Shelly Group (SLYG) investor relations material

Market positioning and product overview

• Focus on smart home and building automation, with strong emphasis on energy management solutions, especially relevant in Europe due to high energy prices.

• Offers plug-and-play and wired devices, including smart plugs, wall switches, and professional solutions for both renovations and new builds.

• Devices connect directly to Wi-Fi, are remotely controllable, and support integration with various sensors and wall displays.

• 90% of revenue is generated in Europe, with growing presence in the U.S. and China; expanding U.S. visibility through Amazon and a major DIY chain.

• Over 6 million households use the devices, with more than 35 million units sold since 2018; half of users utilize the proprietary cloud, which supports multi-cloud and offline operation.

Business model and financial performance

• Devices are affordable, require no hub or monthly payments, and can be used standalone or expanded incrementally.

• Introduced a premium app version targeting EUR 2 million revenue in 2024, offering advanced features for heavy users; nearly 100% profit margin expected.

• DIY installation remains popular, but a growing installer network (8,500 certified electricians) supports mass market adoption.

• Achieved EUR 150 million revenue in 2023 with 40% growth and a 25% EBIT margin; net debt-free with a 90% equity ratio.

• Improved cash collection and payment discipline, with 26% Q1 growth and a planned annual growth rate above 30%, expecting main growth in H2 due to product launches and expansion.

Product development and innovation

• Premium app revenue reached EUR 300,000 in Q1 2024, with 44% YoY subscriber growth; camera integration expected to drive further growth.

• Strong network effect: users typically add 2.5 devices per year, leading to predictable device sales among cloud users.

• Product roadmap includes new categories such as cameras, power strips (including data center versions), OEM plugs for appliance manufacturers, and smart locks.

• Community-driven product development, leveraging user feedback for new offerings.

• Transitioning from hardware to software platforms, with the Fleet Manager enabling multi-room and hospitality management.