Slide 1: NFON Earnings Call
NFON Earnings Call Full Year Results 2022 – 27 April 2023
Slide 2: NFON aims to be the leading provider of integrated business communications in Europe
NFON aims to be the leading provider of integrated business communications in Europe. Full Year Results 2022 | 27 April 2023 2
Slide 3: NFON 2023 strategy for profitable and sustainable growth
NFON 2023 strategy for profitable and sustainable growth NFON Group Targets • Components of growth: Products, Channel, Partnerships • Components of profitability: Operational Excellence • Sustainability as part of our strategy Accelerate Growth with Product Growth Create Best-in-Class Channel Strate
Slide 4: Full Year Results 2022
Full Year Results 2022 Full Year Results 2022 | 27 April 2023 4
Slide 5: Financial Results 2022 at a Glance
Financial Results 2022 at a Glance 2020 2021 2022 Number of With 8.0% growth yoy the target was reached at the upper end of the seats guidance Recurring revenues With 8.3% the target was reached on guidance growth Recurring revenue With 91.1% the target was clearly achieved share Full Year Results 2
Slide 6: Recurring revenues strong base for profitable growth
Recurring revenues strong base for profitable growth Development total recurring vs. non-recurring revenues in € million COMMENTS 80.0 210.0 7.2 Recurring revenues grew by 8.3% 7.9 70.0 73.6 190.0 compared to 2021 8.2 68.0 Decrease of non-recurring by 9.0% 60.0 170.0 59.4 compared to previous ye
Slide 7: Seat growth mirrors development in UC market
Seat growth mirrors development in UC market Development number of seats (‘000) COMMENTS 634 Increase of total number of seats by 8.0% 587 Globally lengthened sales cycles 525 Increasing market maturity affecting UCaaS growth rates 450 Continuously low gross churn rate of ~0.5% per month und
Slide 8: ARPU development on pre-pandemic level
ARPU development on pre-pandemic level Development ARPU in Euro COMMENTS 9.77 9.84 2021 positively effected by switch to 9.64 9.72 remote working Factors influencing ARPU: − Business with wholesale partners − Voice minutes usage Premium solutions Price adjustments 2019 2020 2021 2022 Full Ye
Slide 9: High gross margin continues to show a constantly positive development
High gross margin continues to show a constantly positive development Cost of materials (adj.)1 and gross margin2 development in € million COMMENTS Cost of materials on previous year’s level Further low material cost ratio of 17.8% compared to the same period of the 14.5 previous year (2021: 19.
Slide 10: Scaling effects will become evident in 2023
Scaling effects will become evident in 2023 Adj. personnel expenses1 in € million COMMENTS 36.4 Average number of employees rose from 466 to 526 (plus 12.9%) 31.2 Especially in the sales and technical areas 27.3 Personnel expenses as reported amount to 23.1 €37.4m (2021: €31.7m), plus 18.1%
Slide 11: Pace of marketing expenses adapted
Pace of marketing expenses adapted Marketing expenses in € million COMMENTS Marketing expenses reduced by 13.6% yoy Investments in roll-out of new partner program & platform and repositioning of NFON brand finalized in first half 2022 Significant improvement of marketing expense ratio of 10.5%
Slide 12: 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 11.1 Increase of sales commissi
Slide 13: EBITDA
EBITDA Reconciliation from EBITDA High expenditures in headcounts and 2022 2021 to adjusted EBITDA marketing leveled out in the second half of 2022 € million EBITDA -5.3 -2.0 Stock options 0.5 0.5 Retention bonus (2021) Focusing on core markets 0.5 n/a M&A activities 1.4 0.3 License payments for p
Slide 14: Outlook 2023
Outlook 2023 Full Year Results 2022 | 27 April 2023 14
Slide 15: Guidance for profitable and sustainable growth 2023
Guidance for profitable and sustainable growth 2023 2021 2020 2023 2022 Recurring revenues We expect recurring revenue growth in the mid to upper single-digit percentage range growth Recurring revenues We expect the resulting recurring revenue ratio >88% share adjusted We expect adjusted EBITDA to b
Slide 16: Key Investment Highlights
Key Investment Highlights Leading player in the large and fast-growing European Integrated Business Communications market for SME and mid-tier enterprise customers, 1 #1 player in the DACH region and geared to benefit from large untapped market potential Made in Europe: State-of-the-art differentiat
Slide 17: Questions & Answers
Questions & Answers NFON AG
Slide 18: Appendix
Appendix Full Year Results 2022 | 27 April 2023 18
Slide 19: Share at a glance
Share at a glance Shareholder structure (11 April 2023) Others ISIN DE000A0N4N52 Segment Prime Standard/ 7.9% Telecommunication 2.0 2.5 Shares 16.6 million 2.8 (29 March 2021) 3.1 32.1% Designated Baader Bank sponsor ODDO Seydler 3.4% First day of trading 11 May 2018 Coverage Berenberg Bank, 5.8% Ba
Slide 20: 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 21: Financial Calendar
Financial Calendar 27.04. • Group Financial Results 2022 • Web Conference 20 18.05. • Financial Results Q1 2023 • Web Conference 23 30.06. • Annual General Meeting 2023 Munich 24.08. • Financial Results Half-Year 2023 Web Conference Full Year Results 2022 | 27 April 2023 21
Slide 22: Contact
Investor Relations Contact Claudius Krause cometis AG BLOG https://www.nfon.com/blog/de/ krause@cometis.de Fon +49 611 20 58 55 - 28 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/N
Slide 23: 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 24: NFON AG
NFON AG