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Tom Gill, VP and CIO

Information Technology at Plantronics. Tom Gill, VP and CIO. May 13, 2010. Agenda. Company Overview Unified Communications Opportunity and Solutions Bluetooth Headsets Financials IT Makes it Happen. Plantronics is the Headset Market Leader . Brand Promise: Sound, Style, Simplicity

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Tom Gill, VP and CIO

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  1. Information Technology at Plantronics Tom Gill, VP and CIO May 13, 2010

  2. Agenda Company Overview Unified Communications Opportunity and Solutions Bluetooth Headsets Financials IT Makes it Happen

  3. Plantronics is the Headset Market Leader • Brand Promise: Sound, Style, Simplicity • Product quality and breadth • Track record of growth and profitability • Leader in Office, Contact Center, Bluetooth • No debt, approximately $7.67cash per share • Cash flow positive for over 14 years

  4. Broad Blue-Chip Customer Base 100% of Fortune 100 companies use Plantronics

  5. 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

  6. PLT Has Adapted Well to Market Shifts for Decades Every Market Shift Increased Our Addressable Market (March Fiscal) $M IP40 Corporate Revenue, Continuing Operations Voyager 510s DA60 CS70 Savi Office CS50 EncorePro M10 Supraplus Duoset Supra TelCo UC Contact Center Office Corded Wireless Incremental Market Opportunities

  7. Office & Contact Center Revenue $M -17% ? -25%? -25% 14.5% CAGR -11.3% CAGR 17% CAGR 10% CAGR 7.4% CAGR

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

  9. Voice, Video, IM & Presence is Key to all Unified Communications Solutions UC is About a Different Way of Working PC and Telephony Presence

  10. 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

  11. UC ROI & Payback is Validated • 80% of Companies Expect Payback of Less than 1 Year* Organization Key Savings** • 20% reduction in conference calling costs • Reduced travel costs • Long-distance savings of $33K annually • $9.6M annual savings: • Carrier, Travel, PBX • IRR: 90%, 10 Mo. Payback • Travel costs reduced 20% • Enhanced learning *Aberdeen Group 2009, **MSFT UC Case Studies

  12. The Impact of the Audio Endpoint

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

  14. UC Portfolio Spring 2010 Voyager PRO UC Blackwire 600 Calisto 200 Blackwire 400 Calisto 400 Savi Office WO Blackwire 200 Calisto 500 Refresh Savi 400 New

  15. Compatibility with Major Vendors Softphone Integration and Support Call Control with UC products and leading softphones Plug in provides call control with UC products and Sametime Optimized UC products provide plug and play call control with OCS

  16. 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

  17. Higher Investment = Strong UC Product Pipeline Intelligence Ease of Use Control Quality User State Information Cross-System Integration Unified Call Management Audio Clarity & Reliability

  18. UC Voice Seats Are Driving Headsets Sales MSFT Expects 50% Headset Attach Rate for Voice Seats Millions UC Voice Seats Deployed (cumulative) Source: Frost & Sullivan November, 2008

  19. 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 19% CAGR 15% CAGR 6% CAGR 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

  20. Bluetooth Headsets • Market leading position • Profitable

  21. Highest Rated Bluetooth Headsets • Dual Microphones, AudioIQ2 & Windsmart Technology Discovery 975 Voyager Pro

  22. Bluetooth Retail: #1 in Revenue % 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. Source: The NPD Group/Retail Tracking Service

  23. Financials • Achieved long-term margin target model

  24. 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)

  25. Revenue by Product Group & Geography ($ Millions)

  26. Gross Margin Non-GAAP, Continuing Operations $121 Percent Target Range: 45% - 48%

  27. Operating Margin Non-GAAP, Continuing Operations Percent $121 Target Range: 18% - 20%

  28. Key Focus Areas UC Market Position UC Product Pipeline Bluetooth Profitability Maintaining Strong Margins

  29. IT Makes it Happen!

  30. 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

  31. 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

  32. Key IT Roles • Business Analysts • Application Developers • Database Administrators • Project Managers • System and Storage Administrators • Network Engineers • UC Administrators • Service Desk Specialists

  33. Key Competencies Project management Security and compliance Network architecture Virtualization SaaS application management / vendor management Unified Communications Business process optimization

  34. 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

  35. 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?

  36. Tools • Enable reliability, scalability and security • Network and server monitoring • Asset management • Host and client imaging • Intrusion detection • Digital loss prevention

  37. 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

  38. IT Challenges • Recent carve out and sale of Altec Lansing • Consumerization of IT • Change Management • IT Service Delivery Processes

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