Slide 1: Earnings Call
Earnings Call Full Year Results 2023 – 25 April 2024
Slide 2: Who you have on the call today
Who you have on the call today Patrik Heider CEO / CFO Earnings Call FY 2023 - 25 April 2024 2
Slide 3: Agenda for today
Agenda for 01 Business update FY 2023 today 02 Financial figures FY 2023 03 Outlook 2024 04 Q&A session Earnings Call FY 2023 - 25 April 2024 3
Slide 4: Business update FY 2023
Business update FY 2023
Slide 5: NFON 2025 + Strategy for continuous and sustainably profitable growth
NFON 2025 + Strategy for continous and OUR OBJECTIVE: sustainably Sustainably profitable corporate development profitable growth Innovative product Best-in-class Strategic partnerships development channel and alliances T H E F O U N D AT I O N : Operational excellence Earnings Call FY 2023 - 25 Apri
Slide 6: Operational excellence
Operational excellence 1 Organisation and § Andreas Wesselmann joined NFON as CTO with effect from 1 January 2024. employees: 2 Business § § Merging DTS with NFON AG to be able to fully exploit synergies. Modernising the technological basis of our products, defining and establishing transparent proc
Slide 7: Financial figures FY 2023
Financial figures FY 2023
Slide 8: FY 2023 results at a glance
FY 2023 results at a glance Recurring revenue Recurring revenue growth of 4.8% compared to FY 2022 growth Recurring revenue Increased high share of recurring revenue of 93.7% share Adjusted Significantly improved adjusted EBITDA of EUR 8.4 million EBITDA Earnings Call FY 2023 - 25 April 2024 8
Slide 9: Continuously growing share of recurring revenue
Continuously growing share of recurring revenue Development of total recurring vs. non-recurring revenue in EUR million 80.8 +1.9% 82.3 75.9 5.2 COMMENTS 7.2 +4.8% 7.9 77.1 § Recurring revenue grew moderately by 73.6 4.8% compared to 2022 68.0 - acquisition of new customers - increase in installed e
Slide 10: Reliably high gross margin again with increasingly positive development
Reliably high gross margin again with increasingly positive development Development of COGS (adj.)1 in EUR million and gross margin2 COMMENTS § Improved gross margin compared to the same period last year due to successfully growing share of high-margin sales § Cost of materials is largely variable i
Slide 11: Reduced personnel expenses in line with strategic focus
Reduced personnel expenses in line with strategic focus Adjusted1 personnel expenses in EUR million COMMENTS 37.4 § Average number of employees decreased 34.9 –6.7% from 526 to 453 (–13.9%) 31.2 § Personnel expenses as reported amount to EUR 34.9 million (FY 2022: EUR 37.4 million) § Adjustments: -
Slide 12: EBITDA: Detailed reconciliation of one-off items
EBITDA Detailed reconciliation of one-off items Reconciliation from EBITDA FY 2023 FY 2022 to adjusted EBITDA1 § Measures to increase profitability EUR million taking effect EBITDA 6.8 –5.3 § Increase in revenues Reorganisation of top management 1.3 0.0 § Higher gross profit Stock options / ESOPS 0.
Slide 13: Free Cash Flow positive for the first time since listing
After significant improvment in 2023, we are Free Cash Flow positive for the first time since listing Free Cash Flow1 in EUR million COMMENTS 4.0 § FCF substantially improved from EUR –12.3 million in 2022 to 2.0 1.0 EUR 1.0 million in 2023 0.0 § Improvement mainly due to significant 2018 2019 2020
Slide 14: Outlook 2024
Outlook 2024
Slide 15: Strategic areas of NFON 2024
Strategic areas of NFON 2024 In 2024, we are focussing on being an "integrated voice-centric" business communications provider that is simple, open and future-proof for its customers and leverages AI capabilities to drive Why innovation. We return to our roots and are strengthening the Cloud PBX are
Slide 16: 2024: a year of transformation and further sustainable profitable growth
2024: a year of transformation and further sustainable profitable growth 40212023 2020 Results 2022 Guidance 2024 Recurring revenue EUR 77.1 million We expect recurring revenue growth in the mid to upper single-digit percentage range growth Recurring revenue 93.7% We expect a resulting recurring rev
Slide 17: Road to 2025 + Together sustainably profitable
Road to 2025 + H1 2024 Operational excellence IT target image Establish optimised Establishing a state-of-the-art operating model environment for data-driven decision-making and first-class, reliable customer service Business case Reduction of technological debt and utilisation of H2 2024 technologi
Slide 18: Q&A session
Q&A session
Slide 19: Appendix FY 2023
Appendix FY 2023
Slide 20: Seat growth in line with strategic focus
Seat growth in line with strategic focus Development of number of seats (‘000) and ARPU COMMENTS § Increase in total number of seats by 3.4% § ARPU development: FY 2023 stable at 656 year-end level. Very slight decline versus FY 2022 +3.4% 634 § Continued low gross churn rate 2023 of ~0.5% per month
Slide 21: Decrease in marketing expenses as planned
Decrease in marketing expenses as planned Marketing expenses in EUR million COMMENTS § Marketing expenses decreased by 48% yoy § Focused and efficient marketing where we see market potential. Channel marketing moves to the fore. 9.8 8.5 –48% 4.4 12.9 10.5 5.3 2021 2022 2023 % of revenue Earnings Cal
Slide 22: Selling costs slightly higher compared to FY 2022
Selling costs slightly higher compared to FY 2022 Selling expenses in EUR million COMMENTS § Selling expenses mainly include sales commissions to dealers and distributors (excluding wholesale partners) 11.7 - Dealers and distributors only receive a 11.1 percentage share of revenue per seat 9.9 § Inc
Slide 23: Share at a glance
Share at a Shareholder structure* in %, as of 17 April 2024 glance Others ISIN DE000A0N4N52 Segment Prime Standard/ 15.2 Telecommunication Shares 16.6 million (29 March 2021) 31.9 4.0 Designated Baader Bank sponsors ODDO Seydler First day of trading 11 May 2018 6.0 Coverage Berenberg Bank, Baader Ba
Slide 24: C-level team
C-level team Patrik Heider Andreas Wesselmann CEO / CFO CTO § At NFON since 2023 § At NFON since 2024 § ~20 years of C-level § > 20 years’ experience in experience and in the IT an international working industry environment as well as in senior executive positions § Previous experience within the so
Slide 25: Financial calendar
Financial calendar 07/03 • Preliminary group financial results FY 2023 25/04 • Group annual report FY 2023 23/05 20 • Financial results 3M/Q1 2024 28/06 • Annual General Meeting 2024 24 22/08 • Group half-year report 2024 21/11 • Financial results 9M/Q3 2024 Earnings Call FY 2023 - 25 April 2024 25
Slide 26: Contact
Contact BLOG https://www.nfon.com/blog/de/ FRIEDERIKE THYSSEN VP Investor Relations & Sustainability https://facebook.com/NFONcom NFON AG TELEPHONE NFON AG Machtlfinger Straße 7 Zielstattstrasse 36 Phone: +49 89 453 00-449 81379 Munich, Germany ir-info@nfon.com 81379 Munich, Germany https://twitter.
Slide 27: Disclaimer
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 NFON and
Slide 28: Thank you
Thank you 28