Cherry Se · XETR:C3RY
Cherry — Q3 2022 Earnings Presentation
22 slides from Cherry's earnings presentation, Nov 15, 2022
Slide 1: Q3/9M Investor Presentation
Q3/9M INVESTOR PRESENTATION November 15, 2022
Slide 2: Cherry Management Board
CHERRY MANAGEMENT BOARD Rolf Unterberger - CEO Bernd Wagner - CFO Dr. Udo Streller - COO Q3/9M 2022 Investor Presentation 2
Slide 3: Cherry at a Glance – Financial Highlights 9M 2022
CHERRY AT A GLANCE – FINANCIAL HIGHLIGHTS 9M 2022 € 98.0m 13.9% 525 Revenue down 20.6% from 9M/2021, EBITDA margin (adj.) Employees (HC) ** (yet up 4.3% from 9M/2020*) down 15.7pp. from 9M/2021 down 5.2% from Dec. 31, 2021 € -0.8m € 27.3m M&A Operating cash flow 9M/2022 Net cash Ongoing negotiations
Slide 4: Current Business Situation and Market Environment
CURRENT BUSINESS SITUATION AND MARKET ENVIRONMENT Managing future growth in challenging environment MARKETS AND ECONOMIC ENVIRONMENT MOST RECENT PRODUCT LAUNCHES BY EXAMPLE Macroeconomic headwinds (high inflation rates, high inventory levels PROFESSIONAL at customers and distributors, supply chain d
Slide 5: Cherry Professional – Latest Developments
CHERRY PROFESSIONAL – LATEST DEVELOPMENTS Further expansion of high-end wireless peripherals and sales footprint PERIPHERALS Portfolio expansion with focus on wireless technology, such as KW 9100 Slim rechargeable design keyboard, offering first-class workmanship and innovative functions (incl. AES-
Slide 6: Cherry Gaming – Latest Developments
CHERRY GAMING – LATEST DEVELOPMENTS Further strengthening innovation and quality leadership in the gaming community COMPONENTS Introduction of CHERRY MX Ergo Clear derivative switch, available in various versions Market launch of CHERRY MX ULP switch (tactile version) for use in premium keyboard seg
Slide 7: Customer / Product Line-up for New Cherry ULP-Switches
CUSTOMER / PRODUCT LINE-UP FOR NEW CHERRY ULP-SWITCHES CORSAIR’s thinnest high-performance keyboard ever most recent addition to ULP customer base Alienware M, Alienware X and Dell G platforms Corsair VOYAGER a1600 XMG NEO 15 by Cairn Mesa | Key MSI GT77 TITAN Corsair K100 AIR Wireless Cairn Devices
Slide 8: Professional Business Share Continues to Grow 9M/2022
PROFESSIONAL BUSINESS SHARE CONTINUES TO GROW 9M/2022 Peripherals growth based on expansion of sales channels in B-2-B and B-2-C (eCommerce) PERIPHERALS QUARTERLY BUSINESS UNIT REVENUE PROFESSIONAL (IN €M.) Revenue: € 43.9m 50 (up 4.4%) 45,1 64.1% 45 42,6 43,1 8,7 DIGITAL HEALTH 40 37,7 5,8 7,9 35 4
Slide 9: Performance 9M/Q3 2022 Overview
PERFORMANCE 9M/Q3 2022 OVERVIEW in €m/ as indicated 9M/22 9M/21 ∆ Q3/22 Q3/21 ∆ Revenue 98.0 123.4 -20.6% 32.1 43.1 -25.4% Gross profit 31.3 50.8 -38.5% 10.4 17.7 -41.0% Gross profit margin in % 31.9% 41.2% -9.3pp. 32.5% 41.1% -8.6pp. EBITDA 11.7 31.1 -62.4% 3.5 12.2 -71.3% EBITDA margin in % 11.9%
Slide 10: Financial Performance of Business Areas
FINANCIAL PERFORMANCE OF BUSINESS AREAS Short term effects of cyclical downturn and changes in product mix on revenue and profitability REVENUE (IN €M) REVENUE (IN €M) 150 123,4 60 98,0 43,1 93,9 34,2 100 40 32,1 60,2 40,6 21,9 62,8 14,1 50 20 21,8 53,3 63,2 20,0 21,2 35,1 10,3 0 0 9M/20* 9M/21 9M/2
Slide 11: Profitability of Business Areas Burdened in Short Term
PROFITABILITY OF BUSINESS AREAS BURDENED IN SHORT TERM 9M (ADJ.) EBITDA MARGINS (IN %) 13.9% GROUP EBITDA MARGIN (ADJ.) IN 9M 2022 40% 36,7% 15.6% PROFESSIONAL EBITDA margin (adj.) influenced by: 30% 29,6% e-Commerce expansion incl. higher marketing expenses and 20% 15,6% expansion of sales staff 22
Slide 12: Opex Management Enables Continuation of Growth Path
OPEX MANAGEMENT ENABLES CONTINUATION OF GROWTH PATH Marketing & selling expenses support peripherals growth while Administration costs are down EXPENSES (IN €M.) & EXPENSE RATIOS (IN %) Research and Development 35 30,7 30,5 Expansion and innovation of product portfolio continued to create 30 future
Slide 13: Strong Financial Position as of September 30, 2022
STRONG FINANCIAL POSITION AS OF SEPTEMBER 30, 2022 TOTAL ASSETS OF EUR 414.1M AS OF SEPTEMBER 30 Strong cash position of EUR 91.3m enables further implementation of organic growth and M&A strategy 650,212 own shares as of September 30, 2022, available for M&A activity Net cash is EUR 27.1m High inve
Slide 14: Cash Flow 9M 2022
CASH FLOW 9M 2022 In €m/ as indicated 9M/22 9M/21 +/ - Net result -0,7 3,5 -4,2 OPERATING CASH FLOW Depreciation, amortization and write-downs (+) on fixed assets 11,5 11,0 0,5 IMPACTED BY: Increase (+) / decrease (-) in provisions -0,2 2,4 -2,6 Net loss vs. net profit in previous Other non-cash exp
Slide 15: Current Forecast for 2022 Updated – Further Outlook
CURRENT FORECAST FOR 2022 UPDATED – FURTHER OUTLOOK Original forecast updated as of July 18, 2022, and as of Nov. 7, 2022 IN €M/ AS INDICATED FY 2021 FORECAST FY 2022 FURTHER OUTLOOK AS OF MAR. 31 AS OF JUL. 18 AS OF NOV. 7 GAMING Strong decline in revenue (previously: slight Revenue 168.5 170 – 190
Slide 16: Appendix
www.blauer-engel.de/uz78 APPENDIX
Slide 17: Reconciliation to Alternative Performance Measures (ESMA)
RECONCILIATION TO ALTERNATIVE PERFORMANCE MEASURES (ESMA) IN € MILLION 9M 2022 9M 2021 IN € 000 9M 2022 9M 2021 Group net profit/loss -0.7 3.5 Adjusted EBIT 2.1 25.6 - Income taxes -0.5 2.9 + Depreciation, amortization and 11.5 11.0 impairment losses* - Financial result 1.3 13.7 Adjusted EBITDA 13.6
Slide 18: Relative Share Performance & Current Shareholder Structure
RELATIVE SHARE PERFORMANCE & CURRENT SHAREHOLDER STRUCTURE RELATIVE SHARE PERFORMANCE SHAREHOLDER STRUCTURE* Glenernie 140% Own Shares Capital UBS Group AG 3,0% 3,2% 3,2% 120% The Capital Group 100% 5,0% 80% Swedbank 5,0% 60% Remaining free float*** 40% 49,8% 20% 0% Argand Partners Fund GP-GP** Cher
Slide 19: Cherry Share Buy Back 2022
CHERRY SHARE BUY BACK 2022 OVERVIEW STATUS AS OF SEPTEMBER 30, 20222 The Management Board has resolved on June 9, 2022, with the consent of the Supervisory Board, to launch a share buyback program using the Date No. of shares Average price Purchased AGM authorization of June 23, 2021. purchased (in
Slide 20: Financial Calendar 2022/23
FINANCIAL CALENDAR 2022/23* Date Event November 16, 2022 Münchner Kapitalmarkt Konferenz, Munich November 18, 2022 M.M. Warburg – Meet the Future Conference November 28 – 30, 2022 Eigenkapitalforum, Frankfurt am Main January 5-6, 2023 ODDO BHF Forum, Lyon February 8, 2023 Hamburger Investorentag, Ha
Slide 21: 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 AG and involve known and unknown risks and uncertainties that could cause actual results, performance
Slide 22: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Cherry AG Dr. Kai Holtmann │ Head of Investor Relations Einsteinstrasse 174 │ Bogenhausen 81677 München, Deutschland E-Mail [email protected] Tel. +49 175 1971503 Fax +49 9643 20 61 900 Internet https://ir.cherry.de/de/