Cherry AG: Forecast update for the fiscal year 2022

Munich, November 7, 2022 – In the light of current developments, the Management Board of Cherry AG (ISIN: DE000A3CRRN9) decided today to update the forecast for the current fiscal year as follows:

The Management Board expects Group revenues of around EUR 130 million to around EUR 140 million (previously: around EUR 150 million to around EUR 170 million) with an adjusted EBITDA margin of 13 % to 15 % (previously: 14 % to 19 %) for the fiscal year 2022.

Against the backdrop of the accelerating global slowdown in economic growth and rising inflation as a result of the Ukraine war, the ongoing supply chain disruptions as a result of the lockdowns in China, high inventory levels at customers and distributors and consequently a decline in demand for certain mechanical keyboard switches, the Management Board now expects in the GAMING business area a strong decline in revenue for the full year (previously: slight increase) and a revenue growth around 8% and 10% in the PROFESSIONAL business area (previously: revenue growth in the low double digit percentage range).

According to preliminary unaudited figures, Group revenues in Q3/2022 amounted to approximately EUR 32.1 million (Q3/2021: EUR 43.1 million), resulting in preliminary Group revenues in the first 9 months 2022 of approximately EUR 98.0 million (9M/2021: EUR 123.4 million). Taking into account the shift in product mix within the Group, idle production capacity, general price increases for material and logistic costs, and start-up and implementation costs for the eCommerce strategy the Company expects an adjusted Group EBITDA of approximately EUR 13.6 million for the first 9 months of the year (9M/2021: EUR 36.5 million), which corresponds to an adjusted EBITDA margin of 13.9% in the first 9 months of 2022 (9M/2021: 29.6%).

The Company will publish its interim report for the third quarter and first 9 months of 2022 on November 15, 2022.

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Disclaimer:

This publication 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 or events to differ materially from those expressed or implied by such statements. Actual results, performance or events may differ materially from those described herein as a result of factors affecting Cherry AG, such as changes in general economic conditions and the competitive environment, capital market risks, foreign exchange rate fluctuations and competition from other companies, as well as changes in international and national laws and regulations, particularly with respect to tax laws and regulations. Cherry AG assumes no obligation to update forward-looking statements.

This publication contains supplementary financial measures (not specifically identified in relevant accounting frameworks) that are, or may be, so-called alternative performance measures. For purposes of evaluating Cherry's financial condition and results of operations, these supplemental financial measures should not be considered in isolation or as an alternative to the financial measures presented in the consolidated financial statements and determined in accordance with relevant accounting frameworks. Other companies that present or report alternative performance measures with a similar title may calculate them differently. Explanations of financial ratios used can be found in Cherry AG's 2021 Annual Report, which is available at https://ir.cherry.de/de/.

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About Cherry

Cherry AG [ISIN: DE000A3CRRN9] is a global manufacturer of high-end mechanical keyboard switches and computer input devices. The business focus is on mechanical keyboard switches for gaming keyboards as well as various computer input devices, which are used in a wide range of applications – especially in the areas of gaming, office, industry and cybersecurity as well as solutions for the healthcare industry. Since its founding in 1953, Cherry, with its two business areas Gaming and Professional, has stood for innovative and high-quality products that are developed specifically to meet the needs of its customers.

Cherry has its operational headquarters in Auerbach in Germany's Upper Palatinate region and employs over 500 people in production facilities in Auerbach, Zhuhai (China) and Vienna (Austria) as well as in several sales offices in Auerbach (Germany), Paris, Kenosha (USA), Taipei and Hong Kong.

More information is available online at: www.cherry.de

Contact:

Dr. Kai Holtmann

Investor Relations

Einsteinstraße 174, c/o Design Offices Bogenhausen, 81677 Munich, Germany

Postal address: Cherrystrasse 2, 91275 Auerbach, Germany

T +49 (0)175-1971503

F +49 (0)9643 20 61-900

E-mail: kai.holtmann@cherry.de