Slide 1: Financial Results Q1 2021
Munich | 20 May 2020 Financial Results Q1 2021
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: Our Mission
NFON Growth Strategy 2024 Our Mission NFON aims to be the leading provider of voice-centric business communications in Europe Financial Results Q1 2021 3
Slide 4: Our Differentiators
NFON Growth Strategy 2024 Our Differentiators Focus on key differentiators to stand out against competition in the market Integrated Business Leading Channel Communications Outstanding UX and UI Provider (UCaaS and beyond) NFON will offer a full UCaaS suite (PBX, video, NFON will differentiate throu
Slide 5: Our Path to Growth 2024
NFON Growth Strategy 2024 Our Path to Growth 2024 NFON will enhance its portfolio to serve customers’ business communications demands even better and will further grow its partner network in Europe Target Enhance Scale Targeting clear differentiators Continue to enhance the Building on more than 2,7
Slide 6: Key Measures
Target. Enhance. Scale. Key Measures To implement the NFON growth strategy, dedicated key measures will be implemented Significant ramp-up of technical Increased marketing invest Growing into Enterprise resources (FTE>50%yoy) until end of (>50%yoy, focus on channel) (250 – 5,000 extensions) 2021 Int
Slide 7: Financial Results First Quarter 2021
Financial Results First Quarter 2021
Slide 8: First quarter development in line with expectations
Key Figures First quarter development in line with expectations Recurring revenue growth of 19.6% yoy Customer- • me Share of recurring revenue 89.1% base Increase of seats by 16.0% yoy Financial Results Q1 2021 8
Slide 9: Strong business model resulting in unique combination of massive growth and sustainable recurring revenue
Business model Strong business model resulting in unique combination of massive growth and sustainable recurring revenue Recurring revenues 89% Non-recurring revenues 11% One-off Seats ARPU €18.9m Q1 2021 revenues Licence fee Airtime Premium Activation fee Hardware Professional per extension solutio
Slide 10: Continuing growth of seat base
Seat base Continuing growth of seat base Development number of seats (‘000) Comments and ARPU Increase of total number of seats by 16% Various influencing factors for ARPU development 542 525 Still high usage of air time 467 Positive development of DTS 450 At the same time increasing development of
Slide 11: Sustained growth in recurring revenues
Revenue development Sustained growth in recurring revenues Development total recurring vs. non-recurring revenues Comments € million Total revenue growth of 15.2% in comparison to Q1 2020 80 100 Recurring revenue grows by 19.6% compared to first quarter 2020 due to high usage of airtime and 70 95 po
Slide 12: Consistently high and increasing gross margin
Gross Margin Consistently high and increasing gross margin Cost of materials (adj.)1 and gross margin development Comments € million High gross margin (adj.) continues to show a constantly positive development 13.7 14.0 Cost of materials on previous year’s level. This results in a lower cost of mate
Slide 13: NFON further invest in staff
Personnel expenses NFON further invest in staff Development of adj. personnel expense1 Comments 27.3 € million Personnel expenses as reported amount to €8.0m 23.1 (Q1 2020: €7.2m) Adjustments of €0.2m for retention bonus and stock options 17.1 Adj. personnel expenses amount to €7.8m (Q1 2020: €6.8m)
Slide 14: Marketing expenses will rise again in 2021
Marketing expenses Marketing expenses will rise again in 2021 Development marketing expense Comments € million Marketing expenses of €1.1m were still below prior- year costs (-32.1%) With a focus on channel marketing NFON intends to increase marketing invests by more than >50%yoy 9.0 Focus on partne
Slide 15: Development of sales commission
Selling expenses Development of sales commission Selling expenses development Comments €m, % of revenue NFON has a partner network of more than 2,700 partners including wholesale partners Selling expenses mainly include sales commissions to dealers and distributors (excl. wholesale partners) 8.0 Dea
Slide 16: Strong improvement in EBITDA demonstrates that NFON can be profitable in the short term
Development of earnings Strong improvement in EBITDA demonstrates that NFON can be profitable in the short term Detailed reconciliation of one-off items Comments Reconciliation from EBITDA EBITDA of €1.6m reflects still lower investments Q1 2021 Q1 2020 to adjusted EBITDA Adjustments leads to furthe
Slide 17: NFON guidance takes Corona effects into account
Outlook 2021 NFON guidance takes Corona effects into account 2019 2020 2021 Number We expect a growth rate of our customer base between 40%* 17% of seats 15% and 17% Recurring 24%* We expect the recurring revenue growth between revenues 39%* 14% and 16% not taking into account any further acquisitio
Slide 18: Key investment highlights
Key investment highlights Huge addressable market being disrupted by structural shift to 1 cloud integrated business communications Strong business model resulting in attractive combination of massive growth, low 2 churn rate and sustainable recurring revenue State-of-the-art “German Engineering“ bu
Slide 19: Thanks
Thanks @NFONcom #cloud #telephony #allip
Slide 20: Appendix
Appendix Further information about NFON
Slide 21: Management Board
NFON AG Management Board Klaus von Rottkay Jan-Peter Koopmann CEO CTO >10 years of C-Level >10 years of C-Level experience in the IT industry experience in the IT/Telco industry Previous experience includes Previous experience − McKinsey & Company includes − Microsoft − Founder Seceidos − Planet Hom
Slide 22: Financial calendar 2021
Financial calendar 2021 Date Event 24 June Annual Shareholder Meeting Virtual Meeting 19 Aug Half-year Financial Results 2021 Web- and Telephone Conference 18 Nov Financial Results Nine Months 2021 Web- and Telephone Conference Financial Results Q1 2021 22
Slide 23: Share at a glance
NFON AG Share at a glance Facts Shareholder structure ISIN DE000A0N4N52 DE000A2TSA41 Segment Prime Standard/ Telecommunication Others 28.9% Shares 16.6 million (29 March 2021) Designated Baader Bank 32.1% sponsor ODDO Seydler First day of trading 11 May 2018 3.2%2 Coverage Berenberg Bank, Baader Ban
Slide 24: 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