Logistea Annual Report 2010

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FY2010 Annual Report · Logistea

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Rapport Annuel 2010, Invitation et Document D’Information

Geschäftsbericht 2010, Einladung und Informationsmaterial

2010 Annual Report, Invitation and Proxy Statement

SIX: LOGN-VX

NASDAQ: LOGI

For more information

about Logitech and

its products, please

visit our web site:

www.logitech.com.

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Selected Financial Highlights

Chief Financial Office, Senior Vice President, Finance

Gerald P. Quindlen

The following selected historical information has been derived from audited financial statements included in our annual reports for such years. Accordingly, the table
should be read in conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our annual reports for
Fiscal Years 2008 through 2010 and the section titled “Operating and Financial Review and Prospects,” in our annual reports for Fiscal Years 2006 through 2007.

Fiscal Year

20061

2007

2008

2009

2010

Senior Vice President, Worldwide Sales and Marketing

Logitech

(in thousands of U.S. dollars, except per share amounts)

Net sales

Gross margin

Operating income

Operating margin

Net income

Earnings per diluted share

Diluted number of shares (in millions)

Cash flow from operations

Capital expenditures

Cash and cash equivalents and short-term
investments, net of short-term debt

Shareholders’ equity

$ 1,796,715

$ 2,066,569

$ 2,370,496

$ 2,208,832

$ 1,966,748

32.0%

34.3%

35.8%

31.3%

31.9%

198,911

$ 230,862

286,680

109,654

78,364

11.1%

11.2%

181,105

$ 229,848

0.92

1.20

198,769

152,217

190,991

$ 303,825

54,102

47,246

$ 230,943

$ 398,966

685,176

$ 844,524

12.1%

231,026

1.23

187,942

393,079

57,900

486,292

960,044

5.0%

107,032

0.59

4.0%

64,957

0.36

182,911

179,340

200,587

$ 365,259

48,263

39,834

494,396

$ 319,944

997,708

$ 999,715

1 Operating income, Operating margin, Net income and Earnings per diluted share for Fiscal Year 2006 do not include the effect of share-based compensation expense
because Logitech changed its method of accounting for share-based compensation expense effective April 1, 2006.

This document contains forward-looking statements, including the statements regarding being positioned for a return to double-digit growth in Fiscal
Year 2011 and beyond, our long-term growth strategy, our product introduction plans, our belief that we can create a seamless video experience
across screens, our plan for China to become one of our top three markets, and our plans for developing products for open eco-systems. The forward-
looking statements involve risks and uncertainties that could cause Logitech’s actual results to differ materially from that anticipated in these
forward-looking statements. Factors that could cause actual results to differ materially include: our inability to predict the timing and strength of the
improvement in our business, operating results and financial condition; the demand of our customers and our consumers for our products and our
ability to accurately forecast it; if we fail to execute upon our long-term strategic plans and opportunities; if our investments in our strategic priorities
do not result in the growth we expect; consumer reaction to our new products; if we fail to take advantage of long-term trends in the consumer
electronics and personal computers industries; if we fail to successfully innovate in our current and emerging product categories and identify new
feature or product opportunities; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our
sales, gross margins and profitability; our product introductions and marketing activities not resulting in the product or category growth we expect,
or when we expect it; competition in the video conferencing and communications industry, including from companies with significantly greater
resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth in Logitech’s periodic
filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the Fiscal Year ended March 31, 2010, and our
subsequent Quarterly Reports on Form 10-Q available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.

Executive Team

Gerald P. Quindlen

President and Chief Executive Officer

Erik K. Bardman

Junien Labrousse

Executive Vice President, Products

Werner Heid

David Henry

L. Joseph Sullivan

Senior Vice President, Customer Experience and

Chief Marketing Officer

Martha Tuma

Vice President, Human Resources

Catherine Valentine

Vice President, Legal,

General Counsel and Secretary of the Board

Senior Vice President, Worldwide Operations

Former Senior Vice President, Worldwide Operations and

Board of Directors

Guerrino De Luca

Chairman of the Board

Logitech

President and Chief Executive Officer

Logitech

Daniel Borel

Co-Founder and Former Chairman of the Board

Matthew Bousquette

Chairman

Enesco LLC

Erh-Hsun Chang

General Manager, Far East

Logitech

Kee-Lock Chua

Vertex Group

President and Chief Executive Officer

Sally Davis

Chief Executive Officer

BT Wholesale

Richard Laube

Executive Vice President

Nestlé S.A.

Chief Executive Officer

Nestlé Nutrition

Robert Malcolm

Diageo plc

Monika Ribar

President, Chief Executive Officer

Panalpina Group

Investor Relations

Investor inquiries may be directed to:

LogitechIR@logitech.com

Former President, Global Marketing, Sales and Innovation

Annual Meeting

logo, and other Logitech marks are registered in the United

Logitech’s annual meeting of shareholders will be held at

States and other countries. All other trademarks are the

14:30 Central European Summer Time, September 8, 2010,

property of their respective owners.

at the Palais de Beaulieu in Lausanne, Switzerland.

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Selected Financial Highlights

(in thousands of U.S. dollars, except per share amounts)

Net sales

Gross margin

Operating income

Operating margin

Net income

Earnings per diluted share

Diluted number of shares (in millions)

Cash flow from operations

Capital expenditures

Fiscal Year

20061

2007

2008

2009

2010

$ 1,796,715

$ 2,066,569

$ 2,370,496

$ 2,208,832

$ 1,966,748

32.0%

34.3%

35.8%

31.3%

31.9%

198,911

$ 230,862

286,680

109,654

78,364

11.1%

11.2%

181,105

$ 229,848

0.92

1.20

198,769

152,217

190,991

$ 303,825

54,102

47,246

12.1%

231,026

1.23

187,942

393,079

57,900

486,292

960,044

5.0%

107,032

0.59

4.0%

64,957

0.36

182,911

179,340

200,587

$ 365,259

48,263

39,834

494,396

$ 319,944

997,708

$ 999,715

Cash and cash equivalents and short-term

investments, net of short-term debt

$ 230,943

$ 398,966

Shareholders’ equity

685,176

$ 844,524

1 Operating income, Operating margin, Net income and Earnings per diluted share for Fiscal Year 2006 do not include the effect of share-based compensation expense

because Logitech changed its method of accounting for share-based compensation expense effective April 1, 2006.

This document contains forward-looking statements, including the statements regarding being positioned for a return to double-digit growth in Fiscal

Year 2011 and beyond, our long-term growth strategy, our product introduction plans, our belief that we can create a seamless video experience

across screens, our plan for China to become one of our top three markets, and our plans for developing products for open eco-systems. The forward-

looking statements involve risks and uncertainties that could cause Logitech’s actual results to differ materially from that anticipated in these

forward-looking statements. Factors that could cause actual results to differ materially include: our inability to predict the timing and strength of the

improvement in our business, operating results and financial condition; the demand of our customers and our consumers for our products and our

ability to accurately forecast it; if we fail to execute upon our long-term strategic plans and opportunities; if our investments in our strategic priorities

do not result in the growth we expect; consumer reaction to our new products; if we fail to take advantage of long-term trends in the consumer

electronics and personal computers industries; if we fail to successfully innovate in our current and emerging product categories and identify new

feature or product opportunities; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our

sales, gross margins and profitability; our product introductions and marketing activities not resulting in the product or category growth we expect,

or when we expect it; competition in the video conferencing and communications industry, including from companies with significantly greater

resources, sales and marketing organizations, installed base and name recognition; as well as those additional factors set forth in Logitech’s periodic

filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the Fiscal Year ended March 31, 2010, and our

subsequent Quarterly Reports on Form 10-Q available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.

The following selected historical information has been derived from audited financial statements included in our annual reports for such years. Accordingly, the table

should be read in conjunction with the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our annual reports for

Fiscal Years 2008 through 2010 and the section titled “Operating and Financial Review and Prospects,” in our annual reports for Fiscal Years 2006 through 2007.

L’exercice fiscal 2010 a été critique a bien
Junien Labrousse
des égards pour Logitech.
Executive Vice President, Products

Sans conteste, 2010 a été l’une des

Executive Team

Board of Directors

1 Logitech 2010

Gerald P. Quindlen
President and Chief Executive Officer

fraNçais

deutsche

Guerrino De Luca
Chairman of the Board
Logitech

eNglish

Erik K. Bardman
A nos actionnaires
Chief Financial Office, Senior Vice President, Finance

Sehr geehrte Aktionärin, sehr
geehrter Aktionär

Gerald P. Quindlen
President and Chief Executive Officer
Das Geschäftsjahr 2010 war für Logitech in
Logitech
jeder Hinsicht wegweisend.

to our shareholders

Fiscal Year 2010 was pivotal for Logitech
in every sense.

Einerseits stellten sich dem Unternehmen

On one hand, it was among the most

Daniel Borel
Co-Founder and Former Chairman of the Board
Logitech

Werner Heid
Senior Vice President, Worldwide Sales and Marketing

années les plus exigeantes de toute
l’histoire de notre société. Dans le sillage
de la récession mondiale qui avait débuté
en septembre 2008, l’affaiblissement de
David Henry
la demande des consommateurs a généré
Senior Vice President, Customer Experience and
des résultats financiers décevants. Dans
Chief Marketing Officer
un contexte économique défavorable,
nous avons toutefois terminé l’exercice
sur un trimestre très solide, qui nous a
donné l’élan nécessaire pour entamer
2011 sur de bonnes bases. Autre point
Martha Tuma
positif, l’évolution du comportement des
consommateurs et une nouvelle orientation
Vice President, Human Resources
stratégique nous offrent des opportunités
uniques.et nous placent dans une position
Catherine Valentine
idéale pour renouer avec une croissance à
Vice President, Legal,
deux chiffres en 2011 et au-delà.
General Counsel and Secretary of the Board

enorme Herausforderungen. Die welt-
weite Rezession, die im September
2008 begonnen hatte, belastete die
Nachfrage und führte zu enttäuschenden
Finanzergebnissen. Trotz des wirtschaft-
lichen Umfelds gelang es uns jedoch, im
letzten Quartal des Geschäftsjahres ein
äusserst solides Ergebniss zu erzielen
Erh-Hsun Chang
und das Geschäftsjahr 2011 unter guten
Former Senior Vice President, Worldwide Operations and
Vorzeichen zu beginnen. Andererseits
General Manager, Far East
boten sich dank neuer Konsumenten einma-
Logitech
lige Chancen. Wir leiteten eine strategische
Neuorientierung ein, um diese Chancen
voll zu nutzen. Wir rechnen darum für das
Geschäftsjahr 2011 und auch danach erneut
mit einem Wachstum im zweistelligen
Bereich.

challenging in our company’s history.
In the wake of the global recession
that began in September 2008, weak
consumer demand led to disappointing
financial results. However, in spite of the
economic environment, we succeeded in
finishing the fiscal year with a very solid
quarter and with strong momentum
entering FY 2011. On the other hand,
changing consumers delivered unique new
opportunities, and we began a strategic
transformation to take full advantage of
these opportunities. This transformation
positions us for a return to double-digit
growth in FY 2011 and beyond.

Kee-Lock Chua
President and Chief Executive Officer
Vertex Group

L. Joseph Sullivan
Senior Vice President, Worldwide Operations

Matthew Bousquette
Chairman
Enesco LLC

Nous avons pris des mesures pour une
amélioration immédiate
Suite à la restructuration de notre entreprise
à la fin de l’exercice 2009, nous avons pu
démarrer 2010 avec une structure de coûts
réduite qui nous a permis de surmonter la
crise économique mondiale. Nous avons
aidé nos partenaires commerciaux à réduire
leurs stocks afin de les aligner avec une
demande relativement faible

Sally Davis
Chief Executive Officer
BT Wholesale

Wir trafen Massnahmen mit sofortiger
Wirkung.
Dank der Umstrukturierungen zu Ende des
Geschäftsjahres 2009 begannen wir das
neue Geschäftsjahr mit einer schlanken
Kostenstruktur und waren gegen die glo-
balen wirtschaftlichen Turbulenzen besser
gewappnet. Wir unterstützten

Richard Laube
Executive Vice President
Nestlé S.A.
Chief Executive Officer
Nestlé Nutrition

We took action for immediate
improvement.
As a result of our restructuring at the end of
FY 2009, we began FY 2010 with a reduced
cost structure, which better positioned us
to weather the global economic storm. We
worked with our channel partners to help
them lower their inventory levels to align with
the relatively weak consumer demand

gerald P. Quindlen
President and
chief executive officer

guerrino De Luca
chairman of the Board

Robert Malcolm
Former President, Global Marketing, Sales and Innovation
Diageo plc

Monika Ribar
President, Chief Executive Officer
Panalpina Group

in spite of the economic
environment, we
succeeded in finishing
the fiscal year with a
very solid quarter and
with strong momentum.

Investor Relations
Investor inquiries may be directed to:
LogitechIR@logitech.com

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© 2010 Logitech. All rights reserved. Logitech, the Logitech
logo, and other Logitech marks are registered in the United
States and other countries. All other trademarks are the
property of their respective owners.

Annual Meeting
Logitech’s annual meeting of shareholders will be held at
14:30 Central European Summer Time, September 8, 2010,
at the Palais de Beaulieu in Lausanne, Switzerland.

Logitech 2010 2

français

deutsche

english

français

des consommateurs et préparer la reprise.
Nous avons également restreint nos frais
opérationnels, amélioré l’efficacité de notre
appareil de production et de nos canaux
d’approvisionnement, tout en renforçant
la recherche et le développement afin
de stimuler l’innovation et permettre le
lancement de nouveaux produits attrayants
sur le marché.

Ces efforts nous ont permis de retrouver

un niveau de croissance rentable au cours
de l’exercice, lorsque la demande des
consommateurs est repartie. Au quatrième
trimestre, nous avons enregistré une crois-
sance des ventes à deux chiffres tant dans
l’ensemble des catégories de produits que
dans les régions géographiques, générant
un niveau de marge brute exceptionnel de
35,8%.

Nous avons également élaboré une
stratégie visant la croissance à long terme
et débuté sa mise en œuvre.

Cette stratégie repose sur quatre piliers:

1. Cibler les quatre écrans
2. Exploiter la croissance de la vidéo
3. Investir sur la Chine
4. S’engager dans les écosystèmes

ouverts

Logitech croit en l’amélioration de l’interac-
tion entre les consommateurs et les quatre
écrans du monde numérique connecté,
à savoir l’écran d’ordinateur, l’écran de
télévision, l’écran du smartphone et l’écran
de la salle de réunion. Les habitudes des

unsere Handelspartner beim Abbau ihrer
Lagerbestände, um sie der relativ schwa-
chen Nachfrage anzupassen. Daneben
reduzierten wir unsere Kosten deutlich,
steigerten die Effizienz in der Produktion
und Beschaffung und nutzten unsere
Innovationskraft, um weiterhin neue, attrak-
tive Produkte auf den Markt zu bringen.

Es gelang uns damit, uns für die Rückkehr

zu profitablem Wachstum und eine im
weiteren Verlauf des Geschäftsjahres
anziehende Nachfrage zu positionieren.
Im 4. Quartal wiesen wir ein doppelstel-
liges Umsatzwachstum aus. Sämtliche
Produktkategorien und geografischen
Regionen legten zu, und die Bruttomarge
erreichte bemerkenswerte 35,8 Prozent.

Unsere Strategie zielt ebenfalls
auf langfristiges Wachstum ab, ihre
Implementierung läuft bereits.

Die Strategie konzentriert sich auf vier

Schwerpunkte:

1. die vier Bildschirme
2. die Video-Welle
3. China
4. offene Plattformen
(„open eco systems“)

Wir sehen Chancen in der Verbesserung
der Interaktion zwischen den Kunden
und den vier Bildschirmtypen: dem
Computer-Bildschirm, dem TV-Bildschirm
im Wohnzimmer, dem Smartphone-Display
und dem Bildschirm im Konferenzsaal.

environment. We also tightly controlled our
expenses, improved our efficiencies in manu-
facturing and supply chain, and used our
innovation engine to continue to bring new,
appealing products to market.

With these efforts, we positioned

ourselves for a return to profitable growth
as consumer demand began to improve.
In the fourth quarter, we achieved
double-digit sales growth, with growth
in all product categories and geographic
regions, and an outstanding 35.8 percent
gross margin.

We also built a strategy for achieving

long-term growth and began to
implement it.

The strategy is based on four tenets:
1. Focusing on the four screens
2. Ride the video wave
3. China
4. Embrace open eco-systems
We see an opportunity to improve the
interaction consumers have with four screens:
the computer screen, the TV screen in the
living room, the smartphone screen and the
meeting room screen. Consumer behavior
has changed: interaction is no longer solely
focused on the PC screen that’s been so
successful for us. The other three screens
represent key emerging platforms that are
joining the PC screen at the center of how

consommateurs ont évolué: l’interaction par

le biais d’interfaces ne concerne plus uni-

quement l’écran du PC qui nous a valu tant

de succès. Les trois autres écrans représen-

tent des plateformes émergentes clés qui,

au même titre que le PC, se retrouvent au

centre de la communication et de l’interac-

tion avec le monde numérique. Logitech

est idéalement positionnée pour créer des

périphériques et des logiciels permettant

une forte interaction avec chacun de ces

écrans.

Au cours de l’exercice 2010, nous nous

sommes lancés dans un projet de grande

envergure avec Google et Intel afin de

transformer l’écran de télévision en une

plateforme intelligente qui intègre des

applications internet à la TV standard. Nous

collaborons étroitement avec ces sociétés

et d’autres entreprises afin de créer les

produits et technologies qui permettront

de trouver et de regarder des contenus

TV et vidéo internet en toute simplicité. La

contribution de Logitech est d’offrir à la fois

le «companion box» qui amène Google TV

dans le salon ainsi qu’une gamme d’acces-

soires qui servira à interagir avec Google TV.

Nous avons introduit des pilotes pour

l’écran du smartphone en lançant Logitech

Touch Mouse, une application iPhone

permettant de contrôler son PC à distance.

Par ailleurs, nous créerons des applications

capables de transformer les smartphones

the global Pc installed base, at an
estimated 1.4 billion units (gartner, April
2010), continues to provide Logitech
with a significant growth opportunity. As
a leader in peripherals for personal
computing, we’re as focused as ever on
delivering market-leading innovations in
categories such as mice, keyboards,
webcams and Pc speakers.

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3 Logitech 2010

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consommateurs ont évolué: l’interaction par
le biais d’interfaces ne concerne plus uni-
quement l’écran du PC qui nous a valu tant
de succès. Les trois autres écrans représen-
tent des plateformes émergentes clés qui,
au même titre que le PC, se retrouvent au
centre de la communication et de l’interac-
tion avec le monde numérique. Logitech
est idéalement positionnée pour créer des
périphériques et des logiciels permettant
une forte interaction avec chacun de ces
écrans.

Au cours de l’exercice 2010, nous nous
sommes lancés dans un projet de grande
envergure avec Google et Intel afin de
transformer l’écran de télévision en une
plateforme intelligente qui intègre des
applications internet à la TV standard. Nous
collaborons étroitement avec ces sociétés
et d’autres entreprises afin de créer les
produits et technologies qui permettront
de trouver et de regarder des contenus
TV et vidéo internet en toute simplicité. La
contribution de Logitech est d’offrir à la fois
le «companion box» qui amène Google TV
dans le salon ainsi qu’une gamme d’acces-
soires qui servira à interagir avec Google TV.
Nous avons introduit des pilotes pour
l’écran du smartphone en lançant Logitech
Touch Mouse, une application iPhone
permettant de contrôler son PC à distance.
Par ailleurs, nous créerons des applications
capables de transformer les smartphones

Das Verhalten der Konsumenten hat sich
verändert: Die Interaktion beschränkt sich
nicht mehr auf den PC-Bildschirm, mit
dem wir so erfolgreich waren. Neben dem
PC werden die anderen drei Bildschirme
zu immer beliebteren Plattformen für die
zwischenmenschliche Kommunikation und
die Interaktion mit der digitalen Welt. Wir
sehen Logitech als einmalig positionier-
tes Unternehmen in der Entwicklung von
Hardware- und Softwareprodukten, welche
die Interaktion mit jedem Bildschirmtyp zum
Erlebnis machen.

Das Geschäftsjahr 2010 war der Auftakt
für ein Grossprojekt mit Google und Intel,
um den TV-Bildschirm zu einer Smart
Plattform im digitalen Wohnzimmer
umzuwandeln. Wir arbeiten eng mit diesen
und anderen Unternehmen zusammen, um
das Finden und den Konsum von TV- und
Video-Inhalten zur positiven Erfahrung zu
machen. Wir möchten die Companion Box,
die Google TV ins Wohnzimmer bringt, und
eine Reihe weiterer Zusatzgeräte im Hinblick
auf die Interaktion mit Google TV anbieten.
Erste Tests mit dem Smartphone Display

laufen bereits. Wir haben die Logitech
Touch Mouse, ein iPhone-App für die
PC-Steuerung, lanciert. Wir werden auch
Apps entwickeln, die Smartphones zur
Harmony-Fernsteuerung für unsere Google-
TV-Companion-Box machen.

people communicate and interact with
the digital world. We believe that Logitech
is uniquely positioned to create hardware
and software products that enable great
experiences for interacting with each of the
screens.

In FY 2010, we began a major project

with Google and Intel to transform the
TV screen into a smarter platform for
the digital living room. We are working
closely with these companies and others
to create a seamless experience for finding
and watching TV and video content. Our
plan is to offer both the companion box
that brings Google TV into the living room
as well as a collection of accessories that
people will use to interact with Google TV.
We’ve begun pilots on the smartphone
screen. We launched the Logitech Touch
Mouse — an iPhone app for PC control.
And we will create apps that turn smart-
phones into Harmony remote controls for
our Google TV companion box.

For the meeting room screen, we
acquired LifeSize Communications, an
innovation leader in high-definition (HD)
video conferencing. The acquisition gives
us a competitive advantage and further
positions us to realize a vision for video
communication that is as natural and

More entertainment and
communication activities are moving to
what is typically the best screen in the
house — the living room screen. Logitech is
well positioned to benefit from this trend. in
the second half of Fiscal Year 2010, our
harmony Remotes posted 50% growth over
the prior year and we expect Remotes to be
our fastest growing retail category in FY 2011.
in recent months, we launched several new
remotes priced below $100 which are
designed to bring the functionality and
ease of use of harmony to an
even broader market.

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Logitech 2010 4

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en télécommandes Harmony pour le
companion box de Google TV.

Le rachat de LifeSize Communications,

société leader dans les systèmes de
vidéoconférence haute définition (HD)
nous donne accès à l’écran de la salle de
conférence et nous permet de proposer
une communication vidéo aussi naturelle et
fluide que le sont aujourd’hui les commu-
nications vocales. Notre ambition est de
promouvoir la communication vidéo HD à
tout moment et partout, que ce soit dans
une salle de conférence, au bureau, à la
maison ou en déplacement.

Ceci nous amène au second pilier:
l’opportunité que nous offre l’adoption de
la vidéo comme moyen de communication
par les consommateurs. La vidéo est une
application clé sur les quatre écrans. Elle
est l’une de nos compétences de base
et s’est renforcée avec l’acquisition de
SightSpeed l’an dernier et de LifeSize cette
année. Grâce à l’expertise que nous avons
acquise dans les webcams et les services de
vidéoconférence, nous sommes remarqua-
blement placés pour créer une expérience
vidéo intégrée sur tous les écrans.

Durant l’exercice fiscal 2010, nous
avons également lancé la phase initiale
de notre troisième pilier stratégique, la
Chine. Au fil des ans, nous avons développé
une connaissance plus approfondie du
consommateur chinois et créé des produits
qui répondent spécifiquement à ses

Für den Bildschirm im Konferenzsaal
erwarben wir LifeSize Communications, ein
führendes Unternehmen für Innovationen
im Bereich für hochauflösende (HD)-
Videokonferenzen. Dank dieser Übernahme
verfügen wir über einen Wettbewerbsvorteil
und können verstärkt auf die Realisierung
unserer Vision der Video-Kommunikation
hinarbeiten, die so natürlich und bequem
wie heute die Sprachkommunikation
werden soll. Wir möchten es möglich
machen, dass HD-Video-Kommunikation
jederzeit und überall stattfinden kann,
sowohl im Konferenzsaal als auch im Büro,
zuhause und unterwegs.

Und damit kommen wir zum
zweiten Schwerpunkt, zur Chance,
dass die Konsumenten Video als
Kommunikationstool einsetzen. Video
wird für alle vier Bildschirmtypen zur
entscheidenden Anwendung. Und Video ist
für uns ein Kernbereich, den wir im letzten
Jahr mit dem Erwerb von SightSpeed und
heuer mit dem Kauf von LifeSize verstärkt
haben. Wir sind zuversichtlich, dass es uns
mit unserem Know-how mit Webcams und
im Video-Calling gelingen wird, eine über
verschiedene Bildschirme nahtlose Video-
Erfahrung zu entwickeln.

Im Geschäftsjahr 2010 begannen wir
auch mit der Implementierung unseres
dritten strategischen Schwerpunkts: China.
Wir lernten das Konsumverhalten der

seamless as voice communication is today.
We expect to deliver HD video commu-
nication to people anytime, anywhere,
whether they are in a conference room, in
their office, at home or on the go.

Which brings us to the second tenet —

the opportunity brought by consumer
adoption of video as a communication
tool. Video is becoming a key application
across all four screens. And video is a core
competency for us that has strengthened
with last year’s acquisition of SightSpeed
and this year’s acquisition of LifeSize.
With our expertise in webcams and video
calling services, we believe that we can
create a seamless video experience across
the screens.

During FY 2010, we also started initial

implementation of our third strategic
tenet — China. We began to develop
deeper insights into Chinese consumers
and create products specifically for them.
China is a key growth area for Logitech,
with an increasing number of consumers
who closely match the profile of the target
customer for our brand. Our goal is for
China to become one of our top three
markets, and we will continue to position
our investment in China as one of the

in December 2009, Logitech
acquired LifeSize communications, an
innovator and leader in hD-quality video
communications in the enterprise channel.
the company was the first to introduce
hD-quality videoconferencing solutions in
2005 and has been bringing disruptive price/
performance products to market ever since.
the acquisition enables significant technology
synergies that we’ve just begun to leverage as
we bring videoconferencing to an even
broader audience, including the largely
untapped small and medium
business segment.

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5 Logitech 2010

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english

besoins. Dans la mesure où les consomma-
teurs qui correspondent de près au profil
des clients cibles de notre marque sont
de plus en plus nombreux, la Chine est un
secteur de croissance clé pour Logitech.
A terme, notre objectif est de faire de la
Chine l’un de nos trois principaux marchés.
Nos investissements dans ce pays resteront
donc l’une de nos grandes priorités pour les
années à venir.

Si nous associons les domaines dans

lesquels nous avons le mieux réussi et
l’orientation du marché, il est tout naturel
que notre quatrième pilier stratégique
se concentre sur le développement de
produits liés à des écosystèmes ouverts.
L’industrie des PC est un exemple d’éco-
système ouvert où l’innovation illimitée
sur la plateforme est accessible à une
multitude de participants et progresse
donc plus rapidement qu’un écosystème
fermé. Logitech a su prospérer au sein d’un
écosystème PC et nous mettrons tout en
œuvre pour mener à bien la définition et le
développement de standards ouverts pour
les trois autres écrans.

Par exemple, Google TV se base sur le
système d’exploitation Android, un nouvel
écosystème ouvert prometteur. De plus,
depuis le rachat de LifeSize, nous avons
commencé à travailler avec des leaders du
secteur de la communication vidéo en vue
de créer des standards ouverts une

Chinesen genauer kennen und entwi-
ckelten auf sie zugeschnittene Produkte.
China ist für Logitech eine entschei-
dende Wachstumsregion. Die Zahl der
Konsumenten, die dem Profil des Zielkunden
unserer Marke entspricht, wächst stetig.
Gemäss den Vorgaben soll China einer
unserer drei führenden Märkte werden.
Für unser Unternehmen gehören die
Investitionen in China in den kommenden
Jahren zu den obersten Prioritäten.

Wenn wir auf vergangene Erfolge zurück-

blicken und gleichzeitig die Entwicklung
des Marktes betrachten, überrascht unser
vierter Schwerpunkt, die Entwicklung von
Produkten für offene Plattformen, nicht. Die
PC-Branche ist ein gutes Beispiel für eine
offene Plattform. Die uneingeschränkte
Innovation auf der Plattform steht einer
Vielzahl von Teilnehmern offen und kann
sich deshalb schneller entfalten als in einer
geschlossenen Plattform. Logitech konnte
innerhalb der PC-Plattform florieren. Wir
engagieren uns für die Definition und
Entwicklung offener Standards für die drei
zusätzlichen Bildschirme.

company’s top priorities in the years to
come.

When we look at where we’ve had

the strongest historical success as a
company, and where the market is going,
it’s no surprise that our fourth strategic
tenet is developing products for open
eco-systems. The PC industry is an
example of an open eco-system, where
unrestricted innovation on the platform
is open to a multitude of participants
and therefore scales more quickly than a
closed eco-system. Logitech has been able
to thrive within the PC eco-system. We are
committed to driving the definition and
development of open standards for the
three additional screens.

For example, Google TV is based on
the Android operating system, which is
an example of a promising new open
eco-system. And since our acquisition
of LifeSize, we have begun to work with
industry leaders in video communication
to create open standards that enable a
seamless experience across platforms.

Das Android-Betriebssystem von

Finally, in our letter to you last year, we

Google TV ist als vielversprechendes neues
und offenen Plattform beispielhaft. Seit
dem Erwerb von LifeSize arbeiten wir
mit führenden Unternehmen der Video-
Kommunikation zusammen, um offene

committed to you that Logitech would
emerge from the crisis as a stronger

Logitech is focused on capitalizing
on the growth opportunities in key
emerging countries, especially china. our
strategy for growing china into one of our
three largest markets includes penetrating
more high population centers, securing new
channel partners, and strengthening
relationships with existing partners. We will
also prioritize company-wide resources to
facilitate an expanded sales force and local
investments in product development
and marketing initiatives.

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interconnexion fluide entre plateformes
différentes.

Dans la lettre que nous vous adressions
l’année dernière, nous nous étions engagés
à ce que Logitech sorte renforcée de la
crise. Nous pouvons aujourd’hui affirmer
avec confiance que c’est une réalité !
Nous sommes très fiers de la façon
dont nos collaborateurs ont prouvé leur
attachement à notre société, ses clients
et ses produits. Ils ont su garder le cap et
relever les nombreux défis inhérents à la
récession. Et nous sommes très heureux de
voir comment l’organisation s’est appro-
priée notre stratégie, qui se base sur ce que
nous faisons le mieux — faciliter l’accès au
monde numérique, et recèle de nouvelles
perspectives de leadership et de croissance.
Dans un environnement difficile, nous
avons pu compter sur nos partenaires et
clients, avec qui nous avons travaillé en
étroite collaboration pour atteindre des
objectifs communs. Nous leur sommes très
reconnaissants de leur engagement et de
leur soutien. Nous souhaitons également
remercier les membres du conseil d’admi-
nistration pour leurs précieux conseils.
Pour conclure, nous tenons à vous
remercier vous, chers actionnaires, qui
croyez en la capacité de Logitech à sortir
renforcée de la crise, à se transformer et à
reprendre le chemin de la croissance.

Standards zu entwickeln, die eine plattform-
übergreifende Erfahrung erlauben.

In unserem letztjährigen Brief verspra-
chen wir Ihnen, dass Logitech gestärkt aus
der Krise hervorgehen würde. Heute können
wir sagen, dass wir Wort gehalten haben.
Wir sind mehr als stolz auf unsere
Mitarbeitenden, die sich mit Leidenschaft
für unsere Marke, unsere Kunden und unsere
Produkte einsetzten und sich zielstrebig
einen Weg durch die Rezession bahnten.
Es freut uns auch sehr, wie positiv die stra-
tegische Neuorientierung aufgenommen
wurde. Sie verspricht erneutes Wachstum
und eine führende Position dank unserer
Kernkompetenzen: Menschen mit der
digitalen Welt, Inhalten und Erfahrungen zu
verknüpfen, die ihnen wichtig sind.

Dank der engen Zusammenarbeit mit
Partnern und Kunden im Laufe des Jahres
konnten wir unsere gemeinsamen Ziele
erreichen, und wir danken ihnen sehr dafür.
Grösste Anerkennung geht auch an die
Mitglieder des Verwaltungsrates für ihren
wertvollen Input. Und ein besonderer
Dank geht an Sie, liebe Aktionäre, für Ihr
Vertrauen, dass wir die Herausforderungen
erfolgreich bewältigen und unser
Unternehmen für die Zukunft positionieren
werden.

company — and we can say with absolute
confidence that this is indeed the case.
We could not be more proud of how

our employees demonstrated their
passion for our brand, our customers and
our products as they steadfastly navigated
through the challenges of the recession.
And we’re very pleased with how the
organization has embraced our strategic
transformation, which holds new promise
for leadership and growth by doing what
we do best: connecting people to the
digital experiences that they care about.
Our partners and customers have
worked very closely with us this year
to achieve our mutual goals, and we
are very appreciative. We also wish to
thank our Board of Directors for their
valuable counsel. And we thank you, our
shareholders, for your belief in our ability
to emerge stronger from a challenging
environment and transform our company
for the future.

Gerald P. Quindlen
President and Chief Executive Officer

Guerrino De Luca
Chairman of the Board

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invitation et Document D’information / einladung und
informationsmaterial / invitation and Proxy Statement

Français

A nos actionnaires

Invitation à l’assemblée générale ordinaire; Ordre du jour

4 Questions et réponses concernant l’assemblée générale ordinaire 2010 de Logitech

11 Propositions et explications

Informations concernant le conseil d’administration et le Rapport de Rémunération*

Deutsch

21 An unsere Aktionärinnen und Aktionäre

23 Einladung zur ordentlichen Generalversammlung; Tagesordnung

Fragen und Antworten über die ordentliche Generalversammlung der
Logitech International S.A.

31 Traktanden und Erläuterungen

Verwaltungsratsangelebenheiten und Entschädigungsbericht**

English

To Our Shareholders

Invitation and Agenda for the Annual General Meeting

44 Questions and Answers About the Logitech 2010 Annual General Meeting

Agenda Proposals and Explanations

5 Corporate Governance and Board of Directors Matters

Compensation Report

Annual Report

115 Management’s Discussion and Analysis of Financial Condition and Results of Operations

13 Additional Financial Disclosures

14 Report on Corporate Governance

165

Consolidated Financial Statements

211

Logitech International S.A., Apples — Swiss Statutory Financial Statements

* Se référer s’il vous plaît à la version anglaise
** Bitte beziehen Sie sich auf die englische Version

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27 juillet 2010

A nos actionnaires,

Vous êtes cordialement invités à participer à l'Assemblée générale ordinaire 2010 de Logitech. L'Assemblée aura

lieu mercredi 8 septembre 2010 à 14h30 au Palais de Beaulieu, Salle Rome, à Lausanne, Suisse.

Vous trouverez en annexe une invitation et des informations, qui comprennent un ordre du jour et des indications
concernant les points qui seront soumis au vote lors de l’Assemblée, la façon dont vous pourrez exercer vos droits de
vote, la rémunération des membres du Conseil d’administration et de la direction générale de Logitech ainsi que
d'autres informations utiles.

Que vous puissiez participer à l'Assemblée générale ordinaire ou non, votre vote est important.

Nous vous remercions du soutien que vous apportez à Logitech.

GUERRINO DE LUCA
Président du Conseil d’administration

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LOGITECH INTERNATIONAL S.A.

Invitation à l'Assemblée générale ordinaire
Mercredi 8 septembre 2010
14h30 (l'enregistrement débute à 13h30)
Palais de Beaulieu – Lausanne, Suisse

*****

ORDRE DU JOUR

A. Rapport

Rapport d'activité pour l'exercice se terminant au 31 mars 2010

Points soumis au vote

Approbation du rapport annuel, du rapport de rémunération, des comptes consolidés et des comptes
statutaires de Logitech International S.A. pour l'exercice 2010

Vote consultatif sur les principes, la politique et les pratiques de rémunération

Report à nouveau du bénéfice résultant du bilan sans paiement de dividende

4. Modification des statuts afin de mettre en œuvre la Loi suisse sur les titres intermédiés

Décharge des membres du Conseil d’administration et de la Direction pour leur activité pendant l'exercice
2010

Elections au Conseil d’administration

6.1. Re-élection de Daniel Borel

6.2. Re-élection de Sally Davis

6.3. Re-élection de Guerrino De Luca

6.4. Election de Neil Hunt

6.5. Re-élection de Monika Ribar

Re-élection de PricewaterhouseCoopers S.A. en qualité d'organe de révision

Apples, Suisse, le 27 juillet 2010

Le Conseil d’administration

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QUESTIONS ET REPONSES
CONCERNANT L'ASSEMBLEE GENERALE ORDINAIRE 2010 DE LOGITECH

INFORMATIONS GENERALES CONCERNANT TOUS LES ACTIONNAIRES

Pourquoi ai-je reçu cette "Invitation et Document d'Information"?

Ce document est destiné à satisfaire à la fois aux règles du droit des sociétés suisses et aux règles américaines
concernant les "proxy statements". En dehors des Etats-Unis et du Canada, cette Invitation et Document d'Information
sera remis aux actionnaires inscrits au Registre des Actions accompagné d'une traduction partielle française et
allemande. La version anglaise de cette Invitation et Document d'Information fait fois en cas de divergence avec les
autres versions. Des copies de cette Invitation et Document d'Information ont été mises à disposition des actionnaires
dès le 27 juillet 2010.

Qui peut voter à l'Assemblée?

Les actionnaires inscrits au Registre des Actions de Logitech International S.A. (y compris le sous-registre tenu par
l'agent de transfert américain de Logitech, The Bank of New York Mellon Corporation) le jeudi 2 septembre 2010,
peuvent voter à l'Assemblée. Aucun actionnaire ne pourra être inscrit au Registre des Actions entre le 3 septembre 2010
et le jour suivant celui de l'Assemblée. Au 30 juin 2010, 86'137'698 actions étaient inscrites et conféraient le droit de vote
sur un total de 175'691'987 actions Logitech en circulation. Le nombre d'actions qui pourront effectivement être votées
lors de l'Assemblée dépendra du nombre d'actions qui seront inscrites ou désinscrites entre le 30 juin 2010 et le 2
septembre 2010.

Pour obtenir davantage d'informations sur la façon dont les ayants droit économiques américains et canadiens
peuvent exercer leurs droits de vote dans la perspective de l'Assemblée, vous êtes priés de vous référer à la section
"Informations supplémentaires pour les ayants droit économiques américains et canadiens" ci-dessous.

Qui a la qualité d'actionnaire inscrit?

Vous êtes considéré comme un actionnaire inscrit et cette Invitation et Document d'Information ainsi que les
documents qui l'accompagnent vous sont adressés directement, si vos actions sont inscrites au Registre des Actions de
Logitech International S.A. ou dans le sous-registre tenu par notre agent de transfert américain, The Bank of New
York Mellon Corporation.

Qui est considéré comme un ayant droit économique d'actions inscrites au nom d'un dépositaire?

Les actionnaires qui n'ont pas demandé à ce que leurs actions soient inscrites directement au Registre des
Actions, et qui détiennent leurs actions par l'intermédiaire d'une banque, d'un trustee, d'une société nominee ou d'une
organisation similaire inscrite au Registre des Actions, sont les ayants droit économiques des actions inscrites au nom
du dépositaire. Si vous détenez vos actions Logitech par l'intermédiaire d'une banque, d'un trustee, d'une société
nominee ou d'une organisation similaire américaine ou canadienne, ce qui est la pratique habituelle aux Etats-Unis et
au Canada, l'organisation auprès de laquelle vous détenez votre compte est considérée comme étant l'actionnaire
inscrit en ce qui concerne l'exercice du droit de vote à l'Assemblée, et cette Invitation et Document d'Information ainsi
que les documents qui l'accompagnent sont envoyés à cette organisation ou mis à sa disposition. Vous êtes en droit de
donner des instructions à l'organisation pertinente sur la façon dont le droit de vote doit être exercé en ce qui concerne
les actions détenues pour votre compte.

Pourquoi est-il important de voter?

Logitech est une société cotée en bourse dont les décisions essentielles ne peuvent êtres prises que par les
actionnaires. Que vous ayez l'intention de participer à l'Assemblée ou non, il est important que vos actions soient
représentées.

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Combien d'actions doivent être représentées pour que l'Assemblée puisse valablement délibérer?

L'Assemblée n'est soumise à aucune exigence de quorum. En droit suisse, les assemblées générales des sociétés
cotées en bourse ne sont pas soumises à des exigences de participation minimale, et les Statuts de Logitech ne
prévoient pas non plus une telle exigence.

Où Logitech a-t-elle ses principales activités?

Le principal établissement de Logitech en Suisse se situe à la Rue du Sablon 2-4, à 1110 Morges, et le principal
établissement aux Etats-Unis se situe à 6505 Kaiser Drive, Fremont, Californie 94555. Le numéro de téléphone
principal de Logitech en Suisse est le +41-(0)21-863-5111 et le numéro de téléphone principal aux Etats-Unis est le
+510-795-8500.

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Comment puis-je me procurer le rapport annuel de Logitech ainsi que les autres documents mis à la disposition
des actionnaires?

Une copie de notre rapport annuel 2010, de cette Invitation et Document d'Information ainsi que notre rapport
annuel établi sur la base du formulaire 10-K pour l'exercice 2010 que nous avons déposé auprès de la U.S. Securities
and Exchange Commission sont disponibles sur notre site internet à l'adresse http://ir.logitech.com. Nos actionnaires
peuvent aussi obtenir sans frais des copies de ces documents dans nos principaux établissements en Suisse et aux
Etats-Unis aux adresses et numéros de téléphone mentionnés ci-dessus.

Où puis-je obtenir les résultats des votes de l'Assemblée?

Nous entendons annoncer le résultat des votes lors de l'Assemblée et publier un communiqué de presse à l'issue
de celle-ci. Nous entendons également annoncer les résultats dans un communiqué établi sur le Formulaire 8-K de la
U.S. Securities and Exchange Commission au plus tard mardi 14 septembre 2010. Un exemplaire du Formulaire 8-K
sera disponible sur notre site internet à l’adresse suivante: http://ir.logitech.com.

Puis-je participer et voter lors de l'Assemblée si je ne suis pas un actionnaire inscrit?

Vous ne pouvez pas participer et voter vous-même vos actions lors de l'Assemblée à moins que vous deveniez un
actionnaire inscrit d'ici au 2 septembre 2010 ou que vous obteniez une procuration (legal proxy) de la banque, trustee
ou société nominee qui détient vos actions et qui vous permette de voter les actions lors de l'Assemblée. Si vous
détenez vos actions par l'intermédiaire d'une banque, d'un trustee ou d'une société nominee qui n'est pas américaine ou
canadienne, vous pouvez vous faire inscrire en qualité d’actionnaire en contactant notre Registre des Actions à notre
principal établissement en Suisse, à l'adresse mentionnée ci-dessus, et en suivant les instructions qui vous seront
données ou, pour certaines juridictions, en demandant à être inscrits par l'intermédiaire de la banque ou du négociant
via lequel vous détenez vos actions. Si vous détenez vos actions par l'intermédiaire d'une banque, d'un trustee ou d'une
société nominee américaine ou canadienne, vous pouvez vous faire inscrire en qualité d'actionnaire en contactant votre
banque, trustee ou société nominee et en suivant les instructions qui vous seront données.

INFORMATIONS SUPPLEMENTAIRES CONCERNANT LES ACTIONNAIRES INSCRITS

Comment puis-je voter si je n'envisage pas de participer à l'Assemblée?

Si vous n'envisagez pas de participer à l'assemblée, vous pouvez cocher la case "Option 3" sur la carte-réponse
annexée pour donner procuration à Logitech ou au représentant
indépendant, Me Béatrice Ehlers, pour vous
représenter lors de l'Assemblée. Vous êtes invité à communiquer vos instructions de vote en cochant les cases
pertinentes à côté des points de l'ordre du jour sur la carte-réponse et en signant, datant et retournant votre carte-
réponse complétée dès que possible au moyen de l'enveloppe affranchie annexée. Si vous signez et retournez la carte-
réponse sans donner d'instruction de vote pour tout ou partie de l'ordre du jour, vos droits de vote seront exercés
conformément aux propositions du Conseil d’administration (le "Conseil"). Nous vous invitons à vous référer aux
indications de la carte-réponse pour davantage d'informations.

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Comment puis-je participer à l'Assemblée?

Si vous souhaitez participer à l'Assemblée, nous vous invitons à cocher la case "Option 1" de la carte-réponse et
à retourner cette dernière dûment complétée, signée et datée à Logitech au moyen de l'enveloppe affranchie annexée
jusqu'au 27 août 2010. Nous vous ferons parvenir une carte d’accès. Si vous ne recevez pas votre carte d’accès avant
l'Assemblée et êtes un actionnaire inscrit au 2 septembre 2010, vous pouvez participer à l'Assemblée en présentant une
pièce d'identité à l'Assemblée.

Puis-je demander à une autre personne de me représenter à l'Assemblée?

Oui. Si vous souhaitez que quelqu'un d'autre que Logitech ou le Représentant Indépendant vous représente à
l'Assemblée, nous vous invitons à cocher la case "Option 2" sur la carte-réponse et à nous fournir le nom et l'adresse
de la personne par laquelle vous souhaitez être représenté. Vous devez alors retourner la carte-réponse dûment
complétée, signée et datée à Logitech en utilisant l'enveloppe affranchie annexée jusqu'au 27 août 2010. Nous
enverrons une carte d’accès au représentant que vous aurez désigné. Si le nom et l'adresse que vous communiquez ne
sont pas suffisamment clairs, Logitech enverra la carte d’accès à votre adresse. Il vous appartiendra alors de la
transmettre à votre représentant.

Puis-je vendre mes actions avant l'Assemblée si j'ai déjà voté?

Logitech n'empêche pas le transfert d'actions avant une assemblée. Toutefois, si vous vendez vos actions
Logitech avant l'Assemblée et que le Registre des Actions de Logitech est informé de cette vente, le vote concernant
les actions vendues ne sera pas pris en considération. Les personnes qui achètent des actions après la clôture du
Registre des Actions le jeudi 2 septembre 2010 ne pourront pas faire inscrire ces actions avant le jour suivant
l'Assemblée et ne seront par conséquent pas en mesure de voter ces actions lors de l'Assemblée.

Puis-je changer les instructions de vote que j'ai données en utilisant la carte-réponse ?

Vous pouvez modifier vos instructions jusqu'au moment du vote. Vous pouvez révoquer vos instructions en nous
demandant de vous remettre une nouvelle carte-réponse, auquel cas votre précédente carte-réponse sera annulée. Si
et nous la
vous souhaitez donner de nouvelles instructions, vous pouvez compléter la nouvelle carte-réponse
retourner. Vous pouvez aussi participer à l'Assemblée et voter personnellement. Toutefois, votre participation à
l'Assemblée n'annulera pas automatiquement les instructions contenues dans votre carte-réponse, à moins que vous
votiez lors de l'Assemblée ou que vous demandiez expressément et par écrit que votre précédente carte-réponse soit
révoquée.

Si je donne procuration au moyen de la carte-réponse, que se passe-t-il si je ne donne pas d'instruction de vote?

Si vous êtes un actionnaire inscrit et que vous signez et retournez votre carte-réponse sans donner d'instructions
de vote particulières pour tout ou partie des points figurant à l'ordre du jour, vos droits de vote seront exercés en faveur
des propositions du Conseil d’administration. En outre, si vous ne donnez pas d'instruction particulière dans la carte-
réponse et que des points ne figurant pas à l'ordre du jour sont valablement soumis au vote, vos droits de vote seront
exercés en faveur des propositions du Conseil d’administration sur ces points.

En outre, si vos actions sont représentées par une institution soumise à la Loi fédérale suisse sur les banques et
les caisses d'épargne ou par un gérant de fortune professionnel au sens du droit suisse, et si vous n'avez pas donné
d'instructions générales ou particulières à la banque ou au gérant de fortune concerné, la banque ou le gérant de
fortune sera tenu, selon le droit suisse, d'exercer les droits de vote concernant vos actions conformément aux
propositions du Conseil d’administration.

Qui puis-je contacter pour poser des questions?

Si vous avez des questions ou besoin d'assistance pour voter vos actions, vous êtes invité à nous appeler au +1-

510-713-4220 ou à nous envoyer un email à l'adresse investorrelations@logitech.com.

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INFORMATIONS SUPPLEMENTAIRES POUR LES AYANTS DROIT ECONOMIQUES AMERICAINS
OU CANADIENS

Pourquoi ai-je reçu un courrier d'une page m'indiquant que le matériel de vote peut être obtenu par internet
cette année plutôt qu'un exemplaire imprimé du matériel de vote?

Nous avons permis aux ayants droit économiques détenant leurs actions par l'intermédiaire de banques, de
trustees ou de sociétés nominees américaines ou canadiennes d'obtenir le matériel de vote par internet. En
conséquence, les banques, trustees ou sociétés nominees concernées transmettent un "Avis de mise à disposition" du
matériel de vote par internet (l' "Avis") aux ayants droit économiques concernés. Ces personnes pourront accéder au
matériel de vote sur un site internet indiqué dans l'Avis ou demander à recevoir un exemplaire imprimé du matériel de
vote. Des instructions sur la façon d'accéder au matériel de vote par internet ou de demander la remise d'un exemplaire
imprimé figurent dans l'Avis. En outre, les ayants droit économiques détenant leurs actions par l'intermédiaire d'une
banque, d'un trustee ou d'une société nominee américaine ou canadienne peuvent demander en tout temps à recevoir
une copie imprimée du matériel de vote par la poste ou par courrier électronique.

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Comment puis-je accéder au matériel de vote par voie électronique?

L'Avis vous fournira des indications sur la façon dont vous pouvez:

•

accéder au matériel de vote sur internet concernant l'Assemblée; et

nous demander de vous adresser à l'avenir le matériel de vote par courrier électronique.

En choisissant de recevoir votre matériel de vote par courrier électronique à l'avenir, vous nous épargnerez les
frais liés à l'impression et à l'envoi des documents, ce qui réduira aussi l'impact de notre Assemblée générale ordinaire
sur l'environnement. Si, à l'avenir, vous décidez de recevoir notre matériel de vote par courrier électronique, vous
recevrez l'année prochaine un courrier électronique contenant des instructions ainsi qu'un lien au matériel de vote et
également un lien sur lequel des instructions de vote pourront être données. Votre décision de recevoir le matériel de
vote par courrier électronique restera valide jusqu'à ce que vous la révoquiez.

Qui peut donner des instructions de vote pour l'Assemblée?

Les actionnaires qui détiennent leurs actions par l'intermédiaire d'une banque, d'un trustee ou d'une société
nominee américaine ou canadienne au 16 juillet 2010 peuvent donner des instructions à l'organisation concernée sur la
façon dont les droits de vote doivent être exercés. Logitech a pris des mesures pour qu'une société spécialisée dans la
fourniture de services à des banques, des trustees et des sociétés nominees américaines et canadiennes procède à une
réconciliation des positions en actions des ayants droit économiques américains et canadiens entre le 16 juillet 2010 et
le 25 août 2010, date que Logitech a identifiée comme étant la dernière date possible pour une telle réconciliation. Il
est prévu que ces mesures donnent lieu aux ajustements suivants: si une personne qui était un ayant droit économique
d'actions américain ou canadien le 16 juillet 2010 donne des instructions de vote, mais vend ses actions par la suite
jusqu'au 25 août 2010, les instructions de vote données seront annulées. Si une personne qui était un ayant droit
économique d'actions au 16 juillet 2010 et qui avait donné des instructions de vote augmente ou réduit ultérieurement
sa participation, mais est toujours un ayant droit économique au 25 août 2010, le nombre de droits de vote attribué à
cette personne sera augmenté ou réduit pour refléter sa participation au 25 août 2010.

Si vous devenez un ayant droit économique d'actions après le 16 juillet 2010 par l'intermédiaire d'une banque,
d'un trustee ou d'une société nominee américaine ou canadienne, et que vous souhaitez voter lors de l'Assemblée
générale ou donner des instructions de vote à un représentant, vous devez vous faire inscrire comme actionnaire. Vous
pouvez devenir un actionnaire inscrit en contactant votre banque, trustee ou société nominee et en vous conformant à
leurs instructions. Pour que votre inscription, l'envoi du matériel de vote ainsi que l'envoi de vos instructions de vote
puissent intervenir en temps utile, nous vous encourageons à demander votre inscription dès que possible avant le 2
septembre 2010.

Comment puis-je voter si je suis un ayant droit économique américain ou canadien?

Si vous êtes un ayant droit économique d'actions et que vous souhaitez participer à l'Assemblée, vous devez

obtenir une procuration de l'organisation qui détient vos actions.

Si vous ne souhaitez pas participer personnellement à l'Assemblée, vous pouvez voter par procuration. Vous

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pouvez donner vos instructions de vote par internet ou, si vous avez demandé la remise d'une copie imprimée du
matériel de vote, vous pouvez aussi donner vos instructions de vote par la poste ou par téléphone en vous conformant
aux instructions contenues dans l'Avis.

Que se passe-t-il si je ne donne pas d'instruction de vote spécifique?

Si vous êtes un ayant droit économique américain ou canadien et que vous ne donnez pas d'instruction de vote
spécifique à votre banque, trustee ou société nominee, votre banque, trustee ou société nominee pourra, en application
des règles de certaines bourses nationales ou régionales, voter sur certains points considérés comme usuels mais devra
s'abstenir de voter sur les points de l'ordre du jour considérés comme étant non usuels. Si l'organisation qui détient vos
actions ne reçoit pas d'instruction de vote de votre part sur la façon dont elle doit exercer les droits de vote sur des
points de l'ordre du jour qui ne sont pas usuels, les droits de vote afférant à vos actions ne seront pas exercés et ne
seront pas comptabilisés comme des voix exprimées dans le cadre du vote. Nous vous encourageons à donner des
instructions de vote à l'organisation qui détient vos actions en suivant attentivement les instructions figurant dans
l'Avis. Nous nous attendons à ce que les points suivants de l'ordre du jour soient considérés comme n'étant pas usuels:
Point 2 (vote consultatif sur les principes, la politique et les pratiques de rémunération), Point 3 (report à nouveau du
bénéfice résultant de l'exercice sans paiement de dividende), Point 4 (modification des statuts afin de mettre en œuvre
la Loi suisse sur les titres intermédiés) et Point 6 (élections au conseil d’administration). Nous considérons tous les
autres points comme étant usuels. L'abstention d'une banque (broker non-votes) sur un point de l'ordre du jour ne sera
pas considérée comme une voix exprimée.

Dans quel délai mes instructions de vote doivent-t-elles être données?

Si vous détenez vos actions par l'intermédiaire d'une banque, d'un négociant ou d'un autre dépositaire américain
ou canadien, vous pouvez donner vos instructions de vote jusqu'au 3 septembre 2010 à 23h59 (heure avancée de l'Est –
Eastern Daylight Time).

Puis-je changer mes instructions de vote après les avoir données?

Vous pouvez révoquer vos instructions et changer ces dernières en tout temps jusqu'au moment du vote final.
Vous pouvez donner de nouvelles instructions par internet ou par téléphone (seule la dernière instruction
communiquée par internet ou par téléphone avant l'Assemblée sera prise en compte), ou en signant et en retournant
une nouvelle carte d'instruction portant une date ultérieure, ou encore en participant à l'Assemblée et en votant vous-
même, dans la mesure où vous êtes en possession d'une procuration (legal proxy) qui vous permet de participer à
l'Assemblée et d'y voter. Toutefois, votre participation à l'Assemblée générale ordinaire n'aura pas pour effet d'annuler
automatiquement vos instructions, à moins que vous votiez à l'occasion de l'Assemblée ou demandiez expressément et
par écrit que vos instructions de vote antérieures soient révoquées.

INFORMATIONS COMPLEMENTAIRES POUR LES ACTIONNAIRES QUI DETIENNENT LEURS
ACTIONS PAR L'INTERMEDIAIRE D'UNE BANQUE OU D'UN NEGOCIANT (EN DEHORS DES
ETATS-UNIS OU DU CANADA)

Comment puis-je voter par procuration si mes actions sont détenues par l'intermédiaire d'une banque ou d'un
négociant dépositaire?

Votre banque, trustee ou société nominee devrait vous inviter à lui communiquer vos instructions sur la façon
dont elle doit exercer le droit de vote afférant à vos actions. Si tel n'est pas le cas, vous devez contacter votre banque
ou négociant dépositaire pour lui communiquer vos instructions.

Dans quel délai dois-je transmettre mes instructions de vote si mes actions Logitech sont détenues par
l'intermédiaire d'une banque ou d'un négociant dépositaire?

Les banques et négociants dépositaires invitent généralement leurs clients à leur communiquer leurs instructions
dans un certain délai. En dehors des Etats-Unis et du Canada, ce délai échoit généralement deux à trois jours avant la
date fixée par la société qui tient son assemblée générale. Si vous détenez des actions Logitech par l'intermédiaire
d'une banque ou d'un négociant dépositaire en dehors des Etats-Unis ou du Canada, nous vous invitons à vous

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renseigner auprès de la banque ou du négociant concerné sur les délais pratiqués et à transmettre vos instructions de
vote à ces institutions aussi rapidement que possible avant la date de l'Assemblée.

AUTRES INFORMATIONS CONCERNANT L'ASSEMBLEE

Autres informations concernant les représentants dépositaires

Les institutions soumises à la Loi fédérale suisse sur les banques et les caisses d'épargne, ainsi que les gérants de

fortune professionnels doivent aviser Logitech du nombre et de la valeur nominale des actions qu'ils représentent.

Propositions pour l'Assemblée

Le Conseil ne fera pas d'autres propositions et n'a pas de raison de penser que des tiers feront d'autres
propositions pour l'Assemblée générale ordinaire. Si d'autres propositions sont régulièrement soumises au vote lors de
l'assemblée et que vous n'avez pas donné d'instruction spécifique sur votre carte-réponse ou votre carte d'instruction,
vos actions seront votées sur ces points conformément aux propositions du Conseil d’administration.

Sollicitation de procurations

Nous supporterons les frais engendrés par la sollicitation de procurations et avons mandaté Georgeson Inc. pour
solliciter de telles procurations moyennant des honoraires de $15'000 ainsi qu'un montant approprié destiné à couvrir
les frais encourus. Il est possible que certains administrateurs, directeurs et collaborateurs de Logitech sollicitent des
procurations personnellement ou par poste, téléphone, courrier électronique ou de toute autre manière sans recevoir de
rémunération supplémentaire. Nous nous réservons la faculté de demander à un tiers de solliciter des procurations et
des instructions de vote pour notre compte par téléphone pour un émolument de $5.00 par appel ainsi qu'une
couverture appropriée des frais. Aux Etats-Unis, nous devons demander aux banques et sociétés nominees qui
détiennent des actions en leur nom de communiquer notre matériel de vote aux ayants droit économiques des actions
détenues, et nous sommes tenus de défrayer ces banques et sociétés nominees pour les frais engendrés par ces
démarches selon un tarif prévu par la loi.

Enregistrement des votes

Les représentants d'au moins deux banques suisses agiront en qualité de scrutateurs lors de l'Assemblée. Suivant
l'usage pour les sociétés suisses, notre Registre des Actions établira la liste des instructions de vote qui auront été
reçues des actionnaires inscrits avant la date de l'Assemblée.

Propositions d'actionnaires et candidats au Conseil d’administration

Propositions d'actionnaires pour l'Assemblée générale ordinaire 2010

Nos Statuts permettent à un ou plusieurs actionnaires qui représentent au moins (i) un pour-cent du capital-
actions ou, si cette valeur est inférieure, (ii) des actions totalisant une valeur nominale d'un million de francs suisses,
de requérir l'inscription d'un point à l'ordre du jour d'une assemblée générale des actionnaires. Notre Conseil
d’administration doit inclure une telle proposition dans la convocation à l'Assemblée. L'inscription d'un point à l'ordre
du jour doit être requise par écrit auprès du Conseil d’administration au moins 60 jours avant la date prévue pour
l'assemblée. Le délai pour demander l'inscription d'un point à l'ordre du jour à l'Assemblée générale ordinaire du 8
septembre 2010 a expiré le 9 juillet 2010. Toutefois, le droit suisse permet à tout actionnaire inscrit ou à toute
personne ayant reçu une procuration valide de la part d'un actionnaire inscrit de faire avant ou lors de l'assemblée des
propositions alternatives sur des points figurants à l'ordre du jour de l'Assemblée générale ordinaire 2010.

Propositions d'actionnaires pour l'Assemblée générale ordinaire 2011

Un actionnaire inscrit qui satisfait aux exigences de participation minimale figurant dans les Statuts peut
demander qu'un point soit porté à l'ordre du jour de l'Assemblée générale ordinaire 2011 en présentant une requête
écrite et en indiquant les objets de discussion et les propositions au Secrétaire du Conseil de Logitech à notre

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établissement principal en Suisse ou aux Etats-Unis jusqu'au 8 juillet 2011 au plus tard. En outre, si vous êtes un
actionnaire inscrit et satisfaites aux exigences de participation minimale prévues par la règle 14a-8 du U.S. Securities
Exchange Act of 1934 (la "Loi de 1934"), vous pouvez soumettre une proposition au Conseil d’administration en vue
de son inscription à l'ordre du jour de l'Assemblée générale ordinaire 2011 en remettant une requête dans ce sens ainsi
qu'une description de la proposition au Secrétaire du Conseil de Logitech à notre établissement principal en Suisse ou
aux Etats-Unis jusqu'au 29 mars 2011 au plus tard. La proposition devra satisfaire aux exigences de la règle 14a-8 de
la Loi de 1934, qui énumère les conditions auxquelles une telle proposition doit satisfaire pour être incluse dans le
matériel de vote établi par la société selon la réglementation américaine sur les valeurs mobilières. Selon les Statuts de
Logitech, seuls les actionnaires inscrits sont considérés comme étant des actionnaires de Logitech. En conséquence, si
vous n'êtes pas un actionnaire inscrit, vous n'êtes pas habilité à présenter des propositions pour l'Assemblée générale
ordinaire 2011.

Proposition de candidats au Conseil d’administration

Les propositions de candidats au Conseil d’administration par des actionnaires inscrits doivent être faites

conformément aux règles régissant les propositions d'actionnaires mentionnées ci-dessus.

Dispositions pertinentes des Statuts

La disposition des Statuts concernant le droit d'un ou de plusieurs actionnaires inscrits qui représentent au moins
(i) un pourcent du capital-actions ou, si cette valeur est inférieure, (ii) des actions totalisant une valeur nominale d'un
million de francs suisses de demander l'inscription d'un point à l'ordre du jour d'une Assemblée générale des
actionnaires peut être consultée sur notre site internet à l'adresse http://ir.logitech.com. Vous pouvez aussi contacter le
Secrétaire du Conseil d’administration de Logitech à notre établissement principal en Suisse ou aux Etats-Unis pour
obtenir une copie de la disposition pertinente de nos Statuts.

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PROPOSITIONS ET EXPLICATIONS

A. RAPPORT

Rapport d'activité pour l'exercice se terminant le 31 mars 2010

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La direction de Logitech International S.A. donnera un rapport sur les opérations de la Société pour l'exercice

2010 lors de l'Assemblée Générale ordinaire.

POINTS DE L'ORDRE DU JOUR SOUMIS AU VOTE

Point 1

Approbation du rapport annuel, du rapport de rémunération, des comptes consolidés et des comptes statutaires
de Logitech International S.A. pour l'exercice 2010

Proposition

Le Conseil d’administration propose d'approuver le rapport annuel, le rapport de rémunération, les comptes

consolidés et les comptes statutaires de Logitech International S.A. pour l'exercice 2010.

Explication

Les comptes consolidés de Logitech et les comptes statutaires de Logitech International S.A. pour l'exercice
2010 sont inclus dans le rapport annuel de Logitech qui a été distribué à tous les actionnaires inscrits avec cette
Invitation et Document d'Information. Le rapport annuel contient également le rapport de l'organe de révision de
Logitech sur les comptes consolidés et les comptes statutaires ainsi que des informations complémentaires sur
l'activité de la Société, son organisation, sa stratégie, de même que des informations concernant la gouvernance de
l'entreprise conformément aux exigences du SIX Swiss Exchange en la matière. Le rapport de rémunération est inclus
dans cette Invitation et Document d'Information. Des exemplaires du rapport annuel et de l'Invitation et Document
d'Information peuvent être obtenus sur internet à l'adresse http://ir.logitech.com.

La loi suisse requiert que le rapport annuel et les comptes de sociétés suisses soient soumis aux actionnaires pour
approbation ou rejet lors de chaque assemblée générale ordinaire. La soumission du rapport de rémunération au vote
des actionnaires en même temps que le rapport annuel est une pratique recommandée par le Code de bonne pratique en
matière de gouvernance d'entreprise établi par economiesuisse,
l'une des principales associations faîtières de
l'économie suisse. En cas de vote négatif sur cette proposition, le Conseil d’administration convoquera une assemblée
générale extraordinaire pour permettre aux actionnaires de reconsidérer cette proposition. L'approbation de cette
proposition ne constitue pas une approbation ou un rejet des points particuliers mentionnés dans le rapport annuel, le
rapport de rémunération ou les comptes annuels ou statutaires pour l'exercice 2010.

PricewaterhouseCoopers S.A., en sa qualité d'organe de révision de Logitech, a recommandé sans réserve que
l'Assemblée générale ordinaire de Logitech approuve les comptes consolidés de Logitech ainsi que les comptes statutaires de
Logitech International S.A. PricewaterhouseCoopers S.A. parvient à la conclusion que "les comptes consolidés pour
l'exercice se terminant au 31 mars 2010 donnent, de manière générale, une image fidèle de la situation financière, du résultat
des opérations et des flux de fonds conformément aux principes comptables généralement acceptés aux Etats-Unis (US
GAAP) et en conformité avec le droit suisse". PricewaterhouseCoopers S.A. parvient également à la conclusion et confirme
que "les comptes annuels ainsi que la proposition du report à nouveau du bénéfice au bilan sont conformes au droit suisse et
aux Statuts de Logitech International S.A."

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Majorité requise

L'approbation de ce point requiert la majorité des voix exprimées par les personnes présentes ou représentées à

l'Assemblée générale ordinaire, sans tenir compte des abstentions.

Recommandation

Le Conseil d’administration recommande de voter en faveur de l'approbation du rapport annuel, du rapport de

rémunération, des comptes consolidés et des comptes statutaires de Logitech International S.A. pour l'exercice 2010.

Vote consultatif sur les principes, la politique et les pratiques de rémunération

Point 2

Proposition

Le Conseil d’administration propose aux actionnaires d'approuver, sur une base consultative, les principes, la
politique et les pratiques de rémunération de Logitech telles que ces dernières sont décrites dans le chapitre
"Compensation Discussion and Analysis" du rapport de rémunération de l'exercice 2010.

Explication

Lors de l'Assemblée générale ordinaire 2009,

le Conseil d’administration a demandé aux actionnaires
d'approuver les principes, la politique et les pratiques de rémunération de Logitech. Les actionnaires ont approuvé la
proposition qui leur a été soumise en 2009 et le Conseil d’administration demande de nouveau aux actionnaires de se
prononcer sur une base consultative. Le vote consultatif n'engage pas le Conseil d’administration. Toutefois, le
Conseil et le Comité de rémunération du Conseil prendront en considération d'éventuels résultats négatifs importants,
et chercherons à en comprendre les raisons.

Comme indiqué dans la section "Compensation Discussion and Analysis" du rapport de rémunération 2010 de
Logitech, Logitech a établi un programme de rémunération pour attirer, retenir et motiver les directeurs, cadres et
employés ayant les talents qui sont essentiels au succès de son entreprise dans le long terme. Plus précisément, le
programme de rémunération des membres de la direction de Logitech a été conçu de façon à:



être compétitif avec ceux des sociétés comparables de l'industrie et dans les régions dans lesquelles les
directeurs concernés résident, de façon à retenir les personnes les plus talentueuses;

 maintenir un équilibre entre la rémunération fixe et variable et faire dépendre une partie importante de la



rémunération des performances de Logitech, tout en évitant les prises de risque inappropriées;
aligner la rémunération des membres de la direction sur les intérêts des actionnaires, en liant une part
importante de la rémunération à l'augmentation de la valeur des actions;
favoriser un environnement orienté vers
exceptionnelles; et
refléter l'appréciation du Comité de rémunération du rôle et de la performance passée d'un membre de la
direction par le niveau de son salaire de base et par des gratifications à court terme, ainsi que de son
potentiel de contribution future à Logitech par des octrois à long terme réalisés dans le cadre de plans
d’intéressement et de participation.

récompense les performances

la performance qui

Le Comité de rémunération du Conseil a établi un programme de rémunération décrit plus précisément dans le
rapport de rémunération annexé à la version anglaise de cette Invitation et Document d'Information. Le rapport de
rémunération de Logitech décrit également la politique et le mode de calcul des rémunérations des collaborateurs
ayant un statut inférieur à celui de directeur, les principes directeurs et les risques liés au programme de rémunération,
ainsi que la rémunération versée pour l'exercice 2010.

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En raison des incertitudes économiques et des conditions de marché durant l’exercice 2010, les salaires de base
des directeurs sont restés inchangés par rapport à l'exercice 2009, et le programme de bonus de Logitech a donné
davantage d'importance à la gestion et à la rétention des liquidités et des parts du marché, ainsi qu'à la profitabilité.

Bien que la rémunération joue un rôle essentiel pour attirer, retenir et motiver les meilleurs cadres et
collaborateurs, nous pensons qu'il ne s'agit pas de la seule raison pour laquelle des cadres et collaborateurs
exceptionnels décident de rejoindre Logitech et d'y rester, ou de travailler dur pour obtenir des résultats favorables aux
actionnaires. Le Comité de Rémunération et la direction estiment qu'un environnement de travail attrayant et un cadre
dans lequel les directeurs et employés peuvent se développer, exprimer leur potentiel et faire la différence constituent
des éléments essentiels du succès de Logitech dans l'embauche, la rétention et la motivation de ses directeurs et
employés.

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La section "Compensation Discussion and Analysis" va du début du rapport de rémunération jusqu'au début de la

section intitulée "Summary Compensation Table for Fiscal Year 2010."

Majorité requise

L'approbation de ce point requiert la majorité des voix exprimées par les personnes présentes ou représentées à

l'Assemblée générale ordinaire, sans tenir compte des abstentions.

Recommandation

Le Conseil d’administration recommande de voter, sur une base consultative, en faveur de l'approbation des principes,
de la politique et des pratiques de rémunération de Logitech tels qu'exposés dans la section "Discussion et Analyse de la
rémunération" du rapport de rémunération pour l'exercice 2010.

Point 3
Report à nouveau du bénéfice résultant du bilan sans paiement de dividende

Proposition

Le Conseil d’administration propose de ne pas verser de dividende sur la base du bénéfice réalisé pour l'exercice
2010 et que le bénéfice de CHF 349'312'000 (US $321'877'000 au taux de change du 30 juin 2010) soit reporté à
nouveau.

(les chiffres sont indiqués en milliers)

Bénéfice reporté au début de l'exercice 2010 ..............................
Report à nouveau du bénéfice décidé par l'Assemblée générale
ordinaire 2009 – dividende .........................................................
Attribution à la réserve pour actions propres...............................
Bénéfice net pour l'exercice 2010................................................

CHF 354'924

CHF
CHF
CHF

—
(30
'122)
24'510

Bénéfice à disposition de l'Assemblée générale ordinaire à la
fin de l'exercice 2010...................................................................

CHF 349'312

Explication

Le droit suisse requiert qu'une proposition d'emploi du bénéfice résultant du bilan soit soumise aux actionnaires
pour approbation ou rejet lors de chaque assemblée générale ordinaire. Le bénéfice à disposition des actionnaires de
Logitech à l'Assemblée générale ordinaire 2010 est le bénéfice de Logitech International S.A., la société faîtière du
groupe Logitech.

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Le Conseil d’administration continue de penser qu'il est dans l'intérêt de Logitech et de ses actionnaires de
conserver le bénéfice de Logitech pour permettre d'investir dans la croissance future de l'entreprise, pour financer
d'éventuels rachats d'actions et pour acquérir, cas échéant, d'autres sociétés ou entreprises. En conséquence, le Conseil
propose de ne pas verser de dividende et de reporter à nouveau le bénéfice à disposition de l'Assemblée générale
ordinaire.

En cas de vote négatif sur cette proposition par l'assemblée, le Conseil d’administration prendra le vote des
actionnaires en considération, et convoquera une assemblée générale extraordinaire pour soumettre à nouveau cette
proposition ou une autre proposition aux actionnaires.

Majorité requise

L'approbation de ce point requiert la majorité des voix exprimées par les personnes présentes ou représentées à

l'Assemblée générale ordinaire, sans tenir compte des abstentions.

Recommandation

Le Conseil d’administration recommande de voter en faveur du report à nouveau du bénéfice résultant du bilan

sans paiement de dividende.

Modification des statuts afin de mettre en œuvre la Loi suisse sur les titres intermédiés

Point 4

Proposition

Le Conseil d’administration propose aux actionnaires d'autoriser une modification de l'article 4 des Statuts de

Logitech International S.A. afin de mettre en œuvre la Loi suisse sur les titres intermédiés.

Explication

Cette proposition concerne une modification technique de nos Statuts. Le Conseil d’administration propose
d'adapter les Statuts à la Loi suisse sur les titres intermédiés, qui est entrée en vigueur le 1er janvier 2010. Selon le tex-
te proposé, les actionnaires ne pourront plus exiger que la Société délivre des certificats d'actions, mais la Société
conservera le droit d'émettre de tels certificats. Les détenteurs d'actions nominatives pourront à tout moment exiger
que la Société imprime et délivre une attestation concernant les titres qu'ils détiennent. Cette proposition correspond à
une pratique courante des sociétés cotées suisses et traduit le fait que, après l'entrée en vigueur de la Loi suisse sur les
titres intermédiés, les certificats ne présentent plus d'avantages juridiques par rapport aux droits-valeurs non incorpo-
rés dans des titres. Ces modifications ne restreindront pas le transfert des actions Logitech.

Le Conseil d’administration propose aux actionnaires d’approuver les modifications suivantes aux Statuts:

Version actuelle

Article 4
Les actions sont nominatives. Elles sont numérotées et
portent les signatures en fac-similé de deux administra-
teurs.

Version proposée

Article 4
Les actions sont nominatives.

L'assemblée générale a la faculté de convertir les actions
nominatives en actions au porteur par le biais d'une mo-
dification des statuts.

La société peut émettre en lieu et place de titres unitaires
des certificats représentant les actions.

[supprimer]

La société peut renoncer à l'impression des actions nomi-
tatives et à la délivrance des titres. L'actionnaire peut
cependant exiger en tout temps et sans frais, que la so-

Conformément au paragraphe ci-dessous,
les actions
nominatives de la Société seront émises sous la forme de
droits-valeurs (au sens du Code des obligations) et de

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imprime

ciété
conseil
d’administration fixe dans un règlement les détails et les
prescriptions d'exécution.

et délivre

titres. Le

les

titres intermédiés (au sens de la Loi suisse sur les titres
intermédiés).
Un actionnaire inscrit au registre des actions de la socié-
té peut exiger en tout temps de la Société qu'elle éta-
blisse une attestation des titres inscrits à son compte.
Les actionnaires n'ont pas droit à l'impression ou à la
délivrance de certificats d'actions. La société peut ce-
pendant imprimer et délivrer des certificats en tout temps
à son gré. La société peut également à son gré retirer des
droits-valeurs du système de dépôt auprès duquel ils
auront été enregistrés et, avec l’accord de l’actionnaire,
annuler les certificats émis qui auront été retournés à la
société.

S
A
Ç
N
A
R
F

Majorité requise

L'approbation de cette proposition requiert la majorité des voix exprimées par les personnes présentes ou

représentées à l'Assemblée générale ordinaire.

Recommandation du Conseil

Le Conseil d’administration recommande de voter en faveur de la modification de l'article 4 des Statuts de

Logitech International S.A. afin de mettre en œuvre la Loi suisse sur les titres intermédiés.

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Point 5

Décharge des membres du Conseil d’administration et de la Direction
pour leur activité durant l'exercice 2010

Proposition

Le Conseil d’administration propose aux actionnaires de donner décharge aux membres du Conseil

d’administration et de la Direction pour leur activité durant l'exercice 2010.

Explication

Comme il est usuel pour des sociétés suisses et conformément à l'article 698, alinéa. 2, chiffre 5 du Code suisse des
obligations, les actionnaires sont invités à donner décharge aux membres du Conseil d’administration et de la Direction
pour leur activité pendant l'exercice 2010. Cette décharge exclut des actions en responsabilité de la part de la Société ou
d'actionnaires contre des membres du Conseil d’administration ou de la Direction pour leur activité pendant l'exercice
2010 portant sur des faits qui ont été portés à la connaissance des actionnaires. Toutefois, les actionnaires inscrits qui
n'ont pas voté en faveur de la décharge ne sont pas liés par le résultat du vote pendant une période de six mois suivant ce
dernier.

Majorité requise

L'approbation de ce point requiert la majorité des voix exprimées par les personnes présentes ou représentées à
l'Assemblée générale ordinaire, sans tenir compte des abstentions et sans tenir compte des voix des membres du
Conseil d’administration ou des membres de la Direction de Logitech ainsi que des voix représentées par Logitech.

Recommandation

Le Conseil d’administration recommande de voter en faveur de la proposition de donner décharge aux membres

du Conseil d’administration et de la Direction pour leur activité pendant l'exercice 2010.

Point 6

Elections au Conseil d’administration

Le Conseil d’administration est actuellement composé de dix membres. Chaque administrateur est élu pour une
période de trois ans, avec des échéances échelonnées dans le temps de façon à ce que tous les administrateurs ne
doivent pas être élus au même moment. Il s'agit là d'une pratique recommandée par le Code suisse de bonnes pratiques
en matière de gouvernance d'entreprise pour favoriser la continuité au sein du Conseil.

Sur recommandation du Comité de nomination, le Conseil propose d'élire les cinq personnes mentionnées ci-
dessous en qualité d'administrateur pour une période de trois ans commençant lors de l'Assemblée générale ordinaire
du 8 septembre 2010. Quatre de ces personnes sont actuellement membres du Conseil d’administration. Leur mandat
viendra à échéance le jour de l'Assemblée générale ordinaire, soit le 8 septembre 2010.

Un vote séparé sera tenu pour chaque candidat.

Si l'un des candidats au poste d'administrateur n'est pas en mesure ou ne souhaite plus faire acte de candidature
au moment de l'Assemblée générale ordinaire, les actionnaires qui participent à l'Assemblée ou qui y sont représentés
par le Représentant Indépendant ou par un tiers pourront voter : (1) pour un candidat de remplacement proposé par le
Conseil actuel ou (2) pour un autre candidat de remplacement. Selon le droit suisse, les membres du Conseil ne
peuvent être élus que par les actionnaires. En l'absence d'autres candidats et si les personnes mentionnées ci-dessous
sont élues, le Conseil sera formé de dix membres. Le Conseil n'a pas de raison de penser que l'un ou l'autre des
candidats ne souhaitera pas ou ne sera pas en mesure d'assumer son rôle d'administrateur s'il est élu.

Pour davantage d'informations sur le Conseil d’administration, en particulier ses membres actuels, ses comités, et la
façon dont le Conseil supervise les activités de la direction générale de Logitech, nous vous prions de vous référer à la
section "Informations concernant le Conseil d’administration et rapport de rémunération" ci-dessous.

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6.1 Re-élection de Daniel Borel

Proposition: Le Conseil d’administration propose de re-élire Daniel Borel au Conseil d’administration pour une

nouvelle période de trois ans.

M. Daniel Borel, l'un des fondateurs de la société, a été le président du Conseil d’administration depuis mai
1988. De juillet 1992 à février 1998, M. Borel a également assumé la fonction de Chief Executive Officer. Il a assumé
diverses autres fonctions auprès de la société et de ses prédécesseurs depuis sa fondation. M. Borel est titulaire d'un
M.S. Degree in Computer Sciences de l'Université de Stanford et d'une licence en physique de l'Ecole Polytechnique
Fédérale de Lausanne. M. Borel est administrateur de Nestlé S.A. M. Borel siège également au Conseil de fondation
de la Fondation Defitech, une fondation suisse dont le but est de contribuer à la recherche et au développement de
produits technologiques destinés à venir en aide aux personnes handicapées. Il est également le président du Conseil
de SwissUp, une fondation suisse destinée à promouvoir l'éducation, et président d'EPFL Plus, une fondation suisse
qui récolte et gère des fonds au profit de l’Ecole Polytechnique Fédérale de Lausanne. M. Borel est de nationalité
suisse.

S
A
Ç
N
A
R
F

En tant que co-fondateur de Logitech, ancien président et CEO, M. Borel a une connaissance profonde et une
passion pour Logitech, ses employés et ses produits, mais aussi des qualités de dirigeant et une expérience globale de
l'industrie. En tant que membre du Conseil d’administration de Nestlé, M. Borel amène une expérience complète à la
Société.

6.2 Re-élection de Sally Davis

Proposition: Le Conseil d’administration propose de re-élire Sally Davis au Conseil d’administration pour une

nouvelle période de trois ans.

Mme Sally Davis est Chief Executive de BT Wholesale, poste qu'elle occupe depuis 2007. Elle a été le Chief
Portfolio Officer de British Telecom de 2005 à 2007. Depuis qu'elle a rejoint BT en 1999, elle a occupé plusieurs
postes de direction au sein de la société, y compris celui de President, Global Products, Global Services de 2002 à
2005, President, BT Ignite Applications Hosting de 2001 à 2002, et Director, Groupe Internet et Multimedia de 1999 à
2001. Avant de rejoindre BT, Mme Davis a occupé des postes dirigeants dans plusieurs sociétés de communication
importantes, dont notamment Bell Atlantic aux Etats-Unis et Mercury Communications au Royaume-Uni. Mme Davis
est également membre du Conseil d’administration et présidente de l'Audit Committee de Henderson Smaller
Companies Investment Trust plc, un investment trust géré au Royaume-Uni, et membre du Conseil d’administration de
I.Net S.p.A, un fournisseur d'applications d'infrastructure basé en Italie et membre du groupe BT. Elle est titulaire d'un
Bachelor of Arts de l'University College de Londres. Elle est citoyenne britannique.

Grâce à son expérience en tant que CEO d'une importante société de télécommunications européenne et à ses
connaissances étendues dans le domaine de la stratégie de produits technologiques et de la gestion de portefeuille,
Mme Davis apporte au Conseil ses qualités de dirigeante ainsi qu'une expertise dans le domaine des technologies, de
la stratégie des produits et de gestion financière.

Mme Davis est membre de l'Audit Committee du Conseil d’administration de Logitech et du Nomination

Committee du Conseil. Le Conseil d’administration la considère comme étant une administratrice indépendante.

6.3 Re-élection de Guerrino De Luca

Proposition: Le Conseil d’administration propose de re-élire Guerrino De Luca au Conseil d’administration

pour une nouvelle période de trois ans.

Guerrino De Luca assume la fonction de Président du Conseil de Logitech depuis janvier 2008. Auparavant,
M. De Luca a été Président et CEO de février 1998, moment où il a rejoint la Société, à janvier 2008. Il est membre du
Conseil d’administration depuis 1998. Avant de rejoindre Logitech, M. De Luca a assumé la fonction d'Executive
Vice President du Worldwide Marketing d'Apple Computer Inc. de février 1997 à septembre 1997, et celle de
President de Claris Corporation, un distributeur de programmes pour ordinateurs personnels, de février 1995 à février
1997. Auparavant, M. de Luca a assumé diverses fonctions pour Apple aux Etats-Unis et en Europe. M. De Luca est

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titulaire d'un B.S. degree en Electronic Engineering de l'Université de Rome, en Italie. M. De Luca est de nationalité
italienne.

En tant que Président et ancien CEO de Logitech, M. De Luca apporte au Conseil ses qualités de dirigeant, son
expérience dans le domaine de l'industrie, la stratégie et le marketing. Comme M. Borel, il a une profonde passion et
un engagement important pour Logitech, ses employés et ses produits.

Outre sa fonction de Président du Conseil d’administration, M. De Luca est Président du Comité de nomination

et du Comité de rémunération de membres du Conseil.

6.4 Election de Neil Hunt

Proposition: Le Conseil d’administration propose d'élire Neil Hunt au Conseil d’administration pour une

période de trois ans.

Neil Hunt est le Chief Product Officer de Netflix, Inc., une société basée en Californie qui est le plus grand
fournisseur de services de streaming de films et de télévision par internet et d'envoi de DVD par courrier. Il a rejoint
Netflix en 1999. Il y a assumé la fonction de Vice Président, Internet Engineering dès 1999, jusqu'à occuper son poste
actuel dès 2002. De 1997 à 1999, M. Hunt était Director of Engineering de Rational Software, un fabricant d'outils de
développement de logiciels basé en Californie. Il a occupé des postes d'ingénieur dans d'autres sociétés de 1991 à
1997. M. Hunt a un Doctorat en informatique de l'Université d’Aberdeen, au Royaume-Uni, et un Bachelors degree de
l'Université de Durham, au Royaume-Uni. Il a 48 ans et est citoyen britannique et américain.

De par son expérience importante dans le domaine des technologies, de la direction et du développement des
produits, de la stratégie, ainsi que par l'expérience acquise au sein d'une importante société de distribution digitale,
M. Hunt apporte au Conseil ses qualités de dirigeant ainsi qu'une expertise dans le domaine des technologies et de la
stratégie des produits.

Le Conseil d’administration a déterminé que M. Hunt serait un administrateur indépendant s'il était élu.

6.5 Re-élection de Monika Ribar

Proposition: Le Conseil d’administration propose de re-élire Mme Monika Ribar au Conseil d’administration

pour une nouvelle période de trois ans.

Monika Ribar est la Présidente et CEO du groupe Panalpina, une société suisse de transports et de services
logistiques. Elle a fait partie de la direction de Panalpina depuis février 2000, a assumé la fonction de Chief Financial
Officer de Panalpina de juin 2005 à octobre 2006, et de Chief Information Officer de février 2000 à juin 2005. De juin
1995 à février 2000, Mme Ribar a assumé le rôle de Corporate Controller de Panalpina. De 1991 à 1995, elle a
collaboré à plusieurs projets pour cette société. Avant de rejoindre Panalpina, Mme Ribar était responsable de la
planification stratégique du groupe Fides (aujourd'hui KPMG suisse), une société de révision, et a été employée par le
groupe BASF. Mme Ribar est titulaire d'une licence en sciences économiques et de gestion (lic. oec.) de l'Université
de St Gall, en Suisse. Elle est de nationalité suisse.

Mme Ribar a une expérience importante dans les domaines financier, stratégique et opérationnel. Elle apporte au
Conseil ses qualités de dirigeante ainsi que son expérience dans les domaines de la logistique industrielle et de la
finance. En tant qu'ancienne membre du conseil d'une société cotée, Mme Ribar amène une expérience complète au
Conseil.

Mme Ribar est actuellement Présidente du Comité d'Audit du Conseil d’administration.

Le Conseil

d’administration la considère comme étant une administratrice indépendante.

Majorité requise

L'approbation de ce point requiert la majorité des voix exprimées par les personnes présentes ou représentées à

l'Assemblée générale ordinaire, sans tenir compte des abstentions.

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Recommandation

Le Conseil d’administration recommande de voter en faveur de l'élection au Conseil de chacun des candidats

mentionnés ci-dessus.

Re-élection de PricewaterhouseCoopers S.A. en qualité d'organe de révision

Point 7

S
A
Ç
N
A
R
F

Proposition

Le Conseil d’administration propose de re-élire PricewaterhouseCoopers S.A. en qualité d'organe de révision de

Logitech International S.A. pour une période d'une année.

Explication

PricewaterhouseCoopers S.A., sur recommandation du Comité d'audit du Conseil, est proposé pour re-élection
pour une nouvelle période d'une année en qualité d'organe de révision de Logitech International S.A.
PricewaterhouseCoopers S.A. a effectué son premier mandat de révision pour Logitech en 1988. Des informations sur
les honoraires que Logitech a payés à PricewaterhouseCoopers S.A., ainsi que d'autres informations concernant
PricewaterhouseCoopers S.A., figurent sous la rubrique “Independent Public Accountants” et “Report of the Audit
Committee” de la version anglaise de cette Invitation et Document d'Information.

Un membre de PricewaterhouseCoopers S.A. sera présent lors de l'Assemblée générale ordinaire. Il pourra y faire

une déclaration et répondre à vos questions.

Majorité requise

L'approbation de ce point requiert la majorité des voix exprimées par les personnes présentes ou représentées à

l'Assemblée Générale ordinaire, sans tenir compte des abstentions.

Recommandation

Le Conseil d’administration recommande de voter en faveur de la re-élection de PricewaterhouseCoopers S.A.

en qualité d'organe de révision de Logitech International S.A. pour l'exercice se terminant le 31 mars 2011.

INFORMATIONS CONCERNANT LE CONSEIL D’ADMINISTRATION ET LE RAPPORT L DE
REMUNERATION

Vous êtes invités à vous référer à la version anglaise de cette Invitation et Document d'Information pour
davantage d'informations sur notre Conseil d’administration et consulter notre rapport de rémunération pour 2010. La
version anglaise de cette Invitation et Document d'Information fait fois en cas de divergence avec les autres versions.

*****

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27. Juli 2010

An unsere Aktionärinnen und Aktionäre:

Sie sind herzlich eingeladen, an der ordentlichen Generalversammlung 2010 der Logitech International S.A.
teilzunehmen. Die Versammlung findet am Mittwoch, 8. September 2010 um 14:30 Uhr im Palais de Beaulieu, Saal
Rom, in Lausanne, Schweiz, statt.

Beiliegend finden Sie die Einladung und das Informationsmaterial für die Versammlung, einschliesslich der
Traktandenliste und der Erläuterung der zur Abstimmung kommenden Vorlagen sowie, die notwendigen
Informationen zur Ausübung des Stimmrechts, den Bericht über die Entschädigung der Mitglieder des
Verwaltungsrates und der Geschäftsleitung sowie weitere wichtige Informationen.

Ob Sie an der Generalversammlung teilnehmen oder nicht, Ihre Stimme ist wichtig.

Herzlichen Dank für Ihre anhaltende Unterstützung der Logitech International S.A.

GUERRINO DE LUCA
Präsident des Verwaltungsrates

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H
C
S
T
U
E
D

LOGITECH INTERNATIONAL S.A.

Einladung zur ordentlichen Generalversammlung
Mittwoch, 8. September 2010
14:30 Uhr (Türöffnung um 13:30 Uhr)
Palais de Beaulieu – Lausanne, Schweiz

*****

TRAKTANDENLISTE

A. Berichte

Geschäftsbericht für das am 31. März 2010 zu Ende gegangene Geschäftsjahr

B. Anträge

Genehmigung des
Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2010

Jahresberichtes, des Entschädigungsberichtes, der Konzernrechnung und der

Konsultative Abstimmung über die Entschädigungsphilosophie, -politik und -praktiken

Vortrag des Bilanzgewinns des Geschäftsjahres 2010 ohne Ausschüttung einer Dividende

Änderung der Statuten zur Anpassung an das schweizerische Bucheffektengesetz

Entlastung des Verwaltungsrates und der Geschäftsleitung für das Geschäftsjahr 2010

6. Wahlen in den Verwaltungsrat

6.1. Wiederwahl von Herrn Daniel Borel

6.2. Wiederwahl von Frau Sally Davis

6.3. Wiederwahl von Herrn Guerrino De Luca

6.4. Wahl von Herrn Neil Hunt

6.5. Wiederwahl von Frau Monika Ribar

7. Wiederwahl von PricewaterhouseCoopers AG als Revisionsstelle

Apples, Schweiz, 27. Juli 2010

Der Verwaltungsrat

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FRAGEN UND ANTWORTEN BETREFFEND DIE ORDENTLICHE GENERALVERSAMMLUNG 2010
DER LOGITECH INTERNATIONAL S.A. ("LOGITECH")

ALLGEMEINE INFORMATION AN ALLE AKTIONÄRINNEN UND AKTIONÄRE

Warum erhalte ich diese Einladung und Information?

Dieses Dokument soll sowohl dem schweizerischen Gesellschaftsrecht als auch den proxy statement rules der
Vereinigten Staaten von Amerika genügen. Ausserhalb der Vereinigten Staaten von Amerika und Kanadas wird diese
Einladung mit Informationsmaterial (die "Einladung") den eingetragenen Aktionären zugestellt, wobei Teile in
französischer und deutscher Übersetzung abgegeben werden. Der englische Text dieser Einladung ist die massgebliche
Version. Die Einladung steht den Aktionären ab dem 27. Juli 2010 zur Verfügung.

Wer ist an der Versammlung stimmberechtigt?

Aktionäre, die im Aktienregister der Logitech (einschliesslich dem Unterregister bei "The Bank of New York
Mellon Corporation", Logitechs amerikanischer Vermittlungsstelle) am Donnerstag, 2. September 2010, eingetragen
sind, geniessen das Stimmrecht. Zwischen dem 3. September 2010 und dem auf die Versammlung folgenden Tag werden
keine Aktionäre ins Aktienregister eingetragen. Am 30. Juni 2010 waren 86’137’698 Aktien als stimmberechtigt
eingetragen, bei 175’691’987 an diesem Tag ausstehenden Logitech Aktien. Die Anzahl an der Generalversammlung
effektiv stimmberechtigter Aktien wird davon abhängen, wie viele zusätzliche Aktien zwischen dem 30. Juni 2010 und
dem 2. September 2010 im Aktienregister ein- oder ausgetragen werden.

Für Information über das Stimmrecht von amerikanischen oder kanadischen Aktionären, derer Aktien unter
nominees eingetragen sind, siehe nachstehend unter "Zusätzliche Informationen für amerikanische und kanadische
Aktionäre, deren Aktien unter nominees eingetragen sind".

Wer ist ein eingetragener Aktionär?

Wenn Ihre Aktien in Ihrem Namen in unserem Aktienregister oder im Unterregister, das von "The Bank of New
York Mellon Corporation", unserer amerikanischen Vermittlungsstelle geführt wird, eingetragen sind, sind Sie ein
eingetragener Aktionär und diese Einladung wird Ihnen von Logitech direkt zugesandt.

Wer ist ein wirtschaftlich Berechtigter mit Aktien, die unter einem nominee eingetragen sind?

Aktionäre, die keine direkte Eintragung in unserem Aktienregister begehrt haben und ihre Aktien durch einen
Wertschriftenhändler, trustee, nominee oder eine ähnliche Gesellschaft halten, die als Aktionär eingetragen ist, sind
wirtschaflich Berechtigte an den Aktien, die im Namen des nominee eingetragen sind. Wenn Sie Logitech Aktien über
einen amerikanischen oder kanadischen Wertschriftenhändler, trustee, nominee oder eine ähnliche Gesellschaft halten,
was der typischen Praxis in diesen Ländern entspricht, so wird die eingetragene Gesellschaft als stimmberechtiger
Aktionär betrachtet und diese Einladung wird Ihnen von diesen nominees zugesandt. Sie sind berechtigt, dem nominee
Anweisungen zu erteilen, wie für die auf Ihrem Konto stehenden Aktien zu stimmen ist.

Warum ist es für mich wichtig an den Abstimmungen teilzunehmen?

Logitech ist eine börsenkotierte Gesellschaft und die wichtigsten Entscheide können nur von den Aktionären
getroffen werden. Ihre Stimme ist wichtig, ob Sie an der Versammlung teilnehmen wollen oder nicht. Wir bitten Sie
deshalb, Ihre Aktien allenfalls vertreten zu lassen.

Wieviel eingetragene Aktien müssen vertreten sein, um die Rechtsgültigkeit der Versammlung sicherzustellen?

Für die Generalversammlung gibt es kein Quorum. Unter

schweizerischem Recht gibt es keine

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Mindestvertretungsvorschriften an Generalversammlungen und unsere Statuten enthalten keine Bestimmung, die ein
solches Quorum vorsieht.

Wo sind die wichtigsten Verwaltungssitze der Logitech?

Logitechs schweizerischer Verwaltungssitz ist in 1110 Morges, Rue du Sablon 2-4, und unser Verwaltungssitz in
den Vereinigten Staaten von Amerika ist in Fremont, California 94555, 6505 Kaiser Drive. Logitechs Telefonnummer
in der Schweiz ist +41-(0)21-863-5111 und unsere Telefonnummer in den Vereinigten Staaten von Amerika ist +510-
795-8500.

Wie kann ich Logitechs Jahresbericht und die weiteren jährlichen Berichte erhalten?

Unser Jahresbericht 2010 zuhanden der Aktionäre, die Einladung und unser Jahresbericht auf Formular 10-K für
das Geschäftsjahr 2010, wie es bei der Securities and Exchange Commission der Vereinigten Staaten von Amerika
hinterlegt wurde, können auf unserer Webseite unter http://ir.logitech.com eingesehen werden. Aktionäre können auch
kostenlose Kopien dieser Dokumente an unseren Verwaltungssitzen in der Schweiz und den Vereinigten Staaten von
Amerika an obgenannten Adressen bestellen.

Wo kann ich die Abstimmungsresultate finden?

Wir beabsichtigen, die Abstimmungsresultate an der Versammlung selbst bekannt zu geben und wir werden nach
der Versammlung umgehend eine Pressemitteilung veröffentlichen. Wir werden zudem die Abstimmungsresultate auf
einem Current Report Formular 8-K am Dienstag, 14. September 2010, an die Securities and Exchange Commission
der Vereinigten Staaten von Amerika übermitteln. Eine Kopie des Formulars 8-K wird auf unserer Website unter
http://ir.logitech.com einsehbar sein.

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Wenn ich nicht ein eingetragener Aktionär bin, darf ich an der Generalversammlung teilnehmen und
stimmen?

Sie dürfen nur an der Generalversammlung teilnehmen und Ihr Stimmrecht ausüben, wenn Sie bis zum
2. September 2010 im Aktienregister eingetragen werden oder wenn Sie eine Vollmacht von Ihrem Effektenhändler,
trustee oder nominee erhalten, der Ihre Aktien hält. Wenn Sie Ihre Aktien über einen nicht amerikanischen oder nicht
kanadischen Effektenhändler, trustee oder nominee halten, können Sie ins Aktienregister eingetragen werden. In
diesem Fall nehmen Sie bitte mit unserem Aktienregisterführer an unserem Verwaltungssitz in der Schweiz, an obiger
Adresse, Kontakt auf und folgen Sie den erhaltenen Eintragungsinstruktionen. In gewissen Ländern kann die
Eintragung über die Bank oder den Effektenhändler begehrt werden, über die Sie Ihre Aktien halten. Wenn Sie Ihre
Aktien über einen amerikanischen oder kanadischen Effektenhändler, trustee oder nominee halten, können Sie diesen
kontaktieren und eingetragen werden. Bitte folgen Sie den entsprechenden Instruktionen, die Sie bei dieser
Gelegenheit erhalten.

WEITERE INFORMATION FÜR EINGETRAGENE AKTIONÄRINNEN UND AKTIONÄRE

Wie kann ich abstimmen, wenn ich nicht an der Generalversammlung teilnehmen möchte?

Wenn Sie nicht an der Generalversammlung teilnehmen wollen, können Sie unter Option 3 auf der beiliegenden
Antwortkarte entweder Logitech oder den unabhängigen Stimmrechtsvertreter, Frau Beatrice Ehlers, bevollmächtigen,
Sie an der Versammlung zu vertreten. Bitte fügen Sie auf der Antwortkarte Ihre Stimminstruktionen bei und datieren
und unterzeichnen Sie die Karte. Bitte senden Sie die ausgefüllte Antwortkarte im beiliegenden, entsprechend
adressierten Umschlag zurück. Wenn Sie die Antwortkarte unterzeichnen, ohne für gewisse oder alle Traktanden
Stimminstruktionen zu erteilen, wird Ihr Stimmrecht im Sinne der Anträge des Verwaltungsrates ausgeübt. Für weitere
Informationen verweisen wir Sie auf die Antwortkarte.

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Wie kann ich an der Generalversammlung teilnehmen?

Wünschen Sie an der Generalversammlung teilzunehmen, wählen Sie Option 1 auf der Antwortkarte, die Sie
anschliessend im beiliegenden Umschlag vor dem 27. August 2010 an Logitech zurück senden. Wir werden Ihnen eine
Zutrittskarte zukommen lassen. Sollten Sie die Zutrittskarte vor der Generalversammlung nicht erhalten, können Sie
dennoch an der Versammlung teilnehmen, sofern Sie am 2. September 2010 im Aktienregister eingetragen sind und
sich am Versammlungsort ausweisen können.

Kann ich mich an der Versammlung durch eine andere Person vertreten lassen?

Ja. Wenn Sie sich nicht durch Logitech oder den unabhängigen Stimmrechtsvertreter vertreten lassen möchten,
so wählen Sie bitte Option 2 auf der Antwortkarte und geben Sie Namen und Adresse Ihres Vertreters an. Bitte senden
Sie die ausgefüllte und unterzeichnete Antwortkarte vor dem 27. August 2010 mittels beiliegendem Briefumschlag an
Logitech zurück. Wir werden Ihrem Vertreter eine Zutrittskarte zukommen lassen. Wenn Name und Adresse des
Vertreters nicht klar sind, wird Logitech die Zutrittskarte Ihnen senden und Sie müssen Sie Ihrem Vertreter
weiterleiten.

Kann ich meine Aktien vor der Versammlung verkaufen, wenn ich bereits Stimminstruktionen erteilt habe?

Logitech verhindert die Übertragung von Aktien vor der Generalversammlung nicht. Wenn Sie aber Ihre Aktien
vor der Generalversammlung verkaufen und das Aktienregister von der Übertragung benachrichtigt wird, werden Ihre
Stimminstruktionen nicht befolgt. Wer Aktien nach der Schliessung des Registers am Donnerstag, 2. September 2010
erwirbt, wird frühestens an dem auf die Versammlung folgenden Tag eingetragen und kann deshalb nicht an der
Generalversammlung teilnehmen.

Wenn ich mit der Antwortkarte Stimminstruktionen gegeben habe, kann ich diese noch ändern?

Sie können Ihre Stimminstruktionen jederzeit vor der Abstimmung an der Generalversammlung ändern. Sie
können bei uns eine neue Antwortkarte bestellen und Ihre Instruktionen widerrufen. Diesfalls werden wir Ihre frühere
Antwortkarte annullieren. Wenn Sie erneut Instruktionen geben möchten, füllen Sie bitte die neue Antwortkarte aus
und senden Sie diese uns zurück. Sie können auch an der Generalversammlung teilnehmen und persönlich abstimmen.
Allerdings wird durch Ihre persönliche Teilnahme Ihre Antwortkarte nicht automatisch widerrufen, es sei denn Sie
üben Ihr Stimmrecht an der Versammlung aus oder verlangen ausdrücklich schriftlich, dass Ihre vorhergehende
Antwortkarte annulliert werden soll.

Was geschieht, wenn ich die Antwortkarte ausfülle und keine spezifischen Stimminstruktionen gebe?

Wenn Sie ein eingetragener Aktionär sind und uns eine Antwortkarte ohne spezifische Instruktionen zu einem
Teil oder zu allen Traktanden zurücksenden, werden Ihre Stimmrechte im Sinne der Anträge des Verwaltungsrates
ausgeübt. Wenn Sie offene Instruktionen erteilen und zusätzliche Traktanden rechtmässig zur Abstimmung gebracht
werden, werden Ihre Stimmrechte im Sinne der Anträge des Verwaltungsrates ausgeübt.

Wenn Ihre Aktien an der Versammlung durch ein dem Bundesgesetz über die Banken und Sparkassen
unterstehendes Institut oder durch einen professionellen Vermögensverwalter, der schweizerischem Recht untersteht,
ausgeübt werden, sind diese zur Stimmabgabe im Sinne der Anträge des Verwaltungsrates verpflichtet, wenn Sie keine
spezifischen Instruktionen erteilen.

An wen kann ich mich wenden, wenn ich Fragen habe?

Sollten Sie Fragen haben oder Hilfe im Zusammenhang mit der Stimmabgabe benötigen, rufen Sie uns bitte an

unter der Telefonnummer +1-510-713-4220 oder senden Sie uns ein Email an investorrelations@logitech.com.

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ZUSÄTZLICHE INFORMATIONEN FÜR AMERIKANISCHE ODER KANADISCHE WIRTSCHAFTLICH
BERECHTIGTE AKTIONÄRE, DEREN TITEL UNTER NOMINEES EINGETRAGEN SIND

Warum erhielt ich eine Informationsnotiz mit der Post betreffend die Verfügbarkeit des Stimmmaterials über
Internet und nicht das Stimmmaterial selbst?

Wir haben sichergestellt, dass das Stimmmaterial den wirtschaftlich berechtigten Aktionären, deren Titel unter
amerikanischen oder kanadischen Effektenhändlern, trustees oder nominees eingetragen sind, über das Internet zur
Verfügung steht. Aus diesem Grunde senden diese Effektenhändler, trustees oder nominees eine Information über die
Verfügbarkeit des Stimmmaterials an die wirtschaftlich berechtigten Aktionäre. Alle diese Aktionäre können das
Stimmmaterial auf einer Webseite abrufen, die in der genannten Information enthalten ist, oder das Stimmmaterial in
gedruckter Form anfordern. Die Information enthält Angaben, wie das Stimmmaterial über das Internet erhältlich ist
und bei wem gedruckte Exemplare bestellt werden können. Zusätzlich können die wirtschaftlich berechtigten
Aktionäre, deren Aktien im Namen von amerikanischen oder kanadischen Effektenhändlern, trustees oder nominees
eingetragen sind, anfordern das Stimmmaterial laufend in gedruckter Form oder elektronisch per Email zu erhalten.

Wie bekomme ich elektronisch Zugang zum Stimmmaterial?

Die obenerwähnte Informationsnotiz erläutert,

wie Sie Ihr Stimmmaterial auf dem Internet finden und

wie Sie uns Anweisung erteilen können, wohin zukünftiges Stimmmaterial per Email gesandt werden soll.

Wenn Sie die Wahl treffen, das zukünftige Stimmmaterial per Email zu erhalten, ersparen Sie uns Druck- und
Versandkosten und Sie vermindern die Auswirkungen unserer Generalversammlung auf die Umwelt. Wenn Sie die
Wahl treffen, zukünftiges Stimmmaterial per Email zu erhalten, werden Sie nächstes Jahr ein Email erhalten, das Sie
auf die entsprechende Webseite führt, die das Material sowie einen Link für Stimminstruktionen enthält. Ihre
Anweisung, das Stimmmaterial per Email zu erhalten, bleibt bis zum Ihrem Widerruf in Kraft.

Wer darf Stimminstruktionen für die Generalversammlung erteilen?

Juli 2010 halten, können ihrem Effektenhändler,

Wirtschaftlich berechtigte Aktionäre, die ihre Titel über amerikanische oder kanadische Effektenhändler,
trustees oder nominees am 16.
trustee oder nominee
Stimminstruktionen erteilen. Zusätzlich hat Logitech mit Hilfe einer Dienstleistungsgesellschaft sichergestellt, dass
eine zusätziche Abgleichung der Aktienpositionen amerikanischer und kanadischer nominees zwischen dem 16. Juli
und dem 25. August 2010 durchgeführt wird. Der 25. August 2010 ist für Logitech das letztmögliche Datum zur
Durchführung einer solchen Abgleichung. Dies sollte zu folgenden Korrekturen führen: wenn ein amerikanischer oder
kanadischer Halter, der am 16. Juli 2010 wirtschaftlich berechtigter Aktionär ist, seine Stimme abgibt aber
nachträglich seine Titel vor dem 25. August 2010 verkauft, werden die Stimminstruktionen annulliert. Wenn ein
amerikanischer oder kanadischer Halter, der am 16. Juli 2010 wirtschaftlich berechtigter Aktionäre ist, seine Stimme
abgibt und wirtschaftlich berechtigter Aktionär bleibt, aber
in der entsprechenden Periode einen Teil seiner Titel
verkauft oder weitere Titel zugekauft, so findet eine entsprechende Reduktion oder Erhöhung der Stimmen statt, wie
sie sich am 25. August 2010 widerspiegeln.

Wenn Sie nach dem 16. Juli 2010 über einen amerikanischen oder kanadischen Effektenhändler, trustee oder
nominee Aktien erwerben und diese an der Generalversammlung vertreten wollen oder wenn Sie Stimminstruktionen
an einen Bevollmächtigten geben möchten, müssen Sie direkt
ins Aktienregister eingetragen werden. Dazu
kontaktieren Sie Ihren Effektenhändler, trustee oder nominee und folgen seinen Instruktionen. Beginnen Sie diesen
Prozess möglichst lange vor dem 2. September 2010, um sicherzustellen, dass das Stimmmaterial zugesandt werden
kann und die Stimminstruktionen rechtzeitig bei uns ankommen.

Wenn ich amerikanischer oder kanadischer wirtschaftlich berechtigter Aktionär bin, wie kann ich mein
Stimmrecht ausüben?

Wenn Sie in dieser Situation persönlich an der Generalversammlung teilnehmen möchten, müssen Sie vom

eingetragenen nominee eine Vollmacht erhalten.

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Wenn Sie nicht persönlich an der Generalversammlung teilnehmen möchten, können Sie sich vertreten lassen.
Sie können Ihre Instruktionen über das Internet, per Post oder per Telefon weitergeben, wie dies in der
Informationsnotiz angegeben ist.

Was geschieht wenn ich keine spezifischen Stimminstruktionen erteile?

Wenn Sie wirtschaftlich berechtigter Aktionär in den Vereinigten Staaten von Amerika oder in Kanada sind und
Ihre Aktien über einen Effektenhändler, trustee oder nominee halten, dem Sie keine spezifischen Stimminstruktionen
erteilen, wird dieser gemäss den Regeln verschiedener nationaler oder
regionaler Börsen in blossen
Routineangelegenheiten abstimmen, nicht aber in anderen Fragen. Wenn Sie über solche anderen Fragen keine
Instruktionen erteilen, wird Ihr nominee sich nicht an der Abstimmung über diese Punkte beteiligen und seine
Stimmen gelten als nicht abgegeben. Wir ermutigen Sie, Stimminstruktionen zu erteilen, gemäss den Anleitungen in
der Informationsnotiz. Wir gehen davon aus, dass folgende Anträge nicht als Routineangelegenheit betrachtet werden:
Antrag 2 (Konsultative Abstimmung über die Entschädigungsphilosophie, -politik und -praktiken), Antrag 3 (Vortrag
des Bilanzgewinns des Geschäftsjahres 2010 ohne Ausschüttung einer Dividende), Antrag 4 (Änderung der Statuten
zur Anpassung an das schweizerische Bucheffektengesetz), und Antrag 6 (Wahlen in den Verwaltungsrat). Alle
anderen Anträge erachten wir als Routine. Sämtliche Stimmenthaltungen durch nominees werden als nicht abgegebene
Stimmen gezählt.

Bis wann kann ich meine Stimminstruktionen einreichen?

Wenn Sie Ihre Aktien über ein amerikanisches oder kanadisches Institut halten, können Sie bis am 3. September

2010, 23.59 Uhr (U.S. Eastern Daylight Time) Stimminstruktionen erteilen.

Kann ich eine Instruktion ändern?

Sie können Ihre Vollmacht widerrufen und Ihre Instruktionen jederzeit bis zur Abstimmung an der

Generalversammlung ändern. Sie können Ihre Instruktionen auf folgende Weisen ändern:

- Über das Internet oder das Telefon (einzig die letzte Internet- oder Telefoninstruktion, welche vor der

Generalversammlung übermittelt wird, ist massgebend).

- Durch Einsendung einer neuen, vollständig ausgefüllten Stimmkarte, die ein späteres Datum trägt als die

vorhergehende.

- Durch persönliche Teilnahme an der Generalversammlung, wenn Sie von Ihrem nominee eine Vollmacht

erhalten.

Die Teilnahme an der Generalversammlung hebt die vorhergehenden Instruktionen nur auf, wenn Sie sich aktiv

an der Abstimmung beteiligen oder wenn Sie ausdrücklich Ihre Aufhebung verlangen.

WEITERE INFORMATIONEN FÜR AKTIONÄRE, DIE IHRE AKTIEN ÜBER EINE BANK ODER EINEN
EFFEKTENHÄNDLER HALTEN (AUSSERHALB DER VEREINIGTEN STAATEN VON AMERIKA
ODER KANADAS)

Wie kann ich an der Abstimmung teilnehmen, wenn meine Aktien über meine Bank oder meinen
Effektenhändler eingetragen sind?

Ihre Bank oder Ihr Effektenhändler sollte Ihnen Instruktionen erteilt haben, wie Sie Ihre Stimminstruktionen
abgeben können. Sollten Sie solche Instruktionen nicht erhalten haben, müssen Sie sich mit Ihrer Bank oder Ihrem
Effektenhändler in Verbindung setzen.

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Bis wann kann ich Stimminstruktionen erteilen, wenn meine Aktien über eine Bank oder einen
Effektenhändler eingetragen sind?

Üblicherweise setzen Banken und Effektenhändler Fristen für den Erhalt der Stimminstruktionen. Ausserhalb der
Vereinigten Staaten von Amerika und Kanadas wird diese Frist normalerweise zwei bis drei Tage vor dem Ablauf der
Frist der Gesellschaft, welche die Generalversammlung abhält, angesetzt. Dies erlaubt es den Instituten, die
Stimminstruktionen zu sammeln und der Gesellschaft weiterzugeben. Wenn Sie Ihre Logitech Aktien über eine Bank
oder einen Effektenhändler ausserhalb der Vereinigten Staaten von Amerika oder Kanadas halten, klären Sie bitte mit
Ihrer Bank oder Ihrem Effektenhändler die anwendbare Frist ab und erteilen Sie Ihre Stimminstruktionen zeitgerecht.

WEITERE INFORMATIONEN ÜBER DIE GENERALVERSAMMLUNG

Informationen für Depotvertreter

Dem Bundesgesetz über Banken und Sparkassen unterstellte Institute und professionelle Vermögensverwalter

müssen Logitech über die Anzahl und den Nennwert der vertretenen Aktien informieren.

Anträge

Der Verwaltungsrat beabsichtigt nicht, an der Generalversammlung andere Anträge zu stellen, noch hat er
Gründe vorauszusehen, dass Aktionäre zusätzliche Anträge stellen werden. Sollten andere Anträge rechtmässig
gestellt werden und Ihre Stimminstruktionen auf der Antwortkarte offen bleiben, wird mit Ihren Aktien im Sinne der
Anträge des Verwaltungsrates gestimmt.

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Gesuche zum Erhalt von Stimminstruktionen (Proxy Solicitation)

Wir werden die Kosten tragen, die mit der Einladung zur Abgabe von Stimminstruktionen verbunden sind. Wir
haben Georgeson Inc. beauftragt, Stimminstruktionen einzuholen für eine Gebühr von $15,000 zuzüglich
angemessener Spesen. Einzelne unserer Verwaltungsräte, Geschäftsleitungsmitglieder und andere Mitarbeiter dürfen
Sie auch anfragen, sei es schriftlich, per Telefon, Email oder auf sonstige Weise, ihnen Stimminstruktionen zu erteilen.
Sie werden dafür nicht entschädigt. Wir können im Weiteren Georgeson Inc. beauftragen, für uns per Telefon
Stimminstruktionen einzuholen, und dies für ein Entgelt von $5.00 pro Anruf zuzüglich angemessener Spesen. In den
Vereinigten Staaten von Amerika müssen wir den Effektenhändlern und nominees, die als Aktionäre eingetragen sind,
das Stimmmaterial zustellen und sie einladen, es den wirtschaftlich Berechtigten weiterzuleiten und wir müssen diese
Effektenhändler und nominees für ihre in diesem Zusammenhang entstehenden Umtriebe entschädigen. Es bestehen
dafür gesetzliche Spesenreglemente.

Auszählen der Stimmen

Vertreter von mindestens zwei Schweizer Banken werden an der Generalversammlung als Stimmenzähler
amtieren. Wie es in der Schweiz üblich ist, wird unser Aktienregisterführer die vor der Generalversammlung
abgegebenen Instruktionen ins elektronische System einspeisen.

Aktionärsanträge und nominees

Aktionärsanträge für die Generalversammlung 2010

Gemäss unseren Statuten haben ein oder mehrere Aktionäre, die zusammen ein Prozent unseres ausgegebenen
Aktienkapitals oder einen Nominalwert von einer Million Franken vertreten, das Recht, einen Verhandlungspunkt auf
in die
die Traktandenliste der Generalversammlung zu setzen. Solche Vorschläge sind vom Verwaltungsrat
Generalversammlungsdokumentation einzuschliessen. Ein solcher Antrag ist schriftlich zu stellen, muss schriftlich
erläutert werden und nicht später als sechzig Tage vor der Generalversammlung dem Verwaltungsrat eingereicht
werden. Diese Frist ist für die Generalversammlung vom 8. September 2010 am 9. Juli 2010 abgelaufen. Dennoch

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erlaubt das schweizerische Recht eingetragenen Aktionären oder ihren Bevollmächtigten, zu den Anträgen des
Verwaltungsrates an der Versammlung selbst oder vorgängig Gegenvorschläge zu machen.

Aktionärsanträge für die Generalversammlung 2011

Bis spätestens am 8. Juli 2011 kann ein eingetragener Aktionär, der die obgenannten Mindestzahlen von Aktien
hält, verlangen, dass ein Punkt für die Generalversammlung 2011 traktandiert wird. Ein solcher Antrag muss
schriftlich gestellt und erläutert werden.. Der Antrag ist beim Sekretär des Verwaltungsrates der Logitech am
Verwaltungssitz in der Schweiz oder in den Vereinigten Staaten von Amerika zeitgerecht einzureichen. Zusätzlich
können Sie, wenn Sie die Bedingungen der Regel 14a-8 des U.S. Securities Exchange Act von 1934 erfüllen, dem
Verwaltungsrat Vorschläge für die Generalversammlung 2011 einreichen. Solche Vorschläge sind bis zum 29. März
2011 schriftlich mit beiliegender Erläuterung des Vorschlages dem Sekretär des Verwaltungsrates an unseren
Verwaltungssitzen in der Schweiz oder in den Vereinigten Staaten von Amerika einzureichen. Der Vorschlag muss der
Regel 14a-8 des U.S. Securities Exchanges Act genügen. Diese Bestimmung zählt die Bedingungen auf, die für den
Einschluss eines Aktionärsvorschlags
in die Generalversammlungsdokumentation nach der amerikanischen
Wertschriftengesetzgebung erfüllt sein müssen. Nach den Statuten der Gesellschaft sind nur eingetragene Aktionäre
im Aktienregister eingetragen sind, können Sie demnach keine
als
Traktandumsvorschläge unterbreiten.

solche anerkannt. Wenn Sie nicht

Kandidaturen für den Verwaltungsrat

Vorschläge von Kandidaten durch eingetragene Aktionäre müssen den obgenannten Regeln genügen.

Statutenbestimmungen

Die obgenannten Statutenbestimmungen, nach denen ein oder mehrere Aktionäre, die zusammen ein Prozent des
ausstehenden Aktienkapitals oder einen Nominalwert von einer Million Franken vertreten, berechtigt sind, den
Einschluss eines Antrages in die Tagesordnung zu verlangen, können auf unserer Webseite unter http://ir.logitech.com
abgerufen werden. Sie können auch den Sekretär des Verwaltungsrates der Logitech an einem unserer
Verwaltungssitze in der Schweiz oder in den Vereinigten Staaten von Amerika kontaktieren und eine Kopie der
relevanten Bestimmungen der Statuten anfordern.

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TRAKTANDEN UND ERLÄUTERUNGEN

A. BERICHTE

Bericht über den Geschäftsverlauf im Geschäftsjahr bis 31. März 2010

Die Geschäftsleitung der Logitech wird an der Generalversammlung über den Geschäftsgang des abgelaufenen

Geschäftsjahres berichten.

B. ANTRÄGE

Antrag 1

Genehmigung des Jahresberichtes, des Entschädigungsberichtes, der Konzernrechnung und der Jahresrechnung
der Logitech International S.A. für das Geschäftsjahr 2010

Antrag

Der Verwaltungsrat beantragt die Genehmigung des Jahresberichtes, des Entschädigungsberichtes, der

Konzernrechnung und der Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2010.

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Erläuterungen

Die Konzernrechnung und die Jahresrechnung der Logitech Inernational S.A. sind im Geschäftsbericht
wiedergegeben, der allen eingetragenen Aktionären mit dieser Einladung zugestellt wurde. Der Geschäftsbericht
enthält ebenfalls die Berichte der Revisionsstelle und zusätzliche Informationen über den Geschäftsgang der
Gesellschaft, ihre Organisation und Strategie sowie den Bericht über die Corporate Governance gemäss der SIX
Swiss Exchange Richtlinie über Corporate Governance. Der Entschädigungsbericht ist in dieser Einladung enthalten.
Kopien des Geschäftsberichtes und der Einladung mit
sind auf dem Internet auf
http://ir.logitech.com abrufbar.

Informationsmaterial

Nach schweizerischem Recht ist der Geschäftsbericht einschliesslich Jahresrechnung und Konzernrechnung
schweizerischer Gesellschaften jährlich der Generalversammlung zur Genehmigung vorzulegen. Das Einschliessen
des Entschädigungsberichtes in die Genehmigung des Geschäftsberichtes ist eine vorgeschlagene best practice
Empfehlung, angeregt durch den „Swiss Code of Best Practice for Corporate Governance“ der "economiesuisse",
dem führenden Wirtschaftsverband der Schweiz. Sollte dieser Antrag von den Aktionären abgelehnt werden, wird der
Verwaltungsrat eine ausserordentliche Generalversammlung einberufen, um den Antrag erneut vorzubringen. Eine
im
Annahme dieses Antrags begründet keine Genehmigung oder Ablehnung der einzelnen im Jahresbericht,
Entschädigungsbericht, in der Konzernrechnung und der Jahresrechnung für das Geschäftsjahr 2010 aufgeführten
Punkte.

PricewaterhouseCoopers AG, die Revisionsstelle der Logitech, empfiehlt den Aktionären ohne Vorbehalt, die
Konzernrechnung und die Jahresrechnung 2010 zu genehmigen. PricewaterhouseCoopers AG ist der Ansicht, "dass die
Konzernrechnung für das am 31. März 2010 endende Geschäftsjahr die finanzielle Situation, die Ergebnisse der
Geschäftstätigkeit und die Geldflüsse ordnungsgemäss und in jeder Hinsicht vollständig wiedergibt und in Übereinstimmung
sowohl mit den Buchhaltungsprinzipien, die in den Vereinigten Staaten von Amerika (U.S. GAAP) allgemein anwendbar
sind, als auch in Übereinstimmung mit dem schweizerischen Recht steht". PricewaterhouseCoopers AG ist im Weiteren der
Ansicht und bestätigt, dass "die Jahresrechnung sowie die beantragte Gewinnverwendung im Einklang mit dem
schweizerischen Recht und den Statuten der Logitech International S.A. stehen".

Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,

entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt, wobei Enthaltungen nicht gezählt werden.

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Empfehlung

Der Verwaltungsrat beantragt der Generalversammlung, den Jahresbericht, den Entschädigungsbericht, die

Konzernrechnung und die Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2010 zu genehmigen.

Konsultative Abstimmung über die Entschädigungsphilosophie, -politik und -praktiken

Antrag 2

Antrag

Der Verwaltungsrat beantragt, dass die Aktionäre im Rahmen einer konsultativen Abstimmung die
Entschädigungsphilosophie, -politik und -praktiken der Logitech wie sie im Kapitel "Compensation Discussion and
Analysis" des Entschädigungsberichts 2010 erläutert werden, genehmigen.

Erläuterungen

Anlässlich der ordentlichen Generalversammlung 2009 von Logitech beantragte der Verwaltungsrat den
Aktionären die Entschädigungsphilosophie, -politik und -praktiken der Logitech zu genehmigen. Dies geschah vor
dem Hintergrund der sich zunehmend bewährenden “best practices in Corporate Governance“ in der Schweiz und den
Vereinigten Staaten von Amerika. Die Aktionäre genehmigten 2009 den Antrag und der Verwaltungsrat beantragt den
Aktionären erneut eine konsultative Abstimmung durchzuführen. Diese konsultative Abstimmung ist nicht
verbindlich, der Verwaltungsrat und dessen Entschädigungsausschuss werden allerdings das Abstimmungsresultat
berücksichtigen und im Falle eines negativen Abstimmungsresultats versuchen, dessen Ursachen festzustellen.

Wie im Kapitel "Compensation Discussion and Analysis" des Entschädigungsberichts 2010 erläutert, hat
Logitech sein Entschädigungsprogramm so gestaltet, dass die entscheidende Anzahl
leitender Angestellter und
Mitarbeitende für die Gesellschaft gewonnen und zu einer langfristigen Zusammenarbeit motiviert und dadurch der
langfristige Erfolg der Gesellschaft
Im Besonderen hat Logitech seinen
Entschädigungsplan für leitende Angestellte derart gestaltet um:

sichergestellt werden

kann.



mit ähnlichen, in der gleichen Industrie und Region des Verwaltungssitzes angesiedelten Unternehmen
konkurrenzfähig zu sein und die besten Talente anzuwerben und für die Gesellschaft zu gewinnen;

einen Ausgleich zwischen festem und variablem Lohnbestandteil sicherzustellen und einen Grossteil der
Gesamtentschädigung
unter
Aufrechterhaltung eines Kontrollsystems zur Vermeidung des Eingehens unangebrachter Risiken;

von Logitech’s Geschäftsergebnis

zu machen,

abhängig

jedoch

die Entschädigung leitender Angestellter mit dem Interesse der Aktionäre zu vereinbaren indem ein
bedeutender Teil der Entschädigung mit der Erhöhung des Aktienwertes verknüpft wird;

ein leistungsorientiertes Umfeld, welches überdurchschnittliche Leistungen belohnt, zu fördern; und

die Beurteilung des Entschädigungsausschusses betreffend leitender Position und erbrachter Leistung
wiederzuspiegeln, indem dies durch einen Grundlohn und kurzfristige Boni und das persönliche Potential
für den zukünftigen Einsatz für Logitech durch eine Langzeitbeteiligung am Eigenkapital entschädigt
werden.

Der Entschädigungsausschuss des Verwaltungsrates hat

einen Entschädigungsplan ausgearbeitet, der
ausführlicher im Entschädigungsbericht, welcher dieser Einladung beiliegt, erläutert wird. Weitere Einzelheiten zu
Entschädigungsphilosophie, Entschädigungsbestandteile für Angestellte unterhalb der Geschäftsführungsstufe, Risiken
und Ausgestaltung des Entschädigungsplans von Logitech sowie der Entschädigungen, welche im Geschäftsjahr 2010
ausbezahlt wurden, sind ebenfalls im Entschädigungsbericht dargelegt.

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In Anbetracht der ungewissen Entwicklung der ökonomischen bzw. Marktbedingungen im Geschäftsjahr 2010,
wurden die Grundgehälter der Geschäftsführer im Geschäftsjahr 2010 im Vergleich zum Geschäftsjahr 2009 nicht
angehoben und in der Ausgestaltung von Logitech’s Bonusplan wurde ein grösseres Gewicht auf die Generierung und
Beibehaltung von Barmitteln, Marktanteilen sowie Rentabilität gelegt.

Auch wenn die Entschädigung eine zentrale Rolle spielt, wenn es darum geht,

leitende Angestellte und
Mitarbeitende für die Gesellschaft zu gewinnen und zu einer langfristigen Zusammenarbeit zu motivieren, sind wir der
Ansicht, dass dies nicht der einzige oder ausschliessliche Grund dafür ist, warum ausgezeichnete leitende Angestellte
oder Mitarbeitende sich für Logitech entschliessen und auch bleiben, oder warum sie grossen Einsatz zeigen um ein
gutes Resultat für die Aktionäre zu erreichen. Diesbezüglich sind sich sowohl der Entschädigungsausschuss sowie
auch die Geschäftsleitung einig, dass es ganz wesentlich ist, ein gutes Arbeitsumfeld sowie Gelegenheiten zu schaffen,
die es Mitarbeitenden ermöglicht, sich zu entwickeln und ihr persönliches Potential voll auszuschöpfen. Auch diese
Aspekte spielen eine Schlüsselrolle für Logitech’s Erfolg, leitende Angestellte und Mitarbeitende für die Gesellschaft
zu gewinnen und zu einer langfristigen Zusammenarbeit zu motivieren.

Das Kapitel "Compensation Discussion and Analysis" erstreckt sich vom Anfang des Entschädigungsberichts bis

vor das Kapitel "Summary Compensation Table for Fiscal Year 2010."

Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,

entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt, wobei Enthaltungen nicht gezählt werden.

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Empfehlung

Der Verwaltungsrat beantragt, dass die Generalversammlung mittels konsultativer Abstimmung die
Entschädigungsphilosophie, -politik und -praktiken wie sie im Kapitel "Compensation Discussion and Analysis" des
Entschädigungsberichts 2010 erläutert werden, genehmigt.

Vortrag des Bilanzgewinns des Geschäftsjahres 2010 ohne Ausschüttung einer Dividende

Antrag 3

Antrag

Der Verwaltungsrat beantragt, auf die Ausschüttung einer Dividende zu verzichten und den Betrag von

CHF 349,312,000 (US $321,877,000 zum Wechselkurs vom 30. Juni 2010) auf die neue Rechnung vorzutragen.

Gewinnvortrag zu Beginn des Geschäftsjahres 2010 ..................
Verwendung des Gewinnvortrages gemäss Beschluss der
Generalversammlung 2009 – Dividende ....................................
Zuweisung an die Reserve für eigene Aktien ..............................
Nettogewinn des Geschäftsjahres 2010.......................................

(in KCHF)

CHF 354,924

CHF
CHF
CHF

—
(30
,122)
24,510

Gewinnvortrag zur Verfügung der Generalversammlung zum
Ende des Geschäftsjahres 2010 ...................................................

CHF 349,312

Erläuterungen

Nach schweizerischem Recht

ist die Verwendung des verfügbaren Gewinns jährlich dem Beschluss der

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Generalversammlung zu unterbreiten. Der zur Verfügung der Generalversammlung 2010 stehende Gewinn besteht aus
den kumulierten Gewinnen der Logitech International S.A., der Holdinggesellschaft der Logitech-Gruppe.

Der Verwaltungsrat ist weiterhin davon überzeugt, dass es im besten Interesse der Logitech und ihrer Aktionäre
ist, die Gewinne zurückzubehalten für zukünftige Investitionen in das Wachstum des Geschäfts der Logitech, für
Aktienrückkäufe und für den möglichen Erwerb anderer Gesellschaften oder Geschäftsbereiche. Aus diesem Grunde
schlägt der Verwaltungsrat vor, auf die Ausschüttung einer Dividende zu verzichten und den gesamten, den
Aktionären zustehenden Gewinn, auf die neue Rechnung vorzutragen.

Sollte dieser Antrag von den Aktionären abgewiesen werden, wird der Verwaltungsrat diesen Entscheid
berücksichtigen, eine ausserordentliche Generalversammlung einberufen und seinen jetzigen Vorschlag oder einen
veränderten Vorschlag zur Abstimmung bringen.

Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,

entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt, wobei Enthaltungen nicht gezählt werden.

Empfehlung

Der Verwaltungsrat empfiehlt, dem Antrag auf Vortrag des Bilanzgewinns des Geschäftsjahres 2010 ohne

Dividendenausschüttung zuzustimmen.

Antrag 4

Änderung der Statuten zur Anpassung an das schweizerische Bucheffektengesetz

Antrag

Der Verwaltungsrat beantragt der Generalversammlung, Artikel 4 der Statuten der Gesellschaft zu ändern, um

das schweizerische Bucheffektengesetz zu berücksichtigen.

Erläuterung

Dieser Antrag betrifft eine technische Änderung unserer Statuten. Der Verwaltungsrat beantragt die Anpassung
der Statuten an das schweizerische Bucheffektengesetz, welches am 1. Januar 2010 in Kraft getreten ist. Gemäss der
beantragten Änderung werden die Aktionäre nicht länger berechtigt sein, von der Gesellschaft die Ausstellung von
Aktienzertifikaten zu verlangen, wobei die Gesellschaft selber weiterhin das Recht hat, dies zu tun. Eingetragene
Aktionäre können jedoch jederzeit die Ausstellung einer schriftlichen Bescheinigung für ihre Aktien verlangen. Die
beantragte Änderung entspricht der derzeitigen Praxis in schweizerischen Publikumsgesellschaften und hält fest, dass
gemäss schweizerischem Bucheffektengesetz verbriefte Wertrechte nicht länger einen juristischen Vorteil, abgesehen
von einigen Ausnahmefällen, gegenüber unverbrieften Wertrechten haben. Die Änderungen werden keinen Einfluss
auf die Übertragbarkeit der Aktien von Logitech haben.

Der Verwaltungsrat beantragt die Genehmigung der folgenden Änderungen der Statuten:

Derzeitige Version

Artikel 4
Die Gesellschaft hat Namenaktien. Diese sind zu
numerieren und von zwei Mitgliedern des
Verwaltungsrates zu unterschreiben.

Vorgeschlagene neue Version

Artikel 4
Die Gesellschaft hat Namenaktien.

Die Generalversammlung hat die Befugnis durch
Statutenänderung Namenaktien in Inhaberaktien

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umzuwandeln.

Die Gesellschaft hat die Befugnis Aktienzertifikate über
mehrere Aktien auszustellen.

[gelöscht]

Die Gesellschaft kann auf die Ausstellung von
Namenaktien und Wertrechten verzichten. Jeder
Aktionär hat das Recht von der Gesellschaft jederzeit
und unentgeltlich zu verlangen, dass Aktienzertifikate
ausgestellt werden. Der Verwaltungsrat wird die Details
und Anforderungen für die diesbezügliche Durchführung
in einem Reglement festlegen.

Vorbehältlich nachstehenden Abschnitts werden die
Namenaktien der Gesellschaft nicht in Wertrechten
verbrieft (im Sinne des schweizerischen
Obligationenrechts) und gelten als Effekten (im Sinne
des schweizerischen Bucheffektengesetzes).
Ein im Aktienbuch der Gesellschaft registrierter
Aktionär kann jederzeit die Ausstellung einer
Bescheinigung über seine Namenaktien verlangen.
Aktionäre haben jedoch keinen Anspruch auf die
Ausstellung und Lieferung von Aktienzertifikaten. Die
Gesellschaft kann jedoch jederzeit nach eigenem
Ermessen Aktienzertifikate ausstellen und liefern. Die
Gesellschaft kann zudem nach eigenem Ermessen
nichtverbriefte Aktien von der Verwahrungsstelle, bei
der sie registriert wurden, zurückziehen und, mit dem
Einverständnis des Aktionärs, ausgegebene Zertifikate,
die der Gesellschaft zurückgegeben werden, annullieren.

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Bitte beachten Sie, dass einzig die französische Version der Statuten der Logitech Gültigkeit hat.

Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,

entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt.

Empfehlung

Der Verwaltungsrat empfiehlt die Annahme des Antrags zur Änderung von Artikel 4 der Statuten der

Gesellschaft, um das schweizerische Bucheffektengesetz zu berücksichtigen.

Entlastung des Verwaltungsrates und der Geschäftsleitung für das Geschäftsjahr 2010

Antrag 5

Antrag

Der Verwaltungsrat beantragt der Generalversammlung der Entlastung seiner Mitglieder

sowie der

Geschäftsleitung für deren Tätigkeiten im Geschäftsjahr 2010 zuzustimmen.

Erläuterungen

Es ist in schweizerischen Gesellschaften üblich und in Artikel 698, Absatz 2, Ziffer 5 des Schweizerischen
Obligationenrechts vorgesehen, den Aktionären die Entlastung der Mitglieder des Verwaltungsrates und der
Geschäftsleitung zu beantragen. Die Entlastung betrifft die Haftung für ihre Handlungen während des Geschäftsjahres
2010. Die Entlastung schliesst Verantwortlichkeitsklagen der Gesellschaft oder von Aktionären gegen die Mitglieder des
Verwaltungsrates und der Geschäftsleitung aus, sofern sie die Geschäftstätigkeit im Geschäftsjahr 2010 betreffen, und auf
Tatsachen beruhen, die den Aktionären mitgeteilt wurden. Eingetragene Aktionäre, die der Entlastung nicht zustimmen,
sind während einer Frist von sechs Monaten nach der Generalversammlung an den Entlastungsbeschluss nicht gebunden.

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Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,
entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt, wobei Enthaltungen nicht gezählt werden. Die
Mitglieder des Verwaltungsrates und der Geschäftsleitung der Logitech sind nicht stimmberechtigt, ebenso wenig wie
die von Logitech vertretenen Aktien.

Empfehlung

Der Verwaltungsrat empfiehlt der Generalversammlung die Annahme des Antrages auf Entlastung der

Mitglieder des Verwaltungsrates und der Geschäftsleitung für die Tätigkeit im Geschäftsjahr 2010.

Antrag 6

Wahlen in den Verwaltungsrat

Unser Verwaltungsrat hat gegenwärtig zehn Mitglieder. Jedes Mitglied ist für drei Jahre gewählt. Die
Amtszeiten sind so gestaffelt, dass nicht alle Mitglieder gleichzeitig zur Wiederwahl kommen. Dies ist eine Praxis,
wie sie unter dem schweizerischen Code of Best Practice für Corporate Governance empfohlen ist, um die Kontinuität
der Aktivität des Verwaltungsrates sicherzustellen.

Auf Empfehlung des Nominationsausschusses hat der Verwaltungsrat fünf Personen zur Wahl vorgeschlagen für
eine Amtszeit von drei Jahren, die an der Generalversammlung vom 8. September 2010 beginnt. Vier der
vorgeschlagenen Personen sind aktuelle Mitglieder des Verwaltungsrates. Ihre Mandatszeit endet zum Zeitpunkt der
Generalversammlung vom 8. September 2010.

Für jeden Kandidaten wird eine getrennte Abstimmung durchgeführt.

Wenn ein Kandidat im Zeitpunkt der Generalversammlung nicht fähig oder nicht Willens ist, seine Kandidatur
aufrecht zu erhalten, können die eingetragenen Aktionäre an der Generalversammlung wie auch die Aktionäre, die an
der Versammlung durch den unabhängigen Stimmrechtsvertreter oder andere Bevollmächtigte vertreten sind, in
folgender Weise vorgehen: (1) sie können ihre Wahl für den Ersatzkandidaten aussprechen, den der Verwaltungsrat
vorschlägt oder (2) sie können einen anderen Ersatzkandidaten wählen. Nach schweizerischem Recht können
Verwaltungsratsmitglieder nur von der Generalversammlung gewählt werden. Wenn kein Ersatzkandidat genannt wird
und die vorgeschlagenen Kandidaten gewählt werden, hat der Verwaltungsrat zehn Mitglieder. Der Verwaltungsrat hat
keinen Grund zur Annahme, dass einer der Kandidaten nicht Willens oder fähig ist, das Amt anzunehmen.

Für weitere Information über den Verwaltungsrat, einschliesslich die gegenwärtigen Mitglieder, die Ausschüsse,
die Mittel, mit denen der Verwaltungsrat die Geschäftsleitung überwacht, und weitere Information sind Sie auf
untenstehende Ausführung unter dem Titel "Corporate Governance und Verwaltungsratsangelegenheiten" verwiesen.

6.1 Wiederwahl von Herrn Daniel Borel

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Herrn Daniel Borel für drei

weitere Jahre.

Daniel Borel ist einer der Gründer der Gesellschaft und war von Mai 1988 bis zum 1. Januar 2008 Präsident des
Verwaltungsrates. Von Juli 1992 bis Februar 1998 präsidierte Herr Borel auch die Konzernleitung. Er hielt
verschiedene weitere exekutive Positionen mit der Gesellschaft und ihren Vorgängerunternehmen. Herr Borel ist
Mitglied des Verwaltungsrates der Nestlé S.A. Im Weiteren ist Herr Borel Mitglied des Stiftungsrates der Defitech
Stiftung, einer schweizerischen Stiftung zur Förderung von Forschung und Entwicklung für Behinderte, er ist
Vorsitzender des Stiftungsrates der SwissUp, einer schweizerischen Stiftung zur Förderung der Fortbildung und er ist
für die Eidgenössische Technische
Präsident der EPFL Plus, einer schweizerischen Stiftung, die Geldmittel
Hochschule in Lausanne sammelt und verwaltet. Herr Borel hat einen Master of Science in Computerwissenschaft der
Stanford University und ist diplomierter Physiker der Eidgenössischen Technischen Hochschule, Lausanne, Schweiz.
Herr Borel ist 60 Jahre alt undSchweizer.

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Als einer der Gründer von Logitech und ehemaliger Vorsitzender und CEO besitzt Herr Borel fundiertes Wissen
über und eine Leidenschaft für Logitech, seine Angestellten und Produkte sowie weitreichende Erfahrungen in
industriellen, technischen, globalen und Führungsangelegenheiten. Als Mitglied des Verwaltungsrates der Nestlé
besitzt Herr Borel zudem gesellschaftsübergreifende Erfahrung.

6.2 Wiederwahl von Frau Sally Davis

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Frau Sally Davis für drei

weitere Jahre.

Sally Davis ist seit 2007 Geschäftsführerin von BT Wholesale. Sie war zudem von 2005 bis 2007 Chief Portfolio
Officer der British Telecom. Vorher hielt sie verschiedene exekutive Funktionen innerhalb BT inne, in welche sie im
Jahre 1999 eintrat. Ihre Funktionen umfassten die Direktion der Abteilung Globale Produkte, Globale Dienstleistungen
(2002-2005), der Abteilung BT Ignite Applications Hosting (2001-2002) und der Abteilung Internet und Multimedia
(1999-2001). Vor ihrer Tätigkeit bei British Telecom war Frau Davis in leitenden Stellungen in verschiedenen grossen
Kommunikationsunternehmen tätig, einschliesslich Bell Atlantic in den Vereinigten Staaten von Amerika und
Mercury Communications in Grossbritannien. Sie ist Mitglied des Verwaltungsrates und Vorsitzende des Audit
Committees der Henderson Smaller Companies Investment Trust plc, einem in Grossbritannien verwalteten
Investment Fonds und sie ist Mitglied des Verwaltungsrates der I.Net S.p.A, einer italienischen Gesellschaft, die
Applikationsinfrastrukturdienstleistungen innerhalb der British Telecom erbringt. Sie erwarb einen Bachelor of Arts
des University College, London. Sie ist 56 Jahre alt und britische Staatsangehörige.

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Frau Davis’ Erfahrung als CEO einer bedeutenden europäischen Telekommunikationsgesellschaft sowie ihre
ausgesprochene Kenntnis in Bezug auf technologische Produktstrategien und Produktpaletten, bereichert den
Verwaltungsrat mit Fachwissen über Unternehmensführung, Technologie, Produktstrategie und Finanzmanagement.

Zurzeit ist Frau Davis im Verwaltungsrat Mitglied des Prüfungs- sowie des Nominationsausschusses. Der

Verwaltungsrat hat entschieden, dass sie als unabhängiges Verwaltungsratsmitglied gilt.

6.3 Wiederwahl von Herrn Guerrino De Luca

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Herrn Guerrino De Luca für

drei weitere Jahre.

Guerrino De Luca amtete als Verwaltungsratspräsident von Logitech seit Januar 2008. Zuvor war Herr De Luca
von Februar 1998, als er zur Gesellschaft kam, bis Januar 2008 als Vorsitzender und CEO aktiv. Seit Juni 1998 ist er
als exekutives Mitglied des Verwaltungsrates tätig. Vor seiner Anstellung bei Logitech war Herr De Luca
verantwortlich für das weltweite Marketing der Apple Inc. (Februar 1997 bis September 1997) und Präsident der
Claris Corporation, einer amerikanischen Computer Software Verkaufsgesellschaft (Februar 1995 bis Februar 1997).
Davor war Herr De Luca in verschiedenen Positionen bei Apple in den Vereinigten Staaten von Amerika und in
Europa tätig. Herr De Luca hat einen Bachelor of Science in Electronic Engineering der Universität Rom, Italien. Er
ist 57 Jahre alt und italienischer und amerikanischer Staatsbürger.

Als Logitech’s Vorsitzender und ehemaliger CEO bringt Herr De Luca bedeutende Erfahrungen in
Unternehmensführung, Industrie, Strategie und Marketing in den Verwaltungsrat ein und besitzt, wie Herr Borel, eine
ausgesprochene Leidenschaft für und Bindung an Logitech, seine Angestellten und Produkte.

Zusätzlich zu seiner Funktion als Verwaltungsratspräsident amtet Herr De Luca auch als Vorsitzender des

Nominations- sowie des Entschädigungsausschusses.

6.4 Wahl von Herrn Neil Hunt

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Herrn Neil Hunt für drei

Jahre.

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Neil Hunt ist Chief Product Officer von Netflix, Inc., einer in Kalifornien ansässigen Gesellschaft, die den
weltgrössten Abonnementservice für Filme und Fernsehserien via Internet sowie das Versenden von DVDs via Post
anbietet. Ab 1999 arbeitete er bei Netflix als Vizepräsident, Internet Engineering, bis er 2002 in seine aktuelle
Stellung befördert wurde. Von 1997 bis 1999 war Herr Hunt Direktor für Entwicklung bei Rational Software, einem in
Kalifornien ansässigen Hersteller von Softwareentwicklungsprogrammen, und von 1991 bis 1997 war er für
Entwicklungsaufgaben bei den Vorgängergesellschaften tätig. Herr Hunt hat einen Doktortitel in Computer Science
der University of Aberdeen, Grossbritannien sowie einen Bachelor der University of Durham, Grossbritannien. Er ist
48 Jahre alt und englischer sowie amerikanischer Staatsbürger.

Herr Hunt’s bedeutende Kenntnis in Technologie, Produktentwicklung, Unternehmensführung und Strategie
sowie seine Erfahrung als Mitglied der Führungsebene einer führenden Gesellschaft für digitale Zustellungen
bereichern den Verwaltungsrat mit Kenntnis in Technologie, Produktstrategie und Unternehmensführung.

6.5 Wiederwahl von Frau Monika Ribar

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Frau Monika Ribar für drei

weitere Jahre.

Monika Ribar ist Präsidentin und CEO der Panalpina Group, einem schweizerischen Anbieter von Speditions-
und Logistikdienstleistungen. Sie war Mitglied der Konzernleitung der Panalpina seit Februar 2000, war Chief
Financial Officer von Juni 2005 bis Oktober 2006 sowie Chief Information Officer von Februar 2000 bis Juni 2005.
Von Juni 1995 bis Februar 2000 war sie Panalpina Corporate Controller und von 1991 bis 1995 Projektleiterin für
Panalpina. Vor ihrer Aktivität für Panalpina war Frau Ribar bei der Fides Gruppe (heute KPMG Schweiz), einer
Dienstleistungsunternehmung, wo sie Vorsitzende der strategischen Planung war. Zudem war sie für die BASF
Gruppe tätig. Frau Ribar hat einen Hochschulabschluss in Volkwirtschaft und Betriebswirtschaft der Universität St.
Gallen, Schweiz. Frau Ribar ist 50 Jahre alt und Schweizerin.

Frau Ribar hat bedeutende Führungserfahrung betreffend strategischen,

finanziellen und operationellen
Anforderungen von global
tätigen Gesellschaften und bereichert unseren Verwaltungsrat mit Erfahrung in
ehemaliges
Unternehmensführung,
Verwaltungsratsmitglied einer Publikumsgesellschaft besitzt Frau Ribar zudem gesellschaftsübergreifende Erfahrung.

finanziellen Angelegenheiten. Als

globalen

Logistik

sowie

und

Frau Ribar amtet zurzeit als Vorsitzende des Prüfungsausschusses des Verwaltungsrats. Der Verwaltungsrat hat

entschieden, dass sie als unabhängiges Verwaltungsratsmitglied gilt.

Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,

entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt, wobei Enthaltungen nicht gezählt werden.

Empfehlung

Der Verwaltungsrat empfiehlt die Wahl der obgenannten Kandidaten in den Verwaltungsrat.

Antrag 7

Wiederwahl der PricewaterhouseCoopers S.A. als Revisionsstelle

Antrag

Der Verwaltungsrat beantragt, PricewaterhouseCoopers S.A. als Revisionsstelle der Logitech International S.A.

für ein weiteres Jahr wiederzuwählen.

Empfehlung

Auf Empfehlung des Prüfungsausschusses des Verwaltungsrates ist PricewaterhouseCoopers AG für ein weiteres

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Jahr als Revisionsstelle der Logitech International AG vorgeschlagen. Sie ist seit 1988 für die Revision der Logitech
verantwortlich. Informationen über die Honorare, die Logitech an PricewaterhouseCoopers AG bezahlt hat, sowie
weitere Information über PricewaterhouseCoopers S.A. entnehmen Sie dem untenstehenden Abschnitt unter dem Titel
"Independent Public Accountants” und “Report of the Audit Committee”.

Ein Mitglied der PricewaterhouseCoopers S.A. wird an der Generalversammlung teilnehmen, die Möglichkeit

haben sich zu äussern und zur Verfügung stehen zur Beantwortung allfälliger Fragen.

Notwendige Mehrheit zur Genehmigung

Der Antrag ist genehmigt, wenn er eine Mehrheit der an der Generalversammlung abgegebenen Stimmen,

entweder persönlich oder aufgrund einer Vollmacht, auf sich vereinigt, wobei Enthaltungen nicht gezählt werden.

Empfehlung

Der Verwaltungsrat empfiehlt die Wiederwahl der PricewaterhouseCoopers S.A. als Revisionsstelle der Logitech

International S.A. für das am 31. März 2011 endende Geschäftsjahr.

VERWALTUNGSRATSANGELEBENHEITEN UND ENTSCHÄDIGUNGSBERICHT

Für weitere Information über unseren Verwaltungsrat und für den Entschädigungsbericht verweisen wir Sie auf

die englische Version dieser Einladung. Der englische Text ist die massgebliche Version dieser Einladung.

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July 27, 2010

To our shareholders:

You are cordially invited to attend Logitech’s 2010 Annual General Meeting. The meeting will be held on
Wednesday, September 8, 2010 at 2:30 p.m. at the Palais De Beaulieu, Rome Room, 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, information 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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LOGITECH INTERNATIONAL S.A.

Invitation to the Annual General Meeting
Wednesday, September 8, 2010
2:30 p.m. (registration starts at 1:30 p.m.)
Palais de Beaulieu – Lausanne, Switzerland

*****

AGENDA

A. Reports

Report on Operations for the fiscal year ended March 31, 2010

B. Proposals

Approval of the Annual Report, the Compensation Report, the consolidated financial statements and the
statutory financial statements of Logitech International S.A. for fiscal year 2010

2. Advisory vote on compensation philosophy, policies and practices

3. Appropriation of retained earnings without payment of a dividend

4. Amendments to articles of incorporation to implement the Swiss Book Entry Securities Act

5. Release of the Board of Directors and Executive Officers for activities during fiscal year 2010

Elections to the Board of Directors

6.1. Re-election of Mr. Daniel Borel

6.2. Re-election of Ms. Sally Davis

6.3. Re-election of Mr. Guerrino De Luca

6.4. Election of Mr. Neil Hunt

6.5. Re-election of Ms. Monika Ribar

Re-election of PricewaterhouseCoopers S.A. as auditors

Apples, Switzerland, July 27, 2010

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The Board of Directors

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QUESTIONS AND ANSWERS ABOUT THE LOGITECH
2010 ANNUAL GENERAL MEETING

GENERAL INFORMATION FOR ALL SHAREHOLDERS

Why am I receiving this “Invitation and Proxy Statement”?

This document is designed to comply with both Swiss corporate law and U.S. proxy statement rules. Outside
of the U.S. and Canada this Invitation and Proxy Statement will be delivered 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 27, 2010.

Who is entitled to vote at the meeting?

Shareholders registered in the Share Register of Logitech International S.A. (including in the sub-register
maintained by Logitech’s U.S. transfer agent, The Bank of New York Mellon Corporation) on Thursday, September
2, 2010 have the right to vote. No shareholders will be entered in the Share Register between September 3, 2010 and
the day following the meeting. As of June 30, 2010 there were 86,137,698 shares registered and entitled to vote out
of a total of 175,691,987 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, 2010 and September 2, 2010.

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.

Who is a registered shareholder?

If your shares are registered directly in your name with us in the Share Register of Logitech International
S.A., or in our sub-register maintained by our U.S. transfer agent, The Bank of New York Mellon Corporation, you
are considered a registered shareholder, and this Invitation and Proxy Statement and related materials are being sent
to you directly by Logitech.

Who is a beneficial owner with shares registered in the name of a custodian, or “street name” owner?

Shareholders that have not requested registration on our Share Register directly, and hold shares through a
broker, trustee or nominee or other similar organization that is a registered shareholder, are beneficial owners of
shares registered in the name of a custodian. If you hold your Logitech shares through a U.S. or Canadian broker,
trustee or nominee or other similar organization (also called holding in “street 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 related materials
are being sent or made available to you by them. You have the right to direct that organization on how to vote the
shares held in your account.

Why is it important for me to vote?

Logitech is a public company and key decisions can only be made by shareholders. Whether or not you plan

to attend, your vote is important so that your shares are represented.

How many registered shares must be present or represented to conduct business at the meeting?

There is no quorum requirement for the meeting. Under Swiss law, public companies do not have specific
quorum requirements for shareholder meetings, and our Articles of Incorporation do not otherwise provide for a
quorum requirement.

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Where are Logitech’s principal executive offices?

Logitech’s principal executive office in Switzerland is at Rue du Sablon 2-4, 1110 Morges, Switzerland, and
our principal executive office in the United States is at 6505 Kaiser Drive, Fremont, California 94555. Logitech’s
main telephone number in Switzerland is +41-(0)21-863-5111 and our main telephone number in the United States
is +510-795-8500.

How can I obtain Logitech’s annual report and other annual reporting materials?

A copy of our 2010 Annual Report to Shareholders, this Invitation and Proxy Statement and our Annual
Report on Form 10-K for fiscal year 2010 filed with the U.S. Securities and Exchange Commission are available on
our website at http://ir.logitech.com. Shareholders also may request free copies of these materials at our principal
executive offices in Switzerland or the United States, at the addresses and phone numbers above.

Where can I find the voting results of the meeting?

We intend to announce voting results at the meeting and issue a press release promptly after the meeting. We
will also file the results on a Current Report on Form 8-K with the U.S. Securities and Exchange Commission by
Tuesday, September 14, 2010. A copy of the Form 8-K will be available on our website at http://ir.logitech.com.

If I am not a registered shareholder, can I attend and vote at the meeting?

You may not attend the meeting and vote your shares in person at the meeting unless you either become a
registered shareholder by September 2, 2010 or you obtain a “legal proxy” from the broker, trustee or nominee that
holds your shares, giving you the right to vote the shares at the meeting. If you hold your shares through a non-U.S.
or non-Canadian broker, trustee or nominee, you may become a registered shareholder by contacting our Share
Registrar at our principal executive offices in Switzerland, at the above address, and following their registration
instructions or, in certain countries, by requesting registration through the bank or brokerage through which you
hold your shares. If you hold your shares through a U.S. or Canadian broker, trustee or nominee, you may become a
registered shareholder by contacting your broker, trustee or nominee, and following their registration instructions.

FURTHER INFORMATION FOR REGISTERED SHAREHOLDERS

How can I vote if I do not plan to attend the meeting?

If you do not plan to attend the meeting you may mark the applicable box under Option 3 on the enclosed
Response Coupon to appoint either Logitech or the Independent Representative, Ms. Béatrice Ehlers, to represent
you at the meeting. Please provide your voting instructions by marking the applicable boxes beside the agenda items
on the Response Coupon and sign, date and promptly mail your completed Response Coupon using the appropriate
enclosed postage paid envelope. If you sign and return the Response Coupon but do not provide voting instructions
for some or all agenda items, your voting rights will be exercised in favor of the Proposals of the Board of Directors
(the “Board”). Please refer to the Response Coupon for more instructions.

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How can I attend the meeting?

If you wish to attend the meeting, please mark Option 1 on the Response Coupon, and send the completed,
signed and dated Response Coupon to Logitech using the enclosed postage paid envelope by August 27, 2010. We
will send you an admission card for the meeting. If an admission card is not received by you prior to the meeting
and you are a registered shareholder as of September 2, 2010, you may attend the meeting by presenting proof of
identification at the meeting.

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Can I have another person represent me at the meeting?

Yes. If you would like someone other than either Logitech or the Independent Representative to represent
you at the meeting, please mark Option 2 on the Response Coupon and provide the name and address of the person
you want to represent you. Please return the completed, signed and dated Response Coupon to Logitech using
the enclosed postage paid envelope by August 27, 2010. We will send an admission card for the meeting to your
representative. If the name and address instructions you provide are not clear Logitech will send the admission card
to you, and you must forward it to your representative.

Can I sell my shares before the meeting if I have voted?

Logitech does not block the transfer of shares before the meeting. However, if you sell your Logitech shares
before the meeting and Logitech’s Share Registrar is notified of the sale, your votes with those shares will not be
counted. Any person who purchases shares after the Share Register closes on Thursday, September 2, 2010 will not
be able to register them until the day after the meeting and so will not be able to vote the shares at the meeting.

If I vote by proxy using the Response Coupon, can I change my vote after I have voted?

You may change your vote at any time before the final vote at the meeting. You may revoke your vote by
requesting a new Response Coupon from us, and we will cancel your prior Response Coupon. If you wish to vote
again you may complete the new Response Coupon and return it to us, or you may attend the meeting and vote in
person. However, your attendance at the meeting will not automatically revoke your Response Coupon unless you
vote again at the meeting or specifically request in writing that your prior Response Coupon be revoked.

If I vote by proxy using the Response Coupon, what happens if I do not give specific voting instructions?

If you are a registered shareholder and sign and return a Response Coupon without giving specific voting
instructions for some or all agenda items, your voting rights will be exercised in favor of the Proposals of the
Board of Directors. In addition, if you provide discretionary voting instructions in the Response Coupon, and
other matters are properly presented for voting at the meeting, your voting rights will be exercised in favor of the
recommendations of the Board of Directors at the meeting on such matters.

In addition, if your shares are represented at the meeting by an institution subject to the Swiss Federal Law
on Banks and Savings Institutions, or by a professional asset manager subject to Swiss jurisdiction, and if you do
not provide the institution or asset manager with general or specific voting instructions, the institution or asset
manager will be obliged under Swiss law to exercise the voting rights of your shares in the manner recommended
by the Board of Directors.

Who can I contact if I have questions?

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 LogitechIR@logitech.com.

FURTHER INFORMATION FOR U.S. OR CANADIAN “STREET NAME” BENEFICIAL OWNERS

Why did I receive a one-page notice in the mail regarding the Internet availability of proxy materials this
year instead of a full set of proxy materials?

We have provided access to our proxy materials over the Internet to beneficial owners holding their shares
in “street name” through a U.S. or Canadian broker, trustee or nominee. Accordingly, such brokers, trustees or
nominees are forwarding a Notice of Internet Availability of Proxy Materials (the “Notice”) to such beneficial
owners. All such shareholders will have the ability to access the proxy materials on a website referred to in the
Notice or request to receive a printed set of the proxy materials. Instructions on how to access the proxy materials

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over the Internet or to request a printed copy may be found on the Notice. In addition, beneficial owners holding
their shares in street name through a U.S. or Canadian broker, trustee or nominee may request to receive proxy
materials in printed form by mail or electronically by email on an ongoing basis.

How can I get electronic access to the proxy materials?

The Notice will provide you with instructions regarding how to:

•

View our proxy materials for the meeting on the Internet; and

Instruct us to send our future proxy materials to you electronically by email.

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 annual shareholders’ meetings on the environment. If you
choose to receive future proxy materials by email, you will receive an email next year with instructions containing
a link to those materials and a link to the proxy voting site. Your election to receive proxy materials by email will
remain in effect until you terminate it.

Who may provide voting instructions for the meeting?

For purposes of U.S. or Canadian beneficial shareholder voting, shareholders holding shares through a
U.S. or Canadian broker, trustee or nominee organization on July 16, 2010 may direct the organization on how
to vote. Logitech has made arrangements with a service company to U.S. and Canadian brokers, trustees and
nominee organizations for that service company to provide a reconciliation of share positions of U.S. and Canadian
“street name” beneficial owners between July 16, 2010 and August 25, 2010, which Logitech determined is the
last practicable date before the meeting for such a reconciliation. These arrangements are intended to result in the
following adjustments: If a U.S. or Canadian “street name” beneficial owner as of July 16, 2010 votes but subsequently
sells their shares before August 25, 2010, their votes will be cancelled. A U.S. or Canadian “street name” beneficial
owner as of July 16, 2010 that has voted and subsequently increases or decreases their shareholdings but remains a
beneficial owner as of August 25, 2010 will have their votes increased or decreased to reflect their shareholdings
as of August 25, 2010.

If you acquire Logitech shares in “street name” after July 16, 2010 through a U.S. or Canadian broker, trustee
or nominee, and wish to vote at the meeting or provide voting instructions by proxy, you must become a registered
shareholder. You may become a registered shareholder by contacting your broker, trustee or nominee, and following
their registration instructions. In order to allow adequate time for registration, for proxy materials to be sent to you,
and for your voting instructions to be returned to us before the meeting, please begin the registration process as far
before September 2, 2010 as possible.

If I am a U.S. or Canadian “street name” beneficial owner, how do I vote?

If you are a beneficial owner of shares held in “street name” and you wish to vote in person at the meeting,

you must obtain a valid proxy from the organization that holds your shares.

If you do not wish to vote in person, you may vote by proxy. You may vote by proxy over the Internet, or if
you request printed copies of the proxy materials by mail, you can also vote by mail or by telephone by following
the instructions provided in the Notice.

What happens if I do not give specific voting instructions?

If you are a beneficial owner of shares held in “street name” in the United States or Canada and do not provide
your broker, trustee or nominee with specific voting instructions, then under the rules of various national and
regional securities exchanges, your broker, trustee or nominee may generally vote on routine matters but cannot
vote on non-routine matters. If the organization that holds your shares does not receive instructions from you on how
to vote your shares on a non-routine matter, your shares will not be voted on such matter and will not be considered
votes cast on the applicable Proposal. We encourage you to provide voting instructions to the organization that

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holds your shares by carefully following the instructions provided in the Notice. We believe the following Proposals
will be considered non-routine: Proposal 2 (Advisory vote on compensation philosophy, policies and practices),
Proposal 3 (Appropriation of retained earnings without payment of a dividend), Proposal 4 (Amendments to articles
of incorporation to implement the Swiss Book Entry Securities Act) and Proposal 6 (Elections to the Board of
Directors). All other Proposals involve matters that we believe will be considered routine. Any “broker non-votes”
on any Proposals will not be considered votes cast on the Proposal.

What is the deadline for delivering my voting instructions?

If you hold your shares through a U.S. or Canadian bank or brokerage or other custodian you have until 11:59

pm (U.S. Eastern Daylight Time) on September 3, 2010 to deliver your voting instructions.

Can I change my vote after I have voted?

You may revoke your proxy and change your vote at any time before the final vote at the meeting. You may
vote again on a later date on the Internet or by telephone (only your latest Internet or telephone proxy submitted
prior to the meeting will be counted), or by signing and returning a new proxy card with a later date, or by attending
the meeting and voting in person, if you have a “legal proxy” that allows you to attend the meeting and vote.
However, your attendance at the Annual General Meeting will not automatically revoke your proxy unless you vote
again at the meeting or specifically request in writing that your prior proxy be revoked.

FURTHER INFORMATION FOR SHAREHOLDERS WITH SHARES REGISTERED THROUGH A
BANK OR BROKERAGE AS CUSTODIAN (OUTSIDE THE U.S. OR CANADA)

How do I vote by proxy if my shares are registered through my bank or brokerage as custodian?

Your broker, trustee or nominee should have enclosed or provided voting instructions for you to use in
directing the broker, trustee or nominee how to vote your shares. If you did not receive such instructions you must
contact your bank or brokerage for their voting instructions.

What is the deadline for delivering my voting instructions if my Logitech shares are registered through my
bank or brokerage as custodian?

Banks and brokerages typically set deadlines for receiving instructions from their account holders. Outside
of the U.S. and Canada, this deadline is typically two to three days before the deadline of the company holding the
general meeting. This is so that the custodians can collect the voting instructions and pass them onto the company
holding the meeting. If you hold Logitech shares through a bank or brokerage outside the U.S. or Canada please
check with your bank or brokerage for their specific voting deadline and submit your voting instructions to them as
far before the meeting date as possible.

OTHER MEETING INFORMATION

Further Information for Depositary representatives

Institutions subject to the Swiss Federal Law on Banks and Savings Banks, as well as professional asset

managers, are obliged to inform Logitech of the number and par value of the registered shares they represent.

Meeting Proposals

There are no other matters that the Board intends to present, or has reason to believe others will present, at the
Annual General Meeting. If other matters are properly presented for voting at the meeting, and you have provided
discretionary voting instructions in the Response Coupon or your voting instruction card, your shares will be voted
in accordance with the recommendations of the Board of Directors at the meeting on such matters.

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Proxy Solicitation

We will bear the expense of soliciting proxies, and we have retained Georgeson, Inc. to solicit proxies for a
fee of $15,000 plus a reasonable amount to cover expenses. Certain of our directors, officers and other employees,
without additional compensation, may also solicit proxies personally or in writing, by telephone, e-mail or otherwise,
or we may ask our proxy solicitor to solicit votes and proxies on our behalf by telephone for a fee of $5.00 per phone
call, plus reasonable expenses. In the United States we are required to request that brokers and nominees who hold
shares in their names furnish our proxy material to the beneficial owners of the shares, and we must reimburse such
brokers and nominees for the expenses of doing so in accordance with certain U.S. statutory fee schedules.

Tabulation of Votes

Representatives of at least two Swiss banks will serve as scrutineers of the vote tabulations at the meeting. As
is typical for Swiss companies, our Share Registrar will tabulate the voting instructions of registered shareholders
that are provided in advance of the meeting.

Shareholder Proposals and Nominees

Shareholder Proposals for 2010 Annual General Meeting

Under our Articles of Incorporation, one or more registered shareholders who together represent shares
representing at least the lesser of (i) one percent of our issued share capital or (ii) an aggregate par value of one million
Swiss francs may demand that an item be placed on the agenda of a meeting of shareholders. Any such proposal must
be included by the Board in our materials for the meeting. A request to place an item on the meeting agenda must be
in writing, describe the proposal and be received by our Board of Directors at least 60 days prior to the date of the
meeting. The deadline to receive proposals for the agenda for the September 8, 2010 Annual General Meeting was
July 9, 2010. However, under Swiss law registered shareholders, or persons holding a valid proxy from a registered
shareholder, may propose alternatives to items on the 2010 Annual General Meeting agenda before or at the meeting.

Shareholder Proposals for 2011 Annual General Meeting

A registered shareholder that satisfies the minimum shareholding requirements in the Company’s Articles of
Incorporation may demand that an item be placed on the agenda for our 2011 meeting of shareholders by delivering
a written request describing the proposal to the Secretary of Logitech at our principal executive office in either
Switzerland or the United States no later than July 8, 2011. In addition, if you are a registered shareholder and
satisfy the shareholding requirements under Rule 14a-8 of the U.S. Securities Exchange Act of 1934 (the “Exchange
Act”), you may submit a proposal for consideration by the Board of Directors for inclusion in the 2011 Annual
General Meeting agenda by delivering a request and a description of the proposal to the Secretary of Logitech at our
principal executive office in either Switzerland or the United States no later than March 29, 2011. The proposal will
need to comply with Rule 14a-8 of the Exchange Act, which lists the requirements for the inclusion of shareholder
proposals in company-sponsored proxy materials under U.S. securities laws. Under the Company’s Articles of
Incorporation only registered shareholders are recognized as Logitech shareholders. As a result, if you are not a
registered shareholder you may not make proposals for the 2011 Annual General Meeting.

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Nominations of Director Candidates

Nominations of director candidates by registered shareholders must follow the rules for shareholder proposals

above.

Provisions of Articles of Incorporation

The relevant provisions of our Articles of Incorporation regarding the right of one or more registered
shareholders who together represent shares representing at least the lesser of (i) one percent of our issued share
capital or (ii) an aggregate par value of one million Swiss francs to demand that an item be placed on the agenda of a
meeting of shareholders are available on our website at http://ir.logitech.com. You may also contact the Secretary of
Logitech at our principal executive office in either Switzerland or the United States to request a copy of the relevant
provisions of our Articles of Incorporation.

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AGENDA PROPOSALS AND EXPLANATIONS

A. REPORTS

Report on Operations for the Fiscal Year Ended March 31, 2010

Senior management of Logitech International S.A. will provide the Annual General Meeting with a presentation

and report on operations of the Company for fiscal year 2010.

B. PROPOSALS

Approval of the Annual Report, the Compensation Report, the Consolidated Financial Statements and the
Statutory Financial Statements of Logitech International S.A. for Fiscal Year 2010

Proposal 1

Proposal

The Board of Directors proposes that the Annual Report, the Compensation Report, the consolidated financial

statements and the statutory financial statements of Logitech International S.A. for fiscal year 2010 be approved.

Explanation

The Logitech consolidated financial statements and the statutory financial statements of Logitech International
S.A. for fiscal year 2010 are contained in Logitech’s Annual Report which was distributed to all registered
shareholders with this Invitation and Proxy Statement. The Annual Report also contains the report of Logitech’s
auditors, the report of the statutory auditors and additional information on the Company’s business, organization
and strategy, and information relating to corporate governance as required by the SIX Swiss Exchange directive on
corporate governance. The Compensation Report is included in this Invitation and Proxy Statement. Copies of the
Annual Report and the Invitation and Proxy Statement are available on the Internet at ir.logitech.com.

Under Swiss law the annual report and financial statements of Swiss companies must be submitted to
shareholders for approval or disapproval at each annual general meeting. The submission of the compensation report
to a vote of shareholders as part of the approval of the annual report is a suggested best practice under applicable
Swiss best corporate governance principles published by economiesuisse, a leading Swiss business organization.
In the event of a negative vote on this proposal by shareholders the Board of Directors will call an extraordinary
general meeting of shareholders for re-consideration of this proposal by shareholders. Approval of this proposal
does not constitute approval or disapproval of any of the individual matters referred to in the Annual Report, the
Compensation Report or the consolidated or statutory financial statements for fiscal year 2010.

PricewaterhouseCoopers S.A., as Logitech auditors, issued an unqualified recommendation to the Annual
General Meeting that the Logitech consolidated and Logitech International S.A. financial statements be approved.
PricewaterhouseCoopers S.A. express their opinion that the “consolidated financial statements for the year ended
March 31, 2010 present fairly, in all material respects, the financial position, the results of operations and the cash
flows in accordance with accounting principles generally accepted in the United States of America (US GAAP)
and comply with Swiss law.” They further express their opinion and confirm that the financial statements and the
proposed appropriation of available earnings comply with Swiss law and the articles of incorporation of Logitech
International S.A.

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Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast in person or by proxy at the Annual General

Meeting, not counting abstentions.

Recommendation

The Board of Directors recommends a vote “FOR” approval of the Annual Report, the Compensation Report,
the consolidated financial statements and the statutory financial statements of Logitech International S.A. for fiscal
year 2010.

Advisory vote on compensation philosophy, policies and practices

Proposal 2

Proposal

The Board of Directors proposes that shareholders approve, on an advisory basis, Logitech’s compensation
philosophy, policies and practices as set out in the “Compensation Discussion and Analysis” section of the
Compensation Report for fiscal year 2010.

Explanation

At Logitech’s 2009 Annual General Meeting the Logitech Board of Directors asked shareholders to approve
Logitech’s compensation philosophy, policies and practices, as a reflection of evolving best practices in corporate
governance in Switzerland and in the United States. The shareholders approved the proposal in 2009, and the Board
of Directors is again asking shareholders for their advisory vote. This advisory vote is non-binding; however, the
Board and the Compensation Committee of the Board will consider the voting results and seek to determine the
causes of any significant negative voting result.

As discussed in the Compensation Discussion and Analysis section of Logitech’s 2010 Compensation Report,
Logitech has designed its compensation programs to attract, retain and motivate the high caliber of executives,
managers and staff that is critical to the long-term success of its business. More specifically, Logitech’s executive
compensation programs have been designed to:

•

be competitive with comparable companies in the industry and in the region where the executive is
based to attract and retain top talent;

maintain a balance between fixed and variable compensation and place a significant portion of total
compensation at risk based on Logitech’s performance, while maintaining controls over inappropriate
risk-taking;

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align executive compensation with shareholders’ interests by tying a significant portion of compensation
to increasing share value;

support a performance-oriented environment that rewards superior performance; and

reflect the Compensation Committee’s assessment of an executive’s role and past performance through
base salary and short-term incentives, and his or her potential for future contribution to Logitech through
long-term equity incentive awards.

The Compensation Committee of the Board has developed a compensation program that is described more
fully in the Compensation Report included in this Invitation and Proxy Statement. Logitech’s compensation
philosophy, compensation components for employees below the executive level, compensation program risks and
design, and compensation paid during fiscal year 2010 are also set out in the Compensation Report.

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In recognition of the uncertain economic and market conditions in fiscal year 2010, the base salaries of
executives did not increase in fiscal year 2010 over those of fiscal year 2009, and the design of Logitech’s bonus
program placed a greater importance on the generation and retention of cash, market share, and profitability.

While compensation is a central part of attracting, retaining and motivating the best executives and employees,
we believe it is not the sole or exclusive reason why exceptional executives or employees choose to join and stay
at Logitech, or why they work hard to achieve results for shareholders. In this regard, both the Compensation
Committee and management believe that providing a working environment and opportunities in which executives
and employees can develop, express their individual potential, and make a difference, are also a key part of
Logitech’s success in attracting, retaining and motivating executives and employees.

The Compensation Discussion and Analysis section extends from the beginning of the Compensation Report

until the beginning of the section titled “Summary Compensation Table for Fiscal Year 2010.”

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast in person or by proxy at the Annual General

Meeting, not counting abstentions.

Recommendation

The Board of Directors recommends a vote “FOR” approval, on an advisory basis, of Logitech’s compensation
philosophy, policies and practices as set out in the “Compensation Discussion and Analysis” section of the
Compensation Report for fiscal year 2010.

Appropriation of Retained Earnings Without Payment of a Dividend

Proposal 3

Proposal

The Board of Directors proposes that no dividend be distributed with respect to retained earnings for fiscal
year 2010 and that CHF 349,312,000 (US $321,877,000 based on exchange rates on June 30, 2010) of retained
earnings be carried forward.

(all numbers in thousands)

Retained earnings at beginning of fiscal year 2010 . . . . . . . . . .
Appropriation of retained earnings resolved by

the 2009 Annual General Meeting-Dividend . . . . . . . . . . . .
Attribution to reserve for treasury shares . . . . . . . . . . . . . . . . .
Net income for fiscal year 2010 . . . . . . . . . . . . . . . . . . . . . . . . .

CHF 354,924

CHF
—
CHF (30,122)
CHF 24,510

Retained earnings at the disposal of the Annual

General Meeting at the end of fiscal year 2010 . . . . . . . . . .

CHF 349,312

Explanation

Under Swiss law the use of retained earnings must be submitted to shareholders for approval or disapproval
at each annual general meeting. The retained earnings at the disposal of Logitech shareholders at the 2010 Annual
General Meeting are the earnings of Logitech International S.A., the Logitech parent holding company.

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The Board of Directors continues to believe that it is in the best interests of Logitech and its shareholders to
retain Logitech’s earnings for future investment in the growth of Logitech’s business, for share repurchases, and
for the possible acquisition of other companies or lines of business. Accordingly, the Board is proposing that no
dividend be paid to shareholders and all retained earnings at the disposal of the Annual General Meeting be carried
forward.

In the event of a negative vote on this proposal by shareholders, the Board of Directors will take the vote of
the shareholders into consideration, and call an extraordinary general meeting of shareholders for re-consideration
by shareholders of this proposal or a revised proposal.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast in person or by proxy at the Annual General

Meeting, not counting abstentions.

Recommendation

The Board of Directors recommends a vote “FOR” approval of the appropriation of retained earnings without

the payment of a dividend.

Amendments to articles of incorporation to implement the Swiss Book Entry Securities Act

Proposal 4

Proposal

The Board of Directors proposes shareholders approve an amendment to Article 4 of the Company’s Articles

of Incorporation to implement the Swiss Book Entry Securities Act.

Explanation

This proposal concerns a technical amendment to our Articles of Incorporation. The Board of Directors
proposes to adapt the Articles of Incorporation to the Swiss Book Entry Securities Act, which came into effect on
January 1, 2010. Under the proposed amendment, shareholders will no longer be entitled to require the Company
to issue share certificates, but the Company retains the right to do so. Registered shareholders may at any time
request the issue of a written statement of their shares. This proposed amendment corresponds to current practice
in Swiss public companies and reflects that under the Swiss Book Entry Securities Act certificated securities no
longer have legal advantages, in some exceptional circumstances, over uncertificated securities. The amendments
will not restrict the transferability of Logitech’s shares.

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The Board of Directors proposes approval of the following amendments (the French version of which is definitive)

to the Articles of Incorporation:

Current version
Article 4
The shares shall be registered. They shall be numbered
and shall bear the facsimile signatures of two members
of the Board of Directors.

Proposed new version
Article 4
The shares shall be registered.

The general meeting of shareholders shall have the
authority to convert the registered shares into bearer
shares by means of an amendment to the Articles of
Incorporation.

The Company shall have the authority to issue
certificates representing blocks of shares.

[deleted]

The Company may forego the printing of registered
shares and
issuing of securities. However, any
shareholder may require that the Company print and
issue stock certificates at any time and free of charge.
The Board of Directors shall set forth in regulations the
details and the requirements for the execution thereof.

Subject to the paragraph below, the registered shares
of the Company will be uncertificated securities (in
terms of the Swiss Code of Obligations) and book entry
securities (in terms of the Swiss Book Entry Securities
Act).

A shareholder registered in the Company’s shareholders’
register may request from the Company a statement
of the shareholder’s registered shares at any time.
Shareholders do not have a right to the printing and
delivery of share certificates. The Company may,
however, print and deliver certificates for shares at any
time at its option. The Company may also, at its option,
withdraw uncertificated shares from the custodian
system where they have been registered and, with the
consent of the shareholder, cancel issued certificates
that are returned to the Company.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes present in person or by proxy at the Annual General

Meeting.

Recommendation of the Board

The Board of Directors recommends a vote “FOR” approval to amend Article 4 of the Company’s Articles of

Incorporation to implement the Swiss Book Entry Securities Act.

Release of the Board of Directors and Executive Officers for Activities During Fiscal Year 2010

Proposal 5

Proposal

The Board of Directors proposes that shareholders release the members of the Board of Directors and Executive

Officers for liability for activities during fiscal year 2010.

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Explanation

As is customary for Swiss corporations and in accordance with Article 698, subsection 2, item 5 of the Swiss
Code of Obligations, shareholders are requested to release the members of the Board of Directors and the Executive
Officers from liability for their activities during fiscal year 2010. This release excludes liability claims brought by
the Company or shareholders against the members of the Board of Directors or Executive Officers for activities
carried out during fiscal year 2010 relating to facts that have been disclosed to shareholders, except that registered
shareholders that do not vote in favor of the proposal are not bound by the result for a period ending six months
after the vote.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast in person or by proxy at the Annual General
Meeting, not counting abstentions and not counting the votes of any member of the Board of Directors, any Logitech
executive officers or any votes represented by Logitech.

Recommendation

The Board of Directors recommends a vote “FOR” the proposal to release the members of the Board of

Directors and Executive Officers for liability for activities during fiscal year 2010.

Proposal 6

Elections to the Board of Directors

Our Board of Directors is presently composed of ten members. Each director serves a three-year term, with the
terms of the directors staggered so that not all directors are up for election in any one year. This is a recommended
practice under the Swiss Code of Best Practice for Corporate Governance, in order to help ensure continuity among
the Board.

At the recommendation of the Nominating Committee, the Board has nominated the five individuals below to
serve as directors for the three-year term beginning as of the Annual General Meeting on September 8, 2010. Four
of the nominees currently serve as a member of the Board of Directors. Their current terms expire on the date of
the Annual General Meeting on September 8, 2010.

There will be a separate vote on each nominee.

If any director nominee is unable or unwilling to serve as a nominee at the time of the Annual General
Meeting, registered shareholders at the meeting or represented at the meeting by the Independent Representative or
third parties may vote either for: (1) a substitute nominee designated by the present Board to fill the vacancy; or (2)
another substitute nominee. Under Swiss law Board members may only be appointed by shareholders and so if there
is no substitute nominee and the individuals below are elected the Board will consist of ten members. The Board
has no reason to believe that any of our nominees will be unwilling or unable to serve if elected as a director.

For further information on the Board of Directors, including the current members of the Board, the Committees
of the Board, the means by which the Board exercises supervision of Logitech’s executive officers, and other
information, please see “Corporate Governance and Board of Directors Matters” below.

6.1 Re-election of Mr. Daniel Borel

Proposal: The Board of Directors proposes that Mr. Daniel Borel be re-elected to the Board for a further

three-year term.

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Daniel Borel is a Logitech founder and served from May 1988 until January 1, 2008 as the Chairman of
the Board. From July 1992 to February 1998, he also served as Chief Executive Officer. He has held various other
executive positions with Logitech. Mr. Borel holds an MS degree in Computer Science from Stanford University in
California and a BE degree in Physics from the Ecole Polytechnique Fédérale, Lausanne, Switzerland. He serves
on the Board of Nestlé S.A. In addition, he serves on the Board of Fondation Defitech, a Swiss foundation which
contributes to research and development projects aimed at assisting the disabled, is the Chairman of the Board of
SwissUp, a Swiss educational foundation promoting higher learning, and serves as President of EPFL Plus, a Swiss
foundation which raises and manages funds for the Ecole Polytechnique Fédérale de Lausanne. He is 60 years old,
and is a Swiss citizen.

As a Logitech co-founder, and its former Chairman and CEO, Mr. Borel brings deep knowledge of and
a passion for Logitech, its people and its products, as well as senior leadership, industry, technical, and global
experience. As a director for Nestlé, Mr. Borel also provides cross-board experience.

6.2 Re-election of Ms. Sally Davis

Proposal: The Board of Directors proposes that Ms. Sally Davis be re-elected to the Board for a further

three-year term.

Sally Davis is the chief executive of BT Wholesale, a position she has held since 2007. She was the Chief
Portfolio Officer of British Telecom from 2005 to 2007. She had previously held senior executive roles within
BT since joining the company in 1999, including President, Global Products, Global Services from 2002 to 2005,
President, BT Ignite Applications Hosting from 2001 to 2002 and Director, Group Internet and Multimedia from
1999 to 2001. Before joining BT, Ms. Davis held leading roles in several major communications companies,
including Bell Atlantic in the United States and Mercury Communications in the United Kingdom. Ms. Davis is
a member of the Board of Directors of the Henderson Smaller Companies Investment Trust plc, a U.K. managed
investment trust. She holds a BA degree from University College, London. She is 56 years old and is a United
Kingdom citizen.

Ms. Davis’s experience as a CEO of a leading European telecommunications company, and her significant
technology product strategy and product portfolio knowledge, provides the Board with expertise in senior leadership,
technology, product strategy, and financial management.

Ms. Davis currently serves on the Audit Committee and the Nominating Committee of the Board. The Board

of Directors has determined that she is an independent Director.

6.3 Re-election of Mr. Guerrino De Luca

Proposal: The Board of Directors proposes that Mr. Guerrino De Luca be re-elected to the Board for a

further three-year term.

Guerrino De Luca has served as Chairman of the Logitech Board of Directors since January 2008. Previously,
Mr. De Luca served as Logitech’s President and Chief Executive Officer from February 1998, when he joined the
Company, to January 2008. He has been an executive member of the Board of Directors since June 1998. Prior to
joining Logitech, Mr. De Luca served as Executive Vice President of Worldwide Marketing for Apple, Inc. from
February 1997 to September 1997, and as President of Claris Corporation, a U.S. personal computing software
vendor, from May 1994 to February 1997. Prior to joining Claris, Mr. De Luca held various positions with Apple in
the United States and in Europe. Mr. De Luca holds a BS degree in Electronic Engineering from the University of
Rome, Italy. He is 57 years old and is an Italian and U.S. citizen.

As Logitech’s Chairman and former CEO, Mr. De Luca brings significant senior leadership, industry,
strategy, marketing and global experience to the Board and, like Mr. Borel, has a deep passion for and commitment
to Logitech, its people and its products.

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In addition to serving as Chairman of the Board of Directors, Mr. De Luca also serves as Chairman of the

Nominating Committee and of the Committee for Board Compensation.

6.4 Election of Mr. Neil Hunt

Proposal: The Board of Directors proposes that Mr. Neil Hunt be elected to the Board for a three-year term.

Neil Hunt is the Chief Product Officer of Netflix, Inc., a California-based company offering the world’s
largest subscription service streaming movies and TV episodes over the Internet and sending DVDs by mail. He has
been with Netflix since 1999, and served as its Vice President, Internet Engineering from 1999 until being promoted
to his current position in 2002. From 1997 to 1999, Mr. Hunt was Director of Engineering for Rational Software, a
California-based maker of software development tools, and he served in engineering roles at predecessor companies
from 1991 to 1997. Mr. Hunt holds a Doctorate in Computer Science from the University of Aberdeen, U.K. and a
Bachelors degree from the University of Durham, U.K. He is 48 years old and is a U.K. and U.S. citizen.

Mr. Hunt’s significant expertise in technology, product development leadership and strategy, and his experience
as a member of the senior leadership of a leading digital delivery company, provides the Board with expertise in
technology, product strategy, and senior leadership.

The Board of Directors has determined that Mr. Hunt would be an independent Director if elected.

6.5 Re-election of Ms. Monika Ribar

Proposal: The Board of Directors proposes that Ms. Monika Ribar be re-elected to the Board for a further

three-year term.

Monika Ribar is the President and Chief Executive Officer of the Panalpina Group, a Swiss freight forwarding
and logistics services provider. She has been a member of Panalpina’s Executive Board since February 2000,
and served as Panalpina’s Chief Financial Officer from June 2005 to October 2006, and as its Chief Information
Officer from February 2000 to June 2005. From June 1995 to February 2000, she served as Panalpina’s Corporate
Controller, and from 1991 to 1995 served in project management positions at Panalpina. Prior to joining Panalpina,
Ms. Ribar worked at Fides Group (now KPMG Switzerland), a professional services firm, serving as Head of
Strategic Planning, and was employed by the BASF Group, a German chemical products company. Ms. Ribar
holds a Masters degree in Economics and Business Administration from the University of St. Gallen, Switzerland.
Ms. Ribar also served as a Director of Julius Baer Group Ltd., a Swiss private bank, until May 2010. She is 50 years
old and is a Swiss citizen.

Ms. Ribar has significant executive experience with the strategic, financial, and operational requirements of
companies with global operations, and brings to our Board senior leadership, logistics industry, global and financial
experience. As a former director of a public company board, Ms. Ribar also provides cross-board experience.

Ms. Ribar currently serves as Chairman of the Audit Committee of the Board. The Board of Directors has

determined that she is an independent Director.

Voting Requirement to Approve Proposals

The affirmative “FOR” vote of a majority of the votes cast in person or by proxy at the Annual General

Meeting, not counting abstentions.

Recommendation

The Board of Directors recommends a vote “FOR” the election to the Board of each of the above nominees.

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Proposal 7

Re-election of PricewaterhouseCoopers S.A. as Auditors

Proposal

The Board of Directors proposes that PricewaterhouseCoopers S.A. be re-elected as auditors of Logitech

International S.A. for a one-year term.

Explanation

PricewaterhouseCoopers S.A., upon recommendation of the Audit Committee of the Board, is proposed for
reelection for a further year as auditors for Logitech International S.A. PricewaterhouseCoopers S.A. assumed
its first audit mandate for Logitech in 1988. Information on the fees paid by Logitech to PricewaterhouseCoopers
S.A., as well as further information regarding PricewaterhouseCoopers S.A., is set out below under the heading
“Independent Public Accountants” and “Report of the Audit Committee.”

A member of PricewaterhouseCoopers S.A. will be present at the Annual General Meeting, will have the

opportunity to make a statement, and will be available to respond to appropriate questions you may ask.

Voting Requirement to Approve Proposal

The affirmative “FOR” vote of a majority of the votes cast in person or by proxy at the Annual General

Meeting, not counting abstentions.

Recommendation

Our Board of Directors recommends a vote “FOR” the re-election of PricewaterhouseCoopers S.A. as

auditors of Logitech International S.A. for the fiscal year ending March 31, 2011.

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CORPORATE GOVERNANCE AND BOARD OF DIRECTORS MATTERS

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 Logitech’s Articles of Incorporation to its shareholders or
those that are delegated to the executive officers under the organizational regulations (also known as by-laws). The
Board makes resolutions through a majority vote of the members present at the meetings. In the event of a tie, the
vote of the Chairman decides.

Logitech’s Articles of Incorporation set the minimum number of directors at three. We had ten members of
the Board of Directors as of June 30, 2010. If all nominees to the Board presented in Proposal 6 are elected the size
of the Board will remain at ten.

BOARD OF DIRECTORS INDEPENDENCE

Each of our directors other than Daniel Borel, Guerrino De Luca and Gerald Quindlen qualifies as independent
in accordance with the published listing requirements of Nasdaq and Swiss corporate governance best practices
guidelines. The Board of Directors has determined that the following director nominees standing for election
or reelection at the 2010 Annual General Meeting qualifies as independent: Sally Davis, Neil Hunt and Monika
Ribar. The Nasdaq independence definition includes a series of objective tests, such as that the director is not an
employee of the company and has not engaged in various types of business dealings with the company. In addition,
as further required by Nasdaq rules, the Board has made a subjective determination as to each independent director
that no relationships exist which, in the opinion of the Board, would interfere with the exercise of independent
judgment in carrying out the responsibilities of a director. In making these determinations, the directors reviewed
and discussed information provided by the directors and the Company with regard to each director’s business and
personal activities as they may relate to Logitech and Logitech’s management. In particular, the Board considered
the following information in regard to the following directors:

Erh-Hsun Chang. Until April 2006 Mr. Chang served as Logitech’s Senior Vice President, Worldwide

Operations and General Manager, Far East.

Richard Laube. Mr. Laube is an executive officer of Nestlé S.A. Logitech Board member, co-founder and

former Chairman, Daniel Borel, serves as Chairman of the Compensation Committee of Nestlé S.A.

Monika Ribar. Ms. Ribar is the President and Chief Executive Officer of the Panalpina Group, a Swiss freight
forwarding and logistics services provider. In the ordinary course of its business, Logitech utilized the customs
brokerage services of Panalpina in Logitech’s business in the Americas. Logitech paid Panalpina approximately
$450 thousand for these services in fiscal year 2010. The business was awarded to Panalpina as the result of a
competitive bidding process.

In each case, the Board determined that none of these facts or relationships would interfere with the exercise
by Mr. Chang, Mr. Laube or Ms. Ribar of his or her independent judgment in carrying out the responsibilities of a
director.

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MEMBERS OF THE BOARD OF DIRECTORS

The current members of the Board of Directors, including their principal occupation, business experience,

and qualifications, are set out below.

Daniel Borel . . . . . . . . . . . . . . . . . . . . . .
60 Years Old
Director since 1988
Co-Founder and former CEO and
Chairman, Logitech International S.A.
Swiss national

Matthew Bousquette . . . . . . . . . . . . . . .
51 Years Old
Director since 2005
Chairman, Enesco LLC
U.S. national

Daniel Borel is a Logitech founder and served from May 1988 until
January 1, 2008 as the Chairman of the Board. From July 1992 to February
1998, he also served as Chief Executive Officer. He has held various
other executive positions with Logitech. Mr. Borel holds an MS degree
in Computer Science from Stanford University in California and a BE
degree in Physics from the Ecole Polytechnique Fédérale, Lausanne,
Switzerland. He serves on the Board of Nestlé S.A. In addition, he
serves on the Board of Fondation Defitech, a Swiss foundation which
contributes to research and development projects aimed at assisting the
disabled, is the Chairman of the Board of SwissUp, a Swiss educational
foundation promoting higher learning, and serves as President of EPFL
Plus, a Swiss foundation which raises and manages funds for the Ecole
Polytechnique Fédérale de Lausanne.

As a Logitech co-founder, and its former Chairman and CEO, Mr. Borel
brings deep knowledge of and a passion for Logitech, its people and its
products, as well as senior leadership, industry, technical, and global
experience. As a director for Nestlé, Mr. Borel also provides cross-
board experience.

Matthew Bousquette is the Chairman of the Board of Enesco LLC, a U.S.-
based producer of giftware and home and garden décor products. He is
the former president of the Mattel Brands business unit of Mattel, Inc.
Mr. Bousquette joined Mattel as senior vice president of marketing in
December 1993, and was promoted to successively more senior positions
at Mattel, including general manager of Boys Toys in July 1995, executive
vice president of Boys Toys in May 1998, president of Boys/Entertainment
in March 1999, and president of Mattel Brands from February 2003 to
October 2005. Mr. Bousquette’s previous experience included various
positions at Lewis Galoob Toys, Teleflora and Procter & Gamble.
Mr. Bousquette earned a BBA degree from the University of Michigan.

Mr. Bousquette brings senior leadership, strategic, financial and
marketing expertise to the Board from his current position as chairman
of a consumer products company, and his prior work as a senior
executive at Mattel.

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Erh-Hsun Chang . . . . . . . . . . . . . . . . . .
61 Years Old
Director since 2006
Former Senior Vice President,
Worldwide Operations and
General Manager, Far East,
Logitech
Taiwan national

Kee-Lock Chua . . . . . . . . . . . . . . . . . . .
49 Years Old
Director since 2000
President and Chief Executive Officer,
Vertex Group
Singapore national

Erh-Hsun Chang has been a member of the Board of Directors
since June 2006. Until April 2006 Mr. Chang was the Company’s
Senior Vice President, Worldwide Operations and General Manager,
Far East. Mr. Chang first joined Logitech in 1986 to establish its
operations in Taiwan. After leaving the Company in 1988, he returned
in 1995 as Vice President, General Manager, Far Eastern Area and
Worldwide Operations. In April 1997, Mr. Chang was named Senior
Vice President, General Manager, Far Eastern Area and Worldwide
Operations. Mr. Chang’s other business experience includes tenure as
Vice President, Manufacturing Consulting at KPMG Peat Marwick, a
global professional services firm, between 1991 and 1995, and as Vice
President, Sales and Marketing, Power Supply Division, of Taiwan
Liton Electronics Ltd., a Taiwanese electronics company, in 1995.
Mr. Chang holds a BS degree in Civil Engineering from Chung Yuang
University, Taiwan, an MBA degree in Operations Management from
the University of Dallas, and an MS degree in Industrial Engineering
from Texas A&M University. Mr. Chang is also Vice Chairman of the
Company’s subsidiary in Taiwan.

Having had an extensive career in operations, manufacturing, and sales
and marketing, particularly in Taiwan and China, Mr. Chang brings senior
leadership, manufacturing and operations experience, and substantial
expertise in doing business in Taiwan and China.

Kee-Lock Chua is president and chief executive officer of the Vertex
Group, a Singapore - headquartered venture capital group. Prior to
joining the Vertex Group, Mr. Chua was the president and an executive
director of Biosensors International Group, Ltd., a developer and
manufacturer of medical devices used in interventional cardiology and
critical care procedures. Previously, from 2003 to 2006, Mr. Chua was
a managing director of Walden International, a U.S.-headquartered
venture capital firm. From 2001 to 2003, Mr. Chua served as deputy
president of NatSteel Ltd., a Singapore industrial products company
active in Asia Pacific. From 2000 until 2001, Mr. Chua was the
president and chief executive officer of Intraco Ltd., a Singapore-listed
trading and distribution company. Prior to joining Intraco, Mr. Chua
was the president of MediaRing.com Ltd., a Singapore-listed company
providing voice-over-Internet services. Mr. Chua holds a BS degree in
Mechanical Engineering from the University of Wisconsin, and an MS
degree in Engineering from Stanford University in California. He also
serves on the Board of Biosensors, SHC Capital Ltd. and Yongmao
Holdings Limited (where he is lead independent director), all publicly
traded companies in Singapore, and on the board of directors of a
number of private companies, including as chairman of CrimsonLogic
Pte. Ltd., a Singapore-based e-government solution provider.

Mr. Chua has extensive investment and senior leadership experience, as
a venture capitalist in Asia and the United States, and also as the former
CEO of publicly-traded companies in Asia. He brings to the Board senior
leadership, and financial and global expertise. As a director of public
companies in Asia, and of private companies, he also provides cross-
board experience.

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Sally Davis . . . . . . . . . . . . . . . . . . . . . . .
56 Years Old
Director since 2007
CEO, BT Wholesale
British national

Guerrino De Luca . . . . . . . . . . . . . . . . .
57 Years Old
Director since 1998
Chairman of the Board of Directors of
Logitech International S.A.
Italian and U.S. national

Sally Davis is the chief executive of BT Wholesale, a position she has
held since 2007. She was the Chief Portfolio Officer of British Telecom
from 2005 to 2007. She had previously held senior executive roles within
BT since joining the company in 1999, including President, Global
Products, Global Services from 2002 to 2005, President, BT Ignite
Applications Hosting from 2001 to 2002 and Director, Group Internet
and Multimedia from 1999 to 2001. Before joining BT, Ms. Davis held
leading roles in several major communications companies, including
Bell Atlantic in the United States and Mercury Communications in the
United Kingdom. Ms. Davis is a member of the Board of Directors
of the Henderson Smaller Companies Investment Trust plc, a U.K.
managed investment trust. She holds a BA degree from University
College, London.

Ms. Davis’s experience as a CEO of a
leading European
telecommunications company, and her significant technology product
strategy and product portfolio knowledge, provides the Board with
expertise in senior leadership, technology, product strategy, and
financial management.

Guerrino De Luca has served as Chairman of the Logitech Board
of Directors since January 2008. He served from February 1998 to
January 2008 as Logitech’s President and Chief Executive Officer, and
has been a director since June 1998. Prior to joining Logitech, Mr. De
Luca served as Executive Vice President of Worldwide Marketing for
Apple, Inc. from February 1997 to September 1997, and as President
of Claris Corporation, a U.S. personal computing software vendor,
from May 1994 to February 1997. Prior to joining Claris, Mr. De Luca
held various positions with Apple in the United States and in Europe.
Mr. De Luca holds a BS degree in Electronic Engineering from the
University of Rome, Italy.

As Logitech’s Chairman and former CEO, Mr. De Luca brings
significant senior leadership, industry, strategy, marketing and global
experience to the Board, and, like Mr. Borel, a deep passion for and
commitment to Logitech, its people and its products.

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Richard Laube. . . . . . . . . . . . . . . . . . . .
54 Years Old
Director since 2008
Executive Vice President,
Nestlé S.A
Swiss and U.S. national

Robert Malcolm . . . . . . . . . . . . . . . . . .
58 Years Old
Director since 2007
Former President, Global Marketing,
Sales and Innovation,
Diageo plc
U.S. national

Richard Laube is Executive Vice President of Nestlé S.A., Chief
Executive Officer of Nestlé Nutrition and a member of the Nestlé
Executive Board. He joined Nestlé in April 2005 as Deputy Executive
Vice President, Corporate Business Development, and was appointed
Deputy Executive Vice President, Chief Executive Officer of Nestlé
Nutrition in November 2005. He was appointed Executive Vice
President in 2008. Prior to joining Nestlé he served from 1999 to
2004 as President, Roche Consumer Health, and served on the Roche
Corporate Executive Committee from 2001 to 2004. Previously, he
was employed by Procter & Gamble from 1980 to 1998, serving in
successively more senior roles in Switzerland, the United States,
Japan, Germany and Brazil. Mr. Laube holds MA and BA degrees in
Organizational Development and Evaluation Research from Boston
University. Mr. Laube serves as Chairman of the Board of Directors
of Life Ventures S.A., Nutrition-Wellness Venture AG, The Gerber
Life Insurance Company and Jenny Craig Affiliated Companies, all of
which are Nestlé subsidiaries.

As a senior executive at one of the world’s best-known consumer
products companies, with significant experience in business strategy
and marketing, Mr. Laube brings senior leadership, brand marketing
and global experience to the Board.

Robert Malcolm is retired from Diageo plc, the global premium drinks
company, where he served until December 2008 as the president of
Global Marketing, Sales and Innovation. Reporting to the chief
executive officer and a member of the Diageo Executive Committee,
Mr. Malcolm had worldwide responsibility for the marketing, sales and
innovation function for Diageo and direct responsibility for strategy,
equity management, innovation and global orchestration for global
priority brands. Mr. Malcolm joined Diageo in 1999 and his previous
appointments at the company included Global Marketing director and
Global Scotch Whiskey director at UDV, a Diageo company. He was
appointed president of Global Marketing, Sales and Innovation in 2000.
Previous to his employment at Diageo, Mr. Malcolm held various posts
at The Procter & Gamble Company from 1975 through 1999, including
vice president and general manager for Beverages for Europe, Middle
East and Africa; vice president and general manager Arabian Peninsula;
and vice president and general manager for Personal Cleaning Products
USA. Mr. Malcolm holds a BS degree and an MBA degree from the
University of Southern California.

Having an extensive career in marketing at world-class consumer
products companies, Mr. Malcolm brings to the Board significant
brand marketing, global and senior leadership experience.

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Gerald Quindlen . . . . . . . . . . . . . . . . . .
51 Years Old
Director since 2008
President and Chief Executive Officer,
Logitech International S.A.
U.S. national

Monika Ribar . . . . . . . . . . . . . . . . . . . .
50 Years Old
Director since 2004
President and CEO, Panalpina Group
Swiss national

Gerald Quindlen has served as Logitech’s President and Chief Executive
Officer since January 2008. He has been a member of the Board of
Directors since September 2008. Mr. Quindlen joined Logitech as
Senior Vice President, Worldwide Sales and Marketing in October
2005. From August 1987 to September 2004, Mr. Quindlen worked for
Eastman Kodak Company where he was Vice President of Global Sales
and Operations for the Consumer and Professional Imaging Division,
and previously held senior sales or marketing management positions
in the United States, Japan and Asia Pacific. From September 2004 to
September 2005, Mr. Quindlen was a private consultant. Prior to his 17
year tenure at Eastman Kodak, he worked for Mobil Oil Corporation in
engineering. Mr. Quindlen holds a BS degree in chemical engineering
from Villanova University in Pennsylvania, and an MBA degree in
Finance from the University of Pennsylvania’s Wharton School.

As our CEO and a senior executive, Mr. Quindlen brings to the Board
significant senior leadership, sales and marketing, consumer products
and global experience. As CEO, Mr. Quindlen has direct responsibility
for Logitech’s strategy and operations.

Monika Ribar is the President and Chief Executive Officer of the
Panalpina Group, a Swiss freight forwarding and logistics services
provider. She has been a member of Panalpina’s Executive Board since
February 2000, and served as Panalpina’s Chief Financial Officer
from June 2005 to October 2006, and as its Chief Information Officer
from February 2000 to June 2005. From June 1995 to February 2000,
she served as Panalpina’s Corporate Controller, and from 1991 to
1995 served in project management positions at Panalpina. Prior to
joining Panalpina, Ms. Ribar worked at Fides Group (now KPMG
Switzerland), a professional services firm, serving as Head of Strategic
Planning, and was employed by the BASF Group, a German chemical
products company. Ms. Ribar holds a Masters degree in Economics and
Business Administration from the University of St. Gallen, Switzerland.
Ms. Ribar also served as a Director of Julius Baer Group Ltd., a Swiss
private bank, until May 2010.

Ms. Ribar has significant executive experience with the strategic,
financial, and operational requirements of companies with global
operations, and brings to our Board senior leadership, logistics industry,
global and financial experience. As a former director of a public
company board, Ms. Ribar also provides cross-board experience.

Other than the current employment and involvement noted above, no other Logitech Board member currently
has material supervisory, management, or advisory functions outside Logitech. None of the Company’s directors
holds any official functions or political posts.

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ELECTIONS TO THE BOARD OF DIRECTORS

Directors are elected at the Annual General Meeting of Shareholders, upon proposal of the Board of Directors.

The proposals of the Board of Directors are made following recommendations of the Nominating Committee.

Shareholder Recommendations and Nominees

Under our Articles of Incorporation, one or more registered shareholders who together represent shares
representing at least the lesser of (i) one percent of our issued share capital or (ii) an aggregate par value of one
million Swiss francs may demand that an item be placed on the agenda of a meeting of shareholders, including a
nominee for election to the Board of Directors. A request to place an item on the meeting agenda must be in writing,
describe the proposal and be received 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 sent to:
Secretary to the Board of Directors, Logitech International S.A., Rue du Sablon 2-4, 1110 Morges, Switzerland, or
c/o Logitech Inc., 6505 Kaiser Drive, Fremont, CA 94555, USA.

Under the Company’s Articles of Incorporation only registered shareholders are recognized as shareholders
of the company. 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 and Answers about the Logitech 2010 Annual 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. The Nominating Committee considers it appropriate not to
have a formal policy for consideration of such recommendations because the evaluation of potential members of
the Board of Directors is by its nature a case-by-case process, depending on the composition of the Board at the
time, the needs and status of the business of the Company, and the experience and qualification of the individual.
Accordingly, the Nominating Committee would consider any such recommendations on a case-by-case basis in their
discretion, and, if accepted for consideration, would evaluate any such properly submitted nominee in consideration
of the membership criteria set forth under “Director Qualifications” below. Shareholder recommendations to the
Board of Directors should be sent to the above address.

Board Composition

The Nominating Committee is responsible for reviewing and assessing with the Board the appropriate skills,
experience, and background sought of Board members in the context of our business and the then-current membership
on the Board. The Nominating Committee has not formally established any specific, minimum qualifications that
must be met by each candidate for the Board of Directors or specific qualities or skills that are necessary for one or
more of the members of the Board of Directors to possess. Similarly, the Nominating Committee does not have a
formal policy on considering diversity in identifying candidates for election or re-election to the Board of Directors.
However, we do not expect or intend that each director will have the same background, skills, and experience; we
expect that Board members will have a diverse portfolio of backgrounds, skills, and experiences. One goal of this
diversity is to assist the Board as a whole in its oversight and advice concerning our business and operations.

The review and assessment of Board candidates and the current membership of the Board by the Nominating
Committee and the Board includes numerous diverse factors, such as independence; understanding of and experience
in technology, finance, and marketing; international experience; age; and gender and ethnic diversity. The priorities
and emphasis of the Nominating Committee and of the Board with regard to these factors change from time to time
to take into account changes in Logitech’s business and other trends, as well as the portfolio of skills and experience
of current and prospective Board members.

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Listed below are key skills and experience that we currently consider important for our directors to have in
light of our current business and structure. We do not expect each director to possess every attribute. The directors’
biographies note each director’s relevant experience, qualifications, and skills relative to this list.

•

Senior Leadership Experience. Directors who have served in senior leadership positions are important
to Logitech, because they bring experience and perspective in analyzing, shaping, and overseeing the
execution of important operational and policy issues at a senior level.

Financial Expertise. Knowledge of financial markets, financing and funding operations, and accounting
and financial reporting processes is important because it assists our directors in understanding, advising,
and overseeing Logitech’s structure, financial reporting, and internal control of such activities.

Industry and Technical Expertise. Because we develop and manufacture hardware and software
products, ship them worldwide, and sell to both major computer manufacturers and consumer electronics
distributors and retailers, expertise in hardware and software, and 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. Because we are a consumer products company, directors who have brand
marketing 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 and Asia, can
provide a useful business and cultural perspective regarding many significant aspects of our business.

Identification and Evaluation of Nominees for Directors

Our Nominating Committee uses a variety of methods for identifying and evaluating nominees for director.
Our Nominating 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 needs. Candidates may come to the attention of the Nominating Committee through
shareholders, management, current members of the Board of Directors or search firms. The evaluation of these
candidates may be based solely upon information provided to the committee or may also include discussions with
persons familiar with the candidate, an interview of the candidate or other actions the committee deems appropriate,
including the use of paid third parties to review candidates. Neil Hunt, one of the nominees for election to the Board
at the September 2010 Annual General Meeting, was identified as a potential nominee to the Board by a third party
executive search firm retained by the Company at the direction of the Nominating Committee.

TERMS OF OFFICE OF DIRECTORS

Each director is elected individually by a separate vote of shareholders for a term of three years and is eligible
for re-election until their seventieth birthday. Directors may not seek re-election after they have reached 70 years of
age, unless the Board of Directors adopts a resolution to the contrary. A member of the Board who reaches 70 years
of age during the term of his or her directorship may remain a director until the expiration of the term. A director’s
term of office as Chairman coincides with their term of office as a director. A director may be indefinitely re-
elected as Chairman, subject to the age limit mentioned above.

Although the Company’s Articles of Incorporation and Organizational Regulations do not explicitly require
this, the terms of office of the directors are staggered. Consequently, all directors will not run for re-election at a
single annual general meeting.

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The year of appointment and remaining term of office as of March 31, 2010 for each Director are as

follows:

Name
Daniel Borel(1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette(1) . . . . . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Sally Davis(1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Guerrino De Luca(2)(3) . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Robert Malcolm(1)(3) . . . . . . . . . . . . . . . . . . . . . . . . .
Gerald Quindlen(2) . . . . . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar(1)(3). . . . . . . . . . . . . . . . . . . . . . . . . . .

Year First Appointed
1988
2005
2006
2000
2007
1998
2008
2007
2008
2004

Year Current Term Expires
Annual General Meeting 2010
Annual General Meeting 2011
Annual General Meeting 2012
Annual General Meeting 2012
Annual General Meeting 2010
Annual General Meeting 2010
Annual General Meeting 2011
Annual General Meeting 2010
Annual General Meeting 2011
Annual General Meeting 2010

(1) Non-executive member of the Board of Directors.

(2) Executive member of the Board of Directors.

(3) The term of each of Mr. Borel, Ms. Davis, Mr. De Luca and Ms. Ribar expires at the 2010 Annual General
Meeting, and each is being presented for re-election to the Board of Directors at that meeting. Mr. Malcolm’s
term also expires at the 2010 Annual General Meeting and he will be retiring from the Board at that
meeting.

BOARD RESPONSIBILITIES AND STRUCTURE

The Board of Directors is responsible for supervising the management of the business and affairs of the
Company. In addition to the non-transferable powers and duties of boards of directors under Swiss law, the Logitech
Board of Directors also has the following responsibilities:

•

the signatory power of its members;

the approval of the budget submitted by the Chief Executive Officer;

the approval of any type of investment or acquisition not included in the approved budgets;

the approval of any expenditure of more than $10 million not specifically identified in the approved
budgets; and

the approval of the sale or acquisition, including related borrowings, of the Company’s real estate.

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The Board of Directors has delegated the management of the Company to the Chief Executive Officer and
the executive officers, except where Swiss law or the Company’s Articles of Incorporation or Organizational
Regulations (By-Laws) provide differently.

Board Leadership Structure

The Board has since 1997 had a general practice that the positions of Chairman of the Board and CEO should
be held by separate persons as an aid in the Board’s oversight of management. Since 1997, the Chairman has been
a former CEO of the Company and has served as a full-time senior executive. Logitech believes that there are
advantages to having a former CEO as Chairman, for matters such as leadership continuity; day-to-day assistance
to and oversight of the CEO and other executive officers; and facilitating communications and relations between
the Board, the CEO, and other senior management.

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Mr. De Luca, the Company’s former CEO and current Chairman, has served in that role since January 2008.
The Chairman of the Board is appointed on an annual basis, at the Board meeting coinciding with the Annual
General Meeting of Shareholders. The Secretary of the Board of Directors is also appointed at the same meeting.
As of June 30, 2010, the Secretary was Ms. Catherine Valentine, the Company’s Vice President, Legal and General
Counsel.

Role of the Chairman and of the Chief Executive Officer

Guerrino De Luca and Gerald Quindlen, the Company’s President and Chief Executive Officer, are executive
members of the Board of Directors. Mr. De Luca assumes a leading role in mid- and long-term strategic planning
and the selection of top-level management, and he supports major transaction initiatives of Logitech.

Mr. Quindlen manages the day-to-day operations of Logitech, with the support of the other executive officers.

The Chief Executive Officer has, in particular, the following powers and duties:

•

defining and implementing short and medium term strategies;

preparing the budget, which must be approved by the Board of Directors;

reviewing and certifying the Company’s annual report;

appointing, dismissing and promoting any employees of Logitech other than executive officers and the
head of the internal audit function;

taking immediate measures to protect the interests of the Company where a breach of duty is suspected
from executive officers until the Board has decided on the matter;

carrying out Board resolutions;

reporting regularly to the Chairman of the Board of Directors on the activities of the business;

preparing supporting documents for resolutions that are to be passed by the Board of Directors;
and

deciding on issues brought to his attention by executive officers.

The detailed authorities and responsibilities of the Board of Directors, the Chief Executive Officer and the
executive officers are set out in the Company’s Articles of Incorporation and Organizational Regulations. Please
refer to http://ir.logitech.com for copies of these documents.

Lead Independent Director

As appointed by the Board, Mr. Chua serves as Lead Independent Director. The responsibilities of the Lead
Independent Director include chairing meetings of the non-executive directors and serving as the presiding director
in performing such other functions as the Board may direct.

Means by Which the Board of Directors Supervises Executive Officers

The Board of Directors is regularly informed on developments and issues in Logitech’s business, and monitors

the activities and responsibilities of the executive officers in various ways.

•

At each regular Board meeting the Chief Executive Officer reports to the Board of Directors on
developments and important issues. The Chief Executive Officer also provides regular updates to the
Board members regarding Logitech’s business between the dates of regular Board meetings.

The offices of Chairman and Chief Executive Officer are separated, to help ensure balance between
leadership of the Board and leadership of the day-to-day management of Logitech.

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•

Executive officers and other members of senior management, at the invitation of the Board, regularly
attend portions of meetings of the Board and its Committees to report on the financial results of Logitech,
its operations, performance and outlook, and on areas of the business within their responsibility,
including risk management and management information systems, as well as other business matters.
For further information on participation by executive officers and other members of senior management
in Board and Committee meetings please refer to “Board Committees” above.

There are regular quarterly closed sessions of the non-executive, independent members of the Board
of Directors, led by the Lead Independent Director, where Logitech issues are discussed without the
presence of executive or non-independent members of the Board or executive officers.

The Board holds quarterly closed sessions, where all Board members meet without the presence of non-
Board members, to discuss matters appropriate to such sessions, including organizational structure and
the hiring and mandates of executive officers.

There are regularly scheduled reviews at Board meetings of Logitech strategic and operational issues,
including discussions of issues placed on the agenda by the non-executive members of the Board of
Directors.

The Board reviews and approves significant changes in Logitech’s structure and organization,
and is actively involved in significant transactions, including acquisitions, divestitures and major
investments.

All non-executive Board members have access, at their request, to all internal Logitech information.

The head of the Internal Audit function reports to the Audit Committee.

The Board’s Role in Risk Oversight

One of the Board’s functions is oversight of risk management at Logitech. “Risk” is inherent in business, and
the Board seeks to understand and advise on risk in conjunction with the activities of the Board and the Board’s
committees.

The largest risk in any business typically is that the products and services it offers will not be met by customer
demand, because of poor strategy, poor execution, lack of competitiveness, or some combination of these or other
factors. The Board implements its risk oversight responsibilities, at the highest level, through regular reviews of
the Company’s business, product strategy and competitive position, and through management and organizational
reviews, evaluations and succession planning.

Within the broad strategic framework 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 to control risk.

The Board’s risk oversight role is implemented at the full Board level, and also in individual Board
Committees. The full Board receives specific reports on enterprise risk management, in which the identification
and control of risk are the primary 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 of the Company. The
Compensation Committee oversees issues related to the design and risk controls of compensation programs. The
Audit Committee oversees issues related to internal control over financial reporting and Logitech’s risk tolerance
in cash-management investments.

Board Meetings

The Chairman sets the agenda for Board meetings, in coordination with the CEO. Any member of the 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 of the items on the agenda.

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The Chairman and Chief Executive Officer recommend executive officers or other members of senior
management who, at the invitation of the Board, attend portions of each quarterly Board meeting to report on
areas of the business within their responsibility. Infrequently, the Board may also receive reports from external
consultants such as executive search or succession experts or outside legal experts to assist the Board on matters
it is considering.

Each regularly scheduled quarterly Board meeting lasts a full day to a day and a half and all directors participate
in person except in special individual circumstances. Special meetings of the Board may be held by telephone or
video-conference and the duration of such meetings varies depending on the subject matters considered.

Emergency Resolutions

In case of emergency, the Chairman of the Board may have the power to pass resolutions which would
otherwise be the responsibility of the Board. Decisions by the Chairman of the Board made in this manner are
subject to ratification by the Board of Directors at its next meeting or by way of written consent. No such emergency
resolutions were passed during fiscal year 2010.

Independent Director Sessions

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 2010, separate sessions of the independent directors were held five times.

Board Effectiveness

Our Board of Directors performs an annual self-assessment to evaluate its effectiveness in fulfilling its

obligations.

BOARD COMMITTEES

The Board has standing Audit, Compensation, and Nominating Committees and a Committee for Board
Compensation to assist the Board in carrying out its duties. At each quarterly Board meeting each applicable Board
Committee reports to the full Board on the substance of the Committee’s meetings, if any, during the quarter.

Each Committee has a written charter approved by the Board. The chair of each Committee determine the
Committee’s meeting agenda. The Board Committee members receive materials in advance of Committee meetings
allowing them to prepare for the meeting. The Charters of each Board Committee are available on Logitech’s Investor
Relations website at http://ir.logitech.com. Each of the Audit, Compensation and Nominating Committees has the authority
to engage outside experts, advisors and counsel to the extent it considers appropriate to assist the committee in its work.
The current members of the committees are identified in the following table.

Director
Daniel Borel . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . .
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . .
Guerrino De Luca . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . .
Robert Malcolm . . . . . . . . . . . . . . . . . . . .
Gerald Quindlen . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . .

Audit

Compensation

Nominating

Board
Compensation

Chair

X
X

X
X
Chair

Chair

X
X

Chair

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Attendance at Board, Committee and Annual Shareholders’ Meetings

In fiscal year 2010 the Board met seven times, five of which were regularly scheduled quarterly meetings and
two of which were special meetings. In addition, the Audit Committee met ten times, the Compensation Committee
met six times, the Nominating Committee met two times and the Committee for Board Compensation met once.
We expect each director to attend each meeting of the Board and the committees on which he or she serves, and
also expect them to attend the Annual General Meeting of shareholders. Each director attended the 2009 Annual
General Meeting. All directors attended at least 75% of the meetings of the Board and the Committees on which he
or she served. Detailed attendance information for Board and Board Committee meetings during fiscal year 2010
is as follows:

Board of
Directors
7
7
7
6
7
7
7
7
7
7
7

Audit
Committee
10
n/a
10
4(1)

n/a
10
n/a
n/a
n/a
n/a
10

Compensation
Committee
6
n/a
6
n/a
6
n/a
n/a
6
6
n/a
n/a

Nominating
Committee
2
n/a
n/a
n/a
2
2
2
n/a
n/a
n/a
n/a

Committee
For Board
Compensation
1
n/a
n/a
n/a
n/a
n/a
1
n/a
n/a
1
n/a

Number of meetings held . . . . . . . . . . . .
Daniel Borel . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . .
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . .
Guerrino De Luca . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . .
Robert Malcom . . . . . . . . . . . . . . . . . . . .
Gerald Quindlen . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . .

(1) Member after September 1, 2009

Audit Committee

The Audit Committee is appointed by the Board to assist the Board in monitoring the Company’s financial
accounting, controls, planning and reporting. It is composed of only non-executive, independent Board members.
Among its duties, the Audit Committee:

•

reviews the adequacy of the Company’s internal controls;

reviews the independence, fee arrangements, audit scope, and performance of the Company’s independent
auditors, and recommends the appointment or replacement of independent auditors to the Board of
Directors;

reviews and approves all non-audit work to be performed by the independent auditors;

reviews the scope of Logitech’s internal auditing and the adequacy of the organizational structure and
qualifications of the internal auditing staff;

reviews, before release, the quarterly results and interim financial data; and

reviews, before release, the audited financial statements and “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” contained in the Company’s annual reporting, and
recommends that the Board of Directors submit these items to the shareholders’ meeting for approval.

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The Audit Committee currently consists of Ms. Ribar (Chair), Mr. Bousquette, Mr. Chang and Ms. Davis. The
Board of Directors has determined that each member of the Audit Committee meets the independence requirements
of the Nasdaq Stock Market listing standards and the applicable rules and regulations of the SEC. In addition, the
Board has determined that Ms. Ribar and Mr. Bousquette are audit committee financial experts as defined by the
applicable rules and regulations of the SEC.

The Audit Committee met ten times in fiscal year 2010. Four meetings were held in person on the day
prior to the regularly scheduled quarterly Board meeting, for two to three hours, and six were held by telephone,
for approximately an hour. The Committee received reports and presentations before the meetings in order to
allow them time to prepare adequately. At the Committee’s invitation, the Company’s Chief Financial Officer or
Acting Chief Financial Officer, Corporate Controller, Vice President of Internal Audit and General Counsel or
Associate General Counsel attended each meeting, and representatives from the Company’s independent auditors,
PricewaterhouseCoopers, also attended each meeting. Other members of management also participated in certain
meetings. Four meetings also included separate sessions with representatives of the independent auditors, and two
meetings included a separate session with the Vice President of Internal Audit.

Compensation Committee

The Compensation Committee reviews and approves, or recommends to the Board for approval, the
compensation of executive officers and Logitech’s compensation policies and programs, including share-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 also has
the authority to grant equity incentive awards to employees without further Board approval. The Committee is
composed of only non-executive, independent Board members.

The Compensation Committee currently consists of Mr. Bousquette, Chairman, Mr. Chua, Mr. Laube and
Mr. Malcolm. The Board of Directors has determined that each member of the Committee meets the independence
requirements of the Nasdaq Stock Market listing standards.

The Compensation Committee met six times in fiscal year 2010. At the Committee’s invitation, the Company’s
Vice President of Worldwide Human Resources attended each meeting, and the Senior Director of Worldwide
Compensation & Benefits attended four meetings. The Company’s General Counsel attended two meetings. Four
meetings were held in person and two by teleconference and each meeting lasted approximately one hour and a half.
In addition to its meetings, the Committee took three actions for approval by consent during fiscal year 2010.

Please refer to the Company’s Compensation Report for further information on the Compensation Committee’s

criteria and process for evaluating executive compensation.

Committee for Board Compensation

The Committee for Board Compensation establishes the compensation of the non-executive directors. This
Committee currently consists of Mr. De Luca and Mr. Quindlen. The Committee for Board Compensation met
once in fiscal year 2010. The meeting was held in person and lasted approximately one hour. At the Committee’s
invitation, the Company’s Senior Director of Worldwide Compensation and Benefits attended the meeting.

Nominating Committee

The Nominating Committee is composed of at least three members, with the Chairman of the Board acting as
chair for this Committee and the other two members being non-executive, independent directors. Among its duties,
the Nominating Committee:

•

evaluates the composition of the Board of Directors and its Committees, determines future requirements
and makes recommendations to the Board of Directors for approval;

determines on an annual basis the desired Board qualifications and expertise and conducts searches for
potential directors with these attributes;

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•

evaluates and makes recommendations 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 and the selection of Board Committee chairs.

The Nominating Committee may and typically does retain an executive search firm to assist with the
identification and evaluation of prospective Board nominees based on criteria established by the Committee. For
information on the Nominating Committee’s policies with respect to director nominations please see “Elections to
the Board of Directors” above.

The Nominating Committee currently consists of Mr. De Luca, Chairman, Mr. Chua and Ms. Davis. Mr.
De Luca is not an independent director under applicable Nasdaq rules. The Board of Directors has determined
that Mr. Chua and Ms. Davis meet the independence requirements of the Nasdaq Stock Market listing standards.
Upon the Committee’s recommendation of nominees for election to the Board of Directors, the nominees are
presented to the full Board. Nominees are then selected by a majority of the independent members of the Board.
The Nominating Committee met twice in fiscal year 2010. Both meetings were held in person and each meeting
lasted approximately one hour.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

None of the members of the Compensation Committee has been an officer or employee of Logitech. None
of our executive officers serves on the board of directors or compensation committee of a company that has an
executive officer that serves on our Board of Directors.

COMMUNICATIONS WITH THE BOARD OF DIRECTORS

Shareholders may contact the Board of Directors about bona fide issues or questions about Logitech by sending

an email to generalcounsel@logitech.com or by writing the Corporate Secretary at the following address:

Logitech International S.A.
Attn: Corporate Secretary
Rue du Sablon 2-4
1110 Morges, Switzerland

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AS OF JUNE 30, 2010

In accordance with the proxy statement rules under U.S. securities laws, the following table shows the number

of our shares beneficially owned as of June 30, 2010 by:

•

each person or group known by Logitech, based on filings pursuant to Section 13(d) or (g) under the
U.S. Securities Exchange Act of 1934 or notifications to the Company under applicable Swiss laws, to
own beneficially more than 5% of our outstanding shares as of June 30, 2010;

each director and each nominee for director;

the persons named
(the “named executive officers”); and

the Summary Compensation Table

the Compensation Report

all directors and current executive officers as a group.

Beneficial Owner
5% Shareholders:
Entities affiliated with Fidelity(4) . . . . . . . . . . . . . . . . . . . . . 10,568,978
Thornburg Investment Management(5) . . . . . . . . . . . . . . . . . 11,922,284

Number
of Shares
Owned(1)

Shares that May
be Acquired
Within 60 Days(2)

Total
Beneficial
Ownership

Total as a
Percentage
of Shares
Outstanding(3)

— 10,568,978
— 11,922,284

6.0%
6.8%

Directors/Nominees, not including the
Chairman or the CEO:
Daniel Borel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,203,158
10,000
Matthew Bousquette . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
148,000
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18,484
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,202
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57,490
Richard Laube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,460
Robert Malcolm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
5,000
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

— 11,203,158
75,000
478,000
73,484
37,202
67,490
38,460
—
100,000

65,000
330,000
55,000
30,000
10,000
30,000
—
95,000

Named Executive Officers:
Guerrino De Luca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gerald Quindlen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erik Bardman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tom Fergoda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mark J. Hawkins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
David Henry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current Directors and Executive Officers,

164,018
2,803
—
158
—
6,056
12,555
27,383

1,019,288
545,000
—
47,500
—
53,750
483,750
583,750

1,183,306
547,803
—
47,658
—
59,806
496,305
611,133

6.4%
*
*
*
*
*
*
—
*

0.7%
*
—
*
—
*
*
*

as a Group(15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,677,111

3,431,788

15,108,899

8.6%

Less than 1%

(1) Each director or executive officer has sole voting and investment power over the shares reported in accordance

with SEC rules, subject to community property laws where applicable.

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(2)

Includes shares represented by vested, unexercised options as of June 30, 2010 and options and restricted stock
units that are expected to vest within 60 days after June 30, 2010. These shares are deemed to be outstanding
for the purpose of computing the percentage ownership of the person holding the options or restricted stock
units, but are not treated as outstanding for the purpose of computing the percentage ownership of any other
person.

(3) Based on 175,691,987 shares outstanding on June 30, 2010.

(4) Based on information set forth in a Schedule 13G filed with the SEC on February 16, 2010 by FMR LLC
reporting ownership of Logitech’s shares as of December 31, 2009. According to the notification direct and
indirect subsidiaries of FMR LLC hold 10,568,978 shares as of such date on behalf of funds managed by and
clients of direct and indirect subsidiaries of FMR LLC. FMR LLC is the parent holding company of Fidelity
Management & Research Company, investment manager for US mutual funds, and Fidelity Management
& Trust Company, a US state chartered bank which acts as a trustee or investment manager of various
pension and trust accounts. The address of the entities affiliated with Fidelity is 82 Devonshire Street, Boston,
Massachusetts 02109.

(5) Based solely on information supplied by Thornburg Investment Management in a notification to the Company
on May 22, 2008 provided under Swiss law reporting ownership of Logitech’s shares as of April 25, 2008.
According to the notification Thornburg Investment Management holds 11,922,284 shares as of such date as
an investment manager on behalf of its investment clients. The address of Thornburg is 119 East Marcy Street,
Santa Fe, New Mexico 87501.

SHARE OWNERSHIP GUIDELINES

Members of the Board of Directors and executive officers and other officers who report directly to the CEO

are subject to share ownership guidelines.

Directors are required to own at least 5,000 Logitech shares under guidelines adopted by the Board in June
2006. Directors are required to achieve this ownership within three years of joining the Board, or, in the case of
directors serving at the time the guidelines were adopted, within three years of the effective date of adoption of
the guidelines. The guidelines will be adjusted to reflect any share splits or other capital adjustments, and will be
re-evaluated by the Board from time to time. As of June 30, 2010, each director had either satisfied these ownership
guidelines or had time remaining to do so.

The Compensation Committee adopted share ownership guidelines for executive officers and other officers
who report directly to the CEO effective September 2008. These guidelines require the CEO to hold a number of
Logitech shares with a market value equal to 3 times his annual base salary. Officers who report to the CEO must
hold a number of Logitech shares with a market value equal to 2 times annual base salary. Officers subject to the
guidelines are required to achieve the guideline within three years of being appointed to the position making them
subject to the guideline, or, in the case of such officers serving at the time the guidelines were adopted, within three
years of the effective date of adoption of the guidelines. The guidelines will be adjusted to reflect any share splits
or other capital adjustments, and will be re-evaluated by the Compensation Committee from time to time. Up to
50% of the guideline may be met through the net value of vested, unexercised stock options. If the guideline is not
met within 3 years, the CEO must hold 100% of his after – tax shares resulting from option exercises or other equity
incentive awards until the guideline is reached, and all other CEO direct reports must hold at least 50% of the net
shares resulting from option exercises or other equity incentive awards until the guideline is reached. As of June 30,
2010, each applicable officer had either satisfied these ownership guidelines or had time remaining to do so.

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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

OUR POLICIES

It is our policy that all employees must not engage in any activities which could conflict with Logitech’s
business interests, which could adversely affect its reputation or which could interfere with the fulfillment of the
responsibilities of the employee’s job, which at all times must be performed in the best interests of Logitech. In
addition, Logitech employees may not use their position with Logitech, or Logitech’s information or assets, for
their personal gain or for the improper benefit of others. These policies are included in our Conflict of Interest
and Business Ethics Policy, which covers our directors, executive officers and other employees. If in a particular
circumstance the Board concludes that there is or may be a perceived conflict of interest, the Board will instruct
our Legal department to work with our relevant business units to determine if there is a conflict of interest. Any
waivers to these conflict rules with regard to a director or executive officer require the prior approval of the Audit
Committee.

NASDAQ RULES AND SWISS BEST CORPORATE GOVERNANCE PRACTICES

Nasdaq rules defining “independent” director status also govern conflict of interest situations, as do Swiss
best corporate governance principles published by economiesuisse, a leading Swiss business organization. As
discussed above, the Board of Directors has determined that each of our directors other than Mr. Borel, Mr. De
Luca and Mr. Quindlen qualifies as “independent” in accordance with the Nasdaq rules. The Nasdaq rules include
a series of objective tests that would not allow a director to be considered independent if the director has or has had
certain employment, business or family relationships with the company. The Nasdaq independence definition also
includes a requirement that the Board review the relations between each independent director and the company
on a subjective basis. In accordance with that review, the Board has made a subjective determination as to each
independent director that no relationships exist that, in the opinion of the Board, would interfere with the exercise
of independent judgment in carrying out the responsibilities of a director.

SEC RULES

In addition to the Logitech and Nasdaq policies and rules described above, the SEC has specific disclosure
requirements covering certain types of transactions involving Logitech and a director or executive officer or persons
and entities affiliated with them. There were no such transactions in fiscal year 2010 that require disclosure. Since
April 1, 2009, we have not been a party to, and we have no plans to be a party to, any transaction or series of
similar transactions in which the amount involved exceeded or will exceed $120,000 and in which any current
director, executive officer, holder of more than 5% of our shares, or any member of the immediate family of any
of the foregoing, had or will have a direct or indirect material interest other than in connection with the following
transactions: We have entered into an indemnification agreement with each of our directors and executive officers.
The indemnification 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 year 2010: any of our directors or executive officers; any nominee for election as a director; any member
of the immediate family of any of our directors, executive officers or nominees for director; any corporation or
organization of which any of our directors, executive officers or nominees is an executive officer or partner or
is, directly or indirectly, the beneficial owner of 10% or more of any class of equity securities (except trade debt
entered into in the ordinary course of business); 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.

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INDEPENDENT AUDITORS

Under Logitech’s Articles of Incorporation the shareholders elect or re-elect the Company’s independent

auditors each year at the Annual General Meeting.

Logitech’s independent auditors are currently PricewaterhouseCoopers S.A., Lausanne, Switzerland.
PricewaterhouseCoopers S.A. assumed its first audit mandate for Logitech in 1988. They were re-elected by
the shareholders as Logitech’s auditors at the Annual General Meeting in September 2009. For purposes of U.S.
securities law reporting, PricewaterhouseCoopers LLP, San Jose, California, serves as the Company’s independent
registered public accounting firm. Together, PricewaterhouseCoopers S.A. and PricewaterhouseCoopers LLP are
referred to as “PwC.”

As appointed by the Board, the Audit Committee is responsible for supervising the performance of the
Company’s independent auditors, and recommends the election or replacement of the independent auditors to the
Board of Directors.

Representatives of PwC are invited to attend all regular meetings of the Audit Committee. During fiscal year
2010, PwC representatives attended all ten Audit Committee meetings. The Committee met separately four times
with representatives of PwC in closed sessions of Committee meetings.

On a quarterly basis, PwC reports on the findings of their audit and/or review work including their
audit of Logitech’s internal control over financial reporting. These reports include their assessment of
critical accounting policies and practices used, alternative treatments of financial information discussed
with management, and other material written communication between PwC and management. At each
quarterly Board meeting the Audit Committee reports to the full Board on the substance of the Committee
meetings during the quarter. On an annual basis, the Audit Committee approves PwC’s audit plan and
evaluates the performance of PwC and its senior representatives in fulfilling its responsibilities. Moreover,
the Audit Committee recommends to the Board the appointment or replacement of the independent auditors,
subject to shareholder approval. The Audit Committee reviews the annual report provided by PwC as to
its independence.

AUDIT AND NON-AUDIT FEES

In addition to the audit services PwC provides with respect to Logitech’s annual audited consolidated financial
statements and other filings with the Securities and Exchange Commission, PwC has provided non-audit services
to Logitech in the past and may provide them in the future. Non-audit services are services other than those
provided in connection with an audit or a review of Logitech’s financial statements. The Audit Committee of the
Board of Directors determined that the rendering of non-audit services by PwC was compatible with maintaining
their independence.

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The following table sets forth the aggregate fees billed to us for the audit and other services provided by PwC

during the fiscal years ended March 31, 2010 and 2009 (in thousands):

Audit fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Audit-related fees(2) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax fees(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All other fees(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2010
$2,795
406
617
7
$3,825

2009
$2,655
109
420
8
$3,192

(1) Audit fees. This category represent fees for professional services provided in connection with the audit of our
financial statements, the audit of our internal control over financial reporting, and review of our quarterly
financial statements and audit services provided in connection with other statutory or regulatory filings.

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(2) Audit-related fees. This category represents consultation on issues such as acquisition accounting, due
diligence services in connection with acquisitions, review and testing of the impact of new accounting
pronouncements, and other topics.

(3) Tax fees. This category represents fees for tax compliance, assistance with tax audits, tax advice and tax

planning.

(4) All other fees. This category primarily represents fees for government grant audits and database licenses.

PRE-APPROVAL PROCEDURES AND POLICIES

The Audit Committee pre-approves all audit and non-audit services provided by PwC. This pre-approval
must occur before the auditor is engaged. The Audit Committee pre-approves categories of non-audit services and
a target fee associated with each category. Usage of PwC fees against the target is presented to the Audit Committee
at each in-person quarterly meeting, with additional amounts requested as needed. Services that last longer than a
year must be re-approved by the Audit Committee.

The Audit Committee can delegate the pre-approval ability to a single independent member of the Audit
Committee. The delegate must communicate all services approved at the next scheduled Audit Committee meeting.
The Audit Committee or its delegate can pre-approve types of services to be performed by PwC with a set dollar
limit per type of service. The Vice President, Corporate Controller is responsible for ensuring that the work
performed is within the scope and dollar limit as approved by the Audit Committee. Management must report to
the Audit Committee the status of each project or service provided by PwC.

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REPORT OF THE AUDIT COMMITTEE

The Audit Committee is responsible for overseeing Logitech’s accounting and financial reporting processes
and audits of Logitech’s financial statements. The Audit Committee acts only in an oversight capacity and relies on
the work and assurances of management, which has primary responsibility for Logitech’s financial statements and
reports, Logitech’s internal auditors, as well as PwC, Logitech’s independent auditors, including Pricewaterhouse
Coopers LLP, San Jose, California, its independent registered public accounting firm for purposes of U.S. securities
law reporting, which is responsible for expressing an opinion on the conformity of Logitech’s audited financial
statements to generally accepted accounting principles and attesting to the effectiveness of Logitech’s internal
control over financial reporting.

The Board of Directors has adopted a written charter for the Audit Committee. A copy of the Charter can
be found on our website at http://ir.logitech.com. To view the charter, select “Audit Committee Charter” under
“Corporate Governance.”

The Audit Committee has discussed with the independent auditors the matters required to be discussed by the
Statement of Auditing Standards No. 61, as amended (AICPA, Professional Standards, Vol. 1. AU Section 380), as
adopted by the Public Company Accounting Oversight Board in Rule 3200T.

The Audit Committee has received the written disclosures and the letter from the independent accountant
required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent
accountant’s communications with the Audit Committee concerning independence, and has discussed with the
independent accountant the independent accountant’s independence.

Based on the reviews and discussions referred to above, the Committee recommended to the Board of Directors
that the audited consolidated financial statements be included in Logitech’s Annual Report on Form 10-K for the
fiscal year ended March 31, 2010.

Submitted by the Audit Committee of the Board

Monika Ribar, Chairman
Matthew Bousquette
Erh-Hsun Chang
Sally Davis

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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16 of the Exchange Act requires Logitech’s directors, executive officers and any persons who own
more than 10% of Logitech’s shares, 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) forms that
they file. As a matter of practice, our administrative staff assists our executive officers and directors in preparing
initial ownership reports and reporting ownership changes, and typically files these reports on their behalf.

Based on our review of the copies of such reports furnished to us and written representations from the
directors and executive officers, we believe that all Section 16(a) filing requirements were met in fiscal year 2010.

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INTRODUCTION

COMPENSATION REPORT 2010

This Compensation Report contains information on Logitech compensation philosophy and practices, the
background for decisions, and the results of decisions with respect to Logitech’s named executive officers and its
Board members.

This Compensation Report has been designed to comply with the proxy statement rules under U.S. securities
laws as well as Swiss regulations and best corporate governance practices. This Report is an integrated part of our
Invitation and Proxy Statement for our 2010 Annual General Meeting.

Compensation Discussion and Analysis

EXECUTIVE COMPENSATION OBJECTIVES AND PHILOSOPHY

Logitech’s executive compensation programs have been designed to:

•

be competitive with comparable companies in the industry and in the region where the executive is
based;

maintain a balance between fixed and variable compensation and place a significant portion of total
compensation at risk based on the Company’s performance, while maintaining controls over inappropriate
risk-taking;

align executive compensation with shareholders’ interests by tying a significant portion of compensation
to increasing share value;

support a performance-oriented environment that rewards superior performance; and

reflect the Compensation Committee’s assessment of an executive’s role and past performance through
base salary and short-term cash incentives, and his or her potential for future contribution to Logitech
through long-term equity incentive awards.

An important component of Logitech’s executive compensation philosophy is to pay executives at or
near the median of other companies that compete for similar executive talent, and that individual performance
and importance to Logitech should be reflected in the compensation of individual executives. However, while
compensation is a central part of attracting, retaining and motivating the best executives and employees, we believe
it is not the sole or exclusive reason why exceptional executives or employees choose to join and stay at Logitech,
or why they work hard to achieve results for shareholders. In this regard, both the Compensation Committee and
management believe that providing a working environment and opportunities in which executives and employees
can develop, express their individual potential, and make a difference, are also a key part of Logitech’s success in
attracting, retaining and motivating executives and employees.

TERM USED IN THIS COMPENSATION REPORT

In this Compensation Report, we refer to our “named executive officers” in many places. This term includes

the following individuals:

•

Gerald Quindlen, our Chief Executive Officer.

Erik Bardman, our Chief Financial Officer starting October 2009.

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•

Guerrino De Luca, our Chairman.

Tom Fergoda, our acting Principal Financial Officer from April 2009 to October 2009. Mr. Fergoda is
not otherwise considered a Logitech executive officer.

• Mark J. Hawkins, our Chief Financial Officer during part of April 2009.

•

The three other most highly compensated individuals who were serving as executive officers of Logitech
at the end of fiscal year 2010.

DETERMINING TOTAL EXECUTIVE COMPENSATION

Role of the Compensation Committee

The Compensation Committee reviews and approves our compensation programs, including the specific

compensation of our Chairman, our President and Chief Executive Officer, and our other executive officers.

Under the Compensation Committee’s charter, the Committee has the authority to engage its own advisors
(including compensation consultants) to assist it in carrying out its responsibilities. In February 2008 the Committee
retained Frederic W. Cook & Co., Inc. (Fred Cook) to provide analysis, advice and guidance with respect to executive
compensation. Fred Cook only provides services to the Compensation Committee, and has not provided and is not
providing other services to the Company or its management. The Committee consulted Fred Cook with respect to
general executive compensation issues in fiscal year 2010. The Committee has determined it will engage Fred Cook
every two years to develop specific executive compensation analyses and recommendations. In the other years the
Committee will review analyses and recommendations prepared by management using the same survey data for
Logitech’s peer group as used by Fred Cook.

Role of Executive Officers in Compensation Decisions

While the Compensation Committee sets the compensation of our CEO and other executive officers, it looks
to management to make recommendations to the Committee with respect to both overall guidelines and specific
compensation decisions.

Management’s fiscal year 2010 executive officer compensation proposals to the Compensation Committee
were primarily developed by Logitech’s Vice President of Worldwide Human Resources and its compensation
department, in consultation with Guerrino De Luca, Logitech’s Chairman and Gerald Quindlen, Logitech’s President
and Chief Executive Officer (other than with respect to their own proposed compensation). The proposed base salary,
bonus targets and equity incentive award recommendation for Mr. De Luca for fiscal year 2010 were developed
by Logitech’s Vice President of Worldwide Human Resources and its compensation department, in consultation
with Gerald Quindlen. The proposed base salary, bonus targets and equity incentive award recommendation for
Mr. Quindlen for fiscal year 2010 were developed by Logitech’s Vice President of Worldwide Human Resources
and its compensation department, in consultation with Guerrino De Luca. As part of the annual personnel review
and succession planning process, Mr. Quindlen also provides the Board and the Compensation Committee with
his perspective on the performance of Logitech’s executive officers, and Mr. De Luca provides the Board with his
perspective on the performance of Mr. Quindlen.

Once the Compensation Committee received the analysis and recommendations from management, it made
all decisions regarding executive officer fiscal year 2010 compensation without Mr. De Luca, Mr. Quindlen or any
executive officer present. The Committee considered, but was not in any way bound by, the recommendations made
by management.

Overview of Factors Considered by Committee

The Compensation Committee considers a variety of factors when determining total executive compensation,

including:

•

Competitive considerations.

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•

Subjective elements, such as the scope of the executive’s role, experience and skills, the individual’s
performance during the fiscal year and potential for future contribution to Logitech.

The performance of Logitech.

Accrued and realized gains from past equity incentive awards.

Competitive considerations

We attempt to compensate our executive officers competitively relative to industry peers. Both peer group
and broader industry compensation survey data is used by our Compensation Committee to develop Logitech’s
executive compensation, as well as to assist the Compensation Committee in the evaluation of the design of bonus
plan and equity compensation programs.

The companies in Logitech’s peer group were selected in March 2008 based on (i) involvement in the PC-
based consumer electronics industry, or (ii) revenues approximately equal to Logitech’s and a presence near Silicon
Valley in the San Francisco Bay Area. Based on the most recent completed four fiscal quarters as of March 2010,
Logitech ranked at approximately the 25th percentile among the peer group for revenues, operating income and
market capitalization.

Fred Cook reviewed the peer group composition in March 2010 and recommended, and the Committee

determined, that it remains appropriate for Logitech.

The peer group consists of the following companies:

3Com Corporation
Activision Blizzard, Inc.
Agilent Technologies, Inc.
Advanced Micro Devices, Inc.
Autodesk, Inc.
BMC Software, Inc.
Brocade Communications Systems, Inc.
Cadence Design Systems, Inc.

Cypress Semiconductor

Corporation
Electronic Arts, Inc.
Intuit Inc.
Lexmark International, Inc.
McAfee, Inc.
NCR Corporation
NetApp, Inc.
Novell, Inc.

NVIDIA Corporation
Polycom, Inc.
SanDisk Corporation
Sybase, Inc.
Symantec Corporation
Teradata Corporation
Verisign, Inc.
Western Digital Corporation

Although Logitech is a Swiss company, Logitech primarily competes for executive management talent with
technology companies in the United States, and particularly in the high-technology area of Silicon Valley. As a
result, the peer group consists primarily of U.S. public technology companies.

In addition, to assist the Committee in its review of executive compensation, Logitech’s compensation
department provides compensation data compiled from widely recognized high-technology executive compensation
surveys.

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We generally seek to be at the median for total compensation, and for each of the elements of compensation,
for our executives against the companies with whom we compete for executive talent, based on peer group and
survey data.

Effect of individual performance

The differences in compensation among the individual named executive officers, as disclosed in the Summary
Compensation Table below, were primarily related to market compensation in each position, based on peer group
and survey data reviewed in prior fiscal years, a subjective assessment of the executive’s impact on the Company’s
past and future performance, succession planning and retention. The Compensation Committee does not review
executive officers’ individual performance against pre-established individual performance metrics devised by the
Compensation Committee, between the Compensation Committee and the respective executive, or otherwise.

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Effect of realized compensation on future pay decisions

The Compensation Committee considers actual realized compensation received in determining if our
compensation programs are meeting their objectives of pay-for-performance and retention. The Compensation
Committee generally does not reduce compensation plan targets based on realized compensation, as we do not want
to create a disincentive for exceptional performance. However, the possible cash compensation increases and the
amount of equity incentive awards may be adjusted based on actual realized compensation.

Other factors

For newly hired executives, in addition to market compensation for the position, consideration is given to the
base salary of the individual at his or her prior employment and any unique personal circumstances that motivated
the executive to leave that prior position and join Logitech.

In determining Mr. De Luca’s and Mr. Quindlen’s 2010 compensation the Compensation Committee reviewed
and considered the same data as for other named executive officers, as discussed above, but also considered the
following:

• Mr. De Luca’s and Mr. Quindlen’s fiscal year 2009 base salary, target bonus and equity incentive

compensation; and

• Mr. De Luca’s and Mr. Quindlen’s total equity incentive position and the total intrinsic value of vested

and unvested equity incentives held by them.

Timing of compensation decisions

Executive cash compensation (base salary plus target bonus) is typically reviewed at the Compensation
Committee’s March meeting in an effort to align cash compensation changes to the fiscal year, which begins in
April. Compensation increases are not automatic each year and typically are largely dependent upon relative pay
rates for the industry and Company and individual performance. However, in fiscal year 2010 base salary and target
bonus opportunities for named executive officers were frozen over those in fiscal year 2009 due to economic and
market conditions. At the March meeting the Committee typically considers the equity incentive award grant for the
Chairman and the CEO, although the Committee has recently determined that, for fiscal year 2011, the Committee
will consider equity incentive awards for the Chairman and the CEO at the same time as those for other executive
officers, as part of the Company’s annual employee equity incentive grant cycle. However, the Committee may also
make executive compensation decisions at other times during the fiscal year in the event of an executive new hire
or promotion or other reasons.

ELEMENTS OF COMPENSATION / EXECUTIVE COMPENSATION PRACTICES

The principal components of our executive compensation programs are:

•

Base salary.

Short-term cash incentive awards.

Long-term equity incentive awards.

Our executive officers are also eligible to participate in our health and benefits plans, retirement savings
plans, and our employee share purchase plans, which are generally available to our employees. We also provide
limited perquisites, as described below.

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The following table outlines our objectives for each of the principal components of executive compensation.

Element of Compensation

Objective

Base salary

• Reward individuals’ current contributions to the company
• Compensate individuals for their expected day-to-day

performance

Short-term cash incentive awards

• Align executive compensation with annual and semi-annual

performance

• Make a significant portion of the executive’s yearly cash
compensation variable and subject to the achievement of
company business goals.

• Motivate and reward the executive for above-target performance
• Support retention of the executive
• Directly align executive and shareholder interests
• Provide a direct incentive for future performance

Long-term equity incentive awards

Pay Mix

In determining how we allocate an executive’s total compensation package among base salary, short-term
cash incentives and long-term equity incentives, we emphasize compensation elements that reward performance
against measures that correlate closely with increases in shareholder value. Accordingly, a significant portion of our
executive compensation is at-risk, including the short-term cash incentive awards and the majority of our long-term
equity incentive awards. Our CEO and other executive officers have a higher percentage of at-risk compensation
(and thus greater upside potential and downside risk) relative to Logitech’s other employees. We believe this is
appropriate because our executive officers have the greatest influence on Logitech’s performance.

The charts below indicate the percentage of total compensation costs in fiscal year 2010 represented by
base salary, short-term cash incentives (bonus payments), and long-term equity incentive awards for Guerrino
De Luca, Gerald Quindlen and all other named executive officers. All underlying amounts are taken from the
Summary Compensation Table.

Guerrino De Luca

Gerald Quindlen

All Other Named Executive Officers

Base salary
35%

Short-term
cash incentive
awards
37%

Short-term
cash incentive
awards
57.5%

Equity
incentive
awards
7.5%

Base salary
23%

Equity incentive
awards
40%

Short-term cash
incentive awards
28%

Base salary
28%

Equity
incentive awards
44%

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Base salary

Base salary is the fixed portion of executive pay and is set to reward individuals’ current contributions to

Logitech and compensate them for their expected day-to-day performance.

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In setting base salary levels for fiscal year 2010, the Compensation Committee primarily considered the
uncertain economic and market conditions, particularly at the beginning of the fiscal year, and the executive’s
fiscal year 2009 base salary, in leaving base salaries for named executive officers unchanged over those in fiscal
year 2009.

In aggregate, base salaries for the named executive officers for fiscal year 2010 are at or above the median of
the peer group, based on peer group data available in March 2010. However, the base salaries for Mr. Quindlen and
Mr. Bardman are below the median.

Short-term cash incentive awards

Short-term cash incentive awards link cash incentives to Logitech’s annual and semi-annual performance,
make a significant portion of the executive’s yearly cash compensation variable and subject to the achievement
of Logitech business goals, and motivate and reward executives for above-target performance. In fiscal year 2010
Logitech named executive officers were eligible for short-term cash incentive awards under a program established
under the Logitech Management Performance Bonus Plan (the “Bonus Plan”).

Under the Bonus Plan named executive officers and others selected for participation were eligible to receive
cash bonuses based on the performance of the Company or the participants’ business or functional unit, or both,
against fiscal year 2010 target performance measures.

Performance measures for fiscal year 2010 bonus program

In fiscal year 2010 the bonus program was based on the following performance measures:

Performance Measure

Operating Income

Cash Flow from Operations

Why It is Used
Generating an increase in per-share value
for investors is a priority, as operating
profit allows Logitech to re-invest in R&D,
operations and people for future success.

Strong cash flow provides more financial
in periods of
flexibility, particularly
economic uncertainty.

Market Share

increases

To prioritize progress against competitors,
particularly amidst economic uncertainty.
Market
demonstrate
continued appeal of products to consumers,
and positions for continued growth once
economic uncertainty passes. Also used
because net sales, as a practical matter,
were difficult to project beyond the very
short term at the beginning of the fiscal
year, when the bonus program design was
approved.

Measurement Basis
Generally Accepted Accounting
(GAAP), excluding
Principles
restructuring expenses.

Generally Accepted Accounting
(GAAP), excluding
Principles
any foreign currency exchange
gains or losses.

sales

Weighted
in Logitech
product categories in eight key
countries, based on available
sales data, based on a 12-month
trailing average.

The Compensation Committee’s adoption of cash flow and market share performance measures, in addition
to operating income, was a change from prior fiscal years, in which net sales and operating income were the
performance measures. The changes to the performance measures were primarily driven by economic and market
conditions at the beginning of the fiscal year, when the program was designed and approved by the Compensation
Committee.

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The bonus program in fiscal year 2010 for named executive officers was measured on a semi-annual basis,
although for the Chairman and the CEO the payout under the program was on an annual, and not semi-annual,
basis. For all named executive officers the operating income and cash flow from operations goals in the 2010 bonus
program were set equal to Logitech’s semi-annual business plans for fiscal year 2010 as approved by the Board in
May and October, 2009, except that part of the goals for Junien Labrousse were based on the performance of the
product group and part of the goals for Werner Heid were based on the performance of the sales and marketing
function. The market share goal was determined by the Committee in May 2009 based on a review of historical
market share data and expected product performance and introductions. Please see further details below under the
heading “Bonus Plan performance targets and results for fiscal year 2010.”

Timing of bonus payments

If earned, the bonus is paid to the Chairman and the Chief Executive Officer in one installment in May for the
fiscal year ended March 31, and the semi-annual bonuses are generally paid to the other named executive officers
in November and May for the two fiscal six-month performance periods. Bonus amounts were earned and paid to
the named executive officers as set out in the Summary Compensation Table and the Grants of Plan-Based Awards
Table below.

Formula used

The formula for determining the bonus awards in fiscal year 2010 was as follows:

Executive’s eligible
wages

Executive’s target
bonus percentage(1) X

Bonus Plan funding
percentage(2)

Annual or semi-annual
bonus award

(1) Expressed as a percentage of base salary.

(2) Based on achievement against target performance measures.

The target performance measures under the Bonus Plans for fiscal year 2010 are disclosed in the table below

under the heading “Bonus Plans performance targets and results for fiscal year 2010.”

Named executive officer bonus targets

Each of Guerrino De Luca, our Chairman, and Gerald Quindlen, our CEO, was eligible for an annual target
bonus of 100% of his base salary under the fiscal year 2010 bonus program. The maximum possible bonus for both
Mr. De Luca and Mr. Quindlen was 269% of base salary.

All of Logitech’s other named executive officers were eligible for annual target bonuses ranging from 40%
to 75% of their base salaries, depending on their positions, with a maximum possible bonus of 300% of their base
salaries in the first performance period and 238% in the second performance period. In each case, the annual
target bonus was divided into semi-annual bonus targets.

The minimum performance required before any bonus payment is made under the fiscal year 2010 bonus program
was generally 80% of the target performance, except that the minimum performance for Logitech operating income
in the first half of fiscal year 2010 was 85% of the target performance, and the minimum performance for Logitech
market share in fiscal year 2010 was 97% of the target performance. In addition, it was a minimum performance
condition for the payout of any bonus to Mr. De Luca or Mr. Quindlen that Logitech have positive operating income in
at least two of the four fiscal quarters during fiscal year 2010. For all other named executive officers, it was a minimum
performance condition for the payout of any bonus in respect of a six-month performance period that Logitech have
positive operating income in one of the two fiscal quarters during the performance period.

The target bonus opportunities for named executive officers in fiscal year 2010 are in aggregate below the

median of the peer group, based on peer group data available in March 2010.

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Bonus Plan performance targets and results for fiscal year 2010

The performance targets and actual results from the Bonus Plan in fiscal year 2010 for our named executive

officers are set out in the following table:

Participant
Guerrino De Luca, . . . . . .
Gerald Quindlen

FY10
Measurement
Period

1st half
FY 2010

2nd half
FY 2010

Performance Measure(1)
Operating
Income (37.5%)
Market Share (25%)
Cash Flow (37.5%)
Operating
Income (37.5%)
Market Share (37.5%)
Cash Flow (25%)

Erik Bardman . . . . . . . . . . 2nd half
FY 2010

Tom Fergoda, . . . . . . . . . .
David Henry

1st half
FY 2010

2nd half
FY 2010

Werner Heid . . . . . . . . . . . 1st half
FY 2010

2nd half
FY 2010

Junien Labrousse . . . . . . . 1st half
FY 2010

2nd half
FY 2010

Operating
Income (37.5%)
Market Share (37.5%)
Cash Flow (25%)

Operating
Income (37.5%)
Market Share (25%)
Cash Flow (37.5%)

Operating
Income (37.5%)
Market Share (37.5%)
Cash Flow (25%)

Operating
Income (20%)
Market Share (35%)
Cash Flow (20%)
Sales Contribution
Margin (25%)(2)

Market Share (37.5%)
Cash Flow (25%)
Sales Contribution
Margin (37.5%)(2)

Operating
Income (20%)
Market Share (35%)
Cash Flow (20%)
PG Contribution
Margin (25%)(3)

Market
Share (37.5%)
Cash Flow (25%)
PG Contribution
Margin (37.5%)(3)

Minimum
Performance
Target
($s in millions)
(29.6)

Performance
Target
($s in millions)
(25.2)

Maximum
Performance
Target
($s in millions)

Actual
Achievement
($s in millions)

(11.4)

(7.8)

Performance/
Funding
188.0%

43.7%
20.0
59.8

43.7%
51.7

58.1

43.7%
51.7

45.1%
25.0
74.8

45.0%
64.6

72.6

45.0%
64.6

46.9%
50.0
134.6

46.8%

129.2

44.3%

129.1
86.4

43.8%

232.4

88.2%
300.0%
119.0%

80.0%
200.0%
164.8%

130.6

86.4

119.0%

46.8%

129.2

43.8%

232.4

80.0%
200.0%
124.6%

(29.6)

(25.2)

(11.4)

(7.8)

188.0%

43.7%
20.0

58.1

43.7%
51.7

(29.6)

43.7%
20.0
105.8

43.7%
51.7
189.5

45.1%
25.0

72.6

45.0%
64.6

46.9%
50.0

44.3%

129.1

130.6

86.4

46.8%

129.2

43.8%

232.4

88.2%
300.0%
205.1%
119.0%

80.0%
200.0%
124.6%

(25.2)

(11.4)

(7.8)

188.0%

45.1%
25.0
132.3

45.1%
64.6
236.9

46.9%
50.0
264.6

46.9%

129.2
308.0

44.3%

129.1
153.3

43.8%

232.4
284.3

88.2%
300.0%
116.0%

157.5%
80.0%
200.0%
150.0%

136.3%

(29.6)

(25.2)

(11.4)

(7.8)

188.0%

43.7%
20.0
103.9

45.1%
25.0
129.9

46.9%
50.0
259.7

44.3%

129.1
149.5

43.7%

45.1%

46.9%

43.8%

51.7
193.8

64.6
242.2

129.2
314.9

232.4
295.4

88.2%
300.0%
115.1%

157.3%
80.0%

200.0%
162.0%

140.8%

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(1) Operating income excludes restructuring expense.

(2) Sales Group Contribution Margin consists of Logitech gross profit less sales operating expenses and a capital

charge.

(3) Product Group Contribution Margin, which consists of Logitech gross profit less Product Group operating

expenses.

The cash bonus awards earned and paid in respect of fiscal year 2010 were based solely on the formula

funding results prescribed by the above measures.

Long-term equity incentive awards

During fiscal year 2010 the Compensation Committee granted our named executive officers long-term equity
incentive awards in the form of stock options, performance-based restricted stock units, or PRSUs, and, for the first
time, time-based restricted stock units, or RSUs, in order to align their incentives with the long-term interests of
our shareholders, to support retention of the executives, to provide competitive total compensation packages, and to
provide a direct incentive for future performance.

Stock Options. Stock options provide the opportunity to purchase shares at a fixed exercise price, allowing the
recipient to benefit from increases in share price from the date of grant. The options have a four-year vesting period,
with the options vesting in four equal annual increments, to encourage a long-term perspective and to encourage
key employees to remain at Logitech. All options granted to named executive officers to date have an exercise price
equal to the fair market value of Logitech’s shares on the effective grant date.

PRSUs. The performance-based restricted stock units, or PRSUs, provide the executive officer the opportunity,
if the minimum performance threshold is met, to receive Logitech shares based on the relative total shareholder
return, or TSR, of Logitech shares against the Nasdaq 100 index over the two-year performance period. If threshold
performance is achieved, the number of shares awarded is pro-rated according to performance (see “Structure of
the PRSUs”).

The Compensation Committee adopted the use of PRSUs for executive officers during fiscal year 2009 in part
to align Logitech’s equity compensation for executives more closely with the peer group, and also to supplement
the use of option grants and to further align the interests of executive officers with shareholders. The PRSUs are
intended to:

•

Link compensation to key financial metrics of growth and profitability.

Support pay-for-performance philosophy and retention efforts.

Be less dilutive to shareholders than stock options.

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The Compensation Committee has determined that PRSUs granted in the future will vest over a three-year

period.

RSUs. Time-based restricted stock units, or RSUs, provide for the issuance of shares at a future date upon
vesting of the RSUs. RSUs issued to executive officers and other employees have a four-year vesting period,
with the RSUs vesting in four equal annual increments. The Committee adopted the use of RSUs to increase the
retention value of Logitech’s equity incentives, to remain competitive, as RSUs are increasingly used by other high-
technology companies, and to be less dilutive to shareholders than stock options.

The Committee anticipates that performance-based awards such as stock options and PRSUs will represent
the majority of equity incentive awards granted to executive officers in the future, with RSUs being a smaller
portion, in order to prioritize pay-for-performance over retention.

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Determination of long-term equity incentive awards

The Compensation Committee is responsible for approving who should receive equity incentive awards, when
the awards should be made, the exercise price per share and the number of shares or other rights to be granted.
Long-term equity incentive awards may be granted only by the Compensation Committee or the full Board of
Directors. The Compensation Committee regularly reports its activity, including approvals of grants, to the Board.
We do not have any program, plan, or practice to select equity compensation (including stock option) grant dates in
coordination with the release of material non-public information, nor do we time the release of information for the
purpose of affecting value. We do not backdate options or grant options retroactively.

Long-term equity incentive awards granted in fiscal year 2010

During fiscal year 2010 the number of shares subject to equity incentive awards granted to Logitech’s named
executive officers was determined by the Compensation Committee based on the accrued and unrealized gains
from past equity incentive grants, prior grant practices, peer group and broader industry survey data on annual
and cumulative delivered value of grants to executive officers, anticipated compensation expense and shareholder
dilution, and review of trends in equity incentive compensation design and practices among high technology
companies. The Committee considered trends data as well as the relatively low accrued value of past grants in
particular in adopting the use of RSUs for executive officers, including the named executive officers, in fiscal year
2010.

Grants to Mr. Quindlen. Mr. Quindlen received a stock option grant for 100,000 shares on April 1, 2009 as
part of his fiscal year 2010 annual compensation as CEO. Mr. Quindlen received a performance restricted stock
unit grant for 40,000 shares, assuming 100% target performance, and a restricted stock unit grant for 20,000 shares,
on June 29, 2009, as part of the annual stock focal process. Slightly less than half of Mr. Quindlen’s total target
compensation in fiscal year 2010 was provided through long-term equity incentive awards. The total number of
equity incentives granted to Mr. Quindlen was based upon the mix of compensation components, the Compensation
Committee’s consideration of the accrued value of past grants to Mr. Quindlen, as well as the Compensation
Committee’s estimate of Mr. Quindlen’s potential for future contributions to Logitech’s success.

Grant to Mr. De Luca. Mr. De Luca received a stock option grant for 30,000 shares on April 1, 2009 as part of
his fiscal year 2010 compensation as Chairman. Mr. De Luca did not receive a grant of PRSUs, RSUs or any other
equity incentive grants during fiscal year 2010.

Grants to Other Named Executive Officers. The equity incentive award grants made to all Logitech named
executive officers during fiscal year 2010 are set out in the Grants of Plan-Based Awards in Fiscal Year 2010 table
below. The value of long-term equity incentive awards in the form of stock options, PRSUs and RSUs granted
during fiscal year 2010 was in aggregate below the peer group, based on March 2010 compensation review data.

Timing of grants

Long-term equity incentive award grants to executive officers are typically and predominantly made at
regularly scheduled, predetermined meetings of the Compensation Committee. These meeting are scheduled up to
18 months in advance and take place before the regularly scheduled, predetermined meetings of the full Board. On
limited occasions, grants may be made at an interim meeting of the Compensation Committee or by consent, for the
purpose of approving the hiring and compensation package for newly hired or promoted executives. The Committee
approved a new hire grant to Erik Bardman, the Company’s Chief Financial Officer, by consent in October 2009.
The timing of interim meetings or consents, if they occur, is based on the activity which generated the need for the
meeting or the consent, not Logitech’s share price. In fiscal year 2010 grants were made to new hires and promoted
employees below the executive officer level at regularly scheduled meetings of the Compensation Committee, by
consent in October 2009, and by consent in December 2009, in connection with our acquisition of LifeSize.

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Stock option exercise price

The exercise price of a newly granted option (i.e., not an option assumed or granted in relation to an acquisition)
is Logitech’s closing share price on Nasdaq on the date of grant, for options denominated in U.S. dollars, or the
closing share price on the SIX Swiss Exchange on the date of grant, for options denominated in Swiss francs.
Options granted to executive officers are typically denominated in U.S. dollars. The grant date may be the day
of the Compensation Committee meeting or consent, or a subsequent date shortly after the date of the meeting or
consent, but not a date prior to the date of the meeting or consent. The grant date is specified by the Compensation
Committee at the time of its approval.

Stock option vesting

Options granted to executive officers and employees vest 25% per year over four years, in equal increments
on each annual anniversary of the original grant date or, in the case of grants made to newly-hired employees in
connection with their hiring, the grants vest on each annual anniversary of the employee hire date.

Restricted stock unit vesting

RSUs issued to executive officers and other employees have a four-year vesting period, with the RSUs vesting

in four equal annual increments.

PRSU Performance Measure

The performance measure for the performance-based restricted stock units granted in fiscal year 2009 and
2010 is the relative total shareholder return (“TSR”), expressed as a percentile rank, of Logitech shares against the
TSR of companies included in the Nasdaq 100 Index. The Compensation Committee believes this measure is a key
reflection of Logitech’s operational and financial performance, because it focuses on relative performance against
other mid- to large-size technology companies.

For purposes of the PRSUs, relative TSR reflects (i) the aggregate change in the 30-day average closing
price of Logitech shares against the companies in the Nasdaq 100 Index, and (ii) the value (if any) returned to
shareholders in the form of dividends or similar distributions, assumed to be reinvested in shares when paid, each
at the beginning and the end of a two-year performance period.

Structure of the PRSUs

The structure of the PRSUs is summarized in the table below:

Percentile Rank of Logitech TSR against Nasdaq 100 Index TSR

Below 40th Percentile Rank (threshold) . . . . . . . . . . . . . . . .
40th Percentile Rank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60th Percentile Rank (target) . . . . . . . . . . . . . . . . . . . . . . . . .
75th Percentile Rank and Above . . . . . . . . . . . . . . . . . . . . . .

Vested
percentage of
shares subject to
PRSU

0%
50%
100%
200%

If the minimum performance threshold of a 40th percentile rank of Logitech TSR against the Nasdaq 100 Index
TSR over the two-year performance period is not met, no shares subject to the PRSUs will vest. For a percentile
rank between the 40th and 60th percentiles, or between the 60th and 75th percentiles, the percent of shares subject to
the PRSU that will vest will be determined by straight-line interpolation.

The Compensation Committee set the minimum performance threshold, and the vested percentages against
the corresponding TSR percentile ranks, based on the historical TSR of Logitech shares against the Nasdaq 100
Index.

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OTHER COMPENSATION ELEMENTS

Other cash compensation

The Compensation Committee may award discretionary bonuses in order to recognize outstanding individual
performance, to assist in the retention of key talent, or for other reasons. Werner Heid, the Company’s Senior Vice
President, Sales and Marketing, was awarded a discretionary award of $40,467 in fiscal year 2010 to enable him
to purchase a value of Logitech shares equal to what he would have purchased under the Logitech Employee Share
Purchase Plan for the February 1 - July 31, 2009 offering period but for his employment start date being after the
offering start date.

Deferred compensation plan

Executive officers based in the United States are also eligible to participate in the Logitech Inc. Deferred
Compensation Plan and a predecessor plan, which is an unfunded and unsecured plan that allows 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 salary and up to 90% of their bonus or commission compensation.
Under the plan, compensation may be deferred until termination or other specified dates chosen by the participants,
and deferred amounts are credited with earnings based on investment benchmarks chosen by the participants.
The earnings credited to the participants are intended to be funded solely by the plan investments. Logitech does
not make contributions to this plan. Information regarding named executive officer participation in the Deferred
Compensation Plan can be found in the Non-Qualified Deferred Compensation for Fiscal Year 2010 table and the
accompanying narrative.

Because the listed officers do not receive preferential or above-market rates of return under the deferred
compensation plan, earnings under the plan are not included in the Summary Compensation table, but are included
in the Non-Qualified Deferred Compensation table.

Severance and related benefits

All executive officers are eligible to receive benefits under certain conditions in accordance with Logitech’s
Change of Control Severance Agreement (the “Change of Control Agreement”), as described in the section
“Potential Payments Upon Termination or Change in Control.”

The purpose of the Change of Control Agreements is to support retention in the event of a prospective change
of control. Should a change of control occur, benefits will be paid after a “double trigger” event - meaning that there
has been both a change of control, and the executive is terminated without cause or resigns for good reason within
12 months thereafter - as described in “Potential Payments Upon Termination or Change in Control.” Other than in
the case of the Change of Control Agreement for Mr. Quindlen, benefits are capped at the amounts prescribed under
Sections 280G and 4999 of the U.S. Tax Code and Logitech does not provide payments to reimburse its executive
officers for additional taxes incurred (also known as “gross-ups”) in connection with a change of control.

The Change of Control Agreement with Mr. Quindlen provides a tax gross-up to reimburse him for any
additional taxes incurred under Section 280G of the U.S. Tax Code in connection with a change of control. This
additional benefit was provided to Mr. Quindlen to be competitive with terms for other CEOs at the time the
agreement was approved.

In addition, under Mr. Quindlen’s employment agreement and Mr. Heid’s offer letter, if their employment
is involuntarily terminated without cause they are entitled to their base salary and target bonus as described in
“Potential Payments Upon Termination or Change in Control.” The term in Mr. Quindlen’s agreement is intended
to provide consideration for his service to Logitech and the potential length of time until subsequent employment
is secured if he is involuntarily terminated without cause. The term in Mr. Heid’s offer letter was the result of
negotiations of the terms of his employment when he joined Logitech.

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The PRSU and RSU award agreements for named executive officers other than Tom Fergoda provide for the
acceleration of vesting of the RSUs and PRSUs subject to the award agreements under the same circumstances
and conditions as under the Change of Control Agreements; namely, if the named 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. In the event of such an involuntary termination:

•

All shares subject to the RSUs will vest.

100% of the shares subject to the PRSUs will vest if the change of control occurs within 1 year after
the grant date of the PRSUs. If the change of control occurs more than 1 year after the grant date of
the PRSUs, the number of shares subject to the PRSU that will vest will be determined by applying the
performance criteria under the PRSUs as if the performance period had ended on the date of the change
of control.

To determine the level of benefits to be provided under each change of control agreement and other agreements,
the Committee considered the circumstances of each type of severance, the impact on shareholders, and market
practices.

On June 8, 2010, after the end of fiscal year 2010, we entered into a resignation and severance agreement with
David Henry in connection with his resignation from the Company, which is expected to be effective October 1,
2010 or within 60 days thereafter. Under the agreement, subject to Mr. Henry’s execution of a general release of
claims, and that release becoming irrevocable, Mr. Henry will be entitled to receive on his resignation a lump-sum
payment of $460,000, a pro-rated half-year bonus up to $149,500, outplacement services in an amount of up to
$15,000, health insurance coverage premium payments for a period of up to one year, and, if the effective date of his
resignation is October 1, 2010 or later, he will be entitled to receive an additional lump-sum payment of $508,000,
in all cases less applicable withholdings.

The terms of the agreement with Mr. Henry are a result of individual negotiations with him in consideration
for his service to Logitech, to incent him to remain with Logitech to lead the marketing department for a reasonable
period until his successor is found, and as consideration for the potential length of time until subsequent employment
is secured. No amounts are payable to Mr. Henry if he is terminated for cause.

After the end of fiscal year 2010, we entered into a severance agreement effective July 1, 2010 with Tom
Fergoda in connection with his resignation from the Company. Under the agreement, subject to Mr. Fergoda’s
execution of a general release of claims, and that release becoming irrevocable, Mr. Fergoda will be entitled to
receive the equivalent of two months’ of his fiscal year 2010 salary in a lump sum, and continuation of health
insurance coverage premiums for two months.

Perquisites

Logitech’s executive officer benefit programs are substantially the same as for all other eligible employees.
Mr. Quindlen was provided with personal tax preparation services in fiscal year 2010. Expenses related to these
services are imputed as income to Mr. Quindlen and the additional tax liabilities are paid by Logitech as a gross-
up payment. The aggregate amounts of these services plus the gross-up payment are reflected in the Summary
Compensation Table below under the heading “All Other Compensation.”

Other Benefits

Logitech’s executive officers are eligible to receive the same benefits as all other employees, including the

following:

•

Company contributions to defined contribution retirement programs, such as the Logitech Inc. 401(k).

Health, welfare and life insurance benefits.

Opportunity for participation in the Logitech Employee Share Purchase Plans.

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OTHER COMPENSATION POLICIES

Derivatives

We do not permit any Company insiders, including officers and directors, to trade in puts, calls, warrants or

other derivative Logitech securities traded on an exchange or in any other organized securities market.

Recovery of compensation for restatements and misconduct

In June 2010 the Compensation Committee adopted a policy regarding the recovery of compensation paid to an
executive officer or the principal accounting officer of the Company. Under the terms of the policy we may recover
bonus amounts, equity awards or other incentive compensation awarded or paid within the prior three years to a
covered officer if the Compensation Committee determines the compensation was based on any performance goals
that were met or exceeded as a result, in whole or in part, of the officer’s fraud or misconduct, or the officer knew
at the time of the existence of fraud or misconduct that resulted in performance goals being met or exceeded, and a
lower amount would otherwise have been awarded or paid to the officer. In addition, under the policy Logitech may
recover gains realized on the exercise of stock options or on the sale of vested shares by an executive officer or the
principal accounting officer if, within three years after the date of the gains or sales, Logitech discloses the need for
a significant financial restatement, other than a financial restatement solely because of revisions to US GAAP, and
the Compensation Committee determines that the officer’s fraud or misconduct caused or partially caused the need
for the restatement, or the covered officer knew at the time of the existence of fraud or misconduct that resulted in
the need for such restatement.

In addition, our 2006 Stock Incentive Plan and our Management Performance Bonus Plan provide that awards

under the plans are suspended or forfeited if the plan participant, whether or not an executive officer:

•

has committed an act of embezzlement, fraud or breach of fiduciary duty;

makes an unauthorized disclosure of any Logitech trade secret or confidential information; or

induces any customer to breach a contract with Logitech.

Any decision to suspend or cause a forfeiture of any award held by an executive officer under the 2006 Stock

Incentive Plan or the Management Performance Bonus Plan is subject to the approval of the Board of Directors.

Additional tax considerations

U.S. Tax Code Section 162(m)

We are limited by Section 162(m) of the U.S. Tax Code to a deduction for U.S. federal income tax purposes
of up to $1,000,000 of compensation paid to our CEO and any of our three most highly compensated executive
officers, other than our Chief Financial Officer, in a taxable year. Compensation above $1,000,000 may be
deducted if, by meeting certain technical requirements, it can be classified as “performance-based compensation.”
The Compensation Committee considers the implications of Section 162(m) of the U.S. Tax Code in setting and
determining executive officer long-term equity incentive award grants and in setting short-term cash incentive
award compensation.

The Logitech International S.A. 2006 Stock Incentive Plan approved by our shareholders in 2006 permits
certain grants of awards under that plan to qualify as “performance-based compensation.” Bonuses paid to executives
under the Logitech Management Performance Bonus Plan may similarly qualify under Section 162(m). However, the
bonuses earned in fiscal year 2010 did not qualify under Section 162(m) because the general economic uncertainty
led to a delay in setting performance targets. Although the Compensation Committee uses the requirements of
Section 162(m) as a guideline, deductibility is not the sole factor it considers in assessing the appropriate levels and
types of executive compensation and it will elect to forego deductibility when the Committee believes it to be in the
best interests of the Company and its shareholders.

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In addition to considering the tax consequences, the Compensation Committee considers the accounting
consequences, including the impact of the Financial Accounting Standard Board’s Accounting Standards
Codification Section 718, on its decisions in determining the forms of different equity awards.

COMPENSATION BELOW THE EXECUTIVE LEVEL

Similar to Logitech’s executive compensation programs, Logitech’s compensation for its employees below the
level of executive officer have been designed to attract, retain and motivate the skilled employees that are essential
to Logitech’s success. However, one essential difference between compensation of executives and for employees
below the executive level is that, for employees below the executive level, short-term incentives in the form of cash
bonuses or profit sharing and long-term equity incentive awards comprise a smaller portion of the employee’s total
target compensation. This means there is less total compensation at risk for non-executive employees based on the
Company’s performance, while also meaning, similarly, that there is less potential for increased compensation from
superior Company performance.

Components – Non-Executive Compensation

The key components of Logitech’s compensation for employees below the executive level are as follows:

Base salary. Base salary is set to reward employees’ current contributions to Logitech and compensate

them for their expected day-to-day performance.

Short-term cash incentives. Logitech has a bonus program for employees at the director level or above,
a profit-sharing program for employees below the director level, and, for sales personnel, sales commission plans.
All professional staff other than sales personnel participate in the bonus program or the profit sharing program.
The potential target compensation from the bonus and profit sharing programs is established as a percentage of the
employee’s annual base salary. The potential target compensation for sales personnel under sales commission plans
is set on the basis of their sales quotas.

Long-term equity incentive awards. Approximately one-third of the Company’s professional staff receive
long-term equity incentive awards, in the form of stock options and, more recently for eligible employees at the level
of director or above, restricted stock units, which represent the right to receive Logitech shares upon the vesting
of the units. In addition, all full-time professional staff are eligible to participate in the Company’s employee share
purchase plans, which allow eligible employees to purchase Logitech shares at a 15% discount from the market
price of Logitech’s shares at the beginning or end of each six-month offering period.

Health and welfare, and other local benefits. Health and welfare and other local benefits are offered to
employees based on the market practices and local law requirements of the various jurisdictions in which employees
are based. In a limited number of jurisdictions we offer defined benefit or defined contribution pension plans or
required severance benefits for employees.

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Compensation Philosophy – Non-Executive Compensation

The key features of Logitech’s compensation philosophy for employees below the executive level are as

follows:

•

Base salary should be at approximately the median for comparable companies in the industry and in the
region where the employee is based.

The total level of compensation at risk for employees below the executive level should increase with the
level of the employee, to reflect the relative impact of the employee on the Company’s performance.

High-performing employees should receive significantly higher potential compensation in the form of
equity incentive awards in order to help retain and motivate these employees.

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•

Other than for the compensation of employees in the Company’s sales organization, the performance
measures under the Company’s short-term incentives in the form of cash bonuses, profit sharing, or
long-term equity incentive awards, should be based on the performance of the entire Logitech group,
or the performance of the Logitech group plus the performance of the employee’s department or unit,
rather than on the performance of the individual employee. This is primarily to encourage collaboration
among the Company’s employees.

For employees in the Company’s sales organization, compensation should include commissions based
on the employee’s sales performance against sales quotas or targets. Approximately 30% to 40% of a
salesperson’s total target compensation is based on commissions. The Company believes this direct
linking of salesperson compensation to individual performance helps drive sales performance and
reflects competitive market practice.

Equity incentive compensation is an important component of employee compensation. This reflects
market practice, especially in California’s Silicon Valley, where the Company has a significant presence,
but the Company also believes that equity incentive compensation is a key differentiator in attracting
and retaining employees in employment markets outside of the United States where, historically, equity
incentive compensation was not or is not common.

Compensation for employees below the executive level is established based on guidelines developed by the
Company’s compensation & benefits department, market practices, and assessment of individual performance
and potential for future contribution to Logitech by the employee’s manager and the Company’s human resources
department. The Compensation Committee of the Board provides oversight of compensation below the executive
level, reviews and approves the yearly short-term incentive program design and performance measures, reviews
and approves the yearly long-term equity incentive award budget, and reviews and approves individual long-term
equity incentive award grants.

Compensation Risks Assessment

The Compensation Committee conducted a review, with the assistance of Fred W. Cook & Co., Inc., the
Committee’s independent compensation consultant, of Logitech’s compensation programs in March 2010 to assess
the risks associated with their design. The Committee reviewed in particular the following compensation programs
and associated practices:

•

2006 Stock Incentive Plan.

• Management Performance Bonus Plan.

•

Profit Sharing Plan.

Sales commissions plans.

Change of Control Severance Agreements in place with executive officers.

The review included a consideration of Logitech’s enterprise risk areas developed as part of its enterprise risk
management process, compensation risk areas associated with Logitech’s current compensation programs, and risk
controls. Based on this review, we have concluded that our compensation policies and practices do not create risks
that are reasonably likely to have a material adverse effect on the Company.

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REPORT OF THE COMPENSATION COMMITTEE

The Logitech Compensation Committee, which is composed solely of independent members of the Logitech
Board of Directors, assists the Board in fulfilling its responsibilities with regard to compensation matters. The
Compensation Committee has reviewed and discussed the “Compensation Discussion and Analysis” section of
this Compensation Report with management. Based on this review and discussion, the Compensation Committee
recommended to the Board of Directors that the Compensation Discussion and Analysis be included in Logitech’s
2010 Invitation and Proxy Statement and Annual Report.

Compensation Committee

Matthew Bousquette, Chairman
Kee-LocK chua
richarD LauBe
roBert MaLcoLM

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SUMMARY COMPENSATION TABLE

The following table provides information regarding the compensation and benefits earned during fiscal
years 2010, 2009 and 2008 by our named executive officers. For more information, please refer to “Compensation
Disclosure and Analysis,” as well as “Narrative Disclosure to Summary Compensation Table and Grants of Plan-
Based Awards Table.”

Name and Principal Position

Year

Salary ($) Bonus ($)

Stock
Awards($)(1)

Option
Awards ($)(1)

Non-equity
Incentive Plan
Compensation
($)(2)

Changes in
Nonqualified
Deferred
Compensation
Earnings($)

All Other
Compensation
($)(3)

Total ($)

Gerald Quindlen . . . . . . . FY10
FY09
FY08

President and Chief
Executive Officer

787,500
787,500
516,154

Erik Bardman . . . . . . . . . FY10

184,615

Sr. Vice President,
Finance and
Chief Financial Officer

Guerrino De Luca . . . . . . FY10
FY09
FY08

Chairman of
the Board

550,000
550,000
719,231

—
—

—

—
—
—

1,007,600

697,500 1,151,000
— 3,999,000

394,000 1,299,000
—
518,215

— 620,000

162,000

— 118,200
— 223,200
— 950,000

907,000
—
754,074

Tom Fergoda . . . . . . . . . . FY10

224,425 10,000

14,020

109,200

148,343

Former Controller,
Acting Principal
Financial Officer

Mark J. Hawkins . . . . . . . FY10
FY09
FY08

Former Sr. Vice
President, Finance
and Information
Technology, and
Chief Financial Officer

—
44,231
460,000
—
430,000 150,000

—
279,000

—
272,400
— 541,800

—
145,314
311,552

—
—
—

—

—
—
—

—

—
—
—

26,498
9,626
8,697

3,514,598
2,645,626
5,042,066

3,257

969,872

12,168
18,128
42,178

1,587,368
791,328
2,465,483

10,328

516,316

481
8,559
8,346

44,712
1,165,273
1,441,698

Werner Heid. . . . . . . . . . . FY10

550,000 40,467(4)

362,520

450,450

607,000

—

9,648

2,020,085

Sr. Vice President,
Sales and Marketing

David Henry . . . . . . . . . . FY10
FY09
FY08

Sr. Vice President,
Customer Experience
and Chief Marketing
Officer

460,000
460,000
440,000

Junien Labrousse . . . . . . . FY10
FY09
FY08

Executive Vice-
President, Products

680,000
680,000
660,000

—
—
—

362,520
348,750

354,900
503,300
— 926,500

494,000
134,136
294,275

545,860
523,125

491,400
754,950
— 1,781,500

680,000
222,333
469,534

—
—
—

9,151
9,201
9,595

1,680,571
1,455,387
1,670,370

12,271
10,415
11,048

2,409,532
2,190,823
2,922,082

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(1) Under SEC rules, the values reported in the “Stock Awards” and “Option Awards” columns reflected the
aggregate grant date fair value of grants of stock options and stock awards to each of the listed officers in the
fiscal years shown. The key assumptions and methodology of valuation of stock options and stock awards
are presented in Note 13 to the Consolidated Financial Statements included in Logitech’s Annual Report to
Shareholders and Annual Report on Form 10-K for fiscal year 2010 filed with the SEC on May 27, 2010.

For FY10: Assuming the highest level of performance is achieved under the applicable performance criteria,
the maximum possible value of the performance-based restricted stock unit awards allocated to our named
executive officers in FY10, using the market value of our shares on the date of grant of the PRSUs, is: (a) in the
case of Mr. Quindlen; $1,121,600; (b) in the case of Mr. Heid, $364,520; (c) in the case of Mr. Henry, $364,520;
and (d) in the case of Mr. Labrousse, $560,800.

For FY09: Assuming the highest level of performance is achieved under the applicable performance criteria,
the maximum possible value of the performance-based restricted stock unit awards allocated to our named
executive officers in FY09, using the market value of our shares on the date of grant of the PRSUs, is: (a) in the
case of Mr. Quindlen; $1,129,500; (b) in the case of Mr. Henry, $564,750; and (c) in the case of Mr. Labrousse,
$847,125.

(2) Reflects amounts earned under the Logitech Management Performance Bonus Plan, and a predecessor plan.
In Fiscal Year 2009 Mr. De Luca and Mr. Quindlen declined bonus payments of $222,750 and $318,937,
respectively, they each had otherwise earned and were entitled to under the terms of their fiscal year 2009
bonus program.

(3) Details regarding the various amounts included in this column are provided in the following table entitled “All

Other Compensation.”

(4) The Compensation Committee approved the payment of this bonus to Mr. Heid to enable him to purchase a
value of Logitech shares equal to what he would have purchased under the Logitech Employee Share Purchase
Plan for the February 1 - July 31, 2009 offering period but for his employment start date being after the
offering start date.

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All Other Compensation Table

Car and
Driver
($)(1)

Tax
Preparation
Services
($)(2)

401(k) Plan
($)(3)

Group
Term Life
Insurance
($)

Premium for
Deferred
Compensation
Insurance
($)(4)

Name

Gerald Quindlen . . . . . . . . . . . . . .

Year

FY10
FY09
FY08

— 19,563
— 3,954
—
—

2,726
2,594
6,929

4,209
3,078
1,768

Erik Bardman . . . . . . . . . . . . . . . .

FY10

2,841

415

Guerrino De Luca . . . . . . . . . . . . .

FY10
FY09
FY08

—
5,906
28,348

Tom Fergoda . . . . . . . . . . . . . . . . .

FY10

Mark J. Hawkins . . . . . . . . . . . . . .

FY10
FY09
FY08

Werner Heid . . . . . . . . . . . . . . . . .

FY10

David Henry . . . . . . . . . . . . . . . . .

Junien Labrousse . . . . . . . . . . . . .

FY10
FY09
FY08

—

—
—
—

—

—
—
—

—

—
—
—

—

—
—
—

6,750
6,804
6,665

5,418
5,418
7,165

6,496

3,832

250
6,804
6,888

231
1,755
1,458

6,750

2,898

6,750
6,804
7,304

6,750
6,804
8,481

2,401
2,397
2,291

3,616
3,611
2,567

—
—
—

—

—
—
—

—

—
—
—

—

—
—
—

1,906
—
—

Total ($)

26,498
9,626
8,697

3,257

12,168
18,128
42,178

10,328

481
8,559
8,346

9,648

9,151
9,201
9,595

12,271
10,415
11,048

(1) Represents the cost to Logitech of $3,795 and $15,224 in fiscal years 2009 and 2008, respectively, related to Mr.
De Luca’s occasional use of a company car and driver to and from work, and tax gross-up payments of $2,111
and $12,824, respectively, relating to the income imputed to Mr. De Luca as a result.

(2) Represents the cost to Logitech of $12,925 and $2,625 in fiscal years 2010 and 2009, respectively, related to
these services, and tax gross-up payments, of $6,638 and $1,329, respectively, relating to the income imputed
to Mr. Quindlen as a result.

(3) Represents 401(k) savings plan matching contributions, which are available to all of our regular employees

who are on our U.S. payroll.

(4) Represents imputed income to Mr. Labrousse from an insurance policy held to fund, in part, the Logitech Inc.

Deferred Compensation Plan.

100

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GRANTS OF PLAN-BASED AWARDS IN FISCAL YEAR 2010

The following table sets forth certain information regarding grants of plan-based awards to each of our named
executive officers during fiscal year 2010. For more information, please refer to “Compensation Disclosure and
Analysis.”

Name

Type

Grant Date
(MM/DD/YY)

Approval
Date

Threshold
($)

Target
($)

Maximum
($)

Actual
($)(2)

Threshold
(#)

Target
(#)

Maximum
(#)

Estimated Possible Payouts
Under Non-Equity Incentive
Plan Awards (1)

Estimated Future Payouts
Under Equity Incentive
Plan Awards(3)

All Other
Stock
Awards:
Number
of Shares
of Stock
or Units(4)
(#)

Number of
Securities
Underlying
Options
(#)(5)

Exercise
Price of
Option
Awards
($/Share)

Grant
Date
Fair
Value
($)(6)

Gerald Quindlen . . . Option
PRSU
RSU
FY 10
Bonus

04/01/09
06/29/09
06/29/09

03/31/09
06/23/09
06/23/09

—
—
—

—
—
— 20,000
—
—

—
40,000
—

—
80,000

— 100,000
—
—
—
— 20,000

10.64

394,000
— 727,200
— 280,400

N/A

N/A 430,664 787,500 2,116,406 1,299,000

Erik Bardman . . . . . Option

2H Bonus

10/23/09
N/A

10/22/09

—
—
N/A 73,500 120,000

—
285,000

—
162,000

—

— 100,000

18.76

620,000

Guerrino De Luca. . Option
FY 10
Bonus

Tom Fergoda . . . . . . Option

RSU
1H Bonus
2H Bonus

04/01/09

03/31/09

—

— 30,000

10.64

118,200

N/A

N/A 300,781 550,000 1,478,125

907,000

06/29/09
06/29/09
N/A
N/A

06/22/09
06/23/09

—
—
N/A 21,601
N/A 27,492

—
—
44,885
44,885

—
—
134,655
106,602

—
—
92,951
56,092

20,000
—

14.02

109,200
— 14,020

1,000

Mark J. Hawkins. . . —

—

Werner Heid . . . . . . Option
PRSU
RSU
Option
1H Bonus
2H Bonus

David Henry . . . . . . Option
PRSU
RSU
1H Bonus
2H Bonus

Junien Labrousse . . Option
PRSU
RSU
1H Bonus
2H Bonus

06/29/09
06/29/09
06/29/09
09/01/09
N/A
N/A

06/29/09
06/29/09
06/29/09
N/A
N/A

06/22/09
06/22/09
06/22/09
09/01/09

—
—
—
—
—
—
—
—
N/A 129,938 206,250
N/A 145,664 206,250

06/22/09
06/22/09
06/22/09

—
—
—
—
—
—
N/A 71,947 149,500
N/A 91,569 149,500

06/22/09
06/22/09
06/22/09

—
—
—
—
—
—
N/A 143,514 227,800
N/A 160,884 227,800

—
—
—
—
618,750
489,844

—
—
—
448,500
355,063

—
—
—
683,400
541,025

—
—
— 6,500
—
—
—
—
325,000
282,000

—
—
— 6,500
—
—
307,000
187,000

—
—
— 10,000
—
—
359,000
321,000

—
13,000
—
—

—
26,000
—
—

— 65,000
—
—
—
9,000
— 17,500

14.02

354,900
— 236,340
— 126,180
95,550

17.44

H
S
I
l
g
N
E

—
13,000
—

—
26,000
—

— 65,000
—
—
—
9,000

14.02

354,900
— 236,340
— 126,180

—
20,000
—

—
40,000

— 90,000
—
—
—
— 13,000

14.02

491,400
— 363,600
— 182,260

(1) The amounts in these columns reflect possible payouts with respect to each applicable performance period

under the fiscal year 2010 bonus programs under the Bonus Plan.

100

101

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

(2) The amounts in this column reflect actual payouts with respect to each applicable performance period under
the fiscal year 2010 bonus programs under the Bonus Plan. The actual payout amounts are reflected in the
Non-Equity Incentive Plan Compensation column of the Summary Compensation Table for fiscal year 2010.

(3) Represents performance-based restricted stock units. All shares subject to the PRSUs are unvested. The
actual amount, if any, of shares that will vest under the PRSUs will not be known until the end of the two-year
performance period on June 29, 2011.

(4) Represents time-based restricted stock units that vest at a rate of 25% per year over four years, on each yearly

anniversary of the grant date.

(5) Represents stock options with an exercise price equal to the fair market value of Logitech shares on the grant
date. These options vest and become exercisable at a rate of 25% per year over four years, on each yearly
anniversary of the grant date.

(6) Amounts in this column represent the grant date fair value of stock options, performance-based restricted
stock units and time-based restricted stock units calculated in accordance with FASB ASC Topic 718 but
does not include a reduction for forfeitures. For option awards, that number is calculated by multiplying the
Black-Scholes value by the number of options awarded. For performance-based restricted stock units, that
number is calculated by multiplying the value determined using the Monte Carlo method by the target number
of units awarded. For time-based restricted stock units, that number is equal to the closing price of Logitech
shares on the grant date multiplied by the number of units awarded. The key assumptions for the valuation
of the options and performance restricted stock units are presented in Note 13 to the Consolidated Financial
Statements included in Logitech’s Annual Report to Shareholders and Annual Report on Form 10-K for fiscal
year 2010 filed with the SEC on May 27, 2010.

NARRATIVE DISCLOSURE TO SUMMARY COMPENSATION TABLE AND GRANTS OF PLAN-
BASED AWARDS TABLE

Employment Agreements and Offer Letters

We have entered into employment agreements or offer letters with each of our named executive officers other
than Tom Fergoda. The employment agreements and offer letters generally provide that the compensation of the
named executive officer is subject to the sole discretion of the Compensation Committee or the Board of Directors.
The compensation earned by the named executive officers in fiscal year 2010 was not the result of any terms of their
employment agreements or offer letters, except that Werner Heid received an additional option grant for 17,500
options for Logitech shares on September 1, 2009 as a negotiated term of his offer letter when he joined Logitech.

Performance-Based Vesting Conditions

Please refer to “Compensation Disclosure and Analysis—Elements of Compensation / Executive Compensation
Practices—Short-term cash incentive awards” for a discussion of the performance measures applicable to the
Bonus Plan during fiscal year 2010. In addition, please refer to “Compensation Disclosure and Analysis—Elements
of Compensation / Executive Compensation Practices—Long-term equity incentive awards—Structure of the
PRSUs” for a discussion of performance measures under the performance-based restricted stock units granted to
named executive officers during fiscal year 2010.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The following table sets forth certain information regarding outstanding equity awards for each of our named
executive officers as of March 31, 2010. This table includes unexercised and unvested stock options and unvested
performance-based restricted stock units.

102

103

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

Certain of the options as granted to Mr. De Luca have exercise prices denominated in Swiss Francs. The U.S.
Dollar exercise prices shown in the table below for such options are based on the closing Swiss Franc to U.S. Dollar
conversion rate on the trading day immediately preceding the grant date. The U.S. Dollar exercise price for such
options as of March 31, 2010, the last day of Logitech’s fiscal year 2010, are presented in the footnotes to the table
based on a Swiss Franc to U.S. Dollar exchange rate on March 31, 2010 of 1.0642 to 1.

Option Awards

Stock Awards

Number of
Securities
Underlying
Unexercised
Options
Exercisable (#)

Number of
Securities
Underlying
Unexercised
Options
Unexercisable(#)(1)

Option Exercise
Price/Share ($)

Option
Expiration Date
(MM/DD/YY)

Number of
Shares or
Units of
Stock That
Have Not
Vested (#)

Market Value of
Shares or Units of
Stock That Have
Not Vested ($)(2)

Name

Grant Date
(MM/DD/YY)

Gerald Quindlen . . . . .

Erik Bardman . . . . . . .

Guerrino De Luca . . . .

Tom Fergoda . . . . . . . .

11/02/05
10/02/06
10/02/07
10/19/07
04/01/08
10/01/08
12/12/08
04/01/09
06/29/09
06/29/09
Total

10/23/09
Total

10/18/00
09/24/01
10/16/02
04/08/04
04/01/05
04/01/06
04/02/07
04/01/08
04/01/09
Total

06/15/06
10/02/07
10/01/08
06/29/09
06/29/09
Total

200,000
45,000
50,000
150,000
25,000
—
25,000
—
—
—
495,000

—
—

133,524
70,538
400,000
200,000
200,000
75,000
25,000
3,750
—
1,107,812

22,500
7,500
5,000
—
—
35,000

—
15,000
50,000
150,000
75,000
—
75,000
100,000
—
—
465,000

100,000
100,000

—
—
—
—
—
25,000
25,000
11,250
15,000
76,250

7,500
7,500
15,000
20,000
—
50,000

Mark Hawkins . . . . . .

—

Werner Heid . . . . . . . .

03/06/09
06/29/09
06/29/09
06/29/09
09/01/09
Total

37,500
—
—
—
—
37,500

112,500
65,000
—
—
17,500
195,000

20.25
21.61
30.09
34.39
26.67
—
13.48
10.64
—
—

10/17/15
10/02/16
10/02/17
10/19/17
04/01/18

—
—
—
—
—

— 25,000(3)

12/12/18
04/01/19

—
—

— 20,000(4)
— 40,000(5)

85,000

—
—
—
—
—
408,500
—
—
326,800
653,600
1,388,900

18.76

10/23/19

—

—
—
—
—
—
—
—
—
—
—

—
—
—

—

—
—
—
—
—
—
—
—
—
—

—
—
—

H
S
I
l
g
N
E

1,000(4)
1,000

16,340
16,340

10/18/10
04/01/12
04/16/13
04/08/14
04/01/15
04/01/16
04/02/17
04/01/18
04/01/19

06/15/16
10/02/17
10/01/18
06/29/19
—

—

—
03/06/19
—
06/29/19
9,000(4)
—
— 13,000(5)

09/01/19

—
22,000

—
—
147,060
212,420
—
359,480

5.94(6)
5.11(7)
6.84(8)
11.91(9)
15.51(10)
20.05
27.95
26.67
10.64

19.30
30.09
22.59
14.02
—

—

8.01
14.02
—
—
17.44

102

103

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

Option Awards

Stock Awards

Number of
Securities
Underlying
Unexercised
Options
Exercisable (#)

Number of
Securities
Underlying
Unexercised
Options
Unexercisable(#)(1)

Option Exercise
Price/Share ($)

Option
Expiration Date
(MM/DD/YY)

Number of
Shares or
Units of
Stock That
Have Not
Vested (#)

Market Value of
Shares or Units of
Stock That Have
Not Vested ($)(2)

Name

Grant Date
(MM/DD/YY)

David Henry . . . . . . . .

Junien Labrousse . . . .

09/12/03
07/12/04
09/26/05
10/02/06
04/02/07
10/02/07
10/01/08
10/01/08
12/12/08
06/29/09
06/29/09
06/29/09
Total

85,000
160,000
100,000
37,500
25,000
25,000
12,500
—
10,000
—
—
—
455,000

100,000
160,000
100,000
37,500
70,000
25,000
18,750
—
15,000
—
—
—
526,250

—
—
—
12,500
25,000
25,000
37,500
—
30,000
65,000
—
—
195,000

—
—
—
12,500
70,000
25,000
56,250
—
45,000
90,000
—
—
298,750

7.76
11.44
20.25
21.61
27.95
30.09
22.59
—
13.48
14.02
—
—

04/01/14
07/12/14
09/26/15
10/02/16
04/02/17
10/02/17
10/01/18

—
—
—
—
—
—
—

— 12,500(3)

—
12/12/18
—
06/29/19
9,000(4)
—
— 13,000(5)

34,500

04/01/14
07/12/14
09/26/15
10/02/16
04/02/17
10/02/17
10/01/18

—
—
—
—
—
—
—

— 18,750(3)

12/12/18
06/29/19

—
—

— 13,000(4)
— 20,000(5)

51,750

—
—
—
—
—
—
—
204,250
—
—
147,060
212,420
563,730

—
—
—
—
—
—
—
306,375
—
—
212,420
326,800
845,595

(1) Unless otherwise indicated, the remaining shares subject to these options vest and become exercisable at a rate

of 25% per year over four years from the grant date, on each yearly anniversary of the grant date.

(2) The market value of unvested RSUs and PRSUs is calculated by multiplying the number of unvested RSUs
and PRSUs held by the applicable named executive officer by the closing price of our shares on March 31,
2010, which was $16.34. PRSUs are shown at their target amount. The actual conversion of PRSUs into
Logitech shares following the conclusion of the performance period (24 months following the grant date) will
range between 50% and 200% of that target amount, depending upon Logitech’s TSR performance versus the
TSR benchmark over the applicable two-year performance period.

(3) These are performance-based restricted stock units. All shares subject to the PRSUs are unvested. The actual
amount, if any, of shares that will vest under the PRSUs will not be known until the end of the two-year
performance period on September 30, 2010. Amounts in the table assume the shares will vest at 100% of the
target.

(4) These are time-based restricted stock units. The remaining shares subject to these RSU vest at a rate of 25%

per year over four years from the grant date, on each yearly anniversary of the grant date.

104

105

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

(5) These are performance-based restricted stock units. All shares subject to the PRSUs are unvested. The
actual amount, if any, of shares that will vest under the PRSUs will not be known until the end of the two-
year performance period on June 29, 2011. Amounts in the table assume the shares will vest at 100% of the
target.

(6) The exercise price of the option as granted (as split-adjusted) is 10.50 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $9.87 per share.

(7) The exercise price of the option as granted (as split-adjusted) is 8.15 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $7.66 per share.

(8) The exercise price of the option as granted (as split-adjusted) is 10.25 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $9.63 per share.

(9) The exercise price of the option as granted (as split-adjusted) is 15.21 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $14.29 per share.

(10) The exercise price of the option as granted (as split-adjusted) is 18.55 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $17.43 per share.

OPTION EXERCISES AND STOCK VESTED FOR FISCAL YEAR 2010

The following table sets forth the number of shares acquired and the value realized upon exercise of stock
options during fiscal year 2010 by each of our named executive officers. No performance-based or time-based
restricted stock units vested during fiscal year 2010.

Name
Gerald Quindlen . . . . . . . . . . . . . . . . . .
Erik Bardman . . . . . . . . . . . . . . . . . . . .
Guerrino De Luca . . . . . . . . . . . . . . . . .
Tom Fergoda . . . . . . . . . . . . . . . . . . . . .
Mark J. Hawkins . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . .
David Henry . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . .

Option Awards

Stock Awards

Number of Shares
Acquired on
Exercise (#)
—
—
250,000
—
—
—
104,548
—

Value Realized on
Exercise ($)(1)
—
—
1,711,453
—
—
—
931,440
—

Number of Shares
Acquired on
Vesting (#)
—
—
—
—
—
—
—
—

Value Realized on
Vesting ($)
—
—
—
—
—
—
—
—

(1) The value realized equals the difference between the option exercise price and the fair market value of Logitech
shares on the date of exercise, multiplied by the number of shares for which the option was exercised.

Pension Benefits for Fiscal Year 2010

None of our executive officers are beneficiaries under any retirement plan benefits maintained by Logitech.
For additional information regarding other benefits provided upon retirement of Logitech executive officers, please
refer to “Potential Payments Upon Termination or Change in Control.”

H
S
I
l
g
N
E

104

105

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

NON-QUALIFIED DEFERRED COMPENSATION FOR FISCAL YEAR 2010

The following table sets forth information regarding the participation by our named executive officers in the

Logitech Inc. Deferred Compensation Plan during fiscal year 2010 and at fiscal year-end.

Name
Gerald Quindlen . . . . . . . . . .
Erik Bardman . . . . . . . . . . . .
Guerrino De Luca . . . . . . . . .
Tom Fergoda . . . . . . . . . . . . .
Mark J. Hawkins . . . . . . . . . .
David Henry . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . .

Executive
Contributions in
Last Fiscal Year
($)(1)

—
—
—
—
—
—
439,250

Logitech
Contributions in
Last Fiscal Year
($)
—
—
—
—
—
—
—

Aggregate
Earnings in
Last Fiscal
Year ($)(2)
—
—
—
—
21,431
—
488,820

Aggregate
Withdrawals/
Distributions
($)

Aggregate
Balance at Last
Fiscal Year End
($)

—
—
—
—
79,371
—
—

—
—
—
—
—
—
1,787,840

(1) Amounts included in the Summary Compensation table in the “Salary” and “Non-Equity Incentive Plan
Compensation” columns. All contributions were made under the Logitech Inc. Deferred Compensation
Plan.

(2) These amounts are not included in the Summary Compensation Table because plan earnings were not

preferential or above market.

NARRATIVE DISCLOSURE TO NON-QUALIFIED DEFERRED COMPENSATION TABLE

The Logitech Inc. Deferred Compensation Plan effective January 1, 2009 allows the participating executive
officers and other eligible employees to defer up to 80% of their annual base salary and up to 90% of annual cash
bonuses or commissions.

Upon enrollment, participants select from a number of investment benchmarks selected by Logitech Inc.’s
Deferred Compensation Committee for this purpose, and the participant’s account is periodically credited with
an amount equal to the investment performance of the benchmark. Investment benchmarks may be changed by a
participant no more than once each month.

Participants can elect upon enrollment to receive one lump-sum distribution per year beginning in the third year
of plan participation. Although pre-retirement distributions can subsequently be postponed (subject to conditions)
or canceled, participants cannot elect any additional pre-retirement distributions after initial enrollment, except in
limited circumstances.

Distributions are generally payable to participants upon termination of employment in a lump sum or, in the
case of retirement, disability or death, in a series of annual payments of up to 10 years, as elected by the participants,
subject to any requirements of Section 409A of the U.S. Tax Code.

The Deferred Compensation Plan is the successor to an earlier plan that provided substantially

similar benefits.

PAYMENTS UPON TERMINATION OR CHANGE IN CONTROL

We have entered into agreements that provide for payments under certain circumstances in the event of

termination of employment of our executive officers. These agreements include:

•

Change of control severance agreements, under which the executive officers may receive certain benefits
if they are 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.

PRSU and RSU award agreements, that provide for the accelerated vesting of the shares subject to the
award agreements under the same circumstances as under the change of control agreements.

106

107

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

•

An employment agreement with Gerald Quindlen and an offer letter with Werner Heid, under which
each is entitled to severance benefits if we terminate his employment without cause.

A resignation and severance agreement with David Henry and a severance agreement with
Tom Fergoda.

These agreements are described in more detail below.

Other than the agreements above, there are no agreements or arrangements for the payment of severance to a

named executive officer in the event of his involuntary termination with or without cause.

There are no agreements providing for payment of any consideration to any non-executive member of the

Board of Directors upon termination of his or her services with the Company.

Change of Control Severance Agreements

Each of our named executive officers has executed a change of control severance agreement with Logitech,
with the exception of Tom Fergoda. The change of control agreements with each of Mr. Quindlen and Mr. De Luca
are slightly different than those of the other executive officers. The purpose of the change of control agreements is
to support retention in the event of a prospective change of control.

Under the change of control agreement, each executive officer is eligible to receive the following benefits, should
the executive officer be 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:

•

The continuation of the executive’s “current compensation” for 12 months;

Continuation of health insurance benefits for up to 12 months;

Acceleration of vesting for all stock options held by the executive;

Acceleration of other employee equity incentives held by the executive if provided for under the terms
of the grant agreement for the equity incentive; and

Executive – level outplacement services of a value of up to $5,000.

The term “current compensation” includes:

•

The greater of (i) the executive’s annual base salary in effect immediately prior to the executive’s
termination and (ii) the executive’s annual base salary in effect on the date of the Change of Control
Agreement; plus

The amount of the executive’s annual and quarterly bonuses for the fiscal year preceding the fiscal year
in which severance benefits become payable to the executive.

H
S
I
l
g
N
E

The change of control agreement defines the term “change of control” to mean:

•

A merger or consolidation of Logitech with another corporation resulting in a greater than 50% change
in the total voting power of Logitech or the surviving company immediately following the transaction;

The complete liquidation of Logitech;

The sale or other disposition of all or substantially all of Logitech’s assets; or

The acquisition by any person of securities of Logitech representing 50% or more of the total voting
power of Logitech’s outstanding shares.

The change of control agreement with Mr. Quindlen is the same as for the other executive officers, except
that Mr. Quindlen’s agreement provides for a tax gross-up to reimburse him for any additional taxes incurred under
Section 280G of the U.S. Tax Code in connection with a change of control.

106

107

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

CREATION DATE: 07/27/10

OUTPUT DATE: 07/27/10

The change of control agreement with Mr. De Luca is the same as for the other executive officers, except that
only those stock options granted by the Company to him before January 28, 2008, while he was serving as CEO,
are subject to acceleration under the agreement. Options granted to him after January 28, 2008 are not subject to
acceleration.

PRSU and RSU Award Agreements

The PRSU and RSU award agreements for named executive officers other than Tom Fergoda provide for the
acceleration of vesting of the RSUs and PRSUs subject to the award agreements under the same circumstances
and conditions as under the change of control agreements; namely, if the named 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. In the event of such an involuntary termination:

•

All shares subject to the RSUs will vest.

100% of the shares subject to the PRSUs will vest if the change of control occurs within one year after
the grant date of the PRSUs. If the change of control occurs more than one year after the grant date of
the PRSUs, the number of shares subject to the PRSU that will vest will be determined by applying the
performance criteria under the PRSUs as if the performance period had ended on the date of the change
of control.

Gerald Quindlen Employment Agreement

Mr. Quindlen is subject to an employment agreement effective December 3, 2008. Under his employment

agreement, in the event he is terminated without “cause” other than after a change of control he is entitled to:

•

an amount equal to his current annual base salary; plus

his current annual targeted bonus amount.

“Cause” in Mr. Quindlen’s employment agreement is defined as (i) theft, dishonesty, misconduct or falsification
of any employment or Company records; (ii) improper disclosure of the Company’s confidential or proprietary
information; (iii) any action which has a material detrimental effect on the Company’s reputation or business;
(iv) failure or inability to perform any assigned duties after written notice from the Company, and a reasonable
opportunity to cure such failure or inability; (v) the conviction (including any plea of guilty or no contest) of a
felony, or of any other criminal act if that act impairs the ability to perform duties or (vi) the failure to cooperate in
good faith with a governmental or internal investigation of the Company or its directors, officers or employees, if
the Company has requested cooperation.

If any amounts become payable to Mr. Quindlen under his change of control agreement, or any successor
agreement, the aggregate amount of any amounts payable to Mr. Quindlen under his employment agreement will
be reduced to the extent necessary so as to prevent the duplication of severance payments to him.

Werner Heid Offer Letter

We entered into an offer letter with Werner Heid dated December 24, 2008. Under his offer letter, in the event

he is terminated without “cause” other than after a change of control he is entitled to:

•

an amount equal to 75% of his current annual base salary; plus

an amount equal to 75% of his current annual targeted bonus amount.

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“Cause” in Mr. Heid’s offer letter is defined substantially the same as in Mr. Quindlen’s employment agreement,
described above. If any amounts become payable to Mr. Heid under his change of control agreement, or any successor
agreement, the aggregate amount of any amounts payable to Mr. Heid under his offer letter will be reduced to the
extent necessary so as to prevent the duplication of severance payments to him.

Other Severance Arrangements

Please refer to “Compensation Disclosure and Analysis—Other Compensation Elements / Severance and
related benefits” for a discussion of the severance agreement with Tom Fergoda and the resignation and severance
agreement with David Henry, both of which were entered into after the end of fiscal year 2010.

Tables of Potential Payments Upon Termination or Change in Control

The table below estimates the amount of compensation that would be paid in the event of an involuntary
termination of a listed named executive officer without cause after a change in control, assuming that each of the
terminations was effective as of March 31, 2010, subject to the terms of the change of control agreement and the terms
of the PRSU and RSU award agreements with each of the listed named executive officers.

For Mr. Quindlen and Mr. Heid, the additional table below estimates the amount of compensation that would be
paid in the event of an involuntary termination without cause, assuming that each of the terminations was effective
as of March 31, 2010, subject to the terms of the agreements with them. As of March 31, 2010, no compensation
amounts were payable to any named executive officer in the event of a mutual agreement to terminate employment,
whether upon retirement or otherwise.

The amounts payable to Mr. Henry under his resignation and severance agreement are described above under
the heading “Compensation Disclosure and Analysis—Other Compensation Elements / Severance and related
benefits.” Because the agreement was entered into after March 31, 2010, the amounts are not reflected in the tables
below.

Mr. Fergoda is not included in the tables because as of March 31, 2010 he was not entitled to severance or other
benefits in the event of his termination of employment. Mr. Hawkins is not included in the tables because he was
not serving as a named executive officer at the end of fiscal year 2010.

The price used for determining the value of accelerated equity in the tables below was the closing price of
Logitech’s shares on Nasdaq on March 31, 2010, the last business day of the fiscal year, of $16.34. For those unvested
options held by Mr. De Luca that have exercise prices denominated in Swiss Francs, the U.S. Dollar equivalent of
such exercise prices as of March 31, 2010 were calculated based on a Swiss Franc to U.S. Dollar exchange rate on
March 31, 2010 of 1.0642 to 1.

Involuntary Termination After Change in Control

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Name
Gerald Quindlen . . . . . . .
Erik Bardman . . . . . . . . .
Guerrino De Luca . . . . . .
Werner Heid . . . . . . . . . .
David Henry . . . . . . . . . .
Junien Labrousse . . . . . .

Base Salary(1)
$ 787,500
400,000
550,000
550,000
460,000
680,000

Value of
Accelerated
Equity
Awards(4)

Bonus(2)

Other
Benefits(3)
$ 1,299,000 $56,195 $ 1,764,900
—
24,542
33,629
85,500
1,447,405
59,079
596,080
54,387
876,720
55,602

162,000
907,000
607,000
494,000
680,000

280G cut-back
/gross-up(5)
Total
$1,273,711
$5,181,306
586,542
—
— 1,576,129
— 2,663,484
— 1,604,467
— 2,292,322

(1) Represents fiscal year 2010 annual base salary in effect March 31, 2010.

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(2) Represents aggregate actual bonus earned or paid in fiscal year 2010.

(3) Represents the estimated cost of medical and other health insurance premiums (COBRA) for one year after

termination and $5,000 in outplacement services.

(4) Represents, as of March 31, 2010, the aggregate intrinsic value (market value less exercise price) of unvested
options, the aggregate market value of shares underlying all unvested RSUs, and 100% of the shares subject
to PRSUs granted June 29, 2009, in each case held by the named executive officer as of March 31, 2010. The
minimum performance condition under the terms of the PRSUs granted October 1, 2008 was not met as of March
31, 2010, and so no value is attributed to the shares subject to such PRSUs.

(5) Under the Change of Control agreements for all executive officers other than Gerald Quindlen there is a “280G
cut-back” so that, in effect, the maximum value of the cash payments plus accelerated equity awards to which
an executive is entitled under the agreement is just under 3 times the average annual taxable compensation
paid by Logitech to the executive in the prior five taxable years, calculated in accordance with the U.S. Tax
Code. The 280G cut-back in the Change of Control agreements for named executive officers other than
Mr. Quindlen is not applicable based on the assumptions in the table. Mr. Quindlen’s Change of Control
agreement contains a “280G tax gross-up”, so that if Mr. Quindlen is subject to the 280G excise tax in the
event of a change of control, Logitech will pay Mr. Quindlen an extra amount to fully compensate him for the
extra taxes incurred by him as a result of the excise tax. The amount disclosed for Mr. Quindlen reflects the
cost to Logitech of this tax gross-up, based on the assumptions in the table.

Involuntary Termination

Name
Gerald Quindlen . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Base Salary(1)
$ 787,500
412,500

Bonus(2)
$ 787,500
309,375

Other Benefits(3)
$46,986
—

Total
$ 1,621,986
721,875

(1) For Mr. Quindlen, represents 100% and, for Mr. Heid, 75%, of his fiscal year 2010 annual base salary in effect

March 31, 2010.

(2) For Mr. Quindlen, represents 100% and, for Mr. Heid, 75%, of his fiscal year 2010 target bonus in effect

March 31, 2010.

(3) Represents the estimated cost of medical and other health insurance premiums (COBRA) for one year after

termination.

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COMPENSATION OF DIRECTORS

The compensation of the members of the Board of Directors that are not Logitech employees is established by
the Committee for Board Compensation, which consists of Guerrino De Luca, our Chairman, and Gerald Quindlen,
our Chief Executive Officer. The Committee for Board Compensation reviews aggregate data on non-executive
director compensation of comparable companies in setting compensation for Logitech’s non-executive directors.

Directors who are Logitech employees do not receive any compensation for their service on the Board of

Directors. Non-executive director compensation consists of the following elements:

•

An annual retainer of CHF 40,000.

A meeting attendance fee of CHF 2,500 for each Board and Board committee meeting attended.

Compensation for the number of travel days, or part of a travel day, spent traveling to attend Board and
committee meetings, at the rate of CHF 2,500 per day or part of a day of travel.

An additional annual retainer of CHF 15,000 for the chair of the audit committee.

An additional annual retainer of CHF 15,000 for the lead independent director.

An additional annual retainer of CHF 10,000 for the chair of the compensation committee.

A grant of 6,000 RSUs, vesting in one increment on the one-year anniversary of the date of grant.

Reimbursement of reasonable expenses for non-local travel (business class).

Non-executive Board members may elect to receive their Board fees in shares, net of withholdings. Any
such shares are to be issued under the 2006 Stock Incentive Plan.

Annual service is measured between the dates of the Company’s Annual General Meetings.

The following table summarizes the total compensation earned or paid by Logitech during fiscal year 2010 to
continuing members of the Board of Directors who were not executive officers as of March 31, 2010. The compensation
paid to Guerrino De Luca and Gerald Quindlen, the members of the Board of Directors that are Logitech executive
officers as of March 31, 2010, is presented in the Summary Compensation Table.

Non-Executive Director Summary Compensation for Fiscal Year 2010

Name
Daniel Borel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Robert Malcolm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fees Earned In
Cash ($)
72,974
124,762
87,098
108,284
101,222
87,098
87,098
110,638

Stock Awards
($)(1)
110,580
109,680
127,960
127,960
110,580
110,580
109,680
110,580

Total ($)
183,554
234,442
215,058
236,244
211,802
197,678
196,778
221,218

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(1) Under SEC rules, the values reported reflect the grant date fair value of 7,000 RSUs granted to each of Mr.
Chang and Mr. Chua, and 6,000 RSUs granted to each other non-executive director, on August 31, 2009. The
slight differences in values reported for those directors granted 6,000 RSUs reflect differences in the closing
price of Logitech shares between the SIX Swiss Exchange and Nasdaq on the grant date, as stock awards are
granted and valued using either price depending on the principal residence of the director. The methodology of
the valuation of RSUs is presented in Note 13 to the Consolidated Financial Statements included in Logitech’s
Annual Report to Shareholders and Annual Report on Form 10-K for fiscal year 2010 filed with the SEC on
May 27, 2010.

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The following table presents additional information with respect to the option and stock awards held as of

March 31, 2010 by members of the Board of Directors who were not executive officers as of fiscal year-end.

In 2010, Logitech began granting RSUs instead of stock options to continuing non-employee directors. The

RSUs granted in fiscal year 2010 vest in one equal increment on the one-year grant date anniversary.

Information regarding the option and stock awards held as of March 31, 2010 by Guerrino De Luca and
Gerald Quindlen, the only members of the Board of Directors that are Logitech executive officers as of such date,
is presented in the Outstanding Equity Awards at Fiscal Year-End table.

Certain of the options as granted have exercise prices denominated in Swiss Francs. The U.S. dollar exercise
price in the table below for such options are based on the Swiss Franc to U.S. Dollar exchange rate on the trading
day immediately preceding the grant date. The U.S. Dollar exercise price as of March 31, 2010, the last day of
Logitech’s fiscal year 2010, for such options are presented in the footnotes to the table based on a Swiss Franc to
U.S. Dollar exchange rate on March 31, 2010 of 1.0642 to 1.

Outstanding Equity Awards for Non-Executive Directors at Fiscal 2010 Year-End

Option Awards

Stock Awards

Name
Daniel Borel . . . . . . . .

Matthew Bousquette . .

Erh-Hsun Chang(3) . . . .

Kee-Lock Chua . . . . . .

Sally Davis . . . . . . . . .

Richard Laube . . . . . . .

Robert Malcolm . . . . .

Monika Ribar . . . . . . .

Grant Date
(MM/DD/YY)
08/31/09
Total
06/16/05
09/10/08
08/31/09
Total
09/12/03
07/12/04
09/26/05
06/16/06
08/31/09
Total
06/29/00
06/26/03
06/16/06
08/31/09
Total
06/20/07
08/31/09
Total
09/10/08
08/31/09
Total
06/20/07
08/31/09
Total
06/24/04
06/20/07
08/31/09
Total

Option
Exercise
Price /
Share ($)
—

Option
Expiration
Date
(MM/DD/YY)

—

15.41
23.29
—

7.76
11.44
20.25
19.43
—

7.92(4)
10.78(5)
19.43
—

06/16/15
09/10/18
—

09/12/13
07/12/14
09/26/15
06/16/16
—

06/29/10
06/26/13
06/16/16
—

27.76(6)
—

06/20/17
—

23.27(7)
—

09/10/18
—

27.35
—

11.71(8)
27.76(9)
—

06/20/17
—

06/24/14
06/20/17
—

Number of
Shares or
Units of
Stock That
Have Not
Vested (#)
6,000
6,000
—
—
6,000
6,000
—
—
—
—
7,000
7,000
—
—
—
7,000
7,000
—
6,000
6,000
—
6,000
6,000
—
6,000
6,000
—
—
6,000
6,000

Market Value of
Shares or Units of
Stock That Have
Not Vested ($)(2)
98,040
98,040
—
—
98,040
98,040
—
—
—
—
114,380
114,380
—
—
—
114,380
114,380
—
98,040
98,040
—
98,040
98,040
—
98,040
98,040
—
—
98,040
98,040

Number of
Securities
Underlying
Unexercised
Options
Exercisable (#)

Number of
Securities
Underlying
Unexercised
Options
Unexercisable (#)(1)

—
—
60,000
5,000
—
65,000
120,000
120,000
60,000
30,000
—
330,000
40,000
40,000
15,000
—
95,000
20,000
—
20,000
10,000
—
10,000
20,000
—
20,000
80,000
10,000
—
90,000

—
—
—
10,000
—
10,000
—
—
—
—
—
—
—
—
—
—
—
10,000
—
10,000
20,000
—
20,000
10,000
—
10,000
—
5,000
—
5,000

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(1) Unless otherwise indicated, the shares subject to these options vest and become exercisable at a rate of 33%

per year over three years from the grant date, on each yearly anniversary of the grant date.

(2) The market value of unvested RSUs is calculated by multiplying the number of unvested RSUs held by the

applicable director by the closing price of our shares on March 31, 2010, which was $16.34.

(3) Options granted to Mr. Chang before 2006 were in respect of his role as a Logitech executive officer at such

time. Mr. Chang served as a Logitech executive officer until April 2006.

(4) The exercise price of the option as granted (as split-adjusted) is 13.00 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $12.22 per share.

(5) The exercise price of the option as granted (as split-adjusted) is 14.29 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $13.43 per share.

(6) The exercise price of the option as granted is 34.45 Swiss Francs per share. The U.S. Dollar exercise price as

of March 31, 2010 is $32.37 per share.

(7) The exercise price of the option as granted is 26.18 Swiss Francs per share. The U.S. Dollar exercise price as

of March 31, 2010 is $24.60 per share.

(8) The exercise price of the option as granted (as split-adjusted) is 14.68 Swiss Francs per share. The U.S. Dollar

exercise price as of March 31, 2010 is $13.79 per share.

(9) The exercise price of the option as granted is 34.45 Swiss Francs per share. The U.S. Dollar exercise price as

of March 31, 2010 is $32.37 per share.

EQUITY COMPENSATION PLAN INFORMATION

The following table summarizes the shares that may be issued upon the exercise of options, RSUs, PRSUs
and other rights under our employee equity compensation plans as of March 31, 2010. Information is included
for equity compensation plans approved by our shareholders and equity compensation plans not approved by our
shareholders. We will not grant equity awards in the future under the equity compensation plans not approved by
our shareholders included in the table below.

(a)
Number of Securities
to be Issued Upon
Exercise of Outstanding
Options, Warrants
and Rights

(b)
Weighted
Average Exercise
Price of Outstanding
Options, Warrants
and Rights(1)

(c)
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
(Excluding Securities
Reflected in Column(a))

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Plan Category

Equity Compensation Plans

Approved by Security Holders . . .

19,540,021(2)

Equity Compensation Plans Not

Approved by Security Holders . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . .

1,010,627(3)
20,550,648

$ 17

5
$ 17

8,436,680

—
8,436,680

(1) The weighted average exercise price is calculated based solely on outstanding options.

(2)

Includes options and rights to acquire shares outstanding under our 1996 Employee Share Purchase Plan
(U.S.), 2006 Employee Share Purchase Plan (Non-U.S.), 2006 Stock Incentive Plan, and 1996 Stock Plan
(which plan terminated in 2006).

(3)

Includes options and restricted stock outstanding under the LifeSize Communications, Inc. 2003 Stock Option
Plan, which we assumed in fiscal year 2010 as a result of our acquisition of LifeSize in December 2009.

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2006 Stock Incentive Plan

The Logitech International S.A. 2006 Stock Incentive Plan provides for the grant to eligible employees and
non-employee members of the Board of Directors, of stock options, stock appreciation rights, restricted stock and
restricted stock units, which are bookkeeping entries reflecting the equivalent of shares. As of March 31, 2010,
Logitech has granted stock options, RSUs and PRSUs under the 2006 Plan and has made no grants of restricted
shares or stock appreciation rights. Stock options granted under the 2006 Plan generally will have terms not
exceeding ten years and will be issued at exercise prices not less than the fair market value on the date of grant.
Awards under the 2006 Plan may be conditioned on continued employment, the passage of time or the satisfaction
of performance vesting criteria. The 2006 Plan expires on June 16, 2016. An aggregate of 17,500,000 shares is
reserved for issuance under the 2006 Plan. As of March 31, 2010, a total of 5,664,605 shares were available for
issuance under this plan.

1996 Stock Plan

Under the 1996 Stock Plan, Logitech granted options for shares. Options issued under the 1996 Plan generally
vest over four years and remain outstanding for periods not to exceed ten years. Options were granted at exercise
prices of at least 100% of the fair market value of the shares on the date of grant. Logitech made no grants of
restricted shares, stock appreciation rights or stock units under the 1996 Plan. No further awards will be granted
under the 1996 Plan.

Each option issued under the 1996 Stock Plan entitles the holder to purchase one share of Logitech International

S.A. at the exercise price.

Employee Share Purchase Plans

Logitech maintains two employee share purchase plans, one for employees in the United States and one for
employees outside the United States. The plan for employees outside the United States is named the 2006 Employee
Share Purchase Plan (Non-U.S.) (“2006 ESPP”) and was approved by the Board of Directors in June 2006. The plan
for employees in the United States is named the 1996 Employee Share Purchase Plan (U.S.) (“1996 ESPP”). The
1996 ESPP was the worldwide plan until the adoption of the 2006 ESPP in June 2006. Under both plans, eligible
employees may purchase shares with up to 10% of their earnings at the lower of 85% of the fair market value at
the beginning or the end of each six-month offering period. Purchases under the plans are limited to a fair value
of $25,000 in any one year, calculated in accordance with U.S. tax laws. There are two offering periods, each
consisting of a six-month period during which payroll deductions of employee participants are accumulated under
the share purchase plan. Subject to continued participation in these plans, purchase agreements are automatically
executed at the end of each offering period. A total of 16,000,000 shares have been reserved for issuance under
both the 1996 and 2006 ESPP plans. As of March 31, 2010, a total of 2,772,075 shares were available for issuance
under these plans.

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MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

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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 above in
Item 1A “Risk Factors,” and below in Item 7A “Quantitative and Qualitative Disclosures about Market Risk.”

Overview of Our Company

Logitech operates in two industry segments, personal peripherals and video conferencing.

Our personal peripherals segment encompasses the design, manufacturing and marketing of personal
peripherals for personal computers and other digital platforms. Our research and product management teams are
organized along product lines, and are responsible for product strategy, industrial design and development, and
technological innovation. Our global marketing and sales organization helps define product opportunities and
bring our products to market, and is responsible for building the Logitech brand and consumer awareness of our
products. This organization is comprised of retail and OEM (original equipment manufacturer) sales and marketing
groups. Our retail sales and marketing activities are organized into three geographic regions: Americas (including
North and South America), Europe-Middle East-Africa (“EMEA”), and Asia Pacific. Our OEM sales team is a
worldwide organization with representatives in each of our three regions. Our OEM customers include the majority
of the world’s largest PC manufacturers.

Our video conferencing segment encompasses the design, manufacturing and marketing of LifeSize video
conferencing products and services for the enterprise and small-to-medium business markets. The LifeSize segment
maintains a separate marketing and sales organizations. The LifeSize product development and product management
organizations are separate, but coordinated with our personal peripherals business, particularly our webcam and
video communications groups. Based on the financial measurements for the fiscal year ended March 31, 2010 as
evaluated by Logitech’s Chief Executive Officer, the LifeSize operating segment does not meet the quantitative
threshold for separate disclosure of financial information required by generally accepted accounting principles in
the United States.

For the PC, our products include mice, trackballs, keyboards, interactive gaming controllers, multimedia
speakers, headsets, webcams, 3D control devices and lapdesks. Our Internet communications products include
webcams, headsets, video communications services, and digital video security systems for a home or small business.
Our LifeSize division offers scalable high-definition (“HD”) video communication products, support and services.
Our digital music products include speakers, earphones, and custom in-ear monitors. For home entertainment
systems, we offer the Harmony line of advanced remote controls and the Squeezebox and Transporter wireless
music solutions for the home. For gaming consoles, we offer a range of gaming controllers, including racing wheels,
wireless guitar and drum controllers, and microphones, as well as other accessories.

We sell our peripheral products to a network of retail distributors and resellers and to OEMs. Our worldwide
retail network for our peripherals includes wholesale distributors, consumer electronics retailers, mass merchandisers,
specialty electronics stores, computer and telecommunications stores, value-added resellers and online merchants.
Our sales to our retail channels for our peripherals were 89% and 85% of our net sales for the fiscal years ended
March 31, 2010 and 2009. The large majority of our revenues have historically been derived from sales of our
personal peripheral products for use by consumers.

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We sell our LifeSize products and services to distributors, value-added resellers, OEMs and direct enterprise
customers. The large majority of LifeSize revenues have historically been derived from sales to large enterprises,
small-to-medium businesses, and public healthcare, education and government organizations.

Our markets are extremely competitive. The personal peripherals market is characterized by short product
life cycles, frequent new product introductions, rapidly changing technology, evolving customer demands, and
aggressive promotional and pricing practices. We believe that the global economic downturn has further increased
competition in our markets, as competitors with larger financial resources, such as Microsoft Corporation, Sony
Corporation and others, seek to gain market share by discounting prices or offering more favorable terms to
customers, and competitors with smaller financial resources also discount prices or engage in other promotional
practices in order to maintain their market share.

The video conferencing market is characterized by continual performance enhancements and increasing
consolidation. There is heightened interest in the video conferencing market by large, well-financed competitors,
such as Cisco Systems, Inc. and Hewlett-Packard Company, and as a result, we expect competition in the market
to further intensify.

We believe continued investment in product research and development is critical to creating the innovation
required to strengthen our competitive advantage and to drive future sales growth. We are committed to identifying
and meeting current and future customer trends with new and improved product technologies, as well as leveraging
the value of the Logitech brand from a competitive, channel partner and consumer experience perspective. We believe
innovation and product quality are important to gaining market acceptance and maintaining market leadership.

The broadening of our product lines has been primarily organic. However we also seek to acquire, when
appropriate, companies that have products, personnel, and technologies that complement our strategic direction. As
access to digital information expands beyond the PC platform, we are also extending our vision to other platforms,
such as the living room, meeting room and other platforms as access points to the Internet and the digital world. For
example, with our acquisition of LifeSize in December 2009, we entered the video conferencing market. Together,
Logitech and LifeSize plan to pursue existing and new relationships with unified communications, collaboration
and voice-over Internet protocol (“VoIP”) industry partners and competitors to drive the development of an open
eco-system for interoperable video communications. In addition, as part of our corporate strategy, we plan to
increase investments in and realign resources to focus on certain market adjacencies, geographic markets or new
categories, including video communications and the China market. We also plan to increase our investment in
applications and peripherals for open platforms, which do not require direct collaboration and agreement with the
platform owner.

We continually evaluate our product offerings and our strategic direction in light of current global economic
conditions, changing consumer trends, and the evolving nature of the interface between the consumer and the
digital world.

Summary of Financial Results

Our total net sales for the fiscal year ended March 31, 2010 decreased 11% compared with the fiscal year
ended March 31, 2009. Net sales in the second half of fiscal year 2010 increased 10% over the same period in
2009, after decreasing 30% in the first six months of the year. While not yet resuming the sales levels in fiscal
year 2008, the improvement in net sales in the last six months of fiscal year 2010 reflects more stable global
economic conditions.

Retail sales in fiscal year 2010 decreased 8% compared with 2009. Retail unit sales decreased 2%, less than
the decrease in sales dollars, reflecting the shift by consumers towards value-priced products as a result of the
economic downturn.

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Retail sales in our Asia Pacific and EMEA regions decreased 16% and 11% in fiscal year 2010 compared with
fiscal year 2009. Retail sales in our Americas region increased 1% in the same period. Retail sales in the last six
months of fiscal year 2010 increased in the EMEA and Americas region, and decreased slightly in the Asia Pacific
region, indicating an improvement in the sales trend.

OEM sales decreased 38% in fiscal year 2010 compared with fiscal year 2009. OEM units sold decreased 25%
in the same period. The substantial decline in OEM sales was related to console microphones, which sold well in the
prior fiscal year, but have reached the latter stages of the typical gaming sales cycle in fiscal year 2010.

The sales of LifeSize Communications, Inc., which we acquired on December 11, 2009, are included in our

financial results from the date of acquisition to the end of the fiscal year.

Our gross margin for fiscal year 2010 was 31.9% compared with 31.3% in the prior fiscal year, primarily
due to the impact of operational efficiencies across our supply chain and a favorable shift in product mix towards
products with higher margins.

Net income for the year ended March 31, 2010 was $65.0 million, compared with net income of $107.0 million in
fiscal year 2009. The decline in net income in 2010 resulted primarily from the decline in net sales. Net income also
included the negative impact of $1.8 million in fiscal year 2010 and $20.5 million in fiscal year 2009 of costs related
to the restructuring plan initiated in January 2009 in response to deteriorating global economic conditions.

Trends in Our Business

We have a large and varied portfolio of product lines for personal peripherals, grouped in several product
families. In addition to changes resulting from general economic trends, we believe that normal increases or decreases
in the retail sales level of a product family reflect the innovation we have designed into the product, customer
acceptance of the product line, the popularity of the digital platforms the product line relates to, competitive activity
in the product family, and the prices at which products are available. Historically, sales of individual product lines
rise and fall over time, causing our overall product mix to shift both between and within product lines, and we
expect these types of trends to continue.

We have historically targeted peripherals for the PC platform, a market that is dynamically changing as a
result of the declining popularity of desktop PCs and the increasing popularity of notebook PCs and mobile devices,
such as netbooks, smartphones, tablets and smaller form factor devices with computing or web surfing capabilities.
In our retail channels, notebook PCs and mobile devices are sold by retailers without peripherals. We believe this
creates opportunities to sell products to consumers to help make their devices more productive and comfortable.
However, consumer acceptance and demand for peripherals for use with smaller form factor computing devices
such as notebook PCs and mobile devices is still uncertain. The increasing popularity of notebook PCs and mobile
devices may result in decreased demand by consumers for personal peripherals, which could negatively affect our
business. The increasing popularity of mobile devices has coincided with a steadily decreasing average sales price
for computing devices, including for desktop and notebook PCs. As a result, there is a risk that the demand for those
of our products that have a relatively high average sales price in relation to the price of a desktop or notebook PC
will decline. We believe our future sales growth will be significantly affected by our ability to develop sales and
innovations in our current products for notebook PCs and other mobile devices, as well as for emerging product
categories which are not PC-dependent.

In our OEM channel, the shift away from desktop PCs has adversely affected our sales of OEM mice, which
are sold with name-brand desktop PCs. Our OEM mice sales have historically made up the bulk of our OEM sales.
Our OEM sales accounted for 10% and 15% of total revenues during fiscal years 2010 and 2009. We expect the
trend of slowing OEM mice sales to continue.

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Most of our revenue comes from sales to our retail channels, which resell to consumers and other retailers. As
a result, our customers’ demand for our products depends in substantial part on trends in consumer confidence and
consumer spending, as well as the levels of inventory which our customers choose to maintain. We use sell-through
data, which represents sales of our products by our retailer customers to consumers and by our distributor customers
to retailers, along with other metrics to indicate consumer demand for our products. Sell-through data is subject to
limitations due to collection methods and the third-party nature of the data and thus may not be an entirely accurate
indicator of actual consumer demand for our products. In addition, the customers supplying sell-through data vary
by geographic region and from period to period, but typically represent a majority of our retail sales.

The acquisition of LifeSize in December 2009 expands our video communication product portfolio beyond
webcams and video calling into the enterprise meeting room. We believe our video conferencing segment offers
significant growth opportunities for our business. However, the segment currently represents a small part of our net
sales and will require continuing investments in product development and sales and marketing.

We will continue to evaluate potential acquisitions to enhance the breadth and depth of our expertise in
engineering and other functional areas, our technologies and our product offerings. We also intend to continue to
invest in video communications, in products for the digital home, and in growing our sales in China by increasing
hiring in related engineering and sales and marketing functions.

Although our financial results are reported in U.S. dollars, approximately half of our sales are made
in currencies other than the U.S. dollar, such as the euro, British pound, Japanese yen, Chinese renminbi and
Canadian dollar. Our product costs are primarily in U.S. dollars and Chinese renminbi. Our operating expenses are
incurred in U.S. dollars, euros, Chinese renminbi, Swiss francs, Taiwanese dollars, and, to a lesser extent, 25 other
currencies. To the extent that the U.S. dollar significantly increases or decreases in value relative to the currencies
in which our sales and operating expenses are denominated, the reported dollar amounts of our sales and expenses
may decrease or increase. In fiscal year 2010 the impact of foreign currency exchange rates on our operating
income was not material.

Our gross margins vary with the mix of products sold, competitive activity, product life cycle, new product
introductions, unit volumes, commodity and supply chain costs, foreign currency exchange rate fluctuations,
geographic sales mix, and the complexity and functionality of new product introductions. Changes in consumer
demand affect the need for us to undertake promotional efforts, such as cooperative marketing arrangements,
customer incentive programs or price protection, which alters our product gross margins. Gross margins for the
fiscal year ended March 31, 2010 were 31.9%, compared with 31.3% in fiscal year 2009, primarily due to the impact
of operational efficiencies across our supply chain and a favorable shift in product mix towards products with
higher margins. We currently anticipate our gross margins to be higher in fiscal year 2011 compared with fiscal
year 2010.

Logitech is incorporated in Switzerland but operates in various countries with differing tax laws and rates.
A portion of our income before taxes and the provision for income taxes are generated outside of Switzerland.
Therefore, our effective income tax rate depends on the amount of profits generated in each of the various tax
jurisdictions in which we operate. For fiscal years 2010 and 2009, the income tax provision was $18.7 million and
$19.8 million based on effective income tax rates of 22.3% and 15.6%. The change in effective income tax rate
between fiscal years 2010 and 2009 is primarily due to the mix of income and losses in the various tax jurisdictions
in which the Company operates. We expect future effective income tax rates to fluctuate for similar reasons.

In the fiscal quarter ended March 31, 2009, we implemented a restructuring plan which included a reduction
in Logitech’s salaried workforce and other actions aimed at reducing operating expenses. We incurred $20.5 million
in pre-tax restructuring charges in the fourth quarter of fiscal year 2009 and $1.8 million in the twelve months
ended March 31, 2010 related to employee termination costs, contract termination costs and other associated costs.
The restructuring plan was expected to generate annual personnel cost savings beginning in fiscal year 2010 of
approximately $50 million, and approximately $50 million additional variable cost savings through efforts to limit

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production costs and operating expenses. The cost savings realized from the restructuring are partially offset in the
operating results of fiscal year 2010 by the addition of LifeSize’s operating expenses and by increased spending to
support the return to revenue growth.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with generally accepted
accounting principles in the United States of America (“U.S. GAAP”) requires the Company to make judgments,
estimates and assumptions that affect reported amounts of assets, liabilities, net sales and expenses, and the
disclosure of contingent assets and liabilities.

We consider an accounting estimate critical if it: (i) requires management to make judgments and estimates
about matters that are inherently uncertain; and (ii) is important to an understanding of Logitech’s financial
condition and operating results.

We base our estimates on historical experience and on various other assumptions we believe to be reasonable
under the circumstances. Although these estimates are based on management’s best knowledge of current events and
actions that may impact the Company in the future, actual results could differ from those estimates. Management
has discussed the development, selection and disclosure of these critical accounting estimates with the Audit
Committee of the Board of Directors.

We believe the following accounting estimates are most critical to our business operations and to an
understanding of our financial condition and results of operations, and reflect the more significant judgments and
estimates used in the preparation of our consolidated financial statements.

Accruals for Customer Programs

We record accruals for product returns, cooperative marketing arrangements, customer incentive programs
and pricing programs. The estimated cost of these programs is accrued in the period the Company sells the product
or commits to the program as a reduction of revenue or as an operating expense, if we receive a separately identifiable
benefit from the customer and can reasonably estimate the fair value of that benefit. Significant management
judgment and estimates must be used to determine the cost of these programs in any accounting period.

Returns. The Company grants limited rights to return product. Return rights vary by customer, and range
from just the right to return defective product to stock rotation rights to return a limited percentage of the previous
quarter’s purchases. Estimates of expected future product returns are recognized at the time of sale based on
analyses of historical return trends by customer and by product, inventories owned by and located at distributors
and retailers, current customer demand, current operating conditions, and other relevant customer and product
information, such as stage of product life-cycle. Return trends are influenced by the timing of the sale, the type
of customer, operational policies and procedures, product sell-through, product quality issues, sales levels, market
acceptance of products, competitive pressures, new product introductions, product life cycle status, and other
factors. Return rates can fluctuate over time, but are sufficiently predictable to allow us to estimate expected future
product returns.

Cooperative Marketing Arrangements. The Company’s cooperative marketing arrangements include
contractual customer marketing and sales incentive programs. We enter into customer marketing programs with
many of our distribution and retail customers allowing customers to receive a credit equal to a set percentage of
their purchases of the Company’s products, or a fixed dollar credit for various marketing programs. The objective
of these programs is to encourage advertising and promotional events to increase sales of our products. Accruals
for the estimated costs of these marketing programs are recorded based on the contractual percentage of product
purchased in the period we recognize revenue. The Company also offers rebates and discounts for certain types
of sell-through programs. Accruals for these sales incentive programs are recorded at the time of sale, or time of
commitment, based on negotiated terms, historical experience and inventory levels in the channel.

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Customer Incentive Programs. Customer incentive programs include volume and consumer rebates. We offer
volume rebates to our distribution and retail customers related to purchase volumes or sales of specific products by
distributors to specified retailers. Reserves for volume rebates are recognized as a reduction of the sale price at the
time of sale. Estimates of required reserves are determined based on negotiated terms, consideration of historical
experience, anticipated volume of future purchases, and inventory levels in the channel. Consumer rebates are
offered from time to time at the Company’s discretion directly to end-users. Estimated costs of consumer rebates
and similar incentives are recorded at the time the incentive is offered, based on the specific terms and conditions.
Certain incentive programs, including consumer rebates, require management to estimate the number of customers
who will actually redeem the incentive based on historical experience and the specific terms and conditions of
particular programs.

Price Protection and Special Pricing. We have contractual agreements with certain of our customers that
contain terms allowing price protection credits to be issued in the event of a subsequent price reduction (contractual
price protection). At management’s discretion, we also offer special pricing discounts to certain customers. Special
pricing discounts are usually offered only for limited time periods or for sales to specific indirect partners. Our
decision to make price reductions is influenced by channel inventory levels, product life cycle stage, market
acceptance of products, the competitive environment, new product introductions and other factors. Credits are
issued for units that customers have on hand or in transit at the date of the price reduction. Reserves for the estimated
amounts to be reimbursed to qualifying customers are established quarterly based on planned price reductions,
analyses of qualified inventories on hand with distributors and retailers and historical trends by customer and by
product.

We regularly evaluate the adequacy of our accruals for product returns, cooperative marketing arrangements,
customer incentive programs and pricing programs. Future market conditions and product transitions may require
the Company to take action to increase such programs. In addition, when the variables used to estimate these
costs change, or if actual costs differ significantly from the estimates, we would be required to record incremental
reductions to revenue or increase operating expenses. If, at any future time, the Company becomes unable to
reasonably estimate these costs, recognition of revenue might be deferred until products are sold to end-users,
which would adversely impact revenue in the period of transition.

Investment Securities

Our investment securities portfolio as of March 31, 2010 and 2009 consisted of auction rate securities collateralized
by residential and commercial mortgages. The estimated fair value of our investment securities was $1.0 million and
$1.6 million at March 31, 2010 and 2009. Estimated fair value was determined by estimating values of the underlying
collateral using analogous published indices or by estimating future cash flows, either through discounted cash flow
or option pricing methods, incorporating assumptions of default and other future conditions. The investments are
classified as available-for-sale, and were reclassified from current to non-current assets as of April 1, 2009, as sale or
realization of proceeds from sale is not expected within our normal operating cycle of one year.

Allowance for Doubtful Accounts

We sell our products through a worldwide network of distributors, retailers and OEM customers. Logitech
generally does not require any collateral from its customers. However, we seek to control our credit risk through
ongoing credit evaluations of our customers’ financial condition.

We regularly evaluate the collectibility of our accounts receivable and maintain allowances for doubtful
accounts. The allowances are based on management’s assessment of the collectibility of specific customer accounts,
including their credit worthiness and financial condition, as well as the Company’s historical experience with bad
debts and customer deductions, receivables aging, current economic trends and geographic or country-specific
risks and the financial condition of our distribution channel. If management determines that a customer’s accounts
receivable balance is uncollectible, recognition of revenue from that customer is deferred until collectibility is
reasonably assured.

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As of March 31, 2010, one customer represented 14% of total accounts receivable. The customers comprising
the ten highest outstanding trade receivable balances accounted for approximately 58% of total accounts receivable as
of March 31, 2010. A deterioration of a significant customer’s financial condition could cause actual write-offs to be
materially different from the estimated allowance. If any of these customers’ receivable balances should be deemed
uncollectible or if actual write-offs are higher than historical experience, we would have to make adjustments to our
allowance for doubtful accounts, which could result in an increase in the Company’s operating expenses.

Inventory Valuation

The Company must order components for its products and build inventory in advance of customer orders.
Further, our industry is characterized by rapid technological change, short-term customer commitments and rapid
changes in demand.

We record inventories at the lower of cost or market value and record write-downs of inventories which are
obsolete or in excess of anticipated demand or market value. A review of inventory is performed each fiscal quarter
that considers factors including the marketability and product life cycle stage, product development plans, component
cost trends, demand forecasts and current sales levels. We identify inventory exposures by comparing inventory on
hand, in the channel and on order to historical and forecasted sales over six month periods. Inventory on hand which
is not expected to be sold or utilized based on review of forecasted sales and utilization is considered excess, and
we recognize the write-off in cost of sales at the time of such determination. At the time of loss recognition, a new,
lower-cost basis for that inventory is established and subsequent changes in facts and circumstances would not result
in an increase in the cost basis. If there were an abrupt and substantial decline in demand for Logitech’s products or
an unanticipated change in technological or customer requirements, we may be required to record additional write-
downs which could adversely affect gross margins in the period when the write-downs are recorded.

Share-Based Compensation Expense

Share-based compensation expense includes compensation expense, reduced for estimated forfeitures, for
awards granted after April 1, 2006 based on the grant-date fair value. The grant date fair value for stock options
and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing valuation model. The grant
date fair value of restricted stock units (“RSUs”) which vest upon meeting certain market conditions is estimated
using the Monte-Carlo simulation method. The grant date fair value of time-based RSUs is calculated based on the
share market price on the date of grant. For stock options and restricted stock assumed by Logitech when LifeSize
was acquired, the grant date used to estimate fair value is deemed to be December 11, 2009, the date of acquisition.
Compensation expense for awards granted or assumed after April 1, 2006 is recognized on a straight-line basis over
the service period of the award. For share-based compensation awards granted prior to but not yet vested as of April
1, 2006, share-based compensation expense is based on the grant-date fair value estimated using the Black-Scholes-
Merton option-pricing valuation model reduced for estimated forfeitures, and recognized on a straight-line basis
over the service period for each separately vesting portion of the award. See Note 13-Employee Benefit Plans in the
Notes to Consolidated Financial Statements for further discussion of share-based compensation.

Our estimates of share-based compensation expense require a number of complex and subjective assumptions
including our stock price volatility, employee exercise patterns, future forfeitures, dividend yield, related tax effects
and the selection of an appropriate fair value model. We estimate expected share price volatility based on historical
volatility using daily prices over the term of past options, RSUs or purchase offerings, as we consider historical share
price volatility as most representative of future volatility. We estimate expected life based on historical settlement
rates, which we believe are most representative of future exercise and post-vesting termination behaviors. We use
historical data to estimate pre-vesting forfeitures, and we record share-based compensation expense only for those
awards that are expected to vest. The dividend yield assumption is based on the Company’s history and future
expectations of dividend payouts.

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The assumptions used in calculating the fair value of share-based compensation expense and related tax effects
represent management’s best estimates, but these estimates involve inherent uncertainties and the application of
management judgment. As a result, if factors change and we use different assumptions, or if we decide to use a
different valuation model, our share-based compensation expense could be materially different in the future from
what we have recorded in the current period, which could materially affect our results of operations.

Accounting for Income Taxes

Logitech operates in multiple jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions.
The Company’s effective income tax rate may be affected by the changes in or interpretations of tax laws in any
given jurisdiction, utilization of net operating loss and tax credit carryforwards, changes in geographical mix of
income and expense, and changes in management’s assessment of matters such as the ability to realize deferred
tax assets. As a result of these considerations, we must estimate income taxes in each of the jurisdictions in which
we operate. This process involves estimating current tax exposure together with assessing temporary differences
resulting from different treatment of items for tax and accounting purposes. These differences result in deferred tax
assets and liabilities, which are included in the consolidated balance sheet.

We assess the likelihood that our deferred tax assets will be recovered from future taxable income, considering
all available evidence such as historical levels of income, expectations and risks associated with estimates of future
taxable income and ongoing prudent and feasible tax strategies. We believe it is more likely than not such assets will
be realized; however, ultimate realization could be negatively impacted by market conditions and other variables
not known or anticipated at this time. In the event we determine that we would not be able to realize all or part
of our deferred tax assets, an adjustment would be charged to earnings in the period such determination is made.
Likewise, if we later determine that it is more likely than not that the deferred tax assets would be realized, the
previously provided valuation allowance would be reversed.

We make certain estimates and judgments about the application of tax law, the expected resolution of uncertain
tax positions and other matters surrounding the recognition and measurement of uncertain tax benefits. In the
event that uncertain tax positions are resolved for amounts different than our estimates, or the related statutes of
limitations expire without the assessment of additional income taxes, we will be required to adjust the amounts of
the related assets and liabilities in the period in which such events occur. Such adjustments may have a material
impact on our income tax provision and our results of operations.

Valuation of Long-Lived Assets

We review long-lived assets, such as investments, property, plant and equipment, and goodwill and other
intangible assets for impairment whenever events indicate that the carrying amount of these assets might not be
recoverable. Factors considered important which could require us to review an asset for impairment include the
following:

•

significant underperformance relative to historical or projected future operating results;

significant changes in the manner of use of the assets or the strategy for the Company’s overall
business;

significant negative industry or economic trends;

significant decline in the Company’s stock price for a sustained period; and

• market capitalization relative to net book value.

Recoverability of investments, property, plant and equipment, and other intangible assets is measured by
comparing the projected undiscounted cash flows the asset is expected to generate with its carrying amount. If an
asset is considered impaired, the impairment to be recognized is measured by the excess of the carrying amount of
the asset over its fair value.

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We evaluate goodwill for impairment on an annual basis and whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable from our estimated future cash flows. Recoverability
of goodwill is measured at the reporting unit level by comparing the reporting unit’s carrying amount, including
goodwill, to the fair value of the reporting unit. If the carrying amount of the reporting unit exceeds its fair value,
goodwill is considered impaired, and a second test is performed to measure the amount of impairment loss. We
continue to maintain discrete financial information for 3Dconnexion and LifeSize, and accordingly determine
impairment for the goodwill acquired with these acquisitions at the entity level. All other acquired goodwill is
evaluated for impairment at a total enterprise level.

In determining fair value, we consider various factors including estimates of future market growth and
trends, forecasted revenue and costs, expected periods over which our assets will be utilized, and other variables.
We calculate the Company’s fair value based on the present value of projected cash flows using a discount rate
determined by management to be commensurate to the risk inherent in the Company’s current business model. To
date, we have not recognized any impairment of goodwill. Logitech bases its fair value estimates on assumptions
it believes to be reasonable, but which are inherently uncertain.

Recent Accounting Pronouncements

In October 2009, the Financial Accounting Standards Board (“FASB”) published Accounting Standards
Update (“ASU”) 2009-13, Multiple Deliverable Revenue Arrangements, which addresses the accounting for
multiple-deliverable arrangements to enable vendors to account for products or services separately rather than as
a combined unit. This guidance amends the criteria in ASC Subtopic 605-25, Revenue Recognition—Multiple-
Element Arrangements, to establish a selling price hierarchy for determining the selling price of a deliverable, based
on vendor specific objective evidence, acceptable third party evidence, or estimates. This guidance also eliminates
the residual method of allocation and requires that arrangement consideration be allocated at the inception of
the arrangement to all deliverables using the relative selling price method. In addition, the disclosures required
for multiple-deliverable revenue arrangements are expanded. ASU 2009-13 is effective for revenue arrangements
entered into or materially modified in fiscal years beginning on or after June 15, 2010, with early adoption permitted.
We are currently evaluating the appropriate timing for the adoption of ASU 2009-13 and its potential impact on the
Company’s consolidated financial statements and disclosures.

In October 2009, the FASB published ASU 2009-14, Certain Revenue Arrangements That Include Software
Elements, to provide guidance for revenue arrangements that include both tangible products and software elements.
Under this guidance, tangible products containing software components and non-software components that
function together to deliver the product’s essential functionality are excluded from the software revenue guidance
in Accounting Standards Codification (“ASC”) Subtopic 985-605, Software-Revenue Recognition. In addition,
hardware components of a tangible product containing software components are always excluded from the
software revenue guidance. ASU 2009-14 is effective for revenue arrangements entered into or materially modified
in fiscal years beginning on or after June 15, 2010, with early adoption permitted. We are currently evaluating
the appropriate timing for the adoption of ASU 2009-14 and its potential impact on the Company’s consolidated
financial statements and disclosures.

In January 2010, the FASB published ASU 2010-06, Improving Disclosures about Fair Value Measurement,
which requires additional disclosures regarding the activity in fair value measurements classified as Level 3 in the
fair value hierarchy. Disclosure of activity in Level 3 fair value measurements is required for fiscal years beginning
after December 15, 2010. Early adoption is permitted. We will provide these disclosures beginning in the first
quarter of fiscal year 2011, when such activity occurs.

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market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it
otherwise qualifies as equity. The ASU is effective for fiscal years, and interim periods within those fiscal years,
beginning on or after December 15, 2010. Earlier adoption is permitted. Our adoption of ASU 2010-13 in the first
quarter of fiscal year 2011 will not impact the Company’s consolidated financial statements.

Results of Operations

Net Sales

Net sales by channel for fiscal years 2010, 2009 and 2008 were as follows (in thousands):

Net sales by channel:

Year Ended March 31,
2009

2008

2010

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,745,152 $ 1,887,343 $ 2,067,288
303,208
OEM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
—
LifeSize . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales . . . . . . . . . . . . . . . . . . . . . $ 1,966,748 $2,208,832 $ 2,370,496

198,364
23,232

321,489
—

Change %

2010 vs
2009

(8)%
(38)%
0%
(11)%

2009 vs
2008

(9)%
6%
0%
(7)%

The decreases in retail sales in fiscal years 2009 and 2010 reflected the global economic downturn. The
impact began in the third quarter of fiscal year 2009 and continued through the second quarter of fiscal year 2010.
During this period, our retail sales were affected by consumers’ reluctance to spend, their buying preference for
lower-price products and their strong response to promotions, as well as our customers’ alignment of inventory
levels with the declining consumer demand. Sales of products priced below $40 represented 57% of retail sales in
fiscal year 2010, compared with 50% in fiscal year 2009 and 49% in fiscal year 2008. Retail units decreased 2%
in fiscal year 2010, compared with a 5% decrease in 2009, indicating the beginnings of economic stabilization.
Foreign currency exchange rates did not affect the retail sales decline.

The significant decline in OEM sales for fiscal year 2010 compared with 2009 was attributable to the
popularity of our console microphones in fiscal year 2008 and the first three quarters of fiscal year 2009. These
products reached the latter stages of the typical gaming sales cycle in the fourth quarter of fiscal year 2009. OEM
units sold decreased 25% during fiscal year 2010 and increased 2% in fiscal year 2009, compared with the prior
fiscal years. Foreign currency exchange rates did not significantly affect the OEM sales decline.

LifeSize net sales represent sales of video conferencing units and related software and services for the period
from December 11, 2009, the date of acquisition, to the end of the fiscal year. Although we consider LifeSize a
separate operating segment, based on financial measurements for the fiscal year ended March 31, 2010 and our
near-term expectations, the LifeSize segment does not meet the quantitative threshold for separate disclosure of
financial information required by generally accepted accounting principles in the United States.

Approximately 51%, 46% and 45% of the Company’s total net sales were denominated in currencies other
than the U.S. dollar in fiscal years 2010, 2009 and 2008. If foreign currency exchange rates had been the same in
fiscal years 2010 and 2009, our constant dollar sales decline would have been 12%. If foreign currency exchange
rates had been the same in fiscal years 2009 and 2008, our constant dollar sales decrease would have been 6%.

We refer to our net sales excluding the impact of foreign currency exchange rates as constant dollar sales.
Constant dollar sales are a non-GAAP financial measure, which is information derived from consolidated
financial information but not presented in our financial statements prepared in accordance with U.S. GAAP. Our
management uses these non-GAAP measures in its financial and operational decision-making, and believes these
non-GAAP measures, when considered in conjunction with the corresponding GAAP measures, facilitate a better
understanding of changes in net sales. Constant dollar sales are calculated by translating prior period sales in each
local currency at the current period’s average exchange rate for that currency.

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Retail Sales by Region

The following table presents the change in retail sales by region for fiscal year 2010 compared with fiscal year

2009, and fiscal year 2009 compared with fiscal year 2008:

Year Ended March 31,

2010 vs 2009

2009 vs 2008

Change in retail sales by region:

EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total retail sales . . . . . . . . . . . . . . . . . . . . . . .

(11)%
1%
(16)%
(8)%

(11)%
(15)%
16%
(9)%

Sales in the EMEA region decreased in all product families except audio in fiscal year 2010 compared with
2009, reflecting the effects of the global economic downturn. For the same reason in fiscal year 2009, the EMEA
region experienced sales decreases in all product families compared with the prior year. Retail units sold declined
5% and 8% in fiscal years 2010 and 2009 compared with the prior year. In both fiscal years 2010 and 2009, sales
in Eastern Europe and other emerging markets were depressed, reflecting the economic downturn, customers’
lack of available credit to finance purchases of inventory, and currency volatility. The percentage decline in
retail sell-through in the EMEA region for fiscal year 2010 was less than the decline in sell-in, which indicates
comparatively stronger consumer demand for our products than our sales results reflected, as well as a continuance
of the realignment of our channel partners’ weeks of supply levels. If foreign currency exchange rates had been the
same in fiscal years 2010 and 2009, our EMEA constant dollar retail sales decline would have been 12%. If foreign
currency exchange rates had been the same in fiscal years 2009 and 2008, our EMEA constant dollar retail sales
decrease would have been 8%.

Retail sales were essentially flat in the Americas region in fiscal year 2010 compared with 2009, reflecting
modest economic stability in the region. Sales of pointing devices, keyboards and desktops, and remotes increased.
The 15% decrease in sales in fiscal year 2009 compared with 2008 was driven by declines in all product families
except video. Total retail units sold in the Americas region in fiscal year 2010 increased 7% over the prior year,
an indication of consumers’ preference for value-segment products, compared with a 5% decrease in fiscal year
2009. Retail sell-through in fiscal year 2010 was also essentially flat compared with the prior year, as our channel
partners, during the first half of the year, completed the realignment of their weeks of supply levels. Foreign
currency exchange rates had no significant effect on retail sales in the Americas region in either fiscal year 2010
or fiscal year 2009.

Retail sales in the Asia Pacific region declined in all product families during fiscal year 2010 compared
with 2009, as our channel partners completed their alignment of inventory levels with consumer demand. This
alignment activity was also reflected by positive sell-through compared with the sell-in decline. In fiscal year 2009,
before the economic downturn affected the region, retail sales increased in all product families compared with the
prior year. Correspondingly, total retail units sold in the Asia Pacific region declined 10% in fiscal year 2010 and
increased 11% in fiscal year 2009 compared with the prior years. If foreign currency exchange rates had been the
same in fiscal years 2010 and 2009, our Asia Pacific constant dollar retail sales decline would have been 17%. If
foreign currency exchange rates had been the same in fiscal years 2009 and 2008, our Asia Pacific constant dollar
retail sales increase would have been 12%.

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Net Retail Sales by Product Family

Net retail sales by product family for fiscal years 2010, 2009 and 2008 were as follows (in thousands):

Retail — Pointing Devices . . . . . . . . . . . . . . .
Retail — Keyboards & Desktops . . . . . . . . . .
Retail — Audio . . . . . . . . . . . . . . . . . . . . . . . .
Retail — Video . . . . . . . . . . . . . . . . . . . . . . . .
Retail — Gaming . . . . . . . . . . . . . . . . . . . . . .
Retail — Remotes . . . . . . . . . . . . . . . . . . . . . .
Total net retail sales . . . . . . . . . . . . . . . . .

2010

Year Ended March 31,
2009
579,775 $
384,809
445,362
248,339
127,052
102,006

2008
615,524
464,984
478,455
238,728
146,016
123,581
$ 1,745,152 $ 1,887,343 $ 2,067,288

$ 528,236 $
329,038
454,957
228,344
107,595
96,982

Change %

2010 vs
2009
(9)%
(14)%
2%
(8)%
(15)%
(5)%
(8)%

2009 vs
2008
(6)%
(17)%
(7)%
4%
(13)%
(17)%
(9)%

Logitech’s Pointing Devices product family includes our mice, trackballs and other pointing devices.
Keyboards and desktops (mouse and keyboard combined) include cordless and corded keyboards and desktops.
Audio includes speakers and headset products for the PC, the home, and mobile entertainment platforms, and
wireless music systems. Our video product family is comprised of PC webcams and WiLife video security systems.
Gaming includes console and PC gaming peripherals. The Remotes product family is comprised of our advanced
remote controls. Net sales reflect accruals for product returns, cooperative marketing arrangements, customer
incentive programs and pricing programs.

Retail — Pointing Devices

Retail unit sales of our pointing devices decreased 2% in both fiscal years 2010 and 2009 compared with the
prior fiscal years. Sales of corded mice declined 19% in fiscal year 2010 and 13% in fiscal year 2009, with units
decreasing 11% and 8%. Sales of cordless mice decreased 3% in fiscal year 2010 and increased 4% in fiscal year
2009. Unit sales of cordless mice increased 15% in fiscal year 2010 and 10% in fiscal year 2009, driven by sales
of our notebook mice, including in 2010 the Performance Mouse MX and the Anywhere Mouse MX, both with
Darkfield Laser Tracking, and in 2009 the V450 Nano Cordless Mouse and the V220 Cordless Optical Mouse. The
slower decline or higher increase in unit sales compared with dollar sales for cordless and corded mice indicates
consumers’ current preference for the value segment of our product lines.

Retail — Keyboards and Desktops

Retail unit sales of keyboards and desktops decreased 11% and 10% during fiscal years 2010 and 2009. Sales
of corded keyboards and desktops decreased 11% and 5% in fiscal years 2010 and 2009, while units decreased 17%
and 7%. In fiscal year 2010, cordless keyboards and desktops decreased 20% in sales and 5% in units. Sales of the
MK300 wireless desktop and the EX 100 cordless desktop were strong, but were offset by declines in sales of the
EX 110 cordless desktop. In fiscal year 2009, sales of cordless keyboards and desktops decreased 21%, with a 17%
decline in units. Strong sales of our cordless desktops EX 100 and MX 5500 were offset by declines in sales of the
MX5000 Laser and EX 110 cordless desktops.

Retail Audio

Retail audio unit sales increased 11% in fiscal year 2010 and decreased 2% in fiscal year 2009. PC speaker
sales decreased 7% in dollars, but increased 7% in units in fiscal year 2010, following a decline of 20% in dollars
and 8% in units in fiscal year 2009. The decline in PC speaker sales was primarily attributable to product transitions
and the weak demand environment. Sales of our iPod speakers increased 1% in dollars and 8% in units in fiscal year
2010 compared with increases of 22% and 8% in fiscal year 2009. Sales of our PureFi Anywhere 2 speakers made
strong contributions to the increases in both fiscal years 2010 and 2009. In fiscal year 2010, the S315i Rechargeable
Speaker and the S215i Portable Speaker also made positive contributions to sales. PC headset sales grew 23%
in fiscal year 2010 and 9% in fiscal year 2009, with units increasing 22% and 3%. Ultimate Ears products also
provided positive contributions to retail audio sales in both fiscal years 2010 and 2009.

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Retail Video

Video sales decreased 8% in fiscal year 2010 after increasing 4% in fiscal year 2009, compared with the
previous years. Units sold increased 2% and 3% in fiscal years 2010 and 2009. The sales fluctuations were primarily
attributable to our WiLife video security products, which sold well in fiscal year 2009, and were negatively affected
in fiscal year 2010 by a planned future product transition. Strong sellers in our webcam family included the value-
priced C250 and C200 webcams in fiscal year 2010, and our Communicate MP and QuickCam Connect webcams
in fiscal year 2009.

Retail Gaming

Retail unit sales of our gaming peripherals decreased 26% in fiscal year 2010, compared with a decrease of
22% in fiscal year 2009. PC gaming sales decreased 12% and 13% in fiscal years 2010 and 2009 compared with the
previous year. Unit sales of PC gaming peripherals decreased 25% and 18% in fiscal years 2010 and 2009. In the
cyclical manner typical of gaming peripherals, sales of our G25 Racing Wheel, popular in fiscal year 2009, were
replaced by our G27 Racing Wheel, with lower sales of the G15 Gaming Keyboard in both years. Console gaming
sales declined 27% and 12%, with unit declines of 27% and 28% in fiscal years 2010 and 2009.

Retail Remotes

Retail remote sales decreased 5% in fiscal year 2010 compared with the decline of 17% in fiscal year 2009.
Unit sales decreased 14% in fiscal year 2010 compared with an 8% increase in fiscal year 2009, reflecting strong
sales of our lower-priced Harmony One remote control and increased promotional activity in both years, and our
newer Harmony 900 and Harmony 700 Advanced Universal Remote in fiscal year 2010.

Gross Profit

Gross profit for fiscal years 2010, 2009 and 2008 was as follows (in thousands):

Net sales . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . .
Gross margin . . . . . . . . . . . . . . . . . . . .

2010
$ 1,966,748
1,339,852
$ 626,896

Year Ended March 31,
2009
$ 2,208,832
1,517,606
$ 691,226

2008
$ 2,370,496
1,521,378
849,118

31.9%

31.3%

35.8%

Change %

2010 vs
2009
(11)%
(12)%
(9)%

2009 vs
2008
(7)%
0%
(19)%

Gross profit consists of net sales, less cost of goods sold which includes materials, direct labor and related
overhead costs, costs of manufacturing facilities, costs of purchasing components from outside suppliers, distribution
costs and write-down of inventories.

The improvement in the gross margin percentage in fiscal year 2010 over fiscal year 2009 was primarily
due to operational efficiencies across our supply chain, including lower product costs as well as faster inventory
turnover, and a favorable shift in product mix towards products with higher margins. Gross profit in fiscal year
2009 decreased 19% in dollars and declined as a percentage of revenue compared with fiscal year 2008 primarily
due to the decline in net sales, an increasingly promotional environment, the mix of products sold, and higher
freight and intangible amortization costs.

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Operating Expenses

Operating expenses for fiscal years 2010, 2009 and 2008 were as follows (in thousands):

Marketing and selling . . . . . . . . . . . . . . . . . . .
% of net sales . . . . . . . . . . . . . . . . . . . . . . .
Research and development . . . . . . . . . . . . . . .
% of net sales . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . .
% of net sales . . . . . . . . . . . . . . . . . . . . . . .
Restructuring charges . . . . . . . . . . . . . . . . . . .
% of net sales . . . . . . . . . . . . . . . . . . . . . . .
Total operating expenses . . . . . . . . . . . . . . . . .
% of net sales . . . . . . . . . . . . . . . . . . . . . . .

2010
$304,788

Year Ended March 31,
2009
$ 319,167

2008
$ 324,451

2010 vs
2009
(5)%

2009 vs
2008
(2)%

Change %

15.5%

14.4%

13.7%

135,813

128,755

124,544

6.9%

5.8%

5.3%

106,147

113,103

113,443

(6)%

5.4%

1,784

0.1%

5.1%

20,547

0.9%

4.8%
—
0.0%

(91)%

$548,532

$ 581,572

$562,438

(6)%

27.9%

26.3%

23.7%

Total operating expenses for fiscal year 2009, excluding the impact of restructuring charges, were comparable
to fiscal year 2008. In fiscal year 2010, operating expenses declined less than net sales declined, as the Company
continued to invest in product development and other areas to help ensure we were positioned for the resumption
of revenue growth when economic conditions improved. We expect to limit future growth in operating expenses
below the growth rate in revenues, restraining or reducing non-critical expenses while investing in activities that
will sustain and drive revenue growth.

We refer to our operating expenses excluding the impact of foreign currency exchange rates as constant
dollar operating expenses. Constant dollar operating expenses are a non-GAAP financial measure, which is
information derived from consolidated financial information but not presented in our financial statements prepared
in accordance with U.S. GAAP. Our management uses these non-GAAP measures in its financial and operational
decision-making, and believes these non-GAAP measures, when considered in conjunction with the corresponding
GAAP measures, facilitate a better understanding of changes in operating expenses. Constant dollar operating
expenses are calculated by translating prior period operating expenses in each local currency at the current period’s
average exchange rate for that currency.

Marketing and Selling

Marketing and selling expense consists of personnel and related overhead costs, corporate and product

marketing, promotions, advertising, trade shows, customer and technical support and facilities costs.

The decline in marketing and selling expenses in fiscal year 2010 compared with fiscal year 2009 resulted
primarily from lower spending in marketing development funds, travel expenses and consulting fees. The decrease in
spending between fiscal years 2009 and 2008 was the result of lower spending in advertising, marketing development
funds, and travel expenses. These decreases in marketing costs related to the alignment of promotional expenditures
with current sales levels and targeted product promotion activities which occurred in fiscal year 2008.

Personnel costs increased in fiscal years 2010 and 2009 over the preceding fiscal years partially due to the
addition of LifeSize sales and marketing personnel in fiscal year 2010 and the WiLife product marketing group in
fiscal year 2009, and partially relating to the comparison of periods in which discretionary personnel costs were
reduced. Bad debt expense declined significantly in fiscal year 2010 as economic conditions stabilized, after increasing
significantly in fiscal year 2009 as a result of customers’ financial difficulties related to the economic downturn.

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If foreign currency exchange rates had been the same in fiscal years 2010 and 2009, the percentage decrease
in constant dollar marketing and selling expense for fiscal year 2010 would not have changed. The impact of year-
over-year exchange rate changes on translation of foreign currency marketing and selling expenses to our U.S.
dollar financial statements was not material in fiscal year 2009 compared with fiscal year 2008.

Research and Development

Research and development expense consists of personnel and related overhead costs, contractors and outside
consultants, supplies and materials, equipment depreciation and facilities costs, all associated with the design and
development of new products and enhancements of existing products.

The increases in research and development expenses in fiscal years 2010 and 2009 resulted from the addition
of research and development costs of companies acquired in fiscal years 2010, 2009 and 2008. Personnel costs were
approximately the same in fiscal years 2009 and 2008, but increased in fiscal year 2010 in comparison with fiscal
year 2009, when discretionary personnel costs were reduced.

If foreign currency exchange rates had been the same in fiscal years 2010 and 2009, the change in constant
dollar research and development expense would have been 5%, the same as the change in U.S. dollars. In fiscal year
2009, exchange rate changes, particularly from the stronger Swiss franc and Taiwanese dollar relative to the U.S.
dollar, contributed to the increase in research and development expense.

General and Administrative

General and administrative expense consists primarily of personnel and related overhead and facilities costs

for the finance, information systems, executive, human resources and legal functions.

General and administrative expense was approximately the same in fiscal years 2009 and 2008, and declined
in fiscal year 2010. The decline in fiscal year 2010 was primarily due to a decrease of 5% in personnel costs, as
headcount was reduced, although the headcount reduction was offset by the addition of LifeSize personnel in the
fourth fiscal quarter. Personnel costs increased 2% during fiscal year 2009 primarily due to an increase in share-
based compensation expense. Decreases in travel and infrastructure expenses in fiscal year 2010 were partially
offset by $6.6 million in transaction costs related to the acquisition of LifeSize. Consulting fees and travel expenses
decreased in fiscal year 2009 compared with fiscal year 2008 as a result of cost containment efforts.

If foreign currency exchange rates had been the same in fiscal years 2010 and 2009, the percentage decrease
in constant dollar general and administrative expense for fiscal year 2010 would have been 7%. Exchange rate
changes, particularly from the stronger Swiss franc relative to the U.S. dollar, contributed to the increase in general
and administrative expense in fiscal year 2009.

Restructuring Charges

Restructuring charges consist of termination benefits, asset impairment charges, contract termination costs
and other charges associated with the restructuring plan initiated in January 2009. In the period from January 2009
to March 31, 2010, we incurred pre-tax restructuring charges of $22.3 million.

The restructuring plan reduced our salaried workforce by approximately 500 employees, resulting in
$17.8 million in termination benefits to those employees. Termination benefits were calculated based on regional
benefit practices and local statutory requirements. An additional $3.4 million in pension plan curtailment and
settlement costs were incurred in fiscal year 2009 as a result of the terminations. Restructuring charges also
included exit costs associated with the closure of existing facilities and write downs of fixed assets that were not
placed in service due to the abandonment of the related projects.

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The restructuring was completed as of March 31, 2010. The cost savings realized from the restructuring are
partially offset in the operating results of fiscal year 2010 by the addition of LifeSize’s operating expenses and by
increased spending to support the return to revenue growth.

The following table summarizes restructuring-related activities during fiscal years 2010 and 2009

(in thousands). No restructuring costs were incurred in fiscal year 2008.

Balance at March 31, 2008 . . . . . . . . . . . . . . . . .
Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash payments . . . . . . . . . . . . . . . . . . . . . . . .
Charges against assets . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . . . . . .
Balance at March 31, 2009 . . . . . . . . . . . . . . . . .
Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash payments . . . . . . . . . . . . . . . . . . . . . . . .
Charges against assets . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . . . . . .
Balance at March 31, 2010 . . . . . . . . . . . . . . . . . .

Interest Income, Net

Termination
Benefits
—
16,427
(12,579)
—
(121)
52
3,779
1,318
(5,098)
—
53
106
158

Asset
Impairments
$ —
556
—
(556)
—
—
$ —
—
—
—
—
—
$ —

Contract
Termination
Costs
$ —
200
(185)
—
—
—
$ 15
419
(96)
—
(4)
—
$ 334

Other
$ —
3,364
—
—
(3,364)
—
$ —
47
—
—
(135)
(5)
(93)

Total

— $

20,547
(12,764)
(556)
(3,485)
52
$ 3,794
1,784
(5,194)
—
(86)
101
399

Interest income and expense for fiscal years 2010, 2009 and 2008 were as follows (in thousands):

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,
2009
$8,648
(20)
$8,628

2008
$ 15,752
(244)
$ 15,508

2010
$ 2,406
(286)
$ 2,120

Change %

2010 vs
2009
(72)%
1330%
(75)%

2009 vs
2008
(45)%
(92)%
(44)%

Interest income declined in fiscal years 2010 and 2009 compared with 2008 due to lower invested balances

and significantly lower interest rates.

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Other Income (Expense), Net

Other income and expense for fiscal years 2010, 2009 and 2008 were as follows (in thousands):

Foreign currency exchange gains, net . . . . . . . . . .
Write-down of investments . . . . . . . . . . . . . . . . . .
Gain on sale of investments, net . . . . . . . . . . . . . . .
Insurance investment income (loss) . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expense), net . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2010
$ 1,720
(643)
—
1,221
841
$ 3,139

2009
$ 13,680
(2,727)
—
(2,883)
441
$ 8,511

2008
$ 10,616
(79,823)
27,761
710
1,362
$ (39,374)

Change %

2010 vs
2009
(87)%
(76)%
0%
(142)%
91%
(63)%

2009 vs
2008
29%
(97)%
(100)%
(506)%
(68)%
(122)%

Foreign currency exchange gains or losses relate to balances denominated in currencies other than the
functional currency of a particular subsidiary, to the sale of currencies, and to gains or losses recognized on foreign
exchange forward contracts. The higher foreign exchange gains during fiscal year 2009 were due to gains on sales
of euros for U.S. dollars. The gains on currency sales in fiscal year 2010 were offset by losses on foreign exchange
forward contracts intended to reduce the short-term effects of foreign currency fluctuations on foreign currency
receivables or payables. We do not speculate in currency positions, but we are alert to opportunities to maximize
foreign exchange gains.

We recorded write-downs of $0.6 million, $2.7 million and $79.8 million in fiscal years 2010, 2009 and 2008
related to other-than-temporary declines in the estimated fair value of our investment securities. During fiscal year
2008, we also recorded a realized gain of $33.7 million on investments sold as part of a confidential settlement
agreement, and a realized loss of $6.0 million on the sale of investments collateralized by corporate debt.

Insurance investment income or loss represents changes in the cash surrender value of Company-owned life

insurance contracts related to a management deferred compensation plan offered by one of our subsidiaries.

Other income in fiscal year 2008 also includes a gain of $1.0 million on the sale of our ioPen retail product

line.

Provision for Income Taxes

The provision for income taxes and effective income tax rate for fiscal years 2010, 2009 and 2008 were as

follows (in thousands):

Provision for income taxes . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . .

2010
$ 18,666

Year Ended March 31,
2009
$ 19,761

2008
$ 31,788

22.3%

15.6%

12.1%

The provision for income taxes consists of income and withholding taxes. Logitech operates in multiple
jurisdictions and its profits are taxed pursuant to the tax laws of these jurisdictions. The Company’s effective
income tax rate may be affected by the changes in or interpretations of tax laws in any given jurisdiction, utilization
of net operating loss and tax credit carryforwards, changes in geographical mix of income and expense, and change
in management’s assessment of matters such as the ability to realize deferred tax. The increase in the effective
income tax rate to 22.3% compared with 15.6% in fiscal year 2009 is due to the mix of income and losses in the
various tax jurisdictions in which we operate. The increase in the effective income tax rate to 15.6% in fiscal year
2009 compared with 12.1% in fiscal year 2008 is primarily due to the mix of income and losses in the various tax
jurisdictions in which we operate and the decrease in income before income taxes.

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The U.S. Federal research tax credit expired as of December 31, 2009. The U.S. House of Representatives in
December 2009 and the U.S. Senate in March 2010 passed different draft legislation which would extend the tax
credit for an additional year, however the extension has not yet passed into law as of March 31, 2010. Accordingly,
our income tax provision for fiscal year 2010 includes a tax benefit for the Federal research tax credit of $0.9 million
calculated through December 31, 2009.

The U.S. state of California has enacted legislation affecting the methodology which must be used by corporate
taxpayers to apportion income to California. These changes will become effective for our fiscal year ending March
31, 2012. Although the Company has significant operations in California, we believe these changes will not have a
material impact on our results of operations or financial condition.

Liquidity and Capital Resources

Cash Balances, Available Borrowings, and Capital Resources

At March 31, 2010, our working capital was $353.4 million, compared with $709.4 million at March 31, 2009.
The decrease in working capital over the prior year was due to the cash paid for the acquisition of LifeSize, offset
by decreases in accounts receivable and inventories, and increases in accounts payable and accrued liabilities.

During fiscal year 2010, operating activities provided net cash of $365.3 million, generated from cash
collections on accounts receivable, inventory management efforts, and increases in short-term liabilities. We used
$427.8 million in investing activities, including $378.6 million for the acquisition of LifeSize, net of cash acquired of
$3.7 million, $10.0 million for certain assets of TV Compass, and $39.8 million for investments in tooling, computer
hardware, and software. Net cash used in financing activities was $108.2 million, primarily for the repurchase of
shares under our share buyback programs and the repayment of short and long-term debt assumed in the LifeSize
acquisition, partially offset by proceeds from employee stock purchases and the exercise of stock options.

At March 31, 2010, we had cash and cash equivalents of $319.9 million, comprised of bank demand deposits
and short-term time deposits. Cash and cash equivalents are carried at cost, which is equivalent to fair value. In
addition, we hold investments consisting of auction rate securities with an estimated fair value of $1.0 million, which
are carried in non-current assets, as sale or realization of proceeds from the sale of these securities is not expected
within our normal operating cycle of one year. The fair value of these securities at March 31, 2010 was determined
by estimating future cash flows, either through discounted cash flow or option pricing methods, incorporating
assumptions of default and other future conditions. During fiscal year 2010, we recorded an impairment loss of $0.6
million related to the other-than-temporary decline in the fair value of these securities. Further changes in the fair
value of our investment securities would not materially affect our liquidity or capital resources.

The Company has credit lines with several European and Asian banks totaling $151.9 million as of
March 31, 2010. As is common for businesses in European and Asian countries, these credit lines are uncommitted
and unsecured. Despite the lack of formal commitments from the banks, we believe that these lines of credit will
continue to be made available because of our long-standing relationships with these banks and our current financial
condition. At March 31, 2010, there were no outstanding borrowings under these lines of credit. There are no
financial covenants under these facilities.

We provide various third parties with irrevocable letters of credit in the normal course of business to secure
our obligations to pay or perform pursuant to the requirements of an underlying agreement or the provision of goods
and services. These standby letters of credit are cancelable only at the option of the beneficiary who is authorized
to draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance with its terms.
At March 31, 2010, we had $3.4 million of letters of credit in place, of which $0.3 million was outstanding. These
letters of credit related primarily to equipment purchases by a subsidiary in China, and expire between April and
June 2010.

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The Company has financed its operating and capital requirements primarily through cash flow from operations
and, to a lesser extent, from capital markets and bank borrowings. Our normal short-term liquidity and long-term
capital resource requirements are provided from three sources: cash flow generated from operations, cash and cash
equivalents on hand, and borrowings, as needed, under our credit facilities.

Based upon our available cash balances and credit lines, and the trend of our historical cash flow generation,

we believe we have sufficient liquidity to fund operations for the foreseeable future.

Cash Flow from Operating Activities

The following table presents selected financial information and statistics for fiscal years 2010, 2009 and 2008

(dollars in thousands):

Accounts receivable, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Days sales in accounts receivable (DSO)(1). . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventory turnover (ITO)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,
2009
$ 213,929
$233,467
$ 709,382
47 days
5.2x
$200,587

2010
$ 195,247
$ 219,593
$ 353,370
33 days
6.1x
$365,259

2008
$ 373,619
$ 245,737
$723,221
56 days
6.3x
$ 393,079

(1) DSO is determined using ending accounts receivable as of the most recent quarter-end and net sales for the

(2)

most recent quarter.
ITO is determined using ending inventories and annualized cost of goods sold (based on the most recent
quarterly cost of goods sold).

During fiscal year 2010, the Company’s operating activities generated net cash of $365.3 million, compared
with $200.6 million in 2009 and $393.1 million in 2008. The increase in 2010 was due primarily to targeted
management of working capital, reflected in the lower DSO and higher ITO.

DSO for fiscal year 2010 improved by 14 days compared with fiscal year 2009 and 23 days over fiscal year
2008, due to improved cash collections and increased order and shipment linearity. Typical payment terms require
customers to pay for product sales generally within 30 to 60 days; however, terms may vary by customer type, by
country and by selling season. Extended payment terms are sometimes offered to a limited number of customers
during the second and third fiscal quarters. The Company does not modify payment terms on existing receivables,
but may offer discounts for early payment.

Inventory turnover for fiscal year 2010 increased compared with 2009. Inventory turnover declined between

fiscal years 2009 and 2008 because sales decreased at a faster rate than inventory was reduced.

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Cash Flow from Investing Activities

Cash flows from investing activities during fiscal years 2010, 2009 and 2008 were as follows (in thousands):

Acquisitions and investments, net of cash acquired. . . . . . . . . . . . . . .
Purchases of property, plant and equipment . . . . . . . . . . . . . . . . . . . .
Purchases of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from cash surrender of life insurance policies . . . . . . . . . . .
Premiums paid on cash surrender value life insurance policies . . . . .
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . .

2010
$(388,809)
(39,834)
—
—
—
813
—
$ (427,830)

Year Ended March 31,
2009
$ (64,430)
(48,263)
—
—
—
—
(427)
$ (113,120)

2008
$ (59,722)
(57,900)
(379,793)
538,479
13,308
—
(1,151)
$ 53,221

In fiscal year 2010, we acquired LifeSize Communications for $378.6 million, net of cash acquired of
$3.7 million, and certain assets of TV Compass for $10 million. In fiscal year 2009, we acquired the Ultimate
Ears companies for $32.3 million, net of cash acquired of $0.2 million, including transaction costs of $0.5 million
and excluding a $1.8 million holdback provision which was recorded as a liability in the consolidated financial
statements. We also acquired SightSpeed in fiscal year 2009 for $30.9 million in cash including transaction costs of
$0.8 million. In addition, we paid $2.0 million for a pre-acquisition contingency recorded during the third quarter
of fiscal year 2009 related to our WiLife acquisition and $0.4 million for patent rights acquired pursuant to a patent
settlement agreement. In fiscal year 2008, we acquired WiLife, Inc. for $22.0 million, net of cash acquired of
$0.1 million and including $0.5 million in transaction costs. We also paid a deferred payment in fiscal year 2008 of
$37.7 million to the former shareholders of Intrigue Technologies, Inc., which we acquired in May 2004.

Our purchases of plant and equipment during fiscal years 2010 and 2009 were principally for computer hardware
and software purchases, machinery and equipment and normal expenditures for tooling. In fiscal year 2008, we also
purchased machinery and equipment for two new production and manufacturing facilities, including a new surface
mount technology factory in China, and leasehold improvements for a new office facility in Switzerland. Purchasing
activity was lower in fiscal years 2010 and 2009 as we focused our cash outlays on critical capital needs.

During the third quarter of fiscal year 2008, we sold 50% of our investment securities as part of a confidential
settlement agreement and received $84.3 million in cash. In addition, we sold our remaining investments
collateralized by corporate debt for $28.3 million, at a realized loss of $6.0 million. We also reinvested $130.9 million
into short-term bank deposits, which are classified as cash equivalents in the Company’s balance sheet. The balance
of the activity in investments related to purchases and sales made during the first quarter of fiscal year 2008. The
Company no longer invests in auction rate securities.

We received $11.3 million during fiscal year 2008 from the sale in fiscal year 2007 of the balance of our
investment in Anoto Group A.B. We also received $2.0 million from the sale of our ioPen retail product line in
fiscal year 2008.

The proceeds from cash surrender and the premiums paid on life insurance relate to investments of a

management deferred compensation plan offered by one of the Company’s subsidiaries.

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Cash Flow from Financing Activities

The following tables present information on our cash flows from financing activities, including information

on our share repurchases during fiscal years 2010, 2009 and 2008 (in thousands except per share amounts):

Purchases of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of shares upon exercise of options

and purchase rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayments of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . .

Number of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2010
$(126,301)

Year Ended March 31,
2009
$ (78,870)

2008
$ (219,742)

28,917
(13,630)
2,814
$(108,200)

31,119
—
6,592
$ (41,159)

50,603
(11,739)
15,231
$(165,647)

Year Ended March 31,

2010
7,425
$ 126,301
17.01
$

2009
2,803
$ 78,870
28.14
$

2008
7,784
$ 219,742
28.23
$

During fiscal year 2010 and 2009, we repurchased 7.4 million and 2.8 million shares for $126.3 million and
$78.9 million under our buyback program announced in June 2007. In fiscal year 2008, we repurchased 7.8 million
shares for $219.7 million under buyback programs announced in June 2007 and May 2006. The June 2007 buyback
program, which was completed in March 2010, and the May 2006 buyback program, which was completed in
February 2008, each authorized the purchase of up to $250.0 million in Logitech shares.

In fiscal years 2010, 2009 and 2008, we received proceeds from the sale of 3.1 million, 3.1 million and
4.7 million shares upon exercise of employee stock options and share purchases under our stock plans. In addition,
cash was provided in each of those fiscal years from tax benefits on the exercise of share-based payment awards.

In fiscal year 2010, we repaid $13.6 million of short and long-term debt assumed when we acquired LifeSize

Communications. During fiscal year 2008, we repaid in full our short-term debt borrowings of $11.7 million.

Cash Outlook

We have financed our operations and capital requirements primarily through cash flow from operations and,
to a lesser extent, capital markets and bank borrowings. Our working capital requirements and capital expenditures
may increase to support future expansion of Logitech operations. Future acquisitions or expansion of our operations
may be significant and may also require the use of cash. In addition, future deterioration of global economic
conditions could adversely affect our operations and require the use of cash.

In September 2008, our Board of Directors approved a new share buyback program, which authorizes the
Company to invest up to $250 million to purchase its own shares. The September 2008 program is subject to
the completion of our current share buyback program of $250 million, which occurred in March 2010. As of
May 27, 2010, we have not started repurchases under the September 2008 program.

In the fiscal quarter ended March 31, 2009, we initiated a restructuring plan in order to reduce operating
expenses and improve financial results in response to deteriorating global economic conditions. We incurred pre-
tax restructuring charges of $20.5 million in the three months ended March 31, 2009 and $1.8 million in the fiscal
year ended March 31, 2010 related to employee termination costs, contract termination costs, and other associated
costs. The restructuring was completed as of March 31, 2010. The cost savings realized from the restructuring are
partially offset in the operating results of fiscal year 2010 by the addition of LifeSize’s operating expenses and by
increased spending to support the return to revenue growth.

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In December 2009, we acquired LifeSize Communications, Inc., a privately held company specializing in high
definition video communication products and services. In connection with the merger, Logitech agreed to establish
a cash and stock option retention and incentive plan for certain LifeSize employees, linked to the achievement of
LifeSize performance targets. The duration of the plan’s performance period is two years, from January 1, 2010 to
December 31, 2011. The total available cash incentive is $9.0 million over the two year performance period. In December
2009, options to purchase 850,000 Logitech shares were issued in connection with the retention and incentive plan.

In November 2007, we acquired WiLife, Inc., a privately held company providing PC-based video cameras
for self-monitoring a home or small business. The purchase agreement provides for a possible performance-based
payment, payable in the first calendar quarter of 2011. The performance-based payment is based on net revenues
attributed to WiLife during calendar year 2010. No payment is due if the applicable net revenues total $40.0 million or
less. The maximum performance-based payment is $64.0 million. The total performance-based payment amount, if
any, will be recorded in goodwill and will not be known until the end of calendar year 2010. As of March 31, 2010, no
amounts were payable towards performance-based payments under our WiLife acquisition agreement.

The U.S. Internal Revenue Service has initiated an examination of the Company’s U.S. subsidiary for fiscal
years 2006 and 2007. The Company is also under examination in other foreign jurisdictions. As of March 31, 2010,
we are not able to estimate the potential future liability, if any, which may result from these examinations.

Other contractual obligations and commitments of the Company which require cash are described in the

following sections.

Over the past several years, we have been able to generate positive cash flow from our operating activities,
including cash from operations of $365.3 million in fiscal year 2010. Despite the uncertain economic environment,
we believe that our cash and cash equivalents, cash flow generated from operations, and available borrowings under
our bank lines of credit will be sufficient to fund our operations for the foreseeable future.

Contractual Obligations and Commitments

As of March 31, 2010, the Company’s outstanding contractual obligations and commitments included:
(i) equipment financed under capital leases, (ii) facilities leased under operating lease commitments, (iii) purchase
commitments and obligations, (iv) long-term liabilities for income taxes payable, and (v) defined benefit pension
plan obligations. The following summarizes our contractual obligations and commitments at March 31, 2010
(in thousands):

Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase commitments — inventory . . . . . . . . . . . . . .
Purchase obligations — capital expenditures . . . . . . .
Purchase obligations — operating expenses . . . . . . . .
Other liabilities(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total contractual obligations and commitments . . . . .

Payments Due by Period(1)

Total
$ 46,696
183,560
12,925
33,324
164,825
$ 441,330

Less than
1 year
$ 13,679
183,560
12,925
33,324
—
$243,488

1-3 years
$17,870
—
—
—
—
$17,870

4-5 years
$7,644
—
—
—
—
$7,644

More
than 5
years
$7,503
—
—
—
—
$7,503

(1) The table above does not include the performance based payments that we may have to make as part of our

acquisition agreements described above.

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(2) Other liabilities at March 31, 2010 included $118.9 million related to our income tax liability for uncertain
tax positions, $22.1 million in pension liabilities related to our defined benefit pension plans and non-
retirement post-employment benefit obligations, of which $0.6 million is payable in the next 12 months,
$10.3 million related to a management deferred compensation plan, $5.7 million of royalties payable,
$4.4 million in deferred service revenue, and $3.4 million related to various other obligations. As the
specific payment dates for most of these obligations are unknown, the related balances have not been
reflected in the “Payments Due by Period” section of the table.

Operating Leases

The remaining terms on our non-cancelable operating leases expire in various years through 2028. Our asset

retirement obligations on these leases as of March 31, 2010 were not material.

Purchase Commitments

We expect to continue making capital expenditures in the future to support product development activities and
ongoing and expanded operations. At March 31, 2010, fixed purchase commitments for capital expenditures amounted
to $12.9 million, and primarily relate to commitments for manufacturing equipment, tooling, computer software
and computer hardware. We also have commitments for inventory purchases made in the normal course of business
to original design manufacturers, contract manufacturers and other suppliers. At March 31, 2010, fixed purchase
commitments for inventory amounted to $183.6 million, which are expected to be fulfilled by December 31, 2010. We
also had other commitments of $33.3 million for consulting, marketing arrangements, advertising and other services.
Although open purchase commitments are considered enforceable and legally binding, the terms generally allow us the
option to reschedule and adjust our requirements based on business needs prior to the delivery of the purchases.

Income Taxes Payable

At March 31, 2010, we had $116.5 million in non-current income taxes payable and $2.4 million in current income
taxes payable, including interest and penalties, related to our income tax liability for recognized uncertain tax positions.
Although we have adequately provided for uncertain tax positions, the provisions on these positions may change as revised
estimates are made or the underlying matters are settled or otherwise resolved. Within the next 12 months, we anticipate
that it is reasonably possible that unrecognized tax benefits may decrease due to the resolution of income tax audits with
foreign governments. However, an estimate of such decreases cannot reasonably be made as of March 31, 2010.

Defined Benefit Pension Plan Obligations

At March 31, 2010, we had $22.1 million in pension liability related to our defined benefit pension plans and
non-retirement post-employment benefit obligations, of which $0.6 million is payable in the next 12 months. See
Note 13 – Employee Benefit Plans for more information.

Off-Balance Sheet Arrangements

The Company has not entered into any transactions with unconsolidated entities whereby we have financial
guarantees, subordinated retained interests, derivative instruments or other contingent arrangements that expose
us to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an
unconsolidated entity that provides financing, liquidity, market risk or credit risk support to the Company.

Guarantees

The Company has guaranteed the purchase obligations of some of its contract manufacturers and original
design manufacturers to certain component suppliers. These guarantees generally have a term of one year and are
automatically extended for one or more years as long as a liability exists. The amount of the purchase obligations
of these manufacturers varies over time, and therefore the amounts subject to the Company’s guarantees similarly
varies. At March 31, 2010, there were no outstanding guaranteed purchase obligations. The maximum potential
future payments for three of the five guarantee arrangements is limited to $30.8 million in total. The remaining two

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guarantees are limited to purchases of specified components from the named suppliers. We do not believe, based
on historical experience and information available as of the date of this report, that it is probable that any amounts
will be required to be paid under these guarantee arrangements.

Logitech International S.A., the parent holding company, has guaranteed certain contingent liabilities of
various subsidiaries related to specific transactions occurring in the normal course of business. The maximum
amount of the guarantees was $8.2 million as of March 31, 2010. As of March 31, 2010, $7.6 million was outstanding
under these guarantees. The parent holding company has also guaranteed the purchases of one of its subsidiaries
under two guarantee arrangements. These guarantees do not specify a maximum amount. As of March 31, 2010,
$8.7 million was outstanding under these guarantees.

Indemnifications

The Company indemnifies certain of its suppliers and customers for losses arising from matters such as
intellectual property rights and safety defects, subject to certain restrictions. The scope of these indemnities varies
and may include indemnification for damages and expenses, including reasonable attorneys’ fees. In addition, we have
entered into indemnification agreements with our officers and directors, and the bylaws of our subsidiaries contain
similar indemnification obligations to our agents. No amounts have been accrued for indemnification provisions as
of March 31, 2010. We do not believe, based on historical experience and information available as of the date of this
report, that it is probable that any amounts will be required to be paid under these indemnification arrangements.

Letters of Credit

We provide various third parties with irrevocable letters of credit in the normal course of business to secure
our obligations to pay or perform pursuant to the requirements of an underlying agreement or the provision of goods
and services. These standby letters of credit are cancelable only at the option of the beneficiary who is authorized to
draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance with its terms. At
March 31, 2010, we had $3.4 million of letters of credit in place, of which $0.3 million was outstanding. These letters
of credit relate primarily to equipment purchases by a subsidiary in China, and expire between April and June 2010.

ADDITIONAL FINANCIAL DISCLOSURES

MARKETING, SALES AND DISTRIBUTION

Principal Markets

Net sales to unaffiliated customers by geographic region were as follows (in thousands):

Year ended March 31,

2010

2009

2008

EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 882,635
729,473
354,640
$1,966,748

$ 1,001,337
785,862
421,633
$ 2,208,832

$ 1,117,060
888,529
364,907
$2,370,496

Revenues from sales to customers in Switzerland, our home domicile, represented a small portion of our total
consolidated net sales in fiscal years 2010, 2009 and 2008. The United States and Germany each represented more
than 10% of our total consolidated net sales for fiscal year 2010. In fiscal years 2009 and 2008, no single country
other than the United States represented more than 10% of our total consolidated net sales.

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In fiscal year 2010, Ingram Micro Inc. and its affiliated entities together accounted for 13% of our net sales;
in fiscal years 2009 and 2008, the same customer represented 14% of net sales. No other customer individually
accounted for more than 10% of our net sales during fiscal years 2010, 2009 and 2008. The material terms of our
distribution agreements with Ingram Micro and its affiliated entities are summarized as follows:

• The agreements are non-exclusive in the particular territory and contain no minimum purchase

requirements.

• Each agreement may be terminated for convenience at any time by either party. Most agreements
provide for termination on 30 days’ written notice from either party, with two Ingram Micro agreements
providing for termination on 90 days’ notice.

• We generally offer an allowance for marketing activities equal to a negotiated percentage of sales and
volume rebates related to purchase volumes or sales of specific products to specified retailers. These
terms vary by agreement.

• Most agreements allow price protection credits to be issued for on–hand or in transit new inventory if

we, in our sole discretion, lower the price of the product.

• We grant limited rights to return product, which vary by distributor. Under most of the Ingram Micro
agreements, the Ingram Micro entities may return defective products and may return up to 10% of the
previous quarter’s purchases, if they place an offsetting order for the amount they returned.

Marketing

Logitech builds awareness of our products and recognition of our brand through targeted advertising, public
relations efforts, distinct packaging of our retail products, in-store promotions and merchandising, a Worldwide
Web site and other efforts. We also acquire knowledge of our users through customer feedback and market research,
including focus groups, product registrations, user questionnaires, primary and multi-client surveys and other
techniques. In addition, manufacturers of PCs and other products also receive customer feedback and perform user
market research, which sometimes results in requests to Logitech for specific products, features or enhancements.

Sales and Distribution

Logitech sells its personal peripherals through many distribution channels, including distributors, OEMs and
regional and national retail chains, including online retailers. We support these retail channels with third-party
distribution centers located in North America, Europe and Asia Pacific. These centers perform final configuration
of products and product localization with local language manuals, packaging, software CDs and power plugs. In
addition, Logitech’s distribution mix includes e-commerce in the U.S. as well as e-commerce capabilities in several
European countries.

In retail channels, Logitech’s direct sales force sells to distributors and large retailers. Our distributor
customers typically resell products to retailers, value-added resellers, and systems integrators with whom Logitech
does not have a direct relationship. These distributors in the U.S. include Ingram Micro, Tech Data Corporation and
D&H Distributing. In Europe, pan-European distributors include Ingram Micro, Tech Data and Gem Distribution.
We also sell to many regional distributors such as Actebis GmbH in Germany, Copaco Dc B.V. in the Netherlands,
Vinzeo Informatica, SLU in Spain and Channel Distribution in the United Arab Emirates.

Logitech’s products can be purchased in most major retail chains, where we typically have access to significant
shelf space. These chains in the U.S. include Best Buy, Office Depot, Staples, Target and Wal-Mart, and in Europe
include Metro Group (MediaMarkt and Saturn), Carrefour Group, Kesa Electricals, Fnac, Dixons Stores Group
PLC and most key national consumer electronics chains. Logitech products can also be purchased at the top online
e-tailers, which include Amazon.com, TigerDirect.com, Buy.com, CDW, Insight Enterprises, Inc., and others.

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Logitech’s OEM products are sold to large OEM customers through a direct sales force, and we support
smaller OEM customers through distributors. We count the majority of the world’s largest PC manufacturers among
our customers.

Our Life Size division maintains a separate marketing and sales organization that sells LifeSize products
and services to distributors, value-added resellers, OEMs and direct enterprise customers. The large majority of
LifeSize revenues are derived from sales of products for use by large enterprises, small-to-medium businesses and
public healthcare, education and government organizations.

Through our operating subsidiaries, we maintain sales offices or sales representatives in 38 countries.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

Logitech’s shares are listed and traded on both the SIX Swiss Exchange, where the share price is denominated
in Swiss francs, and on the Nasdaq Global Select Market, where the share price is denominated in U.S. dollars.
Prior to October 2006, Logitech’s American Depositary Shares (“ADSs”) traded on the Nasdaq Global Select
Market, with each ADS representing one registered share. In October 2006, we exchanged Logitech shares for our
ADSs on a one-for-one basis, so that the same Logitech shares trade on the Nasdaq Global Select Market as on the
SIX Swiss Exchange.

The trading symbol for Logitech shares is LOGI on Nasdaq and LOGN on the SIX Swiss Exchange. As of
May 3, 2010, there were 191,606,620 shares issued (including 16,148,138 shares held as treasury stock) held by
20,527 holders of record, and the closing price of our shares was CHF 17.83 ($16.45 based on exchange rates on such
date) per share on the SIX Swiss Exchange and $16.44 per share as reported by the Nasdaq Stock Market.

SIX Swiss Exchange

The following table sets forth certain historical share price information for the Company’s shares traded on
the SIX Swiss Exchange, as reported by the SIX Swiss Exchange. The U.S. dollar equivalent is based on the noon
buying rate on the trading day of the month in which the high or low closing sales price occurred. The noon buying
rate is the rate in New York City for cable transfers in selected currencies as certified for customs purposes by the
Federal Reserve Bank of New York.

Price per share on the
SIX Swiss Exchange

High

CHF

Low

CHF

High

Low

Quarterly Highs and Lows:
Fiscal year 2009:

First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal year 2010:

34.22
30.46
25.14
18.01

16.80
20.10
19.21
19.23

24.18
24.56
14.29
9.00

11.94
14.30
16.44
16.40

32.65
27.92
22.43
16.26

14.85
19.21
18.95
18.40

24.13
22.35
11.68
7.74

10.41
13.17
15.87
15.10

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Nasdaq Global Select Market

The following table sets forth certain historical share price information for the Company’s shares traded on

the Nasdaq Global Select Market.

Quarterly Highs and Lows:
Fiscal year 2009:

First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal year 2010:

Price per share on Nasdaq

High

33.34
27.91
22.59
16.11

15.19
19.15
18.95
18.49

Low

24.13
21.98
11.17
7.64

10.64
13.32
15.85
15.40

Dividends

Under Swiss law, a corporation may only pay dividends upon a vote of its shareholders. This vote typically
follows the recommendation of the corporation’s board of directors. Logitech has not paid dividends since 1996
in order to retain earnings for use in the operation and expansion of the business and, in more recent years, to
repurchase its shares.

Dividends paid and similar cash or in-kind distributions made by Logitech to a holder of Logitech shares
(including dividends or liquidation proceeds and stock dividends) are subject to a Swiss federal anticipatory tax at
a rate of 35%. The anticipatory tax must be withheld by Logitech from the gross distribution, and paid to the Swiss
Federal Tax Administration.

A Swiss resident holder and beneficial owner of Logitech shares may qualify for a full refund of the Swiss
anticipatory tax withheld from such dividends. A holder and beneficial owner of Logitech shares who is a non-
resident of Switzerland, but a resident of a country that maintains a double tax treaty with Switzerland, may qualify
for a full or partial refund of the Swiss anticipatory tax withheld from such dividends by virtue of the provisions
of the applicable treaty between Switzerland and the country of residence of the holder and beneficial owner of the
Logitech shares.

In accordance with the tax convention between the United States and the Swiss Confederation (“Treaty”),
a mechanism is provided whereby a United States resident (as determined under the Treaty), and United States
corporations, other than U.S. corporations having a “permanent establishment” or a fixed base, as defined in the
Treaty, in Switzerland, generally can obtain a refund of the Swiss anticipatory tax withheld from dividends in
respect of Logitech shares, to the extent that 15% of the gross dividend is withheld as final withholding tax (i.e. 20%
of the gross dividend may generally be refunded). In specific cases, U.S. companies not having a “permanent
establishment” or a fixed base in Switzerland owning at least 10% of Logitech registered shares may receive a
refund of the Swiss anticipatory tax withheld from dividends to the extent it exceeds 5% of the gross dividend (i.e.
30% of the gross dividend may be refunded). To get the benefit of a refund, holders must beneficially own Logitech
shares at the time such dividend becomes due.

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Share Repurchases

The following table sets forth certain information related to purchases made by Logitech of its equity securities

(in thousands, except per share amounts):

Period
April 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
October 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
November 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Average Price Paid
Per Share

in USD
—
—
—
—
16.82
18.04
—
—
—
—
15.58
15.81

in CHF
—
—
—
—
17.99
19.09
—
—
—
—
16.21
17.14

Approximate
Dollar Value of
Shares That May
Yet Be Purchased
Under the
Program
$ 125,746
125,746
125,746
125,746
69,820
24,479
24,479
24,479
24,479
24,479
20,896
—

Total
Number
of Shares
Purchased

—
—
—
—
3,325
2,513
—
—
—
—
230
1,357
7,425

In fiscal year 2010, we repurchased shares pursuant to our buyback program announced in June 2007
authorizing the purchase of $250 million of our shares. The June 2007 program was completed in March 2010. All
share repurchases by the Company during fiscal year 2010 were made as part of publicly announced programs. In
September 2008, our Board of Directors approved a new share buyback program, which authorizes the Company
to invest up to $250 million to purchase its own shares. As of May 27, 2010, we have not started repurchases under
the September 2008 program.

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Performance Graph

The information contained in the Performance Graph shall not be deemed to be “soliciting material” or
“ filed” with the SEC or subject to the liabilities of Section 18 of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), except to the extent that we specifically incorporate it by reference into a document filed
under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act.

The following graph compares the cumulative total stockholder return on our shares, the Nasdaq Composite
Index, and the S&P 500 Information Technology Index. The graph assumes that $100 was invested in our shares,
the Nasdaq Composite Index and the S&P 500 Information Technology Index on March 31, 2005, and calculates
the annual return through March 31, 2010. The stock price performance on the following graph is not necessarily
indicative of future stock price performance.

Comparison of 5 year cumulative total return

$200

$150

$100

$50

2005

2006

2007

2008

2009

2010

Logitech

Nasdaq Composite Index

S&P 500 Index

Logitech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nasdaq Composite Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S&P 500 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2005
$ 100
$100
$100

2006
$ 131
$ 117
$ 110

March 31,

2007
$ 183
$121
$120

2008
$ 167
$ 114
$ 112

2009
$ 68
$ 76
$ 68

2010
$ 107
$120
$ 99

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SELECTED FINANCIAL DATA

The financial data below should be read in conjunction with “Management’s Discussion and Analysis of
Financial Condition and Results of Operations.” These historical results are not necessarily indicative of the results
to be expected in the future.

Year ended March 31,

2010

2009

2008

2007

2006(1)

(In thousands, except per share amounts)

Consolidated statements of operations and

cash flow data:

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expenses:

Marketing and selling . . . . . . . . . . . . . . . . . . .
Research and development . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . .
Restructuring charges . . . . . . . . . . . . . . . . . . .
Total operating expenses . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income per share:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares used to compute net income per share:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities . . . . . .

Consolidated balance sheet data:
Cash and cash equivalents . . . . . . . . . . . . . . . . . .
Short-term investments. . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt, net of current maturities . . . . . .
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . .

$1,966,748 $ 2,208,832 $2,370,496 $ 2,066,569 $ 1,796,715
574,110

626,896

709,525

691,226

849,118

304,788
135,813
106,147
1,784

548,532
78,364
64,957 $

319,167
128,755
113,103
20,547

324,451
124,544
113,443
—

272,264
108,256
98,143
—

221,504
87,953
65,742
—

375,199
581,572
109,654
198,911
107,032 $ 231,026 $ 229,848 $ 181,105

562,438
286,680

478,663
230,862

0.37 $
0.36 $

0.60 $
0.59 $

1.27 $
1.23 $

1.26 $
1.20 $

1.00
0.92

$
$

177,279
179,340

181,361
198,769
$ 365,259 $ 200,587 $ 393,079 $ 303,825 $ 152,217

182,635
190,991

181,362
187,942

178,811
182,911

March 31,

2010

2009

2008

2007

2006(1)

(In thousands)

— $

1,637 $

$ 319,944 $ 492,759 $ 482,352 $ 196,197 $ 245,014
$
—
$1,599,678 $ 1,421,530 $1,526,932 $ 1,327,463 $ 1,057,064
4
$
$ 999,715 $ 997,708 $ 960,044 $ 844,524 $ 685,176

214,625 $

3,940 $

— $

(1) Net income for fiscal year 2006 does not include the effect of share-based compensation expense, because

Logitech changed its method of accounting for share-based compensation expense effective April 1, 2006.

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Research and Development

For a discussion of the Company’s research and development activities, patents and licenses, please refer to

Item 1 “Business”.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk

Market risk represents the potential for loss due to adverse changes in the fair value of financial instruments.
As a global concern, the Company faces exposure to adverse movements in foreign currency exchange rates and
interest rates. These exposures may change over time as business practices evolve and could have a material adverse
impact on the Company’s financial results.

Foreign Currency Exchange Rates

The Company is exposed to foreign currency exchange rate risk as it transacts business in multiple foreign
currencies, including exposure related to anticipated sales, anticipated purchases and assets and liabilities
denominated in currencies other than the U.S. dollar. Logitech transacts business in over 30 currencies worldwide, of
which the most significant to operations are the Chinese renminbi (“CNY”), euro, British pound, Taiwanese dollar,
Japanese yen, Mexican peso and Swiss franc. The functional currency of the Company’s operations is primarily the
U.S. dollar. To a lesser extent, certain operations use the euro, Swiss franc, Japanese yen or the local currency of
the country as their functional currencies. Accordingly, unrealized foreign currency gains or losses resulting from
the translation of net assets or liabilities denominated in foreign currencies to the U.S. dollar are accumulated in the
cumulative translation adjustment component of other comprehensive income in shareholders’ equity.

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The table below provides information about the Company’s underlying transactions that are sensitive to
foreign exchange rate changes, primarily assets and liabilities denominated in currencies other than the functional
currency, where the net exposure is greater than $0.5 million at March 31, 2010. The table below represents the U.S.
dollar impact on earnings of a 10% appreciation and a 10% depreciation of the functional currency as compared
with the transaction currency (in thousands):

Functional Currency
U.S. dollar . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . .
Taiwanese dollar . . . . . . . .
Japanese yen . . . . . . . . . . .
Mexican peso . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . .
Australian dollar . . . . . . . .
U.S. dollar . . . . . . . . . . . . .
Swiss franc . . . . . . . . . . . .

Transaction Currency
Chinese renminbi
British pound
U.S. dollar
U.S. dollar
U.S. dollar
Swedish krona
Swiss franc
U.S. dollar
U.S. dollar
Canadian dollar
U.S. dollar

Net Exposed
Long (Short)
Currency
Position
$ 35,428
22,143
17,846
(12,769)
(6,454)
(1,736)
(1,440)
(1,072)
671
583
503
$ 53,703

FX Gain (Loss)
From 10%
Appreciation of
Functional
Currency
$(3,221)
(2,013)
(1,622)
1,161
587
158
131
97
(61)
(53)
(46)
$(4,882)

FX Gain (Loss)
From 10%
Depreciation of
Functional
Currency
$ 3,936
2,460
1,983
(1,419)
(717)
(193)
(160)
(119)
75
65
56
$ 5,967

Long currency positions represent net assets being held in the transaction currency while short currency

positions represent net liabilities being held in the transaction currency.

The Company’s principal manufacturing operations are located in China, with much of its component and
raw material costs transacted in CNY. However, the functional currency of its Chinese operating subsidiary is the
U.S. dollar as its sales and trade receivables are transacted in U.S. dollars. To hedge against any potential significant
appreciation of the CNY, the Company transferred a portion of its cash investments to CNY accounts. At March 31,
2010, net assets held in CNY totaled $35.4 million. The Company continues to evaluate the level of net assets held
in CNY relative to component and raw material purchases and interest rates on cash equivalents.

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extend the terms of its foreign exchange forward contracts. The primary risk managed by using forward and swap
contracts is the foreign currency exchange rate risk. The gains or losses on foreign exchange forward contracts are
recognized in earnings based on the changes in fair value.

The notional amounts of foreign exchange forward contracts outstanding at March 31, 2010 relating to foreign
currency receivables or payables were $15.1 million. Open forward contracts as of March 31, 2010 consisted of
contracts in British pounds to purchase euros at a future date at a predetermined exchange rate. The notional
amounts of foreign exchange swap contracts outstanding at March 31, 2010 were $38.9 million. Swap contracts
outstanding at March 31, 2010 consisted of contracts in British pounds, Japanese yen, Mexican pesos and Canadian
dollars. Unrealized net losses on the contracts outstanding at March 31, 2010 were $0.1 million.

If the U.S. dollar had appreciated by 10% compared with the foreign currencies in which we have forward or
swap contracts, an unrealized gain of $7.0 million in our forward foreign exchange contract portfolio would have
occurred. If the U.S. dollar had depreciated by 10% compared with the foreign currencies in which we have forward
or swap contracts, a $7.3 million unrealized loss in our forward foreign exchange contract portfolio would have
occurred.

Interest Rates

Changes in interest rates could impact the Company’s anticipated interest income on its cash equivalents
and investment securities. The Company prepared sensitivity analyses of its interest rate exposures to assess the
impact of hypothetical changes in interest rates. Based on the results of these analyses, a 100 basis point decrease
or increase in interest rates from the March 31, 2010 and March 31, 2009 period end rates would not have a material
effect on the Company’s results of operations or cash flows.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.

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QUARTERLY FINANCIAL DATA
(Unaudited)

The following table contains selected unaudited quarterly financial data for fiscal years 2010 and 2009 (in

thousands except per share amounts):

Year ended March 31, 2010

Year ended March 31, 2009

First

Second

Third

Fourth

First

Second

Third

Fourth

Net sales . . . . . . . . . . . . . . . . . . . . . $ 326,110 $498,093 $ 617,101 $525,444 $508,711 $664,707 $627,466 $407,948
Gross profit . . . . . . . . . . . . . . . . . .
151,788 208,964 188,322 173,572 228,074 187,496 102,084
Operating expenses:

77,822

71,101
Marketing and selling . . . . . . .
29,744
Research and development. . . .
23,901
General and administrative . . .
— 20,547
Restructuring charges . . . . . . .
145,293
Total operating expense . . .
(43,209)
Operating income (loss). . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . $ (37,365) $ 20,743 $ 57,086 $ 24,493 $ 29,306 $ 72,311 $ 40,493 $ (35,078)
Net income (loss) per share*:

77,280
33,259
33,309
—
150,537 160,623 143,848
29,724
27,699
58,427

58,938
31,360
21,181
1,449
112,928
(35,106)

68,835
31,825
23,739
45
124,444
27,344

147,711 144,720
42,776
80,363

87,322
32,931
30,284
—

89,693
39,697
30,943
290

84,740
33,351
29,620
—

86,046
32,401
26,273

Basic . . . . . . . . . . . . . . . . . . . . . $
Diluted . . . . . . . . . . . . . . . . . . . $

(0.21) $
(0.21) $

0.12 $
0.11 $

0.33 $
0.32 $

0.14 $
0.14 $

0.16 $
0.16 $

0.41 $
0.39 $

0.23 $
0.22 $

(0.20)
(0.20)

Shares used to compute net
income (loss) per share:
Basic . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . .

179,751
179,751

178,395
180,989

175,426
177,668

175,738 179,046 178,630 178,497
181,145
177,967 184,692 183,509

179,065
179,065

Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore,
the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings
per share.

The following table sets forth certain quarterly financial information as a percentage of net sales:

Year ended March 31, 2010

Year ended March 31, 2009

First

Second

Third

Fourth

First

Second

Third

Fourth

Net sales . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Gross profit . . . . . . . . . . . . . . . . . .
Operating expenses:

34.3

30.5

23.9

25.0

34.1

35.8

33.9

29.9

15.2
6.5
6.6
—
28.3
5.8
5.8% 10.9% 6.5% (8.6)%

17.4
7.3
5.9
5.0
35.6
(10.6)

12.7
5.0
4.5
—
22.2
12.1

13.7
5.2
4.2
—
23.1
6.8

Marketing and selling . . . . . . .
Research and development. . . .
General and administrative . . .
Restructuring charges . . . . . . .
Total operating expense . . .
Operating income (loss). . . . . . . . .
Net income (loss) . . . . . . . . . . . . . .

18.1
9.6
6.5
0.4
34.6
(10.7)
(11.5)%

14.2
5.3
4.9
—
24.4
9.5

13.8
6.4
4.8
—
25.0
5.5
4.2% 9.3%

17.1
7.6
5.9
—
30.6
5.2
4.7%

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REPORT ON CORPORATE GOVERNANCE 2010

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REPORT ON CORPORATE GOVERNANCE

Logitech believes that sound corporate governance practices are essential to an open and responsible
corporation. Our corporate governance practices reflect a continuing commitment to corporate accountability,
sound judgment, and transparency to shareholders.

As a company whose securities are listed on both the SIX Swiss Exchange and the Nasdaq Global Select Market,
our commitment to sound corporate governance principles is guided by the legal and regulatory requirements of both
Switzerland and the United States. In addition, Logitech’s internal guidelines regarding corporate governance are
provided in our Articles of Incorporation, Organizational Regulations (Bylaws), and Board Committee Charters.

This Report has been designed to comply with the Corporate Governance Directive of the SIX Swiss
Exchange. Portions of the Report are also incorporated by reference from our Invitation and Proxy statement for
our 2010 Annual General Meeting, available at http://ir.logitech.com.

1. GROUP STRUCTURE AND SHAREHOLDERS

1.1 Operational Group Structure

We sell our peripheral products to a network of retail distributors and resellers and to original equipment
manufacturers, or OEMs. We sell our LifeSize products and services to distributors, value-added resellers, OEMs
and direct enterprise customers. The large majority of our revenues are derived from sales of our personal peripheral
products for use by consumers.

For the fiscal year ended March 31, 2010, we generated net sales of $2.0 billion, operating income of
$78.4 million, net income of $65.0 million, employed approximately 10,000 employees and conducted business in
approximately 100 countries.

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 North America, Europe and Asia Pacific.
Shares of Logitech International S.A. are listed on both the Nasdaq Global Select Market (Ticker: LOGI, CUSIP
H50430232), and the SIX Swiss Exchange (Ticker: LOGN; security number: 257513). The International Securities
Identification Number (ISIN) of our shares is CH0025751329. As of March 31, 2010, our market capitalization,
based on outstanding shares of 175,171,092, net of treasury shares, amounted to approximately $2.9 billion (CHF
3.0 billion). Refer to section 1.2 below for information on Logitech International S.A.’s holdings in its shares as of
March 31, 2010.

References in this Report on Corporate Governance to the “Company” refers to Logitech International S.A.

References to “Logitech,” “we,” “our,” and “us” refer to Logitech International S.A. and its consolidated subsidiaries.

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Logitech operates in two industry segments, personal peripherals and video conferencing. Our personal
peripherals segment encompasses the design, manufacturing and marketing of personal peripherals for personal
computers and other digital platforms. Our research and product management teams are organized along product
lines, and are responsible for product strategy, industrial design and development, and technological innovation.
Our global marketing and sales organization helps define product opportunities and bring our products to market,
and is responsible for building the Logitech brand and consumer awareness of our products. This organization is
comprised of retail and OEM sales and marketing groups. Our retail sales and marketing activities are organized into
three geographic regions: Americas (including North and South America), Europe-Middle East-Africa (“EMEA”),
and Asia Pacific. Our OEM sales team is a worldwide organization with representatives in each of our three regions.
Our OEM customers include the majority of the world’s largest PC manufacturers. Our video conferencing segment
encompasses the design, manufacturing and marketing of LifeSize video conferencing products and services for
the enterprise and small-to-medium business markets. The LifeSize segment maintains a separate marketing and
sales organization. The LifeSize product development and product management organizations are separate, but
coordinated with our personal peripherals business, particularly our webcam and video communications groups.
Based on financial measurements for the fiscal year ended March 31, 2010, the LifeSize operating segment does
not meet the quantitative threshold for separate disclosure of financial information required by generally accepted
accounting principles in the United States.

Since 1994, we have had our own manufacturing operations in Suzhou, China, which currently handle
approximately half of our total production of peripheral products. We outsource the remaining production to contract
manufacturers and original design manufacturers located in Asia. Both our in-house and outsourced manufacturing
is managed by our worldwide operations group. The worldwide operations group also supports the business units
and marketing and sales organizations through management of distribution centers and of the product supply chain,
and the provision of technical support, customer relations and other services. Our LifeSize video communications
products are manufactured in Malaysia under contract with a third-party manufacturer.

Logitech International S.A. directly or indirectly owns 100% of all the companies in the Logitech group,
through which it carries on its business and operations. Principal operating subsidiaries include: Logitech Inc.,
Logitech Europe S.A., Logitech (Intrigue) Inc. and Logitech Technology (Suzhou) Co., Ltd. For a list of Logitech
subsidiaries, refer to the table on page 162. None of Logitech International S.A.’s subsidiaries have securities listed
on a stock exchange as of March 31, 2010.

1.2 Significant Shareholders

Greater than 3% Shareholders as of March 31, 2010

The table below sets out, to the knowledge of the Company, beneficial owners holding more than 3% of the
voting rights of the Company as of March 31, 2010. The number of voting rights of the Company as of March 31,
2010 is equal to the number of shares issued, 191,606,620 shares.

Information on the share ownership of the Company by directors, executive officers and greater than 5%
shareholders as of June 30, 2010, based on the number of the Company’s shares outstanding (which is equal to
the shares issued less the shares held in the Company’s treasury) is set out in the Company’s Invitation and Proxy
Statement for the 2010 Annual General Meeting, available at http://ir.logitech.com, under the heading “Security
Ownership of Certain Beneficial Owners and Management as of June 30, 2010”.

Name

Number of Shares

% of Voting
Rights(2)

Daniel Borel(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Logitech International S.A. . . . . . . . . . . . . . . . .
FMR LLC(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thornburg Investment Management(4) . . . . . . . .

11,203,158
16,435,528
10,568,978
11,922,284

5.8%
8.6%
5.5%
6.2%

Relevant Date

March 31, 2010
March 31, 2010
December 31, 2009
April 25, 2008

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(1) Mr. Borel has not entered into any written shareholders’ agreements.
(2) Shareholdings are calculated based on the aggregate number of voting rights entered into the Swiss commercial

(3) Number of shares held by FMR LLC is based on a Schedule 13G filed by FMR LLC with the U.S. Securities
and Exchange Commission on February 16, 2010, on behalf of funds managed by and clients of FMR LLC
and its direct and indirect subsidiaries.

(4) Number of shares held by Thornburg Investment Management is based on a notification received by the
Company on May 22, 2008 informing the Company that the ownership of Thornburg Investment Management,
on behalf of funds managed by and clients of the Thornburg Group, had exceeded 5% of the Company’s
voting rights.

In addition, as of March 31, 2010, a total of 20,550,648 shares were subject to potential issuance under

employee equity incentives outstanding as of such date.

Under Swiss law shareholders who own voting rights exceeding certain percentage thresholds of a company
incorporated in Switzerland whose shares are listed on a stock exchange in Switzerland are required to notify the
company and the relevant Swiss exchange of such holdings. Following receipt of this notification, the company is
required to inform the public in Switzerland.

Logitech has not been notified of any ownership of options or other derivative securities of the Company,
whether privately or publicly traded, by any significant shareholder of the Company that is not a member of the
Board of Directors or an executive officer.

1.3 Cross-shareholdings

Logitech has no shareholdings in companies that to its knowledge have shareholdings in Logitech.

2. Capital Structure

2.1 Share Capital

As of March 31, 2010, Logitech International S.A.’s nominal share capital was CHF 47,901,655, consisting of

191,606,620 shares with a par value of CHF 0.25 each.

Nominal conditional share capital designated to cover the potential issuance of shares under employee equity
incentive plans amounts to CHF 6,250,000, consisting of 25,000,000 shares. In addition, nominal conditional share
capital designated to cover conversion rights that may be granted in connection with a future issuance of debt
obligations convertible into Logitech shares amounts to CHF 6,250,000, consisting of 25,000,000 shares. Refer to
section 2.2 for more information on the Company’s authorized and conditional capital.

2.2 Details on the Company’s Authorized and Conditional Share Capital

Authorized share capital. Under Swiss corporate law the total nominal par value of the shares authorized by
shareholders for future issuance, other than to cover derivative securities, is referred to as authorized share capital.
As of March 31, 2010 Logitech has no authorized share capital.

Conditional share capital. Under Swiss corporate law the total nominal par value of the shares authorized
by shareholders for future issuance on the conversion or exercise of derivative securities issued by a company
is referred to as conditional share capital. Under Swiss law a company must have sufficient conditional capital
or available treasury shares to cover any conversion rights under derivative securities at the time the derivative
securities are issued.

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Pursuant to Article 25 of the Company’s Articles of Incorporation, the share capital of the Company may be
increased by CHF 6,250,000 through the issuance of up to 25,000,000 shares with a par value of CHF 0.25 each.
The purpose of this conditional share capital is to cover option or other equity rights granted or that may be granted
to employees, officers and directors of Logitech under its employee equity incentive plans. The conditional share
capital increase does not have an expiration date. The shareholders do not have pre-emptive rights to subscribe
to the newly issued shares issued out of conditional share capital. For more information on Logitech’s employee
equity incentive plans please refer to Note 13 – Employee Benefit Plans - to our Consolidated Financial Statements
included in our Annual Report.

Although the Company has been authorized by its shareholders to use conditional capital to meet its obligations
to deliver shares as a result of employee purchases or exercises under its employee equity incentive plans, the
Company has for some years used shares held in treasury to fulfill its obligations under the plans.

In addition, pursuant to Article 26 of the Company’s Articles of Incorporation, the share capital of the
Company 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 0.25 each. The purpose of this conditional share capital is to cover conversion rights that may be
granted in connection with a future issuance of bonds convertible into Logitech shares. The conditional share
capital increase does not have an expiration date. The shareholders do not have pre-emptive rights to subscribe to
the newly issued shares issuable on conversion of the bonds.

The Board of Directors may limit or withdraw the shareholders’ right to subscribe for the bonds by preference
for valid reasons, in particular (a) if the bonds are issued in connection with the financing or refinancing of the
acquisition of one or more companies, businesses or parts of businesses, or (b) to facilitate the placement of the
bonds on the international markets or to increase the security holder base of the Company. If the shareholders’ right
to subscribe for the bonds by preference is limited or withdrawn, the bonds must be issued at market conditions,
the exercise period 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 the final conditions for the bonds.

2.3 Changes in Shareholders’ Equity

As of March 31, 2010, 2009, 2008 and 2007, balances in shareholders’ equity of Logitech International S.A.,

based on the parent company’s Swiss Statutory Financial Statements, were as follows (in thousands):

Share capital. . . . . . . . . . . . . . . . . . . . . . . . . . .
Legal reserves:

General reserve . . . . . . . . . . . . . . . . . . . . .
Reserve for treasury shares . . . . . . . . . . . .
Unappropriated retained earnings. . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . .

As of March 31,

2010

2009

2008

2007

CHF 47,902

9,580
419,770
349,312
CHF 826,564

9,580
389,648
354,924
CHF 802,054

9,580
400,710
316,586
CHF 774,778

9,580
272,844
378,300
CHF 708,626

The following table shows authorized and conditional share capital as of the last four fiscal year ends (in

thousands):

Authorized share capital . . . . . . . . . . . . . . . . . . . . . . .
First conditional share capital . . . . . . . . . . . . . . . . . . .
Second conditional share capital . . . . . . . . . . . . . . . .

CHF — CHF — CHF 10,000
CHF 15,165
CHF 6,250
CHF 6,250
CHF
CHF 6,250
CHF 6,250

CHF 10,000
CHF 15,165
— CHF 2,725

2010

2009

2008

2007

As of March 31,

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For information on Logitech’s shareholders’ equity as of March 31, 2010 and 2009, refer to the Swiss Statutory

Balance Sheets on page 213 of our Annual Report.

During fiscal years 2010, 2009 and 2008, Logitech repurchased shares under the following share buyback

programs (in thousands):

Date of
Announcement

Approved
Buyback
Amount

USD
Amount

Expiration
Date

Amount
Remaining

June 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

USD 250,000
USD 250,000

$250,000
$250,000

September 2010
September 2009

—
—

The Company repurchased shares under these buyback programs as follows (in thousands):

Date of
Announcement

Program to date

2010

2009

2008

Amount

Amount Repurchased During Year ended March 31,(1)

June 2007 . . . . . . . . . . . . . . . . . . .
May 2006 . . . . . . . . . . . . . . . . . . .

11,978 $ 250,555
8,760 $ 250,968
20,738 $ 501,523

7,425 $126,301
—
7,425 $126,301

— $

2,803 $ 78,870

1,750 $ 45,384
— $ — 6,034 $174,358
7,784 $ 219,742

2,803 $ 78,870

(1) Represents the amount in U.S. dollars, calculated based on exchange rates on the repurchase dates.

For further information on Logitech’s share repurchases please refer to “Additional Financial Disclosures –

Market for Logitech’s Shares, Related Shareholder Matters, and Share Repurchases” in our Annual Report.

2.4 Share Categories

Registered Shares. Logitech International S.A. has only one category of shares – registered shares with a par
value of CHF 0.25 per share. Each of the 191,606,620 issued shares carries the same rights. There are no preferential
rights. However, a shareholder must be entered in the share register of the Company to exercise voting rights and the
rights deriving therefrom (such as the right to convene a general meeting of shareholders or the right to put an item
on the meeting’s agenda). Refer to section 6 for an outline of participation rights of the Company’s shareholders.

Each share entitles its owner to dividends declared, even if the owner is not registered in the share register
of the Company. Under Swiss law, a company pays dividends upon approval by its shareholders. This request for
shareholder approval typically follows the recommendation of the Board. Logitech has not paid dividends since
1996, using retained earnings to invest in the growth of the Company and, in more recent years, to repurchase the
Company’s shares.

Unless this right is restricted in compliance with Swiss law and the Company’s Articles of Incorporation,
shareholders have the pre-emptive right to subscribe for newly issued shares. Refer to section 2.2 for a description
of the provisions of the Company’s Articles of Incorporation relating to the restriction of the shareholders’ pre-
emptive subscription rights.

2.5 Non-Voting Shares and Bonus Certificates

The Company has not issued non-voting shares (“bons de participation,” “Partizipationsscheine”). The
Company has not issued certificates or equity securities that provide financial rights in consideration for services
rendered or claims waived (referred to as “bonus certificates,” “bons de jouissance,” or “Genussscheine”).

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2.6 Limitations on Transferability and Nominee Registration

The Company and its agent, The Bank of New York Mellon, as US transfer agent, maintain a share register
that lists the names of the registered owners of the Company’s shares. Registration in the share register occurs upon
request and is not subject to any conditions. Nominee companies and trustees can be entered into the share register
with voting rights. There are no restrictions on transfers of shares under the Company’s Articles of Incorporation
or Swiss law. However, only holders of shares that are recorded in the share register are recognized as shareholders,
and a transfer of shares reflected in the share register is recognized by the Company only to the extent we are
notified of the transfer.

Refer to section 6.1 for the conditions for exercise of shareholders’ voting rights.

2.7 Conversion and Option Rights

Logitech does not have any outstanding bonds or other publicly traded securities with conversion rights and

has not issued warrants on its shares.

Logitech has issued stock options and restricted stock units, including performance-based restricted stock
units, to its employees and directors. Please refer to Logitech’s Compensation Report included with its Invitation
and Proxy Statement, available at http://ir.logitech.com, under the heading “Equity Compensation Plan Information”
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 13 – Employee Benefit Plans – included in our Consolidated
Financial Statements.

3. The Board of Directors

For the current members of our Board of Directors, further information regarding the Board of Directors,
Board Committees, and the allocation of responsibility between the Board of Directors and executive officers, please
see our Invitation and Proxy Statement for the 2010 Annual General Meeting, available at http://ir.logitech.com,
under the heading “Corporate Governance and Board of Directors Matters.”

Senior Management

4.1 Members of Senior Management

The current members of our senior management, referred to by Logitech as our “executive officers,” are set

out below.

Guerrino De Luca . . . . . . . . . . . . . . . . .
57 Years Old
Director since 1998
Chairman of the Board of Directors
Italian national

Guerrino De Luca has served as Chairman of the Logitech Board of
Directors since January 2008. He served from February 1998 to January
2008 as Logitech’s President and Chief Executive Officer, and has been
a director since June 1998. Prior to joining Logitech, Mr. De Luca
served as Executive Vice President of Worldwide Marketing for Apple,
Inc. from February 1997 to September 1997, and as President of
Claris Corporation, a U.S. personal computing software vendor, from
May 1994 to February 1997. Prior to joining Claris, Mr. De Luca held
various positions with Apple in the United States and in Europe. Mr. De
Luca holds a BS degree in Electronic Engineering from the University
of Rome, Italy.

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Gerald P. Quindlen . . . . . . . . . . . . . . . .
51 Years Old
President and Chief Executive Officer
U.S. national

Erik Bardman . . . . . . . . . . . . . . . . . . . .
43 Years Old
Senior Vice President, Finance and
Chief Financial Officer
U.S. national

Werner Heid . . . . . . . . . . . . . . . . . . . . .
51 Years Old
Senior Vice President,
Worldwide Sales & Marketing
German national

Gerald Quindlen has served as Logitech’s President and Chief Executive
Officer since January 2008. He has been a member of the Board of
Directors since September 2008. Mr. Quindlen joined Logitech as
Senior Vice President, Worldwide Sales and Marketing in October
2005. From August 1987 to September 2004, Mr. Quindlen worked for
Eastman Kodak Company where he was Vice President of Global Sales
and Operations for the Consumer and Professional Imaging Division,
and previously held senior sales or marketing management positions
in the United States, Japan and Asia Pacific. From September 2004 to
September 2005, Mr. Quindlen was a private consultant. Prior to his
17 year tenure at Eastman Kodak, he worked for Mobil Oil Corporation
in engineering. Mr. Quindlen holds a BS degree in chemical engineering
from Villanova University in Pennsylvania, and an MBA degree in
Finance from the University of Pennsylvania’s Wharton School.

Erik Bardman joined Logitech as Senior Vice President, Finance and
Chief Financial Officer in October 2009. Prior to joining Logitech,
Mr. Bardman served as a financial consultant to Zillion TV, an
interactive television service company. Previously, he had been with
eBay from 2003 to 2008, most recently as the chief financial officer
for eBay Marketplaces, the company’s largest portfolio of businesses.
At eBay, Mr. Bardman led a large global team focused on financial
strategy, acquisitions, resource allocation and performance analysis.
Prior to joining eBay Mr. Bardman was with General Electric
Company for 15 years in a variety of roles, developing broad expertise
in consumer financial services, international finance and mergers and
acquisitions. Mr. Bardman earned a BA degree from Dickinson College
in Pennsylvania, with a major in history and a minor in economics. He
is a graduate of GE’s intensive Financial Management Program.

Werner Heid joined Logitech as Senior Vice President, Worldwide Sales
& Marketing, in February 2009. Prior to joining Logitech, Mr. Heid
was a consultative CEO to private equity firms from 2006 to 2009.
Previously, he served as the president and chief executive officer of
Iomega Corporation, the provider of consumer and small-business data-
storage solutions, from 2001 to 2006. Before joining Iomega, Mr. Heid
was the executive vice president of global sales, marketing and service
for InFocus Corporation, a leading supplier of multimedia projection
systems for consumers and business, from 2000 to 2001. He joined
InFocus when it acquired Proxima Corporation, where Mr. Heid served
as president from 1998 to 2000. Prior to taking on his leadership role at
Proxima, Mr. Heid was with Hewlett-Packard Corporation for 14 years,
in both Europe and the United States. At Hewlett-Packard, he led the
business definition and the successful global market launch of the
company’s All-In-One and color copier product businesses. Mr. Heid
holds a masters degree in electrical engineering from University
Karlsruhe in Germany.

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David Henry . . . . . . . . . . . . . . . . . . . . .
53 Years Old
Senior Vice President, Customer
Experience and Chief Marketing Officer
U.S. national

Junien Labrousse . . . . . . . . . . . . . . . . .
52 Years Old
Executive Vice President, Products
French national

L. Joseph Sullivan . . . . . . . . . . . . . . . . .
57 Years Old
Senior Vice President, Worldwide
Operations
U.S. national

David Henry joined Logitech as Senior Vice President, Control Devices
Business Unit, in August 2001 and was named Senior Vice President,
Customer Experience and Chief Marketing Officer in March 2007.
From January 2000 to June 2001, Mr. Henry served as Vice President
of Business Development and Product Management of Xigo Inc., a U.S.
on-line intelligence software company. From November 1997 to January
2000, Mr. Henry held various positions with Iomega, a U.S. portable
storage company. His last position with Iomega was Vice President and
General Manager of Magnetic Products. Mr. Henry holds a BS degree
in Mechanical Engineering from Union College of New York.

Junien Labrousse joined Logitech as Vice President of the Video Division
in 1997. He was named Senior Vice President, Video Business Unit in
April 2001, Senior Vice President, Entertainment and Communications
in July 2005 and Executive Vice President, Products in March 2007.
Prior to joining Logitech, he was Vice President of Engineering from
1995 to 1997 at Winnov LP, a U.S. company engaged in the development
and marketing of multimedia products. For more than 10 years he
held several engineering and management positions at Royal Philips
Electronics NV, a global electronics company, in research and in the
semiconductor business division. Mr. Labrousse holds an MS degree
in Electrical Engineering from the Ecole Superieure d’Ingenieurs de
Marseille, France and an MBA degree from Santa Clara University in
California.

L. Joseph Sullivan joined Logitech in October 2005 as Vice President,
Operations Strategy, and was appointed Senior Vice President,
Worldwide Operations in April 2006. Prior to joining Logitech,
Mr. Sullivan was Vice President of Operational Excellence and Quality
for Carrier Corporation, a subsidiary of United Technologies, from 2001
to 2005. Previously, he was with ACCO Brands, Inc. in engineering
and manufacturing management roles from 1998 to 2001. Mr. Sullivan
holds a BS degree in Marketing Management and an MBA degree in
Operations Management from Suffolk University in Massachusetts.

4.2

Involvements outside Logitech of the Executive Officers

No Logitech executive officer currently has supervisory, management, or material advisory functions outside

Logitech. None of the Company’s executive officers hold any official functions or political posts.

4.3 Management Contracts

Logitech has not entered into any contractual relationships regarding the management of the Company or its

subsidiaries.

5. Compensation, Shareholdings and Loans

Please refer to Logitech’s Compensation Report in our Invitation and Proxy Statement for our 2010 Annual
General Meeting, available at http://ir.logitech.com, for information on Logitech’s compensation of its Board
members and executive officers, and regarding how and why we make compensation decisions.

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In addition, for information required to be disclosed under Swiss law regarding compensation during fiscal
year 2010 of the individual members of the Board and of the executive officers, in aggregate, and regarding the
security ownership of members of the Board of Directors and of Logitech executive officers as of March 31, 2010,
among other disclosures, please refer to Note 19 – Other Disclosures Required by Swiss Law – included in the
Consolidated Financial Statements included in the 2010 Annual Report.

Shareholders’ Participation Rights

6.1 Exercise and Limitations to Shareholders’ Voting Rights

Each registered share confers the right to one vote at a general meeting of shareholders. There are no limitations
to the number of voting rights that a shareholder or group of shareholders is entitled to exercise, and there are no
preferential voting rights. To exercise voting rights at a general meeting of shareholders, a shareholder must have
registered their shares by the date set by the Board of Directors for the closing of the share register before each
general meeting of shareholders. Refer to section 2.6 for more information on the registration process.

Any shareholder may be represented at a meeting by a person of its choice who need not be a shareholder of
the Company. The power of attorney must be made in writing. The use of a form prepared by the Company may
be required.

There are currently no limitations under Swiss law or in the Company’s Articles of Incorporation restricting

the rights of shareholders outside Switzerland to hold or vote Logitech shares.

6.2 Shareholders’ Resolutions for which a Particular Majority is Required

In general, the resolutions of the general meeting of shareholders are passed with a simple majority of the votes
cast. However, a number of resolutions may only be passed with a majority of two-thirds of the votes represented,
including the following.

• change in the Company’s corporate purpose;

• creation of shares with privileged voting rights;

•

restriction of the transferability of the shares;

• creation of authorized or conditional capital;

• capital increases to be paid-in by means of existing reserves, against contributions in kind, or conducted

with a view to the acquisition of specific assets;

• grant of special benefits;

•

suppression or limitation of the shareholders’ preferential subscription right;

• change of the registered office of the Company; and

•

liquidation of the Company.

6.3 Convocation of the General Meeting of Shareholders

The Board of Directors generally convenes a general meeting of shareholders. The convocation notice is made
in writing and under Swiss law must be sent to each registered shareholder at the address recorded in the share
register at least 20 days prior to the meeting.

Under our Articles of Incorporation one or more shareholders who represent together at least 10% of 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 by the Board of Directors at least 60 days before the date of the proposed meeting.

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The Company has received an exemption from compliance with a Nasdaq listing standard that requires that
the quorum for shareholder meetings be at least 33 1/3% of the outstanding voting shares. Under Swiss law, public
companies do not have specific quorum requirements for shareholder meetings. Accordingly, Logitech, like most
other Swiss public companies, does not observe quorum requirements with respect to its shareholder meetings.
In compliance with Swiss law, Logitech sends an invitation to all of its registered shareholders and publishes the
notice of the meeting in the Swiss financial press. It also sends a proxy statement, or a notice of availability of the
proxy statement, in either case prepared in accordance with U.S. securities laws, to all registered shareholders and
all beneficial shareholders where requested by the registered shareholder or required by law. Logitech has combined
the invitation required under Swiss law and the proxy statement required under U.S. law into one document, titled
Invitation and Proxy Statement, for its 2010 Annual General Meeting, Also, to encourage attendance, Logitech
holds its Annual General Meeting close to its operations in Switzerland.

6.4 Shareholders’ Right to Place Items on the Agenda of a Meeting

Under the Company’s Articles of Incorporation, one or more registered shareholders who together represent
shares representing at least the lesser of (i) one percent of the Company’s issued share capital or (ii) an aggregate par
value of one million Swiss francs, may demand that an item be placed on the agenda of a meeting of shareholders.

A request to place an item on the meeting agenda must be in writing, describe the proposal and be received
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 sent to: Secretary to the Board of Directors,
Logitech International S.A., Rue du Sablon 2-4, CH-1110 Morges, Switzerland, or c/o Logitech Inc., 6505 Kaiser
Drive, Fremont, CA 94555, USA.

6.5 Registration in the Company’s Share Register

Registration into the Company’s share register, or the sub-register maintained by the Company’s U.S. transfer
agent, The Bank of New York Mellon, occurs upon request and is not subject to any condition. The Company’s
share register closes 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 is closed have the right to
vote at the meeting.

7. Mandatory Offer and Change of Control Provisions

7.1 Mandatory Offer

Under Swiss law any shareholder who acquires more than 33 1/3% of the voting rights of a Swiss company
whose shares are listed in whole or in part in Switzerland is required to make an offer to acquire all listed equity
securities of the company at a minimum price. Logitech International S.A.’s Articles of Incorporation do not
remove this requirement. The Articles do not increase the participation threshold above which an offer must be
made. Consequently, any person having acquired more than a third of the Company’s voting rights will be required
to make an offer for all outstanding shares of the Company.

7.2 Change of Control Provisions

Please refer to Logitech’s Compensation Report included in its Invitation and Proxy Statement for the 2010
Annual General Meeting, available at http://ir.logitech.com, for information on the severance and change of control
agreements in place with Logitech’s executive officers, and regarding the potential payments in the event of
termination of service of an executive officer or a change-in-control of Logitech.

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Independent Auditors

Under the Company’s Articles of Incorporation, the shareholders elect the Company’s independent auditors

each year at the Annual General Meeting. Re-election is permitted.

The Company’s independent auditors are currently PricewaterhouseCoopers SA, Lausanne branch, 45,
Avenue C.F. Ramuz, P.O. Box 1172, 1001, Lausanne, Switzerland. PricewaterhouseCoopers S.A. assumed its first
audit mandate for Logitech in 1988. They were re-elected as the Company’s auditors at the Annual General Meeting
in September 2009. The responsible principal audit partner as of March 31, 2010 is Travis Randolph. For purposes
of U.S. securities law reporting, PricewaterhouseCoopers LLP, San Jose, California, serves as the Company’s
independent registered public accounting firm.

Please refer to Logitech’s Compensation Report included in its Invitation and Proxy Statement for the 2010
Annual General Meeting, available at http://ir.logitech.com, under the heading “Board Committees,” “Independent
Auditors” and “Report of the Audit Committee” for further information regarding the audit and non-audit fees
paid by Logitech to PricewaterhouseCoopers during fiscal year 2010, pre-approval policies for non-audit work by
PricewaterhouseCoopers, and the supervisory and control instruments of the Board of Directors, including the
Audit Committee of the Board, over the work and activities of PricewaterhouseCoopers.

Information Policy

The Company reports its financial results quarterly with an earnings press release. Quarterly financial results

are scheduled to be released as follows:

Q2FY11 Earnings Release and Conference Call . . . . . . . . . . . . . . . . . . . . . . . . .
Q3FY11 Earnings Release and Conference Call . . . . . . . . . . . . . . . . . . . . . . . . .
Q4FY11 Earnings Release and Conference Call . . . . . . . . . . . . . . . . . . . . . . . . .

October 28, 2010
January 27, 2011
April 28, 2011

The Company’s 2010 Annual General Meeting is to be held September 8, 2010 at the Palais de Beaulieu in

Lausanne, Switzerland.

All registered shareholders and all shareholders in the United States that hold their shares through a U.S. bank
or brokerage or other nominee receive a copy of the Logitech Annual Report and Invitation and Proxy Statement,
or a notice that such documents are available. The Annual Report contains an overview of Logitech’s business in
the fiscal year, audited financial statements for the group and the Company, the Report on Corporate Governance
and other key financial and business information. The Invitation and Proxy Statement includes a description of
the matters to be acted upon at the Annual General Meeting of shareholders, a Compensation Report on executive
officer and Board member compensation, and other disclosures required under applicable Swiss and U.S. laws.

Logitech holds public conference calls after our quarterly earnings releases to discuss the results and present
an opportunity for institutional analysts to ask questions of the Chief Executive Officer and Chief Financial Officer.
Logitech also holds periodic analyst days where senior management present reviews of Logitech’s business. These
events are webcast and remain available on Logitech’s Investor Relations website for a period of time after the
events. Logitech senior management also regularly participates in institutional investor seminars and roadshows,
many of which are also webcast.

Our Investor Relations Web site is located at http://ir.logitech.com. We post and maintain an archive of
our earnings and other press releases, current reports, annual and quarterly reports, earnings release schedule,
information regarding annual general meetings, further information on corporate governance, and other information
regarding the Company on the Investor Relations Web site. The information we post includes, and in the future will
include, filings we make with the U.S. Securities and Exchange Commission (“SEC”), including reports on Forms
8-K, 10-K, 10-Q, our proxy statement related to our annual shareholders’ meeting, including our Compensation
Report on executive officer and Board member compensation, and any amendments to those reports or statements

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filed or furnished pursuant to U.S. securities laws. All such filings and information are available free of charge on
the web site, and we make them available on the web site as soon as reasonably possible after we file or furnish
them with the SEC. The contents of these web sites are not intended to be incorporated by reference into this report
or in any other report or document we file and our references to these Web sites are intended to be inactive textual
references only.

In addition, Logitech publishes press releases upon occurrence of significant events within Logitech.
Shareholders and members of the public may elect to receive e-mails when Logitech issues press releases
upon occurrence of significant events within Logitech or other press releases by subscribing through
http://ir.logitech.com/alerts.cfm.

As a Swiss company traded on the SIX Swiss Exchange, and as a company subject to the provisions
of Section 16 of the Securities Exchange Act of 1934, as amended, we file reports on transactions in
Logitech securities by members of Logitech’s Board of Directors and executive officers. The reports
that we file with the SEC on Forms 3, 4 and 5 may be accessed on our website or on the SEC’s website at
http://www.sec.gov, and the reports that we file that are published by the SIX Swiss Exchange may be accessed at
http://www.six-exchange-regulation.com/obligations/management_transactions_en.html.

For no charge, a copy of our annual reports and filings made with the SEC can be requested by contacting our
Investor Relations department: Logitech Investor Relations, 6505 Kaiser Drive, Fremont, CA 94555 USA, Main
510-795-8500, e-mail: LogitechIR@logitech.com.

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LOGITECH INTERNATIONAL S.A.
Consolidated Subsidiaries

Jurisdiction of Incorporation

Group
Holding %

Share Capital

Name of Subsidiary

EUROPE

3Dconnexion GmbH . . . . . . . . . . . . . . . . . .
3Dconnexion S.A. . . . . . . . . . . . . . . . . . . . .
3Dconnexion Polska Sp z.o.o. . . . . . . . . . . .
Labtec Europe S.A. . . . . . . . . . . . . . . . . . . .
Logi Trading and Services

Federal Republic of Germany
Switzerland
Poland
Switzerland

Limited Liability Company . . . . . . . . . Hungary

Spain
Switzerland

Jersey, Channel Islands
Federal Republic of Germany

Federal Republic of Germany
Ireland

Logitech UK Limited . . . . . . . . . . . . . . . . . United Kingdom
Logitech (Jersey) Limited . . . . . . . . . . . . . .
Logitech 3D Holding GmbH . . . . . . . . . . .
Logitech Czech Republic, s.r.o. . . . . . . . . . Czech Republic
Logitech Espana BCN SL . . . . . . . . . . . . . .
Logitech Europe S.A. . . . . . . . . . . . . . . . . .
SAS Logitech France . . . . . . . . . . . . . . . . . Republic of France
Logitech GmbH . . . . . . . . . . . . . . . . . . . . .
Logitech Ireland Services Limited . . . . . . .
Logitech Italia SRL . . . . . . . . . . . . . . . . . . Republic of Italy
Logitech Nordic AB . . . . . . . . . . . . . . . . . .
Logitech Benelux B.V. . . . . . . . . . . . . . . . . Kingdom of the Netherlands
Logitech Poland Spolka z.o.o. . . . . . . . . . .
Logitech S.A. . . . . . . . . . . . . . . . . . . . . . . .
Logitech Austria GmbH . . . . . . . . . . . . . . . Austria
Logitech Middle East FZ-LLC . . . . . . . . . . United Arab Emirates
Logitech (Streaming Media) SA . . . . . . . . .
Logitech Hellas MEPE . . . . . . . . . . . . . . . . Greece
Logitech Schweiz AG . . . . . . . . . . . . . . . . .
Limited Liability Company “Logitech” . . . Russia
Logi Peripherals Technologies

Poland
Switzerland

Switzerland

Sweden

(South Africa) (Proprietary) Limited . .

South Africa

LifeSize Communications Limited . . . . . . United Kingdom
LifeSize Communications, GmbH . . . . . . . Germany
LifeSize Communications SARL . . . . . . . .

France

AMERICAS

3Dconnexion Inc. . . . . . . . . . . . . . . . . . . . . United States of America
Dexxa Accessorios

De Informatica Do Brasil Ltda. . . . . . . Brazil

Labtec Inc. . . . . . . . . . . . . . . . . . . . . . . . . . United States of America
Logitech (Intrigue) Inc. . . . . . . . . . . . . . . . Canada
Logitech (Slim Devices) Inc. . . . . . . . . . . . United States of America
Logitech (Streaming Media) Inc. . . . . . . . . United States of America
WiLife, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . United States of America
Logitech Canada Inc. . . . . . . . . . . . . . . . . . Canada
Logitech de Mexico S.A. de C.V. . . . . . . . . Mexico
Logitech Inc. . . . . . . . . . . . . . . . . . . . . . . . . United States of America

100
100
100
100

100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100

100
100
100
100

100

100
100
100
100
100
100
100
100
100

EUR
CHF
PLZ
CHF

HUF
GBP
USD
USD
CZK
EUR
CHF
EUR
EUR
EUR
EUR
SEK
EUR
PLN
CHF
EUR
AED
CHF
EUR
CHF
RUB

ZAR
GBP
EUR
EUR

27,727
100,000
50,000
150,000

3,000,000
20,000
188
28,039
200,000
50,000
100,000
182,939
25,565
3
20,000
100,000
18,151
50,000
200,000
35,000
100,000
100,000
18,000
100,000
20,000

1,000
2
25,000
7,500

USD

70,708

10,000
BRL
44,864
USD
1,661,340
CAD
10
USD
10
USD
10
USD
100
CAD
50,000
MXN
USD 11,522,396

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LOGITECH INTERNATIONAL S.A.
Consolidated Subsidiaries—(Continued)

Jurisdiction of Incorporation

Group
Holding %

Share Capital

Name of Subsidiary

AMERICAS (continued)

Logitech Servicios Latinoamérica,

S.A. de C.V. . . . . . . . . . . . . . . . . . . . . . . Mexico

Ultimate Ears LLC . . . . . . . . . . . . . . . . . . . United States of America
Ultimate Ears Incorporated . . . . . . . . . . . . United States of America
UE Acquisition Inc. . . . . . . . . . . . . . . . . . . United States of America
UE Consumer, LLC . . . . . . . . . . . . . . . . . . United States of America
SightSpeed, Inc. . . . . . . . . . . . . . . . . . . . . . United States of America
LifeSize Communications, Inc . . . . . . . . . . United States of America

ASIA PACIFIC

LogiCool Co., Ltd. . . . . . . . . . . . . . . . . . . .
Logitech Electronic (India)

Japan

Private Limited . . . . . . . . . . . . . . . . . . .

India

Logitech Far East, Ltd. . . . . . . . . . . . . . . . . Taiwan, Republic of China
Logitech Hong Kong, Limited . . . . . . . . . . Hong Kong
Logitech Korea Ltd. . . . . . . . . . . . . . . . . . . Korea
Logitech New Zealand Co., Ltd. . . . . . . . . New Zealand
Logitech Service Asia Pacific Pte. Ltd. . . . Republic of Singapore
Logitech Singapore Pte. Ltd. . . . . . . . . . . . Republic of Singapore
Logitech Technology (Suzhou) Co., Ltd. . .
Suzhou Logitech Computing

People’s Republic of China

Equipment Co., Ltd. . . . . . . . . . . . . . . .
Suzhou Logitech Electronic Co. Ltd. . . . . .
Logitech Asia Logistics Limited . . . . . . . . Hong Kong
Logitech Asia Pacific Limited . . . . . . . . . . Hong Kong
Logitech Australia Computer

People’s Republic of China
People’s Republic of China

Peripherals Pty, Limited . . . . . . . . . . . . Commonwealth of Australia

Logitech (Beijing) Trading Company

Limited . . . . . . . . . . . . . . . . . . . . . . . . .

People’s Republic of China

Logitech Technology (Shenzhen)

Consulting Co., Ltd . . . . . . . . . . . . . . . .

People’s Republic of China

LifeSize Hong Kong Limited . . . . . . . . . . . Hong Kong
LifeSize Communications Pte. Ltd. . . . . . .
LifeSize Communications India

Singapore

Private Limited . . . . . . . . . . . . . . . . . . .
LifeSize Communications KK . . . . . . . . . .

India
Japan

100
100
100
100
100
100
100

100

100
100
100
100
100
100
100
100

100
100
100
100

100

100
100
100

100
100

MXN
USD
USD
USD
USD
USD
USD

50,000
—
10
1
—
1
1

JPY 155,000,000

INR

107,760
TWD 480,000,000
1,282
USD
KRW 150,144,225
10,000
NZD
1
USD
500
SGD
USD 22,000,000

USD 7,500,000
USD 5,000,000
13
USD
13
USD

AUD

CNY 5,000,000

CNY
HKD
SGD

110,000
100
2

100,000
INR
JPY 3,000,000

Due to local legal requirements, there may be holders of nominal shares apart from Logitech.

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165

CONSOLIDATED FINANCIAL STATEMENTS

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Statements of Income – Years Ended March 31, 2010, 2009 and 2008 . . . . . . . . . . . . . . . . . .
Consolidated Balance Sheets – March 31, 2010 and 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Cash Flows – Years Ended March 31, 2010, 2009 and 2008 . . . . . . . . . . . . . .
Consolidated Statements of Changes in Shareholders’ Equity – Years Ended March 31, 2010, 2009

and 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page
168
169
170

171
172

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PricewaterhouseCoopers SA
Avenue C.-F. Ramuz 45
Case postale 1172
1001 Lausanne
Phone +41 58 792 81 00
Fax +41 58 792 81 10
www.pwc.ch

Report of the statutory auditor
to the general meeting of
Logitech International S.A.
Apples

Report of the statutory auditor on the consolidated financial statements

As statutory auditor, we have audited the consolidated financial statements of Logitech International S.A.,
which comprise the balance sheet, income statement, statement of cash flows, statement of changes in shareholders’
equity and notes for the year ended March 31, 2010, listed in the index appearing on page 165.

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of America (US GAAP)
and the requirements of Swiss law. This responsibility includes designing, implementing and maintaining an internal
control system relevant to the preparation and fair presentation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error. The Board of Directors is further responsible for selecting and
applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with Swiss law, Swiss Auditing Standards and the standards of
the Public Company Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from
material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control system. An audit also includes evaluating the appropriateness of the accounting policies
used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the
consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements for the year ended March 31, 2010 present fairly, in all
material respects, the financial position, the results of operations and the cash flows in accordance with accounting
principles generally accepted in the United States of America (US GAAP) and comply with Swiss law.

166

167

Report on other legal requirements

We confirm that we meet the legal requirements on licensing according to the Auditor Oversight Act (AOA)
and independence (article 728 CO and article 11 AOA) and that there are no circumstances incompatible with our
independence.

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that
an internal control system exists which has been designed for the preparation of consolidated financial statements
according to the instructions of the Board of Directors.

We recommend that the consolidated financial statements submitted to you be approved.

PricewaterhouseCoopers SA

Travis Randolph
Audit expert
Auditor in charge

Lausanne, May 27, 2010

Enclosures:

Luc Schulthess
Audit expert

–

Consolidated financial statements (balance sheet, income statement, statement of cash flows, statement of
changes in shareholders’ equity and notes) for the year ended March 31, 2010, listed in the index appearing on
page 165.

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167

LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expenses:

Marketing and selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income per share:

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shares used to compute net income per share:

Year ended March 31,
2009

2008

2010

$1,966,748
1,339,852
626,896

$2,208,832
1,517,606
691,226

$2,370,496
1,521,378
849,118

304,788
135,813
106,147
1,784
548,532
78,364
2,120
3,139
83,623
18,666
64,957

319,167
128,755
113,103
20,547
581,572
109,654
8,628
8,511
126,793
19,761
$ 107,032

324,451
124,544
113,443
—
562,438
286,680
15,508
(39,374)
262,814
31,788
$ 231,026

0.37
0.36

$
$

0.60
0.59

$
$

1.27
1.23

$
$

177,279
179,340

178,811
182,911

181,362
187,942

The accompanying notes are an integral part of these consolidated financial statements.

168

169

LOGITECH INTERNATIONAL S.A.

CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)

March 31,

2010

2009

Current assets:

ASSETS

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 319,944
—
195,247
219,593
58,877
793,661
91,229
553,462
95,396
65,930
$1,599,678

$ 492,759
1,637
213,929
233,467
56,884
998,676
104,132
242,909
32,109
43,704
$1,421,530

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 257,955
182,336
440,291
159,672
599,963

$ 157,798
131,496
289,294
134,528
423,822

Commitments and contingencies
Shareholders’ equity:

Shares, par value CHF 0.25 — 191,606,620 issued and authorized and

50,000,000 conditionally authorized at March 31, 2010 and 2009 . . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares in treasury, at cost, 16,435,528 at March 31, 2010

and 12,124,078 at March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . .

33,370
14,880

33,370
45,012

(382,512)
1,406,618
(72,641)
999,715
$1,599,678

(341,454)
1,341,661
(80,881)
997,708
$1,421,530

The accompanying notes are an integral part of these consolidated financial statements.

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169

LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Cash flows from operating activities:

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-cash items included in net income:

$ 64,957

$ 107,032

$ 231,026

Year ended March 31,
2009

2008

2010

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of other intangible assets . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense related to options,

restricted stock units (“RSUs”) and stock purchase rights . . .
Write-down of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from share-based compensation . . . . . . . . . .
Loss (gain) on cash surrender value of life insurance policies . . .
In-process research and development . . . . . . . . . . . . . . . . . . . . . .
Deferred income taxes and other . . . . . . . . . . . . . . . . . . . . . . . . . .

Changes in assets and liabilities, net of acquisitions:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities. . . . . . . . . . . . . .

Cash flows from investing activities:

Acquisitions and investments, net of cash acquired . . . . . . . . . . . . . .
Purchases of property, plant and equipment . . . . . . . . . . . . . . . . . . . .
Purchases of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales of investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from cash surrender of life insurance policies. . . . . . . . . . .
Premiums paid on cash surrender value life insurance policies . . . . .
Net cash provided by (used in) investing activities . . . . . .

Cash flows from financing activities:

Purchases of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of shares upon exercise of options

and purchase rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Repayments of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from share-based compensation . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . . . .
Effect of exchange rate changes on cash and cash equivalents. . . . . . . . .
Net increase (decrease) in cash and cash equivalents. . . . .
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of period. . . . . . . . . . . . . . . . . . . . . . . .
Supplemental cash flow information:

56,380
14,515

25,807
643
—
(2,814)
(1,223)
—
(17,895)

28,489
30,942
15,038
94,155
56,265
365,259

(388,809)
(39,834)
—
—
—
813
—
(427,830)

44,021
8,166

24,503
2,727
—
(6,592)
2,868
1,000
(10,387)

152,496
(9,078)
14,615
(123,802)
(6,982)
200,587

(64,430)
(48,263)
—
—
—
—
(427)
(113,120)

43,831
5,391

21,040
79,823
(27,761)
(15,231)
(724)
—
(2,138)

(31,212)
(10,230)
(10,725)
61,096
48,893
393,079

(59,722)
(57,900)
(379,793)
538,479
13,308
—
(1,151)
53,221

(126,301)

(78,870)

(219,742)

28,917
(13,630)
2,814
(108,200)
(2,044)
(172,815)
492,759
$ 319,944

31,119
—
6,592
(41,159)
(35,901)
10,407
482,352
$ 492,759

50,603
(11,739)
15,231
(165,647)
5,502
286,155
196,197
$ 482,352

Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$
$

66
9,436

$
143
$ 15,268

$
22
$ 11,655

The accompanying notes are an integral part of these consolidated financial statements.

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LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(In thousands)

March 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative translation adjustment . . . . . . . . . . . . . .
Deferred realized hedging loss . . . . . . . . . . . . . . . . .
Actuarial loss on pension plan,

net of tax of $31 . . . . . . . . . . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . . . . . . .

Change in pension plan measurement date . . . . . . . .
Adjustment for adoption of accounting requirements
for uncertain tax positions . . . . . . . . . . . . . . . . . .
Tax benefit from exercise of stock options . . . . . . . .
Purchase of treasury shares . . . . . . . . . . . . . . . . . . . .
Sale of shares upon exercise of options

and purchase rights . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense . . . . . . . . . . . . .
March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative translation adjustment . . . . . . . . . . . . . .
Net deferred hedging gains . . . . . . . . . . . . . . . . . . . .
Actuarial loss on pension plan, net of tax of $182 . . .
Unrealized gain on investment . . . . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . . . . . . .

Tax benefit from exercise of stock options . . . . . . . .
Purchase of treasury shares . . . . . . . . . . . . . . . . . . . .
Sale of shares upon exercise of options

and purchase rights . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense . . . . . . . . . . . . .
March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cumulative translation adjustment . . . . . . . . . . . . . .
Net deferred hedging gains . . . . . . . . . . . . . . . . . . . .
Actuarial gain on pension plan, net of tax of $122 . .
Total comprehensive income . . . . . . . . . . . . . . . .

Tax benefit from exercise of stock options . . . . . . . .
Purchase of treasury shares . . . . . . . . . . . . . . . . . . . .
Sale of shares upon exercise of options

and purchase rights . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense . . . . . . . . . . . . .
March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Registered shares
Shares Amount
191,606 $ 33,370
—
—
—

—
—
—

Additional
paid-in
capital
$ 72,779
—
—
—

Treasury shares
Amount

Retained
earnings
$ (217,073) $ 995,606
231,026
—
—

—
—
—

Shares
9,364
—
—
—

Accumulated
other
comprehensive
loss
$ (40,158)
—
28,006
(992)

—

(6,339)

—
—
—

—
3,894

—
—
— 7,784

—
—
(219,742)

(317)

8,314
—
—

—
—
—

— (47,919)
— 21,067
$ 49,821

(4,717)
—
12,431

98,522
—

—
—
$ (338,293) $1,234,629

—
—
$ (19,483)

191,606 $ 33,370

—
—
—

— 15,253
—

—
— 2,803

—
(78,870)

107,032

—
—
—

—
—

(55,983)
216
(6,055)
424

—
—

Total
$ 844,524
231,026
28,006
(992)

(6,339)
$ 251,701

(317)

8,314
3,894
(219,742)

50,603
21,067
$ 960,044

107,032
(55,983)
216
(6,055)
424
$ 45,634

15,253
(78,870)

— (44,590)
— 24,528
$ 45,012

(3,110)
—
12,124

75,709
—

—
—
$ (341,454) $ 1,341,661

—
—
$(80,881)

31,119
24,528
$ 997,708

191,606 $ 33,370

—
—

64,957

2,753
1,178
4,309

64,957
2,753
1,178
4,309
73,197

266

—
— 7,425

—
(126,301)

—
—

266
(126,301)

—
—

— (56,326)
— 25,928
$ 14,880

191,606 $ 33,370

(3,114)
—
16,435

85,243
—

—
—
$ (382,512) $ 1,406,618

—
—
$(72,641)

28,917
25,928
$ 999,715

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—
—
—

—
—

—
—
—

—
—

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The accompanying notes are an integral part of these consolidated financial statements.

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — The Company

Logitech is a world leader in personal peripherals for computers and other digital platforms. We develop
and market innovative products in PC navigation, Internet communications, digital music, home-entertainment
control, gaming and wireless devices. For the PC, our products include mice, trackballs, keyboards, interactive
gaming controllers, multimedia speakers, headsets, webcams, 3D control devices and lapdesks. Our Internet
communications products include webcams, headsets, video communications services, and digital video security
systems for a home or small business. Our LifeSize division offers scalable high-definition video communications
products, support and services. Our digital music products include speakers, earphones, and custom in-ear monitors.
For home entertainment systems, we offer the Harmony line of advanced remote controls and the Squeezebox and
Transporter wireless music solutions for the home. For gaming consoles, we offer a range of gaming controllers,
including racing wheels, wireless guitar and drum controllers, and microphones, as well as other accessories.

We sell our peripheral products to a network of retail distributors and resellers (“retail”) and to original
equipment manufacturers (“OEMs”). We sell our LifeSize products and services to distributors, value-added
resellers, OEMs and direct enterprise customers. The large majority of our revenues are derived from sales of our
personal peripheral products for use by consumers.

Note 2 — Summary of Significant Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Logitech and its subsidiaries. All intercompany
balances and transactions have been eliminated. The consolidated financial statements are presented in accordance
with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion
of management, these financial statements include all adjustments, consisting of normal recurring adjustments,
necessary for a fair statement of the results for the periods presented.

Net income for fiscal year 2009 includes $6.7 million in pretax charges related to revenue adjustments,
accounting for warranties, accounting for employee benefit accruals and other adjustments from fiscal year 2008.
The total pretax charge of $6.7 million was corrected in the first, third and fourth quarters of fiscal year 2009. We
reviewed the accounting errors utilizing SEC Staff Accounting Bulletin No. 99, Materiality (“SAB 99”) and SEC
Staff Accounting Bulletin No. 108, Effects of Prior Year Misstatements on Current Year Financial Statements
(“SAB 108”), and determined the impact of the errors to be immaterial to any period presented.

Certain prior year financial statement amounts have been reclassified to conform to the current year

presentation with no impact on previously reported net income.

Fiscal Year

The Company’s fiscal year ends on March 31. Interim quarters are thirteen-week periods, each ending
on a Friday. For purposes of presentation, the Company has indicated its quarterly periods as ending on the
month end.

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Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the
United States (“U.S. GAAP”) requires management to make judgments, estimates and assumptions that affect
reported amounts of assets, liabilities, net sales and expenses, and the disclosure of contingent assets and liabilities.
Although these estimates are based on management’s best knowledge of current events and actions that may impact
the Company in the future, actual results could differ from those estimates.

Foreign Currencies

The functional currency of the Company’s operations is primarily the U.S. dollar. To a lesser extent, certain
operations use the euro, Swiss franc, Japanese yen or the local currency of the country as their functional currencies.
The financial statements of the Company’s subsidiaries whose functional currency is other than the U.S. dollar are
translated to U.S. dollars using period-end rates of exchange for assets and liabilities and monthly average rates for
revenues and expenses. Cumulative translation gains and losses are included as a component of shareholders’ equity
in accumulated other comprehensive loss. Gains and losses arising from transactions denominated in currencies
other than a subsidiary’s functional currency are reported in other income (expense), net in the consolidated
statement of income.

Revenue Recognition

Revenues are recognized when all of the following criteria are met:

• evidence of an arrangement exists between the Company and the customer;

• delivery has occurred and title and risk of loss transfer to the customer;

•

the price of the product is fixed or determinable; and

• collectibility of the receivable is reasonably assured.

Certain video communications products are integrated with software that is essential to the functionality
of the equipment. In addition, unspecified software upgrades and enhancements are provided for some of these
products during a maintenance period of one year.

The Company uses the residual method to recognize revenue when an agreement includes one or more
elements that are more than incidental to the arrangement, to be delivered at a future date. If there is an undelivered
element under the arrangement, Logitech defers revenue based on vendor-specific evidence of the fair value of the
undelivered element, as determined by the price charged when the element is sold separately. If vendor-specific
objective evidence of fair value does not exist for all undelivered elements, the Company defers all revenue until
sufficient evidence exists or all elements have been delivered.

Separately priced maintenance contracts and extended service revenue on hardware and software products

are recognized ratably over the service period.

Revenues from sales to distributors and authorized resellers are recognized net of estimated product returns
and expected payments for cooperative marketing arrangements, customer incentive programs and pricing
programs. The estimated cost of these programs is accrued in the period the Company sells the product or commits
to the program as a reduction of revenue or as an operating expense, if we receive a separately identifiable benefit
from the customer and can reasonably estimate the fair value of that benefit. Significant management judgment and
estimates must be used to determine the cost of these programs in any accounting period.

The Company grants limited rights to return product. Return rights vary by customer, and range from
just the right to return defective product to stock rotation rights to return a limited percentage of the previous
quarter’s purchases. Estimates of expected future product returns are recognized at the time of sale based on

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analyses of historical return trends by customer and by product, inventories owned by and located at distributors
and retailers, current customer demand, current operating conditions, and other relevant customer and product
information, such as stage of product life-cycle. Return trends are influenced by the timing of the sale, the type
of customer, operational policies and procedures, product sell-through, product quality issues, sales levels, market
acceptance of products, competitive pressures, new product introductions, product life cycle status, and other
factors. Return rates can fluctuate over time, but are sufficiently predictable to allow us to estimate expected future
product returns.

The Company’s cooperative marketing arrangements include contractual customer marketing and sales
incentive programs. We enter into customer marketing programs with many of our distribution and retail customers
allowing customers to receive a credit equal to a set percentage of their purchases of the Company’s products, or a
fixed dollar credit for various marketing programs. The objective of these programs is to encourage advertising and
promotional events to increase sales of our products. Accruals for the estimated costs of these marketing programs
are recorded based on the contractual percentage of product purchased in the period we recognize revenue. The
Company also offers rebates and discounts for certain types of sell-through programs. Accruals for these sales
incentive programs are recorded at the time of sale, or time of commitment, based on negotiated terms, historical
experience and inventory levels in the channel.

Customer incentive programs include volume and consumer rebates. The Company offers volume rebates
to its distribution and retail customers related to purchase volumes or sales of specific products by distributors to
specified retailers. Reserves for volume rebates are recognized as a reduction of the sale price at the time of sale.
Estimates of required reserves are determined based on negotiated terms, consideration of historical experience,
anticipated volume of future purchases, and inventory levels in the channel. Consumer rebates are offered from
time to time at the Company’s discretion directly to end-users. Estimated costs of consumer rebates and similar
incentives are recorded at the time the incentive is offered, based on the specific terms and conditions. Certain
incentive programs, including consumer rebates, require management to estimate the number of customers
who will actually redeem the incentive based on historical experience and the specific terms and conditions of
particular programs.

The Company has contractual agreements with certain of its customers that contain terms allowing price
protection credits to be issued in the event of a subsequent price reduction (contractual price protection). At
management’s discretion, the Company also offers special pricing discounts to certain customers. Special pricing
discounts are usually offered only for limited time periods or for sales to specific indirect partners. Management’s
decision to make price reductions is influenced by channel inventory levels, product life cycle stage, market
acceptance of products, the competitive environment, new product introductions and other factors. Credits are
issued for units that customers have on hand or in transit at the date of the price reduction. Reserves for the estimated
amounts to be reimbursed to qualifying customers are established quarterly based on planned price reductions,
analyses of qualified inventories on hand with distributors and retailers and historical trends by customer and
by product.

The Company regularly evaluates the adequacy of the accruals for product returns, cooperative marketing
arrangements, customer incentive programs and pricing programs. Future market conditions and product transitions
may require the Company to take action to increase such programs. In addition, when the variables used to estimate
these costs change, or if actual costs differ significantly from the estimates, the Company would be required to
record incremental reductions to revenue or increase operating expenses. If, at any future time, the Company
becomes unable to reasonably estimate these costs, recognition of revenue might be deferred until products are sold
to end-users, which would adversely impact revenue in the period of transition.

The Company’s shipping and handling costs are included in cost of sales in the accompanying Consolidated

Statements of Income for all periods presented.

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Research and Development Costs

Costs related to research, design and development of products, which consist primarily of personnel, product

design and infrastructure expenses, are charged to research and development expense as they are incurred.

Advertising Costs

Advertising costs are expensed as incurred and amounted to $106.4 million, $151.2 million and $188.5 million
in fiscal years 2010, 2009 and 2008. Advertising costs are recorded as either a marketing and selling expense or
a deduction from revenue. Advertising costs reimbursed by the Company to a customer must have an identifiable
benefit and an estimable fair value in order to be classified as an operating expense. If these criteria are not met, the
cost is classified as a reduction of revenue.

Cash Equivalents

The Company considers all highly liquid instruments purchased with an original maturity of three months or

less to be cash equivalents.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally
of cash and cash equivalents and accounts receivable. The Company maintains cash and cash equivalents with
various financial institutions to limit exposure with any one financial institution.

The Company sells to large OEMs, distributors and key retailers and, as a result, maintains individually
significant receivable balances with such customers. As of March 31, 2010, one customer represented 14% of total
accounts receivable. As of March 31, 2009, two customers represented 18% and 10% of total accounts receivable.
Typical payment terms require customers to pay for product sales generally within 30 to 60 days; however terms
may vary by customer type, by country and by selling season. Extended payment terms are sometimes offered to a
limited number of customers during the second and third fiscal quarters. The Company does not modify payment
terms on existing receivables.

The Company’s OEM customers tend to be well-capitalized, multi-national companies, while distributors
and key retailers may be less well-capitalized. The Company manages its accounts receivable credit risk through
ongoing credit evaluation of its customers’ financial condition. The Company generally does not require collateral
from its customers.

Allowances for Doubtful Accounts

Allowances for doubtful accounts are maintained for estimated losses resulting from the inability of the
Company’s customers to make required payments. The allowances are based on the Company’s regular assessment
of the credit worthiness and financial condition of specific customers, as well as its historical experience with bad
debts and customer deductions, receivables aging, current economic trends, geographic or country-specific risks
and the financial condition of its distribution channels.

Inventories

Inventories are stated at the lower of cost or market. Cost is computed on a first-in, first-out basis. The
Company records write-downs of inventories which are obsolete or in excess of anticipated demand or market value
based on a consideration of marketability and product life cycle stage, product development plans, component cost
trends, demand forecasts, historical sales, and assumptions about future demand and market conditions.

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Investments

The Company’s investment securities portfolio consists of auction rate securities collateralized by residential
and commercial mortgages. The investment securities are classified as available-for-sale and are reported at estimated
fair value, which is determined by estimating values of the underlying collateral using analogous published indices
or by estimating future cash flows, either through discounted cash flow or option pricing methods, incorporating
assumptions of default and other future conditions.

Auction rate securities generally have maturity dates greater than 10 years, with interest rates that typically
reset through an auction every 28 days. The markets for the auction rate securities which the Company holds as of
March 31, 2010 and 2009 have failed since August 2007 and are not expected to resume in the foreseeable future,
if at all. As a result, the investments were reclassified from current to non-current assets as of April 1, 2009, as sale
or realization of proceeds from sale is not expected within our normal operating cycle of one year.

Property, Plant and Equipment

Property, plant and equipment are stated at cost. Additions and improvements are capitalized, and maintenance
and repairs are expensed as incurred. The Company capitalizes the cost of software developed for internal use in
connection with major projects. Costs incurred during the feasibility stage are expensed, whereas costs incurred
during the application development stage are capitalized.

With the exception of tooling, depreciation is provided using the straight-line method. Plant and buildings are
depreciated over estimated useful lives from ten to twenty-five years, equipment over useful lives from three to five
years, software development over useful lives of three to five years and leasehold improvements over the life of the
lease, generally not exceeding five years. Tooling is depreciated over the forecasted life of the tool, not to exceed
one year from the time it is placed into production. Depreciation for tooling is calculated based on the forecasted
production volume and adjusted quarterly based on actual production. When property and equipment is retired or
otherwise disposed of, the cost and accumulated depreciation are relieved from the accounts and the net gain or loss
is included in the determination of net income.

Goodwill and Other Intangible Assets

The Company’s intangible assets principally include goodwill, acquired technology, trademarks, customer
contracts and customer relationships, and other. Intangible assets with finite lives, which include acquired technology,
trademarks, customer contracts and customer relationships, and other, are recorded at cost and amortized using
the straight-line method over their useful lives ranging from one year to ten years. Intangible assets with indefinite
lives, which include goodwill, are recorded at cost and evaluated at least annually for impairment.

Impairment of Long-Lived Assets

The Company reviews long-lived assets, such as investments, property and equipment, and intangible assets,
for impairment whenever events indicate that the carrying amounts might not be recoverable. Recoverability
of investments, property and equipment, and other intangible assets is measured by comparing the projected
undiscounted net cash flows associated with those assets to their carrying values. If an asset is considered impaired,
it is written down to fair value, which is determined based on the asset’s projected discounted cash flows or
appraised value, depending on the nature of the asset. Goodwill is evaluated for impairment at least annually.

Income Taxes

The Company provides for income taxes using the liability method, which requires that deferred tax assets
and liabilities be recognized for the expected future tax consequences of temporary differences resulting from
differing treatment of items for tax and accounting purposes. In estimating future tax consequences, expected
future events are taken into consideration, with the exception of potential tax law or tax rate changes.

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The Company’s assessment of uncertain tax positions requires that management make estimates and judgments
about the application of tax law, the expected resolution of uncertain tax positions and other matters. In the event
that uncertain tax positions are resolved for amounts different than the Company’s estimates, or the related statutes
of limitations expire without the assessment of additional income taxes, the Company will be required to adjust the
amounts of the related assets and liabilities in the period in which such events occur. Such adjustments may have a
material impact on the Company’s income tax provision and its results of operations.

Fair Value of Financial Instruments

The carrying value of certain of the Company’s financial instruments, including cash, cash equivalents,
accounts receivable, accounts payable and accrued liabilities approximates fair value due to their short maturities.
The Company’s investment securities are reported at estimated fair value.

Net Income per Share

Basic net income per share is computed by dividing net income by the weighted average outstanding shares.
Diluted net income per share is computed using the weighted average outstanding shares and dilutive share
equivalents. Dilutive share equivalents consist of share-based compensation awards, including stock options and
restricted stock.

The dilutive effect of in-the-money share-based compensation awards is calculated based on the average share
price for each fiscal period using the treasury stock method, which assumes that the amount used to repurchase
shares includes the amount the employee must pay for exercising share-based awards, the amount of compensation
cost not yet recognized for future service, and the amount of tax impact that would be recorded in additional paid-in
capital when the award becomes deductible.

Share-Based Compensation Expense

Share-based compensation expense includes compensation expense, reduced for estimated forfeitures, for
share-based compensation awards granted after April 1, 2006 based on the grant-date fair value. The grant date
fair value for stock options and stock purchase rights is estimated using the Black-Scholes-Merton option-pricing
valuation model. The grant date fair value of restricted stock units (“RSUs”) which vest upon meeting certain market
conditions is estimated using the Monte-Carlo simulation method. The grant date fair value of time-based RSUs is
calculated based on the share market price on the date of grant. For stock options and restricted stock assumed by
Logitech when LifeSize was acquired, the grant date used to estimate fair value is deemed to be December 11, 2009,
the date of acquisition. Compensation expense for awards granted or assumed after April 1, 2006 is recognized on
a straight-line basis over the service period of the award, which is generally the vesting term of four years (single-
option approach) for stock options and one to four years for RSUs.

For share-based compensation awards granted prior to but not yet vested as of April 1, 2006, share-based
compensation expense is based on the grant-date fair value estimated using the Black-Scholes-Merton option-
pricing valuation model reduced for estimated forfeitures. Compensation expense for these awards is recognized
on a straight-line basis over the service period for each separately vesting portion of the award (multiple-option
approach).

Tax benefits resulting from the exercise of stock options are classified as cash flows from financing activities
in the consolidated statement of cash flows. Excess tax benefits are realized tax benefits from tax deductions
for exercised options in excess of the deferred tax asset attributable to share-based compensation costs for
such options.

The Company will recognize a benefit from share-based compensation in paid-in capital only if an incremental
tax benefit is realized after all other available tax attributes have been utilized. For income tax footnote disclosure,
the Company has elected to offset deferred tax assets against the valuation allowance related to the net operating

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loss and tax credit carryforwards from accumulated tax benefits. The Company will recognize these tax benefits
in paid-in capital when the deduction reduces cash taxes payable. In addition, the Company has elected to account
for the indirect benefits of share-based compensation on the research tax credit through the income statement
(continuing operations) rather than through paid-in capital.

Comprehensive Income

Comprehensive income is defined as the total change in shareholders’ equity during the period other than from
transactions with shareholders. Comprehensive income consists of net income and other comprehensive income,
a component of shareholders’ equity. Other comprehensive income is comprised of foreign currency translation
adjustments from those entities not using the U.S. dollar as their functional currency, unrealized gains and losses
on marketable equity securities, net deferred gains and losses and prior service costs for defined benefit pension
plans, and net deferred gains and losses on hedging activity.

Derivative Financial Instruments

The Company enters into foreign exchange forward contracts to reduce the short-term effects of foreign
currency fluctuations on certain foreign currency receivables or payables and to provide against exposure to
changes in foreign currency exchange rates related to its subsidiaries’ forecasted inventory purchases. These
forward contracts generally mature within one to six months. The Company may also enter into foreign exchange
swap contracts to extend the terms of its foreign exchange forward contracts.

Gains and losses in the fair value of the effective portion of our forward contracts related to forecasted
inventory purchases are deferred as a component of accumulated other comprehensive loss until the hedged
inventory purchases are sold, at which time the gains or losses are reclassified to cost of goods sold. Gains or
losses in fair value on forward contracts which offset translation losses or gains on foreign currency receivables or
payables are recognized in earnings monthly and are included in other income (expense), net.

Recent Accounting Pronouncements

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In April 2010, the FASB published ASU 2010-13, Effect of Denominating the Exercise Price of a Share-Based
Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades. The ASU provides
that a share-based payment award with an exercise price denominated in the currency of a market in which a
substantial portion of the entity’s equity shares trades should not be considered to contain a condition that is not a
market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it
otherwise qualifies as equity. The ASU is effective for fiscal years, and interim periods within those fiscal years,
beginning on or after December 15, 2010. Our adoption of ASU 2010-13 in the first quarter of fiscal year 2011 will
not impact the Company’s consolidated financial statements.

Note 3 — Net Income per Share

The computations of basic and diluted net income per share for the Company were as follows (in thousands

except per share amounts):

Net income — basic and diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average shares — basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Effect of dilutive stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2009
$107,032
178,811
4,100

2010
$ 64,957
177,279
2,061

2008
$231,026
181,362
6,580

Weighted average shares — diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income per share — basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income per share — diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

179,340

182,911

187,942

0.37

0.36

0.60

0.59

1.27

1.23

During fiscal years 2010, 2009 and 2008, 15,186,997, 10,567,217 and 3,957,572 share equivalents attributable
to outstanding stock options and RSUs were excluded from the calculation of diluted net income per share because
the combined exercise price, average unamortized fair value and assumed tax benefits upon exercise of these
options and RSUs were greater than the average market price of the Company’s shares, and therefore their inclusion
would have been anti-dilutive.

Employee equity share options, non-vested shares and similar share-based compensation awards granted by
the Company are treated as potential shares in computing diluted net income per share. Diluted shares outstanding
include the dilutive effect of in-the-money share-based awards which is calculated based on the average share
price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount that the
employee must pay for exercising share-based awards, the amount of compensation cost for future service that the
Company has not yet recognized, and the amount of tax impact that would be recorded in additional paid-in capital
when the award becomes deductible are assumed to be used to repurchase shares. The following table presents
the effect of in-the-money share-based awards treated as potential shares in computing diluted earnings per share
(in thousands except per share amounts):

In-the-money employee share-based awards treated as potential shares . . . .
Percentage of basic weighted average shares outstanding . . . . . . . . . . . . . . . .
Average share price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Year Ended March 31
2009
9,313

2010
6,945

2008
15,881

3.9%

5.2%

8.8%

$16.06

$20.55

$ 28.74

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The following table illustrates the dilution effect of share-based awards granted, assumed and exercised

(in thousands):

Basic weighted average shares outstanding as of March 31 . . . . . . . . . . . . .
Stock options and RSUs granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock options and restricted stock assumed in LifeSize acquisition . . . . . . .
Stock options and RSUs canceled, forfeited, or expired . . . . . . . . . . . . . . . .

Net awards granted and assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Grant dilution(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock options exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise dilution(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31

2010
177,279
3,902
1,078
(1,440)

3,540

2.0%

1,980

1.1%

2009
178,811
4,239
—
(1,163)

3,076

1.7%

2,037

1.1%

2008
181,362
3,891
—
(652)

3,239

1.8%

4,162

2.3%

(1) The percentage of grant dilution is computed based on net awards granted and assumed as a percentage of

basic weighted average shares outstanding.

(2) The percentage of exercise dilution is computed based on options exercised as a percentage of basic weighted

average shares outstanding.

Note 4 — Fair Value Measurements

The Company considers fair value as the exchange price that would be received for an asset or paid to
transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly
transaction between market participants at the measurement date. The Company utilizes the following three-level
fair value hierarchy to establish the priorities of the inputs used to measure fair value:

• Level 1 – Quoted prices in active markets for identical assets or liabilities.

• Level 2 – Observable inputs other than quoted market prices included in Level 1, such as quoted prices for
similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities
in markets that are not active; or other inputs that are observable or can be corroborated by observable
market data.

• Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant
to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow
methodologies and similar techniques that use significant unobservable inputs.

The following table presents the Company’s financial assets and liabilities that were accounted for at fair

value as of March 31, 2010 and 2009, classified by the level within the fair value hierarchy (in thousands):

March 31, 2010

March 31, 2009

Cash and cash equivalents . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . .
Foreign exchange derivative assets . . . . . . . . .
Total assets at fair value . . . . . . . . . . . . . . . . . .
Foreign exchange derivative liabilities . . . . . . .
Total liabilities at fair value . . . . . . . . . . . . . . .

Level 1
$ 319,944
—
599
$320,543
366
$
366
$

Level 2
$ —
—
—
$ —
$ —
$ —

Level 1

Level 3
$ — $ 492,759
—
208
$492,967
1,849
1,849

994
—
$ 994
$ — $
$ — $

—
—

Level 2
Level 3
$ — $ —
1,637
—
$ — $ 1,637
$ — $ —
$ — $ —

Notes 5 and 15 describe the inputs and valuation techniques used to determine fair value.

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Note 5 — Cash and Cash Equivalents and Investment Securities

Cash and cash equivalents consist of bank demand deposits and time deposits. The time deposits have terms

of less than 30 days. Cash and cash equivalents are carried at cost, which is equivalent to fair value.

The Company’s investment securities portfolio as of March 31, 2010 and 2009 consisted of auction rate securities
collateralized by residential and commercial mortgages. The investment securities are classified as available-
for-sale and are reported at estimated fair value, which was determined by estimating values of the underlying
collateral using analogous published indices or by estimating future cash flows, either through discounted cash
flow or option pricing methods, incorporating assumptions of default and other future conditions. Such valuation
methods fall within Level 3 of the fair value hierarchy.

Auction rate securities generally have maturity dates greater than 10 years, with interest rates that typically
reset through an auction every 28 days. All our investment securities as of March 31, 2010 and 2009 have maturity
dates in excess of 10 years. Since August 2007, auctions for these investments have failed. As a result, the Company
will not be able to realize the proceeds, if any, from these investments until a future auction of these investments is
successful or a buyer is found outside of the auction process. Management has determined that sale or realization
of proceeds from the sale of these investment securities is not expected within the Company’s normal operating
cycle of one year, and hence the investment securities were reclassified from current to non-current assets as of
April 1, 2009.

The following table presents the changes in fair value of the Company’s investment securities during fiscal

years 2010 and 2009:

Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Write-down . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010
$ 1,637
(643)
—
$ 994

2009
$ 3,940
(2,727)
424
$ 1,637

The par value of our investment securities portfolio at March 31, 2010 and 2009 was $47.5 million. The write-
down of investments related to other-than-temporary declines in the estimated fair value of these investments and
is recorded in other income (expense), net. The unrealized gain as of March 31, 2009 related to temporary increases
in the fair value and was recorded in other comprehensive income.

Note 6 — Acquisitions

The Company changed the manner in which it accounts for business combinations effective April 1, 2009. For
business combinations occurring after that date, transaction costs incurred in connection with the acquisition are
recognized as an expense rather than included in the cost allocated to the assets acquired and liabilities assumed.
Goodwill recognized as of the acquisition date is measured as the excess of the consideration transferred over the
fair values of the identifiable net assets acquired. Assets and liabilities arising from pre-acquisition contingencies,
if any, are recognized at fair value, if available, or at the Company’s best estimate. Resolution of certain tax
contingencies and adjustments to valuation allowances related to business combinations, which previously were
adjusted to goodwill, are adjusted to income tax expense for all such adjustments after April 1, 2009, regardless
of the date of the original business combinations. Adoption of this change had no impact on previously presented
financial information.

LifeSize

On December 11, 2009, pursuant to a merger agreement signed November 10, 2009, Logitech acquired LifeSize
Communications, Inc., an Austin, Texas-based privately-held company specializing in high definition video

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communication products and services. Logitech expects the acquisition to drive growth in video communication
for the enterprise and small-to-medium business markets by leveraging the two companies’ technology expertise,
including camera design, firewall traversal, video compression and bandwidth management.

The total consideration paid to acquire LifeSize was $382.8 million, not including cash acquired of
$3.7 million. In addition, Logitech incurred $6.6 million in transaction costs, which are included in operating
expenses. Logitech paid $382.3 million in cash to the holders of all outstanding shares of LifeSize capital stock,
all vested options issued by LifeSize, and all outstanding warrants to purchase LifeSize stock. As part of the
acquisition, Logitech assumed all outstanding unvested LifeSize stock options and unvested restricted stock
held by continuing LifeSize employees at December 11, 2009. The assumed options are exercisable for a total
of approximately 1.0 million Logitech shares and the assumed restricted stock was exchanged for 0.1 million
Logitech shares. The stock options and restricted stock continue to have the same terms and conditions as under
LifeSize’s option plan. The fair value attributable to precombination employee services for the stock options
assumed, which is part of the consideration paid to acquire LifeSize, was $0.5 million. The weighted average fair
value of $12.07 per share for the stock options assumed was determined using a Black-Scholes-Merton option-
pricing valuation model with the following weighted-average assumptions: expected term of 2.0 years, expected
volatility of 57%, and risk-free interest rate of 0.7%.

The total cash consideration paid of $382.3 million included $37.0 million deposited into an escrow account
as security for indemnification claims under the merger agreement and $0.5 million deposited in a stockholder
representative expense fund. The escrow fund will be disbursed by the escrow trustee to the former holders of
LifeSize capital stock, vested options and warrants with 50% to be disbursed in December 2010 and the remaining
fifty percent in June 2011, subject in each case to indemnification claims.

In connection with the merger, Logitech also agreed to establish a cash and stock option retention and incentive
plan for certain LifeSize employees, linked to the achievement of LifeSize performance targets. The duration of
the plan’s performance period is two years, from January 1, 2010 to December 31, 2011. The total available cash
incentive is $9.0 million over the two year performance period. In December 2009, options to purchase 850,000
Logitech shares were issued in connection with the retention and incentive plan.

The allocation of total consideration to the assets acquired and liabilities assumed based on the estimated fair

value of LifeSize was as follows (in thousands):

Tangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax asset, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets acquired

Existing technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patents and core technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademark/trade name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Estimated
Life

December 11,
2009
$ 33,635
8,828

4 years
3 years
5 years
5 years
—

30,000
4,500
7,600
31,500
307,241
423,304
(26,985)
(13,505)
$ 382,814

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The deferred tax asset primarily relates to the tax benefit of a net operating loss carryforward, net of the deferred
tax liability related to intangible assets. The existing technology of LifeSize relates to the platform technology used
in LifeSize’s high-definition video conferencing systems. The value of the technology was determined based on the
present value of estimated expected cash flows attributable to the technology, assuming the highest and best use by
a market participant. The patents and core technology represent awarded patents, filed patent applications and core
architectures, trade secrets or processes used in LifeSize’s current and planned future products. Trademark/trade
name relates to the LifeSize brand names. The value of the patents, core technology and trademark/trade name
was estimated by capitalizing the estimated profits saved as a result of acquiring or licensing the asset. Customer
relationships and other relates to the ability to sell existing, in-process, and future versions of the technology and
services to LifeSize’s existing customer base, valued based on projected discounted cash flows generated from
customers in place. The intangible assets acquired are amortized on a straight-line basis over their estimated useful
lives. The goodwill associated with the acquisition is primarily attributable to the opportunities and economies of
scale from combining the operations and technologies of Logitech and LifeSize. This goodwill is not subject to
amortization and is not expected to be deductible for income tax purposes. The debt that Logitech assumed as part
of the acquisition was repaid in full on December 18, 2009.

Unaudited pro forma financial information

The unaudited pro forma financial information in the table below summarizes the combined results of operations
of Logitech and LifeSize during the fiscal years ended March 31, 2010 and 2009 as though the acquisition took place
as of the beginning of each fiscal year. The pro forma financial information also includes certain adjustments such
as amortization expense from acquired intangible assets, share-based compensation expense related to unvested
stock options and restricted stock assumed, depreciation adjustments from alignment of the companies’ policies
related to property, plant and equipment, interest expense related to debt assumed, expense related to retention
bonuses, pre-acquisition transaction costs, and the income tax impact of the pro forma adjustments. The pro forma
financial information presented below (in thousands except per share amounts) is for informational purposes only
and is not indicative of the results of operations that would have been achieved if the acquisition had taken place at
the beginning of the periods presented.

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income per share — basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income per share — diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,023
$
44
$ 0.25
$ 0.25

$2,282
$
88
$ 0.49
$ 0.48

2010

2009

(Unaudited)

TV Compass

On November 27, 2009, Logitech acquired certain assets from TV Compass, Inc., a Chicago, Illinois-based
company providing video software and services for the Web and mobile devices. The acquisition has been treated
as an acquisition of a business and has been accounted for using the purchase method of accounting. The total
consideration paid of $10.0 million was allocated based on estimated fair values to $4.2 million of identifiable
intangible assets, with the balance allocated to goodwill. Fair values were determined by Company management
based on information available at the date of acquisition. The intangible assets acquired are amortized on a straight-
line basis over their estimated useful lives of 6 years. The goodwill results from expected incremental revenue from
the use of the acquired technology in enhancing our products. The goodwill is not subject to amortization and is not
expected to be deductible for income tax purposes. In addition, Logitech incurred $0.3 million in transaction costs,
which are included in operating expenses.

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SightSpeed

In October 2008, the Company acquired SightSpeed Inc., a privately held company providing high-quality
Internet video communications services. The acquisition of SightSpeed provided Logitech with video calling
technology and a software and services development team that is focused on future video calling initiatives to
enable cross-platform video communications.

Total consideration paid was $30.9 million, which includes $0.8 million in transaction costs. Under the terms

of the purchase agreement, the Company acquired all of the outstanding shares of SightSpeed.

The acquisition has been accounted for using the purchase method of accounting. Accordingly, the total
consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their
estimated fair values as of the acquisition date. Fair values were determined by Company management based on
information available at the date of acquisition. The results of operations of SightSpeed were included in Logitech’s
consolidated financial statements from the date of acquisition, and were not material to the Company’s reported
results.

The allocation of total consideration, including transaction costs, to the assets acquired and liabilities assumed

based on the estimated fair value of SightSpeed was as follows (in thousands):

November 3,
2008

Estimated
Life

Tangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax asset, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets acquired

Existing technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patents and core technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademark/trade name . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
In-process research and development . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total consideration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

370
6,622

800
2,700
200
1,200
1,000
18,751

31,643
(756)
$30,887

5 years
5 years
2 years
4.9 years
—
—

The deferred tax asset relates to the tax benefit of a net operating loss carryforward, net of the deferred tax
liability related to intangible assets. The existing technology of SightSpeed relates to internet video communications
services that allow users to make video calls, computer-to-computer voice calls, and calls to regular telephones with
free and prepaid versions. In-process research and development had not reached technological feasibility at the time
of the acquisition and had no further alternative uses, and was expensed immediately to research and development
expense upon consummation of the acquisition. The value of the technology was determined based on the present
value of estimated expected cash flows attributable to the technology. The patents and core technology represent
awarded patents, filed patent applications and core architectures used in SightSpeed’s current and planned future
products. Trademark/trade name relates to the SightSpeed brand names. The value of the patents, core technology
and trademark/trade name was estimated by capitalizing the estimated profits saved as a result of acquiring or
licensing the asset. Customer relationships and other relates to the ability to sell existing, in-process, and future
versions of the technology to SightSpeed’s existing customer base, valued based on projected discounted cash
flows generated from customers in place. The intangible assets acquired are amortized on a straight-line basis over
their estimated useful lives. The goodwill associated with the acquisition is not subject to amortization and is not
expected to be deductible for income tax purposes.

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Ultimate Ears

In August 2008, the Company acquired the Ultimate Ears companies, a privately held group of companies
offering a range of earphones for portable-music enthusiasts as well as a line of custom-fit in-ear monitors for music
professionals. The acquisition is part of the Company’s strategy to expand its portfolio of digital audio products,
providing more options for portable music listening.

Total consideration paid was $34.5 million, which includes $0.7 million in transaction costs. Under the terms
of the purchase agreement, the Company acquired all of the outstanding equity interests of Ultimate Ears for
$33.8 million, including a $6.9 million holdback provision relating to potential indemnification claims, of which
$6.0 million has been disbursed and $0.9 million is recorded as a liability in the accompanying consolidated
financial statements. The holdback provision has been included as part of the purchase price allocation below.

The acquisition has been accounted for using the purchase method of accounting. Accordingly, the total
consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their
estimated fair values as of the acquisition date. Fair values were determined by Company management based
on information available at the date of acquisition. The results of operations of Ultimate Ears were included in
Logitech’s consolidated financial statements from the date of acquisition, and were not material to the Company’s
reported results.

The allocation of total consideration, including transaction costs, to the assets acquired and liabilities assumed

based on the estimated fair value of Ultimate Ears was as follows (in thousands):

Tangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets acquired

Existing technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patents and core technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademark/trade name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liability, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Estimated
Life

4 years
4 years
5 years
5 years
—

August 19,
2008
$ 4,132

5,900
1,900
2,900
2,500
25,254

42,586
(2,845)
(5,235)
$ 34,506

The existing technology of Ultimate Ears relates to the technical components used in the in-ear monitors and
earplugs. The value of the technology was determined based on the present value of estimated expected cash flows
attributable to the technology. The patents and core technology represent awarded patents, filed patent applications
and core architectures used in Ultimate Ears’ current and planned future products. Trademark/trade name relates to
the Ultimate Ears brand names. The value of the patents, core technology and trademark/trade name was estimated
by capitalizing the estimated profits saved as a result of acquiring or licensing the asset. Customer relationships and
other relates to Ultimate Ears’ existing customer base, valued based on projected discounted cash flows generated
from customers in place. The intangible assets acquired are amortized on a straight-line basis over their estimated
useful lives. The goodwill associated with the acquisition is not subject to amortization and is not expected to be
deductible for income tax purposes. The deferred tax liability relates to the acquired intangible assets which are
also not expected to be deductible for income tax purposes.

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WiLife

In November 2007, the Company acquired WiLife, Inc., a privately held company providing PC-based video
cameras for self-monitoring a home or a small business. The acquisition is part of the Company’s strategy to expand
its presence in digital home products.

Total consideration paid, net of cash acquired of $0.1 million, was $22.1 million, which includes $0.5 million
in transaction costs. Under the terms of the purchase agreement, the Company acquired all of the outstanding
shares of WiLife for $21.7 million in cash, plus a possible performance-based payment, payable in the first calendar
quarter of 2011. The performance-based payment is based on net revenues attributed to WiLife during calendar
year 2010. No payment is due if the applicable net revenues total $40.0 million or less. The maximum performance-
based payment is $64.0 million. The total performance-based payment amount, if any, will be recorded in goodwill
and will not be known until the end of calendar year 2010. As of March 31, 2010, no amounts were payable towards
performance-based payments under the WiLife acquisition agreement.

The acquisition has been accounted for using the purchase method of accounting. Accordingly, the total
consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their
estimated fair values as of the acquisition date. Fair values were determined by Company management based
on information available as of the date of acquisition. The results of operations of WiLife were included in
Logitech’s consolidated financial statements from the date of acquisition, and were not material to the Company’s
reported results.

The allocation of total consideration to the assets acquired and liabilities assumed based on the estimated fair

value of WiLife is presented in the following table.

Tangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax asset, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets acquired

Existing technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Patents and core technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademark/trade name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships and other . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Estimated
Life

November 13,
2007
$ 3,432
639

6 years
5 years
5 years
3 years
—

3,000
3,700
1,300
200
15,855

28,126
(6,016)
$ 22,110

The deferred tax asset relates to the tax benefit of a net operating loss carryforward, net of the deferred tax
liability related to intangible assets. The existing technology relates to the video surveillance cameras and software
used in WiLife’s PC-based video security systems. The value of the technology was determined based on the
present value of estimated expected cash flows attributable to the technology. The patents and core technology
represent awarded patents, filed patent applications and core architectures used in WiLife’s current and planned
future products. Trademark/trade name relates to the WiLife brand names. The value of the patents, core technology
and trademark/trade name was estimated by capitalizing the estimated profits saved as a result of acquiring or
licensing the asset. Customer relationships and other relates to WiLife’s existing customer base, valued based on
projected discounted cash flows generated from customers in place. The intangible assets acquired are amortized
on a straight-line basis over their estimated useful lives. The goodwill associated with the acquisition is not subject
to amortization and is not expected to be deductible for income tax purposes.

186

187

Note 7 — Balance Sheet Components

The following provides the components of certain balance sheet amounts (in thousands):

Accounts receivable:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cooperative marketing arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer incentive programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pricing programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inventories:

Raw materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Work-in-process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finished goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other current assets:

Tax and VAT refund receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Property, plant and equipment:

Plant, buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Computer equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Computer software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Less: accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Construction-in-progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other assets:

Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash surrender value of life insurance contracts . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accrued liabilities:

Accrued personnel expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued freight and duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable - current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-retirement post-employment benefit obligations. . . . . . . . . . . . . . . . . . . . . . .
Accrued restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Long-term liabilities:

Income taxes payable - non-current. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Obligation for management deferred compensation . . . . . . . . . . . . . . . . . . . . . . . .
Defined benefit pension plan liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010

2009

$ 349,722
(5,870)
(23,657)
(17,527)
(44,306)
(63,115)
$ 195,247

31,630
86
187,877
$ 219,593

$ 20,305
27,064
11,508
$ 58,877

58,629
112,454
53,576
78,156
302,815
(224,485)
78,330
9,751
3,148
91,229

45,257
11,097
9,576
65,930

51,378
28,052
12,696
8,875
2,761
399
78,175
$ 182,336

$ 116,456
10,307
19,343
13,566
$ 159,672

$ 339,903
(6,705)
(28,705)
(28,567)
(36,454)
(25,543)
$ 213,929

$ 30,959
19
202,489
$ 233,467

$ 17,275
25,546
14,063
$ 56,884

$ 56,211
108,779
49,532
60,259
274,781
(188,371)
86,410
14,708
3,014
$ 104,132

$ 27,718
10,685
5,301
$ 43,704

$ 34,373
21,984
9,048
6,828
4,899
3,794
50,570
$ 131,496

$ 101,463
10,499
19,822
2,744
$ 134,528

T
R
O
P
E
R
l
A
U
N
N
A

186

187

The following table presents the changes in the allowance for doubtful accounts during fiscal years ended

March 31, 2010, 2009 and 2008 (in thousands):

Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bad debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Write-offs net of recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note 8 — Goodwill and Other Intangible Assets

2010
$6,705
(72)
(763)
$5,870

March 31,
2009
$2,497
5,102
(894)
$6,705

2008
$ 3,322
603
(1,428)
$ 2,497

The following table summarizes the activity in the Company’s goodwill account during fiscal years ended

March 31, 2010 and 2009 (in thousands):

Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010
$242,909
313,041
(2,488)
$ 553,462

2009
$194,383
48,526
—
$242,909

Additions to goodwill during fiscal year 2010 primarily related to our acquisitions of LifeSize and TV Compass.
Logitech will maintain discrete financial information for LifeSize and accordingly, the acquired goodwill related to
the LifeSize acquisition will be separately evaluated for impairment. TV Compass’s business was fully integrated
into the Company’s existing operations, and discrete financial information for TV Compass is not maintained.
Accordingly, the acquired goodwill related to TV Compass is evaluated for impairment at the total enterprise level.
The adjustment to goodwill represents an adjustment of the deferred tax asset recognized in connection with the
acquisitions of SightSpeed, Inc. and the Ultimate Ears companies.

Additions to goodwill during fiscal year 2009 were primarily related to our acquisitions of SightSpeed and

Ultimate Ears, as well as a $2.0 million pre-acquisition contingency related to our WiLife acquisition.

The Company has integrated SightSpeed’s, Ultimate Ears’ and WiLife’s businesses into its existing operations,
and discrete financial information for these companies is not maintained. Accordingly, the acquired goodwill is
evaluated for impairment at the total enterprise level. The Company maintains discrete financial information for
3DConnexion and LifeSize and determines impairment of the goodwill for these units acquired at the entity level.

The Company performs its annual goodwill impairment test during its fourth fiscal quarter or more frequently
if events or circumstances indicate that an impairment may have occurred. Based on impairment tests performed,
there has been no impairment of the Company’s goodwill to date.

188

189

The Company’s acquired other intangible assets subject to amortization were as follows (in thousands):

Trademark/tradename. . . . . .
Technology . . . . . . . . . . . . . .
Customer contracts . . . . . . . .

Gross Carrying
Amount
$ 32,051
87,968
38,517
$158,536

March 31, 2010
Accumulated
Amortization
$(20,421)
(36,033)
(6,686)
$(63,140)

Net Carrying
Amount
$ 11,630
51,935
31,831
$95,396

Gross Carrying
Amount
$ 24,398
49,268
7,018
$ 80,684

March 31, 2009
Accumulated
Amortization
$ (18,559)
(26,598)
(3,418)
$ (48,575)

Net Carrying
Amount
$ 5,839
22,670
3,600
$ 32,109

During fiscal year 2010, changes in the gross carrying value of other intangible assets related primarily to our
acquisitions of LifeSize and TV Compass. During fiscal year 2009, changes in the gross carrying amount of other
intangible assets related to our acquisitions of SightSpeed and Ultimate Ears, patent rights acquired pursuant to a
patent settlement agreement, and foreign currency translation adjustments.

For fiscal years 2010, 2009 and 2008, amortization expense for other intangible assets was $14.5 million,
$8.2 million and $5.4 million. The Company expects that annual amortization expense for the fiscal years ending
2011, 2012, 2013, 2014 and 2015 will be $27.1 million, $24.7 million, $21.6 million, $15.5 million and $6.1 million,
and $0.4 million thereafter.

Note 9 — Financing Arrangements

The Company had several uncommitted, unsecured bank lines of credit aggregating $151.9 million at
March 31, 2010. There are no financial covenants under these lines of credit with which the Company must comply.
At March 31, 2010, the Company had no outstanding borrowings under these lines of credit.

Note 10 — Shareholders’ Equity

Share Capital

The Company’s nominal share capital is CHF 47,901,655, consisting of 191,606,620 shares with a par value of

CHF 0.25 each, all of which were issued and 16,435,528 of which were held in treasury as of March 31, 2010.

In September 2008, the Company’s shareholders approved an amendment to the Company’s Articles of
Incorporation which decreased the conditional capital reserved for potential issuance on the exercise of rights
granted under the Company’s employee equity incentive plans from 60,661,860 shares to 25,000,000 shares. The
Board of Directors determined that the reduced amount of conditional capital, together with a portion of its shares
held in treasury, was adequate to cover employee equity incentives without impacting the ability of the Company
to maintain employee equity incentive plans.

In September 2008, the shareholders also approved the creation of conditional capital representing the issuance
of up to 25,000,000 shares to cover any conversion rights under a future convertible bond issuance. This conditional
capital was created in order to provide financing flexibility for future expansion, investments or acquisitions.

Dividends

Pursuant to Swiss corporate law, Logitech International S.A. may only pay dividends in Swiss francs. The
payment of dividends is limited to certain amounts of unappropriated retained earnings (CHF 349.3 million or
$329.8 million based on exchange rates at March 31, 2010) and is subject to shareholder approval.

T
R
O
P
E
R
l
A
U
N
N
A

188

189

Legal Reserves

Under Swiss corporate law, a minimum of 5% of the Company’s annual net income must be retained in a legal
reserve until this legal reserve equals 20% of the Company’s issued and outstanding aggregate par value per share
capital. These legal reserves represent an appropriation of retained earnings that are not available for distribution
and totaled $9.0 million at March 31, 2010 (based on exchange rates at March 31, 2010).

Additionally, under Swiss corporate law, the Company is required to establish a reserve equal to the amount
of treasury shares repurchased at year-end. The reserve for treasury shares, which is not available for distribution,
totaled $396.3 million at March 31, 2010.

Share Repurchases

During fiscal years 2010, 2009 and 2008, the Company had the following approved share buyback programs

in place (in thousands):

Date of Announcement
June 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approved
Buyback
Amount
$250,000
$250,000

Expiration
Date
June 2010
June 2009

Completion Date
March 2010
February 2008

Amount
Remaining
$—
$—

The Company repurchased shares under these buyback programs as follows (in thousands):

Amounts Repurchased During Year ended March 31,(1)

Date of Announcement
June 2007 . . . . . . . . . . . . . . . . . . .
May 2006 . . . . . . . . . . . . . . . . . . .

Program to date
Amount
Shares
11,978 $250,555
8,760
20,738 $501,523

2010

Amount
$126,301 2,803

2009
Shares Amount
$78,870

Shares
7,425

250,968 —

— —

7,425

$126,301 2,803

$78,870

Shares
1,750
— 6,034
7,784

2008

Amount
$ 45,384
174,358
$ 219,742

(1) Represents the amount in U.S. dollars, calculated based on exchange rates on the repurchase dates.

In September 2008, the Company’s Board of Directors approved a share buyback program which authorizes
the Company to invest up to $250 million to purchase its own shares. The Company has not started repurchases
under the September 2008 program.

Note 11 — Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss were as follows (in thousands):

Cumulative translation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension liability adjustments, net of tax of $936 and $990 . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred hedging gains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010
$ (63,646)
(10,813)
424
1,394
$ (72,641)

2009
$ (66,399)
(15,122)
424
216
$ (80,881)

190

191

Note 12 — Restructuring

In January 2009, Logitech initiated a restructuring plan (“2009 Restructuring Plan”) in order to reduce operating
expenses and improve financial results in response to deteriorating global economic conditions. We completed a
majority of the restructuring activity during the three months ended March 31, 2009. As part of this restructuring
plan, the Company reduced its salaried workforce by approximately 500 employees. All charges related to the 2009
Restructuring Plan are presented as restructuring charges in our consolidated statements of income.

The following table summarizes restructuring related activities during fiscal years 2010 and 2009 (in

thousands):

Balance at March 31, 2008 . . . . . . . . . . . . .
Charges. . . . . . . . . . . . . . . . . . . . . . . . . .
Cash payments . . . . . . . . . . . . . . . . . . . .
Charges against assets . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . .
Balance at March 31, 2009 . . . . . . . . . . . . .
Charges. . . . . . . . . . . . . . . . . . . . . . . . . .
Cash payments . . . . . . . . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign exchange . . . . . . . . . . . . . . . . . .
Balance at March 31, 2010 . . . . . . . . . . . . . .

Total

—
20,547
(12,764)
(556)
(3,485)
52
$ 3,794
1,784
(5,194)
(86)
101
399

Termination
Benefits
—
16,427
(12,579)
—
(121)
52
$ 3,779
1,318
(5,098)
53
106
158

Asset
Impairments
$ —
556
—
(556)
—
—
$ —
—
—
—
—
$ —

Contract
Termination
Costs
$ —
200
(185)
—
—
—
$ 15
419
(96)
(4)
—
$ 334

Other
$ —
3,364
—
—
(3,364)
—
$ —
47
—
(135)
(5)
(93)

Termination benefits incurred pursuant to the 2009 Restructuring Plan were calculated based on regional
benefit practices and local statutory requirements. Asset impairments were recorded to write down fixed assets that
were not placed in service due to the abandonment of the related projects. Contract termination costs related to exit
costs associated with the closure of existing facilities. Other charges primarily consisted of pension curtailment and
settlement costs of $3.4 million which are reflected in other charges in the preceding table, as the corresponding
balance sheet amounts were reflected as a reduction of pension assets. We completed the 2009 Restructuring Plan
in fiscal 2010.

Note 13 — Employee Benefit Plans

Employee Share Purchase Plans and Stock Incentive Plans

As of March 31, 2010, the Company offers the 2006 Employee Share Purchase Plan (Non-U.S.) (“2006 ESPP”),
the 1996 Employee Share Purchase Plan (U.S.) (“1996 ESPP”), the 2006 Stock Incentive Plan, and the LifeSize
Communications, Inc. 2003 Stock Option Plan. Share-based awards granted to employees and directors include
stock options, RSUs granted under the 2006 Stock Incentive Plan and share purchase rights granted under the
2006 ESPP and 1996 ESPP. Shares issued to employees as a result of purchases or exercises under these plans are
generally issued from shares held in treasury. As part of the LifeSize acquisition, Logitech assumed all outstanding
unvested LifeSize stock options and unvested restricted stock held by continuing LifeSize employees at December
11, 2009. The stock options and restricted stock continue to have the same terms and conditions as under LifeSize’s
option plan.

T
R
O
P
E
R
l
A
U
N
N
A

190

191

Under the 1996 ESPP and 2006 ESPP plans, eligible employees may purchase shares at the lower of 85% of the
fair market value at the beginning or the end of each six-month offering period. Subject to continued participation
in these plans, purchase agreements are automatically executed at the end of each offering period. A total of
16,000,000 shares have been reserved for issuance under both the 1996 and 2006 ESPP plans. As of March 31, 2010,
a total of 2,772,075 shares were available for issuance under these plans.

On June 16, 2006, Logitech’s shareholders approved adoption of the 2006 Stock Incentive Plan (the “2006
Plan”) with an expiration date of June 16, 2016. The 2006 Plan provides for the grant to eligible employees and non-
employee directors of stock options, stock appreciation rights, restricted stock and restricted stock units, which are
bookkeeping entries reflecting the equivalent of shares. Stock options granted under the 2006 Plan will generally
vest over three years for non-executive Directors and over four years for employees. All stock options under this
plan will have terms not exceeding ten years and will be issued at exercise prices not less than the fair market value
on the date of grant. Awards under the 2006 Plan may be conditioned on continued employment, the passage of time
or the satisfaction of performance vesting criteria. An aggregate of 17,500,000 shares was reserved for issuance
under the 2006 Plan. As of March 31, 2010, a total of 5,664,605 shares were available for issuance under this plan.

The Company assumed the LifeSize Communications, Inc. 2003 Stock Option Plan as part of its acquisition
of LifeSize in December 2009. Under this plan, the Company may issue options to purchase Logitech shares to
employees of LifeSize. As of March 31, 2010, a total of 215,813 shares were available for issuance under this plan.

The following table summarizes the share-based compensation expense and related tax benefit recognized for

fiscal years 2010 and 2009 (in thousands).

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense included in gross profit . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended
March 31,

2010
$ 3,073
3,073

2009
$ 3,163
3,163

Operating expenses:

Marketing and selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9,201
4,902
8,631

7,989
4,488
8,863

Share-based compensation expense included in

operating expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22,734

21,340

Total share-based compensation expense related to employee

stock options, RSUs and employee stock purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense related to employee stock

25,807
5,768

24,503
3,102

options, RSUs and employee stock purchases, net of tax . . . . . . . . . . . . . . . . . . . . . . . .

$ 20,039

$ 21,401

As of March 31, 2010 and 2009, $0.9 million and $0.8 million of share-based compensation cost was capitalized
to inventory. As of March 31, 2010, total compensation cost related to non-vested stock options not yet recognized
was $53.8 million, which is expected to be recognized over the next 31 months on a weighted-average basis.

192

193

The fair value of employee stock options granted and shares purchased under the Company’s employee
purchase plans was estimated using the Black-Scholes-Merton option-pricing valuation model applying the
following assumptions and values:

Dividend yield . . . . . . . . . . . . . . .
Expected life . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . .
Risk-free interest rate . . . . . . . . .

2010

2009
Purchase Plans
0%

Year ended March 31,
2008

2010

2009
Stock Option Plans

2008

6 months

3.3 years

3.7 years

3.8 years

59%
0.19%

63%
1.23%

38%
4.23%

47%
1.64%

36%
2.40%

33%
4.01%

The dividend yield assumption is based on the Company’s history and future expectations of dividend payouts.

The Company has not paid dividends since 1996.

The expected option life represents the weighted-average period the stock options or purchase offerings are
expected to remain outstanding. The expected life is based on historical settlement rates, which the Company
believes are most representative of future exercise and post-vesting termination behaviors.

Expected share price volatility is based on historical volatility using daily prices over the term of past options
or purchase offerings. The Company considers historical share price volatility as most representative of future
volatility. The risk-free interest rate assumptions are based upon the implied yield of U.S. Treasury zero-coupon
issues appropriate for the term of the Company’s stock options or purchase offerings.

The Company estimates forfeitures at the time of grant and revises those estimates in subsequent periods
if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option
forfeitures and records share-based compensation expense only for those awards that are expected to vest.

The following table represents the weighted average grant-date fair values of options granted and the expected

forfeiture rates:

Year ended March 31,

Weighted average grant-date fair value of options granted . . . $4.23
Expected forfeitures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2010

2009
Purchase Plans
$5.46

2008

2010

$7.63

$6.66

2008

2009
Stock Option Plans
$6.25

$9.14

A summary of activity under the share-based compensation plans is as follows (in thousands, except per share

data; exercise prices are weighted averages):

Outstanding, beginning of year . . . . . . . . . . . . . .
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assumed in LifeSize acquisition . . . . . . . . . . . . .
Exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled or expired . . . . . . . . . . . . . . . . . . . . . . .
Outstanding, end of year. . . . . . . . . . . . . . . . . . . .

2010

Year ended March 31,
2009

2008

Number
18,991
3,902
1,078
(1,980)
(1,440)
20,551

Exercise
Price
$ 18
$ 14
$ 5
$ 8
$ 23
$ 17

Number
17,952
4,239
—
(2,037)
(1,163)
18,991

Exercise
Price
$ 17
$ 21
$ —
$ 9
$ 24
$ 18

Number
18,876
3,890
—
(4,162)
(652)
17,952

Exercise
Price
$ 12
$ 30
$ —
$ 9
$ 21
$ 17

Exercisable, end of year . . . . . . . . . . . . . . . . . . . .

11,303

$ 17

10,981

$ 14

9,934

$ 12

T
R
O
P
E
R
l
A
U
N
N
A

192

193

The total pretax intrinsic value of options exercised during the fiscal years ended March 31, 2010, 2009 and
2008 was $15.0 million, $33.2 million and $84.9 million and the tax benefit realized for the tax deduction from
options exercised during those periods was $3.9 million, $8.5 million and $22.5 million. The total fair value of
options vested as of March 31, 2010, 2009 and 2008 was $66.4 million, $57.7 million and $42.9 million.

The following table summarizes significant ranges of outstanding and exercisable options as of March 31, 2010

(in thousands except per share data; exercise prices and contractual lives are weighted averages):

Options Outstanding

Options Exercisable

Range of Exercise
Prices
$ 1.00 —$11.45 . . . . .
$ 11.46 —$16.35 . . . . .
$ 16.36 —$23.35 . . . . .
$23.36 —$50.00 . . . . .
$ 1.00 —$50.00 . . . . .

Number
5,910
5,546
5,455
3,640
20,551

Exercise
Price
$ 8
$ 14
$ 21
$ 29
$ 17

Contractual
Life (years)
4.6
7.6
7.2
7.4
6.6

Aggregate

Intrinsic Value Number
4,397
1,948
3,083
1,875
11,303

$ 51,527
11,508
—
—
$ 63,035

Exercise
Price
$ 9
$ 14
$ 21
$ 29
$ 17

Contractual
Life (years)
3.2
4.5
6.3
7.3
5.0

Aggregate
Intrinsic Value
$ 31,656
4,827
—
—
$ 36,483

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on options
with an exercise price less than the Company’s closing price of $16.34 at March 31, 2010, which would have been
received by the option holders had these option holders exercised their options as of that date. The total number of
fully vested in-the-money options exercisable as of March 31, 2010 was 6,195,058. As of March 31, 2010, 9,247,646
options were unvested, of which 8,385,765 are expected to vest, based on an estimated forfeiture rate of 9%.

During fiscal year 2010, the Company granted 266,560 time-based RSUs to employees and board members
pursuant to the 2006 Stock Incentive Plan. These RSUs had a weighted average grant date fair value of $14.83
per unit. The time-based RSUs granted to employees vest in four equal annual installments on the grant date
anniversary. The time-based RSUs granted to non-executive board members vest in one annual installment on the
grant date anniversary. The Company estimates the fair value of these RSUs based on the share market price on
the date of grant. Compensation expense related to time-based RSUs is recognized over the vesting period and is
included in the total share-based compensation expense disclosed above. As of March 31, 2010, total compensation
cost related to time-based RSUs not yet recognized was $2.2 million, which is expected to be recognized over the
next 39 months.

During fiscal years 2010 and 2009, the Company granted 115,000 and 93,750 RSUs to certain senior executives
pursuant to the 2006 Stock Incentive Plan. These RSUs had a grant date fair value of $18.18 and $27.90 per unit.
The RSUs vest at the end of two years from the grant date upon meeting certain share price performance criteria
measured against market conditions. Compensation expense related to these RSUs will be recognized over the
two year vesting period and is included in the total share-based compensation expense disclosed above. As of
March 31, 2010, total compensation cost not yet recognized related to these RSUs was $1.9 million, which is
expected to be recognized over the next 15 months.

The fair value of these RSUs was estimated using the Monte-Carlo simulation model applying the following

assumptions:

Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FY 2010
Grants

FY 2009
Grants

2 years

58%
1.11%

41%
1.82%

194

195

The dividend yield assumption is based on the Company’s history and future expectations of dividend payouts.
The expected life of these RSUs is the service period at the end of which the RSUs will vest if the performance
conditions are satisfied. The volatility assumption is based on the actual volatility of Logitech’s daily closing share
price over a look-back period of two years. The risk free interest rate is derived from the yield on US Treasury
Bonds for a two year term.

Defined Contribution Plans

Certain of the Company’s subsidiaries have defined contribution employee benefit plans covering all or
a portion of their employees. Contributions to these plans are discretionary for certain plans and are based on
specified or statutory requirements for others. The charges to expense for these plans for fiscal years 2010, 2009
and 2008, were $8.2 million, $8.3 million and $7.0 million.

Defined Benefit Plans

Certain of the Company’s subsidiaries sponsor defined benefit pension plans or non-retirement post-
employment benefits covering substantially all of their employees. Benefits are provided based on employees’
years of service and earnings, or in accordance with applicable employee benefit regulations. The Company’s
practice is to fund amounts sufficient to meet the requirements set forth in the applicable employee benefit and tax
regulations.

The Company recognizes the underfunded or overfunded status of defined benefit pension plans and non-
retirement post-employment benefit obligations as an asset or liability in its statement of financial position, and
recognizes changes in the funded status of defined benefit pension plans in the year in which the changes occur
through accumulated other comprehensive loss, which is a component of stockholders’ equity. Each plan’s assets
and benefit obligations are measured as of March 31.

In fiscal year 2009, the Company added a defined benefit pension plan in Japan, and amended the existing
plan in Switzerland. In addition, the restructuring which occurred in the fourth quarter of fiscal year 2009 resulted
in a curtailment of benefits and a settlement transaction related to the terminated employees who participated in
the existing defined benefit pension plans.

The net periodic benefit cost for fiscal years 2010 and 2009 was as follows (in thousands):

Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2009
2010
$ 2,814
$ 3,983
1,520
1,430
(1,488)
(1,200)
5
4
—
138
1,239
232
$ 3,083
$ 5,594

Additional benefit costs of $3.4 million related to the restructuring were recognized in restructuring expenses

in fiscal year 2009.

T
R
O
P
E
R
l
A
U
N
N
A

194

195

The changes in projected benefit obligations for fiscal years 2010 and 2009 were as follows (in thousands):

Projected benefit obligation, beginning of year . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participant contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial (gain) loss due to assumption changes . . . . . . . . . . . . . . . . . . . . .
Actuarial loss due to plan experience . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement/curtailment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Initial adoption of Japanese plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative expense paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . .
Projected benefit obligation, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010
$ 48,135
3,983
1,430
1,848
(994)
916
(1,037)
—
—
—
(177)
3,427
$ 57,531

2009
$ 51,632
2,814
1,520
1,656
3,828
776
(1,413)
2,590
(9,503)
431
(183)
(6,013)
$ 48,135

The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2010 and 2009 was

$46.3 million and $39.0 million.

The following table presents the changes in the fair value of defined benefit pension plan assets for fiscal

years 2010 and 2009 (in thousands):

Fair value of plan assets, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participant contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Initial adoption of Japanese plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010
$ 23,415
5,267
4,137
1,848
(864)
—
—
(177)
1,801
$ 35,427

2009
$ 35,059
(4,928)
3,531
1,656
(1,413)
(6,580)
244
(183)
(3,971)
$ 23,415

The defined benefit pension plans have the following asset allocations. Investment strategies and allocation

decisions are determined by the applicable governmental regulatory agency.

Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010
34.8%
43.6%
10.7%
10.9%
100.0%

2009
24.4%
53.2%
5.3%
17.1%
100.0%

196

197

The funded status of the defined benefit pension plans is the fair value of plan assets as determined by the
governmental regulatory agency less benefit obligations. The funded status of the non-retirement post-employment
benefits is the fair value of the benefit obligations. Projected benefit obligations exceeded plan assets for all plans
by $22.1 million and $24.7 million as of March 31, 2010 and 2009. Amounts recognized on the balance sheet for the
plans were as follows (in thousands):

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010

936
(2,761)
(19,343)
$ (21,168)

2009

990
(4,899)
(19,822)
$ (23,731)

Amounts recognized in other comprehensive income related to defined benefit pension plans were as follows

(in thousands):

Net prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss, net of tax . . . . . . . . . . . . . . . . . . .

March 31,

2010
$ 2,075
9,641
33
11,749
(936)
$ 10,813

2009
$ 2,077
14,000
35
16,112
(990)
$ 15,122

Changes in accumulated other comprehensive loss related to the defined benefit pension plans were as follows

(in thousands):

Accumulated other comprehensive loss, beginning of year . . . . . . . . . . . .
Transition obligation recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior service cost recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement/curtailment loss recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior service cost occurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Gain) loss occurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss, end of year . . . . . . . . . . . . . . . . . .

March 31,

2010
$ 15,122
(4)
(120)
(1,276)
—
—
(4,143)
122
1,112
$ 10,813

2009
$ 9,067
(5)
—
(415)
(6,225)
2,443
10,812
(182)
(373)
$ 15,122

T
R
O
P
E
R
l
A
U
N
N
A

196

197

The following table presents the amounts included in accumulated other comprehensive loss as of
March 31, 2010, which are expected to be recognized as a component of net periodic benefit cost in fiscal year
2010 (in thousands):

Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5
142
362
$ 509

The Company reassesses its benefit plan assumptions on a regular basis. The actuarial assumptions for the

pension plans for fiscal years 2010 and 2009 are as follows:

2010

2009

Discount rate . . . . . . . . . . . . . . . . .
Estimated rate of

Benefit Obligation
2.00% to 3.25% 2.00% to 3.00% 2.00% to 3.00% 2.50% to 3.50%

Benefit Obligation

Periodic Cost

compensation increase . . . . . .

2.50% to 5.00% 2.50% to 5.00% 2.50% to 4.00% 2.50% to 4.25%

Expected average rate of

return on plan assets . . . . . . . .

1.00% to 4.75% 1.00% to 4.25% 1.00% to 4.25% 2.75% to 4.75%

The discount rate is estimated based on corporate bond yields or securities of similar quality in the respective
country, with a duration approximating the period over which the benefit obligations are expected to be paid. The
Company bases the compensation increase assumptions on historical experience and future expectations. The
expected average rate of return for the Company’s defined benefit pension plans represents the average rate of
return expected to be earned on plan assets over the period that the benefit obligations are expected to be paid,
based on government bond notes in the respective country, adjusted for corporate risk premiums as appropriate.

The following table reflects the benefit payments that the Company expects the plans to pay in the periods

noted (in thousands):

Year ending March 31,

2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3,164
3,241
3,264
3,257
3,240
16,098
$32,264

The Company expects to contribute approximately $5.9 million to its defined benefit pension plans during

fiscal year 2011.

Deferred Compensation Plan

One of the Company’s subsidiaries offers a management deferred compensation plan which permits eligible
employees to make 100%-vested salary and incentive compensation deferrals within established limits, which
are invested in Company-owned life insurance contracts held in a Rabbi Trust. The Company does not make
contributions to the plan. The cash surrender value of the insurance contracts was approximately $10.4 million at
March 31, 2010 and 2009 and trust cash balances were $0.7 million and $0.3 million at March 31, 2010 and 2009.
The fair value of the plan’s assets was included in other assets in the statements of financial position. Expenses
and gains or losses related to the insurance contracts are included in other income (expense), net and have not been
significant to date. The unsecured obligation to pay the compensation deferred, adjusted to reflect the positive

198

199

or negative performance of investment measurement options selected by each participant, was approximately
$10.3 million and $10.5 million at March 31, 2010 and 2009 and was included in other liabilities. The additional
compensation expenses related to investment performance have not been significant to date.

Note 14 — Income Taxes

The Company is incorporated in Switzerland but operates in various countries with differing tax laws and
rates. Further, a portion of the Company’s income before taxes and the provision for income taxes are generated
outside of Switzerland.

Income before income taxes for the fiscal years ended March 31, 2010, 2009 and 2008 is summarized as

follows (in thousands):

Income before income taxes:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$13,352
70,271

$ 40,717
86,076

$ 145,403
117,411

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 83,623

$ 126,793

$ 262,814

Year ended March 31,
2009

2008

2010

The provision for income taxes is summarized as follows (in thousands):

Year ended March 31,
2009

2010

2008

Current:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,463
22,279

53
32,274

$ 2,509
31,055

Deferred:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—
(5,076)

(36)
(12,530)

(75)
(1,701)

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 18,666

$ 19,761

$ 31,788

The difference between the provision for income taxes and the expected tax provision at the statutory income

tax rate is reconciled below (in thousands):

Expected tax provision at statutory income tax rates . . . . . . . .
Income taxes at different rates . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development tax credits . . . . . . . . . . . . . . . . . . . .
Unrealized investment income . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transaction costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2009

2010

2008

$ 7,108
10,473
(1,628)
(428)
713
1,257
1,171

$ 10,777
9,370
(2,524)
1,004
618
—
516

$ 22,339
12,245
(1,572)
(248)
423
—
(1,399)

Total provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . .

$18,666

$ 19,761

$ 31,788

T
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A
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N
N
A

198

199

The Company has negotiated a tax holiday on certain earnings in China which is effective from January 2006
through December 2010. The tax holiday represents a tax exemption aimed to attract foreign technological
investment in China. The tax holiday decreased income tax expense by approximately $2.4 million and $4.0
million for fiscal years 2010 and 2009. The benefit of the tax holiday on net income per share (diluted) was
approximately $0.01 and $0.02 in fiscal years 2010 and 2009.

The U.S. Federal research tax credit expired as of December 31, 2009. The U.S. House of Representatives in
December 2009 and the U.S. Senate in March 2010 passed different draft legislation which would extend the tax
credit for an additional year, however the extension has not yet passed into law as of March 31, 2010. Accordingly,
the Company’s income tax provision for fiscal year 2010 includes a $0.9 million tax benefit for federal research tax
credit calculated through December 31, 2010.

The U.S. state of California has enacted legislation affecting the methodology which must be used by
corporate taxpayers to apportion income to California. These changes will become effective for our fiscal year
ending March 31, 2012. Although the Company has significant operations in California, we believe these changes
will not have a material impact on our results of operations or financial condition.

Deferred income tax assets and liabilities consist of the following (in thousands):

Deferred tax assets:

Net operating loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax credit carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010

2009

$ 40,878
3,367
35,346
11,473
17,438

108,502

$ 8,781
—
35,610
8,100
11,983

64,474

Deferred tax liabilities:

Acquired intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(37,264)
(37,264)

(11,462)
(11,462)

Net deferred tax assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 71,238

$ 53,012

The current and deferred tax provision is calculated based on estimates and assumptions that could differ from
the actual results reflected in income tax returns filed. Adjustments for differences between the tax provisions and
tax returns are recorded when identified, which is generally in the third or fourth quarter of the subsequent year.

Management regularly assesses the ability to realize deferred tax assets recorded in the Company’s entities
based upon the weight of available evidence, including such factors as recent earnings history and expected future
taxable income. In the event that future taxable income is below management’s estimates or is generated in tax
jurisdictions different than projected, the Company could be required to establish a valuation allowance for deferred
tax assets. This would result in an increase in the Company’s effective tax rate.

Deferred tax assets relating to tax benefits of employee stock option grants and RSUs have been reduced to
reflect exercises in fiscal years 2010 and 2009. Some exercises resulted in tax deductions in excess of previously
recorded benefits based on the option value at the time of grant (“windfalls”). Although these additional tax
benefits are reflected in net operating loss carryforwards, the additional tax benefit associated with the windfall
is not recorded until the deduction reduces cash taxes payable. During fiscal years 2010 and 2009, the Company
recorded a credit to equity of $0.3 million and $15.3 million.

200

201

As of March 31, 2010, the Company had foreign net operating loss and tax credit carryforwards for income tax
purposes of $332.4 million and $22.3 million. Approximately $168.1 million of the net operating loss carryforwards
and $20.2 million of the tax credit carryforwards, if realized, will be credited to equity since they have not met the
applicable realization criteria. Unused net operating loss carryforwards will expire at various dates in fiscal years
2014 to 2031, and the tax credit carryforwards will begin to expire in fiscal year 2012.

Swiss income taxes and non-Swiss withholding taxes associated with the repatriation of earnings or for other
temporary differences related to investments in non-Swiss subsidiaries have not been provided for, as the Company
intends to reinvest the earnings of such subsidiaries indefinitely or the Company has concluded that no additional tax
liability would arise on the distribution of such earnings. If these earnings were distributed to Switzerland in the form
of dividends or otherwise, or if the shares of the relevant non-Swiss subsidiaries were sold or otherwise transferred,
the Company may be subject to additional Swiss income taxes and non-Swiss withholding taxes. Determination of the
amount of unrecognized deferred income tax liability related to these earnings is not practicable.

The Company follows a two-step approach to recognizing and measuring uncertain tax positions. The first
step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates
that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or
litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than
50% likely of being realized upon ultimate settlement.

As of March 31, 2010, the total amount of unrecognized tax benefits was $125.2, of which $101.4 million
would affect the effective income tax rate if realized. The Company classified $2.4 million of unrecognized tax
benefits as current income taxes payable as the Company anticipates payment within the next 12 months. The
remainder of the unrecognized tax benefits is classified as non-current income taxes payable.

The aggregate changes in gross unrecognized tax benefits were as follow (in thousands):

Beginning balance as of April 1, 2007 (date of adoption) . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 82,435

Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Decreases in balances related to tax positions taken during prior periods . . . . . . . . . . . . .

Increases in balances related to tax positions taken during the current period . . . . . . . . . .

(1,202)

(6,471)

17,885

Balance as of March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 92,647

Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(1,978)

Decreases in balances related to tax positions taken during prior periods . . . . . . . . . . . . .

Increases in balances related to tax positions taken during the current period . . . . . . . . . .

—

6,958

Balance as of March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 97,627

Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Decreases in balances related to tax positions taken during prior periods . . . . . . . . . . . . .

Increases in balances related to tax positions taken during the prior period . . . . . . . . . . . .

Increases in balances related to tax positions taken during the current period . . . . . . . . . .

(3,667)

(229)

2,690

17,207

Balance as of March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$113,628

The Company continues to recognize interest and penalties related to unrecognized tax positions in income
tax expense. The Company recognized $1.9 million, $1.8 million and $1.6 million in interest and penalties in income
tax expense during fiscal years 2010, 2009 and 2008. As of March 31, 2010, 2009 and 2008, the Company had
approximately $12.5 million, $10.7 million and $8.8 million of accrued interest and penalties related to uncertain
tax positions.

T
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U
N
N
A

200

201

The Company files Swiss and foreign tax returns. For all these tax returns, the Company is generally not
subject to tax examinations for years prior to 1999. In fiscal year 2009, the U.S. Internal Revenue Service initiated
an examination of the Company’s U.S. subsidiary for fiscal year 2006. During the third quarter of fiscal year 2010,
the Internal Revenue Service expanded its examination to include fiscal year 2007. At this time it is not possible to
estimate the potential impact that the examination may have on income tax expense. The Company is also under
examination in other foreign jurisdictions.

Although the Company has adequately provided for uncertain tax positions, the provisions on these positions
may change as revised estimates are made or the underlying matters are settled or otherwise resolved. Within the
next 12 months, the Company anticipates that it is reasonably possible that unrecognized tax benefits may decrease
due to the resolution of income tax audits with foreign governments. However, an estimate of such decreases
cannot reasonably be made as of March 31, 2010.

Note 15 — Derivative Financial Instruments – Foreign Exchange Hedging

Cash Flow Hedges

The Company enters into foreign exchange forward contracts to hedge against exposure to changes in foreign
currency exchange rates related to its subsidiaries’ forecasted inventory purchases. The primary risk managed
by using derivative instruments is the foreign currency exchange rate risk. The Company has designated these
derivatives as cash flow hedges. Logitech does not use derivative financial instruments for trading or speculative
purposes. These hedging contracts generally mature within six months, and are denominated in the same currency
as the underlying transactions. Gains and losses in the fair value of the effective portion of the hedges are deferred as
a component of accumulated other comprehensive loss until the hedged inventory purchases are sold, at which time
the gains or losses are reclassified to cost of goods sold. The Company assesses the effectiveness of the hedges by
comparing changes in the spot rate of the currency underlying the forward contract with changes in the spot rate of
the currency in which the forecasted transaction will be consummated. If the underlying transaction being hedged
fails to occur or if a portion of the hedge does not generate offsetting changes in the foreign currency exposure of
forecasted inventory purchases, the Company immediately recognizes the gain or loss on the associated financial
instrument in other income (expense). Such losses were immaterial during the fiscal years ended March 31, 2010
and 2009. The notional amounts of foreign exchange forward contracts outstanding related to forecasted inventory
purchases were $46.2 million (34.3 million euros) and $21.9 million (17.4 million euros) at March 31, 2010 and
2009. The notional amount represents the future cash flows under contracts to purchase foreign currencies.

Other Derivatives

The Company also enters into foreign exchange forward contracts to reduce the short-term effects of foreign
currency fluctuations on certain foreign currency receivables or payables. These forward contracts generally mature
within one to three months. The Company may also enter into foreign exchange swap contracts to economically
extend the terms of its foreign exchange forward contracts. The primary risk managed by using forward and swap
contracts is the foreign currency exchange rate risk. The gains or losses on foreign exchange forward contracts are
recognized in earnings based on the changes in fair value.

The notional amounts of foreign exchange forward contracts outstanding at March 31, 2010 and 2009 relating
to foreign currency receivables or payables were $15.1 million and $8.0 million. Open forward contracts as of
March 31, 2010 and 2009 consisted of contracts in British pounds to purchase euros at a future date at a predetermined
exchange rate. The notional amounts of foreign exchange swap contracts outstanding at March 31, 2010 and 2009
were $38.9 million and $20.2 million. Swap contracts outstanding at March 31, 2010 consisted of contracts in
British pounds, Japanese yen, Mexican pesos and Canadian dollars. Swap contracts outstanding at March 31, 2009
consisted of contracts in Japanese yen, Mexican pesos and British pounds.

The fair value of all our foreign exchange forward contracts and foreign exchange swap contracts is determined
based on quoted foreign exchange forward rates. Quoted foreign exchange forward rates are observable inputs that
are classified as Level 1 within the fair value hierarchy.

202

203

The following table presents the fair values of the Company’s derivative instruments and their locations on

the Balance Sheet as of March 31, 2010 and 2009 (in thousands):

Derivatives designated as hedging instruments:

Asset Derivatives

Liability Derivatives

Fair Value

Location

2010

2009

Location

2010

2009

Cash Flow Hedges . . . . . . . . . . . . . . . . . . . Other assets $ 136 $ — Other liabilities $ 10 $1,257
1,257

136

—

Derivatives not designated as hedging

instruments:

Foreign Exchange

Forward Contracts . . . . . . . . . . . . . . . . Other assets

208 Other liabilities —

Foreign Exchange

Swap Contracts . . . . . . . . . . . . . . . . . . . Other assets

452

463

— Other liabilities

208

356

—

592

The following table presents the amounts of gains and losses on the Company’s derivative instruments for the

years ended March 31, 2010 and 2009 and their locations on its Financial Statements (in thousands):

$ 599 $ 208

$ 366 $1,849

Net amount
of gain/(loss)
deferred as a
component of
accumulated
other
comprehensive
loss

2010

2009

Location of
gain/(Loss)
reclassified from
accumulated other
comprehensive
loss into income

Amount of
gain/(loss)
reclassified
from
accumulated
other
comprehensive
loss into income
2009

2010

Location of gain/
(loss) recognized in
income immediately

Amount of
gain/(loss)
recognized
in income
immediately
2010

2009

Derivatives designated as hedging

instruments:

Cash Flow Hedges . . . . . .

Derivatives not designated as
hedging instruments:

Foreign Exchange

Forward Contracts. . .

Foreign Exchange

Swap Contracts . . . . .

$ 1,178
1,178

—

$ 216 Cost of goods sold

216

—

$(5,615)
(5,615)

$ 1,678 Other income/expense $

1,678

(57)
(57)

$ (12)
(12)

—

— Other income/expense

(831)

208

— Other income/expense

(2,306)

—

(3,137)

(592)

(384)

$ 1,178

$ 216

$(5,615)

$ 1,678

$ (3,194)

$ (396)

T
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A

202

203

Note 16 — Commitments and Contingencies

The Company leases facilities under operating leases, certain of which require it to pay property taxes,
insurance and maintenance costs. Operating leases for facilities are generally renewable at the Company’s option
and usually include escalation clauses linked to inflation. Future minimum annual rentals under non-cancelable
operating leases at March 31, 2010 are as follows (in thousands):

Year ending March 31,

2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 13,679
9,666
8,204
4,171
3,473
7,503

$ 46,696

Rent expense was $16.3 million, $15.5 million and $13.8 million for the years ended March 31, 2010, 2009 and

2008. The Company’s asset retirement obligations for its leased facilities as of March 31, 2010 were not material.

At March 31, 2010, fixed purchase commitments for capital expenditures amounted to $12.9 million, and
primarily related to commitments for manufacturing equipment, tooling, computer software and computer
hardware. Also, the Company has commitments for inventory purchases made in the normal course of business
to original design manufacturers, contract manufacturers and other suppliers. At March 31, 2010, fixed purchase
commitments for inventory amounted to $183.6 million, which are expected to be fulfilled by December 31, 2010.
The Company also had other commitments totaling $33.3 million for consulting services, marketing arrangements,
advertising and other services. Although open purchase orders are considered enforceable and legally binding,
the terms generally allow the Company the option to reschedule and adjust its requirements based on the business
needs prior to delivery of goods or performance of services.

The Company has guaranteed the purchase obligations of some of its contract manufacturers and original
design manufacturers to certain component suppliers. These guarantees generally have a term of one year and are
automatically extended for one or more years as long as a liability exists. The amount of the purchase obligations of
these manufacturers varies over time, and therefore the amounts subject to Logitech’s guarantees similarly vary. At
March 31, 2010, there were no outstanding guaranteed purchase obligations. The maximum total potential future
payments under three of the five guarantee arrangements is limited to $30.8 million. The remaining two guarantees
are limited to purchases of specified components from the named suppliers. The Company does not believe, based
on historical experience and information currently available, that it is probable that any amounts will be required
to be paid under these guarantee arrangements.

Logitech International S.A., the parent holding company, has guaranteed certain contingent liabilities of
various subsidiaries related to specific transactions occurring in the normal course of business. The maximum
amount of the guarantees was $8.2 million as of March 31, 2010. As of March 31, 2010, $7.6 million was outstanding
under these guarantees. The parent holding company has also guaranteed the purchases of one of its subsidiaries
under two guarantee agreements. These guarantees do not specify a maximum amount. As of March 31, 2010,
$8.7 million was outstanding under these guarantees.

Logitech indemnifies some of its suppliers and customers for losses arising from matters such as intellectual
property rights and product safety defects, subject to certain restrictions. The scope of these indemnities varies, but
in some instances, includes indemnification for damages and expenses, including reasonable attorneys’ fees. No
amounts have been accrued for indemnification provisions at March 31, 2010. The Company does not believe, based
on historical experience and information currently available, that it is probable that any amounts will be required
to be paid under its indemnification arrangements.

204

205

The Company provides various third parties with irrevocable letters of credit in the normal course of business
to secure its obligations to pay or perform pursuant to the requirements of an underlying agreement or the provision
of goods and services. These standby letters of credit are cancelable only at the option of the beneficiary who is
authorized to draw drafts on the issuing bank up to the face amount of the standby letter of credit in accordance
with its terms. At March 31, 2010, the Company had $3.4 million of letters of credit in place, of which $0.3 million
was outstanding. These letters of credit relate primarily to equipment purchases by a subsidiary in China, and
expire between April and June 2010. At March 31, 2009, The Company had $0.4 million of letters of credit in place,
with no balance outstanding.

In November 2007, the Company acquired WiLife, Inc., a privately held company offering PC-based
video cameras for self-monitoring a home or a small business. The purchase agreement provides for a possible
performance-based payment, payable in the first calendar quarter of 2011. The performance-based payment is
based on net revenues attributed to WiLife during calendar 2010. No payment is due if the applicable net revenues
total $40.0 million or less. The maximum performance-based payment is $64.0 million. The total performance-
based payment amount, if any, will be recorded in goodwill and will not be known until the end of calendar year
2010. As of March 31, 2010, no amounts were payable towards performance-based payments under the WiLife
acquisition agreement.

The Company is involved in a number of lawsuits and claims relating to commercial matters that arise in
the normal course of business. The Company believes these lawsuits and claims are without merit and intends to
vigorously defend against them. However, there can be no assurances that its defenses will be successful, or that
any judgment or settlement in any of these lawsuits would not have a material adverse impact on the Company’s
business, financial condition, cash flows and results of operations. The Company’s accruals for lawsuits and claims
as of March 31, 2010 were not material.

Note 17 — Interest and Other Income

Interest and other income (expense), net was comprised of the following (in thousands):

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2009
$ 8,648
(20)

2010
$ 2,406
(286)

2008
$ 15,752
(244)

Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,120

$ 8,628

$ 15,508

Foreign currency exchange gains, net . . . . . . . . . . . . . . . . . . . .
Gain on sale of investments, net . . . . . . . . . . . . . . . . . . . . . . . . .
Insurance investment income (loss) . . . . . . . . . . . . . . . . . . . . . .
Write-down of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,720
—
1,221
(643)
841

$ 13,680
—
(2,883)
(2,727)
441

$ 10,616
27,761
710
(79,823)
1,362

Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 3,139

$ 8,511

$ (39,374)

Note 18 — Segment Information

The Company operates in two industry segments, personal peripherals and video conferencing, based on
product markets and internal organizational structure. The personal peripherals segment encompasses the design,
manufacturing and marketing of personal peripherals for personal computers and other digital platforms. The
video conferencing segment consists of the LifeSize division, and encompasses the design, manufacturing and
marketing of high-definition video and audio communication products for the enterprise and small-to-medium
business markets. The video conferencing operating segment does not meet the quantitative thresholds required for
separate disclosure of financial information.

T
R
O
P
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A
U
N
N
A

204

205

Net sales by product family, excluding intercompany transactions, were as follows (in thousands):

Retail — Pointing Devices . . . . . . . . . . . . . . . . . . . . . . . .
Retail — Keyboards & Desktops . . . . . . . . . . . . . . . . . . .
Retail — Audio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail — Video . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail — Gaming. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail — Remotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Personal peripherals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LifeSize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2009

2010

2008

$ 528,236
329,038
454,957
228,344
107,595
96,982
198,364
1,943,516
23,232

$ 579,775
384,809
445,362
248,339
127,052
102,006
321,489
2,208,832
—

$ 615,524
464,984
478,455
238,728
146,016
123,581
303,208
2,370,496
—

Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,966,748

$ 2,208,832

$ 2,370,496

Geographic net sales information in the table below is based on the location of the selling entity. Long-lived

assets, primarily fixed assets, are reported below based on the location of the asset.

Net sales to unaffiliated customers by geographic region were as follows (in thousands):

EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 882,635
729,473
354,640
$ 1,966,748

$ 1,001,337
785,862
421,633
$ 2,208,832

$ 1,117,060
888,529
364,907
$2,370,496

Year ended March 31,
2009

2010

2008

The United States and Germany each represented more than 10% of the Company’s total consolidated net
sales for fiscal year 2010. In fiscal years 2009 and 2008, no single country other than the United States represented
more than 10% of the Company’s total consolidated net sales. Revenues from sales to customers in Switzerland, our
home domicile, represented a small portion of the Company’s total consolidated net sales in all periods presented.
In fiscal year 2010, one customer represented 13% of net sales; in fiscal years 2009 and 2008, the same customer
represented 14% of net sales. As of March 31, 2010, one customer represented 14% of total accounts receivable. As
of March 31, 2009, two customers represented 18% and 10% of total accounts receivable.

Long-lived assets by geographic region were as follows (in thousands):

EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010

2009

$ 11,053
40,165
43,765
$ 94,983

$ 13,947
40,093
53,541
$107,581

Long-lived assets in China and the United States each represented more than 10% of the Company’s total

consolidated long-lived assets at March 31, 2010 and 2009.

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Note 19 — Other Disclosures Required by Swiss Law

Balance Sheet Items

The amounts of certain balance sheet items were as follows (in thousands):

Prepayments and accrued income . . . . . . . . . . . . . . . . . . . . . . .
Non-current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension liabilities, current . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fire insurance value of property, plant and equipment . . . . . . .

Statement of Income Items

March 31,

2010

$
8,098
$ 806,017
2,761
$
$ 191,600

2009

$
8,733
$ 422,853
2,873
$
$ 172,593

Total personnel expenses amounted to $292.3 million, $282.9 million and $271.9 million in fiscal years 2010,

2009 and 2008.

Compensation and Security Ownership of Board Members and Executive Officers

In accordance with the Swiss Code of Obligations, the compensation and security ownership of members of

the Board of Directors of Logitech International S.A. and of Logitech executive officers is presented below.

The following table sets forth compensation Logitech paid or accrued for payment to the individual members of
the Board of Directors, the highest compensation paid to an executive officer, and the total amount of compensation
paid or accrued for payment to executive officers for services performed in the fiscal years ended March 31, 2010,
2009 and 2008:

Non-Executive Members of the

Fiscal
Year

Base

Salary(1) Bonus(2)

Non-equity
Incentive Plan
Compensation(3)

Stock
Awards(4)

Option
Awards(4)

Other
Compensation(5)

Total

Board of Directors:
Daniel Borel . . . . . . . . . . . . . . . . . 2010 $

72,974 $
74,882
2009
126,910
2008
124,762
Matthew Bousquette . . . . . . . . . . . 2010
94,533
2009
62,750
2008
87,098
Erh-Hsun Chang . . . . . . . . . . . . . . 2010
75,321
2009
58,750
2008
108,284
Kee-Lock Chua . . . . . . . . . . . . . . . 2010
99,504
2009
68,750
2008
101,222
Sally Davis . . . . . . . . . . . . . . . . . . 2010
95,598
2009
76,802
2008
87,098
Richard Laube. . . . . . . . . . . . . . . . 2010
58,168
2009
—
2008
87,098
Robert Malcolm . . . . . . . . . . . . . . 2010
85,841
2009
54,750
2008
110,638
Monika Ribar . . . . . . . . . . . . . . . . 2010
107,017
2009
88,700
2008
2010 $
779,174 $
2009 $ 690,864 $
537,412 $
2008 $

Total Non-Executive Board Members

Highest Paid Executive Officer

Gerald Quindlen . . . . . . . . . . . . . . 2010 $ 787,500 $
Gerald Quindlen . . . . . . . . . . . . . . 2009 $ 787,500 $
516,154 $
Gerald Quindlen . . . . . . . . . . . . . . 2008 $

Total Executive Officers(6) . . . . . . . . . 2010 $ 3,634,808 $ 40,467

2009 $ 3,340,962 $
2008 $ 3,095,385 $150,000

— $
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— $
— $
— $

—
—
109,680

— $ 110,580 $
—
—
—
—
—
—
—
—
— 104,850
—
—
—
—
—
127,960
—
—
—
—
—
—
—
—
127,960
—
—
—
—
—
—
—
—
110,580
—
—
—
—
— 283,200
—
—
—
— 208,500
—
—
—
—
—
109,680
—
—
—
—
— 279,000
—
—
—
—
—
141,600
— $ 917,600 $
—
313,350
— $
— $
— $ 703,800
— $

110,580
—
—

110,580

— $ 1,299,000
— $
— $

518,215
$ 4,557,000
— $ 584,403
$ 2,531,572

$1,007,600 $ 394,000
— $ 697,500 $ 1,151,000
— $3,999,000
$
$2,641,020 $ 2,783,850
$ 1,918,125 $ 3,585,950
— $ 8,108,500
$

$
$
$

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

$ 26,498
9,626
$
8,697
$
$ 83,872
$146,586
$ 88,801

183,554
74,882
126,910
234,442
199,383
62,750
215,058
75,321
58,750
236,244
99,504
68,750
211,802
95,598
360,002
197,678
266,668
—
196,778
85,841
333,750
221,218
107,017
230,300
$ 1,696,774
$ 1,004,214
$ 1,241,212

$ 3,514,598
$ 2,645,626
$ 5,042,066
$ 13,741,017
$ 9,576,026
$13,974,258

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(1) Base salary for non-executive members of the Board of Directors includes fees to attend meetings, annual

retainers and travel fees.

(2) Bonus represents a hire-on bonus paid to an executive officer during fiscal year 2008 and, in 2010, a bonus
granted to an executive officer to enable him to purchase a value of Logitech shares equal to what he would
have purchased under the Logitech Employee Share Purchase Plan for the February 1 to July 31, 2009 offering
period but for his employment start date being after the offering start date.

(3) Non-equity incentive plan compensation reflects amounts earned under the Logitech Management
Performance Bonus Plan and predecessor plans. No non-executive members of the Board of Directors
participated in any non-equity incentive compensation plans in any of fiscal years 2008, 2009 or 2010.
(4) Amounts shown reflect the grant date fair value, by fiscal year, of stock awards and option awards granted in
such fiscal year. The key assumptions and methodology for valuation of stock awards and option awards are
presented in Note 13.

(5) Other compensation includes term life insurance premiums, car allowance, tax preparation services (and
associated tax gross-up), relocation, and matching contributions made by the Company to the Logitech Inc.
401(k) plan.
Includes compensation paid to Mr. Mark Hawkins, a former Chief Financial Officer of the Company.
Mr. Hawkins resigned from the Company in April 2009.

(6)

No additional fees or compensation have been paid during fiscal years 2010, 2009 and 2008 to any current or

former members of the Board of Directors or executive officers other than as noted above.

There were no loans made or outstanding at any time during fiscal years 2010, 2009 and 2008 to any
current or former members of the Board of Directors or executive officers. In addition, no compensation was
paid or loans made during fiscal years 2010, 2009 and 2008 to parties closely related to members of the Board
of Directors or executive officers.

The following table sets forth the shares and options held by each of the individual members of the Board of

Directors and executive officers as of March 31, 2010:

Shares Held

Options, PRSUs
and RSUs Held(1)

Exercise Price

Fiscal Years of
Expiration

Non-Executive Members

of the Board of Directors:
Daniel Borel . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang. . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . . .
Robert Malcolm . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . .

11,203,158
10,000
148,000
14,225
7,202
57,490
8,460
5,000

6,000
81,000
337,000
102,000
36,000
36,000
36,000
101,000

—
$15.41–$23.29
$7.76–$20.25
$8.68–$19.43(2)
$27.78(3)
$23.24(4)
$27.35

$11.79–$27.78(5)

Total Non-Executive Members

of the Board of Directors: . . . . . . . . . . . . . .

11,453,535

735,000

Executive Officers:

Guerrino De Luca . . . . . . . . . . . . . . . . . . . .
Gerald Quindlen. . . . . . . . . . . . . . . . . . . . . .
Erik Bardman. . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . .
David Henry. . . . . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . . . .
Total Executive Officers . . . . . . . . . . . . . . . . . .

1,184,062
1,045,000
100,000
254,500
684,500
876,750
322,000
4,466,812

$5.11–$27.95
$10.64–$34.39
$18.76
$8.01–$17.44
$7.76–$30.09
$7.76–$30.09
$13.48–$30.09

164,018
—
—
4,632
11,131
25,326
5,078
210,185

208

2011
2016–2019
2014–2017
2011–2017
2018
2019
2018
2015–2018

2011–2020
2016–2020
2020
2019–2020
2014–2020
2014–2020
2018–2020

209

(1) Each option provides the right to purchase one share at the exercise price. For executive officers, the options
become exercisable over four years in equal annual installments from the date of grant. For non-executive
Directors, the options become exercisable over three years in equal annual installments from the date of
grant. PRSUs granted to executive officers are performance-based restricted stock units that may vest at
the end of two years from the grant date upon meeting certain minimum share price performance criteria
measured against market conditions. RSUs granted to executive officers are time-based restricted stock units
that vest in equal annual installments from the date of grant. RSUs granted to non-executive Directors vest in
one installment on the grant date anniversary.

(2) Two of the three option grants to Mr. Chua have exercise prices of 13.00 and 14.29 Swiss francs, respectively,
and the other has a U.S. dollar exercise price of $19.43. For those grants denominated in Swiss francs, the U.S.
dollar exercise prices in the range are based on the Swiss francs to U.S. dollar conversion rate on the trading
day immediately preceding the respective grant dates. The range of the U.S. dollar exercise prices as of March
31, 2010 was $12.22 - $19.43.

(3) The exercise price of the option as granted to Ms. Davis is 34.45 Swiss francs. The U.S. dollar exercise price
shown is based on the Swiss francs to U.S. dollar conversion rate on the trading day immediately preceding
the grant date. The U.S. dollar exercise price as of March 31, 2010 was $32.37.

(4) The exercise price of the option as granted to Mr. Laube is 26.18 Swiss francs. The U.S. dollar exercise price
shown is based on the Swiss francs to U.S. dollar conversion rate on the trading day immediately preceding
the grant date. The U.S. dollar exercise price as of March 31, 2010 was $24.60.

(5) The two option grants to Ms. Ribar have exercise prices of 14.68 and 34.45 Swiss francs, respectively. The
U.S. dollar exercise prices in the range are based on the Swiss francs to U.S. dollar conversion rate on the
trading day immediately preceding the respective grant dates. The range of the U.S. dollar exercise prices as
of March 31, 2010 was $13.79 - $32.37.

Risk Assessment

At a company-wide level, Logitech’s internal audit function coordinates management’s risk assessment
process, which encompasses financial and operational risks, and reports to senior management and to the Audit
Committee of the Board of Directors. Material risks are assessed and discussed by the Board of Directors. Financial
risk assessment and management is integrated into the functions of the Company’s Treasury, Finance and Business
divisions operations, with oversight from the executive and treasury committees. Financial reporting risk is
addressed through the Company’s Corporate Accounting, Financial Reporting and SOX Compliance operations
and processes. Operational risk assessment and management is integrated into the functions of the Company’s
Business divisions, with support from specialized departments such as Quality, Supply Chain, Legal and Finance.
Material financial and financial reporting risks are reported to and reviewed with the Audit Committee and the
Board of Directors as appropriate, and material operational risks are reported to and reviewed with the Board of
Directors.

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LOGITECH INTERNATIONAL S.A.,
APPLES

SWISS STATUTORY
FINANCIAL STATEMENTS

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SWISS STATUTORY FINANCIAL STATEMENTS

TABLE OF CONTENTS

Swiss Statutory Balance Sheets (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Swiss Statutory Statements of Income (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Notes to Swiss Statutory Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Proposal of the Board of Directors for Appropriation of Retained Earnings . . . . . . . . . . . . . . . . .

Report of the Statutory Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Page

213

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215

219

220

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LOGITECH INTERNATIONAL S.A., APPLES

SWISS STATUTORY BALANCE SHEETS (unconsolidated)
(In thousands of Swiss francs)

ASSETS

Current assets:

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term bank deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued interest and other receivables. . . . . . . . . . . . . . . . . . . . . . .
Advances to and amounts receivable from group companies . . . . .
Total current assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Long-term assets:

Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments in subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans to subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions on investments in and loans to subsidiaries . . . . . . . . . .
Treasury shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision on treasury shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2010

2009

CHF 32,548
56,109
—
15
81,353
170,025

—
1,054
513,702
324,474
(2,507)
419,770
(178,766)
1,077,727
CHF1,247,752

CHF

1,469
274,328
1,864
755
27,079
305,495

39
—
394,722
—
(2,507)
389,648
(246,706)
535,196
CHF 840,691

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Payables to group companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accruals and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred unrealized exchange gains . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHF

Long-term liabilities:

Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payables to group companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Shareholders’ equity:

Share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Legal reserves:

General reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve for treasury shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . .

33,249
2,490
2,829
38,568

103
382,517
421,188

47,902

CHF 17,680
3,161
—
20,841

—
17,796
38,637

47,902

9,580
419,770
349,312
826,564
CHF1,247,752

9,580
389,648
354,924
802,054
CHF 840,691

The accompanying notes are an integral part of these financial statements.

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SWISS STATUTORY STATEMENTS OF INCOME (unconsolidated)
(In thousands of Swiss francs)

Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalty fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income from third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income from subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brand development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest paid to subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income, capital and non-recoverable withholding taxes . . . . . . . . . . . . . . .
Loss on disposal of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value adjustment of treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . .
Write-down of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Realized exchange losses, net of exchange gains . . . . . . . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,

2010
CHF 11,500
42,914
920
3,915
—
59,249

4,267
12,713
39
8,933
2,045
5,983
—
686
56
17
34,739
CHF 24,510

2009
CHF229,809
47,316
4,107
315
61
281,608

5,096
17,303
256
8,101
1,987
44,700
174,125
2,057
414
293
254,332
CHF 27,276

The accompanying notes are an integral part of these financial statements.

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LOGITECH INTERNATIONAL S.A., APPLES

NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS

Note 1 — Basis of Presentation:

The Swiss statutory financial statements of Logitech International S.A. (“the Holding Company”) are prepared
in accordance with Swiss Law. The financial statements present the financial position and results of operations of
the Holding Company on a standalone basis and do not represent the consolidated financial position of the Holding
Company and its subsidiaries.

Note 2 — Contingent Liabilities:

The Holding Company issued guarantees to various banks for CHF 101,690,000 and CHF 102,643,000 at
March 31, 2010 and March 31, 2009 for lines of credit available to its subsidiaries. At March 31, 2010 the credit line
facilities were not drawn down.

The Holding Company has guaranteed certain contingent liabilities of various subsidiaries related to specific
transactions occurring in the normal course of business. The maximum amount of the guarantees was CHF
8,632,000. As of March 31, 2010, CHF 8,080,000 was outstanding under these guarantees. The Holding Company
has also guaranteed the purchases of one of its subsidiaries under two guarantee agreements. These guarantees do
not specify a maximum amount. As of March 31, 2010, CHF 9,224,000 was outstanding under these guarantees.

Note 3 — Investments:

Principal operating subsidiaries include the following:

Company
Logitech Europe S.A. . . . .

Country
Switzerland

% of
possession
100

Currency
CHF

Logitech Inc . . . . . . . . . . .

U.S.A.

100

USD

Share capital

Purpose

100,000 Administration, research,

development, sales and
distribution
11,522,396 Administration, research,

development, sales and
distribution

Logitech (Intrigue) Inc. . .
Logitech Technology

(Suzhou) Co., Ltd . . . .

Canada
People’s Republic
of China

100
100

CAD
USD

1,661,340 Research and development

22,000,000 Manufacturing

All subsidiaries are directly or indirectly 100% owned by the Holding Company.

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NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)

Note 4 — Treasury Shares:

During fiscal years 2009 and 2010, repurchases of and issuances from the Holding Company’s treasury shares

were as follows (total cost in thousands):

Held by the Holding Company at March 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Held by the Holding Company at March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Held by the Holding Company at March 31, 2010. . . . . . . . . . . . . . . . . . . . . . . . .

Number of
shares
12,431,093
2,803,000
(3,110,015)
12,124,078
7,425,125
(3,113,675)
16,435,528

Total cost
(in thousands)
CHF 400,710
82,736
(93,798)
389,648
134,771
(104,649)
CHF 419,770

In May 2006, the Board of Directors authorized the repurchase of up to USD 250,000,000 of the Holding
Company’s registered shares. The Holding Company completed the program in February 2008. Under this program,
the Holding Company repurchased 8,759,450 registered shares for approximately USD 250,000,000.

In June 2007, the Board of Directors authorized the repurchase of up to USD 250,000,000 of the Holding
Company’s registered shares. The Holding Company completed the program in March 2010. Under this program,
the Holding Company repurchased 11,978,125 registered shares for approximately USD 250,000,000.

In September 2008, the Board of Directors approved a share buyback program which authorizes the Holding
Company to invest up to USD 250,000,000 to purchase its own shares. As of May 27, 2010, the Company has not
started repurchases under the September 2008 program.

Treasury shares are recorded as a long-term asset at the lower of cost or market value, however in accordance
with article 669 of the Swiss Code of Obligations, management has opted to record the treasury shares at a value
below the lower of cost or market value. The disposal of treasury shares during the period was to the Holding
Company’s directors and employees under the Holding Company’s share option and share purchase plans. The gain
or loss on the disposal of repurchased treasury shares is recorded in the statement of income.

Note 5 — Authorized and Conditional Share Capital Increases:

Conditional capital

In June 1996 and June 1995, the Company’s shareholders approved the availability of 32,000,000 and
24,000,000 conditional registered shares. In June 2002, the shareholders approved the continued availability of the
aforementioned amounts and approved an additional 24,000,000 conditional registered shares. In September 2008,
the Company’s shareholders approved an amendment to the Company’s Articles of Incorporation which decreased
the conditional capital reserved for potential issuance on the exercise of rights granted under the Company’s
employee equity incentive plans from 60,661,860 shares to 25,000,000 shares. The Board of Directors determined
that the reduced amount of conditional capital, together with a portion of its shares held in treasury, was adequate
to cover employee equity incentives without impacting the ability of the Company to maintain employee equity
incentive plans.

216

217

LOGITECH INTERNATIONAL S.A., APPLES

NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)

The remaining number of conditional registered shares at March 31, 2010 was 50,000,000, which are available
for issuance upon the exercise of employee stock options and the issuance of shares under the Company’s employee
share purchase plans. During fiscal years 2010 and 2009, no shares were issued from the aforementioned amounts
of conditional shares available. In fiscal years 2010 and 2009, all stock options and purchase plan commitments
were satisfied from treasury shares held by the Holding Company.

As at March 31, 2010, none of the aforementioned conditional registered shares had been issued.

Note 6 — Significant Shareholders:

The Holding Company’s share capital consists of registered shares. To the knowledge of the Company,
the beneficial owners holding more than 3% of the voting rights of the Company as of March 31, 2010 were as
follows:

Name
Daniel Borel(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FMR LLC(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thornburg Investment Management(5) . . . . . . . . . . . . . . . . . .

Number of
Shares(2)
11,203,158
10,568,978
11,922,284

% of Voting
Rights(3)
5.8%
5.5%
6.2%

Relevant Date
March 31, 2010
December 31, 2009
April 25, 2008

(1) Mr. Borel has not entered into any written shareholders’ agreements.
(2) Financial instruments other than shares are not taken into consideration for the calculation of the relevant

shareholdings.

(3) Shareholdings are calculated based on the aggregate number of voting rights entered into the Swiss commercial

(4) Number of shares held by FMR LLC is based on a notification filed with the U.S. Securities and Exchange
Commission on February 16, 2010 indicating the ownership of FMR LLC, on behalf of funds managed by and
clients of FMR LLC and its direct and indirect subsidiaries.

(5) On May 22, 2008, Thornburg Investment Management notified us that as of April 24, 2008 they held

11,922,284 shares constituting approximately 6.2% of the Company’s voting rights.

The Swiss Federal Act on Stock Exchanges and Securities Trading of March 24, 1995 (“SESTA”) requires
shareholders who own voting rights exceeding certain percentage thresholds of a company incorporated in
Switzerland whose shares are listed on a stock exchange in Switzerland to notify the company and the relevant
Swiss exchange of such holdings. Following receipt of this notification, the company is required to inform the
public in Switzerland.

T
R
O
P
E
R
l
A
U
N
N
A

216

217

LOGITECH INTERNATIONAL S.A., APPLES

NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)

Note 7 — Movements on Retained Earnings:

During fiscal years 2010 and 2009, movements on retained earnings were as follows (in thousands):

Year ended March 31,

2010

2009

Retained earnings at the beginning of the year . . . . . . . . . . . . . . . . . . . . . . . . . . .
Release from (attribution to) reserve for treasury shares . . . . . . . . . . . . . . . . . . . .
Net income for the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings at the disposal of the Annual General Assembly . . . . . . . . . . .

CHF 354,924 CHF 316,586
11,062
27,276
CHF 349,312 CHF 354,924

(30,122)
24,510

Note 8 — Compensation and Security Ownership of Board Members and Executive Officers:

In accordance with the Swiss Code of Obligations, the compensation and security ownership of members
of the Board of Directors of Logitech International S.A. and of Logitech executive officers is presented in the
consolidated financial statements of Logitech International S.A., Apples.

Note 9 — Risk Assessment:

A discussion of the Holding Company’s risk assessment is included in Note 19-Other Disclosures Required

by Swiss Law in the consolidated financial statements of Logitech International S.A.

********************************

218

219

PROPOSAL OF THE BOARD OF DIRECTORS FOR APPROPRIATION OF RETAINED EARNINGS

Proposal of the Board of Directors for appropriation of retained earnings was as follows during fiscal years

2010 and 2009 (in thousands):

To be carried forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,

2010
Proposal of the
Board of Directors
CHF 349,312

2009
Resolution of the
General Assembly
CHF 354,924

218

219

T
R
O
P
E
R
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A
U
N
N
A

PricewaterhouseCoopers SA
avenue C.-F.-Ramuz 45
Case postale
1001 Lausanne
Switzerland
Phone +41 58 792 81 00
Fax +41 58 792 81 10
www.pwc.ch

Report of the Statutory Auditor
to the General Meeting of Logitech International S.A., Apples

Report of the statutory auditor on the financial statements

As statutory auditor, we have audited the financial statements of Logitech International S.A., which comprise

the balance sheet, statement of income and notes for the year ended March 31, 2010.

Board of Directors’ Responsibility

The Board of Directors is responsible for the preparation of the financial statements in accordance with the
requirements of Swiss law and the company’s articles of incorporation. This responsibility includes designing,
implementing and maintaining an internal control system relevant to the preparation of financial statements that
are free from material misstatement, whether due to fraud or error. The Board of Directors is further responsible
for selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in
the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Swiss law and Swiss Auditing Standards. Those standards require that we plan
and perform the audit to obtain reasonable assurance whether the financial statements are free from material
misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control system relevant to the entity’s preparation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control system. An audit also includes evaluating
the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as
evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements for the year ended March 31, 2010 comply with Swiss law and the

company’s articles of incorporation.

220

221

Report on other legal requirements

In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditing Standard 890, we confirm that an
internal control system exists which has been designed for the preparation of financial statements according to the
instructions of the Board of Directors.

We further confirm that the proposed appropriation of available earnings complies with Swiss law and the

company’s articles of incorporation. We recommend that the financial statements submitted to you be approved.

PricewaterhouseCoopers SA

Travis Randolph
Audit expert
Auditor in charge

Lausanne, Switzerland
May 27, 2010

Enclosures:

Luc Schulthess
Audit expert

–

Financial statements (balance sheet, statement of income and notes) for the year ended March 31, 2010 and the
proposed appropriation of the available earnings, listed in the index appearing on page 212.

220

221

Selected Financial Highlights





Fiscal Year

20061

2007

2008

2009

2010





(in thousands of U.S. dollars, except per share amounts)

Net sales

Gross margin

Operating income

Operating margin

Net income

Earnings per diluted share

Diluted number of shares (in millions)

Cash flow from operations

Capital expenditures

Cash and cash equivalents and short-term
investments, net of short-term debt

$ 1,796,715

$ 2,066,569

$ 2,370,496

$ 2,208,832

$ 1,966,748

32.0%

34.3%

35.8%

31.3%

31.9%

198,911

$ 230,862

286,680

109,654

78,364





11.1%

11.2%

181,105

$ 229,848

0.92

1.20

198,769

152,217

190,991

$ 303,825

54,102

47,246

12.1%

231,026

1.23

187,942

393,079

57,900

$ 230,943

$ 398,966

486,292

Chief Executive Officer of LifeSize Communications,



5.0%

107,032

0.59

4.0%

64,957

0.36

182,911

179,340

200,587

$ 365,259

48,263

39,834

494,396

$ 319,944

997,708

$ 999,715

Shareholders’ equity

685,176

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$ 844,524

960,044

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















Craig Malloy

Senior Vice President of Logitech























































































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