Nfon Ag · XETR:NFN
Nfon — Q1 2020 Earnings Presentation
23 slides from Nfon's earnings presentation, May 18, 2020
Slide 1: Financial Results Q1 2020
Berlin, Munich, Mainz | 18 May 2020 Financial Results Q1 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: Wind of change - Corona speeds up development
Wind of change Assessments confirmed - Corona speeds up development swisscom Deutsche Telekom Proliferation of SaaS Carriers are moving orange 2020 delivery models from ISDN to All BT 2025 IP Increasing multi channel and multi The way device communication we work keeps changing 24/7 ‘Full cloud mode
Slide 5: Very successful start in a challenging environment
Key Figures Very successful start in a challenging environment Recurring revenue growth of 35.6% yoy Recurring revenue growth excl. inorganic growth 22.3%1 yoy Total revenue growth of 35.5% yoy Total revenue growth excl. inorganic growth 22.9%1 yoy Customer- • me base Share of recurring re
Slide 6: Milestones Completed
Milestones Completed 467,253 449,711 Recurring Revenue 431,935 86% 408,393 390,826 Share 320,728 253,360 31/12/2017 31/12/2018 31/03/2019 30/06/2019 30/09/2019 31/12/2019 31/03/2020 NCTI Pro >40,000 CLOUDYA Takeover clients New core product DTS AG & Nvoice 14 countries New products 2,700 Italy Takeo
Slide 7: Financial Results First Quarter 2020
Financial Results First Quarter 2020
Slide 8: Strong business model resulting in massive growth and recurring revenue
Business model Strong business model resulting in unique combination of massive growth and sustainable recurring revenue Recurring revenues 86% Non-recurring revenues 14% One-off Seats ARPU €16.4m Q1 2020 revenues Licence fee Airtime Premium Activation fee Hardware Professional per extension solutio
Slide 9: 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 20% Influencing factors for ARPU development 467 467 450 Huge increase of air time volume in March 2020 391 due to lockdown and move to home offices Very successful deve
Slide 10: Significant increase of recurring revenues
Revenue development Significant increase of recurring revenues Development total recurring vs. non-recurring revenues Comments € million Recurring revenues grow by 35.6% compared to first quarter 2019 70 Recurring revenues excluding inorganic growth 60 (DTS)1 grow by 22.3% means €12.7m (Q1 2020) 105
Slide 11: Consistently high gross margin
Gross Margin Consistently high gross margin Cost of materials (adj.) and gross margin development Comments € million Cost of materials are largely variable in nature and mainly comprise of costs for hardware sold, costs 13.7 for airtime sold and data centre housing costs Cost of materials grow by 36
Slide 12: A strong employee base is the future of NFON
Personnel expenses A strong employee base is the future of NFON Adj. personnel expense development Comments 23.1 € million Personnel expenses as reported amount to €7.2m (Q1 2019: €5.6m) 17.1 Adjustments of €0.3m for retention bonus and stock options 13.4 Increase of adj. personnel expenses by 29.7%
Slide 13: A strong brand and a broad partner network is key for success
Marketing expenses A strong brand and a broad partner network is key for success Marketing expense development Comments € million Marketing expense (in €) on previous year’s level with clear improvement of ratio Clear separation of central marketing and local 9.0 market activities Focus on brand awa
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 expenses development without marketing expenses Comments and sales commissions In general, other expenses comprise of sales € million commissions, supporting cost, general 10.3 adm
Slide 15: Positive adj. EBITDA reflects strong Q1 2020 development
Development of earnings Positive adj. EBITDA reflects strong Q1 2020 development Detailed reconciliation of one-off items Comments Reconciliation from EBITDA Strong development of Q1 2020 leads to an positive Q1 2020 Q1 2019 development of EBITDA as reported of €-0.1m to adjusted EBITDA Smaller adju
Slide 16: NFON expressly confirms guidance
Outlook 2020 NFON expressly confirms 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 int
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 18 May 2020 Interim Report 1st Quarter 2020 Web- and Telephone Conference 19 May 2020 Berenberg Conference USA 2020 Tarrytown Virtual Meetings 28 May 2020 Annual General Meeting Online Meeting 10/16 June 2020 Roadshow Days with Baader/ Berenberg Virtual Meeting 18 June
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