Cherry Se · XETR:C3RY
Cherry — H1 2022 Earnings Presentation
23 slides from Cherry's earnings presentation, Aug 11, 2022
Slide 1: H1 2022 Investor Presentation
H1 2022 INVESTOR PRESENTATION August 11, 2022
Slide 2: Cherry Management Board
CHERRY MANAGEMENT BOARD Rolf Unterberger - CEO Bernd Wagner - CFO Dr. Udo Streller - COO H1 2022 Investor Presentation - August 11, 2022 2
Slide 3: Cherry at a Glance – Financial Highlights H1 2022
CHERRY AT A GLANCE – FINANCIAL HIGHLIGHTS H1 2022 € 65.9m 14.3% 528 Revenue down 18.0% from H1/2021, EBITDA margin (adj.) down 15.9pp. y-o-y, Employees down 4.7% (yet up 10.1% from H1/2020*) (yet up 1.9pp. Q2/2022 vs. Q1/2022) € 0.3m € 37.9m M&A Operating cashflow up € 2.7m. y-o-y Net cash Ongoing d
Slide 4: Current Business Situation and Market Environment
CURRENT BUSINESS SITUATION AND MARKET ENVIRONMENT MAIN HIGHLIGHTS IN H1/2022 MOST RECENT PRODUCT LAUNCHES BY EXAMPLE New customer announcements for market launch of high-end devices featuring ULP switches (e. g. DELL, MSI, XMG, Corsair) Launch of several new wireless gaming devices Further expansion
Slide 5: Cherry Professional – Latest Developments
CHERRY PROFESSIONAL – LATEST DEVELOPMENTS NEW PRODUCTS AND MARKET TRENDS DIGITAL HEALTH – CURRENT AFFAIRS Portfolio expanded, including wireless technology with focus on: Strong growth with expanded market share Ergonomic design The "Telematics Infrastructure 2.0" is currently being designed and new
Slide 6: Cherry Gaming – Latest Developments
CHERRY GAMING – LATEST DEVELOPMENTS NEW SWITCHES / SWITCH VERSIONS Market launch of CHERRY MX Ultra Low Profile switch (tactile version) for use in premium Office Notebooks Development of new analogue switch technology with customizable functionalities nearing completion, allowing for a completely n
Slide 7: Customer / Product Line-up for New Cherry ULP-Switches
CUSTOMER / PRODUCT LINE-UP FOR NEW CHERRY ULP-SWITCHES Alienware M, Alienware X and Dell G platforms Corsair VOYAGER a1600 XMG NEO 15 by Cairn Mesa | Key MSI GT77 TITAN Cairn Devices And more to come… H1 2022 Investor Presentation - August 11, 2022 7
Slide 8: Significance of Professional Business Continues to Grow
SIGNIFICANCE OF PROFESSIONAL BUSINESS CONTINUES TO GROW PROFESSIONAL GAMING Peripherals Digital Health Components Gaming Devices e-health terminal for Encrypted key MX switch MV switch Gaming keyboard Ergonomic keyboards & mice German healthcare transmission market keyboards Disinfectable / Ultra lo
Slide 9: Performance Q2/H1 2022 Overview
PERFORMANCE Q2/H1 2022 OVERVIEW In €m/ as indicated Q2/22 Q2/21 ∆ H1/22 H1/21 ∆ Revenue 32.9 42.6 -22.8% 65.9 80.3 -18.0% Gross profit 11.0 17.6 -37.8% 20.8 33.1 -37.2% Gross profit margin 33.4% 41.4% -8.0pp. 31.6% 41.3% -9.7pp. EBITDA (adj.) 5.0 13.3 -62.1% 9.4 24.3 -62.1% EBITDA margin (adj.) 15.3
Slide 10: Financial Performance of Business Areas
FINANCIAL PERFORMANCE OF BUSINESS AREAS Revenue in €m Revenue in €m 60 100 80,3 42,6 65,9 32,0 32,9 59,8 40 38,4 19,5 50 12,9 20,0 26,5 41,1 20 19,1 23,1 12,9 33,3 42,0 24,8 0 0 Q2/20 Q2/21 Q2/22 H1/20 H1/21 H1/22 GAMING PROFESSIONAL GAMING PROFESSIONAL EBITDA (adj.) in €m EBITDA (adj.) in €m 15 13,
Slide 11: Double-Digit Group Profitability Sustained
DOUBLE-DIGIT GROUP PROFITABILITY SUSTAINED Half Year EBITDA MARGINS (ADJ.) 40% 36,3% 14.3% EBITDA MARGIN (ADJ.) IN H1 2022 30% 30,2% 20% 23,5% 17,8% 17.8% EBITDA margin (adj.) in PROFESSIONAL business 10% 14,3% influenced by: 8,5% Increased prices for raw materials incl. FX effects 0% H1 2021 H1 202
Slide 12: Further Investments in Future Growth
FURTHER INVESTMENTS IN FUTURE GROWTH Research and development EXPENSES in €m. (RATIOS in %) Higher amortization of capitalized development costs 25 Higher internal and external staff costs 21,8 20,0 20 2,8 3.5% Marketing and selling expenses 4,1 7,5 6.3% Implementation of the e-commerce strategy (be
Slide 13: Strong Financial Position as of June 30, 2022
STRONG FINANCIAL POSITION AS OF JUNE 30, 2022 TOTAL ASSETS OF EUR 407.7M AS OF JUNE 30 Strong cash position of EUR 99.7m enables further implementation of growth and M&A strategy Net cash is EUR 37.9m Inventory level of EUR 52.3m provides for fast delivery capability in e-commerce business Equity ra
Slide 14: Cash Flow as of June 30, 2022
CASH FLOW AS OF JUNE 30, 2022 in TEUR Q2 2022 Q2 2021 H1 2022 H1 2021 Net loss for the period -362 -4.896 -615 -2.539 Depreciation, amortization and write-downs (+) / reversals thereof (-) on fixed assets 3.854 3.687 7.773 7.11 Increase (+) / decrease (-) in provisions -71 3.707 -97 3.535 Other non-
Slide 15: Updated Forecast FY 2022 – Further Outlook
UPDATED FORECAST FY 2022 – FURTHER OUTLOOK FY 2021 FORECAST FY 2022 FURTHER OUTLOOK IN €M/ AS INDICATED AS OF MAR. 31 AS OF JUL. 18 GAMING Lower revenue level in GAMING business Revenue 168.5 170 – 190 150 - 170 area for fiscal year 2022 than previously assumed (previously: revenue growth in EBITDA
Slide 16: Appendix
APPENDIX H1 2022 Investor Presentation - August 11, 2022 16
Slide 17: Reconciliation to Alternative Performance Measures (ESMA)
RECONCILIATION TO ALTERNATIVE PERFORMANCE MEASURES (ESMA) IN € MILLION H1 2022 H1 2021 IN € 000 H1 2022 H1 2021 Group net profit/loss -0.615 -2.539 Adjusted EBIT 1.668 17.035 + Depreciation, amortization and - Income taxes 0.114 0.824 7.773 7.217 impairment losses* - Financial result 0.911 13.401 Ad
Slide 18: Share Performance / Current Shareholder Structure
SHARE PERFORMANCE / CURRENT SHAREHOLDER STRUCTURE RELATIVE SHARE PERFORMANCE SHAREHOLDER STRUCTURE 140% UBS Group AG Glenernie Capital 3,2% 120% 3,2% The Capital Group 100% 5,0% Swedbank 80% 5,0% 60% Janus Henderson 40% Remaining 6,0% 20% free float 0% 46,9% Argand Partners Fund GP-GP** 30,8% Cherry
Slide 19: Cherry Share Buyback 2022
CHERRY SHARE BUYBACK 2022 OVERVIEW TRANSACTIONS 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 €) volume (in €) With
Slide 20: Cherry Awards in First Half 2022
CHERRY AWARDS IN FIRST HALF 2022 CHERRY MX 10.0N RGB mechanical MX Low Profile Keyboard G80-3000S TKL mechanical keaboard Patented Ultra low Profile switch FOR BRAND, CUSTOMER SATISFACTION, AND PRODUCTS In the first half of 2022, CHERRY received further awards and nominations for outstanding innovat
Slide 21: Financial Calendar 2022
FINANCIAL CALENDAR 2022 Date Event September 5 – 6 Equity Forum September 19 Berenberg - German Corporate Flagship Conference November 15 Interim Financial Statement Q3/9M 2022 November 16 Münchner Kapitalmarkt Konferenz November 18 M.M. Warburg – Meet the Future Conference November 28 - 30 Eigenkap
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 AG and involve known and unknown risks and uncertainties that could cause actual results, performance
Slide 23: 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 www.cherry.de