Cherry Se · XETR:C3RY
Cherry — Q3 2023 Earnings Presentation
14 slides from Cherry's earnings presentation, Nov 15, 2023
Slide 1: Q3/23 Analyst & Investor Presentation
Q3/ 23 ANALYST & INVESTOR P RESENTATION NOV 15, 2023
Slide 2: Overall mixed business performance in Q3/23 – forecast specified
OVERALL MIXED BUSINESS PERFORMANCE IN Q3/23 – FORECAST SPECIFIED Significant operational loss from Components expected to be largely compensated by other BUs in FY 2023 MAIN CHERRY HIGHLIGHTS IN Q3 MAIN FOCUS in Q4: ensuring a strong final quarter in all areas, i.e. • Peripherals for Office and Gami
Slide 3: Overview realignment of Components business unit
OVERVIEW REALIGNMENT OF COMPONENTS BUSINESS UNIT Market relevance, innovation leadership, product quality, volume solutions, price expertise and profitability Location Auerbach Global innovation centers for gaming • Development and production of MX2 switches for use in own products in international
Slide 4: Cherry at a glance – financial highlights 9M/23
CHERRY AT A GLANCE – FINANCIAL HIGHLIGHTS 9M/23 Profitability burden of switch business partially compensated by continued growth of peripherals business € 88.6m 2.2% 451 Revenue with mixed growth momentum EBITDA margin (adj.) Employees (FTE) mainly due to production idle capacity costs down 0.7% fr
Slide 5: Key financial indicators 9M/23
KEY FINANCIAL INDICATORS 9M/23 Overall business performance in Q3/23 beyond own expectations with mixed dynamics in € million/ As indicated Q3/23 Q3/22 ∆ 9M/23 9M/22 ∆ Revenue 27.3 32.1 -15.1% 88.6 98.0 -9.6% Gross profit margin 16.2% 32.5% -16.3pp. 25.9% 31.9% -6.0pp. EBITDA margin -17.0% 10.9% -27
Slide 6: Inventory structure safeguards new product cycles
INVENTORY STRUCTURE SAFEGUARDS NEW PRODUCT CYCLES Inventory level has peaked in Q2/23, mid-term inventory target range 25% to 30% of FY sales • Impairment of € 2.8m for discontinued MX1 switches included, while STRUCTURE OF INVENTORIES [in €m] MX2 switch production launched for market introduction i
Slide 7: Cash flow 9M/23 with sequential quarterly improvement in 2023
CASH FLOW 9M/23 WITH SEQUENTIAL QUARTERLY IMPROVEMENT IN 2023 Cash flow primarily impacted by increase in net working capital and net loss for the period in €m/ as indicated 9M/23 9M/22 • Operating cash flow mainly impacted by Net result -12.7 -0.7 • Increase in NWC by € 15.8m and net loss by € 12m
Slide 8: Outlook FY 2023 specified
OUTLOOK FY 2023 SPECIFIED Current fiscal year as a year of transition, consolidation, and realignment • € 10m unplanned EBITDA burden from Components business unit will be largely offset by successful peripherals business for office and gaming • € 20m total restructuring costs expected, of which Rev
Slide 9: Main drivers for Q4/23
MAIN DRIVERS FOR Q4/23 Strong growth momentum expected in peripherals business supported by seasonality effects DEVELOPMENT OF REVENUE [in €m] 60 ~ 48% [e] 51 50 43 43 45 38 35 40 33 33 32 33 29 27 30 Revenue Outlook 20 10 FY 23 0 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/
Slide 10: Appendix
www.blauer-engel.de/uz78 APPENDIX
Slide 11: Relative share performance & current shareholder structure
RELATIVE SHARE PERFORMANCE & CURRENT SHAREHOLDER STRUCTURE RELATIVE SHARE PERFORMANCE SHAREHOLDER STRUCTURE 160% Own Shares Paladin AM* 3,3% The Capital Group**** 4,6% 4,8% 140% 120% Lemanik AM* 100% 5,3% 80% Remaining free float*** 60% 51,2% 40% Argand Partners Fund 20% GP-GP** 30,8% 0% Cherry (EUR
Slide 12: Financial calendar 2024
FINANCIAL CALENDAR 2024* DATE EVENT January 11/12 ODDO BHF FORUM February 7 HIT (Montega) March 28 Consolidated Financial Statements FY 2023 / Annual Report 2023 May 8 Interim Report Q1 2024 May 13-15 German Spring Conference (Equity Forum) June 14 AGM (virtual) August 14 Half-year Report 2024 Septe
Slide 13: 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 14: Thank you for your attention
THANK YOU FOR YOUR ATTENTION Cherry SE Dr. Kai Holtmann │ Head of Investor Relations Rosental 7 c/o Mindspace │ 80331 Munich, Germany Postal address Cherrystrasse 2 │D-91275 Auerbach, Germany E-Mail kai.holtmann@cherry.de Tel. +49 175 1971503 Fax +49 9643 20 61 900 Internet https://ir.cherry.de