Shelly Group Plc · BSESOF:SLYG
Shelly — Allterco Group — H1 2022 Earnings Presentation
37 slides from Shelly's earnings presentation, 2022
Slide 1: H1 2022 Trading Update
~~ s ALLLERG H1 2022 Trading Update
Slide 2: Contents
Contents Scalable growth across Europe in 2022, Highlights Wolfgang Kirsch enabling a eco-friendly connected world. CO-CEO Strategy & Operations Product Dimitar Dimitrov CO-CEO Research & Development Financial Wolfgang Kirsch Updates CO-CEO & Strategy Strategy & Operations
Slide 3: Overview - Develop Channels, Markets, & Teams
Overview - Develop Channels, Markets, & Teams Vision Deliver products that make houses and apartments smart and help to monitor and save energy Expansion Localized Channel App Marketing Development Development Strategy Product Regional Sales Product Competitive Diversification Teams Families Feature
Slide 4: Overview ESG Approach
Overview ESG Approach Ecological Social Governance Developing a Connecting Guiding the industry sustainable future communities across the globe through early adoption Enabling Communities Diverse Leadership On target to reduce company energy Committed to a sustainable environment for Committed to a
Slide 5: Highlights
Highlights Revenue Growth incl. Revenue Growth from discontinued activities continuing activities ● Revenue slightly above Budget & FC +39.22% +49.89% ● 1 HY growth YoY +29.8% incl. Asia telco business ● 1 HY growth YoY +36.6% excl. Asia telco business ● Growth rate is accelerating as planned ● Reve
Slide 6: Highlights
Highlights Revenue Growth from EBITDA Free Cash Flow continuing activities +49.89% +4.73% ● Revenue above Q2/21 and ● Adj. EBITDA 4,73% above ● FCF In-Line with Budget & FC Q1/22 last year ● Higher costs (planned) ● Strong growth of power ● 384.000 € special negative ● Higher inventory (planned) mea
Slide 7: Product
Allterco Group Product Dimitar Dimitrov CO - CEO Research & Development
Slide 8: New Products
New Products
Slide 9: Range Extending Shelly Plus
Range Extending Shelly Plus Shelly Pro
Slide 10: Product & Channels Differentiation Consumer vs Professional
Product & Channels Differentiation Consumer vs Professional Gen 1 Plus Pro S Pro Plug & Play Retrofit Din Rail ● Plug & Play products in all channels, esp. DIY, CE Retail ● Shelly & Shelly Plus for DIY customers ● Shelly Pro & Shelly Pro S with UL / VDE certifications for professional installers
Slide 11: App Improvements
App Improvements Shelly App Myki App ● Significantly improved ● Completely New Release integration of new products ● Improved Localization ● Improved UX ● Additional Languages ● New scenarios & capabilities ● Better look and feel ● Higher stability ● Improved local device control Launch of new App i
Slide 12: Integrating with Partners
Integrating with Partners Working with key partners in Next Generation connectivity to grow the current portfolio and expand features
Slide 13: Product Figures
Product Customer Engagement Figures +10 Social Media Interaction tools +6M +1M Reaches Devices sold since launch On Facebook/Meta & Instagram Every 8.6s +70K Active A Shelly Device is installed Shelly Support Members Fastest growing Smart Home Brand +2M Households Followers on Shelly Support, Facebo
Slide 14: Acquisition Building Stronger Solutions
Acquisition Building Stronger Solutions Wifi Z-Wave Bluetooth Allterco is well positioned for the adoption of Matter, the next iteration of Smart Home Technology ● Extension of customer Base ● Z-Wave technology as alternative for specific use- cases ● Strengthen the R&D capacity ● Significant possib
Slide 15: Financial Updates & Strategy
Allterco Group Financial Updates & Strategy Wolfgang Kirsch CO-CEO Strategy & Operations
Slide 16: Product Financials - Strong Performance in-line with Targets
Product Financials - Strong Performance in-line with Targets Product Revenue YoY Revenue Split Brands +36.6% ● Revenue in-line with Budget ● Shelly +36.0% Growth YoY (+25.6% Q1) +36.6% Growth YoY ● Shelly growth rate accelerated vs Q1/22 ● Budget for 1st HY achieved ● Myki +47.9% Growth YoY (-1% Q1)
Slide 17: Product Financials - Strong Performance In-line with Targets
Product Financials - Strong Performance In-line with Targets D2C - Online B2B Total Revenue ● Revenue in-line with expectations & planning ● YoY growth of 36.6% ● D2C - +20.7% ● B2B - +40.5% Shelly - Revenue ● Shelly as the sales driver in H1 ● YoY growth of +36.0% ● D2C Online & B2B with positive d
Slide 18: DACH remains the leading region
DACH remains the leading region DACH Revenue Progression ● 32% of Group Revenue ● Increased visibility on e-commerce-channels ● Focus on B2B partnerships ● Local sales team in DACH ● Increasing new customer funnel ● 2023 Pipeline Build-Up in progress ● Continued growth expected ● Best Practices in D
Slide 19: Europe H1 - DACH, South- & North of Europe
Europe H1 - DACH, South- & North of Europe % of Group Revenue Markets Development ● Stable growth rate DACH ● Strong B2B & D2C development 32% ● Professional channel addressed % of Group Revenue Markets Development Southern ● Very strong revenue growth Europe ● Lot of room for future growth 25% ● D2
Slide 20: Rest of Europe & Rest of the World H1
Rest of Europe & Rest of the World H1 % of Group Revenue Markets Development Rest of ● Good sales development Europe ● Huge potential for growth 23% ● 100% central handling by Sofia sales team % of Group Revenue Markets Development Rest of ● Positive development World ● Still a lot of room for growt
Slide 21: EBITDA
EBITDA EBITDA (KEUR) ● +4.09% EBITDA on expected level ● Influenced by ○ Expansion of global teams ○ German team on board ○ R&D capacity increased ○ Investments in future growth ○ New digital tools Adj. EBITDA: 4.476 KEUR Adj. EBITDA Margin: 24.48% *2021 Revenue includes one-off effects from FX & sa
Slide 22: Free Cash Flow
Free Cash Flow FCF (KEUR) ● Good Free Cash Flow performance ● Expected negative impact ○ Planned higher stock level ○ Investments in teams & systems ● B2B customer payment terms ● Further impacts through investments ● Activities for stabilization started e.g.supply chain optimization *2021 Revenue i
Slide 23: Guidance
Guidance *YoY change from FY2020 to FY2021 2021 - 2022 All numbers are IOT only Guidance in € Targets 2021 Baseline FC H1 2022 ACT H1 2022 2022 Guidance Regional Expansion, Increase Revenue Revenue CAGR 30.4M 18.0M 18.3M 43.5M YoY Growth 50.4% 35.5% 36.6%* 43% Gross Profit % 55.0% 51.0% 48.2% 50% EB
Slide 24: Guidance
Guidance *YoY change from FY2020 to FY2021 2022 - 2025 All numbers are IOT only Guidance in € Targets 2022 Guidance 2023 2024 2025 Regional Expansion, Increase Revenue Revenue CAGR 42,5% 43.5M 62.5M 89M 125M YoY Growth 43% 44% 42% 40% Gross Profit % 50.0% 49.5% 49.0% 48.5% EBIT 9.6M 15.2M 24.6M 38.8
Slide 25: Market Drivers & Challenges
Market Drivers & Challenges Challenges Drivers & Solutions ● Negative Consumption Climate ● Increased consumption due to increased energy pricing ● Increase of Energy Prices ● Value for money is the best in price sensitive times ● High Inflation Rate everywhere ● Demand for energy saving products ex
Slide 26: Potential Challenges
Potential Challenges Additional risks in Supply Chain Preparations ● Chip Shortage ● Increased EU inventory Months on Hand ● Other raw material shortage ● Flexible BOM thru strong R&D ● Manufacturing Delays ● Proven production capacity in EU - Bulgaria & Italy ● Strong partnership with Key Amazon Ma
Slide 27: Outlook
Allterco Group Outlook
Slide 28: E-commerce Expansion
E-commerce Expansion October November 2022 2022 English refined French Language Website Launch Website Launch October February 2022 2023 German Spanish & language Italian Website Website Launch Launch ● Website launch for DACH to support DACH Sales ● Launch timing in-line with marketing efforts ● Ot
Slide 29: Sales Headcount & Time to Productivity - Western Europe
Sales Headcount & Time to Productivity - Western Europe Onboarding Fully Operational Ramp-Up Q1 Q2 Q3 Q4 Q1 Q2 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN E-COM & Amazon Sales DACH Sales FR Sales UK Sales Iberia LOREM Sales Italy Sales Nordics Sales Benelux
Slide 30: Summary
Summary Revenue growth across Europe & ROW - we have the right products for this time! Development of internal & external revenue generating tools Revenue & EBIT In-Line with expectations from guidance Next product launches expected in Q3/Q4 Increased level of stock to mitigate availability, supply
Slide 31: Investor Relations
Allterco Group Investor Relations Upcoming events APR JUN JUN AUG NOV MAR 27th 16th 2023 1st Research Q1 Trading General H1 Trading Q3 Trading Q4 started with Update Meeting of the Update Update Consolidated Montega: Shareholders Financial Report https://allterco.c Update on om/en/for- Strategy & in
Slide 32: Supporting Information
Supporting Information Quarterly Revenue The information opposite is available in spreadsheet format via invest Accounting Notes https://allterco.com/en/for- investors/financial-results/consolidated- Quarterly Report on Activities 2022 Annex 4 Additional Information Inside Information
Slide 33: Definitions
Definitions Term Definition Term Definition Inorganic Inorganic growth arises from mergers or takeovers rather than an increase Earnings before interest and taxes (EBIT) is an indicator of a company's EBIT profitability. EBIT can be calculated as revenue minus expenses excluding tax and interest. Gr
Slide 34: Appendix - Notice to Reporting
Appendix - Notice to Reporting The following presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during any The Presentation includes statements that are, or may be deemed to be, forward-looking statements. These sta
Slide 35: Leadership Q&A
Allterco Group Leadership Q&A Wolfgang Kirsch CO - CEO Strategy & Operations Dimitar Dimitrov CO - CEO Research & Development
Slide 36: Investor Relations
Allterco Group Investor Relations Denitsa Stefanova Investor Relations Officer investors@allterco.com
Slide 37: H1 2022 Trading Update
~~ s ALLLERG H1 2022 Trading Update