Cherry SE: Management Board resolves package of measures for substantial realignment of keyboard switch business

Munich, November 3, 2023 – The Management Board of Cherry SE (ISIN: DE000A3CRRN9) today decided on concrete measures to substantially realign the keyboard switch business along the entire value chain in order to restore the profitability of this business unit.

The package of measures resolved by the Management Board includes following individual measures:

- Relocation of the production of MX2 switches for use in Cherry Partner products in the international market to an external production partner in China for contract manufacturing

- Expansion of the company's own sites in Auerbach and Zhuhai into global innovation centers

- Adjustment of global organizational size from current 455 full-time equivalents to approximately 350 effective March 30, 2024

The implementation of the measures is intended to increase international competitiveness in all business areas across the entire product portfolio and to tap annual savings and earnings improvement potential of around EUR 10 to 15 million.

In order to implement the measures, total expenses of around EUR 20 million are expected in the fiscal year 2023. The amount mainly comprises the socially responsible reduction of jobs and external costs totaling around EUR 11 million (cash-effective in the fiscal year 2024) as well as impairment losses on property, plant and equipment and inventories of around EUR 9 million (non-cash).

Based on the current planning status, the expected total expense of EUR 20 million has an EBITDA impact of a partial amount of EUR 14 million. This partial amount will be adjusted as a non-recurring non-operating special item and therefore has no impact on the Company's current forecast for the adjusted EBITDA margin for the full year 2023 of around 10%.

The definition of the adjusted EBITDA margin can be found on page 27 of Cherry SE's Annual Report 2022, which is available at https://ir.cherry.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: [email protected]