Shelly Group Plc · BSESOF:SLYG
Shelly — Q1 2023 Earnings Presentation
43 slides from Shelly's earnings presentation, May 16, 2023
Slide 1: Trading Update Q1 – May 16th, 2023
…ENABLING AN ECO-FRIENDLY CONNECTED WORLD Trading Update Q1 May 16th, 2023
Slide 2: We Make Smart Home Solutions
We Make Smart Home Solutions …ENABLING AN ECO-FRIENDLY CONNECTED WORLD 2
Slide 3: Highlights, Product, Financial Details & Outlook
Highlights Wolfgang Kirsch CO-CEO Strategy & Operations Product Dimitar Dimitrov CO-CEO Research & Development Financial Wolfgang Kirsch Details & CO-CEO Strategy & Operations Outlook
Slide 4: Highlights Q1/2023
Highlights Q1/2023 Wolfgang Kirsch
Slide 5: Financial Highlights Q1/23
Financial Highlights Q1/23 (IOT revenue only, in Mio. €) Revenue EBIT EBITDA ● Strong EBIT Development ● FCF In ● EBITDA Development in line ● Growth Rate increased vs. ● EBIT Margin: 26.2% 9M21:1959 with EBIT Development 2022 (61.0% vs. 24.5%) ● EBIT 2022 impacted by ● 9M22: EBITDA Margin:- 27.2% o
Slide 6: Key Highlights Q1/2023
Key Highlights Q1/2023 • Revenue Growth: 61.0% • EBIT-Margin: 26.2% • EBITDA-Margin: 27.2% • Increased Capital Market Activity • Acquisition of GOAP closed and signed • Sucessful Consumer Electronics Show Las Vegas 6
Slide 7: Key Highlights Q1/2023
Key Highlights Q1/2023 • New web shop launched • English, German, French & US versions • First contracts with new distribution channels • Rexel - Finnland • Lemvigh-Müller - Denmark • 7 regional wholesalers - Germany • +2000 Installers trained • Technical School Programm started in Germany & Nordics
Slide 8: Large & Growing Community
Large & Growing Community • +10 social channels / +150k followers 10k • +1.5m social post reach 60k • Independent Shelly support groups with +100k members • + 2000 user generated videos 70k 5k 8
Slide 9: Leading Smart Home Platform
Leading Smart Home Platform +8.8m** +3.1m +100 countries Devices sold LTM +1.5m** +60* Social reach NPS +857k** New every 6.5 sec. Cloud users *Consumer Electronics 2022: Ø 52 **31.03.2023 9
Slide 10: Product
Product Dimitar Dimitrov ® ALLTERCO
Slide 11: Shelly.cloud
Shelly.cloud
Slide 12: Introducing Shelly Smart Control
Introducing helly Smart Control One app to manage everything! Sholly
Slide 13: Control your house and bills
Control your house and bills [mene | te | seme | Amt | me
Slide 14: Why Shelly wins
Why wins Hardware Software Community No Hub Free App +150k active Attractive price Compatibility members WIFI repeater European Cloud gateway + Open protocols + +2k user videos NPS +60 100% own 100% own +100 partners development development = = = +8.8m sold devices Every 6.5s new +1.8m households de
Slide 15: Why Shelly wins - outlook
Why wins - outlook Hardware Software New Shelly New Shelly Chip + Operating System = = more power More flexibility & functions & future readiness 15
Slide 16: Shelly Academy
Strolly Academy SHELLY SCRIPTING BASICS COURSE Harness our Most Powerful Feature for Limitless Smart Home Possibilities!
Slide 17: Product Outlook 2023
• Launch of up to 10 new Shelly Product Outlook 2023 products in July • WIFI • Bluetooth • Z-Wave • Launch of up to 10 more products in September • First Alexa special products in Q4/23 • New operating system • Shelly OS • Gen3 Products • with new Chip & Operating System Q4/23 17
Slide 18: Financial Update & Strategy
Financial Update & Strategy Wolfgang Kirsch
Slide 19: Revenue Q1/2023
Revenue Q1/2023 14.1 • CAGR of 85.9% for the period CAGR 85.9% 2018 – 2023 (Q1) 8.8 • Strong Top line Performance with 61% growth in Q1/2023 7.0 • Revenue in Q1/2023 realised 3.5 without aggressive promotions 2.0 0.635 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 * IoT Business in Mio.€ 19
Slide 20: Revenue Breakdown by Brand
Revenue Breakdown by Brand Based on 3M/23 – in Mio.€ Shelly Myki 2.2% 0.3 13.8 ● Total product revenue +61% 3.2% 3.5% 0.28 ● Shelly revenue +63% 0.25 8.5 6.8 ● Myki revenue +9% 96.5% 96.8% 97.8% ● Clear focus on Shelly as the dominant brand Q1 21 Q1 22 Q1 23 20
Slide 21: Revenue Breakdown Channel (B2B vs D2C)
Revenue Breakdown Channel (B2B vs D2C) Based on 3M/23 – IOT revenue 19% 16% Q1 2022 Q1 2023 8.8 Mio.€ 14.1 Mio.€ 81% 84% D2C B2B D2C B2B 21
Slide 22: Revenue Breakdown by Region
Revenue Breakdown by Region Based on 3M/23 Rest of Europe 16% Northern Europe 34% 9.6% 66% 7.6% 84% D2C B2B D2C B2B DACH 10% 50.7% 90% D2C B2B Rest of World 5% 45% Southern Europe 55% 8.5% D2C B2B 23.6% 95’% D2C B2B 22
Slide 23: DACH, North- & South Europe
DACH, North- & South Europe ( in Mio. € ) ● Strongest region with overproportional development DACH ● Local structure enables stronger 2023 growth rate ● Very positive development in Iberia and Italy Southern Europe ● Still much higher potential ● First effect from local sales structure Northern Eur
Slide 24: Rest of Europe & Rest of the World
Rest of Europe & Rest of the World ( in Mio. €) ● Negative development in non focus Rest of countries Europe ● “Cleaning Up” – Effect ● Measures taken to change the trend ● Solid development Rest of World ● High potential for future growth
Slide 25: Profit & Loss
Profit & Loss ( in K ) • COGS impacted by currency rate Period Q1 2021 Q1 2022 Δ Q1 2023 Δ and optimised supply chain Revenue 7.653 8.769 +15% 14.116 +61% • Margin above Budget Gross Profit 3.650 4.738 +30% 7.653 +62% Gross Margin 47.7% 54.0% 54.2% • COGS & Promotion Effect +26% 0% Sales & Marketing
Slide 26: Cash Flow
Cash Flow ( in Mio. € ) 5.2 • Inventory reduced from 11.8 Mio.€ 17.2 to 10.7 Mio. € -2.3 -0.65 -0.04 14.4 • Less prepayments to factories • CFI mainly affected the GOAP acquisition in January 2023 • Small negative FX effects mainly from USD 26
Slide 27: Guidance, Market & Sources for Growth
Guidance, Market & Sources for Growth
Slide 28: Guidance 2023 - 2026
Guidance 2023 - 2026 Guidance in € Targets 2022 Baseline 2023 2026 Regional Expansion, Increase Revenue Revenue CAGR >43.2% 47.6M 72M >200M YoY Growth 56.6% 51.0% >320% vs. 2022 EBIT CAGR >48.1% 10.4M >17.0M >50M EBIT Margin 22% >23% >25% 28
Slide 29: Framing the Opportunity: Households
Framing the Opportunity: Households 93m Households (EU27, 2027)* CAGR ~ 20% Market growth until 2027 39m Households ~ 4% (EU27, 2022)* Market share 1.5m* FY22 Households *estimate *Source: Statista 29
Slide 30: Household Potential
Household Potential # devices per cloud user • Potential of 3.5 devices per cloud user to 8.2 current average x 1.5m hh* x 15€ ~ 80m € 6.4 Δ 3.5 → Revenue Potential 4.9 4.7 • Data supports further increase of devices 3.2 per household • Top 50k clients have average of 23.5 <1 Years 1-2 Years 2-3 Yea
Slide 31: B2B-Professional Potential
B2B-Professional Potential Today Potential • Professional B2B Market substantially bigger than DIY • Negotiations with largest distributors underway • Cooperation with several professional schools initiated DIY Professionals 31
Slide 32: Cloud Potential
Cloud Potential Shelly cloud (in K) 857 CAGR 116% + 27% 180 • 180K new cloud users in only 3 months 677 • Fast growing cloud user base 313 • Accelerating in Q1/23 364 • 40% of all products sold registered in cloud 171 193 • New app launch with freemium model in 67 126 Q2/23 before 2019 2020 2021 202
Slide 33: Geographic Potential
Geographic Potential Catching Up in Europe Entering the US Market Potential Market Potential ∑ 400 m € ∑ 200 m € 33
Slide 34: Summary – Q1/2023
Summary – Q1/2023 ● Continuing strong and profitable growth ● Investments in future developments done – transformation to manage higher growth rates ● Very solid financial situation - equity ratio of 87.4 % ● Headcount doubled in the last 12 month – mainly in R&D and Sales ● New online shop live – E
Slide 35: Forward Looking Goals - 2023
Forward Looking Goals - 2023 ● Planned growth from 47.6 Mio. € (2022) to 72 Mio. € (2023) ● Planned EBIT of +17 Mio. € (2023) ● Addressing regions with high potential (France, UK, Nordics, Italy, Iberia) ● Internal HR development program started – Investment in the future ● Stronger than ever R&D te
Slide 36: Forward Looking Goals – 2024ff
Forward Looking Goals – 2024ff ● Growing to +200 Mio. € (2026) ● EBIT target of +50 Mio. € (2026) ● Addressing more regions with local sales teams (Poland, Turkey, …..) ● Build strong structures to enable faster growth ● Stay technically ahead of competition – Benefit from new Shelly Chip & Operatin
Slide 37: Investor Relations
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Slide 39: ALLTERCO
@ ALLTERCO
Slide 40: Appendix
Appendix ® ALLTERCO
Slide 41: Definitions
Definitions Term Definition Term Definition Earnings before interest and taxes (EBIT) is an indicator of a company's EBIT profitability. EBIT can be calculated as revenue minus expenses excluding Inorganic Inorganic growth arises from mergers or takeovers rather than an increase in tax and interest.
Slide 42: 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 43: Investor Relations
Allterco Group Investor Relations Denitsa Stefanova Investor Relations Officer investors@allterco.com