Agreement reached with UniCredit on the extension of financing; implementation of restructuring measures incl workforce reduction and relocation of switch production to China; forecast 2025

Agreement reached with UniCredit on the extension of financing based on a restructuring concept; implementation of restructuring measures including workforce reduction and relocation of switch production to China; forecast for the 2025 fiscal year

Munich, 22 April 2025 – Cherry SE today entered into an agreement with UniCredit Bank GmbH regarding the extension of its existing financing facility, which has been updated to a total amount of EUR 23 million. The facility has been extended until 31 December 2027 under adjusted financing terms. This specifically refers to the reduction of the loan amount from the current EUR 25 million to EUR 23 million through repayments of EUR 1 million due on 30 June 2025 and EUR 1 million due on 28 February 2026, as well as to the adjustment of financial covenants. The interest rate will remain unchanged at EURIBOR plus 3.75% per annum.

The extension of the financing is based on a restructuring plan submitted by Cherry SE. The restructuring concept includes, among other measures, the complete discontinuation of switch production at the Auerbach site and its transfer to a partner in China. In this context, jobs will also be reduced in a socially responsible manner in consultation with the works council. The Auerbach site will be retained and is to be transformed into a development, logistics, and service hub for Europe.

Against the backdrop of this restructuring plan, the Management Board expects consolidated revenues of approximately EUR 105 to 120 million (analyst consensus: EUR 117.5 million) and an adjusted EBITDA margin in the range of 3 to 6% (analyst consensus: 3.3%) for the 2025 financial year.

* The definition of the adjusted EBITDA margin can be found on pages 26 of the Cherry SE Annual Report 2023, which is available at https://ir.cherry.de/en/

Notifying person: Oliver Kaltner, Chairman of the Management Board

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 in such statements. Actual results, performance, or events may differ materially from those described herein due to factors affecting Cherry SE, such as changes in the general economic and competitive environment, capital market risks, currency exchange rate fluctuations, competition from other companies, and 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, unless required to do so by law.