Tom Gill, VP and CIO

Public

Tom Gill, VP and CIO

Information Technology at Plantronics

May 13, 2010

2

Agenda

• Company Overview

• Unified Communications Opportunity and

Solutions

• Bluetooth Headsets

• Financials

• IT Makes it Happen

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Brand Promise: Sound, Style, Simplicity

Product quality and breadth

Track record of growth and profitability

Plantronics is the Headset Market Leader

Leader in Office, Contact Center, Bluetooth

No debt, approximately $7.67 cash per share

Cash flow positive for over 14 years

4

Broad Blue-Chip Customer Base

100% of Fortune 100 companies use Plantronics

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Business Highlights (December Quarter)

• Corporate– Revenue, operating income and EPS above guidance– Long-term target gross & operating margins achieved– Demand improved in all geographies

» Strong rebound in EMEA: +34% from Q2FY10– Sale of Altec Lansing (AEG) effective December 1, 2009

• Office & Contact Center: long-term prospects remain strong– Office & Contact Center (OCC) demand improved – Unified Communications (UC) opportunity continues to be validated

• Bluetooth– Profitable: improved cost structure, seasonal strength & mix– Improving demand (hands-free laws)– Market share gains: Voyager Pro & Discovery 975

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$MCorporate Revenue, Continuing Operations

PLT Has Adapted Well to Market Shifts for Decades

•

Every Market Shift Increased Our Addressable Market

(March Fiscal)

WirelessContact Center Office CordedTelCo UC

CS70

Supraplus

Supra M10Duoset

EncorePro

DA60

Savi Office

IP40

Voyager510s

CS50

Incremental Market Opportunities

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$0

$100

$200

$300

$400

$500

$600

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

-11.3% CAGR

Office & Contact Center Revenue

-25%14.5% CAGR 17% CAGR

-17%

10% CAGR

7.4% CAGR

$M

?-25%?

Public

Unified Communications (UC)• $350M in incremental revenue expected by FY15• Doubles addressable office headset opportunity

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PC and Telephony Presence

Voice, Video, IM & Presence is Key to all Unified Communications Solutions

UC is About a Different Way of Working

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Cost Savings is the Biggest Driver for UC Adoption

• UC solutions integrate multiple enterprise communication methods onto one platform• UC adds functionality to existing communication technology investments

Source: Plantronics UC Study Nov/Dec 2009

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UC ROI & Payback is Validated

Key Savings**

• 20% reduction in conference calling costs

• Reduced travel costs

Organization

• $9.6M annual savings:• Carrier, Travel, PBX• IRR: 90%, 10 Mo.

Payback

• Travel costs reduced 20%• Enhanced learning

• Long-distance savings of $33K annually

*Aberdeen Group 2009, **MSFT UC Case Studies

80% of Companies Expect Payback of Less than 1 Year*

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The Impact of the Audio Endpoint

Public

Plantronics UC Solutions• All Devices: Wireless, Corded, Telephones, Speakerphones • Strong Pipeline

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UC Portfolio Spring 2010

Blackwire 600

Blackwire 200

Blackwire 400

Savi 400

Savi Office WO

Calisto 500

Calisto 200

Voyager PRO UC

Calisto 400

New

Refresh

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Compatibility with Major Vendors

Softphone Integration and Support

Optimized UC products provide plug and play call control with OCS

Plug in provides call control with UC products

and Sametime

Call Control with UC products and leading

softphones

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PLT is the Preferred Choice of Leading IT Departments

PLT Mission: Make the Headset an Indispensable Business Tool

Compatible with all UC voice platforms and PBX’s

All solutions: headsets (DECT, Bluetooth, Corded), handsets, USB speakerphones

Help desk support

Global distribution

Intelligent software interface

Portfolio strategy

Plantronics legacy

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Higher Investment = Strong UC Product Pipeline

Intelligence

User State Information

Ease of Use

Cross-System Integration

Control

Unified Call Management

Quality

Audio Clarity & Reliability

18Source: Frost & Sullivan November, 2008

UC Voice Seats Are Driving Headsets Sales

UC Voice Seats Deployed(cumulative)

Millions

MSFT Expects 50% Headset Attach Rate for Voice Seats

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$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

CY 2008 CY 2014E

Other UC Comm. Devices

UC Headsets

Office/UC Overlap

Office Headsets

6% CAGR

PLT Est. $350M Incremental Revenue by FY15

Unified Communications Doubles PLT Addressable Office Market

WW Office Headset Market

WW Office Headset & UC Device Market

$M

UC Device

Growth rates vary with economy, consumer adoption rates, competition and resulting price levels, and other factors Sources: Frost & Sullivan, Nemertes, Gartner, IDC, IDG, Strategy Analytics, NPD Intellect, GFK, Carnegie Research, Company estimates

15% CAGR19% C

AGR

Public

Bluetooth Headsets• Market leading position• Profitable

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Highest Rated Bluetooth Headsets

Dual Microphones, AudioIQ2 & Windsmart Technology

Discovery 975 Voyager Pro

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Bluetooth Retail: #1 in Revenue

Source: The NPD Group/Retail Tracking Service

% of Retail $ Share (US)

Note: The NPD Group revised historical data in their Sept. 2008 report to account for adding and/or removing channel partners or updates to their methodology, resulting in new historical rankings.

Public

Financials• Achieved long-term margin target model

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• Revenue: $165.9M, +9% YOY, exceeded guidance of $155M - $160M

• Gross Margin: 48.9% vs. 40.1% in prior year

• Operating Expenses: $49.2M vs. $52.2M in prior year: -6%

• Operating Income: $31.8M vs. $9.0M in prior year– Operating Margin 19.2% vs. 5.9% in prior year

• Earnings per share: $0.50 vs. $0.14 in prior year

• Cash Flow from Operations $36.3M vs. $5.4M in prior year

• Cash, Equivalents & ST Investments: $316.5M or ~$6.40 per share

Q3 FY10 Financial Highlights

(Non-GAAP, Continuing Operations)

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Q3 FY09

Q2 FY10

Q3 FY10

Q2-Q3 % Change

YoY % Change

YoY $ Change

OCC $101.7 $93.5 $103.1 10.3% 1.4% $1.4

Mobile $36.0 $34.7 $46.9 35.4% 30.4% $10.9

Gaming/Comp $8.5 $9.0 $11.1 22.8% 29.8% $2.5

Clarity $6.4 $7.3 $4.8 -33.8% -24.5% -$1.6

Total $152.6 $144.5 $165.9 14.9% 8.7% $13.3

Revenue by Product Group & Geography

($ Millions)

U.S. $91.6 $93.4 $99.1 6.2% 8.3% $7.6EMEA $42.4 $31.2 $41.6 33.5% -1.8% -$0.8Asia Pacific $8.0 $12.2 $12.5 2.3% 55.0% $4.4

Americas(excl. U.S.)

$10.6 $7.7 $12.7 64.1% 19.8% $2.1

Total $152.6 $144.5 $165.9 14.9% 8.7% $13.3

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Gross Margin

45.4%

47.9%

40.1%39.2%

49.0% 48.7% 48.9%

39%

40%

41%

42%

43%

44%

45%

46%

47%

48%

49%

50%

Q109 Q209 Q309 Q409 Q110 Q210 Q310

$121

Non-GAAP, Continuing Operations

Percent

Target Range: 45% - 48%

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Operating Margin

16.9%

19.4%

5.9%6.5%

17.9%18.5%

19.2%

5%

10%

15%

20%

Q109 Q209 Q309 Q409 Q110 Q210 Q310

$121

Non-GAAP, Continuing Operations

Percent

Target Range: 18% - 20%

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Key Focus Areas

• UC Market Position

• UC Product Pipeline

• Bluetooth Profitability

• Maintaining Strong Margins

Public

IT Makes it Happen!

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IT Overview

• 90+ Employees in six locations

• Key Locations

–Santa Cruz Corporate Headquarters

–Tijuana factory, Design Center and Contact Center

–Suzhou China APAC Hub

–Swindon UK EMEA Hub

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Managing Plantronics Global Technology Investment

Networks and connectivity

Voice communication

Email and messaging

Servers and storage

Desktop, notebooks, mobile devices

Business systems and process optimization

Service desks and support

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Key IT Roles

 Business Analysts

 Application Developers

 Database Administrators

 Project Managers

 System and Storage Administrators

 Network Engineers

 UC Administrators

 Service Desk Specialists

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Key Competencies

Project management

Security and compliance

Network architecture

Virtualization

SaaS application management / vendor management

Unified Communications

Business process optimization

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Critical Applications

 Oracle E-Business Suite – Financials, Manufacturing, Supply Chain, HR

 Salesforce.com – Sales and Customer Support

 Microsoft Stack – XP/Win7, Office, Sharepoint, Exchange, Project Server, Office Communicator, SQLServer and more

 Business Intelligence – Oracle BI, Hyperion and canned analytics

 Plantronics.com

 + 100 other important apps

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Key Infrastructure Technologies

LAN / WAN Masergy MPLS Network Cisco routers, switches and WiFi

Servers – Windows, Linux and Sun Solaris

VMWare virtualization platform

EMC Storage Area Networks

Mobility devices keep us connnected 24x7 Blackberry iPhone Windows Mobile iPad?

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Tools

Enable reliability, scalability and security

Network and server monitoring

Asset management

Host and client imaging

Intrusion detection

Digital loss prevention

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Cloud Computing Has Arrived

Internal clouds Application development and test environments UC labs running multiple versions of leading apps from IBM, Cisco,

Avaya, Microsoft and more

External Clouds 20+ SaaS applications and services Taleo applicant tracking Salesforce.com for marketing, sales and support Salary.com for comp planning and reviews Right Now Technology customer support knowledge base Iron Mountain Connected backs up client system files Dell Message One high availability Exchange system for email

business continuity

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IT Challenges

 Recent carve out and sale of Altec Lansing

 Consumerization of IT

 Change Management

  IT Service Delivery Processes