WELCOME TO CHERRY'S

ANALYST & INVESTOR DAY

25 April 2024

1

FORWARD LOOKING STATEMENTS

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 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 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.

Cherry SE Analyst & Investor Day

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AGENDA

2:00 p.m. Welcome & Agenda, Head of IR Nicole Schillinger

2:05 p.m. Overview of the company's situation, CEO Oliver Kaltner

2:15 p.m. Presentation of selected 2023 financial data, Interim CFO Volker Christ 2:30 p.m. Presentation Q1, 2024, Interim CFO Volker Christ

2:35 p.m. Roadmap 2025: Status report on implementation, CEO Oliver Kaltner 2:45 p.m. Update on Business Units, CEO Oliver Kaltner

3:00 p.m.BREAK

3:05 p.m. Transformation update, COO Dr. Udo Streller

3:15 p.m. Outlook, CEO Oliver Kaltner

3:30 p.m. Q&A, Facilitator Nicole Schillinger

4:00 p.m. End of Event

Cherry SE Analyst & Investor Day

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EXECUTIVE TEAM IN THE ROOM FOR YOU TODAY

Oliver Kaltner

Udo Streller

CEO

COO

Experienced CEO with proven

More than 20 years of

track record in IT, digital,

management experience in

consumer electronics and

operational excellence, including

branded companies, both in

constructing and managing factories,

large corporations and SMID as

R&D, product management, supply

well as start-ups.

chain management procurement.

NON-EXECUTIVE

Volker Christ

Interim CFO

Extensive management

experience in international CFO

positions and other finance

responsibilities for listed and non-

listed companies in various

industries.

Cherry SE Analyst & Investor Day

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Oliver Kaltner, CEO CHERRY SE

STATE OF PLAY​

Cherry SE Analyst & Investor Day

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TAKING FINAL STEPS TO CLOSE THE CHAPTER OF OVERPROMISING & UNDERDELIVERY

Management taking action to turn around

Cherry

  • 2023 marks Cherry's turn of time, from overpromising until 2023 to delivery from 2024 onwards
  • Successful clean up of operating structure by COO Dr. Udo Streller
  • Streamlining of financial structure and processes by Interim CFO Volker Christ in progress

Financing secured

Contract with lending bank valid unchanged until mid-2026

Prudent and conservative balance sheet adjustment

  • Impairment of approx. € 96m signalling our conservative stance
  • We gave the new auditor an additional two to three weeks to finalize the audit.

Resulting shifts on the timeline

  • Release of audited annual report 2023 postponed to 22 May
  • AGM postponed to 24 July

Cherry SE Analyst & Investor Day

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A CHALLENGING FINANCIAL YEAR

Adj. EBITDA

Cash &

Revenues

Adj. EBITDA

margin

equivalents

€ 126.5m

€ 2.1m

1.6%

€ 46.1m

COUNTERMEASURES TO INCREASE PERFORMANCE

MX 2

Multi-level

Strict cost

Optimization

Brand

Corporate

Switch

distribution

and cash

of financial

relaunch

culture

partnerships

management

processes

initiative

Cherry SE Analyst & Investor Day

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IN 2023 WE HAVE FAILED TO MEET OUR OWN STANDARDS

Revenues: € 126.5m

  • Target Revenue of € 140m not met
  • GOP*: Demand growth in computer peripherals fell short of own expectations as customers reduced their inventory; sales forecast accuracy in H2 significantly behind H1
  • DHS*:Delay in sales of TI terminals and PIN-Pads
  • COMPONENTS: MX1 switch no longer competitive

Adj. EBITDA: € 2.1m

  • Adj. EBITDA margin: 1.6%
  • Adj. EBITDA target of 10 % not met
  • EBITDA adjustments predominantly restructuring costs for personnel and write- down machinery.

*All financial KPI as of December 31, 2023

** GOP = GAMING & OFFICE PERIPHERALS, DHS=DIGITAL HEALTH & SOLUTIONS

Cherry SE Analyst & Investor Day

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COUNTERMEASURES INITIATED TO INCREASE FINANCIAL PERFORMANCE

MX 2 Switch

  • FY 2023: Project North
  • FY 2024: Full implementation
  • Cost savings: € >5,5m p.a.
  • 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: MediaMarkt/Saturn, Elgiganten, Fnac&Darty and Dixons

CASH & COSTS*: SUFFICIENT LIQUIDITY AVAILABLE

•

Cash and cash equivalents: € 46.1m

•

€ >10m cost reduction program initiated

•

Trade working capital**: € 75.2m

•

Implementation well underway

  • Positive assessment of business model by principal bank

*All financial KPI as of December 31, 2023

** Inventories + Trade Receivables ./. Trade Payables

Cherry SE Analyst & Investor Day

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BUSINESS STRATEGY - ITS ALL ABOUT EXECUTION & RELEVANCE

2024e revenues € 140m - € 150m

EBITDA margin 7-8% driven by organic growth

Strict cost management

Restructuring program

Streamlined product portfolio

Debt reduction & internal financing

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

Profitability

Cost and Liquidity Management

Market Aligned Segment Structure

Cherry SE Analyst & Investor Day

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Disclaimer

Cherry SE published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 April 2024 05:29:04 UTC.