Slides
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TRADING UPDA TE H1/25 AUGUST 15TH, 2025
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Wolfgang Kirsch CO-CEO Strategy & Operations Dimitar Dimitrov CO-CEO Research & Development Wolfgang Kirsch CO-CEO Strategy & Operations Product Financial Details Highlights H1/25 Y our speakers today Highlights
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SHELL Y –smart connectivity for the home and beyond Custom schedules Smart Timers Real-time Notifications Personalised scenes Energy monitoring Remote control ENABLING AN ECO-FRIENDLY CONNECTED WORLD Software Solutions
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Highlights H1/25 Wolfgang Kirsch
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I n s t a l l e d b a s e i n > 1 0 0 c o u n t r i e s > 26.5 M ** Devices sold + 11.5 M Last 12 months > 4.9 M ** Households + 1.6 M Last 12 months > 2.3 M ** Cloud users + 800 K Last 12 months **since 2018 Unlocking a Software-as-a-Service business model Customer ownership becoming the top objective and KPI
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Key Highlights H1 Financial growth • Revenue above and EBIT on target • Growth above market average in all regions Distribution • Successful enlargement of distribution channels in DIY & Pro • Installer network members increased from 900 (31.12.24) to more than 2400 Customer ownership • Overproportional growth of cloud activations • Significant growth of addressable customer ownership • Strong increase of Premium App
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New verticals to grow share of wallet and household ownership Insurance Security Systems Smoke Detectors Water Valves Water Sensors Garage Doors Roller Shutters Shading Systems Energy Contracts Status Good progress Early stage Z-Wave Long Range with great visibility in the US First test planned for Q4/25 or Q1/26 Motors
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Shelly launched its first co-branded products with Ecoflow The new power management devices are built to work seamlessly with EcoFlow’s STREAM Series Plug & Play Solar Plant, offering: LAN-based communication with ≤1s response time Real-time energy monitoring and control Full-home visibility — from appliance to grid This is the first major milestone in co-branded initiatives worldwide Shelly Pro 3EM Shelly Plug S Gen3
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Revenue Cash • Sustainable growth • H1/25 above target (29.3% vs. 26.3%) • FCF measures show first results • Cash significantly improved vs H1/24 Financial Highlights H1/25 (in million EUR) H1 23 H1 24 H1 25 28.0 41.8 54.0 +49.0% +29.3% CAGR 38.8% H1 23 H1 24 H1 25 6.9 10.9 12.2 +57.3% +12.6% CAGR 33.1% • EBIT Margin at 22.6% as expected for H1 • Exchange rate adj. EBIT at 13.7M (25.4%) EBIT 19.8 H1 23 H1 24 H1 25 18.6 -47.0% +77.1% 10.5 * 1.6M EUR negative effect due to unfavorable USD exchange rate from revaluation of pre-payments
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Product Dimitar Dimitrov
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128 13 19 2024 2025 H1 156 * Excluding Accessories • 2025 H1: 19 Products updated 13 New products released • 2025 Outlook: 40-60 New products and product updates 1 New category Around 50 products will be discontinued • At IFA 2025, 30+ new products to be announced New products and product updates H1 2025
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Innovation share – shift to new generations 27% 1% 20% 7% 73% 64% 59% 45% 34% 21% 39% 8% 2022 2023 2024 H1 2025 GEN 1 GEN 2 GEN 3 GEN 4
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Daily activations average +50% vs. 2024 0 2000 4000 6000 8000 10000 12000 14000 16000 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 101 103 105 107 109 111 113 115 117 119 121 123 125 127 129 131 133 135 137 139 141 143 145 147 149 151 153 155 157 159 161 163 165 167 169 171 173 175 177 179 181 183 185 187 189 191 193 195 197 199 201 203 205 207 209 211 New devices added into cloud comparison devices_2024 devices_2025 Average total percentage growth: 50.68% Increase of customer ownership – PoC to become a SaaS company
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Product ramp up 2025 Q1/2025 ⚫ Shelly Display 2x ⚫ Shelly Outdoor Plug ⚫ Shelly DALI controller ⚫ Shelly Dimmer G3 Q2/2025 ⚫ LOQED 1 ⚫ Shelly 1 Gen4 ⚫ Shelly 1PM Gen4 ⚫ Shelly 2PM Gen4 ⚫ Shelly Flood Gen4 ⚫ Shelly 1L + 2L Gen3 Q3/2025 ⚫ Shelly Power Strip ⚫ Shelly Presence Sensor ⚫ XL Display ⚫ Ultrasonic Sensor ⚫ others Q4/2025 ⚫ Shelly Cameras ⚫ Shelly Pro Gen4 ⚫ Weather Station ⚫ Shelly Bulbs ⚫ Plug PM
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FINANCIALDET AILS WOLFGANGKIRSCH
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Revenue Cash • Sustainable growth • H1/25 above target (29.3% vs. 26.3%) • FCF measures show first results • Cash significantly improved vs H1/24 Financial Highlights H1/25 (in million EUR) H1 23 H1 24 H1 25 28.0 41.8 54.0 +49.0% +29.3% CAGR 38.9% H1 23 H1 24 H1 25 6.9 10.9 12.2 +57.3% +12.6% CAGR 33.1% • EBIT Margin at 22.6% as expected for H1 • Exchange rate adj. EBIT at 13.7M (25.4%) EBIT 19.8 H1 23 H1 24 H1 25 18.6 -47.0% +77.1% 10.5 * 1.6M EUR negative effect due to unfavorable USD exchange rate from revaluation of pre-payments
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Revenue Q1 23-25 Revenue Q over Q (in million EUR) 14.1 Q1 23 Q1 24 Q1 25 20.5 26.4 +45.4% +28.9% CAGR 36.9% 13.9 Q2 23 Q2 24 Q2 25 21.2 27.5 +52.6% +29.6% CAGR 40.7% Revenue Q2 23-25 • Continuous revenue growth, quarter over quarter • Revenue in Q2 slightly below the planned 30% • Revenue in H1 above target (54.0М vs. 52.8М) • 30 quarters of consecutive growth
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EBIT Q1 23-25 3.7 Q1 23 Q1 24 Q1 25 5.4 6.7 +46.3% +23.0% CAGR 34.2% 3.3 5.5 Q2 23 Q2 24 Q2 25 5.4 +64.9% +1.4% CAGR 29.3% EBIT Q2 23-25 • EBIT on planned level* • Annual EBIT target unchanged at 25% • Revenue progression and gross margin expectations in H2 support EBIT target EBIT Q over Q (in million EUR) • Currency adj. EBIT at 7.1M (26.9%) • Currency adj. EBIT at 6.6M (24.0%) * 1.6M EUR negative effect due to unfavorable USD exchange rate from revaluation of pre-payments
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Rest of World 7,7% DACH 46,7% Rest of Europe 45,6% Regional share and growth (in million EUR) • Good development especially in Italy and Nordics • UK growing over proportionally, but still low level • Overproportional growth outside of Europe, but still on low level and opportunistic • Positive development in Asia and Australia • Strongest region with good development despite weak general economic momentum • New initatives give promissing outlook for the mid term H1 24 H1 25 21.5 25.9 +20.5% 17.3 H1 24 H1 25 22.8 +31.6% 2.9 H1 24 H1 25 5.3 +83.7%
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Cash Flow (in million EUR) • Operations generate 6.2 M more cash • Total R&D investments of 2.1 M • Leasing payment of 0.4 M • Loans received 1.7 M • Cash effect of FX losses increased by 0.3 M • Equity Ratio of 81.0% 719 Cash 2024 6.184 CFO* -1.982 CFI CFF -311 FX 18.596 Cash Q2 2025 13.985 * CFO – Cash Flow from Operations, CFI – Cash Flow from Investing Activities, CFF – Cash Flow from Financing Activities, FX – Foreign Exchange
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Working Capital and Margin Measures for 2025 • Dedicated Procurement department in Sofia and in China • More shipments using sea freight instead of air freight • Price negotiations with factories and suppliers (economies of scale) • Improved stock control leads to better margins • Reduction of stock range (from 4-5 months to 3-4 months) • Improvement of negotiations of payment terms with Chinese (and US) suppliers • More restrictive customer payment terms • Factoring as an option Working Capital Margin Better planning tools serve as a basis for optimization (e.g. SAP)
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Profit & Loss H1 23-25 (in million EUR) Period H12023 H1 2024 H12025 Revenue 28.011 41.750 +49.0% 53.967 +29.3% GrossProfit 15.638 23.006 +47.1% 30.115 +30.9% GrossMargin 55.8% 55.1% 55.8% Sales& Marketing -1.401 -4.013 +186.4% -6.041 +50.5% & ofRevenue -5.0% -9.6% -11.2% G & A -7.272 -8.137 +12.8% -11.896 +46.2% % ofRevenue -26.0% -19.5% -22.0% EBIT 6.965 10.855 +54.9% 12.178 +12.7% EBITMargin 24.9% 26.0% 22.6% NetIncome 5.843 9.255 +58.4% 10.191 +10.1% NetIncomeMargin 20.9% 22.2% 18.9% • Higher 3rd party Marketing spends (MDF) • EBIT margin on expected level • Currency adjusted EBIT at 25.4% - effect is coming from revaluation from usd/eur exchange rate • General & administrative expenses under control • Changes in distribution contracts & accounting reduce revenue & gross margin (-1.6 M revenue effect, LFL growth rate 33.1%)
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Revenue Focus on Premium App with significant uptake 2024 H1 2025 H1 2025e 2026e 0,20 0,36 1,00 2,50 +79,0% 2024 H1 2025 H1 2025e 2026e 13,0 31,9 45,0 80,0 +145,4% No. of Users • Increase of Premium App users above expectations • Revenue effect because deferred accounting in 2025 • Positive development leaves room for 2026 and beyond • Initiatives planned to support ongoing improvement (in K) (in million EUR) New accounting for recuring revenues from SaaS
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⚫ Shelly Cameras ⚫ Shelly Pro Gen4 ⚫ Weather Station ⚫ Shelly Bulbs ⚫ Plug PM Products Countries Product pipeline will drive revenue growth in H2 Q1/2025 ⚫ Shelly Display 2x ⚫ Shelly Outdoor Plug ⚫ Shelly DALI controller ⚫ Shelly Dimmer G3 Q2/2025 ⚫ LOQED 1 ⚫ Shelly 1 Gen4 ⚫ Shelly 1PM Gen4 ⚫ Shelly 2PM Gen4 ⚫ Shelly Flood Gen4 Q3/2025 ⚫ Shelly Power Strip ⚫ Shelly Presence Sensor ⚫ XL Display ⚫ Ultrasonic Sensor ⚫ Others Q4/2025 Growth +29 % +40 % +50 %+29 % Opening of UK and BeNeLux offices Opening of IBERIA officePolish office opened
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Challenges and Opportunities • Improved sourcing will increase gross margin • FX rates will turn into lower COGS in H2 • New, not yet disclosed product categories on the horizon • Improved channel management and wider range of distribution will reduce cluster risk • Experience shows – local sales teams drive country performance • Shortage on some key components leading to product delays • Negative FX rates effects due to revaluation of pre-payments • Complicated certifications with growing distribution areas • Challenge with one key customer • Regional expansion depending on key personal Short-term Challenges Mid-term Opportunities Some short-term challenges – lots of mid-term opportunities
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• H1/25 revenue above target (54.0M vs 52.8M) • All regions are growing above market averages • H1/25 EBIT as planned • Significant FCF improvement • 2025 and 2026 Guidance confirmed • Measures to optimize working capital continue • New product categories in the pipeline will support 2025 and 2026 growth initiatives • Additional product categories will support the Pro business • Regional expansion continues • Strong progress in moving from the DIY to the professional market • Delay in product roadmap • Higher daily cloud inclusions • No. of Premium App subscribers above target Summary
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Q & A Scantosubscribetothe newsletter Scan to download presentation
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Appendix
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Brand: Leading brand in the software-powered home automation market, ready for full globalization Scale: Extensive global presence and relationships with premium smart home providers Financials: High growth, high margin profile with asset-light business model Market: Harnessing all growth angles in smart home and beyond Management: Strategic vision led by Shelly’s founders who achieved tremendous growth since inception via transformation into an IoT platform Driving revenue growth and expanding our device base to lead in smart energy management and data innovation Upside: Multiple avenues for transformation and growth: geographical and horizontal expansion, operational, commercial excellence and M&A ESG: Enabling an Eco-Friendly, Connected World - One Device at a Time Tech: Innovative software-powered home ecosystem provider, with rigorous focus on R&D, addressing key consumer trends SHELL Y –Key investment highlights
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Investor relations 1st HY events Apr 23 & 24 May 15 2024 Trading Update Guidance 2025 Planet Microcap Conference in Las Vegas Q1 Trading Update Feb 25 Montega HIT Hamburg Feb 5 & 6 Jan 17 Roadshow in Munich May 29-30 Berenberg Discovery Conference Roadshow in London Feb 27 May 29 Die Erste – Investment Conference in Warsaw June 5 General Meeting of the Shareholders Update on Strategy
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Investor relations 2nd HY events Oct tbd Baader Investment Conference Munich Roadshow Sep 22 US Roadshow Sep 09-10-11 Aug 15 H1 Trading Update Nov 25-27 Eigenkapital Forum Frankfurt Berenberg Conference Sep 23 Nov 12 9M Trading Update
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Definitions Definition DefinitionTerm Term EBIT Inorganic Growth EBITDA CAGR FCF Quarterly IoT Opex YOY Capex PY ROCE Organic Growth EBITDA Margin Earningsbeforeinterestand taxes(EBIT)is an indicatorof a company’sprofitability. EBITcan be calculatedas revenueminusexpenses excludingtax and interest. Inorganicgrowtharisesfrommergersor takeoversratherthan an increasein the company’sownbusinessactivity. EBITDA, or earnings before interest, taxes, depreciation,and amortization, is a measureof a company’soverallfinancialperformance and is used as an alternative to netincomein somecircumstances. The compoundannualgrowthrate(CAGR)is the rateof return(RoR) thatwould be requiredfor an investmentto grow from its beginning balanceto its ending balance,assumingthe profitswere reinvestedat the end of each period of the investment’slifespan. Free Cash Flow (FCF) representsthe cash a companygeneratesafter accountingfor cash outflows to support operationsand maintainits capitalassets. A fiscalquarter is a three-monthperiodin whicha companyreports its financial results. Objectswith computingdevicesin them that are able to connectto eachotherand exchangedatausingthe Internet. An operating expense is an expense a business incurs through its normal businessoperations. Yearover Year (YOY)sometimesreferredto as Year on Year. It is a frequentlyused financial comparison for looking at two or more measurable events on an annualizedbasis. Capitalexpenditures(CapEx) are funds used by a companyto acquire, upgrade, and maintainphysicalassets such as property, plants,buildings,technology,or equipment. The previousFinancialYear Return on capital employed (ROCE) is a long-term profitability ratio that measureshow effectivelya companyusesits capital. Organicgrowthis the growtha company achievesby increasing outputand enhancingsalesinternally. The EBITDAmarginis a measureof a company'soperatingprofitas a percentage of its revenue.
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Appendix – Notice to reporting The presentation includes statistics, data and other information relating to markets, market sizes, market shares, market positions and other industry data pertaining to the Company's business and markets. Unless otherwise indicated, such information is based on analysis by the Company of multiple sources, including certain studies commissioned from third parties (the “Market Repots”). The Market Repots may include and be based on, amongst other things, information obtained from primary interviews and field visits conducted by third parties with industry experts and participants, third parties’ secondary market research and intern al financial and operational information supplied by, or on behalf of, the Company, as well as information obtained from (i) data providers; (ii) industry association s and country organizations; and (iii) publicly available information from other sources, such as information publicly released by the Company’s competitors. To the extent available, the industry, market and competitive position data contained in the Presentation has come from official or third-party sources. Third party industry publications, studies and surveys generally state that the data contained in them have been obtained from sources believed to be reliable, but that there is no guarantee of the accuracy or completeness of such data. While the Company believes that each of these publications, studies and surveys has been prepared by a reputable source , the Company has not independently verified the data contained therein. In addition, certain of the industry, market and competitive position data contained in the Presentation come from the Company’s own internal research and estimates based on the knowledge and experience of the Company’s management in the markets in which the Company operates. While the Company believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness and are subject to change without notice. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in the Presentation. All projections, valuations and statistical analyses are provided to assist the recipient in the evaluation of the matters described in the Presentation. They may be based on subjective assessments and assumptions and may use one among alternative methodologies that produce different results and, to the extent that they are based on historical information, they should no t b e relied upon as an accurate prediction of future performance. The distribution of this Presentation in certain jurisdictions is restricted by law. Therefore, it must not be distributed, published or reproduced (in whole or in pat) or disclosed by its recipients to any other person for any purpose, other than with the consent of the Company. All trademarks remain the property of their respective owners. By accepting receipt of, a ending any delivery of, or electronically accessing, the Presentation, you agree to be bound by the above limitations and conditions and, in particular, you represent, warrant and undertake to the Company that: (i) you will not forward the Presentation to an y other person or reproduce or publish this document, in whole or in part, for any purpose; and (ii) you have read and agree to comply with the contents of this notice. The following presentation,including any printed or electroniccopy of these slides, the talks given by the presenters, the informationcommunicatedduring any delivery of the presentationand any question and answer session and any document or material distributed at or in connection with the presentation(together, the “Presentation”),has been prepared by Shelly Group AD (the “Company”), is not an offer to sell any securities or an invitation to purchase securitiesor the solicitationof an offer to buy securities. This Presentationis not an advertisementand not a prospectus for the purposes of Regulation (EU ) 2017/1129 of the European Parliament and of the Council of June 14, 2017, as amended. The Presentationis providedfor generalinformationonly and does not purportto containall the informationthat may be requiredto evaluatethe Company. The informationin the Presentationis subject to updating,completion,revision and verification. No reliancemay be placedfor any purposewhatsoeveron the informationor opinionscontainedor expressed in the Presentationor on the accuracy, completenessor fairness of such informationand opinions. To the extent permit ed by law and regulation, no undertaking,representationor warranty or other assurance, express or implied, is made or given by or on behalf of the Company, or any of its parent or subsidiary undertakings or the subsidiaryundertakingsof any such parent undertakingsor any of its respectivedirectors,officers,partners,employees,agents,affiliates, representativesor advisers, or any other person, as to the accuracy, completenessor fairness of the informationor opinionscontainedin the Presentation. None of the Company, its affiliates and advisers, agents and/or any other party undertakes or is under any duty to update the Presentation or to correct any inaccuracies in any such information which may become apparent or to provide you with any additionalinformation. Save in the ca se of fraud, no responsibilityor liabilityis accepted by any such person for any errors, omissionsor inaccuraciesin such informationor opinions or for any loss, cost or damage sufferedor incurred, however,arising,directlyor indirectly,from any use of, becauseof the relianceon, or otherwisein connectionwith, the Presentation. In addition,no duty of care or otherwiseis owed by any such personto recipientsof the Presentationor any otherpersonin relationto the Presentation. The Presentationincludesstatementsthat are, or may be deemedto be, forwardlookingstatements. These statements are based on the currentviews, expectationsand assumptionsof the managementof the Companyand involveknown and unknown risks and uncertaintiesthat could cause actual results, performanceor events to differ materially from those expressedor implied in such statements. Actual results,performanceor events may differ materiallyfrom those described in such statements due to, among other things, changes in the general economic and competitive environment,risks associated with capital markets, currency exchange rate fluctuationsand competition from other companies, changes in international and national laws and regulations, in particular with respect to tax laws and regulations,affecting the Company and other factors. The Company does not assume any obligations to update any forward-lookingstatements.
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Investor relations Denitsa Georgieva InvestorRelations Officer investors@shelly.com