Cherry AG — Investor Presentation 2022

Feb 10, 2022

HAMBURGER INVESTORENTAG

Investor Presentation – February 10, 2022

BUSINESS AREA GAMING

• ▪
• ▪

• ▪

• ▪

• ▪

• ▪

• ▪

• ▪
• ▪
• ▪

➔

➔

➔

➔

➔

➔

HIT - February 10, 2022 9

THE CHERRY MX HISTORY

Innovation & Quality "Made In Germany"

THE CHERRY MX HISTORY

Innovation & Quality "Made In Germany"

11

K70 RGB Mechanical Keyboard, Corsair

OMEN/HP

ROG Strix Scope RGB Mechanical Keyboard, ROG/Asus

"CHERRY INSIDE" Distinguishes customer products to achieve premium pricing

HIT - February 10, 2022 12

• ▪
• ▪

• ▪

• ▪

• ▪
• ▪

▪

• ▪
• ▪
• ▪

CHERRY MX 2.0S, HC 2.2 and MC 2.1.

BUSINESS AREA PROFESSIONAL

• ▪▪▪

• ▪▪▪

- ▪▪▪

• State-of-the-art card terminal solution for workplaces in German healthcare telematics infrastructure

• Approved by gematik GmbH and introduced for all service providers in the German healthcare system
• iF Design Award 2021 in the category of medical devices

• Clinics/hospitals
• pharmacies
• dentist and doctor offices

• Continuously new customer groups added

• 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

HIT - February 10, 2022 18

IN €M/ AS INDICATED	FY 2020*	9M 2021	FORECAST FY 2021
Revenue	130.2	123.4	around 170
EBITDA margin (adj.)	28.5%	29.6%	around 30%

Components	+++
Gaming Devices	++
Peripherals	++
Digital Health	+++

• Underlying multiple growth drivers and mega trends support mid- and long-term growth
• Supply chain disruptions, particularly in China, and temporary fluctuations in the ordering behavior of customers expected to continue in H1/2022
• Investments in organic growth will be reflected by somewhat subdued profitability margins in FY 2022

STRATEGIC ELEMENTS FOR ORGANIC GROWTH

• Expand global innovation leader position
• Develop products at the edge of technology
• Expand leading premium brand presence
• Deepen global market penetration

INORGANIC GROWTH STRATEGY / M&A

• Focus on 4 existing business units
• Complementary products and markets
• Increase geographical strength
• Synergies for market access / sales channels

OPERATIONAL MEASURES FOR ORGANIC GROWTH

• Increase number, knowledge and expertise of employees
• Advanced innovation & development activities
• Expand marketing activities in B-2-B and B-2-C markets
• Increase capacity and degree of automation in production

M&A 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, microphones, other peripherals, ergonomic devices, etc.

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 mega trends in underlying markets

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