Thanks, Ingmar. Good afternoon, everyone.

Thank you for joining Cherry's first half 2026 earnings call. I will start with a general update and some investment highlights.

As shared during our last update call, we focus on stabilizing and simplifying Cherry and focus on what matters. First, on stabilize: we are aligning the cost base to the revenue, we are bringing inventories back to healthy levels, and we keep tight control on operations and cash.

Second, simplify: we are working towards a leaner organization, clear accountability, a smaller and better product portfolio, and faster decisions. Thirdly, on focus: there will be fewer priorities, and resources go to the segments where we can win.

We will focus on the needs to have before the nice to haves. These three moves will lead to one ambition, which is for Peripherals to reach breakeven at around €85 million revenue and around 44% gross margin.

If you go to the next slide, you will see that when I started, we did a full review, and this slide shows what we said, what we would do, and what has changed so far. On the stabilize part, our operating expenses are lower versus the first half of last year.

The gross margin improved materially compared to last year, and the channel normalization is underway. On simplify, we have the new Management Board structure in place, and the responsibilities between Jurjen and myself are in control.

A new leadership team for Peripherals is installed, and we kicked off the product review to further simplify our operations. On focus, Project Blossom is launched, where we focus on four growth initiatives and a cost-saving program, and one of these growth initiatives is our security and industry business.

For Digital Health, we are well on track to deliver our ambition for the full year. Two points on the next slide.

First, my appointment as CEO was confirmed, effective July 1st, after my interim period. This gives continuity and stability while we execute the turnaround.

Second, Jurjen and I both participated in the rights issue. We acquired new shares and we both oversubscribed, showing our confidence in the direction of the company and the long-term value we can create.

With this, I hand over to Jurjen for the financials.

Thanks a lot, Rogier, and all of you, a good day. Before we dive a little bit deeper into the financials, a couple of remarks on today's presentation.

First, the final H1 numbers will be released after the completion of the 2025 audit, and I will come back on this later. Second, our discussion today focuses on operational segments in their current structure to provide the best basis for comparison.

For completeness' sake, however, we will show the so-called discontinued operations P&L in this presentation as per the IFRS requirements. Thirdly, the presentation covers the first half performance, where detailed Q2 figures will be made available in the appendix of the presentation, and we will publish that online after our call.

Lastly, but equally important, is to highlight that in this presentation, we focus on our operational performance excluding activities that were sold to Contour last year. Let me turn to this discontinued operations P&L on the next slide.

While revenues continue to reflect the challenging market environment, especially in Europe, we achieved a significant improvement in profitability. Gross margin increased from 43 to-- from 37% in the prior-year period, and adjusted EBITDA loss improved to -€4 million from -€10 million last year.

This was mainly the result of our structurally lower cost base and an improved margin, as well as a positive earnings contribution from DH&S. At the same time, we further reduced working capital, demonstrating our continued focus on cash generation and balance sheet discipline.

Our cash balance at the end of June was €4.3 million, which was further boosted in the month of July on the back of the recently completed capital increase. Let me now take you through our first half 2026 performance.

As I said, the structure of the presentation basically represents the structure of the segments as you know it. Comparable first half 2026 group revenue came in at €40 million, approximately 3% above the first half of 2025 with €39 million on a comparable basis.

When discussing the year-on-year development, it's important to note that this comparison is affected by several extraordinary effects in the first half of 2025, and these mainly relate to the one-off Argand inventory transaction that we did in November of last year. In the first half of 2025, we sold approximately €6 million worth of SKUs, that in 2026 we also sold, but then on behalf of Argand, and hence these revenues were recognized as revenue by Argand and not by Cherry.

In addition, there were adverse foreign exchange effects of around half a million. Excluding these items, the underlying Peripherals business proved resilience, with revenues declining by 3% despite continued challenging market environments.

Looking at the individual businesses, CH continued its strong momentum, delivering a revenue growth of 36% year-on-year, while the Components business continued to face a difficult market environment and recorded a further decline. Moving on to the next slide, I will dive a little bit deeper in the quality of these earnings.

Turning to profitability, we delivered a significant improvement in adjusted EBITDA despite the fact that revenues fell short of the same period last year. Adjusted EBITDA improved to -€4 million in the first half of 2026 compared with -€10.2 million in the prior-year period.

This was primarily driven by disciplined cost management and strong margin execution. At the group level, we reduced costs by around €10 million year-on-year, while gross margin improved by 12 percentage points.

Both the Peripherals business and DH&S made a meaningful contribution to this improvement. Although gross margins in the Components segment have also significantly improved, topline in Components remains weak.

You will find that central costs remain relatively stable year-on-year, which is where a big part of the Blossom efforts are focused on. Now moving to adjusted EBITDA, I've mentioned before that it's important to me and to us that we're transparent as to how and by how much we adjust EBITDA to get to adjusted EBITDA.

As you can see on this slide, we adjusted for non-recurring gross margin effects to the tune of almost a million euros. This particularly relates to lower margins related to selling off slow-moving inventories and restructuring costs in the manufacturing area.

Adjustments in operational expenses mainly relate to transaction costs related to the divestment of DH&S. As we have a thriving DH&S business, and our difficulties largely relate to the Components and Peripherals segment of Cherry.

Let's dive a little deeper into developments of these segments from a gross margin and from a cost point of view. We've been quite vocal about the fact that we believe that the entitlement margin level for our combined Peripherals business lies around 44%.

This relates to sales minus material costs. Year-on-year, we improved this on an adjusted basis from 41.7 to 45.1%.

This entirely relates to more focus on margin management and a better product mix. Second, as I will further elaborate on when talking about cost, our so-called gross margin 2 saw an increase of 12.5 percentage points to 29%.

This basically relates to substantially reducing our manufacturing base. We still believe that 29% is not good enough, but the improvement is promising.

Thirdly, we must make sure that our cost base comes down. You see this on the right-hand side, where I show that costs have come down from €17.5 million in H1 2025 to €10.8 million in H1 2026, predominantly driven by lower manufacturing costs and lower selling expenses.

We've also said that this is not the end of our cost reduction efforts, and in Project Blossom, we plan to take out even more cost. Let me end this financial section with an update on the key topics on the next slide.

Let me update you on the status of the 2025 audit and our recent financing activities. The audit is well-advanced, and the majority of audit procedures have already been completed.

However, as you can imagine, the anticipated divestment of DH&S will have a materially impact on the remaining Cherry business in terms of size, in terms of planning and outlook, and in terms of financing. All of these aspects have to be evaluated by the auditor.

Consequently, the audit cannot be completed until there is more clarity on the outcome of the divestment. On the financing side, we successfully completed our rights issue.

The capital increase comprised up to 9.7 million new shares and was subscribed almost in full. Only 877 shares remained unsubscribed, and these were subsequently acquired by members of the management team.

Gross proceeds amounted to approximately €10.1 million and further strengthened the company's financial position. Finally, let me briefly update you on the planned sale of our Digital Health & Solutions business.

We've received a number of non-binding offers, which are currently being evaluated. As this process is ongoing, we're not in a position to now provide further details at this stage, but obviously, we'll do so as soon as something new is worthwhile mentioning.

With that, let me hand back over to Rogier for an operational update.

Thanks, Jurjen. Thank you.

Let me start with our Peripherals business and where we currently stand. Over the first half year, our priorities have been very clear: restoring profitability, normalizing channel inventory, which in this case is Europe only, and sharpen our go-to-market approach.

First, we achieved a meaningful recovery in gross margin, as already mentioned by Jurjen. This reflects the benefits of our disciplined cost management, a more focused product portfolio, and improved pricing quality.

At the same time, we continued to normalize the channel inventories. We are working closely with our distribution partners to bring inventory levels back to a healthy position over the course of the year, creating the basis for more sustainable sell-through.

We have also further refined our commercial approach. Rather than going after broad market coverage, we are concentrating on selected full-service partners and prioritizing product-market combinations where we see the strongest opportunities.

This reduces operational complexity, lowers inventory risks, and improves capital efficiency. Regionally, our priorities differ.

In Europe, the focus is on accelerating sell-through, completing the channel cleanup, and launching targeted B2B growth initiatives. In the US, we are redesigning the commercial model, reducing number of SKUs, and further optimizing our route to market together with our reseller network.

In China, market conditions remain challenging, following the phase-out of governmental support for consumer electronics. Here, our priority is to continue adapting the portfolio to the current demand environment.

Let me now turn to Digital Health & Solutions. This business operates in a highly regulated market with high entry barriers, giving strong visibility and attractive long-term growth.

The main driver is Germany's telematic infrastructure rollout. Around 150,000 institutions are still to be connected by 2027, which gives a predictable demand.

Our certified secure platform already handles secure messaging and sensitive health data, with room to expand into further compatible services. We also see a clear path for growing our recurring revenue.

We are well-positioned to move from hardware-led sales to SaaS subscriptions, and our installed base and terminals support cross-selling additional software over time. In short, the regulatory tailwinds, the growing installed base, and rising recurring revenue gives this business a clear sustainable growth path.

On Project Blossom, let me summarize again the key operational priorities under this project. The program is built around five focused initiatives that are designed to accelerate profitable growth while further improving operational efficiency.

The first priority is to strengthen our position in China by accelerating growth in those market segments where we see attractive opportunities by further aligning our portfolio with local demand. In parallel, we are redesigning our commercial model in the US to simplify our route to market, improve execution, and increase commercial effectiveness.

The third focus area is expanding our presence in our home country in the DACH region. We see attractive growth opportunities in both existing customer relationships and new market segments supported by a more targeted go-to-market approach.

We're also investing in our position in the security and industry segment, where we aim to further strengthen our market position with a differentiated product offering and deepen customer relationships. Finally, all of these initiatives are supported by a continuous focus on efficiency and effectiveness.

We remain committed to simplify processes, reducing complexity, and allocating resources to areas where the highest value creation is possible. All combined, these initiatives form a clear operational roadmap to improve execution, strengthen our market position, and support sustainable profitable growth over the coming years.

On the next slide, you see the key priorities for the Cherry Group. As you can see from this slide, we have four key priorities.

We have successfully completed the capital raise, which gives us the bandwidth to implement Project Blossom. As mentioned before by Jurjen, the sale of Digital Health is well underway, and several non-binding offers are under review.

With the proceeds from Digital Health, we will repay debts and strengthen our balance sheet. Last but not least, the execution of Project Blossom will bring us back to growth and a reduced cost base.

We are pleased to share that we are well underway with all these priorities. Let me finalize with a management summary.

The four messages to take away: one, is we are consolidating the plan. The cost base will be aligned to the revenue, and gross margin is materially up.

Two, we have a clear strategy: stabilize, simplify, and focus, with one transformation program which is called Project Blossom. Three, we have a clear ambition: Peripherals at breakeven at around €85 million revenue and around 44% gross margin.

Four, is disciplined execution: fewer priorities, clear accountability, and a strong focus on cash and working capital. I will now hand over to Ingmar for the Q&A.

Hi, good afternoon. Some questions from me.

The first one is on the God segment, which seems like to stabilize with a decent amount with only 3% decrease on an adjusted basis. Can you add a few words about that to explain what's like the most important changes were you made on that business?

Was it more like on inventory? Was it more like on your partner selection?

On top of that, what is needed to grow the business and increase margins further, which you are 2027 target? From me,

Bastian, the question was not entirely clear. You broke up a little bit.

I think your question related to the Peripherals business and how the margin increase came about, whether it was on the back of partner selection, distribution channels, product mix, and things like that. Is that correct?

It was on margin and on the growth, only 3% decrease on an adjusted level. It seems like to stabilize quite a bit.

What measures you took there as well?

Let me do one part of the equation, and then I hand over to Rogier for let's say more commercial aspects of margin improvements. I think one of the major drivers outside of our decision to limit distribution to specific distribution partners is the fact that, as in the course of 2025, a restructuring plan under StaRUG was agreed to with the banks, and that basically pushed a fairly steep reorganization and restructuring of the manufacturing environment.

That obviously specifically relates to Peripherals and Components. This is, from a cost point of view, one of the elements that boosted margins.

Then I think on the commercial side, and I'll turn to Rogier in a bit, but we're just much more stringent on what deals to pursue and what deals not to pursue. Rogier can elaborate on that.

Indeed, Bastian, sorry, I could not reply immediately because you were breaking up a little bit. On the margin improvement, what we see is it's actually across the three regions, both China, Europe, and US, we see margin improvement versus last year.

In the US, related to what I shared earlier, is the changed operating model where we decided to focus on fewer accounts, but do them better, and also to optimize, for example, promotional spend, to make sure that we return on the investments that we do, meaning sometimes less is more in this case. Investing more promotional spend is not always leading to better results.

It's a mix across the countries and across the regions. In Europe, it is, as mentioned as well, more focused on say which customers to work with, which products we want to sell, but also a first step into improved pricing quality in the pricing model and pricing structure that we are kicking off, and you see that these effects are kicking in.

It's early days, but we see that the operational margin indeed is improving versus last year given the input and efforts that we have put in.

Thank you. Maybe a little outlook on H2: do you think you can grow the Peripherals business in H2 again on an adjusted basis, or is that too early?

It's a little bit too early to say. One point which I raised is that we have still some challenging channel inventories in Europe, which will slow down sell-in.

There we need to accelerate sell-out or sell-through to get to healthy levels. It's a bit early to say.

For us, important this year is that we are also preparing the company to get to the level where we said we would be next year, which is a stabilized 44% gross margin or at the minimum of 44% gross margin. In 2026, we're working towards that plan for 2027.

Perfect. Thank you.

My last question is on the Components business, which, yeah, is still in a challenging situation. Would you expect the business to wind down in the future, or what kind of prospects do you see here?

We're looking at that as we speak. Yes, it is challenging, and yes, we're looking at all opportunities and we're looking at all models to make the best decision for the company going forward.

It's under review, and to your point, it is indeed a slightly more challenging market than the Peripherals business.

Okay. Thank you very much for taking my questions.

You're welcome.

I hope you can hear me now.

Perfect. Thanks for taking my question.

Maybe on topline again. The inventory or channel normalization has been going on for quite a long time.

Is there maybe any end in sight? Maybe some hope that sales are going to increase soon, maybe this for the beginning?

Hopefully it's a bit more than hope. What we're working against is that we are trying to normalize it in the course of this year.

Also here, what I mentioned as an answer to the question of Bastian is that we're preparing the company, the Peripherals company, to be ready for 2027. The aim is to reduce channel inventories significantly in the course of this year, where we anticipate to be significantly below what we currently have at the start of 2027.

Perfect. The second question on cost control: we've seen good progress here in recent quarters.

Any bigger initiatives that maybe puts pressure on cost or cash planned for 2026?

For 2026, there's a couple of elements in terms of cost, and we have outlined already that in Project Blossom, we plan to take out more costs. Some of these expenses and costs are discretionary in nature, and what I mean with that is, you take a decision to say to no longer do certain things, it doesn't cost an investment to get rid of these costs.

When it comes to people, when it comes to size of the organization, obviously, we also have to make sure that people get a fair severance package, and this needs to be catered for. This, yeah, needs to be properly planned in view of the available cash that we have on hand.

Perfect. Then maybe one last on liquidity.

If I counted correctly, you have collected around 15 million via the capital increase and then some commitments from Argand in May, I think. Can you give us an update on cash generation or cash burn, where you currently stand?

I have to unfortunately correct you a little bit there because the liquidity comfort that Argand provided is subsequently diminished with the money that Argand factually invested in the capital increase. The net liquidity improvement is not 15 million, but this gross proceeds of 10.1 million that was also listed in the presentation.

That is one aspect. I think Rogier was quite vocal about the four things that need to happen when it comes to restoring our balance sheet and setting up the remaining business for success.

One obviously was and is that capital increase. The second one is the divestment of DH&S.

Then we need to make sure that we settle the outstanding bank debt, and we have to execute on Project Blossom. Clearly, with a divestment of Digital Health & Solutions, the cash situation of the company remaining is negative, which is why it is so urgent that we execute on Project Blossom to get to this EBIT breakeven situation in 2027.

Thank you. Just so I understand the number correctly: so in May, the announcement was made by Argand to commit capital, and then this committed capital was then seen during the increase, so that's basically one announcement?

Correct.

Perfect. Thank you very much.

Can you hear me now?

Yes,

we can. Wonderful.

The majority of my questions already have been posed. Can you shed some more light on the question of the divestment, whether this will be successful?

I understand that you can do this only very limited, but maybe you can share some kind of probability, or how many parties you're talking to, or whether we can be sure that it will be done in the next let's say quarter or two? Tell us what you can.

Okay. Let me try and be as transparent and explicit as possible.

Like we said in the presentation, we've received a number of offers. They're all non-binding in nature.

Discussions with a number of interested parties are ongoing. There is definitely appetite.

I think our decision to apply discontinued operations for the business should be fair indication enough that we believe it is more likely than not that DH&S will be divested. I'm sorry, Felix, but there's not much more that I can say to that.

No problem.

Thank you.

Sorry.

Now you can hear me. Can you give a little bit light on '27?

How would you like to get the turnover if more than double from this year? What are the points you think you can do that and especially with a good margin?

It's not double, but we expect indeed double-digit growth versus this year. One is that the normalized channel inventory should support a high sell-in in 2027.

You see that with higher channel inventories, and this again, as I outlined before, this is Europe only, but with the higher inventory levels in Europe, we need to actually sell out more or we can sell out less than what we should sell out. Sell-in is expected to be higher in 2027, even on a normalized operational basis once the channel inventory is lower.

That's one reason. The other actually are the four initiatives that we shared in Project Blossom, which is the new operating model in the US, where we focus on fewer but bigger accounts; in China, which is predominantly around gaming, you see that in China, the majority of our business is done in gaming keyboards, with the China team, we're working on a more China-for-China portfolio, which should support growth, and there is an opportunity for us to grow, it is a challenging market, but the market shares that we have are still quite low, the opportunity for China to grow there as well; and then for Europe, for now, we focus on the DACH region, within the DACH region specifically Germany, to grow our B2B business for office products, and in similar timeframe, we're also increasing our commercial capacity in both the UK and France, where we hired some new people; and fourth is the security and industry input device business, as we called it, where we see an opportunity for Cherry with secured keyboards, but also industrial keyboards, to focus on firstly the German market, and secondly, after proven success, we expect to roll it out to France, the UK, and perhaps Benelux and Nordics, but first France and UK.

The channel inventory normalization combined with the four growth initiatives in Project Blossom should lead to that growth. We have to grow because we cannot restructure to profitability.

We need to take costs out, which we committed to do and we're well on the way, but the topline growth will come from the Blossom initiatives and the channel normalization. Hope that clarifies.

Competition-wise, is there any new competition coming up or is it... No,

for the Peripherals business, I don't think so. I think the competition is the competition out there and the expected competition is the competition that we have seen for many years in a row.

I don't expect that to change. Perhaps there will be some consolidation.

We see that in gaming keyboards, there are more and more Chinese entries on European market. Overall, I think the market is pretty transparent, and I don't expect too much change over there.

Thank you very much and good luck.

Thank you, Ramon.

Thanks, Ingmar. As already mentioned, thank you all for your time and your questions.

A brief summary: we're moving. The company is moving step-by-step into a slightly better direction, I would say.

We see that the results of the first half year have improved versus the first half year last year. We have a concrete plan, which is Project Blossom.

We are well on the way there. We have shared the four priorities for the company: the rights issue, which we successfully completed; the divestment of Digital Health; restoring working or improving our balance sheet and reducing our debts; and then at last but not least is the execution of Project Blossom.

We're well on the way. There's still a lot to do, but we feel positive about the future.

Thank you so much for joining.