Logitech 2004 Annual Report Download - page 16

Exhibit 14.1
REPORT ON CORPORATE GOVERNANCE
Logitech believes that sound corporate governance principles are essential to an open and responsible
corporation. The Company believes its corporate governance practices reflect a continuing commitment to
corporate accountability, sound judgment, and transparency to shareholders.
As a company whose shares are traded both on the SWX Swiss Exchange and on the Nasdaq National
Market, Logitech International S.A.’s commitment to sound corporate governance principles is guided by the
legal and regulatory requirements of both Switzerland and the United States. In addition, Logitech International
S.A.’s internal guidelines regarding corporate governance are provided in its Articles of Incorporation,
Organizational Regulations, and Board Committee Charters.
This report conforms with the requirements of the Corporate Governance Directive of the SWX Swiss
Exchange that was released in July 2002 and includes certain corporate governance disclosures required by the
U.S. Securities and Exchange Commission.
1. Group Structure and Shareholders
1.1 Operational Group Structure
The Logitech Group (also referred to as “Logitech”) designs, develops, produces, and markets personal
interface products. Logitech’s personal interface products include input and pointing devices such as corded and
cordless mice, trackballs, and keyboards; interactive gaming devices for entertainment such as joysticks,
gamepads and steering wheels; multimedia speakers; Internet video cameras; 3D motion controllers; and with its
recent acquisition of Intrigue Technologies, advanced remote controls. Logitech is organized into four business
units – Control Devices, Video, Interactive Entertainment and Audio – which develop products and bring them to
market. These business units are responsible for product design and development, industrial design, technological
innovation and overall product management. Logitech’s marketing and sales organization is responsible for
selling the products brought to market by the business units, and is structured around two main sales channels,
retail and original equipment manufacturers or OEM. The retail organization is responsible for sales to direct
retail accounts, mass merchants and distributors while the OEM organization is responsible for sales to OEM
customers. Logitech’s sales and marketing activities are also organized into three geographic regions: Americas
(including North and South America and Australia), Europe-Middle-East-Africa, and Asia Pacific.
Since 1994, Logitech has had its own manufacturing operations in Suzhou, China, which currently produces
approximately half of the Company’s products. The Company outsources the remaining production to contract
manufacturers and original design manufacturers located in Asia, Hungary and Mexico. The Company’s other
operations support the business units and marketing and sales organizations through management of distribution
centers and the product supply chain, and the provision of technical support, customer relations and other
services.
Logitech International S.A. (also referred to as the “Company”), the parent company of Logitech, is a joint
stock company (société anonyme,Aktiengesellschaft) incorporated under the laws of Switzerland, with its
registered office located in Apples, Switzerland. The Company’s registered shares are listed on the SWX Swiss
Exchange (Ticker: LOGN; security number: 1260719; ISIN: CH0012607195). American Depositary Shares
(“ADSs”) are listed on the Nasdaq National Market in the form of American Depositary Receipts (“ADRs”)
(Ticker: LOGI; U.S. security number: 541419; ISIN: US5414191073). For information on Logitech’s holdings in
its own shares, refer to section 1.2 below. As of March 31, 2004, Logitech’s market capitalization, based on
outstanding registered shares of 47,901,655, amounted to CHF 2.75 billion ($2.17 billion).
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