Cherry Se · XETR:C3RY
Cherry — Hamburger Investorentag 2024
23 slides from Cherry's conference presentation, Feb 7, 2024
Slide 1: Hamburger Investorentage
7 February 2024 HAMBURGER INVESTORENTAGE
Slide 2: Market relevance based on a strong legacy
MARKET RELEVANCE BASED ON A STRONG LEGACY Business development on the foundation of global mega trends Gaming / E-Sports Work from anywhere Digital Healthcare • > 70% German market share in new HW • > 3bn gamers worldwide • > 2/3 of Germans prefer hybrid workplaces sales • Individualization trend •
Slide 3: Cherry – 70 years of relevance, transformation & innovation
CHERRY – 70 YEARS OF RELEVANCE, TRANSFORMATION & INNOVATION Cherry starts Cherry launches its Cherry is reorganized The new factory and manufacturing first health card into 2 business areas corporate HQ building The ‚MX‘ key switch is with 2 business units. Launch of new UM computer keyboards. keybo
Slide 4: Management Board
MANAGEMENT BOARD Oliver Kaltner, CEO Mathias Dähn, CFO Udo Streller, COO Experienced CEO with proven Extensive management > 20 years of management track record in IT, digital, experience in finance experience in operational consumer electronics and functions such as auditing and excellence, includin
Slide 5: Internationalization and digitization to drive growth
INTERNATIONALIZATION AND DIGITIZATION TO DRIVE GROWTH Supported by constant cost control und inventory management STRATEGIC FOCUS CORE TARGETS • Combination of profitable organic & and strategic non-organic growth • Strict cost control • Leverage digitization of German healthcare • Agile treasury se
Slide 6: Introduction of our business and strategic outlook - B2B2C
INTRODUCTION OF OUR BUSINESS AND STRATEGIC OUTLOOK - B2B2C Innovative and high-quality products & services that are specially developed for specific customer needs Switch business Peripherals for gaming and (hybrid) office Health & security Components Gaming and Office Peripherals Digital Health & S
Slide 7: Cherry legacy: High-end peripherals for gaming, creators and office
Gaming & Office Peripherals Digital Health & Solutions Components CHERRY LEGACY TOUCH IT. FEEL IT. LOVE IT. Gaming Devices Peripherals Keyboards / Mice / Headsets Keyboards / Mice / Microphones High-end peripherals for Gaming/ E-Sports, Creators and (hybrid) Office 7
Slide 8: Internationalization to secure further growth
Gaming & Office Peripherals Digital Health & Solutions Components INTERNATIONALIZATION TO SECURE FURTHER GROWTH Country expansion, multi-channel approach and various partnerships leverage strong growth potential Direct business on 3 continents with 30 countries covered • Country expansion and deepen
Slide 9: Recent product release highlights – portfolio optimization
Gaming & Office Peripherals Digital Health & Solutions Components RECENT PRODUCT RELEASE HIGHLIGHTS – PORTFOLIO OPTIMIZATION New product innovations in peripherals serve as ambassadors for latest CHERRY switch technology CHERRY KW 7100 MINI BT keyboard – ready for use anywhere • Multi-device functio
Slide 10: Cherry legacy: Driver & enabler for healthcare digitalization
Gaming & Office Peripherals Digital Health & Solutions Components CHERRY LEGACY TOUCH IT. FEEL IT. LOVE IT. Digital Health & Solutions E-health terminals / encryption & disinfection devices Driver & enabler for healthcare digitalization 10
Slide 11: 5 pillar strategy of Cherry Digital Health & Solutions
Gaming & Office Peripherals Digital Health & Solutions Components 5 PILLAR STRATEGY OF CHERRY DIGITAL HEALTH & SOLUTIONS Expanding portfolio, revenue sources, and geographic footprint – enabling digital transformation by M&A Transformation towards platform of HW, SW & Cloud Services Core Services Va
Slide 12: Cherry at the sweet spot of future digital healthcare market
Gaming & Office Peripherals Digital Health & Solutions Components CHERRY AT THE SWEET SPOT OF FUTURE DIGITAL HEALTHCARE MARKET Digitization of German healthcare system unlocks potential for additional recurring revenues via SaaS Momentum of digitization of the German healthcare system is picking – d
Slide 13: Cherry legacy: World leading switch technology
Gaming & Office Peripherals Digital Health & Solutions Components CHERRY LEGACY TOUCH IT. FEEL IT. LOVE IT. Components Keyboard Switches / Notebook Switches World leading switch technology 13
Slide 14: Inventor & innovation leader for mechanical switches
Gaming & Office Peripherals Digital Health & Solutions Components INVENTOR & INNOVATION LEADER FOR MECHANICAL SWITCHES The CHERRY legacy: the first snap-action switches were produced in 1953 Driving innovator for mechanical switches for 70 years MX2A – the new Gold Standard for mechanical keyboards
Slide 15: Components – switches go OEM and multi-country production
Gaming & Office Peripherals Digital Health & Solutions Components COMPONENTS – SWITCHES GO OEM AND MULTI-COUNTRY-PRODUCTION From indirect business to direct business Cherry’s extra opportunity Common plans OEM brands are trying to reduce their dependence on China for sourcing and production and are
Slide 16: Overview realignment of components business unit
Gaming & Office Peripherals Digital Health & Solutions Components OVERVIEW REALIGNMENT OF COMPONENTS BUSINESS UNIT Market relevance, innovation leadership, product quality, volume solutions, price expertise and profitability Location Auerbach, Germany (Cherry owned) Global innovation centers for gam
Slide 17: We missed our FY sales and earnings forecast
WE MISSED OUR FY SALES AND EARNINGS FORECAST Profitability burden of switch business and weaker than expected sales momentum in peripherals YOY REVENUE AND MARGIN DEVELOPMENT FORECAST MISS DRIVEN BY SEVERAL FACTORS EUR 132.5 m EUR 126 m - 5% • Demand growth in computer peripherals fell short of Cher
Slide 18: Challenges are addressed and corrective measures implemented
CHALLENGES ARE ADDRESSED AND CORRECTIVE MEASURES IMPLEMENTED Q4 wake-up call fosters even faster execution of personnel and process solutions Management Action Plan Components Restructuring Measures and Impact Senior Management Changes to further professionalize Distribution and Finance Split of ear
Slide 19: Appendix
APPENDIX a . CHERRY@
Slide 20: Shareholder structure
Own Shares 4,6% Paladin AM* 3,3% The Capital Group**** 4,8% Lemanik AM* 5,3% Remaining free float*** 51,2% Argand Partners Fund GP- GP** 30,8% * Information is based on voting rights notifications pursuant to Art. 40, Para. 1 of the German Securities Trading Act (WpHG). ** Based on internal investor
Slide 21: Financial calendar 2024
FINANCIAL CALENDAR 2024 DATE February 7 March 28 April 9/10 April 23 May 8 May 13-15 June 14 August 14 September 2/3 November 14 November 18/19 4 EVENT Hamburger Investorentag Annual Report 2023 Virtual US Roadshow (ABN Amro ODDO BHF) Metzler Small Cap Days Interim Report Q1 2024 German Spring Confe
Slide 22: Forward looking statements
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
Slide 23: IR Contact
IR CONTACT NICOLE SCHILLINGER SVP INVESTOR RELATIONS E-MAIL [email protected] PHONE +49 9643 2061 848 WEB https://ir.cherry.de CHERRY®