Nfon Ag · XETR:NFN
Nfon — H1 2022 Earnings Presentation
28 slides from Nfon's earnings presentation, Aug 18, 2022
Slide 1: NFON Earnings Call H1 Results 2022
NFON Earnings Call H1 Results 2022 – 18 August 2022
Slide 2: Agenda for today
Agenda for today 1. Market Considerations & Highlights H1 2022 2. Financial Figures H1 2022 3. Outlook and Key Investment Highlights 4. Appendix Earnings Call H1 2022 - 18 August 2022 2
Slide 3: Highlights H1 2022
Highlights H1 2022 Earnings Call H1 2022 - 18 August 2022 3
Slide 4: NFON aims to be the leading provider of integrated business communication in Europe
NFON aims to be the leading provider of integrated business communication in Europe. Earnings Call H1 2022 - 18 August 2022 4
Slide 5: On the way to reach our mission
On the way to reach our mission Threshold of Total number of seats on the balance sheet 600,000 seats exceeded 100% renewable energy used in our data centers 587,067 609,640 524,791 449,711 320,728 253,360 31/12/2017 31/12/2018 31/12/2019 31/12/2020 31/12/2021 30/06/2022 Partner/ >15,000 1,100 >40,0
Slide 6: Rethink Cloud-strategies: From Cloud PBX to integrated Business Communications
Rethink From Cloud PBX to integrated Cloud-strategies Business Communications Trend from individual cloud investments UCaaS CCaaS to enterprise-wide cloud strategies • More agility and greater innovation INTEGRATED power BUSINESS • Digitization of internal processes, e.g. COMMUNI- automation of work
Slide 7: General considerations on NFON's pace of development
General considerations on NFON‘s pace of development Progress in product roadmap & development according to Entering enterprise segment & NFON‘s mission and increasing partner and customer base General economic sentiment results in slower market growth Longer sales cycles Peak of planned investment
Slide 8: Product Development
Product Development › Completing ramp-up of technical resources › Roll-out of new products based on own R&D and clearly defined product roadmap Business Communication with Cloudya Integration Customer Contact Cloud PBX Enablement 2020 2022 Earnings Call H1 2022 - 18 August 2022 8
Slide 9: Partner Development
Partner Development › Roll-out new partner program to: Now nearly • Acquire new partners 3,500 • Strengthen relationship and develop partners existing partners to transform more of them into high revenue generating partners Countries with own NFON subsidiaries Additional NFON countries with partners
Slide 10: Customer Development
Customer Development Now nearly › Increase upselling and cross-selling efforts in existing customer base 55,000 customers › Grow customer base through › Strategy of focusing on Enterprise segment is starting to pay off. Enterprise: Sales cycle and roll out up to 3 years Nurture Earnings Call H1 2022
Slide 11: Financial Results H1 2022
Financial Results H1 2022 Earnings Call H1 2022 - 18 August 2022 11
Slide 12: Seat growth at guidance
Seat growth at guidance Development number of seats (‘000) and ARPU COMMENTS Increase of total number of seats by 9.4% 609 587 ARPU development: H1 2022 stable on 557 525 year’s end level. H1 2021 positively effected by switch to remote working 450 Continuously low gross churn rate of ~0.5% pe
Slide 13: Growing share of recurring revenues
Growing share of recurring revenues Development total recurring vs. non-recurring revenues in € million COMMENTS 80.0 210.0 Recurring revenues grew by 8.6% 70.0 7.9 190.0 compared to H1 2021 8.2 68.0 Positive one-off effect in voice 60.0 170.0 59.4 minutes in Q2 2021 9.1 Decrease of non-recurr
Slide 14: Further reliable increase of gross margin due to increased share of higher margin revenues
Further reliable increase of gross margin due to increased share of higher margin revenues Cost of materials (adj.)1 and gross margin2 development in € million COMMENTS Cost of materials are largely variable in nature and mainly comprise of costs for hardware sold, costs for airtime sold and data
Slide 15: Development of personnel expenses
Development of personnel expenses Adj. personnel expenses1 in € million COMMENTS 31.2 Personnel expenses as reported amount to €19.7m (H1 2021: €16.0m) 27.3 Adjustments of €0.6m for stock options and 23.1 re-focusing sales activities (H1 2021: €0.3m) 19.1 Adj. personnel expenses amount to 15.6
Slide 16: Increase of marketing expenses as planned
Increase of marketing expenses as planned Marketing expenses in € million COMMENTS Marketing expenses increased by 39.4% yoy Investment phase started Q3 2021 and will slow down in the second half of 2022 Investments in roll-out of new partner program & platform and repositioning of NFON brand
Slide 17: Selling Costs in line with FY 2021 ratio
Selling Costs in line with FY 2021 ratio Selling expenses in € million COMMENTS Selling expenses mainly include sales commissions to dealers and distributors (excl. wholesale partners) Dealers and distributors only receive a percentage share of revenues per seat Increase of sales commissions b
Slide 18: EBITDA
EBITDA Detailed reconciliation of one-off items High expenditures in headcounts and marketing will level out in the second half of the year Reconciliation from EBITDA H1 2022 H1 2021 to adjusted EBITDA Clear focus on profitability € million EBITDA -4.1 1.8 Stock options/Refocussing 0.6 0.3 M&A a
Slide 19: NFON Guidance 2022
NFON Guidance 2022 2021 2020 20222022 Number We expect to grow our customer base between 10% and 12% 12% of seats at the lower end Recurring 14% We expect to grow the recurring revenue between 10% and 12% revenues at the lower end growth Recurring revenues 90% We expect the resulting recurring reven
Slide 20: Key Investment Highlights
Key Investment Highlights Leading player in the large and fast-growing European Integrated Business 1 Communications market for SME and mid-tier enterprise customers, #1 player in the DACH region and geared to benefit from secular tailwinds Made in Europe: State-of-the-art differentiated “German Eng
Slide 21: Questions & Answers
Questions & Answers NFON AG
Slide 22: Appendix
Appendix Earnings Call H1 2022 - 18 August 2022 22
Slide 23: Share at a glance
Share at a glance Shareholder structure (31 March 2022) ISIN DE000A0N4N52 Others Segment Prime Standard/ Telecommunication 17.4% Shares 16.6 million (29 March 2021) Designated Baader Bank 32.1% sponsor ODDO Seydler 2.8% First day of trading 11 May 2018 4.4% Coverage Berenberg Bank, Baader Bank, Hauc
Slide 24: C-Level Team
C-Level Team MASTERTEXTFORMAT BEARBEITEN Dr. Klaus Von Rottkay Jan-Peter Koopmann Petra Boss Jan Forster CEO CTO CFO CMO With NFON since 2016 With NFON since 2014 >20 years of C-Level >20 years of C-Level experience in the IT industry experience in the IT/Telco >18 years of experience in
Slide 25: Financial Calendar
Financial Calendar 18.08 • Half-year Results 2022 • Web Conference 20 24.08. • Annual General Meeting • Web Conference 22 17.11. • Financial Results Q3 2022 Web Conference Sep • Investor‘s Conferences Berenberg Goldman Sachs & Baader Earnings Call H1 2022 - 18 August 2022 25
Slide 26: Contact
Investor Relations Contact BLOG https://www.nfon.com/blog/de/ SABINA PRÜSER Head of Corporate Communications & Sustainability https://facebook.com/NFONcom NFON AG TELEPHONE Machtlfinger Straße 7 Fon +49 (0) 89 453 00 134 81379 Munich, Germany Fax +49 (0) 89 453 00 33 134 https://twitter.com/NFONcom
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: NFON AG
NFON AG