Team in fully vested Logitech As shares. of June 30, time 2018, had all of or the guidelines executive ownership officers these satisfied either had Officer Executive Chief to directly report who officers other and remaining to do so. * * * * * * * * * * * * * * * (4) 1.3% 1.8% Total as a Total of Shares Percentage Outstanding — — — Total Beneficial Ownership — — — — 174,300 —— 4,904 —— 20,248 — 82,795 — 9,545 51,860 — 57,305 — 30,391 12,615 —— 32,049 70,841 (3) May Within Within 60 Days Shares that be Acquired be — — — (2) 9,545 4,904 20,248 82,795 51,860 57,305 30,391 12,615 32,049 70,841 303,076527,160174,300 130,000 1,700,000 2,227,160 433,076 48 1,107,426 1,830,000 2,937,426 Number Owned of Shares 48 (1) (5) (5) the CEO: EPFL, Quartier de l’Innovation, Daniel Borel Innovation Center, 1015 Lausanne, Switzerland / 7700 Gateway Boulevard, Gateway 7700 / Switzerland Lausanne, 1015 Center, Innovation Borel Daniel l’Innovation, de Quartier EPFL, Newark, California 94560. beneficially owned accordance rules, has sole voting and investment power over the shares reported as in with SEC subject to community property laws where applicable. Exchange Act of 1934 or notifications to the Company under applicable Swiss laws, to own beneficially more than 5% than more beneficially own to laws, Swiss applicable under Company the to notifications or 1934 of Act Exchange of our outstanding of June 30, 2018;shares as and Wendy Becker Wendy Edouard Bugnion Sally Davis Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung Nominees for Director: Marjorie Lao Named Executive Officers: Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Current Directors and Executive Officers as a Group (15) Directors, not including the Chairman or Directors, not including the Chairman Aebischer Patrick Beneficial Owners Security Ownership Security * Less than 1% S.A., International Logitech c/o is table this in listed (1) owner beneficial each for address the indicated, otherwise Unless (2) officer executive and director each table, this to footnotes the in noted otherwise as except knowledge, Logitech’s To Security Security Ownership of Certain Beneficial Owners and Management as of In accordance with the proxy statement rules under U.S. securities laws, the following table shares beneficially owned 2018as of June 30, by: shows the number of our • each person or group known by Logitech, based on filings pursuant to Section 13(d) or (g) under the U.S. Securities • each director and each nominee for director; officers”); executive “named • (the Report Compensation the in Table Compensation Summary the in named persons the • as a group. all directors officers and current executive June 30, 2018 June

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 49 49 were first elected as directors of the Company at the Annual General Meeting General Annual the at Company the of directors as elected first were do so.

salary; salary; shares with a market value respective equal to 2 times their annual salaries; and base value equal to their respective annual base salaries. that are expected to vest within not are 60 but days units, stock after restricted or June options the 30, holding 2018. person the These of ownership shares percentage the are computing of deemed purpose to be outstanding for the outstanding treated as of computing for the purpose ownership the percentage of any other person. shares outstanding). on September 12, 2017. Share Ownership Guidelines Share Ownership Security Ownership Security • to hold the a Chief number Financial of Officer Logitech shares with a market value equal to 3 times his annual base • executive officers, other than the Chief Executive Officer and Chief Financial to Officer, hold a number of Logitech • market a with shares Logitech of number a hold to Officer Executive Chief the to directly report who officers remaining position the to appointed being of years five within guideline the achieve to required are guidelines the to subject Officers making them subject to the guideline, or, in the case of such officers serving guideline at any the reflect to adjusted be will the guidelines The guidelines. the of of adoption of date time effective the of years five within adopted, 50% the to guidelines Up were time. originally to time from Committee Compensation the by re-evaluated be will and adjustments, capital may be met through the net value of vested, unexercised stock options. If the guideline is not met within five years, the Chief Executive Officer must hold 100% of his after-tax shares resulting from option exercises or other equity reached. incentive is hold must guideline reports direct Officer Executive Chief the and officers executive other all and until reached, is guideline the until awards awards incentive equity other or exercises option from resulting shares net the of 50% least at In addition, if the guideline is not met, the officer will have 50% of the after-tax value of any earned bonuses under Bonus Program the Leadership paid Team in fully vested Logitech As shares. of June 30, time 2018, had all of or the guidelines executive ownership officers these satisfied either had Officer Executive Chief to directly report who officers other and remaining to Members of the Board of Directors and executive officers and other officers who report directly to to share or President are subject ownership guidelines. Officer the Chief Executive Directors are required to own Logitech shares ownership this achieve with to required are Directors 2013. a June in revised and 2006 market June in Board the by adopted value guidelines equal to 3 times adopted, originally were the guidelines the time the annual at serving directors of Board case the in retainer or, Board, under the joining of years five within satisfied within five either years had of director the each effective date 2018, of 30, adoption of June the of guidelines. As The guidelines will time. be to adjusted time to from reflect any Board capital the by reevaluated be will and adjustments, these ownership guidelines or had time remaining do so. to The Compensation Committee adopted share ownership guidelines for executive officers and other officers who report directly to the Chief Executive Officer or President effective September 2008 guidelines and now revised apply in to executive September officers 2013. and These other officers who report directly guidelines require: to the Chief Executive Officer. These • base annual his times 5 to equal value market a with shares Logitech of number a hold to Officer Executive Chief the (4) Based on 165,573,554 shares outstanding on June 30, 2018 (173,106,620 shares outstanding less 7,533,066 treasury 7,533,066 less outstanding shares (173,106,620 2018 30, June on outstanding (4) shares 165,573,554 on Based (5) Montgomery Neela and Becker Wendy (3) Includes shares represented by vested, unexercised options as of June 30, 2018 and options and restricted stock units stock restricted and options and 2018 30, June of as options unexercised (3) vested, by represented shares Includes

* * *

* *

* * * * * * * (4)

1.3% 1.8% Total as a Total of Shares Percentage Outstanding — — — Total Beneficial Ownership — —— — 4,904 20,248 — 30,391 — — 174,300 ——— 82,795 — 9,545 51,860 57,305 — 12,615 —— 32,049 70,841 (3) May Within Within 60 Days Shares that be Acquired be — — — (2) 9,545 4,904 20,248 30,391 82,795 51,860 57,305 12,615 32,049 70,841 303,076527,160174,300 130,000 1,700,000 2,227,160 433,076 48 1,107,426 1,830,000 2,937,426 Number Owned of Shares (1) (5) (5) the CEO: Exchange Act of 1934 or notifications to the Company under applicable Swiss laws, to own beneficially more than 5% than more beneficially own to laws, Swiss applicable under Company the to notifications or 1934 of Act Exchange of our outstanding of June 30, 2018;shares as and EPFL, Quartier de l’Innovation, Daniel Borel Innovation Center, 1015 Lausanne, Switzerland / 7700 Gateway Boulevard, Gateway 7700 / Switzerland Lausanne, 1015 Center, Innovation Borel Daniel l’Innovation, de Quartier EPFL, Newark, California 94560. beneficially owned accordance rules, has sole voting and investment power over the shares reported as in with SEC subject to community property laws where applicable. Security Ownership Security Beneficial Owners or Directors, not including the Chairman Aebischer Patrick Edouard Bugnion Dimitri Panayotopoulos Wendy Becker Wendy Sally Davis Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Yeh Lung Nominees for Director: Marjorie Lao Named Executive Officers: Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Current Directors and Executive Officers as a Group (15) Security Security Ownership of Certain Beneficial Owners and Management as of In accordance with the proxy statement rules under U.S. securities laws, the following table shares beneficially owned 2018as of June 30, by: shows the number of our • each person or group known by Logitech, based on filings pursuant to Section 13(d) or (g) under the U.S. Securities • each director and each nominee for director; officers”); executive “named • (the Report Compensation the in Table Compensation Summary the in named persons the • as a group. all directors officers and current executive * Less than 1% S.A., International Logitech c/o is table this in listed (1) owner beneficial each for address the indicated, otherwise Unless (2) officer executive and director each table, this to footnotes the in noted otherwise as except knowledge, Logitech’s To June 30, 2018 June 47 120 2017 100 135 2018 $ 3,514 $ 3,124 $ 3,749 $ 3,291 51 (2) (1) (3) fees for the audit of our internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley the of 404 Section with accordance in reporting financial over control internal our of audit the for fees Act of 2002, fees for the review of the interim condensed financial statements in our Quarterly Reports on Form 10- Q, fees for the audit of our consolidated financial statements in connection with the Swiss SIX filing, and fees for the engagements other or filings regulatory and statutory with connection in KPMG by provided normally are that services and accounting related to acquisitions. Independent Auditors Independent Audit and Non-Audit Fees Audit-related fees Audit fees Tax fees Tax Total Under Articles Logitech’s of Incorporation, the shareholders elect or re-elect the Company’s independent auditors each Annual General Meeting. year at the audit first its assumed AG KPMG Switzerland. Zurich, AG, KPMG were 2018 year fiscal for auditors independent Logitech’s mandate for Logitech in fiscal year 2016, 2015. September 2015, They September in were Meetings General elected Annual by the at the re-elected and shareholders 2014 December as in Meeting General Logitech’s auditors at the Annual and September 2017. For purposes of U.S. securities law reporting, Santa KPMG Clara, LLP, California, served as the Company’s independent registered public AG accounting and KPMG firm KPMG for LLP are fiscal year 2018. Together, of performance the supervising for responsible is Committee Audit the Board, the by appointed As “KPMG.” as to referred the Company’s independent auditors, and recommends the election or replacement of the independent auditors to the Board of Directors. Representatives of KPMG were invited to attend all regular meetings of the Audit Committee. During fiscal year KPMG 2018, representatives attended all of the Audit Committee meetings. The in closed representatives sessions of Committee meetings. of KPMG Committee met separately four times with On a quarterly practices basis, and KPMG policies reports accounting on critical the of findings assessment of their their include audit reports and/or These review work reporting. including financial their over audit control communication of internal written Logitech’s material other and management, with discussed information financial of treatments alternative used, the on Board full the to reports Committee Audit the meeting, Board quarterly each At management. and KPMG between substance of the Committee meetings during the Moreover, responsibilities. quarter. On its fulfilling an in annual representatives senior basis, its the Audit and KPMG Committee of performance approves the KPMG’s evaluates and plan audit Audit the Committee recommends to the Board the appointment or replacement of the independent auditors, subject to Audit Committee reviews the annual its independence. report provided by KPMG as to The shareholder approval. the during KPMG by provided services other and audit the for us to billed fees aggregate the forth sets table following The fiscal years ended March 31, 2018and 2017 (in thousands): (1) Audit fees. This category includes fees for the audit of our financial statements in Annual our Report on Form 10-K, (2) ASTRO and Jaybird acquisitions. Audit-related fees. This category includes the due fees for diligence related to the (3) includes fees. This category fees related to the 2016 and 2015 tax compliance and tax consulting services. Tax

executive

The payments indemnification and other entities.

officers. The and executive officers. Aebischer, the President of the EPFL, joined of the the President Aebischer,

of the Board. 50 50 In fiscal year 2018, we did approximately million USD 2.5 business of

of our directors our agreement with each of campus since 2013.

Innovation Park, a foundation controlled the EPFL a foundation by Innovation Park,

independent committee independent committee Committee or another Mr. De Luca, qualifies as “independent” Mr. Nasdaq rules include in accordance with the Nasdaq rules. The and the EPFL

the Audit an indemnification have entered into an SEC Rules Nasdaq Rules and Swiss Best Corporate Governance Practices and Swiss Best Corporate Nasdaq Rules Certain Relationships and Related Transactions Related and Relationships Certain agreements require us to indemnify our directors and officers to the fullest extent permitted by Swiss and California law. None of the following persons has been indebted to Logitech or its subsidiaries at any time since the beginning of fiscal immediate the of member any director; a as election for nominee any officers; executive or directors our of any 2018: year family of any of our directors, or executive nominees officers for director; any corporation or organization of which any of our directors, executive officers or nominees is an executive business); of officer course ordinary or the in into partner entered debt trade or (except securities is, equity of class directly any of more or or 10% indirectly, of the owner beneficial and any trust or other estate in which any of the directors, executive officers or nominees for director has a substantial beneficial interest or for which such person serves as a trustee or in a similar capacity. Other than the EPFL, since April 1, 2017 we have not been a party to, and we have no plans to be a party to, any transaction any to, party a be to plans no have we and to, party a been not have we 2017 1, April since EPFL, the than Other immediate the of member or any series or of shares, similar our transactions of in 5% which the than amount more involved of exceeded holder or will officer, exceed executive USD nominee, 120,000 director and in director, which current any family of any of the foregoing, had or will have a direct or indirect material interest. We primarily covered our office lease and related payments. We also engaged in research projects, event and organization and event projects, research engaged also in We payments. related and lease office our primarily covered Patrick 2016, September In EPFL. the with projects sponsorships, and other Aebischer President retired as the EPFL at the end of December of 2016. In January our board directors. of Dr. our non-employee at the 2017, Edouard Bugnion, one of President for Information Systems directors, became Vice EPFL. Dr. Aebischer and Dr. Bugnion are also professors at the EPFL. officers and other employees. If in a particular circumstance the Board concludes that there is or may be a perceived may be a there is or Board concludes particular the that employees. in a circumstance and other If officers determine relevant business units to our if work with Legal instruct our department to Board will interest, the conflict of require the these conflict rules Any waivers or executive officer with regard to a director to of interest. there is a conflict a related Board, and prior approval laws must be party transaction under U.S. securities any transaction that is of the approved by In addition to the Logitech and Nasdaq policies and rules described SEC has above, the specific disclosure requirements affiliated entities and persons or executive officer or director involving a transactions Logitech and of types covering certain with them. Logitech has a long-standing relationship with the École Polytechnique Fédérale de Lausanne (EPFL) and has based its Swiss headquarters on the EPFL with the EPFL certain Nasdaq independence definition also The company. the relationships with family employment, business or Board review the relations between each independent the includes a requirement that director and the company on a each to subjective determination as Board has made a the review, that accordance with In subjective basis. independent director that no relationships exist exercise of interfere with the would Board, opinion of the in the that, responsibilities the independent carrying out judgment in of a director. Nasdaq rules defining “independent” director status also govern conflict of interest situations, as do Swiss best Swiss do as situations, interest of govern conflict also status director defining “independent” Nasdaq rules discussed As organization. business leading Swiss economiesuisse, a principles published by governance corporate above, a director, other than be our directors and nominees to each of that the Board of Directors has determined Darrell and Mr. not allow that would director to be considered tests a independent the director has or has had if objective of series a Our Policies Our Policies business interests, Logitech’s with which could conflict in any activities not engage employees must policy that all is our It reputation could or which its employee’s of the responsibilities with the fulfillment interfere the of which could affect adversely job, which must be performed at all times In addition, interests of Logitech. in the best employees Logitech may not use for their personal information or assets, gain or for the improper benefit of others. their position with Logitech, or Logitech’s which covers our directors, These policies are included in our Business Ethics and Conflict of Interest Policy,

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 47 120 2017 100 135 2018 $ 3,749 $ 3,291 $ 3,514 $ 3,124 51 51 (2) (1) (3)

fees for the audit of our internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley the of 404 Section with accordance in reporting financial over control internal our of audit the for fees Act of 2002, fees for the review of the interim condensed financial statements in our Quarterly Reports on Form 10- Q, fees for the audit of our consolidated financial statements in connection with the Swiss SIX filing, and fees for the engagements other or filings regulatory and statutory with connection in KPMG by provided normally are that services and accounting related to acquisitions. Total Audit fees Audit-related fees Audit and Non-Audit Fees Independent Auditors Independent Tax fees Tax (1) Audit fees. This category includes fees for the audit of our financial statements in Annual our Report on Form 10-K, (2) ASTRO and Jaybird acquisitions. Audit-related fees. This category includes the due fees for diligence related to the (3) includes fees. This category fees related to the 2016 and 2015 tax compliance and tax consulting services. Tax The following table sets forth the aggregate fees billed to us for the audit and other services provided by KPMG during the during KPMG by provided services other and audit the for us to billed fees aggregate the forth sets table following The fiscal years ended March 31, 2018and 2017 (in thousands): Under Articles Logitech’s of Incorporation, the shareholders elect or re-elect the Company’s independent auditors each Annual General Meeting. year at the audit first its assumed AG KPMG Switzerland. Zurich, AG, KPMG were 2018 year fiscal for auditors independent Logitech’s mandate for Logitech in fiscal year 2016, 2015. September 2015, They September in were Meetings General elected Annual by the at the re-elected and shareholders 2014 December as in Meeting General Logitech’s auditors at the Annual and September 2017. For purposes of U.S. securities law reporting, Santa KPMG Clara, LLP, California, served as the Company’s independent registered public AG accounting and KPMG firm KPMG for LLP are fiscal year 2018. Together, of performance the supervising for responsible is Committee Audit the Board, the by appointed As “KPMG.” as to referred the Company’s independent auditors, and recommends the election or replacement of the independent auditors to the Board of Directors. Representatives of KPMG were invited to attend all regular meetings of the Audit Committee. During fiscal year KPMG 2018, representatives attended all of the Audit Committee meetings. The in closed representatives sessions of Committee meetings. of KPMG Committee met separately four times with On a quarterly practices basis, and KPMG policies reports accounting on critical the of findings assessment of their their include audit reports and/or These review reporting. work including financial their over audit control communication of internal written Logitech’s material other and management, with discussed information financial of treatments alternative used, the on Board full the to reports Committee Audit the meeting, Board quarterly each At management. and KPMG between substance of the Committee meetings during the Moreover, responsibilities. quarter. On its fulfilling an in annual representatives senior basis, its the and Audit KPMG Committee of performance approves the KPMG’s evaluates and plan audit Audit the Committee recommends to the Board the appointment or replacement of the independent auditors, subject to Audit Committee reviews the annual its independence. report provided by KPMG as to The shareholder approval.

executive

The payments indemnification

officers. The officers. and other entities.

and executive Aebischer, the President of the EPFL, joined of the the President Aebischer,

of the Board. of our directors our of 50 In fiscal year 2018, we did approximately million USD 2.5 business of

independent committee independent committee agreement with each campus since 2013.

Innovation Park, a foundation controlled the EPFL a foundation by Innovation Park,

Committee or another Committee or another an indemnification an Mr. De Luca, qualifies as “independent” Mr. Nasdaq rules include in accordance with the Nasdaq rules. The

and the EPFL

the Audit have entered into Certain Relationships and Related Transactions Related and Relationships Certain Governance Practices and Swiss Best Corporate Nasdaq Rules SEC Rules officers and other employees. If in a particular circumstance the Board concludes that there is or may be a perceived be a may there is or Board concludes particular the that in a circumstance employees. If and other officers determine relevant business units to our if work with Legal instruct our department to Board will interest, the conflict of require the these conflict rules Any waivers or executive officer with regard to a director to of interest. there is a conflict a related Board, and prior approval laws must be party transaction under U.S. securities any transaction that is of the approved by Our Policies Our Policies business interests, Logitech’s with which could conflict in any activities not engage employees must policy that all is our It reputation could or which its employee’s of the responsibilities with the fulfillment interfere the of which could affect adversely job, which must be performed at all times In addition, interests of Logitech. in the best employees Logitech may not use for their personal information or assets, gain or for the improper benefit of others. their position with Logitech, or Logitech’s which covers our directors, These policies are included in our Business Ethics and Conflict of Interest Policy, best Swiss do as situations, interest of govern conflict also status director defining “independent” Nasdaq rules discussed As organization. business leading Swiss economiesuisse, a principles published by governance corporate above, a director, other than be our directors and nominees to each of that the Board of Directors has determined Darrell and Mr. not allow that would director to be considered tests a independent the director has or has had if objective of series a certain Nasdaq independence definition also The company. the relationships with family employment, business or Board review the relations between each independent the includes a requirement that director and the company on a each to subjective determination as Board has made a the review, that accordance with In subjective basis. independent director that no relationships exist exercise of interfere with the would Board, opinion of the in the that, responsibilities the independent carrying out judgment in of a director. In addition to the Logitech and Nasdaq policies and rules described SEC has above, the specific disclosure requirements affiliated entities and persons or executive officer or director involving a transactions Logitech and of types covering certain with them. Logitech has a long-standing relationship with the École Polytechnique Fédérale de Lausanne (EPFL) and has based its Swiss headquarters on the EPFL organization and event projects, research engaged also in We payments. related and lease office our primarily covered Patrick 2016, September In EPFL. the with projects sponsorships, and other Aebischer President retired as the EPFL at the end of December of 2016. In January our board directors. of Dr. our non-employee at the 2017, Edouard Bugnion, one of President for Information Systems directors, became Vice transaction any to, party EPFL. Dr. Aebischer and Dr. Bugnion are also professors at the EPFL. a be to plans no have we and to, party a been not have we 2017 1, April since EPFL, the than Other immediate the of member or any series or of shares, similar our transactions of in 5% which the than amount more involved of exceeded holder or will officer, exceed executive USD nominee, 120,000 director and in director, which current any family of any of the foregoing, had or will have a direct or indirect material interest. We agreements require us to indemnify our directors and officers to the fullest extent permitted by Swiss and California law. None of the following persons has been indebted to Logitech or its subsidiaries at any time since the beginning of fiscal immediate the of member any director; a as election for nominee any officers; executive or directors our of any 2018: year family of any of our directors, or executive nominees officers for director; any corporation or organization of which any of our directors, executive officers or nominees is an executive business); of officer course ordinary or the in into partner entered debt trade or (except securities equity is, of class directly any of more or or 10% indirectly, of the owner beneficial and any trust or other estate in which any of the directors, executive officers or nominees for director has a substantial beneficial interest or for which such person serves as a trustee or in a similar capacity. with the EPFL 53 Section 16(a) Beneficial Ownership Reporting Compliance Reporting Ownership Beneficial 16(a) Section Section 16 of the Exchange Act requires Logitech’s directors, executive officers and any persons who own more than 10% 10% than more own who persons any and officers executive directors, Logitech’s requires Act Exchange the of 16 Section of shares, Logitech’s to file initial reports of ownership and reports of changes in ownership with the SEC. Such persons are required by SEC regulation to furnish Logitech with copies of all Section 16(a) practice, forms our that administrative they staff file. As assists a our matter executive of officers and directors in preparing reporting ownership typically changes, and on their behalf. files these reports initial ownership reports and believe all that Section 16(a) filing were requirements in fiscal year 2018. met We 52

52 approved at the next scheduled Audit Committee meeting. The Audit Committee Audit The meeting. Committee Audit scheduled next the at approved

Report of the Audit Committee Report of the Independent Auditors Independent or its delegate can pre-approve types of services to be performed by KPMG with a set dollar limit per type of service. The service. of type per limit dollar set a with KPMG by performed be to services of types pre-approve can delegate its or limit dollar and scope the within is performed work the that ensuring for responsible is Controller Corporate service President, or Vice project each of status the Committee Audit the to report must Management Committee. Audit the by approved as provided by KPMG. The Audit Committee pre-approves all audit and non-audit services provided by KPMG. This pre-approval before must occur the auditor is engaged. The Audit Committee pre-approves associated with categories each Usage category. of KPMG of fees against the target non-audit is presented to Audit the services Committee at each in- and re- be must a year a than longer last that target Services needed. as requested amounts additional fee with meeting, quarterly person Audit Committee. approved by the Audit Committee can delegate the pre-approval The ability to The Audit a Committee. single independent member of the services all communicate must delegate of audits and processes reporting financial and accounting Logitech’s overseeing for responsible is Committee Audit The Logitech’s financial statements. The Audit Committee acts only in assurances of management, which an has primary responsibility for Logitech’s financial oversight statements and the reports, Logitech’s on capacity opinion an expressing and for responsible is which relies auditors, independent Logitech’s on KPMG, as well the as auditors, internal work and conformity of Logitech’s audited financial statements to generally accepted accounting internal control over financial reporting. of Logitech’s effectiveness principles and attesting to the copy of the Charter can be found our on A Audit Committee. The Board of Directors has adopted a written charter the for select “Audit Committee Charter” under “Corporate Governance.” view the charter, To . website at http://ir.logitech.com Audit The Committee has reviewed and discussed our audited financial statements for the fiscal year ended March 31, 2018, with our management. In addition, Audit the Committee has discussed with the independent auditors the matters Public the by adopted as Committees,” Audit with “Communications 1301, Standard Auditing by discussed be to required Accounting Oversight Board. Company The Audit Committee has received the written disclosures and the letter from the independent accountant applicable required by requirements of the accountant independent the Public with discussed Company has Accounting and independence, concerning Oversight Committee Audit Board the with regarding communications the independent accountant’s independence. the independent accountant’s Based on the reviews and year fiscal discussions the referred for to 10-K above, Audit Form the on Committee Report recommended Annual to the Logitech’s Board in of included Directors be statements financial consolidated audited the that ended March 31, 2018. Board Audit Committee of the the Submitted by Didier Hirsch, Chairperson Pre-Approval Procedures and Policies and Procedures Pre-Approval Sue Gove Yeh Lung

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 53 53 Section 16(a) Beneficial Ownership Reporting Compliance Reporting Ownership Beneficial 16(a) Section Section 16 of the Exchange Act requires Logitech’s directors, executive officers and any persons who own more than 10% 10% than more own who persons any and officers executive directors, Logitech’s requires Act Exchange the of 16 Section of shares, Logitech’s to file initial reports of ownership and reports of changes in ownership with the SEC. Such persons are required by SEC regulation to furnish Logitech with copies of all Section 16(a) practice, forms our that administrative they staff file. As assists a our matter executive of officers and directors in preparing reporting ownership typically changes, and on their behalf. files these reports initial ownership reports and believe all that Section 16(a) filing were requirements in fiscal year 2018. met We 52

approved at the next scheduled Audit Committee meeting. The Audit Committee Audit The meeting. Committee Audit scheduled next the at approved

Independent Auditors Independent Audit Committee Report of the Pre-Approval Procedures and Policies and Procedures Pre-Approval The Audit Committee pre-approves all audit and non-audit services provided by KPMG. This pre-approval before must occur the auditor is engaged. The Audit Committee pre-approves associated with categories each Usage category. of KPMG of fees against the target non-audit is presented to Audit the services Committee at each in- and re- be must a year a than longer last that target Services needed. as requested amounts additional fee with meeting, quarterly person Audit Committee. approved by the Audit Committee can delegate the pre-approval The ability to The Audit a Committee. single independent member of the services all communicate must delegate The service. of type per limit dollar set a with KPMG by performed be to services of types pre-approve can delegate its or limit dollar and scope the within is performed work the that ensuring for responsible is Controller Corporate service President, or Vice project each of status the Committee Audit the to report must Management Committee. Audit the by approved as provided by KPMG. The Audit Committee is responsible for overseeing Logitech’s accounting and financial reporting processes and audits of audits and processes reporting financial and accounting Logitech’s overseeing for responsible is Committee Audit The Logitech’s financial statements. The Audit Committee acts only in assurances of management, which an has primary responsibility for Logitech’s financial oversight statements and the reports, Logitech’s on capacity opinion an expressing and for responsible is which relies auditors, independent Logitech’s on KPMG, as well the as auditors, internal work and conformity of Logitech’s audited financial statements to generally accepted accounting internal control over financial reporting. of Logitech’s effectiveness principles and attesting to the copy of the Charter can be found our on A Audit Committee. The Board of Directors has adopted a written charter the for select “Audit Committee Charter” under “Corporate Governance.” view the charter, To . website at http://ir.logitech.com Audit The Committee has reviewed and discussed our audited financial statements for the fiscal year ended March 31, 2018, with our management. In addition, Audit the Committee has discussed with the independent auditors the matters Public the by adopted as Committees,” Audit with “Communications 1301, Standard Auditing by discussed be to required Accounting Oversight Board. Company The Audit Committee has received the written disclosures and the letter from the independent accountant applicable required by requirements of the accountant independent the Public with discussed Company has Accounting and independence, concerning Oversight Committee Audit Board the with regarding communications the independent accountant’s independence. the independent accountant’s Based on the reviews and year fiscal discussions the referred for to 10-K above, Audit Form the on Committee Report recommended Annual to the Logitech’s Board in of included Directors be statements financial consolidated audited the that ended March 31, 2018. Board Audit Committee of the the Submitted by Didier Hirsch, Chairperson Sue Gove Yeh Lung 24% 22% (Grant Based Units Award Units Performance- FY 2018 Annual 2018 FY Date Fair Value) Restricted Stock $192,463$962,256 $304,279 $418,281$288,695 $1,521,299 $669,382 $456,402 $1,924,512 $3,042,567 39% Fair Value) (Grant Date Time-Based Units Award Units Restricted Stock Units Time Vested FY 2018 Annual 2018 FY 61% Restricted Stock Based Units Performance- Long-term Equity Incentives Annual Performance-based Cash Compensation Fixed Compensation 115% 140% 100% 100% 115% OTHER NEO TARGET COMPENSATION MIX OTHER NEO TARGET COMPENSATION 54% Bonus as a Target Bonus Target Percentage of

FY 2018 Annual 2018 FY 55 13% 16% 4% 8% 0% 4% 0% from FY 2017 from FY FY 2018 Base FY Salary Increase 39% Restricted Stock Units Time Vested 61% Based Units Performance- Long-term Equity Incentives Annual Performance-based Cash Compensation Fixed Compensation CEO TARGET COMPENSATION MIX 71% Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Officer Named Executive Guerrino De Luca Executive Compensation Highlights Compensation Executive to contributed have and performance strong drive to help program compensation executive our by created incentives The our with Consistent pay-for-performance. to commitment our demonstrate and creation value shareholder and growth our actions compensation following the took Committee Compensation the philosophy, compensation and performance strong fiscal year 2018: for for our executive officers and Performance-Based Compensation Emphasis on Variable operational and financial corporate our on based year to year from varies officers executive our of compensation annual The pay performance-based “variable” emphasizes program compensation executive Our performance. individual and results time-based and performance-based as well as incentives long-term and short-term balance to seeks and pay “fixed” over incentives. In fiscal year 2018, the majority of the target total direct compensation of our CEO consisted of performance- based including pay, cash awarded primarily under our annual pay, Fixed bonus criteria. plan performance variable and pre-established long-term while of incentives achievement 2018, in on the year based form is fiscal of value performance- which in for compensation awards equity direct based total target CEO’s our of 13% only up made salary, base of consisting compensation. direct total target his of 87% up made incentives, equity long-term and bonus annual both of consisting pay, This same philosophy was applied to our other executive officers. The following charts show the percentages of target "variable" year 2018:pay versus target "fixed" pay for fiscal too. management. were: Peripherals saw solid growth and PC Peripherals saw cost and working capital 2018 financial results. in eight years. 54 54 products and improved Home - grew double digits, 20% to our highest level same period. and Smart Management’s Discussion and Analysis of Financial Analysis of Financial Condition and Results of Operations Discussion and Management’s Executive Officers year 2018, For fiscal our Named Executive Officers Officers.” detailed discussion of our fiscal year our for a more detailed discussion of & Accessories Meeting. strength of our strategy. strategy. our a successful fiscal year 2018, strength of demonstrating the 2018 Business Highlights cash flow from operations grew continued to introduce innovative new continued to Gaming, Tablet Gaming, Tablet and the SMI Expanded for the U.S. dollars. Business Group; and Collaboration, Video Many categories - all our regions. categories and in all our product sales across grew net We Our April the period total shareholder for Our return to March 20171, 500 31, 2018 was 17%, which outperformed the S&P delivered our highest ever fiscal year net sales at $2.57 billion, up 16 percent over fiscal year 2017 sales net in We We Executive Summary Compensation Discussion and Analysis Discussion and Compensation Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Logitech had • De Luca, our Executive Chairman; Guerrino • Darrell, our President and Chief Executive Officer; Bracken • our Chief Financial Officer; Pilette, Vincent • President, Creativity & Productivity Vice Stolk, our Executive Chairman, Logitech Europe S.A. and Senior Marcel • Operations. President, Worldwide Joseph Sullivan, our Senior Vice L. meet to will continue has and compensation program executive our design of believes the Compensation Committee The for above-market rewards packages that provide market-competitive compensation executives with providing goal of our our performance when Logitech outperforms both our internal goals and the overall market, and limited when rewards Logitech’s our Compensation does not meet these objectives. Overall, Committee has developed an executive compensation program our performance and reward both our shareholders and Company’s it believes will to drive the that provide an incentive executives. Fiscal Year Please see the section entitled in our Annual Report This Compensation Discussion and Analysis is intended to assist our shareholders in understanding our executive This Compensation Discussion and compensation program by providing of our executive compensation-related an overview policies, and decisions practices, for fiscal year 2018. It also explains we how determined elements the material of compensation for our Chief Executive and Chief (other than our Chief Executive Officer and the three executive officers our Chief Financial Officer, Officer, to as we refer year 2018,and who for fiscal highly-compensated executive officers who were our most Financial Officer) our “Named Executive This Compensation This Compensation Report has been designed comply with to both the statement disclosure proxy rules under U.S. securities Remuneration in Report prepared by a Report is supplemented this law purposes, regulations. Swiss For Swiss laws and compliance Ordinance with the against compensation excessive exchange in stock listed companies in (the Switzerland Annual Report, Invitation, Proxy and for our 2018 Statement This is an Report integrated our part of “Minder Ordinance”). Annual General

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 24% 22% (Grant Based Units Award Units Performance- FY 2018 Annual 2018 FY Date Fair Value) Restricted Stock $192,463$962,256 $304,279 $418,281$288,695 $1,521,299 $669,382 $456,402 $1,924,512 $3,042,567 39% Fair Value) (Grant Date Time-Based Units Award Units Restricted Stock Units Time Vested FY 2018 Annual 2018 FY 61% Restricted Stock Based Units Performance- Long-term Equity Incentives Annual Performance-based Cash Compensation Fixed Compensation 115% 115% 140% 100% 100% OTHER NEO TARGET COMPENSATION MIX OTHER NEO TARGET COMPENSATION 54% Bonus as a Target Bonus Target Percentage of

55 FY 2018 Annual 2018 FY 55 13% 16% 0% 4% 8% 0% 4% from FY 2017 from FY FY 2018 Base FY Salary Increase 39% Restricted Stock Units Time Vested 61% Based Units Performance- Long-term Equity Incentives Annual Performance-based Cash Compensation Fixed Compensation CEO TARGET COMPENSATION MIX

71%

Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Named Executive Officer Named Executive Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Executive Compensation Highlights Compensation Executive to contributed have and performance strong drive to help program compensation executive our by created incentives The our with Consistent pay-for-performance. to commitment our demonstrate and creation value shareholder and growth our actions compensation following the took Committee Compensation the philosophy, compensation and performance strong fiscal year 2018: for for our executive officers Emphasis on Variable and Performance-Based Compensation Emphasis on Variable operational and financial corporate our on based year to year from varies officers executive our of compensation annual The pay performance-based “variable” emphasizes program compensation executive Our performance. individual and results time-based and performance-based as well as incentives long-term and short-term balance to seeks and pay “fixed” over incentives. In fiscal year 2018, the majority of the target total direct compensation of our CEO consisted of performance- based including pay, cash awarded primarily under our annual pay, Fixed bonus criteria. plan performance variable and pre-established long-term while of incentives achievement 2018, in on the year based form is fiscal of value performance- which in for compensation awards equity direct based total target CEO’s our of 13% only up made salary, base of consisting compensation. direct total target his of 87% up made incentives, equity long-term and bonus annual both of consisting pay, This same philosophy was applied to our other executive officers. The following charts show the percentages of target "variable" year 2018:pay versus target "fixed" pay for fiscal too. management. were: Peripherals saw solid growth and PC Peripherals saw cost and working capital 2018 financial results. in eight years. 54 products and improved Home - grew double digits, 20% to our highest level same period. and Smart Management’s Discussion and Analysis of Financial Analysis of Financial Condition and Results of Operations Discussion and Management’s Executive Officers year 2018, For fiscal our Named Executive Officers Officers.” detailed discussion of our fiscal year our for a more detailed discussion of & Accessories Meeting. strength of our strategy. strategy. our a successful fiscal year 2018, strength of demonstrating the 2018 Business Highlights cash flow from operations grew continued to introduce innovative new continued to Gaming, Tablet Gaming, Tablet and the SMI Expanded for the Business Group; and U.S. dollars. Collaboration, Video Many categories - all our regions. categories and in all our product sales across grew net We Our April the period total shareholder for Our return to March 20171, 500 31, 2018 was 17%, which outperformed the S&P delivered our highest ever fiscal year net sales at $2.57 billion, up 16 percent over fiscal year 2017 sales net in We We Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Analysis Discussion and Compensation Executive Summary Please see the section entitled in our Annual Report This Compensation This Compensation Report has been designed comply with to both the statement disclosure proxy rules under U.S. securities Remuneration in Report prepared by a Report is supplemented this law purposes, regulations. Swiss For Swiss laws and compliance Ordinance with the against compensation excessive exchange in stock listed companies in (the Switzerland Annual Report, Invitation, Proxy and for our 2018 Statement This is an Report integrated our part of “Minder Ordinance”). Annual General Analysis is intended to assist our shareholders in understanding our executive This Compensation Discussion and compensation program by providing of our executive compensation-related an overview policies, and decisions practices, for fiscal year 2018. It also explains we how determined elements the material of compensation for our Chief Executive and Chief (other than our Chief Executive Officer and the three executive officers our Chief Financial Officer, Officer, to as we refer year 2018,and who for fiscal highly-compensated executive officers who were our most Financial Officer) our “Named Executive • De Luca, our Executive Chairman; Guerrino • Darrell, our President and Chief Executive Officer; Bracken • our Chief Financial Officer; Pilette, Vincent • President, Creativity & Productivity Vice Stolk, our Executive Chairman, Logitech Europe S.A. and Senior Marcel • Operations. President, Worldwide Joseph Sullivan, our Senior Vice L. meet to will continue has and compensation program executive our design of believes the Compensation Committee The for above-market rewards packages that provide market-competitive compensation executives with providing goal of our our performance when Logitech outperforms both our internal goals and the overall market, and limited when rewards Logitech’s our Compensation does not meet these objectives. Overall, Committee has developed an executive compensation program our performance and reward both our shareholders and Company’s it believes will to drive the that provide an incentive executives. Fiscal Year Logitech had $15,954,866 Compensation Actual Aggregate $20,200,000 CHF 4,600,000 CHF 4,221,245 Approved Maximum Aggregate Compensation 57 To comply with the Minder Ordinance we have no severance we have no severance the Minder Ordinance with comply To –

2020. We do not provide any “gross-ups” or tax payments in connection with any tax payments in connection with provide “gross-ups” any or do not We – stock unit awards.

Other than our Section 401(k) plan and our Swiss Pension than our Section 401(k) plan and plan generally our – Other available

2016-2017 Board Year Period Fiscal year 2018 voting results. We do not reprice options to purchase do not reprice options purchase registered shares without shareholder to our – We Fiscal Year for Fiscal Year

our executive officers. We do not pay dividends or dividend equivalents on unvested or unearned restricted stock or unvested dividends or dividend equivalents on pay do not We –

Proposal 2 – Advisory Vote to Approve Executive Compensation, Proposal 11 – Approval of – Approve Executive Compensation, Proposal 11 to Advisory Vote Proposal 2 – (1) No Severance or Change of Control Arrangements No Severance or Change of Control contribution retirement defined benefit or not offer we do Switzerland, respectively, and the U.S. all employees to in plans or arrangements for Payments or “Gross-Ups” No Tax This means we do other than for our standard relocation benefits. compensation element for our executive officers, payments or of control any change with reimbursement in connection tax “gross-up” or tax any excise provide not benefits. No Unearned Dividends unit or performance-based restricted No Stock Option Repricing approval. or change control or change than acceleration arrangements (other of of equity awards of vesting as provided award in our equity Darrell, Pilette, (Messrs. Team including Management of our Group members officers, for our executive agreements) Stolk and Sullivan). Retirement Programs No Special Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The portion Board compensation attributable of Executive to our Chairman, typically calculated on a fiscal year basis, is estimated based on actual Group Management Team Board of Directors equity grants made and bonuses paid during the applicable Board year and pro-rated amounts for his salary and other compensation for each fiscal year fiscal salary and other compensation for each his bonuses paid pro-rated amounts for grants made and year and equity during the applicable Board applicable in the Board year by month. 1 What We Do Not Do Do Not What We Say-on-Pay As required under the U.S. securities laws, Logitech provides our shareholders the ability to periodically cast advisory votes remain to committed Annual General Meeting. We on executive compensation, as reflected in the proposals for our 2018 our Compensation actions, and our executive compensation practices and on providing clear and thorough disclosure consider the Committee will carefully the maximum Minder Ordinance, we instituted annual binding the shareholder votes on Beginning 2015, in compliance with in consistent with the Team members of our Group Management aggregate compensation and for amounts for our directors Annual Incorporation 2014 Articles of at our compensation shareholders structure that approved to our in amendments General Meeting. Annual General Meeting, shareholders approved amount compensation a maximum aggregate of for the Group At our 2016 The total actual compensation paid compared to the amount approved and for the Board of Directors. Team Management were as follows: Annual General Meeting, 86% of the votes cast on our annual Say-on-Pay proposal supported the compensation At our 2017 the 2017 to for Directors Board of 92% approved the aggregate compensation for the our named executive officers, of for fiscal year 2019. Team and 88% approved the aggregate compensation of our Group Management Year 2018 Board The Compensation Committee was mindful of shareholder support for our pay-for-performance compensation philosophy in maintaining our general compensation practices and setting fiscal year 2018 compensation for our executive officers. our performance and strategy and Our CEO and CFO regularly speak with our shareholders about the Company, communicate any feedback on our compensation plans back to the Compensation Committee which it considers when this year’sfrom the results our shareholders and consider engage with will continue to making compensation decisions. We and future advisory and binding votes on executive compensation as well feedback our shareholders. as from For more information regarding our annual Say-on-Pay proposal for fiscal year 2018 and our binding votes on aggregate compensation, see Approval of Compensation and Proposal 12 – Year Compensation for the Board of Directors for the 2018 to 2019 Board for the Group Management Team ______     The Compensation Committee designs our executive 56 56 Our Board of Directors reviews on an annual basis our succession strategies and plans for of an executive officer or if the executive officer knew of the fraud or misconduct. or if the executive officer of an executive officer The post-employment equity post-employment The – Agreements Award Equity in Arrangements Control of Change “Double-Trigger” are based on a “double-trigger” arrangement that provides for compensation arrangements for our executive officers employment acceleration of of termination to time-based related payment equity cash only any provide in not the do we event of below, noted (i) As a employment. change of termination in control of the Company and (ii) a qualifying or change control. of collateral as them by owned securities Company any Prohibition pledging on Hedging from and Pledging – and Under our them Insider Trading we Policy, by prohibit our owned executive officers securities from Company any hedging for a loan. Succession Planning – our most critical positions. compensation program to use performance-based short-term and long-term incentive compensation awards to align our with of shareholders. the interests the interests of our executive officers long- deliver to awards equity uses Committee Compensation The – Compensation Equity Long-Term Emphasize over earned be may or vest awards equity These officers. executive our to opportunities compensation incentive term multi-year periods, which better serves our long-term value and creation goals objectives. retention executive our to benefits personal other or perquisites provide not do generally We – Perquisites Executive Limited participate The in executive officers our health and welfare officers. benefit programs on the same basis as all of our requires employees. which officers executive and directors our for policy ownership stock a maintain We – Policy Ownership Stock each of them to own a specified amount of our registered shares as a multiple of their base salary or annual board retainer. Compensation Recovery Policy – We have adopted a policy that provides for the recoupment of bonus and other incentive compensation and equity compensation from our misconduct executive officers resulting from fraud or intentional Our Board of Directors maintains a Compensation Committee comprised Committee Compensation a maintains Directors of Board Our – Independence Committee Compensation solely of independent directors. Independent Compensation Committee Advisors – The Compensation Committee engages and retains its own independent advisors and reviews their independence annually. Annual Compensation used information Review other and group peer – compensation the of review The a including strategy, Compensation and philosophy compensation Committee conducts an annual review of for comparative purposes. our executive Compensation-Related Risk Assessment – The Compensation Committee conducts an annual evaluation of our compensation programs, policies, and practices, to ensure that they are designed to reflect an appropriate level of risk-taking but do not encourage our employees to take excessive or unnecessary risks that could have a material adverse impact on the Company. Emphasize Performance-based Incentive Compensation – Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Executive Compensation Best Practices Compensation Executive We strive to maintain sound executive compensation policies and practices, including compensation-related corporate governance standards, consistent with our compensation policies and practices in place, including both those executive that we have implemented to drive performance and compensation philosophy. We long-term interests: those that either prohibit behaviors or minimize that we do not believe serve our shareholders’ have the following executive Do What We            

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement $15,954,866 Compensation Actual Aggregate $20,200,000 CHF 4,600,000 CHF 4,221,245 Approved Maximum Aggregate Compensation 57 57 To comply with the Minder Ordinance we have no severance have no severance Ordinance we the Minder with comply To –

2020. We do not provide any “gross-ups” or tax payments in connection with any tax payments in connection with provide “gross-ups” any or do not We – stock unit awards.

Other than our Section 401(k) plan and our Swiss Pension than our Section 401(k) plan and plan generally our – Other available

Period 2016-2017 Board Year Fiscal year 2018 voting results. We do not reprice options to purchase do not reprice options purchase registered shares without shareholder to our – We Fiscal Year for Fiscal Year

our executive officers. We do not pay dividends or dividend equivalents on unvested or unearned restricted stock or unvested dividends or dividend equivalents on pay do not We –

Proposal 2 – Advisory Vote to Approve Executive Compensation, Proposal 11 – Approval of – Approve Executive Compensation, Proposal 11 to Advisory Vote Proposal 2 – (1) or change control or change than acceleration arrangements (other of of equity awards of vesting as provided award in our equity Darrell, Pilette, (Messrs. Team including Management of our Group members officers, for our executive agreements) Stolk and Sullivan). Retirement Programs No Special contribution retirement defined benefit or not offer we do Switzerland, respectively, and the U.S. all employees to in plans or arrangements for Payments or “Gross-Ups” No Tax approval. unit or performance-based restricted No Severance or Change of Control Arrangements No Severance or Change of Control This means we do other than for our standard relocation benefits. compensation element for our executive officers, payments or of control any change with reimbursement in connection tax “gross-up” or tax any excise provide not benefits. No Unearned Dividends No Stock Option Repricing Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The portion Board compensation attributable of Executive to our Chairman, typically calculated on a fiscal year basis, is estimated based on actual Group Management Team Board of Directors equity grants made and bonuses paid during the applicable Board year and pro-rated amounts for his salary and other compensation for each fiscal year fiscal other compensation for each salary and his bonuses paid pro-rated amounts for grants made and year and equity during the applicable Board applicable in the Board year by month. 1 Say-on-Pay As required under the U.S. securities laws, Logitech provides our shareholders the ability to periodically cast advisory votes remain to committed Annual General Meeting. We on executive compensation, as reflected in the proposals for our 2018 our Compensation actions, and our executive compensation practices and on providing clear and thorough disclosure consider the Committee will carefully the maximum Minder Ordinance, we instituted annual binding the shareholder votes on Beginning 2015, in compliance with in consistent with the Team members of our Group Management aggregate compensation and for amounts for our directors Annual Incorporation 2014 Articles of at our compensation shareholders structure that approved to our in amendments General Meeting. Annual General Meeting, shareholders approved amount compensation a maximum aggregate of for the Group At our 2016 The total actual compensation paid compared to the amount approved and for the Board of Directors. Team Management were as follows: Annual General Meeting, 86% of the votes cast on our annual Say-on-Pay proposal supported the compensation At our 2017 the 2017 to for Directors Board of 92% approved the aggregate compensation for the our named executive officers, of for fiscal year 2019. Team and 88% approved the aggregate compensation of our Group Management Year 2018 Board The Compensation Committee was mindful of shareholder support for our pay-for-performance compensation philosophy in maintaining our general compensation practices and setting fiscal year 2018 compensation for our executive officers. our performance and strategy and Our CEO and CFO regularly speak with our shareholders about the Company, communicate any feedback on our compensation plans back to the Compensation Committee which it considers when this year’sfrom the results our shareholders and consider engage with will continue to making compensation decisions. We and future advisory and binding votes on executive compensation our shareholders. as well feedback For more as from information regarding our annual Say-on-Pay proposal for fiscal year 2018 and our binding votes on aggregate compensation, see Approval of Compensation and Proposal 12 – Year Compensation for the Board of Directors for the 2018 to 2019 Board for the Group Management Team ______What We Do Not Do Do Not What We      The Compensation Committee designs our executive 56 Our Board of Directors reviews on an annual basis our succession strategies and plans for of an executive officer or if the executive officer knew of the fraud or misconduct. or if the executive officer of an executive officer The post-employment equity post-employment The – Agreements Award Equity in Arrangements Control of Change “Double-Trigger” are based on a “double-trigger” arrangement that provides for compensation arrangements for our executive officers employment acceleration of of termination to time-based related payment equity cash only any provide in not the do we event of below, noted (i) As a employment. change of termination in control of the Company and (ii) a qualifying or change control. of collateral as them by owned securities Company any Prohibition pledging on Hedging from and Pledging – and Under our them Insider Trading we Policy, by prohibit our owned executive officers securities from Company any hedging for a loan. Succession Planning – our most critical positions. Our Board of Directors maintains a Compensation Committee comprised Committee Compensation a maintains Directors of Board Our – Independence Committee Compensation solely of independent directors. Independent Compensation Committee Advisors – The Compensation Committee engages and retains its own independent advisors and reviews their independence annually. Annual Compensation used information Review other and group peer – compensation the of review The a including strategy, Compensation and philosophy compensation Committee conducts an annual review of for comparative purposes. our executive Compensation-Related Risk Assessment – The Compensation Committee conducts an annual evaluation of our compensation programs, policies, and practices, to ensure that they are designed to reflect an appropriate level of risk-taking but do not encourage our employees to take excessive or unnecessary risks that could have a material adverse impact on the Company. Emphasize Performance-based Incentive Compensation – compensation program to use performance-based short-term and long-term incentive compensation awards to align our with of shareholders. the interests the interests of our executive officers long- deliver to awards equity uses Committee Compensation The – Compensation Equity Long-Term Emphasize over earned be may or vest awards equity These officers. executive our to opportunities compensation incentive term multi-year periods, which better serves our long-term value and creation goals objectives. retention executive our to benefits personal other or perquisites provide not do generally We – Perquisites Executive Limited participate The in executive officers our health and welfare officers. benefit programs on the same basis as all of our requires employees. which officers executive and directors our for policy ownership stock a maintain We – Policy Ownership Stock each of them to own a specified amount of our registered shares as a multiple of their base salary or annual board retainer. Compensation Recovery Policy – We have adopted a policy that provides for the recoupment of bonus and other incentive compensation and equity compensation from our misconduct executive officers resulting from fraud or intentional Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Executive Compensation Best Practices Compensation Executive We strive to maintain sound executive compensation policies and practices, including compensation-related corporate governance standards, consistent with our compensation policies and practices in place, including both those executive that we have implemented to drive performance and compensation philosophy. We long-term interests: those that either prohibit behaviors or minimize that we do not believe serve our shareholders’ have the following executive Do What We             59 Chairman) as described below. appropriate form and performance goals for our equity compensation program. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Before the beginning of each the fiscal Compensation year, Committee reviews our executive compensation program to assess whether our compensation elements, actions, and decisions (i) are properly coordinated, (ii) are aligned with our executive our for incentives long-term and short-term appropriate provide (iii) goals, corporate and values, mission, vision, comparable in executives of compensation the with competitive are (v) and purposes, intended their achieve (iv) officers, positions at the companies with which we compete for executive talent. Following this assessment, the Compensation and then makes recommendations to the Compensation Committee for each element of compensation. Using his evaluation his Using compensation. of At the beginning of element our each CEO year, reviews the prior year’seach performance of our executive for officers who report to him Committee Compensation the to recommendations makes then and of each adjustments, executive salary officer’s base performance cover recommendations and these taking into year, consideration preceding historical the compensation during awards performance corporate to our our and executive officers executive individual the for results, awards equity of form the our in incentives long-term and on payments, bonus actual opportunities, based bonus cash annual target Chairman) Executive our and himself than (other officers executive our of each officer’s contribution to these results, and the executive officer’s performance decisions makes and recommendations toward these reviews then Committee Compensation The achieving goals. performance individual the executive officer’s as well as each individual compensation element. as to the target total direct compensation of each executive officer, Committee makes any necessary or appropriate modifications to our existing plans and arrangements or adopts new plans new adopts or arrangements and plans existing our to modifications appropriate or necessary any makes Committee or arrangements. The Compensation Committee also conducts an annual review of our executive compensation strategy to ensure that it is appropriately aligned with our business strategy and Committee reviews and changes market trends in competitive compensation as further described practices, below. achieving our desired objectives. Further, the Compensation The factors considered by the Compensation Committee in determining the compensation of our executive officers for fiscal year 2018 included: • performance; Each individual executive’s • experience, skills, qualifications and marketability; Each individual executive’s • against performance financial goals and objectives; The Company’s • relative performance to both industry competitors and compensation its peer group; The Company’s • compensation in a ranking of peer compensation; The positioning of the amount of each executive’s • Executive our peer group; and The compensation practices of the Company’s of compensation the and compensation • own his to respect with (except decisions. CEO its our of making recommendations in The manner formulaic or predetermined any in factors these weight not did Committee knowledge Compensation experience, The individual their of light in information this considered Committee Compensation the of members The of the knowledge Company, of each executive knowledge officer, of the competitive market, and business judgment in making their decisions regarding executive compensation and our executive program. compensation As part of this process, our Executive Chairman works closely compensation of with our CEO. The Compensation Committee, the in consultation with the Compensation other non-employee members of Committee the in determining the Board of Directors, also evaluates the performance of our Executive Chairman and our CEO each year payments, bonus cash actual opportunities, bonus and cash annual target adjustments, salary base makes their regarding decisions all and long-term incentives in the form of equity awards. Our Executive Chairman and our CEO are not present during any of the deliberations regarding their own compensation. Role of our CEO officers, executive other our of compensation the structure determining the in Committee recommend Compensation the to with Committee closely works Compensation CEO the Our with works CEO our Typically, Chairman. Executive our excluding of the annual bonus plan, and to identify and develop corporate performance objectives for determine to such Committee Compensation the plan, with works and also CEO Our to measures. selected evaluate the against performance actual the 58 58 high-growth, global company in highly competitive and rapidly evolving markets; risk based on the Company’s performance, while maintaining controls over inappropriate risk-taking by factoring in both annual and long-term performance; share value; and potential future contribution for through long-term equity incentive awards. Compensation-Setting Process Compensation-Setting Compensation Philosophy and Guiding Principles Guiding and Philosophy Compensation Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Role of the Compensation Committee The Compensation Committee, among its officers. executive other our responsibilities, of compensation establishes specific the our including program, overall compensation executive compensation our approves philosophy and reviews and The Compensation Committee has the authority to retain compensation consultants and other advisors, including responsibilities legal and duties, Company authority, Committee’s our Compensation The responsibilities. on its out carrying available in assist to is counsel, charter The warranted. as updated and annually reviewed is which charter, its in described are . website at http://ir.logitech.com of compensation the approves and philosophy compensation overall our determines Committee Compensation the While our executive officers, it considers the recommendations of its compensation consultants and other advisors, as well as our CEO, our CFO, our head of People & Culture, and our compensation makes department. The all Compensation Committee final decisions regarding executive compensation, including periodically opportunities, actual Committee base cash Compensation bonus The salary payments, needed. and as levels, long-term times incentives other target in at the and annual form basis of regularly-scheduled equity cash a awards. on The bonus meets Compensation Committee Board the to reports Committee Compensation the of chair The Directors. of Board our with matters compensation reviews of Directors on the activities of the Compensation Committee meetings are available to the members of the Board of Directors. Compensation Committee at quarterly board meetings, and the minutes of the We have designed have designed our executive program compensation to: We • Provide compensation sufficient to attract and retain the level of talent needed to create and manage an innovative, • Support a performance-oriented culture; • at compensation total of portion significant a place and compensation variable and fixed between balance a Maintain • Provide a balance between and long-term short-term objectives and results; • increasing to compensation of portion significant a tying by interests shareholders’ with compensation executive Align • her or his and incentives, cash short-term and salary base through performance past and role executive’s the Reflect employees, and executives best the motivating and retaining, attracting, of part central a is compensation while However, we believe it is not the Committee Compensation the sole both regard, or this In shareholders. exclusive our for reason results achieve to why hard work exceptional they why or executives Logitech, or employees choose to join and can stay employees and at executives which in opportunities and environment working a providing that believe management and develop, express their individual potential, and make a difference are also a key part of Logitech’s success in attracting, compensation motivating, and retaining executives and employees. various of prevalence the and trends market analyzes and reviews periodically Committee Compensation The delivery vehicles and adjusts the design and operation of our executive compensation program from time to deems time necessary as or it appropriate. In designing and implementing the various structure’s compensation our elements as well as practices, of industry and market considers our Committee Compensation the program, executive compensation and its impact on our financial tax condition. efficiency While the Compensation Committee considers all of these factors in its deliberations, it places no formal weighting on any one factor. The Compensation Committee evaluates our compensation philosophy and program objectives on an annual basis or more frequently as circumstances require.

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 59 59 Chairman) as described below. appropriate form and performance goals for our equity compensation program. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Before the beginning of each the fiscal Compensation year, Committee reviews our executive compensation program to assess whether our compensation elements, actions, and decisions (i) are properly coordinated, (ii) are aligned with our executive our for incentives long-term and short-term appropriate provide (iii) goals, corporate and values, mission, vision, comparable in executives of compensation the with competitive are (v) and purposes, intended their achieve (iv) officers, positions at the companies with which we compete for executive talent. Following this assessment, the Compensation and then makes recommendations to the Compensation Committee for each element of compensation. Using his evaluation his Using compensation. of At the beginning of element our each CEO year, reviews the prior year’seach performance of our executive for officers who report to him Committee Compensation the to recommendations makes then and of each adjustments, executive salary officer’s base performance cover recommendations and these taking into year, consideration preceding historical the compensation during awards performance corporate to our our and executive officers executive individual the for results, awards equity of form the our in incentives long-term and on payments, bonus actual opportunities, based bonus cash annual target Chairman) Executive our and himself than (other officers executive our of each officer’s contribution to these results, and the executive officer’s performance decisions makes and recommendations toward these reviews then Committee Compensation The achieving goals. performance individual the executive officer’s as well as each individual compensation element. as to the target total direct compensation of each executive officer, Committee makes any necessary or appropriate modifications to our existing plans and arrangements or adopts new plans new adopts or arrangements and plans existing our to modifications appropriate or necessary any makes Committee or arrangements. The Compensation Committee also conducts an annual review of our executive compensation strategy to ensure that it is appropriately aligned with our business strategy and Committee reviews and changes market trends in competitive compensation as further described practices, below. achieving our desired objectives. Further, the Compensation The factors considered by the Compensation Committee in determining the compensation of our executive officers for fiscal year 2018 included: • performance; Each individual executive’s • experience, skills, qualifications and marketability; Each individual executive’s • against performance financial goals and objectives; The Company’s • relative performance to both industry competitors and compensation its peer group; The Company’s • compensation in a ranking of peer compensation; The positioning of the amount of each executive’s • Executive our peer group; and The compensation practices of the Company’s of compensation the and compensation • own his to respect with (except decisions. CEO its our of making recommendations in The manner formulaic or predetermined any in factors these weight not did Committee knowledge Compensation experience, The individual their of light in information this considered Committee Compensation the of members The of the knowledge Company, of each executive knowledge officer, of the competitive market, and business judgment in making their decisions regarding executive compensation and our executive program. compensation As part of this process, our Executive Chairman works closely compensation of with our CEO. The Compensation Committee, the in consultation with the Compensation other non-employee members of Committee the in determining the Board of Directors, also evaluates the performance of our Executive Chairman and our CEO each year payments, bonus cash actual opportunities, bonus and cash annual target adjustments, salary base makes their regarding decisions all and long-term incentives in the form of equity awards. Our Executive Chairman and our CEO are not present during any of the deliberations regarding their own compensation. Role of our CEO officers, executive other our of compensation the structure determining the in Committee recommend Compensation the to with Committee closely works Compensation CEO the Our with works CEO our Typically, Chairman. Executive our excluding of the annual bonus plan, and to identify and develop corporate performance objectives for determine to such Committee Compensation the plan, with works and also CEO Our to measures. selected evaluate the against performance actual the 58 . at http://ir.logitech.com high-growth, global company in highly competitive and rapidly evolving markets; risk based on the Company’s performance, while maintaining controls over inappropriate risk-taking by factoring in both annual and long-term performance; share value; and potential future contribution for through long-term equity incentive awards. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Principles Guiding and Philosophy Compensation Process Compensation-Setting Role of the Compensation Committee The Compensation Committee, among its officers. executive other our responsibilities, of compensation establishes specific the our including program, overall compensation executive compensation our approves philosophy and reviews and The Compensation Committee has the authority to retain compensation consultants and other advisors, including responsibilities legal and duties, Company authority, Committee’s our Compensation The responsibilities. on its out carrying available in assist to is counsel, charter The warranted. as updated and annually reviewed is which charter, its in described are website of compensation the approves and philosophy compensation overall our determines Committee Compensation the While our executive officers, it considers the recommendations of its compensation consultants and other advisors, as well as our CEO, our CFO, our head of People & Culture, and our compensation makes department. The all Compensation Committee final decisions regarding executive compensation, including periodically opportunities, actual Committee base cash Compensation bonus The salary payments, needed. and as levels, long-term times incentives other target in at the and annual form basis of regularly-scheduled equity cash a awards. on The bonus meets Compensation Committee Board the to reports Committee Compensation the of chair The Directors. of Board our with matters compensation reviews of Directors on the activities of the Compensation Committee meetings are available to the members of the Board of Directors. Compensation Committee at quarterly board meetings, and the minutes of the We have designed have designed our executive program compensation to: We • Provide compensation sufficient to attract and retain the level of talent needed to create and manage an innovative, • Support a performance-oriented culture; • at compensation total of portion significant a place and compensation variable and fixed between balance a Maintain • Provide a balance between and long-term short-term objectives and results; • increasing to compensation of portion significant a tying by interests shareholders’ with compensation executive Align • her or his and incentives, cash short-term and salary base through performance past and role executive’s the Reflect employees, and executives best the motivating and retaining, attracting, of part central a is compensation while However, we believe it is not the Committee Compensation the sole both regard, or this In shareholders. exclusive our for reason results achieve to why hard work exceptional they why or executives Logitech, or employees choose to join and can stay employees and at executives which in opportunities and environment working a providing that believe management and develop, express their individual potential, and make a difference are also a key part of Logitech’s success in attracting, compensation motivating, and retaining executives and employees. various of prevalence the and trends market analyzes and reviews periodically Committee Compensation The delivery vehicles and adjusts the design and operation of our executive compensation program from time to deems time necessary as or it appropriate. In designing and implementing the various structure’s compensation our elements as well as practices, of industry and market considers our Committee Compensation the program, executive compensation and its impact on our financial tax condition. efficiency While the Compensation Committee considers all of these factors in its deliberations, it places no formal weighting on any one factor. The Compensation Committee evaluates our compensation philosophy and program objectives on an annual basis or more frequently as circumstances require. 51% 4,661 2,019 4,709 Market Capitalization 45% 2,287 1,657 2,142 Revenue Super Micro Computer Synaptics Inc. Teradyne Navigation Limited Trimble Systems, Inc. VeriFone Corporation Technologies Zebra $ 2,663 $ 5,672 Rationale 61 EchoStar Garmin Ltd. GoPro, Inc. NETGEAR, Inc. ON Semiconductor Technology Consumer Products

We compete for talent with companies compete for talent with in the following industries: We • • Our Named Executive Officer compensation should companies be that have comparable financial similar characteristics including revenue and to market senior managers at capitalization. As appropriate, we utilize additional refinement criteria (objective or subjective) such as valuation, headcount, or business model. revenue growth, profitability, U.S. publicly traded companies technology with talent management executive for compete we circumstances companies. Although in the United and particularly States, in the high-technology area of Silicon Valley. we are a Swiss company, in certain Percentile Percentile Percentile th th th Belden Inc. Inc.Brocade Communications Systems Cadence Design Systems FLIR Systems Ciena Diebold, Incorporated Dolby Laboratories Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Criteria Industry Financial Scope Other Factors (in millions) 75 50 25 Logitech Percentile Rank Compensation Peer Group Peer Group Compensation developed companies peer of group select a from drawn is compensation executive on data market competitive considers Committee data Compensation the deliberations, its of part As This data. such of analysis related a and practices and levels by the Compensation Committee, as well as compensation data. survey For fiscal year 2018, at the direction of the Compensation Committee, Compensia evaluated the existing compensation group: the in inclusion for companies identify objectively to table following the in forth set criteria the used and group peer companies, publicly-traded 18 of group peer following the selected Committee Compensation the criteria, these on setting Based to respect with decisions compensation making when reference a as used then and approved subsequently it which compensation for fiscal year 2018: companies These acquisition. its to due Hasbro, removed Knowles and Plantronics were removed from our peer group were because these companies no longer fell within the Polycom and International Lexmark and revenue for criteria selection and Semiconductor ON Systems, FLIR EchoStar, Laboratories, Dolby Ciena, Systems, Design Cadence by replaced were because they were aligned with our selection criteria. Teradyne The following table sets forth the revenue and market capitalization of the fiscal 2018 February 2017 as compared to the same data for Logitech: compensation peer group as of The table reflects available revenue information for four quarters as of February 3, 2017 and market capitalization as of February 3, 2017, as provided by Compensia. 60 60 of his or her own compensation. of our Board of Directors; officers; our Board of Directors; Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation While the Compensation Committee considers our CEO’s recommendations, as well as the competitive market analysis Committee Compensation the prepared by its compensation consultants, these recommendations and market data serve as only two of several factors Ultimately, officers. executive our of compensation the to respect with decisions its making in each of amount and elements compensation individual the determine to experience and judgment business own its applies element for our executive officers. Moreover, no executive officer participates in elements the determination of the amounts or Role of Compensation Consultants Role of Compensation the Compensation Committee has the authority to engage its own compensation consultants and Pursuant to its charter, other advisors, including legal counsel, as it determines in its sole discretion, to assist in carrying out its responsibilities. advisors, these of services and fees, engagement, the regarding determinations all makes Committee Compensation The and any such advisor reports directly to the Compensation Committee. The Compensation Committee may replace its compensation compensation hire consultants or additional at any time. advisors U.S. a Inc., Compensia, engaged Committee Compensation the authority, this to engages pursuant Committee 2018, year Compensation fiscal The In firm. consulting compensation Swiss a Consulting, Blust Agnès and firm, consulting compensation consultants to provide information, analysis, and other assistance relating to our executive compensation program on an ongoing basis. The nature and scope of the services provided to the Compensation independent compensation consultants in fiscal year 2018were as follows: Committee by the • reviewed recommended and updates to the compensation peer group; • provided advice with respect to compensation best practices and market trends for executive officers and members • conducted an analysis of the levels of overall compensation and each element of compensation for our executive • conducted an analysis of the levels of overall compensation and each element of compensation for the members of • conducted a compensation risk assessment; • assisted in our equity compensation strategy and proposal for an equity compensation plan pool increase; and • provided legislative and ad updates hoc advice and support throughout the year. The independent including management, of compensation members with meet communicate consultants typically with they although attend the management, to Compensation than Compensation Committee rather Committee outside Compensation Committee of meetings. meetings The compensation as consultants our requested report CEO and members of our executive compensation staff, for purposes of understanding to proposals that management and the also may make to the Compensation Committee. The Compensation Committee has assessed the independence of the compensation consultants taking among other into things, account, the six independence-related factors as set forth in and standards independence Exchange enhanced Act the and Act Rule Protection 10C-1 Consumer and Reform issued Street Wall by Dodd–Frank the under the SEC with relationship its that concluded has and Market, Stock Nasdaq the of standards listing applicable the in forth set factors has Committee Compensation the of behalf on them of each of work the and consultant compensation independent each and us to services other any provided not have Consulting Blust Agnès and Compensia interest. of conflict any raised not have received no compensation other than with respect to the services described above.

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 51% 4,661 2,019 4,709 Market Capitalization 45% 2,142 2,287 1,657 Revenue Super Micro Computer Synaptics Inc. Teradyne Navigation Limited Trimble Systems, Inc. VeriFone Corporation Technologies Zebra $ 2,663 $ 5,672 Rationale 61 61 EchoStar Garmin Ltd. GoPro, Inc. NETGEAR, Inc. ON Semiconductor Technology Consumer Products

We compete for talent with companies compete for talent with in the following industries: We • • Our Named Executive Officer compensation should companies be that have comparable financial similar characteristics including revenue and to market senior managers at capitalization. As appropriate, we utilize additional refinement criteria (objective or subjective) such as valuation, headcount, or business model. revenue growth, profitability, U.S. publicly traded companies technology with talent management executive for compete we circumstances companies. Although in the United and particularly States, in the high-technology area of Silicon Valley. we are a Swiss company, in certain Percentile Percentile Percentile th th th Belden Inc. Brocade Communications Systems Inc.Brocade Communications Systems Cadence Design Systems FLIR Systems Ciena Diebold, Incorporated Dolby Laboratories 25 Logitech Percentile Rank 75 50 (in millions) Industry Financial Scope Other Factors Criteria Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The table reflects available revenue information for four quarters as of February 3, 2017 and market capitalization as of February 3, 2017, as provided by Compensia. The following table sets forth the revenue and market capitalization of the fiscal 2018 February 2017 as compared to the same data for Logitech: compensation peer group as of Based on these criteria, the Compensation Committee selected the following peer group of 18 publicly-traded companies, companies, publicly-traded 18 of group peer following the selected Committee Compensation the criteria, these on setting Based to respect with decisions compensation making when reference a as used then and approved subsequently it which compensation for fiscal year 2018: companies These acquisition. its to due Hasbro, removed Knowles and Plantronics were removed from our peer group were because these companies no longer fell within the Polycom and International Lexmark and revenue for criteria selection and Semiconductor ON Systems, FLIR EchoStar, Laboratories, Dolby Ciena, Systems, Design Cadence by replaced were because they were aligned with our selection criteria. Teradyne Compensation Peer Group Peer Group Compensation developed companies peer of group select a from drawn is compensation executive on data market competitive considers Committee data Compensation the deliberations, its of part As This data. such of analysis related a and practices and levels by the Compensation Committee, as well as compensation data. survey For fiscal year 2018, at the direction of the Compensation Committee, Compensia evaluated the existing compensation group: the in inclusion for companies identify objectively to table following the in forth set criteria the used and group peer 60 of his or her own compensation. of our Board of Directors; officers; our Board of Directors; Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Role of Compensation Consultants Role of Compensation the Compensation Committee has the authority to engage its own compensation consultants and Pursuant to its charter, other advisors, including legal counsel, as it determines in its sole discretion, to assist in carrying out its responsibilities. advisors, these of services and fees, engagement, the regarding determinations all makes Committee Compensation The While the Compensation Committee considers our CEO’s recommendations, as well as the competitive market analysis Committee Compensation the prepared by its compensation consultants, these recommendations and market data serve as only two of several factors Ultimately, officers. executive our of compensation the to respect with decisions its making in each of amount and elements compensation individual the determine to experience and judgment business own its applies element for our executive officers. Moreover, no executive officer participates in elements the determination of the amounts or and any such advisor reports directly to the Compensation Committee. The Compensation Committee may replace its compensation compensation hire consultants or additional at any time. advisors U.S. a Inc., Compensia, engaged Committee Compensation the authority, this to engages pursuant Committee 2018, year Compensation fiscal The In firm. consulting compensation Swiss a Consulting, Blust Agnès and firm, consulting compensation consultants to provide information, analysis, and other assistance relating to our executive compensation program on an ongoing basis. The nature and scope of the services provided to the Compensation independent compensation consultants in fiscal year 2018were as follows: Committee by the • reviewed recommended and updates to the compensation peer group; • provided advice with respect to compensation best practices and market trends for executive officers and members • conducted an analysis of the levels of overall compensation and each element of compensation for our executive • conducted an analysis of the levels of overall compensation and each element of compensation for the members of • conducted a compensation risk assessment; • assisted in our equity compensation strategy and proposal for an equity compensation plan pool increase; and • provided legislative and ad updates hoc advice and support throughout the year. The independent including management, of compensation members with meet communicate consultants typically with they although attend the management, to Compensation than Compensation Committee rather Committee outside Compensation Committee of meetings. meetings The compensation as consultants our requested report CEO and members of our executive compensation staff, for purposes of understanding to proposals that management and the also may make to the Compensation Committee. The Compensation Committee has assessed the independence of the compensation consultants taking among other into things, account, the six independence-related factors as set forth in and standards independence Exchange enhanced Act the and Act Rule Protection 10C-1 Consumer and Reform issued Street Wall by Dodd–Frank the under the SEC with relationship its that concluded has and Market, Stock Nasdaq the of standards listing applicable the in forth set factors has Committee Compensation the of behalf on them of each of work the and consultant compensation independent each and us to services other any provided not have Consulting Blust Agnès and Compensia interest. of conflict any raised not have received no compensation other than with respect to the services described above. Element Performance-based equity links compensation to key financial metrics, such as revenue growth that require and profitability, strong performance for target or any substantial vesting to occur, and provides an extraordinary payout if performance significantly exceeds that of the objective or the benchmark group. promote requirements Vesting retention. Provide a variable “at risk” pay opportunity that aligns executive and shareholder interests through annual equity awards that vest or are earned over multiple years. Because the ultimate value of these equity awards is directly related to the market price of our registered shares, and the awards are only earned over an extended period of time subject to vesting, they serve to focus executives on the creation and maintenance of long-term shareholder value. Provides competitive level of fixed Provides competitive by the compensation determined position, with market value of the established actual base salaries and based on the facts each executive circumstances of position. and each individual officer to officers Motivates executive performance. achieve above target performance levels are Generally, established to incentivize our to achieve or executive officers exceed performance objectives. For fiscal year 2018, payouts for corporate performance objectives could range from 0% to 200%, depending on actual achievement. Purpose and Key Features of Purpose and Key

• • • • • • • 63 Achievement of pre-established corporate performance objectives designed to enhance long-term shareholder value and attract, retain, motivate, and reward over extended executive officers periods for achieving important corporate objectives. What This Element Rewards What This Element Individual performance, level of Individual performance, experience, and contributions. Achievement of pre-established objectives corporate performance (for fiscal year 2018, focused on growing revenue and profitability), as well as management objectives and individual contributions.

• • • Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Compensation Element Base salary Annual cash bonuses Long-term incentives/equity awards Our executive officers also participate in the standard employee benefit plans available to most of our employees. Each of these compensation elements is discussed compensation in greater of detail amounts including below, the a of description discussion of the a particular and elements, program, compensation executive overall our into fits element each how in fiscal year 2018 under each of these elements. paid to our executive officers Compensation Elements Elements Compensation The three primary elements of our opportunities, long-term incentives and (3) as described form of equity awards, in the below: executive compensation programs are (1) base salary, (2) annual cash bonus 62 62 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The market analysis provided by Compensia, and considered by the Compensation Committee in its review of our executive executive our of review its in Committee Compensation the by considered and Compensia, by provided analysis market The a above, described group peer compensation the data: of sources multiple to Logitech compares compensation, officers’ broad custom survey of similarly sized technology companies, and a broad custom survey of technology companies that are larger than Logitech (the “next tier”). The broad technology survey data, which is necessary to provide market data “next The where group. we peer do compensation not the have to publicly disclosed profile information market from and our revenue peers, comparable consists with of 80 Survey companies that Technology Radford Global participated in the which with companies larger for levels compensation the of view a Committee Compensation the provides which data, tier” we compete for talent, consists of 19 technology companies with annual revenue and market capitalization a tier higher peer group than selection Logitech’s criteria: revenue between approximately $4 billion and $16 billion and a market cap between approximately $10 billion and $60 billion. useful is companies other at practices compensation the regarding information that believes Committee Compensation The must practices and policies compensation our that recognizes Committee Compensation the First, respects. two least at appropriateness in and reasonableness the assessing in useful is information this Second, marketplace. the in competitive be of individual executive compensation elements and of our overall executive compensation packages. This information is only one of several factors (as described above) that the Compensation Committee considers, however, in decisions with respect to the compensation officers. of our executive making its

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement Element Provide a variable “at risk” pay opportunity that aligns executive and shareholder interests through annual equity awards that vest or are earned over multiple years. Because the ultimate value of these equity awards is directly related to the market price of our registered shares, and the awards are only earned over an extended period of time subject to vesting, they serve to focus executives on the creation and maintenance of long-term shareholder value. Performance-based equity links compensation to key financial metrics, such as revenue growth that require and profitability, strong performance for target or any substantial vesting to occur, and provides an extraordinary payout if performance significantly exceeds that of the objective or the benchmark group. promote requirements Vesting retention. Provides competitive level of fixed Provides competitive by the compensation determined position, with market value of the established actual base salaries and based on the facts each executive circumstances of position. and each individual officer to officers Motivates executive performance. achieve above target performance levels are Generally, established to incentivize our to achieve or executive officers exceed performance objectives. For fiscal year 2018, payouts for corporate performance objectives could range from 0% to 200%, depending on actual achievement. Purpose and Key Features of Purpose and Key

• • • • • • • 63 63 Achievement of pre-established corporate performance objectives designed to enhance long-term shareholder value and attract, retain, motivate, and reward over extended executive officers periods for achieving important corporate objectives. What This Element Rewards What This Element Individual performance, level of Individual performance, experience, and contributions. Achievement of pre-established objectives corporate performance (for fiscal year 2018, focused on growing revenue and profitability), as well as management objectives and individual contributions.

• • • Annual cash bonuses Long-term incentives/equity awards Compensation Element Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Base salary Our executive officers also participate in the standard employee benefit plans available to most of our employees. Each of these compensation elements is discussed compensation in greater of detail amounts including below, the a of description discussion of the a particular and elements, program, compensation executive overall our into fits element each how in fiscal year 2018 under each of these elements. paid to our executive officers The three primary elements of our opportunities, long-term incentives and (3) as described form of equity awards, in the below: executive compensation programs are (1) base salary, (2) annual cash bonus Compensation Elements Elements Compensation 62 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The market analysis provided by Compensia, and considered by the Compensation Committee in its review of our executive executive our of review its in Committee Compensation the by considered and Compensia, by provided analysis market The a above, described group peer compensation the data: of sources multiple to Logitech compares compensation, officers’ broad custom survey of similarly sized technology companies, and a broad custom survey of technology companies that are larger than Logitech (the “next tier”). The broad technology survey data, which is necessary to provide market data “next The where group. we peer do compensation not the have to publicly disclosed profile information market from and our revenue peers, comparable consists with of 80 Survey companies that Technology Radford Global participated in the which with companies larger for levels compensation the of view a Committee Compensation the provides which data, tier” we compete for talent, consists of 19 technology companies with annual revenue and market capitalization a tier higher peer group than selection Logitech’s criteria: revenue between approximately $4 billion and $16 billion and a market cap between approximately $10 billion and $60 billion. useful is companies other at practices compensation the regarding information that believes Committee Compensation The must practices and policies compensation our that recognizes Committee Compensation the First, respects. two least at appropriateness in and reasonableness the assessing in useful is information this Second, marketplace. the in competitive be of individual executive compensation elements and of our overall executive compensation packages. This information is only one of several factors (as described above) that the Compensation Committee considers, however, in decisions with respect to the compensation officers. of our executive making its Level 200% 200% ($) $500,000 $650,000 $356,250 Payment Maximum $1,156,250 Opportunity Target Bonus Target CHF 431,372 Level 104% 112% Maximum Performance Opportunity base salary) Target Bonus Target 100% 100% Level Target (as a percentage of (as a percentage Payment $500,000$925,000$650,000 100% 125% 100% $475,000 75% Salary 100% 100% Level Target Annual Base CHF 539,215 80% Performance 65 25% 50% Level Payment Threshold 94% Level Threshold Performance as follows: rate The fluctuations. target constant currency sales are calculated by translating sales in each local currency at the forecast exchange rate for that currency at the performance beginning period of is translated the in performance each period. local The currency actual using the revenue performance same achievement in against forecast the performance the exchange target. For additional rate information regarding to “constant currency” determine the Results and Condition Financial of Analysis and Discussion “Management’s entitled section the to refer please sales, Annual Report; and of Operations” in our acquisition-related inventory, on effect accounting purchase assets, intangible of amortization expense, compensation costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), gain other and adjustment tax income non-GAAP expenses, related and investigation investment, equity-method on (loss) items. Revenue CC Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk Corporate Performance Measure Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Officer Named Executive L. Joseph Sullivan Non-GAAP Operating IncomeNon-GAAP 84% For any bonus payment to be made under the fiscal year 2018 Bonus Plan, the threshold performance requirements had requirements performance threshold the Plan, Bonus 2018 year fiscal the under made be to payment bonus any For and threshold the between performance actual of event the In measures. performance corporate the of each for met be to target, and target and maximum, performance levels, the payment amount was to be calculated ratably between each designated segment determined by straight-line interpolation. Target Bonus Opportunities Bonus Target Bonus Plan, under the officers executive our of each for opportunities bonus cash annual target the 2018, year fiscal For were as follows: expressed of his annual as a percentage base salary, above. described In factors setting other the the amount as of well the as performance, target to annual contribution cash and bonus role opportunities, individual’s the the Compensation data, Committee market takes competitive into account for fiscal year 2018. No changes were made to the target annual cash bonus opportunities for the executive officers Corporate Performance Objectives For purposes of the Bonus Plan, the Compensation Committee selected Revenue and Operating Non-GAAP Income as because business our the for corporate performance appropriate measures for fiscal were year 2018. Each measures of these performance corporate performance measures these was equally believed Committee Compensation The weighted. they provided a balance between growing our business, generating revenue, managing our expenses, attainable, and profitability, but increasing challenging, be which to believed it that it levels at measures believes these of each for most levels performance target established directly influences long-term shareholder value. through the successful execution of our Board-approved annual operating plan. The Compensation Committee For purposes of the Bonus performance Plan, the corporate measures were to be calculated as follows: • “Revenue” meant Net Sales measured in “constant currency” (CC), which excludes the impact of currency exchange • “Non-GAAP Operating Income” meant GAAP Operating Income from continuing operations, excluding share-based respective their and measure performance corporate each for achievement of levels maximum and target, threshold, The payment levels were 0% 4% 8% 0% 4% Percentage Adjustment $500,000 $890,000 $600,000 $455,800 Base Salary Fiscal Year 2017 Year Fiscal 64 64 $500,000 $925,000 $650,000 $475,000 Base Salary CHF 539,215 CHF 539,215 Fiscal Year 2018 Year Fiscal Named Executive Officer Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The base salaries of our executive officers during fiscal year 2018 are set forth in the “2018 Summary Compensation Table” Table” Compensation Summary “2018 the in forth set are 2018 year fiscal during officers executive our of salaries base The below. Annual Cash Bonuses use We annual bonuses to motivate our executive to officers achieve our short-term financial and operational objectives while making progress towards our longer-term growth and other goals. these annual bonuses philosophy, are intended Consistent to help us to deliver a with competitive total compensation opportunity to our our executive compensation executive Annual officers. cash bonuses are entirely performance-based, are not guaranteed, and may vary materially from year-to-year. the Compensation Committee establishes cash bonus opportunities pursuant to Typically, a formal cash bonus plan that year. fiscal our over performance individual their and corporate actual below- our for and officers objectives executive our corporate rewards and annual measures our exceed we when bonuses above-target pay to designed is plan bonus cash The target bonuses or no bonus when we do not achieve these objectives. pursuant officers executive our for opportunities bonus cash determined Committee Compensation the 2018, year fiscal In Plan”). “Bonus (the Plan Bonus Performance Management Logitech the under 2018 year fiscal for plan bonus cash the to Under the Bonus Plan, the Compensation Committee had the authority to select the performance measures and related target levels applicable annual to the cash bonus opportunities for our executive officers. Base Salary can we that so program, compensation executive our of element necessary a is salary base competitive a that believe We competitive be to intended also are officers executive our for salaries Base team. management stable a retain and attract as well as talent, for compete we which with companies the at positions similar in individuals other by received those with equitable team. across the executive we establish Generally, the initial base salaries of our executive officers through arm’s-length negotiation at the time we hire the individual executive taking officer, into account his or her position, qualifications, experience, prior salary level, competitive and market considerations, the base salaries and of our other executive officers. Thereafter, the Compensation Committee reviews the adjustments to base as it determines be salaries to necessary or appropriate. base salaries of our executive officers annually and In makes fiscal year 2018, the the and role, Compensation officer’s executive each of scope the Compensia, by performed analysis market competitive Committee a consideration Chairman), Executive our reviewed of salary base the the and salary base base own his salaries to respect with (except of CEO our of our recommendations executive officers, taking of salaries base into the set Committee Compensation the review, this Following above. described factors other the as well as our executive officers at levels that it believed were appropriate to maintain their competitiveness and provided a base salary increase to Messrs. Darrell, Pilette and Sullivan. The Compensation Committee approved a base salary increase for Mr. Darrell from $890,000 to $925,000 and Mr. Sullivan from $455,800 to $475,000 compensation to to bring a their competitive target level total in cash line with similar positions in our compensation Committee peer approved group. The a Compensation base salary increase after and for group peer compensation our of Mr. quartile top the Pillette in positions comparable in executives from with line in compensation $600,000 to $650,000 to bring his target total cash taking into consideration competitive in the market for high performing Silicon Valley. CFOs 2018 for fiscal year as follows: were The base salaries of our executive officers

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 200% Level 200% ($) $500,000 $650,000 $356,250 Payment Maximum $1,156,250 Opportunity Target Bonus Target CHF 431,372 112% 104% Level Maximum Performance Opportunity base salary) Target Bonus Target 100% 100% Level Target (as a percentage of (as a percentage Payment $500,000$925,000$650,000 100% 125% 100% $475,000 75% Salary 100% 100% Level Target Annual Base CHF 539,215 80% Performance 65 65 50% 25% Level Payment Threshold 94% Level Threshold Performance as follows: rate The fluctuations. target constant currency sales are calculated by translating sales in each local currency at the forecast exchange rate for that currency at the performance beginning period of is translated the in performance each period. local The currency actual using the revenue performance same achievement in against forecast the performance the exchange target. For additional rate information regarding to “constant currency” determine the Results and Condition Financial of Analysis and Discussion “Management’s entitled section the to refer please sales, Annual Report; and of Operations” in our acquisition-related inventory, on effect accounting purchase assets, intangible of amortization expense, compensation costs, change in fair value of contingent consideration for business acquisition, restructuring charges (credits), gain other and adjustment tax income non-GAAP expenses, related and investigation investment, equity-method on (loss) items. Revenue CC Non-GAAP Operating IncomeNon-GAAP 84% Corporate Performance Measure Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk Named Executive Officer Named Executive Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation L. Joseph Sullivan For any bonus payment to be made under the fiscal year 2018 Bonus Plan, the threshold performance requirements had requirements performance threshold the Plan, Bonus 2018 year fiscal the under made be to payment bonus any For and threshold the between performance actual of event the In measures. performance corporate the of each for met be to target, and target and maximum, performance levels, the payment amount was to be calculated ratably between each designated segment determined by straight-line interpolation. Target Bonus Opportunities Bonus Target Bonus Plan, under the officers executive our of each for opportunities bonus cash annual target the 2018, year fiscal For were as follows: expressed of his annual as a percentage base salary, competitive market data, the individual’s role and contribution to performance, as well as the other factors described above. described In factors setting other the the amount as of well the as performance, target to annual contribution cash and bonus role opportunities, individual’s the the Compensation data, Committee market takes competitive into account for fiscal year 2018. No changes were made to the target annual cash bonus opportunities for the executive officers Corporate Performance Objectives For purposes of the Bonus Plan, the Compensation Committee selected Revenue and Operating Non-GAAP Income as because business our the for corporate performance appropriate measures for fiscal were year 2018. Each measures of these performance corporate performance measures these was equally believed Committee Compensation The weighted. they provided a balance between growing our business, generating revenue, managing our expenses, attainable, and profitability, but increasing challenging, be which to believed it that it levels at measures believes these of each for most levels performance target established directly influences long-term shareholder value. through the successful execution of our Board-approved annual operating plan. The Compensation Committee For purposes of the Bonus performance Plan, the corporate measures were to be calculated as follows: • “Revenue” meant Net Sales measured in “constant currency” (CC), which excludes the impact of currency exchange • “Non-GAAP Operating Income” meant GAAP Operating Income from continuing operations, excluding share-based respective their and measure performance corporate each for achievement of levels maximum and target, threshold, The payment levels were 0% 4% 8% 0% 4% Percentage Adjustment $500,000 $890,000 $600,000 $455,800 Base Salary Fiscal Year 2017 Year Fiscal are set forth in the “2018 Summary Compensation Table” Table” Compensation Summary “2018 the in forth set are 64 $500,000 $925,000 $650,000 $475,000 Base Salary CHF 539,215 CHF 539,215 Fiscal Year 2018 Year Fiscal Named Executive Officer Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan below. Annual Cash Bonuses use We annual bonuses to motivate our executive to officers achieve our short-term financial and operational objectives while making progress towards our longer-term growth and other goals. these annual bonuses philosophy, are intended Consistent to help us to deliver a with competitive total compensation opportunity to our our executive compensation executive Annual officers. cash bonuses are entirely performance-based, are not guaranteed, and may vary materially from year-to-year. the Compensation Committee establishes cash bonus opportunities pursuant to Typically, a formal cash bonus plan that year. fiscal our over performance individual their and corporate actual below- our for and officers objectives executive our corporate rewards and annual measures our exceed we when bonuses above-target pay to designed is plan bonus cash The target bonuses or no bonus when we do not achieve these objectives. pursuant officers executive our for opportunities bonus cash determined Committee Compensation the 2018, year fiscal In Plan”). “Bonus (the Plan Bonus Performance Management Logitech the under 2018 year fiscal for plan bonus cash the to Under the Bonus Plan, the Compensation Committee had the authority to select the performance measures and related target levels applicable annual to the cash bonus opportunities for our executive officers. Base Salary can we that so program, compensation executive our of element necessary a is salary base competitive a that believe We competitive be to intended also are officers executive our for salaries Base team. management stable a retain and attract as well as talent, for compete we which with companies the at positions similar in individuals other by received those with equitable team. across the executive we establish Generally, the initial base salaries of our executive officers through arm’s-length negotiation at the time we hire the individual executive taking officer, into account his or her position, qualifications, experience, prior salary level, competitive and market considerations, the base salaries and of our other executive officers. Thereafter, the Compensation Committee reviews the adjustments to base as it determines be salaries to necessary or appropriate. base salaries of our executive officers annually and In makes fiscal year 2018, the the and role, Compensation officer’s executive each of scope the Compensia, by performed analysis market competitive Committee a consideration Chairman), Executive our reviewed of salary base the the and salary base base own his salaries to respect with (except of CEO our of our recommendations executive officers, taking of salaries base into the set Committee Compensation the review, this Following above. described factors other the as well as our executive officers at levels that it believed were appropriate to maintain their competitiveness and provided a base salary increase to Messrs. Darrell, Pilette and Sullivan. The Compensation Committee approved a base salary increase for Mr. Darrell from $890,000 to $925,000 and Mr. Sullivan from $455,800 to $475,000 compensation to to bring a their competitive target level total in cash line with similar positions in our compensation Committee peer approved group. The a Compensation base salary increase after and for group peer compensation our of Mr. quartile top the Pillette in positions comparable in executives from with line in compensation $600,000 to $650,000 to bring his target total cash taking into consideration competitive in the market for high performing Silicon Valley. CFOs 2018 for fiscal year as follows: were The base salaries of our executive officers 2018 year fiscal during officers executive our of salaries base The Fair Value Grant Date Shares Number of Fair Value Grant Date 9,675 $304,279 6,450 $192,463 96,74348,372 $3,042,56721,284 $1,521,29914,512 $669,382 64,496 $456,402 32,248 $1,924,512 14,189 $962,256 9,675 $418,281 $288,695 67 Shares Performance Share Units Restricted Stock Units Number of unvested holdings to satisfy our retention objectives. optimizing working capital, improving financial predictability, improving operating expense efficiency, and reorganizing and efficiency, expense operating improving predictability, financial improving capital, working optimizing and managing the Finance organization. performance which for he is responsible. the Company. Named Executive Officer Guerrino De Luca Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan • De Luca and Messrs. achievement Darrell reflected performance of the corporate the measures above. described • Pilette appropriately Mr. reflected his strong performance in contributing to the strong performance of the Company, • Mr. Stolk reflected the achievement of the corporate performance measures described above and business group • of operations worldwide the managing and management inventory and cost in performance his reflected Sullivan Mr. Compensation “Summary the in forth set 2018are year fiscal for executive officers our paid to bonuses cash annual The 2018” below. Year for Fiscal Table Incentive Compensation Long-Term them providing by officers executive our motivate to awards equity of form the in compensation incentive long-term use We our of value the of appreciation potential the in share to and Company the in interest equity an build to opportunity the with registered shares. We use performance-based restricted stock unit (“PSU” long- or delivering for “Performance vehicles Share principal the Unit”) as and stock common restricted our of shares for settled be may that awards (“RSU”) unit stock awards, equity views Committee Compensation The officers. executive our to opportunities compensation incentive specific term of attainment the on based earned be to are or requirements vesting time-based to subject are awards the whether performance objectives, as inherently variable since the grant date fair value of these aligns awards indicative and of their may value industry when, and not if, our our registered shares in necessarily underlying these awards talent are be ever earned key or purchased. The retain and attract to us enable awards these believes further Committee Compensation PSUs uses Committee Compensation The shareholders. our of interests long-term the with interests officers’ executive our and RSUs because they are less dilutive than stock options. At the beginning of fiscal year 2018, the Compensation Committee approved equity awards for our executive officers in recognition of our financial results and each executive officer’s individual performance for fiscal year 2017 and expected future contributions. In determining the amount of each executive officer’s equity award, the Compensation Committee Executive the and award equity own his to respect with (except CEO our of recommendations the consideration into took awards as well as awards, Chairman’s equity equity award), as well these as the that factors described impact above. The Compensation overall Committee considers the the dilutive and practices, compensation incentive long-term our of effect to other employees, will have on shareholder value. The Compensation Committee also considered the existing equity of ability the and awards equity unvested their of value economic current the including officer, executive each of holdings these settled be may that RSUs time-based 40% and PSUs 60% of composed were officers executive our for awards equity The in fiscal year 2018 were as follows: The equity awards granted to our executive officers for our registered shares. The Compensation Committee determined that the bonus amounts reflected our strong year and growth path, driven by for: The bonuses and challenges the during fiscal year 2018. our executive officers, 115% 115% 140% 100% 100% $260M $2,337M 200% 189% 195% 115% 2018 Funding Fiscal Year Fiscal Opportunity Percentage Cash Bonus Target Level Target Percentage of Annual Target Fiscal Year 2018 Year Fiscal 2018 Level 50% 50% Fiscal Year Fiscal Payment Weighting Performance Cash Bonus Actual Annual Actual $287M 110% 2018 Fiscal Year Fiscal $500,000 $575,000 $650,000$356,250 $910,000 $356,250 Actual Result $1,156,250 $1,329,688 Opportunity Cash Bonus Target Annual Target CHF 431,372 CHF 431,372 $260M $2,337M $2,462M 105% 66 2018 66 Fiscal Year Fiscal Target Level Target 50% 50% Named Executive Officer Guerrino De Luca Corporate Performance Measure Weighting Corporate Performance Measure Corporate Revenue CC Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Non-GAAP Operating Income Non-GAAP Non-GAAP Operating Income Non-GAAP Calculated Result Adjusted Result Revenue CC The actual achievement under the Bonus Plan produced a measures funding at percentage a 195% based level. While on the the Committee recognized funding corporate the the lower Committee significant the performance that recommended challenge management growth, in Income Operating achieving Non-GAAP 14% both and growth 13% Revenue on execution as such factors other consideration into taking level 115% a to performance corporate on based percentage in performance and 2018, year fiscal during launched products certain of performance initial move, center distribution our region. our EMEA Based on its review of our overall recommendations with respect to individual performance for the executive other officers, corporate than himself and the Executive and business group performance, and Chairman, the Compensation taking Committee approved bonus into payments as follows account for our executive officers the for fiscal year CEO’s 2018: Individual and Business Group Performance areas their to respect with metrics financial in factor we leaders, regional or group business are who officers executive For of responsibility, which the Compensation Committee believes are critical to driving long-term shareholder value. As a result, Mr. Stolk’s target annual cash bonus opportunity was based 50% on achievement of the corporate performance measures described above and 50% on measures specific to the performance responsible. of the business group for which he is than other officers, executive our for bonuses cash annual the of 25% objectives, performance corporate the to addition other In and performance individual officer’s executive each on based adjusted be can Chairman, Executive our and CEO our factors as reviewed and and assessed by our CEO by the Compensation determined Committee. 2018Performance Results and Bonus Decisions corporate the to respect with achievement actual our that determined Committee Compensation the 2018, year fiscal For financial objectives under the Bonus Plan was as follows: The Compensation Committee established the following target levels for each of the corporate performance measures Bonus under the Plan:

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement Fair Value Grant Date Shares Number of Fair Value Grant Date 9,675 $304,279 6,450 $192,463 96,74348,372 $3,042,56721,284 $1,521,29914,512 $669,382 64,496 $456,402 32,248 $1,924,512 14,189 $962,256 9,675 $418,281 $288,695 67 67 Shares Performance Share Units Restricted Stock Units Number of unvested holdings to satisfy our retention objectives. optimizing working capital, improving financial predictability, improving operating expense efficiency, and reorganizing and efficiency, expense operating improving predictability, financial improving capital, working optimizing and managing the Finance organization. performance which for he is responsible. the Company. Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Named Executive Officer Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The equity awards for our executive officers were composed of 60% PSUs and 40% time-based RSUs that may be settled be may that RSUs time-based 40% and PSUs 60% of composed were officers executive our for awards equity The in fiscal year 2018 were as follows: The equity awards granted to our executive officers for our registered shares. • De Luca and Messrs. achievement Darrell reflected performance of the corporate the measures above. described • Pilette appropriately Mr. reflected his strong performance in contributing to the strong performance of the Company, • Mr. Stolk reflected the achievement of the corporate performance measures described above and business group • of operations worldwide the managing and management inventory and cost in performance his reflected Sullivan Mr. Compensation “Summary the in forth set 2018are year fiscal for executive officers our paid to bonuses cash annual The 2018” below. Year for Fiscal Table Incentive Compensation Long-Term them providing by officers executive our motivate to awards equity of form the in compensation incentive long-term use We our of value the of appreciation potential the in share to and Company the in interest equity an build to opportunity the with registered shares. We use performance-based restricted stock unit (“PSU” long- or delivering for “Performance vehicles Share principal the Unit”) as and stock common restricted our of shares for settled be may that awards (“RSU”) unit stock awards, equity views Committee Compensation The officers. executive our to opportunities compensation incentive specific term of attainment the on based earned be to are or requirements vesting time-based to subject are awards the whether performance objectives, as inherently variable since the grant date fair value of these aligns awards indicative and of their may value industry when, and not if, our our registered shares in necessarily underlying these awards talent are be ever earned key or purchased. The retain and attract to us enable awards these believes further Committee Compensation PSUs uses Committee Compensation The shareholders. our of interests long-term the with interests officers’ executive our and RSUs because they are less dilutive than stock options. At the beginning of fiscal year 2018, the Compensation Committee approved equity awards for our executive officers in recognition of our financial results and each executive officer’s individual performance for fiscal year 2017 and expected future contributions. In determining the amount of each executive officer’s equity award, the Compensation Committee Executive the and award equity own his to respect with (except CEO our of recommendations the consideration into took awards as well as awards, Chairman’s equity equity award), as well these as the that factors described impact above. The Compensation overall Committee considers the the dilutive and practices, compensation incentive long-term our of effect to other employees, will have on shareholder value. The Compensation Committee also considered the existing equity of ability the and awards equity unvested their of value economic current the including officer, executive each of holdings these The Compensation Committee determined that the bonus amounts reflected our strong year and growth path, driven by for: The bonuses and challenges the during fiscal year 2018. our executive officers,

115% 115% 140% 100% 100% $260M $2,337M 195% 115% 189% 200% 2018 Funding Fiscal Year Fiscal Opportunity Percentage Cash Bonus Target Level Target Percentage of Annual Target Fiscal Year 2018 Year Fiscal 2018 Level 50% 50% Fiscal Year Fiscal Payment Weighting Performance Cash Bonus Actual Annual Actual $287M 110% 2018 Fiscal Year Fiscal $500,000$650,000 $575,000 $356,250 $910,000 $356,250 Actual Result $1,156,250 $1,329,688 Opportunity Cash Bonus Target Annual Target CHF 431,372 CHF 431,372 $260M $2,337M $2,462M 105% 66 2018 Fiscal Year Fiscal Target Level Target 50% 50% Revenue CC Operating Income Non-GAAP Named Executive Officer Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Performance Measure Corporate Corporate Performance Measure Weighting Calculated Result Adjusted Result Non-GAAP Operating Income Non-GAAP Revenue CC Individual and Business Group Performance areas their to respect with metrics financial in factor we leaders, regional or group business are who officers executive For of responsibility, which the Compensation Committee believes are critical to driving long-term shareholder value. As a result, Mr. Stolk’s target annual cash bonus opportunity was based 50% on achievement of the corporate performance measures described above and 50% on measures specific to the performance responsible. of the business group for which he is than other officers, executive our for bonuses cash annual the of 25% objectives, performance corporate the to addition other In and performance individual officer’s executive each on based adjusted be can Chairman, Executive our and CEO our factors as reviewed and and assessed by our CEO by the Compensation determined Committee. 2018Performance Results and Bonus Decisions corporate the to respect with achievement actual our that determined Committee Compensation the 2018, year fiscal For financial objectives under the Bonus Plan was as follows: The actual achievement under the Bonus Plan produced a measures funding at percentage a 195% based level. While on the the Committee recognized funding corporate the the lower Committee significant the performance that recommended challenge management growth, in Income Operating achieving Non-GAAP 14% both and growth 13% Revenue on execution as such factors other consideration into taking level 115% a to performance corporate on based percentage in performance and 2018, year fiscal during launched products certain of performance initial move, center distribution our region. our EMEA Based on its review of our overall recommendations with respect to individual performance for the executive other officers, corporate than himself and the Executive and business group performance, and Chairman, the Compensation taking Committee approved bonus into payments as follows account for our executive officers the for fiscal year CEO’s 2018: The Compensation Committee established the following target levels for each of the corporate performance measures Bonus under the Plan: 69 by the Compensation Committee. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Welfare and Health Benefits and Health Welfare (the amended as 1986, of Code Revenue Internal the of 401(k) Section under plan retirement tax-qualified a maintain We for save to opportunity an with them provides that officers, executive our including U.S., the in employees our for “Code”), so Code the of 501(a) and 401(a) Sections under qualify to plan this for intend We basis. tax-advantaged a on retirement until employees to taxable not are contributions, plan on earned income and plan, the to employees by contributions that plan. distributed the all contributions from In addition, are deductible by us when made. made we 2018, year fiscal In plan. the under contributed when vested 100% are deferrals their in interests participants’ All matching contributions into the Section 401(k) plan for our employees, including our executive officers. Under the plan, pre-tax contributions are allocated to each participant’s individual directions. alternatives participants’ according to the account and then invested in selected investment In compliance with the Swiss federal pension law, Switzerland, with employee and employer contributions, which provides benefits in case of we retirement, death or disability maintain a Cash Balance pension plan due to sickness. for our employees in In addition, we provide other benefits to our executive officers on the same basis as all of our full-time employees. These employees. full-time our of all as basis same the on officers executive our to benefits other provide we addition, In and short-term accounts, spending flexible care dependent and health benefits, vision and dental health, include benefits long-term disability insurance, accidental death and dismemberment insurance, and basic life insurance coverage. We provide vacation and other paid holidays to all employees, including our executive also We officers. our offer employees the opportunity participate to in the Logitech Employee Share Plans. Purchase compliant as well as market, the to relation in competitive and affordable be to programs benefits employee our design We of monitoring regular on based needed as programs benefits employee our adjust We practices. and laws applicable with needs. applicable laws and practices, the competitive market and our employees’ Deferred Plan Compensation Eligible employees, including our executive based officers in the U.S., may also participate in the Logitech Inc. Deferred Compensation Plan and a predecessor plan, which are unfunded and unsecured plans that allow employees of Logitech Inc., the Logitech subsidiary in the United States, who earn more than a threshold amount the opportunity to defer U.S. taxes on up to 80% of their base to 90% of their bonus salary and up or commission compensation. participants Under the the plan, compensation by may chosen be deferred benchmarks until investment termination of on employment or based other earnings specified dates with chosen credited by the are amounts deferred and participants, from a number of mutual funds 401(k) The and earnings selected Deferred by Compensation Logitech Inc.’s Committee. contributions make not does Logitech investments. plan the by solely funded be to intended are participants the to credited to this plan. Information regarding executive officer participation in the deferred compensation plans can be found in the 2018” below. Year for Fiscal Table “Non-Qualified Deferred Compensation compensation deferred the under return of rates above-market or preferential receive not do officers executive the Because “Non-Qualified the in included are but table, Compensation Summary the in included not are plan the under earnings plan, 2018” below. Year for Fiscal Table Deferred Compensation Personal Benefits Perquisites and Other compensation executive our of component significant a as benefits personal other or perquisites view not do we Currently, periodic to subject and approved be program. will Accordingly, Logitech’s benefits executive personal officer other benefit or programs perquisites are to substantially respect the with practices same future as All for all employees. other eligible review

th 80% 100% 120% Primary Metric Modifier Factor Achieved Under on Vesting Level on Vesting percentiles, or between the 50 percentiles, or th and 50 th 68 68 TSR Rank modifier will reduce the vesting level for periods when our when periods for level vesting the reduce will modifier Rank TSR measuring our performance with multiple metrics provides complete a more The 2018” and the “Grants of Plan-Based Awards Table for Fiscal Year 2018” below. Year for Fiscal Table Awards 2018” and the “Grants of Plan-Based percentiles, is determined by straight-line interpolation. determined by percentiles, is percentile, which resulted in a 150% payout. th th Percentile Rank and below Percentile Rank (target) Percentile Rank and Above (maximum) Percentile Rank and three-year over the Income cumulative Operating minimum level of a achievement of requires that "gate" a th th th Percentile Rank of Logitech TSR Against Nasdaq-100 Index TSR Percentile Rank of Logitech TSR 25 50 75 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Performance-Based Performance-Based RSUs beginning of the determined at year fiscal is 2018 in officers executive our granted to awards PSU of number target The the Nasdaq-100 Index. The total number The total the end of the three-year of shares that may vest at period is capped at 200%of the Nasdaq-100 Index. of shares. the target number The Compensation believes Committee that picture of the Company's performance. weighted The Compensation metric of average Revenue Committee believes the primary growth will motivate top-line metric modifying The operational rigor. bottom-line provides balance on "gate" Income Operating performance while the TSR is well aligned to shareholders' interest as it focuses on relative share performance against other mid- to of relative large-size technology companies. TSR reflects (i) the aggregate change in the 30-day average closing price of Logitech For purposes of the PSUs, relative shares against the companies in the Nasdaq-100 Index, and (ii) the value (if any) returned to shareholders in the form of a of end the beginning and the at each paid, when shares reinvested in be to distributions, assumed similar dividends or three-year performance period. The modifier of the fiscal year 2018 PSUs is summarized below: shareholders’ value increase is below the median of the companies comprising the Nasdaq-100 Index and will enhance will and Index Nasdaq-100 companies comprising the the of median the below is increase value shareholders’ comprising companies the of median the exceeds increase value shareholders’ our periods when for level vesting our PSUs Vesting in Fiscal Year 2018 Year in Fiscal PSUs Vesting April 15, April 2015 completed the three-year measurement period on March 31, 2018 and vested on The PSUs granted in Shareholder Return (TSR) relative Total The number of shares earned was dependent on Logitech’s 2018 at 150% of target. percentile and Logitech’s March 31, 2018 April 1, 2015 through from the performance period the Nasdaq 100 over to ending $42.38 beginning was $13.67 and our average stock price was price at the of the period ranking. Our average stock was 210.13% and our stock performed above TSR Therefore, for this period our (assuming dividends were reinvested). the 94 Restricted Stock Unit Awards in fiscal year 2018were subject a time-based vesting requirement to The RSU awards granted to our executive officers executive the continued service of on the equal annual installments based in four four-year vesting period, a and have each such vesting on date. officer Table “Summary Compensation in the set forth fiscal year 2018 are in executive officers awards granted to our The equity for Fiscal Year and 75 a three-year performance period and the number of shares that will vest at the end of the three-year period will range range will period three-year the of end the at vest will that shares of number the and performance period three-year a depending number of shares to 200% of the target from 0% by: (i) three- as measured performance, on our corporate relative total Logitech's on modifier based a (ii) currency; constant measured in revenue growth weighted average year and the three-year performance period; TSR Rank, over shareholder return (“TSR”) against the Nasdaq-100 Index, or (iii) performance period for any award to vest. The vested percentage attributable to a TSR Percentile Rank between the 25 between the Percentile Rank TSR a attributable to vested percentage The

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 69 69 by the Compensation Committee.

Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Welfare and Health Benefits and Health Welfare (the amended as 1986, of Code Revenue Internal the of 401(k) Section under plan retirement tax-qualified a maintain We for save to opportunity an with them provides that officers, executive our including U.S., the in employees our for “Code”), so Code the of 501(a) and 401(a) Sections under qualify to plan this for intend We basis. tax-advantaged a on retirement until employees to taxable not are contributions, plan on earned income and plan, the to employees by contributions that plan. distributed the all contributions from In addition, are deductible by us when made. made we 2018, year fiscal In plan. the under contributed when vested 100% are deferrals their in interests participants’ All matching contributions into the Section 401(k) plan for our employees, including our executive officers. Under the plan, pre-tax contributions are allocated to each participant’s individual directions. alternatives participants’ according to the account and then invested in selected investment In compliance with the Swiss federal pension law, Switzerland, with employee and employer contributions, which provides benefits in case of we retirement, death or disability maintain a Cash Balance pension plan due to sickness. for our employees in In addition, we provide other benefits to our executive officers on the same basis as all of our full-time employees. These employees. full-time our of all as basis same the on officers executive our to benefits other provide we addition, In and short-term accounts, spending flexible care dependent and health benefits, vision and dental health, include benefits long-term disability insurance, accidental death and dismemberment insurance, and basic life insurance coverage. We provide vacation and other paid holidays to all employees, including our executive also We officers. our offer employees the opportunity participate to in the Logitech Employee Share Plans. Purchase compliant as well as market, the to relation in competitive and affordable be to programs benefits employee our design We of monitoring regular on based needed as programs benefits employee our adjust We practices. and laws applicable with needs. applicable laws and practices, the competitive market and our employees’ Deferred Plan Compensation Eligible employees, including our executive based officers in the U.S., may also participate in the Logitech Inc. Deferred Compensation Plan and a predecessor plan, which are unfunded and unsecured plans that allow employees of Logitech Inc., the Logitech subsidiary in the United States, who earn more than a threshold amount the opportunity to defer U.S. taxes on up to 80% of their base to 90% of their bonus salary and up or commission compensation. participants Under the the plan, compensation by may chosen be deferred benchmarks until investment termination of on employment or based other earnings specified dates with chosen credited by the are amounts deferred and participants, from a number of mutual funds 401(k) The and earnings selected Deferred by Compensation Logitech Inc.’s Committee. contributions make not does Logitech investments. plan the by solely funded be to intended are participants the to credited to this plan. Information regarding executive officer participation in the deferred compensation plans can be found in the 2018” below. Year for Fiscal Table “Non-Qualified Deferred Compensation compensation deferred the under return of rates above-market or preferential receive not do officers executive the Because “Non-Qualified the in included are but table, Compensation Summary the in included not are plan the under earnings plan, 2018” below. Year for Fiscal Table Deferred Compensation Personal Benefits Perquisites and Other compensation executive our of component significant a as benefits personal other or perquisites view not do we Currently, periodic to subject and approved be program. will Accordingly, Logitech’s benefits executive personal officer other benefit or programs perquisites are to substantially respect the with practices same future as All for all employees. other eligible review

80% 100% 120% Primary Metric Modifier Factor Achieved Under on Vesting Level on Vesting percentiles, or between the 50 percentiles, or th and 50 th 68 TSR Rank modifier will reduce the vesting level for periods when our when periods for level vesting the reduce will modifier Rank TSR measuring our performance with multiple metrics provides complete a more The 2018” and the “Grants of Plan-Based Awards Table for Fiscal Year 2018” below. Year for Fiscal Table Awards 2018” and the “Grants of Plan-Based percentiles, is determined by straight-line interpolation. determined by percentiles, is percentile, which resulted in a 150% payout. th th Percentile Rank and below Percentile Rank (target) Above (maximum) Percentile Rank and three-year over the Income cumulative Operating minimum level of a achievement of requires that "gate" a th th th Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Against Nasdaq-100 Index TSR Percentile Rank of Logitech TSR 25 50 75 Performance-Based Performance-Based RSUs beginning of the determined at year fiscal is 2018 in officers executive our granted to awards PSU of number target The shareholders’ value increase is below the median of the companies comprising the Nasdaq-100 Index and will enhance will and Index Nasdaq-100 companies comprising the the of median the below is increase value shareholders’ comprising companies the of median the exceeds increase value shareholders’ our periods when for level vesting our number The total the end of the three-year of shares that may vest at period is capped at 200%of the Nasdaq-100 Index. of shares. the target number The Compensation believes Committee that picture of the Company's performance. weighted The Compensation metric of average Revenue Committee believes the primary growth will motivate top-line metric modifying The operational rigor. bottom-line provides balance on "gate" Income Operating performance while the TSR is well aligned to shareholders' interest as it focuses on relative share performance against other mid- to of relative large-size technology companies. TSR reflects (i) the aggregate change in the 30-day average closing price of Logitech For purposes of the PSUs, relative shares against the companies in the Nasdaq-100 Index, and (ii) the value (if any) returned to shareholders in the form of a of end the beginning and the at each paid, when shares reinvested in be to distributions, assumed similar dividends or three-year performance period. The modifier of the fiscal year 2018 PSUs is summarized below: The vested percentage attributable to a TSR Percentile Rank between the 25 between the Percentile Rank TSR a attributable to vested percentage The and 75 2018 Year in Fiscal PSUs Vesting April 15, April 2015 completed the three-year measurement period on March 31, 2018 and vested on The PSUs granted in Shareholder Return (TSR) relative Total The number of shares earned was dependent on Logitech’s 2018 at 150% of target. percentile and Logitech’s March 31, 2018 April 1, 2015 through from the performance period the Nasdaq 100 over to ending $42.38 beginning was $13.67 and our average stock price was price at the of the period ranking. Our average stock was 210.13% and our stock performed above TSR Therefore, for this period our (assuming dividends were reinvested). the 94 Restricted Stock Unit Awards in fiscal year 2018were subject a time-based vesting requirement to The RSU awards granted to our executive officers executive the continued service of on the equal annual installments based in four four-year vesting period, a and have each such vesting on date. officer Table “Summary Compensation in the set forth fiscal year 2018 are in executive officers awards granted to our The equity for Fiscal Year a three-year performance period and the number of shares that will vest at the end of the three-year period will range range will period three-year the of end the at vest will that shares of number the and performance period three-year a depending number of shares to 200% of the target from 0% by: (i) three- as measured performance, on our corporate total Logitech's relative on modifier based a (ii) currency; constant measured in revenue growth weighted average year and the three-year performance period; TSR Rank, over shareholder return (“TSR”) against the Nasdaq-100 Index, or (iii) performance period for any award to vest. 5x Base Salary 3x Base Salary 2x Base Salary Stock Ownership Minimum Required Level of Minimum Required 71 the time of the existence of fraud or misconduct that resulted restatement. in the need for such Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Policies Compensation Other Officer Named Executive Chief Executive Officer Chief Financial Officer Other Executive Officers In addition, our 2006 Stock Incentive Plan and our Management Performance Bonus Plan provide that awards under the under awards that provide Plan Bonus Performance Management our and Plan Incentive Stock 2006 our addition, In plans are suspended forfeited the plan or if participant, whether or not an executive officer: • has committed an act of embezzlement, breach of fiduciary duty; fraud or • makes an unauthorized disclosure of any Logitech trade secret or confidential or information; • induces Logitech. any customer to breach a contract with Any decision to suspend or cause a forfeiture of any award held by an executive officer Compensation under the The 2006 Directors. Stock of Incentive Board the of approval the to subject is Plan Bonus Performance Management the or Plan Committee will amend to as the comply necessary, policy, with the final SEC rules regarding clawback policies required Act. Reform Street and Consumer Protection by the Dodd-Frank Wall Stock Ownership Policy Stock Ownership ownership stock a inherent rewards and risks the link adopted to important is officers executive has and directors our by ownership stock that Committee believe We Compensation The shareholders. our and individuals these of ownership stock in ownership mandatory These shares. registered our of number minimum a own to officers executive our requires that policy levels are intended to create a clear standard that ties a portion of net these worth individuals’ to the performance of our The current ownership are levels follows: as stock price. executive the by outright owned shares include guidelines ownership the of satisfaction the toward count that interests Equity and 50% officer of vested, unexercised stock options. Newly hired or promoted executives have five years from the date of the commencement of their appointment to attain these ownership levels. The CEO must hold 100% of his after-tax shares until the ownership requirements are met. Leadership The the other executive end under the officers by guideline bonuses must applicable the hold meet earned not does at officer any least executive an 50% If of met. are of requirements value ownership their the until after-tax shares after-tax the of 50% have will officer executive the period, five-year the of either have officers executive other our of each and CEO Our shares. Logitech vested fully in paid Program Bonus Team currently satisfied his or her required stock ownership levels or have remaining ownership. time to achieve the required levels these of regarding information For directors. non-employee our for guidelines ownership stock instituted have we Additionally, guidelines, see the section entitled “Security Ownership Guidelines” - Share Ownership above. Compensation Recovery Policy executive an to paid compensation of recovery the regarding policy a adopted Committee Compensation the 2010, June In officer or the principal accounting officer of the Company (a “clawback”). Under the terms of the policy we may recover covered a to years three prior the within paid or awarded compensation incentive other or awards equity amounts, bonus met were that goals performance any on based was compensation the determines Committee Compensation the if officer or exceeded as a result, in whole or in part, of the officer’s fraud or existence of misconduct, fraud or or misconduct that the resulted in performance officer goals being knew met or at exceeded, and the a lower amount time would of the otherwise have been awarded In or addition, paid under to the the policy officer. Logitech may recover gains realized on the exercise of stock options or on the sale of vested shares by an executive or officer the principal accounting if, officer determines Committee Compensation the and within three years after the date of the gains or sales, Logitech discloses the need for a significant financial restatement, GAAP, U.S. to revisions of because solely restatement financial a than other knew officer covered the or restatement, the for need the caused partially or caused misconduct or fraud officer’s the that at 70 70 time-based vesting. Post-Employment Compensation Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation In 2015, to comply with the Minder Ordinance, we eliminated all change of control and severance arrangements with our executive the officers, including Company all However, continues members to of provide our Group Management Team. “double trigger” change of control arrangements with effect. in remain respect awards equity outstanding in to arrangements acceleration vesting time-based equity control of change vesting trigger” “double in equity award agreements, and The purpose of the Change of Control provisions in equity award agreements is to support prospective change of retention control. The RSU and PSU in award agreements for the our executive officers generally provide event for the of a acceleration of vesting of the RSUs and PSUs subject to the award agreements if the executive officer is subject to an involuntary termination within 12 months after a change of control because his or her employment is terminated without cause or the executive resigns for good reason (a “double trigger”). In the event of an involuntary termination within after a change of control : 12 months • to subject are that shares to respect with full in accelerate would elements time-based containing PSUs and RSUs All • No shares subject to performance-based vesting requirements accelerate. would determine the level of acceleration To of equity awards that may be provided in connection with a change of control, the market and shareholders, on impact the Ordinance, Minder the of requirements the considered Committee Compensation practices. Logitech does not provide any payments to reimburse its executive officers for additional taxes incurred (also known as “gross-ups”) in connection with a change of control. For a summary of the post-employment compensation arrangements with our executive officers, see “Payments upon or Change in Control” below. Termination Employment Arrangements Employment our including officers, executive our of each to both or letters offer or agreements employment written extended have We Directors of Board our by behalf our on approved was arrangements these of Each officers. executive other our and CEO or the Compensation Committee, as applicable. We believe that these arrangements were appropriate to induce these individuals to forego other employment opportunities or leave their current employer for the uncertainty of a demanding position in a new and unfamiliar organization. that aware was applicable, as Committee, Compensation the or Directors of Board our positions, executive these filling In business growing a manage to skills and experience requisite the with candidates retain or recruit to necessary be would it in a dynamic environment. it recognized that it Accordingly, would need to develop competitive compensation packages to attract or Committee, retain qualified Compensation the or Directors of Board our time, same the At market. labor competitive highly a in candidates that structure compensation executive the into officers executive new integrate to need the to sensitive was applicable, as it was seeking develop, to balancing competitive both and internal equity considerations. Each of these employment arrangements provides arrangements for for the executive “at officer, including an will” initial base salary, a employment target annual cash and bonus opportunity, and, sets in some instances, a recommendation for an equity award. forth the initial compensation

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 5x Base Salary 3x Base Salary 2x Base Salary Stock Ownership Minimum Required Level of Minimum Required 71 71 the time of the existence of fraud or misconduct that resulted restatement. in the need for such Chief Executive Officer Chief Financial Officer Other Executive Officers Named Executive Officer Named Executive Other Compensation Policies Compensation Other Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Equity interests that count toward the satisfaction of the ownership guidelines include shares owned outright by the executive the by outright owned shares include guidelines ownership the of satisfaction the toward count that interests Equity and 50% officer of vested, unexercised stock options. Newly hired or promoted executives have five years from the date of the commencement of their appointment to attain these ownership levels. The CEO must hold 100% of his after-tax shares until the ownership requirements are met. Leadership The the other executive end under the officers by guideline bonuses must applicable the hold meet earned not does at officer any least executive an 50% If of met. are of requirements value ownership their the until after-tax shares after-tax the of 50% have will officer executive the period, five-year the of either have officers executive other our of each and CEO Our shares. Logitech vested fully in paid Program Bonus Team currently satisfied his or her required stock ownership levels or have remaining ownership. time to achieve the required levels these of regarding information For directors. non-employee our for guidelines ownership stock instituted have we Additionally, guidelines, see the section entitled “Security Ownership Guidelines” - Share Ownership above. Compensation Recovery Policy executive an to paid compensation of recovery the regarding policy a adopted Committee Compensation the 2010, June In officer or the principal accounting officer of the Company (a “clawback”). Under the terms of the policy we may recover covered a to years three prior the within paid or awarded compensation incentive other or awards equity amounts, bonus met were that goals performance any on based was compensation the determines Committee Compensation the if officer or exceeded as a result, in whole or in part, of the officer’s fraud or existence of misconduct, fraud or or misconduct that the resulted in performance officer goals being knew met or at exceeded, and the a lower amount time would of the otherwise have been awarded In or addition, paid under to the the policy officer. Logitech may recover gains realized on the exercise of stock options or on the sale of vested shares by an executive or officer the principal accounting if, officer determines Committee Compensation the and within three years after the date of the gains or sales, Logitech discloses the need for a significant financial restatement, GAAP, U.S. to revisions of because solely restatement financial a than other knew officer covered the or restatement, the for need the caused partially or caused misconduct or fraud officer’s the that at In addition, our 2006 Stock Incentive Plan and our Management Performance Bonus Plan provide that awards under the under awards that provide Plan Bonus Performance Management our and Plan Incentive Stock 2006 our addition, In plans are suspended forfeited the plan or if participant, whether or not an executive officer: • has committed an act of embezzlement, breach of fiduciary duty; fraud or • makes an unauthorized disclosure of any Logitech trade secret or confidential or information; • induces Logitech. any customer to breach a contract with Any decision to suspend or cause a forfeiture of any award held by an executive officer Compensation under the The 2006 Directors. Stock of Incentive Board the of approval the to subject is Plan Bonus Performance Management the or Plan Committee will amend to as the comply necessary, policy, with the final SEC rules regarding clawback policies required Act. Reform Street and Consumer Protection by the Dodd-Frank Wall Stock Ownership Policy Stock Ownership ownership stock a inherent rewards and risks the link adopted to important is officers executive has and directors our by ownership stock that Committee believe We Compensation The shareholders. our and individuals these of ownership stock in ownership mandatory These shares. registered our of number minimum a own to officers executive our requires that policy levels are intended to create a clear standard that ties a portion of net these worth individuals’ to the performance of our The current ownership are levels follows: as stock price. 70 “double trigger”). time-based vesting. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Post-Employment Compensation Employment Arrangements Employment our including officers, executive our of each to both or letters offer or agreements employment written extended have We Directors of Board our by behalf our on approved was arrangements these of Each officers. executive other our and CEO or the Compensation Committee, as applicable. We believe that these arrangements were appropriate to induce these individuals to forego other employment opportunities or leave their current employer for the uncertainty of a demanding position in a new and unfamiliar organization. that aware was applicable, as Committee, Compensation the or Directors of Board our positions, executive these filling In business growing a manage to skills and experience requisite the with candidates retain or recruit to necessary be would it in a dynamic environment. it recognized that it Accordingly, would need to develop competitive compensation packages to attract or Committee, retain qualified Compensation the or Directors of Board our time, same the At market. labor competitive highly a in candidates that structure compensation executive the into officers executive new integrate to need the to sensitive was applicable, as it was seeking develop, to balancing competitive both and internal equity considerations. Each of these employment arrangements provides arrangements for for the executive “at officer, including an will” initial base salary, a employment target annual cash and bonus opportunity, and, sets in some instances, a recommendation for an equity award. forth the initial compensation In 2015, to comply with the Minder Ordinance, we eliminated all change of control and severance arrangements with our executive the officers, including Company all However, continues members to of provide our Group Management Team. “double trigger” change of control arrangements with effect. in remain respect awards equity outstanding in to arrangements acceleration vesting time-based equity control of change vesting trigger” “double in equity award agreements, and The purpose of the Change of Control provisions in equity award agreements is to support prospective change of retention control. The RSU and PSU in award agreements for the our executive officers generally provide event for the of a acceleration of vesting of the RSUs and PSUs subject to the award agreements if the executive officer is subject to an involuntary termination within 12 months after a change of control because his or her employment is terminated without cause or the executive resigns for good reason (a In the event of an involuntary termination within after a change of control : 12 months • to subject are that shares to respect with full in accelerate would elements time-based containing PSUs and RSUs All • No shares subject to performance-based vesting requirements accelerate. would determine the level of acceleration To of equity awards that may be provided in connection with a change of control, the market and shareholders, on impact the Ordinance, Minder the of requirements the considered Committee Compensation practices. Logitech does not provide any payments to reimburse its executive officers for additional taxes incurred (also known as “gross-ups”) in connection with a change of control. For a summary of the post-employment compensation arrangements with our executive officers, see “Payments upon or Change in Control” below. Termination 73

Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Assessment Risks Compensation Committee Report of the Compensation The Compensation Committee conducts an annual review, with the assistance of its compensation consultant, of Logitech’s Logitech’s of consultant, compensation its of assistance the with review, annual an conducts Committee Compensation The Compensation The controls. risk associated and design their with associated risks the assess to programs compensation Committee reviews in particular compensation the following programs and associated practices: • Equity awards the 2006 granted under Incentive Plan. Stock • Management Plan. Performance Bonus • Employee Plan. Performance Bonus • Sales Commission Plans. • Agreements. Change of Control As in past years, based on its March 2018 the review, Compensation Committee has concluded that our compensation on the Company. policies and practices do create are likely not risks that reasonably have a material to adverse effect The Logitech Compensation Committee, which is composed solely of independent members of the Directors, Logitech Report Board Compensation assists of this of the section Analysis” Board and Discussion “Compensation in the discussed fulfilling and reviewed has its Committee responsibilities with regard to compensation matters. with The management. Based Compensation on this review and Statement discussion, Proxy and the Invitation 2018 Compensation Logitech’s in Committee included be recommended Analysis" to and Discussion the "Compensation the Board that Directors of Annual Report. and Compensation Committee Edouard Bugnion, Chairperson Sally Davis Neil Hunt Dimitri Panayotopoulos 72 72 members our of Board of Directors. Tax and Accounting Considerations and Tax Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Accounting and Tax Treatment of Executive Compensation Treatment and Tax Accounting Favorable accounting and tax treatment of the various elements of our executive compensation program compensation is consideration in its design. flexible a relevant structuring on priority higher a placed have Committee Section Compensation the deductibility. tax and maximizing Company on the than However, officers our of performance and retention, recruitment, the promote Logitech that to compensation of programs amount the on million $1 of limit a places Code”), “Tax (the amended as through Code, ability the the of 162(m) had Committee Compensation The officers. executive certain to respect with year one any in deduct may the use of the Logitech International S.A. “performance-based 2006 compensation” Stock exempt from Incentive that Plan $1 to million grant limitation adopt not did Committee Compensation the goals, corporate varying promote to designed manner a in officers executive but, awards to that maintain would flexibility have in qualified compensating as a policy requiring all compensation to be deductible, and continued to make compensation awards that did not qualify to The objectives. compensation its meet to appropriate was it that believed it when limitation million $1 the from exempt be Cuts Tax and Act”) Act Jobs (the enacted “Tax on December 22, 2017, significantly modified Section 162(m) of the Tax Code. Act The Tax eliminated the “qualified performance-based compensation” exception to the deductibility limitation under Section 162(m) of the Code for tax years commencing December 31, after 2017. While we cannot predict how the deductibility limit may impact our compensation program in future years because certain amounts of compensation are grandfathered from its impact, we intend to maintain an approach to executive compensation that strongly links pay to performance. consequences, accounting the considers Committee Compensation the consequences, tax the considering to addition In Accounting Standards Codification Section 718, on its Accounting Standard Board’s including the impact of the Financial equity awards. decisions in determining different the forms of Equity Award Grant Practices Award Equity Determination equity of long-term incentive awards awards, incentive equity receive should officers executive which approving for responsible is Committee Compensation The when the awards should be made, the vesting schedule, and the number of shares or other rights to be granted. Long- Board full the or Committee Compensation the by only granted be may officers executive to awards incentive equity term including Board. approvals of grants, to the The Compensation regularly Committee reports its activity, of Directors. grants of Timing Long-term equity incentive award grants to executive scheduled, officers predetermined meetings of the are Compensation Committee. These meetings limited are On typically generally Board. scheduled full at least the and of meetings predetermined scheduled, predominantly regularly the before place approved take and advance at in months 18 regularly occasions, grants may be approved at an interim meeting of the Compensation Committee or by written consent, for the purpose approving of the hiring and compensation package newly hired or promoted for executives. In fiscal year 2018, grants were made to non-executive officer employees through regularly scheduled monthly written consents of the Compensation Committee or Compensation Committee. We do approval not have any program, plan, by or practice to select equity compensation the grant dates in CEO purpose the for information of release the pursuant time we do nor information, non-public material of release the with to coordination authority delegated to him by do not backdate options retroactively. or grant options value. We of affecting the Directors of Board Policies and Pledging Hedging, our Derivatives Trading, of members and officers, transaction executive our equivalent including any employees, or our box” prohibiting the policy against a “sales adopted sales, have short We of use the including securities, equity our in speculating from involving our equity securities. hold. In they that addition, securities they the may to not respect engage with arrangements, in related any or other similar hedging other and transactions, swaps such equity as sales, “cashless” forward collars, any in trade or sell, acquire, may Directors of Board our of member or officer executive an including employee, no Finally, interest or position our equity relating to the future price of securities. officers, executive our including employees, our by securities our of pledging the prohibiting policy a adopted have also We and

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 73 73

Report of the Compensation Committee Report of the Compensation Compensation Risks Assessment Risks Compensation Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The Logitech Compensation Committee, which is composed solely of independent members of the Directors, Logitech Report Board Compensation assists of this of the section Analysis” Board and Discussion “Compensation in the discussed fulfilling and reviewed has its Committee responsibilities with regard to compensation matters. with The management. Based Compensation on this review and Statement discussion, Proxy and the Invitation 2018 Compensation Logitech’s in Committee included be recommended Analysis" to and Discussion the "Compensation the Board that Directors of Annual Report. and Compensation Committee Edouard Bugnion, Chairperson Sally Davis Neil Hunt Dimitri Panayotopoulos The Compensation Committee conducts an annual review, with the assistance of its compensation consultant, of Logitech’s Logitech’s of consultant, compensation its of assistance the with review, annual an conducts Committee Compensation The Compensation The controls. risk associated and design their with associated risks the assess to programs compensation Committee reviews in particular compensation the following programs and associated practices: • Equity awards the 2006 granted under Incentive Plan. Stock • Management Plan. Performance Bonus • Employee Plan. Performance Bonus • Sales Commission Plans. • Agreements. Change of Control As in past years, based on its March 2018 the review, Compensation Committee has concluded that our compensation on the Company. policies and practices do create are likely not risks that reasonably have a material to adverse effect 72 members our of Board of Directors. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Accounting Considerations and Tax Equity Award Grant Practices Award Equity Determination equity of long-term incentive awards awards, incentive equity receive should officers executive which approving for responsible is Committee Compensation The when the awards should be made, the vesting schedule, and the number of shares or other rights to be granted. Long- Board full the or Committee Compensation the by only granted be may officers executive to awards incentive equity term including Board. approvals of grants, to the The Compensation regularly Committee reports its activity, of Directors. grants of Timing Long-term equity incentive award grants to executive scheduled, officers predetermined meetings of the are Compensation Committee. These meetings limited are On typically generally Board. scheduled full at least the and of meetings predetermined scheduled, predominantly regularly the before place approved take and advance at in months 18 regularly occasions, grants may be approved at an interim meeting of the Compensation Committee or by written consent, for the purpose approving of the hiring and compensation package newly hired or promoted for executives. In fiscal year 2018, grants were made to non-executive officer employees through regularly scheduled monthly written consents of the Compensation Committee or Compensation Committee. We do approval not have any program, plan, by or practice to select equity compensation the grant dates in CEO purpose the for information of release the pursuant time we do nor information, non-public material of release the with to coordination authority delegated to him by do not backdate options retroactively. or grant options value. We of affecting the Directors of Board Policies and Pledging Hedging, our Derivatives Trading, of members and officers, transaction executive our equivalent including any employees, or our box” prohibiting the policy against a “sales adopted sales, have short We of use the including securities, equity our in speculating from involving our equity securities. hold. In they that addition, securities they the may to not respect engage with arrangements, in related any or other similar hedging other and transactions, swaps such equity as sales, “cashless” forward collars, any in trade or sell, acquire, may Directors of Board our of member or officer executive an including employee, no Finally, interest or position our equity relating to the future price of securities. officers, executive our including employees, our by securities our of pledging the prohibiting policy a adopted have also We and of Executive Compensation Treatment and Tax Accounting Favorable accounting and tax treatment of the various elements of our executive compensation program compensation is consideration in its design. flexible a relevant structuring on priority higher a placed have Committee Section Compensation the deductibility. tax and maximizing Company on the than However, officers our of performance and retention, recruitment, the promote Logitech that to compensation of programs amount the on million $1 of limit a places Code”), “Tax (the amended as through Code, ability the the of 162(m) had Committee Compensation The officers. executive certain to respect with year one any in deduct may the use of the Logitech International S.A. “performance-based 2006 compensation” Stock exempt from Incentive that Plan $1 to million grant limitation adopt not did Committee Compensation the goals, corporate varying promote to designed manner a in officers executive but, awards to that maintain would flexibility have in qualified compensating as a policy requiring all compensation to be deductible, and continued to make compensation awards that did not qualify to The objectives. compensation its meet to appropriate was it that believed it when limitation million $1 the from exempt be Cuts Tax and Act”) Act Jobs (the enacted “Tax on December 22, 2017, significantly modified Section 162(m) of the Tax Code. Act The Tax eliminated the “qualified performance-based compensation” exception to the deductibility limitation under Section 162(m) of the Code for tax years commencing December 31, after 2017. While we cannot predict how the deductibility limit may impact our compensation program in future years because certain amounts of compensation are grandfathered from its impact, we intend to maintain an approach to executive compensation that strongly links pay to performance. consequences, accounting the considers Committee Compensation the consequences, tax the considering to addition In Accounting Standards Codification Section 718, on its Accounting Standard Board’s including the impact of the Financial equity awards. decisions in determining different the forms of 18,761 24,876 25,493 22,820 49,992 49,875 14,067 54,732 65,680 22,734 22,581 22,364 Total ($) Total (3) — — — — — — — — — — — — ($) 98,633 98,633 Benefit 100,218 100,218 100,056 100,056 Defined Contrib. Employer Pension Plan (2) — — — — — — — — — — — — — ($) lieu of Relocation Relocation or Travel in or Travel — — — ($) Group and LTD Term Life Term Insurance 75 (1) — — — ($) 8,342 10,419 8,8698,2587,565 16,007 17,235 15,255 8,446 5,621 7,9508,835 5,827 4,947 40,955 51,898 8,5228,101 14,059 13,280 9,285 13,449 401(k) ALL OTHER COMPENSATION TABLE OTHER COMPENSATION ALL ($) Tax Services Preparation Year FY17 31,679 8,400 9,913 FY17FY16 — — FY16 33,695 6,998 9,182 FY17FY16 — — FY17 — FY16 — FY17FY16 — 983 payroll. similarly-situated regular employees are on our Swiss payroll. who 2, 2019, the end of his 2, 2019, the end of contractual notice period. 2015 to March 2016) 2015 to March exchange Dollars. to 1.0288 of 1 Swiss Franc U.S. rate Francs were converted using the 12-month average (April 2016 to March 2017) exchange rate of 1 Swiss Franc to 1.0138 U.S. Dollars. Mr. Stolk’s fiscal year 2016 compensation amounts in Swiss Francs were converted using the 12-month average (April March 2018) exchange rate of 1 Swiss Franc to 1.0301 U.S. Dollars. Mr. Stolk’s fiscal year 2017 compensation amounts in Swiss Stolk’s March 2018) exchange rate of 1 Swiss Franc to 1.0301 Dollars. U.S. Mr. Bracken Darrell FY18 — Guerrino De Luca FY18 — PiletteVincent FY18Marcel Stolk — FY18 — Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Name L. Joseph SullivanL. FY18 — (5) Mr. Sullivan resigned from the Group Management Team effective as of May 2, 2018 and will retire from the Company as of February of as Company the from retire will and 2018 2, May of as effective Team Management (5) Group the from resigned Sullivan Mr. (2) travel. extended business Pilette’s Represents costs associated with Mr. (3) Represents the matching contributions to the Logitech Employee Pension Fund in Switzerland, which are available to all of our (1) U.S. our on are who employees regular our of all to available are which contributions, matching plan savings 401(k) Represents (4) (4) Mr. Stolk’s fiscal year 2018 compensation amounts in Swiss Francs were converted using the 12-month average (April 2017 to Total ($) Total (3) ($) 22,364 1,522,479 22,581 1,701,820 22,820 1,692,061 24,87625,493 1,596,618 1,975,452 98,633 2,375,597 22,734 1,598,712 18,761 7,239,855 49,992 7,213,484 49,87514,067 7,209,337 4,056,660 54,73265,680 3,654,535 3,462,214 100,056 1,958,622 100,218 2,187,683 All Other Compensation — — — — — — — — — — — — — — — 2018. Deferred Changes in Earnings ($) Nonqualified Compensation (2) 2016, 2017 or ($) 683,700 581,674 575,000 874,650 356,250 444,356 910,000 1,000,000 1,329,688 2,225,000 1,200,000 Non-equity Incentive Plan Compensation — — — — — — — — — — — 870,000 ($) Option Awards 74 74 (1) ($) Stock 449,959 539,944 496,742 855,964 745,097 Awards Awards 4,967,079 4,049,492 1,087,663 2,483,555 1,799,803 1,969,226 (b) in the case of Mr. Darrell, $3,391,164; (c) in the case of Mr. Pilette $1,507,220; Darrell, $3,391,164; (c) in the (b) case in of the Mr. case of Mr. — — — — — — 4,942,274 — 1,392,188 — — ($) Bonus ($) Salary 924,327 — 455,595 — 889,000 — 825,000 FY16 442,385 — 593,105 — 464,625 FY18 FY16 500,000 — 494,241 — 675,000 FY16 538,587 —FY17 738,305 — FY17 FY17 546,350 FY18 555,446 FY18 474,631 FY18 500,000 FY16 FY18 649,038 FY16 557,308 — (5) (4) in the case of Mr. Stolk, $715,930; and (e) in the case of Mr. Sullivan, $452,166. Stolk, $715,930; and (e) in the case of Mr. in Mr. the case of accordance with the Management the terms of Logitech Performance Bonus Plan. allocated in FY17, using the market value of our shares traded on Nasdaq Global Select Market on the grant date of the PSUs, De Luca, $376,805; was: (a) in the case of Mr. plan compensation was earned during the applicable fiscal year but, for executive officers, was paid during the next fiscal year in allocated in FY16, using the market value of our shares traded on Nasdaq Global Select Market on the grant date of the PSUs, Pilette $1,331,717; Darrell, $3,995,151; De (c) Luca, in $399,519; the (b) case was: in of (a) the Mr. in case the of case Mr. of Mr. Sullivan, $479,451. Stolk, $599,296; and (e) in the case of Mr. (d) in Mr. the case of For FY17: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted in fiscal year allocated in FY18, using the market value of our shares traded on Nasdaq Global Select Market on the grant date of the PSUs, Pilette $3,000,031; Darrell, $6,000,001; De (c) Luca, in $600,044; the (b) case was: in of (a) the Mr. in case the of case Mr. of Mr. Sullivan, $900,034. Stolk, $1,320,034; and (e) in the case of Mr. (d) in Mr. the case of 2017 at target achievement. Assuming the highest level of performance is achieved, the maximum possible value of the PSUs For FY16: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted in fiscal year 2016 at target achievement. Assuming the highest level of performance is achieved, the maximum possible value of the PSUs For FY18: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted in fiscal year (d) These amounts do not represent the actual economic value realized by the named executive officer. Under SEC rules, the economic value realized by the named executive officer. These amounts do not represent the actual granted to each of the column reflect the aggregate grant date fair value of stock awards Awards” values reported in the “Stock options The key assumptions and methodology of valuation of stock awards and stock listed officers in the fiscal years shown. Annual Report to Shareholders. No Financial Statements included in Logitech’s are presented in Note 6 to the Consolidated executive officers during fiscal years stock options were granted to our named 2018 at target achievement. Assuming the highest level of performance is achieved, the maximum possible value of the PSUs Chairman of the Board FY17 500,000 President, Senior Vice Operations Worldwide President and Chief Executive Officer Executive Chairman, Logitech C&P Europe S.A. and SVP, Business Group Chief Financial Officer FY17 600,000 L. Joseph Sullivan L. Bracken Darrell Name and Principal Position Year Guerrino De Luca Summary Compensation Table for Fiscal Year 2018 Year for Fiscal Table Compensation Summary Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Vincent Pilette Vincent Marcel Stolk (3) Details regarding the various amounts included in this column are provided in the following table entitled “All Other Compensation.” Other “All entitled table following the in provided are column this in (3) included amounts various the regarding Details (2) Except as noted below, reflects amounts earned under the Logitech Management Performance Bonus Plan. This non-equity incentive non-equity This Plan. Bonus Performance Management Logitech the under earned amounts reflects (2) below, noted as Except (1) The following table provides information regarding the compensation and benefits earned during fiscal years 2018, 2017, 2018, years fiscal during earned benefits and compensation the regarding information provides table following The and 2016 Table.” by Awards our Plan-Based Named of Grants Executive and Officers. For Table more Compensation Summary information, to Disclosure please “Narrative the refer as to well as the Analysis,” “Compensation Discussion and

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 18,761 24,876 25,493 22,820 49,992 49,875 14,067 54,732 65,680 22,734 22,581 22,364 Total ($) Total (3) — — — — — — — — — — — — ($) 98,633 98,633 Benefit 100,218 100,218 100,056 100,056 Defined Contrib. Employer Pension Plan (2) — — — — — — — — — — — — — ($) lieu of Relocation Relocation or Travel in or Travel — — — ($) 75 Group and LTD Term Life Term Insurance 75 (1) — — — ($) 8,342 10,419 8,869 16,007 8,258 17,235 7,565 15,255 8,446 5,621 7,950 5,827 40,955 8,835 4,947 51,898 9,285 13,449 8,522 14,059 8,101 13,280 401(k) ALL OTHER COMPENSATION TABLE OTHER COMPENSATION ALL ($) Tax Services Preparation Year FY17 31,679 8,400 9,913 FY17 — FY16 — FY16 33,695 6,998 9,182 FY17 — FY16 — FY17 — FY16 — FY17 — FY16 983 payroll. similarly-situated regular employees are on our Swiss payroll. who 2, 2019, the end of his 2, 2019, the end of contractual notice period. 2015 to March 2016) 2015 to March exchange Dollars. to 1.0288 of 1 Swiss Franc U.S. rate Francs were converted using the 12-month average (April 2016 to March 2017) exchange rate of 1 Swiss Franc to 1.0138 U.S. Dollars. Mr. Stolk’s fiscal year 2016 compensation amounts in Swiss Francs were converted using the 12-month average (April March 2018) exchange rate of 1 Swiss Franc to 1.0301 U.S. Dollars. Mr. Stolk’s fiscal year 2017 compensation amounts in Swiss Stolk’s March 2018) exchange rate of 1 Swiss Franc to 1.0301 Dollars. U.S. Mr. Bracken Darrell FY18 — Guerrino De Luca FY18 — Vincent PiletteVincent FY18 — Marcel Stolk FY18 — Name Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation L. Joseph SullivanL. FY18 — (5) Mr. Sullivan resigned from the Group Management Team effective as of May 2, 2018 and will retire from the Company as of February of as Company the from retire will and 2018 2, May of as effective Team Management (5) Group the from resigned Sullivan Mr. (2) travel. extended business Pilette’s Represents costs associated with Mr. (3) Represents the matching contributions to the Logitech Employee Pension Fund in Switzerland, which are available to all of our (1) U.S. our on are who employees regular our of all to available are which contributions, matching plan savings 401(k) Represents (4) (4) Mr. Stolk’s fiscal year 2018 compensation amounts in Swiss Francs were converted using the 12-month average (April 2017 to Total ($) Total (3) ($) 22,364 1,522,479 22,581 1,701,820 22,820 1,692,061 22,734 1,598,712 18,761 7,239,855 25,493 1,975,452 24,876 1,596,618 98,633 2,375,597 49,992 7,213,484 14,067 4,056,660 49,875 7,209,337 54,73265,680 3,654,535 3,462,214 100,056 1,958,622 100,218 2,187,683 All Other Compensation — — — — — — — — — — — — — — — 2018. Deferred Changes in Earnings ($) Nonqualified Compensation (2) 2016, 2017 or the shares issuable for PSUs granted in fiscal year ($) 683,700 581,674 356,250 575,000 874,650 444,356 910,000 1,329,688 1,000,000 2,225,000 1,200,000 Non-equity Incentive Plan Compensation — — — — — — — — — — — 870,000 ($) Option Awards 74 (1) ($) Stock 539,944 449,959 745,097 496,742 855,964 Awards Awards 4,967,079 4,049,492 1,087,663 2,483,555 1,799,803 1,969,226 — — — 4,942,274 —— 1,392,188 — — — — ($) Bonus ($) Salary 924,327 — 455,595 — 889,000 — 825,000 FY18 FY16 442,385 — 593,105 — 464,625 FY17 FY17 FY16 500,000 — 494,241 — 675,000 FY16 538,587 — 738,305 — FY18 474,631 FY16 FY18 555,446 FY18 500,000 FY17 546,350 FY18 649,038 FY16 557,308 — (5) (4) at target achievement. Assuming the highest level of performance is achieved, the maximum possible value of the PSUs accordance with the Management the terms of Logitech Performance Bonus Plan. allocated in FY16, using the market value of our shares traded on Nasdaq Global Select Market on the grant date of the PSUs, Pilette $1,331,717; Darrell, $3,995,151; De (c) Luca, in $399,519; the (b) case was: in of (a) the Mr. in case the of case Mr. of Mr. Sullivan, $479,451. and Stolk, $599,296; (e) in the case of Mr. (d) in Mr. the case of plan compensation was earned during the applicable fiscal year but, for executive officers, was paid during the next fiscal year in For FY16: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted in fiscal year allocated in FY17, using the market value of our shares traded on Nasdaq Global Select Market on the grant date of the PSUs, Pilette $1,507,220; Darrell, $3,391,164; De (c) Luca, in $376,805; the (b) case was: in of (a) the Mr. in case the of case Mr. of Mr. Sullivan, $452,166. and Stolk, $715,930; (e) in the case of Mr. (d) in Mr. the case of 2016 at target achievement. Assuming the highest level of performance is achieved, the maximum possible value of the PSUs allocated in FY18, using the market value of our shares traded on Nasdaq Global Select Market on the grant date of the PSUs, Pilette $3,000,031; Darrell, $6,000,001; De (c) Luca, in $600,044; the (b) case was: in of (a) the Mr. in case the of case Mr. of Mr. Sullivan, $900,034. Stolk, $1,320,034; and (e) in the case of Mr. (d) in Mr. the case of For FY17: The amount shown includes an aggregate grant date fair value of For FY18: The amount shown includes an aggregate grant date fair value of the shares issuable for PSUs granted in fiscal year These amounts do not represent the actual economic value realized by the named executive officer. Under SEC rules, the economic value realized by the named executive officer. These amounts do not represent the actual granted to each of the column reflect the aggregate grant date fair value of stock awards Awards” values reported in the “Stock options The key assumptions and methodology of valuation of stock awards and stock listed officers in the fiscal years shown. Annual Report to Shareholders. No Financial Statements included in Logitech’s are presented in Note 6 to the Consolidated executive officers during fiscal years stock options were granted to our named 2017 2018 at target achievement. Assuming the highest level of performance is achieved, the maximum possible value of the PSUs Senior Vice President, Senior Vice Operations Worldwide President and Chief Executive Officer Chairman of the Board FY17 500,000 Executive Chairman, Logitech C&P Europe S.A. and SVP, Business Group Chief Financial Officer FY17 600,000 Bracken Darrell Joseph Sullivan L. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation 2018 Year for Fiscal Table Compensation Summary Name and Principal Position Year Guerrino De Luca Vincent Pilette Vincent Marcel Stolk (3) Details regarding the various amounts included in this column are provided in the following table entitled “All Other Compensation.” Other “All entitled table following the in provided are column this in (3) included amounts various the regarding Details (2) Except as noted below, reflects amounts earned under the Logitech Management Performance Bonus Plan. This non-equity incentive non-equity This Plan. Bonus Performance Management Logitech the under earned amounts reflects (2) below, noted as Except The following table provides information regarding the compensation and benefits earned during fiscal years 2018, 2017, 2018, years fiscal during earned benefits and compensation the regarding information provides table following The and 2016 Table.” by Awards our Plan-Based Named of Grants Executive and Officers. For Table more Compensation Summary information, to Disclosure please “Narrative the refer as to well as the Analysis,” “Compensation Discussion and (1) 77 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Grants of and Table Compensation to Summary Disclosure Narrative Table Awards Plan-Based Table Year-End 2018 Year at Fiscal Awards Outstanding Equity Employment Agreements and Offer Letters and Agreements Employment employment The officers. executive named our of each with letters offer or agreements employment into entered have We sole the to subject is officer executive named the of compensation the that provide generally letters offer and agreements discretion of The the compensation Compensation Committee earned by or the the Board named of executive Directors. letters. in fiscal year 2018 agreements result of any terms of their employment was not the or offer officers Conditions Vesting Performance-Based Please refer to “Compensation to refer please addition, In 2018. year fiscal during Plan Bonus the to applicable measures performance Discussion the of discussion discussion a and for Analysis—Compensation Compensation” Incentive Elements—Annual Elements—Long-Term Analysis—Compensation and Cash Discussion “Compensation Bonuses” for a during fiscal year 2018. of performance measures the PSUs granted under to executive officers as officers executive named our of each for awards equity outstanding regarding information provides table following The This table includes unexercised and of March unvested 31, stock 2018.options, unexercised and unvested performance stock options, unvested and PSUs, unvested RSUs. the of anniversaries four first the of each Options on year per 25% of rate a Stock at vest RSUs and options specified, otherwise Performance Unless and PPOs or Options Priced Premium including options, stock for value market The date. grant Select Global Nasdaq the on shares Logitech of price closing the between difference the taking by calculated is PSOs, or multiplying and price, exercise option the and 2018) 31, March on ($36.73 year fiscal the of day trading last the on Market it by the number of The outstanding market options. value for stock awards (RSUs and PSUs at target) is determined by multiplying the number of shares subject to such awards by the closing price of Logitech shares on the Nasdaq Global Select Market on the last trading year. day of the fiscal (4) ($) Value 192,463 Grant 288,695 Date Fair — 3,042,567 (3) 6,450 9,675 of (#) Stock Shares Awards Awards Number or Units of Stock All Other (#) 193,486 Maximum (#) Target Awards 0 9,675 19,350 — 304,279 0 96,743 0 48,372 96,744 — 1,521,299 0 21,284 42,568 — 669,382 0 14,512 29,024 — 456,402 —— — — — —— — — — —— — — — —— — — — —— — — — Estimated Future Payouts (#) Under Equity Incentive Plan Threshold (2) $ Actual (1) ($) Maximum 76 —— — ——— — — — — — — 64,496 1,924,512 ——— — — — — — — 32,248 962,256 ——— — — — — — — 14,189 418,281 —— — — — — —— — — — — —— — 76 “Compensation Discussion and Analysis.” and Discussion “Compensation refer to the ($) Target Equity Incentive Plan Awards Equity Incentive Plan Estimated Future Payouts Under Non- Estimated Future Payouts — — — — — — — — — — ($) Threshold Date Approval information, please more information, n/a n/a 187,500 500,000 1,000,000 575,000 n/a n/a 433,594 1,156,250 2,312,500 1,329,688 n/a n/a 243,750 650,000 1,300,000 910,000 n/a n/a 166,634 444,356 888,713 444,356 n/a n/a 133,594 356,250 712,500 356,250 Grant DD/YY) 04/15/17 03/28/17 Date (MM/ PSUFY18 Bonus 04/15/17 03/28/17 FY18 Bonus PSU 04/15/17 03/28/17 FY18 Bonus PSU 04/15/17 03/28/17 FY18 Bonus RSUPSU 04/15/17 03/28/17 04/15/17 03/28/17 PSUFY18 Bonus 04/15/17 03/28/17 RSU year 2018. For (5) 2018 bonus programs under the Bonus Plan described in “Compensation Discussion and Analysis” above. 2018 bonus programs under the Bonus Plan described in “Compensation Discussion and Compensation" the "Non-Equity Incentive Plan reflected in are amounts Plan. The actual payout bonus programs under the Bonus 2018. Year for Fiscal column of the "Summary Compensation Table does Codification (ASC) 718 but Accounting Standards RSUs calculated accordance with value in fair of date grant represent the 2018 are based on fiscal year granted in forfeitures. Performance-based (“PSUs”) RSUs reduction for estimated include any not Shareholder and Total Constant Currency Revenue Growth Rate ("WACCR") Average Operating income, Weighted non-GAAP the performance period and that number is calculated by over the Nasdaq-100 TSR benchmark versus Index Return (“TSR”) non-GAAP the and growth targeted is at WACCR the method assuming Carlo Monte the determined using value multiplying the PSUs valuation of the for the awarded. key assumptions The units of target number achieved by the gate is Operating income and Shareholders Annual Report to Logitech’s included in Statements Consolidated Financial the to Note 6 presented in are All PSU vesting conditions shares subject to the are unvested. The actual Annual fiscal year 2018. Report on Form 10-K for of shares that under will the PSU grants will vest not be known until May 15, 2020. amount, if any, 1.0301Dollars. exchange March 1 Swiss Franc to U.S. 2018) rate of Name Type oseph Sullivan Bracken Darrell RSU 04/15/17 03/28/17 Vincent PiletteVincent RSU 04/15/17 03/28/17 Marcel Stolk L. J Guerrino De Luca RSU 04/15/17 03/28/17 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation (1)each potential with respect to applicable performance period for the fiscal year amounts in these columns reflect payouts The (2)2018 year the fiscal each applicable period respect to for performance with reflect actual payouts column amounts in this The (3)four years, on each yearly anniversary rate of 25% per year over of the grant date. RSUs vest at a (4)this column Amounts in officer. named executive the value realized by actual economic the represent not do amounts These (5)the 12-month average (April of stock awards were converted to using 2017 date fair value bonus amounts and grant Stolk’s Mr. Grants of Plan-Based Awards Table for Fiscal Year 2018 Year Fiscal for Table Awards of Plan-Based Grants The following table sets forth certain information regarding grants of plan-based awards to each of our executive officers during fiscal

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 77 77 Outstanding Equity Awards at Fiscal Year 2018 Year-End Table Year-End 2018 Year at Fiscal Awards Outstanding Equity Narrative Disclosure to Summary Compensation Table and Grants of and Table Compensation to Summary Disclosure Narrative Table Awards Plan-Based Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation The following table provides information regarding outstanding equity awards for each of our named executive officers as officers executive named our of each for awards equity outstanding regarding information provides table following The This table includes unexercised and of March unvested 31, stock 2018.options, unexercised and unvested performance stock options, unvested and PSUs, unvested RSUs. the of anniversaries four first the of each Options on year per 25% of rate a Stock at vest RSUs and options specified, otherwise Performance Unless and PPOs or Options Priced Premium including options, stock for value market The date. grant Select Global Nasdaq the on shares Logitech of price closing the between difference the taking by calculated is PSOs, or multiplying and price, exercise option the and 2018) 31, March on ($36.73 year fiscal the of day trading last the on Market it by the number of The outstanding market options. value for stock awards (RSUs and PSUs at target) is determined by multiplying the number of shares subject to such awards by the closing price of Logitech shares on the Nasdaq Global Select Market on the last trading year. day of the fiscal Employment Agreements and Offer Letters and Agreements Employment employment The officers. executive named our of each with letters offer or agreements employment into entered have We sole the to subject is officer executive named the of compensation the that provide generally letters offer and agreements discretion of The the compensation Compensation Committee earned by or the the Board named of executive Directors. letters. in fiscal year 2018 agreements result of any terms of their employment was not the or offer officers Conditions Vesting Performance-Based Please refer to “Compensation to refer please addition, In 2018. year fiscal during Plan Bonus the to applicable measures performance Discussion the of discussion discussion a and for Analysis—Compensation Compensation” Incentive Elements—Annual Elements—Long-Term Analysis—Compensation and Cash Discussion “Compensation Bonuses” for a during fiscal year 2018. of performance measures the PSUs granted under to executive officers

(4) ($) Value

Grant 192,463 288,695 Date Fair — 3,042,567 (3) 6,450 9,675 of (#) Stock Shares Awards Awards or Units Number of Stock All Other (#) 193,486 Maximum (#) Target Awards 0 9,675 19,350 — 304,279 0 96,743 0 48,372 96,744 — 1,521,299 0 21,284 42,5680 14,512 — 29,024 669,382 — 456,402 —— — — — —— — — — —— — — — —— — — — —— — — — Estimated Future Payouts (#) Under Equity Incentive Plan Threshold (2) $ Actual (1) ($) Maximum 76 —— — — — — — — — 64,496 1,924,512 —— — — — — — — — 32,248 962,256 —— — — — — — — — 14,189 418,281 —— — —— — — — — —— — — — — —— — “Compensation Discussion and Analysis.” and Discussion “Compensation refer to the ($) Target Equity Incentive Plan Awards Equity Incentive Plan Estimated Future Payouts Under Non- Estimated Future Payouts — — — — — — — — — — ($) Threshold Date Approval information, please more information, n/a n/a 187,500 500,000 1,000,000 575,000 n/a n/a 433,594 1,156,250 2,312,500 1,329,688 n/a n/a 243,750 650,000 1,300,000 910,000 n/a n/a n/a 166,634 n/a 444,356 888,713 133,594 444,356 356,250 712,500 356,250 Grant DD/YY) 04/15/17 03/28/17 Date (MM/ PSUFY18 Bonus 04/15/17 03/28/17 PSUFY18 Bonus 04/15/17 03/28/17 PSUFY18 Bonus 04/15/17 03/28/17 RSU 04/15/17 03/28/17 PSUFY18 Bonus 04/15/17 03/28/17 PSUFY18 Bonus 04/15/17 03/28/17 RSU year 2018. For (5) 2018 bonus programs under the Bonus Plan described in “Compensation Discussion and Analysis” above. 2018 bonus programs under the Bonus Plan described in “Compensation Discussion and Compensation" the "Non-Equity Incentive Plan reflected in are amounts Plan. The actual payout bonus programs under the Bonus 2018. Year for Fiscal column of the "Summary Compensation Table does Codification (ASC) 718 but Accounting Standards RSUs calculated accordance with value in fair of date grant represent the 2018 are based on fiscal year granted in forfeitures. Performance-based (“PSUs”) RSUs reduction for estimated include any not Shareholder and Total Constant Currency Revenue Growth Rate ("WACCR") Average Operating income, Weighted non-GAAP the performance period and that number is calculated by over the Nasdaq-100 TSR benchmark versus Index Return (“TSR”) non-GAAP the and growth targeted is at WACCR the method assuming Carlo Monte the determined using value multiplying the PSUs the valuation of for the awarded. key assumptions The units of target number achieved by the gate is Operating income and Shareholders Annual Report to Logitech’s included in Statements Consolidated Financial the to Note 6 presented in are All PSU vesting conditions shares subject to the are unvested. The actual Annual fiscal year 2018. Report on Form 10-K for of shares that under will the PSU grants will vest not be known until May 15, 2020. amount, if any, 1.0301Dollars. exchange March 1 Swiss Franc to U.S. 2018) rate of Name Type oseph Sullivan Bracken Darrell RSU 04/15/17 03/28/17 Vincent PiletteVincent RSU 04/15/17 03/28/17 Marcel Stolk L. J Guerrino De Luca RSU 04/15/17 03/28/17 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation (1)each potential with respect to applicable performance period for the fiscal year amounts in these columns reflect payouts The (2)2018 year the fiscal each applicable period respect to for performance with reflect actual payouts column amounts in this The (3)four years, on each yearly anniversary rate of 25% per year over of the grant date. RSUs vest at a (4)this column Amounts in officer. named executive the value realized by actual economic the represent not do amounts These (5)the 12-month average (April of stock awards were converted to using date fair value 2017 bonus amounts and grant Stolk’s Mr. Grants of Plan-Based Awards Table for Fiscal Year 2018 Year Fiscal for Table Awards of Plan-Based Grants The following table sets forth certain information regarding grants of plan-based awards to each of our executive officers during fiscal — — — — (1) (2)(3) 1,754,328 Value ($) ($) Vesting Vesting Benefit Realized on Accumulated Present Value of Present Value

Stock Awards Stock 51,375 1,606,760 69,158 2,160,933 512,056101,940101,430 16,001,435 3,486,109 3,305,169 (#) 7 (#) Shares Vesting n/a n/a n/a n/a Number of Service Acquired on of Credited Number of Years Number of — — — 592,241 129,835 (1)(3) Value Value ($) Exercise Realized on 79 — — — Option Award Option 30,000 50,000 (#) Shares Exercise Number of Plan Name n/a n/a n/a n/a Logitech Employee Pension Fund Acquired on other executive officers are beneficiaries under any pension plan benefits maintained by Logitech. other executive officers which was confirmed by the Compensation Committee subsequently in April 2018. which was confirmed by the Compensation subsequently Committee in performance goal was achieved as of March 31, 2016 and confirmed by the Compensation Committee in May 2016. One-third of performance goal was achieved as of March 31, 2017 and confirmed by the Compensation Committee in May 2017. One-third of which the of exercise, multiplied the by number of shares for option was exercised. amount, based on Logitech’s TSR performance versus the Nasdaq-100 index TSR benchmark from April 1, 2015 to March 31, 2018, 31, March to 2015 1, April from benchmark TSR index Nasdaq-100 the versus performance TSR Logitech’s on based amount, rate of 1 Swiss Franc to 1.0456 U.S. Dollars at the end year 2018. of fiscal the award vested on April 15, 2017 and the remaining one-third of the award vested on April 15, 2018. April 15, 2017 and the remaining of the one-third vested on award the award vested on April 15, 2019. April 15, 2018 and the remaining of the one-third will on award vest the award vested on awards. average (April March to 2018) exchange rate of 1 2017 Dollars. Swiss to 1.0301 Franc U.S. Name Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Pension Benefits Table for Fiscal Year 2018 Year for Fiscal Table Pension Benefits Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation 2018 Year Fiscal for Table and Stock Vested Option Exercises Name Guerrino De Luca L. Joseph Sullivan Bracken Darrell Pilette Vincent Marcel Stolk Marcel Stolk has been a participant in Logitech’s Swiss Pension employees. No plan, which is a benefit offered to all eligible Swiss The following table provides the number of shares acquired and the value realized upon exercise of stock options and the and options stock of exercise upon realized value the and acquired shares of number the provides table following The RSUs vesting of PSUs and fiscal year 2018during by each of our named executive officers. (3) One-third of the PSUs based on non-GAAP operating margin granted in April 2015 vested subsequently in May 2016 as the (4) One-third of the PSUs based on non-GAAP operating margin granted in April 2016 vested subsequently in May 2017 as the (2) Based on the closing trading price of Logitech shares on the Nasdaq Global Select Market on the date of vesting of the underlying (1) The present value of the accumulated was benefit Stolk’s converted for from Mr. Swiss Francs to U.S. Dollars using the exchange (2) target that of 150% was shares Logitech into 2016 year fiscal in granted TSR relative on based PSUs the of conversion actual The (1) date the on shares Logitech of value market fair the and price exercise option the between difference the equals realized value The (3) fiscal year 2018 were converted using the 12-month Stolk’s The value realized on exercise and on vesting in Swiss Francs for Mr. — — — — — — — — — — — — — — — — — — — — (1) 493,284 411,045 616,587 652,508 412,111 343,426 355,363 781,761 533,026 3,090,756 1,373,702 4,110,418 2,024,007 1,370,139 3,553,370 2,050,856 1,438,421 1,776,704 6,544,552 1,109,834 10,754,544 Equity Awards: or Other Have Not Market or Rights That Vested (#) Vested of Unearned Payout Value Payout Value Shares, Units Incentive Plan Incentive Plan (2) (2) (2) (2) (2) (2) — — — — — — — — — — — — — — — — — — — — 9,350 9,675 111,909 292,800 178,180 Equity or Other Have Not Incentive Unearned Vested (#) Vested Number of Rights That Plan Awards: Plan Shares, Units — — — — — Stock Awards Stock 47,749 456,701 915,789 37,400 205,504434,993 16,787 17,765 164,403 274,740 11,220 137,003 228,938 2,060,480 84,148 1,370,139 1,340,316 30,216 Market Units of Value of Value 12,868,759 Have Not Shares or Vested ($) Vested Stock That (4) (3) (4) (3) (4) (3) (4) (3) (4) (3) — — — — — Not Number or Units of Stock of Shares Vested (#) Vested That Have — 33,710 1,238,168 —— 3,268 7,460 120,034 274,006 11,191 — 74,606 2,740,278 — 84,148 3,090,756 — 2,972 109,162 — 1,300 — 24,933 — 7,480 — 37,399 1,373,665 —— 9,350 6,450 343,426 236,909 — 37,303 —— 37,302 12,434 1,370,102 37,303 — 56,098 — 64,496 2,368,938 96,743 — 27,552 1,011,985 55,105 — 4,476 — 11,843 — 3,730 — 11,190 411,009 — 8,952 328,807 13,430 — 66,921 2,458,007 55,836 — 46,075 1,692,335 39,162 — 5,595 — 14,189 521,162 21,284 — 9,675 355,363 14,512 —— 171,868 6,339 6,312,711 — 232,831 17,765 652,508 — 11,220 412,111 — 32,248 1,184,469 48,372 — 6,233 of 6,660,000 3,757,000 8,268,000 9,072,000 3,757,000 36,491 38,350,000 350,361 14,350,000 Options ($) 78 Unexercised Market Value 78 — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Date Option Exercise (MM/DD/YY) Option Awards Option 7.83 01/04/23 8.03 04/16/22 20.08 04/16/22 16.06 04/16/22 14.05 04/16/22 Share Option Price ($) Exercise —— ———— —— —— —— —— —— —— ———— —— ———— ———— —— —— —— —— —— —— —— — — —— —— —— — —— —— —— —— —— (#) Options Securities Number of Underlying Exercisable Unexercised Total 130,000 Total 1,700,000 Total Total Total YY) 04/15/14 04/15/14 04/15/15 04/16/1204/15/15 400,000 04/15/16 05/14/14 04/15/16 04/15/16 04/15/16 04/15/16 04/15/17 04/16/12 400,000 04/15/15 04/15/15 04/15/15 04/15/16 04/15/17 04/15/15 04/15/16 04/15/15 04/15/15 04/15/15 04/15/15 04/15/17 04/15/17 04/15/14 04/15/16 04/15/16 04/16/12 400,000 04/15/17 04/15/16 (MM/DD/ Grant Date Name PSUs granted in fiscal year 2018 into Logitech shares following the conclusion of the 3-year performance period will range between range will period performance 3-year the of conclusion the following shares Logitech into 2018 year fiscal in granted PSUs Growth Revenue Currency Constant Average Weighted of achievement the on upon depending amount, target that of 200% and 0% Rate ("WACCR"), non-GAAP operating income, and TSR versus the Nasdaq-100 Index TSR benchmark over the performance the conclusion of the 3-year performance period will range between 50% and 150% of that target amount, depending upon Logitech’s Logitech’s upon depending amount, target that of 150% and 50% between range will period performance 3-year the of conclusion the the of any, if conversion, actual The period. performance the over benchmark TSR index Nasdaq-100 the versus performance TSR period. Guerrino De Luca 01/04/13 130,000 Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Vincent PiletteVincent 03/25/15 L. Joseph Sullivan 04/15/14 Marcel Stolk Bracken Darrell 04/16/12 500,000 (1) The actual conversion, if any, of the PSUs based on TSR granted in each of fiscal years 2016 and 2017 into Logitech shares following shares Logitech into 2017 and 2016 years fiscal of each in granted TSR on based PSUs (1) the of any, if conversion, actual The

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement — — — — (1) (2)(3) 1,754,328 Value ($) ($) Vesting Vesting Benefit Realized on Accumulated Present Value of Present Value

Stock Awards Stock 69,158 2,160,933 51,375 1,606,760 512,056101,940101,430 16,001,435 3,486,109 3,305,169 (#) 7 (#) Shares Vesting n/a n/a n/a n/a Number of Service Acquired on of Credited Number of Years Number of — — — 129,835 592,241 (1)(3) Value Value ($) Exercise Realized on 79 79 — — — Option Award Option 50,000 30,000 (#) Shares Exercise Number of Plan Name n/a n/a n/a Logitech Employee Pension Fund n/a Acquired on

of exercise, multiplied by the number of shares for which the of exercise, multiplied the by number of shares for option was exercised. which was confirmed by the Compensation Committee subsequently in April 2018. which was confirmed by the Compensation subsequently Committee in performance goal was achieved as of March 31, 2016 and confirmed by the Compensation Committee in May 2016. One-third of performance goal was achieved as of March 31, 2017 and confirmed by the Compensation Committee in May 2017. One-third of amount, based on Logitech’s TSR performance versus the Nasdaq-100 index TSR benchmark from April 1, 2015 to March 31, 2018, 31, March to 2015 1, April from benchmark TSR index Nasdaq-100 the versus performance TSR Logitech’s on based amount, rate of 1 Swiss Franc to 1.0456 U.S. Dollars at the end year 2018. of fiscal awards. average (April March to 2018) exchange rate of 1 2017 Dollars. Swiss to 1.0301 Franc U.S. the award vested on April 15, 2017 and the remaining one-third of the award vested on April 15, 2018. April 15, 2017 and the remaining of the one-third vested on award the award vested on April 15, 2019. April 15, 2018 and the remaining of the one-third will on award vest the award vested on

Vincent Pilette Vincent Marcel Stolk L. Joseph Sullivan Bracken Darrell Guerrino De Luca Name Pension Benefits Table for Fiscal Year 2018 Year for Fiscal Table Pension Benefits Option Exercises and Stock Vested Table for Fiscal Year 2018 Year Fiscal for Table and Stock Vested Option Exercises Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Name Guerrino De Luca Bracken Darrell Vincent Pilette Vincent Marcel Stolk L. Joseph Sullivan Marcel Stolk has been a participant in Logitech’s Swiss Pension are beneficiaries under any pension plan benefits maintained by Logitech. employees. No other executive officers plan, which is a benefit offered to all eligible Swiss The following table provides the number of shares acquired and the value realized upon exercise of stock options and the and options stock of exercise upon realized value the and acquired shares of number the provides table following The RSUs vesting of PSUs and fiscal year 2018during by each of our named executive officers. (3) One-third of the PSUs based on non-GAAP operating margin granted in April 2015 vested subsequently in May 2016 as the (4) One-third of the PSUs based on non-GAAP operating margin granted in April 2016 vested subsequently in May 2017 as the (2) Based on the closing trading price of Logitech shares on the Nasdaq Global Select Market on the date of vesting of the underlying (1) The present value of the accumulated was benefit Stolk’s converted for from Mr. Swiss Francs to U.S. Dollars using the exchange (1) date the on shares Logitech of value market fair the and price exercise option the between difference the equals realized value The (3) fiscal year 2018 were converted using the 12-month Stolk’s The value realized on exercise and on vesting in Swiss Francs for Mr. (2) target that of 150% was shares Logitech into 2016 year fiscal in granted TSR relative on based PSUs the of conversion actual The

—

— —

—

— —

—

— —

—

— —

— (1)

616,587 493,284 411,045

652,508 412,111

343,426 355,363 781,761 533,026 3,090,756 1,373,702 2,024,007 1,370,139 4,110,418 3,553,370 6,544,552 1,776,704 2,050,856 1,438,421 1,109,834 10,754,544 Equity Awards: or Other Have Not Market or Rights That Vested (#) Vested of Unearned Payout Value Payout Value Shares, Units Incentive Plan Incentive Plan (2) (2) (2) (2) (2) (2) — — — — — — — — — — — — — — — — — — — — 9,350 9,675 111,909 292,800 178,180 Equity or Other Have Not Incentive Unearned Vested (#) Vested Number of Rights That Plan Awards: Plan Shares, Units — — — — — Stock Awards Stock 47,749 164,403 274,740 11,220 915,789 37,400 205,504434,993 16,787 17,765 456,701 137,003 228,938 1,370,139 2,060,480 84,148 1,340,316 30,216 Market Units of Value of Value 12,868,759 Have Not Shares or Vested ($) Vested Stock That (3) (4) (4) (3) (4) (3) (4) (3) (3) (4) — — — — — Not Number or Units of Stock of Shares Vested (#) Vested That Have — 33,710 1,238,168 — 74,606 2,740,278 —— 3,268 7,460 120,034 274,006 11,191 — 84,148 3,090,756 — 37,399 1,373,665 — 2,972 109,162 —— 9,350 6,450 343,426 236,909 — 24,933 — 1,300 — 7,480 — 37,303 —— 37,302 12,434 1,370,102 37,303 — 64,496— 27,552 2,368,938 1,011,985 96,743 55,105 — 56,098 —— 11,190 11,843 411,009 — 4,476 — 3,730 — 171,868 6,312,711 — 32,248—— 1,184,469 6,339 5,595 232,831 48,372 — 66,921 2,458,007 55,836 — 46,075 1,692,335 39,162 — 6,233 —— 17,765 14,189 652,508 — 521,162 8,952— 21,284 — 328,807 11,220 9,675 412,111 13,430 355,363 14,512 of 6,660,000 8,268,000 3,757,000 9,072,000 3,757,000 36,491 38,350,000 350,361 14,350,000 Options ($) 78 Unexercised Market Value — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — — Date Option Exercise (MM/DD/YY) — Option Awards Option 7.83 01/04/23 8.03 04/16/22 20.08 04/16/22 16.06 04/16/22 14.05 04/16/22 Share Option Price ($) Exercise —— —— ———— —— —— ———— —— —— —— —— ———— —— —— —— ———— —— —— — —————— — — — —— ———— —— ———— (#) Options Securities Number of Underlying Exercisable Unexercised Total 130,000 Total 1,700,000 Total Total Total YY) 04/15/14 04/16/1204/15/15 400,000 04/15/14 04/15/15 04/15/16 04/16/12 400,000 04/15/16 05/14/14 04/15/16 04/15/16 04/15/17 04/15/16 04/15/15 04/15/15 04/15/15 04/15/17 04/15/16 04/15/15 04/15/16 04/15/15 04/15/15 04/15/14 04/16/12 400,000 04/15/17 04/15/15 04/15/16 04/15/16 04/15/16 04/15/17 04/15/15 04/15/17 (MM/DD/ Grant Date Name PSUs granted in fiscal year 2018 into Logitech shares following the conclusion of the 3-year performance period will range between range will period performance 3-year the of conclusion the following shares Logitech into 2018 year fiscal in granted PSUs Growth Revenue Currency Constant Average Weighted of achievement the on upon depending amount, target that of 200% and 0% Rate ("WACCR"), non-GAAP operating income, and TSR versus the Nasdaq-100 Index TSR benchmark over the performance the conclusion of the 3-year performance period will range between 50% and 150% of that target amount, depending upon Logitech’s Logitech’s upon depending amount, target that of 150% and 50% between range will period performance 3-year the of conclusion the the of any, if conversion, actual The period. performance the over benchmark TSR index Nasdaq-100 the versus performance TSR period. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Guerrino De Luca 01/04/13 130,000 Vincent PiletteVincent 03/25/15 Marcel Stolk Bracken Darrell 04/16/12 500,000 L. Joseph Sullivan 04/15/14 (1) The actual conversion, if any, of the PSUs based on TSR granted in each of fiscal years 2016 and 2017 into Logitech shares following shares Logitech into 2017 and 2016 years fiscal of each in granted TSR on based PSUs (1) the of any, if conversion, actual The ($) (1) 1,956,883 3,382,888 2,432,261 19,034,386 11,403,930 Equity Value of Value Accelerated Awards 81 AFTER CHANGE IN CONTROL POTENTIAL PAYMENTS UPON INVOLUNTARY TERMINATION TERMINATION INVOLUNTARY UPON PAYMENTS POTENTIAL agreement. For the PSUs granted on March 25, 2015 and April 15, 2015 based on relative TSR, as of March 31, 2018 the performance the 2018 31, March of as TSR, relative on based 2015 15, April and 2015 25, March on granted PSUs the For agreement. to the shares subject to such PSUs. For the PSUs granted April 15, 2015 and April 15, 2016 based on Non-GAAP Operating Margin, Operating Non-GAAP on based 2016 15, condition April was at a level which would and have produced a payout 2015 percentage of 150%; therefore, 15, 150% of such value was April attributed granted PSUs the For PSUs. such to subject shares the to held by the Named Executive Officer as of March 31, 2018 that are subject to acceleration according to the terms of an equity award equity an of terms the to according acceleration to subject are that 2018 31, March of as Officer Executive Named the by held the performance conditions were achieved as of March 31, 2018; therefore, 100% of such value was attributed to the shares subject shares the to attributed was value such of 100% therefore, 2018; 31, March of as achieved were conditions performance the GAAP Operating Margin metric will Operating Margin metric accelerate the performance-based as vesting conditions have been attained. GAAP to such PSUs. Name Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Guerrino De Luca Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Change of Control employment of termination involuntary an to subject is officer The PSU executive and RSU award named agreements for named the executive officers provide if for the acceleration agreements of vesting of award the equity the to subject awards within 12 months after a change of control because his or her employment is terminated without cause or the executive resigns for good event of such an involuntary reason. In the termination following a change of control: • All shares subject will vest; to the RSUs (1) Represents, as of March 31, 2018, the aggregate market value of shares underlying all unvested RSUs and PSUs, in each case • The time-based vesting of PSU awards granted in fiscal year 2016 and 2017 based on the achievement of a non- Death and Disability PSUs, For vest. will RSU the to subject shares all prorated disability, a to due receives service of estate separation a employee’s has or the dies officer or executive an employee If the period, performance the during occurs service of separation the if shares number of the target on the length of service based during the performance period. Retirement For grants awarded in April 2017 or later, if an executive officer has service a of separation if separation PSUs, For vest. of to continue will service RSUs the to after subject shares all applicable, meeting as requirement, service the age and occurs during the performance period, the award continues to vest and the employee receives a prorated number of the actual earned shares at the regular vesting date based on the length of service during the performance period. The age is generally with at least ten years service. age 55 of and service requirement for the named executive officers Control or Change in Termination Potential Payments Upon of Tables The table below estimates the amount of compensation that would be terminations paid the in of the each event that of assuming an control, involuntary in termination change of a after cause without Officer Executive Named a of employment change or employment of termination to related was effective as payment of March 31, 2018, cash subject to the terms any of the PSU and RSU have award agreements with each not of the listed do we 2015, December of As officers. executive of control in compliance with the Minder Ordinance. As of March 31, 2018, no compensation amounts were payable to any in Named the event Executive Officer of a mutual agreement terminate to employment, whether or otherwise. upon retirement business The price used for determining last the value of accelerated the vesting of outstanding and unvested 2018, equity awards in the 31, tables March on Market Select Global Nasdaq the on shares Logitech’s of price closing the was below of $36.73 per share. day of the fiscal year, — — — — ($) Aggregate Balance at Last Fiscal Year End Year Fiscal — — — — — 1,582,656 ($) Aggregate Withdrawals/ Distributions — — — — (2) ($) Year Aggregate Last Fiscal Earnings in — — — — — 149,523 80 ($) Year 80 Logitech in Last Fiscal Contributions — — — — (1) 341,850 ($) Year Executive in Last Fiscal Contributions column for fiscal year 2018. All contributions were made under the Logitech Inc. Deferred Compensation Plan. column for 2018. fiscal year preferential market. or above under certain circumstances described below. provisions non-competition to subject becomes or period notice nine-month or 12 a receive to entitled is them of each if we terminate his employment or if he resigns. Payments upon Termination or Change in Control Termination Payments upon Narrative Disclosure to Non-Qualified Deferred Compensation Table Non-Qualified Deferred Compensation Narrative Disclosure to Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Name Guerrino De Luca Bracken Darrell Vincent Pilette Vincent Marcel Stolk L. Joseph Sullivan (2) These amounts are not included in the "Summary Compensation Table for Fiscal Year 2018" because plan earnings were not We We have entered into agreements that provide for payments under certain circumstances in the event of termination of These agreements include: employment or service of our executive officers. agreements award the to subject shares the of • vesting accelerated the for provide that agreements award RSU and PSU • which under Stolk, Marcel and Sullivan Joseph Pilette, Vincent Darrell, Bracken with agreements other or Employment named a to compensation of payment the for arrangements or agreements no are there above, agreements the than Other Directors in event his of involuntary termination the with or without cause. executive officer of Board the of member non-executive any to consideration any of payment for providing agreements no are There upon termination of his or her service with the Company. Agreements Severance Change of Control agreements These had executed a change of control severance agreement with Logitech. our executive officers Each of have been terminated in compliance with the Minder Ordinance. Agreements Award PSU and RSU The treatment of equity upon termination of employment depends on the reason for termination and the age employee’s and length of service at termination. Please refer Analysis—Compensation to Elements—Deferred “Compensation Compensation Discussion Plan” and for a discussion of the Logitech Inc. U.S. Deferred Compensation Plan, effective January 1, 2009, as amended and restated January 1, 2017. effective (1) Amounts are included in the "Summary Compensation Table for Fiscal Year 2018" in the “Non-equity Incentive Plan Compensation” Plan Incentive “Non-equity the in 2018" Year Fiscal for (1) Table Compensation "Summary the in included are Amounts Non-qualified Deferred Compensation Table for Fiscal Year 2018 Year for Fiscal Table Compensation Deferred Non-qualified The following table sets forth information regarding the participation by our named executive in officers the Logitech Inc. Compensation U.S. Deferred Plan during 2018fiscal year at fiscal year-end. and

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement ($) (1) 1,956,883 3,382,888 2,432,261 19,034,386 11,403,930 Equity Value of Value Accelerated Awards 81 81 AFTER CHANGE IN CONTROL POTENTIAL PAYMENTS UPON INVOLUNTARY TERMINATION TERMINATION UPON INVOLUNTARY PAYMENTS POTENTIAL

agreement. For the PSUs granted on March 25, 2015 and April 15, 2015 based on relative TSR, as of March 31, 2018 the performance performance the 2018 31, March of as TSR, relative on based 2015 15, April and 2015 25, March on granted PSUs the For agreement. to the shares subject to such PSUs. For the PSUs granted April 15, 2015 and April 15, 2016 based on Non-GAAP Operating Margin, Operating Non-GAAP on based 2016 15, condition April was at a level which would and have produced a payout 2015 percentage of 150%; therefore, 15, 150% of such value was April attributed granted PSUs the For PSUs. such to subject shares the to held by the Named Executive Officer as of March 31, 2018 that are subject to acceleration according to the terms of an equity award equity an of terms the to according acceleration to subject are that 2018 31, March of as Officer Executive Named the by held the performance conditions were achieved as of March 31, 2018; therefore, 100% of such value was attributed to the shares subject shares the to attributed was value such of 100% therefore, 2018; 31, March of as achieved were conditions performance the GAAP Operating Margin metric will Operating Margin metric accelerate the performance-based as vesting conditions have been attained. GAAP to such PSUs. Name Guerrino De Luca Pilette Vincent Marcel Stolk Bracken Darrell L. Joseph Sullivan Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Change of Control employment of termination involuntary an to subject is officer The PSU executive and RSU award named agreements for named the executive officers provide if for the acceleration agreements of vesting of award the equity the to subject awards within 12 months after a change of control because his or her employment is terminated without cause or the executive resigns for good event of such an involuntary reason. In the termination following a change of control: • All shares subject will vest; to the RSUs (1) Represents, as of March 31, 2018, the aggregate market value of shares underlying all unvested RSUs and PSUs, in each case Death and Disability PSUs, For vest. will RSU the to subject shares all prorated disability, a to due receives service of estate separation a employee’s has or the dies officer or executive an employee If the period, performance the during occurs service of separation the if shares number of the target on the length of service based during the performance period. Retirement For grants awarded in April 2017 or later, if an executive officer has service a of separation if separation PSUs, For vest. of to continue will service RSUs the to after subject shares all applicable, meeting as requirement, service the age and occurs during the performance period, the award continues to vest and the employee receives a prorated number of the actual earned shares at the regular vesting date based on the length of service during the performance period. The age is generally with at least ten years service. age 55 of and service requirement for the named executive officers Control or Change in Termination Potential Payments Upon of Tables The table below estimates the amount of compensation that would be terminations paid the in of the each event that of assuming an control, involuntary in termination change of a after cause without Officer Executive Named a of employment change or employment of termination to related was effective as payment of March 31, 2018, cash subject to the terms any of the PSU and RSU have award agreements with each not of the listed do we 2015, December of As officers. executive of control in compliance with the Minder Ordinance. As of March 31, 2018, no compensation amounts were payable to any in Named the event Executive Officer of a mutual agreement terminate to employment, whether or otherwise. upon retirement business The price used for determining last the value of accelerated the vesting of outstanding and unvested 2018, equity awards in the 31, tables March on Market Select Global Nasdaq the on shares Logitech’s of price closing the was below of $36.73 per share. day of the fiscal year, • The time-based vesting of PSU awards granted in fiscal year 2016 and 2017 based on the achievement of a non-

—

— — ($) Aggregate Balance at Last Fiscal Year End Year Fiscal — — — — — 1,582,656 ($) Aggregate Withdrawals/ Distributions — — — — (2) ($) Year Aggregate Last Fiscal Earnings in — — — — — 149,523 80 ($) Year Logitech in Last Fiscal Contributions — — — — (1) the Minder Ordinance. 341,850 ($) Year Executive in Last Fiscal Contributions column for fiscal year 2018. All contributions were made under the Logitech Inc. Deferred Compensation Plan. column for 2018. fiscal year preferential market. or above under certain circumstances described below. provisions non-competition to subject becomes or period notice nine-month or 12 a receive to entitled is them of each if we terminate his employment or if he resigns. Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Table Non-Qualified Deferred Compensation Narrative Disclosure to or Change in Control Termination Payments upon Name Guerrino De Luca Bracken Darrell Vincent Pilette Vincent Marcel Stolk L. Joseph Sullivan (2) These amounts are not included in the "Summary Compensation Table for Fiscal Year 2018" because plan earnings were not PSU and RSU Award Agreements Award PSU and RSU The treatment of equity upon termination of employment depends on the reason for termination and the age employee’s and length of service at termination. Non-qualified Deferred Compensation Table for Fiscal Year 2018 Year for Fiscal Table Compensation Deferred Non-qualified The following table sets forth information regarding the participation by our named executive in officers the Logitech Inc. Compensation U.S. Deferred Plan during 2018fiscal year at fiscal year-end. and Compensation” Plan Incentive “Non-equity the in 2018" Year Fiscal for (1) Table Compensation "Summary the in included are Amounts Please refer Analysis—Compensation to Elements—Deferred “Compensation Compensation Discussion Plan” and for a discussion of the Logitech Inc. U.S. Deferred Compensation Plan, effective January 1, 2009, as amended and restated January 1, 2017. effective We have entered into agreements that provide for payments under certain circumstances in the event of termination of These agreements include: employment or service of our executive officers. agreements award the to subject shares the of • vesting accelerated the for provide that agreements award RSU and PSU • which under Stolk, Marcel and Sullivan Joseph Pilette, Vincent Darrell, Bracken with agreements other or Employment named a to compensation of payment the for arrangements or agreements no are there above, agreements the than Other Directors in event his of involuntary termination the with or without cause. executive officer of Board the of member non-executive any to consideration any of payment for providing agreements no are There upon termination of his or her service with the Company. Agreements Severance Change of Control agreements These had executed a change of control severance agreement with Logitech. our executive officers Each of have been terminated in compliance with

(1) 5,151 61,806 20,602 41,204 41,204 11,331 20,602 15,452 169,967 5,000 60,000 20,000 40,000 40,000 11,000 20,000 15,000 165,000 Amount (CHF) Amount ($) 2006 Stock Incentive Plan. the 2006 Stock 83 such shares are to be issued under ear, which began the middle in of fiscal year 2018. Non-employee directors also ear, Y Board compensation above. respectively. to 1.0301 U.S. Dollars. Reimbursement of reasonable expenses for non-local travel (business class) Reimbursement of reasonable expenses Annual RSU grant An additional annual cash retainer for the lead independent director An additional annual cash retainer for Audit Committee chair Annual retainer for the Committee chair Annual retainer for the Compensation Committee chair Annual retainer for the Nominating Audit Committee members Annual retainer for non-chair Committee members Annual retainer for non-chair Compensation Committee members Annual retainer for non-chair Nominating Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Directors Non-Employee of Compensation Annual cash retainer (1)Franc Swiss of 1 2018) exchange rate to March 12-month average (April 2017 the were converted using in Swiss Francs Amounts price on of withholdings the market fees in shares, net at Non-employee elect to receive their Board Board members may the date of the Annual General Meeting. Any Logitech during fiscal year 2018 or paid by to continuing following total compensation earned The table summarizes the as of March 31, 2018. Because the table is based on members of the Board of Directors who were not executive officers Logitech’s dates of compensation is measured between the Board purposes of and annual service for fiscal year, Logitech’s necessarily align with the table do not the amounts in the year, usually in September each Annual General Meetings, held description of Bracken Luca and Guerrino De held by stock awards option and the and Information regarding compensation paid to as of fiscal year-end 2018,are presented Darrell, the members the Board Directors Logitech executive that are of of officers Year- 2018 Year at Fiscal Awards 2018" and the "Outstanding Equity Year for Fiscal Table in the "Summary Compensation End Table", non-employee directors, was determined by the Compensation Committee, consisting entirely of independent independent directors, entirely of consisting Committee, Compensation the by determined non-employee was directors, to the full Board for approval. and recommended The general policy is that compensation for non-employee should directors cash consist of a mix of and equity-based compensation. fiscal year 2018, the Compensation assist For to Committee in its annual review director of compensation, Compensia provided a written analysis of director pay practices and compensation data compiled the annual from reports of companies and proxy statements within our compensation peer group. year 2018,cash compensation For fiscal non-employee of directors consists solely of annual retainers based Board on historically While we meetings. Board attendance at connection with in days travel and payment for service and committee in paid for travel days connection with Board we discontinued meetings, this component our board of compensation program with our 2017 to 2018 Board effective receive an annual RSU grant based on a fixed market value. During year fiscal 2018, these annual RSU grants were made with a one-year vesting period. on the day of our Annual General Meeting Directors who are Logitech employees do not receive any compensation consists of the following elements: for Year Non-employee director compensation for the 2017 to 2018 Board their service on the Board of Directors. For fiscal year 2018, the compensation year 2018, the compensation For fiscal not Logitech Directors that are of the Board of of the members employees, or 1934. 82 Securities Exchange Act of 82 our employee population. health benefits). 2018". Officer) was $9,592; and Officer) was $7,239,855. Bracken Darrell, Officer our President and Chief Executive the annual total compensation Mr. of annual (other than our Chief Executive of all employees our company median of the total compensation the of Pay Ratio Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation As permitted by SEC rules, to identify our median employee, we selected base pay, which we calculated annual which as base pay, median employee, we selected base SEC rules, to identify our As permitted by pay using a reasonable estimate of the hours worked during fiscal year 2018 for hourly employees and using annual salary levels for our remaining employees, as the compensation measure to be used to compare the compensation of our annualized 2018. We 2017 through January April 1, 31, ten-month period 2018 for the from employees as of January 31, did not include any contractors year 2018. We any permanent employees who commenced work during fiscal for base pay or other non-employee workers in Using this approach, we selected the individual at the median of our employee population, who was a manufacturing then calculated annual total compensation individual for this using the same methodology employee based in China. We 2018". We Year Fiscal for Table our "Summary Compensation in forth as set Officers our Named Executive we use for annual total compensation year for the fiscal March ended was 31, 2018 (excluding $9,592 determined that such individual’s any estimated retirement and annual Darrell’s determined Mr. We Darrell served as our President and Chief Executive Officer. During fiscal year 2018, Mr. Compensation in our "Summary 2018 was $7,239,855,as reported fiscal year ended March 31, total compensation for the for Fiscal Year Table

Based on this information, for fiscal year 2018 the ratio of the annual total compensation of Mr. Darrell to the median of Based on fiscal this information, for 2018 year of the annual the ratio total compensation of Mr. This ratio is a reasonable estimate calculated in a manner the annual total compensation of all employees 755to 1. was under the Regulation S-K 402(u) of consistent with Item For fiscal year 2018:For fiscal

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement

(1) 5,151 61,806 20,602 41,204 41,204 11,331 20,602 15,452 169,967 5,000 20,000 40,000 40,000 11,000 20,000 15,000 60,000 165,000 Amount (CHF) Amount ($) 2006 Stock Incentive Plan. the 2006 Stock 83 83 such shares are to be issued under ear, which began the middle in of fiscal year 2018. Non-employee directors also ear, Y Board compensation above. respectively. to 1.0301 U.S. Dollars. Annual RSU grant An additional annual cash retainer for the lead independent director An additional annual cash retainer for Audit Committee chair Annual retainer for the Committee chair Annual retainer for the Compensation Committee chair Annual retainer for the Nominating Audit Committee members Annual retainer for non-chair Committee members Annual retainer for non-chair Compensation Committee members Annual retainer for non-chair Nominating for non-local travel (business class) Reimbursement of reasonable expenses Annual cash retainer Compensation of Non-Employee Directors Non-Employee of Compensation Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Non-employee Board members may elect to receive their Board fees in shares, net of withholdings at the market price on of withholdings the market fees in shares, net at Non-employee elect to receive their Board Board members may the date of the Annual General Meeting. Any (1)Franc Swiss of 1 2018) exchange rate to March 12-month average (April 2017 the were converted using in Swiss Francs Amounts The following table summarizes the total compensation earned or paid by Logitech during fiscal year 2018 or paid by to continuing following total compensation earned The table summarizes the as of March 31, 2018. Because the table is based on members of the Board of Directors who were not executive officers Logitech’s dates of compensation is measured between the Board purposes of and annual service for fiscal year, Logitech’s necessarily align with the table do not the amounts in the year, usually in September each Annual General Meetings, held description of Information regarding compensation paid to and the option and stock awards held by Guerrino De Luca and Bracken Luca and Guerrino De held by stock awards option and the and Information regarding compensation paid to as of fiscal year-end 2018,are presented Darrell, the members the Board Directors Logitech executive that are of of officers Year- 2018 Year at Fiscal Awards 2018" and the "Outstanding Equity Year for Fiscal Table in the "Summary Compensation End Table", non-employee directors, was determined by the Compensation Committee, consisting entirely of independent independent directors, entirely of consisting Committee, Compensation the by determined non-employee was directors, to the full Board for approval. and recommended The general policy is that compensation for non-employee should directors cash consist of a mix of and equity-based compensation. fiscal year 2018, the Compensation assist For to Committee in its annual review director of compensation, Compensia provided a written analysis of director pay practices and compensation data compiled the annual from reports of companies and proxy statements within our compensation peer group. year 2018,cash compensation For fiscal non-employee of directors solely consists annual of retainers based on Board historically While we meetings. Board attendance at connection with in days travel for and payment service and committee in paid for travel days connection with Board we discontinued meetings, this component our board of compensation program with our 2017 to 2018 Board effective receive an annual RSU grant based on a fixed market value. During year fiscal 2018, these annual RSU grants were made with a one-year vesting period. on the day of our Annual General Meeting Directors who are Logitech employees do not receive any compensation consists of the following elements: for Year Non-employee director compensation for the 2017 to 2018 Board their service on the Board of Directors. For fiscal year 2018, the compensation year 2018, the compensation For fiscal not Logitech Directors that are of the Board of of the members employees, or 1934. 82 Securities Exchange Act of our employee population. health benefits). 2018". Officer) was $9,592; and Officer) annual (other than our Chief Executive of all employees our company median of the total compensation the of was $7,239,855. Bracken Darrell, Officer our President and Chief Executive the annual total compensation Mr. of Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Pay Ratio For fiscal year 2018:For fiscal Darrell to the median of Based on fiscal this information, for 2018 year of the annual the ratio total compensation of Mr. This ratio is a reasonable estimate calculated in a manner the annual total compensation of all employees 755to 1. was under the Regulation S-K 402(u) of consistent with Item we calculated annual which as base pay, median employee, we selected base SEC rules, to identify our As permitted by pay using a reasonable estimate of the hours worked during fiscal year 2018 for hourly employees and using annual salary levels for our remaining employees, as the compensation measure to be used to compare the compensation of our annualized 2018. We 2017 through January April 1, 31, ten-month period 2018 for the from employees as of January 31, did not include any contractors year 2018. We any permanent employees who commenced work during fiscal for base pay or other non-employee workers in Using this approach, we selected the individual at the median of our employee population, who was a manufacturing then calculated annual total compensation individual for this using the same methodology employee based in China. We 2018". We Year Fiscal for Table our "Summary Compensation in forth as set Officers our Named Executive we use for annual total compensation year for the fiscal March ended was 31, 2018 (excluding $9,592 determined that such individual’s any estimated retirement and annual Darrell’s determined Mr. We Darrell served as our President and Chief Executive Officer. During fiscal year 2018, Mr. Compensation in our "Summary 2018 was $7,239,855,as reported fiscal year ended March 31, total compensation for the for Fiscal Year Table ($) Vested Units of Have Not Stock That of Shares or Market Value Stock Awards (1) (#) Vested Units of Have Not Shares or Number of Stock That ($) Market Options Value of Value Unexercised ($) in full on the first anniversary of the grant date. For Share Price / Option Exercise ———— —— —— —— — —— — —— — —— 4,675 — — 4,675 — — 4,675 171,713 — — 4,675 171,713 — — 4,675 171,713 — 4,675 171,713 — 4,675 171,713 — 4,675 171,713 4,675 171,713 4,675 171,713 171,713 171,713 (#) 85 Options Securities Number of Underlying Unexercised Unexercisable YEAR-END Option Awards (#) Options Securities Number of Underlying Exercisable Unexercised 09/12/1709/12/17 — 09/12/1709/12/17 — 09/12/17 — — — 09/12/17 — Grant Date (MM/DD/YY) directors who are not re-elected at the 2018 Annual General Meeting, the shares subject to their stock awards vest stock their shares subject to 2018 Annual General Meeting, the the re-elected at not who are directors

5, 2018, the date of the 2018 Annual General Meeting. 5, 2018, the date of the 2018 Annual General Davis and Ms. Gove, who are not standing for re-election Gove, who are not standing for Davis and Ms. any other at the 2018 Annual General Meeting, and for Unless otherwise indicated, the shares subject to these stock awards vest Ms. non-employee on September OUTSTANDING EQUITY AWARDS FOR NON-EMPLOYEE DIRECTORS AT FISCAL YEAR 2018YEAR FISCAL AT DIRECTORS FOR NON-EMPLOYEE AWARDS EQUITY OUTSTANDING Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Patrick Aebischer Becker Wendy Edouard BugnionSue Gove 09/12/17Sally Davis Didier Hirsch 09/12/17 — Neil Hunt Neela Montgomery — Dimitri PanayotopoulosLung Yeh 09/12/17 09/12/17 — — Name (1) ($) Total (3) ($) Stock Awards 64,811 169,144 233,955 36,05492,279 169,14490,563 169,144 205,198 168,829 261,423 36,05487,559 259,392 90,563 168,829 169,144 168,829 204,883 256,703 259,392 (1)(2) 109,620118,462 169,144113,311 168,829 278,764 168,829 287,291 282,140 ($) in Cash Fees Earned Fees Earned 84 84 (5) (4) (4) NON-EMPLOYEE DIRECTOR COMPENSATION TABLE FOR FISCAL YEAR 2018YEAR FOR FISCAL TABLE COMPENSATION DIRECTOR NON-EMPLOYEE began fiscal in the middle of year 2018. date fair value of stock-related awards granted in fiscal year 718 2018 -- computed Compensation in ASC accordance Topic with -- Stock Compensation, disregarding forfeiture assumptions. The grant date fair value used to calculate the aggregate value for 34.68 per share. or CHF fiscal 2018 $36.11 year was meetings. We discontinued this component of our board compensation program effective with our 2017 to 2018 Board Year, which Year, Board 2018 to 2017 our with effective program compensation board our of component this discontinued We meetings. to 1.0301 U.S. Dollars. Patrick Aebischer Patrick Becker Wendy Name Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Edouard Bugnion Sally Davis Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung (3) grant aggregate the is shown amount the Instead, directors. the by received actually compensation reflect not do shown Amounts (5) Elected to receive his Board fees in shares. (4) Annual General Meeting in September 2017. Becker and Neela Montgomery were directors the first elected as at Wendy (2) Non-employee members of the Board of Directors received CHF 2,500 per day spent traveling to attend Board and committee The following table presents additional information with respect to the equity awards held as of March 31, 2018 by members by 2018 31, March of as held awards equity the to respect with information additional presents table following The as of fiscal year-end. of the Board of Directors who officers were not executive of price closing the by award the to subject shares of number the multiplying by determined is RSUs for value market The Logitech shares on the Nasdaq Global Select Market on the last trading day of the fiscal year. (1) Franc Swiss 1 of rate exchange 2018) March to 2017 (April average 12-month the using converted were Francs Swiss in Amounts

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement ($) Vested Units of Have Not Stock That of Shares or Market Value Stock Awards (1) (#) Vested Units of Have Not Shares or Number of Stock That ($) Market Options Value of Value Unexercised ($) in full on the first anniversary of the grant date. For Share Price / Option Exercise 85 ———— —— —— —— — —— — —— — —— 4,675 — — 4,675 — — 4,675 171,713 — — 4,675 171,713 — — 4,675 171,713 — 4,675 171,713 — 4,675 171,713 — 4,675 171,713 4,675 171,713 4,675 171,713 171,713 171,713 (#) 85 Options Securities Number of Underlying Unexercised Unexercisable YEAR-END Option Awards (#) Options Securities Number of Underlying Exercisable Unexercised 09/12/1709/12/17 — 09/12/1709/12/17 — 09/12/17 — — — 09/12/17 — Grant Date (MM/DD/YY) directors who are not re-elected at the 2018 Annual General Meeting, the shares subject to their stock awards vest awards stock their shares subject to the 2018 Annual General Meeting, the re-elected at not who are directors

5, 2018, the date of the 2018 Annual General Meeting. 5, 2018, the date of the 2018 Annual General

Davis and Ms. Gove, who are not standing for re-election Davis and Ms. Gove, who are not standing and for any other at the 2018 Annual General Meeting,

Unless otherwise indicated, the shares subject to these stock awards vest Ms. non-employee on September OUTSTANDING EQUITY AWARDS FOR NON-EMPLOYEE DIRECTORS AT FISCAL YEAR 2018YEAR FISCAL AT DIRECTORS FOR NON-EMPLOYEE AWARDS EQUITY OUTSTANDING Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Wendy Becker Wendy Edouard BugnionSue Gove Sally Davis Didier Hirsch 09/12/17Neil Hunt Neela Montgomery — Dimitri PanayotopoulosLung Yeh 09/12/17 09/12/17 — — Patrick Aebischer 09/12/17 — Name (1) ($) Total (3) ($) Stock Awards 64,811 169,144 233,955 90,563 168,829 259,392 87,559 169,144 256,703 36,054 169,144 205,198 36,054 168,829 204,883 92,27990,563 169,144 168,829 261,423 259,392 (1)(2) 109,620118,462 169,144113,311 168,829 278,764 168,829 287,291 282,140 ($) in Cash Fees Earned Fees Earned 84 (5) (4) (4) NON-EMPLOYEE DIRECTOR COMPENSATION TABLE FOR FISCAL YEAR 2018YEAR FOR FISCAL TABLE COMPENSATION DIRECTOR NON-EMPLOYEE began fiscal in the middle of year 2018. date fair value of stock-related awards granted in fiscal year 718 2018 -- computed Compensation in ASC accordance Topic with -- Stock Compensation, disregarding forfeiture assumptions. The grant date fair value used to calculate the aggregate value for 34.68 per share. or CHF fiscal 2018 $36.11 year was meetings. We discontinued this component of our board compensation program effective with our 2017 to 2018 Board Year, which Year, Board 2018 to 2017 our with effective program compensation board our of component this discontinued We meetings. to 1.0301 U.S. Dollars. Patrick Aebischer Patrick Becker Wendy Lung Yeh Lung Compensation Report for Fiscal Year 2018 Year Fiscal for Report Compensation Name Edouard Bugnion Sally Davis Sue Gove Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos (3) grant aggregate the is shown amount the Instead, directors. the by received actually compensation reflect not do shown Amounts (5) Elected to receive his Board fees in shares. (4) Annual General Meeting in September 2017. Becker and Neela Montgomery were directors the first elected as at Wendy (2) Non-employee members of the Board of Directors received CHF 2,500 per day spent traveling to attend Board and committee (1) Franc Swiss 1 of rate exchange 2018) March to 2017 (April average 12-month the using converted were Francs Swiss in Amounts members by 2018 31, March of as held awards equity the to respect with information additional presents table following The as of fiscal year-end. of the Board of Directors who officers were not executive of price closing the by award the to subject shares of number the multiplying by determined is RSUs for value market The Logitech shares on the Nasdaq Global Select Market on the last trading day of the fiscal year. 87 **************** Equity Compensation Plan Information Plan Compensation Equity Employee Share Purchase Plans Share Purchase Employee Purchase Logitech maintains two employee share Share purchase plans, one for Employee employees in the United States 2006 and one for employees the named is States United the outside employees for plan The States. United the outside the in worldwide employees for plan The the 2006. June was in Directors of Board the ESPP by approved was and 1996 The ESPP, 2006 or (Non-U.S.), Plan ESPP. 1996 or (U.S.), Plan Purchase Share Employee 1996 the named is States United plan until the adoption of the 2006 in ESPP June 2006. Under both plans, eligible employees may purchase shares with up to 10% of their earnings at the lower of accordance in 85% calculated of year, the one any in fair $25,000 of market value fair value a to limited at are plans the the under Purchases beginning period. offering or the end of each six-month with U.S. tax laws. During each offering period, payroll deductions of employee participants are accumulated under the executed automatically are agreements purchase plans, these in participation continued to Subject plan. purchase share total of at 29 the A million end shares of have each been period. offering reserved for issuance under both the 1996 and a total of 5,908,152 shares As of March 31, 2018, were available under for issuance plans. these 2006 ESPPs. — 16,505,311 16,505,311 Securities (Excluding Under Equity (c) Number of in Column (a)) (#) for Future Issuance Securities Reflected Remaining Available Remaining Compensation Plans (1) $12 $14 $14 and Rights (b) Weighted (b) Weighted Average Exercise Average Options, Warrants Options, Warrants Price of Outstanding Price of Outstanding (2) (3) 86 1,700,000 7,258,800 5,558,800 86 Exercise of Outstanding Issued Upon (a) Number of and Rights (#) Securities to be Options, Warrants issuance under this plan. rules. Share (Non-U.S.) Purchase Plan and 2006 Plan. Stock Incentive Plan Category Equity Compensation Plan Information Plan Compensation Equity Equity Compensation Plans Approved by Security Holders Not Total Equity Compensation Plans Equity Compensation Holders Approved by Security 2012 Stock Inducement Equity Plan 2012 Stock Inducement Equity Plan as serve to employees eligible to granted be may RSUs and options stock Plan, Equity Inducement Stock 2012 the Under under Awards the 2012 Stock Inducement inducement Equity material Plan to enter into employment with the Company. may be conditioned on continued employment, the passage of time or the satisfaction of performance based vesting on Stock individual criteria, 2012 written the employment offer under letters. The issuance 2012 for Stock reserved Inducement Equity was Plan shares has 1,800,000 an expiration of date aggregate of an 2018, 31, March of As 2022. 31, March of March 31, 2018, available As no shares were for issuance under this plan. Inducement Equity Plan. 2006 Stock Incentive Plan non-employee and employees eligible to grant the for provides Plan Incentive Stock 2006 S.A. International Logitech The members of the Board of Directors of stock options, stock appreciation rights, restricted stock, and restricted stock units. As of March 31, 2018, Logitech has granted stock options (including PSOs), RSUs, Incentive Plan and has made no grants of restricted shares or stock appreciation rights. Stock options granted under the continued and on PSUs conditioned under the be 2006 may Stock Plan less not prices Incentive exercise at issued be Stock will and years ten 2006 exceeding not terms have the will generally Plan Incentive under Stock 2006 Awards grant. of date the on value market fair the than aggregate an 2018, 31, March of As criteria. vesting performance of satisfaction the or time, of passage the employment, of 30.6 million shares is reserved for issuance under the 2006 Stock Incentive 10,597,159 shares were available for Plan. As of March 31, 2018, a total of (1) The weighted exercise price average is calculated solely on outstanding based options. (2) Employee 2006 (U.S.), Plan Purchase Share Employee 1996 our under outstanding shares acquire to rights and options Includes Nasdaq the under adopted Plan Equity Inducement Stock 2012 our (3) under outstanding shares acquire to rights and options Includes The following table summarizes the shares that may be issued upon the exercise of options (including PSOs and PPOs), PPOs), and PSOs (including options of exercise the upon issued be may that shares the summarizes table following The include plans These 2018. 31, March of as plans compensation equity employee our under rights other and PSUs, RSUs, the 1996 Employee Share Purchase Plan (U.S.) and 2006 Employee Share Plan and 2006 Stock Incentive “ESPPs”), Equity 2012 Stock Inducement Plan. Purchase Plan (Non-U.S.) (together, the

2018 Annual General Meeting Invitation, Proxy Statement 2018 Annual General Meeting Invitation, Proxy Statement 87 87 ****************

Equity Compensation Plan Information Plan Compensation Equity at the end of each offering period. A total of at 29 the A million end shares of have each been period. offering reserved for issuance under both the 1996 and a total of 5,908,152 shares As of March 31, 2018, were available under for issuance plans. these 2006 ESPPs. Employee Share Purchase Plans Share Purchase Employee Purchase Logitech maintains two employee share Share purchase plans, one for Employee employees in the United States 2006 and one for employees the named is States United the outside employees for plan The States. United the outside the in worldwide employees for plan The the 2006. June was in Directors of Board the ESPP by approved was and 1996 The ESPP, 2006 or (Non-U.S.), Plan ESPP. 1996 or (U.S.), Plan Purchase Share Employee 1996 the named is States United plan until the adoption of the 2006 in ESPP June 2006. Under both plans, eligible employees may purchase shares with up to 10% of their earnings at the lower of accordance in 85% calculated of year, the one any in fair $25,000 of market value fair value a to limited at are plans the the under Purchases beginning period. offering or the end of each six-month with U.S. tax laws. During each offering period, payroll deductions of employee participants are accumulated under the executed automatically are agreements purchase plans, these in participation continued to Subject plan. purchase share — 16,505,311 16,505,311 Securities (Excluding Under Equity (c) Number of in Column (a)) (#) for Future Issuance Securities Reflected Remaining Available Remaining Compensation Plans (1) $12 $14 $14 and Rights (b) Weighted (b) Weighted Average Exercise Average Options, Warrants Options, Warrants Price of Outstanding Price of Outstanding (2) (3) 86 1,700,000 5,558,800 7,258,800 Exercise of Outstanding Issued Upon (a) Number of and Rights (#) Securities to be Options, Warrants shares were available for issuance under this plan. rules. Share (Non-U.S.) Purchase Plan and 2006 Plan. Stock Incentive Equity Compensation Plans Approved by Security Holders Not Equity Compensation Plan Information Plan Compensation Equity Plan Category Plans Equity Compensation Holders Approved by Security Total The following table summarizes the shares that may be issued upon the exercise of options (including PSOs and PPOs), PPOs), and PSOs (including options of exercise the upon issued be may that shares the summarizes table following The include plans These 2018. 31, March of as plans compensation equity employee our under rights other and PSUs, RSUs, the 1996 Employee Share Purchase Plan (U.S.) and 2006 Employee Share Plan and 2006 Stock Incentive “ESPPs”), Equity 2012 Stock Inducement Plan. Purchase Plan (Non-U.S.) (together, the (1) The weighted exercise price average is calculated solely on outstanding based options. (2) Employee 2006 (U.S.), Plan Purchase Share Employee 1996 our under outstanding shares acquire to rights and options Includes Nasdaq the under adopted Plan Equity Inducement Stock 2012 our (3) under outstanding shares acquire to rights and options Includes 2012 Stock Inducement Equity Plan as serve to employees eligible to granted be may RSUs and options stock Plan, Equity Inducement Stock 2012 the Under under Awards the 2012 Stock Inducement inducement Equity material Plan to enter into employment with the Company. may be conditioned on continued employment, the passage of time or the satisfaction of performance based vesting on Stock individual criteria, 2012 written the employment offer under letters. The issuance 2012 for Stock reserved Inducement Equity was Plan shares has 1,800,000 an expiration of date aggregate of an 2018, 31, March of As 2022. 31, March of March 31, 2018, available As no shares were for issuance under this plan. Inducement Equity Plan. 2006 Stock Incentive Plan non-employee and employees eligible to grant the for provides Plan Incentive Stock 2006 S.A. International Logitech The members of the Board of Directors of stock options, stock appreciation rights, restricted stock, and restricted stock units. As of March 31, 2018, Logitech has granted stock options (including PSOs), RSUs, Incentive Plan and has made no grants of restricted shares or stock appreciation rights. Stock options granted under the continued and on PSUs conditioned under the be 2006 may Stock Plan less not prices Incentive exercise at issued be Stock will and years ten 2006 exceeding not terms have the will generally Plan Incentive under Stock 2006 Awards grant. of date the on value market fair the than aggregate an 2018, 31, March of As criteria. vesting performance of satisfaction the or time, of passage the employment, of 30.6 million shares is reserved for issuance under the 2006 Stock Incentive 10,597,159 Plan. As of March 31, 2018, a total of This page is intentionally left blank. Annual Report Annual Report Fiscal Year 2018 Fiscal Year 2018 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2 Annual Report Fiscal Year 2018 2 3 OF OPERATIONS OF FINANCIAL CONDITION AND RESULTS CONDITION OF FINANCIAL MANAGEMENT’S DISCUSSION AND ANALYSIS AND DISCUSSION MANAGEMENT’S MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. The Company’s actual results could differ materially from those anticipated in these statements as a result of certain factors, including those set forth in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and posted to the Company’s Investor Relations website, under Item 1A, Risk Factors, in Item 7A, Quantitative and Qualitative Disclosures about Market Risk (which also appears below), and elsewhere. Please read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and related notes included in this Annual Report. Terms used and not otherwise defined in this Annual Report have the meanings set forth in the Company’s Annual Report on Form 10-K.

Overview of Our Company Logitech is a world leader in designing, manufacturing and marketing products that help connect people to digital and cloud experiences. More than 35 years ago, Logitech created products to improve experiences around the personal computer, or PC, platform, and today it is a multi-brand, multi-category company designing products that enable better experiences consuming, sharing and creating any digital content such as music, gaming, video and computing, whether it is on a computer, mobile device or in the cloud. Logitech's brands include Logitech, Jaybird, Ultimate Ears, Logitech G and ASTRO Gaming.

Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent holding company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland, which conducts its business through subsidiaries in the Americas (including North and South America), EMEA (Europe, Middle East, Africa) and Asia Pacific (including, among other countries, China, Taiwan, Japan, India and Australia). Shares of Logitech International S.A. are listed on both the SIX Swiss Exchange, under the trading symbol LOGN, and the Nasdaq Global Select Market, under the trading symbol LOGI. References in this Annual Report to the "Company," "Logitech," "we," "our," and "us" refer to Logitech International S.A. and its consolidated subsidiaries.

This page is intentionally left blank. Our products participate in five large markets that all have growth opportunities: Music, Gaming, Video Collaboration, Smart Home and Creativity & Productivity. We sell our products to a broad network of domestic and international customers, including direct sales to retailers and e-tailers, and indirect sales through distributors. Our worldwide channel network includes consumer electronics distributors, retailers, mass merchandisers, specialty stores, computer and telecommunications stores, value-added resellers and online merchants. We operate in a single operating segment: Peripherals. In fiscal years prior to fiscal year 2016, we operated in two segments: Peripherals, including retail and OEM products; and Lifesize Video Conferencing. During fiscal year 2016, we divested the Lifesize Video Conferencing segment and exited the OEM business. Our financial results treat the Lifesize segment as discontinued operations for all the periods presented in this Annual Report. From time to time, we may seek to partner with, or acquire when appropriate, companies that have products, personnel, and technologies that complement our strategic direction. We continually review our product offerings and our strategic direction in light of our profitability targets, competitive conditions, changing consumer trends and the evolving nature of the interface between the consumer and the digital world. On August 11, 2017, we acquired certain assets and liabilities constituting the ASTRO Gaming business (ASTRO) from AG Acquisition Corporation for a purchase price of $85.0 million in cash (the ASTRO Acquisition). ASTRO is a leading console gaming accessory brand with a history of producing award-winning headsets for professional gamers and enthusiasts. ASTRO provides a strong growth platform in the console gaming accessories market. In November 2017, we also made a small technology acquisition for a total consideration of $5.2 million. On September 15, 2016, we acquired the Saitek product line for a total consideration of approximately $13.0 million (the Saitek Acquisition). The Saitek Acquisition enhances the breadth and depth of our product offerings in the Gaming category and expands our engineering capabilities in simulation products. On April 20, 2016, we acquired Jaybird LLC of Salt Lake City, Utah (Jaybird) for a purchase price of $54.2 million, including a working capital adjustment and payment of a line-of-credit on behalf of Jaybird, along with an additional earn-out of up to $45.0 million in cash based on achievement of growth targets over two years (the Jaybird Acquisition). In October 2017, Logitech and the sellers of Jaybird entered into an agreement fully, irrevocably and unconditionally releasing Logitech from the earn-out rights and payments in exchange for $5.0

4 Annual Report Fiscal Year 2018 5 4 certain assets and liabilities constituting the ASTRO Gaming business certain assets and liabilities constituting the On September 15, 2016, we acquired the Saitek product line for a total consideration of approximately $13.0 On September 15, 2016, we acquired the Saitek product line for a total Utah (Jaybird) for a purchase price of $54.2 we acquired Jaybird LLC of Salt Lake City, April 20, 2016, On Logitech is a world leader in designing, manufacturing and marketing products that help connect people to and marketing products that help leader in designing, manufacturing Logitech is a world markets that all have growth opportunities: Music, Gaming, Video Our products participate in five large In fiscal years prior to fiscal year 2016, we operated in operate in a single operating segment: Peripherals. We companies that have products, From time to time, we may seek to partner with, or acquire when appropriate, 2017, we acquired August 11, On The following Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Condition and Analysis of Financial and Discussion Management’s The following (ASTRO) from AG Acquisition Corporation for a purchase price of $85.0 million in cash (the ASTRO Acquisition). ASTRO Acquisition Corporation for a purchase price of $85.0 million in cash (the AG (ASTRO) from producing award-winning headsets for ASTRO is a leading console gaming accessory brand with a history of ASTRO provides a strong growth platform in the console gaming accessories professional gamers and enthusiasts. for a total consideration of $5.2 million. market. In November 2017, we also made a small technology acquisition in enhances the breadth and depth of our product offerings Acquisition The Saitek Acquisition). million (the Saitek products. the Gaming category and expands our engineering capabilities in simulation on behalf of Jaybird, along with an million, including a working capital adjustment and payment of a line-of-credit of growth targets over two years (the additional earn-out of up to $45.0 million in cash based on achievement In October 2017, Logitech and the sellers of Jaybird entered into an agreement fully, Acquisition). Jaybird and payments in exchange for $5.0 irrevocably and unconditionally releasing Logitech from the earn-out rights contains forward-looking statements that involve risks and uncertainties. The Company’s actual results could differ actual results The Company’s risks and uncertainties. that involve forward-looking statements contains set forth in the including those of certain factors, as a result in these statements from those anticipated materially to the and posted and Exchange Commission U.S. Securities 10-K filed with the Report on Form Annual Company’s and Qualitative in Item 7A, Quantitative Item 1A, Risk Factors, website, under Investor Relations Company’s discussion read the following elsewhere. Please below), and (which also appears about Market Risk Disclosures financial statements together with our consolidated financial condition and results of operations and analysis of our Annual Report have defined in this used and not otherwise Terms Annual Report. included in this and related notes Report on Form 10-K. Annual forth in the Company’s the meanings set Company Overview of Our experiences around Logitech created products to improve More than 35 years ago, digital and cloud experiences. company designing products today it is a multi-brand, multi-category or PC, platform, and the personal computer, as music, gaming, video creating any digital content such experiences consuming, sharing and that enable better brands include Logitech, mobile device or in the cloud. Logitech's it is on a computer, and computing, whether ASTRO Gaming. Jaybird, Ultimate Ears, Logitech G and company in 1981, and Logitech International S.A. has been the parent holding Logitech was founded in Switzerland Apples, in S.A. is a Swiss holding company with its registered office of Logitech since 1988. Logitech International America), North and South Americas (including through subsidiaries in the Switzerland, which conducts its business Japan, India Taiwan, countries, China, Asia Pacific (including, among other Africa) and (Europe, Middle East, EMEA are listed on both the SIX Swiss Exchange, under the trading Australia). Shares of Logitech International S.A. and Annual Select Market, under the trading symbol LOGI. References in this symbol LOGN, and the Nasdaq Global International S.A. and its consolidated and "us" refer to Logitech "Logitech," "we," "our," Report to the "Company," subsidiaries. products to a broad network of domestic and sell our We & Productivity. Collaboration, Smart Home and Creativity Our sales to retailers and e-tailers, and indirect sales through distributors. international customers, including direct consumer electronics distributors, retailers, mass merchandisers, specialty worldwide channel network includes stores, value-added resellers and online merchants. stores, computer and telecommunications Conferencing. During fiscal year retail and OEM products; and Lifesize Video two segments: Peripherals, including and exited the OEM business. Our financial results Conferencing segment 2016, we divested the Lifesize Video Report. Annual operations for all the periods presented in this treat the Lifesize segment as discontinued continually review our product offerings personnel, and technologies that complement our strategic direction. We conditions, changing consumer trends and and our strategic direction in light of our profitability targets, competitive world. the evolving nature of the interface between the consumer and the digital MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS AND CONDITION FINANCIAL OF ANALYSIS AND DISCUSSION MANAGEMENT'S This page is intentionally left blank. 6 The near and long-term structural growth opportunities in the video collaboration market in the video collaboration market long-term structural growth opportunities The near and The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires us to with U.S. GAAP The preparation of financial statements and related disclosures in conformity an accounting estimate critical if it: (i) requires management to make judgments and estimates consider We our estimates on historical experience and on various other assumptions we believe to be base We Trends Specific to Our Five Market Opportunities Five Market to Our Specific Trends through of music by growing consumption year 2018, driven grew during fiscal The music market Music: strong growth as online gaming, gaming platform continues to show The PC gaming and console Gaming: Collaboration: Video has continued growing in fiscal year 2018. In This market increased in fiscal year 2017 and Smart Home: the installed base of PC users Although new PC shipments continue to be lackluster, Creativity & Productivity: Acquisitions and Business Product Introductions Business Seasonality, sales in our third fiscal quarter ending December 31, compared to have historically experienced higher net We mobile devices such as smartphones and tablets. According to the Recording Industry Association of America America of Association the Recording Industry According to and tablets. such as smartphones mobile devices of personal voice The integration 40% in 2017. increased over music platforms from streaming (RIAA), revenues voice- market for third-party, categories and the in the speaker competitive has become increasingly assistants to be maturing appears for mobile speakers the market Moreover, yet gained traction. has not enabled speakers of integration channel expansion, Jaybird brands, new Ears and in the Ultimate growth. Our investments with slower product introductions, have Alexa, and our new Amazon Assistant and such as Google personal voice assistants, of our Mobile Speakers of fiscal year 2018, though sales in this market through the third quarter driven our growth fourth quarter. declined during the increasingly more popularity and gaming content becomes and eSports gain greater multi-platform experiences, ASTRO gaming market growth. With positioned to benefit from the PC believe Logitech is well demanding. We gaming market. categories, such as the console strengthening our portfolio in adjacent Gaming, we are also want lower-cost, cloud-based solutions. the rise, and companies increasingly meetings are on are significant. Video to accommodate the increasing demand from to create and sell innovative products are continuing our efforts We will continue to invest in select rooms such as huddle rooms. We medium-sized meeting rooms to small-sized product marketing and sales channel development. business-specific products, targeted Harmony Hub Assistant voice capabilities into our Logitech Alexa and Google Amazon October 2016, we integrated Echo or Google Amazon room entertainment experience when used with an that enables voice control of the living have also seen early system. We AV TV and and control a Alexa can turn on/off Through Harmony, Home device. will continue channel through the recent introduction of the Harmony Pro. We success with the professional installer for the Smart Home. to explore other innovative experiences such as our mice and keyboards, can renew the PC believe that innovative PC peripherals, remains large. We created opportunities. Smaller mobile computing devices, such as tablets, have usage experience, providing growth products to enhance the use a number of offer peripherals and accessories. We new markets and usage models for the iPad folios for the iPad and iPad mini, and keyboard covers and folios for of mobile devices, including keyboard Accessories & Other Tablet of the iPad tablet market and our In fiscal year 2018, we have seen the recovery Air. along with our innovative products. category has benefited from the recovery new product Additionally, holiday demand. due in part to seasonal other fiscal quarters in our fiscal year, product costs and operating expenses. introductions and business acquisitions can significantly impact net sales, as these channels are filled with new Product introductions can also impact our net sales to distribution channels of an earlier model product declines product inventory following a product introduction, and often channel inventory when consumers and be affected as the next related major product launch approaches. Net sales can also neither historical However, distributors anticipate a product introduction or changes in business circumstances. be considered reliable indicators of our seasonal patterns nor historical patterns of product introductions should future pattern of product introductions, future net sales or financial performance. Accounting Estimates Critical reported amounts of assets, liabilities, net sales and make judgments, estimates, and assumptions that affect expenses, and the disclosure of contingent assets and liabilities. of our financial condition and about matters that are inherently uncertain; and (ii) is important to an understanding operating results. Although these estimates are based on management's best knowledge of reasonable under the circumstances. 5 6 Our total net sales for fiscal year 2018 increased 16% in comparison to fiscal year 2017. The growth was The growth for fiscal year 2018Our total net sales increased 16% year in comparison to fiscal 2017. Asia Pacific, and Americas, EMEA Net sales for fiscal year 2018 increased 16%, 10% and 23% in the in the second America provider and distribution center in North transitioned to a new third-party logistics We Operating expenses for fiscal year 2018 were $679.5 million, of net sales, compared to or 26.5% $608.2 charge of $21.7 million from the Income tax provision for fiscal year 2018 was impacted by a provisional Net income for fiscal year 2018 was $208.5 million, compared to $205.9 million for fiscal year 2017. On December 28, 2015, we and Lifesize, Inc., a wholly owned subsidiary of Logitech which holds the assets of which holds subsidiary of Logitech a wholly owned and Lifesize, Inc., 28, 2015, we On December and cost There is no revenue year 2016. during the third quarter of fiscal exited our OEM business We of net sales. Gross margin Gross margin is gross profit as a percentage decreased by 150 basis points to including Music, Gaming, Video Our strategy focuses on five large multi-category market opportunities our future growth will be determined by our ability to rapidly create innovative products across believe We million in cash, which was paid in November 2017. Jaybird is a leader in wireless audio wearables for sports and sports and for wearables audio in wireless is a leader Jaybird 2017. in November paid which was in cash, million Music market. in our potential growth long-term our expands of Jaybird acquisition and the lifestyles, active capital firms. with three venture purchase agreement into a stock business, entered video conferencing our Lifesize 62.5% of the capital firms held the venture of the transaction, 28, 2015, closing following December Immediately by us conferencing business of the Lifesize video in a divestiture which resulted shares of Lifesize, outstanding the of operations and historical results The significant influence. rights or any other we have no voting because and are reported as financial statements of Logitech Lifesize are included in the consolidated financial position of Annual Report. within this discontinued operations business since then. associated with this Results Summary of Financial ASTRO have been The results of operations for categories. our regions and across our product broad-based across ASTRO year from the acquisition date. For fiscal statements of operations included in our consolidated 2018, to net sales growth. contributed approximately 2 points respectively. significant challenges in the transition, in experienced our growth. We quarter of fiscal year 2018 to support second quarter and early and in ramping fulfillment in the distribution center, operating procedures at the newer cost on freight and warehouse-related expense. As a result, we incurred additional third quarter of fiscal year 2018. the process was completed America, and center for North have transitioned back to the original distribution We 2018. during the fourth quarter of fiscal year decreaseThe gross margin was primarily driven by in 35.4% during fiscal year 2018, compared to fiscal year 2017. the and marketing activities, additional costs from the transition of increases in pricing programs and incentive by year 2018, and product mix, partially offset America in the third quarter of fiscal distribution center in North a first- currency exchange rates. In addition, in fiscal year 2017, we recorded product cost reductions and favorable primarily due to a change in estimated breakage attributable to customer time-adoption benefit of $14.4 million pricing program accruals in EMEA. incentive, cooperative marketing and expenses was primarily driven by $39.7 million of The increase in operating million, or 27.4%, for fiscal year 2017. to increased headcount, higher share-based compensation and businesses higher personnel-related costs due attributed to higher external advertising acquired during fiscal year 2018, $22.2 million higher external cost mostly of contingent consideration for business and marketing expenses, $3.2 million lower credit from change in fair value the business acquisitions. acquisition and $3.1 million higher amortization of intangible assets from the United States to reflect a reduction in remeasurement of federal and state deferred tax assets and liabilities in Cuts and Tax of H.R.1, also known as the corporate income tax rate from 35% to 21% as a result of the enactment on December 22, 2017. Act) in the United States Tax Act (the Jobs Business in Our Trends see opportunities to deliver growth with products in all We Collaboration, Smart Home and Creativity & Productivity. these markets. The following discussion and computing. multiple digital platforms, including gaming, digital music devices, video represents key trends specific to our market opportunities.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 7 6 The near and long-term structural growth opportunities in the video collaboration market in the video collaboration market long-term structural growth opportunities The near and The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires us to with U.S. GAAP The preparation of financial statements and related disclosures in conformity an accounting estimate critical if it: (i) requires management to make judgments and estimates consider We our estimates on historical experience and on various other assumptions we believe to be base We This market increased in fiscal year 2017 and has continued growing in fiscal year 2018. In This market increased in fiscal year 2017 and Smart Home: the installed base of PC users Although new PC shipments continue to be lackluster, Creativity & Productivity: Acquisitions and Business Product Introductions Business Seasonality, sales in our third fiscal quarter ending December 31, compared to have historically experienced higher net We Trends Specific to Our Five Market Opportunities Five Market to Our Specific Trends through of music by growing consumption year 2018, driven grew during fiscal The music market Music: strong growth as online gaming, gaming platform continues to show The PC gaming and console Gaming: Collaboration: Video are significant. Video meetings are on the rise, and companies increasingly want lower-cost, cloud-based solutions. want lower-cost, cloud-based solutions. the rise, and companies increasingly meetings are on are significant. Video to accommodate the increasing demand from to create and sell innovative products are continuing our efforts We will continue to invest in select rooms such as huddle rooms. We medium-sized meeting rooms to small-sized product marketing and sales channel development. business-specific products, targeted Harmony Hub Assistant voice capabilities into our Logitech Alexa and Google Amazon October 2016, we integrated Echo or Google Amazon room entertainment experience when used with an that enables voice control of the living have also seen early system. We AV TV and and control a Alexa can turn on/off Through Harmony, Home device. will continue channel through the recent introduction of the Harmony Pro. We success with the professional installer for the Smart Home. to explore other innovative experiences such as our mice and keyboards, can renew the PC believe that innovative PC peripherals, remains large. We created opportunities. Smaller mobile computing devices, such as tablets, have usage experience, providing growth products to enhance the use a number of offer peripherals and accessories. We new markets and usage models for the iPad folios for the iPad and iPad mini, and keyboard covers and folios for of mobile devices, including keyboard Accessories & Other Tablet of the iPad tablet market and our In fiscal year 2018, we have seen the recovery Air. along with our innovative products. category has benefited from the recovery new product Additionally, holiday demand. due in part to seasonal other fiscal quarters in our fiscal year, product costs and operating expenses. introductions and business acquisitions can significantly impact net sales, as these channels are filled with new Product introductions can also impact our net sales to distribution channels of an earlier model product declines product inventory following a product introduction, and often channel inventory when consumers and be affected as the next related major product launch approaches. Net sales can also neither historical However, distributors anticipate a product introduction or changes in business circumstances. be considered reliable indicators of our seasonal patterns nor historical patterns of product introductions should future pattern of product introductions, future net sales or financial performance. Accounting Estimates Critical reported amounts of assets, liabilities, net sales and make judgments, estimates, and assumptions that affect expenses, and the disclosure of contingent assets and liabilities. of our financial condition and about matters that are inherently uncertain; and (ii) is important to an understanding operating results. Although these estimates are based on management's best knowledge of reasonable under the circumstances. mobile devices such as smartphones and tablets. According to the Recording Industry Association of America America of Association the Recording Industry According to and tablets. such as smartphones mobile devices of personal voice The integration 40% in 2017. increased over music platforms from streaming (RIAA), revenues voice- market for third-party, categories and the in the speaker competitive has become increasingly assistants to be maturing appears for mobile speakers the market Moreover, yet gained traction. has not enabled speakers of integration channel expansion, Jaybird brands, new Ears and in the Ultimate growth. Our investments with slower product introductions, have Alexa, and our new Amazon Assistant and such as Google personal voice assistants, of our Mobile Speakers of fiscal year 2018, though sales in this market through the third quarter driven our growth fourth quarter. declined during the increasingly more popularity and gaming content becomes and eSports gain greater multi-platform experiences, ASTRO gaming market growth. With positioned to benefit from the PC believe Logitech is well demanding. We gaming market. categories, such as the console strengthening our portfolio in adjacent Gaming, we are also 5 Our total net sales for fiscal year 2018 increased 16% in comparison to fiscal year 2017. The growth was The growth for fiscal year 2018Our total net sales increased 16% year in comparison to fiscal 2017. Asia Pacific, and Americas, EMEA Net sales for fiscal year 2018 increased 16%, 10% and 23% in the in the second America provider and distribution center in North transitioned to a new third-party logistics We Operating expenses for fiscal year 2018 were $679.5 million, of net sales, compared to or 26.5% $608.2 charge of $21.7 million from the Income tax provision for fiscal year 2018 was impacted by a provisional Net income for fiscal year 2018 was $208.5 million, compared to $205.9 million for fiscal year 2017. On December 28, 2015, we and Lifesize, Inc., a wholly owned subsidiary of Logitech which holds the assets of which holds subsidiary of Logitech a wholly owned and Lifesize, Inc., 28, 2015, we On December and cost There is no revenue year 2016. during the third quarter of fiscal exited our OEM business We of net sales. Gross margin Gross margin is gross profit as a percentage decreased by 150 basis points to including Music, Gaming, Video Our strategy focuses on five large multi-category market opportunities our future growth will be determined by our ability to rapidly create innovative products across believe We million in cash, which was paid in November 2017. Jaybird is a leader in wireless audio wearables for sports and sports and for wearables audio in wireless is a leader Jaybird 2017. in November paid which was in cash, million Music market. in our potential growth long-term our expands of Jaybird acquisition and the lifestyles, active capital firms. with three venture purchase agreement into a stock business, entered video conferencing our Lifesize 62.5% of the capital firms held the venture of the transaction, 28, 2015, closing following December Immediately by us conferencing business of the Lifesize video in a divestiture which resulted shares of Lifesize, outstanding the of operations and historical results The significant influence. rights or any other we have no voting because and are reported as financial statements of Logitech Lifesize are included in the consolidated financial position of Annual Report. within this discontinued operations business since then. associated with this Results Summary of Financial ASTRO have been The results of operations for categories. our regions and across our product broad-based across ASTRO year from the acquisition date. For fiscal statements of operations included in our consolidated 2018, to net sales growth. contributed approximately 2 points respectively. significant challenges in the transition, in experienced our growth. We quarter of fiscal year 2018 to support second quarter and early and in ramping fulfillment in the distribution center, operating procedures at the newer cost on freight and warehouse-related expense. As a result, we incurred additional third quarter of fiscal year 2018. the process was completed America, and center for North have transitioned back to the original distribution We 2018. during the fourth quarter of fiscal year decreaseThe gross margin was primarily driven by in 35.4% during fiscal year 2018, compared to fiscal year 2017. the and marketing activities, additional costs from the transition of increases in pricing programs and incentive by year 2018, and product mix, partially offset America in the third quarter of fiscal distribution center in North a first- currency exchange rates. In addition, in fiscal year 2017, we recorded product cost reductions and favorable primarily due to a change in estimated breakage attributable to customer time-adoption benefit of $14.4 million pricing program accruals in EMEA. incentive, cooperative marketing and expenses was primarily driven by $39.7 million of The increase in operating million, or 27.4%, for fiscal year 2017. to increased headcount, higher share-based compensation and businesses higher personnel-related costs due attributed to higher external advertising acquired during fiscal year 2018, $22.2 million higher external cost mostly of contingent consideration for business and marketing expenses, $3.2 million lower credit from change in fair value the business acquisitions. acquisition and $3.1 million higher amortization of intangible assets from the United States to reflect a reduction in remeasurement of federal and state deferred tax assets and liabilities in Cuts and Tax of H.R.1, also known as the corporate income tax rate from 35% to 21% as a result of the enactment on December 22, 2017. Act) in the United States Tax Act (the Jobs Business in Our Trends see opportunities to deliver growth with products in all We Collaboration, Smart Home and Creativity & Productivity. these markets. The following discussion and computing. multiple digital platforms, including gaming, digital music devices, video represents key trends specific to our market opportunities. 8 We apply a breakage rate to reduce our accruals of customer incentive, cooperative marketing, and pricing and pricing marketing, cooperative incentive, of customer accruals our rate to reduce apply a breakage We customer arrangements, for cooperative marketing of our accruals the adequacy regularly evaluate We our Further, in advance of customer orders. for our products and build inventory must order components We net realizable value and record write-downs of inventories that record inventories at the lower of cost and We Inventory Valuation Share-Based Compensation Expense and stock purchase rights is estimated using the Black-Scholes- The grant date fair value for stock options of complex and subjective Our estimates of share-based compensation expense require a number expense and related tax The assumptions used in calculating the fair value of share-based compensation programs based on the estimated percentage of these customer programs that will not be claimed or earned. The The earned. or not be claimed that will programs these customer of percentage estimated on the based programs claimed by that will be ultimately the amounts reasonably estimate we are able to rate is applied when breakage of the programs the breakage are used to determine and estimates judgments Significant management customers. period. in any accounting transitions may and product market conditions returns. Future programs and product programs, pricing incentive to estimate these costs In addition, when the variables used action to increase such programs. require us to take we would be required to record incremental significantly from the estimates, costs differ change, or if actual unable to reasonably If, at any future time, we become to revenue or operating expenses. increases or reductions end users, which would deferred until products are sold to recognition of revenue might be estimate these costs, revenue in the period of transition. adversely impact and rapid changes in short-term customer commitments by rapid technological change, industry is characterized demand. each review of inventory is performed A demand or net realizable value. are obsolete or in excess of anticipated including the marketability and product lifecycle stage, product development fiscal quarter that considers factors about net sales and demand forecasts which consider the assumptions plans, component cost trends, historical Inventory on hand which is not expected to be sold or utilized is considered future demand and market conditions. The write-down is in cost of goods sold at the time of such determination. excess, and we recognize the write-down in the net realizable value. Net realizable value is the estimated selling price determined by the excess of cost over At the predictable costs of completion, disposal and transportation. ordinary course of business, less reasonably per unit and lower-cost basis for that inventory is established and time of loss recognition, new cost basis is an would not result in an increase in the cost basis. If there subsequent changes in facts and circumstances or for Logitech's products or an unanticipated change in technological abrupt and substantial decline in demand gross required to record additional write-downs that could adversely affect customer requirements, we may be are recorded. margins in the period when the write-downs restricted stock units (RSUs) that vest upon The grant date fair value of Merton option-pricing valuation model. The grant date fair value estimated using the Monte-Carlo simulation method. meeting certain market conditions is on the performance conditions is calculated based on the closing market price of time-based RSUs and RSUs with dividends yield prior to vesting. date of grant, adjusted by estimated of employee exercise patterns, future forfeitures, the probability assumptions including our stock price volatility, and the selection of an tax effects achievement of the set performance conditions, dividend yield, related estimate expected share price volatility based on historical volatility using daily appropriate fair value model. We as we consider historical share price volatility as prices over the term of past options, RSUs or purchase offerings, estimate expected life based on historical settlement rates, which we We most representative of future volatility. The dividend yield behaviors. believe are most representative of future exercise and post-vesting termination used historical data to payouts. We assumption is based on our history and expectations of future dividend expense only for those awards that estimate pre-vesting forfeitures, and we recorded share-based compensation Accounting Standards Update (ASU) 2016-09 and account April 1, 2017, we adopted are expected to vest. Effective of the impact Accounting Pronouncements" below for details Refer to "Adoption of New for forfeitures as they occur. from the change in accounting. our best estimates, but these estimates involve inherent uncertainties and the application of represent effects assumptions, or if we decide to use a As a result, if factors change and we use different management judgments. in the future from valuation model, our share-based compensation expense could be materially different different our results of operations. what we have recorded in the current period, which could materially affect 7 8 We enter into customer marketing programs with many of our enter into customer marketing We Customer incentive programs include performance-based incentives and Customer incentive programs include We have agreements with certain customers that contain terms allowing price protection have agreements with certain We We believe the following accounting estimates are most critical to our business operations and to an business operations critical to our estimates are most accounting believe the following We programs customer incentive programs, pricing marketing arrangements, record accruals for cooperative We Arrangements. Cooperative Marketing Pricing Programs. grant limited rights to return products. Return rights vary by customer and range from just the Returns. We Customer Incentive Programs. Accruals for Customer Programs Accruals for Customer current events and actions that may impact us in the future, actual results could differ from those estimates. estimates. those from differ results could actual the future, us in may impact that and actions events current with estimates accounting critical of these disclosure and selection development, the has discussed Management the Board of Directors. Committee of Audit the judgments and more significant and reflect the results of operations condition and of our financial understanding statements. financial of our consolidated used in the preparation estimates related for accruals and program activity against accounts receivable is recorded An allowance and product returns. through our direct payments for program activity and indirect customers who receive to our direct customers indirect customers who receive program activity related to our liability is recorded for accruals and A customers. these The estimated cost of against a receivable balance. and do not have a right of offset payments directly benefit from the If we receive a separately identifiable recorded as a reduction of revenue. programs is usually in operating expenses. of that benefit, such cost is reflected reasonably estimate the fair value customer and can these programs in any be used to determine the cost of judgments and estimates must Significant management of those programs management to estimate the percentage Certain customer programs require accounting period. be earned by customers based on historical experience and on the specific which will not be claimed or will not customer programs that will not be claimed or The percentage of these terms and conditions of particular programs. earned is commonly referred to as "breakage". to our customers and indirect partners based on pre- performance-based incentives offer consumer rebates. We incentives are recognized as a reduction of the Accruals for performance-based determined performance criteria. of required accruals are determined based on negotiated terms, sale price at the time of sale. Estimates channel. anticipated volume of future purchases, and inventory levels in the consideration of historical experience, Accruals for discretion for the primary benefit of end-users. from time to time at our Consumer rebates are offered when the and similar incentives are recorded at the later of time of sale or the estimated costs of consumer rebates based on the specific terms and conditions. incentive is offered, special pricing discretion, we also offer At our subsequent price reduction. credits to be issued in the event of a only for limited time periods or for sales discounts to certain customers. Special pricing discounts are usually offered price reductions is influenced by product life of selected products to specific indirect partners. Our decision to make new product introductions and other cycle stage, market acceptance of products, the competitive environment, Accruals for estimated expected future pricing actions are recognized at the time of sale based on analysis factors. by and located at distributors and of historical pricing actions by customer and by product, inventories owned relevant customer and product retailers, current customer demand, current operating conditions, and other information, such as stage of product life-cycle. of sales approved by management. right to return defective product to stock rotation rights limited to a percentage of sale based on analyses of historical Estimates of expected future product returns are recognized at the time at customers, current customer return trends by customer and by product, inventories owned by and located product information. Upon recognition, we demand, current operating conditions, and other relevant customer and are influenced by product life cycle reduce sales and cost of goods sold for the estimated return. Return trends levels, product sell-through, the type of status, new product introductions, market acceptance of products, sales issues, competitive pressures, operational policies and procedures, and other product quality seasonality, customer, predictable to allow us to estimate expected future factors. Return rates can fluctuate over time, but are sufficiently product returns. customers, and with certain indirect partners, allowing customers to receive a credit equal to a set percentage of partners, allowing customers to receive a credit equal to a set percentage customers, and with certain indirect The objective of these a fixed dollar credit for various marketing programs. their purchases of our products, or Accruals for and promotional events to increase sales of our products. arrangements is to encourage advertising the recorded at the later of the date the revenue is recognized or the date these marketing arrangements are experience and inventory levels in the channel. based on negotiated terms, historical incentive is offered,

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 9 8 We apply a breakage rate to reduce our accruals of customer incentive, cooperative marketing, and pricing and pricing marketing, cooperative incentive, of customer accruals our rate to reduce apply a breakage We customer arrangements, for cooperative marketing of our accruals the adequacy regularly evaluate We our Further, in advance of customer orders. for our products and build inventory must order components We net realizable value and record write-downs of inventories that record inventories at the lower of cost and We Inventory Valuation Share-Based Compensation Expense and stock purchase rights is estimated using the Black-Scholes- The grant date fair value for stock options of complex and subjective Our estimates of share-based compensation expense require a number expense and related tax The assumptions used in calculating the fair value of share-based compensation programs based on the estimated percentage of these customer programs that will not be claimed or earned. The The earned. or not be claimed that will programs these customer of percentage estimated on the based programs claimed by that will be ultimately the amounts reasonably estimate we are able to rate is applied when breakage of the programs the breakage are used to determine and estimates judgments Significant management customers. period. in any accounting transitions may and product market conditions returns. Future programs and product programs, pricing incentive to estimate these costs In addition, when the variables used action to increase such programs. require us to take we would be required to record incremental significantly from the estimates, costs differ change, or if actual unable to reasonably If, at any future time, we become to revenue or operating expenses. increases or reductions end users, which would deferred until products are sold to recognition of revenue might be estimate these costs, revenue in the period of transition. adversely impact and rapid changes in short-term customer commitments by rapid technological change, industry is characterized demand. each review of inventory is performed A demand or net realizable value. are obsolete or in excess of anticipated including the marketability and product lifecycle stage, product development fiscal quarter that considers factors about net sales and demand forecasts which consider the assumptions plans, component cost trends, historical Inventory on hand which is not expected to be sold or utilized is considered future demand and market conditions. The write-down is in cost of goods sold at the time of such determination. excess, and we recognize the write-down in the net realizable value. Net realizable value is the estimated selling price determined by the excess of cost over At the predictable costs of completion, disposal and transportation. ordinary course of business, less reasonably per unit and lower-cost basis for that inventory is established and time of loss recognition, new cost basis is an would not result in an increase in the cost basis. If there subsequent changes in facts and circumstances or for Logitech's products or an unanticipated change in technological abrupt and substantial decline in demand gross required to record additional write-downs that could adversely affect customer requirements, we may be are recorded. margins in the period when the write-downs restricted stock units (RSUs) that vest upon The grant date fair value of Merton option-pricing valuation model. The grant date fair value estimated using the Monte-Carlo simulation method. meeting certain market conditions is on the performance conditions is calculated based on the closing market price of time-based RSUs and RSUs with dividends yield prior to vesting. date of grant, adjusted by estimated of employee exercise patterns, future forfeitures, the probability assumptions including our stock price volatility, and the selection of an tax effects achievement of the set performance conditions, dividend yield, related estimate expected share price volatility based on historical volatility using daily appropriate fair value model. We as we consider historical share price volatility as prices over the term of past options, RSUs or purchase offerings, estimate expected life based on historical settlement rates, which we We most representative of future volatility. The dividend yield behaviors. believe are most representative of future exercise and post-vesting termination used historical data to payouts. We assumption is based on our history and expectations of future dividend expense only for those awards that estimate pre-vesting forfeitures, and we recorded share-based compensation Accounting Standards Update (ASU) 2016-09 and account April 1, 2017, we adopted are expected to vest. Effective of the impact Accounting Pronouncements" below for details Refer to "Adoption of New for forfeitures as they occur. from the change in accounting. our best estimates, but these estimates involve inherent uncertainties and the application of represent effects assumptions, or if we decide to use a As a result, if factors change and we use different management judgments. in the future from valuation model, our share-based compensation expense could be materially different different our results of operations. what we have recorded in the current period, which could materially affect 7 We enter into customer marketing programs with many of our enter into customer marketing We Customer incentive programs include performance-based incentives and Customer incentive programs include We have agreements with certain customers that contain terms allowing price protection have agreements with certain We We believe the following accounting estimates are most critical to our business operations and to an business operations critical to our estimates are most accounting believe the following We programs customer incentive programs, pricing marketing arrangements, record accruals for cooperative We Arrangements. Cooperative Marketing Customer Incentive Programs. Pricing Programs. grant limited rights to return products. Return rights vary by customer and range from just the Returns. We Accruals for Customer Programs Accruals for Customer current events and actions that may impact us in the future, actual results could differ from those estimates. estimates. those from differ results could actual the future, us in may impact that and actions events current with estimates accounting critical of these disclosure and selection development, the has discussed Management the Board of Directors. Committee of Audit the judgments and more significant and reflect the results of operations condition and of our financial understanding statements. financial of our consolidated used in the preparation estimates related for accruals and program activity against accounts receivable is recorded An allowance and product returns. through our direct payments for program activity and indirect customers who receive to our direct customers indirect customers who receive program activity related to our liability is recorded for accruals and A customers. these The estimated cost of against a receivable balance. and do not have a right of offset payments directly benefit from the If we receive a separately identifiable recorded as a reduction of revenue. programs is usually in operating expenses. of that benefit, such cost is reflected reasonably estimate the fair value customer and can these programs in any be used to determine the cost of judgments and estimates must Significant management of those programs management to estimate the percentage Certain customer programs require accounting period. be earned by customers based on historical experience and on the specific which will not be claimed or will not customer programs that will not be claimed or The percentage of these terms and conditions of particular programs. earned is commonly referred to as "breakage". of partners, allowing customers to receive a credit equal to a set percentage customers, and with certain indirect The objective of these a fixed dollar credit for various marketing programs. their purchases of our products, or Accruals for and promotional events to increase sales of our products. arrangements is to encourage advertising the recorded at the later of the date the revenue is recognized or the date these marketing arrangements are experience and inventory levels in the channel. based on negotiated terms, historical incentive is offered, to our customers and indirect partners based on pre- performance-based incentives offer consumer rebates. We incentives are recognized as a reduction of the Accruals for performance-based determined performance criteria. of required accruals are determined based on negotiated terms, sale price at the time of sale. Estimates channel. anticipated volume of future purchases, and inventory levels in the consideration of historical experience, Accruals for discretion for the primary benefit of end-users. from time to time at our Consumer rebates are offered when the and similar incentives are recorded at the later of time of sale or the estimated costs of consumer rebates based on the specific terms and conditions. incentive is offered, special pricing discretion, we also offer At our subsequent price reduction. credits to be issued in the event of a only for limited time periods or for sales discounts to certain customers. Special pricing discounts are usually offered price reductions is influenced by product life of selected products to specific indirect partners. Our decision to make new product introductions and other cycle stage, market acceptance of products, the competitive environment, Accruals for estimated expected future pricing actions are recognized at the time of sale based on analysis factors. by and located at distributors and of historical pricing actions by customer and by product, inventories owned relevant customer and product retailers, current customer demand, current operating conditions, and other information, such as stage of product life-cycle. of sales approved by management. right to return defective product to stock rotation rights limited to a percentage of sale based on analyses of historical Estimates of expected future product returns are recognized at the time at customers, current customer return trends by customer and by product, inventories owned by and located product information. Upon recognition, we demand, current operating conditions, and other relevant customer and are influenced by product life cycle reduce sales and cost of goods sold for the estimated return. Return trends levels, product sell-through, the type of status, new product introductions, market acceptance of products, sales issues, competitive pressures, operational policies and procedures, and other product quality seasonality, customer, predictable to allow us to estimate expected future factors. Return rates can fluctuate over time, but are sufficiently product returns. 10 • assumptions; and forecasted revenue growth rate royalty rate range • regarding the estimated useful life of the acquired intangibles; assumptions • rates. discount We estimate the cost of product warranties at the time the related revenue is recognized based on historical based on historical is recognized the related revenue at the time of product warranties estimate the cost We Acquisitions Business especially at significant estimates and assumptions, acquisitions requires us to make Accounting for business acquired include but assets and goodwill we have estimates in valuing certain intangible Examples of critical the accuracy or validity of such may occur that may affect Unanticipated events and circumstances technology from the business acquisitions was determined based The economic useful life of the developed relationships from the business acquisitions was determined based The economic useful life of the customer names from the business acquisitions was determined based on the The economic useful life of the trade Acquisition (see contingent consideration liability arising from the Jaybird The fair value of acquisition-related In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) issued Accounting Standards Board (FASB) In July 2015, the Financial 718): ASU 2016-09, "Compensation-Stock Compensation (Topic issued In March 2016, the FASB Product Warranty Accrual Warranty Product and projected warranty claim rates, historical and projected costs, and knowledge of specific product failures that of specific product and knowledge and projected costs, rates, historical warranty claim and projected of to assess the adequacy estimates we reevaluate quarter, Each fiscal of our typical experience. are outside protection and subject to warranty base of products size of the installed considering the warranty liabilities recorded to the revisions from estimates, costs differ failure rates or repair If actual product amounts as necessary. adjust the our results of operations. affect and could materially would be required warranty liabilities estimated assumed and pre- assets acquired and liabilities with respect to tangible and intangible the acquisition date assign fair value to the and assumptions to accurately use our best estimates We acquisition contingencies. assumed at the acquisition date. assets acquired and liabilities tangible and intangible are not limited to: assumptions, estimates or actual results. the technology of existing products, as well as the cash flows over on the technology cycle related to developed forecasted periods. and the industry benchmarks. on historical customer turnover rates the cash flows anticipated over the forecasted periods. expected life of the trade names and to the consolidated financial statements Measurements" Value Acquisitions" and "Note 10 - Fair "Note 3 - Business inputs by using a Monte Carlo Simulation that includes significant unobservable for more information) is determined and projected net sales of Jaybird over the earn-out period, and it is such as a risk-adjusted discount rate are based on the inputs on the date of remeasurement. Projected net sales remeasured at each reporting period the sellers analysis of the target markets. In October 2017, Logitech and based on our internal projections, including irrevocably and unconditionally releasing Logitech from the earn-out of Jaybird entered into an agreement fully, the fair value of the contingent rights and payments in exchange for $5.0 million in cash, which approximated paid the $5.0 million in November 2017. consideration as of September 30, 2017. We Pronouncements Accounting of New Adoption required an 330 previously Topic 330)" (ASU 2015-11). "Simplifying the Measurement of Inventory (Topic 2015-11, value represented by replacement cost, entity to measure inventory at the lower of cost or market, with the market requires an entity to measure ASU 2015-11 net realizable value or net realizable value less a normal profit margin. for fiscal years beginning after December 15, inventory at the lower of cost and net realizable value and is effective 1, 2017, which has not had a material impact on our consolidated April adopted this standard effective 2016. We financial statements. ASU 2016-09 simplifies several Accounting" (ASU 2016-09). Improvements to Employee Share-Based Payment recognition of all excess tax benefits and aspects of the accounting for share-based payments, including immediate for equity classification up to the employees' deficiencies in the income statement, changing the threshold to qualify election to either estimate the number of maximum statutory tax rates, allowing an entity-wide accounting policy and clarifying the classification on the awards that are expected to vest or account for forfeitures as they occur, 9 10 We operate in multiple jurisdictions and our profits are taxed pursuant to the tax laws of these jurisdictions. these jurisdictions. to the tax laws of taxed pursuant and our profits are jurisdictions operate in multiple We from future taxable income, our deferred tax assets will be recovered assess the likelihood that We the application of tax laws, the expected resolution of make certain estimates and judgments about We on Act in the United States Tax with the enactment of the have recorded provisional estimates associated We Accounting for Income Taxes Income for Accounting Goodwill annually at December 31 or more frequently if indicators of conduct a goodwill impairment analysis We qualitative factors to determine In reviewing goodwill for impairment, an entity has the option to first assess our annual impairment analysis of the goodwill as of December 31, 2017 by performing a performed We Annual Impairment Analysis Annual Impairment Our effective income tax rate may be affected by the changes in or interpretations of tax laws and tax agreements in tax agreements of tax laws and in or interpretations by the changes affected tax rate may be income Our effective mix of changes in geographical credit carryforwards, loss and tax of net operating jurisdiction, utilization any given tax assets. to realize deferred such as the ability of matters changes in our assessment expense, and income and which we operate. jurisdictions in taxes in each of the estimate income we must of these considerations, As a result from resulting differences with assessing temporary exposure together current tax involves estimating This process tax assets and result in deferred These differences for tax and accounting purposes. treatment of items different sheet. included in the consolidated balance liabilities, which are risks associated with of income, expectations and evidence such as historical levels considering all available we determine that it is and feasible tax strategies. When taxable income and ongoing prudent estimates of future is charged to of our deferred tax assets, an adjustment not that we will realize all or part not more likely than that it is more likely than Likewise, if we later determine when such determination is made. earnings in the period valuation allowance would be realized, the previously provided of our deferred tax assets would not that all or a part be reversed. In surrounding the recognition and measurement of uncertain tax benefits. uncertain tax positions and other matters than our estimates, or the related statutes are resolved for amounts different the event that uncertain tax positions of of additional income taxes, we will be required to adjust the amounts of limitations expire without the assessment have a material Such adjustments may period in which such events occur. the related assets and liabilities in the and our results of operations. impact on our income tax provision Accounting Bulletin (SAB) and reporting guidance in Staff The SEC has provided accounting December 22, 2017. within a measurement period up to one year due to the that allows us to report provisional amounts No. 118 of deferred income taxes consider the remeasurement changes. We complexities inherent in adopting the of our estimates from ongoing and refinement interpretation of the law, incomplete. New guidance from regulators, change the provisional amounts. analysis of data and tax positions may of judgments are involved in significant amount A to sell or exit a business. impairment exist or if a decision is made has occurred. Such indicators may include deterioration in general determining if an indicator of impairment in which in equity and credit markets, adverse changes in the markets economic conditions, negative developments on earnings and cash flows, a trend of costs that have a negative effect an entity operates, increases in input and decline in actual or planned revenue or earnings compared with actual negative or declining cash flows, a events such as changes in management, projected results of relevant prior periods, or other relevant entity-specific The fair value that could be realized or litigation. key personnel, strategy or customers, contemplation of bankruptcy, from that used to evaluate the impairment of goodwill. in an actual transaction may differ that it is more likely than not (greater whether the existence of events or circumstances leads to a determination carrying amount. If an entity elects to than 50%) that the estimated fair value of a reporting unit is less than its more likely than not, the entity is then perform a qualitative assessment and determines that an impairment is An entity also may analysis is required. required to perform the quantitative impairment test; otherwise, no further to the quantitative impairment test. elect not to perform the qualitative assessment and, instead, proceed directly unit should be the same whether an entity The ultimate outcome of the goodwill impairment review for a reporting the quantitative impairment test. Goodwill is chooses to perform the qualitative assessment or proceeds directly to which is defined as an operating segment allocated among and evaluated for impairment at the reporting unit level, currently have only one reporting unit. or one level below an operating segment. We the fair value of the peripheral reporting qualitative assessment and concluded that it was more likely than not that Annual financial statements included in this unit exceeded its carrying amount. Refer to Note 12 to the consolidated Report for the disclosures.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 11 10 • assumptions; and forecasted revenue growth rate royalty rate range • regarding the estimated useful life of the acquired intangibles; assumptions • rates. discount We estimate the cost of product warranties at the time the related revenue is recognized based on historical based on historical is recognized the related revenue at the time of product warranties estimate the cost We Acquisitions Business especially at significant estimates and assumptions, acquisitions requires us to make Accounting for business acquired include but assets and goodwill we have estimates in valuing certain intangible Examples of critical the accuracy or validity of such may occur that may affect Unanticipated events and circumstances technology from the business acquisitions was determined based The economic useful life of the developed relationships from the business acquisitions was determined based The economic useful life of the customer names from the business acquisitions was determined based on the The economic useful life of the trade Acquisition (see contingent consideration liability arising from the Jaybird The fair value of acquisition-related In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) issued Accounting Standards Board (FASB) In July 2015, the Financial 718): ASU 2016-09, "Compensation-Stock Compensation (Topic issued In March 2016, the FASB Product Warranty Accrual Warranty Product and projected warranty claim rates, historical and projected costs, and knowledge of specific product failures that of specific product and knowledge and projected costs, rates, historical warranty claim and projected of to assess the adequacy estimates we reevaluate quarter, Each fiscal of our typical experience. are outside protection and subject to warranty base of products size of the installed considering the warranty liabilities recorded to the revisions from estimates, costs differ failure rates or repair If actual product amounts as necessary. adjust the our results of operations. affect and could materially would be required warranty liabilities estimated assumed and pre- assets acquired and liabilities with respect to tangible and intangible the acquisition date assign fair value to the and assumptions to accurately use our best estimates We acquisition contingencies. assumed at the acquisition date. assets acquired and liabilities tangible and intangible are not limited to: assumptions, estimates or actual results. the technology of existing products, as well as the cash flows over on the technology cycle related to developed forecasted periods. and the industry benchmarks. on historical customer turnover rates the cash flows anticipated over the forecasted periods. expected life of the trade names and to the consolidated financial statements Measurements" Value Acquisitions" and "Note 10 - Fair "Note 3 - Business inputs by using a Monte Carlo Simulation that includes significant unobservable for more information) is determined and projected net sales of Jaybird over the earn-out period, and it is such as a risk-adjusted discount rate are based on the inputs on the date of remeasurement. Projected net sales remeasured at each reporting period the sellers analysis of the target markets. In October 2017, Logitech and based on our internal projections, including irrevocably and unconditionally releasing Logitech from the earn-out of Jaybird entered into an agreement fully, the fair value of the contingent rights and payments in exchange for $5.0 million in cash, which approximated paid the $5.0 million in November 2017. consideration as of September 30, 2017. We Pronouncements Accounting of New Adoption required an 330 previously Topic 330)" (ASU 2015-11). "Simplifying the Measurement of Inventory (Topic 2015-11, value represented by replacement cost, entity to measure inventory at the lower of cost or market, with the market requires an entity to measure ASU 2015-11 net realizable value or net realizable value less a normal profit margin. for fiscal years beginning after December 15, inventory at the lower of cost and net realizable value and is effective 1, 2017, which has not had a material impact on our consolidated April adopted this standard effective 2016. We financial statements. ASU 2016-09 simplifies several Accounting" (ASU 2016-09). Improvements to Employee Share-Based Payment recognition of all excess tax benefits and aspects of the accounting for share-based payments, including immediate for equity classification up to the employees' deficiencies in the income statement, changing the threshold to qualify election to either estimate the number of maximum statutory tax rates, allowing an entity-wide accounting policy and clarifying the classification on the awards that are expected to vest or account for forfeitures as they occur, 9 We assess the likelihood that our deferred tax assets will be recovered from future taxable income, from future taxable income, our deferred tax assets will be recovered assess the likelihood that We the application of tax laws, the expected resolution of make certain estimates and judgments about We on Act in the United States Tax with the enactment of the have recorded provisional estimates associated We We operate in multiple jurisdictions and our profits are taxed pursuant to the tax laws of these jurisdictions. these jurisdictions. to the tax laws of taxed pursuant and our profits are jurisdictions operate in multiple We Goodwill annually at December 31 or more frequently if indicators of conduct a goodwill impairment analysis We qualitative factors to determine In reviewing goodwill for impairment, an entity has the option to first assess our annual impairment analysis of the goodwill as of December 31, 2017 by performing a performed We Accounting for Income Taxes Income for Accounting Annual Impairment Analysis Annual Impairment Our effective income tax rate may be affected by the changes in or interpretations of tax laws and tax agreements in tax agreements of tax laws and in or interpretations by the changes affected tax rate may be income Our effective mix of changes in geographical credit carryforwards, loss and tax of net operating jurisdiction, utilization any given tax assets. to realize deferred such as the ability of matters changes in our assessment expense, and income and which we operate. jurisdictions in taxes in each of the estimate income we must of these considerations, As a result from resulting differences with assessing temporary exposure together current tax involves estimating This process tax assets and result in deferred These differences for tax and accounting purposes. treatment of items different sheet. included in the consolidated balance liabilities, which are risks associated with of income, expectations and evidence such as historical levels considering all available we determine that it is and feasible tax strategies. When taxable income and ongoing prudent estimates of future is charged to of our deferred tax assets, an adjustment not that we will realize all or part not more likely than that it is more likely than Likewise, if we later determine when such determination is made. earnings in the period valuation allowance would be realized, the previously provided of our deferred tax assets would not that all or a part be reversed. In surrounding the recognition and measurement of uncertain tax benefits. uncertain tax positions and other matters than our estimates, or the related statutes are resolved for amounts different the event that uncertain tax positions of of additional income taxes, we will be required to adjust the amounts of limitations expire without the assessment have a material Such adjustments may period in which such events occur. the related assets and liabilities in the and our results of operations. impact on our income tax provision Accounting Bulletin (SAB) and reporting guidance in Staff The SEC has provided accounting December 22, 2017. within a measurement period up to one year due to the that allows us to report provisional amounts No. 118 of deferred income taxes consider the remeasurement changes. We complexities inherent in adopting the of our estimates from ongoing and refinement interpretation of the law, incomplete. New guidance from regulators, change the provisional amounts. analysis of data and tax positions may of judgments are involved in significant amount A to sell or exit a business. impairment exist or if a decision is made has occurred. Such indicators may include deterioration in general determining if an indicator of impairment in which in equity and credit markets, adverse changes in the markets economic conditions, negative developments on earnings and cash flows, a trend of costs that have a negative effect an entity operates, increases in input and decline in actual or planned revenue or earnings compared with actual negative or declining cash flows, a events such as changes in management, projected results of relevant prior periods, or other relevant entity-specific The fair value that could be realized or litigation. key personnel, strategy or customers, contemplation of bankruptcy, from that used to evaluate the impairment of goodwill. in an actual transaction may differ that it is more likely than not (greater whether the existence of events or circumstances leads to a determination carrying amount. If an entity elects to than 50%) that the estimated fair value of a reporting unit is less than its more likely than not, the entity is then perform a qualitative assessment and determines that an impairment is An entity also may analysis is required. required to perform the quantitative impairment test; otherwise, no further to the quantitative impairment test. elect not to perform the qualitative assessment and, instead, proceed directly unit should be the same whether an entity The ultimate outcome of the goodwill impairment review for a reporting the quantitative impairment test. Goodwill is chooses to perform the qualitative assessment or proceeds directly to which is defined as an operating segment allocated among and evaluated for impairment at the reporting unit level, currently have only one reporting unit. or one level below an operating segment. We the fair value of the peripheral reporting qualitative assessment and concluded that it was more likely than not that Annual financial statements included in this unit exceeded its carrying amount. Refer to Note 12 to the consolidated Report for the disclosures. 13% 21 11 Sales Growth Rate in Constant Currency 2017 vs. 2016 12% 19 11 Rate Sales Growth 4 16% 22 12 Sales Growth Rate in Constant Currency 2018 vs. 2017 16% 10 23 Rate Sales Growth Although our financial results are reported in U.S. Dollars, a portion of our sales was generated in currencies a portion of our sales was generated results are reported in U.S. Dollars, Although our financial The increase in sales in fiscal year year 2018 compared with fiscal 16%2017was driven by growth in of Audio The increase in sales of compared with fiscal year 2016 was driven by growth in 12% in fiscal year 2017 The growth rate of 10% in fiscal year 2018 compared with fiscal year 2017 was driven by several of our The increase in sales of driven by several of our 19% in fiscal year 2017 compared with fiscal year 2016 was The growth of 23% in fiscal year 2018 compared with fiscal year 2017 was primarily driven by sales increases driven by sales in fiscal year 2017 compared with fiscal year 2016 was primarily The increase in sales of 11% During fiscal year 2017, retail sales increased sales increased year 2017, retail During fiscal exchange 2016. If currency to fiscal year 14% in comparison has been no revenue since then. business in December 2015, there As we exited our OEM in retail sales by region for fiscal year The following table presents the change compared with fiscal year 2018 OEM: Sales Denominated in Other Currencies Sales Denominated Retail Sales by Region Americas EMEA Asia Pacific Americas Collaboration, Gaming, and Smart Home. Accessories, Video & Other Tablet Pointing Devices, by declines in sales for and Mobile Speakers, Gaming Keyboards & Combos, offset partially PC & Wearables, Accessories. & Other Tablet EMEA by Pointing Collaboration, Gaming, and Smart Home, partially offset product categories, with strength in Video Wearables. Audio PC & Devices and Collaboration and Gaming. We Video product categories, with strength in Mobile Speakers, Keyboards & Combos, breakage attributable to customer recorded a benefit of $14.4 million primarily due to a change in estimated incentive, cooperative marketing and pricing program accruals in EMEA. Asia Pacific Collaboration, Music and Gaming. in Pointing Devices, Video Collaboration. increases in Gaming and Video Home grew double digits, with Gaming contributing more than 8 points of the net sales growth during the year, the year, during growth net sales of the than 8 points more Gaming contributing with digits, grew double Home ASTRO. by contributed 2 points approximately including been rate would have retail sales growth constant currency 2017 and 2016, our been constant in rates had 14.9%. Smart Home grew Gaming, and Collaboration, Music, categories. Video all our product grew across almost We a benefit recorded growth. We points to the net sales approximately 3 Saitek contributed Jaybird and double digits. millionof $14.4 cooperative to customer incentive, attributable in estimated breakage due to a change primarily program accruals in EMEA. marketing and pricing Dollar, Taiwan Canadian Dollar, Yen, Chinese Renminbi, Japanese such as the Euro, Dollar, other than the U.S. During fiscal years 2018, 2017 and 2016, 50%, 50% and net sales 48% of our Australian Dollar. British Pound and respectively. in currencies other than the U.S. Dollar, were denominated 2017, year and fiscal year 2017 compared with fiscal 2016: Change — (100) 2016 2018 vs. 2017 2017 vs. 2016 — 71,041 2017 11 $ 2,221,427 $ 1,947,059 16% 14% $ 2,221,427 $ 2,018,100 16% 10% 12 Years Ended March 31, Years — 2018 2,566,863 2,566,863 $ $ Net sales by channel for fiscal years 2018,2017 and 2016 were as follows (Dollars in thousands): During fiscal year 2018, retail sales increased 16%, in comparison to fiscal year 2017. If currency exchange Net Sales In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment (Topic (Topic for Goodwill Impairment Test "Simplifying the ASU 2017-04, issued FASB In January 2017, the of 718): Scope Compensation (Topic ASU 2017-09, "Compensation-Stock issued In May 2017, the FASB for recent accounting Annual Report financial statements included in this Refer to Note 2 to the consolidated the impact of currency exchange rate fluctuations as "constant refer to our net sales growth rates excluding We the reporting of our financial results in U.S. Dollars, our financial results Given our global sales presence and Retail: Total net sales Total OEM Retail

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 13% 21 11 Sales Growth Rate in Constant Currency 2017 vs. 2016 19 11 12% Rate Sales Growth 4 22 16% 13 12 Sales Growth Rate in Constant Currency 2018 vs. 2017 10 23 16% Rate Sales Growth Although our financial results are reported in U.S. Dollars, a portion of our sales was generated in currencies a portion of our sales was generated results are reported in U.S. Dollars, Although our financial The increase in sales in fiscal year year 2018 compared with fiscal 16%2017was driven by growth in of Audio The increase in sales of compared with fiscal year 2016 was driven by growth in 12% in fiscal year 2017 The growth rate of 10% in fiscal year 2018 compared with fiscal year 2017 was driven by several of our The increase in sales of driven by several of our 19% in fiscal year 2017 compared with fiscal year 2016 was The growth of 23% in fiscal year 2018 compared with fiscal year 2017 was primarily driven by sales increases driven by sales in fiscal year 2017 compared with fiscal year 2016 was primarily The increase in sales of 11% During fiscal year 2017, retail sales increased sales increased year 2017, retail During fiscal exchange 2016. If currency to fiscal year 14% in comparison has been no revenue since then. business in December 2015, there As we exited our OEM in retail sales by region for fiscal year The following table presents the change compared with fiscal year 2018 OEM: Sales Denominated in Other Currencies Sales Denominated Retail Sales by Region EMEA Asia Pacific Americas Americas Collaboration, Gaming, and Smart Home. Accessories, Video & Other Tablet Pointing Devices, by declines in sales for and Mobile Speakers, Gaming Keyboards & Combos, offset partially PC & Wearables, Accessories. & Other Tablet EMEA by Pointing Collaboration, Gaming, and Smart Home, partially offset product categories, with strength in Video Wearables. Audio PC & Devices and Collaboration and Gaming. We Video product categories, with strength in Mobile Speakers, Keyboards & Combos, breakage attributable to customer recorded a benefit of $14.4 million primarily due to a change in estimated incentive, cooperative marketing and pricing program accruals in EMEA. Asia Pacific Collaboration, Music and Gaming. in Pointing Devices, Video Collaboration. increases in Gaming and Video Home grew double digits, with Gaming contributing more than 8 points of the net sales growth during the year, the year, during growth net sales of the than 8 points more Gaming contributing with digits, grew double Home ASTRO. by contributed 2 points approximately including been rate would have retail sales growth constant currency 2017 and 2016, our been constant in rates had 14.9%. Smart Home grew Gaming, and Collaboration, Music, categories. Video all our product grew across almost We a benefit recorded growth. We points to the net sales approximately 3 Saitek contributed Jaybird and double digits. millionof $14.4 cooperative to customer incentive, attributable in estimated breakage due to a change primarily program accruals in EMEA. marketing and pricing Dollar, Taiwan Canadian Dollar, Yen, Chinese Renminbi, Japanese such as the Euro, Dollar, other than the U.S. During fiscal years 2018, 2017 and 2016, 50%, 50% and net sales 48% of our Australian Dollar. British Pound and respectively. in currencies other than the U.S. Dollar, were denominated 2017, year and fiscal year 2017 compared with fiscal 2016: Change — (100) 2016 2018 vs. 2017 2017 vs. 2016 — 71,041 2017 11 $ 2,221,427 $ 1,947,059 16% 14% $ 2,221,427 $ 2,018,100 16% 10% Years Ended March 31, Years — 2018 2,566,863 2,566,863 $ $ Net sales by channel for fiscal years 2018,2017 and 2016 were as follows (Dollars in thousands): During fiscal year 2018, retail sales increased 16%, in comparison to fiscal year 2017. If currency exchange In January 2017, the FASB issued ASU 2017-04, "Simplifying the Test for Goodwill Impairment (Topic (Topic for Goodwill Impairment Test "Simplifying the ASU 2017-04, issued FASB In January 2017, the of 718): Scope Compensation (Topic ASU 2017-09, "Compensation-Stock issued In May 2017, the FASB for recent accounting Annual Report financial statements included in this Refer to Note 2 to the consolidated the impact of currency exchange rate fluctuations as "constant refer to our net sales growth rates excluding We the reporting of our financial results in U.S. Dollars, our financial results Given our global sales presence and Net Sales Retail: Total net sales Total Retail OEM

rates had been constant in 2018 and 2017, our constant currency sales growth rate would have been 13%. We rates had been constant in 2018 been and 2017, our constant currency sales growth rate would have 13%. We Collaboration, Gaming, and Smart Accessories, Video & Other Tablet grew across almost all our product categories. statement of cash flows for the excess tax benefits and employee taxes paid when an employer withholds shares shares withholds employer when an taxes paid and employee benefits excess tax for the flows of cash statement We 15, 2016. December after beginning fiscal years for is effective 2016-09 ASU purposes. withholding for tax of the classification flows related to statements of cash Changes to the April 1, 2017. this standard effective adopted to the current year to conform accordingly, retroactive basis and on a benefits were implemented excess tax we reclassified presentation, million$9.7 $2.1 million and financing reported under benefits previously of excess tax on our 31, 2016, respectively, 2017 and March ended March 31, for the years to operating activities activities The occur. forfeitures as they we account for the new standard, cash flows. Under statements of consolidated earnings as of adjustment to decrease retained for forfeitures resulted in a cumulative-effect change in accounting earnings adjustment to increase retained recognized a cumulative-effect further March 31, 2017 by $3.3 million. We by $57.2 millionas of March 31, 2017 account for gross excess tax benefits adoption of the new guidance to upon not reduced current the related tax deduction had were previously not recognized because of $75.2 million that allowance of by a valuation $18.0 million to amounts that are to reduce the deferred tax assets income taxes, offset to be realized. more likely than not annual for is effective ASU 2017-04 goodwill impairment test. which removes Step 2 from the 350)" (ASU 2017-04), early adoption permitted. beginning December 15, 2019, with impairments in annual periods or any interim goodwill on our consolidated financial which has not had a material impact April 1, 2017, effective adopted this standard We statements. about which changes to the terms or conditions Accounting" (ASU 2017-09), which provides guidance Modification ASU 2017-09 is 718. Topic an entity to apply modification accounting in of a share-based payment award require in 15, 2017, with early adoption permitted, including adoption for annual periods beginning after December effective April adopted this standard effective statements have not yet been issued. We any interim period for which financial impact on our consolidated financial statements. 1, 2017, which has not had a material pronouncements to be adopted. Constant Currency period of constant currency sales growth is calculated by translating prior currency" sales growth rates. Percentage rate for that currency and comparing that to average exchange period’s sales in each local currency at the current current period sales. rates. See “Results of Operations” for information on the by significant shifts in currency exchange could be affected sales. If the U.S. Dollar appreciates or depreciates in comparison to of currency exchange results on our net effect in future periods as well. our results of operations will affect other currencies in future periods, this Results of Operations 14 During fiscal year 2017, retail sales of PC Webcams increased 9%, compared to fiscal year 2016. The The increased 9%, 2016. year to fiscal compared Webcams of PC retail sales 2017, fiscal year During as well and smartphones covers for tablets keyboards and category comprises Accessories & Other Tablet Our Accessories increased to fiscal year 40%, compared & Other Tablet During fiscal year 2018, retail sales of Accessories decreased to fiscal year 26%, compared & Other Tablet 2017, retail sales of During fiscal year products which combine audio and video and other Collaboration category primarily includes Our Video The Collaboration increased 44%, compared to fiscal year 2017. During fiscal year 2018, retail sales of Video The Collaboration increased 42%, compared to fiscal year 2016. of Video During fiscal year 2017, retail sales up entirely of wireless Bluetooth and Wi-Fi speakers. Our Mobile Speakers category is made During fiscal year 2018, retail sales of Mobile Speakers increased 5%, to fiscal year 2017. compared Mobile During fiscal year 2017, retail sales of Mobile Speakers increased 31%, compared to fiscal year 2016. Mobile and premium category comprises PC speakers, PC headsets, in-ear headphones & Wearables Audio-PC Our increased 2%, compared to fiscal year 2017. Audio-PC & Wearables During fiscal year 2018, retail sales of increased 26%, compared to fiscal year 2016. Audio-PC & Wearables During fiscal year 2017, retail sales of increase was primarily driven by strong sales of our HD Pro Webcam C920, in addition to the introduction of the the introduction to in addition C920, Webcam our HD Pro sales of strong driven by primarily was increase Stream Webcam. C922 Pro Accessories & Other Tablet devices. accessories for mobile as other cases, and Rugged Slim Folio, Slim Combo keyboard driven by the introduction of The increase was primarily 2017. keyboard cases. Type+ in sales of Create and by a decrease case, partially offset Combo keyboard Create by sales of the shipments, partially offset reflects the declining market for iPad The sales decrease 2016. of fiscal its introduction in September Pro for the full fiscal year 2017 following Keyboard Case for the iPad Tablet year 2016. Collaboration market: Video Collaboration Video user groups. products that can connect any size continued of MeetUp and PTZ Pro 2 video conference cameras and increase was primarily due to the introductions webcams. camera, in addition to strong sales for C930e and Brio 4K Pro success of the Logitech Group conference PTZ Pro video conference camera. by a decrease in sales for the The sales increase was partially offset success of the Logitech Group conference camera. increase was primarily due to the continued Music market: Mobile Speakers the to the increased sales from the Ultimate Ears WONDERBOOM and Speaker sales increased primarily due both released in the third quarter of fiscal which were and MEGABLAST, introduction of the Ultimate Ears BLAST Ultimate Ears BOOM 2, Ultimate Ears MEGABOOM, and by the decreases in sales of the year 2018, partially offset 2. Ultimate Ears ROLL 2 for the full fiscal year 2017 following Speaker sales increased primarily due to sales of the Ultimate Ears BOOM success of the Ultimate Ears its launch in the second quarter of fiscal year 2016 as well as the continued MEGABOOM. Audio-PC & Wearables wireless audio wearables. X3 earbuds, in addition to the The increase was primarily driven by the continued success of the Jaybird by the fiscal year 2018, partially offset introduction of the Jaybird RUN earbuds launched in the third quarter of by a decline in was partially offset decrease in the sales of the Jaybird Freedom F5 earbuds. Jaybird growth desktop speakers. and the Jaybird X2 earbuds resulting from The increase was primarily driven by the Jaybird Freedom F5 earbuds Acquisitions" to the in the first quarter of fiscal year 2017 (see Note 3 - "Business Acquisition the Jaybird 2016 2017 vs. Change 2017 2018 vs. 2,570 (67) (50) 59,075 36 11 103,886 40 (26) 2016 1,295 480,312107,087 430,190127,009 98,641301,021246,390 89,322314,362 4 229,718 5 196,013 245,101 12 44 5 9 2 57 42 31 26 28 2017 $ 501,562 $ 492,543 3% 2% $ 2,221,427 $ 1,947,059 16 14 13 14 Years Ended March 31, Years 433 89,373 65,510 516,637 498,472 112,147 107,942182,717 314,817 252,330 76,879 491,995 2018 2,566,863 $ $ (1) because they are no longer strategic to our business. because they are no longer strategic Net retail sales by product categories for fiscal years categories for fiscal sales by product Net retail 2018, 2017 and in as follows (Dollars 2016 were Our Pointing Devices category comprises PC and Mac-related mice, touchpads and presenters. Our Pointing Devices category comprises During fiscal year 2018, retail sales of Pointing Devices increased 3%, to fiscal year in comparison 2017. of Pointing Devices increased During fiscal year 2017, retail sales 2%, to fiscal year 2016. in comparison keyboards and keyboard/mice Our Keyboards & Combos category comprises PC keyboards, living room The During fiscal year 2018, retail sales of Keyboards & Combos increased 4%, compared to fiscal year 2017. During fiscal year 2017, retail sales of Keyboards & Combos increased 12%, compared to fiscal year 2016. category comprises PC-based webcams targeted primarily at consumers. Our PC Webcams The increased 5%, compared to fiscal year 2017. During fiscal year 2018, retail sales of PC Webcams (1) out of which we currently intend to transition, or have already transitioned Other category includes products Keyboards & Combos PC Webcams Accessories & Other Tablet Collaboration Video Mobile Speakers Audio-PC & Wearables Gaming Smart Home Other Pointing Devices Total Net Retail Sales Total

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 15 14 During fiscal year 2017, retail sales of PC Webcams increased 9%, compared to fiscal year 2016. The The increased 9%, 2016. year to fiscal compared Webcams of PC retail sales 2017, fiscal year During as well and smartphones covers for tablets keyboards and category comprises Accessories & Other Tablet Our Accessories increased to fiscal year 40%, compared & Other Tablet During fiscal year 2018, retail sales of Accessories decreased to fiscal year 26%, compared & Other Tablet 2017, retail sales of During fiscal year products which combine audio and video and other Collaboration category primarily includes Our Video The Collaboration increased 44%, compared to fiscal year 2017. During fiscal year 2018, retail sales of Video The Collaboration increased 42%, compared to fiscal year 2016. of Video During fiscal year 2017, retail sales up entirely of wireless Bluetooth and Wi-Fi speakers. Our Mobile Speakers category is made During fiscal year 2018, retail sales of Mobile Speakers increased 5%, to fiscal year 2017. compared Mobile During fiscal year 2017, retail sales of Mobile Speakers increased 31%, compared to fiscal year 2016. Mobile and premium category comprises PC speakers, PC headsets, in-ear headphones & Wearables Audio-PC Our increased 2%, compared to fiscal year 2017. Audio-PC & Wearables During fiscal year 2018, retail sales of increased 26%, compared to fiscal year 2016. Audio-PC & Wearables During fiscal year 2017, retail sales of increase was primarily driven by strong sales of our HD Pro Webcam C920, in addition to the introduction of the the introduction to in addition C920, Webcam our HD Pro sales of strong driven by primarily was increase Stream Webcam. C922 Pro Accessories & Other Tablet devices. accessories for mobile as other cases, and Rugged Slim Folio, Slim Combo keyboard driven by the introduction of The increase was primarily 2017. keyboard cases. Type+ in sales of Create and by a decrease case, partially offset Combo keyboard Create by sales of the shipments, partially offset reflects the declining market for iPad The sales decrease 2016. of fiscal its introduction in September Pro for the full fiscal year 2017 following Keyboard Case for the iPad Tablet year 2016. Collaboration market: Video Collaboration Video user groups. products that can connect any size continued of MeetUp and PTZ Pro 2 video conference cameras and increase was primarily due to the introductions webcams. camera, in addition to strong sales for C930e and Brio 4K Pro success of the Logitech Group conference PTZ Pro video conference camera. by a decrease in sales for the The sales increase was partially offset success of the Logitech Group conference camera. increase was primarily due to the continued Music market: Mobile Speakers the to the increased sales from the Ultimate Ears WONDERBOOM and Speaker sales increased primarily due both released in the third quarter of fiscal which were and MEGABLAST, introduction of the Ultimate Ears BLAST Ultimate Ears BOOM 2, Ultimate Ears MEGABOOM, and by the decreases in sales of the year 2018, partially offset 2. Ultimate Ears ROLL 2 for the full fiscal year 2017 following Speaker sales increased primarily due to sales of the Ultimate Ears BOOM success of the Ultimate Ears its launch in the second quarter of fiscal year 2016 as well as the continued MEGABOOM. Audio-PC & Wearables wireless audio wearables. X3 earbuds, in addition to the The increase was primarily driven by the continued success of the Jaybird by the fiscal year 2018, partially offset introduction of the Jaybird RUN earbuds launched in the third quarter of by a decline in was partially offset decrease in the sales of the Jaybird Freedom F5 earbuds. Jaybird growth desktop speakers. and the Jaybird X2 earbuds resulting from The increase was primarily driven by the Jaybird Freedom F5 earbuds Acquisitions" to the in the first quarter of fiscal year 2017 (see Note 3 - "Business Acquisition the Jaybird 2016 2017 vs. Change 2017 2018 vs. 2,570 (67) (50) 59,075 36 11 103,886 40 (26) 2016 1,295 480,312107,087 430,190127,009 98,641301,021246,390 89,322314,362 4 229,718 5 196,013 245,101 12 44 5 9 2 57 42 31 26 28 2017 $ 501,562 $ 492,543 3% 2% $ 2,221,427 $ 1,947,059 16 14 13 Years Ended March 31, Years 433 89,373 65,510 516,637 498,472 112,147 107,942182,717 314,817 252,330 76,879 491,995 2018 2,566,863 $ $ (1) because they are no longer strategic to our business. because they are no longer strategic Net retail sales by product categories for fiscal years categories for fiscal sales by product Net retail 2018, 2017 and in as follows (Dollars 2016 were Our Pointing Devices category comprises PC and Mac-related mice, touchpads and presenters. Our Pointing Devices category comprises During fiscal year 2018, retail sales of Pointing Devices increased 3%, to fiscal year in comparison 2017. of Pointing Devices increased During fiscal year 2017, retail sales 2%, to fiscal year 2016. in comparison keyboards and keyboard/mice Our Keyboards & Combos category comprises PC keyboards, living room The During fiscal year 2018, retail sales of Keyboards & Combos increased 4%, compared to fiscal year 2017. During fiscal year 2017, retail sales of Keyboards & Combos increased 12%, compared to fiscal year 2016. category comprises PC-based webcams targeted primarily at consumers. Our PC Webcams The increased 5%, compared to fiscal year 2017. During fiscal year 2018, retail sales of PC Webcams (1) out of which we currently intend to transition, or have already transitioned Other category includes products Pointing Devices Keyboards & Combos PC Webcams Accessories & Other Tablet Collaboration Video Mobile Speakers Audio-PC & Wearables Gaming Smart Home Other Net Retail Sales Total

Net Retail Sales by Product Categories by Product Sales Net Retail thousands): Retail Sales by Product Categories: Creativity & Productivity market: Pointing Devices by the decrease in the trackball and presentation tools, were partially offset Increases in sales of cordless mice, sales of corded mice. by the decrease in the corded mice and other pointing devices were offset Increases in sales of presentation tools, sales of cordless mice. Keyboards & Combos combo products. keyboard and increased sales of our sales increase was primarily driven by the introduction of Craft cordless the decreases in sales of the MK710 wireless combo and K400 MK270 and MK235 wireless combo, partially offset Plus wireless keyboard. Plus wireless keyboard and MK270 The sales increase was primarily driven by the strong sales of our K400 year 2017 following its launch in the wireless combo, in addition to sales of our MK235 Combo for the full fiscal fourth quarter of fiscal year 2016. PC Webcams by the decrease in partially offset Pro Stream Webcam, increase was primarily driven by strong sales of our 1080P C525. C920 and HD Webcam the sales of the HD Pro Webcam — 984 2016 23 17,802 2017 Years Ended March 31, Years — % — % 0.9% 0.3 % 0.3 % —% 5.6 %3.8 % 5.9 % 4.5 % 5.6% 5.0% (0.2)% (0.4)% —% 26.5 % 27.4 % 27.4% 17.0 % 17.1 % 15.8% (116) 8,930 5,814 2018 (4,908) (8,092) 96,353 100,270 101,012 143,760 130,525 113,176 $ 679,508 $ 608,181 $ 551,989 $ 435,489 $ 379,641 $ 319,015 16 Operating expenses for fiscal years expenses for fiscal Operating 20172018, 2016 and in thousands): as follows (Dollars were The increase in total operating expenses during fiscal year 2018, compared to fiscal year 2017, was mainly during fiscal year 2018, compared to fiscal year 2017, was mainly The increase in total operating expenses during fiscal year 2017, compared to fiscal year 2016, was mainly The increase in total operating expenses costs, corporate and product Marketing and selling expenses consist of personnel and related overhead During fiscal year 2018, marketing and selling expenses increased $55.8 million, compared to fiscal year 2017. million, compared to fiscal year 2016. During fiscal year 2017, marketing and selling expenses increased $60.6 % of net sales Total operating expenses Total % of net sales % of net sales % of net sales % of net sales % of net sales % of net sales Restructuring charges (credits), net Change in fair value of contingent consideration for business Change in fair value of contingent consideration acquisition Marketing and selling Research and development General and administrative costs assets and acquisition-related Amortization of intangible

due to increases in marketing and selling expenses, research and development expenses, amortization of expenses, research and development expenses, amortization of due to increases in marketing and selling and a lower credit from the change in fair value of contingent intangibles from the business acquisitions, and administrative expenses. by the decrease in general partially offset consideration for business acquisition, expenses, research and development expenses, amortization of due to increases in marketing and selling in restructuring charges and a by the decrease acquisitions, partially offset intangible assets from the business of contingent consideration for business acquisition. credit from the change in fair value Marketing and Selling support and facilities costs. marketing, promotions, advertising, trade shows, customer and technical costs due to increased headcount The increase was primarily driven by $23.2 million higher personnel-related our increased advertising and marketing during the last twelve months to expand our marketing team to support there Additionally, Acquisition. ASTRO our products, including the increased headcount resulting from the for efforts was a $30.2 million increase in expenses for external advertising and marketing. costs due to increased headcount The increase was primarily driven by $43.8 million higher personnel-related for our and marketing efforts during fiscal year 2017 to expand our marketing team to support the advertising Acquisition, and Acquisition and Saitek products, including the increased headcount resulting from the Jaybird there was a Additionally, fiscal year 2017. increased variable compensation linked to stronger performance during $18.4 million increase in expenses for external advertising and marketing. efficiencies, partially offset by an increase of promotions, unfavorable currency exchange rates, and amortization of and amortization rates, exchange currency unfavorable of promotions, increase by an offset partially efficiencies, acquisitions. business from on inventory effect accounting purchase and assets intangible Expenses Operating 2016 2017 Years Ended March 31, Ended Years 35.4% 36.9% 33.7% 2018 $2,566,863$ $2,221,427 909,241 $2,018,100 $ 820,041 $ 681,047 15 16 Gross profit for fiscal years 2018,2017 and 2016 (Dollars in thousands): was as follows Gross profit consists of net sales, less cost of goods sold (which includes materials, direct labor and related Gross profit consists of net sales, less cost of goods sold (which includes Gross margin decreased by 150 basis points to 35.4% during fiscal year 2018, compared to fiscal year 2017. 2017, compared to fiscal year 2016. Gross margin increased by 320 basis points to 36.9% during fiscal year Our Gaming category comprises gaming mice, keyboards, headsets, gamepads, steering wheels, Saitek steering wheels, gamepads, keyboards, headsets, gaming mice, category comprises Our Gaming During fiscal year 2018, increased retail sales of Gaming 57%, compared to fiscal year in 2017. Growth The increase 2017, retail sales of Gaming increased During fiscal year 2016. 28%, compared to fiscal year our Harmony line of advanced home entertainment controllers, new Our Smart Home category includes The During fiscal year 2018, retail sales of Smart Home increased to fiscal year 2017.36%, compared The fiscal year 2016. compared to of Smart Home increased During fiscal year 2017, retail sales 11%, Net sales Gross profit Gross margin

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 — 984 2016 23 17,802 2017 Years Ended March 31, Years — % — % 0.9% 0.3 % 0.3 % —% 5.6 %3.8 % 5.9 % 4.5 % 5.6% 5.0% (0.2)% (0.4)% —% 26.5 % 27.4 % 27.4% 17.0 % 17.1 % 15.8% (116) 8,930 5,814 2018 (4,908) (8,092) 96,353 100,270 101,012 143,760 130,525 113,176 $ 679,508 $ 608,181 $ 551,989 $ 435,489 $ 379,641 $ 319,015 17 16 Operating expenses for fiscal years expenses for fiscal Operating 20172018, 2016 and in thousands): as follows (Dollars were The increase in total operating expenses during fiscal year 2018, compared to fiscal year 2017, was mainly during fiscal year 2018, compared to fiscal year 2017, was mainly The increase in total operating expenses during fiscal year 2017, compared to fiscal year 2016, was mainly The increase in total operating expenses costs, corporate and product Marketing and selling expenses consist of personnel and related overhead During fiscal year 2018, marketing and selling expenses increased $55.8 million, compared to fiscal year 2017. million, compared to fiscal year 2016. During fiscal year 2017, marketing and selling expenses increased $60.6 % of net sales % of net sales % of net sales % of net sales operating expenses Total % of net sales % of net sales % of net sales Change in fair value of contingent consideration for business Change in fair value of contingent consideration acquisition Restructuring charges (credits), net Marketing and selling Research and development General and administrative costs assets and acquisition-related Amortization of intangible

due to increases in marketing and selling expenses, research and development expenses, amortization of expenses, research and development expenses, amortization of due to increases in marketing and selling and a lower credit from the change in fair value of contingent intangibles from the business acquisitions, and administrative expenses. by the decrease in general partially offset consideration for business acquisition, expenses, research and development expenses, amortization of due to increases in marketing and selling in restructuring charges and a by the decrease acquisitions, partially offset intangible assets from the business of contingent consideration for business acquisition. credit from the change in fair value Marketing and Selling support and facilities costs. marketing, promotions, advertising, trade shows, customer and technical costs due to increased headcount The increase was primarily driven by $23.2 million higher personnel-related our increased advertising and marketing during the last twelve months to expand our marketing team to support there Additionally, Acquisition. ASTRO our products, including the increased headcount resulting from the for efforts was a $30.2 million increase in expenses for external advertising and marketing. costs due to increased headcount The increase was primarily driven by $43.8 million higher personnel-related for our and marketing efforts during fiscal year 2017 to expand our marketing team to support the advertising Acquisition, and Acquisition and Saitek products, including the increased headcount resulting from the Jaybird there was a Additionally, fiscal year 2017. increased variable compensation linked to stronger performance during $18.4 million increase in expenses for external advertising and marketing. efficiencies, partially offset by an increase of promotions, unfavorable currency exchange rates, and amortization of and amortization rates, exchange currency unfavorable of promotions, increase by an offset partially efficiencies, acquisitions. business from on inventory effect accounting purchase and assets intangible Expenses Operating 2016 2017 Years Ended March 31, Ended Years 35.4% 36.9% 33.7% 2018 $2,566,863$ $2,221,427 909,241 $2,018,100 $ 820,041 $ 681,047 15 Gross profit for fiscal years 2018,2017 and 2016 (Dollars in thousands): was as follows Gross margin decreased by 150 basis points to 35.4% during fiscal year 2018, compared to fiscal year 2017. 2017, compared to fiscal year 2016. Gross margin increased by 320 basis points to 36.9% during fiscal year Gross profit consists of net sales, less cost of goods sold (which includes materials, direct labor and related Gross profit consists of net sales, less cost of goods sold (which includes Our Gaming category comprises gaming mice, keyboards, headsets, gamepads, steering wheels, Saitek steering wheels, gamepads, keyboards, headsets, gaming mice, category comprises Our Gaming During fiscal year 2018, increased retail sales of Gaming 57%, compared to fiscal year in 2017. Growth The increase 2017, retail sales of Gaming increased During fiscal year 2016. 28%, compared to fiscal year our Harmony line of advanced home entertainment controllers, new Our Smart Home category includes The During fiscal year 2018, retail sales of Smart Home increased to fiscal year 2017.36%, compared The fiscal year 2016. compared to of Smart Home increased During fiscal year 2017, retail sales 11%, Net sales Gross profit Gross margin

overhead costs, costs of manufacturing facilities, royalties, costs of purchasing components from outside suppliers, overhead costs, costs of manufacturing facilities, royalties, costs of purchasing costs, outside processing costs and distribution costs, warranty costs, customer support, shipping and handling on inventory. accounting effect write-down of inventories), amortization of intangible assets and purchase The decrease and incentive and marketing in gross margin was primarily driven by increases in pricing programs America in the third quarter of fiscal North activities, additional costs from the transition of the distribution center in by product cost reductions and favorable currency exchange rates. In year 2018, and product mix, partially offset due to a change in estimated breakage addition, in fiscal year 2017, we recorded a benefit of $14.4 million primarily accruals in EMEA. attributable to customer incentive, cooperative marketing and pricing program our exit from the OEM business in The increase in gross margin was primarily driven by product cost reductions, estimated breakage attributable to customer fiscal year 2016, a benefit of $14.4 million primarily due to a change in as well as greater supply chain incentive, cooperative marketing and pricing program accruals in EMEA, consolidated financial statements) and X3 Sport Bluetooth earbuds launched in the third quarter of fiscal year 2017. year of fiscal third quarter in the launched earbuds Bluetooth Sport and X3 statements) financial consolidated headsets. and PC speakers of our a decline by offset partially growth was The market: Gaming Gaming ASTRO console gaming headsets. and simulation controllers Force the sales increase of the G29 Driving Acquisition, ASTRO especially driven by the Gaming was broad-based, the introduction of the mouse, the G203 gaming mouse and G502 Proteus Spectrum gaming steering wheel, the ASTRO contributed $54.1 million to net sales. For fiscal year G903 gaming mouse. 2018, G900 Chaos G502 Proteus Spectrum gaming mouse, by the continued success of our was primarily driven Orion Spectrum RGB mechanical gaming headset and G910 Artemis Spectrum mouse, G933 Spectrum gaming gaming keyboard. Smart Home market: Smart Home categories of connected smart home devices such as lighting, products dedicated to controlling emerging security camera. thermostats and door locks, and home addition of our Circle 2 wired and wireless home security cameras, in increase was primarily due to the introduction by the sales decrease of Harmony 650 Elite remote, partially offset to our continued success for our Harmony Harmony Hub products balanced against a decline in the saw strong demand for our voice-enabled remote. We traditional universal remote market. success of our Harmony Elite remote. increase was primarily due to the continued Gross Profit — 23 735 (116) (619) (5,320) 17,802 2016 Total 165 (122) — $— $ 954 6,032 — — — — — — $ 185 (185) (12,724) 2017 Other Years Ended March 31, Years 790 (4,613) 169 2,110 — — — — — $ 2018 337 (125) $ (2,437) $ 1,677 $ 1,624 Costs Lease Exit Restructuring - Continuing Operations - Continuing Restructuring — $ 954 $ — $ 23 18 735 (619) (116) (5,195) 17,280 (11,373) (1,166) Benefits Termination Investment income (loss) related to a deferred compensation plan for fiscal years 2018, 2017 and 2016 The following table summarizes restructuring-related activities during the fiscal years during the fiscal activities restructuring-related table summarizes The following 20172018, 2016 and Other income and expense for fiscal years Other income and expense for fiscal 2018, 2016 2017 and as follows (in thousands): were During the first quarter of fiscal year 2016, we implemented a restructuring plan to exit the OEM business, 2016, we implemented a restructuring plan to exit the OEM business, During the first quarter of fiscal year the Lifesize video conferencing business as reported in discontinued On a total company basis, including Charges, net Cash payments Charges, net Cash payments Cash payments Credits, net Investment income (loss) related to a deferred compensation planCurrency exchange gain (loss), net $Other 1,386 $ 1,343 $ (364) Total Accrual balance at March 31, 2015Accrual balance at $ March 31, 2016Accrual balance at $ 5,907 $ 125 $

Accrual balance at March 31, 2018 $ Accrual balance at March 31, 2017 Accrual balance at represents earnings, gains, and losses on trading investments related to a deferred compensation plan offered by to a deferred compensation plan offered represents earnings, gains, and losses on trading investments related one of our subsidiaries. in currencies other than the functional Currency exchange gains or losses relate to balances denominated gains or losses recognized on foreign currency in our subsidiaries, as well as to the sale of currencies, and to do not speculate in currency positions, but we are alert to opportunities to currency exchange forward contracts. We maximize currency exchange gains and minimize currency exchange losses. Restructuring Charges (Credits) Charges Restructuring (in thousands): operations from continuing reorganize Lifesize to sharpen its focus on its cloud-based offering, and streamline our overall cost structure, and streamline on its cloud-based offering, reorganize Lifesize to sharpen its focus charges cost reductions with a targeted resource realignment. Restructuring including overhead and infrastructure of severance and other ongoing and one-time termination benefits. incurred under this plan primarily consisted the workforce reduction and structure realignment are presented as restructuring Charges and other costs related to completed this restructuring plan by the substantially of operations. We charges in the consolidated statements fourth quarter of fiscal year 2016. operations, we have incurred $25.4 million including under this restructuring plan, $24.3 million severance for cash and other personnel costs. Other Income (Expense), Net 2016 2017 Years Ended March 31, Years 1,412 1,462 536 2018 $ 7,518$ $ 8,930 4,352 $ $ 5,814 448 $ 984 17 18 In October 2017, Logitech and the sellers of Jaybird entered into an agreement fully, irrevocably and fully, In October 2017, Logitech and the sellers of Jaybird entered into an agreement Amortization of intangible assets consists of amortization of acquired intangible assets including customer Amortization of intangible assets consists of amortization of acquired intangible The increase in amortization of intangible assets from fiscal year 2017 to 2018 was primarily driven by the 2018 and 2017 is primarily due to The change in fair value of contingent consideration during fiscal years Research and development expenses consist of personnel and related overhead costs for contractors and costs for contractors related overhead of personnel and expenses consist and development Research year During fiscal 2018, expenses increased and development research $13.2 million, year compared to fiscal to fiscal year increased $17.3 million, compared 2017, research and development expenses During fiscal year and facilities costs of personnel and related overhead expenses consist primarily General and administrative During fiscal year 2018, general and administrative expenses decreased$3.9 million, to fiscal year compared administrative expenses decreased $0.7 million, compared to fiscal year During fiscal year 2017, general and in operating expense and acquisition-related costs during fiscal years Amortization of intangibles included

Acquisition-related costs Total Amortization of intangible assets relationships and trade names. Acquisition-related costs include legal expense, due diligence costs, and other relationships and trade names. professional costs incurred for business acquisitions. 2017 was driven by The increase in amortization of intangible assets from fiscal year 2016 to Acquisition. ASTRO the Jaybird and Saitek acquisitions. Acquisition of Contingent Consideration for Business Change in Fair Value net sales of Jaybird products during the lower-than-expected net sales of Jaybird products, and revised projected product portfolio and changes in the remaining earn-out period, primarily driven by supply constraints, an evolving statements). Measurement" to the consolidated financial competitive target market (see "Note 10 – Fair Value in exchange for $5.0 million in cash. We unconditionally releasing Logitech from the earn-out rights and payments activities on our consolidated paid the $5.0 million in November 2017 and included the same as financing statements of cash flows. Research and Development and Research with the costs, all associated and facilities equipment depreciation and materials, supplies outside consultants, of existing products. enhancements new products and development of design and and of new products for the development costs by higher personnel-related was primarily driven The increase 2017. from business acquisitions. increased headcount of new personnel-related costs for the development driven by $13.9 million higher The increase was primarily 2016. linked to stronger and increased variable compensation headcount from business acquisitions, products, increased fiscal year 2017. performance during Administrative General and resources and legal functions. systems, executives, human for the finance, information million reduction related to external expenses mainly consulting The decrease was primarily due to a $6.8 2017. costs. by a $2.6 million increase in personnel-related expense, partially offset million reduction related to the prior year's accrual for our The decrease was primarily due to a $3.5 2016. by a $6.1 million decrease in information technology costs, partially offset settlement with the SEC and a $3.1 costs largely driven by higher variable compensation linked to stronger million increase in personnel-related performance during the fiscal year 2017. Acquisition-Related Costs Amortization of Intangibles and 2018,2017 and 2016 were as follows (in thousands):

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 — 23 735 (116) (619) (5,320) 17,802 2016 Total 165 (122) — $ 954 — $— 6,032 — — — — — $ 185 (185) (12,724) 2017 Other Years Ended March 31, Years 790 (4,613) 169 2,110 — — — — — $ 2018 337 (125) $ (2,437) $ 1,677 $ 1,624 Costs Lease Exit Restructuring - Continuing Operations - Continuing Restructuring 19 — $ 954 $ — $ 23 18 735 (116) (619) (5,195) 17,280 (11,373) (1,166) Benefits Termination Investment income (loss) related to a deferred compensation plan for fiscal years 2018, 2017 and 2016 The following table summarizes restructuring-related activities during the fiscal years during the fiscal activities restructuring-related table summarizes The following 20172018, 2016 and Other income and expense for fiscal years Other income and expense for fiscal 2018, 2016 2017 and as follows (in thousands): were During the first quarter of fiscal year 2016, we implemented a restructuring plan to exit the OEM business, 2016, we implemented a restructuring plan to exit the OEM business, During the first quarter of fiscal year the Lifesize video conferencing business as reported in discontinued On a total company basis, including Charges, net Cash payments Charges, net Cash payments

Credits, net Cash payments Accrual balance at March 31, 2015Accrual balance at $

Investment income (loss) related to a deferred compensation planCurrency exchange gain (loss), net $ 1,386 $ 1,343 $ (364) Accrual balance at March 31, 2016Accrual balance at $ March 31, 2017 Accrual balance at 5,907 $ 125 $ Other Total

Accrual balance at March 31, 2018 $ represents earnings, gains, and losses on trading investments related to a deferred compensation plan offered by to a deferred compensation plan offered represents earnings, gains, and losses on trading investments related one of our subsidiaries. in currencies other than the functional Currency exchange gains or losses relate to balances denominated gains or losses recognized on foreign currency in our subsidiaries, as well as to the sale of currencies, and to do not speculate in currency positions, but we are alert to opportunities to currency exchange forward contracts. We maximize currency exchange gains and minimize currency exchange losses. Restructuring Charges (Credits) Charges Restructuring (in thousands): operations from continuing reorganize Lifesize to sharpen its focus on its cloud-based offering, and streamline our overall cost structure, and streamline on its cloud-based offering, reorganize Lifesize to sharpen its focus charges cost reductions with a targeted resource realignment. Restructuring including overhead and infrastructure of severance and other ongoing and one-time termination benefits. incurred under this plan primarily consisted the workforce reduction and structure realignment are presented as restructuring Charges and other costs related to completed this restructuring plan by the substantially of operations. We charges in the consolidated statements fourth quarter of fiscal year 2016. operations, we have incurred $25.4 million including under this restructuring plan, $24.3 million severance for cash and other personnel costs. Other Income (Expense), Net 2016 2017 Years Ended March 31, Years 1,412 1,462 536 2018 $ 7,518$ $ 8,930 4,352 $ $ 5,814 448 $ 984 17 In October 2017, Logitech and the sellers of Jaybird entered into an agreement fully, irrevocably and fully, In October 2017, Logitech and the sellers of Jaybird entered into an agreement Research and development expenses consist of personnel and related overhead costs for contractors and costs for contractors related overhead of personnel and expenses consist and development Research year During fiscal 2018, expenses increased and development research $13.2 million, year compared to fiscal to fiscal year increased $17.3 million, compared 2017, research and development expenses During fiscal year and facilities costs of personnel and related overhead expenses consist primarily General and administrative During fiscal year 2018, general and administrative expenses decreased$3.9 million, to fiscal year compared administrative expenses decreased $0.7 million, compared to fiscal year During fiscal year 2017, general and in operating expense and acquisition-related costs during fiscal years Amortization of intangibles included assets including customer Amortization of intangible assets consists of amortization of acquired intangible The increase in amortization of intangible assets from fiscal year 2017 to 2018 was primarily driven by the 2018 and 2017 is primarily due to The change in fair value of contingent consideration during fiscal years

Amortization of intangible assets Acquisition-related costs Total Research and Development and Research with the costs, all associated and facilities equipment depreciation and materials, supplies outside consultants, of existing products. enhancements new products and development of design and and of new products for the development costs by higher personnel-related was primarily driven The increase 2017. from business acquisitions. increased headcount of new personnel-related costs for the development driven by $13.9 million higher The increase was primarily 2016. linked to stronger and increased variable compensation headcount from business acquisitions, products, increased fiscal year 2017. performance during Administrative General and resources and legal functions. systems, executives, human for the finance, information million reduction related to external expenses mainly consulting The decrease was primarily due to a $6.8 2017. costs. by a $2.6 million increase in personnel-related expense, partially offset million reduction related to the prior year's accrual for our The decrease was primarily due to a $3.5 2016. by a $6.1 million decrease in information technology costs, partially offset settlement with the SEC and a $3.1 costs largely driven by higher variable compensation linked to stronger million increase in personnel-related performance during the fiscal year 2017. Acquisition-Related Costs Amortization of Intangibles and 2018,2017 and 2016 were as follows (in thousands): Acquisition-related costs include legal expense, due diligence costs, and other relationships and trade names. professional costs incurred for business acquisitions. 2017 was driven by The increase in amortization of intangible assets from fiscal year 2016 to Acquisition. ASTRO the Jaybird and Saitek acquisitions. Acquisition of Contingent Consideration for Business Change in Fair Value net sales of Jaybird products during the lower-than-expected net sales of Jaybird products, and revised projected product portfolio and changes in the remaining earn-out period, primarily driven by supply constraints, an evolving statements). Measurement" to the consolidated financial competitive target market (see "Note 10 – Fair Value in exchange for $5.0 million in cash. We unconditionally releasing Logitech from the earn-out rights and payments activities on our consolidated paid the $5.0 million in November 2017 and included the same as financing statements of cash flows. 30 75 5.0 2016 33 79 4.9 2017 March 31, 33 70 5.9 2018 $ 214,885$ $ 293,988$ 185,179 $ 259,906 $ 274,805 $ 142,778 $ 253,401 241,166 $ 228,786 The increase in accounts payable was primarily

20 (2) (1) (3) for the most recent quarter. sold for the most recent quarter. recent quarterly cost of goods sold). During fiscal year 2018, we generated $346.3 million Our main sources of in cash from operating activities. Net cash used in investing activities was $128.7 million, primarily due to $88.3 million of the purchase price Net cash used in financing activities was $127.9 million, primarily for the $104.2 million cash dividends paid We had several uncommitted, unsecured bank lines of credit aggregating to to aggregating of credit bank lines unsecured uncommitted, had several million$84.5 31, of March as We years statistics for fiscal information and selected financial table presents The following 2017 and 2018, 2016 DSO as of March 31, 2018 remained consistent, compared to March 31, 2017. DSO as of March 31, 2017 consistent, compared to March 31, 2017. DSO as of March 31, 2017 DSO as of March 31, 2018 remained of nine days, compared to March 31, 2017, primarily due to the timing DPO as of March 31, 2018 decreased as of March 31, to March 31, 2017 due to higher sales. ITO as of March 31, 2018 was higher compared ITO and phasing in our new products launched during the current fiscal year, If we are not successful in launching plant and equipment during fiscal years 2018, 2017 and 2016 were primarily for Our expenditures for property, (1) accounts receivable, net as of the most recent quarter-end and net sales DSO is determined using ending (2) accounts payable as of the most recent quarter-end and cost of goods DPO is determined using ending (3) and the annualized cost of goods sold (based on the most is determined using ending inventories ITO

Accounts receivable, net Accounts receivable, Accounts payable Inventories receivable (DSO)(Days) Days sales in accounts outstanding (DPO) (Days) Days accounts payable (ITO)(x) Inventory turnover ______payments. March 31, 2016, primarily due to the timing of net sales and customer increased three days, compared to primarily of March 31, 2017 increased four days, compared to March 31, 2016, purchases and payments. DPO as timing of payments. due to increase in inventories and the to March 31, 2016. 2017 remained consistent compared at the prices planned, it could have a material impact on our revenue, or we are not able to sell the new products in the future. and inventory turnover including operating cash flow, gross profit margin, operating results expenses of depreciation, amortization, and operating cash flows were from net income after adding back non-cash The increase in accounts and liabilities. share-based compensation expense, and from changes in operating assets receivable, net was primarily driven by higher business volumes. of the The decrease in inventories net of effect driven by the timing of purchases and the timing of payments. The increase in accrued and other liabilities was acquisition was primarily driven by higher business volumes. customers. primarily due to higher promotions and marketing activities for our indirect plant, and equipment, and (net of cash acquired) for business acquisitions, $39.7 million of purchases of property, $1.2 million of investments in privately held companies. $30.7 million of our registered shares and repurchases $29.8 million tax withholdings related to net during the year, $41.9 million by in proceeds received from the sale of share settlements of restricted stock units, partially offset also paid $5.0 million for contingent consideration related shares upon exercise of options and purchase rights. We Acquisition. to the Jaybird improvements. tooling and equipment, computer hardware and software and leasehold 2018. There are no financial covenants under these lines of credit with which we must comply. As of March 31, of March As comply. we must with which of credit lines under these covenants are no financial There 2018. 2018, of bank guarantees we had outstanding million$49.8 lines of credit. under these thousands): (Dollars in 2016 2017 Years Ended March 31, Years 10.2% 4.2% 2.4% 2018 $ 23,723 $ 9,113 $ 3,110 19 20 At March 31, 2018, we had cash and cash equivalents of $641.9 million, compared with $547.5 million at At March 31, 2018, our working capital was $597.4 million, compared with working capital of $520.8 million at The provision for income taxes and the effective income tax rate for fiscal years income tax rate 2018, 2017 and as 2016 were and the effective for income taxes The provision The changes in the effective income tax rate between fiscal years income tax 2018 and 2017 driven by were primarily effective The changes in the 2017,As of March 31, 2018 and March 31, total amounts of unrecognized tax benefits due to uncertain tax the millionAs of March 31, 2018, we had $35.0 income taxes payable, including interest and in non-current tax assessments in Switzerland through fiscal year received final file Swiss and foreign tax returns. We We The changes in the effective income tax rate between fiscal years income tax rate between fiscal 2017 and 2016 were primarily due to the mix The changes in the effective

Effective income tax rate Effective taxes Provision for income provisional impacts in fiscal year 2018 from the Tax Act that was signed into law in the United States on December in the United States on December Act that was signed into law Tax in fiscal year 2018 from the provisional impacts provisional income tax charge of recorded a $21.7 million of deferred tax from the remeasurement 22, 2017. We of the enacted of net of the release of valuation allowance assets and liabilities, $0.6 million to reflect the effects net of $13.4 million of excess tax benefits, recognized We income tax rate from 35% to 21%. reduction in corporate there was a tax benefit of ASU 2016-09. Furthermore, $8.3 million year 2018 after the adoption of shortfalls in fiscal of the statutes of tax positions resulting from the expiration related to the reversal of uncertain in fiscal year 2018 to limitations, compared million$15.4 fiscal year 2017. in benefit tax jurisdictions in which we operate. In fiscal year 2016, besides a tax of income and losses in the various of $16.1 million tax positions resulting from the expiration of the statutes of related to the reversal of uncertain limitations, there was a tax benefit of $2.2 million preferential income tax rate reduction pursuant to the from the Enterprise Program in China. Technology High and New rates if income tax the effective all of which would affect positions were $69.1 million and $63.7 million, respectively, recognized. March 31, 2017, we had $51.8 millionAs of in liability for uncertain tax positions. penalties, related to our income tax non-current income taxes payable and $1.5 milliontaxes payable, including interest and in current income interest and penalties related recognize liability for uncertain tax positions. We penalties, related to our income tax recognized $0.6 million, $0.7 million million and $0.3 in tax expense. We to unrecognized tax positions in income March 31, As of expense during fiscal years interest and penalties in income tax 20172018, 2016, and respectively. 2018,2017 and 2016, we had $2.3 million,$3.0 million and $3.6 millionand penalties related to of accrued interest uncertain tax positions, respectively. 2014. United States, we are generally not subject to tax examinations for For other foreign jurisdictions such as the are under examination and have received assessment notices in foreign tax years prior to fiscal year 2015. We there is a possibility they may have a material negative jurisdictions. If the examinations are resolved unfavorably, impact on our results of operations. Liquidity and Capital Resources Available Borrowings, and Capital Resources Cash Balances, March 31, 2017. and short-term time deposits of Our cash and cash equivalents consist of bank demand deposits is held in the UK and 10% is held in Hong Kong 11% which 54% is held in Switzerland, 19% is held in Germany, expect to incur any material adverse tax impact except for what has been recognized or be do not and China. We repatriation of funds to Switzerland, our significantly inhibited by any country in which we do business from the home domicile. The increase in working capital over fiscal year 2017 was primarily due to higher balances of cash March 31, 2017. by higher accounts payable partially offset and cash equivalents, accounts receivable, net and other current assets, and accrued and other current liabilities. Provision for Income Taxes Income for Provision thousands): follows (in

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 30 75 5.0 2016 33 79 4.9 2017 March 31, 33 70 5.9 2018 $ 214,885$ $ 293,988$ 185,179 $ 259,906 $ 274,805 $ 142,778 $ 253,401 241,166 $ 228,786 The increase in accounts payable was primarily

21 20 (2) (1) (3) for the most recent quarter. sold for the most recent quarter. recent quarterly cost of goods sold). Net cash used in investing activities was $128.7 million, primarily due to $88.3 million of the purchase price Net cash used in financing activities was $127.9 million, primarily for the $104.2 million cash dividends paid During fiscal year 2018, we generated $346.3 million Our main sources of in cash from operating activities. We had several uncommitted, unsecured bank lines of credit aggregating to to aggregating of credit bank lines unsecured uncommitted, had several million$84.5 31, of March as We years statistics for fiscal information and selected financial table presents The following 2017 and 2018, 2016 Our expenditures for property, plant and equipment during fiscal years 2018, 2017 and 2016 were primarily for Our expenditures for property, DSO as of March 31, 2018 remained consistent, compared to March 31, 2017. DSO as of March 31, 2017 consistent, compared to March 31, 2017. DSO as of March 31, 2017 DSO as of March 31, 2018 remained of nine days, compared to March 31, 2017, primarily due to the timing DPO as of March 31, 2018 decreased as of March 31, to March 31, 2017 due to higher sales. ITO as of March 31, 2018 was higher compared ITO and phasing in our new products launched during the current fiscal year, If we are not successful in launching (1) accounts receivable, net as of the most recent quarter-end and net sales DSO is determined using ending (2) accounts payable as of the most recent quarter-end and cost of goods DPO is determined using ending (3) and the annualized cost of goods sold (based on the most is determined using ending inventories ITO Days accounts payable outstanding (DPO) (Days) Days accounts payable (ITO)(x) Inventory turnover net Accounts receivable, Accounts payable Inventories receivable (DSO)(Days) Days sales in accounts

driven by the timing of purchases and the timing of payments. The decrease in inventories net of effect of the The decrease in inventories net of effect driven by the timing of purchases and the timing of payments. The increase in accrued and other liabilities was acquisition was primarily driven by higher business volumes. customers. primarily due to higher promotions and marketing activities for our indirect plant, and equipment, and (net of cash acquired) for business acquisitions, $39.7 million of purchases of property, $1.2 million of investments in privately held companies. $30.7 million of our registered shares and repurchases $29.8 million tax withholdings related to net during the year, $41.9 million by in proceeds received from the sale of share settlements of restricted stock units, partially offset also paid $5.0 million for contingent consideration related shares upon exercise of options and purchase rights. We Acquisition. to the Jaybird improvements. tooling and equipment, computer hardware and software and leasehold ______payments. March 31, 2016, primarily due to the timing of net sales and customer increased three days, compared to primarily of March 31, 2017 increased four days, compared to March 31, 2016, purchases and payments. DPO as timing of payments. due to increase in inventories and the to March 31, 2016. 2017 remained consistent compared at the prices planned, it could have a material impact on our revenue, or we are not able to sell the new products in the future. and inventory turnover including operating cash flow, gross profit margin, operating results expenses of depreciation, amortization, and operating cash flows were from net income after adding back non-cash The increase in accounts and liabilities. share-based compensation expense, and from changes in operating assets receivable, net was primarily driven by higher business volumes. 2018. There are no financial covenants under these lines of credit with which we must comply. As of March 31, of March As comply. we must with which of credit lines under these covenants are no financial There 2018. 2018, of bank guarantees we had outstanding million$49.8 lines of credit. under these thousands): (Dollars in 2016 2017 Years Ended March 31, Years 10.2% 4.2% 2.4% 2018 $ 23,723 $ 9,113 $ 3,110 19 At March 31, 2018, we had cash and cash equivalents of $641.9 million, compared with $547.5 million at At March 31, 2018, our working capital was $597.4 million, compared with working capital of $520.8 million at The provision for income taxes and the effective income tax rate for fiscal years income tax rate 2018, 2017 and as 2016 were and the effective for income taxes The provision As of March 31, 2018 and March 31, 2017,As of March 31, 2018 and March 31, total amounts of unrecognized tax benefits due to uncertain tax the millionAs of March 31, 2018, we had $35.0 income taxes payable, including interest and in non-current tax assessments in Switzerland through fiscal year received final file Swiss and foreign tax returns. We We The changes in the effective income tax rate between fiscal years income tax 2018 and 2017 driven by were primarily effective The changes in the The changes in the effective income tax rate between fiscal years income tax rate between fiscal 2017 and 2016 were primarily due to the mix The changes in the effective taxes Provision for income income tax rate Effective provisional impacts in fiscal year 2018 from the Tax Act that was signed into law in the United States on December in the United States on December Act that was signed into law Tax in fiscal year 2018 from the provisional impacts provisional income tax charge of recorded a $21.7 million of deferred tax from the remeasurement 22, 2017. We of the enacted of net of the release of valuation allowance assets and liabilities, $0.6 million to reflect the effects net of $13.4 million of excess tax benefits, recognized We income tax rate from 35% to 21%. reduction in corporate there was a tax benefit of ASU 2016-09. Furthermore, $8.3 million year 2018 after the adoption of shortfalls in fiscal of the statutes of tax positions resulting from the expiration related to the reversal of uncertain in fiscal year 2018 to limitations, compared million$15.4 fiscal year 2017. in benefit tax jurisdictions in which we operate. In fiscal year 2016, besides a tax of income and losses in the various of $16.1 million tax positions resulting from the expiration of the statutes of related to the reversal of uncertain limitations, there was a tax benefit of $2.2 million preferential income tax rate reduction pursuant to the from the Enterprise Program in China. Technology High and New rates if income tax the effective all of which would affect positions were $69.1 million and $63.7 million, respectively, recognized. March 31, 2017, we had $51.8 millionAs of in liability for uncertain tax positions. penalties, related to our income tax non-current income taxes payable and $1.5 milliontaxes payable, including interest and in current income interest and penalties related recognize liability for uncertain tax positions. We penalties, related to our income tax recognized $0.6 million, $0.7 million million and $0.3 in tax expense. We to unrecognized tax positions in income March 31, As of expense during fiscal years interest and penalties in income tax 20172018, 2016, and respectively. 2018,2017 and 2016, we had $2.3 million,$3.0 million and $3.6 millionand penalties related to of accrued interest uncertain tax positions, respectively. 2014. United States, we are generally not subject to tax examinations for For other foreign jurisdictions such as the are under examination and have received assessment notices in foreign tax years prior to fiscal year 2015. We there is a possibility they may have a material negative jurisdictions. If the examinations are resolved unfavorably, impact on our results of operations. Liquidity and Capital Resources Available Borrowings, and Capital Resources Cash Balances, March 31, 2017. and short-term time deposits of Our cash and cash equivalents consist of bank demand deposits is held in the UK and 10% is held in Hong Kong 11% which 54% is held in Switzerland, 19% is held in Germany, expect to incur any material adverse tax impact except for what has been recognized or be do not and China. We repatriation of funds to Switzerland, our significantly inhibited by any country in which we do business from the home domicile. The increase in working capital over fiscal year 2017 was primarily due to higher balances of cash March 31, 2017. by higher accounts payable partially offset and cash equivalents, accounts receivable, net and other current assets, and accrued and other current liabilities. Provision for Income Taxes Income for Provision thousands): follows (in * * * ——— 18,941 9,964 2,452 Payments Due by Period 22 $ 237,110 $ — $$ 265,550 $ — 18,941 $ $ 9,964 — $ 2,452 5,727 5,727 9,569 9,569 44,501 13,144 2018 <1 year 1-3 years 4-5 years years >5 237,110 296,907 March 31, $ As of March 31, 2018, we have non-cancelable purchase commitments of As of March 31, 2018, we have non-cancelable $237.1 million for inventory facilities under operating leases, certain of which require us to pay property taxes, insurance lease We As of March 31, 2018, we had $35.0 million and in non-current income taxes payable, including interest The following table summarizes our contractual obligations and commitments as of March 31, commitments as obligations and our contractual table summarizes The following 2018 (in contributions to be made to our defined benefit plans for the next year only. We fund our pension plans so that we meet We benefit plans for the next year only. contributions to be made to our defined as established by local government, funding and taxing authorities. at least the minimum contribution requirements, our defined benefit pension plans and non-retirement post-employment benefit Expected contributions and payments to the contractual obligations table because they are dependent on numerous plans beyond one year are excluded from outcomes and thus are impractical to estimate. For more information on our factors that may result in a wide range of post-employment benefit plans, see Note 6 to the Consolidated defined benefit pension plans and non-retirement incorporated herein by reference. Financial Statements in Item 8, which is * Expected contribution to employee benefit plan: Commitments under the retirement plans relate to expected * Expected contribution to employee Expected contribution to employee Expected contribution benefit plan obligations Operating leases commitmentsInventory purchase commitments Capital purchase $ Total Purchase Commitments of business to original design manufacturers, contract manufacturers purchases made in the normal course year which are expected to be fulfilled during the first two quarters of fiscal and other suppliers, the majority of and unhedged inventory purchase commitments in recorded a liability for firm, non-cancelable, 2019. We realizable value consistent with our valuation of excess and obsolete excess of anticipated demand or net commitments was As of March 31, 2018, the liability for these purchase million$12.6 and is inventory. firm have liabilities and is not included in the preceding table. We recorded in accrued and other current purchase commitments of $9.6 million primarily related to commitments for tooling, for capital expenditures, capital expenditures in the expect to continue making We computer hardware and leasehold improvements. open Although activities and ongoing and expanded operations. future to support product development the terms generally allow us the option purchase commitments are considered enforceable and legally binding, to delivery of goods. to reschedule and adjust our requirements based on business needs prior Leases Operating Obligation at our option and usually and maintenance costs. Operating leases for facilities are generally renewable The remaining terms of our non-cancelable operating leases include escalation clauses linked to inflation. expire in various years through 2030. Payable Income Taxes At this time, we are unable to make a penalties, related to our income tax liability for uncertain tax positions. in connection with these tax liabilities; reasonably reliable estimate of the timing of payments in individual years table. therefore, such amounts are not included in the above contractual obligation respectively. If we do not generate sufficient operating cash flows to support our operations and future planned cash cash future planned and operations support our flows to cash operating sufficient do not generate If we respectively. eliminated. or be restricted could facilities to credit our access and be harmed could our operations requirements, and of future operations our projections cash flow generation, of our historical that the trend we believe However, months. least the next 12 operations for at to fund our liquidity will provide sufficient cash balances our available Commitments and Obligations Contractual thousands): 21 22 Our principal sources of liquidity are our cash and cash equivalents, cash flow generated from operations and, our cash and cash equivalents, cash flow generated from operations Our principal sources of liquidity are million million ($115.7 recommended that the Company pay CHF110.7 In May 2018, the Board of Directors program, which authorizes the In March 2014, the Board of Directors approved the 2014 share buyback program, which authorizes us to invest In March 2017, our Board of Directors approved a new share buyback employee performance bonus plan Starting with fiscal year 2017, we changed the payment frequency of our described in the following sections. Our other contractual obligations and commitments that require cash are activities, including cash from For over ten years, we have generated positive cash flows from our operating Our expenditures for property, plant and equipment increased during fiscal year year during fiscal increased and equipment plant 2018, year to fiscal compared for property, expenditures Our ASTRO year during fiscal net of cash acquired, for acquisitions, Our payments 2018, primarily for the were $1.4 million. of discontinued operations were 2016, the net payments for the divestiture During fiscal year fiscal years sales of trading investments during The purchases and 2018, 2017 mutual and 2016 represent financing activities included in cash flows from realized from share-based compensation Excess tax benefit on cash and During fiscal year 2018,$4.7 million there was a exchange rate effect gain of currency translation 2017, primarily due to a higher amount of tooling purchases. Our expenditures for property, plant and equipment and equipment plant 2017, for property, Our expenditures tooling purchases. of amount to a higher due primarily purchases. amount of tooling due to a lower to fiscal year 2016, 2017, compared during fiscal year decreased statements). financial to the consolidated Acquisitions" 3 - Business (refer to "Note during the period Acquisition and Acquisition for the Jaybird year 2017, were during fiscal net of cash acquired, for acquisitions, Our payments financial to the consolidated Acquisitions" Business to "Note 3 - the period (refer Acquisition during the Saitek statements). The mutual by one of our subsidiaries. plan offered by participants in a deferred compensation fund activity directed Trust. a Rabbi funds are held by 2018 on a retrospective in the first quarter of our fiscal year in operating cash flows starting has been reclassified statements included in this to Note 2 to the consolidated financial ASU 2016-09. Refer basis when we adopted pronouncements adopted. Annual Report for recent accounting during fiscal year of cash equivalents, compared to a loss $5.4 million translation exchange rate effect of currency fiscal year during 2016. Higher currency 2017, and a $1.4 million rate effect gain of currency translation exchange during fiscal years 2018 and due to the strengthening of the Euro 2017 were primarily translation exchange effects and weakening of the Euro versus the U.S. Dollar by 6% in 2017, versus the U.S. Dollar by 15% in 2018 respectively. Cash Outlook and borrowings. Our future working capital requirements and capital to a much lesser extent, capital markets or investment in product innovations and growth opportunities or to acquire expenditures may increase to support products, services, and technologies. invest in complementary businesses, 31, based on the exchange rate on March for fiscal year 2018) in cash dividends 2018. During fiscal year 2018, we (U.S. Dollar amount of paid a cash dividend of CHF100.0 million $104.2out of retained earnings. During million) retained of CHF 90.2 million (U.S. Dollar amount of $93.1 million) out of fiscal year 2017, we paid a cash dividend million) paid a cash dividend of CHF 83.1 million (U.S. Dollar amount of $85.9 earnings. During fiscal year 2016, we out of retained earnings. April 2017. This share buyback program expired in Company to use up to $250.0 million to purchase its own shares. date of the 2014 share buyback program. up to $250.0 million to purchase our own shares, following the expiration Although we enter into trading plans for Board in May 2017. Takeover The new program was approved by the Swiss share buyback program provides us with systematic repurchases (e.g. 10b5-1 trading plans) from time to time, our market conditions and is expected to the opportunity to make opportunistic repurchases during periods of favorable period of three years. Shares may be repurchased from time to time on the open market, for a remain in effect or stopped at any time without prior through block trades or otherwise. Opportunistic purchases may be started As of March 31, 2018, the remaining amount that may be notice depending on market conditions and other factors. repurchased under the program is $219.9 million. The full year bonus for a fiscal year is expected to be made in from semi-annual payments to an annual payment. and the operating cash flow for that period could be negative as a result. the first quarter of the following fiscal year, operations of $346.3 million, $288.4 million and $185.2 million during fiscal years 2018, 2017, and 2016,

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 * * * ——— 18,941 9,964 2,452 Payments Due by Period 23 22 $ 237,110 $ — $$ 265,550 $ — 18,941 $ $ 9,964 — $ 2,452 5,727 5,727 9,569 9,569 44,501 13,144 2018 <1 year 1-3 years 4-5 years years >5 237,110 296,907 March 31, $ As of March 31, 2018, we have non-cancelable purchase commitments of As of March 31, 2018, we have non-cancelable $237.1 million for inventory facilities under operating leases, certain of which require us to pay property taxes, insurance lease We As of March 31, 2018, we had $35.0 million and in non-current income taxes payable, including interest The following table summarizes our contractual obligations and commitments as of March 31, commitments as obligations and our contractual table summarizes The following 2018 (in contributions to be made to our defined benefit plans for the next year only. We fund our pension plans so that we meet We benefit plans for the next year only. contributions to be made to our defined as established by local government, funding and taxing authorities. at least the minimum contribution requirements, our defined benefit pension plans and non-retirement post-employment benefit Expected contributions and payments to the contractual obligations table because they are dependent on numerous plans beyond one year are excluded from outcomes and thus are impractical to estimate. For more information on our factors that may result in a wide range of post-employment benefit plans, see Note 6 to the Consolidated defined benefit pension plans and non-retirement incorporated herein by reference. Financial Statements in Item 8, which is * Expected contribution to employee benefit plan: Commitments under the retirement plans relate to expected * Expected contribution to employee Expected contribution to employee Expected contribution benefit plan obligations Operating leases Inventory purchase commitmentsInventory purchase $ commitments Capital purchase Total Purchase Commitments of business to original design manufacturers, contract manufacturers purchases made in the normal course year which are expected to be fulfilled during the first two quarters of fiscal and other suppliers, the majority of and unhedged inventory purchase commitments in recorded a liability for firm, non-cancelable, 2019. We realizable value consistent with our valuation of excess and obsolete excess of anticipated demand or net commitments was As of March 31, 2018, the liability for these purchase million$12.6 and is inventory. firm have liabilities and is not included in the preceding table. We recorded in accrued and other current purchase commitments of $9.6 million primarily related to commitments for tooling, for capital expenditures, capital expenditures in the expect to continue making We computer hardware and leasehold improvements. open Although activities and ongoing and expanded operations. future to support product development the terms generally allow us the option purchase commitments are considered enforceable and legally binding, to delivery of goods. to reschedule and adjust our requirements based on business needs prior Leases Operating Obligation at our option and usually and maintenance costs. Operating leases for facilities are generally renewable The remaining terms of our non-cancelable operating leases include escalation clauses linked to inflation. expire in various years through 2030. Payable Income Taxes At this time, we are unable to make a penalties, related to our income tax liability for uncertain tax positions. in connection with these tax liabilities; reasonably reliable estimate of the timing of payments in individual years table. therefore, such amounts are not included in the above contractual obligation respectively. If we do not generate sufficient operating cash flows to support our operations and future planned cash cash future planned and operations support our flows to cash operating sufficient do not generate If we respectively. eliminated. or be restricted could facilities to credit our access and be harmed could our operations requirements, and of future operations our projections cash flow generation, of our historical that the trend we believe However, months. least the next 12 operations for at to fund our liquidity will provide sufficient cash balances our available Commitments and Obligations Contractual thousands): 21 Our principal sources of liquidity are our cash and cash equivalents, cash flow generated from operations and, our cash and cash equivalents, cash flow generated from operations Our principal sources of liquidity are million million ($115.7 recommended that the Company pay CHF110.7 In May 2018, the Board of Directors program, which authorizes the In March 2014, the Board of Directors approved the 2014 share buyback program, which authorizes us to invest In March 2017, our Board of Directors approved a new share buyback employee performance bonus plan Starting with fiscal year 2017, we changed the payment frequency of our described in the following sections. Our other contractual obligations and commitments that require cash are activities, including cash from For over ten years, we have generated positive cash flows from our operating Our expenditures for property, plant and equipment increased during fiscal year year during fiscal increased and equipment plant 2018, year to fiscal compared for property, expenditures Our ASTRO year during fiscal net of cash acquired, for acquisitions, Our payments 2018, primarily for the were $1.4 million. of discontinued operations were 2016, the net payments for the divestiture During fiscal year fiscal years sales of trading investments during The purchases and 2018, 2017 mutual and 2016 represent financing activities included in cash flows from realized from share-based compensation Excess tax benefit on cash and During fiscal year 2018,$4.7 million there was a exchange rate effect gain of currency translation 2017, primarily due to a higher amount of tooling purchases. Our expenditures for property, plant and equipment and equipment plant 2017, for property, Our expenditures tooling purchases. of amount to a higher due primarily purchases. amount of tooling due to a lower to fiscal year 2016, 2017, compared during fiscal year decreased statements). financial to the consolidated Acquisitions" 3 - Business (refer to "Note during the period Acquisition and Acquisition for the Jaybird year 2017, were during fiscal net of cash acquired, for acquisitions, Our payments financial to the consolidated Acquisitions" Business to "Note 3 - the period (refer Acquisition during the Saitek statements). The mutual by one of our subsidiaries. plan offered by participants in a deferred compensation fund activity directed Trust. a Rabbi funds are held by 2018 on a retrospective in the first quarter of our fiscal year in operating cash flows starting has been reclassified statements included in this to Note 2 to the consolidated financial ASU 2016-09. Refer basis when we adopted pronouncements adopted. Annual Report for recent accounting during fiscal year of cash equivalents, compared to a loss $5.4 million translation exchange rate effect of currency fiscal year during 2016. Higher currency 2017, and a $1.4 million rate effect gain of currency translation exchange during fiscal years 2018 and due to the strengthening of the Euro 2017 were primarily translation exchange effects and weakening of the Euro versus the U.S. Dollar by 6% in 2017, versus the U.S. Dollar by 15% in 2018 respectively. Cash Outlook and borrowings. Our future working capital requirements and capital to a much lesser extent, capital markets or investment in product innovations and growth opportunities or to acquire expenditures may increase to support products, services, and technologies. invest in complementary businesses, 31, based on the exchange rate on March for fiscal year 2018) in cash dividends 2018. During fiscal year 2018, we (U.S. Dollar amount of paid a cash dividend of CHF100.0 million $104.2out of retained earnings. During million) retained of CHF 90.2 million (U.S. Dollar amount of $93.1 million) out of fiscal year 2017, we paid a cash dividend million) paid a cash dividend of CHF 83.1 million (U.S. Dollar amount of $85.9 earnings. During fiscal year 2016, we out of retained earnings. April 2017. This share buyback program expired in Company to use up to $250.0 million to purchase its own shares. date of the 2014 share buyback program. up to $250.0 million to purchase our own shares, following the expiration Although we enter into trading plans for Board in May 2017. Takeover The new program was approved by the Swiss share buyback program provides us with systematic repurchases (e.g. 10b5-1 trading plans) from time to time, our market conditions and is expected to the opportunity to make opportunistic repurchases during periods of favorable period of three years. Shares may be repurchased from time to time on the open market, for a remain in effect or stopped at any time without prior through block trades or otherwise. Opportunistic purchases may be started As of March 31, 2018, the remaining amount that may be notice depending on market conditions and other factors. repurchased under the program is $219.9 million. The full year bonus for a fiscal year is expected to be made in from semi-annual payments to an annual payment. and the operating cash flow for that period could be negative as a result. the first quarter of the following fiscal year, operations of $346.3 million, $288.4 million and $185.2 million during fiscal years 2018, 2017, and 2016, 24 ADDITIONAL FINANCIAL DISCLOSURES FINANCIAL ADDITIONAL 23 24 During 2015, we entered into a limited partnership agreement with a private investment fund specialized in specialized fund investment private a with agreement partnership limited a into entered we 2015, During contract manufacturers' purchase guaranteed payments of two third-party Logitech Europe S.A. We indemnify certain of our suppliers and customers for losses arising from matters such as intellectual arising from matters such as intellectual suppliers and customers for losses indemnify certain of our We Certain and certain of our current and former officers. also indemnify our current and former directors We into in connection with the investment by three venture Agreement that we entered The Stock Purchase that have, or are reasonably likely to have, a current sheet arrangements do not have any off-balance We licenses, please refer to Item 1, For a discussion of our research and development activities, patents and Investment Commitments Investment million $4.0 of contribution capital a committed and companies electronics hardware consumer start-up early-stage been yet not has contribution capital committed the of million $1.1 2018, 31, March of As fund. the of life the over called by the fund. Guarantees was amount of these guarantees As of March 31, 2018, the maximum $3.8 million, $1.0 of which obligations. million obligations were outstanding. of guaranteed purchase Indemnifications The scope of these indemnities to certain restrictions. and product safety defects, subject property disputes reasonable for damages and expenses, including instances includes indemnification varies, but in some do 2018, for indemnification provisions. We no amounts have been accrued As of March 31, attorneys' fees. probable that any currently available, that it is on historical experience and information not believe, based be paid under our indemnification arrangements. material amounts will be required to are may be recoverable under various insurance policies. We costs incurred for providing such indemnification amount that could be payable under these arrangements unable to reasonably estimate the maximum the obligations are conditional in nature, and the facts and because these exposures are not capped, that might arise are variable. circumstances involved in any situation Inc. representations, warranties and covenants of Logitech and Lifesize, capital firms in Lifesize, Inc. contains Investors and we have agreed to indemnify the Venture Investors. Subject to certain limitations, to the Venture resulting from breaches of or inaccuracies in Investors for certain losses certain persons related to the Venture covenants as well as certain other obligations, including third-party such representations, warranties and tax obligations of Lifesize. expenses, restructuring costs and pre-closing Arrangements Sheet Off-Balance in financial condition, revenues or expenses, results of on our financial condition, changes or future effect that are material to investors. capital expenditures or capital resources operations, liquidity, Research Development and Annual Report on Form 10-K filed with the U.S. Securities and Exchange Business, in the Company’s Investor Relations website. Commission and posted to the Company’s

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 25 24 ADDITIONAL FINANCIAL DISCLOSURES FINANCIAL ADDITIONAL 23 During 2015, we entered into a limited partnership agreement with a private investment fund specialized in specialized fund investment private a with agreement partnership limited a into entered we 2015, During contract manufacturers' purchase guaranteed payments of two third-party Logitech Europe S.A. We indemnify certain of our suppliers and customers for losses arising from matters such as intellectual arising from matters such as intellectual suppliers and customers for losses indemnify certain of our We Certain and certain of our current and former officers. also indemnify our current and former directors We into in connection with the investment by three venture Agreement that we entered The Stock Purchase that have, or are reasonably likely to have, a current sheet arrangements do not have any off-balance We licenses, please refer to Item 1, For a discussion of our research and development activities, patents and Investment Commitments Investment million $4.0 of contribution capital a committed and companies electronics hardware consumer start-up early-stage been yet not has contribution capital committed the of million $1.1 2018, 31, March of As fund. the of life the over called by the fund. Guarantees was amount of these guarantees As of March 31, 2018, the maximum $3.8 million, $1.0 of which obligations. million obligations were outstanding. of guaranteed purchase Indemnifications The scope of these indemnities to certain restrictions. and product safety defects, subject property disputes reasonable for damages and expenses, including instances includes indemnification varies, but in some do 2018, for indemnification provisions. We no amounts have been accrued As of March 31, attorneys' fees. probable that any currently available, that it is on historical experience and information not believe, based be paid under our indemnification arrangements. material amounts will be required to are may be recoverable under various insurance policies. We costs incurred for providing such indemnification amount that could be payable under these arrangements unable to reasonably estimate the maximum the obligations are conditional in nature, and the facts and because these exposures are not capped, that might arise are variable. circumstances involved in any situation Inc. representations, warranties and covenants of Logitech and Lifesize, capital firms in Lifesize, Inc. contains Investors and we have agreed to indemnify the Venture Investors. Subject to certain limitations, to the Venture resulting from breaches of or inaccuracies in Investors for certain losses certain persons related to the Venture covenants as well as certain other obligations, including third-party such representations, warranties and tax obligations of Lifesize. expenses, restructuring costs and pre-closing Arrangements Sheet Off-Balance in financial condition, revenues or expenses, results of on our financial condition, changes or future effect that are material to investors. capital expenditures or capital resources operations, liquidity, Research Development and Annual Report on Form 10-K filed with the U.S. Securities and Exchange Business, in the Company’s Investor Relations website. Commission and posted to the Company’s 26 requirements. with two Ingram Micro agreements providing for from either party, for termination on 30 days written notice termination on 90 days notice. These terms to specified retailers. volume rebates related to purchase volumes or sales of specific products vary by agreement. sole discretion, lower the price of the product. These terms vary by to end users. transactions and additional rebates related to sales of specific products agreement. sole discretion, lower the price of the product. Our sales and marketing activities are organized into three geographic regions: the Americas (North and South (North and Americas the regions: into three geographic are organized and marketing activities Our sales these channels support and e-tailers. We to a network of distributors, retailers primarily sell our products We D&H Distributing Data Corporation, Tech Ingram Micro Inc., America include in North Major distributors in most major retail chains, where we typically have access to Logitech's products can be purchased entities together accounted for 15%, 15% Ingram Micro and its affiliated In fiscal years 2018, 2017 and 2016, entities are summarized agreements with Ingram Micro and its affiliated The material terms of our distribution entities are summarized as Amazon and its affiliated The material terms of our reseller agreements with in approximately 40 support offices Through our operating subsidiaries, we maintain marketing and channel Sales and Distribution Sales and • no minimum purchase The agreements are non-exclusive in the particular territory and contain • Most agreements provide either party. Each agreement may be terminated for convenience at any time by • to a negotiated percentage of sales and an allowance for marketing activities equal generally offer We • credits to be issued for on-hand or in-transit new inventory if we, in our Agreements allow price protection • grant limited stock rotation return rights in certain territories. We • followed by one year automatic renewals. Each agreement has a one year term • to a negotiated percentage of sales through an allowance for marketing activities equal generally offer We • credits to be issued for on-hand or in-transit new inventory if we, in our Agreements allow price protection 2017, Germany represented 16% and 17% of net sales, respectively. No other single country represented more more represented country single No other sales, respectively. of net and 17% 16% represented Germany 2017, 2017 or 2016. 2018, years for fiscal net sales total consolidated 10% of our than and other India Taiwan, Australia, Japan, Asia Pacific (China, Africa) and Middle East, (Europe, EMEA America), countries). Pacific. Asia Europe and America, South America, centers located in North with third-party distribution Data, Tech include Ingram Micro, major Pan-European distributors and Synnex Corporation. In Europe, Company, Littlebit Actebis GmbH in Germany, many regional distributors such as also sell to We and Gem Distribution. Asia, major In in the Netherlands and others. in the Netherlands, Copaco Dc B.V. AG Partners Technology Limited in China, Ltd in China, Beijing Digital China Co., Trading Wincheers International distributors include Our distributor customers Ingram Micro. distributor, Australia and the Pan-Asian Synnex in Daiwabo in Japan, distributors with whom systems integrators and other to retailers, value-added resellers, typically resell products Logitech does not have a direct relationship. In Target. Depot and Staples, Office Walmart, these chains include Best Buy, significant shelf space. In the U.S., Dixons (Media-Saturn Group), Carrefour Group, Kesa Electricals, Fnac, and Europe, chains include Metro Group products to non-traditional retail channels such as telcos. In addition, Stores Group PLC. Logitech also sells online either directly from Logitech.com or through e-tailers, such as Logitech products can be purchased Logitech products are also and others. retail chains noted previously, Amazon.com, the websites of our major PC Connection, and SHI. Insight, Zones, market resellers such as CDW, carried by business-to-business direct entities Inc. and its affiliated Amazon 2017 and 2016, In fiscal years 2018, and 14% of our net sales, respectively. No other customer individually accounted 10% of our net sales, respectively. together accounted for 13%, 12% and during fiscal years 2018, 2017 or 2016. for more than 10% of our net sales as follows: follows: countries. 2016 2017 Year Ended March 31, Year 820,347628,192 746,898 510,855 645,694 491,027 2018 $ 1,118,324 $$ 963,674 2,566,863 $ $ 881,379 2,221,427 $ 2,018,100 25 26 ADDITIONAL FINANCIAL DISCLOSURES FINANCIAL ADDITIONAL Revenues from sales to customers in Switzerland, our home domicile, represented 2% of our total Revenues from sales to customers in Switzerland, our home domicile, In the past few years, Logitech has strengthened its design capabilities by hiring a Chief Design Officer as well as Design Officer capabilities by hiring a Chief Logitech has strengthened its design In the past few years, has built an extensive global go-to-market network that can be Over the past 30-plus years, Logitech with multiple brands, we will focus on enhancing our marketing As Logitech expands into multiple categories on the customers' location) are as Net sales by geographic region for fiscal years 2018, 2017 and 2016 (based Principal Markets Design Go-To-Market Marketing EMEA Asia Pacific Americas

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 27 26 requirements. with two Ingram Micro agreements providing for from either party, for termination on 30 days written notice termination on 90 days notice. These terms to specified retailers. volume rebates related to purchase volumes or sales of specific products vary by agreement. sole discretion, lower the price of the product. These terms vary by to end users. transactions and additional rebates related to sales of specific products agreement. sole discretion, lower the price of the product. Our sales and marketing activities are organized into three geographic regions: the Americas (North and South (North and Americas the regions: into three geographic are organized and marketing activities Our sales these channels support and e-tailers. We to a network of distributors, retailers primarily sell our products We D&H Distributing Data Corporation, Tech Ingram Micro Inc., America include in North Major distributors in most major retail chains, where we typically have access to Logitech's products can be purchased entities together accounted for 15%, 15% Ingram Micro and its affiliated In fiscal years 2018, 2017 and 2016, entities are summarized agreements with Ingram Micro and its affiliated The material terms of our distribution entities are summarized as Amazon and its affiliated The material terms of our reseller agreements with in approximately 40 support offices Through our operating subsidiaries, we maintain marketing and channel Sales and Distribution Sales and • no minimum purchase The agreements are non-exclusive in the particular territory and contain • Most agreements provide either party. Each agreement may be terminated for convenience at any time by • a negotiated percentage of sales and an allowance for marketing activities equal to generally offer We • credits to be issued for on-hand or in-transit new inventory if we, in our Agreements allow price protection • grant limited stock rotation return rights in certain territories. We • term followed by one year automatic renewals. Each agreement has a one year • a negotiated percentage of sales through an allowance for marketing activities equal to generally offer We • credits to be issued for on-hand or in-transit new inventory if we, in our Agreements allow price protection 2017, Germany represented 16% and 17% of net sales, respectively. No other single country represented more more represented country single No other sales, respectively. of net and 17% 16% represented Germany 2017, 2017 or 2016. 2018, years for fiscal net sales total consolidated 10% of our than and other India Taiwan, Australia, Japan, Asia Pacific (China, Africa) and Middle East, (Europe, EMEA America), countries). Pacific. Asia Europe and America, South America, centers located in North with third-party distribution Data, Tech include Ingram Micro, major Pan-European distributors and Synnex Corporation. In Europe, Company, Littlebit Actebis GmbH in Germany, many regional distributors such as also sell to We and Gem Distribution. Asia, major In in the Netherlands and others. in the Netherlands, Copaco Dc B.V. AG Partners Technology Limited in China, Ltd in China, Beijing Digital China Co., Trading Wincheers International distributors include Our distributor customers Ingram Micro. distributor, Australia and the Pan-Asian Synnex in Daiwabo in Japan, distributors with whom systems integrators and other to retailers, value-added resellers, typically resell products Logitech does not have a direct relationship. In Target. Depot and Staples, Office Walmart, these chains include Best Buy, significant shelf space. In the U.S., Dixons (Media-Saturn Group), Carrefour Group, Kesa Electricals, Fnac, and Europe, chains include Metro Group products to non-traditional retail channels such as telcos. In addition, Stores Group PLC. Logitech also sells online either directly from Logitech.com or through e-tailers, such as Logitech products can be purchased Logitech products are also and others. retail chains noted previously, Amazon.com, the websites of our major PC Connection, and SHI. Insight, Zones, market resellers such as CDW, carried by business-to-business direct entities Inc. and its affiliated Amazon 2017 and 2016, In fiscal years 2018, and 14% of our net sales, respectively. No other customer individually accounted 10% of our net sales, respectively. together accounted for 13%, 12% and during fiscal years 2018, 2017 or 2016. for more than 10% of our net sales as follows: follows: countries. 2016 2017 Year Ended March 31, Year 820,347628,192 746,898 510,855 645,694 491,027 2018 $ 1,118,324 $$ 963,674 2,566,863 $ $ 881,379 2,221,427 $ 2,018,100 25 ADDITIONAL FINANCIAL DISCLOSURES FINANCIAL ADDITIONAL Revenues from sales to customers in Switzerland, our home domicile, represented 2% of our total Revenues from sales to customers in Switzerland, our home domicile, In the past few years, Logitech has strengthened its design capabilities by hiring a Chief Design Officer as well as Design Officer capabilities by hiring a Chief Logitech has strengthened its design In the past few years, has built an extensive global go-to-market network that can be Over the past 30-plus years, Logitech with multiple brands, we will focus on enhancing our marketing As Logitech expands into multiple categories on the customers' location) are as Net sales by geographic region for fiscal years 2018, 2017 and 2016 (based Principal Markets Design Go-To-Market Marketing Americas EMEA Asia Pacific

consolidated net sales in each of fiscal years 2018, 2017 and 2016. In fiscal years 2018, 2017 and 2016, the United consolidated net sales in each of fiscal years 2018, 2017 and 2016. In In fiscal year 2018 and respectively. States represented 37%, 37% and 38% of our total consolidated net sales, MARKETING, SALES AND DISTRIBUTION SALES MARKETING, Channels and Marketing Design, lives, in people’s Our designs have an everyday place team of internal designers. as building a world-class earning prestigious design These products have been about. the digital experiences they care connecting them to This is an in the media. five years - and enthusiastic reviews 160 design awards during the past awards - more than During the fiscal year to become a design company is working. strategic aim that Logitech’s important indication a As Logitech becomes of our product categories and brands. fifty design awards spanning all 2018 alone, we won helps to reduce product costs Design also and cultural differentiator. design is used as a strategic design company, Our key design centers engineering and manufacturing teams. collaboration between our design, through increased Taiwan. Ireland, the United States, and are in Switzerland, enter new market categories and optimize the value of our existing leveraged as we introduce new products, to drive growth - existing products in existing have multiple opportunities products and product categories. We existing products in new retailers, and new products in new retailers. retailers, new products in existing retailers, to channels, we have also cultivated various non-traditional retail channels Beyond traditional retail and distribution channels, there are numerous cross-selling opportunities As we continue to expand into new sell our products. Logitech as a neutral technology supplier that can work have established We across our broad product portfolio. platforms as well as provide connections among their products and with leading technology vendors and ecosystems. developed and We execution, digital marketing, and marketing technology. capabilities around brand strategy and were once outsourced to outside marketing that and creative efforts executed internally many of our marketing our leverage of are increasing We with speed and cost efficiency. agencies to move from concept to execution increasing are also to drive consumer brand engagement and purchase. We digital media channels and programs to to improve our understanding of our marketing investments and our focus on marketing analytics platforms investments to upgrade all aspects of our marketing And we are making (ROI). maximize our return on investment of all our websites to support the global expansion of our brands, infrastructure, including the re-platforming marketing efforts. countries, languages, devices and support the acceleration of our digital Sales and Distribution follows (in thousands): Approved Amounts Approved (1) 17,311 $17,311 $ 250,000 250,000 Approved Shares 28 Dividends paid and similar cash or in-kind distributions made by Logitech to a holder of Logitech shares of Logitech by Logitech to a holder made cash or in-kind distributions paid and similar Dividends qualify for a full refund of the Swiss owner of Logitech shares may Swiss resident holder and beneficial A a (Treaty), States and the Swiss Confederation the tax convention between the United In accordance with share buyback programs were in place (in thousands): In fiscal year 2018, the following approved Share Buyback Program March 2014 March 2017 (1) The approval of each of our share buyback programs by the Swiss Takeover Board limits the number of shares Board limits Takeover programs by the Swiss The approval of each of our share buyback (1) than 10% of our authorized share capital and voting rights. that we may repurchase to no more ($0.63 per share in U.S. Dollars), totaling $104.2 million in U.S. Dollars on September 27, 2017. On September 7, On September 27, 2017. September on U.S. Dollars million in $104.2 totaling Dollars), in U.S. per share ($0.63 to earnings retained out of million of CHF 90.2 payment a cash dividend approved shareholders Logitech's 2016, CHF 0.56 per were paid Eligible shareholders September 21, 2016. owned shares on shareholders who Logitech September 27, 2016. U.S. Dollars on $93.1 million in Dollars), totaling per share in U.S. share ($0.57 additional of qualifying other than distributions and stock dividends), proceeds dividends or liquidation (including anticipatory tax at a Swiss federal are subject to Swiss tax regime, under the current if it is available paid-in-capital paid to the Swiss from the gross distribution and tax must be withheld by Logitech The anticipatory a rate of 35%. Administration. Tax Federal a non- owner of Logitech shares who is holder and beneficial A from such dividends. anticipatory tax withheld Switzerland, may qualify maintains a double tax treaty with but a resident of a country that resident of Switzerland, of the provisions of the withheld from such dividends by virtue refund of the Swiss anticipatory tax for a full or partial owner of the of residence of the holder and beneficial Switzerland and the country applicable treaty between Logitech shares. and U.S. corporations, other Treaty), resident (as determined under the mechanism is provided whereby a U.S. in Switzerland, Treaty, establishment" or a fixed base, as defined in the than U.S. corporations having a "permanent to Swiss anticipatory tax withheld from dividends in respect of Logitech shares, generally can obtain a refund of the may is withheld as final withholding tax (i.e. 20% of the gross dividend the extent that 15% of the gross dividend base U.S. companies not having a "permanent establishment" or a fixed generally be refunded). In specific cases, tax of Logitech registered shares may receive a refund of the Swiss anticipatory in Switzerland owning at least 10% may be it exceeds 5% of the gross dividend (i.e., 30% of the gross dividend withheld from dividends to the extent own Logitech shares at the time such dividend get the benefit of a refund, holders must beneficially To refunded). becomes due. Share Repurchases

30.64 30.45 32.60 31.57 33.17 14.25 15.05 21.20 25.10 34.35 32.66 33.19 14.45 15.60 21.44 24.89 Low CHF Low USD

38.34 37.40 15.90 40.82 16.73 39.00 36.82 40.82 21.80 25.45 32.05 37.22 43.54 22.46 25.22 32.06 SIX Swiss Exchange Nasdaq Global Select Market High CHF High USD 27 28 Logitech's shares are listed and traded on both the SIX Swiss Exchange, where the share price is the share price is Exchange, where the SIX Swiss and traded on both shares are listed Logitech's on the SIX Swiss price information for our shares traded sets forth certain historical share The following table The following table sets forth certain historical share price information for our shares traded on the Nasdaq historical share price information for our shares traded on the Nasdaq The following table sets forth certain This vote typically may only pay dividends upon a vote of its shareholders. a corporation Under Swiss law, First quarter First quarter First quarter Second quarter First quarter Second quarter Third quarter Fourth quarter Second quarter Third quarter Fourth quarter Third quarter Fourth quarter Second quarter Third quarter Fourth quarter

March 31, 2018 Ended Year Fiscal Fiscal Year Ended March 31, 2018 Ended Year Fiscal

Fiscal Year Ended March 31, 2017 Year Fiscal Ended March 31, 2017 Year Fiscal MARKET MARKET FOR REGISTRANT'S COMMON SECURITIES EQUITY PURCHASES OF EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER in share price is denominated Market, where the Global Select and on the Nasdaq in Swiss francs denominated Nasdaq and LOGI on the Swiss Exchange is LOGN on the SIX Logitech shares trading symbol for The U.S. Dollars. shares held (including 7,657,460 shares issued there were 173,106,620 of May 4, 2018, As Market. Global Select 39.68 ($39.77 shares was CHF price of our record, and the closing 15,219 holders of stock) held by as treasury per share as reported by the SIX Swiss Exchange and $39.52 rates on such date) per share on based on exchange Select Market. the Nasdaq Global Exchange SIX Swiss by the SIX Swiss Exchange. Exchange, as reported Nasdaq Global Select Market Nasdaq Global Global Select Market. Dividends May 2018, the Board of Directors follows the recommendation of the corporation's Board of Directors. In year 2018 by approximately 10% to CHF recommended that the Company increase the cash dividend for fiscal million based on the exchange rate on March 31, 2018). On September 12, 2017, Logitech's million ($115.7 110.7 out of retained earnings to Logitech shareholders approved a cash dividend payment of CHF 100.0 million were paid CHF 0.61 per share shareholders who owned shares on September 22, 2017. Eligible shareholders

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 Approved Amounts Approved (1) 17,311 $17,311 $ 250,000 250,000 Approved Shares 29 28

Dividends paid and similar cash or in-kind distributions made by Logitech to a holder of Logitech shares of Logitech by Logitech to a holder made cash or in-kind distributions paid and similar Dividends qualify for a full refund of the Swiss owner of Logitech shares may Swiss resident holder and beneficial A a (Treaty), States and the Swiss Confederation the tax convention between the United In accordance with share buyback programs were in place (in thousands): In fiscal year 2018, the following approved Share Buyback Program March 2014 March 2017 (1) The approval of each of our share buyback programs by the Swiss Takeover Board limits the number of shares Board limits Takeover programs by the Swiss The approval of each of our share buyback (1) than 10% of our authorized share capital and voting rights. that we may repurchase to no more ($0.63 per share in U.S. Dollars), totaling $104.2 million in U.S. Dollars on September 27, 2017. On September 7, On September 27, 2017. September on U.S. Dollars million in $104.2 totaling Dollars), in U.S. per share ($0.63 to earnings retained out of million of CHF 90.2 payment a cash dividend approved shareholders Logitech's 2016, CHF 0.56 per were paid Eligible shareholders September 21, 2016. owned shares on shareholders who Logitech September 27, 2016. U.S. Dollars on $93.1 million in Dollars), totaling per share in U.S. share ($0.57 additional of qualifying other than distributions and stock dividends), proceeds dividends or liquidation (including anticipatory tax at a Swiss federal are subject to Swiss tax regime, under the current if it is available paid-in-capital paid to the Swiss from the gross distribution and tax must be withheld by Logitech The anticipatory a rate of 35%. Administration. Tax Federal a non- owner of Logitech shares who is holder and beneficial A from such dividends. anticipatory tax withheld Switzerland, may qualify maintains a double tax treaty with but a resident of a country that resident of Switzerland, of the provisions of the withheld from such dividends by virtue refund of the Swiss anticipatory tax for a full or partial owner of the of residence of the holder and beneficial Switzerland and the country applicable treaty between Logitech shares. and U.S. corporations, other Treaty), resident (as determined under the mechanism is provided whereby a U.S. in Switzerland, Treaty, establishment" or a fixed base, as defined in the than U.S. corporations having a "permanent to Swiss anticipatory tax withheld from dividends in respect of Logitech shares, generally can obtain a refund of the may is withheld as final withholding tax (i.e. 20% of the gross dividend the extent that 15% of the gross dividend base U.S. companies not having a "permanent establishment" or a fixed generally be refunded). In specific cases, tax of Logitech registered shares may receive a refund of the Swiss anticipatory in Switzerland owning at least 10% may be it exceeds 5% of the gross dividend (i.e., 30% of the gross dividend withheld from dividends to the extent own Logitech shares at the time such dividend get the benefit of a refund, holders must beneficially To refunded). becomes due. Share Repurchases

30.45 30.64

32.60 34.35

31.57 32.66

33.17 33.19

14.25 14.45

15.05 15.60

21.20 21.44 25.10 24.89 Low CHF Low USD

37.40 38.34 39.00 40.82 36.82 37.22 40.82 43.54 15.90 16.73 21.80 22.46 25.45 25.22 32.05 32.06 SIX Swiss Exchange Nasdaq Global Select Market High CHF High USD 27 Logitech's shares are listed and traded on both the SIX Swiss Exchange, where the share price is the share price is Exchange, where the SIX Swiss and traded on both shares are listed Logitech's on the SIX Swiss price information for our shares traded sets forth certain historical share The following table The following table sets forth certain historical share price information for our shares traded on the Nasdaq historical share price information for our shares traded on the Nasdaq The following table sets forth certain This vote typically may only pay dividends upon a vote of its shareholders. a corporation Under Swiss law, First quarter First quarter Second quarter Second quarter Third quarter Third quarter Fourth quarter Fourth quarter First quarter First quarter Second quarter Second quarter Third quarter Third quarter Fourth quarter Fourth quarter

March 31, 2018 Ended Year Fiscal March 31, 2018 Ended Year Fiscal Fiscal Year Ended March 31, 2017 Year Fiscal Ended March 31, 2017 Year Fiscal

MARKET MARKET FOR REGISTRANT'S COMMON SECURITIES EQUITY PURCHASES OF EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER in share price is denominated Market, where the Global Select and on the Nasdaq in Swiss francs denominated Nasdaq and LOGI on the Swiss Exchange is LOGN on the SIX Logitech shares trading symbol for The U.S. Dollars. shares held (including 7,657,460 shares issued there were 173,106,620 of May 4, 2018, As Market. Global Select 39.68 ($39.77 shares was CHF price of our record, and the closing 15,219 holders of stock) held by as treasury per share as reported by the SIX Swiss Exchange and $39.52 rates on such date) per share on based on exchange Select Market. the Nasdaq Global Exchange SIX Swiss by the SIX Swiss Exchange. Exchange, as reported Nasdaq Global Select Market Nasdaq Global Global Select Market. Dividends May 2018, the Board of Directors follows the recommendation of the corporation's Board of Directors. In year 2018 by approximately 10% to CHF recommended that the Company increase the cash dividend for fiscal million based on the exchange rate on March 31, 2018). On September 12, 2017, Logitech's million ($115.7 110.7 out of retained earnings to Logitech shareholders approved a cash dividend payment of CHF 100.0 million were paid CHF 0.61 per share shareholders who owned shares on September 22, 2017. Eligible shareholders March 31, 30 2013 2014 2015 2016 2017 2018 $$ 100 $ 100 $ 219 $ 131 $ 197 $ 154 $ 248 $ 156 $ 510 $ 190 $ 598 229

The following graph compares the cumulative total stockholder return on our shares, the Nasdaq Composite Composite the Nasdaq shares, on our return stockholder total the cumulative graph compares following The Logitech Nasdaq Composite Index IndexTechnology Information and 500 S&P $ 100 $ 126 $ 148 $ 160 $ 200 $ 256

*$100 invested on March 31, 2013, in stock or index, including reinvestment of dividends. *$100 invested on March 31, 2013, in stock All rights reserved. Global. division of S&P Copyright© 2018 Standard & Poor's, a ______Index, and the S&P 500 Information and Technology Index. The graph assumes that $100 was invested in our LOGI in our LOGI invested was that $100 assumes graph The Index. Technology and Information 500 S&P and the Index, 31, 2013, and Index on March Technology and 500 Information S&P Index and the Nasdaq Composite shares, the graph is not on the following stock price performance The through March 31, the annual return calculates 2018. stock price performance. indicative of future necessarily

Program under the Program Remaining Remaining under the May Yet Be Yet May Remaining Amount that Amount that May Yet Be Yet May Repurchased Repurchased Amount that Repurchased

— 219,893 — $ 223,092 —— 223,092 — $ 219,893 219,893

— Per Share 13.5222.00 14.63 $ 15.29 178,298 94,642 Weighted Average Price Paid Average Weighted CHF (LOGN) USD (LOGI) Weighted Average Price Per Share Average Weighted — 83 36.57 863 34.53 199 34.50 282 35.11 4,951 4,027 9,841 Shares 29 of Shares 30 Repurchased(LOGN) CHF USD (LOGI) Repurchased Total Number Total The following table presents certain information related to purchases made by Logitech of its equity securities equity securities of its by Logitech made purchases to related information certain table presents following The The information contained in the Performance Graph shall not be deemed to be "soliciting material" or "filed" Graph shall not be deemed to be "soliciting material" or "filed" The information contained in the Performance Month 1 2018 December 31, 2017 to January 26, March 31, 2017 March 31, 2018 Month 2 January 27, 2018 to February 23, 2018 Month 3 February 24, 2018 to March 31, 2018 March 31, 2016 During the three months ended March 31, 2018 During the three months ended March During Fiscal Year Ended Year During Fiscal under its publicly announced share buyback program (in thousands, except per share amounts): per share except (in thousands, program buyback share announced its publicly under Performance Graph Act of 1934, as amended (the of Section 18 of the Securities Exchange with the SEC or subject to the liabilities the we specifically incorporate it by reference into a document filed under Act), except to the extent that Exchange Act. the Exchange Act), or Securities Act of 1933, as amended (the Securities

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 March 31, 31 30 2013 2014 2015 2016 2017 2018 $$ 100 $ 100 $ 219 $ 131 $ 197 $ 154 $ 248 $ 156 $ 510 $ 190 $ 598 229

______or index, including reinvestment of dividends. *$100 invested on March 31, 2013, in stock All rights reserved. Global. division of S&P Copyright© 2018 Standard & Poor's, a Index, and the S&P 500 Information and Technology Index. The graph assumes that $100 was invested in our LOGI in our LOGI invested was that $100 assumes graph The Index. Technology and Information 500 S&P and the Index, 31, 2013, and Index on March Technology and 500 Information S&P Index and the Nasdaq Composite shares, the is not following graph performance on the The stock price through March 31, the annual return calculates 2018. stock price performance. indicative of future necessarily

Program under the Program Remaining Remaining under the May Yet Be Yet May Remaining Amount that Amount that May Yet Be Yet May Repurchased Repurchased Amount that Repurchased

—— $ 219,893 219,893 — 219,893 — $ 223,092 — 223,092

— Per Share 13.5222.00 14.63 $ 15.29 178,298 94,642 Weighted Average Price Paid Average Weighted CHF (LOGN) USD (LOGI) Weighted Average Price Per Share Average Weighted — 83 36.57 282 35.11 863 34.53 199 34.50 4,951 4,027 9,841 Shares 29 of Shares Repurchased(LOGN) CHF USD (LOGI) Repurchased Total Number Total The following table presents certain information related to purchases made by Logitech of its equity securities equity securities of its by Logitech made purchases to related information certain table presents following The Graph shall not be deemed to be "soliciting material" or "filed" The information contained in the Performance March 31, 2016 March 31, 2017 March 31, 2018 Month 1 2018 December 31, 2017 to January 26, Month 2 January 27, 2018 to February 23, 2018 Month 3 February 24, 2018 to March 31, 2018 During the three months ended March 31, 2018 During the three months ended March During Fiscal Year Ended Year During Fiscal under its publicly announced share buyback program (in thousands, except per share amounts): per share except (in thousands, program buyback share announced its publicly under Performance Graph Act of 1934, as amended (the of Section 18 of the Securities Exchange with the SEC or subject to the liabilities the we specifically incorporate it by reference into a document filed under Act), except to the extent that Exchange Act. the Exchange Act), or Securities Act of 1933, as amended (the Securities

(4) 2014

(4) 2015

(4) 2016 March 31, March

2017

32 2018 $$ 641,947 1,743,157 $ $ 1,498,677 547,533 $ $ 1,324,147 519,195 $ 1,426,680 $ $ 533,380 1,451,390 $ 467,518 $ 1,050,557 $ 856,111 $ 759,948 $ 758,134 $ 804,128 restructuring plan we implemented in fiscal year 2016. Restructuring charges and credits incurred during Restructuring charges and credits we implemented in fiscal year 2016. restructuring plan year 2013. plan we implemented in fiscal and 2014 were related to the restructuring fiscal years 2015 discontinued operations in our consolidated video conferencing business as reflected the Lifesize from all line items that business have been excluded and, as such, the results of statements of operations taxes” for all operations, net of income other than “Loss from discontinued of statements of operations are included in the operations were not material and cash flows from discontinued periods noted. Historical cash flow data above. to conform to the consolidated statements of cash flows for fiscal financing activities to operating activities ASU 2016-09. year 2018 due to the adoption of operations. See Note 4, "Discontinued Operations" to our business which is presented as discontinued additional information. consolidated financial statements for (1) related to the fiscal years 2018, 2017 and 2016 were and credits incurred during Restructuring charges (2) a result, we have video conferencing business and, as 28, 2015, we divested our Lifesize On December (3) compensation from all prior periods have been reclassified from Excess tax benefits from share-based (4) cash and cash equivalents exclude Lifesize video conferencing The above condensed consolidated Cash and cash equivalents Cash and Total assets Total shareholders' equity Total Consolidated balance sheet data balance sheet Consolidated

______

— 367 (431) (2) 2014

— — 763 2,036 (2) 2015

— — 984 790 1,197 (2) 2016

Years ended March 31, Years — (9,045) (139,146) (31,687) 23 17,802 (4,777) 8,001 2017 (in thousands, except for per share amounts) (in thousands, except

31 — 32 (116) 8,878 6,175 8,930 5,814 4,969 1,452 (4,908) (8,092) (2,437) 1,677 1,624 (2,298) 2,039 96,353 100,270 101,012 125,995 112,689 23,723 9,113 3,110 4,654 1,313 909,241 820,041 681,047 705,457 661,539 435,489143,760 379,641 130,525 319,015 113,176 321,749 107,543 322,278 110,839 679,508 608,181 551,989 551,273 555,843 229,733 211,860232,265 129,058 214,989 154,184 131,472 105,696 153,083 107,304 208,542 205,876 128,362 148,429 105,991 164,038168,971 162,058 165,540 163,296 165,792 163,536 166,174 160,619 162,526 2018 1,648,744 1,395,211 1,337,053 1,299,451 1,346,122 $ 2,566,863 $ 2,221,427 $ 2,018,100 $ 2,004,908 $ 2,008,028 $ 208,542 $ 205,876 $ 119,317 $ 9,283 $ 74,304 $ 1.27 $ 1.27 $ 0.79 $ 0.91 $ 0.66 $ — $ — $ (0.06) $ (0.85) $ (0.20) $$ 1.27 $ 1.23 $ 1.27 $ 1.24 $ 0.73 $ 0.77 $ 0.06 $ 0.89 $ 0.46 0.65 $ — $ — $ (0.05) $ (0.83) $ (0.19) $ 1.23 $ 1.24 $ 0.72 $ 0.06 $ 0.46 $ 0.63 $ 0.57 $ 0.53 $ 0.27 $ 0.22 $ (128,704) $ (98,964) $ (60,690) $ (48,289) $ (46,803) This financial data should be read in conjunction with Item 7, Management's Discussion and Analysis of Financial Financial of Analysis and Discussion Management's 7, Item with conjunction in read be should data financial This Total operating expenses Total Marketing and selling Research and development General and administrative Amortization of intangible assets and acquisition-related costs Change in fair value of contingent consideration for business acquisition Restructuring charges (credits), net (1) Continuing operations Discontinued operations Net income per share - basic Continuing operations Discontinued operations Net income per share - diluted Basic Diluted Cash dividend per share

Gross profit Net sales Cost of goods sold assets and purchase Amortization of intangible on inventory accounting effect Consolidated statement of operations and Consolidated statement cash flow data

Operating expenses: Income from continuing operations before income taxes Operating income Interest income (expense), net Other income (expense), net Provision for income taxes Net income from continuing operations Loss from discontinued operations, net of Loss from discontinued operations, net income taxes Net income Net income (loss) per share - basic: Net Income (loss) per share - diluted: Weighted average shares used to compute net Weighted income (loss) per share: Net cash provided by operating activities (3) $ 346,261 $ 288,389 $ 185,195 $ 181,463 $ 207,667 Net cash used in investing activities SELECTED FINANCIAL DATA FINANCIAL SELECTED expected be to results the of indicative necessarily not are results historical These Operations. of Results and Condition in the future.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018

(4) 2014

(4) 2015

(4) 2016 March 31, March

2017 33

32 2018 $$ 641,947 1,743,157 $ $ 1,498,677 547,533 $ $ 1,324,147 519,195 $ 1,426,680 $ $ 533,380 1,451,390 $ 467,518 $ 1,050,557 $ 856,111 $ 759,948 $ 758,134 $ 804,128

restructuring plan we implemented in fiscal year 2016. Restructuring charges and credits incurred during Restructuring charges and credits we implemented in fiscal year 2016. restructuring plan year 2013. plan we implemented in fiscal and 2014 were related to the restructuring fiscal years 2015 discontinued operations in our consolidated video conferencing business as reflected the Lifesize from all line items that business have been excluded and, as such, the results of statements of operations taxes” for all operations, net of income other than “Loss from discontinued of statements of operations are included in the operations were not material and cash flows from discontinued periods noted. Historical cash flow data above. to conform to the consolidated statements of cash flows for fiscal financing activities to operating activities ASU 2016-09. year 2018 due to the adoption of operations. See Note 4, "Discontinued Operations" to our business which is presented as discontinued additional information. consolidated financial statements for

(1) related to the fiscal years 2018, 2017 and 2016 were and credits incurred during Restructuring charges (2) a result, we have video conferencing business and, as 28, 2015, we divested our Lifesize On December (3) compensation from all prior periods have been reclassified from Excess tax benefits from share-based (4) cash and cash equivalents exclude Lifesize video conferencing The above condensed consolidated Cash and cash equivalents Cash and Total assets Total shareholders' equity Total data balance sheet Consolidated

______

— 367 (431) (2) 2014

— — 763 2,036 (2) 2015

— — 984 790 1,197 (2) 2016

Years ended March 31, Years — (9,045) (139,146) (31,687) 23 17,802 (4,777) 8,001 2017 (in thousands, except for per share amounts) (in thousands, except

31 — (116) 8,878 6,175 8,930 5,814 4,969 1,452 (4,908) (8,092) (2,437) 1,677 1,624 (2,298) 2,039 96,353 100,270 101,012 125,995 112,689 23,723 9,113 3,110 4,654 1,313 909,241 820,041 681,047 705,457 661,539 435,489143,760 379,641 130,525 319,015 113,176 321,749 107,543 322,278 110,839 679,508 608,181 551,989 551,273 555,843 229,733 211,860232,265 129,058 214,989 154,184 131,472 105,696 153,083 107,304 208,542 205,876 128,362 148,429 105,991 164,038168,971 162,058 165,540 163,296 165,792 163,536 166,174 160,619 162,526 2018 1,648,744 1,395,211 1,337,053 1,299,451 1,346,122 $ 2,566,863 $ 2,221,427 $ 2,018,100 $ 2,004,908 $ 2,008,028 $ 208,542 $ 205,876 $ 119,317 $ 9,283 $ 74,304 $ 1.27 $ 1.27 $ 0.79 $ 0.91 $ 0.66 $ — $ — $ (0.06) $ (0.85) $ (0.20) $$ 1.27 $ 1.23 $ 1.27 $ 1.24 $ 0.73 $ 0.77 $ 0.06 $ 0.89 $ 0.46 0.65 $ — $ — $ (0.05) $ (0.83) $ (0.19) $ 1.23 $ 1.24 $ 0.72 $ 0.06 $ 0.46 $ 0.63 $ 0.57 $ 0.53 $ 0.27 $ 0.22 $ (128,704) $ (98,964) $ (60,690) $ (48,289) $ (46,803) This financial data should be read in conjunction with Item 7, Management's Discussion and Analysis of Financial Financial of Analysis and Discussion Management's 7, Item with conjunction in read be should data financial This Total operating expenses Total Marketing and selling Research and development General and administrative Amortization of intangible assets and acquisition-related costs Change in fair value of contingent consideration for business acquisition Restructuring charges (credits), net (1) Continuing operations Discontinued operations Net income per share - basic Continuing operations Discontinued operations Net income per share - diluted Basic Diluted Cash dividend per share

of operations and Consolidated statement cash flow data Net sales Cost of goods sold assets and purchase Amortization of intangible on inventory accounting effect Gross profit Operating expenses: Operating income Income from continuing operations before income taxes Interest income (expense), net Other income (expense), net Provision for income taxes Net income from continuing operations Loss from discontinued operations, net of Loss from discontinued operations, net income taxes Net income Net income (loss) per share - basic: Net Income (loss) per share - diluted: Weighted average shares used to compute net Weighted income (loss) per share: Net cash provided by operating activities (3) $ 346,261 $ 288,389 $ 185,195 $ 181,463 $ 207,667 Net cash used in investing activities SELECTED FINANCIAL DATA FINANCIAL SELECTED expected be to results the of indicative necessarily not are results historical These Operations. of Results and Condition in the future. in Base Currency (Loss) from 10% Change (Loss) from Currency Exchange Gain Exchange Currency March 31, 2018 March 806 (73) 90 577 (52) 64 (543)(956) 49 87 (60) (106) (672)(796)(908) 61 72 83 (75) (88) (101) 7,584 (689) 843 1,372 (125) 152 (1,058)(2,364) 96 215 (118) (263) (2,025)(2,523) 184 229 (225) (280) 12,99610,86210,326 (1,181) (987) (939) 1,444 1,207 1,147 (14,045)(18,450)(31,800) 1,277 1,677 2,891 (1,561) (2,050) (3,533) Position Appreciation Depreciation Currency Long (Short) Net Exposed $ 17,464 $ (1,588) $ 1,940 $ (14,153) $ 1,287 $ (1,573) 34 Currency Transaction Brazilian Real Brazilian Dollar Canadian Yen Japanese Mexican Peso Australian Dollar Russian Ruble Norwegian Kroner Indian Rupee Korean Wan Swiss Franc Singapore Dollar Dollar Taiwanese Chinese Renminbi Croatian Kuna U.S. Dollar Arab Emirates Dirham Russian Ruble Polish Zloty British Pound Swedish Krona

Currency Long currency positions represent net assets being held in the transaction currency while short currency Long currency positions represent net are located in China, with much of our component and raw material Our principal manufacturing operations of forecasted inventory into cash flow hedge contracts to protect against exchange rate exposure enter We of currency enter into currency forward and swap contracts to reduce the short-term effects also We U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar U.S. Dollar Euro Euro Euro Euro Euro Euro Euro

Base Currency positions represent net liabilities being held in the transaction currency. positions represent net liabilities being 2018, held in Chinese Renminbi totaled $31.8 As of March 31, net liabilities costs transacted in Chinese Renminbi. million. Derivatives within four months. Gains and losses in the fair value of the effective These hedging contracts mature purchases. comprehensive loss until the hedged portion of the hedges are deferred as a component of accumulated other to cost of goods sold. Cash flows inventory purchases are sold, at which time the gains or losses are reclassified As of statements of cash flows. from such hedges are classified as operating activities in the consolidated related to forecasted inventory purchases. March 31, 2018, there were no currency forward contracts outstanding outstanding related to forecasted As of March 31, 2017, the notional amounts of currency forward contracts is recorded in accumulated other inventory purchases was $59.4 million. Deferred realized loss of $3.2 million to cost of goods sold when the related comprehensive loss as of March 31, 2018, and is expected to be reclassified inventory is sold. other than the functional currencies of our fluctuations on certain receivables or payables denominated in currencies The primary risk managed by using forward contracts generally mature within one month. These subsidiaries. The gains or losses on these contracts are forward and swap contracts is the currency exchange rate risk. from these contracts are classified as recognized in earnings based on the changes in fair value. Cash flows The notional amounts of these contracts operating activities in the consolidated statements of cash flows. Open forward and million, respectively. outstanding as of March 31, 2018, and 2017 were $47.2 million and $56.7 Australian Dollars, Dollars, Taiwanese in swap contracts as of March 31, 2018, and 2017 consisted of contracts Canadian Dollars and British Pounds at future dates at pre-determined exchange Yen, Mexican Pesos, Japanese rates. 33 34 Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments. of financial instruments. in the fair value due to adverse changes potential for loss represents the Market risk Dollar can rates compared to the U.S. Dollars. Changes in currency exchange report our results in U.S. We We are exposed to currency exchange rate risk as we transact business in multiple currencies, including business in multiple currencies, including exchange rate risk as we transact are exposed to currency We QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK MARKET ABOUT DISCLOSURES QUALITATIVE AND QUANTITATIVE Market Risk These rates. rates and interest in currency exchange movements exposure to adverse concern, we face As a global impact on our a material adverse and could have practices evolve time as business may change over exposures results. financial Rates Currency Exchange are translated into statements of our non-U.S. subsidiaries on our results when the financial have a material impact Swiss Certain operations use the the U.S. Dollar. currency of our operations is primarily The functional U.S. Dollars. gains or unrealized currency Accordingly, currencies. currency of the country as their functional Franc or the local to the U.S. Dollar are denominated in other currencies the translation of net assets or liabilities losses resulting from income (loss) in component of other comprehensive cumulative translation adjustment accumulated in the shareholders' equity. anticipated purchases and assets and liabilities denominated in currencies exposure related to anticipated sales, currencies worldwide, of which the most significant to transact business in over 30 We other than the U.S. Dollar. Pound, Canadian Dollar, British Dollar, Taiwanese Australian Dollar, operations are the Euro, Chinese Renminbi, and Mexican Peso. For the year ended March 31, 2018, net sales were in approximately 50% of our Yen Japanese The mix of our cost of goods 25% of our net sales denominated in Euro. non-U.S. denominated currencies, with of our sales, with a larger portion from the mix are significantly different sold and operating expenses by currency has a strengthening U.S. Dollar A denominated in Euro and other currencies. denominated in U.S. Dollar and less adverse than the favorable impact on our operating expenses, resulting in an more unfavorable impact on our sales U.S. Dollar remains at its current strong levels in comparison to other impact on our operating results. If the The table below provides information periods as well. our results of operations in future currencies, this will affect are sensitive to currency exchange rate changes, primarily assets and about our underlying transactions that greater than where the net exposure is other than the base currency, liabilities denominated in currencies the U.S. Dollar impact on earnings of a 10% appreciation The table also presents $0.5 million as of March 31, 2018. currency as compared with the transaction currency (in thousands): and a 10% depreciation of the base

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 in Base Currency (Loss) from 10% Change (Loss) from Currency Exchange Gain Exchange Currency March 31, 2018 March 806 (73) 90 577 (52) 64 (543)(956) 49 87 (60) (106) (672)(796)(908) 61 72 83 (75) (88) (101) 7,584 (689) 843 1,372 (125) 152 (1,058)(2,364) 96 215 (118) (263) (2,025)(2,523) 184 229 (225) (280) 12,99610,86210,326 (1,181) (987) (939) 1,444 1,207 1,147 (14,045)(18,450)(31,800) 1,277 1,677 2,891 (1,561) (2,050) (3,533) Position Appreciation Depreciation Currency Long (Short) Net Exposed $ 17,464 $ (1,588) $ 1,940 $ (14,153) $ 1,287 $ (1,573) 35 34 Currency Transaction Brazilian Real Brazilian Dollar Canadian Yen Japanese Mexican Peso Australian Dollar Russian Ruble Norwegian Kroner Indian Rupee Korean Wan Swiss Franc Singapore Dollar Dollar Taiwanese Chinese Renminbi Croatian Kuna U.S. Dollar Arab Emirates Dirham Russian Ruble Polish Zloty British Pound Swedish Krona

Base Currency positions represent net liabilities being held in the transaction currency. positions represent net liabilities being 2018, held in Chinese Renminbi totaled $31.8 As of March 31, net liabilities costs transacted in Chinese Renminbi. million. Derivatives within four months. Gains and losses in the fair value of the effective These hedging contracts mature purchases. comprehensive loss until the hedged portion of the hedges are deferred as a component of accumulated other to cost of goods sold. Cash flows inventory purchases are sold, at which time the gains or losses are reclassified As of statements of cash flows. from such hedges are classified as operating activities in the consolidated related to forecasted inventory purchases. March 31, 2018, there were no currency forward contracts outstanding outstanding related to forecasted As of March 31, 2017, the notional amounts of currency forward contracts is recorded in accumulated other inventory purchases was $59.4 million. Deferred realized loss of $3.2 million to cost of goods sold when the related comprehensive loss as of March 31, 2018, and is expected to be reclassified inventory is sold. other than the functional currencies of our fluctuations on certain receivables or payables denominated in currencies The primary risk managed by using forward contracts generally mature within one month. These subsidiaries. The gains or losses on these contracts are forward and swap contracts is the currency exchange rate risk. from these contracts are classified as recognized in earnings based on the changes in fair value. Cash flows The notional amounts of these contracts operating activities in the consolidated statements of cash flows. Open forward and million, respectively. outstanding as of March 31, 2018, and 2017 were $47.2 million and $56.7 Australian Dollars, Dollars, Taiwanese in swap contracts as of March 31, 2018, and 2017 consisted of contracts Canadian Dollars and British Pounds at future dates at pre-determined exchange Yen, Mexican Pesos, Japanese rates. 33 Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments. of financial instruments. in the fair value due to adverse changes potential for loss represents the Market risk Dollar can rates compared to the U.S. Dollars. Changes in currency exchange report our results in U.S. We We are exposed to currency exchange rate risk as we transact business in multiple currencies, including business in multiple currencies, including exchange rate risk as we transact are exposed to currency We QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK MARKET ABOUT DISCLOSURES QUALITATIVE AND QUANTITATIVE Market Risk These rates. rates and interest in currency exchange movements exposure to adverse concern, we face As a global impact on our a material adverse and could have practices evolve time as business may change over exposures results. financial Rates Currency Exchange are translated into statements of our non-U.S. subsidiaries on our results when the financial have a material impact Swiss Certain operations use the the U.S. Dollar. currency of our operations is primarily The functional U.S. Dollars. gains or unrealized currency Accordingly, currencies. currency of the country as their functional Franc or the local to the U.S. Dollar are denominated in other currencies the translation of net assets or liabilities losses resulting from income (loss) in component of other comprehensive cumulative translation adjustment accumulated in the shareholders' equity. anticipated purchases and assets and liabilities denominated in currencies exposure related to anticipated sales, currencies worldwide, of which the most significant to transact business in over 30 We other than the U.S. Dollar. Pound, Canadian Dollar, British Dollar, Taiwanese Australian Dollar, operations are the Euro, Chinese Renminbi, and Mexican Peso. For the year ended March 31, 2018, net sales were in approximately 50% of our Yen Japanese The mix of our cost of goods 25% of our net sales denominated in Euro. non-U.S. denominated currencies, with of our sales, with a larger portion from the mix are significantly different sold and operating expenses by currency has a strengthening U.S. Dollar A denominated in Euro and other currencies. denominated in U.S. Dollar and less adverse than the favorable impact on our operating expenses, resulting in an more unfavorable impact on our sales U.S. Dollar remains at its current strong levels in comparison to other impact on our operating results. If the The table below provides information periods as well. our results of operations in future currencies, this will affect are sensitive to currency exchange rate changes, primarily assets and about our underlying transactions that greater than where the net exposure is other than the base currency, liabilities denominated in currencies the U.S. Dollar impact on earnings of a 10% appreciation The table also presents $0.5 million as of March 31, 2018. currency as compared with the transaction currency (in thousands): and a 10% depreciation of the base 36 REPORT ON CORPORATE GOVERNANCE 2018 GOVERNANCE ON CORPORATE REPORT )

0.24 0.24 (2) 1,833 39,425 510,552 $ $ $ $ (1) ) ) 67

(33 202 1,189 0.59 0.60 2,634 734 (9,925 97,465 161,977165,901 162,023 166,526 150,487 161,461 666,707 418,015 311,303 246,763 197,779 $ $ $ ) )

0.28 0.29 (683 47,045 $ $ $ ) 74

Year ended March 31, 2017 Year (85 0.13 0.14 21,941 83,872 93,792 102,036 99,941 $ $ $

0.20 0.21 2,574 1,613 1,163 1,929 1,470 34,404 164,374169,387 162,130 164,303 162,222 165,549 173,128 142,771 153,462 377,617 309,625 356,268 212,235 168,626109,572 206,873 $ $ $ $592,426 $479,864 $564,304 $ $ (1) ) (1,543) (1,008)

0.48 0.49 (324 80,773 164,248 169,079 175,338 812,021 533,631 275,601 116,153 35 $ 36

4,087 20,040 5,032 3,057 5,593 1,647 (1,184 56,358 60,445 100,813 39,436 24,998 52,638 99,112 38,241 58,938 100,263 39,107 25,855 53,411 96,276 36,318 36,64725,266 34,398 22,291 37,616 23,387 31,951 25,740 32,632 25,216 32,284 24,631 33,658 24,683

Year ended March 31, 2018 Year (55) (61) — — 1,175 1,048 874 1,872 151 (90 1,504 2,011 2,789 1,390 2,491 2,496 2,553 1,293 1,748 1,494 1,279 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1,029) 459 31,571 31,425 35,099 25,409 163,407168,339 164,120 169,078 162,243 168,799 334,774 402,722 193,668 227,737 102,378 107,386 $ 0.22 $ 0.33 $ $ 37,007 $ $ 0.23 $ 0.34 $ $529,946 $ 632,470 $ The following table contains selected unaudited quarterly financial data for fiscal years 2018 and 2017 (in Total operating expenses operating Total Basic Diluted Diluted Restructuring charges (credits), net Basic Marketing and selling Research and development General and administrative Amortization of intangible assets and acquisition-related costs Change in fair value of contingent consideration for business acquisition (1,978) (2,930) — — — — Shares used to compute net income per share: Net Income Net income per share: Income before income taxes Provision for (benefit from) income taxes (5,436) Operating income Interest income (expense), net Other income (expense), net Net sales Cost of goods sold assets and Amortization of intangible on inventory purchase accounting effect Gross profit Operating expenses: ______Refer to Note from businesses acquired during the year. (1) Financial results of all the periods in fiscal years 2018 and 2017 included the impact 3 to the consolidated financial statements. estimated breakage attributable to customer The Company recorded an increase of net sales of $14.4 million primarily due to a change in (2) during the fourth quarter of fiscal year 2017, compared with the incentive, cooperative marketing and pricing program accruals in EMEA April 26, 2017. preliminary results furnished to the SEC in the Current Report on Form 8-K on LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH DATA SUPPLEMENTARY DATA FINANCIAL QUARTERLY (unaudited) thousands, except amounts): per share

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018

37 36 REPORT ON CORPORATE GOVERNANCE 2018 GOVERNANCE ON CORPORATE REPORT )

0.24 0.24 (2) 1,833 39,425 510,552 $ $ $ $ (1) ) ) 67

(33 202 1,189 0.59 0.60 2,634 734 (9,925 97,465 161,977165,901 162,023 166,526 150,487 161,461 666,707 418,015 311,303 246,763 197,779 $ $ $ ) )

0.28 0.29 (683 47,045 $ $ $ ) 74

Year ended March 31, 2017 Year (85 0.13 0.14 21,941 83,872 93,792 102,036 99,941 $ $ $

0.20 0.21 2,574 1,613 1,163 1,929 1,470 34,404 164,374169,387 162,130 164,303 162,222 165,549 173,128 142,771 153,462 377,617 309,625 356,268 212,235 168,626109,572 206,873 $ $ $ $ $592,426 $479,864 $564,304 $ (1) ) (1,543) (1,008)

0.48 0.49 (324 80,773 164,248 169,079 175,338 812,021 533,631 275,601 116,153 35 $

4,087 20,040 5,032 3,057 5,593 1,647 (1,184 56,358 58,938 100,263 39,10760,445 100,813 25,855 39,436 53,411 24,998 96,276 52,638 36,318 99,112 38,241 36,64725,266 34,398 22,291 37,616 23,387 31,951 25,740 32,632 25,216 32,284 24,631 33,658 24,683

Year ended March 31, 2018 Year (55) (61) — — 1,175 1,048 874 1,872 151 (90 1,504 2,011 2,789 1,390 2,491 2,496 2,553 1,293 1,748 1,494 1,279 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 (1,029) 459 31,425 31,571 35,099 25,409 163,407168,339 164,120 169,078 162,243 168,799 334,774 402,722 193,668 227,737 102,378 107,386 $ 0.22 $ 0.33 $ $ 37,007 $ $ 0.23 $ 0.34 $ $529,946 $ 632,470 $ The following table contains selected unaudited quarterly financial data for fiscal years 2018 and 2017 (in Total operating expenses operating Total Basic Diluted Diluted Restructuring charges (credits), net Basic Marketing and selling Research and development General and administrative Amortization of intangible assets and acquisition-related costs Change in fair value of contingent consideration for business acquisition (1,978) (2,930) — — — — Shares used to compute net income per share: Net Income Net income per share: Operating income Interest income (expense), net Other income (expense), net Income before income taxes Provision for (benefit from) income taxes (5,436) Net sales Cost of goods sold assets and Amortization of intangible on inventory purchase accounting effect Gross profit Operating expenses: ______Refer to Note from businesses acquired during the year. (1) Financial results of all the periods in fiscal years 2018 and 2017 included the impact 3 to the consolidated financial statements. estimated breakage attributable to customer The Company recorded an increase of net sales of $14.4 million primarily due to a change in (2) during the fourth quarter of fiscal year 2017, compared with the incentive, cooperative marketing and pricing program accruals in EMEA April 26, 2017. preliminary results furnished to the SEC in the Current Report on Form 8-K on LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH DATA SUPPLEMENTARY DATA FINANCIAL QUARTERLY (unaudited) thousands, except amounts): per share May 4, 2017 https://www.six- March 31, 2018 Relevant Date February 16, 2016 . (2) Percentage of Voting Rights Voting (1) Shares February 16, 2016. Number of 8,386,2456,929,9715,259,5005,239,853 4.8% 4.0% 3.0% 3.0% September 29, 2014 38 (6) Greater than 3% Shareholders as of March 31, 2018 as of March 3% Shareholders Greater than (4) (3) (5)

In accordance with the Swiss number law, of shares set forth includes (i) shares beneficially owned or deemed to be beneficially owned by the (ii) relevant shares shareholder, borrowed from third parties, held in connection with a repurchase agreement or as a collateral, discretionary authority and to exercise voting rights. The table does not (iii) include positions in derivatives. Positions in shares held for the account of derivatives can third be accessed parties on the with internet platform operated a by the SIX Swiss Exchange at exchange-regulation.com/en/home/publications/significant-shareholders.html. commercial Swiss the into entered rights voting of number aggregate the on based calculated are Shareholdings This aggregate number was 173,106,620 voting rights March 31, 2018.as of register. Exchange REgulation on May 9, 2017. BlackRock, Inc. subsequently reported rights) voting 10,239,913 Company's shares the of beneficially 5.9% (or subsidiaries its and Inc. BlackRock, by 2017 31, December of as owned on a Schedule and 13G filed with the U.S. Securities Commission Exchange on February 2018. 1, filed 13G Schedule a on based is subsidiaries indirect its through AG Suisse Credit by held shares of number The with the U.S. Securities and Exchange Commission on to the knowledge of the Company. fiscal year, Position as of the end of Logitech’s SIX Exchange Regulation on October 7, 2014. To the knowledge of the Company, the beneficial owners holding more than 3% of the voting rights of the Company Company the of rights voting the of 3% than more holding owners beneficial the Company, the of knowledge the To of as shareholders large and officers executive directors, by Company the of ownership share the on Information 1.3 Cross-shareholdings Logitech has no shareholdings in companies that to its knowledge have shareholdings in Logitech. 2.1 Share Capital As of March 31, 2018, Logitech International S.A.’s nominal share capital was CHF 43,276,655, consisting of 1.2 Significant Shareholders 1.2 Significant certain exceeding rights voting exercise to authority discretionary the has or owns who person any law Swiss Under Name BlackRock, Inc. AG Credit Suisse Daniel Borel AG UBS Fund Management (Switzerland) as of March 31, 2018, other than the Company as of March 31, 2018,itself, were as follows: ______equal is (which outstanding shares Company’s the of number the on based law, Swiss by required as 2018, 30, June heading the under http://ir.logitech.com, at available to Meeting, the shares issued less the General shares held in the Company’s treasury), is Annual set forth in the Company’s Invitation, Proxy 2018 the for Report Annual and Statement “Security Ownership of Certain Beneficial Owners and Management as of June 30, 2018”. Information shares held by the Company in treasury forth in Section is set 2.3 below. of the own 2. Capital Structure 173,106,620 shares with a par value of CHF 0.25 each. percentage thresholds of a company incorporated in Switzerland whose equity securities are listed on a stock exchange exchange stock a on listed are securities equity whose Switzerland in incorporated company a of thresholds percentage receipt Following holdings. such of exchange Swiss relevant the and company the notify to required is Switzerland in the by received notices the Logitech, to respect With public. the inform to required is company the notification, this of Company pursuant to these rules can be accessed on an internet platform operated by the SIX Swiss Exchange at https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html (1) (2) (3) The number of shares held by BlackRock, Inc. and its subsidiaries is based on a notification filed with the SIX (4) (5) (6) AG is based on a notification filed with the The number of shares held by UBS Fund Management (Switzerland) and its consolidated subsidiaries. and Board Committee Charters. 37 38 which this Report is a part. which this Report Meeting, of REPORT ON CORPORATE GOVERNANCE CORPORATE ON REPORT “our,” and “us” refer to Logitech International S.A. “our,” Structure of Incorporation, Organizational Regulations (Bylaws), a stock exchange as of March 31, 2018. our Articles Operational Group Operational Group Logitech is a world leader in designing, manufacturing and marketing products that help connect people to and marketing products that help leader in designing, manufacturing Logitech is a world This Report has been designed This Report has been Exchange. Directive the SIX Swiss to comply with the Corporate Governance of 1.1 Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent holding company Logitech “Company” References in this Report on Corporate International S.A. Governance to the refers to Logitech believes that sound corporate governance practices are essential to an open and responsible corporation. and responsible open an to practices are essential governance sound corporate believes that Logitech Market, Global Select Nasdaq and the Exchange Swiss SIX the on both securities are listed whose a company As Logitech International S.A. directly or indirectly Logitech International directly owns 100% of all the companies in the Logitech group, S.A. through Financial Analysis of Condition and Results of Operations under Discussion and Management’s Please refer to Portions of the Report are also incorporated by reference from elsewhere in our Invitation, Proxy Statement and Annual Portions of the Report are also incorporated by reference from elsewhere in Proxy our Invitation, Statement and Report for the 2018 Annual General 1. Shareholders Group Structure and experiences around Logitech created products to improve More than 35 years ago, digital and cloud experiences. multi-category company designing products or PC, platform, and today it is a multi-brand, the personal computer, video sharing and creating any digital content such as music, gaming, that enable better experiences consuming, in the cloud. Logitech's brands include Logitech, mobile device or and computing, whether it is on a computer, ASTRO Gaming. Jaybird, Ultimate Ears, Logitech G and Apples, in of Logitech since 1988. is a Swiss holding Logitech International company with its registered office S.A. America), and South Americas (including North the business through subsidiaries in its Switzerland, which conducts Japan, India Taiwan, Asia Pacific (including, among other countries, China, Africa) and (Europe, Middle East, EMEA LOGN; security Swiss Exchange International are listed on both the SIX (Ticker: Australia). Shares of Logitech S.A. and Securities The International H50430232). CUSIP LOGI, (Ticker: Global Select Market Nasdaq the number: 257513) and market capitalization, March 31, 2018, our based As of our shares is CH0025751329. Identification Number (ISIN) of $6.0 billion 5.8 billion). shares, amounted to approximately (CHF 164,579,978,of treasury net on outstanding shares of 2018.March 31, shares as of in its holdings Logitech below for information on International S.A.’s section 1.2 Refer to “Logitech,” “we,” References to Our corporate governance practices reflect a continuing commitment to corporate accountability, sound and judgment, governance Our corporate a continuing practices reflect to corporate accountability, commitment transparency to shareholders. both of regulatory requirements and legal the by principles is guided governance corporate sound to commitment our internal guidelines corporate regarding governance are United In addition, Logitech’s Switzerland and the States. provided in which it carries on its business and operations. Principal subsidiaries operating include: Logitech Logitech Inc., Europe of Logitech the table in (Suzhou) Co., Ltd. For a list subsidiaries, our of Note 4 refer to Technology and Logitech S.A., subsidiaries have None of Logitech International S.A.’s and 115. on pages 114 Swiss Statutory Financial Statements securities listed on operational group Annual Report for further information on Logitech’s the heading “Overview of our Company” in our structure.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 May 4, 2017 https://www.six- March 31, 2018 Relevant Date February 16, 2016 . (2) Percentage of Voting Rights Voting (1) Shares Number of 8,386,2456,929,9715,259,5005,239,853 4.8% 4.0% 3.0% 3.0% September 29, 2014 39 38 (6) Greater than 3% Shareholders as of March 31, 2018 as of March 3% Shareholders Greater than (4) (3) (5)

exchange-regulation.com/en/home/publications/significant-shareholders.html. commercial Swiss the into entered rights voting of number aggregate the on based calculated are Shareholdings This aggregate number was 173,106,620 voting rights March 31, 2018.as of register. Exchange REgulation on May 9, 2017. BlackRock, Inc. subsequently reported rights) voting 10,239,913 Company's shares the of beneficially 5.9% (or subsidiaries its and Inc. BlackRock, by 2017 31, December of as owned on a Schedule and 13G filed with the U.S. Securities Commission Exchange on February 2018. 1, filed 13G Schedule a on based is subsidiaries indirect its through AG Suisse Credit by held shares of number The with the U.S. Securities and Exchange Commission 16, 2016. on February to the knowledge of the Company. fiscal year, Position as of the end of Logitech’s SIX Exchange Regulation on October 7, 2014. In accordance with the Swiss number law, of shares set forth includes (i) shares beneficially owned or deemed to be beneficially owned by the (ii) relevant shares shareholder, borrowed from third parties, held in connection with a repurchase agreement or as a collateral, discretionary authority and to exercise voting rights. The table does not (iii) include positions in derivatives. Positions in shares held for the account of derivatives can third be accessed parties on the with internet platform operated a by the SIX Swiss Exchange at Information on the share ownership of the Company by directors, executive officers and large shareholders as of as shareholders large and officers executive directors, by Company the of ownership share the on Information 1.3 Cross-shareholdings Logitech has no shareholdings in companies that to its knowledge have shareholdings in Logitech. 2.1 Share Capital As of March 31, 2018, Logitech International S.A.’s nominal share capital was CHF 43,276,655, consisting of To the knowledge of the Company, the beneficial owners holding more than 3% of the voting rights of the Company Company the of rights voting the of 3% than more holding owners beneficial the Company, the of knowledge the To Under Swiss law any person who owns or has the discretionary authority to exercise voting rights exceeding certain exceeding rights voting exercise to authority discretionary the has or owns who person any law Swiss Under 1.2 Significant Shareholders 1.2 Significant Name BlackRock, Inc. Credit Suisse AG Credit Suisse Daniel Borel AG UBS Fund Management (Switzerland) June 30, 2018, as required by Swiss law, based on the number of the Company’s shares outstanding (which is equal is (which outstanding shares Company’s the of number the on based law, Swiss by required as 2018, 30, June heading the under http://ir.logitech.com, at available to Meeting, the shares issued less the General shares held in the Company’s treasury), is Annual set forth in the Company’s Invitation, Proxy 2018 the for Report Annual and Statement “Security Ownership of Certain Beneficial Owners and Management as of June 30, 2018”. Information shares held by the Company in treasury forth in Section is set 2.3 below. of the own 2. Capital Structure 173,106,620 shares with a par value of CHF 0.25 each. as of March 31, 2018, other than the Company as of March 31, 2018,itself, were as follows: percentage thresholds of a company incorporated in Switzerland whose equity securities are listed on a stock exchange exchange stock a on listed are securities equity whose Switzerland in incorporated company a of thresholds percentage receipt Following holdings. such of exchange Swiss relevant the and company the notify to required is Switzerland in the by received notices the Logitech, to respect With public. the inform to required is company the notification, this of Company pursuant to these rules can be accessed on an internet platform operated by the SIX Swiss Exchange at https://www.six-exchange-regulation.com/en/home/publications/significant-shareholders.html ______(2) (3) The number of shares held by BlackRock, Inc. and its subsidiaries is based on a notification filed with the SIX (4) (5) (6) AG is based on a notification filed with the The number of shares held by UBS Fund Management (Switzerland) (1) and its consolidated subsidiaries. and Board Committee Charters. 37 which this Report is a part. which this Report Meeting, of REPORT ON CORPORATE GOVERNANCE CORPORATE ON REPORT “our,” and “us” refer to Logitech International S.A. “our,” Structure of Incorporation, Organizational Regulations (Bylaws), a stock exchange as of March 31, 2018. our Articles Operational Group Operational Group Logitech is a world leader in designing, manufacturing and marketing products that help connect people to and marketing products that help leader in designing, manufacturing Logitech is a world Logitech believes that sound corporate governance practices are essential to an open and responsible corporation. and responsible open an to practices are essential governance sound corporate believes that Logitech Market, Global Select Nasdaq and the Exchange Swiss SIX the on both securities are listed whose a company As designed This Report has been Exchange. Directive the SIX Swiss to comply with the Corporate Governance of 1.1 Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent holding company Logitech “Company” References in this Report on Corporate International S.A. Governance to the refers to Financial Analysis of Condition and Results of Operations under Discussion and Management’s Please refer to Logitech International S.A. directly or indirectly Logitech International directly owns 100% of all the companies in the Logitech group, S.A. through Our corporate governance practices reflect a continuing commitment to corporate accountability, sound judgment, and governance Our corporate a continuing practices reflect to corporate accountability, commitment transparency to shareholders. both of regulatory requirements and legal the by principles is guided governance corporate sound to commitment our internal guidelines corporate regarding governance are United In addition, Logitech’s Switzerland and the States. provided in Annual Portions of the Report are also incorporated by reference from elsewhere in Proxy our Invitation, Statement and Report for the 2018 Annual General 1. Shareholders Group Structure and experiences around Logitech created products to improve More than 35 years ago, digital and cloud experiences. multi-category company designing products or PC, platform, and today it is a multi-brand, the personal computer, video sharing and creating any digital content such as music, gaming, that enable better experiences consuming, in the cloud. Logitech's brands include Logitech, mobile device or and computing, whether it is on a computer, ASTRO Gaming. Jaybird, Ultimate Ears, Logitech G and Apples, in of Logitech since 1988. is a Swiss holding Logitech International company with its registered office S.A. America), and South Americas (including North the business through subsidiaries in its Switzerland, which conducts Japan, India Taiwan, Asia Pacific (including, among other countries, China, Africa) and (Europe, Middle East, EMEA LOGN; security Swiss Exchange International are listed on both the SIX (Ticker: Australia). Shares of Logitech S.A. and Securities The International H50430232). CUSIP LOGI, (Ticker: Global Select Market Nasdaq the number: 257513) and market capitalization, March 31, 2018, our based As of our shares is CH0025751329. Identification Number (ISIN) of $6.0 billion 5.8 billion). shares, amounted to approximately (CHF 164,579,978,of treasury net on outstanding shares of 2018.March 31, shares as of in its holdings Logitech below for information on International S.A.’s section 1.2 Refer to “Logitech,” “we,” References to which it carries on its business and operations. Principal subsidiaries operating include: Logitech Logitech Inc., Europe of Logitech the table in of our (Suzhou) Co., Ltd. For a list subsidiaries, Note 4 refer to Technology and Logitech S.A., subsidiaries have None of Logitech International S.A.’s and 115. on pages 114 Swiss Statutory Financial Statements securities listed on operational group Annual Report for further information on Logitech’s the heading “Overview of our Company” in our structure. 1,265 9,580 10,845 2016 653,367 (114,351) Amounts 2016

Repurchased

2017 1,265 9,580 10,845 As of March 31, 740,727 (166,391) 2017

Amounts As of March 31, As of March

Approved

2018 Shares 17,311 $250,000 9,113 $ 155,983 17,311 $250,000 843 30,107 CHF CHF — 6,250CHF CHF 6,250 CHF 6,250 CHF 0 6,250 CHF CHF CHF 6,250 6,250 —

1,265 9,580

10,845 782,284 (161,981) 2018 40 CHF 674,425 CHF 628,458 CHF 593,138 CHF 43,277 CHF 43,277 CHF 43,277 In March 2017, the Company's Board of Directors approved the 2017 share buyback program, which In March 2017, the Company's Board of Directors approved the 2017 share The following table shows authorized and conditional share capital as of the last three fiscal year ends (in thousands): (in ends year fiscal three last the of as capital share conditional and authorized shows table following The For information on Logitech’s shareholders’ equity as of March 31, 2018 and 2017, refer to the Swiss Statutory A summary of the approved share buyback program during fiscal years 2018, 2017 and 2016 is shown in the Share Repurchases In March 2014, the Board Company’s of Directors approved the 2014 share buyback program, which authorizes During million. $30.7 approximately for repurchased were shares million 0.9 approximately 2018, year fiscal During Market - Disclosures Financial “Additional to refer please repurchases share Logitech’s on information further For 2.3 Changes in Shareholders’ Equity in Shareholders’ 2.3 Changes As of March 31, 2018, 2017 and 2016, equity balances of in Logitech shareholders’ International S.A., based on March 2014 March 2017 Share Buyback Program Total shareholders’ equity shareholders’ Total Share capital Legal capital reserves: contributions - Reserve for capital Retained earnings Available shares Treasury Legal retained earnings reserves Legal retained earnings earnings reserves - General retained

Authorized share capital First conditional share capital Second conditional share capital Balance Sheets on page 110 of our Annual Report. Balance Sheets on page 110 our of following table (in thousands, excluding transaction costs). the Company to use up to $250.0 million to purchase its own shares. The Company’s 2014 share buyback program April 2017. expired in shares following the expiration date of 2014 authorizes the Company to use up to $250.0 million to purchase its own for a period of The Company's 2017 share buyback program is expected to remain in effect share buyback program. market, through block trades or otherwise. three years. Shares may be repurchased from time to time on the open on market conditions and other Purchases may be started or stopped at any time without prior notice depending factors. year fiscal During million. $83.8 approximately for repurchased were shares million 4.0 approximately 2017, year fiscal 2016, approximately 5.0 million shares were repurchased approximately for $70.4 million. Annual our in Securities” Equity of Purchases Issuer and Matters Stockholder Related Equity, Common Registrant’s for Report. the parent company’s Swiss Statutory Financial Statements, were were Statutory Financial Swiss (in thousands): as follows Statements, company’s the parent 39 40 The Board right of to Directors subscribe may for limit the or bonds withdraw by preference the shareholders’ for Nominal Nominal conditional share capital designated to cover the potential issuance of shares under employee equity Capital Conditional Share Authorized and on the Company’s 2.2 Details Authorized share capital. Under Swiss corporate law, the total nominal par value of the shares authorized by Conditional share capital. Under Swiss corporate the law, total nominal par value of the shares authorized by increased be may Company the of capital share the Incorporation, of Articles Company’s the of 25 Article to Pursuant Although the Company has been authorized by its shareholders to use conditional capital to meet its obligations In addition, pursuant Article to 26 of the Articles Company’s of Incorporation, the share capital of the Company have preemptive rights to subscribe to the newly issuable issued shares on conversion of the bonds. valid reasons, in particular (a) if the bonds are issued in connection with the financing or refinancing of the acquisition the of refinancing or financing the with connection in issued are bonds the if (a) particular in reasons, valid of one or more companies, businesses or parts of businesses, or (b) to facilitate the placement of the bonds on the period international markets exercise or the to increase conditions, the security market holder base at of If the issued the Company. be shareholders’ right to must subscribe bonds the withdrawn, or limited is preference by bonds the for of the conversion rights must not exceed 7 years from the date of issuance of the bonds, and the conversion price must be set at a level that is not lower than the market price of the shares preceding the determination of conditions for the bonds. the final capital designated to cover conversion rights that may be granted in connection with a future issuance of debt obligations obligations debt of issuance future a with connection incentive in plans amounts granted to CHF 6,250,000, be consisting of 25,000,000 may shares. In that addition, nominal rights conditional share conversion cover to designated capital for 2.2 section to Refer shares. 25,000,000 of consisting 6,250,000, CHF to amounts shares Logitech into convertible and authorized conditional capital. more information the Company’s on shareholders for future issuance, other than to cover derivative securities, is referred to as authorized share capital. Logitech As of March 31, 2018, has no authorized share capital. referred is company a by treasury issued securities available derivative of or exercise or capital conversion the conditional on issuance sufficient future for have shareholders must company a law, Swiss Under capital. share conditional as to conversion shares to cover any rights under derivative securities securities at the time the derivative are issued. (representing each 0.25 CHF of value par a with shares 25,000,000 to up of issuance the through 6,250,000 CHF by cover to is capital share conditional this of purpose The 2018). 31, March of as capital share Company's the of 14.4% its under Logitech of directors and officers employees, to granted be may that or granted rights equity other or option employee equity incentive plans. The conditional share shareholders do not have pre-emptive rights capital to subscribe to the newly issued shares issued out of conditional share increase does Benefit Employee - not 6 Note to refer please have plans incentive equity employee an Logitech’s on information more For expiration capital. date. The Annual Report. Plans - to our Consolidated Financial Statements included in our Company the plans, incentive equity employee its under exercises or purchases employee of result a as shares deliver to has for some years used fulfill shares held in treasury obligations to its under the plans. may also be increased by CHF 6,250,000 through the issuance of up to 25,000,000 shares with a par value of CHF conditional this of purpose The 2018). convertible 31, March of bonds as capital share of Company's the of issuance 14.4% (representing future each 0.25 a with connection in granted be may that rights conversion cover to is capital share into Logitech shares. The conditional share capital increase does not have an expiration date. The shareholders do not

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 1,265 9,580 10,845 2016 653,367 (114,351) Amounts 2016

Repurchased

2017 1,265 9,580 10,845 As of March 31, 740,727 (166,391) 2017

Amounts As of March 31, As of March

Approved

2018 Shares 17,311 $250,000 9,113 $ 155,983 17,311 $250,000 843 30,107 CHF CHF — 6,250CHF CHF 6,250 CHF 6,250 CHF 0 6,250 CHF CHF CHF 6,250 6,250 —

1,265 9,580

10,845 782,284 (161,981) 2018 41 40 CHF 674,425 CHF 628,458 CHF 593,138 CHF 43,277 CHF 43,277 CHF 43,277 In March 2017, the Company's Board of Directors approved the 2017 share buyback program, which In March 2017, the Company's Board of Directors approved the 2017 share The following table shows authorized and conditional share capital as of the last three fiscal year ends (in thousands): (in ends year fiscal three last the of as capital share conditional and authorized shows table following The For information on Logitech’s shareholders’ equity as of March 31, 2018 and 2017, refer to the Swiss Statutory A summary of the approved share buyback program during fiscal years 2018, 2017 and 2016 is shown in the Share Repurchases In March 2014, the Board Company’s of Directors approved the 2014 share buyback program, which authorizes During million. $30.7 approximately for repurchased were shares million 0.9 approximately 2018, year fiscal During Market - Disclosures Financial “Additional to refer please repurchases share Logitech’s on information further For 2.3 Changes in Shareholders’ Equity in Shareholders’ 2.3 Changes As of March 31, 2018, 2017 and 2016, equity balances of in Logitech shareholders’ International S.A., based on March 2014 March 2017 Share Buyback Program Total shareholders’ equity shareholders’ Total Treasury shares Treasury Share capital Legal capital reserves: contributions - Reserve for capital Retained earnings Available Legal retained earnings reserves Legal retained earnings earnings reserves - General retained

First conditional share capital Second conditional share capital Authorized share capital Balance Sheets on page 110 of our Annual Report. Balance Sheets on page 110 our of following table (in thousands, excluding transaction costs). the Company to use up to $250.0 million to purchase its own shares. The Company’s 2014 share buyback program April 2017. expired in shares following the expiration date of 2014 authorizes the Company to use up to $250.0 million to purchase its own for a period of The Company's 2017 share buyback program is expected to remain in effect share buyback program. market, through block trades or otherwise. three years. Shares may be repurchased from time to time on the open on market conditions and other Purchases may be started or stopped at any time without prior notice depending factors. year fiscal During million. $83.8 approximately for repurchased were shares million 4.0 approximately 2017, year fiscal 2016, approximately 5.0 million shares were repurchased approximately for $70.4 million. Annual our in Securities” Equity of Purchases Issuer and Matters Stockholder Related Equity, Common Registrant’s for Report. the parent company’s Swiss Statutory Financial Statements, were were Statutory Financial Swiss (in thousands): as follows Statements, company’s the parent 39 The Board right of to Directors subscribe may for limit the or bonds withdraw by preference the shareholders’ for Nominal Nominal conditional share capital designated to cover the potential issuance of shares under employee equity Capital Conditional Share Authorized and on the Company’s 2.2 Details Authorized share capital. Under Swiss corporate law, the total nominal par value of the shares authorized by Conditional share capital. Under Swiss corporate the law, total nominal par value of the shares authorized by increased be may Company the of capital share the Incorporation, of Articles Company’s the of 25 Article to Pursuant Although the Company has been authorized by its shareholders to use conditional capital to meet its obligations In addition, pursuant Article to 26 of the Articles Company’s of Incorporation, the share capital of the Company have preemptive rights to subscribe to the newly issuable issued shares on conversion of the bonds. valid reasons, in particular (a) if the bonds are issued in connection with the financing or refinancing of the acquisition the of refinancing or financing the with connection in issued are bonds the if (a) particular in reasons, valid of one or more companies, businesses or parts of businesses, or (b) to facilitate the placement of the bonds on the period international markets exercise or the to increase conditions, the security market holder base at of If the issued the Company. be shareholders’ right to must subscribe bonds the withdrawn, or limited is preference by bonds the for of the conversion rights must not exceed 7 years from the date of issuance of the bonds, and the conversion price must be set at a level that is not lower than the market price of the shares preceding the determination of conditions for the bonds. the final capital designated to cover conversion rights that may be granted in connection with a future issuance of debt obligations obligations debt of issuance future a with connection incentive in plans amounts granted to CHF 6,250,000, be consisting of 25,000,000 may shares. In that addition, nominal rights conditional share conversion cover to designated capital for 2.2 section to Refer shares. 25,000,000 of consisting 6,250,000, CHF to amounts shares Logitech into convertible and authorized conditional capital. more information the Company’s on shareholders for future issuance, other than to cover derivative securities, is referred to as authorized share capital. Logitech As of March 31, 2018, has no authorized share capital. referred is company a by treasury issued securities available derivative of or exercise or capital conversion the conditional on issuance sufficient future for have shareholders must company a law, Swiss Under capital. share conditional as to conversion shares to cover any rights under derivative securities securities at the time the derivative are issued. (representing each 0.25 CHF of value par a with shares 25,000,000 to up of issuance the through 6,250,000 CHF by cover to is capital share conditional this of purpose The 2018). 31, March of as capital share Company's the of 14.4% its under Logitech of directors and officers employees, to granted be may that or granted rights equity other or option employee equity incentive plans. The conditional share shareholders do not have pre-emptive rights capital to subscribe to the newly issued shares issued out of conditional share increase does Benefit Employee - not 6 Note to refer please have plans incentive equity employee an Logitech’s on information more For expiration capital. date. The Annual Report. Plans - to our Consolidated Financial Statements included in our Company the plans, incentive equity employee its under exercises or purchases employee of result a as shares deliver to has for some years used fulfill shares held in treasury obligations to its under the plans. may also be increased by CHF 6,250,000 through the issuance of up to 25,000,000 shares with a par value of CHF conditional this of purpose The 2018). convertible 31, March of bonds as capital share of Company's the of issuance 14.4% (representing future each 0.25 a with connection in granted be may that rights conversion cover to is capital share into Logitech shares. The conditional share capital increase does not have an expiration date. The shareholders do not 42 to 47. These powers and duties are further detailed in the Company's Organizational Regulations, can Company's Organizational Regulations, detailed in the which further and duties are These powers 47.to mandates in companies controlled Company control by the or that the Company; company a of or Company the of request the at assumes Directors of Board our of member a that mandates controlled and by it; mandates in companies that are not required to be registered in the commercial registry in Switzerland or in an equivalent Switzerland. registry outside of 3.3 Permitted Activities 3.3 Permitted may Directors of Board our of member each Incorporation, of Articles Company’s the of bis 17 Article to Pursuant The following are subject mandates limitations: to these not a) b) c) Mandates for legal entities under common control or at the request of such legal entities are counted as a single Board Each member of our Directors is currently in compliance of with the above-mentioned requirements. terms of office 3.4 Elections and For information regarding the time of first election and term of office of each member of our Board of Directors, be Board of Directors shall Incorporation, the members of the Articles of Company’s Article 14 of the Pursuant to The Company’s Articles of Incorporation do not differ from the statutory legal provisions with regard to the 3.5 Organization Invitation our see please committees, its and Directors of Board the of organization the regarding information For 3.6 Definition of areas of responsibility Company’s the Chairman, Company's the Directors, of Board the of duties and powers the regarding Information 3.7 Information and control instruments The means by which the Board of Directors supervises the Company's executive officers are described in our assume up to ten mandates in supreme management or supervisory bodies of legal entities outside the Logitech group, Logitech the outside entities legal of bodies supervisory or assume management may supreme Directors in of mandates Board ten our to of up member assume each addition, In companies. listed in be may four than more no which of non-remunerated up to ten mandates in the governing of charitable bodies or similar organizations. mandate for purposes of determining activities. permitted please see our Invitation and Proxy Statement for the Annual 2018 General Meeting, under the heading “Corporate Governance pages 31and Board of Directors Matters” at 47. to elected individually by the General Meeting for a term of office expiring after completion of the subsequent Annual General Meeting. Director Each member of our Board of be indefinitely shall re-eligible. appointment the compensation of the chairman, the members of committee and the independent proxy. of Board and Governance “Corporate heading the under Meeting, General Annual 2018 the for Statement Proxy and 47. Directors Matters” at pages 31 to Statement Proxy and Invitation our in forth set are Director Independent Lead Company's the and Officer Executive Chief Annual General for Meeting, the under 2018 the heading “Corporate Governance and Board of Directors Matters” at pages 31 be accessed on the default.aspx. Company's website at http://ir.logitech.com/corporate-governance/governance-documents/ and Governance “Corporate heading the under Meeting, General Annual 2018 the for Statement Proxy and Invitation Board of Directors Matters” at pages 47.31 to register with voting rights. the Company’s shareholders. of the Company’s “Genussscheine”). the extent we are notified of the transfer. entered into the share 41 42 Statements. our Proxy Statement. as “bonus certificates,” “bons de jouissance,” or “bons de “bonus certificates,” to as conditions. Nominee companies and trustees can be 3.1 and 3.2 Members of the Board of Directors and their Activities Outside of the Logitech Group 3.1 and 3.2 Members of the Board of Directors and their 2.6 Limitations on Transferability and Nominee Registration 2.6 Limitations on Transferability The Company transfer agent, maintain and its agent, Computershare, a share register as U.S. that lists the names voting rights. Refer to section 6.1 for the conditions for exercise of shareholders’ 2.7 Conversion and Option Rights issued warrants has not with conversion rights and other securities outstanding bonds or have any Logitech does not Logitech has issued stock options, including performance-based stock options and premium-priced stock options, 2.4 Share Categories 2.4 Share Shares. Logitech Registered registered one category shares S.A. has only International a par shares with of - Each share entitles its owner to dividends declared, even if the owner is not registered in the share register of the register of the share registered in not owner is if the dividends declared, even owner to entitles its Each share Articles of Incorporation, shareholders Company’s in compliance with Swiss law and the is restricted Unless this right Shares and Bonus Certificates 2.5 Non-Voting The Company The Company has not issued non-voting (“bons de participation,” shares “Partizipationsscheine”). For the current members of our Board of Directors, further information For the current members of our Board of Directors, further information regarding the Board of Directors and their Annual the for 2018 Statement Proxy and Invitation our please see Logitech group, the of outside activities material of Directors Matters” at pages 31 to 47. General Meeting, under the heading “Corporate Governance and Board of the registered owners of the Company’s shares. Registration in the share register occurs upon request and is not of the registered owners the of Company’s subject to any However, Articles of Incorporation or Swiss law. There are no restrictions on transfers of shares under the Company’s only holders are recorded in the share register of shares that are recognized as shareholders, and a transfer of shares reflected in the share register is recognized only to by the Company on its shares. and restricted stock units, including performance-based and directors. restricted stock units, to its employees Please Annual heading General Meeting, under the “Equity the 2018 Statement for our Invitation and Proxy refer to Compensation Plan Information” at pages 86 to 87, for details on option rights and restricted stock units issued under our employee equity incentive plans, as well as other information regarding those plans, and to Note 6 - Employee Benefit Plans - included in our Consolidated Financial value of CHF 0.25 per share. Each of the 173,106,620 issued shares carries the same rights. There are There no preferential Each of the 173,106,620 0.25 per share. value of CHF shares issued the same rights. carries rights and the exercise voting to the Company share register of in the be entered a shareholder must rights. However, put an item to right the shareholders or general meeting of convene a right to as the therefrom (such rights deriving rights participation an outline of to section 6 for agenda). Refer on the meeting’s Company. Under Swiss law, a company pays dividends upon approval by its shareholders. This request for shareholder a company pays dividends shareholders. upon approval by its Under Swiss law, Company. one-time distribution to than a 2013, other Board. Until the of recommendation follows the approval typically shareholders of additional paid-in capital out of its capital contribution reserves year in fiscal Logitech 2012, had not paid dividends since 1996, using retained invest earnings Company to in the growth of the in and, recent years, more shares. In 2013, the Board proposed beginning that, with fiscal year 2013 and subject to repurchase the Company’s Logitech distribute a recurring annual shareholders each year, and statutory auditors to approval by the Company’s gross dividend. In 2013, Logitech distributed dividend a gross of CHF 0.21 per share. In 2014, the Board distributed approximately Board distributed a gross dividend of September 2015, the In dividend 0.2625 per share. CHF a gross of CHF CHF 0.56 per share. a gross dividend of approximately Board distributed 2016, the In September per share. 0.51 In September 2017, distributed the Board a gross dividend of approximately On May 21, 2018, CHF 0.61 per share. shareholders and other Swiss statutory requirements, a the Board approved, subject to approval by the Company’s gross dividend of approximately CHF 0.6726 on an approved per share (based gross aggregate dividend of CHF Appropriation see “Proposal 3 - - March 31, 2018 as of of treasury shares, and the shares outstanding, net 110,700,000 in of Retained Dividend” Earnings and Declaration of have the pre-emptive right to subscribe for newly issued shares. Refer to section 2.2 for a description of the provisions pre-emptive subscription rights. shareholders’ restriction of the relating to the Articles of Incorporation the Company’s of services rendered or consideration for rights in provide financial securities that or equity issued certificates has not claims waived (referred 3. The Board of Directors

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 43 42 to 47. These powers and duties are further detailed in the Company's Organizational Regulations, can Company's Organizational Regulations, detailed in the which further and duties are These powers 47.to mandates in companies controlled Company control by the or that the Company; company a of or Company the of request the at assumes Directors of Board our of member a that mandates controlled and by it; mandates in companies that are not required to be registered in the commercial registry in Switzerland or in an equivalent Switzerland. registry outside of 3.7 Information and control instruments The means by which the Board of Directors supervises the Company's executive officers are described in our 3.3 Permitted Activities 3.3 Permitted may Directors of Board our of member each Incorporation, of Articles Company’s the of bis 17 Article to Pursuant The following are subject mandates limitations: to these not a) b) c) Mandates for legal entities under common control or at the request of such legal entities are counted as a single Board Each member of our Directors is currently in compliance of with the above-mentioned requirements. terms of office 3.4 Elections and For information regarding the time of first election and term of office of each member of our Board of Directors, be Board of Directors shall Incorporation, the members of the Articles of Company’s Article 14 of the Pursuant to The Company’s Articles of Incorporation do not differ from the statutory legal provisions with regard to the 3.5 Organization Invitation our see please committees, its and Directors of Board the of organization the regarding information For 3.6 Definition of areas of responsibility Company’s the Chairman, Company's the Directors, of Board the of duties and powers the regarding Information be accessed on the default.aspx. Company's website at http://ir.logitech.com/corporate-governance/governance-documents/ and Governance “Corporate heading the under Meeting, General Annual 2018 the for Statement Proxy and Invitation Board of Directors Matters” at pages 47.31 to assume up to ten mandates in supreme management or supervisory bodies of legal entities outside the Logitech group, Logitech the outside entities legal of bodies supervisory or assume management may supreme Directors in of mandates Board ten our to of up member assume each addition, In companies. listed in be may four than more no which of non-remunerated up to ten mandates in the governing of charitable bodies or similar organizations. mandate for purposes of determining activities. permitted please see our Invitation and Proxy Statement for the Annual 2018 General Meeting, under the heading “Corporate Governance pages 3147.and Board of Directors Matters” at to elected individually by the General Meeting for a term of office expiring after completion of the subsequent Annual General Meeting. Director Each member of our Board of be indefinitely shall re-eligible. appointment the compensation of the chairman, the members of committee and the independent proxy. of Board and Governance “Corporate heading the under Meeting, General Annual 2018 the for Statement Proxy and 47. Directors Matters” at pages 31 to Statement Proxy and Invitation our in forth set are Director Independent Lead Company's the and Officer Executive Chief Annual General for Meeting, the under 2018 the heading “Corporate Governance and Board of Directors Matters” at pages 31 register with voting rights. the Company’s shareholders. of the Company’s “Genussscheine”). the extent we are notified of the transfer. entered into the share 41 Statements. our Proxy Statement. as “bonus certificates,” “bons de jouissance,” or “bons de “bonus certificates,” to as conditions. Nominee companies and trustees can be 3.1 and 3.2 Members of the Board of Directors and their Activities Outside of the Logitech Group 3.1 and 3.2 Members of the Board of Directors and their 2.4 Share Categories 2.4 Share Shares. Logitech Registered registered one category shares S.A. has only International a par shares with of - Articles of Incorporation, shareholders Company’s in compliance with Swiss law and the is restricted Unless this right Shares and Bonus Certificates 2.5 Non-Voting The Company The Company has not issued non-voting (“bons de participation,” shares “Partizipationsscheine”). and Nominee Registration 2.6 Limitations on Transferability The Company transfer agent, maintain and its agent, Computershare, a share register as U.S. that lists the names voting rights. Refer to section 6.1 for the conditions for exercise of shareholders’ 2.7 Conversion and Option Rights issued warrants has not with conversion rights and other securities outstanding bonds or have any Logitech does not Logitech has issued stock options, including performance-based stock options and premium-priced stock options, Each share entitles its owner to dividends declared, even if the owner is not registered in the share register of the register of the share registered in not owner is if the dividends declared, even owner to entitles its Each share For the current members of our Board of Directors, further information For the current members of our Board of Directors, further information regarding the Board of Directors and their Annual the for 2018 Statement Proxy and Invitation our please see Logitech group, the of outside activities material of Directors Matters” at pages 31 to 47. General Meeting, under the heading “Corporate Governance and Board value of CHF 0.25 per share. Each of the 173,106,620 issued shares carries the same rights. There are There no preferential Each of the 173,106,620 0.25 per share. value of CHF shares issued the same rights. carries rights and the exercise voting to the Company share register of in the be entered a shareholder must rights. However, put an item to right the shareholders or general meeting of convene a right to as the therefrom (such rights deriving rights participation an outline of to section 6 for agenda). Refer on the meeting’s This request for shareholder a company pays dividends shareholders. upon approval by its Under Swiss law, Company. one-time distribution to than a 2013, other Board. Until the of recommendation follows the approval typically shareholders of additional paid-in capital out of its capital contribution reserves year in fiscal Logitech 2012, had not paid dividends since 1996, using retained earnings invest Company to in the growth of the in and, recent years, more shares. In 2013, the Board proposed beginning that, with fiscal year 2013 and subject to repurchase the Company’s Logitech distribute a recurring annual shareholders each year, and statutory auditors to approval by the Company’s gross dividend. In 2013, Logitech distributed dividend a gross of CHF 0.21 per share. In 2014, the Board distributed of approximately the Board distributed a gross dividend September 2015, In dividend 0.2625 per share. CHF a gross of CHF CHF 0.56 per share. a gross dividend of approximately Board distributed 2016, the In September per share. 0.51 In September 2017, distributed the Board a gross dividend of approximately On May 21, 2018, CHF 0.61 per share. shareholders and other Swiss statutory requirements, a the Board approved, subject to approval by the Company’s gross dividend of approximately CHF 0.6726 on an approved per share (based gross aggregate dividend of CHF Appropriation see “Proposal 3 - - March 31, 2018 as of of treasury shares, and the shares outstanding, net 110,700,000 in of Retained Dividend” Earnings and Declaration of have the pre-emptive right to subscribe for newly issued shares. Refer to section 2.2 for a description of the provisions pre-emptive subscription rights. shareholders’ restriction of the relating to the Articles of Incorporation the Company’s of services rendered or consideration for rights in provide financial securities that or equity issued certificates has not claims waived (referred shares. Registration in the share register occurs upon request and is not of the registered owners the of Company’s subject to any However, Articles of Incorporation or Swiss law. There are no restrictions on transfers of shares under the Company’s only holders are recorded in the share register of shares that are recognized as shareholders, and a transfer of shares reflected in the share register is recognized only to by the Company on its shares. and restricted stock units, including performance-based and directors. restricted stock units, to its employees Please Annual heading General Meeting, under the “Equity the 2018 Statement for our Invitation and Proxy refer to Compensation Plan Information” at pages 86 to 87, for details on option rights and restricted stock units issued under our employee equity incentive plans, as well as other information regarding those plans, and to Note 6 - Employee Benefit Plans - included in our Consolidated Financial 3. The Board of Directors Company; that control the 44 these limitations: the Company or why we make compensation decisions. our Compensation Committee. it; and outside of Switzerland. market price. functions and responsibilities assumed. discount to our Annual Report. in companies controlled by mandates in companies of a request of the Company or assumes at the Team our Group Management of mandates that a member company controlled by Switzerland commercial registered or in registry in in the are not required to be mandates in companies that an equivalent registry 4.3 Activities Permitted Management our Group Incorporation, each member of of Articles Company’s Article 18 ter of the to Pursuant subject to are not The following mandates a) b) c) determining of single for purposes a mandate counted as control are legal entities under common Mandates for with the above-mentioned is currently in compliance requirements. Team Management Group Each member of our 4.4 Management Contracts its Company or into any contractual relationships regarding management the entered the of Logitech has not 5.1 Compensation Principles Proxy our Invitation and 85 of to 2018 on pages 54 Year Fiscal Compensation for Report Logitech’s Please refer to compensation during fiscal year disclosed under Swiss law regarding information required be to addition, for In Articles of Incorporation 5.2 Rules in the Company's of Incorporation, compensation of non-executive members of Articles Company’s the 19 bis of Article Pursuant to our Articles of Incorporation, compensation of members of Company’s of the bis and ter Article 19 Pursuant to Compensation to executives may also be paid or granted form of financial or similar units and in the instruments Team may assume up to five mandates in supreme mandates in supreme assume up to five may or supervisory management of legal bodies the entities outside Team our Group member of addition, each In listed companies. may be in two than which no more group, of Logitech up to ten non-remunerated may assume in the governing mandates charitable bodies or similar of Team Management organizations. permitted activities. subsidiaries. 5. Compensation, Shareholdings and Loans compensation Board members of its and Annual for information on Logitech’s General Meeting 2018Statement for the and regarding how and executive officers, in aggregate, and Team, 2018the individual of members of the Board and Group Management of the members of the regarding the security ownership of members of the Board of Directors and of of members Group Management the as of March 31, 2018, among other disclosures, please refer to the Remuneration Note Report and Share 9 - Team Financial Statutory Statements - in the Company’s Team Ownership of Board Members and Group Management included in payments and our Board of Directors consists of cash shares or share equivalents corresponding to a fixed amount and reflecting the consists Team Board of Directors who have delegated management responsibilities and of our Group Management incentive cash payments, and form of performance-based in the (ii) cash compensation salary, principally (i) base of (iii)the Company and their their individual equity incentive awards. Base salary rewards executives for contribution to expected day-to-day services. Performance-based cash compensation appropriate takes account the achievement of the performance-based cash target level of The or other performance goals. individual employees’ the Company’s, of Performance-based cash compensation compensation elements is determined as a percentage of the base salary. an overall assessment amount may also reflect level. Its the target a pre-determined up to multiplier of may amount objectives. Equity incentive awards provide a direct incentive for performance the Company’s or of the executive’s Equity incentive shareholders. the Company’s those of executives with of the performances and align the interest future Company or other objectives of the or account strategic take into awards are governed by performance metrics that The performance service to the Company or companies controlled by it. by reference to the duration of the executive’s metrics and target levels applicable to performance-based cash compensation and equity incentive awards, as well determined by as their achievement, are under it, Company or companies controlled by the established by share purchase plans participate in executives may the terms of which eligible employees may allocate a portion of their compensation to the purchase of shares of the Company at a

Darrell served

, most recently as the , Darrell was with The Darrell was with

y echnologies, from 2001 to echnologies, from echnology BV, a provider of echnology BV, Darrell as President served of T

April 2012 and became Chief Executive Chief and became April 2012

President Whirlpool Corporation, a home of

43 Massachusetts. 44 Management and an MBA degree in Operations Management degree in Operations Management Management and an MBA as of March 31, 2018 as of March are set forth below: joined Logitech in October 2005 as Vice President, Operations joined Logitech in October 2005 as

and Executive Vice

management roles from 1998 to 2001. Mr. Sullivan holds a BS management Mr. Sullivan holds a roles from 1998 to 2001. joined Logitech as President in President as joined Logitech joined Logitech in September 2013 as Chief Financial Officer. Prior to Prior Financial Officer. Chief September as in 2013 joined Logitech

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 Company; that control the 45 44 these limitations: the Company or why we make compensation decisions. our Compensation Committee. it; and outside of Switzerland. market price. functions and responsibilities assumed. discount to our Annual Report.

mandates that a member of our Group Management Team assumes at the request of the Company or of a request of the Company or assumes at the Team our Group Management of mandates that a member company controlled by mandates in companies that are not required to be registered in the commercial Switzerland registered commercial in or in in the registry are not required to be mandates in companies that an equivalent registry in companies controlled by mandates in companies

b) 4.3 Activities Permitted our Group Management Incorporation, each member of of Articles Company’s Article 18 ter of the to Pursuant subject to are not The following mandates c) determining of single for purposes a mandate counted as control are legal entities under common Mandates for with the above-mentioned is currently in compliance requirements. Team Management Group Each member of our 4.4 Management Contracts its Company or into any contractual relationships regarding management the entered the of Logitech has not 5.1 Compensation Principles Proxy and our Invitation 85 of to 2018 on pages 54 Year Fiscal Compensation for Report Logitech’s Please refer to a) compensation during fiscal year disclosed under Swiss law regarding information required be to addition, for In Articles of Incorporation 5.2 Rules in the Company's compensation of non-executive members of Incorporation, of Articles Company’s the 19 bis of Article Pursuant to our Articles of Incorporation, compensation of members of Company’s of the bis and ter Article 19 Pursuant to Compensation to executives may also be paid or granted form of financial or similar units and in the instruments Team may assume up to five mandates in supreme mandates in supreme assume up to five may or supervisory management of legal bodies the entities outside Team our Group member of addition, each In listed companies. may be in two than which no more group, of Logitech up to ten non-remunerated may assume in the governing mandates charitable bodies or similar of Team Management organizations. permitted activities. subsidiaries. 5. Compensation, Shareholdings and Loans compensation Board members of its and Annual for information on Logitech’s General Meeting 2018Statement for the and regarding how and executive officers, 2018 of the individual members of the Board and of the members of the Group Management Team, in aggregate, and Team, 2018the individual of members of the Board and Group Management of the members of the regarding the security ownership of members of the Board of Directors and of of members Group Management the as of March 31, 2018, among other disclosures, please refer to the Remuneration Note Report and Share 9 - Team Financial Statutory Statements - in the Company’s Team Ownership of Board Members and Group Management included in payments and our Board of Directors consists of cash shares or share equivalents corresponding to a fixed amount and reflecting the consists Team Board of Directors who have delegated management responsibilities and of our Group Management incentive cash payments, and form of performance-based in the (ii) cash compensation salary, principally (i) base of (iii)the Company and their their individual equity incentive awards. Base salary rewards executives for contribution to expected day-to-day services. Performance-based cash compensation takes appropriate account the achievement of the performance-based cash target level of The or other performance goals. individual employees’ the Company’s, of Performance-based cash compensation compensation elements is determined as a percentage of the base salary. an overall assessment amount may also reflect level. Its the target a pre-determined up to multiplier of may amount objectives. Equity incentive awards provide a direct incentive for performance the Company’s or of the executive’s Equity incentive shareholders. the Company’s those of executives with of the performances and align the interest future Company or other objectives of the or account strategic take into awards are governed by performance metrics that The performance service to the Company or companies controlled by it. by reference to the duration of the executive’s metrics and target levels applicable to performance-based cash compensation and equity incentive awards, as well determined by as their achievement, are executives may participate in share purchase plans established by the Company or companies controlled by it, under it, Company or companies controlled by the established by share purchase plans participate in executives may the terms of which eligible employees may allocate a portion of their compensation to the purchase of shares of the Company at a

Darrell served

, most recently as the , Darrell was with The Darrell was with

y echnologies, from 2001 to echnologies, from echnology BV, a provider of echnology BV, Darrell as President served of T

April 2012 and became Chief Executive Chief and became April 2012

President Whirlpool Corporation, a home of

43 Massachusetts. Management and an MBA degree in Operations Management degree in Operations Management Management and an MBA as of March 31, 2018 as of March are set forth below: joined Logitech in October 2005 as Vice President, Operations joined Logitech in October 2005 as

and Executive Vice

official functions or political posts. functions official in January in January Prior to joining 2013. Logitech, Mr. Previously, he was with ACCO Brands, Inc. in engineering and ACCO Brands, he was with Previously, Quality for Carrier Corporation, a subsidiary of United T subsidiary of Carrier Corporation, a Quality for Joseph Sullivan Bracken Darrell Bracken Officer Whirlpool EMEA 2012. March to January 2009 from marketing company, and appliance manufacturer Whirlpool EMEA of Operations President, Vice Senior been had Darrell Mr. Previously, 2008, Mr. 2002 to May From January 2009. 2008 to May from Procter & Gamble Company a (“P&G”), consumer brand compan Prior to rejoining P&G in 2002, Mr. President of its Braun GmbH subsidiary. 1997 from Company Electric General with managerial positions and executive various in 1989. 1987 to from PepsiCo Inc. 1997, and with 1991 to from P&G 2002, with to Harvard from MBA an Hendrix College and degree from BA holds a Darrell Mr. University. Pilette Vincent Electronics for of Chief Financial Officer served as Pilette joining Logitech, Mr. January from company, solutions and innovation digital printing a Inc., Imaging, 2011 served he January 2009 through December 2010, From 2013. through August Group Storage and Networking the Enterprise Server, Finance for as Vice President of Pilette served as Vice this role, Mr. Prior to Hewlett-Packard Company (“HP”). at Software Group from December President of Finance for the HP 2005 through and in the U.S. various other finance positions at HP, Pilette held December 2008. Mr. since joining in 1997. HP Mr. Pilette holds an MS in Africa, and East Middle Europe, and Belgium in Louvain de Université Catholique from Business and Engineering an MBA from Kellogg School University. of Management at Northwestern Sales and Marketing as Vice President, Marcel Stolk joined Logitech in March 2011 appointed Vice and was Senior Executive Managing and Director EMEA, EMEA President, Consumer & Productivity) Business Computing Platforms (currently Creativity January in S.A. Logitech Europe Executive Chairman of 2013 and in January Group Vice President, Mr. Stolk was the Senior Worldwide Sales and 2017. Previously, Marketing at Logitech, from March 2001 to October 2005, and held a number of positions within the sales and marketing at Logitech functions from 1991 to 2001. Prior to rejoining a software BV, SourceTag was the Chief Executive Officer of he Logitech in 2011, March September 2010 to cloud-based from data, unique tagging of company for and Chief Executive Officer of Adoria Mr. Stolk has also been the founder 2011. and he from October 2005 to July 2010, a private equity company, Investments BV, owner. Before joining Logitech Mr. Stolk held various in 1991, sole the remains Aashima marketing positions at sales and product April 2006. and was appointed Senior Vice President, Worldwide Operations in Strategy, Prior to joining Logitech, Mr. Sullivan was Vice President of Operational Excellence and 2005. manufacturing degree in Marketing from Suffolk University in PC components in Utrecht studied at Stolk Netherlands. Mr. and accessories, in the the Netherlands and has participated in university-level executive courses, including an executive training course at Stanford University. L. or holds any On May 2, 2018, Mr. Sullivan announced his retirement and resignation as a member of the Group Management Team, Team, of the Group Management Sullivan announced his retirement and resignation as a member On May 2, 2018, Mr. 4.2 Involvements outside Logitech of the Members of the Group Management Team 4.2 Involvements outside Logitech of the Members of the Group Management management, or advisory currently has material supervisory, Team Group Management No member of Logitech’s 4.1 Members of the Group Management Team of the Group 4.1 Members of our Group The members Management Team functions outside Logitech 4. Team Management Group effective immediately. Mr. Sullivan's retirement will be effective as of February 2, 2019, the end of his contractual notice period. as of February 2, will be effective Sullivan's retirement Mr. immediately. effective Bracken Darrell Bracken Old 55 Years President and Chief Executive Officer U.S. national Pilette Vincent Old 46 Years Chief Financial Officer Belgian national Marcel Stolk Old 51 Years Executive Chairman, Logitech Europe, S.A. and President, Vice Sr. Creativity & Productivity Business Group Dutch national L. Joseph Sullivan Old 65 Years President, Senior Vice Operations Worldwide U.S. national 46 close operations to its in Switzerland. change in the Company’s corporate corporate purpose; change in the Company’s shares creation of privileged with voting rights; shares; restriction of the transferability of the creation of authorized or conditional capital; with conducted or kind, in contributions against reserves, existing of means by paid-in be to increases capital a view to the acquisition assets; of specific grant of special benefits; preferential subscription right; suppression shareholders’ or limitation the of Company; and of the change the registered of office liquidation of the Company. 6.4 Shareholders’ Right to Place Items on the Agenda of a Meeting on the Right to Place Items 6.4 Shareholders’ shares represent together who shareholders registered more or one Incorporation, of Articles Company’s the Under request to A place an item on the meeting agenda must be in writing, describe the proposal and be received by Secretary to the Board of Directors, Logitech International S.A., EPFL - Quartier de l’Innovation, Daniel Borel Share Register 6.5 Registration in the Company’s Registration into the Company’s share register, or the sub-register maintained by the Company’s U.S. transfer 6.2 Shareholders’ Resolutions for which a Particular Majority is Required Majority Particular which a for Resolutions 6.2 Shareholders’ In general, the resolutions of the general meeting of shareholders are passed with a simple majority of the votes • • • • • • • • • of the General Meeting of Shareholders 6.3 Convocation The Board of Directors generally convenes a general meeting of shareholders. The convocation notice is made Under Articles our of Incorporation one or more shareholders who represent together at least 10% of the share The Company has received an exemption from compliance with a Nasdaq listing standard that requires that the representing at least the lesser of (i) one percent of the Company’s issued share capital or (ii) an aggregate par value par aggregate an (ii) or capital share issued Company’s the of percent one (i) of lesser the least at representing of one million Swiss francs, may demand that an item be placed on the agenda of a meeting of shareholders. place to shareholders registered by Demands meeting. the of date the to prior days 60 least at Directors of Board our an item on the agenda of a meeting of shareholders should be sent to: Innovation Center 1015 Lausanne, Switzerland, or c/o Logitech Inc., 7700 Gateway Boulevard, Newark, 94560, CA USA. closes register share Company’s The condition. any to subject not is and request upon occurs Computershare, agent, before a general meeting of shareholders on a date designated by the Board of Directors. Only those shareholders who are registered in the share register on the day the share register meeting. is closed have the right to vote at the cast. However, a number of resolutions may only be passed with a majority of two-thirds of the votes represented, including the following: in writing and under Swiss law must be sent to each registered shareholder at register at least 20 days prior to the meeting. the address recorded in the share capital of the Company may demand that the Board of Directors convene a meeting. Such demands must be made in writing and received Board days before the date the proposed by the of Directors at least 60 of meeting. quorum for shareholder other most like compliance meetings Logitech, In Accordingly, be meetings. meetings. shareholder at for shareholder requirements quorum least its specific have not 331/3% to do companies respect of with the requirements outstanding quorum voting observe shares. not does Under companies, Swiss public meeting law, the Swiss public of notice the publishes and shareholders registered its of all to invitation an sends Logitech law, Swiss with either in statement, proxy the of availability of notice a or statement, proxy a sends also It press. financial Swiss the in case prepared in accordance with under U.S. securities laws, to all registered shareholders and all required beneficial shareholders invitation the combined has Logitech law. by required or shareholder registered the by requested where Statement, Proxy and Invitation titled document, one into law U.S. under required statement proxy the and law Swiss General Annual its for Annual its General 2018 Meeting, holds and combined it Annual with Report its required Logitech under Swiss law and attendance, U.S. law encourage to Also, shareholders. for document convenient one create to Meeting 45 46 Directors or to the Group Management Team, as applicable, which is subject to the approval Team, Directors or to the Group Management 6.1 Exercise and Limitations to Shareholders’ Voting Rights Voting 6.1 Exercise and Limitations to Shareholders’ limitations no are There shareholders. of meeting general a at vote one to right the confers share registered Each the of shareholder a be not need who choice its of person a by meeting a at represented be may shareholder Any There are currently no limitations under Swiss law or in the Articles Company’s of Incorporation restricting the Articles of Incorporation contain The no Company’s rules on giving instructions to the independent proxy and no Our Compensation Committee decides upon each grant as well as the applicable vesting, blocking, exercise and exercise blocking, vesting, applicable the as well as grant each upon decides Committee Compensation Our Directors, of Board the of proposal upon Incorporation, of Articles Company’s the of quarter 19 Article to Pursuant of amount aggregate maximum the if Incorporation, of Articles Company’s the of quinquies 19 Article to Pursuant Article Pursuant 19 to sexies Articles of of the Incorporation, Company’s members of the Board of Directors and of the General Meeting. Pension contributions and benefits will be made or provided in accordance with the regulations the with accordance in provided or made be will benefits and contributions Pension Meeting. General the of Switzerland in participate it by controlled companies the or Company the which in schemes pension the to applicable or abroad. Participation Rights 6. Shareholders’ to the number of voting rights that a shareholder or group general of shareholders each is before entitled register to share exercise, the and there preferential of are voting closing no rights. the exercise To for voting Directors rights of at Board a the general by meeting of set shareholders, date a the shareholder by must shares have their registered meeting of shareholders. Refer to section 2.6 for more information on the registration process. required. be may Company the by prepared form a of use The writing. in made be must attorney of power The Company. rights of shareholders outside Switzerland to hold Logitech or vote shares. provisions on electronic participation in the general meeting. forfeiture forfeiture conditions; it may provide for continuation, events acceleration pre-determined or of removal event of vesting the and in exercise forfeiture conditions, for for or achievement target assuming compensation of grant or payment such as termination of employment or office or change of control. Compensation may be paid by companies controlled by it. the Company or for Directors, of Board the (i) of compensation the of amount aggregate maximum the approves Meeting General the for the next business year. Annual General Meeting, the and period (ii) up the Team, to Group the Management next The Board of Directors may submit to the General Meeting for approval proposals in respect of maximum aggregate additional of payment the propose and/or periods time other for components compensation individual and/or amounts Directors of Board the Directors, of Board Group the the of or Directors of Board the of members the of all by or some of services extraordinary or special for amounts submitted proposal a controlled rejects companies Meeting or General Company the The If Meeting. Team. General subsequent Management a or same the to proposal alternative an submit will by it may grant or pay compensation subject to subsequent ratification at a General Meeting and claw-back by the Company by the General in case of rejection Meeting. compensation already approved by the General Meeting is not sufficient to also cover the compensation of one or more persons who become members of the Group during Management a Team compensation period for which the Company the hire), (new Team Management Group the of compensation the approved already has Meeting General or companies controlled by it are authorized to pay an additional amount with respect to already the approved. Such additional amount compensation may not exceed: period for the (CEO), head 140% of of the Management Team total highest the of 140% CEO, the than other hire new any for and CEO; former the of compensation annual total the other than the CEO. Team annual compensation any of member of the Management companies in activities for Team Management by controlled company Group a from or Company the the from loans or credits receive of not may or Team Management Group Directors the of of Board the of members to paid Compensation it. that are controlled by the Company is permitted, and this compensation will be included in the payable to the total Board of compensation

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 47 46 close operations to its in Switzerland. change in the Company’s corporate corporate purpose; change in the Company’s shares creation of privileged with voting rights; shares; restriction of the transferability of the creation of authorized or conditional capital; with conducted or kind, in contributions against reserves, existing of means by paid-in be to increases capital a view to the acquisition assets; of specific grant of special benefits; preferential subscription right; suppression shareholders’ or limitation the of Company; and of the change the registered of office liquidation of the Company. 6.4 Shareholders’ Right to Place Items on the Agenda of a Meeting on the Right to Place Items 6.4 Shareholders’ shares represent together who shareholders registered more or one Incorporation, of Articles Company’s the Under request to A place an item on the meeting agenda must be in writing, describe the proposal and be received by Secretary to the Board of Directors, Logitech International S.A., EPFL - Quartier de l’Innovation, Daniel Borel Share Register 6.5 Registration in the Company’s Registration into the Company’s share register, or the sub-register maintained by the Company’s U.S. transfer 6.2 Shareholders’ Resolutions for which a Particular Majority is Required Majority Particular which a for Resolutions 6.2 Shareholders’ In general, the resolutions of the general meeting of shareholders are passed with a simple majority of the votes • • • • • • • • • of the General Meeting of Shareholders 6.3 Convocation The Board of Directors generally convenes a general meeting of shareholders. The convocation notice is made Under Articles our of Incorporation one or more shareholders who represent together at least 10% of the share The Company has received an exemption from compliance with a Nasdaq listing standard that requires that the representing at least the lesser of (i) one percent of the Company’s issued share capital or (ii) an aggregate par value par aggregate an (ii) or capital share issued Company’s the of percent one (i) of lesser the least at representing of one million Swiss francs, may demand that an item be placed on the agenda of a meeting of shareholders. place to shareholders registered by Demands meeting. the of date the to prior days 60 least at Directors of Board our an item on the agenda of a meeting of shareholders should be sent to: Innovation Center 1015 Lausanne, Switzerland, or c/o Logitech Inc., 7700 Gateway Boulevard, Newark, 94560, CA USA. closes register share Company’s The condition. any to subject not is and request upon occurs Computershare, agent, before a general meeting of shareholders on a date designated by the Board of Directors. Only those shareholders who are registered in the share register on the day the share register meeting. is closed have the right to vote at the cast. However, a number of resolutions may only be passed with a majority of two-thirds of the votes represented, including the following: in writing and under Swiss law must be sent to each registered shareholder at register at least 20 days prior to the meeting. the address recorded in the share capital of the Company may demand that the Board of Directors convene a meeting. Such demands must be made in writing and received Board days before the date the proposed by the of Directors at least 60 of meeting. quorum for shareholder other most like compliance meetings Logitech, In Accordingly, be meetings. meetings. shareholder at for shareholder requirements quorum least its specific have not 331/3% to do companies respect of with the requirements outstanding quorum voting observe shares. not does Under companies, Swiss public meeting law, the Swiss public of notice the publishes and shareholders registered its of all to invitation an sends Logitech law, Swiss with either in statement, proxy the of availability of notice a or statement, proxy a sends also It press. financial Swiss the in case prepared in accordance with under U.S. securities laws, to all registered shareholders and all required beneficial shareholders invitation the combined has Logitech law. by required or shareholder registered the by requested where Statement, Proxy and Invitation titled document, one into law U.S. under required statement proxy the and law Swiss General Annual its for Annual its General 2018 Meeting, holds and combined it Annual with Report its required Logitech under Swiss law and attendance, U.S. law encourage to Also, shareholders. for document convenient one create to Meeting 45 Directors or to the Group Management Team, as applicable, which is subject to the approval Team, Directors or to the Group Management Our Compensation Committee decides upon each grant as well as the applicable vesting, blocking, exercise and exercise blocking, vesting, applicable the as well as grant each upon decides Committee Compensation Our Directors, of Board the of proposal upon Incorporation, of Articles Company’s the of quarter 19 Article to Pursuant of amount aggregate maximum the if Incorporation, of Articles Company’s the of quinquies 19 Article to Pursuant Article Pursuant 19 to sexies Articles of of the Incorporation, Company’s members of the Board of Directors and Rights Voting 6.1 Exercise and Limitations to Shareholders’ limitations no are There shareholders. of meeting general a at vote one to right the confers share registered Each the of shareholder a be not need who choice its of person a by meeting a at represented be may shareholder Any There are currently no limitations under Swiss law or in the Articles Company’s of Incorporation restricting the Articles of Incorporation contain The no Company’s rules on giving instructions to the independent proxy and no forfeiture forfeiture conditions; it may provide for continuation, events acceleration pre-determined or of removal event of vesting the and in exercise forfeiture conditions, for for or achievement target assuming compensation of grant or payment such as termination of employment or office or change of control. Compensation may be paid by companies controlled by it. the Company or for Directors, of Board the (i) of compensation the of amount aggregate maximum the approves Meeting General the for the next business year. Annual General Meeting, the and period (ii) up the Team, to Group the Management next The Board of Directors may submit to the General Meeting for approval proposals in respect of maximum aggregate additional of payment the propose and/or periods time other for components compensation individual and/or amounts Directors of Board the Directors, of Board Group the the of or Directors of Board the of members the of all by or some of services extraordinary or special for amounts submitted proposal a controlled rejects companies Meeting or General Company the The If Meeting. Team. General subsequent Management a or same the to proposal alternative an submit will by it may grant or pay compensation subject to subsequent ratification at a General Meeting and claw-back by the Company by the General in case of rejection Meeting. compensation already approved by the General Meeting is not sufficient to also cover the compensation of one or more persons who become members of the Group during Management a Team compensation period for which the Company the hire), (new Team Management Group the of compensation the approved already has Meeting General or companies controlled by it are authorized to pay an additional amount with respect to already the approved. Such additional amount compensation may not exceed: period for the (CEO), head 140% of of the Management Team total highest the of 140% CEO, the than other hire new any for and CEO; former the of compensation annual total the other than the CEO. Team annual compensation any of member of the Management companies in activities for Team Management by controlled company Group a from or Company the the from loans or credits receive of not may or Team Management Group Directors the of of Board the of members to paid Compensation it. that are controlled by the Company is permitted, and this compensation will be included in the regulations payable to the total Board of the compensation with accordance in provided or made be will benefits and contributions Pension Meeting. General the of Switzerland in participate it by controlled companies the or Company the which in schemes pension the to applicable or abroad. Participation Rights 6. Shareholders’ to the number of voting rights that a shareholder or group general of shareholders each is before entitled register to share exercise, the and there preferential of are voting closing no rights. the exercise To for voting Directors rights of at Board a the general by meeting of set shareholders, date a the shareholder by must shares have their registered meeting of shareholders. Refer to section 2.6 for more information on the registration process. required. be may Company the by prepared form a of use The writing. in made be must attorney of power The Company. rights of shareholders outside Switzerland to hold Logitech or vote shares. provisions on electronic participation in the general meeting. . post and maintain an archive of our earnings of our earnings archive and maintain an post We . our Annual Report. 48 included in of 1934, as amended, we file reports on transactions in Logitech we file reports on transactions of 1934, as amended, securities by . site is located at http://ir.logitech.com located site is

In addition, Logitech publishes press releases upon occurrence of significant events within Logitech. Shareholders Logitech. Shareholders significant events within upon occurrence of Logitech publishes press releases addition, In As a Swiss company traded on the SIX Swiss Exchange, and as a company subject to the provisions of Section Our Investor Our Investor Relations Web For no charge, a copy of our annual For no charge, a copy of our annual reports and filings made with the SEC are available on our website and can For the listing of consolidated subsidiaries as of March 31, 2018, please refer to Note 4 - Investments in Subsidiaries and other press releases, current reports, annual and quarterly reports, earnings release release earnings reports, and quarterly annual reports, information schedule, current releases, other press and the information regarding other and governance, corporate on information further annual general meetings, regarding will include, filings future the includes, and in post information we The site. Web Relations Investor on the Company including and 10-K, 10-Q or SEC, Commission, and Exchange Securities reports on Forms with the U.S. we make related to our annual proxy statement 8-K, our shareholders’ including meeting, our Compensation on Report and officer Board member compensation, amendments and any reports to those filed or statements executive of free available are information and filings such All laws. Swiss or laws securities U.S. to pursuant or furnished charge on available the website, and we make them as soon as reasonably on the website we file or possible after be incorporated by reference into intended to are not these websites The contents of the SEC. furnish them with be these websites are intended to to document we file and our references in any other report or report or this only. inactive textual references releases upon occurrence of e-mails when Logitech issues press receive elect to the public may and members of . significant events within Logitech press releases or other by subscribing through http://ir.logitech.com/alerts.cfm Act Securities Exchange 16 of the members of Logitech’s Board of Directors and executive officers. The reports that we file with the SEC on Forms 3, 4 SEC on Forms that we file with the The reports officers. Board of Directors and executive members of Logitech’s we file that , and the reports that at http://www.sec.gov website and 5 may be accessed on or on the SEC’s our website are published Exchange Swiss http://www.six-exchange-regulation.com/obligations/ may be accessed at the SIX by management_transactions_en.html be requested by contacting Relations our Investor Logitech department: Investor Relations, Gateway Boulevard, 7700 94560 USA, Main 510-795-8500, e-mail: [email protected] Newark, CA 10. Subsidiaries Consolidated - Statutory Financial Statements in the Company’s July 31, 2018 April 23, 2019 October 23, 2018 January 22, 2019 at the SwissTech Center, EPFL, Center, at the SwissTech 47 48 All registered shareholders and all shareholders in the United States that hold their shares through a U.S. bank an present and results the discuss to releases earnings quarterly our after calls conference public holds Logitech The Company’s 2018 Annual General Meeting The is 2018 Company’s to be held September 5, 2018 7.1 Mandatory Offer 7.1 Mandatory whose company Swiss a of rights voting the of 331/3% than more acquires who shareholder any law Swiss Under Provisions 7.2 Change of Control Please refer to our Compensation Report for Fiscal Year 2018 on pages 53 to 85 of our Invitation and Proxy each auditors independent Company’s the elect shareholders the Incorporation, of Articles Company’s the Under The Company’s auditors are currently KPMG AG, Badenerstrasse 172, CH-8036, Zürich, Switzerland. KPMG Please refer to the Corporate Governance and Board of Directors Auditors" Matters", and "Independent "Report are results financial Quarterly release. press earnings an with quarterly results financial its reports Company The Q3 FY’19 Earnings Release and Conference Call Q3 FY’19 Earnings Release and Conference Call Q4 FY’19 Earnings Release and Conference Q2 FY’19 Earnings Release and Conference Call Q2 FY’19 Earnings Release and Conference Q1 FY’19 Earnings Release and Conference Call Q1 FY’19 Earnings Release and Conference Lausanne, Switzerland. Logitech’s of overview an contains document the of or section brokerage or Report other nominee Annual receive a The copy of available. the Logitech are Invitation, Proxy documents Statement Annual and such Report, or that a notice the Report, Remuneration the Company, the and group the for statements financial audited year, Statement fiscal Proxy the in and business Invitation The information. business and financial key other and Governance Corporate on Report section of the document includes a description of the matters to be acted shareholders, a Compensation upon Report on executive and officer Board member compensation, and other disclosures at the Annual General Meeting of required under applicable Swiss and U.S. laws. Logitech Officer. Financial Chief and Officer Executive Chief the of questions ask to analysts institutional for opportunity are events These business. Logitech’s of reviews present management senior where days analyst periodic holds also Logitech events. the after time of period a for website Relations Investor Logitech’s on available remain and webcast senior management also regularly participates in institutional investor seminars and roadshows, many of which are also webcast. 7. Mandatory Offer and Change of Control Provisions of Control Change Offer and 7. Mandatory of securities equity listed all acquire to offer an make to requirement. required is Switzerland in part in or this whole in listed are shares remove not do Incorporation of Articles S.A.’s International Logitech price. minimum a at company the person any Consequently, made. be must offer an which above threshold participation the increase not do Articles The for all outstanding voting rights having will acquired be more required than to a make third an of offer the Company’s shares of the Company. Statement Annual for General the Meeting 2018 for information on the consequences of change of control on equity Team. awards made Management the Board of Directors and the Group to members of Auditors 8. Annual General Meeting. Re-election is permitted. year at the is, 2018 31, March of as partner audit principal responsible The 2014. in Logitech for mandate audit first its assumed and since fiscal year 2015 has been, The Rolf responsible Hauenstein. principal audit partner changes at least once every seven years, as required under Swiss law. For purposes of U.S. securities law reporting, KPMG Santa LLP, independent registered public accounting firm. Clara, California, serves as the Company’s of the Audit Committee" sections of Logitech’s Invitation, Proxy fiscal during Statement KPMG to Logitech and Annual by paid Report fees non-audit for and audit Board the the regarding the information 2018 Annual further of for Meeting General instruments control and supervisory the and KPMG, by work non-audit for policies pre-approval 2018, year the work and Audit Committee of the Board, over activities of KPMG. of Directors, including the 9. Information Policy currently scheduled to be released as follows:

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 . post and maintain an archive of our earnings of our earnings archive and maintain an post We . our Annual Report. 49 48 included in of 1934, as amended, we file reports on transactions in Logitech we file reports on transactions of 1934, as amended, securities by . site is located at http://ir.logitech.com located site is

In addition, Logitech publishes press releases upon occurrence of significant events within Logitech. Shareholders Logitech. Shareholders significant events within upon occurrence of Logitech publishes press releases addition, In As a Swiss company traded on the SIX Swiss Exchange, and as a company subject to the provisions of Section Our Investor Our Investor Relations Web For the listing of consolidated subsidiaries as of March 31, 2018, please refer to Note 4 - Investments in Subsidiaries For no charge, a copy of our annual For no charge, a copy of our annual reports and filings made with the SEC are available on our website and can and other press releases, current reports, annual and quarterly reports, earnings release release earnings reports, quarterly and annual reports, information schedule, current releases, other press and the information regarding other and governance, corporate on information further annual general meetings, regarding will include, filings future the includes, and in post information we The site. Web Relations Investor on the Company including and 10-K, 10-Q or SEC, Commission, and Exchange Securities reports on Forms with the U.S. we make related to our annual proxy statement 8-K, our shareholders’ including meeting, our Compensation on Report and officer Board member compensation, amendments and any reports to those filed or statements executive of free available are information and filings such All laws. Swiss or laws securities U.S. to pursuant or furnished charge on available the website, and we make them as soon as reasonably on the website we file or possible after incorporated be by reference into intended to are not these websites The contents of the SEC. furnish them with be these websites are intended to to document we file and our references in any other report or report or this only. inactive textual references of press releases upon occurrence e-mails when Logitech issues receive elect to the public may and members of . significant events within Logitech press releases or other by subscribing through http://ir.logitech.com/alerts.cfm Act Securities Exchange 16 of the 10. Subsidiaries Consolidated - Statutory Financial Statements in the Company’s members of Logitech’s Board of Directors and executive officers. The reports that we file with the SEC on Forms 3, 4 SEC on Forms that we file with the The reports officers. Board of Directors and executive members of Logitech’s we file that , and the reports that at http://www.sec.gov website and 5 may be accessed on or on the SEC’s our website are published Exchange Swiss http://www.six-exchange-regulation.com/obligations/ may be accessed at the SIX by management_transactions_en.html be requested by contacting Relations our Investor Logitech department: Investor Relations, 7700 Gateway Boulevard, 94560 USA, Main 510-795-8500, e-mail: [email protected] Newark, CA July 31, 2018 April 23, 2019 October 23, 2018 January 22, 2019 at the SwissTech Center, EPFL, Center, at the SwissTech 47 All registered shareholders and all shareholders in the United States that hold their shares through a U.S. bank an present and results the discuss to releases earnings quarterly our after calls conference public holds Logitech 7.1 Mandatory Offer 7.1 Mandatory whose company Swiss a of rights voting the of 331/3% than more acquires who shareholder any law Swiss Under Provisions 7.2 Change of Control Please refer to our Compensation Report for Fiscal Year 2018 on pages 53 to 85 of our Invitation and Proxy each auditors independent Company’s the elect shareholders the Incorporation, of Articles Company’s the Under The Company’s auditors are currently KPMG AG, Badenerstrasse 172, CH-8036, Zürich, Switzerland. KPMG Please refer to the Corporate Governance and Board of Directors Auditors" Matters", and "Independent "Report are results financial Quarterly release. press earnings an with quarterly results financial its reports Company The Annual General Meeting The is 2018 Company’s to be held September 5, 2018 Q1 FY’19 Earnings Release and Conference Call Q1 FY’19 Earnings Release and Conference Call Q2 FY’19 Earnings Release and Conference Call Q3 FY’19 Earnings Release and Conference Call Q4 FY’19 Earnings Release and Conference Lausanne, Switzerland. Logitech’s of overview an contains document the of or section brokerage or Report other nominee Annual receive a The copy of available. the Logitech are Invitation, Proxy documents Statement Annual and such Report, or that a notice the Report, Remuneration the Company, the and group the for statements financial audited year, Statement fiscal Proxy the in and business Invitation The information. business and financial key other and Governance Corporate on Report section of the document includes a description of the matters to be acted shareholders, a Compensation upon Report on executive and officer Board member compensation, and other disclosures at the Annual General Meeting of required under applicable Swiss and U.S. laws. Logitech Officer. Financial Chief and Officer Executive Chief the of questions ask to analysts institutional for opportunity are events These business. Logitech’s of reviews present management senior where days analyst periodic holds also Logitech events. the after time of period a for website Relations Investor Logitech’s on available remain and webcast senior management also regularly participates in institutional investor seminars and roadshows, many of which are also webcast. 7. Mandatory Offer and Change of Control Provisions of Control Change Offer and 7. Mandatory of securities equity listed all acquire to offer an make to requirement. required is Switzerland in part in or this whole in listed are shares remove not do Incorporation of Articles S.A.’s International Logitech price. minimum a at company the person any Consequently, made. be must offer an which above threshold participation the increase not do Articles The for all outstanding voting rights having will acquired be more required than to a make third an of offer the Company’s shares of the Company. Statement Annual for General the Meeting 2018 for information on the consequences of change of control on equity Team. awards made Management the Board of Directors and the Group to members of Auditors 8. Annual General Meeting. Re-election is permitted. year at the is, 2018 31, March of as partner audit principal responsible The 2014. in Logitech for mandate audit first its assumed and since fiscal year 2015 has been, The Rolf responsible Hauenstein. principal audit partner changes at least once every seven years, as required under Swiss law. For purposes of U.S. securities law reporting, KPMG Santa LLP, independent registered public accounting firm. Clara, California, serves as the Company’s of the Audit Committee" sections of Logitech’s Invitation, Proxy fiscal during Statement KPMG to Logitech and Annual by paid Report fees non-audit for and audit Board the the regarding the information 2018 Annual further of for Meeting General instruments control and supervisory the and KPMG, by work non-audit for policies pre-approval 2018, year the work and Audit Committee of the Board, over activities of KPMG. of Directors, including the 9. Information Policy currently scheduled to be released as follows: Total

(6) — 199,202 —— 198,896 249,202 — 251,813 Other Compensation

(5) Stock Awards

—— 164,202 — 164,202 164,202 31,422 44,160— 285,207 — 314,779 163,896 — 164,202 163,896 33,548 285,361 — 164,202 10,440 237,559 — 163,896 —— 163,896 163,896 31,854 36,380 310,750 310,276 (4) Bonus 558,198 482,227 108,858 1,634,673 558,198 2,122,717 296,662 4,277,718

50 — — — — — (3) 10,000 10,000 10,000 10,000 Travel Fees Remuneration Report Remuneration

(2) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH 35,000 89,583 96,417 35,000 75,000 77,917 62,917 77,917 Base 485,390 105,000100,000 10,000 10,000 Salary 1,240,141 60,000 (9) (7) (8)

(7) (1) Gove Edouard Bugnion Sally Davis Guerrino De Luca Sue Dimitri Panayotopoulos Yeh Lung Board Members Total (in CHF) Aebischer Patrick Becker Wendy Didier Hirsch Neil Hunt Neela Montgomery In accordance with the Ordinance against Excessive Remuneration in Swiss Listed Companies (the “Ordinance”), the This Ordinance. compensation the by of required as members audited are of report this of the sections Certain Board below. of presented is Directors Team of Management Logitech International S.A. and of Logitech’s Group Remuneration Report should be read in conjunction description of the Compensation of Directors included with in our Proxy Statement. The Compensation Discussion and the Compensation Discussion providing by programs compensation executive and our understanding in stockholders Analysis our assist to intended is Analysis and the an overview of our elements the describing executive information additional includes Directors compensation-related Non-Employee of Compensation policies, our of description practices and decisions for fiscal year 2018. of compensation for the non-employee of our Board of Directors. members The equity- and cash of mix a be should and fixed is directors non-employee for compensation that policy general our is It Starting participation. committee and Board for retainers cash receive directors Non-employee compensation. based Overview 2.1 with the Board year from AGM the to AGM, 2017 the cash 2018 compensation of non-employee directors consists solely of annual retainers based on Board and committee service. While we have historically paid for travel days in with effective program compensation board our of component this discontinued we meetings, Board with connection our which 2017 began to in 2018 the Board Year, middle of fiscal year 2018. Non-employee directors also receive an annual restricted stock unit (“RSU”) grant based on a fixed market These value. grants generally vest based on one year of Board service. The following tables set forth compensation Logitech paid or accrued for payment to the individual members of the Board of Directors for services fiscal years ended performed in the March 31, 2018 and 2017: 2018 Year Fiscal 20182017 and Years Compensation of Board of Directors in Fiscal 2.2 1. Introduction 2. Compensation of Board of Directors Regula Tobler Audit Licensed Expert 49 50 Remuneration report Rolf Hauenstein KPMG AG Licensed Audit Expert Auditor in Charge Zurich, May 21,2018 Enclosure: Report of the Statutory Auditor Statutory the of Report Apples of Logitech International S.A., the General Meeting To The 2018. S.A. for the year ended March 31, remuneration report of Logitech International have audited the accompanying We compensation in Stock of the Ordinance against Excessive the information according to articles 14-16 audit was limited to report. sections 2.2, 3.2, and 4 of the remuneration (Ordinance) contained in the Exchange Listed Companies Board of Directors Responsibility of the report in accordance overall fair presentation of the remuneration is responsible for the preparation and The Board of Directors The (Ordinance). in Stock Exchange Listed Companies the Ordinance against Excessive compensation with Swiss law and designing the remuneration system and defining individual remuneration packages. Board of Directors is also responsible for Auditor's Responsibility our audit in accordance conducted on the accompanying remuneration report. We Our responsibility is to express an opinion ethical requirements and plan and perform the audit Those standards require that we comply with Auditing Standards. with Swiss the the remuneration report complies with Swiss law and articles 14 - 16 of to obtain reasonable assurance about whether Ordinance. with regard to obtain audit evidence on the disclosures made in the remuneration report An audit involves performing procedures depend on the The procedures selected with articles 14 - 16 of the Ordinance. to compensation, loans and credits in accordance auditor’s whether due to assessment of the risks of material misstatements in the remuneration report, judgment, including the components of also includes evaluating the reasonableness of the methods applied to value This audit fraud or error. overall presentation of the remuneration report. remuneration, as well as assessing the a basis for our opinion. and appropriate to provide audit evidence we have obtained is sufficient believe that the We Opinion Swiss law for the year ended March 31, 2018 of Logitech International S.A. complies with In our opinion, the remuneration report and articles 14 - 16 of the Ordinance. –

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 Total

(6) — 251,813 —— 198,896 249,202 — 199,202 Other Compensation

(5) Stock Awards

—— 164,202 164,202—— 31,422 163,896 — 44,160 163,896— 285,207 163,896— 314,779 163,896 — 31,854 164,202 36,380 163,896 310,750 310,276 33,548 285,361 —— 164,202 164,202 10,440 237,559 (4) Bonus 558,198 482,227 108,858 1,634,673 558,198 2,122,717 296,662 4,277,718

51 50 — — — — — (3) 10,000 10,000 10,000 10,000 Travel Fees Remuneration Report Remuneration

(2) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH 96,417 75,000 77,917 89,583 77,917 35,000 62,917 35,000 Base 105,000100,000 10,000 10,000 485,390 Salary 1,240,141 60,000 (9) (7) (8)

(7) (1) Sally Davis Guerrino De Luca Didier Hirsch Neil Hunt Neela Montgomery Dimitri Panayotopoulos Yeh Lung Board Members Total Wendy Becker Wendy Edouard Bugnion Sue Gove (in CHF) Aebischer Patrick In accordance with the Ordinance against Excessive Remuneration in Swiss Listed Companies (the “Ordinance”), the This Ordinance. compensation the by of required as members audited are of report this of the sections Certain Board below. of presented is Directors Team of Management Logitech International S.A. and of Logitech’s Group Remuneration Report should be read in conjunction description of the Compensation of Directors included with in our Proxy Statement. The Compensation Discussion and the Compensation Discussion providing by programs compensation executive and our understanding in stockholders Analysis our assist to intended is Analysis and the an overview of our elements the describing executive information additional includes Directors compensation-related Non-Employee of Compensation policies, our of description practices and decisions for fiscal year 2018. of compensation for the non-employee of our Board of Directors. members The equity- and cash of mix a be should and fixed is directors non-employee for compensation that policy general our is It Starting participation. committee and Board for retainers cash receive directors Non-employee compensation. based Overview 2.1 with the Board year from AGM the to AGM, 2017 the cash 2018 compensation of non-employee directors consists solely of annual retainers based on Board and committee service. While we have historically paid for travel days in with effective program compensation board our of component this discontinued we meetings, Board with connection our which 2017 began to in 2018 the Board Year, middle of fiscal year 2018. Non-employee directors also receive an annual restricted stock unit (“RSU”) grant based on a fixed market These value. grants generally vest based on one year of Board service. The following tables set forth compensation Logitech paid or accrued for payment to the individual members of the Board of Directors for services fiscal years ended performed in the March 31, 2018 and 2017: 2018 Year Fiscal 20182017 and Years Compensation of Board of Directors in Fiscal 2.2 1. Introduction 2. Compensation of Board of Directors Regula Tobler Audit Licensed Expert 49 Remuneration report KPMG AG Rolf Hauenstein Licensed Audit Expert Auditor in Charge Zurich, May 21,2018 Report of the Statutory Auditor Statutory the of Report Apples of Logitech International S.A., the General Meeting To The 2018. S.A. for the year ended March 31, remuneration report of Logitech International have audited the accompanying We compensation in Stock of the Ordinance against Excessive the information according to articles 14-16 audit was limited to report. sections 2.2, 3.2, and 4 of the remuneration (Ordinance) contained in the Exchange Listed Companies Board of Directors Responsibility of the report in accordance overall fair presentation of the remuneration is responsible for the preparation and The Board of Directors The (Ordinance). in Stock Exchange Listed Companies the Ordinance against Excessive compensation with Swiss law and designing the remuneration system and defining individual remuneration packages. Board of Directors is also responsible for Auditor's Responsibility our audit in accordance conducted on the accompanying remuneration report. We Our responsibility is to express an opinion ethical requirements and plan and perform the audit Those standards require that we comply with Auditing Standards. with Swiss the the remuneration report complies with Swiss law and articles 14 - 16 of to obtain reasonable assurance about whether Ordinance. with regard to obtain audit evidence on the disclosures made in the remuneration report An audit involves performing procedures depend on the The procedures selected with articles 14 - 16 of the Ordinance. to compensation, loans and credits in accordance auditor’s whether due to assessment of the risks of material misstatements in the remuneration report, judgment, including the components of also includes evaluating the reasonableness of the methods applied to value This audit fraud or error. overall presentation of the remuneration report. remuneration, as well as assessing the a basis for our opinion. and appropriate to provide audit evidence we have obtained is sufficient believe that the We Opinion Swiss law for the year ended March 31, 2018 of Logitech International S.A. complies with In our opinion, the remuneration report and articles 14 - 16 of the Ordinance. Enclosure: – Total Total

(4) (4) Other Other Compensation Compensation

(3) (3) Stock Stock Awards Awards

(2) (2) Bonus Bonus 1,290,834 4,821,9392,951,455 9,012,129 319,650 997,704 7,329,741 15,488,657 2,194,713 3,994,3704,915,515 7,146,580 245,616 700,930 7,311,598 15,220,063 52

Base Base 897,318 876,899 Salary Salary 2,527,369 2,457,038 Pension Fund, and employer’s contribution social to security and Medicare.

3.1 Overview 20182017 and Years in Fiscal of Group Management Team 3.2 Compensation (1) (5) 2018)exchange rate of 1CHF = US$1.0301. approved by the Compensation Committee. consolidated Logitech’s to 6 Note in presented are awards stock of valuation for methodology and assumptions key financial statements. contribution to medical premiums, tax preparation services (and associated tax gross-up), extended business travel-related expenses, matching contributions made by the Company to the Logitech Inc. 401(k) plan or the Logitech Employee 2017)exchange rate of 1CHF = US$1.0138. (in CHF) Executive Highest Paid Bracken Darrell, President and CEO Group Management Team Total (in CHF) Executive Highest Paid Bracken Darrell, President and CEO Group Management Team Total ______Fiscal Year 2017 Year Fiscal The Compensation Committee believes the design of our executive compensation programs - including the balance balance the including - programs compensation executive our of design the believes Committee Compensation The long-term and program) bonus incentive annual (our incentives short-term salary), (base compensation fixed among incentives (equity) - has and will continue to meet our goal compensation packages that provide for above market rewards when of Logitech outperforms both our internal goals providing our executives with market-competitive and the overall market, and limited rewards performance when does Logitech’s not meet these objectives. Overall, our Compensation Committee has developed executive compensation programs that performance reward and our shareholders both and our executives. incentive drive to the Company’s it believes will provide an the and Team Management Group the of member a to paid compensation highest the forth set tables following The fiscal the in performed services for Team Management Group the of members to paid compensation of amount total years ended and March 31, 2018 2017: 2018 Year Fiscal 1) Fiscal year 2018 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 2017 to March to 2017 (April 1) average month 12 the using Francs Swiss to converted amounts Dollar U.S. 2018 year Fiscal 2) bonuses cash other or Plan Bonus Performance Management Logitech the under earned amounts reflects Bonus 3) Amounts shown reflect the grant date fair value, of by stock fiscal awards The year, granted in such fiscal year. 4) employer’s premiums, insurance disability long-term premiums, insurance life term includes compensation Other March to 2016 (April 5) average month 12 the using Francs Swiss to converted amounts Dollar U.S. 2017 year Fiscal 3. Team Management the Group of of members Compensation Total

(6) — 225,504 — 186,739 Other Compensation

— 33,174 79,007 (5) Stock Awards

— 149,312 30,280 268,342 — 149,312 34,415 296,644 — 150,504— 35,701 149,312 314,705 32,323 301,635 — — 149,312 32,347 276,659 (4) Bonus

— 986,388 443,834 82,332 2,005,748 51 (3) 52 Travel Fees 20,000 15,000 10,000 20,000

(2) 68,750 75,000 — — 150,504 97,917 35,00068,750 5,00035,833 5,000 —75,000 — 146,739 150,504 27,430 251,684 Base 108,500 20,000 105,000 15,000 493,194 Salary 1,162,944 110,000 986,388 1,639,333 308,002 4,206,667 (9) (8) (10)

(11) 2017 2017 equity awards used to compensate the non-employee members of the Board. (12) Executive Officer, who is also a member of the Board. Mr. Darrell’s compensation is included as part Team. of Group Management Total 2017)exchange rate of 1CHF = US$1.0138. 2018)exchange rate of 1CHF = US$1.0301. our with effective program compensation board our of component this discontinued We meetings. committee and which began in the middle of fiscal year 2018. Year, 2017 to 2018 Board approved by the Compensation Committee. consolidated financial statements. for valuation stock awards of are presented in Note 6 to Logitech’s premiums, employer’s contribution to medical premiums, matching contributions made by the Company to the Logitech Inc. 401(k) plan and employer’s contribution to social security and Medicare. Other compensation for individual’s the to related and for Logitech by made payments includes Board the of members non-employee the and employer’s contributions to social security. 2017. is structured similarly to the members of He the does Group not Management Team. also receive the retainers or Total Board Members Total Lung Yeh Lung Dimitri Panayotopoulos Guerrino De Luca Neil Hunt Sally Davis Didier Hirsch Edouard Bugnion Kee-Lock Chua Sue Gove (in CHF) Aebischer Patrick ______Fiscal Year Year Fiscal 9) Board Total Members does not include the compensation of Bracken Darrell, Logitech’s President and Chief 10) Annual General Meeting in September 2016. Aebischer was elected at the first as a director Patrick 11) March to 2016 Annual General Meeting in September 2016. Kee-Lock Chua did not stand for re-election as directors at the (April average month 12 the using Francs Swiss 12) to converted amounts Dollar U.S. 2017 year Fiscal 1) Fiscal year 2018 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 2017 to March to 2017 (April 1) average month 12 the using Francs Swiss to converted amounts Dollar U.S. 2018 year Fiscal retainers. 2) committee and Board annual includes Directors of Board the of members non-employee for salary Base 3) Non-employee members of the Board of Directors received CHF 2,500 per day spent traveling to attend Board bonuses cash other 4) or Plan Bonus Performance Management Logitech the under earned amounts includes Bonus methodology and assumptions key 5) The award. stock annual the of value fair date grant the reflect shown Amounts 6) Other compensation for Mr. De Luca includes term life insurance premiums, long-term disability insurance September in Meeting General 7) Annual the at directors as elected first were Montgomery Neela and Becker Wendy 8) compensation his and Directors of Board the of member executive an is Chairman, Logitech’s Luca, De Guerrino

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 Total Total

(4) (4) Other Other Compensation Compensation

(3) (3) Stock Stock Awards Awards

(2) (2) Bonus Bonus 53 1,290,834 4,821,9392,951,455 9,012,129 319,650 997,704 7,329,741 15,488,657 2,194,713 3,994,3704,915,515 7,146,580 245,616 700,930 7,311,598 15,220,063 52

Base Base 897,318 876,899 Salary Salary 2,527,369 2,457,038

2017 2018 3.1 Overview 20182017 and Years in Fiscal of Group Management Team 3.2 Compensation (5) (1) 2018)exchange rate of 1CHF = US$1.0301. approved by the Compensation Committee. consolidated Logitech’s to 6 Note in presented are awards stock of valuation for methodology and assumptions key financial statements. contribution to medical premiums, tax preparation services (and associated tax gross-up), extended business travel-related expenses, matching contributions made by the Company to the Logitech Inc. 401(k) plan or the Logitech Employee Pension Fund, and employer’s contribution social to security and Medicare. 2017)exchange rate of 1CHF = US$1.0138. (in CHF) Executive Highest Paid Bracken Darrell, President and CEO (in CHF) Executive Highest Paid Bracken Darrell, President and CEO Group Management Team Total Group Management Team Total ______Fiscal Year Year Fiscal Fiscal Year Year Fiscal The Compensation Committee believes the design of our executive compensation programs - including the balance balance the including - programs compensation executive our of design the believes Committee Compensation The long-term and program) bonus incentive annual (our incentives short-term salary), (base compensation fixed among incentives (equity) - has and will continue to meet our goal compensation packages that provide for above market rewards when of Logitech outperforms both our internal goals providing our executives with market-competitive and the overall market, and limited rewards performance when does Logitech’s not meet these objectives. Overall, our Compensation Committee has developed executive compensation programs that performance reward and our shareholders both and our executives. incentive drive to the Company’s it believes will provide an the and Team Management Group the of member a to paid compensation highest the forth set tables following The fiscal the in performed services for Team Management Group the of members to paid compensation of amount total years ended and March 31, 2018 2017: 1) Fiscal year 2018 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 2017 to March to 2017 (April 1) average month 12 the using Francs Swiss to converted amounts Dollar U.S. 2018 year Fiscal 2) bonuses cash other or Plan Bonus Performance Management Logitech the under earned amounts reflects Bonus 3) Amounts shown reflect the grant date fair value, of by stock fiscal awards The year, granted in such fiscal year. 4) employer’s premiums, insurance disability long-term premiums, insurance life term includes compensation Other March to 2016 (April 5) average month 12 the using Francs Swiss to converted amounts Dollar U.S. 2017 year Fiscal 3. Team Management the Group of of members Compensation Total

(6) — 186,739 — 225,504 Other Compensation

— 33,174 79,007 (5) Stock Awards

— — 149,312— 149,312— 32,347 149,312 276,659 34,415 296,644 30,280 268,342 — 150,504— 35,701 149,312 314,705 32,323 301,635 (4) Bonus

— 986,388 443,834 82,332 2,005,748 51 (3) Travel Fees 10,000 20,000 15,000 20,000

(2) 35,00068,750 5,00035,833 5,000 —75,000 — 146,739 97,917 150,50475,00068,750 27,430 — 251,684 — 150,504 Base 108,500493,194 20,000 105,000 15,000 Salary 1,162,944 110,000 986,388 1,639,333 308,002 4,206,667 (9) (8) (10)

(11) equity awards used to compensate the non-employee members of the Board. (12) Executive Officer, who is also a member of the Board. Mr. Darrell’s compensation is included as part Team. of Group Management Total 2017)exchange rate of 1CHF = US$1.0138. 2018)exchange rate of 1CHF = US$1.0301. our with effective program compensation board our of component this discontinued We meetings. committee and which began in the middle of fiscal year 2018. Year, 2017 to 2018 Board approved by the Compensation Committee. consolidated financial statements. for valuation stock awards of are presented in Note 6 to Logitech’s premiums, employer’s contribution to medical premiums, matching contributions made by the Company to the Logitech Inc. 401(k) plan and employer’s contribution to social security and Medicare. Other compensation for individual’s the to related and for Logitech by made payments includes Board the of members non-employee the and employer’s contributions to social security. 2017. is structured similarly to the members of He the does Group not Management Team. also receive the retainers or (in CHF) Aebischer Patrick Edouard Bugnion Kee-Lock Chua Sally Davis Guerrino De Luca Sue Gove Didier Hirsch Neil Hunt Dimitri Panayotopoulos Yeh Lung Board Members Total Fiscal Year 2017 Year Fiscal ______9) Board Total Members does not include the compensation of Bracken Darrell, Logitech’s President and Chief 10) Annual General Meeting in September 2016. Aebischer was elected at the first as a director Patrick 11) March to 2016 Annual General Meeting in September 2016. Kee-Lock Chua did not stand for re-election as directors at the (April average month 12 the using Francs Swiss 12) to converted amounts Dollar U.S. 2017 year Fiscal 1) Fiscal year 2018 U.S. Dollar amounts converted to Swiss Francs using the 12 month average (April 2017 to March to 2017 (April 1) average month 12 the using Francs Swiss to converted amounts Dollar U.S. 2018 year Fiscal retainers. 2) committee and Board annual includes Directors of Board the of members non-employee for salary Base 3) Non-employee members of the Board of Directors received CHF 2,500 per day spent traveling to attend Board bonuses cash other 4) or Plan Bonus Performance Management Logitech the under earned amounts includes Bonus methodology and assumptions key 5) The award. stock annual the of value fair date grant the reflect shown Amounts 6) Other compensation for Mr. De Luca includes term life insurance premiums, long-term disability insurance September in Meeting General 7) Annual the at directors as elected first were Montgomery Neela and Becker Wendy 8) compensation his and Directors of Board the of member executive an is Chairman, Logitech’s Luca, De Guerrino 60 61 62 63 65 66 56 Page 54 2018 and 2017 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED INDEX TO of Cash Flows—Years Ended March 31, Ended March 2017 and 2016 2018, of Cash Flows—Years LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED Report of Independent Auditors Report of Independent Ended March 31, 2018, 2017 and 2016 Consolidated Statements of Operations—Years Ended March 31, 2018, 2017 Consolidated Statements of Comprehensive Income (Loss)—Years and 2016 31, Consolidated Balance Sheets—March Consolidated Statements Ended March Consolidated Changes in Shareholders' Statements of Equity—Years 31, 2018,2017 and 2016 Notes to Consolidated Financial Statements 53 54 There were no loans or credits made or outstanding at any time during fiscal years 2018 and 2017 to any current or current any to 2017 and 2018 years fiscal during time any at outstanding or made credits or loans no were There former members of the Board of In Directors addition, or no Group compensation Management was Team. paid or loans made during fiscal years 2018 and 2017 to parties closely related to members of the Board of Directors Team. Group Management or years paid during fiscal have been fees or compensation No additional 2018 and 2017current or former to any other than as noted above. Team of Directors or Group Management members of the Board 4. payments and other credits Loans,

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 62 63 65 66 56 60 61 Page 55 54 2018 and 2017 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED INDEX TO of Cash Flows—Years Ended March 31, Ended March 2017 and 2016 2018, of Cash Flows—Years LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED Report of Independent Auditors Report of Independent Ended March 31, 2018, 2017 and 2016 Consolidated Statements of Operations—Years Ended March 31, 2018, 2017 Consolidated Statements of Comprehensive Income (Loss)—Years and 2016 31, Consolidated Balance Sheets—March Consolidated Statements Consolidated Statements of Changes in Shareholders' Equity—Years Ended March Consolidated Changes in Shareholders' Statements of Equity—Years 31, 2018,2017 and 2016 Notes to Consolidated Financial Statements 53 There were no loans or credits made or outstanding at any time during fiscal years 2018 and 2017 to any current or current any to 2017 and 2018 years fiscal during time any at outstanding or made credits or loans no were There former members of the Board of In Directors addition, or no Group compensation Management was Team. paid or loans made during fiscal years 2018 and 2017 to parties closely related to members of the Board of Directors Team. Group Management or years paid during fiscal have been fees or compensation No additional 2018 and 2017current or former to any other than as noted above. Team of Directors or Group Management members of the Board 4. payments and other credits Loans, ending accrual balances to assess the accuracy ending accrual balances to assess the of the accruals for customer programs. in the year-end accrual calculations and recalculated the breakage release. to and customer claims processed subsequent to year-end for a sample of items in order assess the completeness of the accruals for customer programs. adjusting journal entries made by management to assess the appropriateness of these entries. ability to analysis to assess management’s accurately estimate their accruals for customer programs. customer programs and recalculated these to test the mathematical accuracy of the schedules.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 ending accrual balances to assess the accuracy ending accrual balances to assess the of the accruals for customer programs. in the year-end accrual calculations and recalculated the breakage release. to and customer claims processed subsequent to year-end for a sample of items in order assess the completeness of the accruals for customer programs. adjusting journal entries made by management to assess the appropriateness of these entries. ability to analysis to assess management’s accurately estimate their accruals for customer programs. customer programs and recalculated these to test the mathematical accuracy of the schedules.

Our response processes and management’s have analysed We for controls established to estimate the accruals Americas and customer programs in the EMEA have identified internal controls related regions. We operating to revenue recognition and have tested key controls. of selected effectiveness performed Furthermore, we have, amongst others, the following audit procedures: • performed statistical sampling over the We • analysed the methodology and inputs used We • performed an inspection of credit memos We • identified and tested high-risk manual We • estimates performed an actual to prior year We • for have obtained the accrual calculations We 57 56 Key Audit Matter by Revenues are an important metric considered with total external and internal stakeholders of Logitech for the year net sales for Logitech approximating $2.6B accruals for Total ended March 31, 2018 (2017: $2.2B). regions Americas and customer programs in the EMEA 2018 (2017: are estimated at $190.3M as of March 31, $158.2M). that Logitech has agreements with certain customers to the contain price protection credits to be granted as well as special customer subsequent to the initial sale performance- pricing discounts. Logitech also offers customers based based incentives and rebates to certain Additionally, on pre-determined performance criteria. arrangements Logitech enters into cooperative marketing to receive a with many of their customers allowing them purchases of credit equal to a set percentage of their products, or a fixed dollar credit for various Logitech’s determining marketing and incentive programs. When must the accruals for these programs, management all other known consider historical experience as well as anticipated factors including the negotiated terms, and volume of future purchases, anticipated level of incentive program redemption levels, life cycle and potential obsolescence of products in the channel, fluctuations in demand for specific products due to declining product and declining market trends or aggressive popularity, competitor actions. Due to the degree of estimation and subjectivity applied by management in determining these accruals, the accurate estimate of such accruals requires increased audit consideration. Revenue recognition: accruals for customer programs in the EMEA and Americas regions and programs in the EMEA Revenue recognition: accruals for customer Report on Key Audit Matters based on the circular 1/2015 of the Federal Audit Oversight Authority Authority Audit Oversight the Federal 1/2015 of circular on the based Audit Matters on Key Report Americas regions and in the EMEA for customer programs recognition: accruals Revenue trend accruals derived from historical product returns and pricing programs Revenue recognition: models our audit of judgment, were of most significance in those matters that, in our professional Key audit matters are context of our These matters were addressed in the statements of the current period. the consolidated financial we do not in forming our opinion thereon, and financial statements as a whole, and audit of the consolidated on these matters. provide a separate opinion 55 Report of the Statutory Auditor of the Statutory Report Apples of Logitech International S.A., the General Meeting To Financial Statements Auditor on the Consolidated Report of the Statutory S.A. and its financial statements of Logitech International audited the accompanying consolidated we have As statutory auditor, 2017, and the related balance sheets as of March 31, 2018 and which comprise the consolidated subsidiaries (the Group), equity for each shareholders’ (loss), cash flows, and changes in of operations, comprehensive income consolidated statements financial statements. and related notes to the consolidated period ended March 31, 2018, of the years in the three-year Responsibility Board of Directors’ in the preparation and fair presentation of the consolidated financial statements The board of directors is responsible for This responsibility includes Accounting Principles and the requirements of Swiss law. Accepted accordance with U.S. Generally an internal control system relevant to the preparation and fair presentation of designing, implementing and maintaining The board of directors free from material misstatement, whether due to fraud or error. consolidated financial statements that are are appropriate accounting policies and making accounting estimates that is further responsible for selecting and applying reasonable in the circumstances. Responsibility Auditor’s conducted our on these consolidated financial statements based on our audits. We Our responsibility is to express an opinion Accepted in the Auditing Standards Generally Auditing Standards as well as Swiss audits in accordance with Swiss law and to obtain reasonable assurance whether Those standards require that we plan and perform the audits America. United States of free from material misstatement. the consolidated financial statements are to obtain audit evidence about the amounts and disclosures in the consolidated An audit involves performing procedures The procedures selected depend on the auditor’sfinancial statements. risks of judgment, including the assessment of the In making those risk assessments, financial statements, whether due to fraud or error. material misstatement of the consolidated preparation of the consolidated financial statements in system relevant to the entity’s the auditor considers the internal control An audit also includes evaluating the appropriateness appropriate in the circumstances. order to design audit procedures that are reasonableness of accounting estimates made, as well as evaluating the overall of the accounting policies used and the and believe that the audit evidence we have obtained is sufficient statements. We presentation of the consolidated financial appropriate to provide a basis for our audit opinion. Opinion in all material respects, the financial position fairly, In our opinion, the consolidated financial statements referred to above present for each of the years in the three-year period as of March 31, 2018 and 2017, and the results of operations and the cash flows Accounting Principles and comply with Swiss law. Accepted ended March 31, 2018, in accordance with U.S. Generally Regula Tobler Audit Licensed Expert 58 – Policies Accounting of Significant Note 2 - Summary – Sheet Components Note 9 - Balance For further information on revenue recognition: product returns and pricing programs accruals derived from historical from historical derived accruals programs pricing returns and product recognition: revenue on information For further models: trend KPMG AG Rolf Hauenstein Licensed Audit Expert Auditor in Charge Zurich, May 21, 2018 Report on Other Legal Requirements Other Legal Report on and independence Act (AOA) Auditor Oversight on licensing according to the confirm that we meet the legal requirements We incompatible with our independence. and that there are no circumstances AOA) (article 728 CO and article 11 control an internal confirmed that 890, we Standard Auditing Swiss and CO 3 1 item paragraph article 728a accordance with In which been system exists, has designed preparation consolidated for the of financial statements according to the instructions of the board of directors. be approved. financial statements submitted to you recommend that the consolidated We We analysed the methodology and inputs used in the analysed the We the impact year-end historical trend models including of slow-moving channel inventory. contracts on a sample basis reviewed customer We to product to test the terms and conditions related of rights to returns and to verify the completeness selected customers. to the return offered actual to prior estimates analysis performed an We ability to accurately to assess management’s and pricing estimate the accruals for product returns programs. subsequent to year-end to reviewed sales We identify any disconfirming evidence that would indicate an additional allowance was required for product sales. region to determine if there are excessive channel inventory levels that might be subject to future price concessions. Directors to obtain an understanding of any unusual activity in the retail channel. journal entries made by management to assess the appropriateness of these entries. We obtained the historical trend model calculations obtained the We accruals as for product returns and pricing programs of year-end, which were prepared by management, the and we tested mathematical accuracy of schedules. Our response and processes have analysed management’s We these accruals for product returns controls to estimate internal have identified We and pricing programs. recognition and have tested controls related to revenue also of selected key controls. We operating effectiveness and assumptions to evaluate compared the policies consistent application year over year Furthermore, we have, amongst others, performed the Furthermore, we have, amongst others, following audit procedures: • • • • • product and by evaluated channel data trends by We • Finance performed inquires with the Regional We • adjusting identified and tested high-risk manual We • 57 58 For further information on revenue recognition: accruals for customer programs in the EMEA and Americas Americas and EMEA in the programs for customer accruals recognition: revenue on information For further the following: refer to regions – Policies Accounting of Significant Note 2 - Summary – Sheet Components Note 9 - Balance Revenue recognition: product returns and pricing programs accruals derived from historical trend accruals derived from historical product returns and pricing programs Revenue recognition: models Key Audit Matter metric considered by Revenues are an important stakeholders of Logitech with external and internal approximating $2.6B for total net sales for Logitech 31, 2018 (2017: $2.2B). the year ended March that accruals based on Management has determined for product returns and pricing historical trend models at March 31, 2018 (2017: programs are $85.6M $59.9M). and Logitech grants limited rights to return products in the grants price protection credits to customers As such, event of a subsequent price reduction. price estimates of expected future returns and at the time protection credits are required to be made accruals, of sale. When determining the appropriate as a management must consider historical trends known basis for the estimate as well as all other the level of factors, which could significantly influence credits. future product returns and price protection inventory by These factors include the level of channel new customer and product, the age of inventory, products in products in the channel, the life cycle of issues, the channel, products with known quality changes fluctuations in demand for a specific product, the return rights, in customer contracts, which affect products which and changes in the customer base and discounting are expected to experience unusually high due to specifically identifiable conditions. Due to the degree of estimation and subjectivity the product applied by management in determining from returns and pricing programs accruals derived of these historical trend models, the accurate estimate accruals requires special audit consideration. Revenue is a key indicator in evaluating the Group and is thus a focus area of internal target setting and These expectations create third party expectations. potential pressure on management to achieve the set targets and as a result, potential manipulation of certain inputs or assumptions used in calculating the product returns and pricing programs could occur.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 Regula Tobler Audit Licensed Expert 59 58 – Policies Accounting of Significant Note 2 - Summary – Sheet Components Note 9 - Balance For further information on revenue recognition: product returns and pricing programs accruals derived from historical from historical derived accruals programs pricing returns and product recognition: revenue on information For further models: trend Rolf Hauenstein KPMG AG Licensed Audit Expert Auditor in Charge Zurich, May 21, 2018 Report on Other Legal Requirements Other Legal Report on and independence Act (AOA) Auditor Oversight on licensing according to the confirm that we meet the legal requirements We incompatible with our independence. and that there are no circumstances AOA) (article 728 CO and article 11 control an internal confirmed that 890, we Standard Auditing Swiss and CO 3 1 item paragraph article 728a accordance with In which been system exists, has designed preparation consolidated for the of financial statements according to the instructions of the board of directors. be approved. financial statements submitted to you recommend that the consolidated We We performed an actual to prior estimates analysis performed an We ability to accurately to assess management’s and pricing estimate the accruals for product returns programs. subsequent to year-end to reviewed sales We identify any disconfirming evidence that would indicate an additional allowance was required for product sales. region to determine if there are excessive channel inventory levels that might be subject to future price concessions. Directors to obtain an understanding of any unusual activity in the retail channel. journal entries made by management to assess the appropriateness of these entries. We obtained the historical trend model calculations obtained the We accruals as for product returns and pricing programs of year-end, which were prepared by management, the and we tested mathematical accuracy of schedules. methodology and inputs used in the analysed the We the impact year-end historical trend models including of slow-moving channel inventory. contracts on a sample basis reviewed customer We to product to test the terms and conditions related of rights to returns and to verify the completeness selected customers. to the return offered Our response and processes have analysed management’s We these accruals for product returns controls to estimate internal have identified We and pricing programs. recognition and have tested controls related to revenue also of selected key controls. We operating effectiveness and assumptions to evaluate compared the policies consistent application year over year Furthermore, we have, amongst others, performed the Furthermore, we have, amongst others, following audit procedures: • • • product and by evaluated channel data trends by We • Finance performed inquires with the Regional We • adjusting identified and tested high-risk manual We • • • 57 For further information on revenue recognition: accruals for customer programs in the EMEA and Americas Americas and EMEA in the programs for customer accruals recognition: revenue on information For further the following: refer to regions – Policies Accounting of Significant Note 2 - Summary – Sheet Components Note 9 - Balance Revenue recognition: product returns and pricing programs accruals derived from historical trend accruals derived from historical product returns and pricing programs Revenue recognition: models Key Audit Matter metric considered by Revenues are an important stakeholders of Logitech with external and internal approximating $2.6B for total net sales for Logitech 31, 2018 (2017: $2.2B). the year ended March that accruals based on Management has determined for product returns and pricing historical trend models at March 31, 2018 (2017: programs are $85.6M $59.9M). and Logitech grants limited rights to return products in the grants price protection credits to customers As such, event of a subsequent price reduction. price estimates of expected future returns and at the time protection credits are required to be made accruals, of sale. When determining the appropriate as a management must consider historical trends known basis for the estimate as well as all other the level of factors, which could significantly influence credits. future product returns and price protection inventory by These factors include the level of channel new customer and product, the age of inventory, products in products in the channel, the life cycle of issues, the channel, products with known quality changes fluctuations in demand for a specific product, the return rights, in customer contracts, which affect products which and changes in the customer base and discounting are expected to experience unusually high due to specifically identifiable conditions. Due to the degree of estimation and subjectivity the product applied by management in determining from returns and pricing programs accruals derived of these historical trend models, the accurate estimate accruals requires special audit consideration. Revenue is a key indicator in evaluating the Group and is thus a focus area of internal target setting and These expectations create third party expectations. potential pressure on management to achieve the set targets and as a result, potential manipulation of certain inputs or assumptions used in calculating the product returns and pricing programs could occur.

2016

— 3,913 2017

Years Ended March 31, Years — 127 1,490 1,630 5,860 (5,670)3,955 2,273 14,2015,808 (837) 7,251 (1,670) 11,279 (3,296) 1,252 (8,499) 2,928 (2,431) 2018 $ 208,542 $ 205,876 $ 119,317 $ 215,793 $ 217,155 $ 120,569 60 (In thousands) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) INCOME OF COMPREHENSIVE STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral Total other comprehensive income Total Currency translation gain (loss), net of taxes Currency translation in other currency translation loss included Reclassification of net income (expense), taxes prior service credits (costs), net of Net gain (loss) and in operating expenses Reclassification of amortization included taxes Deferred hedging gain (loss), net of included in cost of goods Reclassification of hedging loss (gain) sold Defined benefit plans: Currency translation gain (loss): Currency translation Hedging gain (loss): comprehensive income Total Net income income (loss): Other comprehensive

— — 984 790 2016

— (9,045) — (0.05) — (0.06) 23 17,802 2017

Years Ended March 31, Years — — — (116) 8,878 6,175 8,930 5,814 4,969 1,452 (4,908) (8,092) (2,437) 1,677 1,624 96,353 100,270 101,012 23,723 9,113 3,110 909,241 820,041 681,047 679,508 608,181 551,989 435,489143,760 379,641 130,525 319,015 113,176 229,733 211,860 129,058 232,265 214,989 131,472 208,542 205,876 128,362 164,038168,971 162,058 165,540 163,296 165,792 2018 1,648,744 1,395,211 1,337,053 $ 2,566,863 $ 2,221,427 $ 2,018,100 $ 0.63 $ 0.57 $ 0.53 $ 1.23 $ 1.24 $ 0.77 $ 1.27 $ 1.27 $ 0.79 $ 208,542 $ 205,876 $ 119,317 $ 1.23 $ 1.24 $ 0.72 $ 1.27 $ 1.27 $ 0.73

59 60 LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH (In thousands, except per share amounts) except per (In thousands, CONSOLIDATED STATEMENTS OF OPERATIONS STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying Total operating expenses Total Gross profit Marketing and selling Research and development General and administrative assets and acquisition-related costs Amortization of intangible for business acquisition Change in fair value of contingent consideration Restructuring charges (credits), net Basic Diluted Cash dividend per share Continuing operations Discontinued operations Continuing operations Discontinued operations Net income Net income per share - diluted Net income per share - basic

Cost of goods sold on inventory effect assets and purchase accounting Amortization of intangible Net sales Operating expenses: Operating income Interest income Other income (expense), net income taxes Income from continuing operations before Provision for income taxes Net income from continuing operations Net income (loss) per share - basic: Loss from discontinued operations, net of income taxes Loss from discontinued operations, net Weighted average shares used to compute net income (loss) per share: Weighted Net income (loss) per share - diluted:

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018

2016

— 3,913 2017

Years Ended March 31, Years — 127 1,490 1,630 5,860 (5,670)3,955 2,273 14,2015,808 (837) 7,251 (1,670) 11,279 (3,296) 1,252 (8,499) 2,928 (2,431) 2018 $ 215,793 $ 217,155 $ 120,569 $ 208,542 $ 205,876 $ 119,317 61 60 (In thousands) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) INCOME OF COMPREHENSIVE STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral

Total other comprehensive income Total

Currency translation gain (loss), net of taxes Currency translation in other currency translation loss included Reclassification of net income (expense), taxes prior service credits (costs), net of Net gain (loss) and in operating expenses Reclassification of amortization included taxes Deferred hedging gain (loss), net of included in cost of goods Reclassification of hedging loss (gain) sold Hedging gain (loss): comprehensive income Total Currency translation gain (loss): Currency translation Defined benefit plans:

Net income income (loss): Other comprehensive

— — 984 790 2016

— (9,045) — (0.05) — (0.06) 23 17,802 2017

Years Ended March 31, Years — — — (116) 8,878 6,175 8,930 5,814 4,969 1,452 (4,908) (8,092) (2,437) 1,677 1,624 96,353 100,270 101,012 23,723 9,113 3,110 909,241 820,041 681,047 679,508 608,181 551,989 435,489143,760 379,641 130,525 319,015 113,176 229,733 211,860 129,058 232,265 214,989 131,472 208,542 205,876 128,362 164,038168,971 162,058 165,540 163,296 165,792 2018 1,648,744 1,395,211 1,337,053 $ 2,566,863 $ 2,221,427 $ 2,018,100 $ 0.63 $ 0.57 $ 0.53 $ 1.23 $ 1.24 $ 0.77 $ 208,542 $ 205,876$ $ 119,317 1.27 $ 1.27 $ 0.79 $ 1.23 $ 1.24 $ 0.72 $ 1.27 $ 1.27 $ 0.73

59 LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH (In thousands, except per share amounts) except per (In thousands, CONSOLIDATED STATEMENTS OF OPERATIONS STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying Total operating expenses Total Gross profit Marketing and selling Research and development General and administrative assets and acquisition-related costs Amortization of intangible for business acquisition Change in fair value of contingent consideration Restructuring charges (credits), net Basic Diluted Cash dividend per share Continuing operations Discontinued operations Net income Continuing operations Discontinued operations Net income per share - diluted Net income per share - basic Net sales Cost of goods sold on inventory effect assets and purchase accounting Amortization of intangible Operating expenses: Operating income Interest income Other income (expense), net income taxes Income from continuing operations before Provision for income taxes Net income from continuing operations Net income (loss) per share - basic: Loss from discontinued operations, net of income taxes Loss from discontinued operations, net Weighted average shares used to compute net income (loss) per share: Weighted Net income (loss) per share - diluted: ) ) ) ) ) ) ) ) ) ) )

) )

)

— — — — — — — (469) (715) 1,405 1,885 6,604 (1,975 (7,247 (2,419 (9,619 25,513 31,966 (56,615 (60,690 (85,915 (70,358 519,195 119,317 (143,753 2016 $ $ ) ) ) ) ) ) ) ) ) )

) )

)

— — (13,684 — (1,395 — — — 107 715 (569) (960) 9,367 7,124 10,073 (8,092 (5,309 (7,052 28,338 (17,843 35,890 27,351 41,121 51,108 24,45949,917 (58,104 (4,317 39,574 19,767 (46,553 (15,428 (66,987 (18,412 (31,804 (98,964 (93,093 (83,786 547,533 205,876 2017 $ $ ) ) ) ) )

)

Years Ended March 31, Years — — — (11) 237 (669) 4,730 (5,370 7,141 (2,397 6,789 6,423 (4,908) (5,000) (6,789) (1,240) (6,053) 16,047 94,414 44,138 15,607 41,295 17,695 44,655 41,910 (26,363 (16,908 (88,323 (29,813 (39,748 (30,722 641,947 547,533 519,195 537,038 346,261 288,389 185,195 208,542 (127,873) (155,717) (128,704) (104,248) 2018 $ $ 62 (In thousands) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED STATEMENTS OF CASH FLOWS CASH OF STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial Net increase (decrease) in cash and cash equivalents Net cash provided by operating activities Net cash used in financing activities Net cash used in investing activities Accounts receivable, net Inventories Other assets Accounts payable Accrued and other liabilities Changes in assets and liabilities, net of acquisitions: Gain on investment in privately held companies Gain on investment Share-based compensation expense Share-based compensation Amortization of intangible assets Amortization of intangible Depreciation Net gain on divestiture of discontinued operations Net gain on divestiture for business acquisition Change in fair value of contingent consideration Other Deferred income taxes Adjustments to reconcile net income to net cash provided by operating net income to net cash provided by Adjustments to reconcile activities: Acquisitions, net of cash acquired Payment of contingent consideration for business acquisition Proceeds from the return of investment in privately held companies Proceeds from the return of investment net of cash sold Payments for the divestiture of discontinued operations, Changes in restricted cash Proceeds from exercise of stock options and purchase rights Tax withholdings related to net share settlements of restricted stock units Tax Net income Purchases of short-term investments Purchases of property, plant and equipment Purchases of property, Sales of short-term investments Investment in privately held companies Purchases of trading investments Proceeds from sales of trading investments Payment of cash dividends Purchases of registered shares Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period Effect of exchange rate changes on cash and cash equivalents

Cash flows from investing activities: Cash flows from operating activities: Cash flows from operating Cash flows from financing activities:

2017

March 31, 56,362 41,732 47,234 26,596 86,30487,547 85,408 47,564 34,95681,924 51,797 83,691 30,148 30,148 (93,455) (100,706) 214,885259,906 185,179 253,401 275,451 249,741 120,755 88,119 281,732575,720 232,273 507,078 692,600 642,566 2018 (165,686) (174,037) 1,173,100 1,027,845 1,232,316 1,074,110 1,050,557 856,111 $ 641,947 $ 547,533 $ 1,743,157 $ 1,498,677 $ 293,988 $ 274,805 $ 1,743,157 $ 1,498,677 62 61 Assets LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED BALANCE SHEETS BALANCE CONSOLIDATED (In thousands, except per share amounts) except per (In thousands, Liabilities and Shareholders' Equity The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial Total current assets Total Total assets Total current liabilities Total Conditionally authorized shares—50,000 at March 31, 2018 and 2017 Additional paid-in capital shares, at cost—8,527 and 10,727 shares at March 31, 2018 and Treasury 2017, respectively shareholders' equity Total liabilities and shareholders' equity Total Total liabilities Total Issued and authorized shares—173,106 at March 31, 2018 and 2017 Accounts receivable, net Accounts receivable, Inventories Other current assets Cash and cash equivalents Property, plant and equipment, net Property, Goodwill Other intangible assets, net Other assets Accounts payable Accrued and other current liabilities Income taxes payable Other non-current liabilities Registered shares, CHF 0.25 par value: Retained earnings Accumulated other comprehensive loss

Current assets: Non-current assets: Current liabilities: Non-current liabilities: Commitments and contingencies (Note 14) Commitments and contingencies (Note Shareholders' equity:

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 ) ) ) ) ) ) ) ) ) ) )

) )

)

— — — — — — — (469) (715) 1,405 1,885 6,604 (1,975 (7,247 (2,419 (9,619 25,513 31,966 (56,615 (60,690 (85,915 (70,358 519,195 119,317 (143,753 2016 $ $ ) ) ) ) ) ) ) ) ) )

) )

)

— — (1,395 — (13,684 — — — 107 715 (569) (960) 9,367 7,124 10,073 (5,309 (8,092 (7,052 28,338 (17,843 35,890 27,351 41,121 51,108 24,45949,917 (58,104 (4,317 39,574 19,767 (46,553 (15,428 (66,987 (18,412 (31,804 (98,964 (93,093 (83,786 547,533 205,876 2017 $ $ ) ) ) ) )

)

Years Ended March 31, Years — — — (11) 237 (669) 4,730 (5,370 7,141 (2,397 6,789 6,423 (5,000) (4,908) (6,789) (1,240) (6,053) 16,047 94,414 44,138 15,607 41,295 17,695 44,655 41,910 (16,908 (26,363 (88,323 (29,813 (39,748 (30,722 641,947 547,533 519,195 537,038 346,261 288,389 185,195 208,542 (127,873) (155,717) (128,704) (104,248) 2018 $ $ 63 62 (In thousands) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED STATEMENTS OF CASH FLOWS CASH OF STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial

Net increase (decrease) in cash and cash equivalents Net cash provided by operating activities Net cash used in financing activities Net cash used in investing activities Inventories Other assets Accounts receivable, net Accounts payable Accrued and other liabilities Changes in assets and liabilities, net of acquisitions: Gain on investment in privately held companies Gain on investment Share-based compensation expense Share-based compensation Amortization of intangible assets Amortization of intangible Depreciation Net gain on divestiture of discontinued operations Net gain on divestiture for business acquisition Change in fair value of contingent consideration Other Deferred income taxes Adjustments to reconcile net income to net cash provided by operating net income to net cash provided by Adjustments to reconcile activities: Acquisitions, net of cash acquired Payment of contingent consideration for business acquisition Proceeds from the return of investment in privately held companies Proceeds from the return of investment net of cash sold Payments for the divestiture of discontinued operations, Changes in restricted cash Proceeds from exercise of stock options and purchase rights Tax withholdings related to net share settlements of restricted stock units Tax Net income Purchases of short-term investments Purchases of property, plant and equipment Purchases of property, Sales of short-term investments Investment in privately held companies Purchases of trading investments Proceeds from sales of trading investments Payment of cash dividends Purchases of registered shares Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period Effect of exchange rate changes on cash and cash equivalents

Cash flows from investing activities: Cash flows from operating activities: Cash flows from operating Cash flows from financing activities:

2017

March 31, 56,362 41,732 86,30487,547 85,408 47,564 34,95681,924 51,797 83,691 30,148 30,148 47,234 26,596 (93,455) (100,706) 214,885259,906 185,179 253,401 275,451 249,741 120,755 88,119 281,732575,720 232,273 507,078 692,600 642,566 2018 (165,686) (174,037) 1,173,100 1,027,845 1,232,316 1,074,110 1,050,557 856,111 $ 641,947 $ 547,533 $ 1,743,157 $ 1,498,677 $ 293,988 $ 274,805 $ 1,743,157 $ 1,498,677 61 Assets LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED BALANCE SHEETS BALANCE CONSOLIDATED (In thousands, except per share amounts) except per (In thousands, Liabilities and Shareholders' Equity The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial Total current assets Total assets Total current liabilities Total Total liabilities Total Issued and authorized shares—173,106 at March 31, 2018 and 2017 Conditionally authorized shares—50,000 at March 31, 2018 and 2017 Additional paid-in capital shares, at cost—8,527 and 10,727 shares at March 31, 2018 and Treasury 2017, respectively shareholders' equity Total liabilities and shareholders' equity Total Cash and cash equivalents net Accounts receivable, Inventories Other current assets Property, plant and equipment, net Property, Goodwill Other intangible assets, net Other assets Accounts payable Accrued and other current liabilities Income taxes payable Other non-current liabilities Registered shares, CHF 0.25 par value: Retained earnings Accumulated other comprehensive loss

Current assets: Non-current assets: Current liabilities: Non-current liabilities: Commitments and contingencies (Note 14) Commitments and contingencies (Note Shareholders' equity: ) ) ) ) (2,353 (7,247 (1,251 41,910 44,317 35,976 39,574 57,209 19,767 27,351 856,111 758,134 759,948 Total (104,248 1,050,557 ) $ ) $ ) $ — —— — (29,813) —— — (18,412) (93,093) — (30,722) — — — — — — — (85,915) — — (70,358) — (83,786) 7,251 215,793 1,252 120,569 11,279 217,155 (100,706 (113,237 (111,985 loss other Accumulated comprehensive $ $ (93,455) $ ) — — — — — — — (2,249) 53,912 (104,248 earnings Retained 1,074,110 1,232,316 ) $ ) $ ) $ 963,576 $ — 18,478 20,595 13,985 24,171 20,504 10,398 (174,037 (165,686 (128,407 —— —— — — 208,542 —— Treasury shares Treasury 8,527 $ (1,527) (2,513) 10,727 $ 10,697 $ Shares Amount

) (1,536) ) (1,484) ) (1,812) ) (1,067) )—— )—— 64 ——— — — — (93,093) — 863 (30,722) — — — — (85,915) —— — 4,951 (70,358) — — 119,317 —— 4,027 — (83,786) — — 205,876 (737 3,297 6,616 (2,353 (1,251 44,317 35,976 26,596 21,315 47,234 27,351 15,403 (48,291 (30,148 (17,645 capital paid-in (In thousands) Additional LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH —————— ———— —— —— —————— ———————— —— —————— —————— Registered shares 173,106 $ 30,148 $ 173,106 $ 30,148 $ 173,106 $ 30,148 $ 173,106 $ 30,148 $ — 8,625 $ (88,951) $ 930,174 $ Shares Amount CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY IN SHAREHOLDERS' OF CHANGES STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying Issuance of shares upon vesting of restricted stock units Share-based compensation Cash dividends Share-based compensation Cash dividends March 31, 2017 March 31, 2018 Sale of shares upon exercise of stock options and purchase rights Issuance of shares upon vesting of restricted stock units Cumulative effect of adoption of Cumulative effect new accounting standard (Note 2) Total comprehensive income comprehensive Total Purchases of registered shares Sale of shares upon exercise of Sale of shares upon exercise rights stock options and purchase Share-based compensation Issuance of shares upon vesting Issuance of shares upon of restricted stock units Cash dividends March 31, 2016 Sale of shares upon exercise of stock options and purchase rights March 31, 2015 Total comprehensive income Total Purchases of registered shares Purchases of registered from share-based effects Tax awards Total comprehensive income comprehensive Total Purchases of registered shares share-based from effects Tax awards

4,958 5,591 2,207 1,438 1,431 3,659 2016 $

5,072 2017 $ $ — $ —

Years Ended March 31, Years 3,869 1,000 2018 $ $ $ — $ — $ $$$$ —$ — $$ — $ — $ — $ — — $ — $ $ — $ — $ — $ — $ 332 $ — $ 15,051 $ 11,323 $ 11,499 64 63 (In thousands) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) FLOWS CASH OF STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial Property, plant and equipment purchased during the period and included in plant and equipment purchased Property, period end liability accounts Unpaid purchase price for business acquisition Unpaid purchase price Fair value of retained cost method investment as a result of the divestiture of cost method investment as a result of the Fair value of retained discontinued operations Amortization of intangible assets Share-based compensation plant and equipment Purchases of property, the period Cash and cash equivalents, beginning of Cash and cash equivalents, end of the period Depreciation Income taxes paid, net

Flow Disclosures: Supplementary Cash Non-cash investing activities: Supplemental cash flow information: Supplemental cash The following amounts reflected in the consolidated statements of cash flows are included in discontinued operations: The following amounts reflected in the

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 ) ) ) ) (2,353 (7,247 (1,251 35,976 39,574 19,767 27,351 57,209 41,910 44,317 758,134 759,948 856,111 Total (104,248 1,050,557 ) $ ) $ ) $ — (18,412) — — (93,093) — —— (70,358) — — — — (85,915) — — (83,786) — —— (30,722) — (29,813) — — 1,252 120,569 7,251 215,793 11,279 217,155 (113,237 (111,985 (100,706 loss other Accumulated comprehensive $ $ (93,455) $ ) — — — — — — — (2,249) 53,912 (104,248 earnings Retained 1,074,110 1,232,316 ) $ ) $ 963,576 $ ) $ — 24,171 13,985 10,398 20,504 20,595 18,478 (174,037 (128,407 (165,686 —— —— — — 208,542 —— Treasury shares Treasury 8,527 $ (2,513) (1,527) 10,727 $ 10,697 $ Shares Amount

65 ) (1,484) )—— ) (1,067) ) (1,812) )—— ) (1,536) 64 — — — 119,317 — — — (93,093) — 4,951 (70,358) — — — — (85,915) — — — 205,876 — 4,027 (83,786) — — 863 (30,722) — ——— (737 6,616 3,297 (2,353 (1,251 35,976 27,351 26,596 15,403 21,315 44,317 47,234 (30,148 (17,645 (48,291 capital paid-in (In thousands) Additional LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH —— —— —— —— —— ———— ———— —— —— —— —— —— —— —— —— —————— —— Registered shares 173,106 $ 30,148 $ — 8,625 $ (88,951) $ 930,174 $ 173,106 $ 30,148 $ 173,106 $ 30,148 $ 173,106 $ 30,148 $ Shares Amount CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY IN SHAREHOLDERS' OF CHANGES STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying

Total comprehensive income Total Cash dividends Share-based compensation Issuance of shares upon vesting of restricted stock units Purchases of registered shares Purchases of registered vesting Issuance of shares upon of restricted stock units Cash dividends Sale of shares upon exercise of Sale of shares upon exercise rights stock options and purchase Share-based compensation March 31, 2015 March 31, 2017 Total comprehensive income comprehensive Total Sale of shares upon exercise of stock options and purchase rights Purchases of registered shares Tax effects from share-based effects Tax awards March 31, 2016 Tax effects from share-based from effects Tax awards Total comprehensive income comprehensive Total Issuance of shares upon vesting of restricted stock units Cumulative effect of adoption of Cumulative effect new accounting standard (Note 2) Purchases of registered shares Sale of shares upon exercise of stock options and purchase rights Share-based compensation Cash dividends March 31, 2018

4,958 5,591 2,207 1,438 1,431 3,659 2016 $

5,072 2017 $ $ — $ —

Years Ended March 31, Years 3,869 1,000 2018 $ $ $$ — 15,051$ $ $$$ 11,323$ — — $$ — $ $ $ — $ 11,499 — $ — $ — — $ — $ $ — $ — $ — $ — $ 332 $ — 63 (In thousands) LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) FLOWS CASH OF STATEMENTS CONSOLIDATED The accompanying notes are an integral part of these consolidated financial statements. The accompanying notes are an integral part of these consolidated financial Property, plant and equipment purchased during the period and included in plant and equipment purchased Property, period end liability accounts for business acquisition Unpaid purchase price divestiture of cost method investment as a result of the Fair value of retained discontinued operations Income taxes paid, net Depreciation Amortization of intangible assets Share-based compensation plant and equipment Purchases of property, the period Cash and cash equivalents, beginning of Cash and cash equivalents, end of the period Flow Disclosures: Supplementary Cash Non-cash investing activities: flow information: Supplemental cash consolidated statements of cash flows are included in discontinued operations: The following amounts reflected in the 66 The functional currency of the Company's operations is primarily the U.S. Dollar. Certain operations use the Certain operations use is primarily the U.S. Dollar. of the Company's operations The functional currency Revenue is recognized when all of the following criteria are met: products and hardware bundled with software essential to its For sales of most hardware peripherals and authorized resellers are recognized upon shipment net of estimated Revenues from sales to distributors of its customers, and with certain The Company enters into cooperative marketing arrangements with many The preparation of financial statements in conformity with U.S. GAAP requires management to make to make requires management GAAP with U.S. statements in conformity of financial The preparation • Evidence of an arrangement exists; • Delivery has occurred and title and risk of loss has transferred to a customer; • Price of a product is fixed or determinable; and • Collectability is reasonably assured. Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Use of Estimates statements. financial reported in the consolidated the amounts affect assumptions that estimates and judgments, to be believed various other assumptions experience and on historical bases its estimates Management goodwill, the fair value of involve made by management and assumptions Significant estimates reasonable. programs and warranty liabilities, accruals for customer from business acquisitions, intangible assets acquired inventory valuation, allowance for doubtful accounts, when appropriate, sales return reserves, related breakage value, share-based periodical reassessment of its fair from business acquisitions and contingent consideration Although these assets. valuation allowances for deferred tax uncertain tax positions, and compensation expense, that may impact the Company of current events and actions best knowledge on management’s estimates are based materially from those estimates. results could differ in the future, actual Foreign Currencies The financial currencies as their functional currencies. Swiss Franc, or other local Euro, Chinese Renminbi, to whose functional currency is other than the U.S. Dollar are translated statements of the Company's subsidiaries sales, of exchange for assets and liabilities and monthly average rates for net U.S. Dollars using period-end rates translation gains and losses are included as a component of shareholders' income and expenses. Cumulative in loss. Gains and losses arising from transactions denominated equity in accumulated other comprehensive functional currency are reported in other income (expense), net in the currencies other than a subsidiary's consolidated statements of operations. Revenue Recognition occurred and title and risk of loss have transferred to the these criteria are met at the time delivery has functionality, customer. pricing for cooperative marketing arrangements, customer incentive and product returns and expected payments is recorded as a reduction of sales or as an operating expense if The estimated cost of these programs programs. and can reasonably estimate the fair the Company receives a separately identifiable benefit from the customer are used to determine the cost of these value of that benefit. Significant management judgments and estimates management to estimate the percentage of programs in any accounting period. Certain customer programs require based on historical experience and on those programs which will not be claimed or will not be earned by customers The percentage of these customer programs that will not the specific terms and conditions of particular programs. be claimed or earned is commonly referred to as "breakage". percentage of their purchases of the indirect partners, allowing customers to receive a credit equal to a set The objective of these incentive programs. Company's products, or a fixed dollar credit for various marketing and sales of the Company's products. arrangements is to encourage advertising and promotional events to increase the date the revenue is recognized or the Accruals for these marketing arrangements are recorded at the later of based on negotiated terms, historical experience and inventory levels in the channel. date the incentive is offered, 65 66 LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED NOTES TO The consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany All include the accounts of Logitech and its subsidiaries. The consolidated financial statements the in the Notes to the consolidated financial statements relates to Unless indicated otherwise, the information thirteen-week periods, each The Company's fiscal year ends on March 31. Interim quarters are generally financial statements have Certain amounts from the comparative periods in the accompanying consolidated Logitech International S.A, together with its consolidated subsidiaries (Logitech or the Company), is a world or the Company), (Logitech subsidiaries together with its consolidated International S.A, Logitech including direct domestic and international customers, its products to a broad network of The Company sells parent holding International S.A. has been the in Switzerland in 1981 and Logitech Logitech was founded During the fourth quarter of fiscal year 2016, the Company completed the disposition of the Lifesize video 2016, the Company completed the disposition of the Lifesize video During the fourth quarter of fiscal year During fiscal year 2018, the Company acquired ASTRO Gaming business and another small technology ASTRO Gaming business acquired During fiscal year 2018, the Company company. During fiscal year 2017, the Company acquired Jaybird LLC and Saitek product line. See "Note 3 - During fiscal year 2017, the Company company. Acquisitions" for more information. Business Accounting Policies Note 2—Summary Significant of Basis of Presentation are presented in The consolidated financial statements eliminated. balances and transactions have been accordance with U.S. GAAP. the historical results of Lifesize video conferencing As a result, the Company has classified conferencing business. in its consolidated statements of operations. See "Note 4 - Discontinued business as discontinued operations Operations" for more information. is does not include results of Lifesize video conferencing business, which Company's continuing operations and classified as discontinued operations. Year Fiscal For purposes of presentation, the Company has indicated its quarterly periods ending on a Friday of each quarter. end on the last day of the calendar quarter. Reclassification as of and for the year ended been reclassified to conform to the consolidated financial statement presentation March 31, 2018. Note 1—The Company Note 1—The cloud to digital and help connect people products that and marketing designing, manufacturing leader in around the personal PC products to improve experiences than 35 years ago, Logitech created experiences. More better experiences company designing products that enable it is a multi-brand, multi-category platform, and today whether it is on a as music, gaming, video and computing, and creating any digital content such consuming, sharing cloud. mobile device or in the computer, distributors. e-tailers, and indirect sales through sales to retailers, in with its registered office S.A. is a Swiss holding company since 1988. Logitech International company of Logitech through subsidiaries which conducts its business and headquarters in Lausanne, Switzerland, Apples, Switzerland the SIX Swiss International S.A. are listed on both Asia Pacific. Shares of Logitech and Americas, EMEA in the LOGI. LOGN and the Nasdaq Global Select Market under the trading symbol Exchange under the trading symbol Acquisitions Business

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 67 66 The functional currency of the Company's operations is primarily the U.S. Dollar. Certain operations use the Certain operations use is primarily the U.S. Dollar. of the Company's operations The functional currency Revenue is recognized when all of the following criteria are met: products and hardware bundled with software essential to its For sales of most hardware peripherals and authorized resellers are recognized upon shipment net of estimated Revenues from sales to distributors of its customers, and with certain The Company enters into cooperative marketing arrangements with many The preparation of financial statements in conformity with U.S. GAAP requires management to make to make requires management GAAP with U.S. statements in conformity of financial The preparation • Evidence of an arrangement exists; • Delivery has occurred and title and risk of loss has transferred to a customer; • Price of a product is fixed or determinable; and • Collectability is reasonably assured. Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Use of Estimates statements. financial reported in the consolidated the amounts affect assumptions that estimates and judgments, to be believed various other assumptions experience and on historical bases its estimates Management goodwill, the fair value of involve made by management and assumptions Significant estimates reasonable. programs and warranty liabilities, accruals for customer from business acquisitions, intangible assets acquired inventory valuation, allowance for doubtful accounts, when appropriate, sales return reserves, related breakage value, share-based periodical reassessment of its fair from business acquisitions and contingent consideration Although these assets. valuation allowances for deferred tax uncertain tax positions, and compensation expense, that may impact the Company of current events and actions best knowledge on management’s estimates are based materially from those estimates. results could differ in the future, actual Foreign Currencies The financial currencies as their functional currencies. Swiss Franc, or other local Euro, Chinese Renminbi, to whose functional currency is other than the U.S. Dollar are translated statements of the Company's subsidiaries sales, of exchange for assets and liabilities and monthly average rates for net U.S. Dollars using period-end rates translation gains and losses are included as a component of shareholders' income and expenses. Cumulative in loss. Gains and losses arising from transactions denominated equity in accumulated other comprehensive functional currency are reported in other income (expense), net in the currencies other than a subsidiary's consolidated statements of operations. Revenue Recognition occurred and title and risk of loss have transferred to the these criteria are met at the time delivery has functionality, customer. pricing for cooperative marketing arrangements, customer incentive and product returns and expected payments is recorded as a reduction of sales or as an operating expense if The estimated cost of these programs programs. and can reasonably estimate the fair the Company receives a separately identifiable benefit from the customer are used to determine the cost of these value of that benefit. Significant management judgments and estimates management to estimate the percentage of programs in any accounting period. Certain customer programs require based on historical experience and on those programs which will not be claimed or will not be earned by customers The percentage of these customer programs that will not the specific terms and conditions of particular programs. be claimed or earned is commonly referred to as "breakage". percentage of their purchases of the indirect partners, allowing customers to receive a credit equal to a set The objective of these incentive programs. Company's products, or a fixed dollar credit for various marketing and sales of the Company's products. arrangements is to encourage advertising and promotional events to increase the date the revenue is recognized or the Accruals for these marketing arrangements are recorded at the later of based on negotiated terms, historical experience and inventory levels in the channel. date the incentive is offered, 65 LOGITECH INTERNATIONAL S.A. INTERNATIONAL LOGITECH NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL CONSOLIDATED NOTES TO Logitech International S.A, together with its consolidated subsidiaries (Logitech or the Company), is a world or the Company), (Logitech subsidiaries together with its consolidated International S.A, Logitech including direct domestic and international customers, its products to a broad network of The Company sells parent holding International S.A. has been the in Switzerland in 1981 and Logitech Logitech was founded intercompany All include the accounts of Logitech and its subsidiaries. The consolidated financial statements the in the Notes to the consolidated financial statements relates to Unless indicated otherwise, the information thirteen-week periods, each The Company's fiscal year ends on March 31. Interim quarters are generally financial statements have Certain amounts from the comparative periods in the accompanying consolidated During the fourth quarter of fiscal year 2016, the Company completed the disposition of the Lifesize video 2016, the Company completed the disposition of the Lifesize video During the fourth quarter of fiscal year During fiscal year 2018, the Company acquired ASTRO Gaming business and another small technology ASTRO Gaming business acquired During fiscal year 2018, the Company Note 1—The Company Note 1—The cloud to digital and help connect people products that and marketing designing, manufacturing leader in around the personal PC products to improve experiences than 35 years ago, Logitech created experiences. More better experiences company designing products that enable it is a multi-brand, multi-category platform, and today whether it is on a as music, gaming, video and computing, and creating any digital content such consuming, sharing cloud. mobile device or in the computer, distributors. e-tailers, and indirect sales through sales to retailers, in with its registered office S.A. is a Swiss holding company since 1988. Logitech International company of Logitech through subsidiaries which conducts its business and headquarters in Lausanne, Switzerland, Apples, Switzerland the SIX Swiss International S.A. are listed on both Asia Pacific. Shares of Logitech and Americas, EMEA in the LOGI. LOGN and the Nasdaq Global Select Market under the trading symbol Exchange under the trading symbol Acquisitions Business acquired Jaybird LLC and Saitek product line. See "Note 3 - During fiscal year 2017, the Company company. Acquisitions" for more information. Business Accounting Policies Note 2—Summary Significant of Basis of Presentation are presented in The consolidated financial statements eliminated. balances and transactions have been accordance with U.S. GAAP. the historical results of Lifesize video conferencing As a result, the Company has classified conferencing business. in its consolidated statements of operations. See "Note 4 - Discontinued business as discontinued operations Operations" for more information. is does not include results of Lifesize video conferencing business, which Company's continuing operations and classified as discontinued operations. Year Fiscal For purposes of presentation, the Company has indicated its quarterly periods ending on a Friday of each quarter. end on the last day of the calendar quarter. Reclassification as of and for the year ended been reclassified to conform to the consolidated financial statement presentation March 31, 2018. , 2017 and 2016, sales 12% and 11% of total accounts receivable, , 12% and 11% 2017 and 2016, sales to one customer group , 2017 and 2016, sales to one customer 68 Advertising costs are recorded as either a marketing and selling expense or a deduction from revenue. from revenue. expense or a deduction and selling as either a marketing costs are recorded Advertising of three months or with an original maturity all highly liquid instruments purchased The Company classifies and are classified as maturity of three months or less bank time deposits have an original All of the Company's of subject the Company to concentrations of credit risk consist principally Financial instruments that potentially and retailers and, as a result, maintains individually significant The Company sells to large distributors credit evaluation of its customers' The Company manages its accounts receivable credit risk through ongoing resulting from the Company's Allowances for doubtful accounts are maintained for estimated losses Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Costs Advertising identifiable must have an or indirect customers Company to direct by the costs paid or reimbursed Advertising are not met, If these criteria an operating expense. be classified as value in order to an estimable fair benefit and expense marketing and selling costs recorded as Advertising a reduction of revenue. is classified as the payment deductions during fiscal those characterized as revenue advertising costs including Total are expensed as incurred. out of which $36.7 million and $181.7 million, respectively, and 2016 were $233.7 million, $208.7 years 2018, 2017 expense in the consolidated were included as operating and $23.6 million, respectively, million, $32.2 million statements of operations. Cash Equivalents which approximates their equivalents are carried at cost, purchase to be cash equivalents. Cash less at the date of fair value. at cost, which approximates their fair value. cash equivalents and are recorded Concentration of Credit Risk cash and cash equivalents with The Company maintains receivable. cash and cash equivalents and accounts in the exposure with any one financial institution, but is exposed to credit risk various financial institutions to limit are in to the extent that cash balances with individual financial institutions event of default by financial institutions excess of amounts that are insured. In fiscal years 2018 receivable balances with such customers. In fiscal years 2018 of the Company's sales. represented 15%, 15% and 14%, respectively, Company's sales. No other sales to of the 13%, 12% and 10%, respectively, to another customer group represented As of than 10% of the Company's sales during fiscal years 2018, 2017 or 2016. a single customer represented more each represented 15% March 31, 2018, three customer groups represented 18% and 12% of total accounts As of March 31, 2017, two customer groups each respectively. sales generally within 30 to payment terms require customers to pay for product Typical receivable, respectively. and by selling season. Extended payment terms terms may vary by customer type, by country 60 days; however, The Company customers during the second and third fiscal quarters. to a limited number of are sometimes offered existing receivables. does not modify payment terms on The Company generally does not require collateral from its customers. financial conditions. Accounts Allowances for Doubtful The allowances are based on the Company's regular assessment customers' inability to make required payments. well as its historical experience with bad of the credit-worthiness and financial condition of specific customers, as geographic or country-specific risks debts and customer deductions, receivables aging, current economic trends, and the financial condition of its distribution channels.

67 68 Customer incentive programs include consumer rebate and performance-based incentives. The Company incentives. rebate and performance-based include consumer incentive programs Customer price protection credits that contain terms allowing agreements with certain of its customers The Company has The Company grants limited rights to return products. Return rights vary by customer and range from the right to return products. Return rights vary by customer and range from the The Company grants limited rights predictable to allow the Company to estimate expected but are sufficiently Return rates can fluctuate over time to reduce its accruals of customer incentive, cooperative marketing, The Company applies a breakage rate marketing arrangements, The Company regularly evaluates the adequacy of its estimates for cooperative sold in the consolidated statements The Company's shipping and handling costs are included in cost of goods consist primarily of personnel, product Costs related to research, design and development of products, which Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of performance based on pre-determined and indirect partners to its customers incentives performance-based offers price at the time of of the sale as a reduction incentives are recognized Accruals for performance-based criteria. historical consideration of negotiated terms, based on accruals are determined of required sale. Estimates rebates are channel. Consumer levels in the and inventory of future purchases, anticipated volume experience, for the Accruals of end-users. for the primary benefit discretion to time at the Company's from time offered date the revenue is are recorded at the later of the consumer rebates and similar incentives estimated costs of on the specific terms and conditions. based the incentive is offered, recognized or when Company also offers At management's discretion, the event of a subsequent price reduction. to be issued in the time only for limited pricing discounts are usually offered to certain customers. Special special pricing discounts to make price partners. Management's decision of selected products to specific indirect periods or for sales competitive environment, acceptance of products, the by product life cycle stage, market reductions is influenced pricing actions are recognized Accruals for estimated expected future and other factors. new product introductions at the time of sale based on analyses of historical pricing actions by customer and by product, inventories owned by actions by customer and by product, based on analyses of historical pricing at the time of sale and other relevant demand, current operating conditions, and retailers, current customer and located at distributors as stage of product life-cycle. customer and product information, such rotation rights limited to a percentage of sales approved by management. to return defective products to the stock returns are recognized at the time of sale based on analyses of historical Estimates of expected future product inventories owned by and located at customers, current customer return trends by customer and by product, the and other relevant customer and product information. Upon recognition, demand, current operating conditions, goods sold for the estimated return. Return trends are influenced by product Company reduces sales and cost of the market acceptance of products, sales levels, product sell-through, life cycle status, new product introductions, pressures, operational policies and procedures, product quality issues, competitive seasonality, type of customer, and other factors. future product returns. or estimated percentage of these customer programs that will not be claimed and pricing programs based on the the Company is able to reasonably estimate the amounts that will be The breakage rate is applied when earned. the management judgments and estimates are used to determine ultimately claimed by customers. Significant recognized an increase in net sales of The Company $14.4 period. breakage of the programs in any accounting fiscal year 2017, primarily as a result of change in the estimate of breakage. million during the fourth quarter of the any and estimates are used to determine the breakage of the programs in Significant management judgments accounting period. Future market conditions and product customer incentive programs and pricing programs, and product returns. When the variables used to estimate transitions may require the Company to take action to change such programs. significantly from the estimates, the Company would be required to these costs change, or if actual costs differ or operating expenses. If, at any future time, record incremental increases or reductions to sales, cost of goods sold of revenue might be deferred until the Company becomes unable to reasonably estimate these costs, recognition of transition. products are sold to users, which would adversely impact sales in the period Handling Costs and Shipping of operations for all periods presented. Research Development and Costs expense as they are incurred. design and infrastructure expenses, are charged to research and development

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 , 2017 and 2016, sales 12% and 11% of total accounts receivable, , 12% and 11% 2017 and 2016, sales to one customer group , 2017 and 2016, sales to one customer 69 68

The Company manages its accounts receivable credit risk through ongoing credit evaluation of its customers' The Company manages its accounts receivable credit risk through ongoing resulting from the Company's Allowances for doubtful accounts are maintained for estimated losses Advertising costs are recorded as either a marketing and selling expense or a deduction from revenue. from revenue. expense or a deduction and selling as either a marketing costs are recorded Advertising of three months or with an original maturity all highly liquid instruments purchased The Company classifies and are classified as maturity of three months or less bank time deposits have an original All of the Company's of subject the Company to concentrations of credit risk consist principally Financial instruments that potentially and retailers and, as a result, maintains individually significant The Company sells to large distributors represented 15%, 15% and 14%, respectively, of the Company's sales. In fiscal years 2018 of the Company's sales. represented 15%, 15% and 14%, respectively, Company's sales. No other sales to of the 13%, 12% and 10%, respectively, to another customer group represented As of than 10% of the Company's sales during fiscal years 2018, 2017 or 2016. a single customer represented more each represented 15% March 31, 2018, three customer groups represented 18% and 12% of total accounts As of March 31, 2017, two customer groups each respectively. sales generally within 30 to payment terms require customers to pay for product Typical receivable, respectively. and by selling season. Extended payment terms terms may vary by customer type, by country 60 days; however, The Company customers during the second and third fiscal quarters. to a limited number of are sometimes offered existing receivables. does not modify payment terms on The Company generally does not require collateral from its customers. financial conditions. Accounts Allowances for Doubtful The allowances are based on the Company's regular assessment customers' inability to make required payments. well as its historical experience with bad of the credit-worthiness and financial condition of specific customers, as geographic or country-specific risks debts and customer deductions, receivables aging, current economic trends, and the financial condition of its distribution channels. Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Costs Advertising identifiable must have an or indirect customers Company to direct by the costs paid or reimbursed Advertising are not met, If these criteria an operating expense. be classified as value in order to an estimable fair benefit and expense marketing and selling costs recorded as Advertising a reduction of revenue. is classified as the payment deductions during fiscal those characterized as revenue advertising costs including Total are expensed as incurred. out of which $36.7 million and $181.7 million, respectively, and 2016 were $233.7 million, $208.7 years 2018, 2017 expense in the consolidated were included as operating and $23.6 million, respectively, million, $32.2 million statements of operations. Cash Equivalents which approximates their equivalents are carried at cost, purchase to be cash equivalents. Cash less at the date of fair value. at cost, which approximates their fair value. cash equivalents and are recorded Concentration of Credit Risk cash and cash equivalents with The Company maintains receivable. cash and cash equivalents and accounts in the exposure with any one financial institution, but is exposed to credit risk various financial institutions to limit are in to the extent that cash balances with individual financial institutions event of default by financial institutions excess of amounts that are insured. In fiscal years 2018 receivable balances with such customers.

67 Customer incentive programs include consumer rebate and performance-based incentives. The Company incentives. rebate and performance-based include consumer incentive programs Customer price protection credits that contain terms allowing agreements with certain of its customers The Company has right to return products. Return rights vary by customer and range from the The Company grants limited rights predictable to allow the Company to estimate expected but are sufficiently Return rates can fluctuate over time to reduce its accruals of customer incentive, cooperative marketing, The Company applies a breakage rate marketing arrangements, The Company regularly evaluates the adequacy of its estimates for cooperative sold in the consolidated statements The Company's shipping and handling costs are included in cost of goods consist primarily of personnel, product Costs related to research, design and development of products, which Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of performance based on pre-determined and indirect partners to its customers incentives performance-based offers price at the time of of the sale as a reduction incentives are recognized Accruals for performance-based criteria. historical consideration of negotiated terms, based on accruals are determined of required sale. Estimates rebates are channel. Consumer levels in the and inventory of future purchases, anticipated volume experience, for the Accruals of end-users. for the primary benefit discretion to time at the Company's from time offered date the revenue is are recorded at the later of the consumer rebates and similar incentives estimated costs of on the specific terms and conditions. based the incentive is offered, recognized or when Company also offers At management's discretion, the event of a subsequent price reduction. to be issued in the time only for limited pricing discounts are usually offered to certain customers. Special special pricing discounts to make price partners. Management's decision of selected products to specific indirect periods or for sales competitive environment, acceptance of products, the by product life cycle stage, market reductions is influenced pricing actions are recognized Accruals for estimated expected future and other factors. new product introductions inventories owned by actions by customer and by product, based on analyses of historical pricing at the time of sale and other relevant demand, current operating conditions, and retailers, current customer and located at distributors as stage of product life-cycle. customer and product information, such rotation rights limited to a percentage of sales approved by management. to return defective products to the stock returns are recognized at the time of sale based on analyses of historical Estimates of expected future product inventories owned by and located at customers, current customer return trends by customer and by product, the and other relevant customer and product information. Upon recognition, demand, current operating conditions, goods sold for the estimated return. Return trends are influenced by product Company reduces sales and cost of the market acceptance of products, sales levels, product sell-through, life cycle status, new product introductions, pressures, operational policies and procedures, product quality issues, competitive seasonality, type of customer, and other factors. future product returns. or estimated percentage of these customer programs that will not be claimed and pricing programs based on the the Company is able to reasonably estimate the amounts that will be The breakage rate is applied when earned. the management judgments and estimates are used to determine ultimately claimed by customers. Significant recognized an increase in net sales of The Company $14.4 period. breakage of the programs in any accounting fiscal year 2017, primarily as a result of change in the estimate of breakage. million during the fourth quarter of the any and estimates are used to determine the breakage of the programs in Significant management judgments accounting period. Future market conditions and product customer incentive programs and pricing programs, and product returns. When the variables used to estimate transitions may require the Company to take action to change such programs. significantly from the estimates, the Company would be required to these costs change, or if actual costs differ or operating expenses. If, at any future time, record incremental increases or reductions to sales, cost of goods sold of revenue might be deferred until the Company becomes unable to reasonably estimate these costs, recognition of transition. products are sold to users, which would adversely impact sales in the period Handling Costs and Shipping of operations for all periods presented. Research Development and Costs expense as they are incurred. design and infrastructure expenses, are charged to research and development 70 The Company provides for income taxes using the asset and liability method, which requires that deferred tax taxes using the asset and liability method, which requires that deferred The Company provides for income tax positions requires that management makes estimates and The Company's assessment of uncertain Company's financial instruments, including cash equivalents, accounts The carrying value of certain of the plan are reported at fair value The Company's trading investments related to the deferred compensation Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable tangible and identifiable fair value of the net price over the of the purchase represents the excess Goodwill to determine option to first assess qualitative factors for impairment, an entity has the In reviewing goodwill with an original maturity of three The Company's investment securities portfolio consists of bank time deposits Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of of Goodwill Impairment analysis a goodwill impairment Company conducts The combination. in each business assets acquired intangible to sell or exit a if a decision is made exist or if indicators of impairment more frequently at December 31 or annually impairment has occurred. if an indicator of in determining are involved amount of judgments significant A business. in equity and economic conditions, negative developments include deterioration in general Such indicators may input costs that have a an entity operates, increases in changes in the markets in which credit markets, adverse cash flows over multiple periods, flows, or a trend of negative or declining on earnings and cash negative effect evaluate the from that used to transaction may differ that could be realized in an actual The fair value among others. impairment of goodwill. likely than not (greater to a determination that it is more of events or circumstances leads whether the existence If an entity elects to unit is less than its carrying amount. estimated fair value of a reporting than 50%) that the not, the entity is then an impairment is more likely than assessment and determines that perform a qualitative also may An entity otherwise no further analysis is required. the quantitative impairment test, required to perform test. and, instead, proceed directly to the quantitative impairment elect not to perform the qualitative assessment entity impairment review for a reporting unit should be the same whether an The ultimate outcome of the goodwill or proceeds directly to the quantitative impairment test. chooses to perform the qualitative assessment Income Taxes resulting for the expected future tax consequences of temporary differences assets and liabilities be recognized financial reporting purposes, and for operating losses and tax credit treatment of items for tax and from differing with the consequences, expected future events are taken into consideration, carryforwards. In estimating future tax Company records a valuation allowance to reduce deferred The rate changes. exception of potential tax law or tax believes are more likely than not to be realized. tax assets to amounts management tax positions and other matters. In the expected resolution of uncertain tax law, judgments about the application of than the Company's estimates, or the are resolved for amounts different the event that uncertain tax positions be without the assessment of additional income taxes, the Company will related statutes of limitations expire Such related assets and liabilities in the period in which such events occur. required to adjust the amounts of the on the Company's income tax provision and its results of operations. adjustments may have a material impact of Financial Instruments Fair Value short maturities. receivable and accounts payable approximates their fair value due to their related to a deferred compensation months or less and marketable securities (money market and mutual funds) plan. The marketable securities related to the deferred compensation plan are classified based on quoted market prices. compensation plan long-term liability. as non-current trading investments, as they are intended to fund the deferred funds in which their compensation Since participants in the deferred compensation plan may select the mutual which holds the marketable securities, the Company Trust deferrals are invested within the confines of the Rabbi there is no intent to actively buy and has designated these marketable securities as trading investments, although These securities in market prices. sell securities within the objective of generating profits on short-term differences and losses on trading investments are are recorded at fair value based on quoted market prices. Earnings, gains of operations. included in other income (expense), net in the consolidated statements 69 70 Inventories are stated at the lower of cost and net realizable value. Costs are computed under the standard under the Costs are computed net realizable value. lower of cost and are stated at the Inventories $7.2 million, a liability of $12.6 million and and 2017, the Company also recorded As of March 31, 2018 improvements are capitalized, and Additions and plant and equipment are stated at cost. Property, using the straight-line method. Plant and buildings are depreciated over Depreciation expense is recognized are or otherwise disposed of, the cost and accumulated depreciation When property and equipment is retired trademarks, and customer include goodwill, acquired technology, The Company's intangible assets principally and finite-lived intangible assets, The Company reviews long-lived assets, such as property and equipment, Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Inventories Company records The basis. the first-in, first-out determined on actual costs which approximates cost method, a value based on or net realizable anticipated demand or in excess of which are obsolete of inventories write-downs cost trends, plans, component development cycle stage, product and product life of marketability consideration demand and market the assumptions about future and demand forecasts which consider historical net sales and the Company be sold or utilized is considered excess, on hand which is not expected to conditions. Inventory write-down is determined by The time of such determination. in cost of goods sold at the recognizes the write-down price in the ordinary course value is the estimated selling over net realizable value. Net realizable the excess of cost At the time of loss disposal and transportation. predictable costs of completion, of business, less reasonably and subsequent for that inventory are established basis per unit and lower-cost basis recognition, new cost in an increase in the cost basis. circumstances would not result changes in facts and commitments in excess of and unhedged inventory purchase arising from firm, non-cancelable, respectively, Such inventory. with its valuation of excess and obsolete or net realizable value consistent anticipated demand current liabilities on the consolidated balance sheets. liability is included in accrued and other Plant and Equipment Property, the cost of software developed for The Company capitalizes as incurred. maintenance and repairs are expensed projects. Costs incurred during the feasibility stage are expensed, whereas internal use in connection with major development stage are capitalized. direct costs incurred during the application years, equipment over useful lives from three to five years, internal-use estimated useful lives of twenty-five and to seven years, tooling over useful lives from six months to one year, software over useful lives from three of the useful life of the improvement or the term of the lease. leasehold improvements over the lesser net gain or loss is included in operating expenses. relieved from the accounts and the Assets Intangible trademarks, assets with finite lives, which include acquired technology, relationships and contracts. Intangible method and others are carried at cost and amortized using the straight-line customer relationships and contracts, only four to eight years. Intangible assets with indefinite lives, which include over their useful lives ranging from goodwill, are recorded at cost and evaluated at least annually for impairment. Assets Impairment of Long-Lived not be recoverable. Recoverability of for impairment whenever events indicate that the carrying amounts might by comparing the projected property and equipment, and other finite-lived intangible asset is measured values. If an asset is considered undiscounted net cash flows associated with those assets to their carrying on the asset's projected discounted cash impaired, it is written down to its fair value, which is determined based of recognition of impairment for flows or appraised value, depending on the nature of the asset. For purposes level for which cash flows are assets held for use, the Company groups assets and liabilities at the lowest separately identifiable.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 71 70 The Company provides for income taxes using the asset and liability method, which requires that deferred tax taxes using the asset and liability method, which requires that deferred The Company provides for income tax positions requires that management makes estimates and The Company's assessment of uncertain Company's financial instruments, including cash equivalents, accounts The carrying value of certain of the plan are reported at fair value The Company's trading investments related to the deferred compensation Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable tangible and identifiable fair value of the net price over the of the purchase represents the excess Goodwill to determine option to first assess qualitative factors for impairment, an entity has the In reviewing goodwill with an original maturity of three The Company's investment securities portfolio consists of bank time deposits Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of of Goodwill Impairment analysis a goodwill impairment Company conducts The combination. in each business assets acquired intangible to sell or exit a if a decision is made exist or if indicators of impairment more frequently at December 31 or annually impairment has occurred. if an indicator of in determining are involved amount of judgments significant A business. in equity and economic conditions, negative developments include deterioration in general Such indicators may input costs that have a an entity operates, increases in changes in the markets in which credit markets, adverse cash flows over multiple periods, flows, or a trend of negative or declining on earnings and cash negative effect evaluate the from that used to transaction may differ that could be realized in an actual The fair value among others. impairment of goodwill. likely than not (greater to a determination that it is more of events or circumstances leads whether the existence If an entity elects to unit is less than its carrying amount. estimated fair value of a reporting than 50%) that the not, the entity is then an impairment is more likely than assessment and determines that perform a qualitative also may An entity otherwise no further analysis is required. the quantitative impairment test, required to perform test. and, instead, proceed directly to the quantitative impairment elect not to perform the qualitative assessment entity impairment review for a reporting unit should be the same whether an The ultimate outcome of the goodwill or proceeds directly to the quantitative impairment test. chooses to perform the qualitative assessment Income Taxes resulting for the expected future tax consequences of temporary differences assets and liabilities be recognized financial reporting purposes, and for operating losses and tax credit treatment of items for tax and from differing with the consequences, expected future events are taken into consideration, carryforwards. In estimating future tax Company records a valuation allowance to reduce deferred The rate changes. exception of potential tax law or tax believes are more likely than not to be realized. tax assets to amounts management tax positions and other matters. In the expected resolution of uncertain tax law, judgments about the application of than the Company's estimates, or the are resolved for amounts different the event that uncertain tax positions be without the assessment of additional income taxes, the Company will related statutes of limitations expire Such related assets and liabilities in the period in which such events occur. required to adjust the amounts of the on the Company's income tax provision and its results of operations. adjustments may have a material impact of Financial Instruments Fair Value short maturities. receivable and accounts payable approximates their fair value due to their related to a deferred compensation months or less and marketable securities (money market and mutual funds) plan. The marketable securities related to the deferred compensation plan are classified based on quoted market prices. compensation plan long-term liability. as non-current trading investments, as they are intended to fund the deferred funds in which their compensation Since participants in the deferred compensation plan may select the mutual which holds the marketable securities, the Company Trust deferrals are invested within the confines of the Rabbi there is no intent to actively buy and has designated these marketable securities as trading investments, although These securities in market prices. sell securities within the objective of generating profits on short-term differences and losses on trading investments are are recorded at fair value based on quoted market prices. Earnings, gains of operations. included in other income (expense), net in the consolidated statements 69 Inventories are stated at the lower of cost and net realizable value. Costs are computed under the standard under the Costs are computed net realizable value. lower of cost and are stated at the Inventories $7.2 million, a liability of $12.6 million and and 2017, the Company also recorded As of March 31, 2018 improvements are capitalized, and Additions and plant and equipment are stated at cost. Property, using the straight-line method. Plant and buildings are depreciated over Depreciation expense is recognized are or otherwise disposed of, the cost and accumulated depreciation When property and equipment is retired trademarks, and customer include goodwill, acquired technology, The Company's intangible assets principally and finite-lived intangible assets, The Company reviews long-lived assets, such as property and equipment, Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Inventories Company records The basis. the first-in, first-out determined on actual costs which approximates cost method, a value based on or net realizable anticipated demand or in excess of which are obsolete of inventories write-downs cost trends, plans, component development cycle stage, product and product life of marketability consideration demand and market the assumptions about future and demand forecasts which consider historical net sales and the Company be sold or utilized is considered excess, on hand which is not expected to conditions. Inventory write-down is determined by The time of such determination. in cost of goods sold at the recognizes the write-down price in the ordinary course value is the estimated selling over net realizable value. Net realizable the excess of cost At the time of loss disposal and transportation. predictable costs of completion, of business, less reasonably and subsequent for that inventory are established basis per unit and lower-cost basis recognition, new cost in an increase in the cost basis. circumstances would not result changes in facts and commitments in excess of and unhedged inventory purchase arising from firm, non-cancelable, respectively, Such inventory. with its valuation of excess and obsolete or net realizable value consistent anticipated demand current liabilities on the consolidated balance sheets. liability is included in accrued and other Plant and Equipment Property, the cost of software developed for The Company capitalizes as incurred. maintenance and repairs are expensed projects. Costs incurred during the feasibility stage are expensed, whereas internal use in connection with major development stage are capitalized. direct costs incurred during the application years, equipment over useful lives from three to five years, internal-use estimated useful lives of twenty-five and to seven years, tooling over useful lives from six months to one year, software over useful lives from three of the useful life of the improvement or the term of the lease. leasehold improvements over the lesser net gain or loss is included in operating expenses. relieved from the accounts and the Assets Intangible trademarks, assets with finite lives, which include acquired technology, relationships and contracts. Intangible method and others are carried at cost and amortized using the straight-line customer relationships and contracts, only four to eight years. Intangible assets with indefinite lives, which include over their useful lives ranging from goodwill, are recorded at cost and evaluated at least annually for impairment. Assets Impairment of Long-Lived not be recoverable. Recoverability of for impairment whenever events indicate that the carrying amounts might by comparing the projected property and equipment, and other finite-lived intangible asset is measured values. If an asset is considered undiscounted net cash flows associated with those assets to their carrying on the asset's projected discounted cash impaired, it is written down to its fair value, which is determined based of recognition of impairment for flows or appraised value, depending on the nature of the asset. For purposes level for which cash flows are assets held for use, the Company groups assets and liabilities at the lowest separately identifiable. 72 The Company periodically repurchases shares in the market at fair value. Shares repurchased are recorded at repurchased are fair value. Shares in the market at repurchases shares periodically The Company of currency to reduce the short-term effects into foreign exchange forward contracts The Company enters Company's forward contracts portion of the effective for changes in the fair value of the Gains and losses consist of employee severance, one-time termination benefits and The Company's restructuring charges is components of an enterprise about which separate financial information Operating segments are defined as In July 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-11, "Simplifying the ASU 2015-11, issued Accounting Standards Board (FASB) In July 2015, the Financial Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Shares Treasury exercise of to satisfy the held may be reissued shares Treasury shareholders' equity. reduction of total cost as a with units, or may be canceled restricted stock and the vesting of purchase rights stock options and employee first-out basis. for using the first-in, are accounted that are reissued shares Treasury approval. shareholder Instruments Derivative Financial to changes in payables and to hedge against exposure foreign currency receivables or fluctuations on certain contracts These forward inventory purchases. rates related to its subsidiaries' forecasted currency exchange four months. generally mature within other comprehensive as a component of accumulated inventory purchases are deferred related to forecasted are reclassified to sold, at which time the gains or losses the hedged inventory purchases are income (loss) until losses translation offset fair value of forward contracts that Gains or losses from changes in the cost of goods sold. or payables are recognized immediately and included in other income or gains on foreign currency receivables of operations. (expense), net in the consolidated statements Restructuring Charges of its workforce, lease exit costs, and other costs. Liabilities for costs ongoing benefits related to the reduction incurred, are measured at fair value and are recognized when the liability is associated with a restructuring activity at to a restructuring plan. One-time termination benefits are expensed as opposed to when management commits the unless the employee must provide future service, in which case the date the entity notifies the employee, the future service period. Ongoing benefits are expensed when restructuring benefits are expensed ratably over its term amounts are estimable. Costs to terminate a lease before the end of activities are probable and the benefit vacated. Other costs primarily consist of legal, consulting, and other costs are recognized when the property is based on benefits are calculated Termination expensed when incurred. related to employee terminations are statutory requirements. regional benefit practices and local Segments group, in deciding or decision making by the chief operating decision maker, available that is evaluated regularly meet performance. Reportable segments are operating segments that how to allocate resources and in assessing the Lifesize video conferencing business on As a result of the divestiture of certain quantitative thresholds. segments changed, such that the December 28, 2015, the composition of the Company's previously reported operations. remaining peripheral segment is the only segment reported in continuing Adopted Accounting Pronouncements Recent previously required an entity to measure 330 Topic 330)" (ASU 2015-11). Measurement of Inventory (Topic by replacement cost, net realizable value or inventory at the lower of cost or market, with market value represented requires an entity to measure inventory at the lower of ASU 2015-11 net realizable value less a normal profit margin. The Company for fiscal years beginning after December 15, 2016. cost and net realizable value and is effective April 1, 2017, which has not had a material impact on its consolidated financial adopted this standard effective statements. 71 72 Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average net income (loss) by the weighted (loss) per share is computed by dividing Basic net income includes compensation expense, reduced for estimated forfeitures, for Share-based compensation expense revenue is recognized based on The Company estimates cost of product warranties at the time the related equity during the period other Comprehensive income (loss) is defined as the total change in shareholders' The Company also holds non-marketable investments in equity and other securities that are accounted for as that are accounted and other securities in equity investments also holds non-marketable The Company awards is calculated based on the average of in-the-money share-based compensation The dilutive effect 2016-09 and accounts for Accounting Standards Update (ASU) April 1, 2017, the Company adopted Effective Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of reviews the fair value The Company as other assets. are classified investments, which or equity method either cost companies are in these whether the investments basis to determine on a regular investments of its non-marketable other information performance and investee financial considers The Company impaired. other-than-temporarily the investee of the fair value of estimates as any other available companies, as well from the investee received fair value, exceeds its value of an investment that the carrying determines If the Company in its review. companies investment to its fair value. writes down the value of the the Company than temporary, is other and that difference or changes in if there are no identified adverse events of cost investments is not adjusted The carrying value on the fair value of the investments. may have a material effect circumstances that per Share Net Income (Loss) average outstanding is computed using the weighted Diluted net income (loss) per share outstanding shares. awards, including stock equivalents consist of share-based share equivalents. Dilutive share shares and dilutive (RSUs). plan, and restricted stock units rights under employee share purchase options, purchase the treasury stock method. share price for each fiscal period using Share-Based Compensation Expense fair value for stock options and The grant date on the grant date fair value. share-based awards granted based grant date The the Black-Scholes-Merton option-pricing valuation model. stock purchase rights is estimated using simulation meeting certain market conditions is estimated using the Monte-Carlo fair value of RSUs which vest upon and performance-based RSUs is calculated based on the market The grant date fair value of time-based method. service by estimated dividends yield prior to vesting. With respect to awards with price on the date of grant, reduced over the vesting period of the awards. For compensation expense is recognized ratably conditions only, over recognizes the estimated expense using a graded-vesting method performance-based RSUs, the Company The years when the performance condition is determined to be probable. requisite service periods of one to three period of the market-based grants of the Company granted are both performance period and the service expense is recognized ratably over the service period. approximately three years and the estimated for details of the impact Adopted" below Accounting Pronouncements Refer to "Recent forfeitures as they occur. from the change in accounting. Accrual Product Warranty product failures that are outside of the historical warranty claim rates, historical costs, and knowledge of specific The Company accrues a warranty liability for estimated costs to provide products, Company's typical experience. the Company obligation. Each quarter, parts or services to repair or replace products in satisfaction of the warranty considering the size of the installed reevaluates estimates to assess the adequacy of recorded warranty liabilities When the Company as necessary. base of products subject to warranty protection and adjusts the amounts fulfilling those claims, the warranty liability is experiences changes in warranty claim activity or costs associated with from estimates, revisions to the estimated If actual product failure rates or repair costs differ adjusted accordingly. the Company's results of operations. warranty liabilities would be required and could materially affect Comprehensive Income (Loss) consists of net income (loss) and other than from transactions with shareholders. Comprehensive income (loss) of currency translation adjustments comprehensive income (loss). Other comprehensive income (loss) is comprised marketable unrealized gains and losses on from those entities not using the U.S. Dollar as their functional currency, and credits for defined benefit pension equity securities, net deferred gains and losses and prior service costs plans, and net deferred gains and losses on hedging activity.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 73 72 The Company periodically repurchases shares in the market at fair value. Shares repurchased are recorded at repurchased are fair value. Shares in the market at repurchases shares periodically The Company of currency to reduce the short-term effects into foreign exchange forward contracts The Company enters Company's forward contracts portion of the effective for changes in the fair value of the Gains and losses consist of employee severance, one-time termination benefits and The Company's restructuring charges is components of an enterprise about which separate financial information Operating segments are defined as In July 2015, the Financial Accounting Standards Board (FASB) issued ASU 2015-11, "Simplifying the ASU 2015-11, issued Accounting Standards Board (FASB) In July 2015, the Financial Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of Shares Treasury exercise of to satisfy the held may be reissued shares Treasury shareholders' equity. reduction of total cost as a with units, or may be canceled restricted stock and the vesting of purchase rights stock options and employee first-out basis. for using the first-in, are accounted that are reissued shares Treasury approval. shareholder Instruments Derivative Financial to changes in payables and to hedge against exposure foreign currency receivables or fluctuations on certain contracts These forward inventory purchases. rates related to its subsidiaries' forecasted currency exchange four months. generally mature within other comprehensive as a component of accumulated inventory purchases are deferred related to forecasted are reclassified to sold, at which time the gains or losses the hedged inventory purchases are income (loss) until losses translation offset fair value of forward contracts that Gains or losses from changes in the cost of goods sold. or payables are recognized immediately and included in other income or gains on foreign currency receivables of operations. (expense), net in the consolidated statements Restructuring Charges of its workforce, lease exit costs, and other costs. Liabilities for costs ongoing benefits related to the reduction incurred, are measured at fair value and are recognized when the liability is associated with a restructuring activity at to a restructuring plan. One-time termination benefits are expensed as opposed to when management commits the unless the employee must provide future service, in which case the date the entity notifies the employee, the future service period. Ongoing benefits are expensed when restructuring benefits are expensed ratably over its term amounts are estimable. Costs to terminate a lease before the end of activities are probable and the benefit vacated. Other costs primarily consist of legal, consulting, and other costs are recognized when the property is based on benefits are calculated Termination expensed when incurred. related to employee terminations are statutory requirements. regional benefit practices and local Segments group, in deciding or decision making by the chief operating decision maker, available that is evaluated regularly meet performance. Reportable segments are operating segments that how to allocate resources and in assessing the Lifesize video conferencing business on As a result of the divestiture of certain quantitative thresholds. segments changed, such that the December 28, 2015, the composition of the Company's previously reported operations. remaining peripheral segment is the only segment reported in continuing Adopted Accounting Pronouncements Recent previously required an entity to measure 330 Topic 330)" (ASU 2015-11). Measurement of Inventory (Topic by replacement cost, net realizable value or inventory at the lower of cost or market, with market value represented requires an entity to measure inventory at the lower of ASU 2015-11 net realizable value less a normal profit margin. The Company for fiscal years beginning after December 15, 2016. cost and net realizable value and is effective April 1, 2017, which has not had a material impact on its consolidated financial adopted this standard effective statements. 71 Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average net income (loss) by the weighted (loss) per share is computed by dividing Basic net income includes compensation expense, reduced for estimated forfeitures, for Share-based compensation expense revenue is recognized based on The Company estimates cost of product warranties at the time the related equity during the period other Comprehensive income (loss) is defined as the total change in shareholders' The Company also holds non-marketable investments in equity and other securities that are accounted for as that are accounted and other securities in equity investments also holds non-marketable The Company awards is calculated based on the average of in-the-money share-based compensation The dilutive effect 2016-09 and accounts for Accounting Standards Update (ASU) April 1, 2017, the Company adopted Effective Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of reviews the fair value The Company as other assets. are classified investments, which or equity method either cost companies are in these whether the investments basis to determine on a regular investments of its non-marketable other information performance and investee financial considers The Company impaired. other-than-temporarily the investee of the fair value of estimates as any other available companies, as well from the investee received fair value, exceeds its value of an investment that the carrying determines If the Company in its review. companies investment to its fair value. writes down the value of the the Company than temporary, is other and that difference or changes in if there are no identified adverse events of cost investments is not adjusted The carrying value on the fair value of the investments. may have a material effect circumstances that per Share Net Income (Loss) average outstanding is computed using the weighted Diluted net income (loss) per share outstanding shares. awards, including stock equivalents consist of share-based share equivalents. Dilutive share shares and dilutive (RSUs). plan, and restricted stock units rights under employee share purchase options, purchase the treasury stock method. share price for each fiscal period using Share-Based Compensation Expense fair value for stock options and The grant date on the grant date fair value. share-based awards granted based grant date The the Black-Scholes-Merton option-pricing valuation model. stock purchase rights is estimated using simulation meeting certain market conditions is estimated using the Monte-Carlo fair value of RSUs which vest upon and performance-based RSUs is calculated based on the market The grant date fair value of time-based method. service by estimated dividends yield prior to vesting. With respect to awards with price on the date of grant, reduced over the vesting period of the awards. For compensation expense is recognized ratably conditions only, over recognizes the estimated expense using a graded-vesting method performance-based RSUs, the Company The years when the performance condition is determined to be probable. requisite service periods of one to three period of the market-based grants of the Company granted are both performance period and the service expense is recognized ratably over the service period. approximately three years and the estimated for details of the impact Adopted" below Accounting Pronouncements Refer to "Recent forfeitures as they occur. from the change in accounting. Accrual Product Warranty product failures that are outside of the historical warranty claim rates, historical costs, and knowledge of specific The Company accrues a warranty liability for estimated costs to provide products, Company's typical experience. the Company obligation. Each quarter, parts or services to repair or replace products in satisfaction of the warranty considering the size of the installed reevaluates estimates to assess the adequacy of recorded warranty liabilities When the Company as necessary. base of products subject to warranty protection and adjusts the amounts fulfilling those claims, the warranty liability is experiences changes in warranty claim activity or costs associated with from estimates, revisions to the estimated If actual product failure rates or repair costs differ adjusted accordingly. the Company's results of operations. warranty liabilities would be required and could materially affect Comprehensive Income (Loss) consists of net income (loss) and other than from transactions with shareholders. Comprehensive income (loss) of currency translation adjustments comprehensive income (loss). Other comprehensive income (loss) is comprised marketable unrealized gains and losses on from those entities not using the U.S. Dollar as their functional currency, and credits for defined benefit pension equity securities, net deferred gains and losses and prior service costs plans, and net deferred gains and losses on hedging activity. 74 Under ASC 605, accruals for certain cooperative marketing arrangements, customer incentive programs and incentive arrangements, customer marketing for certain cooperative ASC 605, accruals Under arrangement, subject to the be estimated at the outset of the 606, variable consideration must Topic Under interpretations of modifications, clarifications or continue to monitor additional changes, The Company will Recognition and Measurement of ASU 2016-01 “Financial Instruments- issued In January 2016, the FASB requires the 842)" (ASU 2016-02), which ASU 2016-02 "Leases (Topic issued In February 2016, the FASB Assets of Transfers 740): Intra-Entity (Topic Taxes ASU 2016-16 "Income issued In October 2016, the FASB 230): Restricted ASU 2016-18 "Statement of Cash Flows (Topic issued In December 2016, the FASB 805): Clarifying the Definition ASU 2017-01, "Business Combination (Topic issued In January 2017, the FASB Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of is recognized or the related revenue the later of when of revenue at as a reduction are recognized pricing programs as variable considerations programs qualify 606, these Topic Under to the customer. program is offered when the value based on the expected contract inception price at the of the transaction as a reduction and are recorded future of yet to be committed record an estimate the Company to will require Certain of these programs method. adoption. recognized upon to revenue already with respect sales incentives Topic a result, upon adoption of As reversal will not occur. to ensure that a significant revenue constraint guidance to the existing revenue guidance. be recognized sooner as compared 606, breakage will 2019, the the first quarter of fiscal year expectations. It is possible that during 606, which may impact current Topic statements other than changes to its consolidated financial items that result in additional Company could identify above. what is described (ASU 2016-01), which amends certain aspects of Assets and Financial Liabilities (Subtopic 825-10)” Financial to and disclosure of financial instruments, including the requirement recognition, measurement, presentation This guidance at fair value with changes in fair value recognized in net income. measure certain equity investments 15, 2017, including interim periods within those fiscal years. for fiscal years beginning after December is effective will have a material impact on its consolidated ASU 2016-01 adoption of The Company does not expect the April 1, 2018. this guidance effective financial statements and has adopted liabilities arising from operating leases in the statement of financial position. recognition of lease assets and lease December 15, 2018, including interim periods within those for fiscal years beginning after This guidance is effective have a material impact on its consolidated ASU 2016-02 will of The Company expects the adoption fiscal years. April 1, of evaluating the full impact, and will adopt the standard effective balance sheets, but is still in the process 2019. of intra-entity asset eliminates the deferral of income tax effects Than Inventory" (ASU 2016-16), which Other ASU 2016-16, however, is sold to an unrelated party or recovered through use. transfers until the transferred asset for annual periods beginning guidance is effective The of inventory. does not apply to intra-entity transfer but reporting periods within those annual periods. Early adoption is permitted after December 15, 2017 and interim on equity upon adoption is to be of change The cumulative effect year. only in the first interim period of a fiscal approach and recorded as of the beginning of the period of quantified under the modified retrospective ASU 2016-16 will have a material impact on its does not expect the adoption of The Company adoption. April 1, 2018. consolidated financial statements and has adopted this guidance effective the change during the period in the Cash" (ASU 2016-18), which requires that a statement of cash flows explains cash or restricted cash equivalents. total of cash, cash equivalents, and amounts generally described as restricted for annual periods beginning after December 15, 2017 and interim reporting periods within The standard is effective The adoption of this standard should be applied using a those annual periods, with early adoption permitted. ASU The Company does not expect the adoption of retrospective transition method to each period presented. and has adopted this standard 2016-18 will have a material impact on its consolidated financial statements April 1, 2018. effective to assist with evaluating when a set of of a Business" (ASU 2017-01), which changes the definition of a business for annual or any interim periods in annual ASU 2017-01 is effective transferred assets and activities is a business. The Company does not expect that the periods beginning after December 15, 2017, with early adoption permitted. 2017-01 will have a material impact on its consolidated financial statements and has adopted this ASU adoption of April 1, 2018. standard effective 73 74 In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718)": (Topic Compensation 2016-09, "Compensation-Stock ASU issued 2016, the FASB In March for Goodwill Impairment (Topic Test ASU 2017-04, "Simplifying the issued In January 2017, the FASB of 718): Scope Compensation (Topic ASU 2017-09, "Compensation-Stock issued In May 2017, the FASB (ASU 606)" Contracts with Customers (Topic ASU No. 2014-09, "Revenue from issued In May 2014, the FASB Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of simplifies several ASU 2016-09 2016-09). Accounting" (ASU Share-Based Payment to Employee Improvements tax benefits and of all excess immediate recognition including for share-based payments, the accounting aspects of to the employees' classification up qualify for equity the threshold to statement, changing in the income deficiencies the number of to either estimate policy election accounting allowing an entity-wide statutory tax rates, maximum on the the classification and clarifying they occur, for forfeitures as vest or account are expected to awards that withholds shares employee taxes paid when an employer flows for the excess tax benefits and statement of cash The 2016. years beginning after December 15, for fiscal is effective ASU 2016-09 purposes. for tax withholding flows related to the Changes to the statements of cash April 1, 2017. this standard effective Company adopted to conform to the on a retroactive basis and accordingly, tax benefits were implemented classification of excess tax benefits previously million and $2.1 million of excess the Company reclassified $9.7 current year presentation, and 2016, respectively, for the year ended March 31, 2017 activities to operating activities reported under financing for forfeitures as they new standard, the Company accounts statements of cash flows. Under the on its consolidated adjustment to decrease retained resulted in a cumulative-effect The change in accounting for forfeitures occur. adjustment to Company further recognized a cumulative-effect The 31, 2017 by $3.3 million. earnings as of March guidance to account for million upon adoption of the new earnings as of March 31, 2017 by $57.2 increase retained that were previously not recognized because the related tax deduction gross excess tax benefits of $75.2 million allowance of $18.0 million to reduce the deferred tax by a valuation offset had not reduced current income taxes, than not to be realized. assets to amounts that are more likely for annual ASU 2017-04 is effective Step 2 from the goodwill impairment test. 350)" (ASU 2017-04), which removes in annual periods beginning December 15, 2019, with early adoption permitted. or any interim goodwill impairments not had a material impact on its consolidated April 1, 2017, which has effective The Company adopted this standard financial statements. about which changes to the terms or conditions Accounting" (ASU 2017-09), which provides guidance Modification ASU 2017-09 is 718. Topic an entity to apply modification accounting in of a share-based payment award require in 15, 2017, with early adoption permitted, including adoption for annual periods beginning after December effective Company adopted this standard The statements have not yet been issued. any interim period for which financial on its consolidated financial statements. April 1, 2017, which has not had a material impact effective Adopted Be To Accounting Pronouncements Recent 606 Topic ASC 605, Revenue Recognition. recognition requirements under 2014-09) which supersedes the revenue in accounting for revenue arising from contracts with single comprehensive model for entities to use outlines a new, including industry-specific guidance. Under customers and supersedes most current revenue recognition guidance, control of promised goods or services in an the new model, recognition of revenue occurs when a customer obtains entitled in exchange for those goods or amount that reflects the consideration to which the entity expects to be The new standard requires reporting companies to disclose the nature, amount, timing, and uncertainty of services. for the The new standard will become effective revenue and cash flows arising from contracts with customers. utilizing the modified 606 Topic The Company will adopt (the adoption date). April 1, 2018 Company on 606 as an Topic of initially applying retrospective transition method, which recognizes the cumulative effect The Company has identified major revenue streams, adjustment to retained earnings at the adoption date. 606, and drafted its accounting policies, and is Topic performed an analysis of its contracts to evaluate the impact of will have on its accruals for customer substantially complete with its evaluation of the impact this new standard The Company does not expect the adoption to have a material impact to the nature and timing of its programs. The Company has determined that revenues, results of operations or retained earnings at the date of adoption. and pricing programs and customer certain allowance balances for customer incentive, cooperative marketing to be presented within current liabilities return rights currently presented net within accounts receivable may

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 75 74 Under ASC 605, accruals for certain cooperative marketing arrangements, customer incentive programs and incentive arrangements, customer marketing for certain cooperative ASC 605, accruals Under arrangement, subject to the be estimated at the outset of the 606, variable consideration must Topic Under interpretations of modifications, clarifications or continue to monitor additional changes, The Company will Recognition and Measurement of ASU 2016-01 “Financial Instruments- issued In January 2016, the FASB requires the 842)" (ASU 2016-02), which ASU 2016-02 "Leases (Topic issued In February 2016, the FASB Assets of Transfers 740): Intra-Entity (Topic Taxes ASU 2016-16 "Income issued In October 2016, the FASB 230): Restricted ASU 2016-18 "Statement of Cash Flows (Topic issued In December 2016, the FASB 805): Clarifying the Definition ASU 2017-01, "Business Combination (Topic issued In January 2017, the FASB Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of is recognized or the related revenue the later of when of revenue at as a reduction are recognized pricing programs as variable considerations programs qualify 606, these Topic Under to the customer. program is offered when the value based on the expected contract inception price at the of the transaction as a reduction and are recorded future of yet to be committed record an estimate the Company to will require Certain of these programs method. adoption. recognized upon to revenue already with respect sales incentives Topic a result, upon adoption of As reversal will not occur. to ensure that a significant revenue constraint guidance to the existing revenue guidance. be recognized sooner as compared 606, breakage will 2019, the the first quarter of fiscal year expectations. It is possible that during 606, which may impact current Topic statements other than changes to its consolidated financial items that result in additional Company could identify above. what is described (ASU 2016-01), which amends certain aspects of Assets and Financial Liabilities (Subtopic 825-10)” Financial to and disclosure of financial instruments, including the requirement recognition, measurement, presentation This guidance at fair value with changes in fair value recognized in net income. measure certain equity investments 15, 2017, including interim periods within those fiscal years. for fiscal years beginning after December is effective will have a material impact on its consolidated ASU 2016-01 adoption of The Company does not expect the April 1, 2018. this guidance effective financial statements and has adopted liabilities arising from operating leases in the statement of financial position. recognition of lease assets and lease December 15, 2018, including interim periods within those for fiscal years beginning after This guidance is effective have a material impact on its consolidated ASU 2016-02 will of The Company expects the adoption fiscal years. April 1, of evaluating the full impact, and will adopt the standard effective balance sheets, but is still in the process 2019. of intra-entity asset eliminates the deferral of income tax effects Than Inventory" (ASU 2016-16), which Other ASU 2016-16, however, is sold to an unrelated party or recovered through use. transfers until the transferred asset for annual periods beginning guidance is effective The of inventory. does not apply to intra-entity transfer but reporting periods within those annual periods. Early adoption is permitted after December 15, 2017 and interim on equity upon adoption is to be of change The cumulative effect year. only in the first interim period of a fiscal approach and recorded as of the beginning of the period of quantified under the modified retrospective ASU 2016-16 will have a material impact on its does not expect the adoption of The Company adoption. April 1, 2018. consolidated financial statements and has adopted this guidance effective the change during the period in the Cash" (ASU 2016-18), which requires that a statement of cash flows explains cash or restricted cash equivalents. total of cash, cash equivalents, and amounts generally described as restricted for annual periods beginning after December 15, 2017 and interim reporting periods within The standard is effective The adoption of this standard should be applied using a those annual periods, with early adoption permitted. ASU The Company does not expect the adoption of retrospective transition method to each period presented. and has adopted this standard 2016-18 will have a material impact on its consolidated financial statements April 1, 2018. effective to assist with evaluating when a set of of a Business" (ASU 2017-01), which changes the definition of a business for annual or any interim periods in annual ASU 2017-01 is effective transferred assets and activities is a business. The Company does not expect that the periods beginning after December 15, 2017, with early adoption permitted. 2017-01 will have a material impact on its consolidated financial statements and has adopted this ASU adoption of April 1, 2018. standard effective 73 In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation (Topic 718)": (Topic Compensation 2016-09, "Compensation-Stock ASU issued 2016, the FASB In March for Goodwill Impairment (Topic Test ASU 2017-04, "Simplifying the issued In January 2017, the FASB of 718): Scope Compensation (Topic ASU 2017-09, "Compensation-Stock issued In May 2017, the FASB (ASU 606)" Contracts with Customers (Topic ASU No. 2014-09, "Revenue from issued In May 2014, the FASB Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of simplifies several ASU 2016-09 2016-09). Accounting" (ASU Share-Based Payment to Employee Improvements tax benefits and of all excess immediate recognition including for share-based payments, the accounting aspects of to the employees' classification up qualify for equity the threshold to statement, changing in the income deficiencies the number of to either estimate policy election accounting allowing an entity-wide statutory tax rates, maximum on the the classification and clarifying they occur, for forfeitures as vest or account are expected to awards that withholds shares employee taxes paid when an employer flows for the excess tax benefits and statement of cash The 2016. years beginning after December 15, for fiscal is effective ASU 2016-09 purposes. for tax withholding flows related to the Changes to the statements of cash April 1, 2017. this standard effective Company adopted to conform to the on a retroactive basis and accordingly, tax benefits were implemented classification of excess tax benefits previously million and $2.1 million of excess the Company reclassified $9.7 current year presentation, and 2016, respectively, for the year ended March 31, 2017 activities to operating activities reported under financing for forfeitures as they new standard, the Company accounts statements of cash flows. Under the on its consolidated adjustment to decrease retained resulted in a cumulative-effect The change in accounting for forfeitures occur. adjustment to Company further recognized a cumulative-effect The 31, 2017 by $3.3 million. earnings as of March guidance to account for million upon adoption of the new earnings as of March 31, 2017 by $57.2 increase retained that were previously not recognized because the related tax deduction gross excess tax benefits of $75.2 million allowance of $18.0 million to reduce the deferred tax by a valuation offset had not reduced current income taxes, than not to be realized. assets to amounts that are more likely for annual ASU 2017-04 is effective Step 2 from the goodwill impairment test. 350)" (ASU 2017-04), which removes in annual periods beginning December 15, 2019, with early adoption permitted. or any interim goodwill impairments not had a material impact on its consolidated April 1, 2017, which has effective The Company adopted this standard financial statements. about which changes to the terms or conditions Accounting" (ASU 2017-09), which provides guidance Modification ASU 2017-09 is 718. Topic an entity to apply modification accounting in of a share-based payment award require in 15, 2017, with early adoption permitted, including adoption for annual periods beginning after December effective Company adopted this standard The statements have not yet been issued. any interim period for which financial on its consolidated financial statements. April 1, 2017, which has not had a material impact effective Adopted Be To Accounting Pronouncements Recent 606 Topic ASC 605, Revenue Recognition. recognition requirements under 2014-09) which supersedes the revenue in accounting for revenue arising from contracts with single comprehensive model for entities to use outlines a new, including industry-specific guidance. Under customers and supersedes most current revenue recognition guidance, control of promised goods or services in an the new model, recognition of revenue occurs when a customer obtains entitled in exchange for those goods or amount that reflects the consideration to which the entity expects to be The new standard requires reporting companies to disclose the nature, amount, timing, and uncertainty of services. for the The new standard will become effective revenue and cash flows arising from contracts with customers. utilizing the modified 606 Topic The Company will adopt (the adoption date). April 1, 2018 Company on 606 as an Topic of initially applying retrospective transition method, which recognizes the cumulative effect The Company has identified major revenue streams, adjustment to retained earnings at the adoption date. 606, and drafted its accounting policies, and is Topic performed an analysis of its contracts to evaluate the impact of will have on its accruals for customer substantially complete with its evaluation of the impact this new standard The Company does not expect the adoption to have a material impact to the nature and timing of its programs. The Company has determined that revenues, results of operations or retained earnings at the date of adoption. and pricing programs and customer certain allowance balances for customer incentive, cooperative marketing to be presented within current liabilities return rights currently presented net within accounts receivable may 4.0 8.0 6.0 6.8 (years) Estimated Useful Life 6,880 12,540 33,100 52,520 Fair Value $ $ 76 amortized over their estimated useful Acquisition are being ASTRO of the Intangible assets acquired as a result useful life was The economic ASTRO gaming headset products. Developed technology relates to existing of fair value of future projected revenue that will be derived from sales Customer relationships represent the The economic useful life was determined based on the name. name relates to the “ASTRO” trade Trade using the relief-from-royalty method, an The fair value of developed technology and trade name was estimated earnings method, an income approach The fair value of customer relationships was estimated using the excess above represents the fair values of, The Company believes the value of purchased intangible assets recorded ASTRO contributed approximately 2 points to net sales growth. For the year ended March 31, 2018, The Company included ASTRO's estimated fair value of assets acquired and liabilities assumed in its and liabilities of assets acquired fair value ASTRO's estimated included The Company components of and estimated useful lives of the summarizes the estimated fair values The following table Total intangible assets acquired Total Developed technology Customer relationships name Trade lives using the straight-line method of amortization. Amortization of acquired developed technology of $2.0 million Amortization of acquired of amortization. lives using the straight-line method is included in "amortization of intangible assets and purchase accounting during the year ended March 31, 2018, of the acquired customer Amortization of operations. of inventory" in the consolidated statements effect of million during the year ended March 31, 2018, is included in "amortization relationships and trade name of $3.3 costs" in the consolidated statements of operations. intangible assets and acquisition-related the cash cycle related to developed technology of existing products, as well as determined based on the technology periods. flows anticipated over the forecasted useful life was determined based on historical customer The economic ASTRO. products to existing customers of turnover rates and industry benchmarks. the cash flows anticipated over the forecasted periods. expected life of the trade name and to the owner of the intangible assets that income approach (Level 3), which estimates the cost savings that accrue royalty A through the use of the asset. would otherwise be payable as royalties or license fees on revenues earned assets to determine the amount of savings, rate is applied to the projected revenues associated with the intangible The developed technology and trade name were valued using which is then discounted to determine the fair value. and both were discounted at a rate of 13%. royalty rates of 10% and 2%, respectively, reflect the fact that certain other assets To (Level 3), which converts projected revenues and costs into cash flows. assets were removed to arrive at contributed to the cash flows generated, the returns for these contributory which were discounted at a rate of 13%. estimated cash flows solely attributable to the customer relationships, ASTRO these intangible assets as of the and approximates the amounts a market participant would pay for, Acquisition Date. Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note the sales of the acquired operations upon statements of in the consolidated on inventory" effect accounting inventories. have ASTRO for The results of operations Acquisition Date. ASTRO sheets beginning on the consolidated balance ASTRO from the consolidated statements of operations but are not material to, the Company's been included in, Acquisition Date. (Dollars in thousands): Acquisition Date ASTRO assets acquired as of the identifiable intangible 605 2,760 (2,982) 63,234 21,766 66,216 52,520 Value Estimated Fair $ 85,000 $ 10,331 certain assets and liabilities 75 76 In March 2017, the FASB issued ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Pension Cost and of Net Periodic the Presentation 2017-07, "Improving ASU issued 2017, the FASB In March Improvements Targeted 815): and Hedging (Topic ASU 2017-12, "Derivatives issued August 2017, the FASB In Net identifiable assets acquired Total identifiable assets acquired Total Goodwill related to the transaction is primarily attributable to opportunities and economies of scale from Goodwill related to the transaction is primarily attributable to opportunities value, which uses the estimated The fair value of the inventories acquired is estimated at their net realizable On August 11, 2017 (the ASTRO Acquisition Date), the Company acquired ASTRO 2017 (the August 11, On ASTRO meets the definition of a business, and its acquisition is accounted for using the acquisition method. and its acquisition is accounted for using the acquisition method. ASTRO meets the definition of a business, Goodwill Net assets acquired Accrued liabilities Inventories Property, plant and equipment Property, Other assets Intangible assets combining the operations and technologies of Logitech and ASTRO. Goodwill is expected to be deductible for tax combining the operations and technologies of Logitech and purposes. The difference for the selling efforts. selling prices, less the costs of disposal and a reasonable profit allowance ASTRO ASTRO immediately before the between the fair value of the inventories and the amount recorded by of intangibles assets and purchase Acquisition Date is $0.8 million, which has been recognized in "amortization Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of the Company disaggregate requires that the 2017-07), which Benefit Cost" (ASU Postretirement Net Periodic on how to provides guidance cost, and also of net benefit the other components component from service cost and in the income statement of net benefit cost other components and the service cost component present the effective The standard is eligible for capitalization. benefit cost to be component of net the service cost allow only within those interim periods 15, 2017, including after December periods beginning for annual for the Company ASU 2017-07 will of Company does not expect the adoption The early adoption permitted. annual periods, with April 1, effective and has adopted this guidance on its consolidated financial statements have a material impact 2018. of hedging relationships improves the financial reporting Activities" (ASU 2017-12), which Accounting for Hedging to in its financial statements and risk management activities economic results of an entity’s to better portray the for annual periods beginning 2017-12 is effective ASU of the hedge accounting guidance. simplifies the application The adoption permitted. those annual periods, with early 2018, including interim periods within after December 15, impact on its consolidated financial ASU 2017-12 will have a material expect that the adoption of Company does not April 1, 2018. effective statements and has adopted this standard Acquisitions Note 3 — Business Acquisitions 2018 Year Fiscal Acquisition ASTRO constituting the ASTRO Gaming business (ASTRO) from AG Acquisition Corporation for a purchase price of $85.0 Acquisition Corporation AG from ASTRO Gaming business (ASTRO) constituting the brand with a history of ASTRO is a leading console gaming accessory Acquisition). ASTRO million in cash (the the Company with a ASTRO provides for professional gamers and enthusiasts. producing award-winning headsets gaming accessories market. strong growth platform in the console the estimated fair values of the assets acquired and liabilities assumed at The following table summarizes the Acquisition Date (in thousands): ASTRO

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 4.0 8.0 6.0 6.8 (years) Estimated Useful Life 6,880 52,520 12,540 33,100 Fair Value $ $ 77 76

amortized over their estimated useful Acquisition are being ASTRO of the Intangible assets acquired as a result useful life was The economic ASTRO gaming headset products. Developed technology relates to existing of fair value of future projected revenue that will be derived from sales Customer relationships represent the The economic useful life was determined based on the name. name relates to the “ASTRO” trade Trade using the relief-from-royalty method, an The fair value of developed technology and trade name was estimated earnings method, an income approach The fair value of customer relationships was estimated using the excess above represents the fair values of, The Company believes the value of purchased intangible assets recorded ASTRO contributed approximately 2 points to net sales growth. For the year ended March 31, 2018, The Company included ASTRO's estimated fair value of assets acquired and liabilities assumed in its and liabilities of assets acquired fair value ASTRO's estimated included The Company components of and estimated useful lives of the summarizes the estimated fair values The following table Total intangible assets acquired Total Customer relationships name Trade Developed technology lives using the straight-line method of amortization. Amortization of acquired developed technology of $2.0 million Amortization of acquired of amortization. lives using the straight-line method is included in "amortization of intangible assets and purchase accounting during the year ended March 31, 2018, of the acquired customer Amortization of operations. of inventory" in the consolidated statements effect of million during the year ended March 31, 2018, is included in "amortization relationships and trade name of $3.3 costs" in the consolidated statements of operations. intangible assets and acquisition-related the cash cycle related to developed technology of existing products, as well as determined based on the technology periods. flows anticipated over the forecasted useful life was determined based on historical customer The economic ASTRO. products to existing customers of turnover rates and industry benchmarks. the cash flows anticipated over the forecasted periods. expected life of the trade name and to the owner of the intangible assets that income approach (Level 3), which estimates the cost savings that accrue royalty A through the use of the asset. would otherwise be payable as royalties or license fees on revenues earned assets to determine the amount of savings, rate is applied to the projected revenues associated with the intangible The developed technology and trade name were valued using which is then discounted to determine the fair value. and both were discounted at a rate of 13%. royalty rates of 10% and 2%, respectively, reflect the fact that certain other assets To (Level 3), which converts projected revenues and costs into cash flows. assets were removed to arrive at contributed to the cash flows generated, the returns for these contributory which were discounted at a rate of 13%. estimated cash flows solely attributable to the customer relationships, ASTRO these intangible assets as of the and approximates the amounts a market participant would pay for, Acquisition Date. Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note the sales of the acquired operations upon statements of in the consolidated on inventory" effect accounting inventories. have ASTRO for The results of operations Acquisition Date. ASTRO sheets beginning on the consolidated balance ASTRO from the consolidated statements of operations but are not material to, the Company's been included in, Acquisition Date. (Dollars in thousands): Acquisition Date ASTRO assets acquired as of the identifiable intangible 605 2,760 (2,982) 63,234 21,766 66,216 52,520 Value Estimated Fair $ 85,000 $ 10,331 certain assets and liabilities 75 In March 2017, the FASB issued ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Pension Cost and of Net Periodic the Presentation 2017-07, "Improving ASU issued 2017, the FASB In March Improvements Targeted 815): and Hedging (Topic ASU 2017-12, "Derivatives issued August 2017, the FASB In Net identifiable assets acquired Total identifiable assets acquired Total The fair value of the inventories acquired is estimated at their net realizable value, which uses the estimated The fair value of the inventories acquired is estimated at their net realizable Goodwill related to the transaction is primarily attributable to opportunities and economies of scale from Goodwill related to the transaction is primarily attributable to opportunities On August 11, 2017 (the ASTRO Acquisition Date), the Company acquired ASTRO 2017 (the August 11, On and its acquisition is accounted for using the acquisition method. ASTRO meets the definition of a business, Goodwill Net assets acquired Accrued liabilities Inventories plant and equipment Property, Intangible assets Other assets combining the operations and technologies of Logitech and ASTRO. Goodwill is expected to be deductible for tax combining the operations and technologies of Logitech and purposes. The difference for the selling efforts. selling prices, less the costs of disposal and a reasonable profit allowance ASTRO ASTRO immediately before the between the fair value of the inventories and the amount recorded by of intangibles assets and purchase Acquisition Date is $0.8 million, which has been recognized in "amortization Note 2—Summary of Significant Accounting Policies (Continued) Policies Accounting Significant 2—Summary Note of the Company disaggregate requires that the 2017-07), which Benefit Cost" (ASU Postretirement Net Periodic on how to provides guidance cost, and also of net benefit the other components component from service cost and in the income statement of net benefit cost other components and the service cost component present the effective The standard is eligible for capitalization. benefit cost to be component of net the service cost allow only within those interim periods 15, 2017, including after December periods beginning for annual for the Company ASU 2017-07 will of Company does not expect the adoption The early adoption permitted. annual periods, with April 1, effective and has adopted this guidance on its consolidated financial statements have a material impact 2018. of hedging relationships improves the financial reporting Activities" (ASU 2017-12), which Accounting for Hedging to in its financial statements and risk management activities economic results of an entity’s to better portray the for annual periods beginning 2017-12 is effective ASU of the hedge accounting guidance. simplifies the application The adoption permitted. those annual periods, with early 2018, including interim periods within after December 15, impact on its consolidated financial ASU 2017-12 will have a material expect that the adoption of Company does not April 1, 2018. effective statements and has adopted this standard Acquisitions Note 3 — Business Acquisitions 2018 Year Fiscal Acquisition ASTRO for a purchase price of $85.0 Acquisition Corporation AG from ASTRO Gaming business (ASTRO) constituting the brand with a history of ASTRO is a leading console gaming accessory Acquisition). ASTRO million in cash (the the Company with a ASTRO provides for professional gamers and enthusiasts. producing award-winning headsets gaming accessories market. strong growth platform in the console the estimated fair values of the assets acquired and liabilities assumed at The following table summarizes the Acquisition Date (in thousands): ASTRO 4.0 8.0 6.0 6.1 Estimated Useful Life (years) 9,380 2,550Applicable Not 18,450 19,900 47,730 50,280 Fair Value $ $ 78 Except for IPR&D, intangible assets acquired as a result of the Jaybird Acquisition are being amortized over Acquisition acquired as a result of the Jaybird Except for IPR&D, intangible assets useful life was The economic Bluetooth wireless sports earbuds. Developed technology relates to existing that will be derived from sales of Customer relationships represent the fair value of future projected revenue The economic useful life was determined based on the name relates to the “Jaybird” trade name. Trade using the relief-from-royalty method, an The fair value of developed technology and trade name was estimated earnings method, an income approach The fair value of customer relationships was estimated using the excess Goodwill related to the transaction is primarily attributable to opportunities and economies of scale from of scale and economies attributable to opportunities is primarily related to the transaction Goodwill before immediately recorded by Jaybird and the amount of the inventories the fair value between The difference in its of assets acquired and liabilities assumed Jaybird's estimated fair value The Company included components of and estimated useful lives of the summarizes the estimated fair values The following table Total intangible assets acquired Total Developed technology Customer relationships name Trade Intangible assets with finite lives acquired (IPR&D) In-process research & development their estimated useful lives using the straight-line method of amortization. Amortization of acquired developed Amortization straight-line method of amortization. their estimated useful lives using the and 2017 is included in during fiscal years 2018 million, respectively, technology of $5.1 million and $4.4 in the gross profit of the on inventory" purchase accounting effect "amortization of intangible assets and customer relationships and trade name of $4.0 Amortization of the acquired consolidated statements of operations. is included in "amortization of intangible during fiscal years 2018 and 2017 million and $3.8 million, respectively, in the consolidated statements of operations. assets and acquisition-related costs" as the cycle related to the developed technology of existing products, as well determined based on the technology cash flows anticipated over the forecasted periods. The economic useful life was determined based on historical customer products to existing customers of Jaybird. turnover rates and industry benchmarks. forecasted periods. expected life of the trade name and the cash flows anticipated over the to the owner of the intangible assets that income approach (Level 3), which estimates the cost savings that accrue royalty A through the use of the asset. would otherwise be payable as royalties or license fees on revenues earned assets to determine the amount of savings, rate is applied to the projected revenues associated with the intangible The developed technology and trade name were valued using which is then discounted to determine the fair value. and both were discounted at a rate of 16%. royalty rates of 10% and 2.5%, respectively, reflect the fact that certain other assets To (Level 3), which converts projected revenues and costs into cash flows. Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note for tax expected to be deductible Goodwill is Logitech and Jaybird. technologies of the operations and combining purposes. assets and purchase in "amortization of intangibles was $0.7 million, which was recognized the acquisition date upon the sales of the acquired consolidated statements of operations on inventory" in the accounting effect inventories. have been included in, The results of operations for Jaybird April 20, 2016. sheets beginning consolidated balance Acquisition Date. of operations from the Jaybird to, the Company's consolidated statements but are not material lives as of the Jaybird fair values and their estimated useful assets acquired at their estimated identifiable intangible in thousands): Acquisition Date (Dollars 27 272 611 (283) 1,165 (1,227) (5,226) 18,000 10,214 50,280 62,824 45,575 26,667 (10,513) Value Estimated Fair $$ 54,242 72,242 $ 255 $ 72,242 77 78 Total identifiable assets acquired Total Net identifiable assets acquired The fair value of the earn-out payments at the Jaybird Acquisition Date was determined by providing risk- Acquisition at the Jaybird The fair value of the earn-out payments the estimated fair values of the assets acquired and liabilities assumed at The following table summarizes the In November 2017, the Company also made a small technology acquisition for a total consideration of $5.2 a total consideration acquisition for a small technology also made 2017, the Company In November of JayBird, acquired all of the equity interests Acquisition Date), the Company April 20, 2016 (the Jaybird On The and its acquisition is accounted for using the acquisition method. Jaybird meets the definition of a business Fair value of total consideration transferred Cash and cash equivalents Inventories plant, and equipment Property, Intangible assets Purchase price Fair value of contingent consideration (earn-out) Fair value of contingent consideration Accounts receivable Other current assets Other assets Accounts payable Accrued liabilities Other current liabilities Other long-term liabilities Goodwill Net assets acquired adjusted earnings projections using a Monte Carlo Simulation, which includes inputs that are not observable in the a Monte Carlo Simulation, which includes inputs that are not observable adjusted earnings projections using value of this earn-out is discussed further in The fair a Level 3 measurement. market, and therefore representing financial statements. Measurements" to the consolidated "Note 10 - Fair Value Acquisition Date (in thousands): Jaybird Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note by the Company was retained the total consideration $1.0 million of of $0.9 million. cash acquired million, including and covenants. warranties the seller's representations, of ensuring for the purpose Acquisitions 2017 Year Fiscal Acquisition Jaybird trackers, and accessories Bluetooth earbuds, activity limited liability company that develops LLC (Jaybird), a Utah capital adjustment $54.2 million in cash, including a working lifestyles, for a purchase price of for sports and active $45.0 million based on the an additional earn-out of up to line-of-credit on behalf of Jaybird, with and payment of a If Acquisition). (the Jaybird approximately a two year period net revenue growth targets over achievement of certain of $25.0 million the Company would have paid a maximum targets would have been met, the net revenue growth of Jaybird October 2017, Logitech and the sellers In in fiscal years 2018 and 2019, respectively. and $20.0 million from the earn-out rights and and unconditionally releasing Logitech irrevocably fully, entered into an agreement has Acquisition The Jaybird in cash, which was paid in November 2017. payments in exchange for $5.0 million the wireless wearables space. accelerated the Company's entry into of the following (in thousands): Acquisition consists for the Jaybird fair value of consideration transferred

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 4.0 8.0 6.0 6.1 Estimated Useful Life (years) 9,380 2,550Applicable Not 18,450 19,900 47,730 50,280 Fair Value $ $ 79 78 Except for IPR&D, intangible assets acquired as a result of the Jaybird Acquisition are being amortized over Acquisition acquired as a result of the Jaybird Except for IPR&D, intangible assets useful life was The economic Bluetooth wireless sports earbuds. Developed technology relates to existing that will be derived from sales of Customer relationships represent the fair value of future projected revenue The economic useful life was determined based on the name relates to the “Jaybird” trade name. Trade using the relief-from-royalty method, an The fair value of developed technology and trade name was estimated earnings method, an income approach The fair value of customer relationships was estimated using the excess Goodwill related to the transaction is primarily attributable to opportunities and economies of scale from of scale and economies attributable to opportunities is primarily related to the transaction Goodwill before immediately recorded by Jaybird and the amount of the inventories the fair value between The difference in its of assets acquired and liabilities assumed Jaybird's estimated fair value The Company included components of and estimated useful lives of the summarizes the estimated fair values The following table Total intangible assets acquired Total Customer relationships name Trade Intangible assets with finite lives acquired (IPR&D) In-process research & development Developed technology their estimated useful lives using the straight-line method of amortization. Amortization of acquired developed Amortization straight-line method of amortization. their estimated useful lives using the and 2017 is included in during fiscal years 2018 million, respectively, technology of $5.1 million and $4.4 in the gross profit of the on inventory" purchase accounting effect "amortization of intangible assets and customer relationships and trade name of $4.0 Amortization of the acquired consolidated statements of operations. is included in "amortization of intangible during fiscal years 2018 and 2017 million and $3.8 million, respectively, in the consolidated statements of operations. assets and acquisition-related costs" as the cycle related to the developed technology of existing products, as well determined based on the technology cash flows anticipated over the forecasted periods. The economic useful life was determined based on historical customer products to existing customers of Jaybird. turnover rates and industry benchmarks. forecasted periods. expected life of the trade name and the cash flows anticipated over the to the owner of the intangible assets that income approach (Level 3), which estimates the cost savings that accrue royalty A through the use of the asset. would otherwise be payable as royalties or license fees on revenues earned assets to determine the amount of savings, rate is applied to the projected revenues associated with the intangible The developed technology and trade name were valued using which is then discounted to determine the fair value. and both were discounted at a rate of 16%. royalty rates of 10% and 2.5%, respectively, reflect the fact that certain other assets To (Level 3), which converts projected revenues and costs into cash flows. Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note for tax expected to be deductible Goodwill is Logitech and Jaybird. technologies of the operations and combining purposes. assets and purchase in "amortization of intangibles was $0.7 million, which was recognized the acquisition date upon the sales of the acquired consolidated statements of operations on inventory" in the accounting effect inventories. have been included in, The results of operations for Jaybird April 20, 2016. sheets beginning consolidated balance Acquisition Date. of operations from the Jaybird to, the Company's consolidated statements but are not material lives as of the Jaybird fair values and their estimated useful assets acquired at their estimated identifiable intangible in thousands): Acquisition Date (Dollars

272 611 (283) 1,165 (1,227) (5,226) 62,824 45,575 26,667 10,214 50,280 18,000 (10,513) Value Estimated Fair $ 72,242 $ 255 $ 54,242 $ 72,242 77 Total identifiable assets acquired Total Net identifiable assets acquired In November 2017, the Company also made a small technology acquisition for a total consideration of $5.2 a total consideration acquisition for a small technology also made 2017, the Company In November of JayBird, acquired all of the equity interests Acquisition Date), the Company April 20, 2016 (the Jaybird On The and its acquisition is accounted for using the acquisition method. Jaybird meets the definition of a business the estimated fair values of the assets acquired and liabilities assumed at The following table summarizes the The fair value of the earn-out payments at the Jaybird Acquisition Date was determined by providing risk- Acquisition at the Jaybird The fair value of the earn-out payments Fair value of total consideration transferred Accounts payable Accrued liabilities Other current liabilities Other long-term liabilities Goodwill Net assets acquired Cash and cash equivalents Accounts receivable Inventories Other current assets plant, and equipment Property, Intangible assets Other assets Purchase price (earn-out) Fair value of contingent consideration Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note by the Company was retained the total consideration $1.0 million of of $0.9 million. cash acquired million, including and covenants. warranties the seller's representations, of ensuring for the purpose Acquisitions 2017 Year Fiscal Acquisition Jaybird trackers, and accessories Bluetooth earbuds, activity limited liability company that develops LLC (Jaybird), a Utah capital adjustment $54.2 million in cash, including a working lifestyles, for a purchase price of for sports and active $45.0 million based on the an additional earn-out of up to line-of-credit on behalf of Jaybird, with and payment of a If Acquisition). (the Jaybird approximately a two year period net revenue growth targets over achievement of certain of $25.0 million the Company would have paid a maximum targets would have been met, the net revenue growth of Jaybird October 2017, Logitech and the sellers In in fiscal years 2018 and 2019, respectively. and $20.0 million from the earn-out rights and and unconditionally releasing Logitech irrevocably fully, entered into an agreement has Acquisition The Jaybird in cash, which was paid in November 2017. payments in exchange for $5.0 million the wireless wearables space. accelerated the Company's entry into of the following (in thousands): Acquisition consists for the Jaybird fair value of consideration transferred in the a Monte Carlo Simulation, which includes inputs that are not observable adjusted earnings projections using value of this earn-out is discussed further in The fair a Level 3 measurement. market, and therefore representing financial statements. Measurements" to the consolidated "Note 10 - Fair Value Acquisition Date (in thousands): Jaybird (205) 5,254 7,900 1,187 (7,858) (9,045) 65,554 24,951 40,603 32,260 16,526 61,940 13,684 (21,337) 2016 Years Ended March 31, Years $ $ 80 The retained Series A Preferred Stock gives the Company no voting rights or any other significant influence significant influence rights or any other Company no voting Stock gives the Preferred A Series The retained operations video conferencing business. Discontinued include results of the Lifesize Discontinued operations operations (in conferencing classified as discontinued presents financial results of the video The following table Gross profit Marketing and selling Research and development General and administrative Restructuring charges, net Net sales Cost of goods sold Operating expenses: Operating loss from discontinued operations Interest and other expense, net before income taxes Loss from discontinued operations Provision for income taxes Operating expenses operations Gain on divestiture of discontinued Net loss from discontinued operations

Note 4 - Discontinued Operations (Continued) Operations 4 - Discontinued Note method investment for as a cost is accounted business, and therefore conferencing divested Lifesize video over the Conferencing of Lifesize Video date of divestiture $5.6 million at the at fair value of initially recognized which was of to the price with reference option pricing methodology by using the value was determined The fair business. in Series investment value of the Company’s The fair Investors. Stock paid by Venture B Preferred Series Lifesize’s the use of pricing methodology requires Level 3 as the application of the option Preferred Stock is classified as A three years, and lack of of 50%, expected term to exit of inputs including asset volatility significant unobservable of 27%. marketability discount conferencing business. the divestiture of the Lifesize video costs incurred by Logitech to effect also include other cost related to the Lifesize consulting fees and restructuring transaction charges, advisory and These costs include business. video conferencing thousands): 79 80 The IPR&D is accounted for as an indefinite-lived intangible asset and is not amortized until completion or until completion and is not amortized intangible asset as an indefinite-lived is accounted for The IPR&D for a total cash acquisition of the Saitek product line 2016, the Company completed the On September 15, for costs of approximately $1.4 million and $1.5 million, in aggregate, The Company incurred acquisition-related Acquisition Saitek Acquisition and the Acquisition, the Jaybird ASTRO Pro forma results of operations for the 2016, the Company's Board of Directors approved a plan to divest the During the third quarter of fiscal year business as discontinued The Company has classified the historical results of its Lifesize video conferencing Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note arrive at were removed to assets for these contributory generated, the returns to the cash flows contribute rate of 16%. discounted at a which were customer relationships, attributable to the cash flows solely estimated as was reclassified The IPR&D acquired development efforts. research and of the associated abandonment the underlying projects quarter of fiscal year 2017 when intangible assets during the third developed technology five years. over its estimated useful life of developed technology is amortized were completed and Acquisition Saitek million was Out of the total consideration, $6.7 Acquisition). $13.0 million (the Saitek consideration of approximately attributed to net tangible to goodwill, and $1.4 million was assets, $4.9 million was attributed attributed to intangible in the the Company's product offerings enhances the breadth and depth of Acquisition The Saitek assets acquired. The amount of capabilities in simulation products. and expands the Company's engineering Gaming category for tax purposes. Acquisition is deductible from the Saitek goodwill generated forma results of operations Acquisition-related costs and pro costs are included in "Amortization The acquisition-related 2017, respectively. the year ended March 31, 2018 and costs" in the consolidated statements of operations. of intangible assets and acquisition-related acquisitions are not material to the consolidated statements of operations have not been presented because these individually or in aggregate. Note 4 - Discontinued Operations the On December 28, 2015 during the fourth quarter of fiscal year 2016, Lifesize video conferencing business. the Company (Lifesize) which held the assets of the and Lifesize, Inc., a wholly owned subsidiary of Company, into a stock purchase agreement (the Stock Purchase video conferencing reportable segment, entered Company’s Investors). Pursuant to investment firms (the Venture with three venture capital Agreement) with entities affiliated Company sold 2.5 million shares of Series B Preferred Stock of Agreement, the the terms of the Stock Purchase of $2.5 million and retained 12.0 million non-voting shares of Investors for cash proceeds Lifesize to the Venture the Company Preferred Stock of Lifesize retained by A The shares of Series Preferred Stock of Lifesize. A Series of the transactions contemplated by the represent 37.5% of the shares outstanding immediately after the closing Agreement (the Closing). Lifesize also issued 17.5 million shares of Series B Preferred Stock to the Stock Purchase Venture The shares of Series B Preferred Stock held by the for cash proceeds of $17.5 million. Investors Venture the Closing. In addition, Lifesize has Investors represent 62.5% of the shares outstanding immediately after a stock plan to be adopted by Lifesize reserved 8.0 million shares of common stock for issuance pursuant to The Company substantially completed following the Closing, none of which are issued or outstanding at the Closing. 2017. its transition services for Lifesize during the third quarter of fiscal year of the Lifesize video conferencing operations in its consolidated statements of operations since the divestiture on the Company's operations and financial results. business represents a strategic shift that has a major effect shift requires the Company's judgment. Evaluating whether the divestiture of the business represents a strategic on the Company's operations and financial Also, evaluating whether the strategic shift will have a "major effect" of qualitative factors. results requires assessing not only quantitative factors but also the magnitude

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 (205) 1,187 5,254 7,900 (7,858) (9,045) 65,554 24,951 40,603 32,260 16,526 61,940 13,684 (21,337) 2016 Years Ended March 31, Years $ $ 81 80 The retained Series A Preferred Stock gives the Company no voting rights or any other significant influence significant influence rights or any other Company no voting Stock gives the Preferred A Series The retained operations video conferencing business. Discontinued include results of the Lifesize Discontinued operations operations (in conferencing classified as discontinued presents financial results of the video The following table Gross profit Marketing and selling Research and development General and administrative Restructuring charges, net Provision for income taxes Net loss from discontinued operations Net sales Cost of goods sold Operating expenses: Operating loss from discontinued operations Interest and other expense, net before income taxes Loss from discontinued operations Operating expenses operations Gain on divestiture of discontinued Note 4 - Discontinued Operations (Continued) Operations 4 - Discontinued Note method investment for as a cost is accounted business, and therefore conferencing divested Lifesize video over the Conferencing of Lifesize Video date of divestiture $5.6 million at the at fair value of initially recognized which was of to the price with reference option pricing methodology by using the value was determined The fair business. in Series investment value of the Company’s The fair Investors. Stock paid by Venture B Preferred Series Lifesize’s the use of pricing methodology requires Level 3 as the application of the option Preferred Stock is classified as A three years, and lack of of 50%, expected term to exit of inputs including asset volatility significant unobservable of 27%. marketability discount conferencing business. the divestiture of the Lifesize video costs incurred by Logitech to effect also include other cost related to the Lifesize consulting fees and restructuring transaction charges, advisory and These costs include business. video conferencing thousands): 79 The IPR&D is accounted for as an indefinite-lived intangible asset and is not amortized until completion or until completion and is not amortized intangible asset as an indefinite-lived is accounted for The IPR&D for a total cash acquisition of the Saitek product line 2016, the Company completed the On September 15, for costs of approximately $1.4 million and $1.5 million, in aggregate, The Company incurred acquisition-related Acquisition Saitek Acquisition and the Acquisition, the Jaybird ASTRO Pro forma results of operations for the 2016, the Company's Board of Directors approved a plan to divest the During the third quarter of fiscal year business as discontinued The Company has classified the historical results of its Lifesize video conferencing Note 3 — Business Acquisitions (Continued) Acquisitions 3 — Business Note arrive at were removed to assets for these contributory generated, the returns to the cash flows contribute rate of 16%. discounted at a which were customer relationships, attributable to the cash flows solely estimated as was reclassified The IPR&D acquired development efforts. research and of the associated abandonment the underlying projects quarter of fiscal year 2017 when intangible assets during the third developed technology five years. over its estimated useful life of developed technology is amortized were completed and Acquisition Saitek million was Out of the total consideration, $6.7 Acquisition). $13.0 million (the Saitek consideration of approximately attributed to net tangible to goodwill, and $1.4 million was assets, $4.9 million was attributed attributed to intangible in the the Company's product offerings enhances the breadth and depth of Acquisition The Saitek assets acquired. The amount of capabilities in simulation products. and expands the Company's engineering Gaming category for tax purposes. Acquisition is deductible from the Saitek goodwill generated forma results of operations Acquisition-related costs and pro costs are included in "Amortization The acquisition-related 2017, respectively. the year ended March 31, 2018 and costs" in the consolidated statements of operations. of intangible assets and acquisition-related acquisitions are not material to the consolidated statements of operations have not been presented because these individually or in aggregate. Note 4 - Discontinued Operations the On December 28, 2015 during the fourth quarter of fiscal year 2016, Lifesize video conferencing business. the Company (Lifesize) which held the assets of the and Lifesize, Inc., a wholly owned subsidiary of Company, into a stock purchase agreement (the Stock Purchase video conferencing reportable segment, entered Company’s Investors). Pursuant to investment firms (the Venture with three venture capital Agreement) with entities affiliated Company sold 2.5 million shares of Series B Preferred Stock of Agreement, the the terms of the Stock Purchase of $2.5 million and retained 12.0 million non-voting shares of Investors for cash proceeds Lifesize to the Venture the Company Preferred Stock of Lifesize retained by A The shares of Series Preferred Stock of Lifesize. A Series of the transactions contemplated by the represent 37.5% of the shares outstanding immediately after the closing Agreement (the Closing). Lifesize also issued 17.5 million shares of Series B Preferred Stock to the Stock Purchase Venture The shares of Series B Preferred Stock held by the for cash proceeds of $17.5 million. Investors Venture the Closing. In addition, Lifesize has Investors represent 62.5% of the shares outstanding immediately after a stock plan to be adopted by Lifesize reserved 8.0 million shares of common stock for issuance pursuant to The Company substantially completed following the Closing, none of which are issued or outstanding at the Closing. 2017. its transition services for Lifesize during the third quarter of fiscal year of the Lifesize video conferencing operations in its consolidated statements of operations since the divestiture on the Company's operations and financial results. business represents a strategic shift that has a major effect shift requires the Company's judgment. Evaluating whether the divestiture of the business represents a strategic on the Company's operations and financial Also, evaluating whether the strategic shift will have a "major effect" of qualitative factors. results requires assessing not only quantitative factors but also the magnitude 4 7 21 23 2016 Months Remaining — 2017 March 31, 2018 56,723 13,620 Years Ended March 31, Years Expense — Unamortized 6,381 4,200 3,046 $ 1,337 $ 71,680 44,138 35,890 27,019 17,76516,259 14,723 14,304 9,273 12,353 (15,998) (8,536) (6,297) 2018 $ 3,733 $ 2,663 $ 2,340 82 The income tax benefit in the respective period primarily consists of tax benefit related to the share-based As of March 31, 2018, 2017 and 2016, the Company capitalized $0.7 million, $0.6 million and $0.5 million, unamortized share-based compensation expense and the remaining The following table summarizes total Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85% of plans, eligible employees may purchase shares at the lower and 2006 ESPP Under the 1996 ESPP As of March 31, 2018, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan (Non-U.S.)), Plan (Non-U.S.)), Share Purchase (2006 Employee 2006 ESPP the Company offers 31, 2018, the As of March provision (benefit) expense and total income tax summarizes share-based compensation The following table Total share-based compensation expense Total tax benefit share-based compensation expense, net of income Total $ 28,140 $ 27,354 $ 20,722

Income tax benefit ESPP RSUs Time-based Market-based and performance-based RSUs Cost of goods sold Marketing and selling Research and development Restructuring General and administrative

compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from recognized benefits tax excess net including realized, benefit tax direct and period the for expense compensation benefit tax income The 2017. 1, April on 2016-09 ASU of adoption the upon exercised or vested awards share-based more for Taxes" is reduced by income tax provision the remeasurement of applicable resulting from deferred tax assets and liabilities Income - 8 "Note See 2017. 22, December on States United the in Act Tax the of enactment the to due information. of stock-based compensation expenses to inventory. respectively, (in expected to be recognized, on a weighted-average basis by type of grant months over which such expense is thousands, except number of months): the fair market value at the beginning or the end of each offering period, which is generally six months. Subject to the fair market value at the beginning or the end of each offering executed at the end of each offering continued participation in these plans, purchase agreements are automatically As of plans. of 29.0 million shares was reserved for issuance under the 1996 and 2006 ESPP An aggregate period. under these plans. March 31, 2018, a total of 5.9 million shares was available for new awards Note 6—Employee Benefit Plans Benefit 6—Employee Note Incentive Plans Plans and Stock Share Purchase Employee and the Incentive Plan) Plan (2006 Stock (U.S.)), the 2006 Purchase Plan Employee Share (1996 ESPP the 1996 or exercises a result of purchases to employees as Shares issued Equity Plan). (2012 Stock Inducement 2012 Plan stock. shares held in treasury issued from plans are generally under these years 2018, 2017 and 2016 (in thousands): recognized for fiscal (475) 2,500 5,591 9,981 (3,913) 13,684 2016 Year Ended Year March 31, 2016 March 31, — (9,045) $ $ 2017 Years Ended March 31, Years — 4,933 3,482 2,496 2018 164,038168,971 162,058 165,540 163,296 165,792 $ 208,542 $ 205,876 $ 119,317 $$ 1.27$ $ — 1.27 $$ 1.27 $ $$ 1.23$ 1.27 — $ 0.79 $ $ — 1.23 $ 1.24 $ 0.73 (0.06) $ 1.24 — 0.77 $ $ 0.72 (0.05) $ 208,542 $ 205,876 $ 128,362 81 82 During fiscal years 2018, 2017 and 2016, 1.1 million, 1.4 million and 5.2 million share equivalents attributable During fiscal years 2018, 2017 and 2016, 1.1 million, 1.4 million and 5.2 The computations of basic and diluted net income (loss) per share for the Company were as follows (in The computations of basic and diluted Net income average shares outstanding - diluted Weighted Net income per share - basic Net income per share - diluted The Company recognized a gain on its divestiture of Lifesize video conferencing business as follows (in business as follows conferencing of Lifesize video a gain on its divestiture recognized The Company Weighted average shares outstanding - basic Weighted of potentially dilutive equivalent shares Effect Continuing operations Discontinued operations Continuing operations Discontinued operations Discontinued operations Continuing operations functional currency, which is part of discontinued operations which is part of discontinued operations functional currency, statement of operations taxes, in the Company's consolidated Gain on divestiture of discontinued operations (2) Gain on divestiture Shares used in net income (loss) per share computation: Shares used in net income (loss) Net income (loss) per share - basic: Net income (loss) per share - diluted: Net Income (loss):

Fair value of retained cost method investment as a result of the divestiture of discontinued cost method investment as a result Fair value of retained operations operations divested Net liabilities of discontinued of discontinued operations (1) loss released due to the divestiture Currency translation costs Transaction-related Proceeds received from the divestiture of discontinued operations from the divestiture of discontinued Proceeds received to outstanding stock options, RSUs and ESPP were excluded from the calculation of diluted net income (loss) per to outstanding stock options, RSUs and ESPP value and assumed tax benefits upon share because the combined exercise price, average unamortized fair or vesting of RSUs were greater than the average market price of the exercise of these options and ESPP Company's shares, and therefore their inclusion would have been anti-dilutive. (1) Currency translation loss recognized as a result of the substantial liquidation of a subsidiary using non-USD the substantial liquidation of a subsidiary loss recognized as a result of (1) Currency translation income operation was included in loss from discontinued operations, net of (2) Gain on divestiture of discontinued Note 5—Net Income (Loss) per Share thousands except per share amounts): Note 4 - Discontinued Operations (Continued) Operations 4 - Discontinued Note thousands):

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 4 7 21 23 2016 Months Remaining — 2017 March 31, 2018 56,723 13,620 Years Ended March 31, Years Expense — Unamortized 6,381 4,200 3,046 $ 1,337 $ 71,680 17,76516,259 14,72344,138 14,304 9,273 35,890 12,353 27,019 (15,998) (8,536) (6,297) 2018 $ 3,733 $ 2,663 $ 2,340 83 82

The income tax benefit in the respective period primarily consists of tax benefit related to the share-based As of March 31, 2018, 2017 and 2016, the Company capitalized $0.7 million, $0.6 million and $0.5 million, unamortized share-based compensation expense and the remaining The following table summarizes total of 85% of plans, eligible employees may purchase shares at the lower and 2006 ESPP Under the 1996 ESPP As of March 31, 2018, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan (Non-U.S.)), Plan (Non-U.S.)), Share Purchase (2006 Employee 2006 ESPP the Company offers 31, 2018, the As of March provision (benefit) expense and total income tax summarizes share-based compensation The following table Total share-based compensation expense, net of income tax benefit share-based compensation expense, net of income Total $ 28,140 $ 27,354 $ 20,722 Total share-based compensation expense Total ESPP RSUs Time-based Market-based and performance-based RSUs Cost of goods sold Marketing and selling Research and development General and administrative Restructuring Income tax benefit

compensation expense for the period and direct tax benefit realized, including net excess tax benefits recognized from recognized benefits tax excess net including realized, benefit tax direct and period the for expense compensation benefit tax income The 2017. 1, April on 2016-09 ASU of adoption the upon exercised or vested awards share-based more for Taxes" is reduced by income tax provision the remeasurement of applicable resulting from deferred tax assets and liabilities Income - 8 "Note See 2017. 22, December on States United the in Act Tax the of enactment the to due information. of stock-based compensation expenses to inventory. respectively, (in expected to be recognized, on a weighted-average basis by type of grant months over which such expense is thousands, except number of months): period, which is generally six months. Subject to the fair market value at the beginning or the end of each offering executed at the end of each offering continued participation in these plans, purchase agreements are automatically As of plans. of 29.0 million shares was reserved for issuance under the 1996 and 2006 ESPP An aggregate period. under these plans. March 31, 2018, a total of 5.9 million shares was available for new awards Note 6—Employee Benefit Plans Benefit 6—Employee Note Incentive Plans Plans and Stock Share Purchase Employee and the Incentive Plan) Plan (2006 Stock (U.S.)), the 2006 Purchase Plan Employee Share (1996 ESPP the 1996 or exercises a result of purchases to employees as Shares issued Equity Plan). (2012 Stock Inducement 2012 Plan stock. shares held in treasury issued from plans are generally under these years 2018, 2017 and 2016 (in thousands): recognized for fiscal (475) 5,591 9,981 2,500 (3,913) 13,684 2016 Year Ended Year March 31, 2016 March 31, — (9,045) $ $ 2017 Years Ended March 31, Years — 4,933 3,482 2,496 2018 164,038168,971 162,058 165,540 163,296 165,792 $ 208,542 $$ 205,876 208,542 $ $ 128,362 205,876 $ 119,317 $$ 1.27$ $ — 1.27 $$ 1.27 $ $$ 1.23$ 1.27 — $ 0.79 $ $ — 1.23 $ 1.24 $ 0.73 (0.06) $ 1.24 — 0.77 $ $ 0.72 (0.05) 81 During fiscal years 2018, 2017 and 2016, 1.1 million, 1.4 million and 5.2 million share equivalents attributable During fiscal years 2018, 2017 and 2016, 1.1 million, 1.4 million and 5.2 The computations of basic and diluted net income (loss) per share for the Company were as follows (in The computations of basic and diluted Net income average shares outstanding - diluted Weighted Net income per share - basic Net income per share - diluted The Company recognized a gain on its divestiture of Lifesize video conferencing business as follows (in business as follows conferencing of Lifesize video a gain on its divestiture recognized The Company Continuing operations Discontinued operations average shares outstanding - basic Weighted of potentially dilutive equivalent shares Effect Continuing operations Discontinued operations Continuing operations Discontinued operations functional currency, which is part of discontinued operations which is part of discontinued operations functional currency, statement of operations taxes, in the Company's consolidated Gain on divestiture of discontinued operations (2) Gain on divestiture Net Income (loss): per share computation: Shares used in net income (loss) Net income (loss) per share - basic: Net income (loss) per share - diluted:

Proceeds received from the divestiture of discontinued operations from the divestiture of discontinued Proceeds received of the divestiture of discontinued cost method investment as a result Fair value of retained operations operations divested Net liabilities of discontinued of discontinued operations (1) loss released due to the divestiture Currency translation costs Transaction-related to outstanding stock options, RSUs and ESPP were excluded from the calculation of diluted net income (loss) per to outstanding stock options, RSUs and ESPP value and assumed tax benefits upon share because the combined exercise price, average unamortized fair or vesting of RSUs were greater than the average market price of the exercise of these options and ESPP Company's shares, and therefore their inclusion would have been anti-dilutive. Note 4 - Discontinued Operations (Continued) Operations 4 - Discontinued Note thousands): using non-USD the substantial liquidation of a subsidiary loss recognized as a result of (1) Currency translation income operation was included in loss from discontinued operations, net of (2) Gain on divestiture of discontinued Note 5—Net Income (Loss) per Share thousands except per share amounts): 3.0 Aggregate Intrinsic Value $ 4,026 $ 14,627 $ 8,347 3.0 4.04.0 $ $ 46,630 46,630 (Years) (In thousands) Average Average Weighted- Remaining Contractual Term Years Ended March 31, Ended Years 3.0 31% 34% 38% 1.75%1.40% 3.29% 0.86% 3.78% 0.84% — 2018 2017 2016 Price Average Exercise Weighted- ) ) ) $ 28 — — — (16) $ 35 (746 (500 (994 7,876 5,334 3,050 $ 18 2,0402,040 $ $ 14 14 84 (1,796) (1,784) Shares Number of (In thousands) As of March 31, 2018, the exercise price of outstanding options ranged from $4 to $26 per share option. As of March 31, 2018, the exercise price of outstanding options ranged The dividend yield assumption is based on the Company's history and future expectations of dividend payouts. history and future expectations assumption is based on the Company's The dividend yield at the time of grant and revised those estimates in subsequent The Company estimated awards forfeitures the Company estimates the probability and timing of the achievement For RSUs with performance conditions, summary of the A Company's stock option activities under all stock plans for fiscal years 2018, 2017 and 2016 Granted Exercised Canceled or expired Granted Exercised Canceled or expired Granted Exercised Canceled or expired Outstanding, March 31, 2015 Outstanding, March 31, 2016 Outstanding, March 31, 2017 Outstanding, March 31, 2018 March 31, 2018 and exercisable, Vested Dividend yield Dividend interest rate Risk-free Expected volatility Expected life (years) RSUs with Market Conditions RSUs with The unvested RSUs or unexercised options are not eligible for these dividends. The expected life is based on the The expected life is based for these dividends. or unexercised options are not eligible The unvested RSUs period for RSUs with market remain outstanding, or the performance periods expected to purchase offerings closing prices, or including using the Company's daily volatility is based on historical volatility conditions. Expected The expected life. for market-based RSUs, over the of the NASDAQ 100 index the volatility of components risk-free The volatility. shares as most representative of future the historical price volatility of its Company considers issues appropriate for the zero-coupon Treasury yield of U.S. are based upon the implied interest rate assumptions Company's share-based awards. expected life of the used historical data to estimate pre-vesting The Company from those estimates. periods if actual forfeitures differ share-based compensation expense only for those awards that are option and RSU forfeitures and recorded accounts for forfeitures as they ASU 2016-09 and adopted April 1, 2017, the Company expected to vest. Effective did not have a material impact on the Company's The impact from the change in accounting for forfeitures occur. consolidated financial statements. the the time of the grant based on the historical financial performance and of the set performance condition at when period and reassesses the probability in subsequent periods financial forecast in the remaining performance available. actual results or new information become is as follows (including discontinued operations for fiscal year 2016): Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note 0.5 0.5 Years Ended March 31, Years 0.5 27% 35% 26% 1.67%1.37% 2.50% 0.51% 3.47% 0.29% 2018 2017 2016 $ 8.69 $ 5.73 $ 3.29 83 84 The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options, stock of stock options, non-employee directors employees and the grant to eligible Plan provides for The 2006 and RSUs may be granted to eligible employees to serve as an Under the 2012 Plan, stock options expense require a number of complex and subjective The estimates of share-based compensation option-pricing valuation model and The grant date fair value of the awards using the Black-Scholes-Merton Time-based RSUs granted to employees under the 2006 Plan generally vest in four equal annual installments generally vest in four equal annual to employees under the 2006 Plan RSUs granted Time-based contingent upon and 2017 under the 2006 Plan vest RSUs granted in fiscal years 2016 Performance-based Weighted average grant date fair value per share Weighted Employee Stock Purchase Plans Dividend yield Risk-free interest rate Expected volatility Expected life (years) Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note on continued be conditioned the 2006 Plan may under Awards stock and RSUs. rights, restricted appreciation as The 2006 Plan, vesting criteria. and market of performance of time or the satisfaction the passage employment, are ten years and terms not exceeding this plan have All stock options under date. has no expiration amended, 30.6 million An aggregate of the date of grant. market value on less than the fair exercise prices not issued at shares was total of 10.6 million 31, 2018, a As of March 2006 Plan. under the reserved for issuance shares was awards under this plan. available for new members under the 2006 Plan RSUs granted to non-executive board Time-based anniversary. on the grant date board if earlier and only if the non-executive or installment on the grant date anniversary, vest in one annual annual general meeting general meeting, the date of the next as a director at such annual member is not re-elected date. following the grant approximately three years. performance period of which is predetermined financial metrics, the the achievement of options end of the performance period. Market-based condition can be achieved before the The performance The number of meeting the Company's share price performance criteria. granted under the 2006 Plan vest upon 2017 at vesting for market-based RSUs granted in fiscal years 2016 and shares of common stock to be received the 0 percent to 150 percent of the target number of stock units based on under the 2006 Plan will range from for (TSR) relative to the performance of companies in the NASDAQ-100 Index Company's total stockholder return with over a three-year period. In fiscal year 2018, the Company granted RSUs each measurement period, generally meeting which vest at the end of the three-year performance period upon both performance and market conditions, three years, with the number of shares to be received upon vesting determined predetermined financial metrics over relative to the TSR currency revenue growth rate and the Company's based on weighted average constant The Company presents Index over the same three year period. performance of companies in the NASDAQ-100 of the target of the number of stock units that may potentially vest. shares granted and vested at 100 percent be conditioned on under the 2012 Plan may Awards with the Company. inducement to enter into employment on of time or the satisfaction of market stock performance criteria, based continued employment, the passage An aggregate of March 28, 2022. The 2012 Plan has an expiration date letter. individually written employment offer 2018, no shares were As of March 31, issuance under the 2012 Plan. of 1.8 million shares was reserved for plan. available for new awards under this future forfeitures, probability of employee exercise patterns, assumptions including stock price volatility, and the selection of an appropriate condition, dividend yield, related tax effects achievement of the set performance fair value model. and values: Monte-Carlo simulation method are determined with the following assumptions

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 3.0 Aggregate Intrinsic Value $ 4,026 $ 14,627 $ 8,347 3.0 4.04.0 $ $ 46,630 46,630 (Years) (In thousands) Average Average Weighted- Remaining Contractual Term Years Ended March 31, Ended Years 3.0 31% 34% 38% 1.75%1.40% 3.29% 0.86% 3.78% 0.84% — 2018 2017 2016 Price Average Exercise Weighted- ) ) ) $ 28 — — — (16) $ 35 85 (746 (500 (994 7,876 5,334 3,050 $ 18 2,0402,040 $ $ 14 14 84 (1,796) (1,784) Shares Number of (In thousands)

As of March 31, 2018, the exercise price of outstanding options ranged from $4 to $26 per share option. As of March 31, 2018, the exercise price of outstanding options ranged The dividend yield assumption is based on the Company's history and future expectations of dividend payouts. history and future expectations assumption is based on the Company's The dividend yield at the time of grant and revised those estimates in subsequent The Company estimated awards forfeitures the Company estimates the probability and timing of the achievement For RSUs with performance conditions, summary of the A Company's stock option activities under all stock plans for fiscal years 2018, 2017 and 2016 Granted Exercised Canceled or expired Granted Exercised Canceled or expired Granted Exercised Canceled or expired Outstanding, March 31, 2017 Outstanding, March 31, 2015 Outstanding, March 31, 2016 Outstanding, March 31, 2018 March 31, 2018 and exercisable, Vested yield Dividend interest rate Risk-free Expected volatility Expected life (years) RSUs with Market Conditions RSUs with The unvested RSUs or unexercised options are not eligible for these dividends. The expected life is based on the The expected life is based for these dividends. or unexercised options are not eligible The unvested RSUs period for RSUs with market remain outstanding, or the performance periods expected to purchase offerings closing prices, or including using the Company's daily volatility is based on historical volatility conditions. Expected The expected life. for market-based RSUs, over the of the NASDAQ 100 index the volatility of components risk-free The volatility. shares as most representative of future the historical price volatility of its Company considers issues appropriate for the zero-coupon Treasury yield of U.S. are based upon the implied interest rate assumptions Company's share-based awards. expected life of the used historical data to estimate pre-vesting The Company from those estimates. periods if actual forfeitures differ share-based compensation expense only for those awards that are option and RSU forfeitures and recorded accounts for forfeitures as they ASU 2016-09 and adopted April 1, 2017, the Company expected to vest. Effective did not have a material impact on the Company's The impact from the change in accounting for forfeitures occur. consolidated financial statements. the the time of the grant based on the historical financial performance and of the set performance condition at when period and reassesses the probability in subsequent periods financial forecast in the remaining performance available. actual results or new information become is as follows (including discontinued operations for fiscal year 2016): Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note 0.5 0.5 Years Ended March 31, Years 0.5 27% 35% 26% 1.67%1.37% 2.50% 0.51% 3.47% 0.29% 2018 2017 2016 $ 8.69 $ 5.73 $ 3.29 83 The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options, stock of stock options, non-employee directors employees and the grant to eligible Plan provides for The 2006 and RSUs may be granted to eligible employees to serve as an Under the 2012 Plan, stock options expense require a number of complex and subjective The estimates of share-based compensation option-pricing valuation model and The grant date fair value of the awards using the Black-Scholes-Merton Time-based RSUs granted to employees under the 2006 Plan generally vest in four equal annual installments generally vest in four equal annual to employees under the 2006 Plan RSUs granted Time-based contingent upon and 2017 under the 2006 Plan vest RSUs granted in fiscal years 2016 Performance-based

Employee Stock Purchase Plans Dividend yield Risk-free interest rate Expected volatility Expected life (years) average grant date fair value per share Weighted Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note on continued be conditioned the 2006 Plan may under Awards stock and RSUs. rights, restricted appreciation as The 2006 Plan, vesting criteria. and market of performance of time or the satisfaction the passage employment, are ten years and terms not exceeding this plan have All stock options under date. has no expiration amended, 30.6 million An aggregate of the date of grant. market value on less than the fair exercise prices not issued at shares was total of 10.6 million 31, 2018, a As of March 2006 Plan. under the reserved for issuance shares was awards under this plan. available for new members under the 2006 Plan RSUs granted to non-executive board Time-based anniversary. on the grant date board if earlier and only if the non-executive or installment on the grant date anniversary, vest in one annual annual general meeting general meeting, the date of the next as a director at such annual member is not re-elected date. following the grant approximately three years. performance period of which is predetermined financial metrics, the the achievement of options end of the performance period. Market-based condition can be achieved before the The performance The number of meeting the Company's share price performance criteria. granted under the 2006 Plan vest upon 2017 at vesting for market-based RSUs granted in fiscal years 2016 and shares of common stock to be received the 0 percent to 150 percent of the target number of stock units based on under the 2006 Plan will range from for (TSR) relative to the performance of companies in the NASDAQ-100 Index Company's total stockholder return with over a three-year period. In fiscal year 2018, the Company granted RSUs each measurement period, generally meeting which vest at the end of the three-year performance period upon both performance and market conditions, three years, with the number of shares to be received upon vesting determined predetermined financial metrics over relative to the TSR currency revenue growth rate and the Company's based on weighted average constant The Company presents Index over the same three year period. performance of companies in the NASDAQ-100 of the target of the number of stock units that may potentially vest. shares granted and vested at 100 percent be conditioned on under the 2012 Plan may Awards with the Company. inducement to enter into employment on of time or the satisfaction of market stock performance criteria, based continued employment, the passage An aggregate of March 28, 2022. The 2012 Plan has an expiration date letter. individually written employment offer 2018, no shares were As of March 31, issuance under the 2012 Plan. of 1.8 million shares was reserved for plan. available for new awards under this future forfeitures, probability of employee exercise patterns, assumptions including stock price volatility, and the selection of an appropriate condition, dividend yield, related tax effects achievement of the set performance fair value model. and values: Monte-Carlo simulation method are determined with the following assumptions 4 65 800 (132) (132) 4,733 5,865 3,020 3,020 (5,214) (2,175) (5,214) (3,676) 10,385 (11,081) 2016 2017 2017 4 800 1,147 2017 (144) (144) 1,824 5,995 3,522 9,715 1,126 3,347 3,522 5,357 (1,202) (1,580) (1,202) (2,519) Years Ended March 31, Years Ended March 31, Years 2018 2018 Years Ended March 31, Years — (51) (117) (124) 242 1,032 1,854 1,126 $ 71,376 $ 65,279 $ 114,640 $ 120,473 $ 84,718 $ 71,376 $ 128,915 $ 114,640 (1,792) (1,724) (1,657) 2018 $ 9,715 $ 10,385 $ 10,117 $ 9,240 $ 10,380 $ 11,341 86 The changes in projected benefit obligations for fiscal years 2018 and 2017 were as follows (in thousands): The changes in projected benefit obligations for all defined benefit pension plans as of March 31, 2018 and 2017 was The accumulated benefit obligation pension plan assets for fiscal The following table presents the changes in the fair value of defined benefit All the amounts in this "Defined Benefit Plans" section include activities from both continuing and discontinued continuing and activities from both section include Benefit Plans" in this "Defined All the amounts post-employment and the non-retirement pension plans of the defined benefit benefit cost The net periodic Net prior service credit recognized Net prior service credit Net actuarial loss recognized Net actuarial loss Actual return on plan assets Employer contributions Plan participant contributions Benefits paid Service costs Interest costs Administrative expenses paid Currency exchange rate changes Plan participant contributions Actuarial gains Benefits paid change Plan amendment related to statutory Administrative expense paid Currency exchange rate changes Fair value of plan assets, beginning of the year Service costs Interest costs of the year Projected benefit obligations, beginning Fair value of plan assets, end of the year Expected return on plan assets Expected return on Amortization: Net transition obligation the year Projected benefit obligations, end of

$108.9 million and $94.3 million, respectively. $108.9 million and $94.3 million, respectively. years 2018 and 2017 (in thousands): Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note that period. not material for operations are from discontinued and the amounts for fiscal year 2016, operations follows (in thousands): and 2016 was as years 2018, 2017 for fiscal benefit obligations Fair Value Aggregate $ 22,823 $ 48,644 $ 81,582 1.4 $ 191,777 (Years) (In thousands) Average Weighted- Remaining Vesting Period Vesting Average Fair Value Weighted- Grant Date 356356 $ $ 14 13 160604 $ $ 15 15 409 $ 33 (820) (368) (333) $ 17 85 4,939 2,247 $ 13 5,521 2,390 $ 16 6,1811,212 $ $ 14 33 5,221 $ 20 86 (1,557) (2,126) (2,248) $ 14 Shares Number of (In thousands) The RSU outstanding as of March 31, 2018 above includes 1.4 million shares with market-based and The RSU outstanding as of March 31, from RSUs that vested during the fiscal years 2018, 2017 and The tax benefit realized for the tax deduction benefit plans covering all or a Certain of the Company's subsidiaries have defined contribution employee plans or non-retirement post- Certain of the Company's subsidiaries sponsor defined benefit pension benefit pension plans and non- The Company recognizes the overfunded or underfunded status of defined The tax benefit realized for the tax deduction from options exercised during the fiscal years 2018, 2017 and fiscal years 2018, during the from options exercised the tax deduction realized for The tax benefit for fiscal RSU activities performance-based market-based, and time-based, of the Company's summary A Granted—time-based Granted—market-based Granted - performance-based Vested Canceled or expired Granted—time-based Granted—market-based Granted - performance-based Vested Canceled or expired Granted—time-based based Granted—market and performance Vested Canceled or expired Outstanding, March 31, 2018 Outstanding, March 31, 2016 Outstanding, March 31, 2017 31, 2015 Outstanding, March performance-based vesting conditions. performance-based vesting conditions. and $5.1 million, respectively. 2016 was $20.3 million, $13.1 million Plans Defined Contribution for certain plans and are based on portion of their employees. Contributions to these plans are discretionary The charges to expense for these plans for fiscal years 2018, 2017 specified or statutory requirements for others. and 2016, were $7.6 million, $5.8 million and $6.8 million, respectively. Defined Benefit Plans are provided based on employees' years employment benefits covering substantially all of their employees. Benefits The Company's practice is regulations. of service and earnings, or in accordance with applicable employee benefit to meet the requirements set forth in the applicable employee benefit and tax regulations. to fund amounts sufficient its consolidated balance sheets and retirement post-employment benefit obligations as an asset or liability in in the year in which the changes occur recognizes changes in the funded status of defined benefit pension plans Each plan's of shareholders' equity. through accumulated other comprehensive income (loss), which is a component assets and benefit obligations are remeasured as of March 31 each year. Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note million, respectively. million and $1.2 $1.8 million, $4.2 2016 was all the periods presented): operations for discontinued is as follows (including 2017 and 2016 years 2018,

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 4 65 800 (132) (132) 3,020 4,733 5,865 3,020 (5,214) (2,175) (5,214) (3,676) 10,385 (11,081) 2016 2017 2017 4 800 1,147 2017 (144) (144) 9,715 1,824 1,126 3,522 5,995 3,522 3,347 5,357 (1,580) (1,202) (1,202) (2,519) Years Ended March 31, Years Years Ended March 31, Years 2018 2018 Years Ended March 31, Years — (51) (117) (124) 242 1,032 1,854 1,126 $ 114,640 $ 120,473 $ 71,376 $ 65,279 $ 84,718 $ 71,376 $ 128,915 $ 114,640 (1,792) (1,724) (1,657) 2018 $ 9,715 $ 10,385 $ 10,117 $ 9,240 $ 10,380 $ 11,341 87 86 The changes in projected benefit obligations for fiscal years 2018 and 2017 were as follows (in thousands): The changes in projected benefit obligations All the amounts in this "Defined Benefit Plans" section include activities from both continuing and discontinued continuing and activities from both section include Benefit Plans" in this "Defined All the amounts post-employment and the non-retirement pension plans of the defined benefit benefit cost The net periodic The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2018 and 2017 was for all defined benefit pension plans as of March 31, 2018 and 2017 was The accumulated benefit obligation pension plan assets for fiscal The following table presents the changes in the fair value of defined benefit Net prior service credit recognized Net prior service credit recognized Net actuarial loss Service costs Actual return on plan assets Interest costs Plan participant contributions Actuarial gains Employer contributions Plan participant contributions Benefits paid Administrative expenses paid Currency exchange rate changes Benefits paid change Plan amendment related to statutory Administrative expense paid Currency exchange rate changes

Fair value of plan assets, beginning of the year

of the year Projected benefit obligations, beginning Service costs Interest costs plan assets Expected return on Amortization: Net transition obligation Fair value of plan assets, end of the year Projected benefit obligations, end of the year Projected benefit obligations, end of Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note that period. not material for operations are from discontinued and the amounts for fiscal year 2016, operations follows (in thousands): and 2016 was as years 2018, 2017 for fiscal benefit obligations $108.9 million and $94.3 million, respectively. $108.9 million and $94.3 million, respectively. years 2018 and 2017 (in thousands): Fair Value Aggregate $ 22,823 $ 48,644 $ 81,582 1.4 $ 191,777 (Years) (In thousands) Average Weighted- Remaining Vesting Period Vesting Average Fair Value Weighted- Grant Date 356356 $ $ 14 13 160604 $ $ 15 15 409 $ 33 (820) (368) (333) $ 17 85 4,939 2,247 $ 13 5,521 2,390 $ 16 6,1811,212 $ $ 14 33 5,221 $ 20 (1,557) (2,126) (2,248) $ 14 Shares Number of (In thousands) The tax benefit realized for the tax deduction from options exercised during the fiscal years 2018, 2017 and fiscal years 2018, during the from options exercised the tax deduction realized for The tax benefit for fiscal RSU activities performance-based market-based, and time-based, of the Company's summary A 2018 above includes 1.4 million shares with market-based and The RSU outstanding as of March 31, from RSUs that vested during the fiscal years 2018, 2017 and The tax benefit realized for the tax deduction benefit plans covering all or a Certain of the Company's subsidiaries have defined contribution employee plans or non-retirement post- Certain of the Company's subsidiaries sponsor defined benefit pension benefit pension plans and non- The Company recognizes the overfunded or underfunded status of defined Granted—time-based Granted—market-based Granted - performance-based Vested Canceled or expired Granted—time-based Granted—market-based Granted - performance-based Vested Canceled or expired Granted—time-based based Granted—market and performance Vested Canceled or expired Outstanding, March 31, 2018 31, 2015 Outstanding, March Outstanding, March 31, 2016 Outstanding, March 31, 2017 Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note million, respectively. million and $1.2 $1.8 million, $4.2 2016 was all the periods presented): operations for discontinued is as follows (including 2017 and 2016 years 2018, performance-based vesting conditions. and $5.1 million, respectively. 2016 was $20.3 million, $13.1 million Plans Defined Contribution for certain plans and are based on portion of their employees. Contributions to these plans are discretionary The charges to expense for these plans for fiscal years 2018, 2017 specified or statutory requirements for others. and 2016, were $7.6 million, $5.8 million and $6.8 million, respectively. Defined Benefit Plans are provided based on employees' years employment benefits covering substantially all of their employees. Benefits The Company's practice is regulations. of service and earnings, or in accordance with applicable employee benefit to meet the requirements set forth in the applicable employee benefit and tax regulations. to fund amounts sufficient its consolidated balance sheets and retirement post-employment benefit obligations as an asset or liability in in the year in which the changes occur recognizes changes in the funded status of defined benefit pension plans Each plan's of shareholders' equity. through accumulated other comprehensive income (loss), which is a component assets and benefit obligations are remeasured as of March 31 each year. (4) 95 2016 2017 Year Ending Year March 31, 2019 $$ (381) (286) — 2017 March 31, Years Ended March 31, Years 2018 — 1.0%-2.5% 1.0%-2.75% 0.85%-7.5% 0.75%-7.00% 0.75%-7.00%2.5%-10.00% 0.5%-8.00% 2.5%-10.00% 2.25%-10.00% 2.5%-10.00% (420) (347) (168) (9,821)(5,978) (11,407) (10,133) (27,612) (26,003) 2018 $ 3,843 $ 1,274 $$ (6,398) 1,613 $ (10,480) $ (26,171) 88 The Company reassesses its benefit plan assumptions on a regular basis. The actuarial assumptions for the The plan assumptions on a regular basis. The Company reassesses its benefit of similar quality in the respective The discount rate is estimated based on corporate bond yields or securities Amounts recognized in accumulated other comprehensive loss related to defined benefit pension plans were benefit pension related to defined loss other comprehensive recognized in accumulated Amounts The following table presents the amounts included in accumulated other comprehensive loss as of March 31, accumulated other comprehensive presents the amounts included in The following table Accumulated other comprehensive loss Accumulated other comprehensive loss, net of tax Accumulated other

Net prior service credits Net actuarial loss Net transition obligation Deferred tax benefit Amortization of net prior service credits Amortization of net actuarial loss Benefit Obligations: Discount rate Estimated rate of compensation increase Periodic Costs: Discount rate Estimated rate of compensation increase Expected average rate of return on plan assets

2018, which are expected to be recognized as a component of net periodic benefit cost in fiscal year 2019 (in of net periodic benefit cost to be recognized as a component 2018, which are expected thousands): 2018 and 2017 were as follows: defined benefit plans for fiscal years The are expected to be paid. with a duration approximating the period over which the benefit obligations country, The experience and future expectations. Company bases the compensation increase assumptions on historical plans represents the average rate of expected average rate of return for the Company's defined benefit pension obligations are expected to be paid, return expected to be earned on plan assets over the period that the benefit adjusted for corporate risk premiums as appropriate. based on government bond notes in the respective country, Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note (in thousands): as follows (41,998) 114,640 2017 2017 2017 March 31, (42,434) 128,915 Years Ended March 31, Years 2018 2018 March 31, $ (1,763) $ (1,266) $ (44,197) $ (43,264) $ 84,718 $ 71,376 $ (44,197) $ (43,264) — 12,096 9,699 — 9,699 — 25,150 22,373 — 22,373 — 26,204 20,985 — 20,985 2018 $ 314 $ 84,718 $ 67,575 $ 3,801 $ 71,376 $ 24 $ 18,355 $ 11,864 $ 46 $ 11,910 —— — 32 — 32 — — 3,507 61 3,507 61 87 88 2,623 258 2,881 2,654 187 2,841 12,096 84,404 25,150 18,331 26,204 Level 1 Level 2 Total Level 1 Level 2 Total $ $ The funded status of the plans was as follows (in thousands): The funded status of the plans was Amounts recognized on the balance sheet for the plans were as follows (in thousands): Amounts recognized on the balance The Company's investment objectives are to ensure that the assets of its defined benefit plans are invested to benefit plans are of its defined ensure that the assets objectives are to investment The Company's major categories and benefit pension plan assets by present the fair value of the defined The following tables Net liabilities Hedge funds Insurance contracts Other Swiss real estate funds Current liabilities Debt securities Non-current liabilities Cash and cash equivalents Equity securities

Less: projected benefit obligations Fair value of plan assets Underfunded status Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note of a with the assumption portfolio, consistent on the total investment return optimal rate of investment provide an as they plans' benefit obligations to meet the funds are available to ensure that pension risk level, and reasonable attainable result in the highest portfolio will investment believes that a well-diversified The Company become due. are also and allocation decisions strategies overall risk. Investment level of return with an acceptable investment respect to its strategy with Company's investment The agencies. regulatory by applicable governmental governed following allocation Swiss employees, is to invest in the plan, which is available only to largest defined benefit The equivalents. and 5.0-15.0% for cash and cash for equities, 29.0-39.0% for bonds, ranges: 29.5-36.5% upon economic funds, and hedge funds depending invest in real estate funds, commodity Company also can conditions. 2018 and 2017 (in thousands): fair value hierarchy as of March 31, by levels within the

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 (4) 95 2016 2017 Year Ending Year March 31, 2019 $$ (381) (286) — 2017 March 31, Years Ended March 31, Years 2018 — 1.0%-2.5% 1.0%-2.75% 0.85%-7.5% 0.75%-7.00% 0.75%-7.00%2.5%-10.00% 0.5%-8.00% 2.5%-10.00% 2.25%-10.00% 2.5%-10.00% (420) (347) (168) (5,978) (10,133) (26,003) (9,821) (11,407) (27,612) 2018 $ (6,398) $ (10,480) $ (26,171) $ 3,843 $ 1,274 $ 1,613 89 88 The Company reassesses its benefit plan assumptions on a regular basis. The actuarial assumptions for the The plan assumptions on a regular basis. The Company reassesses its benefit of similar quality in the respective The discount rate is estimated based on corporate bond yields or securities Amounts recognized in accumulated other comprehensive loss related to defined benefit pension plans were benefit pension related to defined loss other comprehensive recognized in accumulated Amounts The following table presents the amounts included in accumulated other comprehensive loss as of March 31, accumulated other comprehensive presents the amounts included in The following table Accumulated other comprehensive loss, net of tax Accumulated other Accumulated other comprehensive loss Accumulated other Discount rate Deferred tax benefit Amortization of net actuarial loss Benefit Obligations: Discount rate Estimated rate of compensation increase Periodic Costs: Estimated rate of compensation increase Expected average rate of return on plan assets

Amortization of net prior service credits Net prior service credits Net actuarial loss Net transition obligation

2018, which are expected to be recognized as a component of net periodic benefit cost in fiscal year 2019 (in of net periodic benefit cost to be recognized as a component 2018, which are expected thousands): defined benefit plans for fiscal years 2018 and 2017 were as follows: defined benefit plans for fiscal years The are expected to be paid. with a duration approximating the period over which the benefit obligations country, The experience and future expectations. Company bases the compensation increase assumptions on historical plans represents the average rate of expected average rate of return for the Company's defined benefit pension obligations are expected to be paid, return expected to be earned on plan assets over the period that the benefit adjusted for corporate risk premiums as appropriate. based on government bond notes in the respective country, Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note (in thousands): as follows (41,998) 114,640 2017 2017 2017 March 31, (42,434) 128,915 Years Ended March 31, Years 2018 2018 March 31, $ (1,763) $ (1,266) $ (44,197) $ (43,264) $$ 84,718 $ (44,197) $ 71,376 (43,264) —— 26,204— 25,150 20,985 12,096 22,373 9,699 — — 20,985 — 22,373 9,699 2018 $ 24 $ 18,355 $ 11,864 $ 46 $ 11,910 $ 314 $ 84,718 $ 67,575 $ 3,801 $ 71,376 —— — 32 — 32 — — 3,507 61 3,507 61 87 2,623 258 2,881 2,654 187 2,841 18,331 26,204 25,150 12,096 84,404 Level 1 Level 2 Total Level 1 Level 2 Total $ $ The Company's investment objectives are to ensure that the assets of its defined benefit plans are invested to benefit plans are of its defined ensure that the assets objectives are to investment The Company's major categories and benefit pension plan assets by present the fair value of the defined The following tables as follows (in thousands): The funded status of the plans was sheet for the plans were as follows (in thousands): Amounts recognized on the balance Net liabilities Current liabilities Non-current liabilities Cash and cash equivalents Equity securities Debt securities Swiss real estate funds Hedge funds Insurance contracts Other

Fair value of plan assets Less: projected benefit obligations Underfunded status Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note of a with the assumption portfolio, consistent on the total investment return optimal rate of investment provide an as they plans' benefit obligations to meet the funds are available to ensure that pension risk level, and reasonable attainable result in the highest portfolio will investment believes that a well-diversified The Company become due. are also and allocation decisions strategies overall risk. Investment level of return with an acceptable investment respect to its strategy with Company's investment The agencies. regulatory by applicable governmental governed following allocation Swiss employees, is to invest in the plan, which is available only to largest defined benefit The equivalents. and 5.0-15.0% for cash and cash for equities, 29.0-39.0% for bonds, ranges: 29.5-36.5% upon economic funds, and hedge funds depending invest in real estate funds, commodity Company also can conditions. 2018 and 2017 (in thousands): fair value hierarchy as of March 31, by levels within the — 864 947 257 2016 2016 2 1,514 — 654 2017 2017 Years Ended March 31, Years Years Ended March 31, Years (10) 533 1,024 1,835 7,055 (2,595) 4,024 3,627 (5,570) (8,761) (9,611)(4,124) (5,247)(9,376) (2,309) (2,713) 1,794 (1,619) 1,446 (1,219) 491 13,142 9,774 (2,582) 22,325 2018 2018 $ 3,526 $ 1,934 $ 1,668 $ 19,743 $ 18,274 $ 11,175 $ 23,723 $ 9,113 $ 3,110 $ 23,723 $ 9,113 $ 3,110 90 The difference between the provision for income taxes and the expected tax provision at the statutory income expected tax provision at the statutory provision for income taxes and the between the The difference The provision for (benefit from) income taxes is summarized as follows (in thousands): is summarized as income taxes for (benefit from) The provision Provision for income taxes Provision for income Swiss Non-Swiss Non-Swiss Provision for income taxes Current: Deferred: income tax rates Expected tax provision at statutory rates Income taxes at different Research and development tax credits Executive compensation Stock-based compensation Act Tax from Deferred tax effects

Valuation allowance Valuation Restructuring charges / (credits) reserves (releases), net Tax net Other,

tax rate of 8.5% is reconciled below (in thousands): tax rate of 8.5% is Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note 7,701 7,046 7,341 7,064 38,546 2016 2016 $ 7,199 $ 74,897 165 (122) 2017 2017 Years Ended March 31, Years Years Ended March 31, Years 790 54,330 53,445 50,900 (4,613) 169 2,110 2018 2018 $ 232,265 $ 214,989 $ 131,472 $ 177,935 $ 161,544 $ 80,572 $ (2,437) $ 1,677 $ 1,624 89 90 The Company $5.7 million expects to contribute to its defined benefit pension plans during fiscal year 2019. plan that permits eligible employees to a deferred compensation offers One of the Company's subsidiaries on consist of marketable securities and are included in other assets The deferred compensation plan's assets of the following (in thousands): Other income (expense), net comprises tax laws and rates. with differing The Company is incorporated in Switzerland but operates in various countries summarized is 2016 and 2017 2018, years fiscal the for taxes income before operations continuing from Income The following table reflects the benefit payments that the Company expects the plans to pay in the periods plans to pay in the expects the that the Company the benefit payments table reflects The following Income before taxes Other income (expense), net Non-Swiss Swiss 2020 Years Ending March 31, Years 2019 2021 2022 2023 2024-2028 Deferred Compensation Plan Deferred Compensation does not The Company compensation deferrals within established limits. make 100% vested salary and incentive make contributions to the plan. as trading investments and were recorded The marketable securities are classified the consolidated balance sheets. based on quoted million as of March 31, 2018 and 2017, respectively, at a fair value of $17.7 million and $15.0 million and $15.0 million in deferred compensation liability as of The Company also had $17.7 market prices. trading investments are included in other Earnings, gains and losses on March 31, 2018 and 2017, respectively. changes in deferred compensation liability are included in operating income (expense), net and corresponding expenses and cost of goods sold. net Note 7—Other Income (Expense), Note 8—Income Taxes of the Company's income (loss) before taxes and the provision for (benefit from) income taxes is a portion Further, generated outside of Switzerland. as follows (in thousands): Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note thousands): noted (in

Investment income (loss) related to a deferred compensation planInvestment income (loss) related to Currency exchange gain (loss), net $Other 1,386 $ 1,343 $ (364)

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 — 864 947 257 2016 2016 2 1,514 — 654 2017 2017 Years Ended March 31, Years Ended March 31, Years (10) 533 1,024 1,835 3,627 (5,570) (8,761) 7,055 (2,595) 4,024 (9,611)(4,124) (5,247)(9,376) (2,309) (2,713) 1,794 (1,619) 1,446 (1,219) 491 22,325 13,142 9,774 (2,582) 2018 2018 $ 19,743 $ 18,274 $ 11,175 $ 3,526 $ 1,934 $ 1,668 $ 23,723 $ 9,113 $ 3,110 $ 23,723 $ 9,113 $ 3,110 91 90

The difference between the provision for income taxes and the expected tax provision at the statutory income expected tax provision at the statutory provision for income taxes and the between the The difference The provision for (benefit from) income taxes is summarized as follows (in thousands): is summarized as income taxes for (benefit from) The provision Provision for income taxes Provision for income Swiss Non-Swiss Non-Swiss Provision for income taxes rates Income taxes at different Research and development tax credits Executive compensation Stock-based compensation Act Tax from Deferred tax effects income tax rates Expected tax provision at statutory Current: allowance Valuation Deferred: Restructuring charges / (credits) reserves (releases), net Tax net Other, Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note tax rate of 8.5% is reconciled below (in thousands): tax rate of 8.5% is 7,701 7,046 7,341 7,064 38,546 2016 2016 $ 7,199 $ 74,897 165 (122) 2017 2017 Years Ended March 31, Years Years Ended March 31, Years 790 54,330 53,445 50,900 (4,613) 169 2,110 2018 2018 $ 232,265 $ 214,989 $ 131,472 $ 177,935 $ 161,544 $ 80,572 $ (2,437) $ 1,677 $ 1,624 89 The following table reflects the benefit payments that the Company expects the plans to pay in the periods plans to pay in the expects the that the Company the benefit payments table reflects The following plan that permits eligible employees to a deferred compensation offers One of the Company's subsidiaries on consist of marketable securities and are included in other assets The deferred compensation plan's assets of the following (in thousands): Other income (expense), net comprises tax laws and rates. with differing The Company is incorporated in Switzerland but operates in various countries summarized is 2016 and 2017 2018, years fiscal the for taxes income before operations continuing from Income The Company $5.7 million expects to contribute to its defined benefit pension plans during fiscal year 2019. Income before taxes Other income (expense), net Swiss Non-Swiss Years Ending March 31, Years 2019 2020 2021 2022 2023 2024-2028 Note 6—Employee Benefit Plans (Continued) Plans Benefit 6—Employee Note thousands): noted (in Plan Deferred Compensation does not The Company compensation deferrals within established limits. make 100% vested salary and incentive make contributions to the plan. as trading investments and were recorded The marketable securities are classified the consolidated balance sheets. based on quoted million as of March 31, 2018 and 2017, respectively, at a fair value of $17.7 million and $15.0 million and $15.0 million in deferred compensation liability as of The Company also had $17.7 market prices. trading investments are included in other Earnings, gains and losses on March 31, 2018 and 2017, respectively. changes in deferred compensation liability are included in operating income (expense), net and corresponding expenses and cost of goods sold. net Note 7—Other Income (Expense), Note 8—Income Taxes of the Company's income (loss) before taxes and the provision for (benefit from) income taxes is a portion Further, generated outside of Switzerland. as follows (in thousands):

a deferred compensation planInvestment income (loss) related to Currency exchange gain (loss), net $Other 1,386 $ 1,343 $ (364) 92 The Company had a valuation allowance of $25.1 million at March 31, 2018, increased from $6.6 million at from $6.6 31, 2018, increased $25.1 million at March allowance of had a valuation The Company for income tax operating loss and tax credit carryforwards the Company had foreign net As of March 31, 2018, withholding taxes associated with the repatriation of earnings or for other Swiss income taxes and non-Swiss first step The in recognizing and measuring uncertain tax positions. The Company follows a two-step approach tax 2017, the total amount of unrecognized tax benefits due to uncertain As of March 31, 2018 and March 31, had $35.0 million in non-current income taxes payable, including interest As of March 31, 2018, the Company Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note 2016-09 on ASU of the adoption tax assets upon increase for deferred to $18.0 million 2017 primarily due March 31, million to $11.6 million and added allowance of $6.4 federal valuation adoption generated The April 1, 2017. by subsequently reduced allowance was The federal valuation States. in the United valuation allowance California of allowance had a valuation The Company credits. Act against tax Tax of the from the assessment $4.1 million from $5.9 an increase in the state of California, tax assets 2018 against deferred as of March 31, $22.1 million Tax and impact from the ASU 2016-09 described above of 31, 2017 primarily due to the adoption million as of March tax represents $0.7 million for various remaining valuation allowance primarily The of $3.5 million. Act in the amount not generate likely than not that the Company would determined that it is more The Company credit carryforwards. tax assets. the future to utilize such deferred taxable income in sufficient expire at various dates in net operating loss carryforwards will million and $50.5 million. Unused purposes of $217.1 relate to acquisitions and, carryforwards in the United States to 2038. Certain net operating loss fiscal years 2019 will begin to The tax credit carryforwards in any one year. in the amount that can be utilized as a result, are limited 2020. expire in fiscal year the Company as in non-Swiss subsidiaries have not been provided for, related to investments temporary differences subsidiaries indefinitely or the Company has concluded that no additional intends to reinvest the earnings of such in the of such earnings. If these earnings were distributed to Switzerland tax liability would arise on the distribution the shares of the relevant non-Swiss subsidiaries were sold or otherwise form of dividends or otherwise, or if As of to additional Swiss income taxes and non-Swiss withholding taxes. transferred, the Company may be subject taxes of unremitted earnings of non-Swiss subsidiaries for which no income March 31, 2018, the cumulative amount deferred income tax liability related The amount of unrecognized $90.4 million. have been provided is approximately approximately $0.6 million. to these earnings is estimated to be it is by determining if the weight of available evidence indicates that is to evaluate the tax position for recognition will be sustained on audit, including resolution of related appeals or litigation more likely than not that the position benefit as the largest amount that is more than 50% likely The second step is to measure the tax processes, if any. of being realized upon ultimate settlement. rate if income tax the effective all of which would affect million, respectively, positions was $69.1 million and $63.7 recognized. As of March 31, 2017, the income tax liability for uncertain tax positions. and penalties, related to the Company's million in current income taxes payable, Company had $51.8 million in non-current income taxes payable and $1.5 The for uncertain tax positions. including interest and penalties, related to the Company's income tax liability tax authorities in a foreign jurisdiction in the Company applied to a settlement program and paid $1.9 million to the settled in the fourth quarter. The audit was effectively third quarter of fiscal year 2018.

5,825 2,860 (6,626) (4,267) (4,267) 41,570 11,846 66,407 59,781 2017

March 31, 1,505 7,479 (4,827) (4,827) 45,421 42,765 87,498 (25,148) 112,646 2018 $ 15,476 $ 4,306 $ 82,671 $ 55,514 91 92 Deferred tax assets, net Deferred income tax assets and liabilities consist of the following (in thousands): of the following and liabilities consist income tax assets Deferred Management regularly assesses the ability to realize deferred tax assets recorded in the Company's entities Management regularly assesses the ability to realize deferred tax assets ASC 740 requires recognition of the effects of tax law changes in the period of enactment. The Company period of enactment. of tax law changes in the effects ASC 740 requires recognition of the of approximately $35.0 million and The net provisional charge from remeasuring gross deferred tax assets Gross deferred tax assets after valuation allowance Gross deferred tax Gross deferred tax liabilities Gross deferred tax assets Gross deferred tax On December 22, 2017, the Tax Act was signed into law in the United States. The Tax Act introduced a broad Tax The Act was signed into law in the United States. Tax On December 22, 2017, the Net operating loss carryforwards Net operating loss credit carryforwards Tax Accruals Depreciation and amortization Depreciation and Share-based compensation Acquired intangible assets and other Valuation allowance Valuation tax assets: Deferred Deferred tax liabilities: Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note range of tax reform measures that significantly change the federal income tax regime. Among other things, the Tax Tax Among other things, the change the federal income tax regime. range of tax reform measures that significantly for tax years including or income tax rate from 35% to 21% effective Act permanently reduces the corporate corporate alternative minimum tax, limits various business deductions commencing on January 1, 2018, repeals with no IRC 162(m), modifies the maximum deduction of net operating loss such as executive compensation under tax on Act enacted a transition Tax provision. On the international front, the carryback but indefinite carryforward The United States owned foreign subsidiaries and various other provisions. applicable accumulated earnings of Act are Tax in the Many provisions are not applicable to the Company. majority of the international provisions 31, 2017. in tax years beginning after December generally effective at the beginning rate of 31.6% to its operations in the United States effective applied a blended federal income tax percentage of the number of days before and after January 1, 2018. of the fiscal year based on a pro-rated million in a provisional income tax charge net of valuation allowance of $21.7 Furthermore, the Company recorded 21%. at tax effects fiscal year 2018 to remeasure the deferred and interpretations which are assessment of valuation allowance is based on currently available information The Company continues to analyze additional information and guidance related to certain continuing to evolve. by Act, such as limitations on the deductibility of executive compensation, conformity or changes Tax aspects of the Act, and the final determination of the net deferred tax assets subject Tax state taxing authorities in response to the The prospects of allowance. to the remeasurement and related impacts to the assessment of valuation Act, or evolving Tax that arise because of the supplemental legislation or regulatory processes to address questions from the recorded Act to differ Tax may cause the final impact from the technical interpretations of the tax law, is no later than the third quarter of fiscal year SAB No.118 The measurement period allowed by Staff amounts. 2019. recent earnings history and expected future based upon the weight of available evidence, including such factors as as to the amount of deferred tax assets taxable income. In the event that the Company changes its determination a corresponding impact to the provision that can be realized, the Company will adjust its valuation allowance with for income taxes in the period in which such determination is made.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 93 92

The Company had a valuation allowance of $25.1 million at March 31, 2018, increased from $6.6 million at from $6.6 31, 2018, increased $25.1 million at March allowance of had a valuation The Company for income tax operating loss and tax credit carryforwards the Company had foreign net As of March 31, 2018, withholding taxes associated with the repatriation of earnings or for other Swiss income taxes and non-Swiss first step The in recognizing and measuring uncertain tax positions. The Company follows a two-step approach tax 2017, the total amount of unrecognized tax benefits due to uncertain As of March 31, 2018 and March 31, had $35.0 million in non-current income taxes payable, including interest As of March 31, 2018, the Company Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note 2016-09 on ASU of the adoption tax assets upon increase for deferred to $18.0 million 2017 primarily due March 31, million to $11.6 million and added allowance of $6.4 federal valuation adoption generated The April 1, 2017. by subsequently reduced allowance was The federal valuation States. in the United valuation allowance California of allowance had a valuation The Company credits. Act against tax Tax of the from the assessment $4.1 million from $5.9 an increase in the state of California, tax assets 2018 against deferred as of March 31, $22.1 million Tax and impact from the ASU 2016-09 described above of 31, 2017 primarily due to the adoption million as of March tax represents $0.7 million for various remaining valuation allowance primarily The of $3.5 million. Act in the amount not generate likely than not that the Company would determined that it is more The Company credit carryforwards. tax assets. the future to utilize such deferred taxable income in sufficient expire at various dates in net operating loss carryforwards will million and $50.5 million. Unused purposes of $217.1 relate to acquisitions and, carryforwards in the United States to 2038. Certain net operating loss fiscal years 2019 will begin to The tax credit carryforwards in any one year. in the amount that can be utilized as a result, are limited 2020. expire in fiscal year the Company as in non-Swiss subsidiaries have not been provided for, related to investments temporary differences subsidiaries indefinitely or the Company has concluded that no additional intends to reinvest the earnings of such in the of such earnings. If these earnings were distributed to Switzerland tax liability would arise on the distribution the shares of the relevant non-Swiss subsidiaries were sold or otherwise form of dividends or otherwise, or if As of to additional Swiss income taxes and non-Swiss withholding taxes. transferred, the Company may be subject taxes of unremitted earnings of non-Swiss subsidiaries for which no income March 31, 2018, the cumulative amount deferred income tax liability related The amount of unrecognized $90.4 million. have been provided is approximately approximately $0.6 million. to these earnings is estimated to be it is by determining if the weight of available evidence indicates that is to evaluate the tax position for recognition will be sustained on audit, including resolution of related appeals or litigation more likely than not that the position benefit as the largest amount that is more than 50% likely The second step is to measure the tax processes, if any. of being realized upon ultimate settlement. rate if income tax the effective all of which would affect million, respectively, positions was $69.1 million and $63.7 recognized. As of March 31, 2017, the income tax liability for uncertain tax positions. and penalties, related to the Company's million in current income taxes payable, Company had $51.8 million in non-current income taxes payable and $1.5 The for uncertain tax positions. including interest and penalties, related to the Company's income tax liability tax authorities in a foreign jurisdiction in the Company applied to a settlement program and paid $1.9 million to the settled in the fourth quarter. The audit was effectively third quarter of fiscal year 2018.

5,825 2,860 (6,626) (4,267) (4,267) 41,570 11,846 66,407 59,781 2017

March 31, 1,505 7,479 (4,827) (4,827) 45,421 42,765 87,498 (25,148) 112,646 2018 $ 15,476 $ 4,306 $ 82,671 $ 55,514 91 Deferred tax assets, net Deferred income tax assets and liabilities consist of the following (in thousands): of the following and liabilities consist income tax assets Deferred Management regularly assesses the ability to realize deferred tax assets recorded in the Company's entities Management regularly assesses the ability to realize deferred tax assets ASC 740 requires recognition of the effects of tax law changes in the period of enactment. The Company period of enactment. of tax law changes in the effects ASC 740 requires recognition of the of approximately $35.0 million and The net provisional charge from remeasuring gross deferred tax assets Gross deferred tax assets Gross deferred tax assets after valuation allowance Gross deferred tax Gross deferred tax liabilities On December 22, 2017, the Tax Act was signed into law in the United States. The Tax Act introduced a broad Tax The Act was signed into law in the United States. Tax On December 22, 2017, the Net operating loss carryforwards Net operating loss credit carryforwards Tax Accruals Depreciation and amortization Depreciation and Share-based compensation Valuation allowance Valuation Acquired intangible assets and other tax assets: Deferred Deferred tax liabilities: Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note range of tax reform measures that significantly change the federal income tax regime. Among other things, the Tax Tax Among other things, the change the federal income tax regime. range of tax reform measures that significantly for tax years including or income tax rate from 35% to 21% effective Act permanently reduces the corporate corporate alternative minimum tax, limits various business deductions commencing on January 1, 2018, repeals with no IRC 162(m), modifies the maximum deduction of net operating loss such as executive compensation under tax on Act enacted a transition Tax provision. On the international front, the carryback but indefinite carryforward The United States owned foreign subsidiaries and various other provisions. applicable accumulated earnings of Act are Tax in the Many provisions are not applicable to the Company. majority of the international provisions 31, 2017. in tax years beginning after December generally effective at the beginning rate of 31.6% to its operations in the United States effective applied a blended federal income tax percentage of the number of days before and after January 1, 2018. of the fiscal year based on a pro-rated million in a provisional income tax charge net of valuation allowance of $21.7 Furthermore, the Company recorded 21%. at tax effects fiscal year 2018 to remeasure the deferred and interpretations which are assessment of valuation allowance is based on currently available information The Company continues to analyze additional information and guidance related to certain continuing to evolve. by Act, such as limitations on the deductibility of executive compensation, conformity or changes Tax aspects of the Act, and the final determination of the net deferred tax assets subject Tax state taxing authorities in response to the The prospects of allowance. to the remeasurement and related impacts to the assessment of valuation Act, or evolving Tax that arise because of the supplemental legislation or regulatory processes to address questions from the recorded Act to differ Tax may cause the final impact from the technical interpretations of the tax law, is no later than the third quarter of fiscal year SAB No.118 The measurement period allowed by Staff amounts. 2019. recent earnings history and expected future based upon the weight of available evidence, including such factors as as to the amount of deferred tax assets taxable income. In the event that the Company changes its determination a corresponding impact to the provision that can be realized, the Company will adjust its valuation allowance with for income taxes in the period in which such determination is made.

(607) 2,798 4,997 85,408 57,303 15,043 10,776 88,119 72,073 10,537 30,582 23,132 18,600 41,732 58,881 27,812 72,441 (18,800) (28,022) (60,857) 395,754 185,179 222,819 253,401 176,291 335,425 (102,289) (263,352) 2017

March 31, (122) 2,871 5,908 86,304 $ 84,651 $ 17,748 12,448 72,404 11,029 33,603 $ 29,477 $ 26,885 56,362 $ 60,747 $ 22,752 65,723 (25,515) (30,389) (70,592) 482,872 $ 120,755 $ 214,885 $ 226,303 259,906 $ 183,466 332,688 (141,369) (260,284) 2018 $ $ $ $ $ $ $ $ $ $ 94 The following table presents the components of certain balance sheet asset amounts as of March 31, 2018 as of March sheet asset amounts of certain balance the components table presents The following Less accumulated depreciation and amortization Less accumulated depreciation and Accounts receivable accounts Allowance for doubtful Deferred tax assets (2) investments for deferred compensation plan Trading Investment in privately held companies Other assets Allowance for sales returns Allowance for sales Allowance for cooperative marketing arrangements (1) Allowance for cooperative incentive programs (1) Allowance for customer programs (1) Allowance for pricing Construction-in-process Land Raw materials Finished goods tax receivables Value-added Prepaid expenses and other assets Plant, buildings and improvements Equipment and tooling Computer equipment Software Accounts receivable: Other assets: Inventories: Other current assets: plant and equipment, net: Property,

Note 9—Balance Sheet Components Sheet 9—Balance Note (in thousands): and 2017 (704) 7,876 9,559 (1,502) (1,610) (7,505) 13,673 (15,518) (14,161) $ 79,023 $ 69,879 $ 63,667 $ 69,131 93 94 The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense. penalties related to unrecognized tax positions in income tax expense. The Company recognizes interest and received final tax assessments in Switzerland The Company tax returns. The Company files Swiss and foreign provided for uncertain tax positions, the provisions on these positions Although the Company has adequately The aggregate changes in gross unrecognized tax benefits in fiscal years 2018, 2017 and 2016 were as 2017 and 2016 were fiscal years 2018, tax benefits in gross unrecognized changes in The aggregate Lapse of statute of limitations Lapse of during prior years related to tax positions taken Decreases in balances the year related to tax positions taken during Increases in balances limitations Lapse of statute of during prior years related to tax positions taken Decreases in balances the year related to tax positions taken during Increases in balances limitations Lapse of statute of Settlements with tax authorities positions taken during the year Increases in balances related to tax March 31, 2016 March 31, 2017 March 31, 2018 March 31, 2015 March 31, The Company recognized $0.6 million, $0.7 million and $0.3 million in interest and penalties in income tax expense $0.7 million and $0.3 million in interest and penalties in income tax The Company recognized $0.6 million, and 2016, the Company had As of March 31, 2018, 2017 2016, respectively. during fiscal years 2018, 2017 and of accrued interest and penalties related to uncertain tax positions, $2.3 million, $3.0 million and $3.6 million respectively. not foreign jurisdictions such as the United States, the Company is generally through fiscal year 2014. For other The Company is under examination and has received prior to fiscal year 2015. subject to tax examinations for years there is a possibility If the examinations are resolved unfavorably, assessment notices in foreign tax jurisdictions. impact on its results of operations. they may have a material negative the made or the underlying matters are settled or otherwise resolved. During may change as revised estimates are that the amount of unrecognized tax benefits could increase or decrease next 12 months, it is reasonably possible significantly due to changes jurisdictions, new tax audits and changes in the U.S. Dollar as in tax law in various as these factors, uncertain tax positions may decrease by as much compared to other currencies. Excluding $21.9 million during the next 12 months. primarily from the lapse of the statutes of limitations in various jurisdictions Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note thousands): follows (in

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018

(607) 2,798 4,997 30,582 23,132 18,600 41,732 58,881 27,812 72,441 72,073 10,537 85,408 57,303 15,043 10,776 88,119 (18,800) (28,022) (60,857) 395,754 185,179 222,819 253,401 176,291 335,425 (102,289) (263,352) 2017

March 31, (122) 2,871 5,908 33,603 $ 29,477 $ 60,747 $ 22,752 84,651 $ 26,885 56,362 $ 65,723 72,404 11,029 17,748 12,448 86,304 $ (25,515) (30,389) (70,592) 482,872 $ 214,885 $ 259,906 $ 226,303 183,466 332,688 120,755 $ (141,369) (260,284) 2018 $ $ $ $ $ $ $ $ $ $ 95 94 The following table presents the components of certain balance sheet asset amounts as of March 31, 2018 as of March sheet asset amounts of certain balance the components table presents The following Less accumulated depreciation and amortization Less accumulated depreciation and Accounts receivable accounts Allowance for doubtful returns Allowance for sales marketing arrangements (1) Allowance for cooperative incentive programs (1) Allowance for customer programs (1) Allowance for pricing Raw materials tax receivables Value-added Plant, buildings and improvements Computer equipment Deferred tax assets (2) Finished goods Prepaid expenses and other assets Equipment and tooling Software Construction-in-process Land investments for deferred compensation plan Trading Investment in privately held companies Other assets Inventories: Other current assets: plant and equipment, net: Property, Other assets: Accounts receivable: Note 9—Balance Sheet Components Sheet 9—Balance Note (in thousands): and 2017

(704) 7,876 9,559 (1,502) (1,610) (7,505) 13,673 (15,518) (14,161) $ 79,023 $ 69,879 $ 63,667 $ 69,131 93 The aggregate changes in gross unrecognized tax benefits in fiscal years 2018, 2017 and 2016 were as 2017 and 2016 were fiscal years 2018, tax benefits in gross unrecognized changes in The aggregate penalties related to unrecognized tax positions in income tax expense. The Company recognizes interest and received final tax assessments in Switzerland The Company tax returns. The Company files Swiss and foreign provided for uncertain tax positions, the provisions on these positions Although the Company has adequately Lapse of statute of limitations Lapse of during prior years related to tax positions taken Decreases in balances the year related to tax positions taken during Increases in balances limitations Lapse of statute of during prior years related to tax positions taken Decreases in balances the year related to tax positions taken during Increases in balances limitations Lapse of statute of Settlements with tax authorities positions taken during the year Increases in balances related to tax March 31, 2015 March 31, March 31, 2016 March 31, 2017 March 31, 2018 Note 8—Income Taxes (Continued) (Continued) Taxes 8—Income Note thousands): follows (in expense $0.7 million and $0.3 million in interest and penalties in income tax The Company recognized $0.6 million, and 2016, the Company had As of March 31, 2018, 2017 2016, respectively. during fiscal years 2018, 2017 and of accrued interest and penalties related to uncertain tax positions, $2.3 million, $3.0 million and $3.6 million respectively. not foreign jurisdictions such as the United States, the Company is generally through fiscal year 2014. For other The Company is under examination and has received prior to fiscal year 2015. subject to tax examinations for years there is a possibility If the examinations are resolved unfavorably, assessment notices in foreign tax jurisdictions. impact on its results of operations. they may have a material negative the made or the underlying matters are settled or otherwise resolved. During may change as revised estimates are that the amount of unrecognized tax benefits could increase or decrease next 12 months, it is reasonably possible significantly due to changes jurisdictions, new tax audits and changes in the U.S. Dollar as in tax law in various as these factors, uncertain tax positions may decrease by as much compared to other currencies. Excluding $21.9 million during the next 12 months. primarily from the lapse of the statutes of limitations in various jurisdictions

— — 2017

— — 18,000 (4,908)(5,000) (8,092) Year Ended March 31, Year 2018 March 31, 2017 March 31,

$ 9,908 $$ — — $ 9,908 — 12,230 — 96 March 31, 2018 March 31,

14,867 Level 1 Level 2 Level 3 Level 1 2 Level Level 3 $ 492,535 $ — $ — $ 448,742 $ — $ — $ 17,748 $ — $ — $ 15,043 $ — $ — $ 2,881 $ — $ — $ 2,813 $ — $ — $ — $ — $ — $ — $ 48 $ — $ —$ $ — — $ $ 34 $ — $ — $ — $ — $ — $ 443 9,908 $ — The following table summarizes the changes in the fair value of the Company’s contingent consideration changes in the fair value of the Company’s The following table summarizes the Acquisition (see "Note 3 - Jaybird The acquisition-related contingent consideration liability arising from the The following table presents the Company's financial assets and liabilities that were accounted for at fair value accounted for liabilities that were financial assets and the Company's table presents The following Mutual funds Money market funds Fair value of contingent consideration upon acquisition Fair value of contingent consideration Change in fair value of contingent consideration Settlement payment Assets: Cash equivalents Total of trading investments for deferred of trading investments Total compensation plan Trading investments for deferred investments Trading included in other compensation plan assets: Currency derivative assets included in other current assets Liabilities: Acquisition-related contingent consideration included in accrued and other current liabilities and other non- current liabilities Currency derivative liabilities included in accrued and other current liabilities Acquisition-related contingent consideration, beginning of the year Acquisition-related contingent consideration, Acquisition-related contingent consideration, end of the year balance measured with Level 3 inputs during fiscal years 2018 and 2017 (in thousands): balance measured with Level 3 inputs Acquisition-related contingent consideration represented the future potential earn-out payments of up to $45.0 million in cash based on Acquisitions") Business year period. If the net revenue targets the achievement of certain net revenue targets over approximately a two million and $20.0 million in fiscal years would have been met, the Company would have paid a maximum of $25.0 Acquisition Date was $18.0 million, fair value of the earn-out as of the Jaybird The 2018 and 2019, respectively. significant unobservable inputs such as a which was determined by using a Monte Carlo Simulation that includes The fair value was the earn-out period. risk-adjusted discount rate of 16% and projected net sales of Jaybird over on the inputs on the date of remeasurement, remeasured at each reporting period at the estimated fair value based consideration for business with the change in fair value recognized as "change in fair value of contingent of operations. Projected net sales were acquisition" in the operating expense section in the consolidated statements based on our internal projections, including analysis of the target markets. Note 10—Fair Value Measurements (Continued) Measurements Value 10—Fair Note by the pension plans, classified defined benefit to the Company's assets related basis, excluding on a recurring (in thousands): the fair value hierarchy level within

1,266 6,232 2,889 1,789 7,019 9,355 36,409 13,424 83,707 15,043 41,998 2017

— — March 31, 1,763 1,980 4,354 8,468 71,962 17,748 16,279 42,434 105,044 2018 $ 82,330 $ 88,346 $ 11,294 $ 8,487 $ 281,732 $ 232,273 $ 81,924 $ 83,691 95 96 similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in similar assets and liabilities in active markets; quoted prices for identical corroborated by observable markets that are not active; or other inputs that are observable or can be market data. This includes certain pricing models, discounted cash flow fair value of the assets or liabilities. inputs. methodologies and similar techniques that use significant unobservable The following table presents the components of certain balance sheet liability amounts as of March 31, 2018 as of March sheet liability amounts of certain balance the components table presents The following The Company considers fair value as the exchange price that would be received for an asset or paid to The Company considers fair value as the exchange price that would be • markets for identical assets or liabilities. Level 1—Quoted prices in active • than quoted market prices included in Level 1, such as quoted prices for Level 2—Observable inputs other • are supported by little or no market activity and that are significant to the Level 3—Unobservable inputs that Accrued personnel expenses Accrued personnel (1) marketing, pricing and incentive programs Accrued customer accrual Warranty plan Obligation for deferred compensation Warranty accrual Warranty plan obligation Employee benefit Employee benefit plan obligation Deferred tax liability Income taxes payable portion for business acquisition - current Contingent consideration Other current liabilities acquisition - non-current portion Contingent consideration for business Other non-current liabilities current liabilities: Accrued and other Other non-current liabilities:

Note 9—Balance Sheet Components (Continued) Components Sheet 9—Balance Note (in thousands): and 2017 (1) The increases in the allowances and accruals for cooperative marketing arrangements, customer incentive The increases in the allowances and accruals (1) of 31, 2018 compared with March 31, 2017 were primarily the result programs, pricing programs as of March and marketing activities. increases in pricing programs and incentive April 1, 2017, 2016-09 effective ASU primarily due to the adoption of The increase in deferred tax assets was (2) deferred tax assets in fiscal year 2018 as a result of the by the remeasurement of federal and state partially offset for more information. Taxes" Act on December 22, 2017. See "Note 8 - Income Tax enactment of the Measurements Note 10—Fair Value market for the asset or liability in an orderly transfer a liability (an exit price) in the principal or most advantageous The Company utilizes the following three-level transaction between market participants at the measurement date. fair value: fair value hierarchy to establish the priorities of the inputs used to measure

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018

— — 2017

— — 18,000 (4,908)(5,000) (8,092) Year Ended March 31, Year 2018 March 31, 2017 March 31,

$ 9,908 $ — $ — $ 9,908 — 12,230 — 97 96 March 31, 2018 March 31,

The following table summarizes the changes in the fair value of the Company’s contingent consideration changes in the fair value of the Company’s The following table summarizes the The acquisition-related contingent consideration liability arising from the Jaybird Acquisition (see "Note 3 - Jaybird The acquisition-related contingent consideration liability arising from the The following table presents the Company's financial assets and liabilities that were accounted for at fair value accounted for liabilities that were financial assets and the Company's table presents The following Mutual funds Money market funds Fair value of contingent consideration upon acquisition Fair value of contingent consideration Change in fair value of contingent consideration Settlement payment Cash equivalents Assets:

Total of trading investments for deferred of trading investments Total compensation plan Trading investments for deferred investments Trading included in other compensation plan assets: Currency derivative assets included in other current assets Liabilities: Acquisition-related contingent consideration included in accrued and other current liabilities and other non- current liabilities Currency derivative liabilities included in accrued and other current liabilities Acquisition-related contingent consideration, beginning of the year Acquisition-related contingent consideration, Acquisition-related contingent consideration, end of the year balance measured with Level 3 inputs during fiscal years 2018 and 2017 (in thousands): balance measured with Level 3 inputs Acquisition-related contingent consideration represented the future potential earn-out payments of up to $45.0 million in cash based on Acquisitions") Business year period. If the net revenue targets the achievement of certain net revenue targets over approximately a two million and $20.0 million in fiscal years would have been met, the Company would have paid a maximum of $25.0 Acquisition Date was $18.0 million, fair value of the earn-out as of the Jaybird The 2018 and 2019, respectively. significant unobservable inputs such as a which was determined by using a Monte Carlo Simulation that includes The fair value was the earn-out period. risk-adjusted discount rate of 16% and projected net sales of Jaybird over on the inputs on the date of remeasurement, remeasured at each reporting period at the estimated fair value based consideration for business with the change in fair value recognized as "change in fair value of contingent of operations. Projected net sales were acquisition" in the operating expense section in the consolidated statements based on our internal projections, including analysis of the target markets. Note 10—Fair Value Measurements (Continued) Measurements Value 10—Fair Note by the pension plans, classified defined benefit to the Company's assets related basis, excluding on a recurring (in thousands): the fair value hierarchy level within

1,266 6,232 2,889

1,789 7,019 9,355 36,409 13,424 83,707 15,043 41,998 2017

— — March 31, 1,763 4,354 1,980 8,468 71,962 16,279 17,748 42,434 105,044 2018 $ 82,330 $ 88,346 $ 11,294 $ 8,487 $ 281,732 $ 232,273 $ 81,924 $ 83,691 95 similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in similar assets and liabilities in active markets; quoted prices for identical corroborated by observable markets that are not active; or other inputs that are observable or can be market data. This includes certain pricing models, discounted cash flow fair value of the assets or liabilities. inputs. methodologies and similar techniques that use significant unobservable The following table presents the components of certain balance sheet liability amounts as of March 31, 2018 as of March sheet liability amounts of certain balance the components table presents The following The Company considers fair value as the exchange price that would be received for an asset or paid to The Company considers fair value as the exchange price that would be • for identical assets or liabilities. Level 1—Quoted prices in active markets • quoted market prices included in Level 1, such as quoted prices for Level 2—Observable inputs other than • are supported by little or no market activity and that are significant to the Level 3—Unobservable inputs that Accrued personnel expenses Accrued personnel (1) marketing, pricing and incentive programs Accrued customer Warranty accrual Warranty Employee benefit plan obligation Employee benefit Income taxes payable Contingent consideration for business acquisition - current portion for business acquisition - current Contingent consideration accrual Warranty plan Obligation for deferred compensation Other current liabilities Employee benefit plan obligation Deferred tax liability Contingent consideration for business acquisition - non-current portion Contingent consideration for business Other non-current liabilities current liabilities: Accrued and other Other non-current liabilities:

2017

Liability March 31, Reclassified from 2018 Accumulated Other Comprehensive Loss Amount of Loss (Gain) to Costs of Goods Sold 2018 2017 2016

Derivatives

2017 $ (2,432) $ 5,808 $ (1,670) $ (3,296)

Asset March 31, 2,928 2018 98 Amount of a Component of )$ Accumulated Other $ — $ 48 $ — $ 402 Comprehensive Loss Gain (Loss) Deferred as (8,499 2018 2017 2016 $ 2017. The following table presents the amounts of gains and losses on The following table presents the amounts 2017. The Company enters into cash flow hedge contracts to protect against exchange rate The Company enters into cash flow The following table presents the fair values of the Company's derivative instruments as of March 31, 2018 and as of March derivative instruments the Company's the fair values of table presents The following Under certain agreements with the respective counterparties to the Company's derivative contracts, subject to to the Company's derivative with the respective counterparties Under certain agreements The fair values of the Company’s derivative instruments not designated as hedging instruments were not derivative instruments The fair values of the Company’s Cash Flow Hedges: Cash flow hedges Cash flow hedges Designated as hedging instruments:

Designated as hedging instruments: Designated as hedging

exposure of forecasted inventory purchases. These hedging contracts mature within four months. Gains and losses These hedging contracts mature within four months. exposure of forecasted inventory purchases. hedges are deferred as a component of accumulated other portion of the in the fair value of the effective inventory purchases are sold, at which time the gains or losses are comprehensive loss until the hedged flows from such hedges are classified as operating activities in the reclassified to cost of goods sold. Cash longer Hedging relationships are discontinued when hedging contract is no consolidated statements of cash flows. the Company removes hedge designation eligible for hedge accounting, or is sold, terminated or exercised, or when portion of the discontinued hedges continue to be for the contract. Gains and losses in the fair value of the effective purchases are sold, unless it is reported in accumulated other comprehensive loss until the hedged inventory end of the originally specified time period or probable that the forecasted inventory purchases will not occur by the As of March 31, 2018, there were no currency forward within an additional two-month period of time thereafter. of March 31, 2017, the notional amounts of As contracts outstanding related to forecasted inventory purchases. The Company purchases was $59.4 million. currency forward contracts outstanding related to forecasted inventory included in accumulated other estimates that $3.2 million of net losses related to its cash flow hedges within the next 12 months. comprehensive loss as of March 31, 2018 will be reclassified into earnings Note 11—Derivative Financial Instruments Financial 11—Derivative Note thousands): 2017 (in applicable requirements, the Company is allowed to net settle transactions of the same type with a single net settle transactions of the same the Company is allowed to net applicable requirements, and derivative presents its derivative assets the Company However, one party to the other. amount payable by on the consolidated balance and other current liabilities basis in other current assets or accrued liabilities on a gross 31, 2018 and 2017. sheets as of March 31, material as of March 31, 2018 or March 2016 and designated as hedging instruments for fiscal years 2018, 2017 and the Company's derivative instruments income of operations and consolidated statements of comprehensive their locations on its consolidated statements (loss) (in thousands): 97 98 . Goodwill, intangible assets, and property, plant and equipment, are not required to be plant and equipment, are . Goodwill, intangible assets, and property, In October 2017, the Company and the sellers of Jaybird entered into an agreement fully, irrevocably and fully, into an agreement of Jaybird entered and the sellers 2017, the Company In October at a fair value of $17.7 compensation plan are recorded for the Company's deferred The marketable securities The Company’s non-marketable cost method investments, and non-financial assets, such as intangible assets non-marketable cost method investments, The Company’s and liabilities measured on a nonrecurring basis is as summary of the valuation methodologies for assets A Level 3 due to the absence These investments are classified as Non-marketable cost method investments. A in Series investment non-marketable investments is the Company’s The primary investment included in cost method investments included in other assets at March 31, 2018 and The aggregate recorded amount of Assets Non-Financial Note 10—Fair Value Measurements Measurements (Continued) Value 10—Fair Note million in cash, exchange for $5.0 and payments in the earn-out rights Company from releasing the unconditionally consideration was the contingent As a result, consideration. value of the contingent the fair which approximated The required. was no longer value measurement 3 inputs as fair liability with Level out from financial transferred its consolidated activities on the same as financing 2017 and included in November paid the $5.0 million Company of cash flows. statements Investment Securities on quoted market prices. Quoted based respectively, million as of March 31, 2018 and 2017, million and $15.0 Unrealized trading as Level 1 within the fair value hierarchy. observable inputs that are classified market prices are and are included in 2018, 2017 and 2016 were not significant securities for the fiscal years gains related to trading of operations. net in the consolidated statements other income (expense), a Nonrecurring Basis on at Fair Value Assets Measured fair value only upon initial recognition or if an plant and equipment, are recorded at and acquisition-related property, long-lived assets during fiscal years 2018, 2017 and 2016. There was no impairment of impairment is recognized. follows: inputs used to measure fair value are and the fact that lack of liquidity, of quoted market prices, the inherent judgment. When certain events or circumstances indicate that impairment unobservable and require management's and investments using various assumptions, including the financial metrics may exist, the Company revalues the during fiscal years 2018, 2017 and 2016. There was no material impairment ratios of comparable public companies. at the estimated fair value of $5.6 million on the date of Lifesize divestiture. Preferred Stock of Lifesize recorded and to consolidated financial statements for the valuation approach Refer to Note 4 "Discontinued Operations" significant inputs and assumptions. $7.4 million, respectively. March 31, 2017 was $7.3 million and if certain triggering events occur (or tested at least annually measured at fair value on a recurring basis. However, for impairment and an impairment is for goodwill) such that a non-financial instrument is required to be evaluated fair value as a result of such triggering recorded to reduce the non-financial instrument's carrying value to the for the period such triggering events events, the non-financial assets and liabilities are measured at fair value 2 herein, for additional information about how the Company tests various asset classes for See Note occur. impairment.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018

2017

Liability March 31, Reclassified from 2018 Accumulated Other Comprehensive Loss Amount of Loss (Gain) to Costs of Goods Sold 2018 2017 2016

Derivatives

2017 $ (2,432) $ 5,808 $ (1,670) $ (3,296)

Asset March 31, 2,928 99 2018 98 Amount of a Component of )$ Accumulated Other $ — $ 48 $ — $ 402 Comprehensive Loss Gain (Loss) Deferred as (8,499 2018 2017 2016 $ 2017. The following table presents the amounts of gains and losses on The following table presents the amounts 2017. The Company enters into cash flow hedge contracts to protect against exchange rate The Company enters into cash flow Under certain agreements with the respective counterparties to the Company's derivative contracts, subject to to the Company's derivative with the respective counterparties Under certain agreements The following table presents the fair values of the Company's derivative instruments as of March 31, 2018 and as of March derivative instruments the Company's the fair values of table presents The following The fair values of the Company’s derivative instruments not designated as hedging instruments were not derivative instruments The fair values of the Company’s Cash Flow Hedges: Cash flow hedges Cash flow hedges Designated as hedging instruments:

instruments: Designated as hedging

the Company's derivative instruments designated as hedging instruments for fiscal years 2018, 2017 and 2016 and designated as hedging instruments for fiscal years 2018, 2017 and the Company's derivative instruments income of operations and consolidated statements of comprehensive their locations on its consolidated statements (loss) (in thousands): applicable requirements, the Company is allowed to net settle transactions of the same type with a single net settle transactions of the same the Company is allowed to net applicable requirements, and derivative presents its derivative assets the Company However, one party to the other. amount payable by on the consolidated balance and other current liabilities basis in other current assets or accrued liabilities on a gross 31, 2018 and 2017. sheets as of March 31, material as of March 31, 2018 or March Note 11—Derivative Financial Instruments Financial 11—Derivative Note thousands): 2017 (in Gains and losses These hedging contracts mature within four months. exposure of forecasted inventory purchases. hedges are deferred as a component of accumulated other portion of the in the fair value of the effective inventory purchases are sold, at which time the gains or losses are comprehensive loss until the hedged flows from such hedges are classified as operating activities in the reclassified to cost of goods sold. Cash longer Hedging relationships are discontinued when hedging contract is no consolidated statements of cash flows. the Company removes hedge designation eligible for hedge accounting, or is sold, terminated or exercised, or when portion of the discontinued hedges continue to be for the contract. Gains and losses in the fair value of the effective purchases are sold, unless it is reported in accumulated other comprehensive loss until the hedged inventory end of the originally specified time period or probable that the forecasted inventory purchases will not occur by the As of March 31, 2018, there were no currency forward within an additional two-month period of time thereafter. As of March 31, 2017, the notional amounts of contracts outstanding related to forecasted inventory purchases. The Company purchases was $59.4 million. currency forward contracts outstanding related to forecasted inventory included in accumulated other estimates that $3.2 million of net losses related to its cash flow hedges within the next 12 months. comprehensive loss as of March 31, 2018 will be reclassified into earnings 97 . Goodwill, intangible assets, and property, plant and equipment, are not required to be plant and equipment, are . Goodwill, intangible assets, and property, In October 2017, the Company and the sellers of Jaybird entered into an agreement fully, irrevocably and fully, into an agreement of Jaybird entered and the sellers 2017, the Company In October at a fair value of $17.7 compensation plan are recorded for the Company's deferred The marketable securities The Company’s non-marketable cost method investments, and non-financial assets, such as intangible assets non-marketable cost method investments, The Company’s and liabilities measured on a nonrecurring basis is as summary of the valuation methodologies for assets A Level 3 due to the absence These investments are classified as Non-marketable cost method investments. A in Series investment non-marketable investments is the Company’s The primary investment included in cost method investments included in other assets at March 31, 2018 and The aggregate recorded amount of Assets Non-Financial Note 10—Fair Value Measurements Measurements (Continued) Value 10—Fair Note million in cash, exchange for $5.0 and payments in the earn-out rights Company from releasing the unconditionally consideration was the contingent As a result, consideration. value of the contingent the fair which approximated The required. was no longer value measurement 3 inputs as fair liability with Level out from financial transferred its consolidated activities on the same as financing 2017 and included in November paid the $5.0 million Company of cash flows. statements Investment Securities on quoted market prices. Quoted based respectively, million as of March 31, 2018 and 2017, million and $15.0 Unrealized trading as Level 1 within the fair value hierarchy. observable inputs that are classified market prices are and are included in 2018, 2017 and 2016 were not significant securities for the fiscal years gains related to trading of operations. net in the consolidated statements other income (expense), a Nonrecurring Basis on at Fair Value Assets Measured fair value only upon initial recognition or if an plant and equipment, are recorded at and acquisition-related property, long-lived assets during fiscal years 2018, 2017 and 2016. There was no impairment of impairment is recognized. follows: inputs used to measure fair value are and the fact that lack of liquidity, of quoted market prices, the inherent judgment. When certain events or circumstances indicate that impairment unobservable and require management's and investments using various assumptions, including the financial metrics may exist, the Company revalues the during fiscal years 2018, 2017 and 2016. There was no material impairment ratios of comparable public companies. at the estimated fair value of $5.6 million on the date of Lifesize divestiture. Preferred Stock of Lifesize recorded and to consolidated financial statements for the valuation approach Refer to Note 4 "Discontinued Operations" significant inputs and assumptions. $7.4 million, respectively. March 31, 2017 was $7.3 million and if certain triggering events occur (or tested at least annually measured at fair value on a recurring basis. However, for impairment and an impairment is for goodwill) such that a non-financial instrument is required to be evaluated fair value as a result of such triggering recorded to reduce the non-financial instrument's carrying value to the for the period such triggering events events, the non-financial assets and liabilities are measured at fair value 2 herein, for additional information about how the Company tests various asset classes for See Note occur. impairment. (503) 8,108 5,743 4,221 2,452 1,963 10,833 15,341 2017 $ 13,144 $ 44,501 1,230 1,095 25,103 (21,766) (15,270) Years Ended March 31, Years 2018 $ 21,911 $ 20,380 $ 27,573 $ 21,911 100 Rent expense for fiscal years 2018, 2017 and 2016 was $11.2 million, $9.9 million and $10.0 million, million, $9.9 million 2017 and 2016 was $11.2 Rent expense for fiscal years 2018, the Company recognized a liability for asset retirement obligations for In connection with its leased facilities, are covered by warranty to be free from defects in material and All of the Company's Peripherals products liability for fiscal years 2018 and 2017 were as follows (in thousands): Changes in the Company's warranty During 2015, the Company entered into a limited partnership agreement with a private investment fund During 2015, the Company entered into a limited partnership agreement The Company leases facilities under operating leases, certain of which require it to pay property taxes, it to pay property of which require leases, certain under operating leases facilities The Company Assumed from business acquisition Provision Settlements Currency translation Years Ending March 31, Years 2019 2020 2021 2022 2023 Thereafter Beginning of the period End of the period

respectively. value of estimated remediation costs to be incurred at lease expiration. 2018 and 2017 representing the present were not material as of March 31, 2018 and 2017. The liabilities for asset retirement obligations Product Warranties warranty period varies by product and by region. The one year to five years. workmanship for periods ranging from Investment Commitments and committed to a capital specialized in early-stage start-up consumer hardware electronics companies The Company has invested $2.9 million as of March 31, 2018, contribution of $4.0 million over the life of the fund. As of March 31, 2018, $1.1 million capital which is classified as other assets on the consolidated balance sheet. contribution has not yet been called upon by the fund. Note 14—Commitments and Contingencies Note 14—Commitments and Leases Operating option at the Company's are generally renewable leases for facilities costs. Operating and maintenance insurance under non-cancelable Future minimum annual rentals escalation clauses linked to inflation. and usually include thousands): March 31, 2018 are as follows (in operating leases at (36) Net Amount Carrying 2017 2017 (90) Amortization Accumulated 25,800 31,553 2018 Years Ended March 31, Years $ 249,741 $$ 218,224 275,451 $ 249,741 Gross Amount Carrying March 31, Net Amount Carrying 99 100 2018 Amortization Accumulated $ (73,008) $ 87,547 $ 104,965 $ (57,401) $ 47,564 77,175 (50,755) 26,420 63,285 (42,831) 20,454 Gross 160,555 Amount Carrying $ The Company also enters into currency forward and swap contracts to reduce the short- to reduce the and swap contracts into currency forward also enters The Company The Company's acquired intangible assets subject to amortization were as follows (in thousands): The Company's acquired intangible For fiscal years 2018, 2017 and 2016, amortization expense for other intangible assets was, $15.6 million, For fiscal years 2018, 2017 and 2016, amortization expense for other intangible aggregating $84.5 million as of The Company had several uncommitted, unsecured bank lines of credit The fair value of all currency forward and swap contracts is determined based on observable market is determined based on observable currency forward and swap contracts The fair value of all 31, 2017 by of the goodwill as of December its annual impairment analysis The Company performed activity in the Company's goodwill balance during fiscal years 2018 and The following table summarizes the Other Derivatives: Other Derivatives: Acquisitions other Currency exchange rate impact and

Trademark and tradenamesTrademark Technology $ 23,870 $ (9,482) $ 14,388 $ 16,500 $ (6,933) $ 9,567 Customer contracts/relationships 59,510 (12,771) 46,739 25,180 (7,637) 17,543 Beginning of the period End of the period $9.4 million and $0.4 million, respectively. The Company expects that annual amortization expense for fiscal years $9.4 million and $0.4 million, respectively. million, $12.1 million and $8.1 million, 2019, 2020, 2021, 2022 and 2023 will be $19.6 million, $19.6 million, $15.3 and $12.9 million thereafter. respectively, Arrangements Note 13—Financing There are no financial covenants under these lines of credit with which the Company must comply. March 31, 2018. of $49.8 million under these lines of credit. As of March 31, 2018, the Company had outstanding bank guarantees 31, 2018 or March 31, 2017. There was no borrowing outstanding under the line of credit as of March term effects of currency fluctuations on certain receivables or payables denominated in currencies other than the currencies other than denominated in or payables on certain receivables fluctuations of currency term effects The within one month. generally mature swap contracts These forward and subsidiaries. currencies of its functional or losses The gains rate risk. the currency exchange swap contracts is forward and managed by using primary risk of operations statements net in the consolidated (expense), in other income contracts are recognized on these and March 31, 2018 outstanding as of of these contacts notional amounts The value. the changes in fair based on and swap contracts as of March 31, 2018 Open forward and and $56.7 million, respectively. 2017 were $47.2 million Canadian Yen, Japanese Australian Dollars, Mexican Pesos, Dollars, Taiwanese contracts in 2017 consisted of at pre-determined exchange rates. Pounds to be settled at future dates Dollars and British classified as operating Cash flows from these contracts are currency rates and forward rates. transactions of spot statements of cash flows. activities in the consolidated Assets Intangible Other and Note 12—Goodwill and concluded that it was more likely than not that the fair value of its performing a qualitative assessment amount. In assessing the exceeded its carrying unit of the Company, peripherals reporting unit, the only reporting the impact of these key factors: change in industry and competitive qualitative factors, the Company considered months and budgeted-to-actual revenue performance for the twelve environment, growth in market capitalization, the valuation of events or circumstances affecting There have been no significant ended December 31, 2017. test. goodwill subsequent to the annual impairment 2017 (in thousands): Note 11—Derivative Financial Instruments (Continued) Instruments Financial 11—Derivative Note

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 (503) 8,108 5,743 4,221 2,452 1,963 10,833 15,341 2017 $ 13,144 $ 44,501 1,230 1,095 25,103 (21,766) (15,270) Years Ended March 31, Years 2018 $ 21,911 $ 20,380 $ 27,573 $ 21,911 101 100

The Company leases facilities under operating leases, certain of which require it to pay property taxes, it to pay property of which require leases, certain under operating leases facilities The Company Rent expense for fiscal years 2018, 2017 and 2016 was $11.2 million, $9.9 million and $10.0 million, million, $9.9 million 2017 and 2016 was $11.2 Rent expense for fiscal years 2018, the Company recognized a liability for asset retirement obligations for In connection with its leased facilities, are covered by warranty to be free from defects in material and All of the Company's Peripherals products liability for fiscal years 2018 and 2017 were as follows (in thousands): Changes in the Company's warranty During 2015, the Company entered into a limited partnership agreement with a private investment fund During 2015, the Company entered into a limited partnership agreement Assumed from business acquisition Provision Settlements Currency translation

Beginning of the period 2021 Years Ending March 31, Years 2019 2020 2022 2023 Thereafter End of the period Note 14—Commitments and Contingencies Note 14—Commitments and Leases Operating option at the Company's are generally renewable leases for facilities costs. Operating and maintenance insurance under non-cancelable Future minimum annual rentals escalation clauses linked to inflation. and usually include thousands): March 31, 2018 are as follows (in operating leases at respectively. value of estimated remediation costs to be incurred at lease expiration. 2018 and 2017 representing the present were not material as of March 31, 2018 and 2017. The liabilities for asset retirement obligations Product Warranties warranty period varies by product and by region. The one year to five years. workmanship for periods ranging from Investment Commitments and committed to a capital specialized in early-stage start-up consumer hardware electronics companies The Company has invested $2.9 million as of March 31, 2018, contribution of $4.0 million over the life of the fund. As of March 31, 2018, $1.1 million capital which is classified as other assets on the consolidated balance sheet. contribution has not yet been called upon by the fund. (36) Net Amount Carrying 2017 2017 (90) Amortization Accumulated 25,800 31,553 2018 Years Ended March 31, Years $ 249,741 $$ 218,224 275,451 $ 249,741 Gross Amount Carrying March 31, Net Amount Carrying 99 2018 Amortization Accumulated $ (73,008) $ 87,547 $ 104,965 $ (57,401) $ 47,564 77,175 (50,755) 26,420 63,285 (42,831) 20,454 Gross 160,555 Amount Carrying $ The Company also enters into currency forward and swap contracts to reduce the short- to reduce the and swap contracts into currency forward also enters The Company The Company had several uncommitted, unsecured bank lines of credit aggregating $84.5 million as of The Company had several uncommitted, unsecured bank lines of credit For fiscal years 2018, 2017 and 2016, amortization expense for other intangible assets was, $15.6 million, For fiscal years 2018, 2017 and 2016, amortization expense for other intangible The fair value of all currency forward and swap contracts is determined based on observable market is determined based on observable currency forward and swap contracts The fair value of all 31, 2017 by of the goodwill as of December its annual impairment analysis The Company performed activity in the Company's goodwill balance during fiscal years 2018 and The following table summarizes the assets subject to amortization were as follows (in thousands): The Company's acquired intangible Other Derivatives: Other Derivatives: Acquisitions other Currency exchange rate impact and Trademark and tradenamesTrademark Technology Customer contracts/relationships $ 23,870 $ 59,510 (9,482) $ (12,771) 14,388 $ 46,739 16,500 $ 25,180 (6,933) $ 9,567 (7,637) 17,543

Beginning of the period End of the period $9.4 million and $0.4 million, respectively. The Company expects that annual amortization expense for fiscal years $9.4 million and $0.4 million, respectively. million, $12.1 million and $8.1 million, 2019, 2020, 2021, 2022 and 2023 will be $19.6 million, $19.6 million, $15.3 and $12.9 million thereafter. respectively, Arrangements Note 13—Financing There are no financial covenants under these lines of credit with which the Company must comply. March 31, 2018. of $49.8 million under these lines of credit. As of March 31, 2018, the Company had outstanding bank guarantees 31, 2018 or March 31, 2017. There was no borrowing outstanding under the line of credit as of March Note 11—Derivative Financial Instruments (Continued) Instruments Financial 11—Derivative Note the currencies other than denominated in or payables on certain receivables fluctuations of currency term effects The within one month. generally mature swap contracts These forward and subsidiaries. currencies of its functional or losses The gains rate risk. the currency exchange swap contracts is forward and managed by using primary risk of operations statements net in the consolidated (expense), in other income contracts are recognized on these and March 31, 2018 outstanding as of of these contacts notional amounts The value. the changes in fair based on and swap contracts as of March 31, 2018 Open forward and and $56.7 million, respectively. 2017 were $47.2 million Canadian Yen, Japanese Australian Dollars, Mexican Pesos, Dollars, Taiwanese contracts in 2017 consisted of at pre-determined exchange rates. Pounds to be settled at future dates Dollars and British classified as operating Cash flows from these contracts are currency rates and forward rates. transactions of spot statements of cash flows. activities in the consolidated Assets Intangible Other and Note 12—Goodwill and concluded that it was more likely than not that the fair value of its performing a qualitative assessment amount. In assessing the exceeded its carrying unit of the Company, peripherals reporting unit, the only reporting the impact of these key factors: change in industry and competitive qualitative factors, the Company considered months and budgeted-to-actual revenue performance for the twelve environment, growth in market capitalization, the valuation of events or circumstances affecting There have been no significant ended December 31, 2017. test. goodwill subsequent to the annual impairment 2017 (in thousands): 843 $ 30,107 Repurchased $$ 250,000 250,000 9,113 $ 155,983 Amounts Shares Amounts Approved (1) 17,311 17,311 Shares 102 Pursuant to Swiss corporate law, Logitech International S.A. may only pay dividends in Swiss Francs. The Swiss Francs. pay dividends in S.A. may only International Logitech law, to Swiss corporate Pursuant million million ($115.7 the Company pay CHF 110.7 Board of Directors recommended that In May 2018, the must be retained in a legal of the Company's annual net income a minimum of 5% law, Under Swiss corporate of Directors approved the 2014 share buyback program, which In March 2014, the Company's Board of Directors approved the 2017 share buyback program, which In March 2017, the Company's Board program is shown in the following table (in thousands, summary of the approved and active share buyback A Share Buyback Program March 2017 March 2014

(1) The approval of each of the share buyback programs by the Swiss Takeover Board limits the number of shares Takeover of each of the share buyback programs by the Swiss The approval (1) share capital and voting rights. that the Company may repurchase to no more than 10% of its authorized Note 15—Shareholders' Equity (Continued) Equity 15—Shareholders' Note Dividends million or (CHF 782.3 retained earnings of unappropriated to certain amounts of dividends is limited payment shareholder approval. and is subject to March 31, 2018) exchange rate at based on the $818.0 million September 2017, the dividends for fiscal year 2018. In rate on March 31, 2018) in cash based on the exchange common share, totaling (USD equivalent of $0.63) per and paid cash dividends of CHF 0.61 Company declared September 2016, the outstanding common stock. In million in U.S. Dollars, on the Company’s approximately $104.2 common share, totaling (USD equivalent of $0.57) per and paid cash dividends of CHF 0.56 Company declared 2015, the outstanding common stock. In September million in U.S. Dollars, on the Company’s approximately $93.1 totaling per share (USD equivalent of $0.53), and paid cash dividends of CHF 0.51 Company declared million in U.S. Dollars. approximately $85.9 Legal Reserves per share 20% of the Company's issued and outstanding aggregate par value reserve until this legal reserve equals of retained earnings that are not available for distribution These legal reserves represent an appropriation capital. 2018 (based on the exchange rate at March 31, 2018). and totaled $10.0 million at March 31, Share Repurchases This share buyback program to $250.0 million to purchase its own shares. authorizes the Company to use up April 2017. expired in of 2014 to $250.0 million to purchase its own shares following the expiration date authorizes the Company to use up for a period of three is expected to remain in effect The Company's share buyback program buyback program. from time to time on the open market, through block trades or otherwise. years. Shares may be repurchased other at any time without prior notice depending on market conditions and Purchases may be started or stopped factors. excluding transaction costs): 101 102 Logitech Europe S.A.,one of the Company's wholly-owned subsidiaries, guaranteed payments of two third- payments of guaranteed wholly-owned subsidiaries, of the Company's Europe S.A.,one Logitech matters such as customers for losses arising from certain of its suppliers and The Company indemnifies and former officers. directors and certain of its current indemnifies its current and former The Company also in claims and legal proceedings which arise in the ordinary course From time to time the Company is involved 173,106,620 shares with a par value The Company's nominal share capital is CHF 43.3 million, consisting of for potential issuance on the exercise of The Company's has reserved conditional capital of 25,000,000 shares The Stock Purchase Agreement that the Company entered into in connection with the investment by three Agreement that the Company The Stock Purchase Note 14—Commitments and Contingencies (Continued) Contingencies 14—Commitments Note and Guarantees this guarantee amount of 31, 2018, the maximum As of March purchase obligations. manufacturers' party contract outstanding. obligations was purchase $1.0 million of guaranteed million, of which was $3.8 Indemnifications The scope of these subject to certain restrictions. disputes and product safety defects, intellectual property including reasonable for damages and expenses, but in some instances includes indemnification indemnities varies, The for these indemnification provisions. 2018, no amounts have been accrued As of March 31, attorneys' fees. that it is probable and information currently available, believe, based on historical experience Company does not under its indemnification arrangements. will be required to be paid that any material amounts The insurance policies. may be recoverable under various for providing such indemnification Certain costs incurred under these arrangements amount that could be payable to reasonably estimate the maximum Company is unable the obligations are conditional in nature and the facts and circumstances because these exposures are not limited, arise are variable. involved in any situation that might contains representations, warranties and covenants of Logitech and Lifesize, venture capital firms in Lifesize, Inc. to certain limitations, the Company has agreed to indemnify the Venture Investors. Subject Inc. to the Venture for certain losses resulting from breaches of or Investors to the Venture Investors and certain persons related third- warranties and covenants as well as certain other obligations, including inaccuracies in such representations, and pre-closing tax obligations of Lifesize. party expenses, restructuring costs Legal Proceedings to several such claims and a small number of legal proceedings. The Company is currently subject of its business. on lack merit and intends to vigorously defend against them. Based The Company believes that these matters a material Company does not believe that resolution of pending matters will have currently available information, the is subject to inherent litigation flows or results of operations. However, on its financial position, cash adverse effect such that the Company's defenses will be successful or that any uncertainties, and there can be no assurances cash flows adverse impact on the Company's business, financial position, lawsuit or claim would not have a material whether meritorious against the Company, Any claims or proceedings period. or results of operations in a particular resources, because of defense costs, diversion of management and operational or not, can have an adverse impact license or other rights, or litigation arising out Any failure to obtain a necessary negative publicity and other factors. the Company's business. of intellectual property claims, could adversely affect Note 15—Shareholders' Equity Share Capital held in treasury shares as of March 31, of CHF 0.25 each, all of which were issued and 8,526,642 of which were 2018. additional conditional capital representing rights granted under the Company's employee equity incentive plans and under a future convertible bond issuance. the issuance of up to 25,000,000 shares to cover any conversion rights for future expansion, investments or This conditional capital was created in order to provide financing flexibility acquisitions.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 843 $ 30,107 Repurchased $$ 250,000 250,000 9,113 $ 155,983 Amounts Shares Amounts Approved (1) 17,311 17,311 103 Shares 102 Pursuant to Swiss corporate law, Logitech International S.A. may only pay dividends in Swiss Francs. The Swiss Francs. pay dividends in S.A. may only International Logitech law, to Swiss corporate Pursuant million million ($115.7 the Company pay CHF 110.7 Board of Directors recommended that In May 2018, the must be retained in a legal of the Company's annual net income a minimum of 5% law, Under Swiss corporate of Directors approved the 2014 share buyback program, which In March 2014, the Company's Board of Directors approved the 2017 share buyback program, which In March 2017, the Company's Board program is shown in the following table (in thousands, summary of the approved and active share buyback A Share Buyback Program March 2014 March 2017 (1) The approval of each of the share buyback programs by the Swiss Takeover Board limits the number of shares Takeover of each of the share buyback programs by the Swiss The approval (1) share capital and voting rights. that the Company may repurchase to no more than 10% of its authorized Note 15—Shareholders' Equity (Continued) Equity 15—Shareholders' Note Dividends million or (CHF 782.3 retained earnings of unappropriated to certain amounts of dividends is limited payment shareholder approval. and is subject to March 31, 2018) exchange rate at based on the $818.0 million September 2017, the dividends for fiscal year 2018. In rate on March 31, 2018) in cash based on the exchange common share, totaling (USD equivalent of $0.63) per and paid cash dividends of CHF 0.61 Company declared September 2016, the outstanding common stock. In million in U.S. Dollars, on the Company’s approximately $104.2 common share, totaling (USD equivalent of $0.57) per and paid cash dividends of CHF 0.56 Company declared 2015, the outstanding common stock. In September million in U.S. Dollars, on the Company’s approximately $93.1 totaling per share (USD equivalent of $0.53), and paid cash dividends of CHF 0.51 Company declared million in U.S. Dollars. approximately $85.9 Legal Reserves per share 20% of the Company's issued and outstanding aggregate par value reserve until this legal reserve equals of retained earnings that are not available for distribution These legal reserves represent an appropriation capital. 2018 (based on the exchange rate at March 31, 2018). and totaled $10.0 million at March 31, Share Repurchases This share buyback program to $250.0 million to purchase its own shares. authorizes the Company to use up April 2017. expired in of 2014 to $250.0 million to purchase its own shares following the expiration date authorizes the Company to use up for a period of three is expected to remain in effect The Company's share buyback program buyback program. from time to time on the open market, through block trades or otherwise. years. Shares may be repurchased other at any time without prior notice depending on market conditions and Purchases may be started or stopped factors. excluding transaction costs): 101 Logitech Europe S.A.,one of the Company's wholly-owned subsidiaries, guaranteed payments of two third- payments of guaranteed wholly-owned subsidiaries, of the Company's Europe S.A.,one Logitech matters such as customers for losses arising from certain of its suppliers and The Company indemnifies and former officers. directors and certain of its current indemnifies its current and former The Company also in claims and legal proceedings which arise in the ordinary course From time to time the Company is involved 173,106,620 shares with a par value The Company's nominal share capital is CHF 43.3 million, consisting of for potential issuance on the exercise of The Company's has reserved conditional capital of 25,000,000 shares The Stock Purchase Agreement that the Company entered into in connection with the investment by three Agreement that the Company The Stock Purchase Note 14—Commitments and Contingencies (Continued) Contingencies 14—Commitments Note and Guarantees this guarantee amount of 31, 2018, the maximum As of March purchase obligations. manufacturers' party contract outstanding. obligations was purchase $1.0 million of guaranteed million, of which was $3.8 Indemnifications The scope of these subject to certain restrictions. disputes and product safety defects, intellectual property including reasonable for damages and expenses, but in some instances includes indemnification indemnities varies, The for these indemnification provisions. 2018, no amounts have been accrued As of March 31, attorneys' fees. that it is probable and information currently available, believe, based on historical experience Company does not under its indemnification arrangements. will be required to be paid that any material amounts The insurance policies. may be recoverable under various for providing such indemnification Certain costs incurred under these arrangements amount that could be payable to reasonably estimate the maximum Company is unable the obligations are conditional in nature and the facts and circumstances because these exposures are not limited, arise are variable. involved in any situation that might contains representations, warranties and covenants of Logitech and Lifesize, venture capital firms in Lifesize, Inc. to certain limitations, the Company has agreed to indemnify the Venture Investors. Subject Inc. to the Venture for certain losses resulting from breaches of or Investors to the Venture Investors and certain persons related third- warranties and covenants as well as certain other obligations, including inaccuracies in such representations, and pre-closing tax obligations of Lifesize. party expenses, restructuring costs Legal Proceedings to several such claims and a small number of legal proceedings. The Company is currently subject of its business. on lack merit and intends to vigorously defend against them. Based The Company believes that these matters a material Company does not believe that resolution of pending matters will have currently available information, the is subject to inherent litigation flows or results of operations. However, on its financial position, cash adverse effect such that the Company's defenses will be successful or that any uncertainties, and there can be no assurances cash flows adverse impact on the Company's business, financial position, lawsuit or claim would not have a material whether meritorious against the Company, Any claims or proceedings period. or results of operations in a particular resources, because of defense costs, diversion of management and operational or not, can have an adverse impact license or other rights, or litigation arising out Any failure to obtain a necessary negative publicity and other factors. the Company's business. of intellectual property claims, could adversely affect Note 15—Shareholders' Equity Share Capital held in treasury shares as of March 31, of CHF 0.25 each, all of which were issued and 8,526,642 of which were 2018. additional conditional capital representing rights granted under the Company's employee equity incentive plans and under a future convertible bond issuance. the issuance of up to 25,000,000 shares to cover any conversion rights for future expansion, investments or This conditional capital was created in order to provide financing flexibility acquisitions. 4,006 44,160 2016 2017 March 31, 4,690 46,210 2017 2018 $ 35,404$ $ 86,304 37,242 $ 85,408 Years Ended March 31, Years 820,347628,192 746,898 510,855 645,694 491,027 2018 $ 1,118,324 $$ 963,674 2,566,863 $ $ 2,221,427 881,379 $ 2,018,100 104 Property, plant and equipment, net by geographic region were as follows (in thousands): plant and equipment, net by geographic Property, States and China were $35.3 million and $37.9 million, plant and equipment, net in the United Property, The United States represented 37%, 37% and 38% of net sales for the fiscal years 2018, 2017 and 2016, net sales for the fiscal years 2018, represented 37%, 37% and 38% of The United States Net sales by geographic region for fiscal years 2018, 2017 and 2016 (based on the customers' locations) were the customers' locations) 2016 (based on 2018, 2017 and for fiscal years by geographic region Net sales During the first quarter of fiscal year 2016, the Company implemented a restructuring plan to exit the OEM 2016, the Company implemented a restructuring plan to exit the OEM During the first quarter of fiscal year

Americas EMEA Asia Pacific Americas EMEA Asia Pacific

respectively. Germany represented 16% and 17% of net sales for the fiscal year 2018 and 2017, respectively. No year 2018 and 2017, respectively. and 17% of net sales for the fiscal Germany represented 16% respectively. from net sales to sales during these periods. Revenues represented more than 10% of net other single country each of fiscal years 2018, represented 2% of net sales for the Company's home domicile, customers in Switzerland, 2017 and 2016. No other as of March 31, 2017. $37.2 million, respectively, as of March 31, 2018, and $37.1 million and respectively, plant and equipment, net at of the Company's total consolidated property, countries represented more than 10% in Switzerland, the Company's home domicile, were plant and equipment, net March 31, 2018 or 2017. Property, 31, 2018 and 2017, respectively. 1.9 million and $2.1 million at March Note 17—Restructuring and streamline the Company's overall its focus on its cloud-based offering, business, reorganize Lifesize to sharpen infrastructure cost reductions with a targeted resource realignment. cost structure through overhead and this plan primarily consisted of severance and other ongoing and one-time Restructuring charges incurred under reduction and structure realignment are termination benefits. Charges and other costs related to the workforce Operations. On a total company basis, presented as restructuring charges in the Consolidated Statements of operations, the Company has including the Lifesize video conferencing business as reported in discontinued for cash severance and other personnel incurred $25.4 million under this restructuring plan, including $24.3 million Company substantially completed this restructuring plan by the fourth quarter of fiscal year 2016. The costs. Note 16—Segment Information (Continued) Information 16—Segment Note (in thousands): as follows 2016 — 71,041 2017 Hedging Deferred Gains (Losses) Total Years Ended March 31, Years — 433 1,295 2,570 89,373 65,510 59,075 2018 498,472112,147107,942 480,312182,717 107,087314,817 430,190 76,879252,330 127,009 98,641 491,995 301,021 103,886 246,390 89,322 314,362 229,718 196,013 245,101 4,082 (2,691) 7,251 (1) 2,566,863 2,221,427 1,947,059 $ 2,566,863 $ 2,221,427 $ 2,018,100 $ 516,637 $ 501,562 $ 492,543 Benefit Plans Defined (1) Accumulated Other Comprehensive Income (Loss) Other Comprehensive Accumulated 5,860 103 104 Translation Cumulative Adjustment $ (89,708) $$ (10,480) (83,848) $ $ (6,398) $ (518) $ (100,706) (3,209) $ (93,455) transitioned out of, because they are no longer strategic to the Company's business. transitioned out of, because they are no longer strategic to the Company's (1) As discussed in "Note 2 — Summary of Significant Accounting Policies", the Company has determined that it Accounting of Significant As discussed in "Note 2 — Summary (in sales channels, excluding intercompany transactions, were as follows Net sales by product categories and (1) to transition out of, or have already Other category includes products that the Company currently intends Total Net Sales Total Keyboards & Combos PC Webcams Accessories & Other Tablet Collaboration Video Mobile Speakers Audio-PC & Wearables Gaming Smart Home Other Net Retail Sales Total OEM Pointing Devices

March 31, 2017 income (loss) Other comprehensive March 31, 2018

______or 2017. not significant as of March 31, 2018 was effect Tax (1) Note 16—Segment Information that encompasses the design, manufacturing and marketing of peripherals operates in a single operating segment Operating performance measures are provided directly to the for PCs, tablets and other digital platforms. periodically The CEO Decision Maker. Chief Operating to be the Company’s Company's CEO, who is considered These and adjusted operating income (loss) to make business decisions. reviews information such as net sales not include restructuring charges (credits), net, share-based compensation operating performance measures do acquisition- on inventory, assets, charges from the purchase accounting effect expense, amortization of intangible equity contingent consideration from business acquisition, or gain (loss) from related costs, change in fair value of method investment. thousands): Note 15—Shareholders' Equity (Continued) Equity 15—Shareholders' Note Loss Other Comprehensive Accumulated thousands): as follows (in loss were other comprehensive of accumulated The components

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 4,006 44,160 2016 2017 March 31, 4,690 46,210 2017 2018 $ 35,404$ $ 86,304 37,242 $ 85,408 Years Ended March 31, Years 820,347628,192 746,898 510,855 645,694 491,027 2018 $ 1,118,324 $$ 963,674 2,566,863 $ $ 2,221,427 881,379 $ 2,018,100 105 104 Property, plant and equipment, net in the United States and China were $35.3 million and $37.9 million, plant and equipment, net in the United Property, Property, plant and equipment, net by geographic region were as follows (in thousands): plant and equipment, net by geographic Property, The United States represented 37%, 37% and 38% of net sales for the fiscal years 2018, 2017 and 2016, net sales for the fiscal years 2018, represented 37%, 37% and 38% of The United States Net sales by geographic region for fiscal years 2018, 2017 and 2016 (based on the customers' locations) were the customers' locations) 2016 (based on 2018, 2017 and for fiscal years by geographic region Net sales During the first quarter of fiscal year 2016, the Company implemented a restructuring plan to exit the OEM 2016, the Company implemented a restructuring plan to exit the OEM During the first quarter of fiscal year EMEA Americas

Americas EMEA Asia Pacific Asia Pacific

respectively, as of March 31, 2018, and $37.1 million and $37.2 million, respectively, as of March 31, 2017. No other as of March 31, 2017. $37.2 million, respectively, as of March 31, 2018, and $37.1 million and respectively, plant and equipment, net at of the Company's total consolidated property, countries represented more than 10% in Switzerland, the Company's home domicile, were plant and equipment, net March 31, 2018 or 2017. Property, 31, 2018 and 2017, respectively. 1.9 million and $2.1 million at March Note 17—Restructuring and streamline the Company's overall its focus on its cloud-based offering, business, reorganize Lifesize to sharpen infrastructure cost reductions with a targeted resource realignment. cost structure through overhead and this plan primarily consisted of severance and other ongoing and one-time Restructuring charges incurred under reduction and structure realignment are termination benefits. Charges and other costs related to the workforce Operations. On a total company basis, presented as restructuring charges in the Consolidated Statements of operations, the Company has including the Lifesize video conferencing business as reported in discontinued for cash severance and other personnel incurred $25.4 million under this restructuring plan, including $24.3 million Company substantially completed this restructuring plan by the fourth quarter of fiscal year 2016. The costs. respectively. Germany represented 16% and 17% of net sales for the fiscal year 2018 and 2017, respectively. No year 2018 and 2017, respectively. and 17% of net sales for the fiscal Germany represented 16% respectively. from net sales to sales during these periods. Revenues represented more than 10% of net other single country each of fiscal years 2018, represented 2% of net sales for the Company's home domicile, customers in Switzerland, 2017 and 2016. Note 16—Segment Information (Continued) Information 16—Segment Note (in thousands): as follows 2016 — 71,041 2017 Hedging Deferred Gains (Losses) Total Years Ended March 31, Years — 433 1,295 2,570 89,373 65,510 59,075 2018 498,472112,147107,942 480,312182,717 107,087314,817 430,190 76,879252,330 127,009 98,641 491,995 301,021 103,886 246,390 89,322 314,362 229,718 196,013 245,101 4,082 (2,691) 7,251 (1) 2,566,863 2,221,427 1,947,059 $ 2,566,863 $ 2,221,427 $ 2,018,100 $ 516,637 $ 501,562 $ 492,543 Benefit Plans Defined (1) Accumulated Other Comprehensive Income (Loss) Other Comprehensive Accumulated 5,860 103 Translation Cumulative Adjustment $ (89,708) $$ (10,480) (83,848) $ $ (6,398) $ (518) $ (100,706) (3,209) $ (93,455) transitioned out of, because they are no longer strategic to the Company's business. transitioned out of, because they are no longer strategic to the Company's (1) As discussed in "Note 2 — Summary of Significant Accounting Policies", the Company has determined that it Accounting of Significant As discussed in "Note 2 — Summary (in sales channels, excluding intercompany transactions, were as follows Net sales by product categories and (1) to transition out of, or have already Other category includes products that the Company currently intends Total Net Retail Sales Total OEM Net Sales Total Pointing Devices Keyboards & Combos PC Webcams Accessories & Other Tablet Collaboration Video Mobile Speakers Audio-PC & Wearables Gaming Smart Home Other

March 31, 2017 income (loss) Other comprehensive March 31, 2018

Note 15—Shareholders' Equity (Continued) Equity 15—Shareholders' Note Loss Other Comprehensive Accumulated thousands): as follows (in loss were other comprehensive of accumulated The components ______or 2017. not significant as of March 31, 2018 was effect Tax (1) Note 16—Segment Information that encompasses the design, manufacturing and marketing of peripherals operates in a single operating segment Operating performance measures are provided directly to the for PCs, tablets and other digital platforms. periodically The CEO Decision Maker. Chief Operating to be the Company’s Company's CEO, who is considered These and adjusted operating income (loss) to make business decisions. reviews information such as net sales not include restructuring charges (credits), net, share-based compensation operating performance measures do acquisition- on inventory, assets, charges from the purchase accounting effect expense, amortization of intangible equity contingent consideration from business acquisition, or gain (loss) from related costs, change in fair value of method investment. thousands): 11 112 1 123 108 110 Page 106 APPLES TABLE OF CONTENTS TABLE SWISS STATUTORY FINANCIAL STATEMENTS FINANCIAL LOGITECH INTERNATIONAL S.A., INTERNATIONAL LOGITECH Report of the Statutory Auditor Report of the Statutory Swiss Statutory Balance Sheets (unconsolidated) (unconsolidated) Swiss Statutory Statements of Income Notes to Swiss Statutory Financial Statements Earnings Available of Appropriation Proposal of the Board of Directors for — 23 954 735 (116) (619) 6,032 (5,320) 17,802 Total March 31, — — $ — — — $ — — — $ 185 2018 2017 (185) (12,724) $$ 20,546 $ 570,057$ $ 13,568 470,832 1,763 $ 1,266 Other — — $ — — — $ 954 $ 125 337 (125) (1,166) Costs Lease Exit Restructuring - Continuing Operations - Continuing Restructuring 105 106 — $ — $ 23 735 $ (116) (619) 5,907 (5,195) 17,280 (11,373) Benefits Termination The following table summarizes restructuring-related activities during fiscal year 2018, 2017 and 2016 from 2018, 2017 and during fiscal year activities restructuring-related table summarizes The following Total personnel expenses amounted to $399.7million, $359.9 million and $296.2 million in fiscal years 2018, personnel expenses amounted to $399.7million, Total of members of the Board of Directors In accordance with the Swiss Code of Obligations, the security ownership risk assessment process, internal audit function coordinates management’s At a company-wide level, Logitech’s The amounts of certain balance sheet items were as follows (in thousands): The amounts of certain balance sheet Charges, net Cash payments Cash payments

Charges, net Credits, net Cash payments Accrual balance at March 31, 2015Accrual balance at $ March 31, 2017Accrual balance at $ Accrual balance at March 31, 2016 Accrual balance at Accrual balance at March 31, 2018 $

Prepayments and accrued income Non-current assets Pension liabilities, current Statement of Income Items 2017, and 2016. Security Ownership of Board Members and Executive Officers are presented in the Swiss Statutory Financial of Logitech International S.A. and Logitech executive officers Statements of Logitech International S.A. Assessment Risk Audit Committee management and to the which encompasses financial and operational risks, and reports to senior the Board of Directors, as appropriate. of the Board of Directors. Material risks are assessed and discussed by Finance and Treasury, of the Company’s Financial risk assessment and management is integrated into the functions Audit Committee. Financial reporting risk is addressed through Business group operations, with oversight from the Accounting, Financial Reporting and SOX Compliance operations and processes. Corporate the Company’s Business groups, of the Company’s Operational risk assessment and management is integrated into the functions Supply Chain, Legal and Finance. Material with support from specialized departments such as Product Quality, Audit Committee and the Board of the financial and financial reporting risks are reported to and reviewed with and reviewed with the Board of Directors. Directors, as appropriate, and material operational risks are reported to The accrual balances are included in accrued and other current liabilities on the Company’s consolidated balance consolidated balance in accrued and other current liabilities on the Company’s The accrual balances are included sheets. by Swiss Law Note 18—Other Disclosures Required Balance Sheet Items Note 17—Restructuring (Continued) 17—Restructuring Note operations (in thousands): continuing

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 11 112 1 108 110 123 Page 107 106 APPLES TABLE OF CONTENTS TABLE SWISS STATUTORY FINANCIAL STATEMENTS FINANCIAL LOGITECH INTERNATIONAL S.A., INTERNATIONAL LOGITECH Report of the Statutory Auditor Report of the Statutory Swiss Statutory Balance Sheets (unconsolidated) (unconsolidated) Swiss Statutory Statements of Income Notes to Swiss Statutory Financial Statements Earnings Available of Appropriation Proposal of the Board of Directors for

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954 735 (116) (619) 6,032 (5,320) 17,802 Total March 31, — $ — — — — $ — — — $ 185 2018 2017 (185) (12,724) $$ 20,546 $ 570,057$ $ 13,568 470,832 1,763 $ 1,266 Other — — $ — — — $ 954 $ 337 125 (125) (1,166) Costs Lease Exit Restructuring - Continuing Operations - Continuing Restructuring 105 — $ — $ 23 735 $ (116) (619) 5,907 (5,195) 17,280 (11,373) Benefits Termination The following table summarizes restructuring-related activities during fiscal year 2018, 2017 and 2016 from 2018, 2017 and during fiscal year activities restructuring-related table summarizes The following The amounts of certain balance sheet items were as follows (in thousands): The amounts of certain balance sheet $359.9 million and $296.2 million in fiscal years 2018, personnel expenses amounted to $399.7million, Total of members of the Board of Directors In accordance with the Swiss Code of Obligations, the security ownership risk assessment process, internal audit function coordinates management’s At a company-wide level, Logitech’s

Charges, net Cash payments Charges, net Cash payments Credits, net Cash payments March 31, 2015Accrual balance at $ Accrual balance at March 31, 2016 Accrual balance at March 31, 2017Accrual balance at $ Accrual balance at March 31, 2018 $ Prepayments and accrued income Non-current assets Pension liabilities, current Note 17—Restructuring (Continued) 17—Restructuring Note operations (in thousands): continuing The accrual balances are included in accrued and other current liabilities on the Company’s consolidated balance consolidated balance in accrued and other current liabilities on the Company’s The accrual balances are included sheets. by Swiss Law Note 18—Other Disclosures Required Balance Sheet Items Statement of Income Items 2017, and 2016. Security Ownership of Board Members and Executive Officers are presented in the Swiss Statutory Financial of Logitech International S.A. and Logitech executive officers Statements of Logitech International S.A. Assessment Risk Audit Committee management and to the which encompasses financial and operational risks, and reports to senior the Board of Directors, as appropriate. of the Board of Directors. Material risks are assessed and discussed by Finance and Treasury, of the Company’s Financial risk assessment and management is integrated into the functions Audit Committee. Financial reporting risk is addressed through Business group operations, with oversight from the Accounting, Financial Reporting and SOX Compliance operations and processes. Corporate the Company’s Business groups, of the Company’s Operational risk assessment and management is integrated into the functions Supply Chain, Legal and Finance. Material with support from specialized departments such as Product Quality, Audit Committee and the Board of the financial and financial reporting risks are reported to and reviewed with and reviewed with the Board of Directors. Directors, as appropriate, and material operational risks are reported to 108 Regula Tobler Audit Licensed Expert circumstances circumstances incompatible with our independence.

KPMG AG Rolf Hauenstein Audit Licensed Expert Auditor in Charge Zurich, May 21, 2018 Report on Other Legal Requirements Requirements Legal on Other Report (article and independence Act (AOA) Oversight Auditor licensing on legal requirements to the according the we meet that confirm We no there are and that AOA) article 11 and 728 CO In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system internal control system that an 890, we confirm Auditing Standard and Swiss 728a article CO 3 with In accordance 1 item paragraph has exists, which been designed the preparation for the of financial directors. board the instructions of according to statements of articles of available the company’s the proposed law and Swiss that of appropriation with earnings complies further confirm We recommend that the financial be approved. statements submitted to you incorporation. We 107 108 To the General Meeting of Logitech International S.A., Apples of Logitech International S.A., the General Meeting To Statements Auditor on the Financial Report of the Statutory which comprise the accompanying Logitech International S.A., financial of we have audited the statements auditor, As statutory balance income sheet, and notes for statement March the year ended 31, 2018. Responsibility Board of Directors’ law requirements of Swiss the accordance with in financial statements the preparation of the responsible is for of directors The board internal control maintaining an implementing and responsibility includes designing, This incorporation. articles of company’s the and The system relevant to the preparation whether of financial statements that are free from material misstatement, due to fraud or error. accounting policies and making accounting estimates selecting and applying appropriate directors is further responsible for board of that are reasonable in the circumstances. Responsibility Auditor’s our conducted audit in accordance Our responsibility to express an opinion on these is financial based on our statements We audit. reasonable obtain audit to the perform plan and we standards require that Those Auditing Standards. and Swiss Swiss law with assurance whether the free from material misstatement. financial statements are The An audit involves performing obtain audit and procedures to evidence about the amounts in the financial disclosures statements. auditor’sprocedures selected depend the on the financial the risks of material misstatement of including assessment judgment, the of relevant control system the internal auditor considers assessments, the risk those In making error. fraud or to due whether statements, design audit procedures that are appropriate circumstances, financial in order to preparation in the the statements of the entity’s to also includes An audit system. internal control entity’s of the purpose of expressing an for the opinion on the effectiveness not but well as made, as estimates reasonableness accounting of used and the accounting policies the evaluating the appropriateness of and sufficient obtained is we have audit evidence the believe that We financial statements. overall presentation of the evaluating the appropriate to provide for basis our audit opinion. a Opinion articles of the company’s 31, law and 2018 comply with Swiss March year ended for the In our opinion, financial statements the incorporation. Authority Audit Oversight 1/2015 of the Federal Audit Matters based on the circular Report on Key financial statements the audit of significance in our most professional were of our judgment, that, in those matters are audit matters Key have determined that there no to communicate in audit our report. are key matters of the current period. We Report of the Statutory Auditor of the Statutory Report

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 109 108 Regula Tobler Audit Licensed Expert circumstances circumstances incompatible with our independence.

Rolf Hauenstein Audit Licensed Expert Auditor in Charge Zurich, May 21, 2018 KPMG AG Report on Other Legal Requirements Requirements Legal on Other Report (article and independence Act (AOA) Oversight Auditor licensing on legal requirements to the according the we meet that confirm We no there are and that AOA) article 11 and 728 CO In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an internal control system internal control system that an 890, we confirm Auditing Standard and Swiss 728a article CO 3 with In accordance 1 item paragraph has exists, which been designed the preparation for the of financial directors. board the instructions of according to statements of articles of available the company’s proposed the law and Swiss that of appropriation with earnings complies further confirm We recommend that the financial be approved. statements submitted to you incorporation. We 107 Report of the Statutory Auditor of the Statutory Report Apples of Logitech International S.A., the General Meeting To Statements Auditor on the Financial Report of the Statutory which comprise the accompanying Logitech International S.A., financial of we have audited the statements auditor, As statutory balance income sheet, and notes for statement March the year ended 31, 2018. Responsibility Board of Directors’ law requirements of Swiss the accordance with in financial statements the preparation of the responsible is for of directors The board internal control maintaining an implementing and responsibility includes designing, This incorporation. articles of company’s the and The system relevant to the preparation whether of financial statements that are free from material misstatement, due to fraud or error. accounting policies and making accounting estimates selecting and applying appropriate directors is further responsible for board of that are reasonable in the circumstances. Responsibility Auditor’s our conducted audit in accordance Our responsibility to express an opinion on these is financial based on our statements We audit. reasonable obtain audit to the perform plan and we standards require that Those Auditing Standards. and Swiss Swiss law with assurance whether the free from material misstatement. financial statements are The An audit involves performing obtain audit and procedures to evidence about the amounts in the financial disclosures statements. auditor’sprocedures selected depend the on the financial the risks of material misstatement of including assessment judgment, the of relevant control system the internal auditor considers assessments, the risk those In making error. fraud or to due whether statements, design audit procedures that are appropriate circumstances, financial in order to preparation in the the statements of the entity’s to also includes An audit system. internal control entity’s of the purpose of expressing an for the opinion on the effectiveness not but well as made, as estimates reasonableness accounting of used and the accounting policies the evaluating the appropriateness of and sufficient obtained is we have audit evidence the believe that We financial statements. overall presentation of the evaluating the appropriate to provide for basis our audit opinion. a Opinion articles of the company’s 31, law and 2018 comply with Swiss March year ended for the In our opinion, financial statements the incorporation. Authority Audit Oversight 1/2015 of the Federal Audit Matters based on the circular Report on Key financial statements the audit of significance in our most professional were of our judgment, that, in those matters are audit matters Key have determined that there no to communicate in audit our report. are key matters of the current period. We — 2017

73 101 949 323 (359) (4,548) 6,518 7,866 8,674 6,923 7,216 8,133 14,652 Year ended March 31, Year 70,818 53,337 29,458 26,522 21,94927,581 18,287 17,629 2018 141,583 177,516 174,128 195,334 212,401 230,853 6 Note 110 (CHF in thousands) LOGITECH INTERNATIONAL S.A., APPLES S.A., INTERNATIONAL LOGITECH SWISS STATUTORY STATEMENTS OF INCOME (unconsolidated) INCOME OF STATEMENTS STATUTORY SWISS The accompanying notes are an integral part of these statutory financial statements. The accompanying notes are an integral Profit for the year Total income Total Total expenses Total Foreign Exchange loss, net Dividend income Royalty fees third parties Interest income from subsidiaries Interest income from Administrative expenses Other expenses Interest paid to subsidiaries Loss/(gain) on treasury shares Brand development expenses withholding taxes Income, capital and non-recoverable Income: Expenses: For comparative purposes there have been certain reclassifications in the prior year figures to conform to the current been certain reclassifications in the prior year figures to conform to For comparative purposes there have on Profit for the year year presentation, resulting in no impact 290 2017

March 31, 536 1,2659,580 1,265 9,580 7,855 5,964 3,946 8,253 43,277 43,277 10,845 10,845 33,506 72,125 14,41618,362 8,818 17,071 2018 640,701141,583 563,211 177,516 176,371 128,844 178,101178,101196,463 203,585 203,585 220,656 674,425870,888 628,458 849,114 134,474 50,465 516,416178,101694,517 516,685 870,888 203,585 720,270 849,114 (161,981) (166,391) 6 4 Note 110 109 (CHF in thousands) LOGITECH INTERNATIONAL S.A., APPLES S.A., INTERNATIONAL LOGITECH SWISS STATUTORY BALANCE SHEETS (unconsolidated) SHEETS BALANCE SWISS STATUTORY The accompanying notes are an integral part of these statutory statements Total liabilities and shareholders’ equity liabilities and shareholders’ Total Total liabilities Total Total shareholders’ equity shareholders’ Total - Profit brought forward - Profit for the year Total current assets Total non-current liabilities Total - Reserve from capital contribution - General legal retained earnings reserves Total assets Total current liabilities Total Available earnings Available Shares Treasury Investments to subsidiaries Long-term interest-bearing payables Share capital Legal capital reserves Legal retailed earnings reserves Short-term bank deposits Receivable from subsidiaries Other receivables Loans to subsidiaries non-current assets Total Payables to subsidiaries Other liabilities Cash Voluntary retained earnings: retained Voluntary Non-current assets: Non-current liabilities: equity: Shareholders’ LIABILITIES AND SHAREHOLDERS’ EQUITY AND SHAREHOLDERS’ LIABILITIES Current liabilities: ASSETS Current assets:

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 — 2017

73 101 949 323 (359) (4,548) 6,923 7,216 8,133 14,652 7,866 8,674 6,518 Year ended March 31, Year 21,94927,581 18,287 17,629 70,818 53,337 29,458 26,522 2018 141,583 177,516 212,401 230,853 174,128 195,334 6 Note 111 110 (CHF in thousands) LOGITECH INTERNATIONAL S.A., APPLES S.A., INTERNATIONAL LOGITECH SWISS STATUTORY STATEMENTS OF INCOME (unconsolidated) INCOME OF STATEMENTS STATUTORY SWISS The accompanying notes are an integral part of these statutory financial statements. The accompanying notes are an integral Profit for the year Total income Total Total expenses Total Administrative expenses Brand development expenses Other expenses Interest paid to subsidiaries withholding taxes Income, capital and non-recoverable Loss/(gain) on treasury shares Dividend income Royalty fees third parties Interest income from subsidiaries Interest income from Foreign Exchange loss, net Expenses: Income: For comparative purposes there have been certain reclassifications in the prior year figures to conform to the current been certain reclassifications in the prior year figures to conform to For comparative purposes there have on Profit for the year year presentation, resulting in no impact 290 2017

March 31, 536 1,2659,580 1,265 9,580 7,855 5,964 3,946 8,253 10,845 10,845 43,277 43,277 33,506 72,125 14,41618,362 8,818 17,071 2018 640,701141,583 563,211 177,516 178,101178,101196,463 203,585 203,585 220,656 674,425870,888 628,458 849,114 176,371 128,844 134,474 50,465 516,416178,101694,517 516,685 870,888 203,585 720,270 849,114 (161,981) (166,391) 6 4 Note 109 (CHF in thousands) LOGITECH INTERNATIONAL S.A., APPLES S.A., INTERNATIONAL LOGITECH SWISS STATUTORY BALANCE SHEETS (unconsolidated) SHEETS BALANCE SWISS STATUTORY The accompanying notes are an integral part of these statutory statements Total liabilities and shareholders’ equity liabilities and shareholders’ Total Total liabilities Total Total shareholders’ equity shareholders’ Total - Profit brought forward - Profit for the year Total non-current liabilities Total - Reserve from capital contribution - General legal retained earnings reserves Total current assets Total Total assets Total current liabilities Total Available earnings Available Shares Treasury Investments to subsidiaries Long-term interest-bearing payables Share capital Legal capital reserves Legal retailed earnings reserves Cash Short-term bank deposits Receivable from subsidiaries Other receivables Loans to subsidiaries non-current assets Total Payables to subsidiaries Other liabilities Voluntary retained earnings: retained Voluntary Non-current assets: Non-current liabilities: equity: Shareholders’ ASSETS Current assets: EQUITY AND SHAREHOLDERS’ LIABILITIES Current liabilities: 112 During the prior year, the Holding Company received a dividend in kind from its wholly-owned subsidiary, The Holding Company has issued guarantees to various banks for lines of credit available to its subsidiaries As Logitech International S.A. has separately prepared its consolidated financial statements in accordance with a with accordance in statements financial consolidated its prepared separately has S.A. International Logitech As Logitech Europe S.A., in connection with the acquisition of Jaybird LLC (“Jaybird”). Logitech Europe S.A. acquired acquired S.A. Europe Logitech (“Jaybird”). LLC Jaybird of acquisition the with connection in S.A., Europe Logitech transferred Jaybird acquisition, that following immediately and, 2016 20, April on Jaybird of interests equity the of all interests equity the of all contributed S.A. Europe Logitech and S.A. Europe Logitech to liabilities and assets certain dividend a declaring by Company Holding in the Jaybird to shares to Inc’s Logitech Logitech Inc. for subscribe in to exchange right for preferential its a distributed preferential Shareholders of right Meeting General to Extraordinary the Logitech at Directors Inc’s of Board shares. the by Logitech approved was Europe dividend The S.A. kind. in Annual of the Holding Financial Statements Company. prior to the approval of the 2017 for CHF 19.2 million and CHF 22.6 million at March 31, During 2018 2015, and the March 31, 2017, respectively. subsidiaries its to available credit of lines for institution financial one to guarantee a issued also Company Holding without specific As amount. of March 31, 2018 and 2017, there were no outstanding draw down amounts on the guarantee. Foregoing a cash flow statement and additional disclosures in the notes in disclosures statement additional and a cash flow Foregoing recognized accounting standard (US GAAP), it has decided to forego presenting additional information on interest- bearing liabilities in and audit fees in flow statement as well as a cash the notes with Swiss accordance law. Acquisition: Related to Jaybird Distribution by Subsidiary Company Note 2 - Dividend Note 3 - Contingent Liabilities: 111 112 NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS FINANCIAL STATUTORY SWISS TO NOTES Interest-bearing liabilities are recognized in the balance sheet at nominal value. denominated liabilities and assets all rates, historical at translated are which subsidiaries, in investments for Except Investments are recorded at acquisition cost less any impairment loss. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland, which The Swiss statutory financial statements of Logitech International S.A., Apples (“the Holding Company”) are Company Holding the of operations of results and position financial the present statements financial statutory The The accounting policies set out below have been applied consistently in all periods presented in these financial Financial assets include long-term loans. Loans granted in foreign currencies are translated at the rate at the acquisition. of time the at equity shareholders' from deducted and cost acquisition at recognized are shares Treasury When treasury shares are used for share-based payment programs for Board members and employees, the recognized as loss on treasury shares. Long-term interest-bearing liabilities Exchange rate differences in foreign currencies are translated into Swiss francs (CHF) using year-end rates of exchange. Realized exchange gains and losses arising from these as well as those from business transactions denominated in foreign currencies are recorded in the statement of income. Net unrealized exchange losses are recorded in the statement of income; within are deferred accrued liabilities. net unrealized gains, however, Investments in subsidiaries General and Basis of Presentation: Note 1 - General Asia Pacific. Africa (“EMEA”) and Americas, conducts Europe, its Middle business East through & subsidiaries in the and LOGN symbol trading the under Exchange Swiss SIX the both on listed are S.A. International Logitech of Shares the Nasdaq under Global Select Market the trading symbol LOGI. the of title (32nd Reporting Financial and Accounting on Law Swiss the of provisions the with accordance in prepared Swiss Code the of significant Obligations). accounting Where and not valuation prescribed principles by applied law, are described below. on a standalone basis and do not represent subsidiaries. the consolidated financial position of the Holding Company and its statements, unless otherwise stated. For comparative purposes, there has been reclassifications a reclassification These in million. the 1.9 prior year CHF figures between of Foreign exchange loss, amount net and Other the Expenses in the amount in of CHF (17.6) shares million, and between treasury on Loss/(gain) and net loss, exchange Foreign the year. resulted in for no impact to the Profit subsidiaries Loans to balance sheet date, whereby unrealized losses are recorded but unrealized profits are not recognized. shares Treasury Shares. Treasury on Loss/(Gain) a as statement income the through recognized is loss or gain the resale, a of case In Treasury shares held may be reissued to satisfy the exercise of employee stock options vesting of and restricted purchase stock units, rights, and the acquisitions, or may be cancelled with shareholder approval. Treasury shares that are reissued first-out basis. are accounted for using the first-in, Share-based payments between difference the acquisition costs and any consideration paid by the employees at date of exercise or vesting is

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 113 112 During the prior year, the Holding Company received a dividend in kind from its wholly-owned subsidiary, The Holding Company has issued guarantees to various banks for lines of credit available to its subsidiaries As Logitech International S.A. has separately prepared its consolidated financial statements in accordance with a with accordance in statements financial consolidated its prepared separately has S.A. International Logitech As Logitech Europe S.A., in connection with the acquisition of Jaybird LLC (“Jaybird”). Logitech Europe S.A. acquired acquired S.A. Europe Logitech (“Jaybird”). LLC Jaybird of acquisition the with connection in S.A., Europe Logitech transferred Jaybird acquisition, that following immediately and, 2016 20, April on Jaybird of interests equity the of all interests equity the of all contributed S.A. Europe Logitech and S.A. Europe Logitech to liabilities and assets certain dividend a declaring by Company Holding in the Jaybird to shares to Inc’s Logitech Logitech Inc. for subscribe in to exchange right for preferential its a distributed preferential Shareholders of right Meeting General to Extraordinary the Logitech at Directors Inc’s of Board shares. the by Logitech approved was Europe dividend The S.A. kind. in Annual of the Holding Financial Statements Company. prior to the approval of the 2017 for CHF 19.2 million and CHF 22.6 million at March 31, During 2018 2015, and the March 31, 2017, respectively. subsidiaries its to available credit of lines for institution financial one to guarantee a issued also Company Holding without specific As amount. of March 31, 2018 and 2017, there were no outstanding draw down amounts on the guarantee. Note 3 - Contingent Liabilities: Foregoing a cash flow statement and additional disclosures in the notes in disclosures statement additional and a cash flow Foregoing recognized accounting standard (US GAAP), it has decided to forego presenting additional information on interest- bearing liabilities in and audit fees in flow statement as well as a cash the notes with Swiss accordance law. Acquisition: Related to Jaybird Distribution by Subsidiary Company Note 2 - Dividend 111 NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS FINANCIAL STATUTORY SWISS TO NOTES General and Basis of Presentation: General - Interest-bearing liabilities are recognized in the balance sheet at nominal value. denominated liabilities and assets all rates, historical at translated are which subsidiaries, in investments for Except Investments are recorded at acquisition cost less any impairment loss. Logitech International S.A. is a Swiss holding company with its registered office in Apples, Switzerland, which The Swiss statutory financial statements of Logitech International S.A., Apples (“the Holding Company”) are Company Holding the of operations of results and position financial the present statements financial statutory The The accounting policies set out below have been applied consistently in all periods presented in these financial Financial assets include long-term loans. Loans granted in foreign currencies are translated at the rate at the acquisition. of time the at equity shareholders' from deducted and cost acquisition at recognized are shares Treasury When treasury shares are used for share-based payment programs for Board members and employees, the recognized as loss on treasury shares. Long-term interest-bearing liabilities Exchange rate differences in foreign currencies are translated into Swiss francs (CHF) using year-end rates of exchange. Realized exchange gains and losses arising from these as well as those from business transactions denominated in foreign currencies are recorded in the statement of income. Net unrealized exchange losses are recorded in the statement of income; within are deferred accrued liabilities. net unrealized gains, however, Investments in subsidiaries Note 1 Asia Pacific. Africa (“EMEA”) and Americas, conducts Europe, its Middle business East through & subsidiaries in the and LOGN symbol trading the under Exchange Swiss SIX the both on listed are S.A. International Logitech of Shares the Nasdaq under Global Select Market the trading symbol LOGI. the of title (32nd Reporting Financial and Accounting on Law Swiss the of provisions the with accordance in prepared Swiss Code the of significant Obligations). accounting Where and not valuation prescribed principles by applied law, are described below. on a standalone basis and do not represent subsidiaries. the consolidated financial position of the Holding Company and its statements, unless otherwise stated. For comparative purposes, there has been reclassifications a reclassification These in million. the 1.9 prior year CHF figures between of Foreign exchange loss, amount net and Other the Expenses in the amount in of CHF (17.6) shares million, and between treasury on Loss/(gain) and net loss, exchange Foreign the year. resulted in for no impact to the Profit subsidiaries Loans to balance sheet date, whereby unrealized losses are recorded but unrealized profits are not recognized. shares Treasury Shares. Treasury on Loss/(Gain) a as statement income the through recognized is loss or gain the resale, a of case In Treasury shares held may be reissued to satisfy the exercise of employee stock options vesting of and restricted purchase stock units, rights, and the acquisitions, or may be cancelled with shareholder approval. Treasury shares that are reissued first-out basis. are accounted for using the first-in, Share-based payments between difference the acquisition costs and any consideration paid by the employees at date of exercise or vesting is 1 2 — 13 13 12 Share Capital

% 100 USD100 22,000,000 USD 7,800,000 100 AUD 100 CNY100 10,000,000 HKD 110,000 100 AUD Holding

India 100 INR 107,760 India 100 INR 200,000 China China China China Korea 100 KRW 150,144,225 Japan 100 JPY 155,000,000 Australia Australia Malaysia 100 MYR Hong KongHong Kong 100 100 USD USD Hong Kong 100 USD 1,282 New Zealand 100 NZD 10,000 Commonwealth of Commonwealth of 114 People’s Republic of People’s of Republic People’s People’s Republic of Republic People’s of Republic People’s Republic of Singapore 100 SGD 2,559,863 Republic of Singapore 100 USD Jurisdiction of Incorporation Jurisdiction Taiwan, Republic of China Republic of Taiwan, 100 TWD 260,000,000 Consolidated Subsidiaries-(Continued) Consolidated Logitech Singapore Pte Ltd Logitech Singapore (Suzhou) Co, Ltd Technology Logitech Co Ltd Technology Logitech (China) Logistics Limited Asia Logitech Pacific Limited Asia Logitech Australia Computer Logitech Limited Peripherals Pty, LogiCool Co., Ltd (India) Private Ltd Logitech Electronic Ltd Logitech Far East, Limited Logitech Hong Kong Logitech Korea Ltd Co., Ltd Logitech New Zealand Ltd Asia Pacific Pte Logitech Service Trading Logitech (Beijing) Company Limited (Shenzhen) Technology Logitech Consulting Co Ltd Logitech Engineering & Designs India Private Limited Logi Computer Peripherals (Malaysia) Sdn. Bhd Australia Pty Ltd. Logitech JB Name of Subsidiary PACIFIC ASIA Note 4-Investments in subsidiaries: (Continued) subsidiaries: in 4-Investments Note 3 1 1 1 — — 10 10 10 10 100 Share Capital

% 100 EUR 25,565 100 EUR 18,151 Holding

Brazil 100 BRL 10,000 Spain 100 EUR 50,000 Ireland 100 EUR Russia 100 RUB 20,000 Poland 100 PLN 50,000 Mexico 100 MXN 50,000 Greece 100 EUR 18,000 Norway 100 NOK 100,000 Canada 100 CAD Sweden 100 SEK 100,000 Mexico 100 MXN 50,000 Germany Argentina 100 ARS 10,000 Switzerland 100Switzerland CHF 100 150,000 CHF 100,000 SwitzerlandSwitzerland 100Switzerland CHF 100Switzerland CHF 100 200,000 100 CHF 100,000 CHF 100,000 20,000 Netherlands South AfricaSouth 100 ZAR 1,000 Kingdom of the Republic of Italy 100 EUR 20,000 United Kingdom 100 GBP 20,000 Republic of France 100 EUR 182,939 Federal Republic of Federal Republic 113 United Arab EmiratesArab United 100 AED 100,000 114 Jurisdiction of Incorporation Jurisdiction United States of AmericaUnited States of AmericaUnited States of AmericaUnited States of 100AmericaUnited States of 100America USD United States of 37.5America USD United States of 100 USD 100 USD 100 USD USD United States of America United States of America United States of America United States of 100America United States of 100 USD 100 USD 100 11,522.396 USD USD

The Holding Company’s subsidiaries directly and indirectly held include the following: held include the and indirectly subsidiaries directly Company’s The Holding Logitech U.K. Limited SL Logitech Espana BCN Logitech Europe S.A. SAS Logitech France Limited Logitech Ireland Services Logitech (Slim Devices) Inc. Logitech Servicios Latinoamérica, de C.V S.A Ultimate Ears Incorporated SightSpeed, Inc. America, Inc. Logitech Latin Labtec Europe S.A. Logitech GmbH Logitech (Streaming Media) Inc. Logitech Italia SRL Logitech Poland Spolka z.o.o Logitech S.A. Logitech Middle East FZ-LLC Logitech (Streaming Media) SA Logitech Hellas MEPE AG Logitech Schweiz Logitech Upicto GmbH Limited Liability Company “Logitech” Technologies Logi Peripherals Africa) (Proprietary) Limited (South AS Logitech Norway S.R.L. Argentina Logitech Logitech Do Brasil Comercio de de Informatica Ltda. Accessorios Logitech de Mexico S.A. de C.V. Logitech Canada Inc. Logitech Inc. WiLife, Inc. LifeSize Communications, Inc. Acquisition Inc. UE Jaybird LLC Logitech Nordic AB Logitech Nordic Logitech Benelux B.V. Name of Subsidiary EMEA AMERICAS Fiscal year 2018 Fiscal year Note 4 - Investments in subsidiaries: in subsidiaries: 4 - Investments Note

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 1 2 — 13 13 12 Share Capital

% 100 CNY100 10,000,000 HKD 110,000 100 USD100 22,000,000 USD 7,800,000 100 AUD 100 AUD Holding

India 100 INR 200,000 India 100 INR 107,760 China China China China Korea 100 KRW 150,144,225 Japan 100 JPY 155,000,000 Australia Australia Malaysia 100 MYR Hong Kong 100 USD Hong Kong 100 USD 1,282 Hong Kong 100 USD New Zealand 100 NZD 10,000 Commonwealth of Commonwealth of 115 114 People’s Republic of Republic People’s of Republic People’s People’s Republic of People’s of Republic People’s Republic of SingaporeRepublic of Singapore 100 100 USD SGD 2,559,863 Jurisdiction of Incorporation Jurisdiction Taiwan, Republic of China Republic of Taiwan, 100 TWD 260,000,000 Consolidated Subsidiaries-(Continued) Consolidated Logitech Asia Pacific Limited Asia Logitech Australia Computer Logitech Limited Peripherals Pty, Trading Logitech (Beijing) Company Limited (Shenzhen) Technology Logitech Consulting Co Ltd Logitech Engineering & Designs India Private Limited Logi Computer Peripherals (Malaysia) Sdn. Bhd LogiCool Co., Ltd (India) Private Ltd Logitech Electronic Ltd Logitech Far East, Logitech Korea Ltd Co., Ltd Logitech New Zealand Ltd Asia Pacific Pte Logitech Service Pte Ltd Logitech Singapore (Suzhou) Co, Ltd Technology Logitech Co Ltd Technology Logitech (China) Logistics Limited Asia Logitech Australia Pty Ltd. Logitech JB Logitech Hong Kong Limited Logitech Hong Kong Name of Subsidiary PACIFIC ASIA Note 4-Investments in subsidiaries: (Continued) subsidiaries: in 4-Investments Note

1 1 1

— —

10 10

10 10 100 Share Capital

% 100 EUR 25,565 100 EUR 18,151 Holding

Brazil 100 BRL 10,000 Spain 100 EUR 50,000 Ireland 100 EUR Russia 100 RUB 20,000 Poland 100 PLN 50,000 Mexico 100 MXN 50,000 Greece 100 EUR 18,000 Norway 100 NOK 100,000 Canada 100 CAD Sweden 100 SEK 100,000 Mexico 100 MXN 50,000 Germany Argentina 100 ARS 10,000 Switzerland 100Switzerland CHF 100 150,000 CHF 100,000 SwitzerlandSwitzerland 100Switzerland CHF 100Switzerland CHF 100 200,000 100 CHF 100,000 CHF 100,000 20,000 Netherlands South AfricaSouth 100 ZAR 1,000 Kingdom of the Republic of Italy 100 EUR 20,000 United Kingdom 100 GBP 20,000 Republic of France 100 EUR 182,939 Federal Republic of Federal Republic 113 United Arab EmiratesArab United 100 AED 100,000 Jurisdiction of Incorporation Jurisdiction United States of AmericaUnited States of AmericaUnited States of AmericaUnited States of 100AmericaUnited States of 100America USD United States of 37.5America USD United States of 100 USD 100 USD 100 USD USD United States of America United States of America United States of America United States of 100America United States of 100 USD 100 USD 100 11,522.396 USD USD

The Holding Company’s subsidiaries directly and indirectly held include the following: held include the and indirectly subsidiaries directly Company’s The Holding Labtec Europe S.A. Logitech U.K. Limited SL Logitech Espana BCN Logitech Europe S.A. SAS Logitech France Logitech GmbH Limited Logitech Ireland Services Logitech Italia SRL AB Logitech Nordic Logitech Benelux B.V. Logitech Poland Spolka z.o.o Logitech S.A. Logitech Middle East FZ-LLC Logitech (Streaming Media) SA Logitech Hellas MEPE AG Logitech Schweiz Logitech Upicto GmbH Limited Liability Company “Logitech” Technologies Logi Peripherals Africa) (Proprietary) Limited (South AS Logitech Norway S.R.L. Argentina Logitech Logitech Do Brasil Comercio de de Informatica Ltda. Accessorios Logitech de Mexico S.A. de C.V. Logitech Canada Inc. Logitech Inc. Logitech (Streaming Media) Inc. SightSpeed, Inc. America, Inc. Logitech Latin Logitech (Slim Devices) Inc. WiLife, Inc. Logitech Servicios Latinoamérica, de C.V S.A Ultimate Ears Incorporated LifeSize Communications, Inc. Acquisition Inc. UE Jaybird LLC Name of Subsidiary EMEA AMERICAS Fiscal year 2018 Fiscal year Note 4 - Investments in subsidiaries: in subsidiaries: 4 - Investments Note 1 2 — 13 13 12 1,282 Share Capital

% 100100 USD USD 22,000,000 7,800,000 100 AUD 100 CNY100 10,000,000 HKD 110,000 100 AUD Holding

India 100 INR 107,760 India 100 INR 200,000 China China China China Korea 100 KRW 150,144,225 Japan 100 JPY 155,000,000 Australia Australia Malaysia 100 MYR Hong Kong 100 USD Hong KongHong Kong 100 100 USD USD New Zealand 100 NZD 10,000 Commonwealth of Commonwealth of 116 People’s Republic of People’s of Republic People’s People’s Republic of Republic People’s of Republic People’s Republic of SingaporeRepublic of Singapore 100 100 USD SGD 2,559,863 Jurisdiction of Incorporation Jurisdiction Taiwan, Republic of China Republic of Taiwan, 100 TWD 260,000,000 Consolidated Subsidiaries-(Continued) Consolidated For the fiscal years ended March 31, 2018 and March 31, 2017 the Holding Company did not release any For the fiscal years ended March 31, 2018 and March 31, 2017 the Holding LogiCool Co., Ltd (India) Private Ltd Logitech Electronic Ltd Logitech Far East, Limited Logitech Hong Kong Co., Ltd Logitech New Zealand Ltd Asia Pacific Pte Logitech Service Pte Ltd Logitech Singapore (Suzhou) Co, Ltd Technology Logitech Co Ltd Technology Logitech (China) Logistics Limited Asia Logitech Pacific Limited Asia Logitech Australia Computer Logitech Limited Peripherals Pty, Logitech Korea Ltd Logitech (Beijing) Trading Logitech (Beijing) Company Limited (Shenzhen) Technology Logitech Consulting Co Ltd Logitech Engineering & Designs India Private Limited Logi Computer Peripherals (Malaysia) Sdn. Bhd Australia Pty Ltd. Logitech JB Name of Subsidiary PACIFIC ASIA Note 4-Investments in subsidiaries: (Continued) subsidiaries: in 4-Investments Note Note 5 - Release of Hidden Reserves: hidden reserves. 3 1 1 1 — — 10 10 10 10 100 1,000 Share Capital

% 100 EUR 25,565 100 EUR 18,151 100 ARS 10,000 100100 BRL MXN 10,000 50,000 Holding

Brazil Spain 100 EUR 50,000 Ireland 100 EUR Russia 100 RUB 20,000 Poland 100 PLN 50,000 Mexico Greece 100 EUR 18,000 Norway 100 NOK 100,000 Canada 100 CAD Sweden 100 SEK 100,000 Mexico 100 MXN 50,000 Germany Argentina Switzerland 100Switzerland CHF 100 150,000 CHF 100,000 SwitzerlandSwitzerland 100Switzerland CHF 100Switzerland CHF 100 200,000 100 CHF 100,000 CHF 100,000 20,000 Netherlands South AfricaSouth 100 ZAR Kingdom of the Republic of ItalyRepublic of Italy 100 100 EUR EUR 20,000 100,000 United Kingdom 100 GBP 20,000 Republic of France 100 EUR 182,939 115 Federal Republic of Federal Republic 116 United Arab EmiratesArab United 100 AED 100,000 Jurisdiction of Incorporation Jurisdiction United States of AmericaUnited States of AmericaUnited States of AmericaUnited States of 100AmericaUnited States of 100AmericaUnited States of USD 37.5AmericaUnited States of USD 100 USD 100 USD 100 USD USD United States of America United States of America United States of America United States of 100America United States of 100 USD 100 USD 100 11,522.396 USD USD

Consolidated Subsidiaries-(Continued) Consolidated Logitech U.K. Limited SL Logitech Espana BCN Logitech Europe S.A. SAS Logitech France Limited Logitech Ireland Services Labtec Europe S.A. Logitech GmbH Logitech Italia SRL Logitech Poland Spolka z.o.o Logitech S.A. Logitech Middle East FZ-LLC Logitech (Streaming Media) SA Logitech Hellas MEPE AG Logitech Schweiz Logitech Upicto GmbH Limited Liability Company “Logitech” Technologies Logi Peripherals Africa) (Proprietary) Limited (South Logitech Mirial Srl AB Logitech Nordic Logitech Benelux B.V. AS Logitech Norway S.R.L. Argentina Logitech Logitech Do Brasil Comercio de Informatica Ltda. Accessorios de Logitech de Mexico S.A. de C.V. Logitech Canada Inc. Logitech Inc. Logitech (Slim Devices) Inc. Logitech Servicios Latinoamérica, de C.V S.A Ultimate Ears Incorporated SightSpeed, Inc. America, Inc. Logitech Latin Logitech (Streaming Media) Inc. WiLife, Inc. LifeSize Communications, Inc. Acquisition Inc. UE Jaybird LLC Name of Subsidiary EMEA AMERICAS Fiscal year 2017 Fiscal year Note 4-Investments in subsidiaries: (Continued) subsidiaries: in 4-Investments Note

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 1 2 — 13 13 12 1,282 Share Capital

% 100100 USD USD 22,000,000 7,800,000 100 CNY100 10,000,000 HKD 110,000 100 AUD 100 AUD Holding

India 100 INR 107,760 India 100 INR 200,000 China China China China Korea 100 KRW 150,144,225 Japan 100 JPY 155,000,000 Australia Australia Malaysia 100 MYR Hong Kong 100 USD Hong Kong 100 USD Hong Kong 100 USD New Zealand 100 NZD 10,000 117 Commonwealth of Commonwealth of 116 People’s Republic of People’s of Republic People’s People’s Republic of Republic People’s of Republic People’s Republic of Singapore 100 SGD 2,559,863 Republic of Singapore 100 USD Jurisdiction of Incorporation Jurisdiction Taiwan, Republic of China Republic of Taiwan, 100 TWD 260,000,000 Consolidated Subsidiaries-(Continued) Consolidated For the fiscal years ended March 31, 2018 and March 31, 2017 the Holding Company did not release any For the fiscal years ended March 31, 2018 and March 31, 2017 the Holding LogiCool Co., Ltd (India) Private Ltd Logitech Electronic Ltd Logitech Far East, Pte Ltd Logitech Singapore (Suzhou) Co, Ltd Technology Logitech Co Ltd Technology Logitech (China) Logistics Limited Asia Logitech Logitech Hong Kong Limited Logitech Hong Kong Logitech Korea Ltd Co., Ltd Logitech New Zealand Ltd Asia Pacific Pte Logitech Service Pacific Limited Asia Logitech Australia Computer Logitech Limited Peripherals Pty, Trading Logitech (Beijing) Company Limited (Shenzhen) Technology Logitech Consulting Co Ltd Logitech Engineering & Designs India Private Limited Logi Computer Peripherals (Malaysia) Sdn. Bhd Logitech JB Australia Pty Ltd. Logitech JB Name of Subsidiary PACIFIC ASIA Note 4-Investments in subsidiaries: (Continued) subsidiaries: in 4-Investments Note Note 5 - Release of Hidden Reserves: hidden reserves.

1 1

— —

10 10 10 10 100 1,000 Share Capital

% 100 EUR 25,565 100 EUR 18,151 100 ARS 10,000 100 BRL 10,000 100 MXN 50,000 Holding

Brazil Spain 100 EUR 50,000 Ireland 100 EUR Russia 100 RUB 20,000 Poland 100 PLN 50,000 Mexico Greece 100 EUR 18,000 Norway 100 NOK 100,000 Canada 100 CAD Sweden 100 SEK 100,000 Mexico 100 MXN 50,000 Germany Argentina Switzerland 100Switzerland CHF 100 150,000 CHF 100,000 SwitzerlandSwitzerland 100Switzerland CHF 100Switzerland CHF 100 200,000 100 CHF 100,000 CHF 100,000 20,000 Netherlands South AfricaSouth 100 ZAR Kingdom of the Republic of ItalyRepublic of Italy 100 100 EUR EUR 20,000 100,000 United Kingdom 100 GBP 20,000 Republic of France 100 EUR 182,939 115 Federal Republic of Federal Republic United Arab EmiratesArab United 100 AED 100,000 Jurisdiction of Incorporation Jurisdiction United States of AmericaUnited States of AmericaUnited States of AmericaUnited States of 100AmericaUnited States of 100AmericaUnited States of USD 37.5AmericaUnited States of USD 100 USD 100 USD 100 USD USD United States of America United States of America United States of America United States of 100America United States of 100 USD 100 USD 100 11,522.396 USD USD

Consolidated Subsidiaries-(Continued) Consolidated Labtec Europe S.A. Logitech U.K. Limited SL Logitech Espana BCN Logitech Europe S.A. SAS Logitech France Logitech GmbH Logitech Ireland Services Limited Logitech Ireland Services Logitech Italia SRL Logitech Mirial Srl AB Logitech Nordic Logitech Benelux B.V. Logitech Poland Spolka z.o.o Logitech S.A. Logitech Middle East FZ-LLC Logitech (Streaming Media) SA Logitech Hellas MEPE AG Logitech Schweiz Logitech Upicto GmbH Limited Liability Company “Logitech” Technologies Logi Peripherals Africa) (Proprietary) Limited (South Logitech Norway AS Logitech Norway S.R.L. Argentina Logitech Logitech Do Brasil Comercio de Informatica Ltda. Accessorios de Logitech de Mexico S.A. de C.V. Logitech Canada Inc. Logitech (Streaming Media) Inc. Logitech (Slim Devices) Inc. Logitech Servicios Latinoamérica, de C.V S.A Ultimate Ears Incorporated SightSpeed, Inc. LifeSize Communications, Inc. America, Inc. Logitech Latin Jaybird LLC Logitech Inc. WiLife, Inc. Acquisition Inc. UE Name of Subsidiary EMEA AMERICAS Fiscal year 2017 Fiscal year Note 4-Investments in subsidiaries: (Continued) subsidiaries: in 4-Investments Note March 31, 2018 Relevant Date February 16, 2016 (2) Percentage of Percentage Voting Rights Voting (1) Shares Number of Number of 6,929,9715,259,5005,239,853 4.0% 3.0% 3.0% September 29, 2014 10,239,913 5.9% 31, 2017 December 118 (5) (4) (3)

The Holding Company’s share capital the consists knowledge of of registered the shares. To Holding Company, of Trading Derivatives and Securities in Conduct Market and Infrastructures Market Financial on Act Federal The Name BlackRock, Inc. Daniel Borel AG UBS Fund Management (Switzerland) Credit Suisse AG Credit Suisse Note 8 - Significant Shareholders: 8 - Significant Note the beneficial owners holding more than 3% of the voting rights of the Holding Company as of March 31, 2018 were as follows: ______of the relevant into consideration for the calculation other than shares are not taken (1) Financial instruments shareholdings. on the aggregate number of voting rights entered into the Swiss (2) Shareholdings are calculated based voting rights as of March 31, 2018. This aggregate number was 173,106,620 commercial register. Inc. is based on the number of shares reported as beneficially owned The number of shares held by BlackRock, (3) on a Schedule 13G filed with the U.S. Securities and Exchange Commission by BlackRock, Inc. and its subsidiaries on February 1, 2018. subsidiaries is based on a Schedule 13G AG through its indirect The number of shares held by Credit Suisse (4) Commission on February 16, 2016. filed with the U.S. Securities and Exchange on a notification filed with the AG is based Management (Switzerland) The number of shares held by UBS Fund (5) 7, 2014. SIX Exchange Regulation on October June 19, stock 2015 a on listed (“FMIA”) are shares whose requires Switzerland in shareholders incorporated company a who of thresholds percentage own certain exceeding or have discretionary authority to exercise voting rights exchange in Switzerland to notify the company and the relevant Swiss exchange of such holdings. Following receipt of this notification, the company the public is required to inform in Switzerland. 624 Total cost Total (in thousands) shares 8,526,642 161,981 Number of 10,697,117 114,351 10,726,943 166,391 7.237.23 (903,789)7.57 (1,225,362) (6,538) 8.32 (8,860) (591,695) (1,276,259) (4,482) (10,622) 8.89 (1,549,948) (13,788) Price 14.8321.14 1,589,63023.71 23,582 851,75028.48 879,954 18,003 705,59731.76 20,860 20,097 19,680 33.9913.4434.82 287,51214.04 (739,153)35.17 274,00013.57 (119,914) 9,772 (9,907) 281,810 (654,288) 9,540 (1,684) 9,912 (8,879) Average 2 17 42 31 57 10 24 64 64 57 10 52 25 24 26 34 Number of 117 Transactions 118 During fiscal years 2018 and 2017, repurchases of the Holding Company's shares and issuances from the In March 2017, the Holding Company's Board of Directors approved the 2017 share buyback program, which In September 2008, the Holding Company’s shareholders approved an amendment to the Holding Company’s As of March 31, 2018, none of the aforementioned conditional registered shares had been issued. During fiscal Holding Company’s treasury shares were as follows: shares were treasury Holding Company’s Disposals Q1 Disposals Q2 Disposals Q3 Disposals Q4 Held by the Holding Company at March 31, 2018 Held by the Holding Company at March 31, 2017 Additions Q1 Additions Q2 Additions Q3 Additions Q4 Additions Q1 Disposals Q1 Held by the Holding Held by the Company March 31, 2016 at Additions Q2 Disposals Q2 Additions Q3 Disposals Q3 Additions Q4 Disposals Q4 authorizes the Holding Company to use up to $250.0 million to purchase its own shares. The Holding Company's share Company's Holding The shares. own its purchase to million $250.0 to up use to Company Holding the authorizes buyback program is expected to remain for in a effect period of April three year 30, years 2020. and Shares will expire on fiscal the During otherwise. or trades block through market, open the on time to time from repurchased been have million, $30.7 approximately for shares registered 863,002 repurchased Company Holding the 2018, 31, March ended including transaction costs. shares treasury repurchased of disposal the on loss The or disposals gain The of plans. treasury purchase shares share and were incentive to share the Company’s Holding Company’s directors and employees under the Holding is recorded income. in the statements of Increases: Share Capital Conditional Note 7-Authorized and capital Conditional Articles of Incorporation to reserve conditional capital of 25.0 million shares for potential issuance on the exercise of rights granted under the Holding Company’s employee equity incentive plans. The shareholders also approved the creation of conditional capital representing the issuance of up to 25.0 million shares to cover any conversion rights under a future convertible bond This issuance. conditional capital was created in order to provide financing flexibility for future expansion, investments or acquisitions. years 2018 and 2017, all employee equity incentive commitments were satisfied from treasury shares held Holding by the Company. A description of the employee equity consolidated financial statements of Logitech International S.A. incentive commitments outstanding is presented in the Note 6 - Treasury Shares: 6 - Treasury Note

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 March 31, 2018 Relevant Date February 16, 2016 (2) Percentage of Percentage Voting Rights Voting (1) Shares Number of Number of 6,929,9715,259,5005,239,853 4.0% 3.0% 3.0% September 29, 2014 10,239,913 5.9% 31, 2017 December 119 118 (5) (4) (3)

The Federal Act on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading of Trading Derivatives and Securities in Conduct Market and Infrastructures Market Financial on Act Federal The The Holding Company’s share capital the consists knowledge of of registered the shares. To Holding Company, Name BlackRock, Inc. Daniel Borel AG UBS Fund Management (Switzerland) Credit Suisse AG Credit Suisse ______of the relevant into consideration for the calculation other than shares are not taken (1) Financial instruments shareholdings. on the aggregate number of voting rights entered into the Swiss (2) Shareholdings are calculated based voting rights as of March 31, 2018. This aggregate number was 173,106,620 commercial register. Inc. is based on the number of shares reported as beneficially owned The number of shares held by BlackRock, (3) on a Schedule 13G filed with the U.S. Securities and Exchange Commission by BlackRock, Inc. and its subsidiaries on February 1, 2018. subsidiaries is based on a Schedule 13G AG through its indirect The number of shares held by Credit Suisse (4) Commission on February 16, 2016. filed with the U.S. Securities and Exchange on a notification filed with the AG is based Management (Switzerland) The number of shares held by UBS Fund (5) 7, 2014. SIX Exchange Regulation on October June 19, stock 2015 a on listed (“FMIA”) are shares whose requires Switzerland in shareholders incorporated company a who of thresholds percentage own certain exceeding or have discretionary authority to exercise voting rights exchange in Switzerland to notify the company and the relevant Swiss exchange of such holdings. Following receipt of this notification, the company the public is required to inform in Switzerland. Note 8 - Significant Shareholders: 8 - Significant Note the beneficial owners holding more than 3% of the voting rights of the Holding Company as of March 31, 2018 were as follows: 624 Total cost Total (in thousands) shares 8,526,642 161,981 Number of 10,697,117 114,351 10,726,943 166,391 7.237.23 (903,789)7.57 (1,225,362) (6,538) 8.32 (8,860) (591,695) (1,276,259)8.89 (4,482) (10,622) (1,549,948) (13,788) Price 31.76 19,680 14.8321.14 1,589,63023.71 23,582 851,75028.48 879,954 18,003 705,597 20,860 33.99 20,097 13.4434.82 287,51214.04 (739,153)35.17 274,00013.57 (119,914) 9,772 (9,907) 281,810 (654,288) 9,540 (1,684) 9,912 (8,879) Average 2 10 17 24 42 64 31 64 57 57 10 52 25 24 26 34 Number of 117 Transactions During fiscal years 2018 and 2017, repurchases of the Holding Company's shares and issuances from the As of March 31, 2018, none of the aforementioned conditional registered shares had been issued. During fiscal In March 2017, the Holding Company's Board of Directors approved the 2017 share buyback program, which In September 2008, the Holding Company’s shareholders approved an amendment to the Holding Company’s future expansion, investments or acquisitions. Holding Company’s treasury shares were as follows: shares were treasury Holding Company’s Held by the Holding Held by the Company March 31, 2016 at Additions Q1 Disposals Q1 Additions Q2 Disposals Q2 Additions Q3 Disposals Q3 Additions Q4 Disposals Q4 Held by the Holding Company at March 31, 2017 Additions Q1 Disposals Q1 Additions Q2 Disposals Q2 Additions Q3 Disposals Q3 Additions Q4 Disposals Q4 Held by the Holding Company at March 31, 2018 years 2018 and 2017, all employee equity incentive commitments were satisfied from treasury shares held Holding by the Company. A description of the employee equity consolidated financial statements of Logitech International S.A. incentive commitments outstanding is presented in the Note 6 - Treasury Shares: 6 - Treasury Note share Company's Holding The shares. own its purchase to million $250.0 to up use to Company Holding the authorizes buyback program is expected to remain for in a effect period of April three year 30, years 2020. and Shares will expire on fiscal the During otherwise. or trades block through market, open the on time to time from repurchased been have million, $30.7 approximately for shares registered 863,002 repurchased Company Holding the 2018, 31, March ended including transaction costs. shares treasury repurchased of disposal the on loss The or disposals gain The of plans. treasury purchase shares share and were incentive to share the Company’s Holding Company’s directors and employees under the Holding is recorded income. in the statements of Increases: Share Capital Conditional Note 7-Authorized and capital Conditional Articles of Incorporation to reserve conditional capital of 25.0 million shares for potential issuance on the exercise of rights granted under the Holding Company’s employee equity incentive plans. The shareholders also approved the creation of conditional capital representing the issuance of up to 25.0 million shares to cover any conversion rights under a future convertible bond This issuance. conditional capital was created in order to provide financing flexibility for n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Fiscal Years Fiscal of Expiration

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Exercise Price — (1) 7,100 7,100 7,100 7,100 37,100 $34.42 2018 Held PRSUs Options, and RSUs

— 5,200 7,720 7,100 7,720 7,100 99,486 13,578 46,878 52,410 23,230 As of March 31, 2017 100,000 483,104 2,592,848285,091 $8.03-$20.08156,642 371,368 144,539 169,696 167,391 2023 $30.09 2018 246,089 252,153 $7.83-$26.67 2019 - 2023 597,111 337,053 1,069,376 3,301,303 Shares Held 120

(5) (2) (3) (6) (4) Sally Davis Non-Group Members Management Team of the Board of Directors: Aebischer Patrick Guerrino De Luca Pilette Vincent Marcel Stolk L. Joseph Sullivan Team Group Management Total Edouard Bugnion Kee-Lock Chua Sue Gove Didier Hirsch Neil Hunt Dimitri Panayotopoulos Yeh Lung of Members Team Management Non-Group Total the Board of Directors Team: Members of the Group Management Bracken Darrell in September in September 2017. Team. Management Group the of members the to similarly structured is awards, equity including compensation, (2) Meeting General Annual the at directors as elected first were Montgomery Neela Ms. and Becker Ms.Wendy (3) Mr. Guerrino De Luca, Logitech’s Chairman, is an Directors. executive of Board member the of of the member Board a also of is Directors Officer, and Executive his Chief and President Logitech's Darrell, (4) Bracken Mr. Note 9-Share Ownership of Board Members and Group Management Team: (Continued) Team: Management Group Board Members and of Ownership 9-Share Note n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 2023 2023 Fiscal Years Fiscal of Expiration

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a $7.83 Exercise Price (1) 4,675 4,675 4,675 4,675 4,675 4,675 4,675 4,675 85,237 Held 122,757 PRSUs Options, and RSUs

— 4,675 — 4,675 4,904 9,545 82,795 12,615 20,248 30,391 51,860 57,305 37,634 44,909 As of March 31, 2018 As of March 549,339 243,457 527,160 2,343,161 $8.03 - $20.08 279,676 196,707 187,106 350,048 796,809 2,901,203 119 120 Shares Held (2) (3) (4) (2) in one annual installment.

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Fiscal Years Fiscal of Expiration

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Exercise Price — (1) 7,100 7,100 7,100 7,100 37,100 $34.42 2018 Held PRSUs Options, and RSUs

— 5,200 7,720 7,100 7,720 7,100 13,578 99,486 46,878 52,410 23,230 As of March 31, 2017 246,089 252,153 $7.83-$26.67 2019 - 2023 597,111 337,053 483,104 2,592,848285,091 $8.03-$20.08156,642 371,368 144,539 169,696 167,391 2023 $30.09 2018 100,000 1,069,376 3,301,303 Shares Held 121 120

(5) (2) (3) (6) (4)

Patrick Aebischer Patrick Edouard Bugnion Kee-Lock Chua Sally Davis Guerrino De Luca Sue Gove Didier Hirsch Neil Hunt Dimitri Panayotopoulos Yeh Lung of Members Team Management Non-Group Total the Board of Directors Team: Members of the Group Management Bracken Darrell Pilette Vincent Marcel Stolk L. Joseph Sullivan Team Group Management Total Non-Group Members Management Team of the Board of Directors: in September in September 2017. Team. Management Group the of members the to similarly structured is awards, equity including compensation, (2) Meeting General Annual the at directors as elected first were Montgomery Neela Ms. and Becker Ms.Wendy (3) Mr. Guerrino De Luca, Logitech’s Chairman, is an Directors. executive of Board member the of of the member Board a also of is Directors Officer, and Executive his Chief and President Logitech's Darrell, (4) Bracken Mr. Note 9-Share Ownership of Board Members and Group Management Team: (Continued) Team: Management Group Board Members and of Ownership 9-Share Note

n/a n/a n/a n/a

n/a n/a

n/a n/a n/a n/a

n/a n/a n/a 2023 2023 Fiscal Years Fiscal of Expiration

n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a $7.83 Exercise Price (1) 4,675 4,675 4,675 4,675 4,675 4,675 4,675 4,675 85,237 Held 122,757 PRSUs Options, and RSUs

— 4,675 — 4,675 4,904 9,545 12,615 44,909 82,795 57,305 30,391 37,634 20,248 51,860 As of March 31, 2018 As of March 549,339 243,457 796,809 2,901,203 527,160187,106 2,343,161 $8.03 - $20.08 350,048 279,676 196,707 119 Shares Held (2) (3) (4) (2) in one annual installment.

based options granted under the Company’s 2006 Stock Incentive Plan became exercisable at the later of two of later the at exercisable became Plan Incentive Stock 2006 Company’s the under granted options based Bracken Mr. For criteria. performance price share minimum certain meeting upon or date grant the from years grant, of date the from installments annual equal in years four over exercisable became options some Darrell, vested Plan Equity Inducement Stock 2012 Company’s the under granted options stock premium-priced and or met period, trading ninety-day consecutive a over price, share closing average Logitech’s when only and if exceeded the exercise price of the applicable tranche of the three tranches of the grant. PRSUs granted to executive De officers (including and Luca) members Mr. are of market-based the Group Management Team measured criteria performance price share minimum certain meeting upon vest may that units stock restricted against market conditions at the end of three years from the grant date, performance-based restricted stock operating certain meeting upon or date grant the from years three to one of later the upon vest may that units performance criteria, and performance-based restricted stock operating units performance criteria and share that price performance criteria measured may against market conditions stock at restricted vest time-based are officers Directors executive to upon granted non-executive RSUs date. grant to the meeting from granted years three of RSUs end the certain grant. of date the from installments annual equal four in vest that units vest (1) Each option provides the right to purchase one share at the exercise price. For Mr. Guerrino De Luca, market- Luca, De Guerrino Mr. For price. exercise the at share one (1) purchase to right the provides option Each The following tables set forth the shares and options held by each of the individual members of the Board of members of the of the individual options held by each the shares and tables set forth The following Total Non-Group Management Team Members of the of Members Team Management Non-Group Total Board of Directors Team: Members of the Group Management Bracken Darrell Team Group Management Total Guerrino De Luca Neela Montgomery Yeh Lung L. Joseph Sullivan Sally Davis Neil Hunt Dimitri Panayotopoulos Marcel Stolk Wendy Becker Wendy Edouard Bugnion Didier Hirsch Pilette Vincent Non-Group Management Team Members Board of Directors: of the Aebischer Patrick Sue Gove Note 9 - Share Ownership of Board Members and Group Management Team: Management and Group Board Members of Ownership 9 - Share Note and 2017: of March 31, 2018 as Team and the Group Management Directors 141,583 782,284 (110,700) Year ended Year March 31, 2018 CHF 671,584 CHF640,701 122 (1) approximately CHF 0.6726 per The share. per share estimate is based on 164,579,978 shares outstanding, 31, 2018. net of treasury shares, as of March Proposal Proposal of the Board of Directors for appropriation of retained earnings was as follows for the fiscal year 2018 (in thousands): Balance of retained Balance retained of earnings forward to be carried Available earnings brought forward Available Profit for the year Retained earnings available end at of fiscal year 2018 Proposed dividend ______(1) The Board of Directors proposes distribution of an aggregate gross dividend of CHF 110,700,000 or EARNINGS RETAINED OF APPROPRIATION FOR OF DIRECTORS BOARD THE OF PROPOSAL 121 122 ******************************** Each option provides the right to purchase one share at the exercise price. For executive officers(including over exercisable became options the Luca), De Guerrino Mr. and became Team options Management Group the of members the Directors, non-executive For grant. of date the from installments annual equal in years four granted options Market-based grant. of date the from installments annual equal in years three over exercisable 2006 Stock Incentive Plan became exercisable at the under later the of Company’s two years from the grant granted options stock Premium-priced criteria. performance price share minimum certain meeting upon or date closing average Logitech’s when only and if vested Plan Equity Inducement Stock 2012 Company’s the under applicable the of price exercise the exceeded or met period, trading ninety-day consecutive a over price, share tranche of the three tranches of the grant. PRSUs granted to executive officers are market-based restricted stock units that may vest upon meeting certain minimum share price performance criteria measured against market conditions at the end of three years from the grant date or performance-based restricted stock units that may vest upon the later four of in vest one that units stock to restricted time-based are three officers executive years to granted RSUs from criteria. performance the grant date or upon meeting certain annual one in operating vest Directors non-executive to granted RSUs grant. of date the from installments annual equal installment. shown is based on the Swiss Franc to U.S. Dollar conversion rate as of exercise price as of March 31, 2017 was $34.42. March 31, 2017. The U.S. Dollar Team. Management Group the of members the to similarly structured is awards, equity including compensation, (1) (2) Annual General Meeting 2016. in September Aebischer was first elected as a director the at Patrick Dr. 2016. September in Meeting General Annual the at director as re-election for stand (3) not did Chua Kee-Lock Mr. (4) The exercise price of the option as granted to Ms. Sally Davis is CHF 34.45. The U.S. Dollar exercise price (5) Mr. Guerrino De Luca, Logitech’s Chairman, is an Directors. of executive Board member the of of the member a Board also of is Directors Officer, and Executive his Chief and President Logitech’s Darrell, (6) Bracken Mr. Logitech employees. International S.A. does not have any Note 9-Share Ownership of Board Members and Group Management Team: (Continued) Team: Management Group and Members of Board Ownership 9-Share Note equivalents: Note 10 - Full-time

Annual Report Fiscal Year 2018 Annual Report Fiscal Year 2018 141,583 782,284 (110,700) Year ended Year March 31, 2018 CHF 671,584 CHF640,701 123 122 (1) approximately CHF 0.6726 per The share. per share estimate is based on 164,579,978 shares outstanding, 31, 2018. net of treasury shares, as of March Proposal Proposal of the Board of Directors for appropriation of retained earnings was as follows for the fiscal year 2018 (in thousands): Retained earnings available end at of fiscal year 2018 Proposed dividend Balance retained of earnings forward to be carried Available earnings brought forward Available Profit for the year ______(1) The Board of Directors proposes distribution of an aggregate gross dividend of CHF 110,700,000 or EARNINGS RETAINED OF APPROPRIATION FOR OF DIRECTORS BOARD THE OF PROPOSAL 121 ******************************** Each option provides the right to purchase one share at the exercise price. For executive officers(including over exercisable became options the Luca), De Guerrino Mr. and became Team options Management Group the of members the Directors, non-executive For grant. of date the from installments annual equal in years four granted options Market-based grant. of date the from installments annual equal in years three over exercisable 2006 Stock Incentive Plan became exercisable at the under later the of Company’s two years from the grant granted options stock Premium-priced criteria. performance price share minimum certain meeting upon or date closing average Logitech’s when only and if vested Plan Equity Inducement Stock 2012 Company’s the under applicable the of price exercise the exceeded or met period, trading ninety-day consecutive a over price, share tranche of the three tranches of the grant. PRSUs granted to executive officers are market-based restricted stock units that may vest upon meeting certain minimum share price performance criteria measured against market conditions at the end of three years from the grant date or performance-based restricted stock units that may vest upon the later four of in vest one that units stock to restricted time-based are three officers executive years to granted RSUs from criteria. performance the grant date or upon meeting certain annual one in operating vest Directors non-executive to granted RSUs grant. of date the from installments annual equal installment. shown is based on the Swiss Franc to U.S. Dollar conversion rate as of exercise price as of March 31, 2017 was $34.42. March 31, 2017. The U.S. Dollar Team. Management Group the of members the to similarly structured is awards, equity including compensation, (1) (2) Annual General Meeting 2016. in September Aebischer was first elected as a director the at Patrick Dr. 2016. September in Meeting General Annual the at director as re-election for stand (3) not did Chua Kee-Lock Mr. (4) The exercise price of the option as granted to Ms. Sally Davis is CHF 34.45. The U.S. Dollar exercise price (5) Mr. Guerrino De Luca, Logitech’s Chairman, is an Directors. of executive Board member the of of the member a Board also of is Directors Officer, and Executive his Chief and President Logitech’s Darrell, (6) Bracken Mr. Logitech employees. International S.A. does not have any Note 9-Share Ownership of Board Members and Group Management Team: (Continued) Team: Management Group and Members of Board Ownership 9-Share Note equivalents: Note 10 - Full-time This page is intentionally left blank. This page is intentionally left blank.