Cherry AG

Investor Presentation • Jun 17, 2024

CHERRY SE Investor Presentation

LUGANO ROADSHOW 17 & 18 June 2024

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 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 to factors affecting Cherry SE such as, among other things, changes in the general economic and competitive environment, captal market risks, currency exchange rate fluctuations and companies, and changes in international and national laws and requlations, in particular with respect to tax laws and requations. Cherry SE does not assume 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 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 Company's products and its future growth. This data involves a number of assumptions and limitations, and you are cautioned not to such estimates. In addition, projections, assumptions, and estimates of the Company's 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.

COMPANY OVERVIEW

್ನಾರವ

WHO WE ARE

Our Promise

CHERRY is a globally operating developer and manufacturer of high-end input devices and solutions.

With our hardware, software and cloud services, we enable people to participate in the digital world.

Solution-driven and customer focused, CHERRY continually strives to learn and create. We are inspired to provide responsibly developed products. With our hardware, software and cloud services, we enable efficient and reliable participation in the digital world.

With us, you enter excellence.

WHO WE ARE

Our Markets

WHAT WE DO

Our Signature Products

Keyboards and Mice

STREAM Series Our bestseller for more than 15 years, designed and developed for office environments and hygiene.

Microphones

UM Microphone Series Our pioneering products of a new category, increasing the CHERRY Ecosystem.

Switches

MX Switches

Our famous mechanical switches that set the gold standard for keyboards and which we continually reinvent.

Our Signature Products

eHealth

eHealth Terminal ST-1506 Market Leader in newly sold eHealth terminals across Germany.

Robotics

Tiger Our System-on-Module (SOM) provides Al capabilities for autonomous mobile robots or IoT applications.

Software and Cloud

7

SmartLink

The SaaS enables fully mobile e-prescriptions and is the foundation for additional eHealth services.

Our Commitment to User Centricity

User Driven

Development

Customized Solutions

We value the individual. We offer numerous ways to customize our products from keyboards to loT-devices.

We value user knowledge, developing products in close collaboration from gaming devices to single-board computers.

We value reliability. For us, reliability does not only mean durability, but also being there when you need it.

Outstanding

Client Support

Highly Ergonomic Design

We put the health of our user center stage. Our products are designed to make interaction as natural as possible.

A Selection of Awards We Won

Juries worldwide have honored the outstanding quality of our products and services, their highly innovative design, our focus on sustainability and customer satisfaction.

Red Dot Award recognizes design excellence.

The German Design Award highlights innovative design and developments in circular economy.

IF Design Award

is one of the most prestigious and relevant design competitions in the world.

The German Innovation Award honors products, projects, and achievements that sustainably improve life.

Founded by

1953

Walter Cherry

>70 Years of US Innovation and German Engineering

Invention of worlds

first mechanical

switch (MX)

1983

leading eHealth terminal Extended portfolio to include hygiene desktops

Launch of Germany's

IPO

2021

MX Ultra Low Profile Switch

Introducing SaaS and Cloud services in healthcare

2024

1973

Start of production of the first keyboard

1994 - 98

First healthcare keyboard in Germany

First ecological keyboards

2020

MX Low Profile

Switch

2018

Entering the robotics and loT markets with Cherry Embedded Solutions

Incorporation of gaming brand XTRFY

2022

11

CHERRY Worldwide

We are an international powerhouse.

Our design, development and manufacturing teams work across 4 countries.

Our core sales network spans 30+ countries, with numerous more countries supplied by distribution partners.

Cherry SE

Our Global Development & Production

Innovation for MX and ULP product lines as well as development and production of MX2 and UI P switches

Cherry Embedded Solutions / Austria

Development / manufacturing of System-on-Modules (SoM), Single-Board Computers (SBC) and Full-Custom Design Devices (FCD)

Development and production of office and qaming hardware

Zhuhai

Zhuhai Cherry

Electronics / China

BUSINESS UPDATE

12

* GOP = Gaming and Office Peripherals, DH&S = Digital Health & Solutions, COMP = Components

COUNTERMEASURES INITIATED TO INCREASE FINANCIAL PERFORMANCE

MX2A Switch

• FY 2023: Project North
• FY 2024: Full implementation
• = Cost savings: € >5,5m p.a.

Management

▪ Intense and strict cost and cash management to improve financial strength

New Partners

• Focus markets: DACH, France, UK, Netherlands, Spain, Americas, China
• Additional direct & . distribution partners: Media Markt / Saturn, Elgiganten, Fnac&Darty and Dixons

FINAL STEPS WERE TAKEN TO CLOSE THE CHAPTER OF OVERPROMISING & UNDERDELIVERY

BUSINESS STRATEGY -IT'S ALL ABOUT EXECUETION & RELEVANCE

2024 revenues € 140m - € 150m EBITDA margin 7-8% driven by organic growth

Strict cost management Restructuring program Streamlined product portfolio Debt reduction & internal financing

COST AND LIQUIDITY MANAGEMENT

PROFITABILITY

Focus on growth areas & innovation Trends: Esports, hybrid work, dynamic healthcare market. Additional distribution partners

MARKET ALIGNED SEGMENT STRUCTURE

* GOP = Gaming and Office Peripherals, DH&S = Digital Health & Solutions, COMP = Components

OUTLOOK

19

DIVISIONS POSITIONED FOR GROWTH

Components

keyboard & notebook switches

Switch Business

• Start of China assembly for partner products by mid-year to drive pricing flexibility and regain tracking with Global Keyboard brands
• Successfully launched first keyboard and peripheral devices with MX Multipoint analog switch at COPMPUTEX trade fair in Taipei
• Global market share expected to recover from the current c. 10%

MX CHERRY

Gaming and Office Peripherals

keyboards / mice / headsets / microphones

Peripherals

• Improved resource allocation in focus markets
• New distribution partners and retail listings
• Inventory management on track
• Share of direct contracts to rise further
• Successful XTRFY product launches

Digital Health & Solutions

eHealth terminals / encryption & disinfection devices

Health & Security

• High eHealth terminal market share complemented by TMS kicking in
• Continued dynamics in terminal sales driven by new customer groups
• Promising leap across the Atlantic of Protected Peripherals

FY OUTLOOK: DOUBLE DIGIT TOPLINE GROWTH

OUTLOOK FY 2024: PROFITABILITY TO INCREASE BY C. 5.9PPT. YOY

IR CONTACT

NICOLE SCHILLINGER SVP INVESTOR RELATIONS

Email: nicole.schillinger@cherry.de Phone: +49 9643 2061 848 Web: https://ir.cherry.de