Shelly Group acquires LOQED assets and expands into growth segment smart
locks

EQS-News: Shelly Group AD / Key word(s): Takeover
Shelly Group acquires LOQED assets and expands into growth segment smart
locks

11.07.2024 / 08:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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Shelly Group acquires LOQED assets and expands into growth segment smart
locks

Sofia / Munich, 11 July 2024 - Shelly Group AD ( Ticker SLYG / ISIN:
BG1100003166) ("Shelly Group"), a provider of IoT and smart building
solutions based in Sofia, Bulgaria, is strategically broadening its product
categories and expanding into the growth segment of intelligent door locks
(smart locks). To this end, the Company has acquired the material assets,
including the technology (intellectual property, IP) and the inventory, of
the Dutch company LOQED B.V., which is currently undergoing insolvency
proceedings. The deal also includes direct access to the contract
manufacturer's plant in the People's Republic of China and to the suppliers
of the primary products, so that both the immediate takeover of production
and its future optimization can take place seamlessly. The purchase price
payment is in the region of EUR 0.15 million and will be made in cash.
Shelly expects significant revenue and earnings contributions from the sale
of smart locks from 2025.

Shelly will integrate LOQED into the Shelly product portfolio and Shelly
Cloud solutions as quickly as possible in order to provide the Shelly user
experience that customers cherish. For customers to continue using their
existing LOQED locks without restriction, Shelly will initially continue to
operate the LOQED platform and subsequently embed it into Shelly Cloud
solutions as part of the upcoming integration.

With its expansion into the smart locks product category, Shelly is tapping
into a globally growing segment which, according to market studies, is set
to grow by an average of 15.4% annually to up to USD 5.8 billion by 2029.
Growth drivers besides the use in private households are in particular
applications for companies and public institutions for the secure and simple
management of various physical entrances via remote access as well as the
ability to monitor the security of premises. For example, various hotels are
planning to introduce Bluetooth or WiFi-enabled locks instead of RFID locks
accessible via smart cards in order to improve security, customer service,
and the quality of stay in their premises. In addition, smart locks offer
high growth potential for use in companies and organizations, as many people
need access to the same facility.

Wolfgang Kirsch, Co-CEO of the Shelly Group, explained: "By acquiring
LOQED's technology and inventory, we are intelligently tapping into a
sustainable growth market. The double-digit growth rates in this market
segment are an excellent fit for Shelly. In addition, we will be able to
generate revenue from the sale of existing products from day one while we
continue to develop the technology and realize efficiency potential. We are
confident that with LOQED as part of Shelly, we will be able to generate
significant revenue and earnings contributions as soon as 2025. True to our
'value for money' approach, the cost benefits will of course also be
reflected in the prices for our customers."

LOQED smart locks are characterized by high-quality and robust
stainless-steel hardware and are compatible with a variety of home
automation systems. The door is opened via a smartphone using Bluetooth or
alternatively by entering a code manually. The locks have numerous
intelligent functions such as time-controlled opening and closing or access
notifications. Guest links can be sent to friends and guests to open and
close the door via their browser. LOQED locks are certified in accordance
with EN 1303, EN 15684, and SKG-IKOB-Opleidingen, the leading test institute
for the construction sector in the Netherlands and Belgium, as particularly
robust and burglar-resistant (3 stars).

Dimitar Dimitrov, Co-CEO of Shelly Group, added: "LOQED's smart locks fit
perfectly with our approach of seamless integration and interoperability of
hardware and software. We intend to add further APIs to the locks for a wide
range of providers and use cases, offering even more added value in smart
building solutions. We will also take cost and energy efficiency into
account and make smart locks accessible to an even wider range of users.
Based on our experience with the existing product categories, we also want
to set new standards of excellence for end users and professional users in
this segment."

About Shelly Group

Shelly Group AD is a technology holding company that stands for innovation
through the development, manufacture, and distribution of high-quality IoT
products. End users and their needs are always at the heart of development.
Shelly Group was founded in Bulgaria and works with a team of young,
talented developers who are dedicated to producing competitive and
user-friendly products. The Group consists of 6 subsidiary companies and has
offices in Bulgaria, Germany, and Slovenia as well as in China and USA.
Shelly Group's products have already conquered over 100 markets. Shelly
Group AD has been listed on the Bulgarian Stock Exchange since December 2016
and on the Frankfurt Stock Exchange as of November 2021 where its shares are
traded under GSIN A2DGX9, ISIN BG1100003166, Ticker SLYG.

Contact Investor Relations

CROSS ALLIANCE communication GmbH
Sven Pauly
Phone: +49 89 125 09 0331
Mail: sp@crossalliance.de
www.crossalliance.de


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11.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
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The issuer is solely responsible for the content of this announcement.

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   Language:       English
   Company:        Shelly Group AD
                   103 Cherny Vrah Bldv
                   1407 Sofia
                   Bulgaria
   E-mail:         investors@shelly.com
   Internet:       www.corporate.shelly.com
   ISIN:           BG1100003166
   WKN:            A2DGX9
   Listed:         Regulated Market in Frankfurt (Prime Standard)
   EQS News ID:    1941527

End of News EQS News Service
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1941527 11.07.2024 CET/CEST