Logistea Annual Report 2012

FY2012 Annual Report · Logistea

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Rapport Annuel 2012, Invitation et Document d’Information

Geschäftsbericht 2012, Einladung und Informationsmaterial

2012 Annual Report, Invitation and Proxy Statement

À Propos de Logitech Logitech est un leader mondial en produits permettant à chacun de vivre l’expérience numérique qu’il
recherche. Disponibles sur diverses plates-formes informatiques, de communication et de jeux, les solutions matérielles et logicielles
Logitech permettent ou améliorent la navigation numérique, le divertissement musical et vidéo, les jeux, les réseaux sociaux, la
communication audio et vidéo par Internet, la vidéosurveillance et le contrôle des équipements multimédias de divertissement à
domicile. Fondée en 1981, Logitech International est une société anonyme suisse, cotée à la Bourse suisse SIX (LOGN) et au Nasdaq
Global Select Market (LOGI).

Über Logitech Logitech ist weltweit führend bei Produkten, durch die Menschen mit ihren bevorzugten digitalen Erlebnissen
ver bunden werden. Mit der Kombination aus Hardware- und Softwarelösungen für mehrere Computer-, Kommunika tions- und
Unterhaltungsplattformen ermöglicht oder verbessert Logitech Anwendungsbereiche wie Steuerung von digitalen Geräten,
Musik- und Videounterhaltung, Videospiele, soziale Netzwerke, Audio- und Videokommuni kation über das Internet,
Videoüberwachung und Steuerung von Heimunterhaltungsgeräten. Logitech Internatio nal wurde im Jahr 1981 gegründet und ist
eine schweizerische Aktiengesellschaft, die an der Schweizer Börse SIX (LOGN) und am NASDAQ Global Select Market (LOGI)
notiert ist.

About Logitech Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning
multiple computing, communication and entertainment platforms, Logitech’s combined hardware and software enable or enhance
digital navigation, music and video entertainment, gaming, social networking, audio and video communication over the Internet,
video security and home-entertainment control. Founded in 1981, Logitech International is a Swiss public company listed on the SIX
Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).

Selected Financial Highlights

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 2012.

Fiscal Year

2008

2009

2010

2011

2012

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

3.1%

71,458

0.41

175,591

Net sales

Gross margin

Operating income

Operating margin

Net income

$ 2,370,496

$ 2,208,832

$ 1,966,748

$ 2,362,886

$ 2,316,203

35.8%

31.3%

31.9%

35.4%

33.5%

$ 286,680

$ 109,654

$ 78,364

142,656

71,981

12.1%

5.0%

4.0%

6.0%

$ 231,026

$ 107,032

$ 64,957

$ 128,460

Earnings per diluted share

1.23

0.59

0.36

0.72

Diluted number of shares

187,942

182,911

179,340

178,790

Cash flow from operations

$ 393,079

$ 200,587

$ 365,259

156,742

196,142

Capital expenditures

$ 57,900

$ 48,263

$ 39,834

$ 43,039

$ 47,807

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

$ 486,292

$ 494,396

$ 319,944

$ 477,931

$ 478,370

Shareholders’ equity

$ 960,044

$ 997,708

$ 999,715

$ 1,205,001

$ 1,150,241

This document contains forward-looking statements within the meaning of the U.S. federal securities laws, including, without limitation, statements regarding: our goals
and growth opportunities; how we expect to accomplish our goals; our product portfolio; our lineup of new products, the timing of their launches, their attractiveness
to consumers, their financial impact and the timing of their financial impact; our product and geographic markets; our organizational structure; our responsiveness to
consumers; our product offering simplification, its effects and our ability to effect it; the goals of our restructuring; the reduction in our annual operating costs and the
timing of achieving such savings; our financial performance in the second half of Fiscal Year 2013; our overall financial outlook; the sufficiency of our cash and cash
equivalents, cash generated from operations, and available borrowings under our bank lines of credit to fund capital expenditures and working capital needs; and our ability
to achieve renewed growth, profitability and future success. The forward-looking statements in this document involve risks and uncertainties that could cause Logitech’s
actual results and events to differ materially from those anticipated in these forward-looking statements, including, without limitation: the demand of our customers and our
consumers for our products and our ability to accurately forecast it; our ability to innovate and develop new products in a timely and cost-effective manner for our new and
existing product categories; if our product offerings, marketing activities and investment prioritization decisions do not result in the sales, profitability or profitability growth
we expect, or when we expect it; the effect of pricing, product, marketing and other initiatives by our competitors, and our reaction to them, on our sales, gross margins
and profitability; if the restructuring fails to produce the intended performance and cost savings results or is not implemented in the contemplated timeframe. A detailed
discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in
Logitech’s periodic filings with the Securities and Exchange Commission, including our Annual Report onForm 10-K for the fiscal year ended March 31, 2012, available at
www.sec.gov., under the caption Risk Factors and elsewhere. Logitech does not undertake any obligation to update any forward-looking statements.

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Chers actionnaires,

An unsere Aktionäre,

To Our Shareholders,

L’exercice 2012 a été décevant,
marqué par une stagnation du
chiffre d’affaires, une baisse signi-
ficative du résultat d’exploitation
et une baisse importante du cours
de notre action. Les défis majeurs
qui ont marqué le début de cet
exercice, à savoir une baisse du
niveau des achats, des problèmes
liés au traitement des ventes dans
la zone européenne (EMEA) et
une demande très inférieure aux
prévisions pour Logitech Revue
avec Google TV ont fortement
pénalisé le résultat de cet exercice
en dépit des mesures correctives
implémentées avant la fin du
3éme trimestre.

A fin juillet 2011, j’ai repris la
fonction de Chief Executive
Officer et effectué une
évaluation approfondie de
nos activité afin d’identifier
les grands défis à venir.

A fin juillet 2011, j’ai repris la

fonction de Chief Executive Officer
et effectué une évaluation appro-
fondie de nos activité afin d’identifier
les grands défis à venir. Nous avons
constaté que notre portefeuille
de produits n’était pas au niveau
requis. Dans certaines catégories,
nos produits phares devaient être
impérativement réactualisés. Dans
d’autres, alors que nous proposions
de bons produits d’entrée de gamme,
pour le milieu de gamme et le haut
de gamme, nous n’avions pas de
produits suffisamment attrayants
à proposer.

Suite à cette évaluation, nous

avons pris des mesures pour redyna-
miser notre portefeuille et nous avons
concentré nos efforts sur des innova-
tions à forte valeur ajoutée pour le

Das Geschäftsjahr 2012 verlief ent-
täuschend: Der Umsatz stagnierte im
Wesentlichen, das Betriebsergebnis
ging gegenüber dem Vorjahr markant
zurück und unser Aktienpreis sank
deutlich. Grund dafür waren grosse
Herausforderungen zu Beginn des
Geschäftsjahres, so unter anderem
schwacher Einkaufsstand, Probleme
bei der Verkaufsabwicklung in der
Region EMEA sowie eine geringere
Nachfrage nach Logitech Revue mit
Google TV als ursprünglich erwartet.
Obwohl wir diese Schwierigkeiten bis
Ende des dritten Quartals überwinden
konnten, wurde unsere Leistung im
gesamten Geschäftsjahr dadurch
jedoch negativ beeinflusst.

Fiscal Year 2012 was a disappointing
year, with sales essentially flat, a
significant year-over-year decline
in operating income and a major
decline in our share price. The fiscal
year began with major challenges,
including lower demand and sales
execution issues in EMEA and much
lower-than-expected demand for
Logitech Revue with Google TV.
While we addressed these issues by
the end of the third fiscal quarter,
they had a major negative impact
on our full fiscal year performance.
At the beginning of the second

quarter, I returned as chief
executive officer and began a
thorough assessment of the

Zu Beginn des zweiten
Quartals übernahm ich erneut
das Amt des CEO und nahm
eine eingehende Analyse des
Geschäfts vor, die weitere be
deutende Herausforderungen
deutlich machte.

Zu Beginn des zweiten Quartals
übernahm ich erneut das Amt des
CEO und nahm eine eingehende
Analyse des Geschäfts vor, die weitere
bedeutende Herausforderungen
deutlich machte. So kamen wir
insbesondere zum Schluss, dass unser
Produktportfolio Schwächen zeigte.
In einigen Kategorien mussten unsere
Vorzeigeprodukte aktualisiert werden.
In anderen Kategorien boten wir zwar
auf der Einstiegsstufe gute Produkte
an, aber im mittleren und High-End-
Segment überzeugte unser Angebot
unsere Kunden nicht.

Nach dieser Analyse starteten
wir, unser Produktportfolio durch
eine Fokussierung auf bedeutende
Innovationen wieder schlagkräftiger
zu gestalten. Erste Ergebnisse unserer
verbesserten Produktdefinition sind

At the beginning of the
second quarter, I returned as
chief executive officer and
began a thorough assessment
of the business, identifying
other significant challenges.

business, identifying other signif-
icant challenges. Most notably,
we concluded that our product
portfolio was weaker than it should
be. In some categories, our flagship
products were in need of a refresh.
In other categories, we were
offering good products at the entry
level, but at the midrange and high
end we did not offer compelling
enough products for consumers.
Following the assessment,
we took steps to reinvigorate
our product portfolio through
a renewed focus on meaningful
innovation. We’ve already begun to
see the outcome of our improved
product definition process and
there is much more to come in
the current fiscal year. I’m very
optimistic about our renewed

Logitech 2012

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consommateur. Les premiers effets
de cette approche sont perceptibles
et nous allons poursuivre nos efforts
au cours de l’année fiscale en cours.
Je suis très positif quant à ce retour à
une approche de l’innovation orientée
consommateur. Nous avons toujours
été fiers d’offrir des produits que
nos clients sont heureux d’acheter
et d’utiliser et je suis convaincu
que nous sommes à nouveau sur la
bonne voie.

Notre évaluation nous a également

permis de comprendre qu’un trop
grand nombre de produits sans diffé-
rentiation évidente engendrait une
certaine confusion chez nos clients.
En réponse, nous nous concentrons
désormais sur une sélection réduite
de produits nettement plus attrayants,

bereits zu erkennen, und im laufenden
Geschäftsjahr wird in diesem Bereich
noch einiges mehr zu erwarten sein.
Die Strategie, uns wieder vermehrt
auf die konsumentenorientierte
Innovation abzustützen, stimmt mich
optimistisch. Wir waren seit jeher stolz
darauf, Produkte herzustellen, die die
Menschen auch tatsächlich kaufen
wollen und die sie mit grosser Freude
benutzen, und ich bin zuversichtlich,
dass wir uns wieder auf dem richtigen
Weg befinden.

Unsere Analyse ergab zudem,
dass wir die Konsumenten mit zu
vielen und nicht klar voneinander
abgegrenzten Produkten verunsichert
haben. Wir legen deshalb den Fokus
neu auf eine vereinfachte, kleinere,
aber deutlich überzeugendere Palette

approach to consumer-centric
innovation. We’ve always been
proud of delivering products that
people want to buy and love to use.
And I’m confident that we are back
on track to do this.

The assessment also concluded
that we were confusing consumers
with too many products that
weren’t clearly differentiated. In
response, we are now focused on
a simpler selection of significantly
more compelling products that
offer a clearer choice to consumers
in each of our categories.

We are doing more than

improving our product portfolio.
We are also in the process of
streamlining our company, to
become simpler, faster, more

Je suis très positif quant à
ce retour à une approche
de l’innovation orientée
consommateur. Nous avons
toujours été fiers d’offrir
des produits que nos clients
sont heureux d’acheter et
d’utiliser et je suis convaincu
que nous sommes à nouveau
sur la bonne voie.

Die Strategie, uns wieder
vermehrt auf die konsumen
tenorientierte Innovation
abzustützen, stimmt mich
optimistisch. Wir waren seit
jeher stolz darauf, Produkte
herzustellen, die die Menschen
auch tatsächlich kaufen wollen
und die sie mit grosser Freude
benutzen, und ich bin zuver
sichtlich, dass wir uns wieder auf
dem richtigen Weg befinden.

I’m very optimistic about
our renewed approach to
consumercentric innovation.
We’ve always been proud
of delivering products that
people want to buy and love
to use. And I’m confident
that we are back on track to
do this.

qui offrent un choix nettement plus
clair aux consommateurs, dans
chacune de nos catégories.

von Produkten, die den Konsumenten
in all unseren Kategorien eine diffe-
renzierte Auswahl bietet.

flexible and more responsive
to consumers.

This simplification process

Toutefois, nous ne nous contentons

pas seulement d’améliorer notre
portefeuille de produits. Nous avons
également entamé un processus
visant à simplifier le fonction-
nement de notre entreprise, à la
rendre plus réactive, plus flexible
et plus à l’écoute des besoins des
consommateurs.

Ce processus de simplification

a commencé avec l’arrivée de
Bracken P. Darrell, qui assumera les
fonctions de Chief Executive Officer

Wir verbessern nicht nur unser
Produktportfolio, sondern arbeiten
zugleich auch an einer Straffung des
Unternehmens, damit wir einfacher,
schneller, flexibler und konsumenten-
orientierter agieren können.
Lanciert wurde dieser

Straffungsprozess mit dem Eintritt
unseres Presidenten Bracken P.
Darrell, der ab Januar 2013 als CEO
von Logitech tätig sein wird. Eine
seiner ersten Massnahmen bestand
darin, das oberste Management

Logitech 2012

began with the arrival of Bracken P.
Darrell, our president, who will also
become our chief executive officer
beginning in January 2013. One of
Bracken’s first steps was to remove
a layer of executive management
so that he can be closer to our
customers and our products.
The next step was to initiate a
company-wide restructuring that
removed more layers, increased

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à partir de janvier 2013. L’une des
premières mesures de Bracken a
vu la suppression d’un niveau de
direction afin d’être plus proche de
nos clients et de nos produits. La
mesure suivante a consisté en la
mise en œuvre d’une restructuration
de l’entreprise au cours de laquelle
d’autres niveaux ont été supprimés,
l’étendue des responsabilités de la
direction a été accrue et une simpli-
fication de nos méthodes de travail
amorcée. Sur une base annuelle, ces
mesures doivent nous permettre
d’économiser USD 80 millions sur
notre structure de coût. Alors que
nous regrettons profondément le
départ de nombreux collègues du
fait de cette réorganisation inévi-
table, je suis convaincu que toutes

Nous avons également
entamé un processus visant à
simplifier le fonctionnement
de notre entreprise, à la
rendre plus réactive, plus
flexible et plus à l’écoute des
besoins des consommateurs.

les mesures prises sont essentielles à
la construction d’une entreprise plus
saine et plus efficiente, dans l’intérêt
de nos collaborateurs, de nos clients
et de nos actionnaires.

L’amélioration du portefeuille
de produits, la simplification de
l’organisation et des processus, ainsi
que les économies réalisées avec la
restructuration devraient aboutir à
de meilleures performances finan-
cières à partir du 2éme semestre de
l’exercice en cours (octobre 2012 –
mars 2013).

Les changements opérés doivent

nous donner une flexibilité accrue
pour la poursuite des opportunités
les plus prometteuses. L’une de ces
opportunités existe dans les marchés

nachhaltig zu reduzieren, um damit
näher bei unseren Kunden und
Produkten zu sein. Der nächste Schritt
war der Start eines unternehmens-
weiten Restrukturierungsprogramms:
weitere Reduzierungen von
Managementebenen, Erweiterung
der Kontrollspanne des
Managements und Vereinfachung
unserer Geschäftsabläufe. Durch
diese Restrukturierungs- und
Straffungsmassnahmen sollen
jährlich Kosten in der Höhe von 80
Mio. US$ eingespart werden können.
Wir bedauern zutiefst, dass infolge
dieser notwendigen Straffung einige
unserer Kolleginnen und Kollegen
unser Unternehmen verlassen
mussten. Ich bin aber überzeugt,
dass all diese Schritte unausweichlich

management span of control and
began to simplify how we work. The
restructuring and simplification are
expected to remove $80 million
from our cost structure on an
annual basis.

While we both deeply regret

the departure of many of our
colleagues due to this necessary
restructuring, I am convinced that
all the steps we took are essential
to re-establishing a healthier and
more effective company for our
employees, our customers and our
shareholders.

The combination of the improved
product portfolio, the simplification
of the organization and processes,
and the cost savings from the
restructuring, should result in

Wir verbessern nicht nur
unser Produktportfolio,
sondern arbeiten zugleich
auch an einer Straffung des
Unternehmens, damit wir
einfacher, schneller, flexibler
und konsumentenorientierter
agieren können.

waren, um wieder ein gesundes
und effizientes Unternehmen für
unsere Mitarbeitenden, Kunden und
Aktionäre aufbauen zu können.

Das verbesserte Produktportfolio,
die Vereinfachung der Organisation
und der betrieblichen Abläufe sowie
die Kosteneinsparungen aufgrund
der Restrukturierung dürften ab
Beginn der zweiten Hälfte des
laufenden Geschäftsjahres zu einer
Verbesserung der finanziellen
Performance führen.

Die von uns vorgenommenen
Änderungen sollen uns die notwen-
dige Flexibilität geben, damit wir die
vielversprechenden Möglichkeiten auf
dem Markt weiterverfolgen können.
Eine solche Möglichkeit sehen wir in
den aufstrebenden Märkten. Unsere

We are also in the process of
streamlining our company, to
become simpler, faster, more
flexible and more responsive
to consumers.

improved financial performance
starting in the second half of the
current fiscal year.

The changes we have been

making are designed to provide us
with the flexibility to pursue our
most promising market opportu-
nities. One such opportunity is in
emerging markets. Our investment
in China has resulted in it becoming
our third-largest country in revenue,
with 58 percent sales growth in FY
2012. With a strong China team in
place, I am confident that we have
the right strategy to drive continued
growth there. We are also putting
a spotlight on other emerging
markets, such as Russia, where

Logitech 2012

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émergents. Nos investissements en
Chine ont fait de ce pays notre 3éme
plus grand contributeur en termes de
revenus, avec une hausse de 58% de
notre chiffre d’affaires pour l’exercice
2012. Je suis certain que grâce au
dynamisme de l’équipe locale mise en
place, nous avons la bonne stratégie
pour assurer notre croissance dans
ce pays. Nous privilégions également
d’autres marchés émergents, tels que
la Russie, où nous avons continué à
progresser de manière significative
au cours de l’année, de même que
l’Inde et le Brésil.

Dans les pays émergents, où l’on
constate une croissance bien réelle
des achats d’ordinateurs, notre offre
de produits se concentre sur nos
principaux périphériques, tels que les

Investitionen in China haben sich
bereits ausbezahlt: In diesem Land
erwirtschaften wir unterdessen die
dritthöchsten Umsätze, wobei der
Umsatz im GJ 2012 um 58 Prozent
gestiegen ist. Ich bin sicher, dass wir
mit unserem starken Team vor Ort die
richtige Strategie verfolgen, um ein
kontinuierliches Wachstum in China
voranzutreiben. Wir legen den Fokus
aber auch auf andere aufstrebende
Märkte wie etwa Russland, wo wir im
ganzen Geschäftsjahr weitere grosse
Fortschritte verzeichnen konnten,
oder auch Indien und Brasilien.
In aufstrebenden Märkten

nehmen die Verbraucherkäufe von
PCs nach wie vor stark zu. Deshalb
liegt der Schwerpunkt unseres
Angebots in diesen Märkten unter

we continued to make significant
progress over the fiscal year, as well
as India and Brazil.

In emerging markets, there is

still clear growth in consumer
purchases of PCs, so our product
focus in these markets includes
our core PC peripherals, such as
mice, keyboards and webcams.
We are also successfully intro-
ducing products for music,
tablets and business into some
emerging markets.

Our opportunities in mature
markets abound as well. While
growth of PC sales has slowed in
mature countries, the upcoming
launch of the Windows 8 operating
system presents a renewed growth
opportunity for our PC products.

Sur une base annuelle,
ces mesures doivent nous
permettre d’économiser
USD 80 millions sur notre
structure de coût.

souris, les claviers et les webcams. De
façon ciblée, nous avons également
lancé avec succès des produits
pour la musique, pour les tablettes
numériques et pour les entreprises.

Nos opportunités dans les marchés

matures sont également très
nombreuses. Alors que la croissance
des ventes d’ordinateurs a ralenti
dans ces marchés, le lancement du
système d’exploitation Windows 8
nous fournira une nouvelle oppor-
tunité de croissance. Et nous tirons
parti de l’immense popularité de
l’iPad, en proposant des produits a
forte valeur ajoutée, telle la coque
clavier Logitech Ultrathin Keyboard
Case et le clavier solaire Logitech
Solar Keyboard Folio qui rendent
l’utilisation de la tablette encore plus
confortable. De plus, les efforts que
nous avons déployés pour élargir

Durch diese
Restrukturierungs und
Straffungsmassnahmen sollen
jährlich Kosten in der Höhe
von 80 Mio. US$ eingespart
werden können.

anderem auf unseren wichtigsten
PC-Peripheriegeräten wie Mäusen,
Tastaturen und Webcams. Darüber
hinaus haben wir in einigen dieser
Märkte auch erfolgreich Produkte
für den Musik-, Tablets- und
Business-Bereich eingeführt.

Auch in den reifen Märkten ergeben

sich für uns zahlreiche Möglichkeiten.
Zwar hat sich das Wachstum bei
den PC-Verkäufen verlangsamt,
aber die erwartete Einführung des
Betriebssystems Windows 8 dürfte
neue Absatzmöglichkeiten für unsere
PC-Angebote schaffen. Wir nutzen
zudem die enorme Beliebtheit des
iPads und bieten Produkte wie
etwa das hoch gelobte Logitech
Ultrathin Keyboard Case oder auch
das Solar Keyboard Folio an, mit
denen die Nutzung eines iPads
noch komfortabler wird. Unsere

Logitech 2012

The restructuring and
simplification are expected
to remove $80 million from
our cost structure on an
annual basis.

We’re also taking advantage of the
enormous popularity of the iPad,
offering products that enhance
the experience, such as the highly
rated Logitech Ultrathin Keyboard
Case and the Solar Keyboard Folio.
Our efforts to broaden our product
portfolio to include more products
for the Mac are also bearing fruit.
The new Logitech Wireless Solar
Keyboard for the Mac is one
example with more expected in the
current fiscal year.

I view the digital music category

as a significant opportunity this
year and beyond. Under our
Logitech UE (Ultimate Ears) brand,
we have begun to offer wireless
speakers as well as our high-quality
earphones. We expect to broaden

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notre portefeuille de produits et
inclure davantage de produits pour
le Mac portent également leurs fruits.
Le nouveau clavier solaire Logitech
Wireless Solar Keyboard pour Mac,
déjà disponible sur le marché, est
une parmi d’autres nouveautés
qui seront introduites au cours de
l’exercice en cours.

Bemühungen zur Erweiterung
unseres Produktportfolios durch
zusätzliche Peripheriegeräte für Macs
tragen ebenfalls Früchte. Das neue
solarbetriebene Logitech Wireless
Solar Keyboard für Mac, das schon
im Markt verfügbar ist, ist ein Beispiel
von den Neuigkeiten, die im laufenden
Geschäftsjahr vorgestellt werden.

La catégorie «musique numérique»

Meiner Ansicht nach ist die digitale

représente quant à elle une oppor-
tunité significative pour cette année
et pour les années à venir. Sous
notre marque Logitech UE (Ultimate
Ears), nous avons commencé à
proposer des haut-parleurs sans
fil, de même que des écouteurs de
haute qualité. En cours d’année, nous
prévoyons d’élargir cette gamme par
l’adjonction de produits séduisants

Musik eine Kategorie, in der sich in
diesem Jahr und auch in Zukunft
grosse Möglichkeiten bieten. Unter
der Marke Logitech UE (Ultimate
Ears) bieten wir bereits kabellose
Lautsprecher und hochwertige
Kopfhörer an. Wir gehen davon aus,
dass wir die Palette im laufenden Jahr
durch weitere Aufsehen erregende
neue Produkte ergänzen und unsere

the lineup with exciting new
products in the current year, as well
as expand our on-shelf presence
across key markets.

While in FY 2012 our digital home
category suffered from a lackluster
product lineup, I am excited about
the new offerings we have in store
for the current year. We expect
to refresh our line of Harmony
remotes at the high end and we
also have more plans to delight
consumers in the living room.
Another important growth

opportunity for Logitech is in the
business market. While growth of
our LifeSize video conferencing
division slowed in the second half
of FY 2012, I’m optimistic about its
future prospects. As the LifeSize

L’amélioration du portefeuille
de produits, la simplification
de l’organisation et des
processus, ainsi que les
économies réalisées avec
la restructuration devraient
aboutir à de meilleures
performances financières à
partir du 2éme semestre de
l’exercice en cours.

et d’accroître significativement notre
visibilité dans tous nos marchés clés.
Pendant l’exercice 2012, notre
catégorie «maison numérique» a
souffert de la faiblesse de notre offre.
Nous attendons donc avec beaucoup
d’impatience l’arrivée des nouvelles
télécommandes remodelées haut
de gamme Harmony et des autres
produits qui sauront ravir l’utilisateur
dans son salon.

Le marché des entreprises repré-

sente une autre opportunité de
croissance importante pour Logitech.
Bien que le développement de notre
division de visioconférence LifeSize

Das verbesserte Produkt
portfolio, die Vereinfachung
der Organisation und der
betrieblichen Abläufe sowie
die Kosteneinsparungen
aufgrund der Restrukturier
ung dürften ab Beginn der
zweiten Hälfte des laufenden
Geschäftsjahres zu einer
Verbesserung der finanziellen
Performance führen.

Präsenz in den Regalen aller wichtigen
Märkten verstärken können.

Der Geschäftsbereich Digital Home
litt im GJ 2012 unter einer schwachen
Produktpalette. Deshalb freue ich
mich um so mehr über die neuen
Angebote, die wir im laufenden Jahr in
diesem Bereich präsentieren werden.
Wir beabsichtigen eine Auffrischung
unsere Harmony-Fernbedienungen im
High-End-Segment und haben zudem
weitere Pläne für Produkte, die in den
Wohnzimmern unserer Kunden für
Begeisterung sorgen werden.

Weiteres Wachstumspotenzial für

Logitech bietet der Business-Markt.
Trotz schwachen Wachstums der

The combination of the
improved product portfolio,
the simplification of the
organization and processes,
and the cost savings from
the restructuring, should
result in improved financial
performance starting in the
second half of the current
fiscal year.

product portfolio broadens with
more sophisticated solutions,
the sales force will need to best
position our offerings and to focus
on competing where we have the
best chance of winning. Also, our
Logitech for Business group has
been steadily gaining traction with
new products for productivity
and unified communications in
the workplace. It is building a
sales and marketing foundation to
address the business market in the
Americas and Europe, and plans to
branch out into parts of Asia.

Logitech 2012

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ait ralenti au 2éme semestre de
l’exercice 2012, je reste optimiste
quant à ses perspectives futures.
L’élargissement du portefeuille
de produits LifeSize et l’offre de
solutions sophistiquées permettra
à notre force de vente de se
positionner de façon optimale et
d’être compétitive dans un segment
porteur de réelles chances de
succès. Par ailleurs, notre secteur
d’activité Logitech for Business
croît de manière régulière grâce à
l’introduction de nouveaux produits
qui permettent d’optimiser la
productivité et d’unifier les commu-
nications sur le lieu de travail. Ce
secteur développe une base vente et
marketing pour le marché des entre-
prises en Amérique et en Europe ;

Le Conseil d’administration
et moimême sommes très
heureux que Bracken Darrell
ait rejoint notre société.

une extension dans certains pays
asiatiques est prévue.

Notre industrie s’est profondément

transformée. Afin de répondre aux
attentes d’un nouveau type d’utili-
sateur et de saisir les opportunités
futures, nous devrons combiner
le meilleur de nos qualités histo-
riques — nos collaborateurs et nos
valeurs, notre passion pour l’inno-
vation et notre aptitude à combler
les attentes du consommateur, notre
culture locale et globale — avec plus
d’anticipation, de rapidité et d’effi-
cacité. Les changements que nous
avons amorcés en 2012 sont témoin
de notre volonté de faire tout ce qu’il
faut afin de ramener Logitech sur le
chemin du succès.

Le Conseil d’administration et
moi-même sommes très heureux
que Bracken Darrell ait rejoint notre

Sparte LifeSize in der zweiten Hälfte
des GJ 2012, bin ich für ihre Zukunft
zuversichtlich. Mit dem Ausbau
unserer LifeSize-Produkte mit noch
anspruchsvolleren Lösungen werden
sich unsere Verkaufsteams noch
stärker dort positionieren — auch
gegenüber der Konkurrenz -, wo für
uns die besseren Chancen stehen.
Zudem hat unser Geschäftsbereich
Logitech for Business mit neuen pro-
duktivitätssteigernden Lösungen und
Unified Communications-Systemen
konti nuierlich zulegen können. Dieser
Bereich baut derzeit eine Verkaufs- und
Marketing-Basis für den Business-
Markt in Süd-, Mittel- und Nordamerika
sowie Europa auf. Eine Ausdehnung auf
Teile von Asien ist ebenfalls geplant.

Durch die Veränderungen in unserer

The transformations in our

industry, and our taking advantage
of the many opportunities ahead
while recognizing and anticipating
the new consumer preferences,
require Logitech to blend the best
of our historical qualities — our
people and values, our love for
innovation and the consumer, our
global and local culture — with
renewed speed, responsiveness
and effectiveness. The changes
we initiated in FY 2012 reflect our
determination to do what it takes
to bring Logitech back to the path
of success.

The Board and I are very

excited about Bracken joining the
company. The qualities behind our
choice — Bracken’s product and

Der Verwaltungsrat und ich
selbst sind höchst erfreut,
dass Bracken Darrell zu
unserem Unternehmen
gestossen ist.

Branche und unsere Bereitschaft,
neue Herausforderungen bereits im
Vorfeld anzunehmen, indem neue
Konsumentenwünsche frühzeitig
erkannt werden, muss Logitech
das Beste aus seinen traditionellen
Stärken nutzen, nämlich unsere
Mitarbeiter und unsere Werte,
unsere Innovationsfreude und
Kundenorientiertheit, unsere globale
und lokalen Kulturen — und dies
schneller, aufgeschlossener und
effizienter. Die Massnahmen, die wir
im GJ 2012 eingeleitet haben, sind der
Beweis für unsere Entschlossenheit,
alles Notwendige zu unternehmen,
um Logitech wieder auf den Weg zum
Erfolg zu führen.

Der Verwaltungsrat und ich selbst

sind höchst erfreut, dass Bracken
P. Darrell zu unserem Unternehmen
gestossen ist. Er hat seine heraus-
ragenden Qualitäten, die uns zu

The Board and I are very
excited about Bracken Darrell
joining the company.

consumer orientation, his passion
for the business and our people,
his global view, his leadership
style — were even more clear to
me as Bracken initiated and led
our organization simplification
and restructuring efforts at the
beginning of the current fiscal year.
I could not be more pleased to be
working with him over the coming
several months to facilitate and
enable his transition to the chief
executive officer position.

I wish to acknowledge and

thank our employees, who,
during these difficult times, have
remained steadfast and focused on
creating and delivering products
that will delight consumers and
business customers. I also thank

Logitech 2012

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English

our partners, who work with us
to deliver the right products into
the market.

Finally, I thank you, our share-

holders, for remaining with us
during this past fiscal year when
our stock price declined by almost
half. I am committed to reward your
patience and support, as we chart a
new course for a brighter future.

société. Les qualités qui avaient
décidé de notre choix — orientation
produit et consommateur, passion
pour l’entreprise et ses collabora-
teurs, vision globale, leadership et
style de direction — me sont apparues
encore plus évidentes lorsqu’il a initié
et dirigé nos efforts de simplification
et de réorganisation au début de
l’exercice en cours. Je me réjouis
beaucoup de travailler avec Bracken
dans les mois à venir et de faciliter au
mieux sa prise en main de la société.
J’aimerais rendre hommage et
remercier tous nos collaborateurs.
Pendant cette période difficile, ils
sont restés concentrés sur leur tâche
et ont su trouver les ressources pour
créer et fournir des produits dignes
de Logitech, qui plaisent à nos clients
privés et professionnels. Je tiens
également à remercier nos parte-
naires qui soutiennent nos efforts
dans le marché.

Enfin, je tiens à vous remercier
vous, Mesdames et Messieurs les
actionnaires, pour être restés à nos
côtés pendant l’exercice passé,
qui a vu le cours de notre action
baisser de près de 50%. Alors que
nous amorçons une nouvelle phase
de notre développement, je suis
déterminé à ce que votre patience et
votre soutien soient récompensés.

seiner Wahl bewogen haben — seine
Produkte- und Kundenorientierung,
seine Leidenschaft für das Geschäft
und unsere Mitarbeiter, seine globale
Sichtweise und sein Führungsstil–,
bereits zu Beginn des laufenden
Geschäftsjahres eindrücklich unter
Beweis gestellt, als er die notwen-
digen Massnahmen zur Straffung
und Restrukturierung unseres
Unternehmens einleitete und die
Führungsverantwortung dafür
übernahm. Ich freue mich ausseror-
dentlich darauf, in den kommenden
Monaten mit ihm zusammenzu-
arbeiten, und werde mein Bestes
tun, um ihm die Übernahme der
Unternehmensführung zu erleichtern.
Ich möchte mich an dieser Stelle
auch bei unseren Mitarbeiterinnen
und Mitarbeitern bedanken, die sich in
dieser schwierigen Zeit nicht beirren
liessen und sich darauf konzen-
trierten, Produkte zu schaffen, die
unsere Privat- und Geschäftskunden
begeistern werden. Mein Dank geht
auch an unsere Partner, die mit uns
zusammenarbeiten und uns dabei
unterstützen, den Markt mit den
richtigen Produkten zu versorgen.

Und nicht zuletzt danke ich auch

Ihnen, unseren Aktionärinnen und
Aktionären, dass Sie uns im vergan-
genen Geschäftsjahr, in dem sich der
Preis unserer Aktie fast halbiert hat,
die Treue gehalten haben. Wir haben
nun einen neuen Kurs für eine bessere
Zukunft eingeschlagen, und ich bin
fest entschlossen, Sie für Ihre Geduld
und Ihre Unterstützung zu belohnen.

Guerrino De Luca
chairman of the Board
and chief Executive Officer

Logitech 2012

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invitation et Document
D’information

Einladung und
informationsmaterial

invitation and Proxy
statement

1 A nos actionnaires

3 1 An unsere Aktionärinnen und

3
6 3 To Our Shareholders

3 Invitation à l’assemblée générale

Aktionäre

6 5 Invitation and Agenda for the

ordinaire; Ordre du jour

33 Einladung zur ordentlichen

Annual General Meeting

4 Questions et réponses

concernant l’assemblée générale

Generalversammlung;

Traktandenliste

6 6 Questions and Answers About

2
the Logitech 201 Annual General

ordinaire 2012 de Logitech

34 Fragen und Antworten über die

Meeting

1 1 Propositions et explications

30 Informations concernant le

conseil d’administration et le

ordentliche Generalversammlung

der Logitech International S.A.

7 3 Agenda Proposals and

Explanations

4 1 Traktanden und Erläuterungen

9 1 Corporate Governance and

Rapport de Rémunération*

6 1 Verwaltungsratsangelebenheiten

Board of Directors Matters

und Entschädigungsbericht**

113 Compensation Report

annual report

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

185 Additional Financial Disclosures

19 7 Report on Corporate Governance

213 Consolidated Financial Statements

2 6 7 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

24 juillet 2012

A nos actionnaires,

Vous êtes cordialement invités à participer à l'Assemblée générale ordinaire 2012 de Logitech. L'Assemblée aura

lieu mercredi 5 septembre 2012 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 continu que vous apportez à Logitech.

GUERRINO DE LUCA
Président du Conseil d’administration

This page is intentionally left blank.

LOGITECH INTERNATIONAL S.A.

Invitation à l'Assemblée générale ordinaire
Mercredi 5 septembre 2012
14h30 (l'enregistrement débute à 13h30)
Palais de Beaulieu – Lausanne, Suisse

*****

ORDRE DU JOUR

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A. Rapport

Rapport d'activité pour l'exercice se terminant au 31 mars 2012

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 2012

Vote consultatif sur la rémunération des membres de la Direction

Affectation du bénéfice reporté et distribution des réserves d’apport de capital

3.1 Affectation du bénéfice reporté

3.2 Distribution des réserves d’apport de capital

Réduction du capital-actions par annulation d’actions rachetées

5. Modification et reformulation du Stock Incentive Plan 2006, y compris l’augmentation du nombre d'actions

qui peuvent être émises dans le cadre du Plan

Autorisation de détenir plus de 10% d’actions propres

Décharge des membres du Conseil d’administration et de la Direction pour leur activité pendant l'exercice
2012

Diminution de la durée de fonction des membres du Conseil d’administration

Elections au Conseil d’administration

9.1. Re-élection de M. Erh-Hsun Chang

9.2. Re-élection de M. Kee-Lock Chua

9.3. Election de M. Didier Hirsch

10. Re-élection de PricewaterhouseCoopers S.A. en qualité d'organe de révision de Logitech et ratification de
la nomination de PricewaterhouseCoopers LLP en qualité d’expert-comptable agréé indépendant de
Logitech pour l’exercice 2013.

Apples, Suisse, le 24 juillet 2012

Le Conseil d’administration

QUESTIONS ET REPONSES
CONCERNANT L'ASSEMBLEE GENERALE ORDINAIRE 2012 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 foi 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 24 juillet 2012.

Le coupon-réponse annexé vous est adressé au nom du Conseil d’administration de Logitech pour l’Assemblée
générale ordinaire. L'Assemblée aura lieu mercredi 5 septembre 2012 à 14h30 au Palais de Beaulieu, Salle Rome, à
Lausanne, en Suisse.

Qui peut voter à l'Assemblée?

Les actionnaires inscrits au Registre des Actions de Logitech International S.A. (y compris dans le sous-registre
tenu par l'agent de transfert américain de Logitech, The Bank of New York Mellon Corporation) le jeudi 30 août 2012,
peuvent voter à l'Assemblée. Aucun actionnaire ne pourra être inscrit au Registre des Actions entre le 31 août 2012 et le
jour suivant celui de l'Assemblée. Au 30 juin 2012, 120,955,463 actions étaient inscrites et conféraient le droit de vote
sur un total de 155,960,117 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 2012 et le 30 août
2012.

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 “street name”" 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

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représentées.

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 7600 Gateway Boulevard, Newark, California 94560. 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.

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 2012, de cette Invitation et Document d'Information ainsi que notre rapport
annuel établi sur la base du formulaire 10-K pour l'exercice 2012 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 11 septembre 2012. 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 30 août 2012 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") en ce qui concerne les objets pour lesquels
vous n’aurez pas donné d'instruction de vote. Nous vous invitons à vous référer aux indications de la carte-réponse

pour davantage d'informations.

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 vendredi 24 août 2012. 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 30 août 2012, vous pouvez participer à l'Assemblée en y
présentant une pièce d'identité.

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 24 août 2012. 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. Toute personne qui achète des actions après la clôture du
Registre des Actions le jeudi 30 août 2012 ne pourra pas faire inscrire ces actions avant le jour suivant l'Assemblée et
ne sera par conséquent pas en mesure de voter ces actions lors de l'Assemblée.

Si je donne procuration au moyen de la carte-réponse, puis-je changer mon vote ?

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
vous souhaitez donner de nouvelles instructions, vous pouvez compléter la nouvelle carte-réponse et nous la 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 logitechIR@logitech.com.

INFORMATIONS SUPPLEMENTAIRES POUR LES AYANTS DROIT ECONOMIQUES AMERICAINS
OU CANADIENS “STREET NAME”

Pourquoi ai-je reçu un courrier d'une page m'indiquant que le matériel de vote peut être obtenu par internet
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:

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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 13 juillet 2012 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 13 juillet 2012 et
le 22 août 2012, 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 13 juillet 2012 donne des instructions de vote, mais vend ses actions par la suite
jusqu'au 22 août 2012, les instructions de vote données seront annulées. Si une personne qui était un ayant droit
économique d'actions au 13 juillet 2012 et qui avait donné des instructions de vote augmente ou réduit ultérieurement
sa participation, mais est toujours un ayant droit économique au 22 août 2012, le nombre de droits de vote attribué à
cette personne sera augmenté ou réduit pour refléter sa participation au 22 août 2012.

Si vous devenez un ayant droit économique d'actions après le 13 juillet 2012 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 30
août 2012.

Comment puis-je voter si je suis un ayant droit économique “street name” américain ou canadien?

Si vous êtes un ayant droit économique d'actions détenues en “street name” et que vous souhaitez participer à

l'Assemblée, vous devez obtenir une procuration de l'organisme qui détient vos actions.

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

Si vous êtes un ayant droit économique américain ou canadien d’actions détenues en “street name” 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 la rémunération des membres de la
Direction), Point 3 (affectation du bénéfice reporté et distribution de réserves d’apport de capital), Point 4 (réduction
du capital-actions par l’annulation d’actions rachetées), Point 5 (modification et reformulation du Stock Incentive Plan
2006, y compris l’augmentation du nombre d'actions qui peuvent être émises dans le cadre du Plan), Point 6
(autorisation de détenir plus de 10% d’actions propres), Point 8 (diminution de la durée de fonction des membres du
Conseil d’administration), et Point 9 (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 jeudi 30 août 2012 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.

Comment puis-je obtenir un exemplaire du matériel de vote séparé ou demander un exemplaire individuel pour
mon ménage aux Etats-Unis ?

Nous avons adopté une procédure approuvée par la SEC appelée “householding” pour les actionnaires aux Etats-
Unis. Selon cette procédure, les actionnaires qui ont la même adresse et le même nom de famille et qui n’obtiennent
pas leur matériel de vote sous forme électronique recevront uniquement une copie de l’Avis, de notre rapport annuel,
ainsi que de la convocation à moins qu’un ou plusieurs de ces actionnaires ne nous informe(nt) qu’il(s) souhaite(nt)
continuer de recevoir des copies individuelles. Cette procédure réduit nos coûts d’impression et nos frais de port.
Chaque actionnaire américain participant au householding aura toujours la possibilité d’accéder à ou de recevoir une
carte de vote séparée.

Si vous désirez actuellement recevoir un Avis, une convocation ou un rapport annuel séparé(s), nous vous prions de
requérir la copie supplémentaire en contactant notre agent responsable des envois, à Broadridge, par téléphone au +1-

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800-579-1639 ou par e-mail à sendmaterial@proxyvote.com. Si certains actionnaires de votre ménage souhaitent
recevoir un rapport annuel séparé et une convocation séparée dans le futur, ils peuvent appeler notre groupe investor
relations au +1-510-713-4220 ou écrire à investor relations, 7600 Gateway Boulevard, Newark, California 94560. Ils
peuvent également envoyer un e-mail à notre groupe investor relations à logitechIR@logitech.com. Les actionnaires
qui ont plusieurs comptes à leurs noms ou qui partagent une adresse avec d’autres actionnaires peuvent nous autoriser
à interrompre nos envois de plusieurs rapports annuels et convocations en appelant ou en écrivant à investor relations.

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
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 D.F. King & Co., Inc.
pour solliciter de telles procurations moyennant des honoraires de US $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 US $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 2012

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 5
septembre 2012 a expiré le 6 juillet 2012. 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 2012.

Propositions d'actionnaires pour l'Assemblée générale ordinaire 2013

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 2013 en présentant une requête
écrite et en indiquant les objets de discussion et les propositions au Secrétaire du Conseil de Logitech à notre
établissement principal en Suisse ou aux Etats-Unis jusqu'au 5 juillet 2013 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 2013 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 26 mars 2013 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 2013.

Propositions 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.

PROPOSITIONS ET EXPLICATIONS

A. RAPPORT

Rapport d'activité pour l'exercice se terminant le 31 mars 2012

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

2012 lors de l'Assemblée Générale ordinaire.

POINTS DE L'ORDRE DU JOUR SOUMIS AU VOTE

Point 1

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Approbation du rapport annuel, du rapport de rémunération, des comptes consolidés et des comptes statutaires
de Logitech International S.A. pour l'exercice 2012

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 2012.

Explication

Les comptes consolidés de Logitech et les comptes statutaires de Logitech International S.A. pour l'exercice
2012 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 fait partie
intégrante de 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 2012.

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 2012 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 (U.S.
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 d’affectation du bénéfice disponible sont conformes au droit suisse et aux
Statuts de Logitech International S.A.

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 2012.

Vote consultatif sur la rémunération des membres de la Direction

Point 2

Proposition

Le Conseil d’administration propose aux actionnaires d'approuver, sur une base consultative, la rémunération des

membres de la Direction de Logitech publiée dans le Rapport de rémunération pour l’exercice 2012.

Explication

Lors des Assemblées générales ordinaires 2009 et 2010, le Conseil d’administration a demandé volontairement
aux actionnaires d'approuver les principes, la politique et les pratiques de rémunération de Logitech, tels qu’exposés
dans le chapitre "Compensation Discussion and Analysis" du Rapport de rémunération, conformément à l’évolution de
la bonne pratique en matière de gouvernement d’entreprise en Suisse et aux Etats-Unis. Cette proposition, connue sous
le nom de "say-on-pay", a donné à nos actionnaires la possibilité de s’exprimer sur nos rémunérations en général.

Au début de l’année passée, le vote consultatif "say-on-pay" est devenu obligatoire pour toutes les sociétés cotées
soumises aux règles américaines sur le proxy statement, y compris Logitech. L’année passée, les actionnaires ont
approuvé la proposition de procéder à ce vote annuellement. Par conséquent, le Conseil d’administration demande aux
actionnaires d’approuver, sur une base consultative, la rémunération des membres de la Direction de Logitech publiée
dans le Rapport de rémunération y compris le chapitre "Compensation Discussion and Analysis", les tableaux
résumant les rémunérations, les notes ainsi que les explications y relatives. Ce vote ne concerne pas des points
spécifiques de la rémunération ou des membres spécifiques de la Direction ; il s’agit plutôt d’un vote sur la
rémunération des membres de la Direction en général ainsi que sur les principes, la politique et les pratiques de
rémunération décrits dans le Rapport de rémunération.

Ce vote say-on-pay est consultatif et, par conséquent, il n'engage pas le Conseil d’administration. Toutefois, ce
vote nous fournira des informations concernant le sentiment de nos actionnaires par rapport aux principes, à la
politique et aux pratiques de rémunération des membres de la Direction que le Comité de rémunération pourra prendre
en considération dans le futur. Le Comité de rémunération prendra en considération d'éventuels résultats négatifs
importants et cherchera à en comprendre les raisons. .

Comme indiqué dans la section "Compensation Discussion and Analysis" du rapport de rémunération 2012 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:

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être compétitif avec ceux des sociétés comparables de l'industrie et dans les régions dans lesquelles les
directeurs concernés résident;

 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.

la performance qui récompense

les performances

S
A
Ç
N
A
R
F

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 2012.

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.

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 la décision consultative

"La rémunération versée aux membres de la Direction de Logitech telle que publiée dans le Rapport de
rémunération y compris le chapitre "Compensation Discussion and Analysis", les tableaux résumant les
rémunérations, les notes ainsi que les explications y relatives sont approuvés. "

Affectation du bénéfice reporté et distribution des réserves d’apport de capital

Point 3

3.1

Affectation du bénéfice reporté

Proposition

Le Conseil d’administration propose que CHF 460,919,135 (US $482,397,967, selon le taux de change au 30 juin

2012) du bénéfice reporté soient affectés comme suit:

L’année s’est terminée le 31 mars 2012
(les chiffres sont indiqués en milliers)

Bénéfice reporté au début de l'exercice 2012
CHF 507,730
—
Affectation du bénéfice décidé par l'Assemblée Générale Ordinaire 2011 – dividende
(51,880)
Attribution de la réserve pour actions propres
Bénéfice net pour l'exercice 2012
5,069
Bénéfice à disposition de l'Assemblée Générale Ordinaire à la fin de l'exercice 2012 CHF 460,919

Bénéfice non affecté avant allocations
Allocation proposée aux autres réserves générales pour actions propres
Allocation proposée à la réserve générale
Bénéfice non affecté à reporter

Autres réserves générales pour actions propres avant allocation
Allocation proposée du bénéfice non affecté
Autres réserves générales pour actions propres à reporter

Réserve générale avant allocations
Allocation proposée du bénéfice non affecté
Réserve générale à reporter

Réserve pour actions propres provenant d’apports de capital avant allocations
Allocation proposée d’apports de capital aux réserves libres
Réserve pour actions propres d’apports de capital à reporter

Réserve générale provenant d’apports de capital avant allocations
Allocation proposée d’apports de capital aux réserves libres

Réserve générale provenant d’apports de capital à reporter

CHF 460,919
(116,070)
(9,580)
CHF 335,269

CHF 217,375
116,070
CHF 333,445

CHF

—
9,580
9,580

CHF 116,070
(116,070)
—

CHF

9,580
(9,580)

CHF

—

Explication

Le droit suisse requiert qu'une proposition d'utilisation du bénéfice reporté soit soumise aux actionnaires pour
approbation ou rejet lors de chaque Assemblée générale ordinaire. Le bénéfice reporté à la disposition des actionnaires
de Logitech lors de l’Assemblée générale ordinaire 2012 est le bénéfice de Logitech International S.A., la société
faîtière du groupe Logitech.

Le Conseil d’administration propose au point 3.2 ci-dessous qu’à la place de distribuer un dividende sur le
bénéfice disponible, la société distribue une part excédentaire de ses réserves d’apport de capital. Pour libérer les
réserves d’apport de capital nécessaires à cette distribution, le Conseil d’administration propose de libérer les réserves

pour actions propres et la réserve générale qui avaient été constituées avec des réserves d’apport de capital afin de
reconstituer de telles réserves avec les bénéfices reportés et de mettre le solde du bénéfice reporté à la disposition de
l’Assemblée générale soit CHF 335,268,321.

Le Conseil d’administration propose le report du bénéfice reporté en raison de la conviction du Conseil
d’administration qu’il est dans l’intérêt de Logitech et de ses actionnaires de conserver le bénéfice de Logitech pour de
futurs investissements dans le cadre de la croissance future de Logitech, ainsi que pour des rachats d’actions et pour
acquérir, cas échéant, d'autres sociétés ou entreprises.

S
A
Ç
N
A
R
F

En cas de vote négatif des actionnaires sur cette proposition 3.1, le Conseil d’administration prendra le vote des
actionnaires en considération, retirera la proposition 3.2 ci-dessous et convoquera une Assemblée générale
extraordinaire afin de resoumettre cette proposition ou une proposition révisée aux actionnaires.

Majorité requise pour l’approbation de la proposition

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 un vote en faveur de l’approbation de l’affectation proposée du bénéfice

reporté en ce qui concerne l’exercice 2012.

3.2

Distribution des réserves d’apport de capital

Proposition

Le Conseil d’administration propose que les réserves d’apport de capital de la société soient reclassées en tant
que réserves librement disponibles pour un montant de CHF 125,650,814 (US $131,506,142 d’après le taux de change
au 30 juin 2012) et que ces réserves librement disponibles soient distribuées aux actionnaires pour un montant
d’environ CHF 0.81 par action (US $0.84 par action d’après le taux de change au 30 juin 2012), * jusqu'à un montant
total de CHF 125,650,814, comme suit:

L’année s’est terminée le 31 mars 2012
(les chiffres sont indiqués en milliers)

Réserves libres provenant d’apports de capital avant allocation
Allocation proposée de réserves pour actions propres provenant d’apports de
capital
Allocation proposée de réserves générales provenant d’apports de capital
Distribution proposée d’apports de capital
Réserves libres provenant d’apports de capital à reporter

CHF

—

116,070
9,580
(125,650)
—

CHF

Aucune distribution ne doit être opérée sur des actions détenues en trésorerie par la Société et ses filiales.

La date approximative de paiement est prévue le 18 septembre 2012.

Cette proposition sera retirée si la proposition 3.1 ci-dessus n’est pas approuvée.

Explication

Le Conseil d’administration propose qu’à la place d’un dividende sur le bénéfice disponible, la société distribue

*Calculé sur la base de 155,960,117 actions émises au 30 juin 2012 (nettes d’actions propres). Les actions qui donnent
droit à la distribution sont toutes les actions émises excepté les actions propres détenues par Logitech
International S.A. au jour précédent le paiement de la distribution.

une part excédentaire de ses réserves d’apport de capital. Cette distribution en espèces d’excédent sera une distribution
unique basée sur la baisse significative des prix des actions de la Société durant l’exercice 2012, l’existence de cet
excédent et l’occasion de récompenser nos actionnaires pour leur engagement dans la Société.

Selon le régime fiscal suisse qui est actuellement avantageux sur ce point, les distributions d’excédents

(contrairement aux distributions de dividendes provenant du bénéfice) ne sont pas sujettes au prélèvement de l’impôt
anticipé.

Majorité requise pour l’approbation de la proposition

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

Sous réserve de l’approbation de la proposition 3.1 ci-dessus, le Conseil d’administration recommande un vote en
faveur de l’approbation de la reclassification des réserves d’apport de capital de la société en tant que réserves librement
disponibles pour un montant de CHF 125,650,814 et la distribution de ces réserves librement disponibles aux
actionnaires pour un montant d’environ CHF 0.81 par action, * jusqu'à un montant total de CHF 125,650,814.

Réduction du capital-actions par l’annulation des actions rachetées

Point 4

Proposition

Le Conseil d'administration propose que 18.5 millions d’actions rachetées dans le cadre du programme de rachat
qui a été autorisé par le Conseil d’Administration en septembre 2008, tel qu’amendé en novembre 2011, soient
annulées, que le capital-actions de la société soit réduit de CHF 4,625,000, passant ainsi de CHF 47,901,655 à
CHF 43,276,655, et que les statuts de la société soient modifiés comme suit:

Article 3 (texte actuel):

Article 3 (nouveau texte):

Le capital-actions est fixé à la somme de quarante-sept
millions neuf cent un mille six cent cinquante-cinq
(47’901’655 fr.), entièrement libéré.

Le capital-actions est fixé à la somme de quarante-trois
millions deux cent septante six mille six cent cinquante
cinq (43’276’655 fr.), entièrement libéré.

Il est divisé en cent nonante et un millions six cent six
mille six cent vingt (191’606’620 ) actions d’une valeur
nominale de vingt-cinq centimes (0.25 fr.) chacune.

Il est divisé en cent septante trois millions cent six mille
six cent vingt (173’106’620) actions d’une valeur
nominale de vingt-cinq centimes (0.25 fr.) chacune.

Explication

En septembre 2008, le Conseil d’administration a approuvé un programme de rachat d’actions qui autorise la
Société à investir jusqu’à US $250 millions pour acheter ses propres actions. En novembre 2011, la Société a obtenu
l’approbation des autorités règlementaires suisses relative à un amendement du programme de rachat d’actions de
septembre 2008 afin de permettre de futurs rachats d’actions en vue de leur annulation, jusqu’à un nombre total de
28.5 millions d’actions.

Le Conseil d’administration propose maintenant que les actionnaires approuvent l’annulation de 18.5 millions
actions rachetées dans le cadre du programme de septembre 2008 tel qu’amendé et que le capital-actions mentionné à
l’article 3 des statuts de la société soit réduit en conséquence.

* Calculé sur la base de 155,960,117 actions émises au 30 juin 2012 (nettes d’actions propres). Les actions qui donnent
droit à la distribution sont toutes les actions émises excepté les actions propres détenues par Logitech
International S.A. au jour précédent le paiement de la distribution.

Dans leur rapport de révision spécial préparé pour l’Assemblée énérale ordinaire, l’organe de révision
PricewaterhouseCoopers SA a confirmé que les créances des créanciers de la Société seraient couvertes malgré la
réduction du capital-actions proposée.

La réduction du capital-actions par annulation d’actions ne peut être accomplie qu’après la publication de trois
avis aux créanciers conformément à l’article 733 du Code suisse des obligations. Si cette proposition est approuvée,
ces avis aux créanciers seront publiés après l’Assemblée générale annuelle dans la Feuille officielle suisse du
commerce (FOSC). Après l’expiration de la période de deux mois d’attente requise par la loi, la réduction du capital-
actions sera exécutée et enregistrée au registre du commerce.

S
A
Ç
N
A
R
F

Majorité requise pour l’approbation de la proposition

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 un vote en faveur de l’approbation de l’annulation de 18.5 millions actions,
de la réduction du capital action de la société de CHF 4,625,000 ainsi que de l’amendement des statuts de la société en
conséquence.

Point 5

Modification et reformulation du Stock Incentive Plan 2006, y compris l’augmentation du nombre d'actions qui
peuvent être émises dans le cadre du Plan

Proposition

Le Conseil d’administration propose que les actionnaires approuvent les modifications et la reformulation du
Stock Incentive Plan 2006 de Logitech International S.A. (le “Plan”) afin d’autoriser l’émission de 9,000,000 actions
supplémentaires dans le cadre du Plan, d’améliorer le gouvernement d’entreprise de la Société et ses pratiques en la
matière.

Explication

Le Conseil d’administration estime qu’un élément clé de la capacité de la Société à maintenir son succès réside
dans la qualité de son personnel. Il estime de surcroit que sa réussite future dépend de sa capacité à attirer et conserver
des employés de haute qualité. Le Conseil d’administration considère que la capacité durable d’octroyer le droit de
recevoir des participations dans la Société (to grant equity award) est un instrument de recrutement et de conservation
des employés qui est nécessaire et essentiel à la Société ; il lui permet de recruter et de conserver des employés, des
gérants et des directeurs de haute qualité essentiels au succès de la Société.

Le Stock Incentive Plan 2006 est le seul plan d’intéressement des employés de la Société (sous réserve de son
Inducement Equity Plan 2012 - dont toutes les actions autorisées ont déjà été attribuées - et de ses Plans d’Achat
d’Actions pour les Employés). Au 30 juin 2012, il reste environ 4,8 millions d’actions pouvant être émises dans le
cadre du Plan. Nous estimons que ces réserves seront épuisées avant l’Assemblée énérale annuelle de 2014 malgré le
fait que, pour protéger les intérêts des actionnaires, la société gère son programme en utilisant ses ressources de
manière optimum.

Le Comité de Rémunération prévoit que les actions supplémentaires requises dans le cadre de cette proposition
permettront à la Société de renforcer son plan d’intéressement jusqu’à la fin de l’exercice 2016, et de répondre aux
besoin découlant des octrois prévus en relation avec le recrutement, le personnel actuel et en fournissant une flexibilité

raisonnable pour les acquisitions. Le tableau ci-dessous détaille les actions actuellement disponibles selon le Plan
d’une part ainsi que les actions qui seront disponibles si cette proposition est approuvée:

Actions
____________________
(en millions)

2006 Stock Incentive Plan – Actions

Action initialement autorisées par la Plan
Actions supplémentaires autorisées lors de l'Assemblée générale 2009
Actions attribuées de juin 2006 au 30 juin 2012, déduction faite des annulations
Actions supplémentaires demandées dans le cadre de cette proposition
Total des actions disponibles pour être l’émission au 30 juin 2012 (si la proposition est acceptée)

14.0
3.5
(12.7)
9.0
13.8

Le Conseil d’administration ne propose pas une augmentation du capital conditionnel de la Société pour les
plans d’intéressement des collaborateurs de Logitech. Depuis 2000, Logitech a utilisé les actions détenues en trésorerie
et acquises dans le cadre de ses programmes de rachat d’actions afin de couvrir ses obligations d’émission liées aux
octrois dans le cadre des plans d’intéressement des collaborateurs, y compris les octrois effectués selon le Plan. Le
Conseil d’administration prévoit de continuer à procéder ainsi.

Logitech offre des plans d’intéressement à ses collaborateurs depuis le début de ses activités dans les années
1980. La rémunération en titres de participation reflète en partie la pratique du marché, spécialement dans la Silicon
Valley, Californie, où la Société a une présence significative. Cependant, il s’agit aussi d’un élément qui fait la
différence en matière de recrutement et de conservation du personnel sur le marché de l’emploi hors des Etats-Unis,
où, historiquement, la rémunération en titres de participation n’était ou n’est pas courante. Le Conseil d’administration
considère qu’avoir la capacité d’offrir un intéressement dans le cadre de la rémunération des employés continue à être
un élément clé du programme de rémunération de Logitech et de son succès à long terme.

Changements importants du Plan

Le résumé suivant souligne les changements importants du Plan qui sont proposés.

 Le nombre d’actions qui peuvent être émises dans le cadre du Plan a été augmenté de neuf millions

(9,000,000) d’actions supplémentaires, passant ainsi de 17.5 millions d’actions à 26.5 millions d’actions.

 La date d’expiration automatique du Plan a été supprimée.

 La comptabilisation des actions selon le Plan a été modifiée, il prévoit désormais que certaines actions seront
imputées au nombre maximal d’actions réservées pour l’émission et ne seront pas réintégrées au Plan pour de
futurs octrois.

 Le Plan a été modifié pour interdire une modification du prix des options ou des droits à la plus value des

actions - Stock Appreciation Rights (“SARs”)

 Le cercle des bénéficiaires du Plan a été étendu afin de permettre aux consultants d’y participer.

Le descriptif ci-dessous de certains éléments importants du Plan n’est qu’un résumé qui n’a pas de force

probante. Pour plus d’informations, veuillez vous référer au Plan annexé à cette invitation (Annexe A).

Aperçu des dispositions clés du Plan

Veuillez trouver ci-dessous un résumé des dispositions clés du Plan.

Durée du Plan:

Le Plan, tel qu’amendé et reformulé, deviendra effectif à la date à laquelle
les actionnaires approuveront le Plan et déploiera ses effets jusqu’à ce que
le Conseil d’administration y mette fin. Les modifications proposées
s’appliqueront aux nouveaux octrois d’actions aussi bien qu’aux anciens

Participants éligibles:

Actions disponibles:

Catégories

Durée
Limites des ISO:

162(m) Limites relatives aux
actions:

Exercice (vesting)
Interdit:

qui n’ont pas encore été exécutés.

Les employés, les directeurs et les consultants de la Société, d’une société-
mère, d’une filiale ou d’une société affiliée sont admis à recevoir tout type
d’octrois possibles selon le Plan.
Seuls les employés de la Société, d’une société-mère ou d’une filiale sont admis
à recevoir des Incentive Stock Options (ISOs) selon le Plan.
26.5 millions d’actions selon les dispositions du Plan, sous réserve d’ajustements
en cas de changements dans la capitalisation de la Société.
Si les modifications sont approuvées par les actionnaires, environ 13.8 millions
d’actions seront disponibles dans le cadre du Plan (d’après les octrois au 30
juin 2012).

S
A
Ç
N
A
R
F

(1) Options
(2) SARs
(3) Actions bloquées
(4) Unités bloquées (Restricted Stock Units)
Les options et les SARs auront une durée ne pouvant excéder dix ans.
Le nombre d’actions octroyées sous forme d’ISO ne peut excéder le nombre
maximal d’actions réservées pour l’émission.
La section 162(m) du Code requiert, entre autres, que le nombre maximal
d’actions attribué par individu soit approuvé par les actionnaires afin que les
actions attribuées selon le Plan puissent bénéficier d’un traitement fiscal
américain particulier (performance-based compensation treatement) qui lui
permettra de ne pas être soumis à la limite de US $1 million qui s’applique aux
déductions fiscales de certains membres de la Direction.
En conséquence, le Plan limite les octrois individuels comme suit:
(1) Aucun employé individuel ne doit se voir octroyer d’options ou SARs
portant sur plus de 6 millions d’actions de la Société durant un exercice
fiscal ;

(2) Aucun employé individuel ne doit se voir octroyer des actions bloquées
ou Unités bloquées portant sur plus de 4 millions d’actions de la Société
durant un exercice fiscal.

Déterminé par l’administrateur dans les limites exposées dans le Plan.
(1) Octroyer des options ou des SARs à un prix en-dessous du prix du

marché (fair market value) des actions de la Société à la date de l’octroi.

(2) A moins que ce ne soit approuvé par les actionnaires, modifier le prix ou
réduire le prix d’exercice d’un(e) option underwater ou SAR ou échanger
des options underwater ou des SAR contre (i) une nouvelle option ou un
nouveau SAR dont le prix d’exercice est plus bas, (ii) un paiement au
comptant ou (iii) tout autre rémunération.

(3) Ajouter des actions au nombre d’actions disponibles pour l’émission
lorsque (i) les actions couvertes par l’octroi sont remises à titre de
paiement du prix d’achat ou à titre de retenue fiscale sur une option ou
autre; (ii) les actions ne sont pas émises ou remise suite au règlement
d’un SAR ou d’une option en cash et (iii) les actions sont rachetées sur
le marché avec le revenu découlant de l’exercice d’une option

Résumé du Plan

Administration du Plan. Le Conseil d’administration ou le Comité de Rémunération, qui est composé
entièrement de directeurs indépendants (désignés collectivement ci-dessous comme l’administrateur), administre le
Plan. L’administrateur sélectionne les employés, les consultants et les directeurs éligibles, détermine le nombre
d’actions disponibles et, sous réserve des dispositions du Plan, établit les termes et les conditions de chaque accord

d’octroi. L’administrateur peut interpréter le Plan et établir, modifier et abroger toute règle ayant trait au Plan.
L’administrateur peut déléguer à un comité d’un ou plusieurs directeurs de la Société la faculté d’octroyer des
intéressements, dans la mesure permise par les documents de gouvernance d’entreprise de la Société. L’administrateur
peut également adopter des sous-plans et des règles, procédures et formulaires correspondantes afin d’octroyer des
titres à des participants hors des Etats-Unis et de manière conformer aux lois non-américaines.

Réserve d’actions. Le nombre maximal d’actions qui peuvent être émises dans le cadre du Plan s’élève à 26.5

millions d’actions.

Toute attribution d’options ou de SARs visant à se conformer à la section 162 (m) du Code est limitée à un total
de 6 millions d’actions par personne et par année fiscale, et toute attribution d’ actions bloquées ou d’ unités bloquées
visant à se conformer à la Section 162 (m) du Code est limitée à un total de 4 millions d’actions par personne et par
année fiscale.

Toute action qui est l’objet d’un octroi qui expire ou se termine sans avoir été exercé ou avant son règlement,
n’est pas acquise dans sa totalité, est confisquée, ou est remboursée en espèces et sera à nouveau disponible pour une
nouvelle attribution dans le cadre du Plan. Tout équivalent de dividende crédité selon le Plan et payé en espèces ne
doit pas être déduit du nombre d’actions qui pourraient être émises en vertu du Plan.

Les actions suivantes seront imputées sur le nombre maximal d’actions réservées et ne seront pas réintégrées : (i)
les actions couverte par un octroi qui sont remises en paiement du prix d’achat ou à titre de retenue fiscale sur une
option ou autres, (ii) les actions qui ne sont pas émises ou remises à la suite du règlement net d'un SAR ou d’une
option, et (iii) les actions qui sont rachetées sur le marché avec les revenus découlant de l'exercice d'une option.

Eligibilité. Seuls les employés de la Société, de la société-mère ou d’une filiale sont admis à recevoir les ISOs.
Les employés, les administrateurs et les consultants de la Société, de la société-mère, d’une filiale ou d’une société
affiliée sont admis à recevoir des nonstatutory options, SARs, actions bloquées, ainsi que des unités bloquées SAR.
Au 30 juin 2012, la Société comptait environ 7,600 employés, dont huit gérants non salariés et 160 consultants
éligibles dans le cadre du Plan. Cependant, les octrois aux consultants sont limités par les règles de gouvernement
d’entreprise de la Société.

Attributions : Les octrois dans le cadre du Plan peuvent inclure les éléments suivants :

Options. Une option est le droit d’acheter des actions de la Société à un prix d’exercice fixe pendant une période
déterminée. Chaque option fait l’objet d’une convention d’attribution et est soumise aux termes et conditions suivants :

Nombre d’options. L’administrateur déterminera le nombre d’actions visées par une option octroyée à un

participant.

Prix d’exercice. L’administrateur déterminera le prix d’exercice des options octroyées dans le cadre du Plan au
moment où les options seront octroyées, mais le prix d’exercice doit être généralement au moins égal au prix du
marché (fair market value) d’une action de la Société à la date de l’octroi. Le prix du marché d’une action est
généralement déterminé par référence au prix de clôture au SIX Swiss Exchange (pour les options libellées en francs
suisses) ou sur le NASDAQ Global Select Market (pour les options libellées en dollars américains). Le prix du marché
à la date de l’octroi peut également être déterminé sur la base d’une moyenne des prix de négociation lors d’une
période avant ou après la date de l’octroi. Le 30 juin 2012, le prix de clôture d’une action de la Société était de 10.22
CHF sur le SIX Swiss Exchange et de $10.67 aux Etats- Unis sur le NASDAQ Global Select Market.

Exercice de l’option; Moyen de paiement. L’administrateur détermine le moment où les options sont exerçables
et peut, à sa discrétion, dans certaines circonstances, accélérer cette période. Le moyen de paiement des actions émises
suite à l’exercice d’une option est spécifié dans chaque accord d’attribution. Dans la mesure permise par la loi
applicable, le Plan permet le paiement en espèces, en quasi-espèces, en billets à ordre, par d’autres actions (avec
quelques restrictions), en exercice cashless, en net exercice, en toute sorte de combinaison des méthodes précitées de
paiement ou toute autre forme de considération autorisée par la loi applicable.

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Durée de l’option. La durée d’une option est indiquée dans le contrat d’attribution. Toutefois, la durée d’une

option ne peut excéder dix ans. Aucune option ne peut être exercée après l’expiration de sa durée.

Fin de service. Après la fin de la relation de service, un détenteur d’option peut exercer son option pendant la
période de temps déterminée par l’administrateur et indiquée dans le contrat d’attribution. Si aucune période de temps
n’est indiquée dans le contrat d’attribution du participant, un participant peut exercer l’option pendant nonante jours
après la résiliation, dans la mesure où l’option est acquise à la date de résiliation (mais en aucun cas plus tard que
l’expiration du terme d’une telle option tel qu’indiqué dans l’accord d’attribution), à moins que la relation de service
d’un participant se termine pour cause de décès ou d’une invalidité, dans ce cas, le participant (ou, si le participant est
décédé, la succession du participant, le bénéficiaire désigné ou la personne qui acquiert le droit d’exercer l’option par
legs ou héritage) peut exercer l’option, dans la mesure où l’option avait été acquise à la date de la résiliation (ou dans
la mesure où l’acquisition est accélérée en cas de décès du participant), dans un délai d’une année après la date de la
résiliation. Toutefois, à moins que l’emploi d’un participant soit résilié pour juste motif, si un participant est empêché
d’exercer une option dans le délai applicable à cause de questions de compliance en relation avec l’émission des
actions, l’option restera exerçable pendant trente jours dès réception par le participant de la notification de la Société
confirmant que l’option peut être exercée, mais dans tous les cas pas plus tard que l’expiration de la durée de l’option.

Droits à la plus-value des actions (SAR). Un SAR est le droit de recevoir la plus-value des actions de la Société
au prix du marché, entre la date d’octroi et la date d’exercice du SAR. La Société peut s’acquitter de la plus-value au
comptant, avec des actions de la Société, ou par une combinaison des deux, selon la décision de l’administrateur.
Chaque octroi de SAR est matérialisé par une convention d’attribution spécifiant les modalités et conditions de
l’octroi. L’administrateur détermine également le prix d’exercice, les termes et conditions des SARs. Cependant, le
prix d’exercice doit être au moins égal au prix du marché d’une action de la Société à la date de l’octroi, et la durée
d’un SAR ne doit pas dépasser dix ans.

Après la fin du rapport de services, les participants pourront exercer la part acquise de leurs SARs pour la
période déterminée par l’administrateur et prévue dans la convention d’octroi. Si aucune période de temps n’est prévue
dans la convention d’attribution d’un participant, le participant ou, en cas de mort du participant, sa succession ou sa
ou son bénéficiaire aura généralement la faculté d’exercer ses (son) SAR(s) acquis pendant (i) 90 jours après la
cessation de service pour des raisons autres qu’un décès ou une invalidité, et (ii) une année après la cessation de
service due à un décès ou à une invalidité. Les SARs ne peuvent en aucun cas être exercés après l’expiration de leur
durée.

Actions bloquées. Les octrois d’actions bloquées sont des octrois d’actions de la Société conférés conformément aux
modalités et conditions établies par l’administrateur. Chaque octroi d’actions bloquées se manifeste par une convention
d’attribution spécifiant les modalités et conditions de l’octroi. L’acquisition peut être déclenchée par la durée d’un
emploi, l’écoulement du temps ou des objectifs de rendement. L’administrateur déterminera le nombre d’actions
bloquées octroyées à tout participant. L’administrateur détermine également le prix de vente, s’il y en a un, et, à moins que
l’administrateur n’en décide autrement, l’octroi d’actions bloquées non encore acquises est annulé dès la cessation volontaire
ou involontaire de la relation de service entre le participant et la Société pour quelque motif que ce soit, y compris le décès
ou l’invalidité.

Unités bloquées (y compris les unités bloquées basées sur la performance). Les unités bloquées représentent le
droit de recevoir des actions de la Société ou de l’argent au comptant de valeur équivalente aux actions, ou une combinaison
des deux tel que déterminée par l’administrateur. Les unités bloquées sont acquises conformément aux modalités et
conditions établies par l’administrateur, comme présenté dans la convention d’attribution applicable. L’acquisition peut être
déterminée par la durée d’un emploi, l’écoulement de temps ou des objectifs de rentabilité. Les Unités bloquées qui
sont soumises à des objectifs de rentabilité sont désignées comme performance-based restricted stock units. Aucune
condition liée à des objectifs de rentabilité ne peut être basée sur une rentabilité couvrant une période de moins d’une année.
La convention d’octroi peut prévoir une confiscation ou une annulation des unités bloquées, en tout ou en partie, en cas de
cessation de la relation de service entre le participant et la Société.

Critères de performance de la Section 162(m). Les octrois basés sur la performance peuvent, mais ne doivent pas, être
basés sur les critères de performance qui satisfont à la section 162(m) du Code. Dans la mesure où il est prévu de qualifier
les octrois de “octrois basés sur la performance” selon la section 162(m) du Code, les critères de performance seront basés
sur le cours des actions (en cas d’options ou de SAR) ou sur un ou plusieurs des critères suivants (en cas d’actions bloquées
et d‘unités bloquées): reconnaissance/acceptation de la marque, cash flow, cash flow return on investissements, rentabilité,
contrôle des coûts, satisfaction des consommateurs, développement de produits, bénéfice avant intérêts, impôts et
amortissement; bénéfice par action, profit, valeur ajoutée, cash flow disponible, revenus ou revenus nets, revenus avant
impôts sur le revenu, parts de marché, nouveaux produits, résultat d’exploitation ou résultat d’exploitation net, marge
opérationnelle ou marge bénéficiaire, résultat d’exploitation ou résultat d’exploitation net, excellence opérationnelle,
réduction des coûts de production, gamme de produits, programme de diffusion des produits, objectifs d’envois de produits,
qualité, rendement des actifs ou actifs nets, rendement du capital, rendement des capitaux investis, rendement des produits
d’exploitation, rendement des ventes, recettes, ventes, hausse du prix de l’action, alliances stratégiques, rendement total pour
les actionnaires et fonds de roulement. Les objectifs de rentabilité peuvent différer d’un participant à l’autre et d’une
attribution à l’autre et peuvent être appliqués dans toutes les combinaisons possibles. Les objectifs de rentabilité peuvent être
appliqués à la Société dans son ensemble à un département particulier ou à une filiale, soit individuellement, soit dans le
cadre d’une combinaison quelconque, et être mesurés soit en terme absolu soit en terme relatif (y compris en comparaison
avec les résultats des années précédentes et/ou avec un groupe témoin).

Incessibilité des octrois. A moins que l’administrateur n’en ait décidé autrement les rémunérations octroyées selon le
Plan ne sont pas cessibles autrement que par testament, par la désignation d’un bénéficiaire (si une telle désignation est
autorisée par l’administrateur) ou par la loi, et peuvent être exercés seulement par le participant de son vivant. Si
l’administrateur rend un octroi cessible, l’octroi doit contenir les modalités et conditions additionnelles que l’administrateur
considère comme étant appropriées.

Adaptations en cas de modification de la structure du capital. En cas de changement dans les actions de la Société ou
d’autres titres en raison d’un dividende en actions, du fractionnement des actions, d’une combinaison ou d’une
reclassification des actions, d’un dividende extraordinaire au comptant ou en actifs, d’une recapitalisation, d’une
réorganisation ou tout autre événement similaire concernant les actions de la Société ou d’autres titres, l’administrateur fera
les adaptations nécessaires quant au nombre et au type d’actions de la Société ou d’autres titres soumis au Plan - y compris le
nombre maximal d’actions qui peuvent être émises dans le cadre de l’exercice d’un ISO et les limites annuelles du nombre
d’actions qui peuvent être octroyées en relation avec l’attribution d’ISO, ou en relation avec de précédents octrois, et
l’exercice ou le prix d’exercice de précédents octrois, afin de tenir compte des changements intervenus et d’empêcher une
dilution ou une augmentation des bénéfices relatifs aux octrois.

Adaptations en cas de dissolution ou de liquidation. Dès la liquidation ou la dissolution effective de la Société, tout
octroi non exercé prendra fin. L’administrateur peut, à sa discrétion, prévoir qu’un participant aura le droit d’exercer tout ou
une partie de son octroi, y compris les octrois non encore exerçables, avant la réalisation d’une telle mesure.

Adaptations en cas de fusion ou de changement de contrôle. Si la Société fait l’objet d’une fusion, d’un
regroupement ou d’une restructuration, ou de la vente d’une partie substantielle de ses actifs, chaque octroi non payé sera
soumis à la convention d’attribution applicable, laquelle doit prévoir l’une ou plusieurs des clauses suivantes: le
prolongement, la modification ou le remplacement d’octrois non payés; la pleine faculté d’exercer ou l’exigibilité des octrois
non payées (ce qui peut être subordonné à la finalisation de la transaction); ou l’annulation des octrois non payées et le
paiement au titulaire au comptant ou en actions d’un montant équivalent au montant par action que les actionnaires de la
Société sont en droit de recevoir ou de réaliser dans le cadre de la transaction en échange du nombre d’actions relatif à
l’octroi.

Adaptations et fin du Plan. Le Plan demeurera en vigueur jusqu’à ce que le Conseil d’administration y mette fin. De
plus, le Conseil d’administration a le pouvoir de modifier, de suspendre ou de mettre fin au Plan, mais aucun(e)
amendement, modification, suspension ou cessation ne peut porter atteinte aux droits d’un participant titulaire d’un octroi
non payée, à moins qu’il en soit convenu autrement entre le participant et l’administrateur.

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Incidences fiscales fédérales américaines

Les règles fiscales fédérales américaines applicables au Plan selon le Code sont résumées ci-dessous. Ce résumé ne
traite des lois fiscales d’aucune municipalité, d’aucun Etat ou pays hors des Etats-Unis dans lequel/laquelle un participant
réside ou auquel/à laquelle il pourrait être soumis.

Nonstatutory Options. Le titulaire de nonstatutory options n’a aucun revenu imposable au moment où il se voit
octroyé une nonstatutory option. Dès l’exercice de l’option, le titulaire de l’option a un revenu imposable qui se calcule sur
la base de la différence entre le prix du marché au moment de l’exercice et le prix d’exercice. Tout revenu imposable dans le
cadre de l’exercice d’une option par un employé est soumis à une retenue fiscale. La filiale de la Société opérant aux Etats-
Unis a généralement droit à une déduction du même montant que le revenu imposable du titulaire de l’option. Dès que le
titulaire de l’option peut disposer des actions, toute différence entre le prix de vente et le prix d’exercice du titulaire de
l’option, dans la mesure où elle n’est pas considérée comme un revenu imposable comme mentionné plus haut, est traité
comme un gain ou une perte de capital à long ou court terme, selon la période prise en compte.

Droits à la plus-value des actions. Il n’y a aucun revenu imposable lorsqu’un SAR est octroyé à un participant. Dès
l’exercice du droit, le participant aura un revenu imposable d’un montant égal au montant de l’argent reçu au comptant et du
prix du marché de toute action reçue. Tout gain ou toute perte additionnelle au moment d’une disposition ultérieure des
actions sera un gain en capital ou une perte à long ou court terme, selon la période prise en compte.

Logitech Inc., la filiale de la Société opérant aux Etats-Unis, aura généralement droit à une déduction fiscale d’un

montant égal au revenu imposable du participant imposé aux Etats-Unis

Actions bloquées. Un participant n’aura généralement pas de revenu imposable au moment où des actions bloquées
sont octroyées. Au lieu de cela, il aura un revenu imposable lors du premier exercice fiscal durant lequel sa participation en
actions bloquées devient soit (i) librement transmissible, soit (ii) plus soumise à un risque important de déchéance.
Cependant, un détenteur d’actions bloquées peut choisir de comptabiliser un revenu imposable au moment de l’octroi (dans
la mesure où les actions ne lui ont pas encore été remises) à hauteur du prix du marché des actions octroyées moins tout
montant payé pour les actions le jour de leur attribution. Lors de la vente des actions reçues, tout gain ou toute perte, basé(e)
sur la différence entre le prix de vente et le prix du marché à la date du règlement, sera imposé(e) comme un gain en capital
respectivement une perte à long terme ou à court terme, selon la période de détention.

Logitech Inc aura généralement droit à une déduction fiscale égale au montant du revenu imposable du participant à la
date où les actions sont librement cessibles ou ne sont plus soumises à un risque substantiel de déchéance, sous réserve d’une
restriction découlant des dispositions applicables du Code.

Unités bloquées. Un participant n’aura en général pas de revenu imposable au moment où une attribution d’unités
bloquées lui est accordée. Lors de l’exécution de l’attribution, le participant aura normalement un revenu imposable lors de
l’année de la réception d’un montant égal à l’argent au comptant reçu et le prix du marché de toutes les actions non bloquées
reçues. Lors de la vente des actions reçues, tout gain ou perte, basé(e) sur la différence entre le prix de vente et le prix de
marché à la date du règlement, sera imposé(e) comme un gain en capital respectivement une perte à long terme ou à court
terme, selon la période de détention.

Logitech Inc aura généralement droit à une déduction fiscale égale au montant du revenu imposable du participant à la

date du règlement, sauf dans la mesure où cette déduction est limitée par les dispositions applicables du Code.

Rémunération liée à la performance en vertu de l’art. 162(m) du Code. Des règles spéciales limitent la déductibilité
de la rémunération versée à certains dirigeants aux Etats-Unis. Conformément à l’article 162(m) du Code, la compensation
annuelle versée aux hauts dirigeants aux Etats-Unis peut ne pas être déductible dans la mesure où elle dépasse
$ US 1 million. Cependant, Logitech Inc. peut préserver la déductibilité de la rémunération de certains octrois au-delà de
$ US 1 million si les conditions de l’article 162(m) du Code sont remplies. Ces conditions comprennent l’approbation du
Plan par les actionnaires et la fixation du nombre maximum d’octrois annuels par personne. Le Plan a été conçu de manière
à permettre à l’administrateur d’accorder des droits qui peuvent être qualifiés comme étant basés sur la performance aux fins
de satisfaire aux conditions de l’article 162(m) du Code, ce qui permet ainsi à Logitech Inc de continuer à bénéficier d’une

déduction d’impôt fédéral sur le revenu dans le cadre de ces octrois.

Les attributions du nouveau Plan

Le montant et le timing des octrois accordés en vertu du Plan sont déterminés à la seule discrétion de l’administrateur
et ne peuvent donc pas être déterminés à l’avance. Les octrois futurs qui seraient reçus dans le cadre du Plan par des
directeurs généraux et d’autres employés sont discrétionnaires et ne sont donc pas déterminables à ce jour.

Le tableau suivant montre, pour chacun des individus et des groupes indiqués, le nombre total d’actions soumises à des
octrois qui ont été accordés aux individus et aux groupes indiqués ci-dessous en vertu du Plan depuis sa création jusqu’au 30
juin 2012.

Nom de la personne ou du Groupe
Executive Officers
Guerrino de Luca
Gerald P.Quindlen
Erik K.Bardman
Junien Labrousse
Werner Heid
L. Joseph Sullivan

Executive Officers en tant que Groupe (¹)

Daniel Borel
Matthew Bousquette
Erh-Hsun Chang
Kee-Lock Chua
Sally Davis
Neil Hunt
Richard Laube
Monika Ribar

Membres non-exécutifs du Conseil d’administration en tant que Groupe

Tous les employés actuels, y compris les dirigeants autres que les membres exécutifs du
Conseil d’administration, en tant que Groupe

_______________________

Nombre d'actions
sous jacentes à des
octrois
____________________

220,000
1,287,000
218,000
634,750
372,500
365,500

803,500

27,100
42,100
58,100
43,100
57,100
28,600
57,100
42,100
__________________
355,300
__________________

9,975,560

(¹) Inclut Messieurs De Luca, Bardman et Sullivan. M. Darrell est devenu président de la Société le 9 avril 2012 et n'avait pas, au 30 juin 2012, d'actions attribuées
selon le Stock Incentive Plan 2006.

Majorité requise pour l’approbation de la proposition

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 un vote en faveur de l’approbation des modifications et de la
reformulation du Stock Incentive Plan 2006, y compris l’augmentation de neuf millions (9,000,000) d’actions du
nombre d’actions qui peuvent être émises dans le cadre du Plan.

Autorisation de détenir plus de 10% du capital-actions de la Société

Point 6

Proposition

Le Conseil d’administration propose aux actionnaires d'autoriser Logitech à détenir plus de 10 pour cent de ses

propres actions.

Explication

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En droit suisse des sociétés, les actions qui sont rachetées ne sont pas automatiquement annulées, mais sont
détenues dans la trésorerie de la société en attendant soit la décision des actionnaires relative à leur annulation soit leur
réutilisation par la société pour couvrir des obligations d'émission, sous réserve de certaines limites de temps et le
respect de certaines procédures. La responsabilité personnelle des membres du Conseil d’administration peut être
engagée en cas de dommage causé à la société du fait de cette détention de plus de 10 pour cent d’actions propres.
L'approbation de cette proposition peut diminuer la responsabilité personnelle potentielle des membres du Conseil
d'administration dans de telles circonstances.

Les actionnaires autorisent la Société à détenir plus de 10 pour cent de ses propres actions, dans la mesure où les
actions propres dépassant le seuil des 10 pour cent de détention sont rachetées dans l’optique de les annuler lors de
l’Assemblée générale ordinaire 2012 et/ou de 2013 de la Société. Depuis l’approbation de la Commission des Offres
Publiques d'Acquisition et de la SIX Swiss Exchange le 11 novembre 2011, la Société a procédé à des rachats selon
son programme de rachat d’actions via une deuxième ligne de négoce qui a permis à la Société de se conformer à ses
obligations selon les lois fiscales suisses dans le cadre du rachat d’actions en-dessus du seuil des 10 pour cent.

Au 30 juin 2012, Logitech détenait environ 18.6 pour cent de ses propres actions dans sa trésorerie et selon les
plans de rachat d’actions autorisés par le Conseil d’administration, la Société peut acquérir jusqu’à environ US $4.4
millions d’actions supplémentaires. Même après avoir tenu compte de l’annulation d’actions prévue au Point 4, si elle
est approuvée par les actionnaires, et si tous les autres facteurs restent constants, la Société continuera de détenir
approximativement 9.8 pour cent de ses propres actions en trésorerie. Si la Société poursuit les rachats dans le cadre
du programme de rachat d'actions, elle pourrait à nouveau accumuler des actions de trésorerie représentant près de ou
excédent 10 pour cent de son capital émis.

Afin de fournir à la Société une flexibilité continue dans la gestion de son capital, le Conseil d'administration
sollicite l'autorisation d’amener la Société à détenir plus de 10 pour cent de ses propres actions, dans la mesure où les
actions excédant le seuil de 10 pour cent sont rachetées, via une deuxième ligne de négoce ou autrement, en vue d'être
annulées. Dans le cas d'un vote négatif sur cette proposition par les actionnaires, le Conseil d'administration fera en
sorte que la Société ne dépasse pas le seuil de 10 pour cent d’actions propres.

Majorité requise pour l’approbation de la proposition

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 du Conseil

Le Conseil d’administration recommande de voter en faveur de la décision suivante :

"La Société est autorisée à détenir plus de 10 pour cent de ses propres actions, dans la mesure où les actions
propres dépassant la limite de 10 pour cent sont rachetées, sur une ligne de négoce séparée ou par tout autre
moyen, pour être annulées dans le cadre d’une réduction du capital-actions qui sera proposée lors de
l'Assemblée générale ordinaire de la Société en 2013 et/ou en 2014."

Point 7

Décharge des membres du Conseil d’administration et de la Direction
pour leur activité durant l'exercice 2012

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 2012.

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 leurs activités pendant l'exercice 2012 pour les faits révélés aux actionnaires. Cette décharge exclut des actions en
responsabilité de la part de la Société ou d'actionnaires pour le compte de la Société contre des membres du Conseil
d’administration ou de la Direction pour leur activité pendant l'exercice 2012 portant sur des faits qui ont été portés à la
connaissance des actionnaires. Toutefois, les actionnaires qui n'ont pas voté en faveur de la décharge, ou qui ont acquis
leurs actions postérieurement au vote relatif à la décharge sans en avoir connaissance, ne sont pas liés par le résultat du
vote pendant une période de six mois suivant ce dernier.

Majorité requise pour l’approbation de la proposition

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 leurs activités pendant l'exercice 2012.

Point 8
Diminution de la durée du mandat pour les membres du Conseil d’administration

Proposition

Le Conseil d’administration propose que la durée du mandat de ses membres soit diminuée de trois ans à un an

et que l’article 14, paragraphe 1 des statuts de la Société soit modifié comme suit :

Article 14 (texte actuel):

Article 14 (nouveau texte):

Le Conseil d’administration se compose de trois
membres au moins, nommés par l’assemblée générale
pour une durée de trois ans et indéfiniment rééligibles.

Le Conseil d’administration se compose de trois
membres au moins, nommés par l’assemblée générale
pour une durée d’une année et indéfiniment rééligibles.

Explication

Le but de cette proposition est de réélire tous les administrateurs de la Société chaque année afin d’avoir une plus
grande flexibilité dans le choix et la composition du Conseil d’administration. L’article 14, paragraphe 1 des Statuts de
la Société tel que proposé définit le cadre juridique y relatif. Les membres du Conseil d’administration qui ont été élus
au cours des deux dernières années pour la durée de trois ans resteront en fonction jusqu’à l’expiration de leur mandat
de trois ans. Si la proposition 8 est acceptée, ce changement sera applicable à compter de l’Assemblée générale
ordinaire de 2012; il sera, en particulier, applicable aux élections de la proposition 9.

Majorité requise pour l’approbation de la proposition

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 de la diminution de la durée du
mandat des membres du Conseil d'administration de trois ans à un an, et la modification de l'article 14, paragraphe 1
des Statuts de la Société qui en découle.

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Point 9

Elections au Conseil d’administration

Le Conseil d’administration est actuellement composé de neuf membres. Chaque administrateur est actuellement
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. Sous le Point 8 de l’ordre du jour, le Conseil
d’administration propose une réduction de la durée du mandat de trois ans à un an dans un souci de flexibilité.

Sur recommandation du Comité de nomination, le Conseil propose d'élire les trois personnes mentionnées ci-
dessous en qualité d'administrateur pour une période d’un an si le Point 8 est approuvé par les actionnaires et pour une
période de trois ans si le Point 8 n’est pas approuvé, commençant dans tous les cas lors de l'Assemblée générale
ordinaire du 5 septembre 2012. Deux candidats sont actuellement membres du Conseil d’administration. Leur mandat
viendra à échéance le jour de l'Assemblée générale ordinaire, soit le 5 septembre 2012. Le troisième candidat a été
choisi et recommandé par le Comité des Nominations du Conseil d’administration et approuvé par le Conseil en juin
2012 comme candidat à l’élection au Conseil.

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 sur 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.

9.1 Réélection de Erh-Hsun Chang

Proposition: Le Conseil d’administration propose de réélire M. Erh-Hsun Chang au Conseil d’administration
pour une nouvelle période d’un an si le Point 8 est approuvé ou une nouvelle période de trois ans si le Point 8 n’est pas
approuvé.

Erh-Hsun Chang est un membre du Conseil d'administration depuis juin 2006. Jusqu'en avril 2006, M. Chang
occupait la fonction de Senior Vice President, Worldwide Operations et General Manager pour la région de l'Asie de
l'Est. M. Chang a rejoint pour la première fois Logitech en 1986 pour y établir ses opérations à Taiwan. Après avoir
quitté la Société en 1988, il y est revenu en 1995 en qualité de Vice-Président, General Manager pour la région d'Asie
de l'Est et les opérations à l'échelle mondiale. En avril 1997, M. Chang a été nommé Senior Vice President, General
Manager pour la région d'Asie de l'Est et les opérations à l'échelle mondiale. Les autres expériences professionnelles
de M. Chang incluent la fonction de Vice-Président, Manufacturing Consulting auprès de KPMG Peat Marwick, une
société de services professionnels active sur le plan mondial, de 1991 à 1995, ainsi que la fonction de Vice-Président,
Sales and Marketing, Power Supply Division de Taiwan Liton Electronics Ltd., une société taïwanaise active dans le

domaine de l'électronique, en 1995. M. Chang est titulaire d'un BS degree en ingénierie civile de l'Université de Chung
Yuang, à Taiwan, d'un MBA degree en Operations Management de l'Université de Dallas au Texas, ainsi que d'un MS
degree en ingénierie industrielle de l'Université A&M du Texas. M. Chang est également Vice-Président de la filiale
de Logitech à Taiwan. Il a 63 ans et est citoyen taïwanais.

Ayant une grande carrière dans l’opérationnel, la fabrication ainsi que les ventes et le marketing, en particulier à
Taiwan et en Chine, M. Chang apporte sa grande expertise en matière de fabrication et d’opérationnel, ainsi qu’un
savoir-faire important dans le domaine des affaires à Taiwan et en Chine.

Il siège actuellement au Comité d’Audit. Le Conseil d'administration a déterminé qu'il est un administrateur

indépendant.

9.2 Réélection de Kee-Lock Chua

Proposition: Le Conseil d’administration propose de réélire M. Kee-Lock Chua au Conseil d’administration
pour une nouvelle période d’un an si le Point 8 est approuvé ou une nouvelle période de trois ans si le Point 8 n’est pas
approuvé.

Kee-Lock Chua est Président et Chief Executive Officer de Vertex Group, un groupe de venture capital ayant son
siège à Singapour. Avant de rejoindre le groupe Vertex en septembre 2008, M. Chua était, de 2006 à 2008, Président
et membre exécutif du Conseil d'administration de Biosensors International Group, Ltd., une société qui produit des
appareils médicaux utilisés dans le domaine de la cardiologie et pour des interventions critiques. Précédemment, de
2003 à 2006, M. Chua était Managing Director de Walden International, une société de venture capital ayant son siège
aux Etats-Unis. De 2001 à 2003, M. Chua a exercé la fonction de Deputy President de NatSteel Ldt., une société de
produits industriels de Singapour active en Asie-Pacifique. De 2000 à 2001, M. Chua était Président et Chief Executive
Officer de Intraco Ltd., une société active dans le négoce et la distribution cotée à Singapour. Avant de rejoindre
Intraco, M. Chua était Président de MediaRing.com Ldt., une société cotée à Singapour qui fournit des services de
voice-over-Internet. Il siège aux Conseils de SHC Capital Ltd. et Yongmao Holdings Limited (où il est lead
independent director), toutes deux cotées en bourse à Singapour. M. Chua détient un BS degree en ingénierie
Mécanique de l’Université de Wisconsin et un MS degree en ingénierie de l’Université Stanford en Californie. Il a 51
ans et est citoyen de Singapour.

M. Chua a une grande expertise en matière d’investissement et de leadership, en tant que venture capitalist en
Asie et aux Etats-Unis, ainsi qu’en tant qu’ancien Chief Executive Officer de sociétés cotées en bourse en Asie. Il
apporte au Conseil d’administration du senior leadership, ainsi que des compétences financières et globales. En tant
que membre du Conseil d’administration de sociétés publiques en Asie, et de sociétés privées, il apporte également
son expérience cross-border.

M. Chua siège actuellement au Comité de Rémunération et au Comité de Nomination du Conseil
d'administration. Il est aussi Lead Independent Director de la Société. Le Conseil d'administration a déterminé qu'il
est un administrateur indépendant.

9.3 Election de Didier Hirsch

Proposition: Le Conseil d’administration propose d’élire M. Didier Hirsch au Conseil d’administration pour une

période d’un an si le Point 8 est approuvé ou une période de trois ans si le Point 8 n’est pas approuvé.

Didier Hirsch est le Senior Vice President et le Chief Financial Officer de Agilent Technologies, Inc., une
société spécialisée dans les mesures et un leader de la technologie de l’analyse chimique, des sciences du vivant, de
l’électronique et de la communication. Il est au sein d’Agilent depuis 1999 et a siégé en tant que Chief Accounting
Officer de novembre 2007 à juillet 2010 et Chief Financial Officer par interim d’avril 2010 jusqu’à ce qu’il soit promu
à son poste actuel en juillet 2010. M. Hirsch a siégé également en tant que Vice-Président, Corporate Controllership
and Tax au sein d’Agilent de 2006 jusqu’à juillet 2010, Vice-Président et Controller d’avril 2003 à octobre 2006, et
Vice-Président et Trésorier de septembre 1999 à avril 2003. M. Hirsch a rejoint la société Hewlett-Packard en 1989 et

il a siégé en tant que Directeur des Finances et de l’Administration de Hewlett-Packard-Europe, Moyen-Orient et
Afrique (EMEA) de 1996 à 1999, Directeur des Ressources Humaines de Hewlett-Packard EMEA de 1998 à 1999,
Directeur des Finances et de l’Administration de Hewlett-Packard Asie-Pacifique de 1993 à 1996, et Directeur des
Finances et de l’Administration de Hewlett-Packard France de 1989 à 1993. Avant Hewlett-Packard, M. Hirsch a
travaillé dans des postes dans le domaine financier au sein de Valeo Inc., Gemplus S.C.A., SGS-Thomson
Microelectronics, I.B.H. Holding S.A., Bendix Corporation et Ford Motor. Il siège au Conseil d’administration
d’International Rectifier, un fournisseur de technologie pointue de gestion d’énergie, coté à la bourse de New York
(NYSE). M. Hirsch a un MS degree en Computer Sciences de l’Université de Toulouse et un MS degree
d’Administration Industrielle de l’Université de Purdue. Il a 61 ans et est citoyen français.

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En tant que Chief Financial Officer d’une société publique leader en matière de technologie, et avec des
compétences importantes en finance développées au cours de plusieurs décennies d’expérience au sein de sociétés de
technologie et de manufacture aux Etats-Unis, en Europe au Moyen Orient, en Afrique ainsi qu’en Asie-Pacifique,
M. Hirsch apporte au Conseil de l’expérience en matière de leadership, en finance (y compris U.S. GAAP), en
technologie et une expérience globale.

Le Conseil d'administration a déterminé qu'il est un administrateur indépendant.

Majorité requise pour l’approbation de la proposition

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'élection au Conseil de chacun des candidats

mentionnés ci-dessus.

Point 10

Réélection de PricewaterhouseCoopers S.A. en qualité d'organe de révision et ratification de la nomination de
PricewaterhouseCoopers LLP en qualité d’expert-comptable agréé indépendant pour l’exercice 2013.

Proposition

Le Conseil d’administration propose de réélire PricewaterhouseCoopers S.A. en qualité d'organe de révision de
Logitech International S.A. pour une période d'une année et que la nommination PricewaterhouseCoopers LLP en
qualité d’expert-comptable agréé indépendant pour l’exercice 2013 soit ratifiée.

Explication

PricewaterhouseCoopers S.A. ou PwC S.A., sur recommandation du Comité d'Audit du Conseil, est proposé
pour réélection pour une nouvelle période d'une année en qualité d'organe de révision de Logitech International S.A.
PwC S.A. a effectué son premier mandat de révision pour Logitech en 1988.

Le Comité d’Audit a également nomé PricewaterhouseCoopers LLP ou PwC LPP, la filiale américaine de
PwC S.A., en qualité d’expert-comptable agréé indépendant pour l’année fiscale se terminant le 31 mars 2013 pour le
reporting selon la législation américaine sur les valeurs mobilières. Les Statuts de Logitech ne requièrent pas que les
actionnaires ratifient la nomination de PwC LPP en qualité d’expert-comptable agréé indépendant. Cependant,
Logitech soumet la nomination de PwC LPP aux actionnaires pour ratification dans un souci de bonne gouvernance
d’entreprise. Si les actionnaires ne ratifient pas la nomination, le Comité d’Audit réexaminera sa décision. Même si la
nomination devait être ratifiée, le Comité d’Audit se réserve le droit de modifier, à sa discrétion, la nomination de
PwC LPP durant l’année si le Comité devait décider qu’un tel changement est dans l’ intérêt de Logitech et de ses
actionnaires.

Des informations sur les honoraires que Logitech a payés à PwC S.A. et à PwC LLP, ainsi que d'autres
informations concernant PwC S.A. et PwC LLP, 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 PwC S.A. sera présent lors de l'Assemblée générale ordinaire. Il pourra y faire une déclaration et

répondre à vos questions.

Majorité requise pour l’approbation de la proposition

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

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

Recommandation

Le Conseil d’administration recommande de voter en faveur de la réélection de PricewaterhouseCoopers S.A.
en qualité d'organe de révision de Logitech International S.A. et de la ratification de la nomination de
PricewaterhouseCoopers LLP en qualité d’expert-comptable agréé indépendant, chacune pour l'exercice se terminant
le 31 mars 2013.

INFORMATIONS CONCERNANT LE CONSEIL D’ADMINISTRATION ET LE RAPPORT 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 2012. La
version anglaise de cette Invitation et Document d'Information fait foi en cas de divergence avec les autres versions.

*****

24. Juli 2012

An unsere Aktionärinnen und Aktionäre:

Sie sind herzlich eingeladen, an der ordentlichen Generalversammlung 2012 der Logitech International S.A.
teilzunehmen. Die Versammlung findet am Mittwoch, 5. September 2012 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

This page is intentionally left blank.

LOGITECH INTERNATIONAL S.A.

Einladung zur ordentlichen Generalversammlung
Mittwoch, 5. September 2012
14:30 Uhr (Türöffnung um 13:30 Uhr)
Palais de Beaulieu – Lausanne, Schweiz

*****

TRAKTANDENLISTE

A. Berichte

Geschäftsbericht für das am 31. März 2012 zu Ende gegangene Geschäftsjahr

B. Anträge

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1. Genehmigung des Jahresberichtes, des Entschädigungsberichtes, der Konzernrechnung und der

Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2012

2. Konsultative Abstimmung über die Managementvergütung

3. Verwendung des Bilanzgewinns und Ausschüttung von Reserven aus Kapitaleinlagen

3.1

3.2

Verwendung des Bilanzgewinns

Ausschüttung von Reserven aus Kapitaleinlagen

4. Aktienkapitalherabsetzung durch Vernichtung zurückgekaufter Aktien

5. Anpassung und Neuformulierung des Stock Incentive Plan 2006, einschliesslich einer Erhöhung der gemäss

Plan zur Ausgabe zur Verfügung stehenden Anzahl Aktien

6. Genehmigung zum Halten eigener Aktien von mehr als 10 %

7. Entlastung des Verwaltungsrates und der Geschäftsleitung für das Geschäftsjahr 2012

8. Kürzung der Amtsdauer von Mitgliedern des Verwaltungsrates

9. Wahlen in den Verwaltungsrat

9.1

9.2

9.3

Wiederwahl von Herrn Erh-Hsun Chang

Wiederwahl von Herrn Kee-Lock Chua

Wahl von Herrn Didier Hirsch

10. Wiederwahl von PricewaterhouseCoopers AG als Logitech’s Revisionsstelle und Bestätigung der Wahl von
PricewaterhouseCoopers LLP als Logitech’s unabhängigem zugelassenen Revisionsexperten für das
Geschäftsjahr 2013

Apples, Schweiz, 24. Juli 2012

Der Verwaltungsrat

FRAGEN UND ANTWORTEN BETREFFEND DIE ORDENTLICHE GENERALVERSAMMLUNG 2012
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 24. Juli 2012 zur Verfügung.

Die beigelegte Antwortkarte wird Ihnen im Auftrag des Verwaltungsrates von Logitech für die ordentliche
Generalversammlung von Logitech übermittelt. Die Generalversammlung wird am Mittwoch, den 5. September 2012
um 14:30, im Palais de Beaulieu, Rome Room, in Lausanne, Schweiz stattfinden.

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, 30. August 2012, eingetragen sind,
geniessen das Stimmrecht. Zwischen dem 31. August 2012 und dem auf die Versammlung folgenden Tag werden keine
Aktionäre ins Aktienregister eingetragen. Am 30. Juni 2012 waren 120'955'463 Aktien als stimmberechtigt eingetragen,
bei 155'960'117 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 2012 und dem 30.
August 2012 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
wirtschaftlich 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
stimmberechtigter 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.

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

Für die Generalversammlung gibt es kein Quorum. Unter schweizerischem Recht gibt es keine
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 Rue du Sablon 2-4, 1110 Morges, Schweiz, und unser
Verwaltungssitz in den Vereinigten Staaten von Amerika ist in 7600 Gateway Boulevard, Newark, California 94560.
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 2012 zuhanden der Aktionäre, die Einladung und unser Jahresbericht auf Formular 10-K für
das Geschäftsjahr 2012, 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, 11. September 2012, 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.

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 30.
August 2012 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.

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 24. August 2012 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 30. August 2012 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 24. August 2012 mittels beiliegenden Briefumschlags 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, 30. August 2012
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 logitechIR@logitech.com.

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. Dementsprechend senden diese Effektenhändler, trustees oder nominees eine Mitteilung betreffend
die Verfügbarkeit des Stimmmaterials über das Internet (die „Informationsnotiz“) an die wirtschaftlich berechtigten
Aktionäre. Alle diese Aktionäre können das Stimmmaterial auf einer Webseite abrufen, die in der genannten
Informationsnotiz enthalten ist, oder das Stimmmaterial in gedruckter Form anfordern. Die Informationsnotiz 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

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 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?

Wirtschaftlich berechtigte Aktionäre, die ihre Titel über amerikanische oder kanadische Effektenhändler,
ihrem Effektenhändler, trustee oder nominee
trustees oder nominees am 13. Juli 2012 halten, können
Stimminstruktionen erteilen. Zusätzlich hat Logitech mit Hilfe einer Dienstleistungsgesellschaft sichergestellt, dass
eine zusätzliche Abgleichung der Aktienpositionen amerikanischer und kanadischer nominees zwischen dem 13. Juli
und dem 22. August 2012 durchgeführt wird. Der 22. August 2012 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 13. Juli 2012 wirtschaftlich berechtigter Aktionär ist, seine Stimme abgibt aber
nachträglich seine Titel vor dem 22. August 2012 verkauft, werden die Stimminstruktionen annulliert. Wenn ein
amerikanischer oder kanadischer Halter, der am 13. Juli 2012 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 22. August 2012 widerspiegeln.

Wenn Sie nach dem 13. Juli 2012 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 30. August 2012, 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.

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
in blossen
erteilen, wird dieser gemäss den Regeln verschiedener nationaler oder
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 Managementvergütung), Antrag 3 (Verwendung des Bilanzgewinns und
Ausschüttung von Reserven aus Kapitaleinlagen), Antrag 4 (Aktienkapitalherabsetzung durch Vernichtung
zurückgekaufter Aktien), Antrag 5 (Anpassung und Neuformulierung des Stock Incentive Plan 2006, einschliesslich
einer Erhöhung der gemäss Plan zur Ausgabe zur Verfügung stehenden Anzahl Aktien), Antrag 6 (Genehmigung zum
Halten eigener Aktien von mehr als 10 %), Antrag 8 (Kürzung der Amtsdauer von Mitgliedern des Verwaltungsrates)
und Antrag 9 (Wahlen in den Verwaltungsrat). Alle anderen Anträge erachten wir als Routine. Sämtliche
Stimmenthaltungen durch nominees werden als nicht abgegebene Stimmen gezählt.

regionaler Börsen

Bis wann kann ich meine Stimminstruktionen einreichen?

Wenn Sie Ihre Aktien über ein amerikanisches oder kanadisches Institut halten, können Sie bis am 30. August

2012, 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 a) über das Internet oder das Telefon (einzig die letzte
Internet- oder Telefoninstruktion, welche vor der Generalversammlung übermittelt wird, ist massgebend), b) durch
Einsendung einer neuen, vollständig ausgefüllten Stimmkarte, die ein späteres Datum trägt als die vorhergehende und
c) durch persönliche Teilnahme an der Generalversammlung, wenn Sie von Ihrem nominee eine Vollmacht erhalten,
ändern. 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.

Wie kann ich einen separaten Satz des Stimmmaterials bekommen oder einen einzigen Satz für meinen
Haushalt in den Vereinigten Staaten von Amerika verlangen?

Wir haben ein von der SEC genehmigtes Verfahren namens „householding“ für Aktionäre in den Vereinigten
Staaten von Amerika eingeführt. Gemäss diesem Verfahren werden Aktionäre, welche die gleiche Adresse und den
gleichen Nachnamen haben und nicht an der elektronischen Zustellung des Stimmmaterials teilnehmen, nur eine
Kopie der Informationsnotiz und unseres Jahresberichts und des Informationsmaterials erhalten, sofern nicht einer
oder mehrere dieser Aktionäre uns benachrichtigen, dass sie auch weiterhin je ein individuelles Exemplare zu erhalten
wünschen. Dieses Verfahren verringert unsere Druck- und Versandkosten. Jeder amerikanische Aktionär, der am
Householding teilnimmt, wird auch weiterhin eine separate Stimmkarte erhalten bzw. in Anspruch nehmen können.

Sollten Sie zurzeit eine separate Informationsnotiz, Informationsmaterial oder Jahresberichts zu erhalten

wünschen, bitten wir Sie, das zusätzliche Exemplar bei unserem mailing agent, Broadridge, per Telefon unter +1-800-
579-1639 oder per E-mail unter sendmaterial@proxyvote.com zu verlangen. Sollten Aktionäre in Ihrem Haushalt
einen separaten Jahresbericht und Informationsmaterial in Zukunft zu erhalten wünschen, können diese unsere
investor relations group unter +1-510-713-4220 anrufen oder an investor relations, 7600 Gateway Boulevard, Newark,
California 94560 schreiben. Sie können auch eine E-mail an unsere
investor relations group an
logitechIR@logitech.com senden. Andere Aktionäre, die mehrere auf ihren Namen lautende Konti haben oder die eine
Adresse mit anderen Aktionären teilen, können uns ermächtigen, den Versand von mehreren Jahresberichten und
Informationsmaterialien einzustellen indem sie an investor relations schreiben oder anrufen.

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.

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
Empfehlungen des Verwaltungsrates gestimmt.

Gesuche zum Erhalt von Stimminstruktionen (Proxy Solicitation)

Wir werden die Kosten tragen, die mit der Einladung zur Abgabe von Stimminstruktionen verbunden sind. Wir
haben D.F. King & Co., Inc. beauftragt, Stimminstruktionen einzuholen für eine Gebühr von US$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 US$5.00 pro Anruf zuzüglich angemessener Spesen. In

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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 2012

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
die Traktandenliste der Generalversammlung zu setzen. Solche Vorschläge sind vom Verwaltungsrat in die
Generalversammlungsdokumentation einzuschliessen. Ein solcher Antrag ist schriftlich zu stellen, muss schriftlich
erläutert werden und nicht später als 60 Tage vor der Generalversammlung dem Verwaltungsrat eingereicht werden.
Diese Frist ist für die Generalversammlung vom 5. September 2012 am 6. Juli 2012 abgelaufen. Dennoch 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 2013

Bis spätestens am 5. Juli 2013 kann ein eingetragener Aktionär, der die obgenannten Mindestzahlen von Aktien
hält, verlangen, dass ein Punkt für die Generalversammlung 2013 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 2013 einreichen. Solche Vorschläge sind bis zum 26. März
2013 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
als solche anerkannt. Wenn Sie nicht
im Aktienregister eingetragen sind, können Sie demnach keine
Traktandumsvorschläge unterbreiten.

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 2012

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 2012

Antrag

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

Konzernrechnung und der Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2012.

Erläuterungen

Die Konzernrechnung und die Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2012 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 Informationsmaterial sind auf dem Internet
auf http://ir.logitech.com abrufbar.

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
Annahme dieses Antrags begründet keine Genehmigung oder Ablehnung der einzelnen im Jahresbericht, im
Entschädigungsbericht, in der Konzernrechnung und der Jahresrechnung für das Geschäftsjahr 2012 aufgeführten
Punkte.

PricewaterhouseCoopers AG, die Revisionsstelle der Logitech, empfiehlt den Aktionären ohne Vorbehalt, die
Konzernrechnung und die Jahresrechnung 2012 zu genehmigen. PricewaterhouseCoopers AG ist der Ansicht, "dass die
Konzernrechnung für das am 31. März 2012 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.

Empfehlung

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

Konzernrechnung und die Jahresrechnung der Logitech International S.A. für das Geschäftsjahr 2012 zu genehmigen.

Antrag 2

Konsultative Abstimmung über die Managementvergütung

Antrag

Der Verwaltungsrat beantragt, dass die Aktionäre im Rahmen einer konsultativen Abstimmung die Vergütung
des Managements von Logitech, wie im Bericht über die Managementvergütung für das Geschäftsjahr 2012
offengelegt, genehmigen.

Erläuterungen

Anlässlich der ordentlichen Generalversammlungen 2009 und 2010 von Logitech beantragte der Verwaltungsrat
den Aktionären die Entschädigungsphilosophie, -politik und -praktiken der Logitech, wie sie im Kapitel
"Compensation Discussion and Analysis" des Entschädigungsberichts erläutert sind, 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. Dieser Antrag, allgemein auch als „say-on-pay“ Antrag bekannt, gab unseren
Aktionären die Möglichkeit, ihre Ansichten betreffend unserer Entschädigungspraxis im Ganzen kund zu tun.

Seit letztem Jahr ist eine say-on-pay Konsultativabstimmung für alle Publikumsgesellschaften, einschliesslich
Logitech, die den anwendbaren amerikanischen proxy statement rules unterstehen, verbindlich. Letztes Jahr haben die
Aktionäre einen Antrag genehmigt, wonach diese Abstimmung jährlich erfolgen soll. Dementsprechend beantragt der
Verwaltungsrat den Aktionären im Rahmen einer konsultativen Abstimmung, die Entschädigung für die leitenden
Angestellten von Logitech, die im Entschädigungsbericht, einschliesslich der Kapitel "Compensation Discussion and
Analysis", "Summary Compensation table" und der dazugehörenden Entschädigungsübersichtstabellen, Anhänge und
Erläuterungen, erwähnt sind, zu genehmigen. Diese Abstimmung soll nicht spezifische Punkte der Entschädigung
oder der genannten leitenden Angestellten thematisieren, sondern vielmehr die Gesamtentschädigung der genannten
leitenden Angestellten und die Philosophie, Politik und Praktiken, wie sie im Entschädigungsberichts erläutert sind,
adressieren.

Diese konsultative Abstimmung ist daher nicht verbindlich. Trotzdem wird die konsultative Abstimmung uns
Informationen betreffend die Zufriedenheit der Aktionäre mit unserer Entschädigungsphilosophie, -politik und –
des Verwaltungsrates beim Festlegen zukünftiger
praktiken
Entschädigungspläne für leitende Angestellte sodann berücksichtigen kann. Der Entschädigungsausschuss wird im
Falle eines bedeutenden negativen Abstimmungsresultats versuchen, dessen Ursachen festzustellen.

liefern, was der Entschädigungsausschuss

Wie im Kapitel "Compensation Discussion and Analysis" des Entschädigungsberichts 2012 erläutert, hat
Logitech sein Entschädigungsprogramm derart gestaltet, um die entscheidende Anzahl leitender Angestellter, Manager
und Mitarbeitende für die Gesellschaft zu gewinnen, zu behalten und zu einer langfristigen Zusammenarbeit zu
motivieren und dadurch der langfristige Erfolg der Gesellschaft sicherzustellen. Im Besonderen hat Logitech seinen
Entschädigungsplan für leitende Angestellte derart gestaltet um:



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
jedoch unter
Gesamtentschädigung von Logitech’s Geschäftsergebnis abhängig zu machen,
Aufrechterhaltung eines Kontrollsystems zur Vermeidung des Eingehens unangebrachter Risiken;

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 leitende Position und erbrachte 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 2012
ausbezahlt wurden, sind ebenfalls im Entschädigungsbericht dargelegt.

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.

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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.

Empfehlung

Der Verwaltungsrat beantragt, dass die Generalversammlung mittels konsultativer Abstimmung die an die
leitenden Angestellten von Logitech gezahlten Entschädigungen, wie sie im Entschädigungsbericht, einschliesslich der
Kapitel "Compensation Discussion and Analysis", "Summary Compensation table" und der dazugehörenden
Entschädigungsübersichtstabellen, Anhänge und Erläuterungen, erwähnt sind, genehmigt.

Verwendung des Bilanzgewinns und Ausschüttung von Reserven aus Kapitaleinlagen

Antrag 3

3.1 Verwendung des Bilanzgewinns

Antrag

Der Verwaltungsrat beantragt, den Betrag des Bilanzgewinns von CHF 460,919,135 (US $482,397,967 zum

Wechselkurs vom 30. Juni 2012) wie folgt zu verwenden:

Ende Geschäftsjahr am 31. März 2012
(in KCHF)

Gewinnvortrag zu Beginn des Geschäftsjahres 2012
Verwendung des Gewinnvortrages gemäss Beschluss der Generalversammlung 2011 - Dividende
Zuweisung an die Reserve für eigene Aktien
Nettogewinn des Geschäftsjahres 2012
Gewinnvortrag zur Verfügung der Generalversammlung zum Ende des Geschäftsjahres 2012

CHF 507,730
—
(51,880)
5,069
CHF 460,919

Nicht verwendeter Gewinn vor Zuweisungen
Beantragte Zuweisung an andere allgemeine Reserven für eigene Aktien
Beantragte Zuweisung an die allgemeine Reserve
Vortrag des nicht verwendeten Gewinns

Andere allgemeine Reserven für eigene Aktien vor Zuweisungen
Beantragte Zuweisung des nicht verwendeten Gewinns
Vortrag andere allgemeine Reserven für eigene Aktien

Allgemeine Reserven vor Zuweisungen
Beantragte Zuweisung des nicht verwendeten Gewinns
Vortrag der allgemeinen Reserven

Reserve für eigene Aktien aus Kapitaleinlagen vor Zuweisungen
Beantragte Zuweisung an freie Reserven aus Kapitaleinlagen
Vortrag Reserve für eigene Aktien aus Kapitaleinlagen

Allgemeine Reserve aus Kapitaleinlagen vor Zuweisungen
Beantragte Zuweisung an freie Reserven aus Kapitaleinlagen

Vortrag allgemeine Reserven aus Kapitaleinlagen

CHF 460,919
(116,070)
(9,580)
CHF 335,269

CHF 217,375
116,070
CHF 333,445

CHF

—
9,580
9,580

CHF 116,070
(116,070)
—

CHF

9,580
(9,580)

CHF

—

Erläuterungen

Gemäss Schweizerischem Gesellschaftsrecht muss die Generalversammlung bei jeder jährlichen ordentlichen
Generalversammlung über Annahme oder Ablehnung in Bezug auf die Verwendung des Bilanzgewinns abstimmen.
Der Bilanzgewinn, über den die Aktionäre der Logitech an der ordentlichen Generalversammlung 2012 verfügen
können, ist der Bilanzgewinn der Logitech International S.A., der Holdinggesellschaft von Logitech.

Der Verwaltungsrat beantragt

in nachstehendem Antrag 3.2, dass die Gesellschaft anstatt einer
Dividendenausschüttung aus dem verfügbaren Bilanzgewinn eine Rückzahlung von zusätzlich in die Reserven aus
Kapitaleinlagen eingezahltem Kapital vornimmt. Damit die Reserven aus Kapitaleinlagen für diese Ausschüttung zur
Verfügung stehen, beantragt der Verwaltungsrat die Reserven für eigene Aktien sowie die allgemeine Reserve, welche
aus den Reserven aus Kapitaleinlagen gebildet wurde, aufzulösen, und diese Reserve neu aus dem Bilanzgewinn zu
bilden sowie den dann der ordentlichen Generalversammlung zur Verfügung stehenden Bilanzgewinn im Betrag von
CHF 335,268,321 vorzutragen.

Der Verwaltungsrat beantragt den Bilanzgewinn vorzutragen, da er 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.

Sollte dieser Antrag von den Aktionären abgewiesen werden, wird der Verwaltungsrat diesen Entscheid
berücksichtigen, den nachstehenden Antrag 3.2 zurückziehen und 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 2012

zuzustimmen.

3.2 Ausschüttung von Reserven aus Kapitaleinlagen

Antrag

Der Verwaltungsrat beantragt, dass ein Betrag von CHF 125,650,814 (US $131,506,142 zum Wechselkurs vom
30. Juni 2012) der Reserven aus Kapitaleinlagen der Gesellschaft als freie Reserven umgebucht werden und diese
freien Reserven an die Aktionäre im Betrag von etwa CHF 0.81 pro Aktie (US $0.84 pro Aktie zum Wechselkurs vom
30. Juni 2012)* bis zum Gesamtbetrag von CHF 125,650,814 wie folgt ausgeschüttet werden:

Ende Geschäftsjahr am 31. März 2012
(Zahlen in tausend)

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Freie Reserven aus Kapitaleinlagen vor Zuweisungen
Beantragte Zuweisung an Reserven für eigene Aktien aus
Kapitaleinlagen
Beantragte Zuweisung an allgemeine Reserven aus Kapitaleinlagen
Beantragte Ausschüttung aus Kapitaleinlagen
Vortrag freie Reserven aus Kapitaleinlagen

CHF

—

116,070
9,580
(125,650)
—

CHF

Es wird keine Ausschüttung für eigene Aktien der Gesellschaft oder ihrer Tochtergesellschaften vorgenommen.

Die Auszahlung wird für den 18. September 2012 erwartet.

Dieser Antrag wird zurückgezogen, sofern der vorstehende Antrag 3.1 nicht genehmigt wird.

Erläuterungen

Der Verwaltungsrat beantragt dass die Gesellschaft anstatt einer Dividendenausschüttung aus dem verfügbaren
Bilanzgewinn eine Rückzahlung von zusätzlich in die Reserven aus Kapitaleinlagen eingezahltem Kapital vornimmt.
Diese Rückzahlung von zusätzlich eingezahltem Kapital stellt eine einmalige Ausschüttung dar und hat zu tun mit
dem Rückgang des Aktienpreises der Gesellschaft während dem Geschäftsjahr 2012, der Verfügbarkeit von zusätzlich
eingezahltem Kapital und der Gelegenheit, unseren Aktionären für ihre Treue gegenüber der Gesellschaft zu danken.

* Berechnet am 30. Juni 2012 basierend auf 155,960,117 ausgegebenen Aktien, ohne eigene Aktien. Ausschüttungsbe-
rechtigte Aktien sind alle ausgegebenen Aktien, ausser die eigenen Aktien, die Logitech International S.A. am Tag vor
der Zahlung des Ausschüttungsbetrages hält.

Gemäss dem günstigen zurzeit geltenden Schweizerischen Steuerrecht und

im Gegensatz zu
Dividendenzahlungen aus dem Bilanzgewinn unterliegen Rückzahlungen von zusätzlich in die Reserven aus
Kapitaleinlagen eingezahltem Kapital nicht der Schweizerischen Verrechnungssteuer.

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

Unter der Vorraussetzung, dass vorstehender Antrag 3.1 genehmigt wurde, empfiehlt der Verwaltungsrat, dem
Antrag auf Umbuchung eines Betrages von CHF 125,650,814 der Reserven aus Kapitaleinlagen der Gesellschaft als
freie Reserven und der Ausschüttung dieser freien Reserven an die Aktionäre im Betrag von etwa CHF 0.81 pro
Aktie* bis zum Gesamtbetrag von CHF 125,650,814 zuzustimmen.

Aktienkapitalherabsetzung durch Vernichtung zurückgekaufter Aktien

Antrag 4

Antrag

Der Verwaltungsrat beantragt, 18.5 Millionen zurückgekaufte Aktien gemäss dem vom Verwaltungsrat im
September 2008 genehmigten und im November 2011 angepassten Aktienrückkaufprogramm zu vernichtet, das
Aktienkapital der Gesellschaft um CHF 4,625,000 von CHF 47,901,655 auf CHF 43,276,655 herabzusetzen und die
Statuten der Gesellschaft wie folgt anzupassen:

Artikel 3 (Aktueller Text):

Artikel 3 (Neuer Text):

Das Aktienkapital beträgt CHF 47,901,655 (Schweizer
Franken siebenundvierzigmillionen neunhunderteintau-
send sechshundertfünfundfünfzig) und ist vollständig
einbezahlt.

Das Aktienkapital beträgt CHF 43,276,655 (Schweizer
Franken dreiundvierzigmillionen zweihundertsechsund-
siebzigtausend sechshundertfünfundfünfzig) und ist voll-
ständig einbezahlt.

Es ist eingeteilt in 191,606,620 (einhunderteinundneun-
zigmillionen
sechshundert-
sechshundertsechstausend
zwanzig) Namenaktien mit einem Nominalwert von je
CHF 0.25 (fünfundzwanzig Rappen).

Es ist eingeteilt in 173,106,620 (einhundertdreiundsieb-
zigmillionen einhundertsechstausend sechshundertzwan-
zig) Namenaktien mit einem Nominalwert von je CHF
0.25 (fünfundzwanzig Rappen).

Erläuterung

Im September 2008 genehmigte der Verwaltungsrat ein Aktienrückkaufprogramm, gemäss welchem die
Gesellschaft berechtigt war bis zu US$ 250 Millionen zum Rückkauf eigener Aktien zu verwenden. Im November
erhielt die Gesellschaft von der Schweizerischen Aufsichtsbehörde die Genehmigung, das
2011
Aktienrückkaufprogramm von 2008 derart anzupassen, dass weitere Aktien bis zu einem Totalbetrag von 28.5
Millionen Aktien zur Vernichtung zurückgekauft werden können.

Der Verwaltungsrat beantragt nun daher, dass die Aktionäre die Vernichtung von 18.5 Millionen Aktien, die

gemäss dem angepassten Aktienrückkaufprogramm von 2008 zurückgekauft wurden, genehmigen und das
Aktienkapital wie in Artikel 3 der Statuten der Gesellschaft beschrieben entsprechend herabgesetzt wird.

Die Revisionsstelle PricewaterhouseCoopers AG hat in ihrem für die ordentliche Generalversammlung erstellten
Prüfungsbericht bestätigt, dass die Forderungen der Gläubiger der Gesellschaft trotz der beantragten Herabsetzung des
Aktienkapitals gedeckt wären.

Die Aktienkapitalherabsetzung durch Vernichtung von Aktien kann erst erfolgen, nach dreimaliger Publikation
eines Aufrufs an die Gläubiger gemäss Artikel 733 des Schweizerischen Obligationenrechts. Falls der Antrag
genehmigt wird, werden die Aufrufe an die Gläubiger nach der ordentlichen Generalversammlung im Schweizerischen
Handelsamtsblatt publiziert. Nach Verstreichen der gesetzlichen Wartefrist von zwei Monaten wird die
Aktienkapitalherabsetzung vollzogen und im Handelsregister vermerkt.

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 Vernichtung von 18.5 Millionen Aktien, der
Aktienkapitalherabsetzung der Gesellschaft im Umfang von CHF 4,625,00 und der entsprechenden Anpassung der
Statuten der Gesellschaft zuzustimmen.

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Antrag 5

Anpassung und Neuformulierung des Stock Incentive Plan 2006, einschliesslich einer Erhöhung der gemäss
Plan zur Ausgabe zur Verfügung stehenden Anzahl Aktien

Antrag

Der Verwaltungsrat beantragt den Aktionären eine Anpassung und Neuformulierung des Stock Incentive Plans
2006 (der "Plan") der Logitech International S.A. zu genehmigen, damit neun Millionen zusätzliche Aktien für die
Ausgabe unter dem Plan zur Verfügung stehen, die corporate governances practices der Gesellschaft verbessert
werden sowie weitere best practices eingeführt werden können.

Erläuterung

Der Verwaltungsrat geht davon aus, dass ein wesentlicher Bestandteil des fortwährenden Erfolgs der
Gesellschaft auf der talentierten Belegschaft fusst und dass der zukünftige Erfolg davon abhängt, gut ausgebildete und
talentierte Arbeitnehmer anzuziehen und zu behalten. Der Verwaltungsrat glaubt, dass die fortwährende Fähigkeit
Aktienbeteiligungen zu ermöglichen, ein wesentliches und notwendiges Rekrutierungs- und Treuemittel für die
Gesellschaft darstellt, um gut ausgebildete und talentierte Angestellte, Manager und Direktoren, welche für den Erfolg
der Gesellschaft notwendig sind, zu rekrutieren und zu behalten.

Der Stock Incentive Plan 2006 ist der einzige aktive Mitarbeiterbeteiligungsplan der Gesellschaft (mit
Ausnahme des Inducement Equity Plan 2012, aller genehmigten Aktien, die unter dem Vorbehalt der ausstehenden
Zuteilungen stehen, und des Employee Stock Purchase Plans) gemäss dem am 30. Juni 2012 etwa 4.8 Millionen
Aktien zur Ausgabe ausstehend waren. Wir gehen davon aus, dass diese verbleibende Anzahl Aktien vor der
ordentlichen Generalversammlung 2014 erschöpft sein wird, trotz der Tatsache, dass, um die Interessen der Aktionäre
zu schützen, die Gesellschaft das Programm aktiv betreibt, um die Mittel des Aktienplans so effektiv wie möglich zu
verwenden.

Das Compensation Committee erwartet, dass die zusätzlich beantragten Aktien der Gesellschaft die
Unterstützung des Aktienbeteiligungsprogramms über das Ende des Geschäftsjahres 2016 hinaus ermöglichen werden,

wobei erwartete Zuteilungen im Zusammenhang mit dem Anstellen, Behalten und Fördern der Angestellten sowie die
Sicherung der nötigen Flexibilität bereits darin enthalten sind. Die nachstehende Tabelle zeigt die zurzeit verfügbaren
Aktien gemäss dem Plan auf, sofern dieser Antrag genehmigt wird:

Aktien
____________________
(in Millionen)

Stock Incentive Plan 2006 – Aktien

Anfänglich genehmigte Aktien gemäss Plan
Zusätzlich genehmigte Aktien anlässlich der Generalversammlung 2009
Zugeteilte Aktien von Juni 2006 bis zum 30. Juni 2012, gekürzt um Annullierungen
Zusätzlich beantragte Aktien gemäss diesem Antrag
Total der zur Ausgabe verfügbaren Aktien am 30. Juni 2012 (bei Genehmigung des Antrags)

14.0
3.5
(12.7)
9.0
13.8

Der Verwaltungsrat beantragt keine Erhöhung des bedingten Kapitals der Gesellschaft für Logitech’s
Aktienbeteiligungsprogramm. Seit dem Jahr 2000 hat Logitech die eigenen Aktien des Aktienrückkaufprogramms
verwendet, um seinen Ausgabeverpflichtungen für die gewährten Mitarbeiteraktien einschliesslich den Zuteilungen
gemäss des Plans nachzukommen. Die Gesellschaft wird dies auf weiterhin so tun.

Logitech hat schon seit den frühen 1980 Jahren Vergütungen an Angestellte in Form von Mitarbeiteraktien
gewährt. Die Verwendung von Aktien als Vergütung entspricht teilweise dem Marktstandard, vor allem in
Kaliforniens Silicon Valley, wo die Gesellschaft eine bedeutende Präsenz hat. Trotzdem ist dies auch ein
Hauptunterscheidungsmerkmal beim Anwerben und Behalten von Angestellten in Arbeitsmärkten ausserhalb der
Vereinigten Staaten von Amerika, wo, historisch gesehen, die Vergütung in Form von Mitarbeiteraktien nicht geläufig
war oder ist. Der Verwaltungsrat geht davon aus, dass die Fähigkeit Vergütungen in Form von Mitarbeiteraktien
anzubieten, ein wesentlicher Bestandteil von Logitech’s Vergütungsprogramm und Langzeiterfolg ist.

Wesentliche Änderungen des Plans

Folgende Übersicht zeigt die beantragten wesentlichen Änderungen des Plans auf:

 Die Anzahl der zur Ausgabe vorgesehen Aktien gemäss den gewährten Zuteilungen unter dem Plan wurden

um neun Millionen zusätzliche Aktien von 17.5 Millionen Aktien auf 26.5 Millionen Aktien erhöht.

 Das automatische Ablaufdatum des Plans wurde gestrichen.

 Die Bestimmung zur Berechnung der Aktien wurde im Plan geändert um vorzusehen, dass gewisse Aktien
der maximal zur Ausgabe zur Verfügung stehenden Anzahl Aktien angerechnet werden und dem Plan für
zukünftige Zuteilungen nicht zurückgegeben werden.

 Der Plan wurde geändert, um eine Preisanpassung für Optionen oder Aktienwertsteigerungsrechten (SARs)

zu verbieten.

 Die Bestimmung des Plans betreffend Anspruchsberechtigung wurde erweitert, um Beratern die Beteiligung

am Plan zu ermöglichen.

Folgende Übersicht betreffend gewisser wesentlicher Merkmale des Plans bezieht sich vollständig auf den Plan,

welcher diesem Informationsmaterial als Anhang A beigefügt ist.

Überblick der wesentlichen Bestimmungen des Plans

Nachfolgend eine Zusammenfassung der wesentlichen Bestimmungen des Plans.

Dauer des Plans:

Der geänderte und neuformulierte Plan wird am Tag der Genehmigung
durch die Aktionäre wirksam und wird in Kraft bleiben, bis ihn der Verwal-
tungsrat aufhebt. Die beantragten Änderungen gelten für neue Zuteilungen
sowie für früher gewährte Zuteilungen, die noch ausstehend sind.

Anspruchsberechtigte:

Verfügbare Aktien als Prämien:

Prämienarten

Laufzeiten der Prämien:
ISO Limiten:

162(m) Aktienlimiten:

Ausübung (vesting):
Nicht gestattet sind:

Angestellte, Direktoren und Berater der Gesellschaft, einer Muttergesell-
schaft, einer Tochtergesellschaft oder einer Zweigniederlassung sind gene-
rell berechtigt, jede Art von Prämie, die der Plan anbietet, zu erhalten.
Nur Angestellte der Gesellschaft, einer Muttergesellschaft oder einer Tochter-
gesellschaft sind berechtigt, incentive stock options (ISOs) gemäss dem Plan zu
erhalten.
26.5 Millionen Aktien während der Dauer des Plans, vorbehältlich Anpassungen
im Falle gewisser Änderungen des Gesellschaftskapitals.
Sofern die Änderungen durch die Aktionäre genehmigt werden, stehen etwa
13.8 Millionen Aktien zur Gewährung von neuen Prämien gemäss dem Plan
zur Verfügung (basierend auf den bis zum 30. Juni 2012 gewährten Prämien).

(1) Optionen
(2) SARs
(3) Gesperrte Aktien
(4) Gesperrte Stock Units
Optionen und SARs werden Laufzeiten von höchstens zehn Jahren haben.
Höchstens die zur Ausgabe maximal vorgesehene Anzahl Aktien kann als ISOs
gemäss Plan gewährt werden.
Section 162(m) des Codes verlangt, unter anderem, dass die grösste Anzahl
Aktien, die einem Einzelnen zugeteilt wird, durch die Aktionäre genehmigt
werden muss, damit die gemäss Plan gewährten Prämien als leistungsbezogene
Vergütung behandelt werden können, und somit nicht unter die Grenze von US
$ 1 Million betreffend steuerabzugsfähigen Vergütungen, die gewissen spezifi-
schen leitenden Angestellten gezahlt wurden, fallen .
Dementsprechend beschränkt der Plan einzelne Prämien wie folgt:
(1)

keine Prämien in Form von Optionen oder SARs, die mehr als 6 Millio-
nen der Aktien der Gesellschaft betreffen, können einem einzelnen Ange-
stellten in einem Geschäftsjahr gewährt werden; und

(2)

keine Prämien in Form von gesperrten Aktien oder gesperrten Stock
Units, die mehr als 4 Millionen der Aktien der Gesellschaft betreffen,
können einem einzelnen Angestellten in einem Geschäftsjahr gewährt
werden.

Festgelegt durch den Verwalter im Rahmen der im Plan vorgesehenen Limiten.
(1) Gewähren von Optionen oder SARs zu einem tieferen Preis als dem Ver-
kehrswert (fair market value) der Aktien der Gesellschaft am Datum der
Zuteilung.

(2) Sofern nicht durch die Aktionäre genehmigt, eine Anpassung des Preises
oder Herabsetzung des Ausübungspreises einer underwater option oder
SAR, oder das Ersetzen von underwater options oder SARs mit (i) einer
neuen Option oder SAR mit einem tieferen Ausübungspreis, (ii) einer
Bargeldzahlung oder (iii) jeglicher anderen Prämie.

(3) Hinzufügen von Aktien zur Anzahl der zur Ausgabe zur Verfügung
stehenden Aktien, wenn (i) Aktien, gewährt aufgrund einer Prämie, zur
Zahlung des Kaufpreises oder der Steuereinbehaltung für eine Option
oder Abrechnung einer Prämie abgetreten werden, (ii) Aktien nicht
ausgegeben oder zugestellt werden aufgrund einer Netto-Abrechnung
einer ausstehenden SAR oder Option, und (iii) Aktien auf dem freien
Markt mit dem Erlös, resultierend aus der Ausübung einer Option, zu-
rückgekauft werden.

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Zusammenfassung des Plans

Verwaltung des Plans. Der Verwaltungsrat oder das Compensation Committee, das sich ausschliesslich aus

unabhängigen Verwaltungsräten zusammensetzt (nachstehend zusammen als "Verwalter" bezeichnet), verwaltet den
Plan. Der Verwalter wählt diejenigen Mitarbeiter, Berater und Direktoren aus, welche einen entsprechenden Anspruch
unter dem Plan haben, bestimmt den Umfang der Prämien, welche den Berechtigten zugeteilt werden, und legt,
vorbehältlich der Laufzeiten und Einschränkungen des Plans, die Bedingungen, Konditionen und anderen
Bestimmungen für jede Prämiengewährung fest. Der Verwalter kann den Plan interpretieren und jegliche Regelungen
betreffend den Plan aufstellen, anpassen oder aufheben. Ferner kann der Verwalter an ein Komitee, welches aus einem
oder mehreren Verwaltungsräten besteht, die Möglichkeit zur Gewährung von Prämien,
im durch die
gesellschaftsinternen Dokumente erlaubten Umfang, delegieren. Der Verwalter kann auch Sub-Pläne und damit
zusammenhängende Regel, Abläufe und Formen der Prämienvereinbarung zum Zweck der Gewährung von Prämien
an Teilnehmer ausserhalb der Vereinigten Staaten von Amerika sowie zur Übereinstimmung mit nicht-amerikanischen
Gesetzen verabschieden.

Aktienreserve. Die maximale Anzahl Aktien, die gemäss Plan zur Ausgabe vorgesehen sind, beläuft sich auf

26.5 Millionen Aktien.

Um die Vorgaben von Section 162(m) des Codes zu erfüllen, ist jede Vergabe von Optionen oder SARs auf
gesamthaft 6 Millionen Aktien pro Einzelnem in einem Geschäftsjahr und jede Vergabe von gesperrten Aktien oder
gesperrten stock units auf gesamthaft 4 Millionen Aktien pro Einzelnem in einem Geschäftsjahr begrenzt.

Jegliche Aktien, die im Zusammenhang mit einer Prämie stehen, die ausläuft oder unausgeübt oder vor
Abrechnung endet, die nicht vollständig erfüllt oder verfallen ist, oder mit Bargeld vergütet wird, stehen erneut zur
Ausgabe gemäss Plan zur Verfügung. Jegliche Gegenwerte für Dividenden, die gemäss Plan gutgeschrieben und in
Form von Bargeld ausbezahlt werden, sind nicht der Anzahl Aktien, die gemäss Plan ausgegeben werden könnten,
anzurechnen.

Die folgenden Aktien werden der maximal zur Ausgabe zur Verfügung stehenden Anzahl Aktien angerechnet
und werden dem Plan nicht für zukünftige Zuteilungen zurückgegeben: (i) Aktien, gewährt aufgrund einer Prämie, die
zur Zahlung des Kaufpreises oder der Steuereinbehaltung für eine Option oder Abrechnung einer Prämie abgetreten
werden, (ii) Aktien, die nicht ausgegeben oder zugestellt werden aufgrund einer Netto-Abrechnung einer ausstehenden
SAR oder Option, und (iii) Aktien, die auf dem freien Markt mit dem Erlös, resultierend aus der Ausübung einer
Option, zurückgekauft werden.

Berechtigung. Nur Angestellte der Gesellschaft, einer Muttergesellschaft oder einer Tochtergesellschaft sind
berechtigt, ISOs zu erhalten. Angestellte, Direktoren und Berater der Gesellschaft, einer Muttergesellschaft, einer
Tochtergesellschaft oder einer Zweigniederlassung sind berechtigt, nichtgesetzliche Optionen, SARs, gesperrte Aktien
und gesperrte stock units zu erhalten. Am 30. Juni 2012 hatte die Gesellschaft etwa 7,600 Angestellte, 8
nichtangestellte Direktoren und 160 Berater, die berechtigt waren, Prämien gemäss dem Plan zu erhalten. Beratern
hingegen, können nur im durch die gesellschaftsinternen Dokumente erlaubten Umfang, Prämien gewährt werden.

Prämien. Gemäss Plan gewährte Prämien können folgender Art sein:

Optionen. Eine Option verkörpert das Recht, Aktien der Gesellschaft zu eine festen Preis während einer
bestimmten Daue zu erwerben. Jede Option ist durch eine Prämienvereinbarung ausgewiesen und untersteht den
folgenden Bedingungen und Konditionen:

Anzahl Optionen. Der Verwalter wird die Anzahl Aktien gemäss der einem Teilnehmer gewährten Option

festlegen.

Ausübungspreis. Der Verwalter wird den Ausübungspreis für die gemäss Plan gewährten Optionen zum
Zeitpunkt der Zuteilung der Optionen bestimmen, wobei der Ausübungspreis grundsätzlich mindestens dem
Verkehrswert(fair market value) einer Aktie der Gesellschaft am Datum der Gewährung entsprechen muss. Der
Verkehrswert (fair market value) einer Aktie bestimmt sich grundsätzlich nach dem Schlusskurs einer Aktie der
Gesellschaft am Tag der Gewährung der Option, ermittelt entweder an der SIX Swiss Exchange (für in Schweizer
Franken bezeichnete Optionen) oder an der NASDAQ Global Select Market (für in US Dollars bezeichnete Optionen).
Der Verkehrswert (fair market value) am Datum der Zuteilung kann auch basierend auf einem Durchschnitt der
Handelskurse während einer Periode vor oder nach dem Datum der Zuteilung bestimmt werden. Am 30. Juni 2012
entsprach der Schlusskurs einer Aktie der Gesellschaft CHF 10.22 an der SIX Swiss Exchange und US $ 10.67 an der
NASDAQ Global Select Market.

Optionsausübung; Art der Vergütung. Der Verwalter bestimmt wann Optionen ausgeübt werden können und
kann, nach seinem Ermessen, die Ausübung ausstehender Optionen unter gewissen Umständen beschleunigen. Das
Zahlungsmittel für Aktien, die aufgrund Ausübung einer Option ausgegeben werden, ist in jeder Prämienvereinbarung
festgelegt. Im vom Gesetz erlaubten Umfang erlaubt der Plan die Zahlung mit Barmitteln, Barmittel entsprechenden
Zahlungsmittel, Wechsel oder mit Aktien (mit einigen Beschränkungen), bargeldlose Zahlung, Netto-Zahlung,
jegliche Kombination der vorerwähnten Zahlungsmethoden oder jede andere vom anwendbaren Gesetz erlaubte Art
der Vergütung.

Laufzeit der Option. Die Laufzeit der Option wird in der Prämienvereinbarung erwähnt. Trotzdem kann die
Laufzeit einer Option nicht länger als zehn Jahre sein. Keine Option kann nach Ablauf ihrer Laufzeit ausgeübt werden.

Beendigung der Dienstleistung. Nach Beendigung der Dienstleistung kann ein Optionsberechtigter seine Option
während dem durch den Verwalter festgelegten und in der Prämienvereinbarung erwähnten Zeitraum ausüben. Sofern
kein Zeitraum in der Prämienvereinbarung eines Teilnehmers erwähnt ist, kann ein Teilnehmer die Option innert 90
Tagen nach der Beendigung ausüben, in dem Ausmass als die Option am Datum der Beendigung ausübbar ist (aber
unter keinen Umständen nach dem Ende der Laufzeit einer solcher Option gemäss Prämienvereinbarung). Es sei denn
die Dienstleistung dieses Teilnehmers endet aufgrund dessen Versterbens oder Geschäftsunfähigkeit, in welchem Fall
der Teilnehmer (oder, bei dessen Tod, sein Nachlass, Begünstigte oder die Person, welche das Recht zur Ausübung der
Option als Erbe oder Nachkomme übernimmt) die Option während einem Jahr nach dem Datum der Beendigung
ausüben kann, in dem Ausmass als die Option am Datum der Beendigung ausübbar war (oder im Umfang als die
Ausübung durch den Tod des Teilnehmers beschleunigt wurde). Trotzdem, sofern die Dienstleistung eines
Teilnehmers nicht beendet wurde, sollte ein Teilnehmer von der Ausübung einer Option während dem nach der
Beendigung anwendbaren Zeitraum, aufgrund von rechtlichen Vorschriften im Zusammenhang mit der Ausgabe von
Aktien, abgehalten werden, bleibt die Option während 30 Tagen nach dem Datum, an dem die Gesellschaft den
Teilnehmer über die Ausübbarkeit der Option informiert hat, ausübbar, in keinem Fall jedoch nach dem Ende der
Laufzeit der Option.

Aktienwertsteigerungsrechte. Ein SAR ist das Recht, die Wertsteigerung des Verkehrswerts (fair market value)
der Aktien der Gesellschaft zwischen dem Datum der Zuteilung und dem Ausübungsdatum für diejenige Anzahl
Aktien der Gesellschaft betreffend die die SAR ausgeübt wird, zu erhalten. Die Gesellschaft kann die Wertsteigerung
in bar, Aktien der Gesellschaft mit gleichem Wert oder in einer Kombination davon, wie durch den Verwalter
festgelegt, zahlen. Jede Zuteilung von SARs wird durch eine Prämienvereinbarung, welche die Bedingungen und
Konditionen der Gewährung bestimmt, nachgewiesen. Der Verwalter bestimmt die Anzahl Aktien, die einem
Dienstleistungserbringer gemäss der SARs Zuteilung gewährt werden. Der Verwalter legt auch den Ausübungspreis
der SARs, den Ausübungsplan und andere Bedingungen und Konditionen der SARs fest. Trotzdem muss der
Ausübungspreis mindestens dem Verkehrswert (fair market value) einer Aktie der Gesellschaft am Datum der
Zuteilung entsprechen. Die Laufzeit einer SAR darf nicht länger als zehn Jahre sein.

Nach Beendigung der Dienstleistung kann ein Teilnehmer den ausübbaren Teil seiner SAR während dem durch
den Verwalter bestimmten und in der Prämienvereinbarung erwähnten Zeitraum ausüben. Sofern kein Zeitraum in der
Prämienvereinbarung eines Teilnehmers erwähnt ist, kann ein Teilnehmer oder bei dessen Tod, sein Nachlass oder
Begünstigter, grundsätzlich sein SAR ausüben während (i) 90 Tagen nach der Beendigung, sofern nicht durch
Versterben oder Handlungsunfähigkeit verursacht und (ii) einem Jahr nach der Beendigung aufgrund Versterbens oder
Handlungsunfähigkeit. In keinem Fall kann ein SAR nach dem Ende seiner Laufzeit ausgeübt werden.

Gesperrte Aktien. Gesperrte Aktien Zuteilungen sind Zuteilungen von Aktien der Gesellschaft, die gemäss den
durch den Verwalter festgelegten Bedingungen und Konditionen auszuüben sind. Jede Zuteilung von gesperrten
Aktien wird durch eine Prämienvereinbarung, welche die Bedingungen und Konditionen der Zuteilung bestimmt,
nachgewiesen. Die Ausübung kann an Bedingungen, wie fortdauerndes Arbeitsverhältnis, Zeitablauf oder Erreichung
von Vorgaben, geknüpft sein. Der Verwalter wird die Anzahl der einem Teilnehmer zugeteilten gesperrten Aktien
festlegen. Der Verwalter bestimmt auch den Kaufpreis, falls gegeben, für gesperrte Aktien, sofern nicht vom
Verwalter anders bestimmt. Nicht ausgeübte gesperrte Aktien verfallen normalerweise bei der freiwilligen oder
unfreiwilligen Beendigung der Dienstleistung des Teilnehmers aus welchen Gründen auch immer einschliesslich bei
Tod oder Handlungsunfähigkeit.

Gesperrte Stock Units (einschliesslich leistungsabhängige gesperrte Stock Units). Gesperrte stock units sind

H
C
S
T
U
E
D

Prämien, die das Recht beinhalten, Aktien der Gesellschaft oder Barmittel entsprechend dem Wert der Aktien oder
einer Kombination von beidem wie vom Verwalter festgelegt zu erhalten, sofern die gesperrten stock units ausübbar
sind. Gesperrte stock units sind gemäss den Bedingungen und Konditionen, wie sie vom Verwalter festgelegt in der
anwendbaren Prämienvereinbarung erwähnt sind, ausübbar. Die Ausübung kann an Bedingungen wie fortdauerndes
Arbeitsverhältnis, Zeitablauf oder Erreichung von Vorgaben, geknüpft sein. Gesperrte stock units, die von der
Erreichung von Vorgaben abhängen, gelten als leistungsabhängige gesperrte stock units. Keine Bedingung, die der
Erreichung von Vorgaben unterliegt, kann auf eine Zielerreichung innert einer Dauer von weniger als einem Jahr
gerichtet sein. Die Prämienvereinbarung kann das Verfallen oder die Annullierung von gesperrten stock units, ganz
oder teilweise, für den Fall der Beendigung der Dienstleistung des Teilnehmers vorsehen.

162(m) Kriterien der Zielerreichung. Zuteilungen, die von der Erreichung von Vorgaben abhängen, können, aber
müssen nicht, auf den Kriterien der Zielerreichung entsprechend Section 162(m) des Codes basieren. Im Umfang als
die Zuteilung als leistungsabhängige Vergütung gemäss Section 162(m) des Codes gelten soll, werden die Kriterien
der Zielerreichung auf der Wertsteigerung des Aktienpreises (im Falle von Optionen oder SARs) oder auf einem oder
mehreren der folgenden Kriterien (im Fall von gesperrten Aktien und gesperrten stock units) basieren:
Markenakzeptanz, Cash Flow, Cash Flow Ertrag aus Investitionen, Beitrag zur Profitabilität, Kontrolle der Kosten,
Kostenpositionen, Kapitalkosten, Kundenzufriedenheit, Produktentwicklung, Ergebnis vor Zinsen, Steuern und
Amortisation; Ertrag pro Aktie, wirtschaftlicher Gewinn, wirtschaftlicher Mehrwert, freier Cash Flow, Ertrag oder
Netto-Ertrag, Ertrag vor Ertragssteuern, Marktanteil, Produktinnovation, Umsatzertrag oder Netto-Umsatzertrag,
Umsatzmarge oder Gewinnmarge, Betriebsergebnis oder Netto-Betriebsergebnis, Prozessstärke, Reduzierung
Produktkosten, Produktevielfalt, Pläne zur Produktlancierung, Produktausgabeziele, Qualität, Anlagenertrag oder
Netto-Anlagenertrag, Kapitalertrag, Ertrag aus verwendetem Kapital, Ertrag aus Eigenkapital, Ertrag aus investiertem
Kapital, Ertrag aus operativem Ergebnis, Verkaufsertrag, Einnahmen, Verkäufe, Aktienpreisentwicklung, strategische
Allianzen, Total Aktionärsrendite, und Betriebsmittel. Die Vorgaben der Zielerreichung können von Teilnehmer zu
Teilnehmer sowie von Zuteilung zu Zuteilung verschieden sein und können in jeder Kombination verwendet werden.
Jegliche Zielvorgaben können sich auf die Gesamtheit der Gesellschaft oder auf einen Geschäftszweig oder eine
Tochtergesellschaft entweder allein oder in Kombination beziehen und entweder jährlich oder kumulativ über mehrere
Jahre hinweg gemessen werden. Zielvorgaben können, je nach Anwendbarkeit, in absoluten oder relativen
Zeitperioden gemessen werden (einschliesslich gegenüber Ergebnissen früherer Jahre und/oder gegenüber
Vergleichsgruppen.

Unübertragbarkeit von Ansprüchen. Sofern der Verwalter es nicht anders bestimmt, können gemäss dem Plan
zugeteilte Ansprüche nicht übertragen werden, ausser durch Testament, Bezeichnung eines Begünstigten (sofern eine
solche Bezeichnung durch den Verwalter genehmigt wird) oder Erbrecht (laws of descent and distribution) und dürfen
während der Lebenszeit des Teilnehmers nur durch diesen ausgeübt werden. Sollte der Verwalter eine
Anspruchübertragung vorsehen, hat der Anspruch alle gemäss Verwalter notwendigen zusätzlichen Bedingungen und
Konditionen zu enthalten.

Anpassungen aufgrund Änderungen der Kapitalisierung. Für den Fall, dass die Aktien der Gesellschaft oder
Wertpapiere ändern aufgrund einer Wertpapierdividende, Aktiensplit, Kombination oder Neuzuteilung von Aktien,
ausserordentliche Dividenden in bar oder von Aktiven, Rekapitalisierung, Reorganisation oder ähnlicher Handlungen,
die einen Einfluss auf die Aktien der Gesellschaft oder anderer Wertpapiere haben, wird der Verwalter Anpassungen
in Bezug auf die Anzahl und Art der Aktien der Gesellschaft oder anderer Wertpapiere gemäss dem Plan vornehmen.
Dies einschliesslich der maximalen Anzahl Aktien, die aufgrund der Ausübung eines ISO und der jährlichen
Höchstzahl Aktien, die im Zusammenhang mit der Gewährung einer ISO Zuteilung ausgegeben werden könnten oder
vorbehältlich früher gewährter Zuteilungen, und der Ausübungs- oder Abrechnungspreis für eine frühere gewährte
Zuteilung, um die Änderung wiederzugeben und eine Verwässerung oder Ausweitung des Gewinns gemäss der Prämie
auszuschliessen.

Anpassungen aufgrund Auflösung oder Liquidation. Mit Wirksamkeit der Auflösung oder Liquidation der
Gesellschaft enden grundsätzlich jegliche nicht ausgeübte Prämienansprüche. Der Verwalter kann gemäss seinem
Ermessen vorsehen, dass ein Teilnehmer das Recht hat, die gesamte oder einen Teil der Prämie auszuüben,
einschliesslich Aktien betreffend die eine Prämie ansonsten nicht ausübbar wäre, vorgängig der Vollendung einer
solchen vorgeschlagenen Handlung.

Anpassungen aufgrund Fusion oder Kontrollwechsel. Für den Fall, dass die Gesellschaft als Partei an einer

Fusion, Konsolidierung oder Reorganisation oder dem Verkauf aller wesentlicher Aktiven beteiligt ist, untersteht jede
dann ausstehende Prämie der anwendbaren Prämienvereinbarung, die einen oder mehrere der folgenden Punkte
vorsehen muss: die Weitergeltung, Übernahme, oder Ersetzung ausstehender Prämien; vollständige Ausübbarkeit oder
Ausübung der ausstehenden Prämien (dies kann vom Abschluss der Transaktion abhängig sein); oder die Annullierung
von ausstehenden Prämienansprüchen und die Zahlung eines Geldbetrages oder in Form von Aktien an den Inhaber,
der dem Betrag pro Aktie entspricht, den Aktionäre der Gesellschaft zu erhalten berechtigt sind oder im
Zusammenhang mit der anwendbaren Transaktion realisieren in Bezug auf die Anzahl Aktien gemäss der
anwendbaren Prämie (wobei die Zahlung vorbehältlich der andauernden Ausübbarkeit gemacht werden kann).

Änderung und Beendigung des Plans. Der Plan bleibt bis zur Beendigung durch den Verwaltungsrat in Kraft.
Zudem kann der Verwaltungsrat den Plan anpassen, ändern, aufheben oder beenden, jedoch darf keine Anpassung,
Änderung, Aufhebung oder Beendigung die Rechte eines Teilnehmers gemäss einer ausstehenden Prämie
beeinflussen, es sei denn der Teilnehmer und der Verwalter treffen eine andere Einigung.

Steuerfolgen in den Vereinigten Staaten von Amerika

Die Steuerregeln des amerikanischen Bundesrechts, die gemäss dem Code auf den Plan anwendbar sind, werden
untenstehend zusammengefasst. Diese Zusammenfassung enthält keine Hinweise auf Gemeinde- oder
Einzelstaatenrecht. Ebenso enthält es keine Hinweise auf Steuerregeln von Staaten ausserhalb der Vereinigten Staaten
von Amerika, in welchen ein Teilnehmer wohnt oder denen er oder sie untersteht.

Nichtgesetzliche Optionen. Ein Optionsberechtigter erzielt kein steuerbares Einkommen im Zeitpunkt der
Zuteilung der nichtgesetzlichen Option. Bei Ausübung erzielt der Optionsberechtigte ein steuerbares Einkommen,
berechnet grundsätzlich nach dem dannzumaligen höheren Verkehrswert (fair market value) der Aktien gegenüber
dem Ausübungspreis. Jegliches erzieltes steuerbares Einkommen in Zusammenhang mit der Ausübung einer Option
durch einen Angestellten unterliegt der Steuereinbehaltung. Die in Amerika tätige Tochtergesellschaft der Gesellschaft
ist grundsätzlich zu einer Reduzierung im gleichen Betrag, wie der Optionsberechtigte ein Einkommen erzielt,
berechtigt. Bei Verwendung der Aktien durch den Optionsberechtigten wird jede Differenz zwischen dem
Verkaufspreis und dem Ausübungspreis durch den Optionsberechtigten, sofern nicht als steuerbares Einkommen
gemäss vorstehenden Erläuterungen erzielt, als langfristiger oder kurzfristiger Kapitalgewinn oder –verlust, abhängig
von der Haltedauer, behandelt.

Wertsteigerungsrechte. Kein steuerbares Einkommen ist meldepflichtig, wenn ein SAR an einem Teilnehmer
gewährt wird. Bei Ausübung dieses Recht wird durch den Teilnehmer ein ordentliches Einkommen erzielt im gleichen
Umfang, der dem erhaltenen Geldbetrag und dem Verkehrswert (fair market value) der erhaltenen Aktien entspricht.
Jeder zusätzliche Gewinn oder Verlust, der durch eine spätere Verwendung der Aktien erzielt wird, gilt als
langfristiger oder kurzfristiger Kapitalgewinn oder –verlust, abhängig von der Haltedauer.

Logitech Inc., die in Amerika tätige Tochtergesellschaft, wird grundsätzlich zu einer Steuerreduzierung im
Zusammenhang mit einer Prämie gemäss Plan im gleichen Umfang der dem erzielten Einkommen eines Teilnehmers
entspricht, berechtigt sein, vorbehältlich amerikanischer Besteuerung und dem Zeitpunkt, in dem der Teilnehmer
solches Einkommen erzielt.

Gesperrte Aktien. Ein Teilnehmer realisiert grundsätzlich kein steuerbares Einkommen im Zeitpunkt, in dem
die Zuteilung der gesperrten Aktien gewährt wird. Stattdessen realisiert er oder sie ein ordentliches Einkommen im
ersten steuerbaren Jahr, in welchem sein oder ihr Interesse an den gesperrten Aktien entweder (i) frei übertragbar wird
oder (ii) nicht länger einem wesentlichen Verfallrisiko ausgesetzt ist (bspw. ausübbar). Trotzdem kann ein Inhaber
gesperrter Aktien wählen ein Einkommen, im Zeitpunkt in dem ihm oder ihr die Prämie gewährt wird, zu erzielen (im
nicht ausgeübten Umfang), im Betrag, der dem Verkehrswert (fair market value) der den Aktien, der Prämie
unterliegen, abzüglich jeden Betrags, der für die Aktien am Datum der Gewährung der Prämie gezahlt wurde. Beim
Verkauf jeglicher erhaltener Aktien wird jeder Gewinn oder Verlust, basierend auf der Differenz zwischen dem
Verkaufspreis und dem Verkehrswert (fair market value) am Abrechnungsdatum, als langfristiger oder kurzfristiger
Kapitalgewinn oder –verlust, abhängig von der Haltedauer, besteuert.

H
C
S
T
U
E
D

Logitech Inc. wird grundsätzlich zu einer Steuerreduzierung im gleichen Umfang der dem erzielten
ordentlichen Einkommen eines Teilnehmers am Datum, an dem die Aktien frei übertragbar oder nicht länger einem
wesentlichen Verfallrisiko ausgesetzt sind, entspricht, berechtigt sein, mit Ausnahme in dem Umfang als eine solche
Reduzierung durch die anwendbaren Bestimmungen des Codes begrenzt ist.

Gesperrte Stock Units. Ein Teilnehmer realisiert grundsätzlich kein steuerbares Einkommen im Zeitpunkt, in
dem die Zuteilung der gesperrten stock units gewährt wird. Bei Abrechnung der Prämie wird der Teilnehmer
grundsätzlich ein ordentliches Einkommen im Jahr des Erhalts erzielen im gleichen Umfang, der dem erhaltenen
Geldbetrag und dem Verkehrswert (fair market value) von jeglichen erhaltenen nicht-gesperrten Aktien entspricht.
Beim Verkauf jeglicher erhaltener Aktien wird jeder Gewinn oder Verlust, basierend auf der Differenz zwischen dem
Verkaufspreis und dem Verkehrswert (fair market value) am Abrechnungsdatum, als langfristiger oder kurzfristiger
Kapitalgewinn oder –verlust, abhängig von der Haltedauer, besteuert.

Logitech Inc. wird grundsätzlich zu einer Steuerreduzierung im gleichen Umfang, der dem erzielten
ordentlichen Einkommen eines Teilnehmers am Abrechnungsdatum entspricht, berechtigt sein, mit Ausnahme in dem
Umfang als eine solche Reduzierung durch die anwendbaren Bestimmungen des Codes begrenzt ist.

Leistungsabhängige Vergütung gemäss Code Section 162(m). Spezielle Regeln

limitieren die
Abzugsfähigkeit von Vergütungen, die gewissen leitenden Angestellten in den Vereinigten Staaten von Amerika
gezahlt werden. Gemäss Section 162(m) des Codes kann die jährlich gezahlte Vergütung an leitende Angestellte in
den USA nicht abgezogen werden, sofern sie US$ 1 Million übersteigt. Trotzdem kann Logitech Inc. Die
Abzugsfähigkeit von gewissen Vergütungen über US$ 1 Million bewahren, sofern die Bedingungen von Section
162(m) des Codes erfüllt sind. Diese Bedingungen beinhalten eine Genehmigung des Plans durch die Aktionäre und
die Limitierung der Anzahl Prämien, die ein Einzelner pro Jahr erhalten kann. Der Plan wurde derart entworfen, dass
es des dem Verwalter ermöglicht wird, Prämien, die als leistungsabhängig gelten zum Zweck der Erfüllung der
Bedingungen der Section 162(m) des Codes, zu gewähren, was es Logitech Inc. erlaubt, weiterhin eine
bundesrechtliche Einkommenssteuerreduzierung in Zusammenhang mit solchen Prämien zu erhalten.

Bezüge des neuen Plans

Die Anzahl und der Zeitpunkt der gemäss Plan gewährten Prämien werden im alleinigen Ermessen des
Verwalters festgelegt und können daher nicht im Voraus festgelegt werden. Die zukünftigen Prämien, die die leitenden
Angestellten und anderen Mitarbeiter gemäss Plan erhalten würden, sind dem Ermessen überlassen und daher zurzeit
nicht bestimmbar.

Die folgende Tabelle zeigt, ausgewiesen für jeden Einzelnen und die Gruppe, die gesamte Anzahl Aktien entsprechend
den Prämien, die nachstehend ausgewiesenen Einzelnen und Gruppen gemäss Plan seit seiner Einführung bis zum 30.
Juni 2012 gewährt wurden:

Name der Person oder Gruppe

Executive Officers

Guerrino de Luca
Gerald P.Quindlen
Erik K.Bardman
Junien Labrousse
Werner Heid
L.Joseph Sullivan

Derzeitige Executive Officers als Gruppe (¹)

Anzahl Aktien, die den
gewährten Prämien un-
terliegen
____________________

220'000
1'287'000
218'000
634'750
372'500
365'500

803'500

Daniel Borel
Matthew Bousquette
Erh-Hsun Chang
Kee-Lock Chua
Sally Davis
Neil Hunt
Richard Laube
Monika Ribar

Derzeitige nicht-angestellte Mitglieder des Verwaltungsrates als Gruppe

27'100
42'100
58'100
43'100
57'100
28'600
57'100
42'100
__________________
355'300
__________________

Alle derzeitigen Angestellten, einschliesslich Officers mit Ausnahme von Executive
Officers, als Gruppe

9'975'560

_______________________

(¹) Einschliesslich die Herren De Luca, Bardman und Sullivan. Herr Darrell wurde am 9. April 2012 Präsident der Gesellschaft und erhielt bis zum 30. Juni 2012
keine Aktien gemäss dem 2006 Stock Incentive Plan zugeteilt.

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, der beantragten Anpassung und Neuformulierung des 2006 Stock Incentive Plans,
einschliesslich der Erhöhung um neun Millionen zur Ausgabe unter dem Plan zur Verfügung stehender Aktien
zuzustimmen.

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Antrag 6

Genehmigung zum Halten eigener Aktien von mehr als 10 %

Antrag

Der Verwaltungsrat beantragt der Generalversammlung die Genehmigung zum Halten eigener Aktien von mehr

als 10 %.

Erläuterungen

Gemäss Schweizerischem Gesellschaftsrecht werden zurückgekaufte Aktien nicht automatisch vernichtet,
sondern als eigene Aktien gehalten, bis diese entweder durch einen Beschluss der Aktionäre vernichtet oder durch die
Gesellschaft gebraucht werden um Emissionsverpflichtungen nachzukommen, gemäss gewissen zeitlichen und
formellen Einschränkungen. Mitglieder des Verwaltungsrates könnten der Gefahr der persönlichen Haftung wegen
Schädigung der Gesellschaft ausgesetzt sein, wenn diese mehr als 10 % eigene Aktien hält. Die Zustimmung zu
diesem Antrag könnte die persönliche Haftung der Verwaltungsratsmitglieder in diesem Zusammenhang verringern.

Aktionäre haben die Gesellschaft ermächtigt, mehr als 10 Prozent eigener Aktien zu halten, sofern die Aktien,
welche die 10 Prozent Schwelle überschreiten, zum Zweck der Vernichtung anlässlich der ordentlichen
Generalversammlung 2012 und/oder 2013 zurückgekauft werden. Seit der am 11. November 2011erteilten

Genehmigung durch die Übernahmekommission und die SIX Swiss Exchange hat die Gesellschaft Aktienrückkäufe
gemäss dem Aktienrückkaufprogramm mittels einer „second trading line“ vorgenommen, die es der Gesellschaft
ermöglicht, ihren Verpflichtungen gemäss dem Schweizerischen Steuerrecht in Zusammenhang mit dem Rückkauf
von Aktien über die 10 Prozent Schwelle hinaus.

Am 30. Juni 2012 hielt Logitech ungefähr 18.6 Prozent seiner Aktien als eigene Aktien und gemäss den vom
Verwaltungsrat genehmigten Aktienrückkaufprogrammen kann die Gesellschaft weitere eigene Aktien im Umfang
von ungefähr US$ 4.4 Millionen erwerben. Trotz Berücksichtigung der Vernichtung von Aktien gemäss Antrag 4,
sofern von den Aktionären genehmigt, und unter Beibehaltung aller Gegebenheiten auf dem gleichen Stand wie am
30. Juni 2012 wird die Gesellschaft etwa 9.8 Prozent ihrer Aktien als eigene Aktien halten. Sofern die Gesellschaft
weiterhin Aktienrückkäufe gemäss dem Aktienrückkaufprogramm vornimmt, könnte sie wieder in die Nähe der
Schwelle von 10 % der eigenen Aktien kommen oder diese sogar übertreffen.

Damit die Gesellschaft in Zukunft mit Flexibilität in Bezug auf ihr Kapital ausgestattet ist, beantragt der
Verwaltungsrat die Zustimmung der Aktionäre zum Halten eigener Aktien von mehr als 10 Prozent, sofern die Aktien,
welche die 10 Prozent Schwelle überschreiten, zum Zweck der Vernichtung mittels einer „second trading line“ oder
auf andere Weise zurückgekauft werden. Sollte die Generalversammlung diesen Antrag ablehnen, wird der
Verwaltungsrat veranlassen, dass die Gesellschaft nicht mehr als 10 Prozent eigener Aktien hält.

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 sowohl Enthaltungen als auch Stimmen
von Verwaltungsratsmitgliedern, Mitgliedern des Managements von Logitech sowie von Logitech vertretene Stimmen
nicht gezählt werden.

Empfehlung

Der Verwaltungsrat empfiehlt die Annahme des folgenden Beschlusses:

"Die Gesellschaft wird ermächtigt, mehr als 10 % eigene Aktien zu halten, sofern diejenigen Aktien, welche
die 10%-Grenze übersteigen, zurückgekauft werden, sei es über eine „second trading line“ oder auf andere
Weise, um anlässlich einer Kapitalherabsetzung, welche der ordentlichen Generalversammlung 2013
und/oder 2014 beantragt wird, vernichtet zu werden."

Entlastung des Verwaltungsrates und der Geschäftsleitung für das Geschäftsjahr 2012

Antrag 7

Antrag

Der Verwaltungsrat beantragt der Generalversammlung der Entlastung seiner Mitglieder sowie der

Geschäftsleitung für deren Tätigkeiten im Geschäftsjahr 2012 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
2012. Die Entlastung schliesst Verantwortlichkeitsklagen der Gesellschaft oder von Aktionären gegen die Mitglieder des
Verwaltungsrates und der Geschäftsleitung aus, sofern sie die Geschäftstätigkeit im Geschäftsjahr 2012 betreffen, und auf
Tatsachen beruhen, die den Aktionären mitgeteilt wurden. Aktionäre, die der Entlastung nicht zustimmen oder ihre
Aktien nach der Abstimmung ohne Wissen über die Genehmigung dieses Antrages erwerben, sind während einer Frist
von sechs Monaten nach der Generalversammlung an den Entlastungsbeschluss nicht gebunden.

Notwendige Mehrheit zur Genehmigung

Empfehlung

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

Mitglieder des Verwaltungsrates und der Geschäftsleitung für die Tätigkeit im Geschäftsjahr 2012.

Antrag 8

Kürzung der Amtsdauer von Mitgliedern des Verwaltungsrates

Antrag

Der Verwaltungsrat beantragt die Kürzung der Amtsdauer für seine Mitglieder von drei Jahren auf ein Jahr und

Artikel 14 Absatz 1 der Statuten der Gesellschaft wie folgt anzupassen:

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Artikel 14 (Aktueller Text):

Artikel 14 (Neuer Text):

Der Verwaltungsrat der Gesellschaft besteht aus mindestens
drei von der Generalversammlung für eine Amtsdauer von
drei Jahren zu wählenden Mitgliedern. Die Mitglieder sind
unbegrenzt wieder wählbar.

Der Verwaltungsrat der Gesellschaft besteht aus mindestens
drei von der Generalversammlung für eine Amtsdauer von
einem Jahr zu wählenden Mitgliedern. Die Mitglieder sind
unbegrenzt wieder wählbar.

Erläuterungen

Der Zweck dieses Antrages zur jährlichen Wiederwahl aller Verwaltungsratsmitglieder liegt in der dadurch
erreichten grösseren Flexibilität in der Wahl und Besetzung des Verwaltungsrates. Der vorgeschlagene Artikel 14 der
Statuten der Gesellschaft bietet dafür den gesetzlichen Rahmen. Die Mitglieder des Verwaltungsrates, die während der
letzten zwei Jahre für eine Amtsdauer von drei Jahren gewählt wurden, werden im Amt bleiben bis die dreijährige
Amtsdauer abgelaufen ist. Sofern dieser Antrag 8 angenommen wird, ist diese Änderung ab der ordentlichen
Generalversammlung 2012 anwendbar; sie wird insbesondere für die Wahlen gemäss Antrag 9 anwendbar sein.

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 der Generalversammlung die Annahme des Antrages auf Kürzung der Amtsdauer
von Mitglieder des Verwaltungsrates von drei Jahren auf ein Jahr und die entsprechende Anpassung von Artikel 14
Absatz 1 der Statuten der Gesellschaft.

Antrag 9

Wahlen in den Verwaltungsrat

Unser Verwaltungsrat hat gegenwärtig neun Mitglieder. Jedes Mitglied ist zurzeit für drei Jahre gewählt. Die
Amtszeiten sind so gestaffelt, dass nicht alle Mitglieder gleichzeitig zur Wiederwahl kommen. Gemäss Antrag 8
schlägt der Verwaltungsrat eine Kürzung der Amtsdauer von drei Jahren auf ein Jahr im Interesse der Flexibilität vor.

Auf Empfehlung des Nominationsausschusses hat der Verwaltungsrat die nachstehenden drei Personen zur Wahl
vorgeschlagen für eine Amtsdauer von einem Jahr, sofern der Antrag 8 durch die Aktionäre angenommen wird, und
für eine Amtsdauer von drei Jahren, sofern der Antrag 8 nicht angenommen wird. In beiden Fällen beginnt die
Amtsdauer mit der Generalversammlung vom 5. September 2012. Zwei der vorgeschlagenen Personen sind aktuelle
Mitglieder des Verwaltungsrates. Ihre Mandatszeit endet zum Zeitpunkt der Generalversammlung vom 5. September
2012. Die dritte vorgeschlagene Person wurde durch den Nominationsausschuss ausgewählt und vorgeschlagen und
durch den Verwaltungsrat im Juni 2012 als vorgeschlagene Person zur Wahl in den Verwaltungsrat genehmigt.

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.

9.1 Wiederwahl von Herrn Erh-Hsun Chang

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Herrn Erh-Hsun Chang für
eine weitere Amtsdauer von einem Jahr, sofern Antrag 8 angenommen wird, oder für drei weitere Jahre, wenn Antrag
8 nicht angenommen wird.

Erh-Hsun Chang ist Mitglied des Verwaltungsrates seit Juni 2006. Bis April 2006 war Herr Chang Senior Vice
President Worldwide Operations and General Manager Far East der Gesellschaft. Herr Chang trat 1986 bei Logitech
ein, um das Geschäft in Taiwan aufzubauen. Nachdem er die Gesellschaft 1988 verliess, kam er 1995 als Vice
President, General Manager, Far Eastern Area and Worldwide Operations zurück. Im April 1997 wurde Herr Chang
Senior Vice President, General Manager, Far Eastern Area and Worldwide Operations. Weitere Berufserfahrungen
bringt Herr Chang durch seine Aktivitäten als Vice President Manufacturing Consulting zwischen 1991 und 1995 bei
KPMG Peat Marwick, einer weltweit tätigen Dienstleistungsgesellschaft, und als Vice President, Sales and Marketing,
Power Supply Division im Jahr 1995 bei Taiwan Liton Electronics Ltd., einer taiwanesischen Elektronikgesellschaft,
mit. Herr Chang besitzt einen Bachelor of Science in Civil Engineering der Chung Yuang University, Taiwan, und hat
einen MBA in Operations Management der University of Dallas, Texas, sowie einen Master of Science in Industrial
Enginieering der Texas A&M University. Herr Chang ist ebenfalls Vizepräsident des Verwaltungsrates von Logitech’s
Tochtergesellschaft in Taiwan. Er ist 63 Jahre alt und Staatsbürger von Taiwan.

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Herr Chang verfügt Dank seiner umfassenden Karriere in den Bereichen operatives Geschäft, Produktion und
Verkauf und Marketing, besonders in Taiwan und China, über langjährige Führungserfahrung, Kenntnis in den
Bereichen operatives Geschäft und Produktion und weitreichende Kompetenz betreffend Geschäftstätigkeit in Taiwan
und China.

Herr Chang ist zum gegenwärtigen Zeitpunkt Mitglied des Audit Committee. Der Verwaltungsrat hat

beschlossen, dass er als unabhängiger Direktor gilt.

9.2 Wiederwahl von Herrn Kee-Lock Chua

Antrag: Der Verwaltungsrat beantragt die Wiederwahl in den Verwaltungsrat von Herrn Kee-Lock Chua für
eine weitere Amtsdauer von einem Jahr, sofern Antrag 8 angenommen wird, oder für drei weitere Jahre, wenn Antrag
8 nicht angenommen wird.

Kee-Lock Chua

ist Präsident und CEO der Vertex Group, einer von Singapur aus geführten
Kapitalbeteiligungsgruppe. Bevor er im September 2008 zur Vertex-Gruppe sties, war Herr Chua von 2006 bis 2008
Präsident and Geschäftsführer der Biosensors International Group Ltd., einer Entwicklerin und Produzentin von
medizinischen Geräten, die in der Kardiologie und bei kritischen Pflegebehandlungen zum Einsatz kommen. Zuvor,
von 2003 bis 2006, war Herr Chua Managing Director der Walden International, einer aus den USA geführten
Kapitalbeteiligungsgesellschaft. Von 2001 bis 2003 war Herr Chua stellvertretender Präsident der NatSteel Ltd.,
Singapore, die Industrieprodukte herstellt und in Asien aktiv ist. Von 2000 bis 2001 war Herr Chua Präsident and
CEO der Intraco Ltd., einer in Singapur kotierten Handelsgesellschaft. Davor war Herr Chua Präsident der
MediaRing.com Ltd., einer in Singapur kotierten Gesellschaft, die voice-over-Internet Dienstleistungen anbietet. Er ist
ebenfalls Mitglied des Verwaltungsrates der SHC Capital Ltd. und Yongmao Holdings Limited (bei welcher er als
führender unabhängiger Direktor gilt), welche beide öffentlich gehandelte Gesellschaften in Singapur sind. Herr Chua
besitzt einen Bachelor of Science in Mechanical Engineering der University of Wisconsin und einen Master of Science
in Engineering der Stanford University, California.. Herr Chua ist 51 Jahre alt und Staatsbürger von Singapur.

Herr Chua verfügt über weitreichende Investment und langjährige Führungsefahrung sowohl als venture
capitalist Investor in Asien und den Vereinigten Staaten von Amerika als auch als ehemaliger CEO öffentlich
gehandelter Gesellschaften in Asien. Er bereichert den Verwaltungsrat mit seiner langjährigen Führungserfahrung
sowie Kompetenz in finanziellen und globalen Angelegenheiten. Als Direktor kotierter Gesellschaften und privater
Gesellschaften in Asien verfügt er zudem über gesellschaftsübergreifende Erfahrung.

Herr Chua ist zum gegenwärtigen Zeitpunkt Mitglied des Compensation Committee und Nomination Committee
des Verwaltungsrates. Er ist zudem der führende unabhängige Direktor der Gesellschaft. Der Verwaltungsrat hat
beschlossen, dass er als unabhängiger Direktor gilt.

9.3 Wahl von Herrn Didier Hirsch

Antrag: Der Verwaltungsrat beantragt die Wahl in den Verwaltungsrat von Herrn Didier Hirsch für eine Amtsdauer
von einem Jahr, sofern Antrag 8 angenommen wird, oder für drei Jahre, wenn Antrag 8 nicht angenommen wird

Didier Hirsch ist Senior Vice President und Chief Financial Officer der Agilent Technologies Inc., einer
Gesellschaft für Messtechnik und führendem Technologieunternehmen im Bereich chemische Analyse, Life Sciences,
Elektronik und Kommunikation. Er ist seit 1999 bei Agilent tätig und war von November 2007 bis Juli 2010 Chief
Accounting Officer und seit April 2010 interim Chief Financial Officer bis zur Ernennung in seiner heutigen Funktion
im Juli 2010. Herr Hirsch war bei Agilent ebenfalls als Vice President, Corporate Controllership und Tax von 2006 bis
Juli 2010, als Vice President und Controller von April 2003 bis Oktober 2006, und Vice President und Treasurer von
September 1999 bis April 2003 tätig. Herr Hirsch stiess 1989 zu Hewlett-Packard Company und war von 1996 bis
1999 Director of Finance and Administration für Hewlett-Packard Europe, Middle East and Africa (EMEA), Director
of Human Resources von Hewlett-Packard EMEA von 1998 bis 1999, Director of Finance and Administration von

Hewlett-Packard Asia Pacific von 1993 bis 1996, sowie Director of Finance and Administration von Hewlett-Packard
France von 1989 bis 1993. Bevor Herr Hirsch bei Hewlett-Packard tätig war, arbeitete im Bereich Finanzen bei Valeo
Inc., Gemplus S.C.A., SGS-Thomson Microelectronics, I.B.H. Holding S.A., Bendix Corporation und Ford Motor
Company. Er ist ebenfalls Mitglied des Verwaltungsrates der International Rectifier, einem an der New York Stock
Exchange (NYSE)-kotierten Anbieter von modernen Energieverwaltungstechnologien. Herr Hirsch besitzt einen
Master of Science in Computer Sciences der Universität Toulouse sowie einen Master of Science in Industrial
Administration der Universität Purdue. Er ist 61 Jahre alt und Staatsbürger von Frankreich.

Herr Hirsch als Chief Financial Officer einer führenden Publikumstechnologiegesellschaft verfügt durch seine
während Jahrzehnten gesammelten Erfahrungen bei Technologie- und Produktionsunternehmen in den USA, EMEA
und Asien über weitreichende Kompetenzen in Finanzangelegenheiten. Er bereichert den Verwaltungsrat mit seiner
langjährigen Führungserfahrung sowie Kompetenz in finanziellen (einschliesslich U.S. GAAP), technologischen und
globalen Angelegenheiten.

Der Verwaltungsrat hat beschlossen, dass Herr Hirsch als unabhängiger Direktor 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 10

Wiederwahl von PricewaterhouseCoopers AG als Logitech’s Revisionsstelle und Bestätigung der Wahl von
PricewaterhouseCoopers LLP als Logitech’s unabhängigem zugelassenen Revisionsexperten für das
Geschäftsjahr 2013

Antrag

Der Verwaltungsrat beantragt, PricewaterhouseCoopers AG. als Revisionsstelle der Logitech International S.A.
für ein weiteres Jahr wiederzuwählen sowie die PricewaterhouseCoopers LLP als Logitech’s unabhängigem
zugelassenen Revisionsexperten für das Geschäftsjahr 2013 zu ernennen.

Empfehlung

Auf Empfehlung des Audit Committee des Verwaltungsrates ist die PricewaterhouseCoopers AG oder PwC AG
für ein weiteres Jahr als Revisionsstelle der Logitech International AG vorgeschlagen. Die PwC AG ist seit 1988 für
die Revision der Logitech verantwortlich.

Das Audit Committe hat ebenfalls die PricewaterhouseCoopers LLP oder PwC LLP, die amerikanische
Tochtergesellschaft der PwC AG, als unabhängigem zugelassenen Revisionsexperten der Gesellschaft für das am 31.
März 2013 endende Geschäftsjahr aufgrund der Vorschriften des amerikanischen Aktienrechts ernannt. Die Statuten
der Logitech sehen keine Genehmigungspflicht der Ernennung der PwC LLP als unabhängigem zugelassenen
Revisionsexperten der Gesellschaft durch die Aktionäre vor. Trotzdem unterbreitet Logitech die Ernennung der PwC
LLP den Aktionäre zur Genehmigung aufgrund von Corporate Governance Überlegungen. Sollten die Aktionäre die
Ernennung nicht genehmigen, wird das Audit Committee die Ernennung der PwC LLP überprüfen. Auch für den Fall
der Genehmigung der Ernennung kann das Audit Committee, in seinem Ermessen, die Ernennung während dem Jahr
ändern, sollte das Committee zum Schluss kommen, dass eine solche Änderung im besten Interesse der Gesellschaft
und seiner Aktionäre ist.

Informationen über die Honorare, die Logitech an die PwC AG und PwC LLP bezahlt hat, sowie weitere
Information über die PwC AG und PwC LLP entnehmen Sie dem untenstehenden Abschnitt unter dem Titel
"Independent Public Accountants” und “Report of the Audit Committee”.

Ein Mitglied der PwC AG 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 AG als Revisionsstelle der Logitech
International S.A. sowie die Genehmigung der Ernennung der PricewaterhouseCoopers LLP als Logitech’s
unabhängigem zugelassenen Revisionsexperten beide für das am 31. März 2013 endende Geschäftsjahr.

VERWALTUNGSRATSANGELEBENHEITEN UND ENTSCHÄDIGUNGSBERICHT

Für weitere Information über Corporate Governance, 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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*****

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July 24, 2012

To our shareholders:

You are cordially invited to attend Logitech’s 2012 Annual General Meeting. The meeting will be held on

Wednesday, September 5, 2012 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 5, 2012
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, 2012

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 2012

2. Advisory vote on executive compensation

3. Appropriation of retained earnings and distribution of capital contribution reserves

3.1 Appropriation of retained earnings

3.2 Distribution of capital contribution reserves

4. Reduction of share capital by cancellation of repurchased shares

Amendment and restatement of the 2006 Stock Incentive Plan, including an increase to the number of
shares available for issuance under the Plan

6. Authorization to exceed 10% holding of own share capital

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Release of the Board of Directors and Executive Officers from liability for activities during fiscal
year 2012

8. Decrease of the term of office for members of the Board of Directors

Elections to the Board of Directors

9.1. Re-election of Mr. Erh-Hsun Chang

9.2. Re-election of Mr. Kee-Lock Chua

9.3. Election of Mr. Didier Hirsch

10.

Re-election of PricewaterhouseCoopers S.A. as Logitech’s auditors and ratification of the appointment
of PricewaterhouseCoopers LLP as Logitech’s independent registered public accounting firm for fiscal
year 2013

Apples, Switzerland, July 24, 2012

The Board of Directors

QUESTIONS AND ANSWERS ABOUT THE LOGITECH
2012 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 24, 2012.

The enclosed Response Coupon is solicited on behalf of the Board of Directors of Logitech for use at Logitech’s
Annual General Meeting. The meeting will be held on Wednesday, September 5, 2012 at 2:30 p.m. at the Palais de
Beaulieu, Rome Room, in Lausanne, Switzerland.

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,
August 30, 2012 have the right to vote. No shareholders will be entered in the Share Register between August 31, 2012
and the day following the meeting. As of June 30, 2012 there were 120,955,463 shares registered and entitled to
vote out of a total of 155,960,117 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, 2012 and August 30, 2012.

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.

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 7600 Gateway Boulevard, Newark, California 94560.
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 2012 Annual Report to Shareholders, this Invitation and Proxy Statement and our Annual
Report on Form 10-K for fiscal year 2012 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 11, 2012. 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 August 30, 2012 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 for those items for which you did not provide voting instructions
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 Friday, August 24, 2012.
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 August 30, 2012, you may attend the meeting by presenting proof of
identification at the meeting.

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 24, 2012. 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, August 30, 2012 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
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
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 13, 2012 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 13, 2012 and August 22, 2012, 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 13, 2012 votes but
subsequently sells their shares before August 22, 2012, their votes will be cancelled. A U.S. or Canadian “street
name” beneficial owner as of July 13, 2012 that has voted and subsequently increases or decreases their shareholdings
but remains a beneficial owner as of August 22, 2012 will have their votes increased or decreased to reflect their
shareholdings as of August 22, 2012.

If you acquire Logitech shares in “street name” after July 13, 2012 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 August 30, 2012 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.

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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
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 executive compensation), Proposal 3 (Appropriation
of retained earnings and distribution of capital contribution reserves), Proposal 4 (Reduction of share capital by
cancellation of repurchased shares), Proposal 5 (Amendment and restatement of the 2006 Stock Incentive Plan,
including an increase to the number of shares available for issuance under the Plan), Proposal 6 (Authorization to
exceed 10% holding of own share capital), Proposal 8 (Decrease of the term of office for members of the Board
of Directors) and Proposal 9 (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 Thursday, August 30, 2012 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.

How do I obtain a separate set of proxy materials or request a single set for my household in the

United States?

We have adopted a procedure approved by the SEC called “householding” for shareholders in the United
States. Under this procedure, shareholders who have the same address and last name and do not participate in
electronic delivery of proxy materials will receive only one copy of the Notice and our annual report and proxy
statement unless one or more of these shareholders notifies us that they wish to continue receiving individual
copies. This procedure reduces our printing costs and postage fees. Each U.S. shareholder who participates in
householding will continue to be able to access or receive a separate Proxy Card.

If you wish to receive a separate Notice, proxy statement or annual report at this time, please request the
additional copy by contacting our mailing agent, Broadridge, by telephone at +1-800-579-1639 or by e-mail at
sendmaterial@proxyvote.com. If any shareholders in your household wish to receive a separate annual report
and a separate proxy statement in the future, they may call our investor relations group at +1-510-713-4220 or
write to investor relations, 7600 Gateway Boulevard, Newark, California 94560. They may also send an email to
our investor relations group at logitechIR@logitech.com. Other shareholders who have multiple accounts in their
names or who share an address with other stockholders can authorize us to discontinue mailings of multiple annual
reports and proxy statements by calling or writing to investor relations.

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.

Proxy Solicitation

We will bear the expense of soliciting proxies, and we have retained D.F. King & Co., Inc. to solicit proxies
for a fee of US $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
US $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.

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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 2012 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 5, 2012 Annual
General Meeting was July 6, 2012. However, under Swiss law registered shareholders, or persons holding a valid
proxy from a registered shareholder, may propose alternatives to items on the 2012 Annual General Meeting agenda
before or at the meeting.

Shareholder Proposals for 2013 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 2013 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 5, 2013. 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 2013 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 26, 2013. 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 2013 Annual General Meeting.

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.

AGENDA PROPOSALS AND EXPLANATIONS

REPORTS

Report on Operations for the Fiscal Year Ended March 31, 2012

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 2012.

PROPOSALS

Proposal 1
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 2012

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 2012 be approved.

Explanation

The Logitech consolidated financial statements and the statutory financial statements of Logitech International
S.A. for fiscal year 2012 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 forms part of this Invitation and Proxy Statement. Copies of the
Annual Report, 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 2012.

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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, 2012 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 (U.S. 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.

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 2012.

Proposal 2

Advisory Vote on Executive Compensation

Proposal

The Board of Directors proposes that shareholders approve, on an advisory basis, the compensation of

Logitech’s named executive officers disclosed in Logitech’s Compensation Report for fiscal year 2012.

Explanation

At Logitech’s 2009 and 2010 Annual General Meetings, the Logitech Board of Directors voluntarily asked
shareholders to approve Logitech’s compensation philosophy, policies and practices, as set out in the “Compensation
Discussion and Analysis” section of the Compensation Report, as a reflection of evolving best practices in corporate
governance in Switzerland and in the United States. This proposal, commonly known as a “say-on-pay” proposal,
gave our shareholders the opportunity to express their views on our compensation as a whole.

Beginning last year, a say-on-pay advisory vote was required for all public companies, including Logitech,
that are subject to the applicable U.S. proxy statement rules. Last year, shareholders approved a proposal to take
this vote annually. Accordingly, the Board of Directors is asking shareholders to approve, on an advisory basis,
the compensation of Logitech’s named executive officers disclosed in the Compensation Report, including the
“Compensation Discussion and Analysis,” the Summary Compensation table and the related compensation tables,
notes, and narrative. This vote is not intended to address any specific items of compensation or any specific named
executive officer, but rather the overall compensation of our named executive officers and the philosophy, policies
and practices described in the Compensation Report.

This say-on-pay vote is advisory and therefore is not binding. However, the say-on-pay vote will provide
information to us regarding shareholder sentiment about our executive compensation philosophy, policies and
practices, which the Compensation Committee of the Board will be able to consider when determining future executive
compensation. The Committee will seek to determine the causes of any significant negative voting result.

As discussed in the Compensation Discussion and Analysis section of Logitech’s 2012 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;

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.

The Compensation Committee of the Board has developed a compensation program that is described
more fully in the Compensation Report included in the Annual Report and 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 2012 are also set out in the
Compensation Report.

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.

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 following advisory resolution:

“Resolved, that the compensation paid to Logitech’s named executive officers as disclosed in the
Compensation Report, including the “Compensation Discussion and Analysis,” the Summary
Compensation table and the related compensation tables, notes, and narrative discussion, is
hereby approved.”

Appropriation of Retained Earnings and Distribution of Capital Contribution Reserves

Proposal 3

3.1 Appropriation of Retained Earnings

Proposal

The Board of Directors proposes that CHF 460,919,135 (US $482,397,967 based on the exchange rate on

June 30, 2012) of retained earnings be appropriated as follows:

Retained earnings at the beginning of fiscal year 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appropriation of retained earnings resolved by the 2011 Annual General

Meeting - Dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Attribution from reserve for treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income for fiscal year 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings at the disposal of the Annual General Meeting at the end of fiscal

Year ended
March 31, 2012
(in thousands)
CHF 507,730

—
(51,880)
5,069

year 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHF 460,919

Unappropriated retained earnings before allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation to other general reserves for treasury shares . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation to general reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unappropriated retained earnings to be carried forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other general reserves for treasury shares before allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation from unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . .
Other general reserves for treasury shares to be carried forward . . . . . . . . . . . . . . . . . . . . . . . .

General reserve before allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation from unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . .
General reserve to be carried forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Reserve for treasury shares from capital contributions before allocation . . . . . . . . . . . . . . . . . .
Proposed allocation to free reserves from capital contributions . . . . . . . . . . . . . . . . . . . . . . .
Reserve for treasury shares from capital contributions to be carried forward. . . . . . . . . . . . . . .

General reserve from capital contributions before allocations . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation to free reserves from capital contributions . . . . . . . . . . . . . . . . . . . . . . .
General reserve from capital contributions to be carried forward . . . . . . . . . . . . . . . . . . . . . . . .

CHF 460,919
(116,070)
(9,580)
CHF 335,269

CHF 217,375
116,070
CHF 333,445

CHF

—
9,580
9,580

CHF 116,070
(116,070)
—

CHF

9,580
(9,580)
—

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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 2012 Annual
General Meeting are the earnings of Logitech International S.A., the Logitech parent holding company.

The Board of Directors proposes in Proposal 3.2 below that, in lieu of a dividend out of available earnings,
the Company distributes qualifying additional paid-in capital out of its capital contribution reserves. In order to
free up the capital contribution reserves required for this distribution, the Board of Directors proposes to release the
reserves for treasury shares and the general reserve that had been constituted out of capital contributions reserves,
to recreate such reserves from retained earnings, and to carry forward the balance of the retained earnings at the
disposal of the Annual General Meeting in an amount of CHF 335,268,321.

The Board of Directors proposes the carry-forward of retained earnings based on the Board’s belief 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.

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, withdraw Proposal 3.2 below, 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 proposed appropriation of retained

earnings with respect to fiscal year 2012.

3.2 Distribution of Capital Contribution Reserves

Proposal

The Board of Directors proposes that the Company’s capital contribution reserves be reclassified as free
reserves in an amount of CHF 125,650,814 (US $131,506,142 based on the exchange rate on June 30, 2012), and that
such free reserves be distributed to shareholders in an amount of approximately CHF 0.81 per share (US $0.84 per
share based on the exchange rate on June 30, 2012),* up to an aggregate amount of CHF 125,650,814, as follows:

Free reserve from capital contributions before allocations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation from reserve for treasury shares from capital contributions . . . . . . . . . . .
Proposed allocation from general reserve from capital contributions . . . . . . . . . . . . . . . . . . . .
Proposed distribution from capital contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Free reserve from capital contributions to be carried forward . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No distribution shall be made on shares held in treasury by the Company and its subsidiaries.

The approximate payment date for the distribution is expected to be September 18, 2012.

This proposal shall be withdrawn if Proposal 3.1 above is not approved.

CHF

Year ended
March 31, 2012
(in thousands)
—
116,070
9,580
(125,650)
—

CHF

Calculated based on 155,960,117 shares outstanding, net of treasury shares, as of June 30, 2012. Distribution-
bearing shares are all shares issued except for treasury shares held by Logitech International S.A. on the day
preceding the payment of the distribution.

Explanation

The Board of Directors is proposing that, in lieu of a dividend out of available earnings, the Company
distributes qualifying additional paid-in capital out of its capital contribution reserves. This cash distribution
of qualifying additional paid-in capital would be a one-time distribution based on the significant decline in the
Company’s stock price during fiscal year 2012, the availability of additional paid-in capital and the opportunity to
reward our shareholders for their commitment to the Company.

Under the favorable current Swiss tax regime and contrary to dividends out of available earnings, distributions

made out of qualifying additional paid-in capital are not subject to Swiss federal withholding tax.

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

Subject to Proposal 3.1 above having been approved, the Board of Directors recommends a vote “FOR”
approval of the reclassification of the Company’s capital contribution reserves as free reserves in an amount of CHF
125,650,814 and the distribution of such free reserves to shareholders in an amount of approximately CHF 0.81 per
share,* up to an aggregate amount of CHF 125,650,814.

Reduction of Share Capital by Cancellation of Repurchased Shares

Proposal 4

Proposal

The Board of Directors proposes that 18.5 million shares repurchased under the buyback program that was
authorized by the Board of Directors in September 2008, as amended in November 2011, be cancelled, that the
share capital of the Company be reduced by CHF 4,625,000 from CHF 47,901,655 to CHF 43,276,655, and that the
Articles of Incorporation of the Company be amended as follows:

Article 3 (Current Text):

Article 3 (New Text):

The share capital is fixed at CHF 47,901,655 (forty-
seven million nine hundred one thousand six hundred
fifty-five Swiss francs), entirely paid in.

The share capital is fixed at CHF 43,276,655 (forty-three
million two hundred seventy-six thousand six hundred
fifty-five Swiss francs), entirely paid in.

It is divided into 191,606,620 (one hundred ninety-one
million six hundred six thousand six hundred twenty)
registered shares with a nominal value of CHF 0.25
(twenty-five centimes) each.

It is divided into 173,106,620 (one hundred seventy-
three million one hundred six thousand six hundred
twenty) registered shares with a nominal value of CHF
0.25 (twenty-five centimes) each.

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Explanation

In September 2008, the Board of Directors approved a share buyback program which authorizes the Company
to invest up to US $250 million to purchase its own shares. In November 2011, the Company received approval from
the Swiss regulatory authorities for an amendment to the September 2008 share buyback program to enable future
repurchases of shares for cancellation, up to a total of 28.5 million shares.

The Board of Directors now proposes that the shareholders approve the cancellation of 18.5 million shares
repurchased under the amended September 2008 program and that the share capital set forth in Article 3 of the
Company’s Articles of Incorporation be reduced accordingly.

In their special audit report prepared for the Annual General Meeting the auditors PricewaterhouseCoopers
SA confirmed that the claims of the Company’s creditors would be covered despite the proposed share
capital reduction.

The capital reduction by cancellation of shares can only be accomplished after publication of three notices to
creditors in accordance with Article 733 of the Swiss Code of Obligations. If this proposal is approved, such notices
to creditors will be published after the Annual General Meeting in the Swiss Official Gazette of Commerce. After
the two-month waiting period required by law has lapsed, the capital reduction will be effected and entered in the
Commercial Register.

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 cancellation of 18.5 million shares, the
reduction of share capital of the Company by CHF 4,625,000, and the amendment of the Articles of Incorporation
of the Company accordingly.

Amendment and Restatement of the 2006 Stock Incentive Plan, including an Increase to the Number of
Shares Available for Issuance under the Plan

Proposal 5

Proposal

The Board of Directors proposes that shareholders approve amendments to and the restatement of the Logitech
International S.A. 2006 Stock Incentive Plan (the “Plan”) to authorize nine million (9,000,000) additional shares
for issuance under the Plan, to improve the Company’s corporate governance practices, and to implement other
best practices.

Explanation

The Board of Directors believes a key component of the Company’s continued ability to be successful is
due to its talented employee base and that future success depends on the ability to attract and retain high-caliber
employees. The Board believes the continued ability to grant equity awards is a necessary and essential recruiting
and retention tool for the Company to attract and retain the high-caliber employees, officers and directors critical
to the Company’s success.

The 2006 Stock Incentive Plan is the Company’s only active employee equity plan (other than its 2012
Inducement Equity Plan, all of the authorized shares of which are subject to outstanding awards, and its Employee
Stock Purchase Plans), and as of June 30, 2012 we have approximately 4.8 million shares remaining for issuance
under the Plan. We estimate that this remaining pool will be exhausted before the 2014 Annual General Meeting
despite the fact that, to protect shareholder interests, the Company actively manages its program to use its equity
plan resources as effectively as possible.

The Compensation Committee anticipates that the additional shares requested will enable the Company to
fund the equity compensation program through the end of fiscal year 2016, accommodating anticipated grants
relating to the hiring, retention and promotion of employees and providing reasonable flexibility for acquisitions.
The table below sets out the shares currently available under the plan and if this proposal is approved:

2006 Stock Incentive Plan Share Reservation
Initial share authorized under the Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional shares authorized at 2009 Annual General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares awarded from June 2006 through June 30, 2012, net of cancellations. . . . . . . . . . . . . . . . . . . .
Additional shares requested under this proposal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shares available for issuance at June 30, 2012 (as if proposal approved) . . . . . . . . . . . . . . . . . . .

Shares
(in millions)

14.0
3.5
(12.7)
9.0
13.8

The Board is not proposing an increase to the Company’s conditional capital for Logitech’s employee equity
incentive plans. Since 2000, Logitech has used shares held in treasury from its share repurchase programs to cover
its issuance obligations under employee equity incentive grants, including grants made under the Plan. It expects
to continue to do so.

Logitech has granted equity incentives to employees since its very earliest days in the 1980s. The use of equity
compensation in part reflects market practice, especially in California’s Silicon Valley, where the Company has a
significant presence. However, it is also 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.
The Board of Directors believes that having the ability to offer equity incentives continues to be a key part of
Logitech’s compensation program and the Company’s long-term success.

Material Changes to the Plan

The following summary highlights the proposed material changes to the Plan.

•

The number of shares reserved for issuance pursuant to awards granted under Plan has been increased
by nine million (9,000,000) additional shares from 17.5 million shares to 26.5 million shares.

The automatic expiration date of the Plan has been eliminated.

The share counting provision in the Plan has been amended to provide that certain shares will be counted
against the maximum number of shares reserved for issuance and will not be returned to the Plan for
future awards.

The Plan has been amended to prohibit the repricing of options or stock appreciation rights (SARs).

The eligibility provision in the Plan has been expanded to permit consultants to participate in the Plan.

The following summary of certain material features of the Plan is qualified in its entirety by reference to the

Plan, which is attached to the proxy statement, as filed with the SEC, as Appendix A.

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Key Terms of the Plan at a Glance

The following is a summary of the key provisions of the Plan.

Plan Term:

Eligible Participants:

The Plan, as amended and restated, will become effective on the date the
shareholders approve the Plan and will continue in effect until terminated by
the board of directors. The proposed amendments will apply to new awards as
well as to previously granted awards that are outstanding.

Employees, directors, and consultants of the Company, a parent, a subsidiary
or an affiliate generally are eligible to receive each type of award offered under
the Plan.

Only employees of the Company, a parent or a subsidiary are eligible to receive
incentive stock options (ISOs) under the Plan.

Shares Available for Awards:

26.5 million shares over the term of the Plan, subject to adjustment in the event
of certain changes in the capitalization of the Company.

If the amendments are approved by the shareholders, approximately 13.8 million
shares will be available for the grant of new awards under the Plan (based on
awards granted through June 30, 2012).

Award Types

(1) Options
(2) SARs
(3) Restricted Shares
(4) Restricted Stock Units

Award Terms:

Options and SARs will have a term of no longer than ten years.

ISO Limits:

No more than the maximum number of shares reserved for issuance may be
granted as ISOs under the Plan.

162(m) Share Limits:

Section 162(m) of the Code requires, among other things, that the maximum
number of shares awarded to an individual must be approved by the shareholders
in order for the awards granted under the Plan to be eligible for treatment as
performance-based compensation that will not be subject to the US $1 million
limitation on tax deductibility for compensation paid to certain specified
executive officers.

Accordingly, the Plan limits individual awards as follows:

(1) no award of options or SARs covering more than 6 million of the Company’s
shares may be granted to an individual employee in any fiscal year; and

(2) no award of Restricted Shares or Restricted Stock Units covering more than
4 million of the Company’s shares may be granted to an individual employee
in any fiscal year.

Vesting:

Determined by the administrator within the limits set forth in the Plan.

Not Permitted:

(1) Granting options or SARs at a price below fair market value of the Company’s

shares on the date of grant.

(2) Unless approved by the shareholders, repricing or reducing the exercise
price of an underwater option or SAR, or exchanging underwater options
or SARs for (i) a new option or SAR with a lower exercise price, (ii) a cash
payment or (iii) any other award.

(3) Adding shares back to the number of shares available for issuance when
(i) shares covered by an award are surrendered in payment of the purchase
price or tax withholding of an option or settlement of an award, (ii) shares
are not issued or delivered as a result of net settlement of an outstanding
SAR or option, and (iii) shares are repurchased on the open market with the
proceeds of the exercise of an option.

Summary of the Plan

Administration of the Plan. The Board of Directors or the Compensation Committee, which is made up
entirely of independent directors (collectively referred to herein as the administrator), administers the Plan. The
administrator selects the employees, consultants and directors who will receive awards, determines the number of
shares covered by the awards, and, subject to the terms and limitations in the Plan, establishes the terms, conditions
and other provisions of each award agreement. The administrator may interpret the Plan and establish, amend and
rescind any rules relating to the Plan. The administrator may delegate to a committee of one or more officers of the
Company the ability to grant awards, to the extent permitted by the Company’s corporate governing documents.
The administrator also may adopt sub-plans and corresponding rules, procedures and forms of award agreement for
the purposes of granting awards to participants outside the U.S. and complying with non-U.S. laws.

Share Reserve. The maximum number of shares that we have authorized for issuance under the Plan is

26.5 million shares.

Any award of options or SARs intended to comply with Section 162(m) of the Code is limited to an aggregate
of 6 million shares per individual in a single fiscal year, and any award of restricted shares or restricted stock units
intended to comply with Section 162(m) of the Code is limited to an aggregate of 4 million shares per individual in
a single fiscal year.

Any shares subject to an award that expires or terminates unexercised or before settlement, is not earned
in full or is forfeited, or is settled in cash will again become available for issuance under the Plan. Any dividend
equivalents credited under the Plan and paid in cash shall not be applied against the number of shares that may be
issued under the Plan.

The following shares will be counted against the maximum number of shares reserved for issuance and will
not be returned to the Plan for future issuance: (i) shares covered by an award that are surrendered in payment
of the purchase price or tax withholding of an option or settlement of an award, (ii) shares that are not issued or
delivered as a result of net settlement of an outstanding SAR or option, and (iii) shares that are repurchased on the
open market with the proceeds of the exercise of an option.

Eligibility. Only employees of the Company, a parent or a subsidiary are eligible to receive ISOs. Employees,
directors and consultants of the Company, a parent, a subsidiary or an affiliate are eligible to receive nonstatutory
options, SARs, restricted shares, and restricted stock units. As of June 30, 2012, the Company had approximately
7,600 employees, eight non-employee directors and 160 consultants eligible to receive awards under the
Plan. Consultants, however, may only be granted awards to the extent permitted by the Company’s corporate
governing documents.

Awards. Awards granted under the Plan may include any of the following:

Options. An option is the right to purchase shares of the Company at a fixed exercise price for a fixed period

of time. Each option is evidenced by an award agreement and is subject to the following terms and conditions:

Number of Options. The administrator will determine the number of shares subject to an option granted to

any participant.

Exercise Price. The administrator will determine the exercise price of options granted under the Plan at the
time the options are granted, but the exercise price generally must be at least equal to the fair market value of a share
of the Company on the date of grant. The fair market value of a share generally is determined with reference to the
closing sale price for a share of the Company on the day the option is granted on either the SIX Swiss Exchange
(for options denominated in Swiss francs) or the NASDAQ Global Select Market (for options denominated in U.S.
dollars). The fair market value on the date of grant also may be determined based on an average of trading prices in
a period before or after the date of grant. As of June 30, 2012, the closing price of a share of the Company was CHF
10.22 on the SIX Swiss Exchange and US $10.67 on the NASDAQ Global Select Market.

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Exercise of Option; Form of Consideration. The administrator determines when options become exercisable
and may, in its discretion, accelerate the vesting of outstanding options under certain circumstances. The means of
payment for shares issued upon exercise of an option is specified in each award agreement. To the extent permitted
by applicable law, the Plan permits payment to be made by cash, cash equivalents, promissory note, other shares
(with some restrictions), cashless exercise, net exercise, any combination of the prior methods of payment or any
other form of consideration permitted by applicable law.

Term of Option. The term of an option will be stated in the award agreement. However, the term of an option

may not exceed ten years. No option may be exercised after the expiration of its term.

Termination of Service. After termination of service, an option holder may exercise his or her option for the
period of time determined by the administrator and stated in the award agreement. If no period of time is stated in
a participant’s award agreement, a participant may exercise the option within ninety days after such termination, to
the extent that the option is vested on the date of termination (but in no event later than the expiration of the term of
such option as set forth in the award agreement), unless such participant’s service terminates due to the participant’s
death or disability, in which case the participant (or, if the participant has died, the participant’s estate, designated
beneficiary or the person who acquires the right to exercise the option by bequest or inheritance) may exercise the
option, to the extent the option was vested on the date of termination (or to the extent the vesting is accelerated upon
the participant’s death), within one year after the date of such termination. However, unless a participant’s service is
terminated for cause, if a participant is prevented from exercising an option within the applicable post-termination
time period due to legal compliance issues relating to the issuance of shares, the option will remain exercisable for
thirty days after the date on which the Company notifies the participant that the option is exercisable, but in any
event no later than the expiration of the term of the option.

Stock Appreciation Rights. A SAR is the right to receive the appreciation in the fair market value of shares
of the Company between the grant date and the exercise date, for that number of shares of the Company with
respect to which the SAR is exercised. The Company may pay the appreciation in cash, shares of the Company
with equivalent value, or in some combination thereof, as determined by the administrator. Each award of SARs is
evidenced by an award agreement specifying the terms and conditions of the award. The administrator determines
the number of shares granted to a service provider pursuant to an award SARs. The administrator also determines
the exercise price of SARs, the vesting schedule and other terms and conditions of SARs. However, the exercise
price must be at least equal to the fair market value of a share of the Company on the date of grant, and the term of
a SAR may not exceed ten years.

After termination of service, a participant will be able to exercise the vested portion of his or her SAR for
the period of time determined by the administrator and provided in the award agreement. If no period of time is
provided in a participant’s award agreement, a participant or, in the case of participant’s death, his or her estate or
beneficiary, will generally be able to exercise his or her vested SAR for (i) 90 days after his or her termination for
reasons other than death or disability, and (ii) one year following his or her termination due to death or disability.
In no event may a SAR be exercised after the expiration of its term.

Restricted Shares. Restricted share awards are awards of shares of the Company that vest in accordance with
terms and conditions established by the administrator. Each award of restricted shares is evidenced by an award
agreement specifying the terms and conditions of the award. Vesting can be conditioned on continued employment,
the passage of time, or performance goals. The administrator will determine the number of restricted shares granted
to any participant. The administrator also determines the purchase price, if any, of restricted shares and, unless
the administrator determines otherwise, unvested restricted shares typically will be subject to forfeiture upon the
voluntary or involuntary termination of a participant’s service for any reason including death or disability.

Restricted Stock Units (including Performance-Based Restricted Stock Units). Restricted stock units are
awards that represent the right to receive shares of the Company or cash equal to the value of the shares, or some
combination of both as determined by the administrator, if the restricted stock units vest. Restricted stock units
vest in accordance with terms and conditions established by the administrator, as set forth in the applicable award
agreement. Vesting can be conditioned on continued employment, the passage of time, or performance goals.
Restricted stock units that are subject to performance goals are referred to as performance-based restricted stock

units. No condition that is subject to performance goals may be based on performance over a period of less than
one year. The award agreement may provide for forfeiture or cancellation of the restricted stock units, in whole or
in part, in the event of termination of the participant’s service.

162(m) Performance Criteria. Performance-based awards may, but need not, be based on performance criteria
that satisfy Section 162(m) of the Code. To the extent that awards are intended to qualify as “performance-based
compensation” under Section 162(m) of the Code, the performance criteria will be based on the share price appreciation
(in the case of options and SARs) or on one or more of the following criteria (in the case of restricted shares and
restricted stock units): brand recognition/acceptance, cash flow, cash flow return on investment, contribution to
profitability, cost control, cost positions, cost of capital, customer satisfaction, development of products, earnings
before interest, taxes and amortization; earnings per share, economic profit, economic value added, free cash flow,
income or net income, income before income taxes, market segment share, new product innovation, operating
income or net operating income, operating margin or profit margin, operating profit or net operating profit, process
excellence, product cost reduction, product mix, product release schedules, product ship targets, quality, return on
assets or net assets, return on capital, return on capital employed, return on equity, return on invested capital, return
on operating revenue, return on sales, revenue, sales, share price performance, strategic alliances, total shareholder
return, and working capital. The performance goals may differ from participant to participant and from award to
award and may be used in any combination. Any performance goals may be applied to the Company as a whole,
or to a business unit or a subsidiary, either individually or in any combination, and measured either annually or
cumulatively over a period of years. Performance goals may be measured, as applicable, in absolute terms or in
relative terms (including against prior years’ results and/or against a comparison group).

Nontransferability of Awards. Unless otherwise determined by the administrator, awards granted under the
Plan are not transferable other than by will, by beneficiary designation (if such a designation is permitted by the
administrator) or by the laws of descent and distribution, and may be exercised during the participant’s lifetime
only by the participant. If the administrator makes an award transferable, the award shall contain such additional
terms and conditions as the administrator deems appropriate.

Adjustments upon Change in Capitalization. In the event that the shares of the Company or other securities
change by reason of a stock dividend, stock split, combination or reclassification of shares, extraordinary dividend
of cash or assets, recapitalization, reorganization or any similar event affecting the shares of the Company or other
securities, the administrator will make adjustments to the number and kind of the shares of the Company or other
securities subject to the Plan, including the maximum number of shares that may be issued pursuant to the exercise
of an ISO and the annual limits on the number of shares that may be granted with respect to an ISO award, or
subject to awards previously granted, and the exercise or settlement price of awards previously granted, in order to
reflect the change and to preclude a dilution or enlargement of benefits under an award.

Adjustments upon Dissolution or Liquidation. Effective upon the consummation of the Company’s
liquidation or dissolution, any unexercised award generally will terminate. The administrator may, in its discretion,
provide that a participant will have the right to exercise all or any part of an award, including shares as to which an
award would not otherwise be exercisable, prior to the consummation of such proposed action.

Adjustments upon Merger or Change in Control. In the event the Company is a party to a merger,
consolidation or reorganization, or the sale of substantially all of its assets, then each outstanding award will be
subject to the applicable award agreement, which must provide for one or more of the following: the continuation,
assumption, or substitution of outstanding awards; full exercisability or vesting of outstanding awards (which may
be contingent on the closing of the transaction); or the cancellation of outstanding awards and the payment to the
holder in cash or shares of an amount equal to the per share amount that shareholders of the Company are entitled
to receive or realize in connection with the applicable transaction with respect to the number of shares subject to
the applicable award (which payment may be made subject to continued vesting).

Amendment and Termination of the Plan. The Plan will continue in effect until the Board of Directors
terminates it. In addition, the Board of Directors has the authority to amend, alter, suspend or terminate the Plan, but
no amendment, alteration, suspension or termination may impair the rights of any participant under an outstanding
award, unless agreed otherwise between the participant and the administrator.

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U.S. Federal Tax Consequences

The U.S. federal tax rules applicable to the Plan under the Code are summarized below. This summary does
not include the tax laws of any municipality or state or any country outside the United States in which a participant
resides or to which he or she may be subject.

Nonstatutory Options. An optionee does not recognize any taxable income at the time he or she is granted
a nonstatutory option. Upon exercise, the optionee recognizes taxable income generally measured by the excess
of the then fair market value of the shares over the exercise price. Any taxable income recognized in connection
with an option exercise by an employee is subject to tax withholding. The Company’s U.S. operating subsidiary is
generally entitled to a deduction in the same amount as the ordinary income recognized by the optionee. Upon a
disposition of the shares by the optionee, any difference between the sale price and the optionee’s exercise price, to
the extent not recognized as taxable income as provided above, is treated as long-term or short-term capital gain or
loss, depending on the holding period.

Stock Appreciation Rights. No taxable income is reportable when a SAR is granted to a participant. Upon
exercise, the participant will recognize ordinary income in an amount equal to the amount of cash received and the
fair market value of any shares received. Any additional gain or loss recognized upon any later disposition of the
shares would be long-term or short-term capital gain or loss, depending on the holding period.

Logitech Inc., the Company’s U.S. operating subsidiary, generally will be entitled to a tax deduction in
connection with an award under the Plan in an amount equal to the ordinary income realized by a participant
subject to U.S. taxation and at the time such participant recognizes such income.

Restricted Shares. A participant generally will not have taxable income at the time an award of restricted
shares is granted. Instead, he or she will recognize ordinary income in the first taxable year in which his or her
interest in the restricted shares becomes either (i) freely transferable or (ii) no longer subject to substantial risk of
forfeiture (e.g., vested). However, a holder of restricted shares may elect to recognize income at the time he or she is
granted the award (to the extent it is not vested) in an amount equal to the fair market value of the shares underlying
the award less any amount paid for the shares on the date the award is granted. Upon the sale of any shares received,
any gain or loss, based on the difference between the sale price and the fair market value on the settlement date, will
be taxed as a long-term or short-term capital gain or loss, depending on the holding period.

Logitech Inc. generally will be entitled to a tax deduction equal to the amount of ordinary income recognized
by the participant on the date the shares are freely transferable or no longer subject to a substantial risk of forfeiture,
except to the extent such deduction is limited by applicable provisions of the Code.

Restricted Stock Units. A participant generally will not have taxable income at the time an award of restricted
stock units is granted. Upon the settlement of the award, the participant normally will recognize ordinary income
in the year of receipt in an amount equal to the cash received and the fair market value of any non-restricted shares
received. Upon the sale of any shares received, any gain or loss, based on the difference between the sale price
and the fair market value on the settlement date, will be taxed as a long-term or short-term capital gain or loss,
depending on the holding period.

Logitech Inc. generally will be entitled to a tax deduction equal to the amount of ordinary income recognized
by the participant on the settlement date, except to the extent such deduction is limited by applicable provisions of
the Code.

Performance-Based Compensation Under Code Section 162(m). Special rules limit the deductibility of
compensation paid to certain executive officers in the United States. Under Section 162(m) of the Code, the annual
compensation paid to executive officers in the U.S. may not be deductible to the extent it exceeds US $1 million.
However, Logitech Inc. can preserve the deductibility of certain compensation in excess of US $1 million if the
conditions of Section 162(m) of the Code are met. These conditions include shareholder approval of the Plan and
setting limits on the number of awards that any individual may receive per year. The Plan has been designed to
permit the administrator to grant awards that qualify as performance-based for purposes of satisfying the conditions
of Section 162(m) of the Code, which permits Logitech Inc. to continue to receive a federal income tax deduction
in connection with such awards.

New Plan Benefits

The amount and timing of awards granted under the Plan are determined in the sole discretion of the
administrator and therefore cannot be determined in advance. The future awards that would be received under the
Plan by executive officers and other employees are discretionary and are therefore not determinable at this time.

The following table shows, for each of the individuals and groups indicated, the aggregate number of shares
subject to awards that have been granted to the individuals and groups indicated below under the Plan since its
inception through June 30, 2012:

Name of Individual or Group
Named Executive Officers

Number of Shares
Underlying
Awards Granted

Guerrino De Luca. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gerald P. Quindlen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erik K. Bardman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

220,000
1,287,000
218,000
634,750
372,500
365,500

Current Executive Officers as a Group (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

803,500

Daniel Borel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current Non-Employee Directors as a Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

27,100
42,100
58,100
43,100
57,100
28,600
57,100
42,100
355,300

All Current Employees, including Officers other than Executive Officers, as a Group . . . . . . .

9,975,560

(1)

Includes Messrs. De Luca, Bardman and Sullivan. Mr. Darrell became the Company’s President on
April 9, 2012 and, as of June 30, 2012, had no shares awarded under the 2006 Stock Incentive Plan.

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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 of the Board

The Board of Directors recommends a vote “FOR” approval of the proposed amendments to and restatement
of the 2006 Stock Incentive Plan, including the increase by nine million (9,000,000) shares to the number of shares
available for issuance under the Plan.

Proposal 6

Authorization to Exceed 10% Holding of Own Share Capital

Proposal

The Board of Directors proposes that shareholders authorize the Company to hold more than 10 percent of

its own shares.

Explanation

Under Swiss corporate law, shares that are repurchased are not automatically cancelled, but instead are held
in the Company’s treasury pending either shareholder approval of their cancellation or re-use by the Company
to cover issuance obligations, subject to certain time limits and procedures. Members of the Board of Directors
may be exposed to personal liability under Swiss law for harm to the company as a result of it holding more than
10 percent of its own shares. Approval of this proposal may lessen the potential personal liability of the members
of the Board of Directors in such a circumstance.

Shareholders authorized the Company to hold more than 10 percent of its own shares, to the extent that the
own shares exceeding the 10 percent ownership threshold are being repurchased with a view to being cancelled
at the 2012 and/or 2013 Annual General Meeting of the Company. Since the November 11, 2011 approval by the
Swiss Takeover Board and the SIX Swiss Exchange, the Company has been making repurchases under its stock
repurchase program through a “second trading line” that permits the Company to comply with its obligations under
the Swiss tax laws in connection with repurchasing shares above the 10 percent threshold.

As of June 30, 2012, Logitech held approximately 18.6 percent of its own shares in its treasury and, under
share repurchase plans authorized by the Board of Directors, the Company may acquire up to approximately US
$4.4 million of additional shares. Even after taking into account the share cancellation in Proposal 4, if approved
by shareholders, and holding all other factors constant as of June 30, 2012, the Company will continue to hold
approximately 9.8 percent of its own shares in treasury. If the Company continues repurchases under its stock
repurchase program, it may again accumulate shares in treasury approaching or exceeding 10 percent of its
issued capital.

In order to provide the Company with continued flexibility in the management of its capital, the Board of
Directors seeks authorization to cause the Company to hold more than 10 percent of its own shares, to the extent
that the shares exceeding the 10 percent ownership threshold are being repurchased, over a second trading line
or otherwise, with a view to being cancelled. In the event of a negative vote on this proposal by shareholders, the
Board of Directors will cause the Company not to exceed a 10 percent holding of its own shares.

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” approval of the following resolution:

“The Company shall be authorized to hold more than 10 per cent of its own shares, to the extent that the own
shares exceeding the 10 percent ownership threshold are being repurchased, over a second trading line or
otherwise, with a view to being cancelled on the occasion of a reduction of share capital, to be proposed to the
Annual General Meeting of the Company in 2013 and/or 2014.”

Release of the Board of Directors and Executive Officers from Liability for Activities during Fiscal Year 2012

Proposal 7

Proposal

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

Executive Officers from liability for activities during fiscal year 2012.

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 2012 that have been disclosed to shareholders. This
release from liability exempts members of the Board of Directors or Executive Officers from liability claims
brought by the Company or its shareholders on behalf of the Company against any of them for activities carried out
during fiscal year 2012 relating to facts that have been disclosed to shareholders. Shareholders that do not vote in
favor of the proposal, or acquire their shares after the vote without knowledge of the approval of this resolution, are
not bound by the result for a period ending six months after the vote.

Voting Requirement to Approve Proposal

Recommendation

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

Directors and Executive Officers from liability for activities during fiscal year 2012.

Decrease of the Term of Office for Members of the Board of Directors

Proposal 8

Proposal

The Board of Directors proposes that the term of office for its members be decreased from three years to one

year and that Article 14, Paragraph 1 of the Company’s Articles of Incorporation be amended as follows:

Article 14 (Current text):

Article 14 (New Text):

The Board of Directors of the Company shall be
composed of at least three members appointed by the
general meeting of shareholders for a term of three
years and who shall be indefinitely re-eligible.

The Board of Directors of the Company shall be
composed of at least three members appointed by the
general meeting of shareholders for a term of one year
and who shall be indefinitely re-eligible.

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Explanation

The purpose of this proposal is having all the directors of the Company re- elected every year in order to lead
to more flexibility in the choice and the composition of the Board of Directors. The proposed Article 14, Paragraph
1 of the Company’s Articles of Incorporation provides the legal framework for this. The members of the board
of directors who were elected during the past two years for the term of three years will remain in office until the
expiry of their three- year term. If this Proposal 8 is accepted, this change will be applicable as of the 2012 Annual
General Meeting; it will, in particular, be applicable to the elections under Proposal 9.

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 decrease of the term of office for members
of the Board of Directors from three years to one year, and the related amendment of Article 14, Paragraph 1 of the
Company’s Articles of Incorporation.

Proposal 9

Elections to the Board of Directors

Our Board of Directors is presently composed of nine members. Each director currently 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. Under
Proposal 8, the Board of Directors proposes a reduction of the term of office from three years to one year in the
interest of flexibility.

At the recommendation of the Nominating Committee, the Board has nominated the three individuals below
to serve as directors for a one-year term if Proposal 8 is approved by shareholders and for a three-year term if
Proposal 8 is not approved, beginning in each case as of the Annual General Meeting on September 5, 2012. Two
of the nominees currently serve as members of the Board of Directors. Their current terms expire on the date
of the Annual General Meeting on September 5, 2012. The third nominee was identified and recommended by
the Nominating Committee of the Board and approved by the Board in June 2012 as a nominee for election to
the Board.

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.

9.1 Re-election of Mr. Erh-Hsun Chang

Proposal: The Board of Directors proposes that Mr. Erh-Hsun Chang be re-elected to the Board for a further

one-year term if Proposal 8 is approved or a further three-year term if Proposal 8 is not approved.

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. He is 63 years old and is a Taiwan citizen.

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.

Mr. Chang currently serves on the Audit Committee. The Board of Directors has determined that he is an

independent Director.

9.2 Re-election of Mr. Kee-Lock Chua

Proposal: The Board of Directors proposes that Mr. Kee-Lock Chua be re-elected to the Board for a further

one-year term if Proposal 8 is approved or a further three-year term if Proposal 8 is not approved.

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 in September 2008, 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, from 2006 to 2008. 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. He serves on the Boards of SHC Capital
Ltd. and Yongmao Holdings Limited (where he is lead independent director), each a publicly traded company in
Singapore. 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 is 51 years old and is a Singapore citizen.

Mr. Chua has extensive investment and senior leadership experience, as a venture capitalist in Asia and the
United States, and also as the former chief executive officer 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.

Mr. Chua currently serves on the Compensation Committee and the Nominating Committee of the Board.
He is also the Company’s Lead Independent Director. The Board of Directors has determined that he is an
independent Director.

9.3 Election of Mr. Didier Hirsch

Proposal: The Board of Directors proposes that Mr. Didier Hirsch be elected to the Board for a one-year

term if Proposal 8 is approved or a three-year term if Proposal 8 is not approved.

Didier Hirsch is the Senior Vice President and Chief Financial Officer of Agilent Technologies, Inc., a
measurement company and a technology leader in chemical analysis, life sciences, electronics and communications.
He has been with Agilent since 1999, and served as its Chief Accounting Officer from November 2007 to
July 2010 and interim Chief Financial Officer from April 2010 until being promoted to his current position in
July 2010. Mr. Hirsch also served Agilent as its Vice President, Corporate Controllership and Tax from 2006 until
July 2010, Vice President and Controller from April 2003 to October 2006, and Vice President and Treasurer
from September 1999 to April 2003. Mr. Hirsch had joined Hewlett-Packard Company in 1989, and served as
Director of Finance and Administration of Hewlett-Packard Europe, Middle East and Africa (EMEA) from 1996
to 1999, Director of Human Resources of Hewlett-Packard EMEA from 1998 to 1999, Director of Finance and
Administration of Hewlett-Packard Asia Pacific from 1993 to 1996, and Director of Finance and Administration of
Hewlett-Packard France from 1989 to 1993. Prior to Hewlett-Packard, Mr. Hirsch worked in finance positions with
Valeo Inc., Gemplus S.C.A., SGS-Thomson Microelectronics, I.B.H. Holding S.A., Bendix Corporation and Ford
Motor Company. He serves on the Board of International Rectifier, a New York Stock Exchange (NYSE)-listed
supplier of advanced power management technology. Mr. Hirsch holds an MS degree in Computer Sciences from
Toulouse University and an MS degree in Industrial Administration from Purdue University. He is 61 years old and
is a French citizen.

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As chief financial officer of a leading public technology company, and with significant finance expertise
developed over several decades at technology and manufacturing companies in the U.S.A., EMEA and Asia
Pacific, Mr. Hirsch brings senior leadership, finance (including U.S. GAAP), technology and global experience to
the Board.

The Board of Directors has determined that Mr. Hirsch 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.

Re-election of PricewaterhouseCoopers S.A. as Logitech’s Auditors and Ratification of the Appointment
of PricewaterhouseCoopers LLP as Logitech’s Independent Registered Public Accounting Firm for Fiscal
Year 2013

Proposal 10

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 and that the appointment of PricewaterhouseCoopers LLP as Logitech’s
independent registered public accounting firm for fiscal year 2013 be ratified.

Explanation

PricewaterhouseCoopers S.A., or PwC S.A., upon recommendation of the Audit Committee of the Board, is
proposed for re-election for a further year as auditors for Logitech International S.A. PwC S.A. assumed its first
audit mandate for Logitech in 1988.

The Audit Committee has also appointed PricewaterhouseCoopers LLP, or PwC LLP, the U.S. affiliate of
PwC S.A., as the Company’s independent registered public accounting firm for the fiscal year ending March 31, 2013
for purposes of U.S. securities law reporting. Logitech’s Articles of Incorporation do not require that shareholders
ratify the appointment of PwC LLP as the Company’s independent registered public accounting firm. However,
Logitech is submitting the appointment of PwC LLP to shareholders for ratification as a matter of good corporate
governance. If shareholders do not ratify the appointment, the Audit Committee will reconsider whether to retain
PwC LLP. Even if the appointment is ratified, the Audit Committee may, in its discretion, change the appointment
during the year if the Committee determines that such a change would be in the best interests of Logitech and
its shareholders.

Information on the fees paid by Logitech to PwC S.A. and PwC LLP, as well as further information regarding
PwC S.A. and PwC LLP, is set out below under the heading “Independent Public Accountants” and “Report of the
Audit Committee.”

A member of PwC 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. and the ratification of the appointment of Pricewaterhouse Coopers LLP as
Logitech’s independent registered public accounting firm, each for the fiscal year ending March 31, 2013.

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 nine members
of the Board of Directors as of June 30, 2012. If all of the current directors remain on the Board and all of the
nominees to the Board presented in Proposal 9 are elected, the Board will have ten members.

BOARD OF DIRECTORS INDEPENDENCE

Each of our directors other than Daniel Borel and Guerrino De Luca 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 Erh-Hsun Chang, Kee-Lock Chua and Didier Hirsch, the director nominees
standing for re-election or election at the 2012 Annual General Meeting, each qualifies as independent. 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.

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MEMBERS OF THE BOARD OF DIRECTORS

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

qualifications, are set out below.

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

Matthew Bousquette . . . . . . . . . . . . . . .
53 Years Old
Director since 2005
Chairman, EGI Holdings 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. 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
funds for the Ecole Polytechnique Fédérale de Lausanne. 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.

As a Logitech co-founder, and its former Chairman and Chief Executive
Officer, 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 EGI Holdings
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, Inc.,
Teleflora and the Procter & Gamble Company. He serves on the Board
of the District 181 Foundation, a foundation supporting initiatives that
benefit local district students. 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.

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

Kee-Lock Chua . . . . . . . . . . . . . . . . . . .
51 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 in September 2008, 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, from 2006 to 2008. 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.
He serves on the Boards of SHC Capital Ltd. and Yongmao Holdings
Limited (where he is lead independent director), each a publicly traded
company in Singapore. 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.

Mr. Chua has extensive investment and senior leadership experience, as
a venture capitalist in Asia and the United States, and also as the former
chief executive officer 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 . . . . . . . . . . . . . . . . . . . . . . .
58 Years Old
Director since 2007
Former Chief Executive Officer,
BT Wholesale
British national

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

Sally Davis is the former Chief Executive of BT Wholesale, a division of
BT Group responsible for providing telecommunications services and
bandwidth to carriers and service providers globally, a position she held
from 2007 until she retired in August 2011. 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 also a member of the Board of the Department for Transport, part
of the UK government, a member of the Board of Telenor Group, a
global mobile communications services company, and a member of
the Executive Board of the British Broadcasting Corporation (BBC),
a British public service broadcasting company. She holds a BA degree
from and is a Fellow of University College, London.

Ms. Davis’s experience as a chief executive 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 and as Chief Executive Officer since
April 2012. Mr. De Luca served as Logitech’s acting President and
Chief Executive Officer from July 2011 to April 2012. Previously
Mr. De Luca served as Logitech’s President and Chief Executive
Officer from February 1998, when he joined the Company, to January
2008. Prior to joining Logitech, Mr. De Luca served as Executive
Vice President of Worldwide Marketing for Apple Computer, Inc., a
consumer electronics and computer company, 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 Laurea degree in
Electronic Engineering from the University of Rome, Italy.

As Logitech’s Chairman and current and former Chief Executive
Officer, Mr. De Luca brings significant senior leadership, industry,
strategy, marketing and global experience to the Board.

Neil Hunt. . . . . . . . . . . . . . . . . . . . . . . . .
50 Years Old
Director since 2010
Chief Product Officer,
Netflix, Inc.
U.K. and U.S. national

Richard Laube . . . . . . . . . . . . . . . . . . . .
56 Years Old
Director since 2008
Chief Executive Officer,
Nobel Biocare Holding A.G.
Swiss and U.S. national

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 is a member
of the Board of Directors of Simply Hired, Inc., a private online job
listings company. 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.

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.

Richard Laube is the Chief Executive Officer of Nobel Biocare Holding
A.G., a dental solutions company. He has held that position since April
2011. Previously, he was an Executive Vice President of Nestlé S.A.,
a nutrition, health and wellness company, Chief Executive Officer of
Nestlé Nutrition and a member of the Nestlé Executive Board until
August 2010. 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.
Since January 2011 he has also served as an advisor to the Roark Capital
Group, a private equity firm based in Atlanta, Georgia. 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.

As chief executive of a significant public company, and a former
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.

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

Monika Ribar is the President and Chief Executive Officer of the
Panalpina Group, a Swiss freight forwarding and logistics services
provider. She has held that position since October 2006. Ms. Ribar
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. She also serves on the Boards of SIKA AG, a SIX
Swiss Exchange-listed supplier of specialty chemical products and
industrial materials, and Swiss International Air Lines Ltd., the flag
carrier airline of Switzerland. Ms. Ribar holds a Masters degree in
Economics and Business Administration from the University of St.
Gallen, Switzerland.

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 member of another 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.

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., 7600 Gateway Boulevard, Newark, CA 94560, 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 2012 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 “Board Composition” 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.

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.

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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.

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 his or her 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.

The year of appointment and remaining term of office as of March 31, 2012 for each Director are as follows:

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

Year First Appointed
1988
2005
2006
2000
2007
1998
2010
2008
2004

Year Current Term Expires
Annual General Meeting 2013
Annual General Meeting 2014
Annual General Meeting 2012
Annual General Meeting 2012
Annual General Meeting 2013
Annual General Meeting 2013
Annual General Meeting 2013
Annual General Meeting 2014
Annual General Meeting 2013

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

(2) Executive member of the Board of Directors.

(3) The term of each of Mr. Chang and Mr. Chua expires at the 2012 Annual General Meeting, and each is being

presented for re-election to the Board of Directors 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 US $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.

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

Mr. De Luca, the Company’s former Chief Executive Officer and current Chairman, has served in that role
since January 2008. On July 27, 2011, Mr. De Luca assumed the role of acting President and Chief Executive
Officer, in addition to continuing his duties as Chairman, at the request of the Board of Directors. The Board
appointed Bracken Darrell as President as of April 9, 2012, and it is expected that Mr. Darrell will become the Chief
Executive Officer as of January 1, 2013. The Board considers the holding of both the Chairman and Chief Executive
Officer positions by Mr. De Luca as a temporary arrangement, and intends to return to its general practice of the
positions being held by separate persons upon the appointment of the new Chief Executive Officer.

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, 2012, 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

The Chairman 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.

The Chief Executive Officer 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:

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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. The Lead Independent Director generally is elected
annually by the Independent Directors.

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 generally separated, to help ensure balance
between leadership of the Board and leadership of the day-to-day management of Logitech.

Executive officers and other members of senior management, at the invitation of the Board, 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, 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” below.

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.

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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. The Board’s role in oversight does not have a direct impact on the Board’s
leadership structure, which is discussed above.

Board Meetings

The Chairman sets the agenda for Board meetings, in coordination with the Chief Executive Officer. 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.

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. Additional 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 2012.

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 2012, 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.

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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 determines 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 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 . . . . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . .

Audit

Compensation Nominating

Board
Compensation

X
X

Chair

X
X

X
X
Chair

Chair

Attendance at Board, Committee and Annual Shareholders’ Meetings

In fiscal year 2012 the Board met twelve times, seven of which were regularly scheduled meetings. In addition,
the Audit Committee met ten times, the Compensation Committee met seven times, the Nominating Committee
met two times and the Committee for Board Compensation met once. In addition to its meetings, the Board took
two actions for approval by consent during fiscal year 2012. 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 2011 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 2012 is as follows:

# of meetings held . . . . . . . . . . . . . . . . . . .
Daniel Borel . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . .
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . .
Guerrino De Luca . . . . . . . . . . . . . . . . . . .
Neil Hunt(1) . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . .

Board of
Directors
12
9
11
11
12
11
12
12
10
11

Audit
Committee
10

Compensation
Committee
7

Nominating
Committee
2

Committee for
Board
Compensation
1

10
9

2
7

2
2
2

(1) Mr. Hunt joined the Compensation Committee as of the Annual General Meeting on September 7, 2011, and
attended both of the Compensation Committee meetings that were held after that date. Prior to joining the
Compensation Committee, he attended two of the Committee meetings as an observer.

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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;

reviews with management and the independent auditors the Company’s major financial risk exposures
and the steps management has taken to monitor and control those exposures, including the Company’s
guidelines and policies with respect to risk assessment and risk management; 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.

The Audit Committee currently consists of Ms. Ribar, Chairperson, 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 2012. Five meetings were held in person on the day
prior to the regularly scheduled quarterly Board meeting, for two to four hours, and five 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,
Corporate Controller or Acting 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 except one. Other members of management also participated
in certain meetings. Five meetings also included separate sessions with representatives of the independent auditors
and with the Chief Financial Officer, and four meetings included a separate session with the Vice President of
Internal Audit.

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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. Hunt and
Mr. Laube. Mr. Hunt joined the Committee as of the Annual General Meeting on September 7, 2011. The Board
of Directors has determined that each member of the Committee meets the independence requirements of the
NASDAQ Stock Market listing standards.

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The Compensation Committee met seven times in fiscal year 2012. At the Committee’s invitation, the
Company’s Vice President of Worldwide Human Resources and the Senior Director of Worldwide Compensation &
Benefits attended each meeting, and the Committee’s independent advisor from Radford Consulting attended one
meeting. The Company’s Associate General Counsel also attended one meeting. Five meetings were held in person
and two by teleconference and each meeting lasted for one to two hours. In addition to its meetings, the Committee
took fourteen actions for approval by consent during fiscal year 2012.

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, prior to Mr. Quindlen’s resignation as the Company’s President
and Chief Executive Officer as of July 27, 2011, consisted of Mr. De Luca and Mr. Quindlen. The Committee
for Board Compensation met once in fiscal year 2012. The meeting was held in person and lasted approximately
one hour. At the Committee’s invitation, the Company’s Vice President of Worldwide Human Resources and the
Senior Director of Worldwide Compensation & 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;

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 2012. One of the meetings was held in person and the other by
teleconference, and each meeting lasted approximately one hour.

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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, 2012

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, 2012 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, 2012;

each director and each nominee for director;

the persons named in the Summary Compensation Table in the Compensation Report (the “named
executive officers”); and

all directors and current executive officers as a group.

Number
of Shares
Owned(2)

Shares that May
be Acquired
Within 60 Days(3)

Total
Beneficial
Ownership

Total as a
Percentage
of Shares
Outstanding(4)

— 16,410,000
— 12,654,812
— 11,532,789
— 11,368,313

10.5%
8.1%
7.4%
7.3%

Beneficial Owner(1)
5% Shareholders:
Capital Research Global Investors(5) . . . . . . . . . . . . . . .
Morgan Stanley, The Corporation Trust Company(6) . . . .
FMR LLC(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Daniel Borel(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Directors, not including the Chairman or the
Chief Executive Officer:
Daniel Borel(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16,410,000
12,654,812
11,532,789
11,368,313

11,368,313
19,459
166,985
28,716
29,258
3,467
83,869
17,620

— 11,368,313
94,459
485,985
83,716
59,258
3,467
113,869
112,620

75,000
319,000
55,000
30,000
—
30,000
95,000

Nominee for Director:
Didier Hirsch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—

Named Executive Officers:
Guerrino De Luca . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bracken Darrell(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erik K. Bardman. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gerald P. Quindlen . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current Directors and Executive Officers,

164,018
—
9,148
47,316
11,752
25,606
24,390

946,788
—
50,000
471,250
205,000
—
153,750

1,110,806
—
59,148
518,566
216,752
25,606
178,140

as a Group (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11,902,605

1,805,788 13,708,393

8.7%

Less than 1%

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7.3%
*
*
*
*
*
*
*

*
*
*
*
*
*
*

(1) Unless otherwise indicated, the address for each beneficial owner listed in this table is c/o Logitech International

S.A., Rue du Sablon 2-4 Morges, Switzerland / 7600 Gateway Boulevard, Newark, California 94560.

(2) To Logitech’s knowledge, except as otherwise noted in the footnotes to this table, each director and executive
officer has sole voting and investment power over the shares reported as beneficially owned in accordance
with SEC rules, subject to community property laws where applicable.

(3)

Includes shares represented by vested, unexercised options as of June 30, 2012 and options and restricted stock
units that are expected to vest within 60 days after June 30, 2012. 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.

(4) Based on 155,960,117 shares outstanding on June 30, 2012 (191,606,620 shares outstanding less 35,646,503

treasury shares outstanding).

(5) Based on information set forth in a Schedule 13G filed with the SEC on February 14, 2012 by Capital Research
Global Investors, a division of Capital Research and Management Company (CRMC), reporting ownership of
Logitech’s shares as of December 31, 2011, and indicating sole investment and voting power with respect to all
of the shares. According to the filing, Capital Research Global Investors is deemed to be the beneficial owner
of 16,410,000 shares as a result of CRMC acting as investment advisor to various investment companies. The
address of the entities affiliated with CRMC is 333 South Hope Street, Los Angeles, California 90071.

(6) On April 5, 2012, Morgan Stanley, The Corporation Trust Company notified us that as of August 2010 Morgan
Stanley, The Corporation Trust Company and its subsidiaries held 12,654,812 shares. The address of Morgan
Stanley/The Corporation Trust Company is 1209 Orange Street, Wilmington, Delaware 19801.

(7) Based on information set forth in a Schedule 13G filed with the SEC on February 14, 2012 by FMR LLC,
reporting ownership of Logitech’s shares as of December 31, 2011, and indicating sole investment power with
respect to 11,532,789 shares, sole voting power with respect to 907,789 shares and shared investment power
with respect to none of the shares. According to the filing, FMR LLC is deemed to be the beneficial owners of
11,532,789 shares 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 U.S. mutual funds, and Fidelity Management & Trust Company, a U.S. state chartered bank which acts as
a trustee or investment manager of various pension and trust accounts. The address of the entities affiliated
with FMR LLC is 82 Devonshire Street, Boston, Massachusetts 02109.

(8) The number of shares held by Mr. Borel includes (a) 53,000 shares held by a charitable foundation, of which
Mr. Borel and other members of his family are board members and (b) 6,500 shares held by Mr. Borel’s spouse.
Mr. Borel filed a Schedule 13G/A with the SEC on February 29, 2012, reporting ownership of shares as of
December 31, 2011, and indicating sole investment and voting power with respect to 11,308,813 shares, shared
investment power with respect to 59,500 shares and shared voting power with respect to 53,000 shares.

(9) Mr. Darrell joined the Company as President on April 9, 2012.

SHARE OWNERSHIP GUIDELINES

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

Executive Officer or President 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, 2012, each director had either satisfied these ownership
guidelines or had time remaining to do so.

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The Compensation Committee adopted share ownership guidelines for executive officers and other officers
who report directly to the Chief Executive Officer or President effective September 2008. These guidelines require
the Chief Executive Officer to hold a number of Logitech shares with a market value equal to 3 times his annual
base salary. Officers who report to the Chief Executive Officer or President 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 Chief
Executive Officer 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 Chief Executive Officer or President 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, 2012, eleven of the fifteen executive officers and other officers who report directly to
the Chief Executive Officer or President had either satisfied these ownership guidelines or had time remaining to
do so.

To support our goal of Logitech’s executive officers holding meaningful amounts of Logitech stock, in June
2011, the Compensation Committee adopted a provision, applicable to executive officers and Chief Executive
Officer or President direct reports who have not met at least 75% of their stock ownership targets within three years
of being subject to the ownership requirements, to pay a portion, increasing over time, of any earned bonus under
the annual incentive bonus program in Logitech shares. These shares will be subject to the holding requirements
noted above. In fiscal year 2012, this provision was not used, as no bonuses were earned under the annual incentive
bonus program.

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 and
Mr. De Luca 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.

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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. Since April 1, 2011, 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
US $ 120,000 and in which any current director, director nominee, 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. 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 2012: 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.

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 2011. 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
2012, PwC representatives attended nine of the ten Audit Committee meetings. The Committee met separately five
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.

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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.

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, 2012 and 2011 (in thousands):

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

2012
$3,057
12
634
61
$3,764

2011(5)
$2,822
17
472
16
$3,327

(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.

(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.

(5) Certain fiscal year 2011 amounts have been reclassified to conform to the fiscal year 2012 presentation.

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 or Acting 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, 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 reviewed and discussed our audited financial statements for the fiscal year ended
March 31, 2012, with our management. In addition, The Audit Committee has discussed with the independent
auditors the matters required to be discussed by the Statement on Auditing Standards No.114, 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 Audit 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, 2012.

Submitted by the Audit Committee of the Board

Monika Ribar, Chairperson
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.

We believe that all Section 16(a) filing requirements were met in fiscal year 2012, with the exceptions

noted below:

•

A late Form 4 report was filed for Daniel Borel on June 13, 2012 to report 26,500 shares acquired
from his daughter on June 23, 2011. The shares were previously reported as being indirectly owned by
Mr. Borel and the filing reports that the shares are now directly owned by Mr. Borel.

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INTRODUCTION

COMPENSATION REPORT 2012

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
Annual Report, Invitation and Proxy Statement for our 2012 Annual General Meeting.

EXECUTIVE SUMMARY

Compensation Discussion and Analysis

During Fiscal Year 2012, Logitech faced multiple challenges including lower demand and sales execution
issues in our EMEA region, much lower than expected demand for Logitech Revue with Google TV, and a product
portfolio that was weaker than anticipated. While we addressed these issues as we progressed through the year, they
were the primary drivers of our disappointing full fiscal year performance, with sales essentially flat and major
year-over-year declines in our operating income and share price.

The following are key developments in fiscal year 2012 relating to compensation:

•

Impact of Logitech’s Performance Against Expectations and Relative to Overall Market. When making
compensation decisions in both fiscal year 2012 and at the start of fiscal year 2013, the Compensation
Committee gave considerable weight to Logitech’s continued challenges in executing against our stated
financial plans as well as Logitech’s performance relative to the overall market and our compensation
peer group, as highlighted in “Compensation Elements” and other parts of this discussion below.

Base Salary Actions. Given Logitech’s financial performance exiting fiscal year 2011, only two of our
executive officers received base salary increases for fiscal year 2012 – Mr. Bardman and Mr. Sullivan.
Given Logitech’s relative market performance for the whole of fiscal year 2012 and our executives’
salary position versus the market, only one executive officer, Mr. Bardman, received a base salary
increase for fiscal year 2013.

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No Bonus Plan Payouts. Based on Logitech’s failure to execute against our fiscal year 2012 plan, as
well as our disappointing performance relative to our overall industry, the Compensation Committee
elected not to provide any payouts for executive officers under our annual cash incentive bonus plan, the
Logitech Management Performance Bonus Plan, including those who were eligible to receive a payment
under the Bonus Plan.

Reduced Equity Grants. When determining the size of the annual equity grants provided in fiscal
year 2012, the Compensation Committee had the expectation that our executive officers must build
Logitech’s value at a rate greater than the overall market for these particular grants to deliver value in
line with those of our compensation peer group companies. To reflect this, all executive officers, with
the exception of our Chairman, received smaller equity grants in fiscal year 2012.

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•

Organizational Changes. The past 12 months have seen significant changes in our executive officer
group. Mr. Quindlen, Logitech’s former President & Chief Executive Officer, resigned from Logitech
effective July 27, 2011. Upon Mr. Quindlen’s departure, Mr. De Luca, Logitech’s Chairman of the Board
and former Chief Executive Officer, was appointed to the role of acting President and Chief Executive
Officer. In April 2012, Logitech appointed Bracken Darrell to the role of President with the expectation
that he will succeed Mr. De Luca as Chief Executive Officer in January 2013. As part of our fiscal year
2013 Q1 restructuring, Mr. Heid’s role as Senior Vice President of Worldwide Sales and Marketing
was eliminated and he left the Company. As part of that same restructuring, Mr. Labrousse’s roles as
Executive Vice President of the Products Group and President of Logitech Europe were eliminated, he
ceased to be an executive officer and he assumed the role of Senior Vice President, Consumer Computing
Platform Group.

No Vesting of Prior Performance-Based Stock Units. In fiscal year 2012, Logitech’s performance
resulted in a total shareholder return, or TSR, that was below the overall market. As a result, executive
officers received no shares, and therefore no actual delivered value, from the performance-based stock
units, or PSUs, granted June 2009 whose two- year performance period ended in fiscal year 2012,
because the minimum TSR performance threshold was not met. We believe this appropriately reflects
our pay for performance philosophy and our focus on aligning our executive officers’ compensation
with providing above average performance for our shareholders.

Effective Compensation Program Design. The Compensation Committee believes the design of our
executive compensation programs has and will continue to meet our goal of providing our executives
with market competitive compensation packages that provide for above market rewards when Logitech
outperforms our internal goals, and limited rewards when Logitech’s performance does not meet those
goals. The balance we have built between fixed compensation (base salary), short-term incentives
(annual incentive bonus program), and long-term incentives (equity) ensures that, while our executives
received no short-term incentives in fiscal year 2012, they received market competitive base salaries,
and have every opportunity to receive significant rewards from their long-term incentives if they are
able to deliver above market performance in the coming years. Looking forward, we fully expect
Logitech’s leadership team to drive a turnaround of the Company’s performance that will reward both
our shareholders and the executives who help to deliver improved results.

EXECUTIVE COMPENSATION OBJECTIVES AND PHILOSOPHY

Logitech’s executive compensation programs have been designed to:

•

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

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

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 each executive. However, while compensation is
a central part of attracting, retaining and motivating the best executives and employees, we believe it is not the sole

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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.

EXECUTIVE COMPENSATION PRACTICES

Logitech has employed a number of executive compensation practices that reflect its compensation philosophy:

•

The majority of executive officers’ compensation is designed to be performance-based, using a variety
of performance measures, including measuring Logitech’s performance against Board-established
fiscal and other targets for annual incentive cash bonuses, and relative total shareholder return for
performance-based equity awards.

Logitech has claw-back provisions that apply to its annual incentive cash plan and its equity awards
plans, which provide for the recovery of compensation by Logitech in the event of misconduct.

Logitech does not maintain any payment arrangements that would be triggered solely by a “change in
control” of Logitech.

Logitech does not provide special retirement benefits designed solely for executive officers.

In addition, Logitech has been a leader in providing our shareholders advisory votes on compensation.
Beginning in 2009, Logitech voluntarily submitted its compensation philosophy, policies, and procedures to a
shareholder advisory vote. Our voluntary practice is now a requirement under U.S. legislation that guarantees
shareholders the ability to periodically cast advisory votes on executive compensation, and is reflected in Proposal 2
for our Annual General Meeting in September 2012. We remain committed to providing clear and thorough
disclosure on our executive compensation practices and actions, and our Compensation Committee will carefully
consider the voting results.

At our 2011 Annual General Meeting, shareholders demonstrated strong support for the compensation of our
named executive officers voting in favor of our advisory compensation resolution. The Compensation Committee
was mindful of this support for our pay-for-performance compensation philosophy in retaining our general
compensation practices and setting fiscal year 2012 compensation for our executive officers.

NAMED EXECUTIVE OFFICERS

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

the following individuals:

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Guerrino De Luca, our Chief Executive Officer and Chairman.

Erik K. Bardman, our Chief Financial Officer.

Junien Labrousse, our Senior Vice President, Consumer Computing Platform Group.

L. Joseph Sullivan, our Senior Vice President, Worldwide Operations.

Two former officers who either served as Chief Executive Officer during fiscal year 2012 or were
serving as an executive officer of Logitech at the end of fiscal year 2012: Gerald P. Quindlen and
Werner Heid, respectively.

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ELEMENTS OF COMPENSATION

The principal components of our executive compensation programs are:

•

Base salary.

Performance-based cash compensation, in the form of annual incentive cash payments.

Long-term equity incentive awards, which in fiscal year 2012 consisted of performance-based stock
units and time-based restricted stock units.

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 in “Other Compensation Elements – Perquisites” below.

The following table outlines our objectives for each of the principal components of executive compensation.

Element of Compensation

Base salary

Objective
• Reward individuals for their current contributions to the Company
• Compensate individuals for their expected day-to-day service

Performance-based cash compensation

• Align

executive
performance goals

compensation with Logitech’s

annual

• Make a significant portion of the executive’s annual cash
compensation variable and subject to the achievement of Board-
approved, Company-oriented business goals

• Motivate and reward the executive for above-target performance

Long-term equity incentive awards

• Deliver the majority of total potential compensation via long-term

equity incentives

• Align executive and shareholder interests
• Provide a direct incentive for future performance
• Support retention of the executive

Pay Mix

In determining how we allocate an executive’s total compensation package among base salary, performance-
based cash compensation and long-term equity incentives, we emphasize compensation elements that reward
performance against measures that correlate closely with increases in shareholder value. Accordingly, the majority
of our executive compensation is at- risk, including the annual performance-based cash bonus and the majority of
our long-term equity incentive grants. 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.

The charts below indicate the percentage of total compensation costs in fiscal year 2012 represented by base
salary, performance-based cash compensation, and long-term equity incentive awards for our Chief Executive
Officer, Guerrino De Luca, and for all other named executive officers who remained executive officers through
fiscal year 2012. All underlying amounts are taken from the Summary Compensation Table on page 136.

We design our programs to have the largest portion of potential compensation to be based on long-term
performance (equity), the next largest portion based on short-term performance (annual performance bonus), and
the smallest portion as regular salary. While the fiscal year 2012 pay mix does not appear to reflect this design
philosophy, with executive officers receiving almost half of their annual compensation in base salary and the other
half in equity, it should be noted that the executive officers received only 65% to 75% of their target compensation
for the year. This reflects the impact of: (1) not meeting internal expectations (Board-approved financial targets)

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which resulted in 0% bonus payouts under the annual incentive program; and (2) Logitech’s stock price performance
in fiscal year 2012, which resulted in fiscal year 2012 annual equity grant values that were approximately half the
value of the prior year.

Guerrino De Luca

All Other Named Executive Officers(1)

Equity
incentive
awards
44.0%

Base salary
56.0%

Base salary
42.9%

Equity
incentive
awards
56.6%

Short-term cash
incentive awards
0.5%

(1)

Includes Messrs. Bardman, Labrousse, Sullivan and Heid. Mr. Quindlen only served for a portion of fiscal
year 2012.

Base salary

Consistent with Logitech’s philosophy of tying pay to performance, we aim to deliver a relatively small
percentage of our executive officers’ overall compensation in the form of base salary. Base salary is intended to
recognize the executive’s current contributions to Logitech and compensate the executive for his or her expected
day-to-day service. The Committee targets executive salaries to be at or near the market median for comparable
positions. In fiscal year 2012, due to the annual performance bonuses not paying out, base salaries comprised
approximately 40% to 60% of total compensation in fiscal year 2012 for our named executive officers. Had the
Logitech Management Performance Bonus Plan for fiscal year 2012 paid in full, base salary would have represented
approximately 30% of total compensation costs.

In setting base salary levels for fiscal year 2012, the Compensation Committee considered each executive’s pay
against similar roles among our compensation peer group companies, based on data provided by the Committee’s
independent compensation consultant in March 2011, overall salary increase trends for executive officers, and each
executive’s performance over the past year.

In fiscal year 2012, given the disappointing conclusion to our fiscal year 2011 and the position of our executive
officers’ salaries relative to the median for our compensation peer group companies, we provided salary increases
to only two of our executive officers. Mr. Sullivan, whose compensation was at market median for his role, received
an increase of 3%, which was the average increase for our compensation peer group. Mr. Bardman, whose salary
was below the market median for his position, received a slightly larger increase of 5%. In light of Logitech’s
performance exiting fiscal year 2011, Mr. Quindlen, whose salary was at market median, did not receive a fiscal
year 2012 salary increase. Given that the salaries for Mr. Heid and Mr. Labrousse were significantly above market
median for their roles, neither received a salary increase in fiscal year 2012. Mr. De Luca’s salary was reduced by
9% at the start of the fiscal year to recognize his continued transition to a dedicated Chairman of the Board role. No
adjustment was made to Mr. De Luca’s compensation upon his assumption of the duties of Chief Executive Officer
after the resignation of Mr. Quindlen in July 2011. This resulted in substantially lower-than-median compensation
for our Chief Executive Officer relative to our compensation peer group.

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Named Executive Officer
Guerrino De Luca . . . . . . . . . . . . . . . . . . . .
Erik K. Bardman. . . . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . . . .

2012 Base Salary ($)
500,000
440,000
402,000

2011 Base Salary ($)
550,000
420,000
390,000

Change 2011 to 2012
-9%
5%
3%

Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . .

825,000(1)
570,000

825,000
570,000

0%
0%

Named Executive Officer
Junien Labrousse . . . . . . . . . . . . . . . . . . . .

2012 Base Salary (CHF)
710,000(2)

2011 Base Salary (CHF)
710,000(3)

Change 2011 to 2012
0%

(1) The base salary of Mr. Quindlen, our former President and Chief Executive Officer who resigned from the

Company in July 2011, was annualized based on salary earned through July 2011.

(2) Mr. Labrousse’s fiscal year 2012 base salary was set in Swiss francs. The base salary in U.S. dollars was
$804,135, which was based on converting from Swiss francs to U.S. dollars using an average monthly
exchange rate.

(3) Mr. Labrousse’s fiscal year 2011 base salary was set by the Compensation Committee in U.S. dollars at
$700,000. Mr. Labrousse subsequently relocated to Switzerland during fiscal year 2011 and his base salary
was set to be equivalent at CHF 710,000 based on converting from U.S. dollars to Swiss francs using the
conversion rate of 1.0111 on September 6, 2010, the date on which his relocation was announced.

When evaluating salaries at the start of fiscal year 2013, the Committee took into consideration Logitech’s
disappointing performance in fiscal year 2012 and the relative market position of our executive officers’ salaries.
The Committee authorized an increase only for Mr. Bardman, as his salary was well below the median CFO salary
of our compensation peer group, and the Committee viewed his contributions as important to the financial health
of the Company.

As part of Logitech’s fiscal year 2013 first quarter restructuring, Mr. Labrousse’s role of Executive Vice
President of the Products Group was eliminated, and he assumed the role of Senior Vice President, Consumer
Computing Platform Group. Given this role change, the Committee approved a 12% reduction to Mr. Labrousse’s
annual salary from CHF 710,000 to CHF 625,000. In addition, Mr. Labrousse’s target annual bonus percentage
decreased from 75% to 65% of annual salary, resulting in an annual targeted cash compensation reduction
of 17%.

Performance-based cash compensation

Logitech’s annual performance-based bonuses, under a program established under the Logitech Management
Performance Bonus Plan, or Bonus Plan, compensate executives based on achievement against the key financial
metrics of revenue and adjusted operating income, each of which is equally weighted. These metrics address both
‘‘top line’’ (revenue) and ‘‘bottom line’’ (adjusted operating income) corporate financial goals, both of which the
Committee believes are critical to driving long-term shareholder value.

The Bonus Plan is designed to motivate and reward executives for above-target performance. These annual
performance-based bonuses represent a significant portion of each executive’s potential annual cash compensation,
ranging from 40% to 50% of annual targeted cash compensation. Payout under the incentive plan is variable,
based on the achievement against Logitech financial goals, and can range from 0% to 200% of the executive’s
target incentive.

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Named executive officer bonus targets for fiscal year 2012

In fiscal year 2012 the Committee approved an increase to the target bonus percentage for Mr. Labrousse. This
action was based on management’s request to align bonus target percentages for our senior executives reporting
to the Chief Executive Officer, which raised Mr. Labrousse’s target bonus percentage from 67% to 75% of his
base salary. The bonus targets as a percentage of base salary for the other named executive officers remained the
same as those in fiscal year 2011. The cash bonus target percentages for fiscal year 2012 are summarized in the
table below.

Named Executive Officer
Guerrino De Luca . . . . . . . . . . . . . . . . .
Erik K. Bardman. . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . .

Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . .

2012 Annual Target Bonus
Percentage of Base Salary
100%
75%
75%
75%

2011 Annual Target Bonus
Percentage of Base Salary
100%
75%
67%
75%

Change 2011 to 2012
0%
0%
12%
0%

125%
75%

0%
0%

The target bonus opportunities for named executive officers in fiscal year 2012 are in aggregate at the median
of our compensation peer group, based on peer group data provided by the Committee’s independent compensation
consultant to the Committee in March 2011.

No bonuses were paid to executive officers under the Bonus Plan for fiscal year 2012. The Compensation
Committee paid a discretionary bonus to Mr. Bardman for fiscal year 2012, separate from the Bonus Plan, based
on Mr. Bardman’s contributions during fiscal year 2012.

Performance measures for fiscal year 2012 bonus program

In fiscal year 2012, the Bonus Plan was based on the following performance measures:

Performance Measure
Revenue

Why It is Used
Revenue growth is an essential component
of long-term success and viability and
enables future strategic investments.

Measurement Basis
Generally Accepted Accounting Principles
(GAAP), with adjustments for over/under
performance in key strategic focus areas.

Adjusted Operating
Income/
Contribution
Margin

Generating an increase in per-share value
for investors is a priority, as operating profit
allows Logitech to re-invest in research &
development (R&D), operations and people
for future success.

GAAP, excluding one-time
charges
related
divestitures.

transaction
and

acquisitions

Period Costs &
Variances (PC&V)

PC&V consists of period costs that are not
included in standard cost and variances
regarding standard cost and actual cost.
Lower PC&V results in higher gross margin
and operating income.

GAAP.

Total Supply Chain
Costs

Total Supply Chain costs consist of elements
included in standard cost and costs that are
not included in standard cost but are a part
of Total Cost of Goods Sold. Efficiencies
in Supply Chain increase gross margin and
operating income.

GAAP, with measurement made as a % of
Gross Shipments.

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For all named executive officers, the 2012 Bonus Plan goals were set equal to Logitech’s annual business
plan for fiscal year 2012 as approved by the Board in July 2011, with the exception of the Operating Income
and Contribution Margin goals which were based on the Board approved figures and then adjusted to reflect
the Logitech Revue inventory write-off taken in the first quarter of fiscal year 2012. In addition to 50% of his
bonus being tied to Logitech’s annual revenue and adjusted operating income goals, Mr. Labrousse had 50% of
his bonus based on the annual performance of the Product Group; Mr. Heid had 50% of his bonus based on the
annual performance of the Worldwide Sales & Marketing function; and Mr. Sullivan had 50% of his bonus based
on the annual performance of the Worldwide Operations function, including the Period Costs & Variances and
Total Supply Chain Costs performance measures. All other named executive officers’ bonuses were based 100%
on achievement against Logitech’s revenue and adjusted operating income goals. Please see further details below
under the heading “Bonus Plan performance targets and results for fiscal year 2012.”

The minimum performance required before any bonus payment is made under the fiscal year 2012 Bonus
Plan was 94% of the target performance for all revenue-based metrics, 75% to 85% of the target performance for
profit-based metrics, and 80% of the target performance for the Operations metrics.

Bonus Formula

The formula for determining the bonus awards for fiscal year 2012 was as follows:

Executive’s eligible
wages

Executive’s target
bonus percentage(1) X

Bonus Plan funding
percentage(2)

= Annual bonus award

(1) Expressed as a percentage of base salary.

(2) Based on achievement against target performance measures, including the potential for a greater than 1-to-1
acceleration or deceleration of the funding percentage for each percentage by which actual performance
exceeds or falls below target performance thresholds.

If earned, the bonus is paid to the executive in May for the fiscal year ended March 31.

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Bonus Plan performance targets and results for fiscal year 2012

Logitech did not pay any bonuses to the named executive officers for fiscal year 2012 regardless of the Bonus
Plan formula. The cash bonus awards for fiscal year 2012 were calculated solely on the formula funding results
prescribed by the measures noted in the following table. This resulted in all but two Logitech executives earning 0%
bonus payout under the bonus program formula. In evaluating Logitech’s overall performance against the Board-
approved fiscal year 2012 financial goals, the Compensation Committee used its discretionary authority under the
Bonus Plan to reduce to 0% the payouts for Mr. Labrousse and Mr. Sullivan who otherwise would have earned
bonuses under the Bonus Plan formula. The performance targets, actual performance and funding percentages
from the Bonus Plan in fiscal year 2012 for our named executive officers are set out in the following table:

Minimum
Performance
Target
($s in millions)

Performance
Target
($s in millions)

Maximum
Performance
Target
($s in millions)

Actual
Achievement
($s in millions)

Performance
Against
Target

Funding
Percentage
(Per Plan)

Paid
Percentage(7)

Participant

Performance Measure

Gerald P. Quindlen . .
Erik K. Bardman
Guerrino De Luca

Annual Revenue (50%)
Adjusted Operating
Income (50%)(1)

Werner Heid . . . . . . .

Junien Labrousse . . .

L. Joseph Sullivan . .

Annual Revenue (25%)
Adjusted Operating
Income (25%)(1)
Sales Group
Revenue (25%)
Sales Group
Contribution
Margin (25%)(2) (3)

Annual Revenue (25%)
Adjusted Operating
Income (25%)(1)
Product Group
Revenue (25%)
Product Group
Contribution
Margin (25%)(2) (4)

Annual Revenue (25%)
Adjusted Operating
Income (25%)(1)
Period Costs &
Variances (25%)(5)
Total Supply Chain
Costs (25%)(6)

All named executive officers

2,491.0

2,650.0

3,975.0

2,316.2

130.6

174.1

261.2

72.0

2,491.0

2,650.0

3,975.0

2,316.2

130.6

174.1

261.2

72.0

2,109.7

2,244.4

3,366.6

1,977.0

600.1

706.0

847.2

586.3

2,491.0

2,650.0

3,975.0

2,316.2

130.6

174.1

261.2

72.0

2,331.6

2,480.4

3,720.6

2,165.7

631.8

743.3

892.0

705.1

2,491.0

2,650.0

3,975.0

2,316.2

87%

41%
64%

87%

41%

88%

83%
75%

87%

41%

87%

95%
78%

87%

41%

0%
0%

80%
20%

130.6

214.0

174.1

178.3

261.2

89.2

72.0

149.2

116%

8.7%

7.7%

6.7%

7.5%

102%
87%

102%
55%

0%
0%

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(1) Adjusted Operating Income target reflects a reduction of $34 million from the Board-approved Operating

Income target resulting from the Logitech Revue inventory write-off during the fiscal year.

(2) Contribution Margin targets for the Sales Group and the Product Group reflect a reduction of $10.8M for

Logitech Revue inventory write-off charges.

(3) Sales Group Contribution Margin consists of Net Sales less Standard Cost less Sales & Marketing Direct

Operating Expense plus Capital Usage Fees.

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(4) Product Group Contribution Margin consists of Standard Margin less Product Group Cost of Goods Sold less

Product Group Operating Expenses (excluding PC&V).

(5) Period Costs & Variances consists of period costs that are not included in the standard cost and variances

regarding the standard cost and the actual cost.

(6) Total Supply Chain Costs consists of elements included in the standard cost and costs that are not included in

standard cost but are a part of the Total Cost of Goods Sold.

(7) Compensation Committee resolved that no payouts would be made under the fiscal year 2012 annual cash

incentive plan, even if the funding percentage was greater than zero.

Annual performance-based cash payments

The following table details the fiscal year 2012 and fiscal year 2011 annual performance-based cash payments

for each named executive officer:

Named Executive Officer
Guerrino De Luca . . . . . . . . . . . . . . . . . .
Erik K. Bardman(1) . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . .

Former Officers:
Gerald P. Quindlen(3) . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . .

2012 Annual Incentive
Plan Bonus Earned ($)
$—
—
—
—

2011 Annual Incentive
Plan Bonus Earned ($)
$ 578,000
331,000
535,276(2)
308,000

Change 2011 to 2012
-100%
-100%
-100%
-100%

—
—

1,083,000
415,000

-100%
-100%

(1) Mr. Bardman received a bonus at the discretion of the Compensation Committee, outside of the Bonus Plan,

of $25,000 in recognition of his contributions in fiscal year 2012.

(2) Mr. Labrousse’s fiscal year 2011 bonus was paid in Swiss francs. The amount reported above was converted

to U.S. dollars at a rate of 1.0924 Swiss francs per dollar, the exchange rate as of March 31, 2011.

(3) Mr. Quindlen did not receive a bonus under the Bonus Plan for fiscal year 2012 given his resignation from the

Company in July 2011.

Long-term equity incentive awards

During fiscal year 2012 the Compensation Committee granted our named executive officers long-term equity
incentive awards in the form of performance-based stock units, or PSUs, and 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. In fiscal year 2013, the Compensation Committee granted Logitech’s new President, Mr. Darrell,
a mix of stock options, RSUs, and premium-priced stock options, or PPOs. We believe this equity package, and
use of the PPOs in particular, will serve to motivate and reward Mr. Darrell to lead the Company in delivering
significantly higher stock value for our shareholders.

PSUs. The majority (60%) of the value of the fiscal year 2012 equity awards were in the form of PSUs. The
PSUs are “at-risk” compensation because Logitech’s relative total shareholder return performance must be at or
above the minimum threshold percentile against the NASDAQ-100 Index over the performance period of three
years in order for the executive to receive any shares from the PSU grant. If, at the end of the performance period,
threshold performance is achieved, the number of shares in which the executive officer vests is pro-rated according
to performance.

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The Compensation Committee adopted the use of PSUs for executive officers during fiscal year 2009 in part
to align Logitech’s equity compensation for executives more closely with its compensation peer group, but most
importantly to further align the interests of executive officers with shareholders. The PSUs are intended to:

•

Link compensation to key financial metrics of growth and profitability.

Provide vesting based on Logitech’s stock price performance relative
(NASDAQ-100 Index).

to a benchmark

Require a relatively high standard for any vesting to occur, and provide an extraordinary payout if
Logitech’s performance significantly exceeds that of the benchmark group.

Support pay-for-performance philosophy and retention efforts.

Be less dilutive to shareholders than stock options.

The performance measure for the performance-based restricted stock units granted in fiscal years 2009 to
2012 is the relative total shareholder return, or 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 PSUs, 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 three-year performance period (for grants made in fiscal year 2011 or later) or
two-year performance period (for grants made prior to fiscal year 2011).

In fiscal year 2012, the Compensation Committee adjusted the structure of the PSU vesting schedule based
on our compensation peer group and high-technology market data provided by the Compensation Committee’s
independent compensation consultant. The vesting schedule was adjusted to be more consistent with general
market practice that uses a lower threshold percentile for vesting and a lower vesting multiplier for maximum
performance. The TSR percentile threshold was lowered from 40th percentile to 30th percentile - with the vesting
percentage remaining at 50% for achievement at this performance level. If the minimum performance threshold
of a 30th percentile rank of Logitech TSR against the NASDAQ-100 Index TSR over the performance period is not
met, no shares subject to the PSUs will vest. The target performance level remains unchanged at the 60th percentile,
which yields a vesting percentage of 100%, and the maximum performance level remains unchanged at the 75th
percentile, but the vesting percentage was reduced from 200% to 150%. For a percentile rank between the 30th and
60th percentiles, or between the 60th and 75th percentiles, the percent of shares subject to the PSU that will vest will
be determined by straight-line interpolation.

The structure of the PSUs granted in fiscal year 2012 is summarized in the table below:

PSU Grants Made On or After April 2011:
Percentile Rank of Logitech TSR Against NASDAQ-100 Index TSR
Below 30th Percentile Rank (threshold) . . . . . . . . . . . . . . . . . . . . . .
30th Percentile Rank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60th Percentile Rank (target) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75th Percentile Rank and Above . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Percentage of
Shares that Vest
Under PSU
0%
50%
100%
150%

RSUs. Less than half (40%) of the value of the fiscal year 2012 equity awards were granted in the form of
restricted stock units. 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 generally have a four-year vesting
period, with the RSUs vesting in four equal annual increments. The Committee believes RSUs create incentives
for performance and further align the interests of executives with those of shareholders because an RSU’s value
increases or decreases in conjunction with the Company’s stock price. Because the value at grant of RSUs is
generally greater than that of stock options, we are able to grant a smaller number of RSUs while delivering similar

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grant- date award value. As a result, granting RSUs helps minimize the dilutive effects of our equity awards on
our shareholders and, in the Committee’s view, provides a more cost effective balance of incentive and risk than
standard stock options.

PPOs. In April 2012, the Compensation Committee made its first grant of premium-priced options, or PPOs.
PPOs are stock options that have an exercise price that is set higher than Logitech’s trading price on the date of
grant. The Committee believes PPOs create exceptional incentives for performance and further align the interests
of executives with those of shareholders because a PPO has no value until Logitech’s stock price performance has
been considerably increased. Because the value at grant of PPOs is significantly lower than that of RSUs, PSUs
or standard stock options, we need to grant a larger number of PPOs to deliver similar grant-date award value. As
a result, granting PPOs will more rapidly deplete our stock pool, but in the Committee’s view, this will be offset
by the increased incentive value and potential upside to our shareholders and to the grant recipients. PPOs were
granted to Mr. Darrell as part of his new hire equity package. In the case of Mr. Darrell, his PPO grants had exercise
prices between 175% and 250% of Logitech’s stock price on date of grant. The Committee plans to use PPOs in
fiscal year 2013 as part of the annual equity package provided to our executive officers to further motivate and
reward the team to drive Logitech’s performance in the coming years.

Long-term equity incentive awards granted in fiscal year 2012

During fiscal year 2012 the target value of long-term equity incentive awards granted to Logitech’s named
executive officers was determined by the Compensation Committee at the beginning of the fiscal year based
on our compensation peer group data provided by the Compensation Committee’s independent compensation
consultant and data from the Radford Global Technology Executive Compensation survey, recommendations
from the Committee’s independent compensation consultant and Logitech management with regard to grant
values, anticipated compensation expense and shareholder dilution, as well as the Compensation Committee’s
judgment on the relative impact of each executive officer’s position within Logitech and the performance of each
executive officer.

For fiscal year 2012, the Compensation Committee approved long-term incentive grant values for each named
executive officer that were approximately 10% below the 50th percentiles of grant values for comparable executives
at our compensation peer group companies. This was to reflect the Committee’s expectation that our executive
officers must build Logitech’s value at a rate greater than the overall market to receive equity values in line with
those of our compensation peer group companies. To earn market levels of equity, Logitech will have to outperform
the market in terms of stock price appreciation. Grants were made in particular as follows:

Grants to Mr. Quindlen. On April 11, 2011, as part of the annual executive compensation review, Mr. Quindlen
received a PSU grant for 124,000 shares, assuming 100% target performance, and an RSU grant of 83,000 shares, as
part of his fiscal year 2012 annual compensation as CEO. In the analysis provided by the Committee’s independent
compensation consultant, this grant was slightly below market median annual equity grant values for CEOs in our
compensation peer group.

Grant to Mr. De Luca. On April 11, 2011, as part of the annual executive compensation review, Mr. De Luca
received a PSU grant for 30,000 shares, assuming 100% target performance, as part of his fiscal year 2012
compensation as Chairman. Mr. De Luca did not receive any other equity incentive grants during fiscal
year 2012.

Grants to Other Named Executive Officers. The equity incentive award grants made to all Logitech named
executive officers during fiscal year 2012 are set out in the Grants of Plan-Based Awards in Fiscal Year 2012 table
on page 139.

The following table illustrates grant date fair values, which is the accounting cost to Logitech, of the equity
awards that each named executive officer received in fiscal year 2012 and 2011. The grant date fair values in fiscal
year 2012 decreased by approximately 50% from those in fiscal year 2011 due to:

•

the decrease in the number of shares subject to equity grants made to the named executive officers in
fiscal year 2012 over those in 2011, for the reasons described above;

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•

the fiscal year 2012 change to the structure of the PSU vesting schedule to reduce the maximum vesting
percentage from 200% to 150% resulted in significantly lower grant date fair values; and

the decrease in Logitech’s stock price of approximately 30% between the grant date of the grants made
in 2011 and the grants made in 2012, which impacts the grant date fair value of RSUs on a dollar-for-
dollar basis, and impacts the grant date fair value of PSUs on a greater-than-dollar-for-dollar basis.

Named Executive Officer

Type of
Equity Grant

Guerrino De Luca . . . . . . PSUs

Options

2012 Shares
Subject
to Equity
Grants
(#)
30,000
n/a
30,000

2011 Shares
Subject
to Equity
Grants
(#)
30,000
n/a
30,000

Shares Subject
to Equity
Grants -
Change
2011 to 2012
0%
n/a
0%

2012 Grant
Date Fair
Value
($)(1)
392,400
n/a
392,400

2011 Grant
Date Fair
Value
($)(1)
835,500
n/a
835,500

Grant Date
Fair Value
Change 2011
to 2012
-53%
n/a
-53%

Erik K. Bardman. . . . . . . PSUs
RSUs
Options

Junien Labrousse . . . . . . PSUs
RSUs
Options

L. Joseph Sullivan . . . . . . PSUs
RSUs
Options

Former Officers:

Gerald P. Quindlen . . . . . PSUs
RSUs
Options

Werner Heid . . . . . . . . . . PSUs
RSUs
Options

35,000
23,000
n/a
58,000

25,000
16,000
n/a
41,000

36,000
24,000
n/a
60,000

27,000
18,000
n/a
45,000

124,000
83,000
n/a
207,000

35,000
23,000
n/a
58,000

141,000
94,000
n/a
235,000

36,000
24,000
n/a
60,000

-3%
-4%
n/a
-3%

-7%
-11%
n/a
-9%

-12%
-12%
n/a
-12%

-3%
-4%
n/a
-3%

457,800 1,002,600
487,200
331,200
n/a
n/a
789,000 1,489,800

457,800 1,002,600
487,200
332,580
n/a
n/a
790,380 1,489,800

327,000
230,400
n/a

751,950
365,400
n/a
557,400 1,117,350

1,621,920 3,926,850
1,195,200 1,908,200
n/a
2,817,120 5,835,050

n/a

457,800 1,002,600
487,200
331,200
n/a
n/a
789,000 1,489,800

-54%
-32%
n/a
-47%

-57%
-37%
n/a
-50%

-59%
-37%
n/a
-52%

-54%
-32%
n/a
-47%

(1) Grant date fair value represents the accounting cost to Logitech associated with equity awards. The actual
equity award value delivered to each named executive officer may be considerably lower or higher than
the grant date fair value of the award. The actual equity award value delivered depends on, in the case
of performance-based awards such as PSUs, whether or not the minimum performance condition is met,
and, if so, the level of performance. Actual equity award value delivered also is significantly impacted by
appreciation or depreciation in Logitech’s share price between the grant and vesting dates.

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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 vesting schedule, 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 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.

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
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 2012 grants were made to new hires and promoted
employees, including those at the executive officer level, through regularly scheduled monthly written consents of
the Compensation Committee.

BRACKEN DARRELL’S NEW HIRE PACKAGE

In April 2012, Logitech appointed Mr. Darrell to the role of President, and he is expected to succeed
Mr. De Luca as Chief Executive Officer in January 2013. When establishing Mr. Darrell’s compensation package,
the Compensation Committee based its decisions on our compensation peer group and high-technology market
data for chief executive officer positions provided by the Compensation Committee’s independent compensation
consultant, as well as the compensation and benefits package Mr. Darrell had with his previous employer.

The Compensation Committee positioned Mr. Darrell’s cash compensation package between the 25th and
50th percentile of the market data for chief executive officers, given that it is expected that he will be assuming the
chief executive officer position in January 2013. Mr. Darrell’s base salary is $750,000 and his annual bonus target
percentage is 100%.

When developing Mr. Darrell’s equity package, the Compensation Committee targeted his new hire equity
package at the 50th percentile of the market for chief executive officers to ensure that, over time, he will have an
ownership position and equity value consistent with those held by our compensation peer group chief executive
officers. Mr. Darrell’s equity package consists of (1) 500,000 stock options to provide a meaningful upside for
success in driving the profitable growth of the business; (2) 100,000 RSUs to offset a portion of the earned, but
not vested long-term incentives Mr. Darrell lost when leaving his former employer; (3) 1.2 million premium-priced
stock options, or PPOs, that have value only if there is a significant increase in Logitech’s stock value. We believe
this equity package will provide exceptionally rewarding incentives to Mr. Darrell if he is able to lead the Company
in driving a substantial increase in Logitech’s market value.

Mr. Darrell received a relocation assistance package to move him and his family from Switzerland to the
United States that includes payments for certain relocation costs and expenses such as airfare, house purchase
and sale assistance (including reimbursement for a qualified home purchase of up to 2% of the purchase price and
reimbursement for qualified home sales expenses of up to 1% of the home sale price), a relocation bonus equivalent
to two months’ salary, tax advice assistance, moving costs and temporary living benefits including lodging, meals
and auto rental.

As part of his terms of employment, Mr. Darrell will receive severance benefits in the case of a termination
without cause or under certain conditions associated with a Change of Control, as described in the section “Potential
Payments Upon Termination or Change in Control.”

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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 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 2011 the Committee
retained Radford, an AON/Hewitt company, to provide analysis, advice and guidance with respect to executive
compensation. On the request of the Committee, Radford developed specific executive compensation analyses and
recommendations for Logitech’s Chairman, CEO, and executive officers for fiscal year 2012. In fiscal year 2012, at
the request of the Compensation Committee, Radford provided advice and recommendations to the committee on
competitiveness of executive officer compensation levels, revisions and additions to the Company’s compensation
peer group, goal metrics and bonus design, compensation mix between cash and equity, employment contract
provisions, executive severance packages, executive officer hiring packages, developments in high technology
compensation programs, trends in executive compensation for the Silicon Valley and Europe, legislation and
regulations affecting executive compensation, and the impact of the global economy on executive compensation
and director compensation. Logitech paid fees of less than $ 100,000 to various divisions and subsidiaries of
AON Corporation for services not related to executive compensation consulting services. The majority of these
additional services consisted of activities Radford or AON/Hewitt have provided to Logitech for several years, and
include the purchase of Radford’s industry compensation surveys, the accounting valuations of equity grants, and
the calculation of PSU grant performance.

Role of Executive Officers in Compensation Decisions

While the Compensation Committee sets the compensation of our CEO and other executive officers
with assistance from the independent compensation consultant, the Committee looks to management to make
recommendations to the Committee with respect to both design of compensation programs and specific compensation
decisions. We expect that the Compensation Committee will continue to solicit input from our Chairman and CEO
with respect to compensation decisions affecting executive officers. The Compensation Committee deliberates and
makes decisions on the executive officers’ compensation without the presence of the Chairman or CEO.

The fiscal year 2012 executive officer compensation proposals for base salary, bonus targets and equity
grant values were developed by Radford and presented to both the Compensation Committee and Logitech’s
management. Based on the analysis performed by Radford, 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 former President and Chief Executive Officer, (other than with respect to their own
proposed compensation) provided specific recommendations to the Compensation Committee.

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As part of the annual personnel review and succession planning process, Mr. Quindlen also provided
the Board and the Compensation Committee with his perspective on the performance of Logitech’s executive
officers, and Mr. De Luca provided the Board with his perspective on the performance of Mr. Quindlen. This
performance feedback provided additional input to the Committee when making its decisions on fiscal year
2012 compensation.

Once the Compensation Committee received the analysis and recommendations from both Radford and
Logitech’s management, who were in agreement on the recommended actions, the Committee made all decisions
regarding executive officer fiscal year 2012 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.

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Overview of Factors Considered by Committee

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

compensation, including:

•

Competitive considerations.

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

The performance of Logitech in the prior fiscal year.

Logitech’s performance relative to the Company’s compensation peer group and the overall
technology industry.

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 when setting 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.

Prior to the start of fiscal year 2012, the Compensation Committee asked the Committee’s independent
compensation consultant, Radford, to review the composition of Logitech’s compensation peer group,
which was established in partnership with Fred W. Cook Consulting in March 2008, and re-evaluated by
Fred W. Cook in March 2010, to ensure the companies included remained appropriate for Logitech’s use in executive
compensation benchmarking.

In February 2011, Radford evaluated the current compensation peer group and made recommendations based
on the criteria of (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. 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, our compensation peer group
consists primarily of U.S. public technology companies.

While the composition of the new compensation peer group remains substantially the same as our prior
peer group, Radford recommended, and the Committee approved, the removal of 6 companies whose revenues
were significantly above or below our target annual revenue range of $1 billion to $3 billion, and the addition of
5 companies who met our peer company criteria. Additionally, over the past 18 months, 4 of the companies in our
prior peer group were removed due to acquisition. For fiscal year 2012, the compensation peer group consisted of:

Activision Blizzard, Inc.
Agilent Technologies, Inc.
Analog Devices, Inc.
Autodesk, Inc.
BMC Software, Inc.
Brocade Communications Systems, Inc.

Electronic Arts, Inc.
Intuit, Inc.
Lexmark International, Inc.
NetApp, Inc.
Nuance Communications, Inc.
NVIDIA Corporation

Plantronics
Polycom, Inc.
SanDisk Corporation
Take-Two Interactive
VeriFone Systems, Inc.

The Committee believes the updated compensation peer group is more representative of the companies with
which Logitech competes for talent and, accordingly, benchmarks its compensation against. The peer group used
in fiscal year 2012 has average annual revenues, net income and market capitalization that are closer to Logitech’s
current financial performance, than the peer group established in March 2008.

At the time the fiscal year 2012 executive compensation review was performed, in March 2012, Logitech
ranked at approximately the 40th percentile among the peer group for revenues, at approximately the 20th percentile
for market capitalization and below the 25th percentile for operating income.

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75th Percentile . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Median . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25th Percentile . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Logitech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Revenues
(in millions)
$3,931
2,762
1,219
1,967

Operating Income
(in millions)
$418
253
68
65

Market Capitalization
(in millions)
$11,673
8,769
4,309
3,477

Most recently available four quarters as of February 2011. Market Capitalization as of March 28, 2011.
Produced by Radford,
Source: Hoovers, A D&B Company

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.

We generally seek to be at the median for total compensation, as well as for each of the elements of
compensation, for our executives in comparison to the companies with whom we compete for executive talent,
based on compensation 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 on page 136, were primarily related to market compensation in each position,
based on compensation peer group and survey data, a subjective assessment of the executive’s impact on the
Company’s past and future performance, succession planning and retention. Except with respect to the Bonus Plan,
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.

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.

Timing of compensation decisions

Executive compensation (base salary, target bonus, and equity grants) is typically reviewed and actions are
taken at the start of the fiscal year in order to align all compensation actions, and the related performance periods,
with the fiscal year or multiple fiscal years. 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.

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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. The Committee approved a one-time
discretionary bonus to Mr. Bardman in the amount of $25,000 in fiscal year 2012 to recognize his outstanding
individual contributions during the fiscal year. The Committee did not otherwise award any discretionary bonuses
in fiscal year 2012.

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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 of employment 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 2012
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.

Mr. Labrousse participates in the Switzerland Logitech Employee Pension Fund. This is a defined benefit

pension plan available to all our employees in Switzerland.

Severance and related benefits

All named executive officers are eligible to receive benefits under certain conditions in accordance with
Logitech’s Change of Control Severance Agreement (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.” At the
time of this report, Logitech does not provide any payments to reimburse its executive officers for additional taxes
incurred (also known as “gross-ups”) in connection with a change of control.

Both Mr. Quindlen and Mr. Heid were entitled to severance payments and benefits in connection with their
employment agreement and offer letter, respectively. Upon their departures, they received only the payments
or benefits set forth in those agreements as described in “Potential Payments Upon Termination or Change
in Control.”

When Mr. Darrell was hired, leaving his role as an executive officer of Whirlpool and relocating from Europe
to Silicon Valley, California, he negotiated severance terms in his offer letter. Under that agreement, if Mr. Darrell’s
employment is involuntarily terminated without cause or he resigns for good reason, other than after a change in
control, he is entitled to his base salary and target bonus for between one and two years, depending on the timing
of such termination, and, if he is terminated within his first year of employment, accelerated vesting of a portion
of his new hire grants, as described in “Potential Payments Upon Termination or Change in Control.” The terms in
Mr. Darrell’s agreement are 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 or resigns for good
reason. The Compensation Committee believes that the terms of Mr. Darrell’s severance are consistent with those
of chief executive officers in our compensation peer group as well as the overall technology industry.

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The PSU and RSU award agreements for named executive officers other than Guerrino De Luca provide for
the acceleration of vesting of the RSUs and PSUs 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 PSUs will vest if the change of control occurred within 1 year after the
grant date of the PSUs. If the change of control occurs more than 1 year after the grant date of the PSUs,
the number of shares subject to the PSU that will vest will be determined by applying the performance
criteria under the PSUs 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.

Perquisites

Logitech’s executive officer benefit programs are substantially the same as for all other eligible employees

except as set out below.

Mr. Quindlen, Logitech’s former President and Chief Executive Officer, was provided with personal tax
preparation services in fiscal year 2012. Expenses related to these services were imputed as income to Mr. Quindlen
and the additional tax liabilities were paid by Logitech as a gross-up payment. In addition, Mr. Quindlen received
the use of a car and the payment of travel costs generated when he worked out of our California office. These
benefits were provided in lieu of relocating Mr. Quindlen from his East Coast residence. Expenses related to these
services were imputed as income to Mr. Quindlen and the additional tax liabilities were paid by Logitech as a
gross-up payment. The aggregate amount of Mr. Quindlen’s benefits is reflected in the Summary Compensation
Table below under the heading “All Other Compensation.”

Upon Mr. De Luca’s appointment to the Chief Executive Officer role after the resignation of Mr. Quindlen, he
was provided with the occasional use of a company car and driver during fiscal year 2012. Expenses related to these
services are imputed as income to Mr. De Luca and the additional tax liabilities are paid by Logitech as a gross-up
payment. Mr. De Luca has received no other compensation for his assumption of the Chief Executive Officer role.
The aggregate amount of Mr. De Luca’s benefits is reflected in the Summary Compensation Table below under the
heading “All Other Compensation.”

In fiscal year 2012, Logitech paid a total of approximately $72,749 in costs associated with Mr. Labrousse’s
relocation, including tax consulting services associated with his relocation, from the United States to Switzerland,
which was initiated in fiscal year 2011 under the terms of the relocation policy applicable to executive international
transfers. The aggregate amount of the fiscal year 2012 relocation costs for Mr. Labrousse is 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 retirement programs are based on location of employing company, such as
the Logitech Inc. 401(k) in the United States and the Logitech Employee Pension Fund in Switzerland.

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 certain persons designated by the Company as 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 and accounting considerations

U.S. Tax Code Section 162(m)

We are limited by Section 162(m) of the U.S. Tax Code, or Section 162(m), to a deduction for U.S. federal
income tax purposes of up to $1 million 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 million 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) 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 Bonus Plan may similarly qualify under Section 162(m). 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 service.

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
receives long-term equity incentive awards, in the form of RSUs. Eligible employees at the level of Vice-President
or above also receive PSUs. In addition, full-time professional staff, in countries where Logitech is able to offer the
program, 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 at-risk compensation 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.

133

•

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 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 all long-term equity incentive
award grants.

Compensation Risks Assessment

The Compensation Committee conducted a review, with the assistance of Radford, the Committee’s
independent compensation consultant, of Logitech’s compensation programs in April 2011 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 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. The Compensation Committee conducted a similar risk assessment review in March 2012, and the
Compensation Committee does not believe that there have been any changes in our compensation programs that
would alter the risks involved.

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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
2012 Invitation and Proxy Statement and Annual Report.

Compensation Committee

MATTHEW BOUSQUETTE, Chairman
KEE-LOCK CHUA
NEIL HUNT
RICHARD LAUBE

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SUMMARY COMPENSATION TABLE

The following table provides information regarding the compensation and benefits earned during fiscal
years 2012, 2011 and 2010 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.”

Option
Awards ($)(1)

Non-equity
Incentive Plan
Compensation ($)(2)

Name and Principal Position

Year

Salary ($) Bonus ($)

Guerrino De Luca(4) . . . . . . . . . FY12 500,000
Chief Executive Officer and FY11 550,000
FY10 550,000
Chairman of the Board

—
—
—

Stock
Awards($)(1)
392,400
835,500

—
—
— 118,200

Erik K. Bardman . . . . . . . . . . . FY12 440,000
FY11 420,000
FY10 184,615(5)

Sr. Vice President,
Finance and
Chief Financial Officer

Junien Labrousse(6). . . . . . . . . . FY12 804,135
FY11 718,588
FY10 680,000

Executive Vice-President,
Products and President,
Logitech Europe

25,000

789,000
— 1,489,800
—

—
—
— 620,000

—

790,380
133,547(7) 1,489,800

—
—
545,860 491,400

—

L. Joseph Sullivan . . . . . . . . . . FY12 402,000
FY11 390,000
FY10 378,461

Senior Vice-President,
Worldwide Operations

—
557,400
— 1,117,350
—

—
—
362,520 354,900

Former Officers:

—
578,000
907,000

—
331,000
162,000

—
535,276
680,000

—
308,000
408,000

Gerald P. Quindlen(8) . . . . . . . . FY12 264,000
FY11 825,000
FY10 787,500

President and
Chief Executive Officer

—
— 2,817,120
—
— 5,835,050
— 1,007,600 394,000

—
1,083,000
1,299,000

Werner Heid(9) . . . . . . . . . . . . . FY12 570,000
FY11 570,000
FY10 550,000

Senior Vice President,
Sales and Marketing

—
789,000
— 1,489,800

—
—
362,520 450,450

40,467(10)

—
415,000
607,000

Changes in
Nonqualified
Deferred
Compensation
Earnings ($)
—
—
—

All Other
Compensation
($)(3)
30,306
12,168
12,168

Total ($)
922,706
1,975,668
1,587,368

—
—
—

9,278
7,800
3,257

1,263,278
2,248,600
969,867

176,736
169,128
12,271

1,771,251
3,046,339
2,409,531

11,762
10,501
10,398

971,162
1,825,851
1,514,279

1,770,033
62,365
50,370

4,851,153
7,805,415
3,538,470

12,331
9,741
9,648

1,371,331
2,484,541
2,020,085

(1) These amounts do not represent the actual economic value realized by the named executive officer. Under
SEC rules, the values reported in the “Stock Awards” and “Option Awards” columns reflect 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 4 to the Consolidated Financial Statements included in Logitech’s Annual Report to Shareholders.

For FY12: Assuming the highest level of performance is achieved, the maximum possible value of the PSUs
allocated in FY12, using the market value of our shares on the grant date of the PSUs, was: (a) in the case of
Mr. De Luca, $588,600; (b) in the case of Mr. Bardman, Mr. Labrousse and Mr. Heid, $686,700 each; (c) in
the case of Mr. Sullivan, $490,500; and (d) in the case of Mr. Quindlen, $2,432,880.

136

For FY11: Assuming the highest level of performance is achieved, the maximum possible value of the PSUs
allocated in FY11, using the market value of our shares on the grant date of the PSUs, was: (a) in the case
of Mr. De Luca, $1,218,000; (b) in the case of Mr. Bardman, $1,461,600; (c) in the case of Mr. Labrousse,
$1,461,600; (d) in the case of Mr. Sullivan, $1,503,900; (e) in the case of Mr. Quindlen, $5,724,600; and (f) in
the case of Mr. Heid, $1,461,600.

For FY10: None of the shares represented by PSUs granted in FY10 vested because the minimum performance
condition was not met. Assuming the highest level of performance was achieved, the maximum possible value
of the PSUs allocated in FY10, using the market value of our shares on the grant date of the PSUs, is: (a) in
the case of Mr. Labrousse, $560,800; (b) in the case of Mr Sullivan, $472,680; (c) in the case of Mr. Quindlen;
$1,121,600; and (d) in the case of Mr. Heid, $364,520.

(2) Reflects amounts earned under the Logitech Management Performance Bonus Plan.

(3) Details regarding the various amounts included in this column are provided in the following table entitled “All

Other Compensation.”

(4) Mr. De Luca was appointed Chief Executive Officer effective April 9, 2012. He had been appointed acting

President and Chief Executive Officer effective July 27, 2011.

(5) Mr. Bardman joined Logitech as Sr. Vice President, Finance and Chief Financial Officer commencing on

October 5, 2009.

(6) Mr. Labrousse was the Senior Vice President, Products and President, Logitech Europe until April 22, 2012.
In connection with a restructuring, he ceased to be an executive officer as of April 22. On behalf of the
Company, Mr. Labrousse moved to Switzerland as of January 1, 2011 and his base salary was set at 710,000
Swiss francs. Mr. Labrousse’s salaries for fiscal year 2012 and a portion of fiscal year 2011 reflect a conversion
to U.S. dollars using a Swiss franc to U.S. dollar exchange rate.

(7) Reflects (1) a bonus of $21,047 approved by the Compensation Committee to enable Mr. Labrousse to offset
taxes incurred on a life insurance contract on his life held by the Company in connection with the Logitech Inc.
deferred compensation plan, which life insurance contract the Company surrendered for cash in December,
2010, and (2) a bonus in the amount of $112,500 approved by the Compensation Committee to offset some of
the costs of Mr. Labrousse’s relocation to Switzerland.

(8) Mr. Quindlen’s service as President and Chief Executive Officer ended July 27, 2011.

(9) Mr. Heid’s service as Senior Vice President, Sales and Marketing ended May 15, 2012.

(10) 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

Name

Year

Car
Use or
Service
($) (1)

Guerrino De Luca . . . FY12 16,679
—
—

FY11
FY10

Tax
Preparation
Services
($) (2)

401(k)
($) (3)
— 7,350
— 6,750
— 6,750

Group
Term Life
Insurance
($)
6,277
5,418
5,418

Erik K. Bardman. . . . FY12
FY11
FY10

—
—
—

— 7,350
— 6,750
— 2,841

1,928
1,050
416

Relocation
or Travel
in lieu of
Relocation
($) (4)

—
—
—

Premium for
Deferred
Compensation
Insurance
($) (5)
—
—
—

—
—
—

Defined
Benefit
Pension Plan
Employer
Contrib.
($) (6)

—
—
—

Junien Labrousse . . . FY12
FY11
FY10

— 21,784
— 21,290
—

—
5,063
— 6,750

— 50,965
115,109
—

2,921
3,616

—
1,889
1,905

103,987
22,856
—

L. Joseph Sullivan . . . FY12
FY11
FY10

—
—
—

— 7,350
— 6,750
— 6,750

4,412
3,751
3,648

—
—
—

Former Officers:

Gerald P. Quindlen . . FY12 1,652
FY11 5,936
FY10 4,172

8,775
17,698
19,563

2,856
2,758
2,726

Werner Heid . . . . . . . FY12
FY11
FY10

—
—
—

— 7,350
— 6,750
— 6,750

1,580
4,384
4,209

3,510
2,991
2,898

36,420
31,589
19,700

—
—
—

Severance
($) (7)

Other
Awards
($)

Total
($)

—
—
—

— 30,306
— 12,168
— 12,168

—
—
—

9,278
7,800
3,257

— 176,736
— 169,128
— 12,271

— 11,762
— 10,501
— 10,398

—
—
—

— 1,718,750
—
—
—
—

— 1,770,033
— 62,365
— 50,370

—
—
—

— 1,471
—
—
—
—

12,331
9,741
9,648

(1)

(2)

In the case of Mr. De Luca, represents, in fiscal year 2012, the cost to Logitech of $16,679 related to his
occasional use of a company car and driver to and from work, and tax gross-up payments of $6,954, relating
to the income imputed to Mr. De Luca as a result. In the case of Mr. Quindlen, represents the estimated cost
to Logitech related to his use of a company car while working from the Company’s office in California.

In the case of Mr. Labrousse, represents the cost to Logitech of $21,784 and $21,290 in fiscal years 2012
and 2011, respectively, for tax preparation services for Mr. Labrousse related to his transfer from the U.S. to
Switzerland. In the case of Mr. Quidlen, represents the cost to Logitech of $5,675, $9,910 and $12,925 in fiscal
years 2012, 2011 and 2010, respectively, related to tax preparation services, and tax gross-up payments, of
$3,100, $7,788 and $6,638, 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.

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(4)

In the case of Mr. Labrousse, represents the costs associated with Mr. Labrousse’s relocation to Switzerland,
including household goods shipping, temporary accommodations, flights, rental car and other costs. In the
case of Mr. Quindlen, represents the cost to Logitech for Mr. Quindlen’s travel to and from Logitech’s offices
in California from his residence.

(5) Represents imputed income to Mr. Labrousse from an insurance policy held to fund, in part, the Logitech Inc.

Deferred Compensation Plan.

(6) Represents the matching contributions to the Logitech Employee Pension Fund in Switzerland for

Mr. Labrousse, which are available to all of our regular employees who are on our Swiss payroll.

(7) Represents the severance compensation paid to Mr. Quindlen, the former President and Chief

Executive Officer.

GRANTS OF PLAN-BASED AWARDS IN FISCAL YEAR 2012

The following table sets forth certain information regarding grants of plan-based awards to each of our
named executive officers during fiscal year 2012. For more information, please refer to “Compensation Disclosure
and Analysis.”

Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards (1)

Estimated Future Payouts
Under Equity Incentive
Plan Awards (3)

Grant Date
(MM/DD/YY)

Approval
Date

Threshold
($)

Target
($)

Maximum
($)

Actual
($) (2)

Threshold
(#)

Target
(#)

Maximum
(#)

All
Other
Stock
Awards:
Number
of Shares
of Stock
or Units
(#) (4)

Grant
Date
Fair
Value
($) (5)

04/11/11
N/A

04/11/11

15,000

30,000

45,000

— 392,400

N/A 325,000

500,000 1,000,000 —

Name

Type

Guerrino

De Luca . . . PSU

FY12 Bonus

Erik K.

Bardman . . PSU
RSU
FY12 Bonus

04/11/11
04/11/11
N/A

Junien

Labrousse . . PSU
RSU
FY12 Bonus

04/11/11
04/11/11
N/A

L. Joseph

Sullivan . . . PSU
RSU
FY12 Bonus

04/11/11
04/11/11
N/A

Former Officers:

Gerald P.

Quindlen . . PSU
RSU
FY12 Bonus

04/11/11
04/11/11
N/A

Werner

Heid . . . . . . PSU
RSU
FY12 Bonus

04/11/11
04/11/11
N/A

04/11/11
04/11/11

N/A 214,500

330,000

660,000 —

04/11/11
04/11/11

N/A 383,230

589,584 1,179,168 —

04/11/11
04/11/11

N/A 195,975

301,500

603,000 —

04/11/11
04/11/11

N/A 670,313 1,031,250 2,062,500 —

04/11/11
04/11/11

N/A 277,875

427,500

855,000 —

17,500
—

35,000
—

17,500
—

35,000
—

12,500
—

25,000
—

62,000
—

124,000
—

17,500
—

35,000
—

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52,500

— 23,000

— 457,800
331,200

52,500

— 23,000

— 457,800
332,580

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37,500

— 16,000

— 327,000
230,400

186,000

— 83,000

— 1,621,920
1,195,200

52,500

— 23,000

— 457,800
331,200

(1) The amounts in these columns reflect possible payouts with respect to each applicable performance period for

the fiscal year 2012 bonus programs under the Bonus Plan.

(2) The amounts in this column reflect actual payouts with respect to each applicable performance period for the
fiscal year 2012 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 2012.

(3) Represents PSUs. All shares subject to the PSUs are unvested. The actual amount, if any, of shares that will

vest under the PSUs will not be known until the end of the performance period on April 10, 2014.

(4) Represents RSUs that vest at a rate of 25% per year over four years, on each yearly anniversary of the

grant date.

(5) These amounts do not represent the actual economic value realized by the named executive officer. Amounts
in this column represent the grant date fair value of PSUs and RSUs calculated in accordance with Accounting
Standards Codification (ASC) 718 but does not include a reduction for forfeitures. For PSUs, that number is
calculated by multiplying the value determined using the Monte Carlo method by the target number of units
awarded. For RSUs, that number is equal to the closing price of Logitech shares on the grant date. The key
assumptions for the valuation of the PSUs are presented in Note 4 to the Consolidated Financial Statements
included in Logitech’s Annual Report to Shareholders and Annual Report on Form 10-K for fiscal year 2012
filed with the SEC on May 30, 2012.

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. 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. Other than Mr. Quindlen’s
compensation in connection with his resignation, the compensation earned by the named executive officers in
fiscal year 2012 was not the result of any terms of their employment agreements or offer letters.

Performance-Based Vesting Conditions

Please refer to “Compensation Disclosure and Analysis—Elements of Compensation—Performance-based
cash incentive awards” for a discussion of the performance measures applicable to the Bonus Plan during fiscal
year 2012. In addition, please refer to “Compensation Disclosure and Analysis—Elements of Compensation—
Long-term equity incentive awards” for a discussion of performance measures under the PSUs granted to named
executive officers during fiscal year 2012.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The following table provides information regarding outstanding equity awards for each of our named executive
officers as of March 31, 2012. This table includes unexercised and unvested stock options, unvested RSUs and
unvested PSUs.

Unless otherwise specified, options and RSUs vest at a rate of 25% per year on each of the first four
anniversaries of the grant date. Market value for stock options is calculated by taking the difference between the
closing price of Logitech shares on NASDAQ on the last trading day of the fiscal year ($7.80 on March 31, 2012)
and the option exercise price, and multiplying it by the number of outstanding options. Market value for stock
awards (RSUs and PSUs) is determined by multiplying the number of shares by the closing price of Logitech shares
on NASDAQ on the last trading day of the fiscal year.

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 presented in the table based on a Swiss Franc
to U.S. Dollar exchange rate on March 31, 2012 of 1 to 1.10705.

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Option Awards

Stock Awards

Equity
Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested (#)

Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have Not
Vested ($)(1)

Market
Value of
Shares
or Units
of Stock
That
Have Not
Vested ($)

Number
of Shares
or Units of
Stock That
Have Not
Vested (#)

Option
Expiration Date
(MM/DD/YY)

Market
Value of
Unexercised
Options ($)

04/16/13

04/08/14

04/01/15
04/01/16
04/02/17
04/01/18
04/01/19
—
—

10/23/19
—
—
—
—

09/26/15
10/02/16
04/02/17
10/02/17
10/01/18
12/12/18
06/29/19
—
—
—
—
—

10/24/15
03/23/16
10/02/16
10/02/17
10/01/18
12/12/18
06/29/19
—
—
—
—
—

—

—
—
—
—
—
—
—

—

—
—
—
—
—
—
—
—

—
—
— 18,000
—
—
— 23,000
—
—
41,000

—
—
—
—
—
—
—
—
—
—
—
—
—
—
6,500
—
— 18,000
—
—
— 23,000
—
—
47,500

—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,500
—
— 13,500
—
—
— 16,000
—
—
34,000

—

—
—
—
—
—
—
—
—

—
140,400
—
179,400
—
319,800

—
—
—
—
—
—
—
50,700
140,400
—
179,400
—
370,500

—
—
—
—
—
—
—
35,100
105,300
—
124,800
—
265,200

—

—
—
—
—
—
30,000
30,000
60,000

—
—
36,000
—
35,000
71,000

—
—
—
—
—
—
—
—
—
36,000
—
35,000
71,000

—
—
—
—
—
—
—
—
—
27,000
—
25,000
52,000

—

—
—
—
—
—
234,000
234,000
468,000

—
—
280,800
—
273,000
553,800

—
—
—
—
—
—
—
—
—
280,800
—
273,000
553,800

—
—
—
—
—
—
—
—
—
210,600
—
195,000
405,600

H
S
I
l
g
N
E

Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable

Name

Grant Date
(MM/DD/YY)

Guerrino De Luca . . .

Erik K. Bardman . . .

Junien Labrousse . . .

L. Joseph Sullivan . . .

10/16/02

04/08/04

04/01/05
04/01/06
04/02/07
04/01/08
04/01/09
11/15/10
04/11/11
Total

10/23/09
11/15/10
11/15/10
04/11/11
04/11/11
Total

09/26/05
10/02/06
04/02/07
10/02/07
10/01/08
12/12/08
06/29/09
06/29/09
11/15/10
11/15/10
04/11/11
04/11/11
Total

11/02/05
03/23/06
10/02/06
10/02/07
10/01/08
12/12/08
06/29/09
06/29/09
11/15/10
11/15/10
04/11/11
04/11/11
Total

370,538

200,000

200,000
100,000
50,000
15,000
11,250
—
—
946,788

50,000
—
—
—
—
50,000

100,000
50,000
140,000
50,000
56,250
30,000
22,500
—
—
—
—
—
448,750

25,000
25,000
22,500
50,000
37,500
12,500
16,250
—
—
—
—
—
188,750

Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable

Option
Exercise
Price ($) /
Share
— 11.35(2)
— 16.84(3)
— 20.54(4)
— 20.05
— 27.95
— 26.67
3,750 10.64
—
—

—
—
3,750

50,000 18.76
—
—
—
—

—
—
—
—
50,000

— 20.25
— 21.61
— 27.95
— 30.09
18,750 22.59
15,000 13.48
45,000 14.02
—
—
—
—
—

—
—
—
—
—
78,750

— 20.25
— 19.96
— 21.61
— 30.09
12,500 22.59
12,500 13.48
32,500 14.02
—
—
—
—
—

—
—
—
—
—
57,500

141

Option Awards

Stock Awards

Number of
Securities
Underlying
Unexercised
Options (#)
Exercisable

Number of
Securities
Underlying
Unexercised
Options (#)
Unexercisable

Option
Exercise
Price ($) /
Share

Option
Expiration Date
(MM/DD/YY)

Market
Value of
Unexercised
Options ($)

Name

Former Officers:

Grant Date
(MM/DD/YY)

Equity
Incentive
Plan Awards:
Number of
Unearned
Shares, Units
or Other
Rights That
Have Not
Vested (#)

Equity
Incentive
Plan Awards:
Market or
Payout Value
of Unearned
Shares, Units
or Other
Rights That
Have Not
Vested ($)(1)

Market
Value of
Shares
or Units
of Stock
That
Have Not
Vested ($)

Number
of Shares
or Units of
Stock That
Have Not
Vested (#)

Gerald P. Quindlen. . .

Total

—

Werner Heid . . . . . . .

03/06/09
06/29/09
06/29/09
09/01/09
11/15/10
11/15/10
04/11/11
04/11/11
Total

112,500
32,500
—
8,750
—
—
—
—
153,750

—

37,500
8.01
32,500 14.02
—
8,750 17.44
—
—
—
—

—
—
—
—
78,750

03/06/19
06/29/19
—
09/01/19
—
—
—
—

—
—
—
—
4,500
—
—
—
— 18,000
—
—
— 23,000
—
—
45,500

—
—
35,100
—
140,400
—
179,400
—
354,900

—
—
—
—
—
36,000
—
35,000
71,000

—
—
—
—
—
280,800
—
273,000
553,800

(1) PSUs are shown at their target amount. The minimum performance condition of the PSUs granted on
June 29, 2009, in fiscal year 2010, was not met and therefore no shares vested at the conclusion of the 2-year
performance period on June 29, 2011. The actual conversion, if any, of the PSUs granted in fiscal year 2011
into Logitech shares following the conclusion of the 3-year performance period will range between 50%
and 200% of that target amount, depending upon Logitech’s TSR performance versus the TSR benchmark
over the performance period. The actual conversion, if any, of the PSUs granted in fiscal year 2012 into
Logitech shares following the conclusion of the 3-year performance period will range between 50% and
150% of that target amount, depending upon Logitech’s TSR performance versus the TSR benchmark over
the performance period.

(2) The exercise price of the option as granted (as split-adjusted) is 10.25 Swiss Francs per share.

(3) The exercise price of the option as granted (as split-adjusted) is 15.21 Swiss Francs per share.

(4) The exercise price of the option as granted (as split-adjusted) is 18.55 Swiss Francs per share.

142

OPTION EXERCISES AND STOCK VESTED FOR FISCAL YEAR 2012

The following table provides the number of shares acquired and the value realized upon exercise of stock
options and the vesting of RSUs during fiscal year 2012 by each of our named executive officers. No shares resulted
from PSUs whose performance period ended during fiscal year 2012 because the minimum performance condition
was not met.

Name
Guerrino De Luca . . . . . . . . . . . . . .
Erik K. Bardman. . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . .
Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . .

Option Awards

Stock Awards

Number of Shares
Acquired on
Exercise (#)

Value Realized on
Exercise ($)(1)

Number of Shares
Acquired on
Vesting (#)

Value Realized on
Vesting ($)(2)

—
—
—
—

50,000
—

23,000
—

—
6,000
9,250
6,750

5,000
8,250

—
48,660
84,930
61,605

55,800
73,770

(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.

(2) Based on the closing trading price of Logitech shares on the NASDAQ Global Select Market.

PENSION BENEFITS FOR FISCAL YEAR 2012

Junien Labrousse, Senior Vice President, Consumer Computing Platforms Group, is a participant in Logitech’s

Swiss Pension plan, which is a benefit offered to all eligible Swiss employees.

No other 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.”

Name
Guerrino De Luca . . . . . . . . . . . . . . . . . . . . . . . .
Erik K. Bardman. . . . . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . . . . . . . .
Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Plan Name

—
—
Logitech Employee Pension Fund
—

Number
of Years of
Credited
Service (#)
n/a
n/a
1.25
n/a

Present
Value of
Accumulated
Benefit ($)
—
—
290,827
—

H
S
I
l
g
N
E

—
—

n/a
n/a

—
—

143

NON-QUALIFIED DEFERRED COMPENSATION FOR FISCAL YEAR 2012

The following table sets forth information regarding the participation by our named executive officers in the

Logitech Inc. U.S. Deferred Compensation Plan during fiscal year 2012 and at fiscal year-end.

Name
Guerrino De Luca . . . . . . . . . . . . . . .
Erik K. Bardman. . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . .
Former Officers:
Gerald P. Quindlen . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . .

Executive
Contributions in
Last Fiscal Year
($)(1)

—
—
—
108,738

—
154,063

Logitech
Contributions in
Last Fiscal Year
($)
—
—
—
—

Aggregate
Earnings in
Last Fiscal
Year ($)(2)
—
—
92,724
16,645

Aggregate
Withdrawals/
Distributions
($)
—
—
—
—

Aggregate
Balance at Last
Fiscal Year End
($)

—
—

2,680,680(3)
365,940

—
—

—
5,938

—
—

—
215,572

(1) Amounts are included in the Summary Compensation table in the “Salary” column for fiscal year 2012. 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.

(3) Mr. Labrousse’s aggregate contributions of $1,392,280 for fiscal year 2008 through fiscal year 2011 were

reported as compensation to Mr. Labrousse in the Summary Compensation table.

NARRATIVE DISCLOSURE TO NON-QUALIFIED DEFERRED COMPENSATION TABLE

The Logitech Inc. U.S. 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 mutual funds selected by Logitech Inc.’s Deferred
Compensation Committee for this purpose, and the participants’ contributions are invested according to the
participants’ elections. Investment elections may be changed by participants at any time.

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 because the executive resigns for good reason.

PSU 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.

144

•

An offer letter with Bracken Darrell, under which he is entitled to severance benefits if we terminate his
employment without cause or if he resigns for good reason.

An offer letter with Werner Heid, under which he was entitled to severance benefits if we terminate his
employment without cause.

These agreements are described in more detail in the subsections 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.
The change of control agreement with Mr. De Luca is 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. 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 Chief
Executive Officer, are subject to acceleration under the agreement. Options granted to him after January 28, 2008
are not subject to acceleration.

145

PSU and RSU Award Agreements

The PSU and RSU award agreements for named executive officers other than Guerrino De Luca provide for
the acceleration of vesting of the RSUs and PSUs 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 PSUs will vest if the change of control occurred within one year after
the grant date of the PSUs. If the change of control occurred more than one year after the grant date
of the PSUs, the number of shares subject to the PSU that will vest will be determined by applying the
performance criteria under the PSUs as if the performance period had ended on the date of the change
of control.

Bracken Darrell Offer Letter

We entered into an offer letter with Bracken Darrell dated March 13, 2012. Under his offer letter, in the event
he is terminated without “cause” or resigns (within 30 days after Logitech fails to remedy the condition reported to
be good reason during a 30-day cure period) for good reason, other than after a change of control, he is entitled to
receive severance benefits as follows:

•

If the termination occurs within one year after his employment start date, he is entitled to:

▪

an amount equal
withholdings; plus

to 200% of his

then-current annual base salary,

less applicable

an amount equal to 200% of his then-current annual targeted bonus amount, less applicable
withholdings; plus

25% of his initial stock option grant for 500,000 Logitech shares and 25% of his initial restricted
stock unit grant for 100,000 shares will accelerate and vest.

•

If the termination occurs more than one year but within two years after his employment start date, he is
entitled to:

▪

an amount equal
withholdings; plus

to 150% of his

then-current annual base salary,

less applicable

an amount equal
applicable withholdings.

to 150% of his

then-current annual

targeted bonus amount,

less

•

If the termination occurs more than two years after his employment start date, he is entitled to:

▪

an amount equal
withholdings; plus

to 100% of his

then-current annual base salary,

less applicable

an amount equal
applicable withholdings.

to 100% of his

then-current annual

targeted bonus amount,

less

In each case, Mr. Darrell would also be entitled to have Logitech pay the premiums to continue his group
health insurance coverage under COBRA during the applicable severance period, subject to any maximum length
of coverage limits under applicable law and until he becomes eligible for benefits from a subsequent employer.

“Cause” in Mr. Darrell’s offer letter is defined as: (i) theft, dishonesty, misconduct or falsification of any
employment or Logitech records; (ii) improper disclosure of Logitech’s confidential or proprietary information;
(iii) failure or inability to perform any assigned duties after written notice from Logitech of, and a reasonable
opportunity to cure, such failure or inability; (iv) conviction (including any plea of guilty or no contest) of a felony,
or of any other criminal act if that act impairs his ability to perform his duties; or (v) failure to cooperate in good

146

faith with a governmental or internal investigation of Logitech or its directors, officers or employees, if Logitech
has requested his cooperation. “Good reason” in Mr. Darrell’s offer letter is defined as: (i) a material reduction of
his authority, duties or responsibilities, or (ii) if, by January 31, 2013, he is not reporting directly to the Logitech
International Board of Directors as Chief Executive Officer.

If any amounts become payable to Mr. Darrell under his change of control agreement, or any successor
agreement, the aggregate amount of any amounts payable to Mr. Darrell under his offer letter will be reduced to the
extent necessary so as to prevent the duplication of severance payments to him.

If amounts payable to Mr. Darrell under any arrangement or agreement with Logitech are payable as a result
of a change of ownership or control of Logitech and exceed the amount allowed under section 280G of the Code,
and would be subject to the excise tax imposed by section 4999 of the Code, then, prior to the making of any
Payments to Mr. Darrell, a “best-of” calculation will be made comparing (1) the total benefit to Mr. Darrell from
the Payments after payment of the excise tax, to (2) the total benefit to Mr. Darrell if the Payments are reduced to
the extent necessary to avoid being subject to the excise tax, and Mr. Darrell will be entitled to the Payments under
the more favorable outcome.

Agreements with Former Executive Officers

Gerald Quindlen Employment Agreement

Mr. Quindlen was subject to an employment agreement effective December 3, 2008. Under his employment
agreement, in the event he was terminated without “cause” other than after a change of control, he was 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 was 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 became 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 would
have been reduced to the extent necessary so as to prevent the duplication of severance payments to him.

Mr. Quindlen resigned from Logitech in July 2011 and received a severance package of $1,876,250 (including

the estimated value of COBRA health insurance) as prescribed under his Employment Agreement.

H
S
I
l
g
N
E

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 was terminated without “cause” other than after a change of control, he was 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.

“Cause” in Mr. Heid’s offer letter was defined substantially the same as in Mr. Quindlen’s employment
agreement, described above. If any amounts became 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 would
have been reduced to the extent necessary so as to prevent the duplication of severance payments to him.

147

Mr. Heid resigned from Logitech, effective as of May 2012, and received a severance package of $758,925

(including the estimated value of COBRA health insurance) as prescribed under his Offer Letter.

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, 2012, subject to the terms of the change of control agreement and the
terms of the PSU and RSU award agreements with each of the listed named executive officers.

For Mr. Heid, the additional table below estimates the amount of compensation that would have been paid
in the event of an involuntary termination without cause, assuming that the termination was effective as of
March 31, 2012, subject to the terms of the agreement with him. As of March 31, 2012, 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 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, 2012, the last business day of the fiscal year, of $7.80. 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, 2012 were calculated based on a Swiss Franc to U.S. Dollar
exchange rate on March 31, 2012 of 1 to 1.10705.

Involuntary Termination After Change in Control

Name
Guerrino De Luca . . . . . . .
Erik K. Bardman. . . . . . . .
Junien Labrousse . . . . . . .
L. Joseph Sullivan . . . . . . .

Base Salary(1)
500,000
440,000
786,006
402,000

Bonus(2)
—
—
—
—

Other
Benefits(3)
26,900
26,900
26,900
26,900

Value of
Accelerated
Equity Awards(4)

—
592,800
643,500
460,200

280G cut-back(5)
—
—
—
—

Total
526,900
1,059,700
1,456,406
889,100

Former Officer:
Werner Heid . . . . . . . . . . .

570,000

—

26,900

627,900

—

1,224,800

(1) Represents fiscal year 2012 annual base salary in effect on March 31, 2012.

Mr. Labrousse’s salary amount was converted using the exchange rate of 1 CHF to 1.10705 USD as of
March 31, 2012.

(2) No bonuses were earned or paid for fiscal year 2012.

(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, 2012, 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 April 11, 2011, in each case held by the named executive officer as of March 31, 2012. The
minimum performance condition under the terms of the PRSUs granted November 15, 2010 was not met as of
March 31, 2012, and therefore, no value is attributed to the shares subject to such PRSUs. Per the terms of his
agreements, Mr. De Luca does not receive any acceleration of RSU or PRSU vesting.

(5) Under the Change of Control agreements for the executive officers listed above, 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 was not applicable to any of these named executive
officers for a March 31, 2012 termination date.

148

Note:

Gerald Quindlen terminated his employment on July 27, 2011 - see Note under “Potential Payments upon
Involuntary Termination” table below for details regarding amounts provided to Mr. Quindlen in connection
with his termination of employment.

Potential Payments Upon Involuntary Termination

Name
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Base Salary(1)
$ 427,500

Bonus(2)
$320,625

Total
$748,125

(1) Represents 75% of Mr. Heid’s fiscal year 2012 annual base salary in effect on March 31, 2012.

(2) Represents 75% of Mr. Heid’s fiscal year 2012 target bonus in effect on March 31, 2012.

Note:

Gerald Quindlen terminated his employment with the Company on July 27, 2011 and received an amount
equal to his then-current annual base salary plus his annual targeted bonus amount, which together totaled
$1,856,250, and was entitled to receive the continuation of health insurance benefits for up to 12 months,
with an estimated total value of $19,800.

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 consisted of Guerrino De Luca, our Chairman, and, until
his resignation in July 2011, Gerald Quindlen, our former Chief Executive Officer. The general policy is that
compensation for non-employee directors should be a mix of cash and equity-based compensation. To assist the
committee in its annual review of director compensation, Logitech’s compensation department provides director
pay practices and compensation data compiled from the annual reports and proxy statements of companies within
the NASDAQ 100 and technology companies generally considered comparable to Logitech.

Cash compensation of non-employee directors consists solely of annual retainers based on Board and
committee service. Non-employee directors also receive an annual RSU grant based on a fixed market value. These
grants vest on the one-year anniversary of Board service.

Directors who are Logitech employees do not receive any compensation for their service on the Board of

Directors. Non-employee director compensation currently consists of the following elements:

Annual cash retainer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
An additional annual cash retainer for the lead independent director. . . . . . . . . . . . . . .
Annual retainer for the Audit Committee chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual retainer for the Compensation Committee chair. . . . . . . . . . . . . . . . . . . . . . . . .
Annual retainer for non-chair Audit Committee members. . . . . . . . . . . . . . . . . . . . . . . .
Annual retainer for non-chair Compensation Committee members. . . . . . . . . . . . . . . .
Annual retainer for Nominating Committee members. . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual RSU grant. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation for the number of travel days spent traveling to attend Board and

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Total (CHF)
60,000
20,000
40,000
30,000
15,000
10,000
3,000
120,000

Total ($)(1)
66,423
22,141
44,282
33,212
16,606
11,071
3,321
132,846

committee meetings, per day rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2,500

2,768

Reimbursement of reasonable expenses for non-local travel (business class).

(1) CHF amount was converted using the exchange rate of 1 Swiss franc to 1.10705 U.S. Dollar as of

March 31, 2012.

Non-employee 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, held in September

each year.

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The following table summarizes the total compensation earned or paid by Logitech during fiscal year 2012
to continuing members of the Board of Directors who were not executive officers as of March 31, 2012. Because
the table is based on Logitech’s fiscal year, and annual service for purposes of Board compensation is measured
between the dates of Logitech’s Annual General Meeting, held in September each year, the amounts in the table do
not necessarily align with the description of Board compensation above. The compensation paid to Guerrino De
Luca and Gerald Quindlen, the members of the Board of Directors that are or were Logitech executive officers as
of fiscal year-end or during fiscal year 2012, is presented in the Summary Compensation Table.

Non-Employee Director Summary Compensation for Fiscal Year 2012

Name
Daniel Borel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fees Earned In
Cash ($)
79,616
142,171
108,050
128,522
111,462
92,885
90,989
125,110

Stock Awards
($)
139,466
137,685
137,685
137,685
139,466
137,685
139,466
139,466

Total ($)
219,082
279,856
245,735
266,207
250,928
230,570
230,455
264,576

The following table presents additional information with respect to the equity awards held as of March 31, 2012

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 years 2010 and 2011 fully vest on approximately the one-year anniversary date of
the grant.

Market value for stock options is calculated by taking the difference between the closing price of Logitech
shares on NASDAQ on the last trading day of the fiscal year ($7.80 on March 31, 2012) and the option exercise price,
and multiplying it by the number of outstanding options. Market value for RSUs is determined by multiplying the
number of shares by the closing price of Logitech shares on NASDAQ on the last trading day of the fiscal year.

Information regarding the option and stock awards held as of March 31, 2012 by Guerrino De Luca and
Gerald Quindlen, the only members of the Board of Directors that are or were Logitech executive officers as of such
date or during fiscal year 2012, 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 is based on a Swiss Franc to U.S. Dollar exchange rate on March 31, 2012
of 1 to 1.10705.

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Outstanding Equity Awards for Non-Employee Directors at Fiscal 2012 Year-End

Name
Daniel Borel . . . . . . . . .

Matthew Bousquette . . .

Erh-Hsun Chang(3) . . . . .

Kee-Lock Chua . . . . . . .

Sally Davis . . . . . . . . . .

Neil Hunt . . . . . . . . . . . .

Richard Laube . . . . . . . .

Monika Ribar . . . . . . . .

Number of
Securities
Underlying
Unexercised
Options
Exercisable (#)

—
—
60,000
15,000
—
75,000
109,000
120,000
60,000
30,000
—
319,000
40,000
15,000
—
55,000
30,000
—
30,000
—
—
—
30,000
—
30,000
80,000
15,000
—
95,000

Option Awards

Stock Awards

Number of
Securities
Underlying
Unexercised
Options
Unexercisable (#)(1)
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

Option
Exercise
Price /
Share ($)
—

15.41
23.29
—

7.76
11.44
20.25
19.43
—

15.82(4)
19.43
—

38.14(5)
—

—
—

28.98(7)
—

16.25(8)
38.14(9)
—

Number of
Shares or
Units of
Stock That
Have Not
Vested (#)(2)

Market
Value of
Unexercised
Options ($)

— 13,700
13,700
—
—
—
—
— 13,700
13,700
—
4,360
—
—
—
—
—
—
— 13,700
13,700
—
—
—
—
— 13,700
13,700
—
—
— 13,700
13,700
9,933 (6)

—
— 13,700
23,633
—
—
— 13,700
13,700
—
—
—
—
— 13,700
13,700

Market Value of
Shares or Units of
Stock That Have
Not Vested ($)
106,860
106,860
—
—
106,860
106,860
—
—
—
—
106,860
106,860
—
—
106,860
106,860
—
106,860
106,860
77,477
106,860
184,337
—
106,860
106,860
—
—
106,860
106,860

Grant Date
(MM/DD/YY)
09/08/11
Total
06/16/05
09/10/08
09/08/11
Total
09/12/03
07/12/04
09/26/05
06/16/06
09/08/11
Total
06/26/03
06/16/06
09/08/11
Total
06/20/07
09/08/11
Total
09/09/10
09/08/11
Total
09/10/08
09/08/11
Total
06/24/04
06/20/07
09/08/11
Total

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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) Unless otherwise indicated, the shares subject to these stock awards vest in full on August 31 (approximately

one year) following the grant date.

(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 14.29 Swiss Francs per share.

(5) The exercise price of the option as granted is 34.45 Swiss Francs per share.

(6) Represents a stock award of 14,900 shares which vests at a rate of 33% per year over 3 years from the grant

date, on each yearly anniversary of the grant date.

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(7) The exercise price of the option as granted is 26.18 Swiss Francs per share.

(8) The exercise price of the option as granted (as split-adjusted) is 14.68 Swiss Francs per share.

(9) The exercise price of the option as granted is 34.45 Swiss Francs per share.

EQUITY COMPENSATION PLAN INFORMATION

The following table summarizes the shares that may be issued upon the exercise of options, RSUs, PSUs and
other rights under our employee equity compensation plans as of March 31, 2012. These plans include the 1996
Employee Share Purchase Plan (U.S.), 2006 Employee Share Purchase Plan (Non-U.S.) (together, the “ESPPs”)
and 2006 Stock Incentive Plan. The table also includes shares that may be issued upon the exercise of outstanding
options under the 1996 Stock Plan (which plan terminated in 2006). The table does not include the 1.8 million
shares that may be issued pursuant to the 2012 Stock Inducement Equity Plan adopted in April 2012 in connection
with the hiring of Mr. Darrell or the additional shares that may be issuable pursuant to the proposed amendment to
add an additional 9 million shares to the 2006 Stock Incentive Plan that is the subject of Proposal 5 of this Invitation
and Proxy Statement.

(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)) (#)

Plan Category
Equity Compensation Plans

Approved by Security Holders . . . . . . .

17,158,655(2)

Equity Compensation Plans

Not Approved by Security Holders . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—
17,158,655

$ 19

—
$ 19

8,857,537

—
8,857,537

(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).

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. As of March 31, 2012, Logitech has granted stock options, RSUs and PSUs 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 17.5 million shares is reserved for issuance under the 2006 Plan. As of March 31, 2012, a total of
4,331,255 shares were available for issuance under this plan.

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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.), or 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.), or 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 21 million shares have been reserved for issuance under both
the 1996 and 2006 ESPP plans. As of March 31, 2012, a total of 4,526,282 shares were available for issuance under
these plans.

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MANAGEMENT’S 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
in our Annual Report on Form 10-K for the fiscal year ended March 31, 2012, available at www.sec.gov, under the
caption ‘‘Risk Factors,’’ and below in “Quantitative and Qualitative Disclosures about Market Risk.’’

Overview of Our Company

Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning
multiple computing, communication and entertainment platforms, we develop and market innovative hardware
and software products that enable or enhance digital navigation, music and video entertainment, gaming, social
networking, audio and video communication over the Internet, video security and home-entertainment control. We
have two operating segments, peripherals and video conferencing.

Our peripherals segment encompasses the design, manufacturing and marketing of peripherals for PCs
(personal computers), tablets and other digital platforms. Our products for home and business PCs include mice,
trackballs, keyboards, interactive gaming controllers, multimedia speakers, headsets, webcams, and lapdesks. Our
tablet accessories include keyboards, keyboard cases and covers, headsets, wireless speakers, and stands. Our
Internet communications products include webcams, headsets, video communications services, and digital video
security systems. Our digital music products include speakers, earphones, custom in-ear monitors and Squeezebox
Wi-Fi music players. For home entertainment systems, we offer the Harmony line of advanced remote controls. For
gaming consoles, we offer a range of gaming controllers and microphones, as well as other accessories.

Our peripherals research and product management teams are organized along product lines, and are
responsible for product strategy, industrial design and development, and technological innovation. Our 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
sales and marketing groups. Our retail sales and marketing activities are organized into three geographic regions:
Americas (including North and South America), EMEA (Europe-Middle East-Africa), and Asia Pacific (including,
among other countries, China, Taiwan, Japan, India and Australia). In addition, at the start of fiscal year 2012 we
established an organization focused on developing and selling products for enterprise markets, including peripherals
for unified communications applications. This group combines product management and sales personnel for
enterprise products, including our OEM (original equipment manufacturer) sales team, into one organization.

We sell our peripheral products to a network of distributors, retailers, and OEMs. Our worldwide retail network
includes wholesale distributors, consumer electronics retailers, mass merchandisers, specialty electronics stores,
computer and telecommunications stores, value-added resellers, and online merchants. Sales of peripherals to our
retail channels were 86% and 85% of our net sales for the fiscal years ended March 31, 2012 and 2011. The large
majority of our revenues have historically been derived from sales of our peripheral products for use by consumers.
Our OEM customers include the majority of the world’s largest PC manufacturers. Sales to OEM customers were
8% and 9% of our net sales for the fiscal years ended March 31, 2012 and 2011.

Our video conferencing segment encompasses the design, manufacturing and marketing of LifeSize video
conferencing products, infrastructure and services for the enterprise, public sector, and other business markets.
LifeSize products include scalable HD (high-definition) video communication endpoints, HD video conferencing
systems with integrated monitors, video bridges and other infrastructure software and hardware to support large-scale
video deployments, and services to support these products. The LifeSize division maintains a separate marketing
and sales organization, which sells LifeSize products and services worldwide. LifeSize product development and
product management organizations are separate, but coordinated with our peripherals business, particularly our

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webcam and video communications groups. We sell our LifeSize products and services to distributors, value-added
resellers, OEMs, and, occasionally, direct enterprise customers. Sales of LifeSize products were 6% of our net sales
in the fiscal years ended March 31, 2012 and 2011.

We seek to fulfill the increasing demand for interfaces between people and the expanding digital world
across multiple platforms and user environments. The interface evolves as platforms, user models and our target
markets evolve. As access to digital information has expanded, we have extended our focus to mobile devices,
the digital home, and the enterprise as access points to the Internet and the digital world. All of these platforms
require interfaces that are customized according to how the devices are used. We believe that 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, partnering with others where our strengths are
complementary, as well as leveraging the value of the Logitech and LifeSize brands 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.

We are developing new categories of products, such as tablet accessories, expanding in emerging retail
markets, such as China, Russia, India and Latin America, increasing our presence in digital music, and entering
new product arenas, such as hosted video conferencing as a service, and peripherals and services for UC (unified
communications). As we do so, we are confronting new competitors, many of which have more experience in the
categories or markets and have greater marketing resources and brand name recognition than we have. In addition,
because of the continuing convergence of the markets for computing devices and consumer electronics, we expect
greater competition in the future from well-established consumer electronics companies in our new categories as
well as future ones we might enter. Many of these companies have greater financial, technical, sales, marketing and
other resources than we have.

Our peripherals and video conferencing industries are intensely competitive. The peripherals industry is
characterized by platform evolution, short product life cycles, continual performance enhancements, and rapid
adoption of technological and product advancements by competitors in our retail markets, and price sensitivity in
the OEM market. We experience aggressive price competition and other promotional activities from our primary
competitors and from less established brands, including brands owned by some retail customers known as house
brands, in response to declining consumer demand in both mature retail markets and OEM markets. We may also
encounter more competition if any of our competitors in one or more categories decide to enter other categories in
which we currently operate.

As we address the current and future market challenges we face, we are evaluating our current product
portfolio and roadmap to align our resources, prioritize our investments, fill product gaps, and introduce more
innovative, differentiated products. From time to time, we may seek to partner with or acquire, when appropriate,
companies that have products, personnel, and technologies that complement our strategic direction. We continually
review our product offerings and our strategic direction in light of our profitability targets, competitive conditions,
changing consumer trends, and the evolving nature of the interface between the consumer and the digital world.

Summary of Financial Results

Our total net sales for the fiscal year ended March 31, 2012 decreased 2% compared with the fiscal year ended
March 31, 2011. Growth in our Asia Pacific region, led by China, was offset by sales declines in our Americas and
EMEA regions.

Retail sales in fiscal year 2012 decreased 1% and retail units increased 3% compared with fiscal year 2011.

Our overall retail average selling price in fiscal year 2012 declined 4% compared with fiscal year 2011.

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Retail sales in our Asia Pacific region increased 18% in fiscal year 2012 compared with fiscal year 2011.
China continued to be the single biggest driver in the region, with sales up by 58% in fiscal year 2012. Retail sales
in our Americas region decreased by 9%, due to lower sales from Logitech Revue and our Google TV peripherals,
which were impacted by the price drop implemented in our second fiscal quarter of 2012 and our exit from the
product line, and weak performance in the digital home and video categories. Lackluster economic conditions in
Western Europe and product gaps in our video and remotes product categories led to the decrease in EMEA retail
sales of 2% in fiscal year 2012. If foreign currency exchange rates had been the same in fiscal years 2012 and 2011,
the percentage changes in our constant dollar retail sales would have been an increase of 15% in Asia Pacific, a
decrease of 7% in the Americas, and a decrease of 4% in EMEA.

OEM sales decreased 17% in fiscal year 2012 compared with fiscal year 2011, and OEM units sold increased

1%, primarily due to increased pointing device sales.

Sales of LifeSize Communications products, which were 6% of total net sales in both fiscal years 2012 and

2011, increased by 10% in fiscal year 2012 compared with fiscal year 2011.

Our gross margin for fiscal year 2012 was 33.5% compared with 35.4% in the prior fiscal year, due to increased
manufacturing and distribution costs, a $34.1 million inventory valuation adjustment related to Logitech Revue and
related peripherals, and an unfavorable shift in retail product mix towards products with lower average selling
prices. Operating expenses for fiscal year 2012 were 30.4% of net sales compared with 29.4% in fiscal year 2011.
The increase in operating expenses was primarily due to the expansion of LifeSize, increased investment in areas of
future growth opportunities, such as China, and new product development, offset by lower advertising, marketing,
bonus and stock compensation expenses.

Net income for the year ended March 31, 2012 was $71.5 million, compared with net income of $128.5 million
in fiscal year 2011. The decline in net income was due to lower net sales, lower gross margin, and increased
operating expenses.

Trends in Our Business

Our sales of PC peripherals for use by consumers in the Americas and Europe have historically made up the
large majority of our revenues. We believe Logitech’s future sales growth will be determined by our ability to create
innovative products across all digital platforms, and our ability to increase sales in emerging markets, digital music,
products for enterprises, and LifeSize video conferencing.

The increasing popularity of smaller, mobile computing devices such as tablets and smartphones with touch
interfaces and the declining popularity of desktop PCs have rapidly changed the market and usage model for
PC peripherals. Logitech has begun to offer peripherals and accessories to augment the use of mobile devices.
For example, consumers are optimizing their audio experiences on their tablets and smartphones with premium
earphones and speakers that pair easily with their mobile devices. And they are enhancing their tablet experience
with a range of accessories and peripherals such as the Logitech Keyboard Case that enable them to create, consume
and share digital content more conveniently and comfortably. However, consumer acceptance and demand for our
products for tablets and other mobile devices is still developing.

In our traditional, mature markets, such as North America, Western and Nordic Europe, Japan, and Australia,
although the installed base of PC users is large, consumer demand for PCs and peripherals is slowing and potentially
may decline in future years. We believe there are continued growth opportunities for our PC peripherals outside
the more mature markets of the Americas and Europe. We have invested significantly in growing the number
of our sales, marketing and administrative personnel in China, with the result that China was our third-largest
country in retail sales for fiscal year 2012. We are also expanding our presence and our sales in Russia, India and
Latin America. We believe these markets offer high potential for us, but growing and conducting business in these
markets will continue to require significant investment and management focus, and our return on investment is not

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certain due to, among other things, the challenges presented by potentially entrenched local competition, higher
credit risks, and other factors that affect consumer trends in ways which may be substantially different from our
current major markets.

We believe that digital music, the seamless consumption of audio content on home and mobile devices, presents
a significant and natural growth opportunity for Logitech, based on our history of successful earphone, headset
and speaker products. Today’s consumers consider listening to music as a pervasive entertainment activity, fueled
by the growth in smartphones, tablets, music services and Internet radio. Logitech has a solid foundation of audio
solutions to satisfy consumers’ needs for music consumption, including Logitech UE earphones and speakers, and
Squeezebox Wi-Fi music players. As we have increased our focus on products for the consumption of digital music,
we are encountering competitors with higher consumer recognition and retailer shelf space, which may challenge
our success in the digital music arena.

We are also increasing our efforts on creating and selling products and services to enterprises. We believe
the preferences of employees increasingly drive companies’ choices in the information technologies they deploy to
their employee base, and this consumerization of information technology has made the enterprise market open to
embracing consumer technology and design. While our LifeSize division has extensive experience in developing
and selling products for enterprises, we are still in the early stages of our enterprise market team’s efforts for our
productivity peripherals and related services. Growing our enterprise business will continue to require investment
in creation of business-specific products, targeted product marketing, and sales channel development.

Our video conferencing segment represented 6% of our net sales for the fiscal years ended March 31, 2012
and 2011. The trend among businesses and institutions to use video conferencing offers a key growth opportunity
for Logitech. However, the growth of our video conferencing segment depends in part on our ability to increase
sales to enterprises with installed bases of competitor equipment, and to enterprises that may purchase competitor
equipment in the future. We believe the ability of our LifeSize products to interoperate with the equipment of
other telecommunications, video conferencing or telepresence equipment suppliers to be a key factor in purchasing
decisions by current or prospective LifeSize customers. In addition, LifeSize has broadened its product portfolio
to include infrastructure, cloud services and other offerings which require different approaches to developing
customer solutions.

Sales of retail video products represented 11% and 13% of our total retail sales for the fiscal years ended
March 31, 2012 and 2011. Future sales of tethered consumer webcams in the consumer market is unclear, as the
embedded webcam experience appears to be sufficient to meet the needs of many retail consumers as the quality
of embedded webcams improves. At the beginning of the quarter ended March 31, 2012, we launched the Logitech
HD Pro Webcam C920. This product is an example of how we intend to enhance our webcam product line-up by
enabling experiences that cannot be easily achieved with an embedded webcam.

Sales in our digital home category have declined significantly. We believe the disappointing sales results for
Harmony fiscal year 2012 reflect the aging of our Harmony products at the mid- and high-level price points as we
previously directed significant digital home engineering and marketing resources towards our Logitech Revue and
related peripherals for Google TV. We have exited the Google TV product category, and we plan to strengthen our
Harmony line in fiscal year 2013.

Sales of our OEM mice and keyboards have historically made up the bulk of our OEM sales. OEM sales
accounted for 8% and 9% of total revenues during the fiscal years ended March 31, 2012 and 2011. In recent years,
the shift away from desktop PCs adversely affected our sales of OEM mice and keyboards, which are sold with
name-brand desktop PCs. We expect this trend to continue and for OEM sales to comprise a smaller percentage of
our total revenues in the future.

We 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.

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Our balance sheet includes goodwill of $220.9 million related to various past acquisitions which are part of
our peripherals reporting unit, and $339.7 million related to our video conferencing reporting unit. We perform our
annual goodwill impairment test annually as of December 31, or more frequently, if certain events or circumstances
warrant. Events or changes in circumstances which might indicate potential impairment in goodwill include the
company specific factors described in our Form 10-K, volatility in stock price, a sustained decline in market
capitalization relative to net book value, and lower than projected revenue, market growth, or operating results.
Management performed a goodwill impairment analysis, as described in Note 9 to our consolidated financial
statements, of each of our reporting units as of December 31, 2011, and determined that the fair value of our
peripherals reporting unit exceeded the carrying value of the reporting unit by more than 30% of the carrying
value, and the fair value of our video conferencing reporting unit exceeded the carrying value of the reporting
unit by more than 80% of the carrying value. Management continues to evaluate and monitor all key factors
impacting the carrying value of our recorded goodwill, as well as other long lived assets. Adverse changes in the
Company’s expected operating results, market capitalization, business climate, or other negative events could result
in a material non-cash impairment charge in the future.

Most of our revenue comes from sales to our retail channels, which resell to consumers, retailers and
distributors. 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, and their 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 their customers, along with other metrics to assess 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 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.

Although our financial results are reported in U.S. dollars, approximately 45% of our sales for the fiscal year
ended March 31, 2012 were made in currencies other than the U.S. dollar, such as the euro, Chinese renminbi,
Japanese yen, Canadian dollar and Australian dollar. Our product costs are primarily in U.S. dollars and Chinese
renminbi. Our operating expenses are incurred in U.S. dollars, Chinese renminbi, Swiss francs, euros, and, to a
lesser extent, 29 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.

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 other pricing programs, which alter our product gross margins. Gross margins
for the fiscal year ended March 31, 2012 were 33.5%, compared with 35.4% in fiscal year 2011, primarily due to
increased manufacturing and distribution costs, a $34.1 million inventory valuation adjustment related to Logitech
Revue and related peripherals, and an unfavorable shift in retail product mix towards products with lower average
selling prices.

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 the fiscal years ended March 31, 2012 and 2011, the income tax provisions
were $19.8 million and $20.0 million based on effective income tax rates of 21.7% and 13.5% of pre-tax income. The
change in the effective income tax rate for the fiscal year ended March 31, 2012 compared with 2011 was primarily
due to the mix of income and losses in the various tax jurisdictions in which the Company operates, and a discrete
tax benefit of $7.2 million in fiscal year ended March 31, 2011 for the closure of income tax audits in certain

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jurisdictions. The Company is under examination in various tax jurisdictions. The Company is not able to estimate
the potential impact that these examinations may have on income tax expense. If the examinations are resolved
unfavorably, there is a possibility they may have a material negative impact on our results of operations.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with U.S. GAAP (generally
accepted accounting principles in the United States of America) 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. An allowance against accounts receivable is recorded for accruals and program activity related
to our direct customers and those indirect customers who receive payments for program activity through our direct
customers. An accrued liability is recorded for accruals and program activity related to our indirect customers who
receive payments directly and do not have a right of offset against a receivable balance. The estimated cost of these
programs is recorded 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 limited to a percentage approved by management.
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. Return trends are
influenced by product life cycle status, new product introductions, market acceptance of products, sales levels,
product sell-through, the type of customer, seasonality, product quality issues, competitive pressures, operational
policies and procedures 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. We enter into customer marketing programs with many of our
distribution and retail customers, and with certain indirect partners, 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
arrangements. The objective of these arrangements is to encourage advertising and promotional events to increase
sales of our products. Accruals for these marketing arrangements 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 performance-based incentives and
consumer rebates. We offer performance-based incentives to our distribution customers, retail customers and
indirect partners based on pre-determined performance criteria. Accruals for performance-based incentives are
recognized as a reduction of the sale price at the time of sale. Estimates of required accruals 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 for the primary
benefit of 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.

Pricing Programs. We have agreements with certain of our customers that contain terms allowing price
protection credits to be issued in the event of a subsequent price reduction. 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 of selected products to specific indirect partners. Our decision to make price reductions is
influenced by product life cycle stage, market acceptance of products, the competitive environment, new product
introductions and other factors. Estimates of expected future pricing actions are recognized at the time of sale
based on analyses of historical pricing actions 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.

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
increases or 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, 2012 and 2011 consisted of bank time deposits, marketable
securities related to a deferred compensation plan and auction rate securities collateralized by residential and
commercial mortgages. The bank time deposits are classified as cash equivalents, and are recorded at cost, which
approximates fair value. The marketable securities related to the deferred compensation plan are classified as
non-current trading investments, and are recorded at fair value based on quoted market prices. The auction rate
securities are classified as non-current available-for-sale assets, and are recorded at estimated fair value, determined
by estimating future cash flows through time according to each security’s terms, including periodic consideration
of overcollateralization and interest coverage tests, and incorporating estimates of default rate, loss severity,
prepayment, and delinquency assumptions when available, for the underlying assets in the securities based on
representative indices and various research reports. The estimated coupon and principal payments are discounted at
the rate of return required by investors, based on the characteristics of each security as calculated from the indices.
The markets for the auction rate securities which the Company holds as of March 31, 2012 have failed since August
2007 and are not expected to resume in the foreseeable future, if at all.

Allowance for Doubtful Accounts

We sell our products through a worldwide network of distributors, retailers, value-added resellers, business
enterprises 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

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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.

As of March 31, 2012, one customer group represented 14% of total accounts receivable. The customers
comprising the ten highest outstanding trade receivable balances accounted for approximately 55% of total accounts
receivable as of March 31, 2012. 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. The write-off is determined
by comparison of the current replacement cost with the estimated selling price less any costs of completion and
disposal (net realizable value) and the net realizable value less an allowance for normal profit. 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 RSUs (restricted stock units) 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 was 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 4—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

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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.

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. When we determine that we are not able to realize all or part of our deferred
tax assets, an adjustment is charged to earnings in the period when 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.

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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.

We perform our annual goodwill impairment test annually as of December 31, or more frequently, if certain
events or circumstances warrant. Events or changes in circumstances which might indicate potential impairment
in goodwill include the company specific factors described in our Form 10-K, volatility in stock price, a sustained
decline in market capitalization relative to net book value, and lower than projected revenue, market growth,
or operating results. Management performed a goodwill impairment analysis, as described in Note 9 to our
consolidated financial statements, of each of our reporting units as of December 31, 2011, and determined that the
fair value of our peripherals reporting unit exceeded the carrying value of the reporting unit by more than 30%
of the carrying value, and the fair value of our video conferencing reporting unit exceeded the carrying value of
the reporting unit by more than 80% of the carrying value. Management continues to evaluate and monitor all key
factors impacting the carrying value of our recorded goodwill, as well as other long lived assets. Adverse changes
in the Company’s expected operating results, market capitalization, business climate, or other negative events could
result in a material non-cash impairment charge in the future.

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.
We also consider the Company’s operating results, market capitalization, business climate, and other factors. 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 September 2011, the FASB issued ASU 2011-08, Intangibles—Goodwill and Other (Topic 350). ASU 2011-08
provides entities the option to first assess qualitatively whether it is necessary to perform the two-step goodwill
impairment test. If an entity concludes, as a result of its qualitative assessment, that it is more likely than not that
the fair value of a reporting unit is less than its carrying amount, the quantitative two-step goodwill impairment
test is required. An entity may elect to bypass the qualitative assessment and proceed to perform the first step of
the two-step goodwill impairment test. ASU 2011-08 is effective for annual and interim goodwill impairment
tests performed for fiscal years beginning after December 15, 2011. The Company will adopt ASU 2011-08 in the
first quarter of fiscal year 2013. The adoption of ASU 2011-08 is not expected to have a material impact on the
consolidated financial statements and footnote disclosures.

Results of Operations

Net Sales

Net sales by channel for fiscal years 2012, 2011 and 2010 were as follows (in thousands):

Year Ended March 31,

2012

2011

2010

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LifeSize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . .

$ 1,982,783
185,959
147,461
$2,316,203

$ 2,005,210
223,775
133,901
$ 2,362,886

$ 1,745,152
198,364
23,232
$1,966,748

Change %

2012 vs
2011

(1)%
(17)%
10%
(2)%

2011 vs
2010

15%
13%
476%
20%

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Our retail sales in fiscal year 2012 were essentially flat compared with fiscal year 2011, as the retail sales
increase in Asia Pacific region was offset by declines in the Americas and EMEA regions. In fiscal year 2011, our
retail sales increased over fiscal year 2010 due to increased consumer demand as sales recovered from the global
economic downturn. Retail units sold increased 3% and 19% in fiscal years 2012 and 2011 compared with the
preceding fiscal years. Our overall retail average selling price declined 4% and 3% in fiscal years 2012 and 2011
compared with the preceding fiscal years. Products priced below $40 represented approximately 55%, 56% and
57% of retail sales in fiscal years 2012, 2011 and 2010, while products priced above $100 represented 13% of retail
sales in fiscal year 2012, 18% in fiscal year 2011 and 15% in fiscal year 2010. If foreign currency exchange rates
had been the same in fiscal years 2012 and 2011, our constant dollar retail sales decrease would have been 3%. For
both fiscal years 2011 and 2010 compared with the preceding fiscal years, our constant dollar retail sales increase
would have been 18%.

OEM units sold decreased 12% in fiscal year 2012 and increased 9% during fiscal year 2011 compared with
the preceding fiscal years. If foreign currency exchange rates had been the same in fiscal years 2012 and 2011, our
constant dollar OEM sales would have decreased 18%. If foreign currency exchange rates had been the same in
fiscal years 2011 and 2010, our constant dollar OEM sales would have increased 12%. OEM sales declined in fiscal
year 2012 primarily in gaming and keyboards/desktops. The OEM sales increase in fiscal year 2011 was the result
of strong keyboard and headset sales.

LifeSize net sales increased in fiscal year 2012 over 2011, primarily driven by growth in the EMEA and Asia
Pacific regions, with strong growth in Russia, China and Australia. Sales of infrastructure software and hardware
grew due to the launch of the LifeSize Bridge and the LifeSize UVC Video Center in late fiscal year 2011. LifeSize
sales for fiscal year 2010 represent sales for the period from December 11, 2009, the date of acquisition, to the end
of the fiscal year. Foreign currency exchange rates did not affect LifeSize sales.

The following table presents the approximate percentage of the Company’s total net sales that were denominated

in currencies other than the U.S. dollar in fiscal years 2012, 2011 and 2010:

Currencies other than USD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2012
45%

2011
2010
42% 49%

If foreign currency exchange rates had been the same in fiscal years 2012 and 2011, and in fiscal years 2011

and 2010, the percentage changes in our constant dollar net sales would have been:

Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LifeSize . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2012
(3)%
(18)%
10%
(3)%

2011
18%
12%
476%
22%

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 and the change in constant dollar retail sales
if foreign currency exchange rates had been the same in fiscal year 2012 compared with fiscal year 2011, and fiscal
year 2011 compared with fiscal year 2010:

Asia Pacific . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . .
Total retail sales . . . . . . . .

2012 vs 2011

2011 vs 2010

Change in
Retail Units
Sold
26%
(5)%
(3)%
3%

Change in
Retail Sales
18%
(9)%
(2)%
(1)%

Change in
Constant Dollar
Retail Sales
15%
(7)%
(4)%
(3)%

Change in
Retail Units
Sold
53%
14%
9%
19%

Change in
Retail Sales
37%
28%
(2)%
15%

Change in
Constant Dollar
Retail Sales
33%
28%
4%
18%

Asia Pacific region achieved double-digit retail sales increases in all product families except Digital Home,
led by strong sales increases in pointing devices and keyboards/desktops. Retail sales in China increased 58% in
fiscal year 2012 compared with 2011, as a result of our increased investment in sales and marketing efforts in the
country. In fiscal year 2012, China was our third largest country in terms of net revenue. In fiscal year 2011, retail
sales in the Asia Pacific region increased in all product families compared with fiscal year 2010, also based on
strong sales in China. Retail sell-through in the Asia Pacific region increased 15% in fiscal year 2012 over 2011,
and grew 20% in fiscal year 2011 compared with 2010.

In the Americas region, retail sales for fiscal year 2012 compared with 2011 increased in keyboards/ desktops,
were flat in audio, and declined in all other product families, particularly Digital Home, Video and Pointing
Devices. Digital Home sales declined $14.3 million due to lower sales of Logitech Revue for Google TV, reflecting
our decision to lower the retail price of the product and not produce any more units. Retail sales for fiscal year 2011
increased in all product families compared with the preceding year. Retail sell-through in the Americas region
increased 2% in fiscal year 2012 over 2011, compared with 15% in fiscal year 2011 over 2010.

Retail sales in the EMEA region rebounded in the fourth quarter of fiscal year 2012, primarily due to improved
execution and management of programs with our channel partners. On a year to date basis, sales increased for
the keyboards/desktops and audio product families, and declined in Digital Home and Video. Retail sales in the
EMEA region decreased in most product families in fiscal year 2011 compared with 2010, as a result of the uneven
economic recovery, particularly in western Europe, and ineffective regional pricing and channel management
programs. Retail sell-through in the EMEA region increased 1% in fiscal year 2012 compared with a 12% increase
in fiscal year 2011.

We use retail sell-through data, which represents sales of our products by our retailer customers to consumers,
and by our distributor customers to their customers, along with other metrics, to assess 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 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.

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Net Retail Sales by Product Family

Net retail sales by product family for fiscal years 2012, 2011 and 2010 were as follows (in thousands):

Year Ended March 31,

2012

2011

2010

Change %

2012 vs
2011

2011 vs
2010

Net retail sales by product family:

Retail—Pointing Devices . . . . . . . . . . . . . . . . . . .
Retail—Keyboards & Desktops . . . . . . . . . . . . . .
Retail—Audio . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail—Video. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail—Gaming . . . . . . . . . . . . . . . . . . . . . . . . . .
Retail—Digital Home . . . . . . . . . . . . . . . . . . . . . .
Total net retail sales . . . . . . . . . . . . . . . . . . . . .

$ 619,505
447,991
483,485
215,657
111,480
104,665
$1,982,783

$ 618,404
386,968
466,927
255,015
104,545
173,351
$2,005,210

$ 528,236
329,038
454,957
228,344
107,595
96,982
$1,745,152

0%
16%
4%
(15)%
7%
(40)%
(1)%

17%
18%
3%
12%
(3)%
79%
15%

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,
and tablet keyboards and keyboard cases. Audio includes speakers and headset products for the PC, the home, the
tablet and other mobile entertainment platforms, and Squeezebox wireless music. Our video product category is
comprised of PC webcams and Alert video security systems. Gaming includes console and PC gaming peripherals.
The Digital Home product category combines our Harmony Remote controls and Logitech Revue with related
peripherals. 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 increased 7% and 27% in fiscal years 2012 and 2011 compared with the
preceding fiscal years. The stronger growth in units reflects the success of our value-priced offerings, particularly
in the Asia Pacific region, where sales in dollars increased 20% in fiscal year 2012 and 57% in fiscal year 2011
compared with the preceding fiscal years. In our Americas and EMEA regions, sales in dollars decreased 9% and
1% in fiscal year 2012, compared with increases of 21% and 0% in fiscal year 2011. Sales of cordless mice increased
5% in fiscal year 2012 and 27% in fiscal year 2011. Unit sales of cordless mice grew 17% in fiscal year 2012 and
52% in fiscal year 2011, driven by strong sales of our value-priced cordless notebook mice, including the Wireless
Mouse M185 and the Wireless Mouse M315 in 2012, and the Wireless Mouse M215 and the Wireless Mouse M310
in 2011. Sales of corded mice decreased 7% in fiscal year 2012 compared with 2011, with units decreasing 3%. In
fiscal year 2011, sales of corded mice decreased 7% compared with 2010, with units increasing 6%.

Retail Keyboards and Desktops

Retail unit sales of keyboards and desktops increased 7% during fiscal year 2012 and 23% during fiscal year
2011, compared with the preceding fiscal years. Sales in dollars increased 28%, 16% and 7% in our Asia Pacific,
Americas and EMEA regions in fiscal year 2012 compared with 2011. In fiscal year 2011, sales in dollars increased
52% and 35% in our Asia Pacific and Americas regions, but declined 6% in our EMEA region. Sales of cordless
keyboards and desktops increased 14% and units increased 27% in fiscal year 2012 compared with 2011, with
strong sales of the Wireless Combo MK250, and the Wireless Combo MK220. Sales of cordless keyboards and
desktops in fiscal year 2011 increased 28% and units increased 39% compared with 2010, with strong sales of the
Wireless Keyboard K250 and the Wireless Desktop MK320. Sales of corded keyboards and desktops decreased
13% in dollars and 10% in units in fiscal year 2012. In fiscal year 2011, sales of corded keyboards and desktops
increased 4% in dollars and 15% in units.

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Retail Audio

Retail audio unit sales decreased 1% in fiscal year 2012 and increased 2% in fiscal year 2011, compared with
the preceding fiscal years. Sales in dollars increased 1%, 3% and 14% in the Americas, EMEA and Asia Pacific
regions, in fiscal year 2012 compared with 2011. In fiscal year 2011 compared with 2010, sales in dollars increased
23% and 7% in the Americas and Asia Pacific regions, and decreased 10% in the EMEA region. The growth in
fiscal year 2012 was led by our digital music speakers and Ultimate Ears products. Digital music speakers increased
13% in dollars and 19% in units, following a decrease of 11% in dollars and 6% in units in fiscal year 2011. The
Logitech Mini Boombox, a compact Bluetooth sound system that we began shipping in the latter part of fiscal year
2012, contributed significantly to the growth in the digital music speaker category. Retail sales of Ultimate Ears
products increased 51% fiscal years 2012, following a 1% decrease in 2011, and unit sales increased 49% and 36%
in the same periods.

Retail Video

Retail unit sales of our video products decreased 15% in fiscal year 2012, compared with an increase of 20%
in fiscal year 2011. The 15% sales decrease in fiscal year 2012 was mainly due to weakness in the webcam product
line, which continued to be negatively impacted by the combination of market trends and gaps in our product
portfolio. The future sales for webcams in the consumer market is unclear, as the embedded webcam experience
appears to be sufficient to meet the needs of many retail consumers. We continue to enhance our product line-up
by enabling experiences that cannot be easily achieved with an embedded webcam. For example, we experienced
strong growth with our initial launch of the Logitech HD Pro Webcam C920, which offers full HD 1080p video
calls on Skype, in the latter part of the fiscal year 2012. The 12% sales increase in fiscal year 2011 was due in part
to our video security products, which were negatively affected in fiscal year 2010 by the product transition to our
new Logitech Alert HD digital video security system, launched in August 2010. Sales in dollars decreased 25% and
12% in the Americas and EMEA regions, and increased 11% in the Asia Pacific region in fiscal year 2012 compared
with 2011. In fiscal year 2011 compared with 2010, sales in dollars increased 17%, 13% and 9% in the Asia Pacific,
Americas and EMEA regions.

Retail Gaming

Retail unit sales of our gaming peripherals decreased 3% in fiscal year 2012, compared with a decrease of
27% in fiscal year 2011. Retail sales increased 7% in fiscal year 2012, compared with a decrease of 3% in fiscal
year 2011. The growth was entirely due to PC gaming, with growth driven by steering wheels, but partially offset
by sales declines in console gaming. PC gaming sales increased 22% in dollars and 9% in units in fiscal year 2012,
compared with a decrease of 12% in dollars and 20% in units in fiscal year 2011. Console gaming sales decreased
28% in dollars and 47% in units in fiscal year 2012, compared with an increase of 21% in dollars and a decrease of
37% in units in fiscal year 2011. Sales in the Asia Pacific and EMEA regions grew 31% and 5% in fiscal year 2012,
while the Americas region declined 5%. In fiscal year 2011, sales in dollars declined 11% in EMEA, but grew 15%
and 6% in the Asia Pacific and Americas regions.

Retail Digital Home

Retail unit sales in our digital home category, which includes Harmony remotes, Logitech Revue, and our
Google TV peripherals, declined 17% in fiscal year 2012, compared with the growth experienced in fiscal year 2011.
Sales of Harmony remotes declined 37% in dollars and 22% in units in fiscal year 2012, compared with increases
of 46% in dollars and 79% in units in fiscal year 2011. The sales decline in fiscal year 2012 was experienced across
all regions. We are overdue for a meaningful refresh across much of the remotes category and we plan to strengthen
our Harmony line-up in the coming months. Sales of Logitech Revue and our Google TV peripherals, which were
launched during fiscal year 2011, decreased 52% in dollars but increased 46% in units due to the impact of the price
drop in our second fiscal quarter of 2012 and our exit from the product line. In fiscal year 2011, sales of Logitech
Revue and associated peripherals for Google TV were $26.7 million.

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Gross Profit

Gross profit for fiscal years 2012, 2011 and 2010 was as follows (in thousands):

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . . . . .
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . .
Gross margin . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2012
$2,316,203
1,539,614
$ 776,589

2011
$2,362,886
1,526,380
$ 836,506

2010
$1,966,748
1,339,852
$ 626,896

33.5%

35.4%

31.9%

Change %

2012 vs
2011
(2)%
1%
(7)%

2011 vs
2010
20%
14%
33%

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, write-down of inventories and amortization of intangible assets.

The decline in gross margin in fiscal year 2012 compared with 2011 resulted from increased manufacturing and
distribution costs due to higher labor and obsolescence costs, from a $34.1 million inventory valuation adjustment
reflecting the lower of cost or market on our inventory of Logitech Revue and related peripherals on hand and at
our suppliers, and an unfavorable shift in retail product mix towards products with lower average selling prices.
The improvement in the gross margin percentage in fiscal year 2011 over 2010 was primarily related to a favorable
shift in retail product mix, operational efficiencies in our supply chain costs, and lower obsolescence write-downs,
somewhat offset by the negative impact of the weaker euro during most of fiscal year 2011.

Operating Expenses

Operating expenses for fiscal years 2012, 2011 and 2010 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 . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2012
$423,854

2011
$420,580

2010
$304,788

18.3%

17.8%

15.5%

162,331

156,390

135,813

7.0%

6.6%

6.9%

118,423

116,880

106,147

5.1%
—
0.0%

4.9%
—
0.0%

5.4%

1,784

0.1%

$704,608

$693,850

$548,532

30.4%

29.4%

27.9%

Change %

2012 vs
2011
1%

2011 vs
2010
38%

15%

10%

(100)%

26%

The increase in total operating expenses as a percentage of net sales was primarily due to the addition of
LifeSize expenses beginning in December 2009, and increased investment in areas which we believe represent
future growth opportunities. Fiscal year 2010 also included $6.6 million in transactions costs related to the
acquisition of LifeSize and $1.8 million in restructuring charges associated with the restructuring plan initiated in
January 2009.

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On April 25, 2012, we announced a restructuring plan to reduce operating costs and improve financial
results. We estimate pre-tax restructuring charges related to employee termination costs, contract termination
costs, and other associated costs of approximately $25 million to $40 million will be incurred in connection with
the restructuring plan, which is expected to be completed within fiscal year 2013.

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.

Marketing and selling expense increased 1% in fiscal year 2012 compared with 2011, primarily from higher
personnel-related expenses resulting from increased headcount for LifeSize, the enterprise market team, and the
Asia Pacific region, higher infrastructure costs to support the additional headcount, and the settlement of a customer
bankruptcy dispute. These increases were substantially offset by a decrease in variable demand generation activities
compared with fiscal year 2011, and a decrease in accrued bonus expense resulting from lower than anticipated
profitability levels.

The increase in marketing and selling expense in fiscal year 2011 compared with fiscal year 2010 resulted
primarily from the addition of LifeSize sales and marketing personnel in December 2009, variable demand
generation activities, and increased personnel costs. In fiscal year 2011, we invested approximately $32 million in
variable demand generation activities focused on Harmony remotes and Logitech Revue. Non-LifeSize personnel
costs increased due to a 14% increase in headcount, partly to support the expansion of sales efforts in China, and
normal salary and bonus increases compared with fiscal year 2010.

If foreign currency exchange rates had been the same in fiscal years 2012 and 2011, the percentage change in
constant dollar marketing and sales expense would have been a decrease of 1% instead of an increase of 1%. The
percentage changes in constant dollar marketing and selling expense for fiscal years 2011 and 2010 compared with
the preceding years were the same as the percentage changes in U.S. dollars.

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 4% increase in research and development expense from fiscal year 2011 to 2012 was primarily due to
higher personnel-related expenses, mainly from our LifeSize division, and from increased investments in product
development for Pointing Devices, Audio and Digital Home. These increases were offset in part by decreases in
accrued bonus expense resulting from lower than anticipated profitability levels, lower share-based compensation
expense, and cost containment efforts in consulting and outsourcing.

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The increase in research and development expense for fiscal year 2011 compared with 2010 was due to the
addition of LifeSize personnel and expenses. Research and development expenses in our peripherals business
remained largely flat in fiscal year 2011 compared with 2010, as expenditures were re-aligned from mature product
lines and multiple similar products to product lines with expected future growth potential.

If foreign currency exchange rates had been the same in fiscal years 2012 and 2011, the change in constant
dollar research and development expense would have been an increase of 1% instead of 4%. If foreign currency
exchange rates had been the same in fiscal years 2011 and 2010, the change in constant dollar research and
development expense would have been 13%.

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 increased by 1% from fiscal year 2011 to 2012, primarily due to higher
personnel-related expenses resulting from increased headcount, mainly from our LifeSize division, offset in part
by a decrease in accrued bonus expense resulting from lower than anticipated profitability levels and lower share-
based compensation expense resulting from executive departures.

General and administrative expense excluding LifeSize increased moderately in fiscal year 2011 compared
with 2010, primarily due to increased personnel expenses resulting from normal salary and bonus increases related
to our improved profitability compared with the preceding fiscal year.

If foreign currency exchange rates had been the same in fiscal years 2012 and 2011, the percentage change
in constant dollar general and administrative expense would have been a decrease of 1% instead of an increase of
1%. If foreign currency exchange rates had been the same in fiscal years 2011 and 2010, the percentage change in
constant dollar general and administrative expenses would be the same as the percentage change in U.S. dollars.

Interest Income, Net

Interest income and expense for fiscal years 2012, 2011 and 2010 were as follows (in thousands):

Change %

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2012
$3,121
(447)
$2,674

2011
$2,343
(27)
$2,316

2010
$2,406
(286)
$2,120

2012 vs
2011
33%

2011 vs
2010
(3)%
1556% (91)%
9%

15%

In fiscal year 2012 compared with 2011, interest income was higher primarily due to higher interest rates. In
fiscal year 2011 compared with 2010, interest income was slightly lower due to lower invested balances offset by
slightly higher interest rates.

The increase in interest expense from fiscal year 2011 to fiscal year 2012 represents commitment fees and

non-recurring fees related to the revolving credit facility entered into in December 2011.

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Other Income, Net

Other income and expense for fiscal years 2012, 2011 and 2010 were as follows (in thousands):

Gain on sale of buildings . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of available-for-sale securities . . . . . . . . . . .
Foreign currency exchange gains, net . . . . . . . . . . . . . . .
Investment income related to

deferred compensation plan . . . . . . . . . . . . . . . . . . . .
Write-down of investments . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2012
$ 8,967
6,109
1,575

227
—
(256)
$16,622

2011
$ 838
—
480

1,409
(43)
792
$3,476

2010
$ —
—
1,720

1,221
(643)
841
$3,139

Change %

2012 vs
2011
970%
100%
228%

(84)%
(100)%
132%
378%

2011 vs
2010
—
100%
(72)%

15%
(93)%
6%
11%

The gain on sale of property and plant for fiscal year 2012 relates to the sale of unused manufacturing
properties in China. The gain on sale of building in the fiscal year 2011 relates to the sale of our building in
Romanel, Switzerland.

During fiscal year 2012, the Company sold two of its available-for-sale securities, with a total carrying value

of $0.5 million and a total par value of $10.0 million, for $6.6 million, resulting in a gain of $6.1 million.

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 gains on currency sales in fiscal years 2012, 2011 and 2010 were largely 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.

Investment income for fiscal year 2012 represents earnings, gains, and losses on trading investments related to
a deferred compensation plan offered by one of our subsidiaries. Investment income for fiscal year 2011 represents
earnings, gains, and losses on the trading investments and changes in the cash surrender value of Company-
owned life insurance contracts, related to the same deferred compensation plan. In December 2010, the Company
surrendered the life insurance contracts for cash, and invested the proceeds in a portfolio of mutual funds, which
represent the trading investments. For fiscal year 2010, investment income consists of changes in the cash surrender
value of the deferred compensation plan life insurance contracts.

We recorded write-downs of $0.04 million and $0.6 million in fiscal years 2011 and 2010 related to other-

than-temporary declines in the estimated fair value of our investment securities.

Provision for Income Taxes

The provision for income taxes and effective income tax rate for fiscal years 2012, 2011 and 2010 were as

follows (in thousands):

Provision for income taxes . . . . . . . . . . . . . . . . . . . . .
Effective income tax rate . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2012
$19,819

2011
$19,988

2010
$18,666

21.7%

13.5%

22.3%

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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 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.

The change in the effective income tax rate to 21.7% in fiscal year 2012 compared with 13.5% in 2011 is
primarily due to the mix of income and losses in the various tax jurisdictions in which the Company operates, and a
discrete tax benefit of $7.2 million in fiscal year 2011 from the closure of income tax audits in certain jurisdictions.
The change in the effective income tax rate to 13.5% in fiscal year 2011 compared with 22.3% in fiscal year 2010 is
primarily due to discrete tax benefits of $13.5 million from the expiration of statutes of limitations and the closure
of income tax audits in certain jurisdictions in fiscal year 2011.

On December 17, 2010, the enactment in the U.S. of the Tax Relief, Unemployment Insurance Reauthorization,
and Job Creation Act of 2010 extended retroactively through the end of calendar year 2011 the U.S. federal research
and development tax credit which had expired on December 31, 2009. As of December 31, 2011, such U.S. federal
research tax credit expired. The income tax expense for the fiscal year ended March 31, 2012 reflected a $1.4 million
tax benefit for U.S. federal research tax credit.

As of March 31, 2012 and 2011, the total amount of unrecognized tax benefits and related accrued interest
and penalties due to uncertain tax positions was $143.3 million and $138.1 million, of which $125.4 million and
$118.2 million would affect the effective income tax rate if recognized.

The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense.
As of March 31, 2012, accrued interest and penalties related to uncertain tax positions decreased to $7.5 million
from $8.0 million as of March 31, 2011.

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. The U.S. Internal Revenue Service has completed its field
examinations of tax returns for the Company’s U.S. subsidiary for fiscal years 2006 and 2007, and has issued
NOPAs (notices of proposed adjustment) related to international tax issues for those years. The Company disagrees
with the NOPAs and is contesting through the administrative process for the U.S. Internal Revenue Service claims
regarding 2006 and 2007. The Company believes the outcome of this examination will not have a material adverse
effect on our consolidated operating results.

In addition, the U.S. Internal Revenue Service is in the process of examining the Company’s U.S. subsidiary
for fiscal years 2008 and 2009. The Company is also under examination and has received assessment notices in
other tax jurisdictions. At this time, the Company is not able to estimate the potential impact that these examinations
may have on income tax expense. If the examinations are resolved unfavorably, there is a possibility they may have
a material negative impact on our results of operations.

Although the Company believes it 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.
Although the timing of the resolution or closure on audits is highly uncertain, the Company does not believe it is
reasonably possible that the unrecognized tax benefits would materially change in the next twelve months.

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Liquidity and Capital Resources

Cash Balances, Available Borrowings, and Capital Resources

At March 31, 2012, our working capital was $576.7 million, compared with $605.7 million at March 31, 2011.
The decrease in working capital over the prior year was primarily due to the decrease in accounts receivable, offset
in part by an increase in inventory.

During fiscal year 2012, operating activities provided net cash of $196.1 million, generated from operations,
cash collections on accounts receivables, and increases in current liabilities. We used $51.2 million in investing
activities, including $47.8 million for investments in tooling, computer hardware and software, and leasehold
improvements. Net cash used by financing activities was $139.4 million, primarily for the repurchase of shares
under our share buyback program, offset in part by proceeds of employee stock purchases and the exercise of
stock options.

At March 31, 2012, we had cash and cash equivalents of $478.4 million. Our cash and cash equivalents are
comprised of bank demand deposits and short-term time deposits carried at cost, which is equivalent to fair value.
Approximately 66% of our cash and cash equivalents are held by our Swiss-based entities, and approximately 27%
is held by our subsidiaries in Hong Kong and China. We do not believe we would be subject to any material adverse
tax impact or significantly inhibited by any country in which we do business from the repatriation of funds to
Switzerland, our home domicile.

The credit facility matures on October 31, 2016. The Company may prepay the loans under the credit facility
in whole or in part at any time without premium or penalty. Borrowings under the credit facility will accrue interest
at a per annum rate based on LIBOR (London Interbank Offered Rate), or EURIBOR (Euro Interbank Offered
Rate) in the case of loans denominated in euros, plus a variable margin determined quarterly based on the ratio of
senior debt to earnings before interest, taxes, depreciation and amortization for the preceding four-quarter period,
plus, if applicable, an additional rate per annum intended to compensate the lenders for the cost of compliance with
regulatory reserve requirements and other banking regulations. The Company also pays a quarterly commitment
fee of 40% of the applicable margin on the available commitment. In connection with entering into the credit
facility, the Company incurred non-recurring fees totaling $1.5 million, which are amortized on a straight-line basis
over the term of the credit facility.

The facility agreement contains representations, covenants and events of default customary in Swiss credit
markets. Affirmative covenants include covenants regarding reporting requirements, maintenance of insurance,
maintenance of properties and compliance with applicable laws and regulations, and financial covenants that
require the maintenance of net senior debt, interest cover and adjusted equity ratios determined in accordance with
the terms of the facility. Negative covenants limit the ability of the Company and its subsidiaries, among other
things, to grant liens, make investments, incur debt, make restricted payments, enter into a merger or acquisition,
or sell, transfer or dispose of assets, in each case subject to certain exceptions. As of March 31, 2012, the Company
was in compliance with all covenants and conditions.

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Upon an uncured event of default under the facility, the lenders may declare all or a portion of the outstanding
obligations payable by the Company to be immediately due and payable, terminate their commitments and exercise
other rights and remedies provided for under the facility. The events of default under the facility include, among
other things, payment defaults, covenant defaults, inaccuracy of representations and warranties, cross defaults with
certain other indebtedness, bankruptcy and insolvency events and events that have a material adverse effect (as
defined in the facility). Upon a change of control of the Company, lenders whose commitments aggregate more than
two-thirds of the total commitments under the facility may terminate the commitments and declare all outstanding
obligations to be due and payable.

The Company has credit lines with several European and Asian banks totaling $77.3 million as of
March 31, 2012. 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, 2012, there were no outstanding borrowings under these lines of credit. There are
no financial covenants under these facilities. The Company also has credit lines related to corporate credit cards
totaling $30.8 million as of March 31, 2012. The outstanding borrowings under these credit lines are recorded in
other current liabilities. There are no financial covenants under these credit lines.

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 liquidity for the next 12 months
and our longer-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, credit lines and credit facility, and the trend of our historical cash flow generation, we
believe we have sufficient liquidity to fund operations for at least the next 12 months.

Cash Flow from Operating Activities

The following table presents selected financial information and statistics for fiscal years 2012, 2011 and 2010

(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,

2012
$223,104
$297,072
$576,745
38 days
4.6x
$196,142

2011
$258,294
$280,814
$605,666
42 days
5.2x
$156,742

2010
$195,247
$219,593
$353,370
33 days
6.1x
$365,259

(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 2012, the Company’s operating activities generated net cash of $196.1 million, compared
with $156.7 million in 2011 and $365.3 million in 2009. The increase in fiscal year 2012 compared with 2011 was
primarily due to cash generated from operations, lower accounts receivable balances, and a smaller increase in
inventories. The decrease in fiscal year 2011 compared with 2010 was the result of higher accounts receivable and
inventory balances, due to increased sales, higher DSO, and inventory of the new Logitech Revue product, and
smaller increases than fiscal year 2010 in accounts payable and accrued liabilities.

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DSO for fiscal year 2012 decreased by 4 days compared with fiscal year 2011 and increased by 9 days compared
with fiscal year 2010. The decrease in fiscal year 2012 over 2011 was primarily from lower accounts receivable
balances due to increased cash collections. The increase in fiscal year 2011 over 2010 resulted from a decline in
shipment linearity, slight changes in payment terms, and changes in the types of incentive promotions offered.

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 decreased between fiscal years 2012 and 2011 and between 2011 and 2010 primarily due

to higher inventory levels at fiscal year-end in relation to sales during the fourth quarter.

Cash Flow from Investing Activities

Cash flows from investing activities during fiscal years 2012, 2011 and 2010 were as follows (in thousands):

Purchases of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . .
Acquisitions, net of cash acquired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of available-for-sale securities . . . . . . . . . . . . . . . . . .
Proceeds from sale of property and plant . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of trading investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of trading investments . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from cash surrender of life insurance policies . . . . . . . . . . . . .
Proceeds from sale of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premiums paid on cash surrender value life insurance policies . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,

2012
$ (47,807)
(18,814)
6,550
8,967
(7,505)
7,399
—
—
—
$ (51,210)

2011
$ (43,039)
(7,300)
—
2,688
(19,075)
6,470
11,313
9,087
(5)
$ (39,861)

2010
$ (39,834)
(388,809)
—
—
—
—
813
—
—
$ (427,830)

Our expenditures for property, plant and equipment during fiscal years 2012, 2011 and 2010 were principally
for normal expenditures for tooling, computer hardware and software, equipment and leasehold improvements.
Purchasing activity in fiscal year 2012 compared with 2011 was higher primarily due to leasehold improvement
costs related to our new Americas headquarters.

In fiscal year 2012, the Company acquired Mirial S.r.l. for a total consideration of $18.8 million (A13.0
million), net of cash acquired of $1.4 million (A1.0 million). In fiscal year 2011, we acquired substantially all of
the assets of Paradial AS for $7.3 million in a business combination. 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.

The Company received $6.6 million from the sale of two available-for-sale securities with a total carrying
value of $0.5 million and a total par value of $10.0 million during fiscal year 2012. The gain of $6.1 million was
recognized in other income (expense), net.

Proceeds from the sale of property and plant related to the sale of unused manufacturing properties in China

in fiscal year 2012 and the sale of our building in Romanel, Switzerland in fiscal year 2011.

The purchases and sales of trading investments in fiscal year 2012 represent mutual fund activity directed by
participants in a deferred compensation plan offered by one of the Company’s subsidiaries. The mutual funds are
held by a Rabbi Trust. Prior to December 2010, the deferred compensation plan was invested in Company-owned
life insurance contracts. In December 2010, we surrendered the life insurance contracts held in the Rabbi Trust to
invest in a Company-selected portfolio of mutual funds.

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In fiscal year 2011, we sold our equity interest in certain 3Dconnexion subsidiaries and the related intellectual

property rights for $9.1 million, not including cash retained. The loss resulting from the sale was not material.

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 2012, 2011 and 2010 (in thousands except per share amounts):

Purchases of treasury shares(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of shares upon exercise of options

Year Ended March 31,

2012
$ (156,036)

2011

2010

$ — $ (126,301)

and purchase rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,591

43,001

28,917

Tax withholdings related to net share settlements of

restricted stock units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . . . .
Repayments of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . .

(966)
37
—
$ (139,374)

(223)
3,455
—
$ 46,233

—
2,814
(13,630)
$ (108,200)

Year Ended March 31,

2012

2011

2010

Number of shares repurchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Value of shares repurchased(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average price per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17,509
156,036
8.91

—

7,425
$ — $ 126,301
17.01
$ — $

(1) Represents the amount in U.S. dollars, including transaction costs, calculated based on exchange rates on the

repurchase dates.

During fiscal year 2012, we repurchased 17.5 million shares for $156.0 million under the Company’s September
2008 buyback program. In fiscal year 2010, we repurchased 7.4 million shares for $126.3 million under the buyback
program announced in June 2007. The amounts of the repurchases include transaction costs incurred as part of the
repurchase. The June 2007 buyback program was completed in March 2010. No share repurchases were made in
fiscal year 2011 under the September 2008 buyback program.

Cash of $17.6 million, $43.0 million and $28.9 million was provided during the fiscal years 2012, 2011 and
2010 from the sale of shares upon exercise of options and purchase rights pursuant to the Company’s stock plans.
The payment of tax withholdings related to net share settlements of RSUs (restricted stock units) required the use of
$1.0 million and $0.2 million in cash in fiscal years 2012 and 2011. Tax benefits recognized on the exercise of share-
based payment awards provided $0.04 million, $3.5 million and $2.8 million in fiscal years 2012, 2011 and 2010.

In fiscal year 2010, we repaid $13.6 million of short and long-term debt assumed when we acquired

LifeSize Communications.

Cash Outlook

Our principal sources of liquidity are our cash and cash equivalents, cash flow generated from operations and,
to a lesser extent, capital markets and borrowings. Over the past several years, we have generated positive cash flow
from our operating activities, including cash from operations of $196.1 million in fiscal year 2012. In fiscal year
2012, although our operating cash flows were negatively affected by a decrease in demand for our products in some
regions and by uncertainty regarding future global economic conditions, the levels of our cash and cash equivalents
and our working capital remained strong. Our future working capital requirements and capital expenditures may

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increase to support investment in product innovations and growth opportunities, to repurchase our stock, or to
acquire or invest in complementary businesses, products, services, and technologies. Additional financing may not
be available at all or on terms favorable to us.

In December 2011, the Company entered into a Senior Revolving Credit Facility Agreement with a group of
primarily Swiss banks that provides for a revolving multicurrency unsecured credit facility in an amount of up to
$250.0 million. The Company may, upon notice to the lenders and subject to certain requirements, arrange with
existing or new lenders to provide up to an aggregate of $150.0 million in additional commitments, for a total of
$400.0 million of unsecured revolving credit. The credit facility may be used for working capital, general corporate
purposes, and acquisitions. The credit facility matures on October 31, 2016. The Company may prepay the loans
under the credit facility in whole or in part at any time without premium or penalty. The facility agreement contains
representations, covenants and events of default customary in Swiss credit markets. There were no outstanding
borrowings under the credit facility at March 31, 2012. As of March 31, 2012, the Company was in compliance with
all covenants and conditions.

In September 2008, our Board of Directors approved a share buyback program, which authorizes the Company
to invest up to $250 million to purchase its own shares. In November 2011, the Company received approval from
the Swiss regulatory authorities for an amendment to the September 2008 share buyback program to enable future
repurchases of shares for cancellation. As of March 31, 2012, the approved amount remaining under the amended
September 2008 program was $94.3 million.

During the second quarter of fiscal year 2012, the U.S. Internal Revenue Service completed its field
examinations of tax returns for the Company’s U.S. subsidiary for fiscal years 2006 and 2007, and issued NOPAs
(notices of proposed adjustment) related to international tax issues for those years. The Company disagrees with the
NOPAs and is contesting through the administrative process for the U.S. Internal Revenue Service claims regarding
2006 and 2007.

Other contractual obligations and commitments of the Company which require cash are described in the

following sections.

Based upon our available cash balances, credit lines and credit facility, and the trend of our historical cash

flow generation, we believe we have sufficient liquidity to fund operations for at least the next 12 months.

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Contractual Obligations and Commitments

As of March 31, 2012, the Company’s outstanding contractual obligations and commitments included:
(i) facilities leased under operating lease commitments, (ii) purchase commitments and obligations, (iii) long-term
liabilities for income taxes payable, and (iv) defined benefit pension plan and non-retirement post-employment
benefit obligations. The following summarizes our contractual obligations and commitments at March 31, 2012
(in thousands):

Operating leases . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase commitments—inventory . . . . . . . . . . . . .
Purchase obligations—operating expenses . . . . . . .
Purchase obligations—capital expenditures . . . . . .
Income taxes payable—non-current(1) . . . . . . . . . . .
Obligation for deferred compensation(1) . . . . . . . . . .
Pension and post-employment obligations(1). . . . . . .
Other long-term liabilities(2) . . . . . . . . . . . . . . . . . . .
Total contractual obligations and commitments . . .

Total
$ 110,999
140,549
48,886
19,554
137,319
14,393
43,466
4,018
$ 519,184

Less than
1 year
$ 20,834
140,549
48,886
19,554
—
—
—
—
$ 229,823

Payments Due by Period

1 - 3 years
$ 29,685
—
—
—
—
—
—
—
$ 29,685

4 - 5 years
$ 23,339
—
—
—
—
—
—
—
$ 23,339

More than
5 years
$ 37,141
—
—
—
—
—
—
—
$ 37,141

(1) As specific payment dates for these obligations are unknown, the related balances have not been reflected in
the ‘‘Payments Due by Period’’ section of the table. We expect to contribute approximately $4.5 million to our
defined benefit pension plans during fiscal year 2013.

(2) Other long-term liabilities at March 31, 2012 related to various other obligations. As specific payment dates
for these obligations are unknown, the related balances have not been reflected in the ‘‘Payments Due by
Period’’ section of the table.

Operating Leases

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. 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, 2012
were $1.9 million.

The increase in operating lease commitments to $111.0 million as of March 31, 2012 compared with $72.6
million as of March 31, 2011 was due to approximately $13 million for an expansion of our LifeSize headquarters
in Austin, Texas and approximately $35 million related to new facilities for our Americas operations in Northern
California. Fair value of future rent obligations of approximately $4 million related to the Company’s former
Americas headquarters will be charged to expense during the first quarter of fiscal year 2013 when the Company
ceases use of the facility.

Purchase Commitments

At March 31, 2012, we have fixed purchase commitments of $140.5 million for inventory purchases made in
the normal course of business to original design manufacturers, contract manufacturers and other suppliers, which
are expected to be fulfilled by March 31, 2012. We also had commitments of $48.9 million for consulting services,
marketing arrangements, advertising, outsourced customer services, information technology maintenance and
support services, and other services. Fixed purchase commitments for capital expenditures amounted to $19.6
million at March 31, 2012, and primarily relate to commitments for tooling, computer hardware and leasehold
improvements. We expect to continue making capital expenditures in the future to support product development
activities and ongoing and expanded operations. 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 delivery of goods or performance of services.

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Income Taxes Payable

At March 31, 2012, we had $137.3 million in non-current income taxes payable, including interest and
penalties, related to our income tax liability for recognized uncertain tax positions, compared with $132.0 million
in non-current taxes payable as of March 31, 2011. As specific payment dates for these obligations are unknown, the
related balances have not been reflected in the ‘‘Payments Due by Period’’ section of the table.

Obligation for Management Deferred Compensation

At March 31, 2012, we had $14.4 million in liabilities related to a deferred compensation plan offered by one
of the Company’s subsidiaries. As specific payment dates for these obligations are unknown, the related balances
have not been reflected in the ‘‘Payments Due by Period’’ section of the table. See Note 4—Employee Benefit Plans
for more information.

Pension and Post-Employment Obligations

At March 31, 2012, we had $43.5 million in liabilities related to our defined benefit pension plans and
non-retirement post-employment benefit obligations, of which $4.1 million is payable in the next 12 months. As
specific payment dates for these obligations are unknown beyond a 12-month period, the related balances have
not been reflected in the ‘‘Payments Due by Period’’ section of the table. See Note 4—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

Logitech International S.A., the parent holding company, has guaranteed payment of the purchase obligations
of various subsidiaries from certain component suppliers. These guarantees generally have an unlimited term.
The maximum potential future payment under the guarantee arrangements is limited to $36.0 million. At
March 31, 2012, there were no purchase obligations outstanding for which the parent holding company was required
to guarantee payment.

182

Logitech Europe S.A., a subsidiary of the parent holding company, has guaranteed the purchase obligations
of another Logitech subsidiary and third-party contract manufacturers under three guarantee agreements. Two of
these guarantees do not specify a maximum amount. The remaining guarantee has a total limit of $7.0 million. As of
March 31, 2012, $3.9 million of guaranteed purchase obligations were outstanding under these guarantees. Logitech
Europe S.A. has also guaranteed payment of the purchase obligations of a third-party contract manufacturer under
three guarantee agreements. The maximum amount of these guarantees was $3.7 million as of March 31, 2012. As
of March 31, 2012, $0.7 million of guaranteed purchase obligations were outstanding under these agreements.

Logitech International S.A. and Logitech Europe S.A. have guaranteed certain contingent liabilities of
various subsidiaries related to transactions occurring in the normal course of business. The maximum amount of
the guarantees was $69.1 million as of March 31, 2012. As of March 31, 2012, $16.0 million of guaranteed liabilities
were subject to these guarantees.

Indemnifications

Logitech indemnifies some of its suppliers and customers for losses arising from matters such as intellectual
property disputes 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, 2012. The Company does not believe,
based on historical experience and information currently available, that it is probable that any material amounts will
be required to be paid under its indemnification arrangements.

Logitech also indemnifies its current and former directors and certain of its current and former officers.
Certain costs incurred for providing such indemnification may be recoverable under various insurance policies.
Logitech is unable to reasonably estimate the maximum amount that could be payable under these arrangements
because these exposures are not capped, the obligations are conditional in nature, and the facts and circumstances
involved in any situation that might arise.

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ADDITIONAL FINANCIAL DISCLOSURES

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ADDITIONAL FINANCIAL DISCLOSURES

MARKETING, SALES AND DISTRIBUTION

Principal Markets

Net sales to unaffiliated customers by geographic region were as follows (in thousands):

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,

2012
$ 953,867
846,464
515,872
$ 2,316,203

2011
$ 1,032,988
872,774
457,124
$ 2,362,886

2010
$ 729,473
882,635
354,640
$ 1,966,748

Sales are attributed to countries on the basis of the customers’ locations. Revenues from sales to customers
in Switzerland, our home domicile, represented an insignificant portion of our total consolidated net sales in fiscal
years 2012, 2011 and 2010. In fiscal years 2012 and 2011, the United States represented 34% and 36% of our total
consolidated net sales. In fiscal year 2010, the United States represented 32% and Germany represented 11% of our
total consolidated net sales. No other single country represented more than 10% of the Company’s total consolidated
net sales for fiscal years 2012, 2011 and 2010.

In fiscal years 2012, 2011 and 2010, Ingram Micro Inc. and its affiliated entities together accounted for 14%,
12% and 13% of our net sales. No other customer individually accounted for more than 10% of our net sales during
fiscal years 2012, 2011 and 2010. The material terms of our distribution agreements with Ingram Micro and its
affiliated entities are summarized as follows:

• The agreements are non-exclusive

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. Under one
agreement, the Ingram Micro entity may return aged products or take a nominal credit for inventory held
over 60 days.

Marketing

Logitech builds awareness of our products and recognition of the Logitech brand through targeted
advertising, public relations efforts, social media, 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.

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Sales and Distribution

Logitech sells its 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 retail channels, Logitech’s direct sales force sells to distributors and large retailers. These distributors in
North America include Ingram Micro, Tech Data Corporation, D&H Distributing, and Synnex Corporation. 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 and Copaco Dc B.V. in the Netherlands. In Asia, major
distributors include Beijing Digital China Limited in China, Daiwabo in Japan, and the pan-Asian distributor,
Ingram Micro. Our distributor customers typically resell products to retailers, value-added resellers, systems
integrators and other distributors with whom Logitech does not have a direct relationship.

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, Wal-Mart, Staples, Target, and Office Depot. In Europe,
chains include Metro Group (MediaMarkt and Saturn), Carrefour Group, Kesa Electricals, Fnac, and Dixons
Stores Group PLC, and in Asia Pacific, Australia’s Dick Smith Electronics Limited. 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.

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. We are also increasing our focus in the enterprise market.

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 small-to-medium businesses and public healthcare,
education and government organizations.

Through our operating subsidiaries, we maintain sales offices or sales representatives in 41 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. The
trading symbol for Logitech shares is LOGN on the SIX Swiss Exchange and LOGI on Nasdaq. As of April 30, 2012,
there were 191,606,620 shares issued (including 27,134,133 shares held as treasury stock) held by 20,753 holders of
record, and the closing price of our shares was CHF 9.27 ($10.22 based on exchange rates on such date) per share
on the SIX Swiss Exchange and $10.15 per share as reported by the Nasdaq Stock Market.

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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
Low
$
CHF

Low
$

High
CHF

Quarterly Highs and Lows:
Fiscal year 2012:

First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal year 2011:

13.95
9.87
8.94
8.24

18.76
17.25
20.53
18.78

8.65
5.99
6.65
6.57

14.76
14.24
16.64
16.12

15.22
11.81
10.17
8.95

17.48
16.54
20.64
19.28

10.35
8.05
7.27
7.07

13.66
13.18
17.08
17.50

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 2012:

First quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fiscal year 2011:

Price per share on Nasdaq

High
$

14.84
11.64
10.34
8.91

17.84
16.54
21.89
19.97

Low
$

10.48
7.72
7.21
7.20

13.41
13.36
17.02
17.69

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.

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189

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.

Share Repurchases

The following table presents certain information related to purchases made by Logitech of its equity securities

(in thousands, except per share amounts):

Period
April 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
May 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
June 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
July 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
August 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
September 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
October 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
November 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
January 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
February 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total Number of
Shares Purchased
as Part of Publicly
Announced
Program
—
—
—
—
7,329
280
—
—
—
1,780
7,195
925
17,509

Average Price
Paid Per Share

in USD
—
—
—
—
9.54
10.83
—
—
—
7.51
8.55
8.53

in CHF
—
—
—
—
7.62
8.61
—
—
—
6.90
7.79
7.66

Approximate
Dollar Value of
Shares That May
Yet Be Purchased
Under the
Program
$250,000
250,000
250,000
250,000
180,061
177,030
177,030
177,030
177,030
163,662
102,145
94,255

190

In fiscal year 2012, the following approved share buyback programs were in place (in thousands):

Date of Announcement
September 2008—amended . . . .
September 2008 . . . . . . . . . . . . .

Approved
Share
Amount
28,465
8,344

Approved
Buyback
Amount
$ 177,030 August 2013
250,000 August 2013

Expiration
Date

Completion
Date
—
—

Number
of Shares
Remaining(1)
12,075
—

Amount
Remaining
$ 94,255
—

(1) Represents an estimate of the shares remaining to be repurchased calculated based on the amount remaining
to repurchase as of March 31, 2012, $94.3 million, divided by the adjusted close price of the Company’s shares
traded on the SIX Swiss Exchange as of the same date, $7.81 per share.

The Company intends to request shareholder approval at the Company’s next Annual General Meeting
of Shareholders to cancel the 9.9 million shares repurchased under the September 2008 amended share
buyback program.

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, 2007, and calculates
the annual return through March 31, 2012. The stock price performance on the following graph is not necessarily
indicative of future stock price performance.

Comparison of 5 year cumulative total return

$140

$120

$100
$80

$60

$40
$20

2007

2008

2009

2010

2011

2012

Logitech

Nasdaq Composite Index

S&P 500 Index

S&P 500 IT Index

Logitech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nasdaq Composite Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S&P 500 IT Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2007

$100
$100
$100

2008

$91
$94
$93

March 31,

2009

$37
$63
$56

2010

$ 59
$ 99
$ 82

2011

$ 65
$115
$ 93

2012

$ 28
$128
$ 99

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191

SELECTED FINANCIAL DATA

The selected financial data set forth below as of March 31, 2012 and 2011, and for the fiscal years ended
March 31, 2012, 2011 and 2010, are derived from our consolidated financial statements included elsewhere in this
Annual Report on Form 10-K. The selected financial data as of March 31, 2010, 2009 and 2008, and for the fiscal
years ended March 31, 2009 and 2008 are derived from audited financial statements not included in this Annual
Report on Form 10-K. This financial data 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,

2012

2011

2010
(In thousands, except per share amounts)

2009

2008

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. . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholders’ equity . . . . . . . . . . . . . . . . . . .

$ 2,316,203 $ 2,362,886 $ 1,966,748 $ 2,208,832 $ 2,370,496
849,118

626,896

836,506

776,589

691,226

423,854
162,331
118,423
—

420,580
156,390
116,880
—

304,788
135,813
106,147
1,784

319,167
128,755
113,103
20,547

324,451
124,544
113,443
—

704,608
71,981
71,458 $ 128,460 $

693,850
142,656

548,532
78,364
64,957 $

562,438
581,572
109,654
286,680
107,032 $ 231,026

0.41 $
0.41 $

0.73 $
0.72 $

0.37 $
0.36 $

0.60 $
0.59 $

1.27
1.23

$
$

174,648
175,591

176,928
178,790

$ 196,142 $ 156,742 $

177,279
179,340
365,259 $

181,362
178,811
182,911
187,942
200,587 $ 393,079

2012

2011

March 31,

2010

(In thousands)

2009

2008

— $

492,759 $ 482,352
$ 478,370 $ 477,931 $
$
3,940
— $
$ 1,856,494 $ 1,861,556 $ 1,599,678 $ 1,421,530 $ 1,526,932
997,708 $ 960,044
$ 1,150,241 $ 1,205,001 $

319,944 $
— $

999,715 $

1,637 $

192

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 CNY (Chinese renminbi), Taiwanese dollar, Australian dollar,
Japanese yen, Mexican peso, euro and Canadian dollar. The functional currency of the Company’s operations is
primarily the U.S. dollar. To a lesser extent, certain operations use the euro, CNY, Swiss franc, 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.

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, 2012. The table also presents 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

Transaction Currency

Chinese renminbi

U.S. dollar . . . . . . . . . . . . . . . . . . . . . .
Taiwanese dollar . . . . . . . . . . . . . . . . . U.S. dollar
U.S. dollar . . . . . . . . . . . . . . . . . . . . . . Australian dollar
Japanese yen . . . . . . . . . . . . . . . . . . . . U.S. dollar
Mexican peso . . . . . . . . . . . . . . . . . . . U.S. dollar
British pound
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadian dollar
U.S. dollar . . . . . . . . . . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . .
Swiss franc
Singapore dollar . . . . . . . . . . . . . . . . . U.S. dollar
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . .
U.S. dollar . . . . . . . . . . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . . Norwegian krone
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . .
Euro . . . . . . . . . . . . . . . . . . . . . . . . . . .

Romanian leu
Russian ruble
Polish zloty

Swedish krona
Swiss franc

Net Exposed Long
(Short) Currency
Position

FX Gain (Loss)
From 10%
Appreciation of
Functional
Currency

FX Gain (Loss)
From 10%
Depreciation of
Functional
Currency

$85,773
17,380
11,343
(7,929)
(7,902)
7,500
(3,937)
(1,654)
1,521
(957)
(935)
(885)
610
602
(565)
$99,965

$ (7,798)
(1,580)
(1,031)
721
718
(682)
358
150
(138)
87
85
80
(55)
(55)
51
$ (9,089)

$ 9,530
1,931
1,260
(881)
(878)
833
(437)
(184)
169
(106)
(104)
(98)
68
67
(63)
$ 11,107

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.

193

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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 maintains a portion of its cash investments in CNY-denominated accounts.
At March 31, 2012, net assets held in CNY totaled $85.8 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.

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 four 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). As of March 31, 2012, the notional amounts of foreign exchange forward
contracts outstanding related to forecasted inventory purchases were $58.1 million (A43.5 million). Deferred
realized losses of $0.3 million are recorded in accumulated other comprehensive loss at March 31, 2012, and are
expected to be reclassified to cost of goods sold when the related inventory is sold. Deferred unrealized gains of
$0.2 million related to open cash flow hedges are also recorded in accumulated other comprehensive loss as of
March 31, 2012 and these forward contracts will be revalued in future periods until the related inventory is sold, at
which time the resulting gains or losses will be reclassified to cost of goods sold.

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 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. Cash flows from these contracts are classified as
operating activities in the consolidated statements of cash flows.

The notional amounts of foreign exchange forward contracts outstanding at March 31, 2012 relating to foreign
currency receivables or payables were $18.7 million. Open forward contracts as of March 31, 2012 consisted of
contracts in British pounds to sell euros and contracts in Australian dollars to purchase U.S. dollars at future
dates at a predetermined exchange rate. The notional amounts of foreign exchange swap contracts outstanding
at March 31, 2012 were $22.4 million. Swap contracts outstanding at March 31, 2012 consisted of contracts in
Taiwanese dollars, Mexican pesos and Japanese Yen. Unrealized net gains on the contracts outstanding at
March 31, 2012 were $0.2 million.

If the U.S. dollar had appreciated by 10% at March 31, 2012 compared with the foreign currencies in which
we have forward or swap contracts, an unrealized gain of $7.3 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 $6.4 million unrealized loss in our forward foreign exchange contract
portfolio would have occurred.

194

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, 2012 and March 31, 2011 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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LOGITECH INTERNATIONAL S.A.

QUARTERLY FINANCIAL DATA
(Unaudited)

The following table contains selected unaudited quarterly financial data for fiscal years 2012 and 2011 (in

thousands except per share amounts):

Year ended March 31, 2012

Year ended March 31, 2011

First

Second

Third

Fourth

First

Second

Third

Fourth*

Net sales . . . . . . . . . . . . . . . . . . . . . $ 480,441 $ 589,204 $ 714,596 $ 531,962 $ 479,330 $ 581,884 $ 754,054 $ 547,618
Gross profit . . . . . . . . . . . . . . . . . .
179,370
Operating expenses:

198,421 258,674 193,887

125,607

216,934

169,029

271,173

Marketing and selling . . . . . . .
41,911
Research and development. . . .
30,673
General and administrative . . .
—
Restructuring charges . . . . . . .
174,926 188,897
Total operating expense . . .
Operating income (loss). . . . . . . . .
69,777
23,495
Net income (loss) . . . . . . . . . . . . . . $ (29,606) $ 17,445 $ 55,333 $ 28,286 $ 19,522 $ 41,160 $ 65,002 $
Net income (loss) per share**:

116,313 100,302
40,948
28,896
—
170,146
23,741

99,793
39,981
30,865
—
170,639
(45,032)

91,477
38,389
27,360
—
157,226
11,803

124,914
38,955
31,264
—
195,133
76,040

97,412
40,927
27,420
—
165,759
51,175

107,446
39,491
27,989
—

106,777
38,119
30,836
—
175,732
3,638
2,776

Basic . . . . . . . . . . . . . . . . . . . . . $
Diluted . . . . . . . . . . . . . . . . . . . $

(0.17) $
(0.17) $

0.10 $
0.10 $

0.32 $
0.32 $

0.17 $
0.17 $

0.11 $
0.11 $

0.23 $
0.23 $

0.37 $
0.36 $

0.02
0.02

Shares used to compute net
income (loss) per share:
Basic . . . . . . . . . . . . . . . . . . . . .
Diluted . . . . . . . . . . . . . . . . . . .

179,331
179,331

176,878 173,003 169,387
173,656 170,401
177,277

175,492
177,358

176,359
177,958

177,233
178,562
179,703 180,423

Net income for the fourth quarter includes $5.7 million in pretax charges related to sales incentive allowances
from fiscal year 2010 and prior quarters in fiscal year 2011. The Company reviewed the accounting errors
utilizing SEC Staff Accounting Bulletin No. 99, Materiality and SEC Staff Accounting Bulletin No. 108,
Effects of Prior Year Misstatements on Current Year Financial Statements, and determined the impact of the
errors to be immaterial to any period presented.

** 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, 2012

Year ended March 31, 2011

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:

36.2

36.4

32.8

36.0

26.1

35.3

37.3

33.7

Marketing and selling . . . . . . . . . . .
Research and development . . . . . . .
General and administrative . . . . . . .
Restructuring charges . . . . . . . . . . .
Total operating expense . . . . . .
Operating income (loss) . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . .

20.8
8.3
6.4
—

18.2
6.7
4.8
—

16.3
5.9
4.3
—

18.9
7.7
5.4
—

19.1
8.0
5.7
—

16.7
7.0
4.7
—

16.6
5.2
4.1
—

19.5
7.0
5.6
—

35.5
(9.4)
(6.2)%

29.7
4.0
3.0%

32.0
4.4

26.4
9.8
7.7% 5.3%

32.8
2.5
4.1%

196

25.9
10.1

28.5
8.8
7.1% 8.6% 0.5%

32.1
0.7

REPORT ON CORPORATE GOVERNANCE 2012

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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 elsewhere in our Annual Report, Invitation and
Proxy Statement for our 2012 Annual General Meeting, of which this Report is a part.

1. Group Structure and Shareholders

1.1 Operational Group Structure

Logitech is a world leader in products that connect people to digital experiences they care about. Spanning
multiple computing, communication and entertainment platforms, we develop and market innovative hardware
and software products that enable or enhance digital navigation, music and video entertainment, gaming, social
networking, audio and video communication over the Internet, video security and home-entertainment control.

Logitech was founded in Switzerland in 1981, and Logitech International S.A. has been the parent holding
company of Logitech since 1988. Logitech International S.A. is a Swiss holding company with its registered office
in Apples, Switzerland, which conducts its business through subsidiaries in the Americas (including North and
South America), EMEA (Europe, Middle East, Africa) and Asia Pacific (including, among other countries, China,
Taiwan, Japan, India and Australia). Shares of Logitech International S.A. are listed on both the Nasdaq Global
Select Market (Ticker: LOGI, CUSIP H50430232), and the SIX Swiss Exchange (Ticker: LOGN; security number:
257513), and Logitech has a “second trading line” with the SIX Swiss Exchange (Ticker: LOGNE; security number
14070037) as a component of its stock repurchase program. The International Securities Identification Number
(ISIN) of our shares is CH0025751329. As of March 31, 2012, our market capitalization, based on outstanding
shares of 164,433,281, net of treasury shares, amounted to approximately $1.2 billion (CHF 1.0 billion). Refer to
section 1.2 below for information on Logitech International S.A.’s holdings in its shares as of March 31, 2012.

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.

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 pages 211 and 212. None of Logitech International S.A.’s subsidiaries have
securities listed on a stock exchange as of March 31, 2012.

Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations
under the heading “Overview of our Company” in our Annual Report, Invitation and Proxy Statement for further
information on Logitech’s operational group structure.

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1.2 Significant Shareholders

Greater than 3% Shareholders as of March 31, 2012

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, 2012. The number of voting rights of the Company as of March 31,
2012 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, 2012, 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 Annual Report, Invitation
and Proxy Statement for the 2012 Annual General Meeting, available at http://ir.logitech.com, under the heading
“Security Ownership of Certain Beneficial Owners and Management as of June 30, 2012”.

Name

Capital Research Global Investors(3) . . . . . . .
Morgan Stanley, The Corporation

Trust Company(4) . . . . . . . . . . . . . . . . . . .
FMR LLC(5) . . . . . . . . . . . . . . . . . . . . . . . . . .
Daniel Borel(6) . . . . . . . . . . . . . . . . . . . . . . . .

Number of Shares(1)

% of Voting
Rights(2)

Relevant Date

16,410,000

8.6%

December 31, 2011

12,654,812
11,532,789
11,368,313

6.6%
6.0%
5.9%

August 2010
December 31, 2011
December 31, 2011

(1) Financial instruments other than shares are not taken into consideration for the calculation of the relevant

shareholdings.

(2) Shareholdings are calculated based on the aggregate number of voting rights entered into the Swiss commercial

(3) Number of shares held by Capital Research Global Investors, a division of CRMC (Capital Research and
Management Company), is based on a notification filed by Capital Research Global Investors with the U.S.
Securities and Exchange Commission on February 14, 2012 indicating beneficial ownership by Capital Research
Global Investors as a result of CRMC acting as investment advisor to various investment companies.

(4) On April 5, 2012, Morgan Stanley, The Corporation Trust Company notified us that as of August 2010 Morgan

Stanley, The Corporation Trust Company and its subsidiaries held 12,654,812 shares.

(5) 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 14, 2012, on behalf of funds managed by and clients of direct and
indirect subsidiaries of FMR LLC as of December 31, 2011. FMR LLC is the parent holding company of Fidelity
Management & Research Company, investment manager for U.S. mutual funds, and Fidelity Management &
Trust Company, a U.S. state chartered bank which acts as a trustee or investment manager of various pension
and trust accounts.

(6)

Includes (a) 53,000 shares held by a charitable foundation, of which Mr. Borel and other members of his
family are board members and (b) 6,500 shares held by Mr. Borel’s spouse. Mr. Borel has not entered into any
written shareholders’ agreements.

In addition, as of March 31, 2012, a total of 17,158,655 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. The notifications are published on the website of the SIX Swiss Exchange at
http://www.six-swiss-exchange.com/shares/companies/major_shareholders_en.html?fromDate=19980101&issuer=2769

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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, 2012, 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, 2012, 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.

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 4 – 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.

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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, 2012, 2011 and 2010, 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 capital contributions. . . . . . . . . . . . . . . . . . . . .
Reserve for treasury shares
- Reserve for treasury shares from capital contributions . . .
- Other general reserves for treasury shares . . . . . . . . . . . . .
Total legal reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2012

As of March 31,
2011

2010

CHF 47,902

9,580

116,070
217,375
343,025

116,070
165,495
291,145

116,070
303,700
429,350

Unappropriated retained earnings. . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

460,919
CHF 851,846

507,730
CHF 846,777

349,312
CHF 826,564

The following table shows authorized and conditional share capital as of the last three fiscal year ends

(in thousands):

2012

As of March 31,
2011

2010

Authorized share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
First conditional share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second conditional share capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHF — CHF — CHF —
CHF 6,250
CHF 6,250
CHF 6,250
CHF 6,250
CHF 6,250
CHF 6,250

For information on Logitech’s shareholders’ equity as of March 31, 2012 and 2011, refer to the Swiss Statutory

Balance Sheets on page 269 of our Annual Report, Invitation and Proxy Statement.

During fiscal years 2012, 2011 and 2010, the Company had the following approved share buyback programs

in place (in thousands):

Date of
Announcement

Approved
Buyback
Amount

Expiration
Date

Completion
Date

Number of
Shares
Remaining(1)

September 2008 - amended . . . . . . . . . . .
September 2008 . . . . . . . . . . . . . . . . . . . .
June 2007 . . . . . . . . . . . . . . . . . . . . . . . . .

— 12,075
August 2013
$ 177,030
—
250,000
—
August 2013
—
250,000 September 2010 March 2010

Amount
Remaining

$94,255
—
—

(1) Represents an estimate of the shares remaining to be repurchased calculated based on the amount remaining
to repurchase as of March 31, 2012, $94.3 million, divided by the adjusted closing price of the Company’s
shares traded on the SIX Swiss Exchange as of the same date, $7.81 per share.

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In November 2011, the Company received approval from the Swiss regulatory authorities for an amendment to
the September 2008 share buyback program to enable future repurchases of shares for cancellation, up to a total of
28.5 million shares. The Company repurchased shares under these buyback programs as follows (in thousands):

Date of
Announcement

Program to date

2012

Amount

2011
Shares Amount

2010

Amount

Amounts Repurchased During Year ended March 31,(1)

September 2008 - amended . . . .
September 2008 . . . . . . . . . . . . .
June 2007 . . . . . . . . . . . . . . . . . .

82,902 —
9,900
73,134 —
7,609
11,978
— —
29,487 $406,591 17,509 $156,036 —

82,902
73,134
250,555

9,900
7,609
—

—
—
—
—
— 7,425
$ — 7,425

—
—
126,301
$126,301

(1) Represents the amount in U.S. dollars, including transaction costs, 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 Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities”
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. The Board is proposing that, for fiscal year 2012, Logitech make a one-time distribution to
shareholders of additional paid-in capital out of its capital contribution reserves.

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”).

2.6 Limitations on Transferability and Nominee Registration

The Company and its agent, The Bank of New York Mellon, as U.S. 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

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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 this Annual
Report, Invitation and Proxy Statement, under the heading “Equity Compensation Plan Information” at pages 113
to 153, 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 4 – 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 Annual Report, Invitation and Proxy Statement for the 2012 Annual General Meeting, under the
heading “Corporate Governance and Board of Directors Matters” at pages 91 to 112.

Senior Management

4.1 Members of Senior Management

The members of our senior management, referred to by Logitech as our “executive officers,” are set

out below.

Guerrino De Luca . . . . . . . . . . . . . . . .
59 Years Old
Director since 1998
Chairman of the Board of Directors
and Chief Executive Officer
Italian and U.S. national

Guerrino De Luca has served as Chairman of the Logitech Board of
Directors since January 2008 and as Chief Executive Officer since
April 2012. Mr. De Luca served as Logitech’s acting President and
Chief Executive Officer from July 2011 to April 2012. Previously
Mr. De Luca served as Logitech’s President and Chief Executive
Officer from February 1998, when he joined the Company, to January
2008. Prior to joining Logitech, Mr. De Luca served as Executive
Vice President of Worldwide Marketing for Apple, Inc., a consumer
electronics and computer company, 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 Laurea degree in Electronic
Engineering from the University of Rome, Italy.

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Bracken P. Darrell . . . . . . . . . . . . . . . .
49 Years Old
President
U.S. National

Erik K. Bardman . . . . . . . . . . . . . . . . .
45 Years Old
Senior Vice President, Finance and
Chief Financial Officer
U.S. national

Werner Heid . . . . . . . . . . . . . . . . . . . . .
53 Years Old
Senior Vice President,
Worldwide Sales & Marketing
German national

Bracken P. Darrell joined Logitech as President in April 2012. Prior
to joining Logitech, Mr. Darrell served as President of Whirlpool
EMEA and Executive Vice President of Whirlpool Corporation, a home
appliance manufacturer and marketing company, from January 2009 to
March 2012. Previously, Mr. Darrell had been Senior Vice President,
Operations of Whirlpool EMEA from May 2008 to January 2009. From
2002 to May 2008, Mr. Darrell was with P&G (The Procter & Gamble
Company), a consumer brand company, most recently as the President of
its Braun GmbH subsidiary. Prior to rejoining P&G in 2002, Mr. Darrell
served in various executive and managerial positions with General
Electric Company from 1997 to 2002, with P&G from 1991 to 1997, and
with PepsiCo Inc. from 1987 to 1989. Mr. Darrell currently serves on the
Board of Trustees of Hendrix College. Mr. Darrell holds a BA degree
from Hendrix College and an MBA degree from Harvard University.

Erik K. 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 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.

Mr. Heid resigned from Logitech, effective as of May 2012 (after the
end of fiscal year 2012).

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Junien Labrousse . . . . . . . . . . . . . . . . .
54 Years Old
Executive Vice President, Products
and President, Logitech Europe
French national

L. Joseph Sullivan . . . . . . . . . . . . . . . . .
59 Years Old
Senior Vice President,
Worldwide Operations
U.S. national

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, Executive Vice President, Products in
March 2007 and President, Logitech Europe, in September 2010. 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.

Mr. Labrousse ceased to be an executive officer in April 2012 (after the
end of the fiscal year). He assumed the role of Senior Vice President,
Consumer Computing Platform group at that time.

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 on pages 113 to 153 of our Annual Report, Invitation
and Proxy Statement for our 2012 Annual General Meeting, of which this Report is a part, for information on
Logitech’s compensation of its Board members and executive officers, and regarding how and why we make
compensation decisions.

In addition, for information required to be disclosed under Swiss law regarding compensation during fiscal
year 2012 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, 2012,
among other disclosures, please refer to Note 16 – Other Disclosures Required by Swiss Law – in the Consolidated
Financial Statements included in the 2012 Annual Report.

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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.

The Company has received an exemption from compliance with a Nasdaq listing standard that requires that
the quorum for shareholder meetings be at least 331/3% 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

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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 2012 Annual General Meeting, and combined it with its Annual Report
required under Swiss law and U.S. law to create one convenient document for shareholders. 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, or c/o Logitech Inc., 7600 Gateway Boulevard,
Newark, CA 94560, 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 331/3% 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 our Compensation Report at pages 113 to 153 of our Annual Report, Invitation and Proxy
Statement for the 2012 Annual General Meeting, of which this Report is a part, 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.

8. Auditors

Under the Company’s Articles of Incorporation, the shareholders elect the Company’s independent registered

public accounting firm each year at the Annual General Meeting. Re-election is permitted.

The Company’s auditors are currently PricewaterhouseCoopers SA, Lausanne branch, 45, Avenue C.F.
Ramuz, P.O. Box 1172, CH-1001, Lausanne, Switzerland. PwC assumed its first audit mandate for Logitech in
1988. They were re-elected as the Company’s auditors in September 2011. The responsible principal audit partner

208

as of March 31, 2012 is, and since fiscal year 2011 has been, Michael Foley. 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 the Corporate Governance and Board of Directors Matters section of Logitech’s Annual
Report, Invitation and Proxy Statement for the 2012 Annual General Meeting, under the headings “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 2012, 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:

Q2 FY13 Earnings Release and Conference Call . . . . . . . . . . . . . . . . . . . . . . . . .
Q3 FY13 Earnings Release and Conference Call . . . . . . . . . . . . . . . . . . . . . . . . .
Q4 FY13 Earnings Release and Conference Call . . . . . . . . . . . . . . . . . . . . . . . . .

October 25, 2012
January 24, 2013
April 25, 2013

The Company’s 2012 Annual General Meeting is to be held September 5, 2012 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, Invitation and Proxy Statement,
or a notice that such documents are available. The Annual Report section of the document 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
section of the document 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, or SEC, including reports on Forms
10-K, 10-Q, 8-K, 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
filed or furnished pursuant to U.S. securities laws or Swiss 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.

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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, 7600 Gateway Boulevard, Newark, CA 94560 USA,
Main 510-795-8500, e-mail: LogitechIR@logitech.com.

210

LOGITECH INTERNATIONAL S.A.
Consolidated Subsidiaries

Jurisdiction of Incorporation

Group
Holding %

Share Capital

Name of Subsidiary
EUROPE

Labtec Europe S.A. . . . . . . . . . . . . . . . . . . . . . Switzerland
Logi Trading and Services

Limited Liability Company . . . . . . . . . . . Hungary

Logitech U.K. Limited . . . . . . . . . . . . . . . . . . United Kingdom
Logitech (Jersey) Limited . . . . . . . . . . . . . . . .
Logitech Czech Republic, s.r.o. . . . . . . . . . . . Czech Republic
Logitech Espana BCN SL . . . . . . . . . . . . . . . . Spain
Logitech Europe S.A. . . . . . . . . . . . . . . . . . . . Switzerland
SAS Logitech France . . . . . . . . . . . . . . . . . . . Republic of France
Logitech GmbH . . . . . . . . . . . . . . . . . . . . . . . Federal Republic of Germany
Logitech 3D Holding GmbH . . . . . . . . . . . . . Federal Republic of Germany

Jersey, Channel Islands

Ireland
Ireland

Logitech Ireland Services Limited . . . . . . . . .
Logitech Ireland Limited . . . . . . . . . . . . . . . .
Logitech Italia SRL . . . . . . . . . . . . . . . . . . . . Republic of Italy
Logitech Mirial Srl . . . . . . . . . . . . . . . . . . . . . Republic of Italy
Logitech Nordic AB . . . . . . . . . . . . . . . . . . . . Sweden
Logitech Benelux B.V. . . . . . . . . . . . . . . . . . . Kingdom of the Netherlands
Logitech Poland Spolka z.o.o. . . . . . . . . . . . . Poland
Logitech S.A. . . . . . . . . . . . . . . . . . . . . . . . . . Switzerland
Logitech Austria GmbH . . . . . . . . . . . . . . . . . Austria
Logitech Middle East FZ-LLC . . . . . . . . . . . . United Arab Emirates
Logitech (Streaming Media) SA . . . . . . . . . . . Switzerland
Logitech Hellas MEPE . . . . . . . . . . . . . . . . . . Greece
Logitech Schweiz AG . . . . . . . . . . . . . . . . . . . Switzerland
3Dconnexion SA . . . . . . . . . . . . . . . . . . . . . . . Switzerland
Logi Trading and Services

Limited Liability Company . . . . . . . . . . . Hungary

Limited Liability Company “Logitech” . . . . . Russia
Logi Peripherals Technologies

(South Africa) (Proprietary) Limited . . . . South Africa

Logitech Norway AS . . . . . . . . . . . . . . . . . . . Norway

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

CHF

150,000

HUF
EUR
USD
CZK
EUR
CHF
EUR
EUR
EUR
EUR
EUR
EUR
EUR
SEK
EUR
PLN
CHF
EUR
AED
CHF
EUR
CHF
CHF

HUF
RUB

3,000,000
20,000
188
200,000
50,000
100,000
182,939
25,565
25,565
3
4,618,358
20,000
100,000
100,000
18,151
50,000
200,000
35,000
100,000
100,000
18,000
100,000
100,000

3,000,000
20,000

ZAR
NOK

1,000
100,000

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LOGITECH INTERNATIONAL S.A.
Consolidated Subsidiaries—(Continued)

Jurisdiction of Incorporation

Group
Holding %

Share Capital

Name of Subsidiary
AMERICAS

Logitech Argentina S.R.L. . . . . . . . . . . . . . . . Argentina
Dexxa Accessorios

De Informatica Do Brasil Ltda. . . . . . . . . Brazil
Logitech Chile Limitada . . . . . . . . . . . . . . . . . Chile
Logitech de Mexico S.A. de C.V. . . . . . . . . . . Mexico
Logitech Canada Inc. . . . . . . . . . . . . . . . . . . . Canada
Logitech Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . United States of America
Logitech (Streaming Media) Inc. . . . . . . . . . . United States of America
Logitech (Slim Devices) Inc. . . . . . . . . . . . . . United States of America
WiLife, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . United States of America
Logitech Servicios Latinoamérica,

S.A. de C.V. . . . . . . . . . . . . . . . . . . . . . . . . Mexico

Ultimate Ears LLC . . . . . . . . . . . . . . . . . . . . . United States of America
Ultimate Ears Incorporated . . . . . . . . . . . . . . United States of America
UE Consumer, LLC . . . . . . . . . . . . . . . . . . . . United States of America
SightSpeed, Inc. . . . . . . . . . . . . . . . . . . . . . . . United States of America
LifeSize Communications, Inc. . . . . . . . . . . . United States of America
UE Acquisition Inc. . . . . . . . . . . . . . . . . . . . . United States of America
Logitech Latin America, Inc. . . . . . . . . . . . . . United States of America
Labtech Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . United States of America

ASIA PACIFIC

Japan
India

LogiCool Co., Ltd. . . . . . . . . . . . . . . . . . . . . .
Logitech Electronic (India) Private Limited . . .
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. . . . . People’s Republic of China
Suzhou Logitech Computing

Equipment Co., Ltd. . . . . . . . . . . . . . . . . . People’s Republic of China
Suzhou Logitech Electronic Co. Ltd. . . . . . . . People’s Republic of China
Logitech (China) Technology

Company, Ltd. . . . . . . . . . . . . . . . . . . . . . . People’s Republic of China

Logitech Asia Logistics Limited . . . . . . . . . . Hong Kong
Logitech Asia Pacific Limited . . . . . . . . . . . . Hong Kong
Logitech Australia Computer 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

Logitech Trading Pvt Ltd . . . . . . . . . . . . . . . .
Logitech Engineering & Designs India

India

Private Limited . . . . . . . . . . . . . . . . . . . . .

India

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

ARS

10,000

10,000
BRL
1,000,000
CLP
50,000
MXN
CAD
100
USD 11,522,396
10
USD
10
USD
10
USD

MXN
USD
USD
USD
USD
USD
USD
USD
USD

50,000
—
10
—
1
1
10
1
1

JPY 155,000,000
107,760
INR
TWD 480,000,000
USD
1,282
KRW 150,144,225
10,000
NZD
1
USD
SGD
500
USD 22,000,000

USD
USD

USD
USD
USD

AUD

7,500,000
5,000,000

7,800,000
13
13

CNY

5,000,000

HKD
INR

110,000
50,000

INR

500,000

Due to local legal requirements, there may be holders of nominal shares apart from Logitech.

212

CONSOLIDATED FINANCIAL STATEMENTS

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Report of the Statutory Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Operations – Years Ended March 31, 2012, 2011 and 2010 . . . . . . . . . . . . . . . .
Consolidated Statements of Comprehensive Income – Years Ended March 31, 2012, 2011 and 2010 . . . . . .
Consolidated Balance Sheets – March 31, 2012 and 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statements of Cash Flow – Years Ended March 31, 2012, 2011 and 2010 . . . . . . . . . . . . . . . . .
Consolidated Statements of Changes in Shareholders’ Equity – Years Ended March 31, 2012, 2011

214
216
217
218
219

and 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

220

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Report of the statutory auditor
to the general meeting of
Logitech International SA
Apples

Report of the statutory auditor on the consolidated financial statements

As statutory auditor, we have audited

the accompanying consolidated financial statements of
Logitech International SA, 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, 2012.

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 auditing standards generally
accepted in the United States of America. 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, 2012 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.

PricewaterhouseCoopers SA, avenue C.-F. Ramuz 45, Case postale, CH-1001 Lausanne, Switzerland
Telephone: +41 58 792 81 00, Facsimile: +41 58 792 81 10, www.pwc.ch

PricewaterhouseCoopers SA est membre d’un réseau mondial de sociétés juridiquement autonomes et indépendantes les unes des autres.

214

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 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

Michael Foley
Audit expert
Auditor in charge

Lausanne, May 31, 2012

Enclosure:

Alexandre Dübi
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, 2012.

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LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

Year ended March 31,

2012

2011

2010

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$2,316,203
1,539,614

$2,362,886
1,526,380

$1,966,748
1,339,852

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, 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:

776,589

836,506

626,896

423,854
162,331
118,423
—
704,608
71,981
2,674
16,622
91,277
19,819

420,580
156,390
116,880
—
693,850
142,656
2,316
3,476
148,448
19,988

$
$

71,458

$ 128,460

0.41
0.41

$
$

0.73
0.72

$
$

304,788
135,813
106,147
1,784
548,532
78,364
2,120
3,139
83,623
18,666

64,957

0.37
0.36

174,648
175,591

176,928
178,790

177,279
179,340

The accompanying notes are an integral part of these consolidated financial statements.

216

LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

Net income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other comprehensive income:

Foreign currency translation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defined benefit pension plan adjustments during the period:

Year ended March 31,

2012

2011

2010

$ 71,458

$128,460

$64,957

(8,213)

5,005

2,753

Net gain (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax benefit (expense) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . .

(11,808)
170
89

(5,609)
(241)
(1,980)

4,143
(122)
(1,112)

Less amortization included in net income:

Transition obligation for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior service cost for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net loss for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement loss for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pension liability adjustments, net of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred hedging gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less reclassification adjustment for gain (loss) included in net income . . .
Net deferred hedging gain (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain (loss) for the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less reclassification adjustment for gain included in net income . . . . . . . .
Unrealized gain (loss) on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net change in accumulated other comprehensive gain (loss) . . . . . . . . . . . . . .
Total comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

—
(15)
275
—
(11,289)
3,337
(421)
2,916
(342)
(483)
(825)
(17,411)
$ 54,047

5
146
396
23
(7,260)
(10,444)
6,078
(4,366)
744
—
744
(5,877)
$122,583

4
120
1,276
—
4,309
6,793
(5,615)
1,178
—
—
—
8,240
$73,197

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The accompanying notes are an integral part of these consolidated financial statements.

217

LOGITECH INTERNATIONAL S.A.

CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)

March 31,

2012

2011

Current assets:

ASSETS

Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property, plant and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other intangible assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 478,370
223,104
297,072
65,990
1,064,536
94,884
560,523
53,518
83,033
$1,856,494

$ 477,931
258,294
280,814
59,347
1,076,386
84,160
547,184
74,616
79,210
$1,861,556

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 301,111
186,680
487,791
218,462
706,253

$ 298,160
172,560
470,720
185,835
656,555

Commitments and contingencies
Shareholders’ equity:

Shares, par value CHF 0.25—191,606 issued and authorized and

50,000 conditionally authorized at March 31, 2012 and 2011 . . . . . . . . . . . . .
Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shares in treasury, at cost, 27,173 at March 31, 2012 and 12,433 at

March 31, 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33,370
—

(343,829)
1,556,629
(95,929)
1,150,241
$1,856,494

(264,019)
1,514,168
(78,518)
1,205,001
$1,861,556

The accompanying notes are an integral part of these consolidated financial statements.

218

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:

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Inventory valuation adjustment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Write-down of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on disposal of property and plant . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of available-for-sale securities. . . . . . . . . . . . . . . . . . . . . . . . .
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . . . .
Gain on cash surrender value of life insurance policies . . . . . . . . . . . . . . .
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:

Purchases of property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . .
Acquisitions, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sale of property and plant . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchases of trading investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from sales of trading investments . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proceeds from cash surrender of life insurance policies. . . . . . . . . . . . . . . . . .
Proceeds from sale of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premiums paid on cash surrender value life insurance policies . . . . . . . . . . . .
Net cash 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. . .
Tax withholdings related to net share settlements of restricted stock units . . .
Excess tax benefits from share-based compensation . . . . . . . . . . . . . . . . . . . .
Repayments of debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (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:

Year ended March 31,
2011

2012

2010

$ 71,458

$128,460

$ 64,957

45,968
26,534
34,074
31,529
—
(8,967)
(6,109)
(37)
—
137

29,279
(36,621)
(4,621)
3,622
9,896
196,142

(47,807)
(18,814)
6,550
8,967
(7,505)
7,399
—
—
—
(51,210)

48,191
27,800
—
34,846
43
(838)
—
(3,455)
(901)
(8,492)

(54,684)
(60,482)
5,825
37,714
2,715
156,742

(43,039)
(7,300)
—
2,688
(19,075)
6,470
11,313
9,087
(5)
(39,861)

(156,036)
17,591
(966)
37
—
(139,374)
(5,119)
439
477,931
$ 478,370

—
43,001
(223)
3,455
—
46,233
(5,127)
157,987
319,944
$477,931

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

(39,834)
(388,809)
—
—
—
—
813
—
—
(427,830)

(126,301)
28,917
—
2,814
(13,630)
(108,200)
(2,044)
(172,815)
492,759
$ 319,944

Interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$
110
$ 14,422

$
25
$ 16,619

Non-cash investing activities:

Net increase (decrease) in accrued purchases of property and equipment . . . .

$ 11,216

(522)

$
$

The accompanying notes are an integral part of these consolidated financial statements.

219

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66
9,436

LOGITECH INTERNATIONAL S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(In thousands)

Shares Amount
March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,606 $33,370

Registered shares

Additional
paid-in
capital
$ 45,012

Total comprehensive income . . . . . . . . . . . . . . . .

Purchase of treasury shares . . . . . . . . . . . . . . . . .
Tax benefit from exercise of stock options . . . . .
Sale of shares upon exercise of options and

—

—
—

—

—
—

—

—
266

purchase rights . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense . . . . . . . . . .
March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,606 $33,370
—
Total comprehensive income . . . . . . . . . . . . . . . .
—
Tax benefit from exercise of stock options . . . . .
Shares issued for director services . . . . . . . . . . .
—
Sale of shares upon exercise of options and

—
—
—

—
—

— (56,326)
— 25,928
$ 14,880
—
4,783
(116)

Shares
12,124

—

7,425
—

(3,114)
—
16,435
—
—
(12)

Treasury shares

Amount

Retained
earnings
$(341,454) $1,341,661

Accumulated
other
comprehensive
loss
$(80,881)

Total
$ 997,708

—

64,957

8,240

73,197

(126,301)
—

—
—

(126,301)
266

85,243
—

—
—
$(382,512) $1,406,618
128,460
—
—

—
—
307

—
—
$(72,641)
(5,877)
—
—

28,917
25,928
$ 999,715
122,583
4,783
191

purchase rights . . . . . . . . . . . . . . . . . . . . . . . .

—

— (52,738)

(3,934)

116,649

(20,910)

—

43,001

Issuance of shares upon vesting of restricted

—
—

stock units . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense . . . . . . . . . .
March 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,606 $33,370
Total comprehensive income . . . . . . . . . . . . . . . .
Purchase of treasury shares . . . . . . . . . . . . . . . . .
Tax benefit from exercise of stock options . . . . .
Shares issued for director services . . . . . . . . . . .
Sale of shares upon exercise of options and

—
—
—

—
(1,760)
— 34,951

(56)
—
— 12,433

— 17,509
—
(33)

(908)
(643)

1,537
—

—
—
$(264,019) $1,514,168
71,458
—
—
—

(156,036)
—
844

—
—
$(78,518)
(17,411)
—
—
—

(223)
34,951
$1,205,001
54,047
(156,036)
(908)
201

purchase rights . . . . . . . . . . . . . . . . . . . . . . . .

—

— (21,138)

(2,442)

67,754

(28,997)

—

17,619

Issuance of shares upon vesting of restricted

stock units . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense . . . . . . . . . .
March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . 191,606 $33,370

—
—

—
(8,594)
— 31,283

(294)
—
— 27,173

7,628
—

—
—
$(343,829) $1,556,629

—
—
$(95,929)

(966)
31,283
$1,150,241

The accompanying notes are an integral part of these consolidated financial statements.

220

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1 — The Company

Logitech is a world leader in products that connect people to the digital experiences they care about. Spanning
multiple computing, communications and entertainment platforms, we develop and market innovative hardware
and software products that enable or enhance digital navigation, music and video entertainment, gaming, social
networking, audio and video communication over the Internet, video security and home-entertainment control. Our
products for home and business PCs (personal computers) include mice, trackballs, keyboards, interactive gaming
controllers, multimedia speakers, headsets, webcams, and lapdesks. Our tablet accessories include keyboards,
keyboard cases and covers, headsets, wireless speakers, and stands. Our Internet communications products
include webcams, headsets, video communication services, and digital video security systems. Our digital music
products include speakers, earphones, custom in-ear monitors, and Squeezebox Wi-Fi music players. For home
entertainment systems, we offer the Harmony line of advanced remote controls. For gaming consoles, we offer a
range of gaming controllers and microphones, as well as other accessories. Our video conferencing segment offers
scalable HD (high-definition) video communications endpoints, HD video conferencing systems with integrated
monitors, video bridges and other infrastructure software and hardware to support large-scale video deployments,
and services to support these products.

We sell our peripheral products to a network of distributors, retailers and OEMs (original equipment
manufacturers). We sell our video conferencing products and services to distributors, value-added resellers, OEMs,
and, occasionally, direct enterprise customers. The large majority of our revenues have historically been derived
from sales of our 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 U.S. GAAP (accounting principles generally accepted in the United States of America).

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.

Use of Estimates

The preparation of financial statements in conformity with 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.

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221

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

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, Chinese renminbi, Swiss franc, 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 statements of operations.

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.

For sales of most hardware peripherals products and hardware bundled with software incidental to its
functionality, these criteria are met at the time delivery has occurred and title and risk of loss have transferred to
the customer.

For multiple-deliverable revenue arrangements that include both undelivered software elements and hardware
with software essential its functionality, the Company uses the following hierarchy to determine the relative selling
price for allocating revenue to the deliverables: (i) VSOE (vendor specific objective evidence) of fair value, if
available; (ii) TPE (third party evidence), if VSOE is not available; or (iii) ESP (estimated selling price), if neither
VSOE or TPE is available. Management judgment must be used to determine the appropriate deliverables and
associated relative selling prices. The Company has identified Logitech Revue and the LifeSize video conferencing
products as products sold with software components that qualify as multiple-deliverable revenue arrangements.

The sale of Logitech Revue consists of three deliverables: hardware with essential software delivered at
the time of sale, standalone hardware, and unspecified upgrades to the essential software delivered on a when-
and-if-available basis. The relative selling price of the hardware with essential software is based on ESP, using
the cost-plus margin method. The relative selling price of the standalone hardware is based on VSOE from sales
of the product on a standalone basis. As future unspecified upgrades to the essential software are not sold on a
standalone basis by Logitech or its competitors, the ESP for future upgrades is estimated as a percentage of the total
market price for similar software products sold by third parties which include upgrade rights. Amounts allocated
to the delivered hardware and essential software are recognized at the time of sale provided the other conditions
for revenue recognition have been met. Amounts allocated to the future unspecified software upgrade rights are
deferred and recognized ratably over the estimated 24-month life of the hardware.

222

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

LifeSize products include the following deliverables:

• Non-software deliverables

• Hardware with software essential to the functionality of the hardware device delivered at time

of sale

• Maintenance for hardware with essential software, including future, when-and-if-available

unspecified upgrades

• Other services including training and installation

• Software deliverables

• Non-essential software

• Maintenance for non-essential software, including future, when-and-if available unspecified upgrades

The relative selling price for LifeSize hardware with essential software and non-essential software is based
on ESP, as VSOE and TPE cannot be established due to variable price discounting. Key factors considered in
developing ESP are historical selling prices of the product, pricing of substantially similar products, and other
market conditions. LifeSize sells maintenance for non-essential software, maintenance for hardware with essential
software, and other services on a standalone basis, and therefore has established VSOE for those deliverables.

The consideration received for multiple element arrangements consisting of both non-software and software
deliverables is allocated based on relative selling prices to the non-software deliverables and the software
deliverables as a group. Amounts allocated to non-software-related elements, such as delivered hardware with
essential software, are recognized at the time of sale provided that the other conditions for revenue recognition
have been met. Amounts allocated to maintenance services for hardware and essential software are deferred and
recognized ratably over the maintenance period. Amounts allocated to other services are deferred and recognized
upon completion of services. Amounts allocated to software deliverables such as non-essential software and related
services are further allocated to the individual deliverables within the software group. The VSOE of non-essential
software-related services are deferred and recognized ratably over the maintenance period. The residual value of
the amounts allocated to software-related elements is recognized at the time of sale.

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 recorded 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 limited to a percentage approved by management.
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. Upon recognition the
Company reduces revenue and cost of sales for the estimated return. Return trends are influenced by product life
cycle status, new product introductions, market acceptance of products, sales levels, product sell-through, the type
of customer, seasonality, product quality issues, competitive pressures, operational policies and procedures, and
other factors. Return rates can fluctuate over time, but are sufficiently predictable to allow us to estimate expected
future product returns.

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LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

The Company enters into cooperative marketing arrangements with many of our distribution and retail
customers, and with certain indirect partners, 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 arrangements is to encourage advertising and promotional events to increase sales of our products. Accruals
for these marketing arrangements are recorded at the later of time of sale or time of commitment, based on negotiated
terms, historical experience and inventory levels in the channel.

Customer incentive programs include performance-based incentives and consumer rebates. The Company
offers performance-based incentives to its distribution customers, retail customers and indirect partners based on
pre-determined performance criteria. Accruals for performance-based incentives are recognized as a reduction
of the sale price at the time of sale. Estimates of required accruals 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 for the primary benefit of end-users.
Accruals for the estimated costs of consumer rebates and similar incentives are recorded at the later of time of sale
or when 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 agreements with certain of its customers that contain terms allowing price protection
credits to be issued in the event of a subsequent price reduction. 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 of selected products to specific indirect partners. Management’s decision to make price
reductions is influenced by product life cycle stage, market acceptance of products, the competitive environment,
new product introductions and other factors. Accruals for estimated expected future pricing actions are recognized
at the time of sale based on analyses of historical pricing actions by customer and by products, 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.

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 change 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 increases or reductions to revenue, cost of goods sold 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.

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.

224

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

Advertising Costs

Advertising costs are expensed as incurred. Amounts charged to marketing and selling expenses were
$158.1 million, $184.8 million and $118.1 million in fiscal years 2012, 2011 and 2010. 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, but is exposed to credit risk in the
event of default by financial institutions to the extent that cash balances with individual financial institutions are
in excess of amounts that are insured.

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, 2012 and 2011, one customer group
represented 14% and 13% 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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225

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

Investments

The Company’s investment securities portfolio consists of bank time deposits, marketable securities related to
a deferred compensation plan, and auction rate securities collateralized by residential and commercial mortgages.

The bank time deposits are classified as cash equivalents, and are recorded at cost, which approximates

fair value.

The marketable securities related to the deferred compensation plan are classified as non-current trading
investments, as they are intended to fund the deferred compensation plan long-term liability. Trading activity
is directed by plan participants and is not intended to create short-term gains for the benefit of the Company.
These securities are recorded at fair value based on quoted market prices. Earnings, gains and losses on trading
investments are included in other income (expense), net.

The auction rate securities are classified as non-current available-for-sale assets, and are recorded at estimated
fair value. Declines in fair value of the auction rate securities are deemed other-than-temporary and are included in
other income (expense), net. Increases in fair value are deemed temporary and are included in accumulated other
comprehensive income (loss).

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.

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, internal-use software
development over useful lives of three to five years and leasehold improvements over the lesser of the useful life of
the improvement or the term of the lease. Beginning in fiscal year 2011, tooling is depreciated using the straight-
line method over the forecasted life of the tool, not to exceed one year from the time it is placed into production.
Prior to fiscal year 2011, depreciation for tooling was 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. 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.

226

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

Impairment of Long-Lived Assets

The Company reviews long-lived assets, such as property and equipment, and intangible assets, for impairment
whenever events indicate that the carrying amounts might not be recoverable. Recoverability of property and
equipment, and other finite-lived 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 of each reporting unit is evaluated for impairment at least annually as of December 31, or more
frequently if events or circumstances warrant. The Company’s reporting units consist of peripherals and video
conferencing. The recoverability of goodwill is measured at the reporting unit level by comparing the reporting
unit’s carrying amount, including goodwill, to the estimated fair value of the reporting unit. The fair value is
estimated using a discounted cash flow model, which considers estimates of projected future operating results and
cash flows, discounted at an estimated after-tax weighted average cost of capital. In addition, market-based valuation
techniques are used to test the reasonableness of the value indicated by the discounted cash flow model. In the
market-based valuation technique, the implied premium of the aggregate fair value over the market capitalization
is considered attributable to an acquisition control premium, which is the price in excess of a stock’s market price
that investors would typically pay to gain control of an entity. The discounted cash flow model and the market-
based valuation techniques require the exercise of significant judgment, including assumptions about appropriate
discount rates, long-term growth rates for purposes of determining a terminal value at the end of the discrete
forecast period, economic expectations, timing of expected future cash flows, and expectations of returns on equity
that will be achieved. Such assumptions are subject to change as a result of changing economic and competitive
conditions. 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 the impairment loss by allocating the reporting unit’s fair
value to its assets and liabilities other than goodwill, comparing the resulting implied fair value of goodwill with
its carrying amount, and recording an impairment charge for the difference.

Income Taxes

The Company provides for income taxes using the asset and 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.

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 equivalents, accounts
receivable, accounts payable and accrued liabilities approximates fair value due to their short maturities. The
Company’s trading investments related to the deferred compensation plan are reported at fair value based on quoted
market prices. Available-for-sale securities are reported at estimated fair value.

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227

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

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 RSUs (restricted stock units) 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 from share-based compensation against the valuation allowance
related to the net operating 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 continuing operations.

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. Other comprehensive income is comprised of foreign currency translation adjustments from those entities

228

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2 — Summary of Significant Accounting Policies (Continued)

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.

Treasury Shares

The Company periodically repurchases shares in the market at fair value. Treasury shares repurchased are
recorded at cost, as a reduction of total shareholders’ equity. Treasury shares held may be reissued to satisfy the
exercise of employee stock options and purchase rights, the vesting of restricted stock units, and acquisitions, or
may be cancelled with shareholder approval.

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 hedge against exposure to changes
in foreign currency exchange rates related to its subsidiaries’ forecasted inventory purchases. These forward
contracts generally mature within one to three 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

In September 2011, the FASB issued ASU 2011-08, Intangibles—Goodwill and Other (Topic 350).
ASU 2011-08 provides entities the option to first assess qualitatively whether it is necessary to perform the two-
step goodwill impairment test. If an entity concludes, as a result of its qualitative assessment, that it is more likely
than not that the fair value of a reporting unit is less than its carrying amount, the quantitative two-step goodwill
impairment test is required. An entity may elect to bypass the qualitative assessment and proceed to perform the
first step of the two-step goodwill impairment test. ASU 2011-08 is effective for annual and interim goodwill
impairment tests performed for fiscal years beginning after December 15, 2011. The Company will adopt ASU
2011-08 in the first quarter of fiscal year 2013. The adoption of ASU 2011-08 is not expected to have a material
impact on the consolidated financial statements and footnote disclosures.

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Weighted average shares—diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income per share—basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,

2012
$ 71,458
174,648
943
175,591
0.41

2011
$128,460
176,928
1,862
178,790
0.73

2010
$ 64,957
177,279
2,061
179,340
0.37

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Net income per share—diluted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0.41

0.72

0.36

229

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 3 — Net Income per Share (Continued)

Employee stock options, restricted stock units 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.

During fiscal years 2012, 2011 and 2010, 18,431,855, 13,705,406 and 15,186,997 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.

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 and RSUs vested . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise dilution(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2012
174,648
3,012
—
(3,820)
(808)
-0.5%
715
0.4%

Year ended March 31
2011
176,928
2,431
—
(1,411)
1,020

2010
177,279
3,902
1,078
(1,440)
3,540

0.6%

2,889

1.6%

2.0%

1,980

1.1%

(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 — Employee Benefit Plans

Employee Share Purchase Plans and Stock Incentive Plans

As of March 31, 2012, the Company offers the 2006 ESPP (2006 Employee Share Purchase Plan (Non-U.S.)),
the 1996 ESPP (1996 Employee Share Purchase Plan (U.S.)) and the 2006 Plan (2006 Stock Incentive Plan). On
April 13, 2012, the Company filed Registration Statements to register 5.0 million additional shares to be issued
pursuant to the 2006 Employee Share Purchase Plan (Non-U.S.), and 1.8 million shares under the 2012 Stock
Inducement Equity Plan approved by the Board of Directors in April 2012. Shares issued to employees as a result
of purchases or exercises under these plans are generally issued from shares held in treasury.

230

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

The following table summarizes the share-based compensation expense and related tax benefit recognized for

fiscal years 2012, 2011 and 2010 (in thousands):

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense included in gross profit . . . . . . . . . . . . . . .
Operating expenses:

Marketing and selling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Research and development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense included in operating expenses . . . . . . . . .
Total share-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share-based compensation expense, net of income tax . . . . . . . . . . . . . . . . . . . .

Year Ended March 31,
2011
$ 4,223
4,223

2012
$ 3,620
3,620

2010
$ 3,073
3,073

12,716
7,187
8,006
27,909
31,529
6,294
$25,235

12,030
7,829
10,764
30,623
34,846
8,279
$26,567

9,201
4,902
8,631
22,734
25,807
5,768
$20,039

As of March 31, 2012, 2011 and 2010, $0.7 million, $1.0 million and $0.9 million of share-based compensation
cost was capitalized to inventory. The following table summarizes total share-based compensation cost not yet
recognized and the number of months over which such cost is expected to be recognized, on a weighted-average
basis by type of grant (in thousands, except number of months):

Non-vested stock options . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time-based RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Performance-based RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total compensation cost not yet recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31, 2012

Compensation
Cost Not Yet
Recognized
$ 8,504
33,496
8,418
$50,418

Months of
Future
Recognition
14
23
22

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. An aggregate of
21,000,000 shares was reserved for issuance under the 1996 and 2006 ESPP plans. As of March 31, 2012, a total of
4,526,282 shares were available for issuance under these plans.

The 2006 Plan provides for the grant to eligible employees and non-employee directors of stock options,
stock appreciation rights, restricted stock and RSUs (restricted stock units). Awards under the 2006 Plan may be
conditioned on continued employment, the passage of time or the satisfaction of performance vesting criteria. The
2006 Stock Plan has an expiration date of June 16, 2016. Stock options granted under the 2006 Plan generally vest
over three years for non-executive Directors and over four years for employees. All stock options under this plan
have terms not exceeding ten years and are issued at exercise prices not less than the fair market value on the date of
grant. Time-based RSUs granted to employees under the 2006 Plan generally vest in four equal annual installments
on the grant date anniversary. Time-based RSUs granted to non-executive board members under the 2006 Plan
vest in one annual installment on the grant date anniversary. Performance-based RSUs granted under the 2006
Plan vest at the end of the performance period upon meeting certain share price performance criteria measured
against market conditions. The performance period is three years for performance-based RSU grants made in fiscal

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LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

years 2012 and 2011 and two years for performance-based RSU grants made in fiscal year 2010. An aggregate of
17,500,000 shares was reserved for issuance under the 2006 Plan. As of March 31, 2012, a total of 4,331,255 shares
were available for issuance under this plan.

A summary of the Company’s stock option activity for fiscal years 2012, 2011 and 2010 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. . . . . . . . . . . . . . . . . . .
Exercisable, end of year . . . . . . . . . . . . . . . . . . .

2012

Year ended March 31,
2011

2010

Number
16,312
—
—
(316)
(2,962)
13,034
10,867

Exercise
Price
$19
$—
$—
$ 8
$22
$19
$20

Number
20,037
294
—
(2,747)
(1,272)
16,312
11,205

Exercise
Price
$18
$16
$—
$10
$21
$19
$20

Number
18,897
3,520
1,024
(1,980)
(1,424)
20,037
11,287

Exercise
Price
$18
$14
$ 5
$ 8
$17
$18
$17

The total pretax intrinsic value of stock options exercised during the fiscal years ended March 31, 2012,
2011 and 2010 was $0.8 million, $23.9 million and $15.0 million and the tax benefit realized for the tax deduction
from options exercised during those periods was $0.2 million, $7.4 million and $3.9 million. The total fair value of
options vested as of March 31, 2012, 2011 and 2010 was $76.0 million, $74.3 million and $66.4 million.

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. There were no stock options granted during the fiscal year ended March 31, 2012.

Year ended March 31,
2012

2010

2012

2011
Purchase Plans
0%

Dividend yield . . . . . . . . . . . . . . . .
Expected life . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . .

6 months

52%
0.13%

35%
0.16%

59%
0.19%

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

2011

2010

Stock Option Plans
0%

4 years

3.3 years

48%
1.57%

47%
1.64%

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 the Company’s daily
closing prices over the term of past options or purchase offerings. The Company considers the historical price
volatility of its shares 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.

232

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

The Company estimates option 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 presents the weighted average grant-date fair values of options granted and the expected

forfeiture rates:

Year ended March 31,

2012

2011
Purchase Plans

2010

2012

2011

2010

Stock Option Plans

Weighted average grant-date fair value of

options granted . . . . . . . . . . . . . . . . . . . . . . . . .
Expected forfeitures . . . . . . . . . . . . . . . . . . . . . . . .

$2.96

$4.26

$4.23

n/a
n/a

$6.11

$6.66

As of March 31, 2012, the exercise price of outstanding options ranged from $1 to $45 per option, and the
weighted average contractual life was 4.9 years. The weighted average contractual life of exercisable options was
4.4 years.

The total number of fully vested in-the-money options exercisable as of March 31, 2012 was 803,456. As of
March 31, 2012, 2,165,820 options were unvested, of which 1,970,896 are expected to vest, based on an estimated
forfeiture rate of 9%.

A summary of the Company’s time- and performance-based RSU activity for fiscal years 2012, 2011 and

2010 is as follows (in thousands, except per share values; grant-date fair values are weighted averages):

Outstanding, beginning of year. . . . . . . . . . . . . . . . .
Time-based RSUs granted . . . . . . . . . . . . . . . . . .
Performance-based RSUs granted . . . . . . . . . . . .
Assumed in LifeSize acquisition . . . . . . . . . . . . .
Vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cancelled or expired. . . . . . . . . . . . . . . . . . . . . . .
Outstanding, end of year . . . . . . . . . . . . . . . . . . . . . .

2012

Year ended March 31,
2011

2010

Grant
Date Fair
Value
$ 21
$ 9
$ 11
$ —
$ 19
$ 19
$ 13

Number
514
1,599
538
—
(142)
(139)
2,370

Grant
Date Fair
Value
$ 18
$ 20
$ 28
$ —
$ 15
$ 24
$ 21

Number
94
267
115
54
—
(16)
514

Grant
Date Fair
Value
$ 28
$ 15
$ 18
$ 5
$ —
$ 23
$ 18

Number
2,370
2,496
516
—
(399)
(858)
4,125

The total pretax intrinsic value (fair value) of RSUs vested during the fiscal years ended March 31, 2012 and
2011 was $3.8 million and $1.7 million. The tax benefit realized for the tax deduction from RSUs vested during
fiscal years ended March 31, 2012 and 2011 was $0.9 million and $0.2 million. There were no RSUs vested during
the fiscal year ended March 31, 2010.

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233

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

The Company determines the fair value of the time-based RSUs based on the share market price on the date
of grant. The fair value of the performance-based RSUs is estimated using the Monte-Carlo simulation model
applying the following assumptions:

FY 2012
Grants

FY 2011
Grants

FY 2010
Grants

Dividend yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected volatility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-free interest rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3 years

2 years

49%
0.99%

51%
0.81%

58%
1.11%

The dividend yield assumption is based on the Company’s history and future expectations of dividend payouts.
The expected life of the performance-based 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 equal to the years of expected life. The risk free interest rate is derived
from the yield on US Treasury Bonds for a term of the same number of years as the expected life.

As of March 31, 2012, the grant date fair values of outstanding RSUs ranged from $6 to $28 per RSU, and the

weighted average contractual life was 9.2 years.

In April 2012, Logitech’s Board of Directors approved the 2012 Stock Inducement Equity Plan. Under this
plan, Logitech’s newly-hired President, Bracken P. Darrell, was granted the following equity incentive awards (in
thousands, except per share exercise price, vesting period and term):

Type of Grant

Number
of Shares

Exercise
Price

Grant Date
Fair Value

Vesting
Period(1) Term

Stock Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Time-based RSUs . . . . . . . . . . . . . . . . . . . . . . . . . . .
Premium-priced stock options:(2)

First Tranche . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second Tranche . . . . . . . . . . . . . . . . . . . . . . . . . .
Third Tranche. . . . . . . . . . . . . . . . . . . . . . . . . . . .

500
100

400
400
400

$ 8
$ —

$ 14
$ 16
$ 20

$1,820
803

1,100
1,024
896

4.0
4.0

2.5
3.0
3.9

10.0
10.0

10.0
10.0
10.0

(1) Vesting period for premium-priced stock options represents estimated requisite service period.

(2) Each grant of premium-priced stock options will vest in full if and only when Logitech’s average closing share

price, over a consecutive ninety-day trading period, meets or exceeds the exercise price of the grant.

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 2012, 2011
and 2010, were $11.6 million, $8.9 million and $8.2 million.

234

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

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 shareholders’ equity. Each plan’s assets
and benefit obligations are measured approximately as of March 31.

The net periodic benefit cost of the defined benefit pension plans and the non-retirement post-employment

benefit obligations for fiscal years 2012, 2011 and 2010 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 . . . . . . . . . . . . . . . . . . . .
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2011

2010

2012

$ 6,295
2,205
(1,968)
5
156
—
205

$ 4,396
1,745
(1,818)
4
161
2
482

$ 3,983
1,430
(1,200)
4
138
—
1,239

Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 6,898

$ 4,972

$ 5,594

The changes in projected benefit obligations for fiscal years 2012 and 2011 were as follows (in thousands):

Projected benefit obligation, beginning of year . . . . . . . . . . . . . . . . . . . . . . .
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participant contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Initial adoption of Japanese plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative expense paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes. . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012

2011

$76,145
6,295
2,205
2,878
9,989
(3,812)
—
—
86
(197)
546

$57,531
4,396
1,745
2,321
3,911
(2,220)
19
(218)
—
(131)
8,791

Projected benefit obligation, end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$94,135

$76,145

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235

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

The accumulated benefit obligation for all defined benefit pension plans as of March 31, 2012 and 2011 was

$72.8 million and $60.2 million.

The following table presents the changes in the fair value of defined benefit pension plan assets for fiscal

years 2012 and 2011 (in thousands):

Fair value of plan assets, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plan participant contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administrative expenses paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012
$45,937
219
5,071
2,878
(3,812)
—
(197)
573
$50,669

2011
$35,427
34
4,612
2,321
(2,220)
(85)
(131)
5,979
$45,937

The Company’s investment objectives are to ensure that the assets of its defined benefit plans are invested to
provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a
reasonable risk level, and to ensure that pension funds are available to meet the plans’ benefit obligations as they
become due. The Company believes that a well-diversified investment portfolio will result in the highest attainable
investment return with an acceptable level of overall risk. Investment strategies and allocation decisions are also
governed by applicable governmental regulatory agencies. The Company’s investment strategy with respect to its
largest defined benefit plan, which is available only to Swiss employees, is to invest in the following allocation
ranges: 28 - 43% for equities, 33-63% for Swiss bonds, 5-15% for foreign bonds, 5-15% for hedge and investment
funds, and 0-20% for cash and cash equivalents. The Company’s other defined benefit plans, which comprise
approximately 2% of total defined benefit plan assets as of March 31, 2012, have similar investment and allocation
strategies. The following tables present the fair value of the defined benefit pension plan assets by major categories
and by levels within the fair value hierarchy as of March 31, 2012 and 2011 (in thousands):

March 31, 2012

Total

Level 1
$ 2,675
17,513
22,892
3,561

Level 2
Level 3
$ — $ — $ 2,675
17,513
—
22,892
—
3,561
—
3,167
—
590
—
271
—
$ — $50,669

—
—
—
— 3,167
—
590
271
—
$ 3,438
$47,231

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Debt securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Swiss real estate fund . . . . . . . . . . . . . . . . . . . . . . . . . .
Hedge fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commodity fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total plan assets at fair value . . . . . . . . . . . . . . . . . . . .

236

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

March 31, 2011

Level 1
$ 3,859
15,546
20,142
3,026

622
204
$43,399

Total

Level 2
Level 3
$ — $ — $ 3,859
15,546
—
20,142
—
3,026
—
1,942
—
897
—
525
—
$ — $45,937

—
—
—
— 1,942
275
321
$2,538

Refer to Note 8 for a discussion of how the defined benefit pension plan assets are classified into each of the

fair value hierarchy levels.

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 $43.5 million and $30.2 million as of March 31, 2012 and 2011. Amounts recognized on the balance sheet for the
plans were as follows (in thousands):

Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

752
(4,129)
(39,337)
$(42,714)

759
(3,563)
(26,645)
$(29,449)

March 31,

2012

2011

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 loss . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax benefit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss, net of tax . . . . . . . . . . . . . . . . .

March 31,

2012

2011

$ (1,918) $ (2,084)
(16,714)
(34)
(18,832)
759
$(29,362) $(18,073)

(28,172)
(24)
(30,114)
752

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237

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

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 loss recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loss occurred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax benefit (expense). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange rate changes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive loss, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012
$(18,073)
—
(15)
275
—
(11,808)
170
89
$(29,362)

2011
$(10,813)
5
146
396
23
(5,609)
(241)
(1,980)
$(18,073)

The following table presents the amounts included in accumulated other comprehensive loss as of
March 31, 2012, which are expected to be recognized as a component of net periodic benefit cost in fiscal year 2013
(in thousands):

Amortization of net transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net prior service costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31, 2012

5
152
1,719
$1,876

The Company reassesses its benefit plan assumptions on a regular basis. The actuarial assumptions for the

pension plans for fiscal years 2012 and 2011 were as follows:

2012

2011

Benefit Obligation

Periodic Cost

Benefit Obligation

Periodic Cost

Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . 1.75% to 3.25% 2.00% to 3.75% 2.00% to 3.75% 2.00% to 3.75%
Estimated rate of compensation increase . . . . 3.00% to 8.00% 2.50% to 5.00% 3.00% to 5.00% 2.50% to 5.00%
Expected average rate of return on

plan assets . . . . . . . . . . . . . . . . . . . . . . . . . 1.00% to 3.75% 1.00% to 4.75% 1.00% to 4.00% 1.00% 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.

238

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4 — Employee Benefit Plans (Continued)

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,

2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 4,026
4,145
4,166
4,420
4,176
20,714
$41,647

The Company expects to contribute approximately $4.5 million to its defined benefit pension plans during

fiscal year 2013.

Deferred Compensation Plan

One of the Company’s subsidiaries offers a deferred compensation plan which permits eligible employees
to make 100%-vested salary and incentive compensation deferrals within established limits. The Company does
not make contributions to the plan. Prior to December 2010, the participants’ deferrals were invested in Company-
owned life insurance contracts held in a Rabbi Trust. In December 2010, the Company surrendered the life insurance
contracts for cash, and invested the proceeds of $11.3 million, in addition to $0.8 million in cash held by the Rabbi
Trust, investment earnings and employee contributions, in a Company-selected portfolio of marketable securities,
which are also held by the Rabbi Trust.

The fair value of the deferred compensation plan’s assets is included in other assets in the statements of
financial position. The marketable securities are classified as trading investments and are recorded at a fair value
of $14.3 million and $13.1 million as of March 31, 2012 and 2011, based on quoted market prices. Earnings, gains
and losses on trading investments are included in other income (expense), net.

The unsecured obligation to pay the compensation deferred was approximately $14.4 million and $13.1 million

at March 31, 2012 and 2011, and was included in other liabilities.

Note 5 — Interest and Other Income

Interest and other income (expense), net was comprised of the following (in thousands):

Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on sale of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange gains, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment income related to deferred compensation plan . . . . . . . . . . . . . . . . . . .
Write-down of investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

239

Year ended March 31,
2011
$2,343
(27)
$2,316
$ 838
—
480
1,409
(43)
792
$3,476

2012
$ 3,121
(447)
$ 2,674
$ 8,967
6,109
1,575
227
—
(256)
$16,622

2010
$2,406
(286)
$2,120
$ —
—
1,720
1,221
(643)
841
$3,139

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 6 — 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, 2012, 2011 and 2010 is summarized as

follows (in thousands):

Income before income taxes:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ (66,512)
157,789
$ 91,277

$ 50,219
98,229
$148,448

$13,352
70,271
$83,623

The provision for income taxes is summarized as follows (in thousands):

Year ended March 31,
2011

2012

2010

Year ended March 31,
2011

2010

2012

Current:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

258
25,187

$ (1,073)
26,218

$ 1,463
22,279

Deferred:

Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Swiss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(254)
(5,372)
$19,819

—
(5,157)
$19,988

—
(5,076)
$18,666

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2011
$12,618
5,062
(2,315)
(315)
1,965
—
2,309
664
$19,988

2010
$ 7,108
8,997
(1,628)
(428)
2,189
1,257
—
1,171
$18,666

2012
$ 7,759
11,968
(1,666)
—
2,696
—
(104)
(834)
$19,819

The Company negotiated a tax holiday on certain earnings in China which was effective from January 2006
through December 2010. The tax holiday was a tax exemption aimed to attract foreign technological investment in
China. The tax holiday decreased income tax expense by approximately $3.6 million, and $2.4 million for fiscal
years 2011 and 2010.

240

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 6 — Income Taxes (Continued)

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities:

March 31,

2012

2011

$ 24,332
8,418
38,954
6,871
25,516
(2,205)
101,886

$ 33,029
5,645
35,172
12,310
21,997
(2,309)
105,844

Acquired intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred tax assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(17,454)
(17,454)
$ 84,432

(24,013)
(24,013)
$ 81,831

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.

The Company had $2.2 million of valuation allowance as of March 31, 2012, decreased slightly from $2.3 million
established in fiscal year 2011. In fiscal year 2011, the Company sold its equity interest in certain 3Dconnexion
subsidiaries, and its intellectual property rights related to the manufacture and sale of certain 3Dconnexion
products, to a group of third party individuals and certain 3Dconnexion employees. A full valuation allowance
of $2.2 million was provided for $5.7 million of capital loss carryforward from the sale of 3Dconnexion Inc. in
the U.S. as the Company determined that it is more likely than not that the Company would not generate adequate
capital gains in the next five years before the capital loss expires under the U.S. tax law. The remaining valuation
allowance of $0.1 million represents a full valuation allowance for certain foreign tax credit carryforwards in the
U.S. In fiscal year 2012, a nominal amount of capital gain generated from investment securities and adjustments in
foreign tax credits in the U.S. resulted in a release of the valuation allowance.

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241

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 6 — Income Taxes (Continued)

Deferred tax assets relating to tax benefits of employee stock option grants and RSUs have been reduced to
reflect exercises in fiscal years 2012 and 2011. Exercises in fiscal year 2011 resulted in tax deductions in excess of
previously recorded share-based compensation expense (‘‘windfalls’’). The additional tax benefit associated with
the windfall is not recorded until the deduction reduces cash taxes payable. On the contrary, exercises in fiscal year
2012 resulted in a ‘‘shortfall’’ in which tax deductions were less than previously recorded share-based compensation
expense. During fiscal years 2012 and 2011, the Company recorded a shortfall to equity of $0.9 million and a credit
to equity of $4.8 million, respectively.

As of March 31, 2012, the Company had foreign net operating loss and tax credit carryforwards for income tax
purposes of $253.5 million and $26.8 million. Approximately $93.6 million of the net operating loss carryforwards
and $19.1 million of the tax credit carryforwards, if realized, will be credited to equity since they have not met the
applicable realization criteria. A full valuation allowance has been provided for foreign tax credits of $0.1 million.
Unused net operating loss carryforwards will expire at various dates in fiscal years 2015 to 2032, and the tax credit
carryforwards will begin to expire in fiscal year 2013.

As of March 31, 2012, the Company had capital loss carryforwards of approximately $5.5 million for which a

full valuation allowance has been provided. The loss will begin to expire in fiscal year 2016.

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. As
of March 31, 2012, the cumulative amount of unremitted earnings of non-Swiss subsidiaries was approximately
$156.3 million.

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.

242

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 6 — Income Taxes (Continued)

The aggregate changes in gross unrecognized tax benefits in fiscal years 2012, 2011 and 2010 were as follow

(in thousands):

Balance as of March 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 prior periods . . . . . . . . . . . . . . . . . . . .
Increases in balances related to tax positions taken during the current period . . . . . . . . . . . . . . . .
Balance as of March 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Settlements with tax authorities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increases in balances related to tax positions taken during the current period . . . . . . . . . . . . . . . .
Balance as of March 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lapse of statute of limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Increases in balances related to tax positions taken during the current period . . . . . . . . . . . . . . . .
Balance as of March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 97,627
(3,667)
(229)
2,690
17,207
$113,628
(4,760)
(6,290)
27,550
$130,128
(6,760)
12,810
$136,178

The Company recognizes interest and penalties related to unrecognized tax positions in income tax expense.
The Company recognized $1.2 million, $1.3 million and $1.9 million in interest and penalties in income tax expense
during fiscal years 2012, 2011 and 2010. As of March 31, 2012, 2011 and 2010, the Company had approximately
$7.5 million, $8.0 million and $12.5 million of accrued interest and penalties related to uncertain tax positions.

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LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 7 — Balance Sheet Components

The following provides the components of certain balance sheet asset amounts as of March 31, 2012 and 2011

(in thousands):

Accounts receivable:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowances for cooperative marketing arrangements. . . . . . . . . . . . . . . . . . . . . . .
Allowances for customer incentive programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowances for 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012

2011

$ 376,917
(2,472)
(24,599)
(24,109)
(42,262)
(60,371)
$ 223,104

$ 38,613
73
258,386
$ 297,072

$ 19,360
25,587
21,043
$ 65,990

$ 48,555
148,059
40,353
75,758
312,725
(249,657)
63,068
28,968
2,848
$ 94,884

$ 61,358
14,301
7,374
$ 83,033

$ 435,331
(4,086)
(29,666)
(28,669)
(52,358)
(62,258)
$ 258,294

$ 37,126
3
243,685
$ 280,814

$ 17,810
27,018
14,519
$ 59,347

$ 52,681
137,248
60,344
85,338
335,611
(260,283)
75,328
5,974
2,858
$ 84,160

$ 55,897
13,113
10,200
$ 79,210

Inventories are stated at the lower of cost or market. Inventory as of March 31, 2012 includes an adjustment
of $8.5 million to reflect the lower of cost or market on the Company’s inventory of Logitech Revue and related
peripherals on hand. In the three months ended June 30, 2011, a valuation adjustment of $34.1 million was charged
to cost of goods sold, as the result of management’s decision in early July 2011 to reduce the retail price of Logitech
Revue from $249 to $99.

244

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 7 — Balance Sheet Components (Continued)

The increase in construction-in-progress primarily relates to new facilities for the Company’s Americas

operations in Northern California.

The following provides the components of certain balance sheet liability amounts as of March 31, 2012 and

2011 (in thousands):

Accrued liabilities:

Accrued personnel expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued freight and duty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
VAT payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Warranty accrual . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-retirement post-employment benefit obligations. . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes payable—current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other accrued liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Other liabilities:

Income taxes payable—non-current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Obligation for deferred compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Defined benefit pension plan liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012

2011

$ 42,809
33,209
19,358
11,376
7,140
6,243
5,184
4,129
6,047
51,185
$186,680

$137,319
14,393
39,337
16,042
11,371
$218,462

$ 50,552
32,599
15,859
12,497
5,614
5,144
4,970
3,563
2,569
39,193
$172,560

$131,968
13,076
26,645
1,181
12,965
$185,835

The increase in deferred rent primarily relates to new facilities for the Company’s Americas operations in

Northern California.

Note 8 — Financial Instruments

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.

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245

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8 — Financial Instruments (Continued)

The following table presents the Company’s financial assets and liabilities, except for assets related to the
Company’s defined benefit pension plan assets which are described and disclosed in Note 4, that were accounted
for at fair value, classified by the level within the fair value hierarchy (in thousands):

March 31, 2012

March 31, 2011

Cash and cash equivalents . . . . . . . . . . . . . . . . .
Trading investments . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities . . . . . . . . . . . . . . . .
Foreign exchange derivative assets . . . . . . . . . .
Total assets at fair value . . . . . . . . . . . . . . . . . . .
Foreign exchange derivative liabilities . . . . . . . .
Total liabilities at fair value . . . . . . . . . . . . . . . .

Level 1
$ 478,370
14,301
—
—
$ 492,671
$
$

Level 2
$ —
—
—
658
$658
— $245
— $245

Level 1

Level 3
$ — $477,931
13,113
—
—
$491,044

—
429
—
$429
$ — $
$ — $

Level 2
Level 3
$ — $ —
—
—
— 1,695
—
566
$1,695
$ 566
$ —
— $1,881
$ —
— $1,881

The Company reclassified its foreign exchange derivative assets and liabilities from Level 1 of the fair value
hierarchy to Level 2 beginning the quarter ended December 31, 2011, to reflect the inputs used to measure fair
value as observable inputs other than quoted market prices.

The following table presents the changes in the Company’s Level 3 financial assets during the fiscal years

ended March 31, 2012, 2011 and 2010 (in thousands):

Available-for-sale securities, beginning balance. . . . . . . . . . . . . . . . . .
Proceeds from sales of securities. . . . . . . . . . . . . . . . . . . . . . . . . . .
Realized gain on sales of securities . . . . . . . . . . . . . . . . . . . . . . . . .
Realized loss on sales of securities . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrealized loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Available-for-sale securities, ending balance . . . . . . . . . . . . . . . . . . . .

Cash and Cash Equivalents

2012
$ 1,695
(6,550)
6,050
(9)
—
(757)
429

March 31,
2011
$ 994
—
—
—
744
(43)
$1,695

2010
$1,637
—
—
—
—
(643)
$ 994

Cash and cash equivalents consist of bank demand deposits and time deposits. The time deposits have original

terms of less than 62 days. Cash and cash equivalents are carried at cost, which approximates fair value.

Investment Securities

The Company’s investment securities portfolio consists of marketable securities related to a deferred

compensation plan and auction rate securities collateralized by residential and commercial mortgages.

The marketable securities related to the deferred compensation plan are classified as non-current trading
investments and do not have maturity dates. Since participants in the deferred compensation plan may select the
mutual funds in which their compensation deferrals are invested, and may actively trade funds within the confines
of the Rabbi Trust which holds the marketable securities, the Company has designated these marketable securities
as trading investments. Management has classified the investments as non-current assets because final sale of the
investments or realization of proceeds by plan participants is not expected within the Company’s normal operating

246

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8 — Financial Instruments (Continued)

cycle of one year. The marketable securities are recorded at a fair value of $14.3 million and $13.1 million as of
March 31, 2012 and 2011, based on quoted market prices. Quoted market prices are observable inputs that are
classified as Level 1 within the fair value hierarchy. Earnings, gains and losses on trading investments are included
in other income (expense), net. Unrealized trading gains of $0.1 million are included in other income (expense), net
for the fiscal year ended March 31, 2012 and relate to trading securities held at March 31, 2012.

The auction rate securities are classified as non-current available-for-sale securities. These securities are
collateralized by residential and commercial mortgages, and are second-priority senior secured floating rate notes
with maturity dates in excess of 10 years. Interest rates on these notes were intended to reset through an auction
every 28 days, however auctions for these securities have failed since August 2007. During the fiscal year ended
March 31, 2012, the Company sold two of the auction rate securities with a total carrying value of $0.5 million
and a total par value of $10.0 million for $6.6 million. The gain of $6.1 million was recognized in other income
(expense), net. During the three months ended March 31, 2012, two securities with a total carrying value of $0.4
million and a total par value of $22.2 million were liquidated. The Company did not receive any proceeds from the
liquidation. The loss of $0.4 million was recorded in accumulated other comprehensive loss, offsetting a previously
recorded temporary increase in fair value. The par value and original cost of the auction rate securities held as of
March 31, 2012 and 2011 were $15.2 million and $47.5 million. These securities are recorded at an estimated fair
value of $0.4 million and $1.7 million at March 31, 2012 and 2011. The estimated fair value was determined by
estimating future cash flows through time according to each security’s terms, including periodic consideration
of overcollateralization and interest coverage tests, and incorporating estimates of default rate, loss severity,
prepayment, and delinquency assumptions when available, for the underlying assets in the securities based on
representative indices and various research reports. The estimated coupon and principal payments were discounted
at the rate of return required by investors, based on the characteristics of each security as calculated from the
indices. Such valuation methods fall within Level 3 of the fair value hierarchy.

Derivative Financial Instruments

The following table presents the fair values of the Company’s derivative instruments and their locations on

the Balance Sheet as of March 31, 2012 and 2011 (in thousands):

Asset Derivatives

Liability Derivatives

Fair Value
March 31,

Location

2012

2011

Location

2012

2011

Derivatives designated as hedging

instruments:
Cash Flow Hedges . . . . . . . . . . . . . . . . . .

Other assets

Derivatives not designated as hedging

instruments:
Foreign Exchange Forward Contracts . . .
Foreign Exchange Swap Contracts . . . . .

Other assets
Other assets

$250
250

341
67
408
$658

$ — Other liabilities

—

$ — $1,763
— 1,763

486 Other liabilities
80 Other liabilities

566
$566

148
97
245
$245

—
118
118
$1,881

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LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8 — Financial Instruments (Continued)

The following table presents the amounts of gains and losses on the Company’s derivative instruments
for the fiscal years ended March 31, 2012 and 2011 and their locations on its Consolidated Financial Statements
(in thousands):

Net amount of
gain/(loss)
deferred as a
component of
accumulated
other
comprehensive
loss

2012

2011

Location of
gain/(Loss)
reclassified from
accumulated other
comprehensive
loss into income

Amount of
gain/(loss)
reclassified
from
accumulated
other
comprehensive
loss into
income

2012

2011

Location of
gain/(loss)
recognized in
income
immediately

Amount of gain/
(loss) recognized
in income
immediately

2012

2011

Derivatives designated as
hedging instruments:

Cash Flow Hedges . . . . . . $2,916 $(4,366)
(4,366)

2,916

Cost of goods
sold

Other income/

$(421) $6,078
(421) 6,078

expense $ (198) $

(198)

(5)
(5)

Derivatives not designated as
hedging instruments:
Foreign Exchange

Other income/

Forward Contracts . . .

—

expense

(350)

855

Foreign Exchange Swap

Contracts. . . . . . . . . . .

—
—

—
—
$2,916 $(4,366)

Other income/

expense

—
—

—
—
$(421) $6,078

(1,884)
(2,234)

(2,865)
(2,010)
$ (2,432) $ (2,015)

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 mature within four 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 gains and losses were immaterial during the fiscal years
ended March 31, 2012, 2011 and 2010. Cash flows from such hedges are classified as operating activities in the
consolidated statements of cash flows. The notional amounts of foreign exchange forward contracts outstanding
related to forecasted inventory purchases were $58.1 million (A43.5 million) and $54.9 million (A38.7 million)
at March 31, 2012 and 2011. The notional amount represents the future cash flows under contracts to purchase
foreign currencies.

248

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8 — Financial Instruments (Continued)

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 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, 2012 and 2011 relating
to foreign currency receivables or payables were $18.7 million and $12.9 million. Open forward contracts as of
March 31, 2012 consisted of contracts in euros to sell British pounds and contracts in Australian dollars to purchase
U.S. dollars at future dates at pre-determined exchange rates. Open forward contracts as of March 31, 2011 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, 2012 and 2011 were $22.4 million and
$17.1 million. Swap contracts outstanding at March 31, 2012 consisted of contracts in Taiwanese dollars, Mexican
pesos and Japanese Yen. Swap contracts outstanding at March 31, 2011 consisted of contracts in Canadian dollars,
Japanese yen, and Mexican pesos.

The fair value of all our foreign exchange forward contracts and foreign exchange swap contracts is determined
based on observable market transactions of spot currency rates and forward rates. Cash flows from these contracts
are classified as operating activities in the consolidated statements of cash flows. Beginning the quarter ended
December 31, 2011, the Company reclassified its foreign exchange derivative assets and liabilities from Level 1 of
the fair value hierarchy to Level 2, to reflect the inputs used to measure fair value as observable inputs other than
quoted market prices.

Note 9 — Goodwill and Other Intangible Assets

The following table summarizes the activity in the Company’s goodwill account during fiscal years ended

March 31, 2012 and 2011 (in thousands):

Goodwill, beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fluctuation in foreign currency rates . . . . . . . . . . . . . . . . . . . . . . .
Goodwill, ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012
$547,184
14,415
—
(1,076)
$560,523

2011
$553,462
332
(6,610)
—
$547,184

Our acquisition of Mirial S.r.l. on July 18, 2011 added $14.4 million to goodwill. Mirial’s business has been
fully integrated into the Company’s video conferencing reporting unit, and discrete financial information for
Mirial is not maintained. Accordingly, the acquired goodwill related to Mirial is evaluated for impairment at the
video conferencing reporting unit level. Additions to goodwill during fiscal year 2011 related to our acquisition
of Paradial. The sale of business relates to goodwill associated with the 3Dconnexion entities which were sold on
March 31, 2011.

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LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 9 — Goodwill and Other Intangible Assets (Continued)

Management performed a goodwill impairment analysis of each of its reporting units as of December 31, 2011.
The carrying value of goodwill attributable to the peripherals and video conferencing reporting units was $220.9
million and $339.7 million as of March 31, 2012. As of December 31, 2011, management determined the fair value
of our peripherals reporting unit exceeded the carrying value of the reporting unit by more than 30% of the carrying
value, and the fair value of our video conferencing reporting unit exceeded the carrying value of the reporting unit
by more than 80% of the carrying value. Management continues to evaluate and monitor all key factors impacting
the carrying value of the Company’s recorded goodwill, as well as other long-lived assets. Further adverse changes
in the Company’s expected operating results, market capitalization, business climate, or other negative events could
result in a material non-cash impairment charge in the future.

The Company’s acquired other intangible assets subject to amortization were as follows (in thousands):

Trademark/trade name . . . . . . .
Technology . . . . . . . . . . . . . . . .
Customer contracts . . . . . . . . . .

March 31, 2012

March 31, 2011

Gross
Carrying
Amount
$ 32,104
91,954
39,926
$ 163,984

Accumulated
Amortization
$ (26,095)
(62,548)
(21,823)
$(110,466)

Net
Carrying
Amount
$ 6,009
29,406
18,103
$53,518

Gross
Carrying
Amount
$ 31,907
88,068
38,537
$158,512

Accumulated
Amortization
$(23,290)
(45,686)
(14,920)
$(83,896)

Net
Carrying
Amount
$ 8,617
42,382
23,617
$74,616

During fiscal year 2012, changes in the gross carrying value of other intangible assets related primarily to our
acquisition of Mirial. During fiscal year 2011, changes in the gross carrying value of other intangible assets related
primarily to our acquisition of Paradial.

For fiscal years 2012, 2011 and 2010, amortization expense for other intangible assets was $26.5
million, $27.8 million and $14.5 million. The Company expects that annual amortization expense for the
fiscal years ending 2013, 2014, 2015 and 2016 will be $24.4 million, $18.2 million, and $9.1 million, and $1.8
million thereafter.

Note 10 — Financing Arrangements

250

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 10 — Financing Arrangements (Continued)

fee of 40% of the applicable margin on the available commitment. In connection with entering into the credit
facility, the Company incurred non-recurring fees totaling $1.5 million, which are amortized on a straight-line basis
over the term of the credit facility.

The Company had several uncommitted, unsecured bank lines of credit aggregating $77.3 million at
March 31, 2012. There are no financial covenants under these lines of credit with which the Company must comply.
At March 31, 2012, the Company had no outstanding borrowings under these lines of credit. The Company also
had credit lines related to corporate credit cards totaling $30.8 million as of March 31, 2012. The outstanding
borrowings under these credit lines are recorded in other current liabilities. There are no financial covenants under
these credit lines.

Note 11 — Commitments and Contingencies

Operating Leases

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, 2012 are as follows (in thousands):

Year ending March 31,

2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 20,834
15,707
13,978
12,465
10,874
37,141
$110,999

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251

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11 — Commitments and Contingencies (Continued)

Rent expense was $23.5 million, $19.8 million and $16.3 million for the years ended March 31, 2012, 2011
and 2010. The increase in future minimum annual rentals as of March 31, 2012 compared with $72.6 million as of
March 31, 2011 was due to approximately $35 million related to new facilities for our Americas operations in Northern
California, and approximately $13 million for an expansion of our LifeSize headquarters in Austin, Texas.

In connection with its leased facilities, the Company has recognized a liability for asset retirement obligations
representing the present value of estimated remediation costs to be incurred at lease expiration. The following table
describes changes to the Company’s asset retirement obligation liability for the years ended March 31, 2012 and
2011 (in thousands):

Asset retirement obligation, beginning of year. . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities incurred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities settled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accretion expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency translation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asset retirement obligation, end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Product Warranties

March 31,

2012
$1,636
66
(85)
92
218
(9)
$1,918

2011
$1,374
275
(120)
71
—
36
$1,636

Certain of the Company’s products are covered by warranty to be free from defects in material and workmanship
for periods ranging from one year to five years. At the time of sale, the Company accrues a warranty liability for
estimated costs to provide products, parts or services to repair or replace products in satisfaction of the warranty
obligation. The Company’s estimate of costs to fulfill its warranty obligations is based on historical experience
and expectations of future conditions. When the Company experiences changes in warranty claim activity or costs
associated with fulfilling those claims, the warranty liability is adjusted accordingly. Changes in the Company’s
warranty liability for the years ended March 31, 2012 and 2011 were as follows (in thousands):

Warranty liability, beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for warranties issued during the year . . . . . . . . . . . . . . . . . . . . .
Settlements made during the year, net of adjustments . . . . . . . . . . . . . . . .
Warranty liability, end of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012
$ 4,970
19,280
(19,066)
$ 5,184

2011
$ 3,002
18,666
(16,698)
$ 4,970

Purchase Commitments

At March 31, 2012, the Company had the following outstanding purchase commitments:

Inventory purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total purchase commitments . . . . . . . . . . . . . . . .

March 31, 2012
$ 140,549
48,886
19,554
$ 208,989

252

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11 — Commitments and Contingencies (Continued)

Commitments for inventory purchases are made in the normal course of business to original design
manufacturers, contract manufacturers and other suppliers and are expected to be fulfilled by March 31, 2012.
Operating expense commitments are for consulting services, marketing arrangements, advertising, outsourced
customer services, information technology maintenance and support services, and other services. Fixed purchase
commitments for capital expenditures primarily related to commitments for tooling, computer hardware and
leasehold improvements. 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.

Guarantees

Logitech Europe S.A., a subsidiary of the parent holding company, has guaranteed the purchase obligations of
another Logitech subsidiary and third-party contract manufacturers under six guarantee agreements. Two of these
guarantees do not specify a maximum amount. The remaining guarantee has a total limit of $7.0 million. As of
March 31, 2012, $3.9 million of guaranteed purchase obligations were outstanding under these guarantees. Logitech
Europe S.A. has also guaranteed payment of the purchase obligations of a third-party contract manufacturer under
three guarantee agreements. The maximum amount of these guarantees was $3.7 million as of March 31, 2012. As
of March 31, 2012, $0.7 million of guaranteed purchase obligations were outstanding under these agreements.

Indemnifications

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253

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11 — Commitments and Contingencies (Continued)

Legal Proceedings

On May 23, 2011, a class action complaint was filed against Logitech International S.A. and certain of
its officers in the United States District Court for the Southern District of New York on behalf of individuals
who purchased Logitech shares between October 28, 2010 and April 1, 2011. The complaint relates to Logitech’s
disclosure on March 31, 2011 that its results for fiscal year 2011 would fall below expectations and seeks unspecified
monetary damages and other relief against the defendants. The action was transferred to the United States District
Court for the Northern District of California on July 28, 2011. The California Court appointed a lead plaintiff on
October 27, 2011. The plaintiff filed an amended complaint on January 9, 2012 which expanded the alleged class
period to between October 28, 2010 and September 22, 2011.

On July 15, 2011, a complaint was filed against Logitech International S.A. and two of its subsidiaries in the
United States District Court for the Central District of California by Universal Electronics, Inc. (UEI). The complaint
alleges that Logitech’s Harmony remotes, Logitech Revue for Google TV and other products for the digital home
infringe one or more of the seventeen UEI patents asserted in the action, and seeks unspecified monetary damages
and other relief against the defendants. On November 3, 2011, the Company filed a counter suit against UEI for
infringement of five patents by various UEI products, for UEI’s abuse of the legal process in suing the Company
on three expired patents, and for unfair competition. On April 17, 2012, UEI filed a related suit against Logitech
Europe S.A. seeking a declaratory judgment that one of the patents in the counter suit is unenforceable.

In addition, from time to time the Company is involved in claims and legal proceedings which arise in the
ordinary course of its business. The Company is currently subject to several such claims and a small number of
legal proceedings.

The Company believes these lawsuits and claims lack 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 is presently unable to estimate the effects of these claims and legal
proceedings on its results of operations, cash flows or financial position.

Note 12 — 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 27,173,339 of which were held in treasury as of March 31, 2012.

In September 2008, the Company’s shareholders approved an amendment to reserve conditional capital of
25,000,000 shares for potential issuance on the exercise of rights granted under the Company’s employee equity
incentive plans. 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 460.9 million or
$511.1 million based on exchange rates at March 31, 2012) and is subject to shareholder approval.

254

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 12 — Shareholders’ Equity (Continued)

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 $10.6 million at March 31, 2012 (based on exchange rates at March 31, 2012).

Additionally, under Swiss corporate law, the Company is required to establish a reserve equal to the cost
of repurchased treasury shares owned as of year-end. The reserve for treasury shares, which is not available for
distribution, totaled $369.7 million at March 31, 2012 (based on exchange rates at March 31, 2012).

Share Repurchases

During the years ended March 31, 2012 and 2011, the Company had in place the approved share buyback
programs shown in the following table (in thousands, excluding transaction costs). In November 2011, the Company
received approval from the Swiss regulatory authorities for an amendment to the September 2008 share buyback
program to enable future repurchases of shares for cancellation.

Date of Announcement
September 2008—amended . . . . .
September 2008 . . . . . . . . . . . . . .

Approved
Share Buyback
Number
28,465
8,344

Expiration
Date

Approved
Buyback
Amount
$177,030 August 2013
250,000 August 2013

Completion
Date
—
—

Number of
Shares
Remaining(1)
12,075
—

Amount
Remaining
$94,255
—

(1) Represents an estimate of the shares remaining to be repurchased calculated based on the amount remaining
to repurchase as of March 31, 2012, $94.3 million, divided by the adjusted closing price of the Company’s
shares traded on the SIX Swiss Exchange as of the same date, $7.81 per share.

The Company repurchased shares under these buyback programs as follows (in thousands):

Date of Announcement
September 2008—amended . . . . . . . . . . . . . . . . . .
September 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amounts Repurchased During Year ended March 31,(1)

Program to date

2012

2011

Shares
9,900
7,609
17,509

Amount
82,902
73,134
$156,036

Shares
9,900
7,609
17,509

Amount

82,902 —
73,134 —
$156,036 —

Amount
—
—
$—

(1) Represents the amount in U.S. dollars, including transaction costs, calculated based on exchange rates on the

repurchase dates.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 12 — Shareholders’ Equity (Continued)

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 $752 and $759 . . . . . . . . . . . . . . .
Unrealized gain on investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net deferred hedging gains (losses) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

March 31,

2012
$(66,854)
(29,362)
343
(56)
$(95,929)

2011
$(58,641)
(18,073)
1,168
(2,972)
$(78,518)

Note 13 — Segment Information

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—Digital Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
OEM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Peripherals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video Conferencing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2011

2010

2012

$ 619,505
447,991
483,485
215,657
111,480
104,665
185,959
2,168,742
147,461

$ 618,404
386,968
466,927
255,015
104,545
173,351
223,775
2,228,985
133,901

$ 528,236
329,038
454,957
228,344
107,595
96,982
198,364
1,943,516
23,232

Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 2,316,203

$2,362,886

$ 1,966,748

The Company has two operating segments, peripherals and video conferencing, based on product markets and
internal organizational structure. The peripherals segment encompasses the design, manufacturing and marketing
of peripherals for PCs (personal computers), tablets and other digital platforms. The video conferencing segment
consists of the LifeSize division, and encompasses the design, manufacturing and marketing of LifeSize video
conferencing products, infrastructure and services for the enterprise, public sector and other business markets. The
Company’s operating segments do not record revenue on sales between segments, as such sales are not material.

Operating performance measures for the peripherals segment and the video conferencing segment are reported
separately to Logitech’s Chief Executive Officer, who is considered to be the Company’s chief operating decision
maker. These operating performance measures do not include share-based compensation expense, amortization
of intangible assets, and assets by operating segment. Share-based compensation expense and amortization of

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 13 — Segment Information (Continued)

intangible assets are presented in the following financial information by operating segment as ‘‘all other.’’ Long-
lived assets are presented by geographic region. Net sales, operating income and depreciation and amortization for
the Company’s operating segments were as follows (in thousands):

Net sales by operating segment

Peripherals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video Conferencing . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income by segment

Peripherals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video Conferencing . . . . . . . . . . . . . . . . . . . . . . . . . .
All other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization by segment

2012

Year ended March 31
2011

2010

$ 2,168,742
147,461
$ 2,316,203

$2,228,985
133,901
$2,362,886

$ 1,943,516
23,232
$ 1,966,748

$ 137,430
(7,386)
(58,063)
71,981

$ 204,202
1,100
(62,646)
$ 142,656

$ 127,530
(8,844)
(40,322)
78,364

Peripherals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Video Conferencing . . . . . . . . . . . . . . . . . . . . . . . . . .
Total depreciation and amortization . . . . . . . . . . . . . . . . . .

52,578
19,924
72,502

55,816
20,175
75,991

65,130
5,765
70,895

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):

Year ended March 31,
2011

2010

2012

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$ 953,867
846,464
515,872
$ 2,316,203

$1,032,988
872,774
457,124
$2,362,886

$ 729,473
882,635
354,640
$ 1,966,748

Sales are attributed to countries on the basis of the customers’ locations. The United States represented
34% and 36% of the Company’s total consolidated net sales for the fiscal years 2012 and 2011. In fiscal year 2010,
the United States represented 32% and Germany represented 11% of our total consolidated net sales. No other
single country represented more than 10% of the Company’s total consolidated net sales during those periods.
Revenues from sales to customers in Switzerland, the Company’s home domicile, represented a small portion of the
Company’s total consolidated net sales in all periods presented. In fiscal years 2012, 2011 and 2010, one customer
group represented 14%, 12% and 13% of net sales. As of March 31, 2012 and 2011, one customer group represented
14% and 13% of total accounts receivable.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 13 — Segment Information (Continued)

Long-lived assets by geographic region were as follows (in thousands):

Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
EMEA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-lived assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$41,254
9,304
41,576
$92,134

$34,587
9,774
45,272
$89,633

March 31,

2012

2011

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, 2012 and 2011.

Note 14 — Acquisitions and Divestitures

Mirial

On July 18, 2011, the Company acquired all of the outstanding shares of Mirial S.r.l., a Milan-based privately-
held provider of personal and mobile video conferencing solutions, for a total consideration of $18.8 million
(A13.0 million), net of cash acquired of $1.4 million (A1.0 million). In addition, Logitech incurred $0.4 million
in transaction costs, which are included in operating expenses in fiscal year 2012. Mirial has been integrated into
the video conferencing reporting unit, and we expect that its technology will be used to enhance video connection
capabilities on a variety of mobile devices and networks.

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 Mirial 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 Mirial were as follows (in thousands):

Tangible assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intangible assets acquired

Existing technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Customer relationships and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trademark/trade name. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liability, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total consideration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Estimated
Life

5 years
3 years
4 years
—

July 18,
2011
$ 3,332

4,200
1,500
200
14,415
23,647
(1,358)
(2,068)
$20,221

258

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 14 — Acquisitions and Divestitures (Continued)

The existing technology of Mirial relates to the software and architecture which provides the ability to
engage in high quality video conferencing on mobile phones, tablets and personal computers. The value of the
technology was determined based on the present value of estimated expected future cash flows attributable to the
technology. Customer relationships and other relates to the ability to sell existing, in-process, and future versions
of the technology to Mirial’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.

Paradial

On July 6, 2010, Logitech acquired substantially all of the assets and employees of Paradial AS, a Norwegian
company providing firewall and NAT (network address translation) traversal solutions for video communications.
The acquisition will allow the Company to closely integrate firewall and NAT traversal across its video
communications product portfolio, enabling end-to-end HD video calling over highly protected networks. 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 $7.3 million was allocated based on estimated fair values to $7.0 million
of identifiable intangible assets and $0.1 million of assumed liabilities, with the remaining balance allocated to
goodwill. The intangible assets acquired are amortized on a straight-line basis over their estimated useful lives
of five years. The goodwill associated with the acquisition is not subject to amortization and is not expected to be
deductible for income tax purposes.

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
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%.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 14 — Acquisitions and Divestitures (Continued)

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 trustee disbursed 50% of the escrow fund to the former holders of LifeSize
capital stock, vested options and warrants in December 2010, and the remaining fifty percent was disbursed in June
2011, subject 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 was two years, from January 1, 2010 to December 31, 2011. The total available cash
incentive was $9.0 million over the two year performance period. The Company paid the entire $9.0 million in
available cash incentive during fiscal year 2012. 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

4 years
3 years
5 years
5 years
—

December 11,
2009
$ 33,635
8,828

30,000
4,500
7,600
31,500
307,241
423,304
(26,985)
(13,505)
$382,814

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 14 — Acquisitions and Divestitures (Continued)

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 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

TV Compass

2010
(Unaudited)
$2,023
44
$
$ 0.25
$ 0.25

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.

3Dconnexion

On March 31, 2011, the Company sold its equity interest in certain 3Dconnexion subsidiaries, the provider
of the Company’s 3D controllers, and its intellectual property rights related to the manufacture and sale of certain
3Dconnexion products, to a group of third party individuals and certain 3Dconnexion employees. The sale price
was $9.1 million, not including cash retained. Under the sale agreement, the Company will continue to manufacture
3Dconnexion products and sell to the buyers for a period of three years. The loss resulting from the sale was
not material.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 15 — Subsequent Events

On April 9, 2012, Bracken P. Darrell joined Logitech as President. On January 1, 2013, Mr. Darrell will
succeed Guerrino De Luca, Chairman and Chief Executive Officer, as Chief Executive Officer of Logitech. In
connection with the commencement of his employment, Mr. Darrell was granted equity inducement awards which
are described in Note 4, Employee Benefit Plans.

Fair value of future rent obligations of approximately $4 million related to the Company’s former Americas
headquarters will be charged to expense during the first quarter of fiscal year 2013 when the Company ceases use
of the facility.

On April 25, 2012, Logitech announced a restructuring plan to reduce operating costs and improve financial
results. In connection with this plan, the position of Senior Vice President, Worldwide Sales and Marketing and
the position of Executive Vice President, Products and President, Logitech Europe were eliminated. The Company
estimates pre-tax restructuring charges related to employee termination costs, contract termination costs, and other
associated costs of approximately $25 million to $40 million will be incurred in connection with the restructuring
plan, which is expected to be completed within fiscal year 2013.

Note 16 — 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,

2012

2011

$ 12,215 $ 10,953
$783,847 $785,170
$
3,563
$165,114 $197,155

4,129 $

Total personnel expenses amounted to $388.7 million, $364.2 million, and $292.3 million in fiscal years 2012,

2011, and 2010.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 16 — Other Disclosures Required by Swiss Law (Continued)

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, 2012, 2011 and 2010:

Daniel Borel. . . . . . . . . . . . . . . . .

Matthew Bousquette . . . . . . . . . .

Erh-Hsun Chang . . . . . . . . . . . . .

Kee-Lock Chua . . . . . . . . . . . . . .

Sally Davis. . . . . . . . . . . . . . . . . .

Neil Hunt . . . . . . . . . . . . . . . . . . .

Richard Laube . . . . . . . . . . . . . . .

Robert Malcolm. . . . . . . . . . . . . .

Monika Ribar . . . . . . . . . . . . . . .

Total Non-Executive Board Members

Highest Paid Executive Officer

Gerald Quindlen . . . . . . . . . . . . .
Gerald Quindlen . . . . . . . . . . . . .
Gerald Quindlen . . . . . . . . . . . . .
Total Executive Officers(5) . . . . . . . . .

Base
Salary(1)

Bonus

Non-equity
Incentive Plan
Compensation(2)

79,616 $
63,499
72,974
142,171
110,918
124,762
108,050
87,002
87,098
128,522
101,104
108,284
111,462
91,208
101,222
92,885
44,532
90,989
71,746
87,098
—
28,863
87,098
125,110
102,671
110,638
$ 878,805 $
$ 701,543 $
$ 779,174 $

— $
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— $
— $
— $

—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—

Fiscal
Year
2012
2011
2010
2012
2011
2010
2012
2011
2010
2012
2011
2010
2012
2011
2010
2012
2011
2012
2011
2010
2012
2011
2010
2012
2011
2010
2012
2011
2010

Stock
Awards(3)
$

139,466 $
118,770
110,580
137,685
116,994
109,680
137,685
116,994
127,960
137,685
116,994
127,960
139,466
118,770
110,580
137,685
235,569
139,466
118,770
110,580
—
—
109,680
139,466
118,770
110,580
$ 1,108,604 $
$ 1,061,631 $
917,600 $
$

Option
Awards(3)

Other
Compensation(4)

— $
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
— $
— $
— $

Total
219,082
— $
182,269
—
183,554
—
279,856
—
227,912
—
234,442
—
245,735
—
203,996
—
215,058
—
266,207
—
218,098
—
236,244
—
250,928
—
209,978
—
211,802
—
230,570
—
280,101
—
230,455
—
190,516
—
197,678
—
—
—
28,863
—
196,778
—
264,576
—
221,441
—
—
221,218
— $ 1,987,409
— $ 1,763,174
— $ 1,696,774

2012
2011
2010
2012
2011
2010

$ 264,000 $
$ 825,000 $
$ 787,500 $
$2,980,135 $ 25,000
$3,836,280 $133,547
$3,634,808 $ 40,467

— $
—
— $1,083,000
— $1,299,000
$
—
$3,250,276
$4,557,000

$ 2,817,120 $
$ 5,835,050 $
$ 1,007,600 $ 394,000
$ 6,135,300 $
$12,257,300 $
$ 2,641,020 $2,783,850

— $ 1,770,033
62,365
— $
50,370
$
— $ 2,010,446
— $ 1,400,897
$ 107,745

$ 4,851,153
$ 7,805,415
$ 3,538,470
$ 11,150,881
$ 20,878,300
$ 13,764,890

(1) Base salary for non-executive members of the Board of Directors includes fees to attend meetings, annual

retainers and travel fees.

(2) 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 2012, 2011 or 2010.

(3) 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 4. Mr. Gerald Quindlen, former President and Chief Executive Officer, forfeited his fiscal
year 2012 grants of $2,817,120 upon his departure.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 16 — Other Disclosures Required by Swiss Law (Continued)

(4) Other compensation includes term life insurance premiums, car allowance, tax preparation services (and
associated tax gross-up), relocation expenses, travel costs in lieu of relocation, severance, and matching
contributions made by the Company to the Logitech Inc. 401(k) plan or the Logitech Employee Pension Fund.
(5) Fiscal years 2012, 2011 and 2010 includes compensation paid to Mr. Gerald Quindlen, a former President
and Chief Executive Officer who resigned from the Company in July 2011. Fiscal years 2011 and 2010
includes compensation paid to Mr. David Henry, a former Sr. Vice President, Customer Experience and
Chief Marketing Officer who resigned from the Company in December 2010. Fiscal year 2010 includes
compensation paid to Mr. Mark J. Hawkins, former Sr. Vice President, Finance and Information Technology,
and Chief Financial Officer who resigned from the Company in April 2009.

No additional fees or compensation have been paid during fiscal years 2012, 2011, and 2010 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 2012, 2011 and 2010 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 2012, 2011 and 2010 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, 2012:

Shares Held

Options, PRSUs
and RSUs Held(1)

Exercise Price

Fiscal Years of
Expiration

Non-Executive Members

of the Board of Directors:
Daniel Borel(2). . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Bousquette . . . . . . . . . . . . . . . . . . . .
Erh-Hsun Chang. . . . . . . . . . . . . . . . . . . . . . . .
Kee-Lock Chua . . . . . . . . . . . . . . . . . . . . . . . .
Sally Davis . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Neil Hunt . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Richard Laube . . . . . . . . . . . . . . . . . . . . . . . . .
Monika Ribar . . . . . . . . . . . . . . . . . . . . . . . . . .

11,368,313
19,459
166,985
28,716
29,258
3,467
83,869
17,620

13,700
88,700
332,700
68,700
43,700
23,683
43,700
108,700

n/a
$15.41-$23.29
$7.76-$20.25
$9.73-$19.43(3)
$27.78(4)
n/a
$23.24(5)
$11.79-$27.78(6)

n/a
2016-2019
2015-2017
2014-2017
2018
n/a
2019
2015-2018

Total Non-Executive Members

of the Board of Directors: . . . . . . . . . . . . . . . .

11,717,687

723,583

Executive Officers:

Guerrino De Luca . . . . . . . . . . . . . . . . . . . . . .
Gerald Quindlen. . . . . . . . . . . . . . . . . . . . . . . .
Erik Bardman. . . . . . . . . . . . . . . . . . . . . . . . . .
Werner Heid . . . . . . . . . . . . . . . . . . . . . . . . . . .
Junien Labrousse . . . . . . . . . . . . . . . . . . . . . . .
L. Joseph Sullivan . . . . . . . . . . . . . . . . . . . . . .

Total Executive Officers . . . . . . . . . . . . . . . . . . . .

164,018
25,606
5,508
20,750
39,739
7,796
263,417

1,010,538
—
212,000
349,000
646,000
332,250
2,549,788

$6.84-$27.95
n/a
$18.76
$8.01-$17.44
$13.48-$30.09
$13.48-$30.09

2014-2020
n/a
2020
2020
2016-2020
2016-2020

264

LOGITECH INTERNATIONAL S.A.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 16 — Other Disclosures Required by Swiss Law (Continued)

(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 or three 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 four equal annual installments from the date of grant. RSUs granted to non-executive Directors
vest in one installment on the grant date anniversary.

(2) The number of shares held includes (a) 53,000 shares held by a charitable foundation, of which Mr. Borel and
other members of his family are board members and (b) 6,500 shares held by Mr. Borel’s spouse. Mr. Borel
has not entered into any written shareholders’ agreements.

(3) One of the option grants to Mr. Chua has an exercise price of CHF 13.00, and the other has a U.S. dollar
exercise price of $19.43. For the grant denominated in Swiss francs, the U.S. dollar exercise price is based on
the Swiss franc 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, 2012 was $14.44.

(4) The exercise price of the option as granted to Ms. Davis is CHF 34.45. The U.S. dollar exercise price shown
is based on the Swiss franc 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, 2012 was $38.26.

(5) The exercise price of the option as granted to Mr. Laube is CHF 26.18. The U.S. dollar exercise price shown
is based on the Swiss franc 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, 2012 was $29.08.

(6) The two option grants to Ms. Ribar have exercise prices of CHF 14.68 and CHF 34.45. The U.S. dollar exercise
prices are based on the Swiss franc to U.S. dollar conversion rate on the trading day immediately preceding
the grant dates. The U.S. dollar exercise prices as of March 31, 2012 was $16.30 and $38.26.

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

INDEX TO SWISS STATUTORY FINANCIAL STATEMENTS

Page

Swiss Statutory Balance Sheets (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

269

Swiss Statutory Statements of Income (unconsolidated) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

270

Notes to Swiss Statutory Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

271

Proposal of the Board of Directors for Appropriation of Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . .

275

Report of the Statutory Auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

276

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LOGITECH INTERNATIONAL S.A., APPLES

SWISS STATUTORY BALANCE SHEETS (unconsolidated)
(In thousands of Swiss francs)

March 31,

2012

2011

Current assets:

ASSETS

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term bank deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued interest and other receivables . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advances to and amounts receivable from group companies . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHF

71,672
56,816
904
—
129,392

CHF

89,936
39,272
280
32,901
162,389

Long-term 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

387
515,630
252,428
—
333,445
(142,145)
959,745
CHF1,089,137

1,552
513,720
268,578
(2,507)
281,565
(87,743)
975,165
CHF 1,137,554

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Payables to group companies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accruals and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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 from capital contribution . . . . . . . . . . . . . . . . . . . . . . . . . .
Reserve for treasury shares
- Reserve for treasury shares from capital contribution . . . . . . . . . . .
- Other general reserves for treasury shares . . . . . . . . . . . . . . . . . . . .
Total legal reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unappropriated retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and shareholders’ equity . . . . . . . . . . . . . . . . .

28,695
3,657
32,352

10
204,929
237,291

CHF

12,524
1,198
13,722

38
277,017
290,777

47,902

9,580

116,070
217,375
343,025
460,919
851,846
CHF1,089,137

116,070
165,495
291,145
507,730
846,777
CHF 1,137,554

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LOGITECH INTERNATIONAL S.A., APPLES

SWISS STATUTORY STATEMENTS OF INCOME (unconsolidated)
(In thousands of Swiss francs)

Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Royalty fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income from third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest income from subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brand development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest paid to subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income, capital and non-recoverable withholding taxes . . . . . . . . . . . . . . . . . . . . .
Loss on treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gain on long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Realized exchange losses, net of exchange gains . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2011
2012
CHF 35,332
CHF135,182
25,562
21,743
614
662
12,598
10,398
74,106
167,985

4,523
12,787
11,882
1,759
122,731
(827)
9,625
436
162,916
CHF 5,069

4,390
12,754
20,513
438
5,334
(1,026)
11,461
29
53,893
CHF 20,213

The accompanying notes are an integral part of these financial statements.

270

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 29,878,000 and CHF 91,205,000 at
March 31, 2012 and March 31, 2011 for lines of credit available to its subsidiaries. At March 31, 2012 the credit line
facilities were not drawn down.

The Holding Company has guaranteed payment of the purchase obligations of various subsidiaries from
certain component suppliers. These guarantees generally have an unlimited term. The maximum potential future
payment under the guarantee arrangements is limited to CHF 32,456,277. At March 31, 2012, there were no purchase
obligations outstanding for which the Holding Company was required to guarantee payment.

Note 3 — Financing Arrangements:

In December 2011, the Holding Company entered into a Senior Revolving Credit Facility Agreement with a
group of primarily Swiss banks that provides for a revolving multicurrency unsecured credit facility in an amount
of up to $250 million. The Holding Company may, upon notice to the lenders and subject to certain requirements,
arrange with existing or new lenders to provide up to an aggregate of $150 million in additional commitments,
for a total of $400 million of unsecured revolving credit. The credit facility may be used for working capital,
general corporate purposes, and acquisitions. There were no outstanding borrowings under the credit facility at
March 31, 2012.

The credit facility matures on October 31, 2016. The Holding Company may prepay the loans under the credit
facility in whole or in part at any time without premium or penalty. Borrowings under the credit facility will accrue
interest at a per annum rate based on LIBOR (London Interbank Offered Rate), or EURIBOR (Euro Interbank
Offered Rate) in the case of loans denominated in euros, plus a variable margin determined quarterly based on the
ratio of senior debt to earnings before interest, taxes, depreciation and amortization for the preceding four-quarter
period, plus, if applicable, an additional rate per annum intended to compensate the lenders for the cost of compliance
with regulatory reserve requirements and other banking regulations. The Holding Company also pays a quarterly
commitment fee of 40% of the applicable margin on the available commitment. In connection with entering into
the credit facility, the Holding Company incurred non-recurring fees totaling $1.5 million, which are amortized on
a straight-line basis over the term of the credit facility.

The facility agreement contains representations, covenants and events of default customary in Swiss credit
markets. Affirmative covenants include covenants regarding reporting requirements, maintenance of insurance,
maintenance of properties and compliance with applicable laws and regulations, and financial covenants that
require the maintenance of net senior debt, interest cover and adjusted equity ratios determined in accordance
with the terms of the facility. Negative covenants limit the ability of the Holding Company and its subsidiaries,
among other things, to grant liens, make investments, incur debt, make restricted payments, enter into a merger or
acquisition, or sell, transfer or dispose of assets, in each case subject to certain exceptions. As of March 31, 2012,
the Holding Company was in compliance with all covenants and conditions.

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NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)

Upon an uncured event of default under the facility, the lenders may declare all or a portion of the outstanding
obligations payable by the Holding Company to be immediately due and payable, terminate their commitments and
exercise other rights and remedies provided for under the facility. The events of default under the facility include,
among other things, payment defaults, covenant defaults, inaccuracy of representations and warranties, cross
defaults with certain other indebtedness, bankruptcy and insolvency events and events that have a material adverse
effect (as defined in the facility). Upon a change of control of the Holding Company, lenders whose commitments
aggregate more than two-thirds of the total commitments under the facility may terminate the commitments and
declare all outstanding obligations to be due and payable.

Note 4 — Investments:

Principal operating subsidiaries include the following:

Company
Logitech Europe S.A. . . . .

Country

possession Currency

Share capital

Purpose

Switzerland

100

CHF

100,000 Administration, research,

% of

Logitech Inc . . . . . . . . . . .

U.S.A

100

USD

development, sales and
distribution
11,522,396 Administration, research,

development, sales and
distribution

Logitech (Intrigue) Inc. . .
Logitech Technology

(Suzhou) Co., Ltd . . . .
Logitech Mirial Italy Srl . .

Canada
People’s Republic
of China
Italy

100
100

100

CAD
USD

1,661,340 Research and development

22,000,000 Manufacturing

EUR

14,009,834 Research and development

All subsidiaries are directly or indirectly 100% owned by the Holding Company.

Note 5 — Treasury Shares:

During fiscal years 2011 and 2012, 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, 2010 . . . . . . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Held by the Holding Company at March 31, 2011 . . . . . . . . . . . . . . . . . . . . . . . .
Additions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Held by the Holding Company at March 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . .

Number of
shares
16,435,528
—
(4,001,914)
12,433,614
17,509,412
(2,769,687)
27,173,339

Total cost
(in thousands)
CHF 419,770
—
(138,205)
281,565
133,955
(82,075)
CHF 333,445

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. In November 2011, the Company received
approval from the Swiss regulatory authorities for an amendment to the September 2008 share buyback program
to enable future repurchases of shares for cancellation, up to a total of 28.5 million shares. As of March 31,
2012, the Holding Company had repurchased 7,609,412 registered shares for approximately USD 73,134,017,
including transaction costs, under the September 2008 program and 9,900,000 registered shares for approximately
CHF 75,537,980, including transaction costs, under the amended September 2008 program.

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LOGITECH INTERNATIONAL S.A., APPLES

NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)

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 6 — Authorized and Conditional Share Capital Increases:

Conditional capital

In September 2008, the Company’s shareholders approved an amendment to the Company’s Articles of
Incorporation to reserve conditional capital of 25,000,000 shares for potential issuance on the exercise of rights
granted under the Company’s employee equity incentive plans. 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.

As of March 31, 2012, none of the aforementioned conditional registered shares had been issued. During fiscal
years 2012 and 2011, all employee equity incentive commitments were satisfied from treasury shares held by the
Holding Company. A description of the employee equity incentive commitments still outstanding is presented in
the consolidated financial statements of Logitech International S.A.

Note 7 — 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, 2012 were as follows:

Name
Daniel Borel(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FMR LLC(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Research Global Investors(5) . . . . . . . . . . . . . . . . . . . . . .
Morgan Stanley, The Corporation Trust Company(6) . . . . . . . . .

Number of
Shares(1)
11,368,313
11,532,789
16,410,000
12,654,812

% of Voting
Rights(2)
5.9%
6.0%
8.6%
6.6%

Relevant Date
December 31, 2011
December 31, 2011
December 31, 2011
August 2010

(1) Financial instruments other than shares are not taken into consideration for the calculation of the relevant

shareholdings.

(2) Shareholdings are calculated based on the aggregate number of voting rights entered into the Swiss commercial

(3) The number of shares held includes (a) 53,000 shares held by a charitable foundation, of which Mr. Borel and
other members of his family are board members and (b) 6,500 shares held by Mr. Borel’s spouse. Mr. Borel
has not entered into any written shareholders’ agreements.

(4) Number of shares held by FMR LLC is based on a notification filed by FMR LLC with the U.S. Securities
and Exchange Commission on February 14, 2012 indicating the ownership of FMR LLC, on behalf of funds
managed by and clients of FMR LLC and its direct and indirect subsidiaries as of December 31, 2011.
(5) Number of shares held by Capital Research Global Investors, a division of CRMC (Capital Research and
Management Company), is based on a notification filed by Capital Research Global Investors with the U.S.
Securities and Exchange Commission on February 14, 2012 indicating beneficial ownership of Capital Research
Global Investors as a result of CRMC acting as investment advisor to various investment companies.
(6) On April 5, 2012, Morgan Stanley, The Corporation Trust Company notified us that as of August 2010

Morgan Stanley, The Corporation Trust Company and its subsidiaries held 12,654,812 shares.

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273

LOGITECH INTERNATIONAL S.A., APPLES

NOTES TO SWISS STATUTORY FINANCIAL STATEMENTS (continued)

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.

Note 8 — Movements on Retained Earnings:

During fiscal years 2012 and 2011, movements on retained earnings were as follows (in thousands):

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 . . . . . . . . . . .

Year ended March 31,
2012
CHF507,730
(51,880)
5,069
CHF460,919

2011
CHF 349,312
138,205
20,213
CHF 507,730

Note 9 — 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.

Note 10 — Risk Assessment:

A discussion of the Holding Company’s risk assessment is included in Note 16-Other Disclosures Required

by Swiss Law in the consolidated financial statements of Logitech International S.A.

********************************

274

PROPOSAL OF THE BOARD OF DIRECTORS FOR APPROPRIATION OF RETAINED EARNINGS

Proposals of the Board of Directors for appropriation of retained earnings were as follows during fiscal years

2012 and 2011 (in thousands):

Unappropriated retained earnings before allocations . . . . . . . . . . . . . .
Proposed allocation to other general reserves for treasury shares . . .
Proposed allocation to general reserve . . . . . . . . . . . . . . . . . . . . . .
Unappropriated retained earnings to be carried forward . . . . . . . . . . .

Other general reserves for treasury shares before allocation . . . . . . . .
Proposed allocation from unappropriated retained earnings . . . . .
Other general reserves for treasury shares to be carried forward . . . .

General reserve before allocations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation from unappropriated retained earnings . . . . .
General reserve to be carried forward. . . . . . . . . . . . . . . . . . . . . . . . . .

Reserve for treasury shares from capital contributions

before allocation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation to free reserves from capital contributions. . .

Reserve for treasury shares from capital contributions to be

Year ended March 31,

2012
Proposal of the
Board of Directors
460,919
CHF
(116,070)
(9,580)
335,269

CHF

2011
Resolution of the
General Assembly
507,730
CHF
—
—
507,730

CHF

217,375
116,070
333,445

CHF

165,495
—
165,495

— CHF

9,580
9,580

CHF

—
—
—

116,070
(116,070)

CHF

116,070

carried forward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHF

— CHF

116,070

General reserve from capital contributions before allocations . . . . . . .
Proposed allocation to free reserves from capital contributions. . .
General reserve from capital contributions to be carried forward . . . .

CHF

9,580
(9,580)

CHF

— CHF

9,580
—
9,580

PROPOSAL OF THE BOARD OF DIRECTORS FOR DISTRIBUTION OF CAPITAL
CONTRIBUTIONS RESERVES TO SHAREHOLDERS

The Board of Directors proposes the release of reserves from capital contributions and the distribution of such

capital contribution reserves to shareholders (in thousands):

Free reserve from capital contributions before allocations. . . . . . . . . . . . . . . . . . . . . . . . . . .
Proposed allocation from reserve for treasury shares from capital contributions . . . . . .
Proposed allocation from general reserve from capital contributions . . . . . . . . . . . . . . .
Proposed distribution from capital contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Free reserve from capital contributions to be carried forward . . . . . . . . . . . . . . . . . . . . . . . .

Year ended March 31,
2012
Proposal of the
Board of Directors
—
CHF
116,070
9,580
(125,650)
—

CHF

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275

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 accompanying financial statements of Logitech International S.A.,

which comprise the balance sheet, income statement and notes, for the year ended March 31, 2012.

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.

Auditor’s 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, 2012 comply with Swiss law and the

company’s articles of incorporation.

276

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 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 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

Michael Foley
Audit expert
Auditor in charge

Lausanne, June 27, 2012

Enclosures:

Alexandre Dübi
Audit expert

Financial statements (balance sheet, income statement and notes) for the year ended March 31, 2012 and the
proposed appropriation of the available earnings, listed in the index appearing on page 267.

277

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Executive Team

Guerrino De Luca

Board of Directors

Guerrino De Luca

Chairman of the Board and Chief Executive Officer

Chairman of the Board

Bracken P. Darrell

President

Erik K. Bardman

Chief Financial Officer and

Senior Vice President, Finance

M. Ehtisham Rabbani

Senior Vice President, Customer Experience and

Logitech

Daniel Borel

Co-Founder and Former Chairman of the Board

Logitech

Matthew Bousquette

Chairman

EGI Holdings LLC

Chief Marketing Officer

Erh-Hsun Chang

L. Joseph Sullivan

Senior Vice President,

Worldwide Operations

Martha Tuma

Vice President,

Human Resources

Former Senior Vice President, Worldwide Operations

and General Manager, Far East

Logitech

Kee-Lock Chua

President and Chief Executive Officer

Vertex Group

Sally Davis

Catherine Valentine

Former Chief Executive Officer

Vice President, Legal, General Counsel and

BT Wholesale

Secretary of the Board

Neil Hunt

Chief Product Officer

Netflix, Inc.

Richard Laube

Chief Executive Officer

Nobel Biocare Holding A.G

Monika Ribar

President and Chief Executive Officer

Panalpina Group

Investor Relations

Investor inquiries may be directed to:

LogitechIR@logitech.com

Annual Meeting

the Logitech logo, and other Logitech marks are

Logitech’s annual meeting of shareholders will

registered in the United States and other countries.

be held at 14:30 Central European Summer Time,

All other trademarks are the property of their

September 5, 2012, at the Palais de Beaulieu in

respective owners.

Lausanne, Switzerland.

SIX: LOGN-VX

NASDAQ: LOGI

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about Logitech and

its products, please

visit our web site: