CHERRY\$

CHERRY SE

Q2/H1 RESULTS INVESTOR PRESENTATION

6 AUGUST 2024

LEGAL DISCLAIMER

This presentation contains forward-looking statements.
These statements are based on the current views, expectations and assumptions of the management of Cherry SE 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 SE 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 SE does not assume any obligation to update any forwardlooking 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 herein 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.

Q2/H1 2024 HIGHLIGHTS

CEO OLIVER KALTNER

H1 PERFORMANCE UNDERPINS REVITALIZATION

FINANCING
SECURED

EARLIER START OF CHINESE ASSEMBLY

HEALTHY INVENTORY LEVELS

DH\&S
PLATFORM
OWNERSHIP

ALIGNMENT OF SALES AND CONTROLLING

"MARGIN OVER VOLUME" LED TO LFL SEQUENTIAL INCREASE IN PROFITABILITY

Q2/H1 2024 FINANCIALS

EVP FINANCE \& IT VOLKER CHRIST

Q2 ADJ. EBITDA MGN. UP 2.3PPT. SEQUENTIALLY

H1 REVENUE
(in EUR m)

H1 2022

H1 Revenue slightly up y-o-y
$>$ Q2 Revenue up $3.2 \%$ q-o-q, but slightly down y-o-y as

we declined high volume / low margin deals
Americas started slowly
Components faced an order delay into Q3
$>$ Q2 Margin at $5.1 \%, \mathrm{l}-\mathrm{f}-\mathrm{l}^{}$ on previous Q2's level and burdened by one-offs of c. EUR 0.8m*

H1 ADJ. EBITDA***
(in EUR m; mgn. in \%)

like-for-like, i.e. without Q2 2023 revaluation effect of EUR 2.8 m , when inflation led to higher valuation of inventory / finished goods ** One-off effects include additional audit costs, the renegotiation of the loan and associated costs of legal advice. *** Rounding errors may occur

SEGMENTAL OVERVIEW

REVENUE SPLIT (in EUR m)

HEALTHY BALANCE SHEET RATIOS DESPITE EUR 96M IMPAIRMENT AS OF DEC 2023

DIVISIONAL AND RESTRUCTURING UPDATE COO DR. UDO STRELLER

"PROJECT NORTH" RESTRUCTURING ON TRACK

MX2 assembly right at the epicentre of global keyboard production

Resilient, fast \& environmentalfriendly Supply Chain setup

Switch assembly for 3rd parties: Plastics from China, major metal parts Made in Germany

Ramp-up progress runs well and smoothly

COMPONENTS - SET FOR RECOVERY

Back to competitive pricing

Customers' new

products:

MX Multipoint KB
Fightstick MX Multipoint

GAMING AND OFFICE PERIPHERALS REFOCUSED

Expand Retail

Reach:
New agreements and wider distribution

Pricing

Strategy:
Prioritize margin over market share

Core Market Focus:
Prioritize primary markets

Healthy

Inventory:
Maintain optimal stock levels

Optimize
SKUs:
Reduce lifecycle and streamline core SKUs

DH\&S AT CORE OF OUR TRANSFORMATION TO A DIGITAL ECO SYSTEM

Benefit from progressing digitisation in healthcare

Building up new asset-light revenue streams

75\% market share in new terminal sales

Q2 strongest quarter ever for our Hygiene \& Security unit

New and replacement business

Robust demand and supply management in place

OUTLOOK

CEO OLIVER KALTNER

CHALLENGES

Deteriorating Macro Environment

German consumer sentiment* stagnating at very low level
Euro Area composite PMI down to 50.9 in June, after rising in every month of 2024
$>$ UK composite PMI on lowest level in 7 months

Low Predictability of Container Shipping Availability

Container run ahead of US election
$>$ Red Sea Shipping Turmoil
$>$ Longer transport time from China to Europe
$>$ Shortage of freight capacities
$>$ Elevated container prices

OPPORTUNITIES

COMPONENTS

$>$ Market potential of new switches
$>$ Additional demand from completely new devices
$>$ Full cost synergies from Chinese assembly
$>$ Additional OEM signings in H2 2024

GOP

Focus on core markets
$>$ Minimize product variations
$>$ Emphasize wireless
$>$ Increase D2C
$>$ Boost operations and presence in Americas
$>Q 4$ specific production for Chinese gaming mkt.

DH\&S

$>$ Recurring revenue from new \& asset light offerings
$>$ New terminal customer groups
$>$ ePat from 15 Jan 2025
$>$ Sales synergies
Hygiene \& Security

GROUP

Brand relaunch to increase customer awareness
$>$ Rigid margin, cost, and EBITDA steering via synchronised data
$>$ Stricter receivables and working capital management