Nfon Ag · XETR:NFN
Nfon — H1 2023 Earnings Presentation
27 slides from Nfon's earnings presentation, Aug 24, 2023
Slide 1: NFON Earnings Call H1 Results 2023
NFON Earnings Call H1 Results 2023 – August 24, 2023
Slide 2: Agenda for today
Agenda for 01 Highlights 100 days Patrik Heider today 02 Financial Figures H1 2023 03 Outlook 2023 04 Q&A Session Earnings Call H1 2023 I August 24, 2023 2
Slide 3: Highlights
Highlights 100 days Patrik Heider
Slide 4: NFON 2023 - Strategy for continuous and sustainable profitable growth
NFON 2023 - Strategy for continous and OUR OBJECTIVE: sustainable 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 H1 2023 I August
Slide 5: Operational excellence
Operational excellence Focus on three core areas: Organization and employees, business processes and internal system landscape 1 2 3 Organization & Business processes: Internal system employees: landscape: Organizational clarity, Lean processes with the Data-based system new organizational claim of
Slide 6: Setting the course for future profitable growth
Setting the Expanded and new management team to course for future serve, customer needs more efficiently and profitable growth better meet our high standards of customer centricity 1 ▪ Position of Chief Technology Officer (CTO) on the Executive Board will be newly appointed − Deniz Beskök took over
Slide 7: Our ambition at NFON
Our ambition at NFON Earnings Call H1 2023 I August 24, 2023 7
Slide 8: Financial Figures H1 2023
Financial Figures H1 2023 NFON AG
Slide 9: H1 2023 Results at a Glance
H1 2023 Results at a Glance 2020 2021 2022 Recurring revenues Recurring revenue growth of 5.1% compared to H1 2022 growth Recurring revenue Increased high share of recurring revenues of 93.2% share Adjusted Significantly improved adj. EBITDA of €3.4 m EBITDA Earnings Call H1 2023 I August 24, 2023 9
Slide 10: Continuously growing share of recurring revenues
Continuously growing share of recurring revenues Development total recurring vs. non-recurring revenues in € million COMMENTS 80.0 210.0 7.2 ▪ Recurring revenues grew by 5.1% 70.0 7.9 190.0 compared to H1 2022 73.6 8.2 68.0 − acquisition of new customers 60.0 170.0 − increase in installed extensions
Slide 11: Further reliable high gross margin with increasingly positive development
Further reliable high gross margin with increasingly positive development Development of COGS (adj.)1 in € million and gross margin2 COMMENTS ▪ Improved gross margin compared to the same period last year due to successfully growing share of higher-margin sales 14.5 14.4 ▪ Cost of materials are large
Slide 12: Reduced personnel expenses in line with strategic focus
Reduced personnel expenses in line with strategic focus Adj. personnel expenses in € million COMMENTS 36.4 ▪ Average number2 of employees decreased from Ø 504 to Ø 451 (minus 10,5%) 31.2 ▪ Personnel expenses as reported amount to 27.3 €18.3m (H1 2022: €19.7m) ▪ Adjustments: − €0.0m for stock options
Slide 13: Adj. EBITDA improvement reflects focus on profitability
Adj. EBITDA improvement reflects focus on profitability Adj. EBITDA1 in € million COMMENTS 3.5 3.4 ▪ Significant improvement in adj. EBITDA of €3.4m is the result of the strategic management decision to focus on profitability ▪ Adj. EBITDA margin in H1 2023 stood at 8.2% 2020 2021 H1 2022 2022 H1 20
Slide 14: Outlook
Outlook YAW) NFON AG
Slide 15: Guidance for continuous sustainable profitable growth
Guidance for continuous sustainable profitable growth 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 Raised guidance: Adjusted > € 4m We e
Slide 16: What's next? Together sustainably profitable
What‘s next? TOGETHER ▪ Setup of new ▪ Aligning and fine-tune ▪ Presenting the SUSTAINABLY Management structure on business unit level new roadmap for NFON PROFITABLE ▪ New leadership team ▪ Setting up and launching started their work the transition path ▪ Implementing initial measures ▪ Defining an
Slide 17: Q&A Session
Q&A Session NFON AG
Slide 18: Appendix
Appendix H1 2023 NFON AG
Slide 19: Seat growth in line with strategic focus
Seat growth in line with strategic focus Development number of seats (‘000) and ARPU COMMENTS ▪ Increase of total number of seats by 5.1% 634 641 610 ▪ ARPU development: H1 2023 stable on 587 year’s end level. Slight decline versus H1 525 2022 ▪ Continuously low gross churn rate of ~0.7% per month u
Slide 20: Decrease of marketing expenses as planned
Decrease of marketing expenses as planned Marketing expenses in € million COMMENTS ▪ Marketing expenses decreased by 61.5% yoy ▪ Focused and efficient marketing where we see market potential. Channel marketing 9.8 moves to the forefront. 8.5 6.7 5.0 12.9 12.5 9.9 10.5 1.9 4.7 2020 2021 H1 2022 2022
Slide 21: Selling cost slightly higher compared to H1 2022
Selling cost slightly higher compared to H1 2022 Selling expenses in € million COMMENTS ▪ Selling expenses mainly include sales commissions to dealers and distributors (excl. wholesale partners) 11.1 − Dealers and distributors only receive a 9.9 percentage share of revenues per seat 8.0 ▪ Increase o
Slide 22: Share at a glance
Share at a glance Shareholder structure in %, as of August 07, 2023 Others ISIN DE000A0N4N52 Segment Prime Standard/ Telecommunication 17.6 Shares 16.6 million (29 March 2021) Designated Baader Bank 32.1 sponsor ODDO Seydler 3.4 First day of trading May 11, 2018 Coverage Berenberg Bank, 6.0 Baader B
Slide 23: C-Level Team
C-Level Team MASTERTEXTFORMAT BEARBEITEN Patrik Heider Gernot Hofstetter Heinke Bock Markus Krammer Deniz Beskök Merano Mettbach CEO /CFO CCO CPCO CPO CTO (interim) CSO (Germany) ▪ With NFON since 2023 ▪ With NFON since 2018 ▪ With NFON since 2018 ▪ With NFON since 2015 ▪ With NFON since 2019 ▪ With
Slide 24: Financial Calendar
Financial ✓ 25.05. • Financial Results Q1 2023 Calendar • Web Conference ✓ 30.06. • Annual General Meeting 2023 20 Munich ✓ 24.08. • Financial Results Half-Year 2023 23 Web Conference 23.11. • Financial Results Q3 2023 • Web Conference Earnings Call H1 2023 I August 24, 2023 24
Slide 25: Contact
Contact BLOG https://www.nfon.com/blog/de/ FRIEDERIKE THYSSEN Investor Relations & ESG https://facebook.com/NFONcom NFON AG TELEPHONE Machtlfinger Straße 7 Fon +49 (0) 89 453 00 449 81379 Munich, Germany friederike.thyssen@nfon.com https://twitter.com/NFONcom Earnings Call H1 2023 I August 24, 2023
Slide 26: 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 27: NFON AG
NFON AG