Slide 1: Financial Results HY 2020
Berlin, Munich, Mainz | 20 August 2020 Financial Results HY 2020
Slide 2: Disclaimer
NFON AG Disclaimer This publication contains forward-looking statements regarding NFON AG ("NFON") or the NFON Group and its subsidiaries, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and future operations of N
Slide 3: We want to dominate the European Cloud telephony market
We want to dominate the European Cloud telephony market by delivering freedom of business communication. < Growth Excellence Leadership Award 2017 3
Slide 4: A market full of opportunities for NFON
Wind of change A market full of opportunities for NFON Proliferation of SaaS Carriers are moving delivery models from ISDN to All IP Increasing multi channel and multi The way device communication we work keeps changing 24/7 ‘Full cloud model’ Hybrid model Global legacy business communication market
Slide 5: Seizing opportunities for growth in a challenging environment
Key Figures Seizing opportunities for growth in a challenging environment Recurring revenue growth of 28.0% yoy Total revenue growth of 24.5% yoy Customer- • me base Share of recurring revenues in total revenue over 87.6% Increase of seats by 21.0% yoy Financial Results HY 2020 5
Slide 6: Milestones completed
Milestones completed 494,132 Recurring 467,253 Revenue 88% 449,711 408,393 Share 320,728 253,360 31/12/2017 31/12/2018 30/06/2019 31/12/2019 31/03/2020 30/06/2020 Takeover NCTI Pro >40,000 CLOUDYA DTS AG clients New core product & Nvoice Expanding R&D Capacity 14 countries New products Takeover 2,70
Slide 7: Financial Results
Financial Results Half-year 2020
Slide 8: Strong business model with massive growth and sustainable recurring revenue
Business model Strong business model resulting in unique combination of massive growth and sustainable recurring revenue Recurring revenues 88% Non-recurring revenues 12% One-off Seats ARPU €32.8m HY 2020 revenues Licence fee Airtime Premium Activation fee Hardware Professional per extension solutio
Slide 9: Seat growth in line with expectations
Seat base Seat growth in line expectations Development number of seats (‘000) Comments and ARPU Increase of total number of seats by 21% in comparison to HY 2019 Increase of total number of seats by 9.9% in 494 comparison to year-end 2019 450 Influencing factors for ARPU development 408 + Huge incre
Slide 10: Outstanding performance realising momentum in first half-year
Revenue development Outstanding performance realising momentum in first Half-year Development total recurring vs. non-recurring revenues Comments € million Recurring revenues Half-year 2020 grow by 28.0% compared to Half-year 2019 70 Non-recurring revenues grow by 4.3% compared to 60 previous year 1
Slide 11: Increasing gross margin proves potential for sustainable profitability
Gross Margin Increasing gross margin proves potential for sustainable profitability Cost of materials (adj.) and gross margin development Comments € million Cost of materials are largely variable in nature and 13.7 mainly comprise of costs for hardware sold, costs for airtime sold and data centre ho
Slide 12: Highly professional and committed employees are the basis for growth
Personnel expenses Highly professional and committed employees are the basis for further growth Adj. personnel expenses development Comments 23.1 € million Personnel expenses as reported amount to €14.3m (HY 2019: €12.0m) 17.1 Adjustments of €0.5m for retention bonus and stock options 13.4 13.8 Incr
Slide 13: Marketing activities will be increased to use opportunities
Marketing expenses Marketing activities will be increased to use opportunities Marketing expenses development Comments € million Marketing expenses of €3.2m significantly below prior- year costs (-19.0%) mainly due to COVID-19 lockdown effects. In general marketing activities are focused on 9.0 Chan
Slide 14: Development of adj. other operating expenses shows scalability
Adjusted other operating expenses Development of adj. other operating expenses shows scalibility of business Adj. other operating expenses development without marketing expenses Comments and sales commissions In general, other expenses comprise of sales € million commissions, supporting cost, genera
Slide 15: Strong improvement in adj. EBITDA
Development of earnings Strong improvement in adj. EBITDA reflects outstanding performance of recurring revenues Detailed reconciliation of one-off items Comments Reconciliation from EBITDA Described positive development: HY 2020 HY 2019 to adjusted EBITDA Seat growth and recurring revenues, e.g. ga
Slide 16: NFON confirms positive guidance - Outlook 2020
Outlook 2020 NFON confirms positive guidance - taking Corona effects into account 2018 2019 2020 Number We expect a significant growth of our customer base between 27% 40%* of seats 20% and 24% Recurring 39%* We expect the revenue growth rate for 2020 between revenues 25% 22% and 26% not taking into
Slide 17: Key investment highlights
Key investment highlights Huge addressable business communication market being disrupted by 1 structural shift to Cloud PBX solutions Only true Pan-European Cloud PBX company best positioned to become 2 the dominant European player Strong business model resulting in unique combination of massive gro
Slide 18: Thanks
Thanks @NFONcom #cloud #telephony #allip
Slide 19: Appendix
Appendix Further information about NFON
Slide 20: Management Board
NFON AG Management Board Hans Szymanski Jan-Peter Koopmann César Flores Rodríguez CEO/CFO CTO CSO >20 years of C-Level >20 years of experience in >10 years of C-Level experience the IT/Telco industry experience Previous experience Previous experience Previous experience includes includes includes −
Slide 21: Financial calendar
Financial calendar Date Event 20 Aug 2020 Presentation Half-year Financial Report 2020 Web- and Telephone Conference 9th German Corporate Conference 21 Sep 2020 Berenberg/Goldman sachs Virtual Meeting 22 Sep 2020 Baader Corporate Conference Munich Sep 2020 Roadshow USA Virtual Meetings Nov 2020 Pres
Slide 22: Share at a glance
NFON AG Share at a glance Facts Shareholder structure ISIN DE000A0N4N52 Segment Prime Standard/ Telecommunication Others Shares 15.1 million 21.35% (21 October 2019) 3.18%2 Designated Baader Bank sponsor ODDO Seydler 33.90% First day of trading 11 May 2018 Coverage Berenberg Bank, Baader Bank, 3.41%
Slide 23: Contact
Investor Relations Contact Sabina Prüser Head of Investor Relations Blog NFON AG https://www.nfon.com/blog/de/ Machtlfinger Straße 7 81379 Munich Facebook Germany https://facebook.com/NFONcom Telephone Twitter https://twitter.com/NFONcom Fon +49 (0) 89 453 00 134 Fax + 49 (0) 89 453 00 33 134 sabina