Shelly Group Plc · BSESOF:SLYG
Shelly — 9M 2024 Earnings Presentation
35 slides from Shelly's earnings presentation, Nov 14, 2024
Slide 1: Trading Update 9M 24
TRADING UPDATE 9M 24 NOVEMBER 14TH, 2024
Slide 2: Your speakers today
Your speakers today Highlights Wolfgang Kirsch 9M 24 CO-CEO Strategy & Operations Product Dimitar Dimitrov CO-CEO Research & Development Financial Wolfgang Kirsch Details CO-CEO Strategy & Operations
Slide 3: Shelly – Smart Connectivity for the Home and Beyond
SHELLY – SMART CONNECTIVITY FOR THE HOME AND BEYOND
Slide 4: Shelly – Key Investment Highlights
SHELLY – KEY INVESTMENT HIGHLIGHTS
Slide 5: Highlights 9M 24
Highlights 9M 24 Wolfgang Kirsch
Slide 6: Leading Smart Building Platform
Leading Smart Building Platform +18 M ** +3.6 M ** +1.67 K ** Devices sold Households Cloud users +8 M +1 M +570 K Last 12 months Last 12 months Last 12 months **since 2018
Slide 7: Key Highlights
Key Highlights • Revenue growth outperforming the market in all regions • Successful expansion of distribution channels • 240 new installers onboarded (from 470 to >710) • Presence on 6 trade shows in Q3 (Europe and Asia) • Significant growth of addressable customer ownership • Phase-out of older pr
Slide 8: Financial Highlights 9M 22-24
Financial Highlights 9M 22-24 (inmillion EUR) Revenue EBIT Cash CAGR 48,2 % CAGR 47,6% 18.1 65.0 15.4 +29.2% +42.9% -37.1% +47.2% 11.9 12.7 44.1 48.9% +68.6% 11.4 29.6 7.0 9M 22 9M 23 9M 24 9M 22 9M 23 9M 24 30.9.22 30.9.23 30.9.24 Sustainable & significant above market EBIT-Margin of 23.6% is on tr
Slide 9: Growing distribution platforms
Growing distribution platforms Do-it-yourself Professional
Slide 10: The Shelly Installer Finder
The Shelly Installer Finder • The easy way to find your installer – in case doing the installation yourself is not an option • Launched in March 2024 • Installer live on platform: − Germany: >520 − Austria: >60 − Switzerland: >30 − Denmark: >80 − Finland: >20 − Sweden: >2 − Luxembourg: >2
Slide 11: Product
Product Dimitar Dimitrov
Slide 12: A seamless ecosystem
A seamless ecosystem INTELLIGENT SOLUTIONS OPEN PLATFORM & PARTNER NETWORK ADVANCED CLOUD PLATFORM © Energy crestone. % SmartThings © O Lights Security CVS pharmacy @ Gp O torey Yosatone Home Assistant Access Garage Water Solar Qvodacom harman/kardon = © amazonalexs. ~OBroker by HARMAN GHooes Gores
Slide 13: Shelly Community-Driven Product Innovation Strategy
SHELLY COMMUNITY-DRIVEN PRODUCT INNOVATION STRATEGY ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫
Slide 14: A wider product range is one of the drivers of revenue growth
A wider product range is one of the drivers of revenue growth 92 * 23 • 2023: 6 Products updated 21 New products released 70 * 29 3 New product categories 21 49 * 6 • 2024 9M: 29 Products updated 23 New products released 1 New product categories • 2024 Outlook: 40-60 New products and product updates
Slide 15: History of Shelly Technology In-House Innovation
HISTORY OF SHELLY TECHNOLOGY IN-HOUSE INNOVATION Gen 4 Gen 3 Gen 2 Gen 1 ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Hardware ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ ⚫ Software Technology
Slide 16: Financial Details
Financial Details Wolfgang Kirsch
Slide 17: Financial Highlights 9M 22-24
Financial Highlights 9M 22-24 (inmillion EUR) Revenue EBIT Cash CAGR 48,2 % CAGR 47,6% 18.1 65.0 15.4 +29.2% +42.9% -37.1% +47.2% 11.9 12.7 44.1 48.9% +68.6% 11.4 29.6 7.0 9M 22 9M 23 9M 24 9M 22 9M 23 9M 24 30.9.22 30.9.23 30.9.24 Sustainable & significant above market EBIT-Margin of 23.6% is on tr
Slide 18: Revenue Q over Q
Revenue Q over Q (inmillion EUR) Revenue Q1 22-24 Revenue Q2 22-24 Revenue Q3 22-24 CAGR 53.0% CAGR 49.3% CAGR 43.3% 20.5 21.2 23.2 +45.5% +52.7% +43.9% 14.1 16.1 13.9 +42.9% +61.0% +46.1% 11.3 8.8 9.5 Q1 22 Q1 23 Q1 24 Q2 22 Q2 23 Q2 24 Q3 22 Q3 23 Q3 24 • Continuous revenue growth, quarter over qu
Slide 19: EBIT Q over Q
EBIT Q over Q (inmillion EUR) EBIT Q1 22-24 EBIT Q2 22-24 EBIT Q3 22-24 CAGR 21.8% CAGR 51.2% 5.3 CAGR 88.5% 4.9 4.6 5.5 -6.1% +44.8% +58.1% 3.7 +66.7% 3.1 3.3 +57.8% 2.3 +106.3% 1.6 Q1 22 Q1 23 Q1 24 Q2 22 Q2 23 Q2 24 Q3 22 Q3 23 Q3 24 • EBIT margin YTD at 23.7% - in Q3 at 20.0% - impacted by some
Slide 20: Regional share and growth
Regional share and growth (in million EUR) 32.5 • Leading region with strong growth 22.1 +47.4% DACH • Local structure and new channels enable continuous growth in 2024 and 51.4% beyond 9M 23 9M 24 26.2 • Good development, especially in Italy & 18.7 +40.2% Iberia Rest of • Local teams hired. Growth
Slide 21: Premium App
Premium App Revenue No. of Users >2.5 >60 • Premium App users still at a low level, but promising initial results • No. of users on target, revenue delayed >1.2 >30 because of trial period effect 20 +0.7 18 • >2.5 M euros in revenue expected in 2026 0.3 • Gross margin is almost 100% 9M 24 2024e 2025
Slide 22: Cash Flow
Cash Flow (in million EUR) 15.7 -1.4 0.2 -3.0 • Inventory increased by 12.7 M (22.0M total) -0.2 11.4 • 240 K higher prepayments (5.5 M total) • Increase of shares in Shelly Tech and Shelly Asia - 1.137 M • R&D investments of -1.9 M • Sale of assets +3.0 M • Loan repayment -1.0 M • Dividend payments
Slide 23: Working Capital and Margin Measures for 2025
Working Capital and Margin Measures for 2025 Working Capital Margin Better planning tools as basis for optimization (e.g. SAP) • Dedicated Procurement department in Sofia and in China • Reduction of stock (from 4-5 months to 3-4 months) • More shipments using sea freight instead of air freight • Sta
Slide 24: Profit & Loss 9M 24
Profit & Loss 9M 24 (in million EUR) Period 9M 23 9M 24 Revenue 44.137 64.953 47.2% • Stable gross margin, no price increases Gross Profit 25.241 37.205 47.4% Gross Margin 57.2% 57.3% • Increasing Sales & Marketing spend, due to higher trade show presence, third-party Sales & Marketing -2.621 -9.565
Slide 25: Guidance vs. Achievement
Guidance vs. Achievement
Slide 26: Achievement of Annual Revenue Target
Achievement of Annual Revenue Target (in million EUR) 105.0 • 9M achievement on similar level as previous 2 years 74.9 • A small head start in achieving the annual sales target of 105 million euros. 47.6 • Annual target confirmed 61.3 % 58.9 % 62.2 % 9M 2022 2023 2024
Slide 27: Summary
Summary • 9M 24 Revenue above target • Regional expansion continues • Guidance for 2024 (105 M Euro revenue & 26 M Euro EBIT) • EBIT in Q4 lower than average due • Strong progress in moving from the confirmed to marketing and sell out activities DIY to the professional market • 2026 goal of +200 M E
Slide 28: Q&A
Q&A Scan to download Scantosubscribetothe presentation newsletter
Slide 29: Appendix
Appendix
Slide 30: Investor relations – 1st HY events
Investor relations 1st HY events Feb Apr Apr May June 27 24 30 16 4 Q4 2023 MKK Planet Q1 General Meeting of Trading Münchner MicroCap Trading the Shareholders Update Kapitalmarkt Investors Club Update Konferenz Showcase Las Update on Guidance Vegas Strategy 2024
Slide 31: Investor relations – 2nd HY events
Investor relations 2nd HY events Aug Aug Oct Nov Nov Nov 14 21-22 23-26 5 14 25-27 H1 HIT Baader Planned 9M Eigenkapital Trading Hamburger Investment Capital Trading Forum Update Investorentage Conference Market Update Frankfurt Munich Day corporate.shelly.com/publications/financial-results/ investo
Slide 32: Definitions
Definitions Term Definition Term Definition Earnings before interest and taxes (EBIT) is an indicator of a company’s profitability. Inorganic Inorganic growth arises from mergers or takeovers rather than an increase in the EBIT EBIT can be calculated as revenue minus expenses excluding tax and inter
Slide 33: 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 presentation includes statistics, data and other information relating to markets, market sizes, market the information communicated during any d
Slide 34: Investor relations
Investor relations Denitsa Georgieva Investor Relations Officer investors@shelly.com
Slide 35: Shelly Group
SHELLY GROUP S