Slide 1: First quarter results 2019
Munich | 21 May 2019 First quarter results 2019
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: Major strategic milestones already achieved
One year after IPO Major strategic milestones already achieved >30,000 > 300 Customers employees CLOUDYA >390,000 new core product seats 14 >2,000 Countries partners Takeover > 35,000 Deutsche Telefon Standard AG SIP-trunk channels 4
Slide 5: NFON AG starts on schedule in the financial year 2019
Key Figures NFON AG starts on schedule in the financial year 2019 Revenue growth of 21% Recurring revenue growth even higher 29% 86% recurring revenues are above guided range Customer- • me base Increase of seats by 45% Successful migration of DTS AG Start of sales activities in Italy
Slide 6: Proportion of recurring revenues well above guidance
Business model Proportion of recurring revenues well above guidance Recurring revenues 86% Non-recurring revenues 14% Seats ARPU One-off €12m Q1 2019 revenues Licence fee Airtime Premium Activation fee Hardware Professional per extension solutions services Results for the first quarter 2019 6
Slide 7: Significant increase of recurring revenues
Revenue development Significant increase of recurring revenues Development total recurring vs. non-recurring revenues Comments Revenue first time with Deutsche Telefon Standard AG (only March 2019) 50 88 Total revenues grow by 21% to €12.1m in 45 85.7 86 comparison to €10.0m in the first quarter 201
Slide 8: Very strong development of seat base
Strong growth of seat base Very strong development of seat base Development number of seats (‘000) Comments and ARPU Increase of total number of seats by 45% including seats of Deutsche Telefon Standard AG (>50,000) 391 Definition ARPU: Total recurring revenues minus revenues out of SIP-trunk-channe
Slide 9: Consistently increasing gross margin emphasizes scalability of the business model
Gross Margin Consistently increasing gross margin emphasizes scalability of the business model Cost of materials and gross margin development Comments €m, % of revenue Cost of materials are largely variable in nature and 11.1 mainly comprise of costs for hardware sold, costs for airtime sold and dat
Slide 10: Securing tomorrow's growth by investing in today's workforce
Personnel expenses Securing tomorrow‘s growth by investing in today‘s workforce Adj. personnel expense development Comments 17.11 €m, % of revenue Personnel expenses as reported amount to €5.5m (Q1 2018: €4.2m) 13,31 12.31 Adjustments of €0.3m for retention bonus and stock options (ESOP) Increase of
Slide 11: Gaining market shares through intensified marketing activities
Marketing expenses Gaining market shares through intensified marketing activities Marketing expense development Comments €m, % of revenue Marketing expense increases as planned building a strong brand that drives sales and partner growth Clear separation of Central Marketing and Local 5.5 Market Act
Slide 12: Increase of other operating expenses due to ongoing European expansion
Adjusted other operating expenses Increase of other operating expenses due to ongoing European expansion Other expenses development without marketing expenses Comments and sales commissions In general other expenses comprise of sales €m, % of revenue commissions, supporting cost, general 6.51 admini
Slide 13: Despite dynamic growth strategy adj. EBITDA near break even
Development of earnings Despite dynamic growth strategy adj. EBITDA near break even Detailed reconciliation of one-off items Comments Reconciliation from EBITDA EBITDA as reported amounts to approx. €-1.7m Q1 2019 Q1 2018 to adjusted EBITDA In accordance with strategy, personnel costs, marketing and
Slide 14: Today and tomorrow: We count on our coherent growth strategy
Today and tomorrow: We count on our coherent growth strategy Outlook 2019
Slide 15: Delivering on our growth strategy
Coherent multi vector growth strategy Delivering on our growth strategy Increase Capitalise on high penetration and Transform product Open APIs Expand regionally market fragmentation adoption Roll-out of innovative Further develop Leverage Consolidate highly Increase marketing features will attract
Slide 16: Accelerating growth in 2019
Outlook 2019 Accelerating growth in 2019 2017 2018 2019 Number 253k 27% We expect to increase our customer base by at least 45% of seats Revenue 17.3% 21% We expect a revenue growth rate between 40% and 45% growth Recurring We expect the resulting recurring revenues in 2019 revenue 77.9% 80% to be b
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: Financial calendar
Financial calendar Date Event 21 May 2019 Interim Report 1st Quarter 2019 Web- and Telephone Conference 22-23 May 2019 Berenberg USA Conference, New York Presentation and 1-on-1s 5 June 2019 Annual General Meeting Munich 20 Sep 2019 Half-year financial report 2019 Web- and Telephone Conference Sep 2
Slide 19: Thanks
Thanks @NFONcom #cloud #telephony #allip
Slide 20: Appendix
Appendix Further information about NFON
Slide 21: Introduction & Strategy
Introduction & Strategy NFON at a glance
Slide 22: Cloud PBX solutions tailored to the needs of today's business communication
NFON at a glance Cloud PBX solutions tailored to the needs of today’s business communication Classic on-premise PBX Advantages of cloud telephony Founded 2007 Increased functionality Device agnostic HQ in Munich, Germany PBX Analog/ISDN PSTN PBX Lower total Flexibility cost of Active in ownership 14
Slide 23: Wind of change
Business communication Wind of change swisscom 2017 Proliferation of SaaS Deutsche Telekom 2018 Carriers are moving delivery models from ISDN to All orange 2020 IP BT 2025 Increasing multi channel and multi The way device communication we work keeps changing 24/7 ‘Full cloud model’ Hybrid model Glob
Slide 24: Shift to cloud communication creates unique opportunity
Active participation in market consolidation Shift to cloud communication creates unique opportunity European business PBX market 2017 Disruptive business Cloud PBX market €3.2bn €16.7bn €1.6bn 26m seats 135m 13m seats seats 16% CAGR On-premise & Hosted PBX solutions 2017 2022 Market potential based
Slide 25: Penetration in Continental Europe is following the United Kingdom and North America
Market penetration and expected development Penetration in Continental Europe is following the United Kingdom and North America North America Continental Europe United Kingdom Germany 3% 9% 8% 13% 19% 18% 27% 34% Cloud PBX penetration 2017 (%) Source: MZA (2017 / Note: Penetration based on cloud bus
Slide 26: Competitive environment in a fast changing business
Business communication Competitive environment in a fast changing business UCaaS technology vendors Metaswitch broadsoft Cloud centile telephony cisco specialists BT vodafone Telefonica orange Telecom skype Gamma amazon Avaya On-premise PBX Panasonic Google Software based economy Mitel NEC Microsoft
Slide 27: Proven European roll-out strategy
Proven European roll-out strateggy Roll-out strategy supported by leading market position in Germany European Cloud PBX providers with own technology NFON’s European footprint Seats 1 400k Proof of concept >25% market share1 European subscribers 200k RingCentral 8x8 Placetel sipgate Másmóvil vozilia
Slide 28: Flexible go-to-market model
Sales channels Flexible go-to-market model The right partner for each customer segment … … in our European markets e.g. e.g. T-Systems Wholesale w/o Partner Domino’s Telefonica airtime Elektrobit e.g. acemeo Hackney FP Wholesale w/ Partner Lufthansa chess Industry Solutions westcoast airtime Mary Ka
Slide 29: One year after IPO
One year after IPO Preliminiary figures & Business highlights
Slide 30: Leading position in Germany fuels accelerated growth
Capitalise on high market fragmentation Leading position in Germany fuels accelerated growth › Acquisition of Deutsche Telefon Standard AG in Feb/March 2019 › Founded 2007, headquartered in Germany (Mainz) Nr. 1 in Germany › Strong and focussed partner network in Germany › Complementary product port
Slide 31: NFON accompanies entire customer development
Complementary product portfolio – Attract additional customers NFON accompanies entire customer development Tomorrow´s Technologies used by customers today's customers ONE TECHNOLOGY future- oriented DTS SIP CentrexX will perfectly complement the Cloud product portfolio of NFON DTS SIP Trunk in the
Slide 32: NFON wants to dominate the European cloud telephony market
Drive market penetration – Adoption of new customer NFON wants to dominate the European cloud telephony market In view of the fact that European carriers have already started to switch to All-IP, customers can look forward to a smooth transition to future-proof cloud PBX technology. 135m 135m seats
Slide 33: Presence in Europe being expanded as planned
Expand regionally Presence in Europe being expanded as planned NFON Italy NFON’s European footprint › Office in Milano 1 Proof of concept › Licence granted >25% › Staff on board market share1 › Gaining new partners › Start March 2019 NFON France › Foundation of entity › Official start May 2019 › Fir
Slide 34: Introduction of Cloudya – More than a product
Transform product Introduction of Cloudya – More than a product ONE ONE Naming Service ONE Offer ONE Tariff ONE Go2Market Results for the first quarter 2019 34
Slide 35: 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 36: Share at a glance
NFON AG Share at a glance Facts Shareholder structure1 ISIN DE000A0N4N52 Segment Prime Standard/ Telecommunication Shares 14.1 million (as per 22 March 2019) Designated Baader Bank sponsor ODDO Seydler First day of trading 11 May 2018 Coverage Berenberg Bank, Baader Bank, Oddo BHF, Hauck & Aufhäuser
Slide 37: 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 sabin
Slide 38: Thanks
Thanks @NFONcom #cloud #telephony #allip