Cherry SE: Preliminary figures Q3/2023 and specification of forecast for fiscal year 2023, planned strategic realignment of Components business unit

Munich, October 24, 2023 – According to preliminary unaudited figures, Group revenue in Q3/2023 amounted to approximately EUR 27.3 million (Q3/2022: EUR 32.1 million), resulting in preliminary Group revenue in the first 9 months of 2023 of approximately EUR 88.6 million (9M/2022: EUR 98.0 million). Adjusted Group EBITDA in Q3/2023 was approximately EUR -1.3 million (Q3/2022: EUR 4.2 million). For the first 9 months, the Company achieved adjusted Group EBITDA of approximately EUR 1.9 million (9M/2022: EUR 13.6 million), corresponding to an adjusted EBITDA margin in Q3/2023 of -4.6% (Q3/2022: 13.0%) and in the first 9 months of 2023 of 2.2% (9M/2022: 13.9%). The main reasons for the decline in Group revenue and earnings were insufficient competitiveness in the market segment for MX generation 1 keyboard switches and current purchasing restraint in the e-health terminal business.

Against the background of the current business development, the Management Board of Cherry SE (ISIN: DE000A3CRRN9) decided today to specify the forecast corridor for the current fiscal year. The Management Board now expects Group revenue of around EUR 140 million (previously: around EUR 135 million to around EUR 165 million) with an adjusted EBITDA margin of around 10 % (previously: 10 % to 14 %) for the fiscal year 2023.

The Management Board is planning a comprehensive package of measures for the strategic realignment along the entire value chain of the Components business unit in order to restore its competitiveness and earning power in the long term.

The company will publish its interim report for the 3rd quarter and the first 9 months of fiscal year 2023 on November 15, 2023.

Definitions of adjusted Group EBITDA and adjusted EBITDA margin can be found on page 27 of the Cherry SE Annual Report 2022, which is available at https://ir.cherry.de/de/.

Notifying person: Dr. Mathias Dähn, (CFO)

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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 SE 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 SE, 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 SE 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 SE's Annual Reports, which are available at https://ir.cherry.de/.

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About Cherry

Cherry SE [ISIN: DE000A3CRRN9] is a globally operating manufacturer of high-end mechanical keyboard switches and computer input devices such as keyboards, mice, and headsets for applications in the worlds of gaming, e-sports, office and hybrid workplaces, industry, and healthcare. Since it was founded in 1953, Cherry has been synonymous with innovative, high-quality products developed specifically to meet the various 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 various sales offices in Auerbach, Pegnitz, Munich, Landskrona (Sweden), Paris, Kenosha (USA), Taipei, and Hong Kong.

More information is available online at: https://cherry.de/

Contact:

Dr. Kai Holtmann

Investor Relations

Rosental 7, c/o Mindspace, 80331 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