Cherry AG — Investor Presentation 2021

Nov 25, 2021

EIGENKAPITALFORUM

ANALYST PRESENTATION

DRAFT V6

Analyst Presentation – 3 May 2021 Investor Presentation – November 2021

DIVERSIFIED GLOBAL FOOTPRINT WITH HIGHLY AUTOMATED PRODUCTION

INTRODUCING OUR BUSINESS UNITS

WHY CHOOSE MECHANICAL SWITCHES?

Video gaming enthusiasts favour PC gaming keyboards with mechanical switches

" As in other sports, specialized high-performance gear, such as gaming keyboards, mice, headsets and performance controllers, allow digital athletes to perform their best. Modern video games reward the speed and precision of user inputs, driving demand for powerful gaming components and systems."

CHERRY IS THE CATEGORY INVENTOR & LEADER FOR QUALITY GAMING SWITCHES

CHERRY INVENTED THE MECHANICAL GAMING SWITCH IN 1983 AND HAS AN UNPARALLELED 35+ YEARS OF EXPERIENCE

1. Upper Housing

is a CAD high precision component made of plastic polymer ensuring precise movement of stem

2. Switching Slide / Stem

is a CAD high-precision component made of plastic polymer creating the pre travel and keystroke feel between the upper housing and coil spring

3. Gold Crosspoint Contact

is at the heart of every CHERRY MX key switch providing incredible reliability and durability through gold's selfcleaning and corrosion-resistant characteristics

4. Precision Coil Spring

High-density molecular structure, made of metal alloy defines pressure characteristics and operating force for each switch type

5. Housing Base

made of plastic polymer and glass fibre provides dualfunctionality with inner base for switch mechanism and outer base for mounting on keyboard

The Launch of the MX switch in 1983

ALL CHERRY SWITCH KEYBOARDS ARE CO-BRANDED "CHERRY INSIDE" & SOLE SOURCED

AW410K RGB Mechanical Gaming Keyboard, Alienware

Encoder Gaming Keyboard, OMEN

ROG Strix Scope RGB Mechanical Keyboard, Asus

Corsair

"CHERRY INSIDE" Distinguishes customer products to achieve premium pricing

Eigenkapitalforum 7

QUALITY LEADERSHIP DRIVES PREMIUM PRICE POSITIONING

WHY CHOOSE CHERRY SWITCHES?

Criteria
Gaming focus	✓✓✓	✓	✓	✓
Workmanship	✓✓✓	✓	✓✓✓	✓
Reliance	✓✓✓	✓✓	✓✓	✓
Responsiveness	✓✓✓	✓✓	✓✓	✓✓
Reputation	✓✓✓	✓	✓✓	✓
Innovation	✓✓✓	✓	✓✓	✓✓
Made in Germany	✓✓✓

CHERRY SWITCHES DRIVE PREMIUM PRICING FOR CUSTOMERS

Company Assessment(1) Price of gaming keyboards(in €)(2)

1. Sources: Company. Based on selected categories, March 2021

2. Source: Company web crawling, company analysis, April 2021

3. Based on retail prices (incl. VAT) in Germany, not weighted to account for number of sales for each keyboard

4. Source: Company, April 2021. Detailed information on price position of Omron and TTC is not available due to white labeling.

#1 CRITICAL SUPPLIER OF SWITCHES FOR ALL BLUE CHIP NAMES

SELECTED TOP KEYBOARD MANUFACTURERS & MECHANICAL KEY SWITCH SUPPLIER BRANDS

	Price category				by	by
	Premium Laptops >€1,500
D R A O B Y E K G N MI A G F O E C RI P	Premium ~€120–€300		GX Series by
	High ~€80–€120		Romer-G by	By (white label)
	Medium ~€40–€80		Niche keyboards
	Low ~€0–€40				source NEVER dual/multi-sourced	Keyboards ALWAYS sole and specified in	Keyboards ALWAYS co-branded "Cherry Inside" -	NEVER white labelled

NEW PRODUCTS 9M/21: THE CHERRY ULP SWITCH: MILESTONE INNOVATION LAUNCHED MARCH 2021

ULTRA LOW PROFILE SWITCH: CONSTRUCTION & INTEGRATION

by

Slim & Lightweight (2021)

Alienware M15 R4

• Price: ~EUR 1,500
• Height: 21mm
• Weight: 2.5kg

From Bulky & Heavy (2019)

MSI GT76 TITAN

• Price: ~EUR 3,800
• Height: 42mm
• Weight: 4.2kg

"With this model, the German-based company once again achieves a milestone in the development of switches."

- Techpowerup

KEY FEATURES

• Proven Cherry MX Gold Crosspoint Technology
• High switching frequency for fast gaming / typing
• Designed for cost saving SMD assembly production

Eigenkapitalforum 10

NEW PRODUCTS 9M/21: THE CHERRY ULP SWITCH MARKET FEEDBACK

KEY OPINION LEADER REVIEWS

Dave2D: "This is by FAR the best laptop keyboard ever made with mechanical switches"

Tom's Hardware: "Using Cherry MX Ultra Low Profile switches really takes the everyday typing experience to the next level"

Linus Tech Tips: "I would absolutely take these first. Cherry always impresses me with their attention to detail"

BRANDS & CUSTOMERS

• Dell: besides m15 and m17 R4 laptop platforms, now also shipping with new x17 laptop series
• Further laptop brands: 3 further major gaming laptop brands* confirmed to use ULP starting CY2022
• Further customers: 1 gaming brand* confirmed to use ULP starting CY2022 with a new Desktop Keyboard platform
  • * Projects are under NDA and brands can not be named yet

CHERRY MX 2.0S, HC 2.2 and MC 2.1.

NEW PRODUCTS 9M/21: THE CHERRY PERIPHERALS LAUNCHES

G80-3000N RGB TKL - launched 24.08.2021 -

The original updated: Classic keys, but with state-of-the-art electronics and in a space-saving housing.

STREAM KEYBOARD WIRELESS - launched 17.08.2021 -

The best STREAM ever as a wireless keyboard.

DW 9100 SLIM - launched 28.07.2021 -

Rechargeable designer desktop with many extra features.

Wired mechanical keyboard without number pad

Compact housing to help increase desk space

CHERRY MX technology – All keys are precision, Gold Crosspoint switches "Made in Germany"

KEY FEATURES KEY FEATURES KEY FEATURES

Maximum productivity: Super silent keystroke, unbeatable typing feel

Highest quality: Durable key labels, our own SX scissor mechanism

Optimum operating comfort: 3 integrated status indicators, non-slip rubber feet, 10 office & multimedia keys

Optionally connected using Bluetooth® or a 2.4 GHz wireless unit – both with AES-128 encryption

6 button mouse with optical sensor and switchable resolution (600/1000/1600 dpi)

Lithium batteries in the mouse and keyboard can be recharged using USB-C

Eigenkapitalforum 13

NEW PRODUCTS 9M/21: THE CHERRY HEALTHCARE TERMINAL:

EHEALTH TERMINAL ST-1506

• modern card terminal solution for workplaces in the German healthcare sector for telematics infrastructure
• approved by gematik GmbH and introduced for service providers in the German healthcare system in Q1 2021
• iF Design Award 2021 in the category of medical devices

For reception counters in

• Clinics
• pharmacies
• dentist and doctor offices

Additional sectors will follow

KEY FEATURES

• high-resolution color display enables optimal readability and intuitive operation

Easily disinfectable touchscreen glass surface for hygiene

optional patient PIN-Pad (PP-1516) can be easily connected via USB (launch 2022)

can be operated without a power supply via Power-Over-Ethernet

prepared for reading contactless cards by NFC interface

Eigenkapitalforum 14

WELL DIVERSIFIED BLUE CHIP CUSTOMER BASE

Source: Company

ACCELERATING ORGANIC GROUP REVENUE GROWTH

0

20

40

60

80

100

120

140

160

180

* 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.

Global gaming market

Global professional input devices market

STRATEGY

Focus on existing 4 verticals

Complementary excellent products close to existing portfolio and markets

Synergies regarding market access and sales channels (international / regional)

TARGET PROFILE

• Geographic: USA, Europe, Asia
• Revenue: EUR 15m EUR 35m
• EBITDA / EBIT margins: double digit (%)
• Product Areas: complementary products e. g. headsets, mice, video collaboration, other peripherals, ergonomic devices, etc.

ACQUISITION PIPELINE

First discussions with potential targets initiated

4 - 5 Expect to acquire 1-2 targets until mid 2022

1-2 ACQUISITIONS

3 ▪ THEOBROMA – OCTOBER 2020

European developer & manufacturer with expertise in IoT, Industry 4.0 and Software Engineering

1-2 ▪ ACTIVE KEY – MAY 2021

European manufacturer of hygienic, anti-dust, washable keyboards & mice

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

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

Growth driven by multiple secular trends in underlying markets

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