Cherry (C3RY) Investor presentation summary

Q3/9M 2024 performance overview

• Missed internal expectations due to overreliance on the German market and weak corporate and consumer spending.

• Components segment impacted by a sluggish notebook market and order delays, resulting in a €13m revenue shortfall.

• Adjusted EBITDA margin turned negative instead of the targeted 5-6%, with €6m cash burned in Q3.

Financial results

• 9M 2024 revenue reached €84m, with a gross profit hit of €6m impairing fixed cost coverage.

• 9M adjusted EBITDA was -€0.7m; Q3 adjusted EBITDA was -€3.1m, missing the €2m target.

• Revenue and EBITDA declines were seen across GOP and Components, with Corporate and DH&S segments also underperforming.

Inventory and working capital management

• Inventories reduced by 23% and trade working capital by 14% from Q1 2023 to Q3 2024.