Investor Presentation • Mar 30, 2023
Investor Presentation
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MARCH 30, 2023
Oliver Kaltner - CEO
Bernd Wagner - CFO Dr. Udo Streller - COO
Oliver Kaltner brings in management experience from companies such as Leica Camera AG, Microsoft, Sony, and Electronic Arts, running global businesses with operations in EMEA, APAC and the Americas.
"Oliver Kaltner has a proven track record in highly successful global companies, with experience in operations, product innovation, marketing, sales, service, brand management, M&A and strategy. He is a change agent, having driven innovation and transformation for iconic brands along the value chain of hardware, software and cloud-services." Marcel Stolk, Chairman of the Supervisory Board
* With effect from January 1, 2023.
| MARKET | MANAGEMENT | 2023 – | PRODUCT |
|---|---|---|---|
| CHALLENGES | ACTIONS | A TRANSITION YEAR | SEGMENTS |
| INTER NATIONALIZATION |
M & A | PEOPLE & CULTURE |
Disappointing Fiscal year 2022 with low sales forecast visibility the whole year
| in €m/ as indicated |
FY 20* | FY 21 | FY 22 | ∆ 21/22 |
Q4/21 | Q4/22 | ∆ 21/22 |
|---|---|---|---|---|---|---|---|
| Revenue | 130.2 | 168.5 | 132.5 | -21 4% |
45.1 | 34.5 | -23 5% |
| Gross profit |
50.8 | 68.9 | 36.9 | -46 5% |
18.0 | 5.6 | -68 8% |
| Gross profit margin in % |
39.0% | 40.9% | 27.8% | -13 1pp |
39.9% | 16.3% | -23.6pp. |
| OPEX | -25.8 | -41.3 | -73.4 | +77 9% |
-10.5 | -42.2 | +302 6% |
| EBIT | 25.0 | 27.6 | -36.5 | 7.5 | -36.6 | ||
| Depreciation & Amortization |
10.3 | 15.2 | 15.3 | +0 5% |
4.2 | 3.7 | -11 4% |
| Impairment GW / Viola |
- | - | 33.4 | - | 33.4 | ||
| Adjustments | 1.8 | 6.1 | 3.0 | 0% -51 |
0.6 | 1.1 | +73 0% |
| EBITDA (adj.) |
37.1 | 48.9 | 15.2 | -68 9% |
12.3 | 1.6 | -87.2% |
| EBITDA margin (adj.) in % |
28.5% | 29.0% | 11.5% | -17 5pp |
27.3% | 4.6% | -22.7pp. |
* Basis: Unaudited condensed consolidated interim financial statements of Cherry Holding GmbH
Cyclical downturn and changes in product mix impacted revenue and profitability
Lower switch demand due to high customer inventory and minikeyboard trend
Office sales grew by 10,8% to previous year fueled primarily by office and industry products and Security & PoS products
* Basis: Unaudited condensed consolidated interim financial statements of Cherry Holding GmbH
Profitability declined primarily due to macroeconomic headwinds, cyclical decline of switch sales and one-off impairment write-off
17.0% PROFESSIONAL EBITDA MARGIN (adj.) DOWN 5,9 pts yoy due to:
-0.7% GAMING EBITDA margin (adj.) DOWN by 36,1 pts yoy due to:
Management will realign Cherry´s cost structure to our top line going forward
EXPENSES (IN €M.) & EXPENSE RATIOS (IN %)
Scaled expansion and innovation of product portfolio continued to create successful future products
Digitalization of processes
Administration Marketing and Selling Research and Development
Enables further organic and inorganic growth opportunities within the long-term secular trends
TOTAL GROUP ASSETS OF 379.1 m€
* Current assets (without cash and cash equivalents) less current liabilities (without financial liabilities)
Target to adjust in 2023 the DIO to the normalized supply chain
Enables further organic and inorganic growth opportunities within the long-term secular trends
TOTAL GROUP ASSETS OF 379.1 m€
* Current assets (without cash and cash equivalents) less current liabilities (without financial liabilities)
| in €m/ as indicated |
FY 22 | FY 21 | +/- |
|---|---|---|---|
| Net result | -35.7 | 9.3 | -45.0 |
| Depreciation, amortization, impairment (+) on fixed assets |
47.8 | 15.0 | 32.8 |
| Increase (-) / decrease (+) in inventories, trade receivables and other assets |
-19.6 | -28.7 | 9,1 |
| Increase (+) / decrease (-) in trade liabilities and other liabilities |
14.6 | 3.8 | 10.8 |
| Increase (+) / decrease (-) others |
-1,3 | 8,4 | -9,7 |
| Operating Cash Flow | 5.8 | 7.8 | -2.0 |
| Investment Cash Flow | -11.3 | -14,4 | 3.1 |
| = Free Cash Flow | -5.5 | -6.6 | 1.1 |
| Financing Cash Flow | -11.2 | 92,4 | -103,6 |
| Cash at end of year |
92.8 | 109.7 | -16,9 |
Prudent forecast given low visibility – mid-term aim to return over 20% adj. EBITDA margin
| IN €M/ AS INDICATED |
FY 2022 | FORECAST FY 2023 | GAMING Double-digit revenue growth and a slightly higher adj. EBITDA margin (2022: - 0.7%) |
|---|---|---|---|
| Group revenue | 132.5 | 135 165 - |
PROFESSIONAL |
| EBITDA margin (adj.) |
11.5% | 10 14% - |
Single-digit revenue growth and a slightly lower adj. EBITDA margin (2022: 17.0%) |
RELATIVE SHARE PERFORMANCE
* Information is based on voting rights notifications pursuant to Art. 40, Para. 1 of the German Securities Trading Act (WpHG). ** Based on internal investor reporting to Cherry, not subject to disclosure. *** Includes 1.8% held directly and indirectly by the members of the Management Board.
| Date | No. of shares purchased |
Average price (in €) |
Purchased volume (in €) |
|
|---|---|---|---|---|
| SUBTOTAL Q2 |
215,318 | 9.0457 | 1,947,711.29 | |
| SUBTOTAL Q3 | 434,894 | 7.5458 | 3,281,642.40 | |
| SUBTOTAL Q4 | 256,905 | 6.1301 | 1,574,849.21 | |
| Cumulated | 907,117 | 7.5001 | 6,620,594.03 |
| DATE | EVENT |
|---|---|
| January 5/6 | ODDO Forum |
| February 8 | Hamburger Investorentag (HIT) |
| March 2 | Metzler Small- and MicroCap Days |
| March 10 | ODDO TMT |
| March 30 | Annual report / consolidated financial statements FY 2022 |
| May 15 | Interim report for Q1 2023 |
| May 15 | Equity Forum |
| May 17 | Annual General Meeting |
| June 16 | Warburg Highlights |
| August 14 | Half-year report 2023 |
| September 4/5 | Equity Forum |
| September 18/19/20 | Berenberg Flagship German Corporate Conference |
| November 15 | Interim report for Q3/9M 2023 |
| November 16 | Münchner Kapitalmarkt Konferenz |
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.
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.
Figures may not add up due to rounding.
Cherry SE Dr. Kai Holtmann │ Head of Investor Relations
Rosental 7 c/o Mindspace │ 80331 Munich, Germany
E-Mail Tel. [email protected] +49 175 1971503 Fax +49 9643 20 61 900 Internet https://ir.cherry.de
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