Slide 1: NFON Earnings Call 9M Results 2022
NFON Earnings Call 9M Results 2022 – 17 November 2022
Slide 2: 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 9M 2022 17 November 2022 2
Slide 3: Base for future profitable growth has been established
Base for future profitable growth has been established Technological Inorganic Growth Strategy + Go-to-Market Strategy + Strategy Product Development Partner Development Customer Development Market Development Market Consolidation › Ramp-up of technical › Roll-out new partner › Increase upselling an
Slide 4: Key Figures
Repositioning as a provider of integrated business communication with long-term vision Key Figures Overall, there is a lot of uncertainty among ICT buyers causing globally lengthened sales cycles as businesses evaluate market conditions, UCaaS solutions and provider capabilities (viability, GDPR c
Slide 5: Financial Results 9M 2022
Financial Results 9M 2022 Earnings Call 9M 2022 17 November 2022 5
Slide 6: 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 8.7% 70.0 7.9 190.0 compared to 9M 2021 8.2 68.0 Decrease of non-recurring by 8.0% 60.0 170.0 59.4 5.5 compared to previous year 9.1 5.9 50.0 55.
Slide 7: Seat growth mirrors development in UC market
Seat growth mirrors development in UC market Development number of seats (‘000) COMMENTS Increase of total number of seats by 8.7% 623 573 587 Globally lengthened sales cycles 525 Increasing market maturity affecting UCaaS growth rates 450 Continuously low gross churn rate of ~0.5% per month
Slide 8: ARPU development on pre-pandemic level
ARPU development on pre-pandemic level Development number of seats (‘000) and ARPU COMMENTS ARPU development: 9M 2022 stable on 9.91 year’s end level. 9.77 9.84 9.76 9.64 2021 positively effected by switch to remote working Factors influencing ARPU: − Business with wholesale partners − Voice m
Slide 9: Further increase of gross margin due to increased share of higher margin revenues
Further 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 centre ho
Slide 10: Strategic increase of resources completed
Strategic increase of resources completed Adj. personnel expenses1 in € million COMMENTS 31.2 Personnel expenses as reported amount to €28.7m (9M 2021: €23.3m) 27.3 27.9 Adjustments of €0.8m (9M 2021: €0.6m) 23.1 22.8 Stock options Focusing on core markets Adj. personnel expenses amount to
Slide 11: Pace of marketing expenses adapted
Pace of marketing expenses adapted Marketing expenses in € million COMMENTS Marketing expenses increased by 15.7% yoy Investments in roll-out of new partner program & platform and repositioning of NFON brand Q3 Marketing spending reduced in line with 9.8 deteriorating economic environment 9.0
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 Increase of sales commissions b
Slide 13: EBITDA
EBITDA Detailed reconciliation of one-off items Reconciliation from EBITDA High expenditures in headcounts and 9M 2022 9M 2021 to adjusted EBITDA marketing are levelling out in the second half of the year € million Measures to increase profitability led to adj. EBITDA -4.7 2.0 EBITDA of €0.7m in
Slide 14: Guidance for 2022 adjusted
Guidance for 2022 adjusted 2021 2020 20222022 Recurring revenues 14% We expect growth of recurring revenue between 8% and 9% growth Recurring revenues 90% We expect the resulting recurring revenue ratio of at least 90% share Number of 12% We expect growth of number of seats between 7% and 8% seats E
Slide 15: 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 16: Questions & Answers
Questions & Answers NFON AG
Slide 17: Appendix
Appendix Earnings Call 9M 2022 17 November 2022 17
Slide 18: Share at a glance
Share at a glance Shareholder structure (30 September 2022) ISIN DE000A0N4N52 Others Segment Prime Standard/ Telecommunication 18.7% Shares 16.6 million (29 March 2021) Designated Baader Bank 32.1% sponsor ODDO Seydler First day of trading 11 May 2018 2.8% Coverage Berenberg Bank, 2.9 Baader Bank, H
Slide 19: 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 20: Financial Calendar
Financial Calendar 17.11. • Financial Results 9M 2022 • Web Conference 20 27.04. • Group Financial Results FY 2022 • Web Conference 22/23 18.05 • Financial Results Q1 2023 Web Conference 24.08. • Financial Results Half-Year 2023 Web Conference Earnings Call 9M 2022 17 November 2022 20
Slide 21: 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 22: 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 23: NFON AG
NFON AG