Cherry AG — Investor Presentation 2022

Jan 10, 2022

ANALYST PRESENTATION

DRAFT V6

Analyst Presentation – 3 May 2021

Zhuhai CHERRY Electronics Zhuhai City 86 FTEs 4,670 m²(thereof 3,120m² production and 1,550m² warehousing) CHERRY Europe GmbH Auerbach >350 FTEs 8,500m² (thereof 3,200m²production, 950m²warehousing) CHERRY Americas LLC Kenosha, WI 19 FTEs CHERRY S.A.R.L Paris 4 FTEs CHERRY Electronics Hong Kong Hong Kong 2 FTEs CHERRY Electronics Taiwan Taipei 2 FTEs Annual Floor Capacity: 1,100m Switches Annual Output (2021): 500m Switches Annual Capacity: 1,800k Keyboards Annual Output (2021): 850k Keyboards CHERRY's new HQ 54% 41% 5% APAC EMEA Americas H1 2021 Revenue(1) CHERRY London 1 FTEs CHERRY/Theobroma Vienna 27 FTEs Switches made in Germany Peripherals made in China Software made in Austria (1) Revenue by domicile of purchasing entity (not end customer) CHERRY/AK Pegnitz 19 FTEs CHERRY Stockholm 1 FTEs

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 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

AW410K RGB Mechanical Gaming Keyboard, Alienware

Encoder Gaming Keyboard, OMEN

ROG Strix Scope RGB Mechanical Keyboard, Asus

K70 RGB Mechanical Keyboard, Corsair

"CHERRY INSIDE" Distinguishes customer products to achieve premium pricing

1. ODDO BHF Forum 7

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.

SELECTED TOP KEYBOARD MANUFACTURERS & MECHANICAL KEY SWITCH SUPPLIER BRANDS

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

ULTRA LOW PROFILE SWITCH: CONSTRUCTION & INTEGRATION

by

Slim & Lightweight (2021)

▪ Price: ~EUR 1,500

▪ Height: 21mm

Alienware M15 R4

▪ 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

• ODDO BHF Forum 10

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.

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

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

1. ODDO BHF Forum 14

50,7 61,4 73,5 Ca. 170 49,2 53,4 56,7 0 20 40 60 80 100 120 140 160 180 2018* 2019* 2020* 2021[e] GAMING PROFESSIONAL TRACK RECORD OF DOUBLE DIGIT GROWTH 0 20 40 60 80 100 120 140 Revenue (in €m) Revenue (in €m) CAGR: +14%

ACCELERATING REVENUE GROWTH

* 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.

IMPROVEMENT OF EBITDA MARGINS (ADJ.)

Revenue (in €m)

DEVELOPMENT OF PROFITABILITY LEVELS

* 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

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%
BUSINESS UNIT		UNDERLYING GROWTH DYNAMICS
Gaming Peripherals			++
Components (Switches)			+++

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.

FURTHER OUTLOOK

• Multiple secular growth trends and underlying market dynamics 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

RELATIVE SHARE PERFORMANCE

SHAREHOLDER STRUCTURE

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

OPERATIONAL MEASURES FOR ORGANIC GROWTH

• Increase number, knowledge and expertise of employees
• Advance Research & Development activities
• Expand marketing activities in B-2-B and B-2-C markets
• Increase capacity and degree of automation in production

STRATEGIC ELEMENTS FOR M&A

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

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, other peripherals, ergonomic devices, etc.

Global gaming market

Global professional input devices market

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

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