Cherry AG

Earnings Release • Nov 15, 2021

Q3/9M 2021 – INVESTOR & ANALYST CONFERENCE CALL

November 15, 2021

Global gaming market

Global professional input devices market

Important steps for future growth

Scope of business - supporting growth dynamics

• Dell plus four additional strategic customers were added for CHERRY´s mechanical ULP (ultra low profile) switches.
• New markets were entered together with new distributors, incl. Malaysia, Australia and Indonesia.

Leading innovator – introducing advanced technology

• The first phase of a new switch innovation continued to progress successfully in Q3 towards a market introduction in 2022.
• CHERRY developed the Advanced Wireless Technology for keyboards, enabling a connection transmission latency of 1 ms in RF mode plus basic connection features like three Bluetooth 5.1 channels and a corded connection.
• New generation of high-performance production assembly machines with increased efficiency expected to start in Q4 2022.

CHERRY MX 2.0S, HC 2.2 and MC 2.1.

Important steps for future growth

Scope of business - supporting growth dynamics

• Cherry's total addressable market has increased with gematik GmbH's approval of outpatient and inpatient care facilities as new user groups for Cherry e-health terminals.
• New product segments and additional wireless devices were developed to support the work from home trend and to meet the demands of the creator consumer group.

Environmental awareness - part of the business model

• Plastic-free packaging for all products in the Professional business area has been established in Q3.

Q3/9M 2021 – Investor & Analyst Conference Call 9

STRONG PROFITABLE SALES GROWTH

• 9M 2021 was marked by a strong revenue growth of 31.3% and an improved profitability of 29.6% EBITDA margin (adjusted)
• Corporate Transactions, loan repayments and IFRS-required accounting caused high nonrecurrent one-off effects in current fiscal year

IN €M/ AS INDICATED	9M 2021	9M 2020*	∆	Q3 2021	Q3 2020*	∆
Revenue	123.4	93.9	31.3%	43.1	34.2	26.1%
EBITDA adj.	36.5	26.7	36.9%	12.3	10.9	12.9%
EBITDA	31.1	26.3	18.2%	12.2	10.6	14.7%
EBITDA margin (adj.)	29.6%	28.4%	1.2 pp.	28.6%	31.9%	-3.3 pp.
EBITDA margin	25.2%	28.0%	-2.8 pp.	28.3%	31.1%	-2.8 pp.
EBIT (adj.)	25.6	19.2	33.2%	8.5	8.3	2,3%
EBIT	20.1	18.8	7.0%	8.4	8.1	4.4%
EBIT margin (adj.)	20.7%	20.4%	0.3 pp.	19.8%	24.4%	-4.6 pp.
EBIT margin	16.3%	20.0%	-3.7 pp.	19.5%	23.6%	-4.1 pp.

* In the 2020 financial year, the Cherry AG Group did not yet exist in its current structure. Therefore, unaudited pro forma comparative figures of the Cherry AG Group are given for the prior-year period.

Growing throughout both business areas with mixed momentum

REVENUE GROWTH AT 31.3% YOY IN 9M 2021

• Sales in GAMING grew by 18.4% to €63.2m. in 9M
• Sales in PROFESSIONAL grew by 48.3% to €60.2m. in 9M, supported by B2C business, digital health roll-out and

* In the 2020 financial year, the Cherry AG Group did not yet exist in its current structure. Therefore, unaudited pro forma comparative figures of the Cherry AG Group are given for the prior-year period.

Profitable growth path

FY 2020*	9M 2021	FORECAST FY 2021
130.2	123.4	around 170
28.5%	29.6%	around 30%

Gaming Peripherals
Components (Switches)	+++
Professional Peripherals (Office & Industry)
Digital Health

* In the 2020 financial year, the Cherry AG Group did not yet exist in its current structure. Therefore, unaudited pro forma comparative figures of the Cherry AG Group are given for the prior-year period.

FORECAST SPECIFIED AS YEAR END COMES INTO FOCUS

• Strong revenue growth of 30%
• supply chain disruptions, particularly in China, and temporary fluctuations in the ordering behavior of customer
• Profitability forecast reiterated with an improved EBITDA margin of around 30%
• Multiple secular growth trends and underlying market dynamics support future growth

Established number one global market position for mechanical gaming keyboard switches

Innovation and quality leader with a track record of successful new product development

Blue chip customer base due to leading technology

Growth driven by multiple secular trends in underlying markets

Global distribution and scalable manufacturing footprint with high-performance production assembly machines

APPENDIX

9M 2021 was marked by high non-recurrent one-off effects

IN €M.		IN €M.

IN €M.		9M 2021 9M 2020*
Adjusted EBIT	25.6	19.2
+ Depreciation and amortization	11.0	7.5
Adjusted EBITDA	36.5	26.7
EBIT	20.1	18.8
+ Depreciation and amortization	11.0	7.5
FBITDA	31.1	26.3

* In the 2020 financial year, the Cherry AG Group did not yet exist in its current structure. Therefore, unaudited pro forma comparative figures of the Cherry AG Group are given for the prior-year period.

SHARE PERFORMANCE AND CURRENT SHAREHOLDER STRUCTURE

RELATIVE SHARE PERFORMANCE

SHAREHOLDER STRUCTURE

Disclaimer

This presentation contains forward-looking statements. These statements are based on the current views, expectations and assumptions of the management of Cherry AG and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those described herein due to factors affecting Cherry AG such as, among other things, changes in the general economic and competitive environment, capital market risks, currency exchange rate fluctuations and competition from other companies, and changes in international and national laws and regulations, in particular with respect to tax laws and regulations. Cherry AG does not assume any obligation to update any forward-looking statements.

The information contained in this presentation is for background purposes only and does not purport to be full or complete. No reliance may be placed, for any purpose, on the information contained in this announcement or its accuracy or completeness. The information in this presentation is subject to change.

Market & Industry Data

This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to the Company's industry, the Company's business and the market for the Company's products and its future growth. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions, and estimates of the Company's future performance and the future performance of the market for its products are necessarily subject to a high degree of uncertainty and risk.

General remark

Figures may not add up due to rounding.

THANK YOU FOR YOUR ATTENTION

Cherry AG

Dr. Kai Holtmann │ Head of Investor Relations

Einsteinstrasse 174 │ Bogenhausen 81677 München, Deutschland

E-Mail kai.holtmann@cherry.de Tel. +49 175 1971503 Fax +49 9643 20 61 900 Internet www.cherry.de