CHERRY

CHERRY SE

HAMBURGER INVESTORENTAGE

HAMBURG, 5 FEBRUARY 2025

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.

FROM A HIGH-COST SWITCH PRODUCER TO AN INTEGRATED PERIPHERALS PLAYER

VOLUME DRIVEN

SWITCHES AT THE CORE

MARGIN DESTROYING DISTRIBUTION AGREEMENTS

PRICE EROSION ON GREY MARKET

TOO MANY LEGAL ENTITIES

$\square$

RESTRUCTURING YEARS

SWITCH ASSEMBLY TO CHINA

NEW MARGIN AND PRICE MODEL FOR PERIPHERALS

SWIOLOUD BUSINESS MODELS IN DHAS

INTEGRATION AND STREAMLINING OF GROUP STRUCTURE

MARGIN DRIVEN

SWITCHES INTEGRATED INTO PRODUCT MANAGEMENT

NEW PARTNER PROGRAM EFFECTIVE JAN 25

COMBINED SALES AND MARKETING FOR OFFICE, GAMING, HYGIENE, AND SECURITY PERIPHERALS

OUR MARKETS

OUR GLOBAL DEVELOPMENT \& PRODUCTION

Cherry SE

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

Cherry Embedded Solutions / Austria

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

Zhuhai Cherry Electronics / China

Development and production of office and gaming hardware

Cherry XTRFY / Sweden

Design and development of gaming devices

TWO-MEMBER EXECUTIVE BOARD

Oliver Kaltner, CEO
Experienced CEO with proven track record in IT, digital, consumer electronics and branded companies, both in large corporations and SMID as well as start-ups.

Dr. Udo Streller, COO
More than 20 years of management experience in operational excellence, including constructing and managing factories, R\&D, product management, supply chain management procurement.

DIVISIONAL UPDATE

CLEAN-UP AND RAMP-UP

Restructuring Update

e-com

APAC

From sell-in to pay-for-performance; reseller bonus driven by sell-out
Abandoning low-margin deals as of Q4 24 increased average street price
Ongoing SKU reduction to refocus on high margin products
December sell-out up sharply y-o-y
Strong Black Week
December sell-in above expectations
FY 2024 targets achieved
Distribution successfully diversified
Intensified competition in entry segment
Local sales to be hired for South Korea
Retail activation: CHERRY displays in 170 MediaMarkt outlets since February
CHERRY XTRFY: MediaMarkt online listing
New Sales and Marketing unit for all Peripherals should foster growth in North America
Amazon 2024 up > 20\% y-o-y
Gaming: strong growth in mice, while keyboards were flat
Magnetic keyboard to be launched in H2 25
Category expansion to mice and headsets in 2025
New Shanghai office to attract and maintain talent

GAMING AND OFFICE LAUNCHES AT CES

RED BULL GAMING GARDEN SPONSORSHIP

NEW E-SPORTS HOTSPOT AT SAP GARDEN IN MUNICH EQUIPPED WITH XTRFY PERIPHERALS ... LOCATED UNDER CHERRY BLOSSOM TREES

DH\&S BENEFITTING FROM REGULATION

Focus

Terminals

Recurring Revenues

Strong benefit from connecting new healthcare professionals to TI
Beginning refresh cycle for existing users in the German healthcare system
Digital Health market expected to grow at a 10\% CAGR over the next decade
Joint sales and marketing for Hygiene \& Security and Office \& Gaming keyboards
eHealth terminal refresh cycle for major roll-outs in 2018-2020 ramping up
TI Messenger: strong push expected from ePa rollout
Terminal Management System (TMS): first contracts signed; extra demand to stem from additional professions
SmartLink:
$\checkmark$ Product approval received in October 24
$\checkmark$ Provider approval slightly delayed due to extremely high requirements for submitted documents; expected for mid Q1 25

DIGITAL HEALTH MARKET TO GROW C. 10\% P.A. UNTIL THE END OF THE DECADE

DIGITAL HEALTH MARKET REVENUE EUROPE AND GERMANY (in EUR bn)

GLOBAL DIGITAL HEALTH MARKET (in EUR bn)

Digital Fitness \& Wellbeing
Digital Treatment \& Care
Online Doctor Consultations

COMPONENTS - MIXED PICTURE

Chinese Operations

New MX2A toolings and plastic parts in place since Sep 2024
... together with design improvements further increased quality
Production at full capacity since Dec 2024
Business with Asian keyboard manufacturers gaining traction

Product

Pipeline

Market

Metabook end market still lackluster, thus limiting ULP momentum
Mechanical keyswitch market challenging with Chinese competition fighting over 0.1 cent cost differences
Launch of community switches in Q1 25 (Cherry Blossom and Cherry Northern Light)

Accelerating market dynamics and evershorter product cycles in China

LP switches gaining traction in the desktop / office market
Analog switches gaining popularity
Increasing volumes of Inductive Key Switch

GERMANY CLEARLY THE GROWTH LAGGARD

GERMAN REAL GDP GROWTH 2013 - 2024 (in \%)

201320142015201620172018201920202021202220232024

GDP GROWTH ASSUMPTIONS 2025e (in \%)*

Source: Berenberg Economics Research, Forecasts at a Glance, 13 January 2025

EUROPE HAS FALLEN BEHIND - GAP IS GROWING

Number of world-class patents in advanced digital technologies

With $0.7 \%$ of GDP the EU's public R\&D spending equals that of the US
$>$ US private sector R\&D spending however, almost twice as high at $2.3 \%$ of GDP (vs. $1.2 \%$ in the EU)

LOW CONSUMER CONFIDENCE AND HIGH UNCERTAINTY IN GERMANY

CONSUMER CONFIDENCE SUFFERING ANOTHER SETBACK (from Sep 2022 to Feb 2025)

NEWS COVERAGE ABOUT POLICY-RELATED ECONOMIC UNCERTAINTY (Jan $2001=100$ )
1.000
800
600
400
200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024

EUR 3.5M COST CUTTING PROGRAM

C. EUR 3.5 M SAVED FROM SEP TO DEC 2024

MARKETING

SERVICES

IT PROJECTS

FY 2024 FORECAST

2024 REVENUES* C. EUR 120M

2023

2024

2024 ADJ. EBITDA* MGN. OF C. 3\%