Shelly Group PLC · BSESOF:SLYG
Shelly — Investor Day (November 2024)
66 slides from Shelly's investor day presentation, Nov 5, 2024
Slide 1: Capital Markets Day
CAPITAL MARKETS DAY 05 November 2024
Slide 2: Disclaimer
DISCLAIMER The following presentation, including any printed or electronic copy of these slides, the talks given by the presenters, the information communicated during any delivery of the presentation and any question and answer session and any document or material distributed at or in connection wi
Slide 3: Shelly – Smart Connectivity for the Home and Beyond
SHELLY – SMART CONNECTIVITY FOR THE HOME AND BEYOND 3
Slide 4: Shelly – Smart Connectivity for the Home and Beyond
SHELLY – SMART CONNECTIVITY FOR THE HOME AND BEYOND Software Solutions Energy monitoring Remote control Real-time Notifications Personalised scenes Custom schedules Smart Timers ENABLING AN ECO-FRIENDLY CONNECTED WORLD 4
Slide 5: Empowering Sustainable Living with Smart, Accessible Solutions
EMPOWERING SUSTAINABLE LIVING WITH SMART, ACCESSIBLE SOLUTIONS Shelly‘s Mission Shelly‘s Vision Shelly‘s Values Our team develops best value, smart Become the preferred partner that solutions that make people's lives offers long-lasting smart solutions Innovative Intentional easier, and help them us
Slide 6: Shelly's Team On-Site Today
SHELLY’S TEAM ON-SITE TODAY Dimitar Dimitrov Wolfgang Kirsch Nikolay Martinov Svetozar Iliev Co-Chief Executive Officer Co-Chief Executive Officer Member of the BoD Chief Financial Officer Mirche Atanasovski Denitsa Georgieva Karsten Sommer Dennis Dalgaard Chief Commercial Officer Investor Relations
Slide 7: Shelly – Key Investment Highlights
CONFIDENTIAL SHELLY – KEY INVESTMENT HIGHLIGHTS Market: Harnessing all growth angles in smart home and beyond Brand: Leading brand in the software-powered home automation market, ready for full globalisation Tech: Innovative software-powered home ecosystem provider, with rigorous focus on R&D, addre
Slide 8: Program
PROGRAM Smart home – at the edge of the mass market 1 Wolfgang Kirsch | 12:30-13:15, incl. Q&A [Wolfgang Kirsch | 12:30-13:15, incl. Q&A] Products & Technology – the Shelly difference 2 Dimitar Dimitrov | 13:15-14:00, incl. Q&A Revenue growth and scale-up potential 3 Wolfgang Kirsch | 14:30-15:15, i
Slide 9: Smart Home – At the Edge of the Mass Market
1 SMART HOME – AT THE EDGE OF THE MASS MARKET Wolfgang Kirsch | 12:30-13:15, incl. Q&A
Slide 10: Penetration of Automation in Home Has Been Low
THE PENETRATION OF AUTOMATION IN HOME HAS BEEN LOW FOR VARIOUS REASONS SO FAR… Historically expensive Relying on new builds / luxury residences Cumbersome with many different interfaces / no connectivity Low technological advancements Low efficiency / benefits Complex installation Limited consumer a
Slide 11: But the Time Is Now: The Future Home
…BUT THE TIME IS NOW: THE FUTURE HOME Proactive Seamless Integrated User-tailored Data security homes user experience system of devices insights and privacy Minimising households’ challenges to create safer, happier, and more comfortable living spaces Enhanced connectivity Energy prices driving dema
Slide 12: Smart Home Market Has Significant Runway for Growth Ahead
SMART HOME MARKET HAS SIGNIFICANT RUNWAY FOR GROWTH AHEAD 5 Next market phase 4 Market stabilisation 3 Market peak Smart home 2 Market growth market today 1 Product release Customer segment High tech customers Early adopters Mass market Source: Management estimates, market research and expert interv
Slide 13: A Large, Fast Growing and Untapped Total Addressable Market
A LARGE, FAST GROWING AND UNTAPPED TOTAL ADDRESSABLE MARKET… …largely untapped ...with significant Large total smart home market… industrial & commercial market… opportunity beyond smart home Smart home automation Industrial and commercial segments 10-15% 2023-26E 15-20% 2023-26E CAGR CAGR + + Smart
Slide 14: Growing Across a Diverse Set of Applications
…WHICH IS GROWING ACROSS A DIVERSE SET OF APPLICATIONS… Thermal Energy Smart Appliances Smart management management lighting network security ⚫ Real-time ⚫ Optimise usage of ⚫ Smart LED strips ⚫ Remote integration ⚫ Real-time alerts for temperature solar energy with with app-controlled for smart hom
Slide 15: And Thriving in Multiple Regions
…AND THRIVING IN MULTIPLE REGIONS Europe vs. USA New Build vs. Retrofit 10-15% 2023-26E CAGR 2x Retrofit TAM anticipated for both US and EU markets, highlighting similar robust compared to New Build market growth across regions ⚫ European market fueled by growing demand energy management solutions,
Slide 16: Supported by Secular Growth Trends
SUPPORTED BY SECULAR GROWTH TRENDS CONNECTED ENERGY COMMERCIAL SMART SAFETY & AUTOMATED INDUSTRIAL HOME MANAGEMENT APPLICATIONS SECURITY PROCESSES ⚫ Demand for ⚫ Rising adoption of ⚫ Expanding automation ⚫ Growth in monitored ⚫ Growth in solar integrated energy-efficient in lighting and heating secu
Slide 17: Most Customer Centric and Friendly Solution
WE HAVE CRAFTED THE MOST CUSTOMER CENTRIC AND FRIENDLY SOLUTION… EASE OF USE AND BEST HARDWARE BEST PRICE AND FLEXIBILITY AND Market segmentation INSTALLATION & SOFTWARE VALUE DATA SAFETY x2 price difference [PHOTO] [PHOTO] [PHOTO] And we do it in a cost-efficient Pro ⚫ Easy / plug-in ⚫ Proprietary
Slide 18: Applications Shaping Residential, Commercial and Industrial Spaces
…WITH APPLICATIONS SHAPING THE FUTURE OF RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL SPACES Residential Hotels, Offices and Senior Living Facilities Industrial Applications Comprehensive smart home management, integrating ✓Privacy control ✓Industrial solar farms lighting, security, energy and appliances
Slide 19: Key Takeaways
KEY TAKEAWAYS The smart home industry is on the brink of the mass market, with continued double-digit growth, further supported by favorable shifts in EU regulations Shelly leads the smart home revolution, ready to capitalise on global and European opportunities, leveraging its unique technological
Slide 20: Products & Technology – The Shelly Difference
2 PRODUCTS & TECHNOLOGY – THE SHELLY DIFFERENCE Dimitar Dimitrov | 13:15-14:00, incl. Q&A
Slide 21: A Seamless Ecosystem
A seamless ecosystem INTELLIGENT SOLUTIONS Energy Lights Security Access Garage Water Solar OPEN PLATFORM & PARTNER NETWORK ADVANCED CLOUD PLATFORM 21
Slide 22: Key Drivers of Shelly Technological Edge
KEY DRIVERS OF SHELLY TECHNOLOGICAL EDGE Proprietary secure cloud and fully open protocol 1.5mm+ Cloud users 100% in-house hardware and software development 40-60 New products1 Best access to world class engineering talent and software developers 100+ Shelly engineers Vertically integrated ecosystem
Slide 23: Shelly Community-Driven Product Innovation Strategy
SHELLY COMMUNITY-DRIVEN PRODUCT INNOVATION STRATEGY Social media feedback Collaborative Product Testing ⚫ Engage daily with Shelly fans for feedback ⚫ Share units with fan groups to accelerate ⚫ Incorporate community ideas into development product improvements ⚫ Validate concepts with user insights
Slide 24: At the Forefront of the Smart Home Revolution
AT THE FOREFRONT OF THE SMART HOME REVOLUTION +100 countries +15.5mm Devices sold Sales split by geography o/w +6.7mm LTM 1 Rest of World ~7% DACH region ~52% +1mm Social media reach +602 NPS 3 +1.5mm Shelly Cloud users Rest of Europe o/w +0.6mm LTM 1 ~41% Notes: 1 Last Twelve Months; 2 Consumer Ele
Slide 25: History of Shelly Technology In-House Innovation
HISTORY OF SHELLY TECHNOLOGY IN-HOUSE INNOVATION Gen 4 Gen 3 2025-2026 Gen 2 2023-2024 Gen 1 2021-2022 ⚫ Shelly1 ⚫ Shelly 1 Gen3 ⚫ Shelly Gen 4 2017-2020 ⚫ Shelly 1PM Gen4 ⚫ Shelly Plus 1 ⚫ Shelly 1PM Gen3 ⚫ Shelly 2PM Gen3 ⚫ Z-Wave long-range ⚫ Shelly 1 ⚫ Shelly Plus 1 PM ⚫ Shelly 2 PM ⚫ Shelly Min
Slide 26: Shelly App
pl to Shelly Ext
Slide 27: Shelly Smart Control
SHELLY SMART CONTROL One app to manage everything! Source : 27
Slide 28: Introducing Shelly Smart Control Premium
CONFIDENTIAL INTRODUCING SHELLY SMART CONTROL PREMIUM Upgrade Now Source : 28
Slide 29: Shelly Access Control System
Welcome to Shelly Access Control System Centralized Control and Beyond
Slide 30: Fleet Manager
Fleet 4} Manager Your Own Shelly | Universe Fleet Manager is a site £5 software, for'controlling and monitoring new generations of Shellydevices. Connect. Organize. Manage. Heattnceck Mentoring Intogratesdatabase ‘Shelly Management Data security Integration syne Features Fntble User Management custo
Slide 31: Shelly X
SHELLY X 31
Slide 32: Shelly X Portal
Shelly X Portal ShellyX Products ShellyShop v + Who we are? your smart connected devices, effortlessly No code required, no hidden fees, always free cloud or bring your own. All features and APIs of standard Shelly devices, customizable to fit your needs. Shelly X module for relays Shelly X module f
Slide 33: Shelly's Data Lake
SHELLY’S DATA LAKE 1.5+ MILLION CLOUD USERS 33
Slide 34: Accelerating Adoption of Shelly Devices
ACCELERATING ADOPTION OF SHELLY DEVICES Total number of devices1, mm >40 >30 20 8 13 2022 2023 2024 2025 2026 2027 2028 2029 2030 Current installed base to drive future innovation, cross-selling and software revenues Source: Management estimates, market research and expert interviews Notes: 1 Accumu
Slide 35: Overview of Long-Term Hardware & Software Development
OVERVIEW OF SHELLY'S LONG-TERM HARDWARE & SOFTWARE DEVELOPMENT Hardware SMART LOCKS INTELLIGENT SENSORS SMART CAMERAS LONG RANGE SHELLY X CHIP Commercial growth potential: New sensors enhance market Entering one of the largest Long-range tech offers Shelly X modules ensuring full only 2% of European
Slide 36: Key Takeaways
KEY TAKEAWAYS Shelly provides a full range of technology for comprehensive smart home connectivity Shelly is at the forefront of innovation, with upcoming Smart Locks and Smart Cameras poised to capture new growing adjacent markets Shelly has the right product and protocol for every use case, drivin
Slide 37: Revenue Growth and Scale-Up Potential
3 REVENUE GROWTH AND SCALE-UP POTENTIAL Wolfgang Kirsch | 14:30-15:15, incl. Q&A
Slide 38: Shelly – Smart Connectivity for the Home and Beyond
SHELLY – SMART CONNECTIVITY FOR THE HOME AND BEYOND 38
Slide 39: Well Articulated Growth Strategy
WELL ARTICULATED GROWTH STRATEGY Revenues: ~€200mm EBIT: ~€50mm C B A Revenues: €75mm EBIT: €19mm Shelly Market Establishing a Accelerated growth Continuous product Shelly 2023 growth decentralised through expansion 2026 sales team network effects (from DIY to Pro) Notes: EBIT steps in the graph not
Slide 40: Boots on the Ground – Increasing Local Presence
A BOOTS ON THE GROUND – INCREASING LOCAL PRESENCE Decentralising Shelly sales team… …in order to enhance customer engagement Full presence1 ✓ Offering local language technical support to better serve resellers and distributors Developed presence2 ✓ Fostering stronger relationships by being closer to
Slide 41: Building Towards Shelly Ecosystem
B BUILDING TOWARDS SHELLY ECOSYSTEM Quicker Shelly ecosystem deployment in new regions Average new device purchases per year New devices per year1, mm DACH Italy UK 3.3 60 2.5 50 0.4 40 Revenue (€mm) 30 Uplift of Shelly DACH operations in 2022 Number of Shelly’s repeat customers2 20 Customers with m
Slide 42: Safety & Security, Energy Management, Automation & Control
B Safety & Security • Access control • Door & window sensor • Smart lock • Smoke detection • Water detection • Gas detection Energy Management • Temperature monitoring & control • HVAC control • Power metering • Photovoltaic optimisation Automation & Control • Lighting control • Blind control • Gara
Slide 43: The Shelly Flywheel: From a Single Product to a Living Ecosystem
B THE SHELLY FLYWHEEL: FROM A SINGLE PRODUCT TO A LIVING ECOSYSTEM Economies of Scale Data / Tech ⚫ Higher purchasing volume: bulk buying ⚫ More data: enhances development and reduces costs insights ⚫ Better pricing: competitive pricing through ⚫ Better product: improves through data- efficiencies d
Slide 44: Leading Distribution Capabilities
C LEADING DISTRIBUTION CAPABILITIES Do-It-Yourself Professional 2023 2024E 2023 2024E Sales 80% Of total 23A sales 70% Of total 24E sales 20% Of total 23A sales 30% Of total 24E sales split ⚫ Cloud-independent functionality ⚫ Cost competitiveness enables more devices / installation charges ⚫ High se
Slide 45: Growth Prospects and Go-To-Market Strategy
C GROWTH PROSPECTS AND GO-TO-MARKET STRATEGY Rapid pace of adoption… …driven by Shelly’s market leading products and omni-channel GTM Professional DIY No. of distributors onboarded on Shelly Market growth Growth beyond Value for customers 100% in-house Shelly community core plan development 35-40 20
Slide 46: Capitalising on Tailwinds in Sustainability-Driven Markets
CAPITALISING ON TAILWINDS IN SUSTAINABILITY-DRIVEN MARKETS… Residential Corporate EU Energy Performance of Buildings Directive EU Corporate Sustainability Reporting Regulation sets minimum energy performance requirements for new and renovated buildings requires ESG metric disclosures, including ener
Slide 47: Course to Deliver Sustainable Operational Impact
…WHILE SETTING ON A COURSE TO DELIVER SUSTAINABLE OPERATIONAL IMPACT Shelly’s path towards a fully decarbonised value proposition… …is shaped by today’s actions Renewable energy consumption by 2030 100% ✓GHG baseline assessment ✓Carbon accounting Energy efficiency gains by 2030 70% ✓Digital tools ✓S
Slide 48: Key Takeaways
KEY TAKEAWAYS Shelly's growth strategy uses decentralised control, network effects, and product expansion to boost revenue and customer engagement The Shelly Flywheel effect, fueled by device adoption and community engagement, drives market penetration and strengthens competitive position Continuous
Slide 49: Best-in-Class Financial Profile and Outlook
4 BEST-IN-CLASS FINANCIAL PROFILE AND OUTLOOK Wolfgang Kirsch | 15:15-16:00, incl. Q&A
Slide 50: Key Financial Highlights
KEY FINANCIAL HIGHLIGHTS H1 2024 FIGURES €42mm 55% 26% 22% ~5.1x Sales, Gross margin, EBIT margin, Net margin, Cash ratio, +49% YoY (0.7p.p.) YoY +1.4p.p. YoY +1.3p.p. YoY (1.2x) YoY1 Notes: 1 As of 2023A 50
Slide 51: Best-in-Class Financial Profile
BEST-IN-CLASS FINANCIAL PROFILE Strong top-line growth Expanding profitability Solid cash position Revenue (€mm) EBIT (€mm) Cash & equivalents (€mm) % YoY growth % margin 28% 57% 57% ~40% 31% 22% 26% ~25% 105 75 48 26 30 19 16 16 10 14 10 9 2021 2022 2023 2024E 2021 2022 2023 2024E 2021 2022 2023 20
Slide 52: Demonstrated History of Market Outperformance
DEMONSTRATED HISTORY OF MARKET OUTPERFORMANCE ~3x ~68% ~3x ~40% 15-20% 10-15% Market CAGR Shelly CAGR Market CAGR Shelly CAGR 2018-2023 2018-2023 2023-2026E 2023-2026E 1 Shelly has consistently outperformed the market by leveraging innovative solutions and strong brand presence, and is set to contin
Slide 53: Historic Performance Against Guidance
HISTORIC PERFORMANCE AGAINST GUIDANCE EUR, mm Shelly’s guidance Shelly’s revised guidance3 Actual year-end financials 2020 2021 2022 2023 +4% 72 2 75 +9% Revenue +9% 48 441 +12% 28 30 18 20 +12% 4 19 17 EBIT +12% +28% +80% 10 9 9 5 6 5 Shelly has a proven track record of guidance outperformance Sour
Slide 54: Pillars Supporting Financial Profile
PILLARS SUPPORTING FINANCIAL PROFILE Growth Margins Cash generation Market expansion Supply chain Asset light Driven by underlying market growth, Upside from China outsourcing and Allows for minimum CapEx, freeing up share gains and new market entry partial shift from air freight to sea freight cash
Slide 55: Shelly's Proven Margin Sustainability
SHELLY'S PROVEN MARGIN SUSTAINABILITY EBIT (€mm) Gross profit (€mm) % margin % margin Hybrid local / central model: critical R&D and HQ functions in Bulgaria to offset increased local sales presence in Western Europe, with factory 31% 22% 26% ~25% 55% 50% 57% ~55% production and sourcing controlled
Slide 56: Shelly Near and Medium-Term Financials
SHELLY NEAR AND MEDIUM-TERM FINANCIALS EUR, mm 2024E 2026E CAGR, 2024-26E 105 200 +38% Sales 26 50 +39% EBIT Source: Management estimates 56
Slide 57: Shelly Capital Allocation Targets
SHELLY CAPITAL ALLOCATION TARGETS Organic growth: cash supports R&D, Working Capital and product expansion, targeting reserves ~2x EBIT M&A / inorganic growth: strategic acquisitions like LOQED and Qubino aimed at market expansion Shareholders’ return: small traditional payout, with plans tied to FC
Slide 58: Successful M&A Track Record with Firepower for Future Growth
SUCCESSFUL M&A TRACK RECORD WITH FIREPOWER FOR FUTURE GROWTH ⚫ In July 2024, Shelly acquired LOQED, a Dutch provider of smart locks devices ⚫ The acquisition allows Shelly to expand its footprint in the fast-growing smart locks market, aligning with its strategy to enhance smart home offerings LOQED
Slide 59: Charting the Future: Shelly's 2030 Vision
CHARTING THE FUTURE: SHELLY'S 2030 VISION FOR GROWTH AND INNOVATION Additional envisioned offerings E D C B 2-3x A market Revenues: €200mm 10-15% EBIT: €50mm Shelly Market growth Market Shelly AI-driven predictive Shelly Advance energy Cloud management Expansion into new Shelly 2026 2026-30 outperfo
Slide 60: Additional Growth Initiatives Underway
ADDITIONAL GROWTH INITIATIVES UNDERWAY A B C D E AI-driven Shelly Advance energy Cloud management & Expansion into new predictive maintenance SaaS management solutions data monetization adjacent markets & regions Shelly Cloud Management, Expanding into high-growth AI predictive maintenance Shelly Sa
Slide 61: Key Takeaways
KEY TAKEAWAYS Shelly’s outstanding financial record has outpaced a growing market by ~3x historically, with Shelly’s strategy designed to maintain this outperformance Continued growth is firmly underpinned by robust pillars across the top-line, margins and cash generation Low leverage and high level
Slide 62: Shelly – Key Investment Highlights
CONFIDENTIAL SHELLY – KEY INVESTMENT HIGHLIGHTS Market: Harnessing all growth angles in smart home and beyond Brand: Leading brand in the software-powered home automation market, ready for full globalisation Tech: Innovative software-powered home ecosystem provider, with rigorous focus on R&D, addre
Slide 63: Thank You
SHELLY GROUP
Slide 64: Appendix
APPENDIX
Slide 65: Shelly's Unique and Integrated Value Proposition
SHELLY’S UNIQUE AND INTEGRATED VALUE PROPOSITION WIDE OFFERING RANGE PRODUCT ACCESSABILITY EXPERT SALES TEAM SCRIPTING ⚫ Wide range of automation ⚫ Omni-channel distribution and ⚫ Expert team with product, ⚫ Scripting enables everyone “to solutions for advanced living competitive pricing ensure appl
Slide 66: Key Distribution Platforms
KEY DISTRIBUTION PLATFORMS Do-It-Yourself Professional 66