Nfon Ag · XETR:NFN

Nfon — Q1 2022 Earnings Presentation

25 slides from Nfon's earnings presentation, May 19, 2022

  1. Slide 1: NFON Earnings Call Q1 Results 2022

    NFON Earnings Call Q1 Results 2022 - 19 May 2022

  2. Slide 2: Presentation Chapters

    Presentation 01 Mission – Markets – Strategy Chapters 02 Q1 2022 Highlights 03 Overview Financial Figures Q1 2022 04 Outlook – Key Investment Highlights Earnings Call Q1 2022 19 May 2022 2

  3. Slide 3: 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 Q1 2022 19 May 2022 3

  4. Slide 4: From Cloud PBX to UCaaS and CCaaS to integrated Business Communications

    From Cloud PBX to UCaaS and CCaaS to integrated Business Communications Major market-shaping trends UCaaS CCaaS SaaS and cloud- Hybrid Office Sustainability Accelerated digital based applications transformation INTEGRATED BUSINESS COMMUNI- CATIONS Explosion Applications Regulations Local vs Global B

  5. Slide 5: The rapidly expanding market for integrated Business Communications

    The rapidly expanding market for integrated Business Communications … CAGR 21-25 Market size and development of the European CCaaS, Collaboration, and +12.4% 14,403 16.3% … creates strong market Cloud PBX market (in €m) 1,396 12,854 8.4% 11,464 1,159 10,184 1,031 6,045 and growth opportunities 9,010

  6. Slide 6: Next steps to drive further top-line acceleration

    Next steps to drive further top-line acceleration Technological Inorganic Growth Strategy + Go-to-Market Strategy + Strategy Product Development Partner Development Customer Development Market Development Market Consolidation › Further ramp-up of › Ramp-up of sales and › Increase upselling and › New

  7. Slide 7: On the way to reach our mission

    On the way to reach our mission Total number of seats on the balance sheet Recurring Revenue 91% 605,651 share 587,067 524,791 449,711 320,728 253,360 31/12/2017 31/12/2018 31/12/2019 31/12/2020 31/12/2021 31/03/2022 Partner/ >40,000 2,700 >3,000 >50,000 NGAGE New big Countries Clients in 15 countri

  8. Slide 8: Key figures Q1

    Key figures Q1  Recurring revenue growth of 9.2% yoy  High share of recurring revenues of 90.7%  Seat growth of 11.7% compared to 31.03.2021 Earnings Call Q1 2022 19 May 2022 10

  9. Slide 9: Seat growth at guidance

    Seat growth at guidance Development number of seats (‘000) and ARPU COMMENTS  Increase of total number of seats by 11.7% 587 606  Still high usage of airtime leads to stable 525 542 development of ARPU  Continuously low gross churn rate of 450 ~0.5% per month underlines quality of product and ser

  10. Slide 10: Sustained growth in recurring revenues

    Sustained growth in recurring revenues Development total recurring vs. non-recurring revenues in € million COMMENTS 80.0 150.0  Total revenue growth of 7.3% in 70.0 7.9 140.0 comparison to Q1 2021 8.2 68.0 130.0  Recurring revenues grew by 9.2% 60.0 59.4 120.0 compared to Q1 2021 9.1  Partner pro

  11. Slide 11: Further improved gross margin due to increased share of higher margin revenues

    Further improved gross margin due to increased share of higher margin revenues Cost of materials (adj.)1 and gross margin2 development in € million COMMENTS  High gross margin (adj.) continues to show a constantly positive development  Cost of materials on previous year’s level. 14.5 This results

  12. Slide 12: Development of personnel expenses

    Development of personnel expenses Adj. personnel expenses1 in € million COMMENTS 31.2  Personnel expenses as reported amount to €9.2m (Q1 2021: €8.0m) 27.3  Adjustments of €0.2m for stock options and 23.1 retention bonus (Q1 2021: €0.2m)  Adj. personnel expenses amount to €9.0m (Q1 2021: €7.8mm)

  13. Slide 13: Increase of marketing expenses as planned

    Increase of marketing expenses as planned Marketing expenses in € million COMMENTS  Marketing expenses increased by 67.7% yoy  Increased investments will mostly impact second half of 2022 onwards  Focus on channel marketing 9.8 9.0 15.8 6.7 12.9 9.9 9.3 5.9 1.9 1.1 2019 2020 Q1 2021 2021 Q1 2022

  14. Slide 14: Selling Costs in line with 2021 ratio

    Selling Costs in line with 2021 ratio Selling expenses in € million COMMENTS  Selling expenses mainly include sales commissions to dealers and distributors (excl. wholesale partners)  Dealers and distributors receive a percentage share of revenues per seat provided the customer is still a customer

  15. Slide 15: EBITDA

    EBITDA Detailed reconciliation of one-off items  NFON still aims to increase the Reconciliation from EBITDA Q1 2022 Q1 2021 to adjusted EBITDA investment ratio again in 2022  High expenditures in headcounts and € million marketing EBITDA -0.4 1.6 Retention bonus/ Stock options 0.2 0.2 Consulting e

  16. Slide 16: NFON Guidance 2022

    NFON Guidance 2022 2021 2020 20222022 Number 12% We expect to grow our customer base between 10% and 12% of seats Recurring revenues 14% We expect to grow the recurring revenue between 10% and 12% growth Recurring revenues 90% We expect the resulting recurring revenue ratio at least 88% share Earnin

  17. Slide 17: 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

  18. Slide 18: Questions & Answers

    Questions & Answers NFON AG

  19. Slide 19: Appendix

    Appendix Earnings Call Q1 2022 19 May 2022 21

  20. Slide 20: Share at a glance

    Share at a glance Shareholder structure (31 March 2022) Others 17.4% ISIN DE000A0N4N52 32.1% Segment Prime Standard/ 2.8% Telecommunication 4.4% Shares 16.6 million (29 March 2021) Designated Baader Bank 5.8% sponsor ODDO Seydler First day of trading 11 May 2018 5.1% Coverage Berenberg Bank, Baader

  21. Slide 21: 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 

  22. Slide 22: Financial Calendar

    Financial 19.05. Financial Results Q1 2022 Web Conference Calendar 20 18.08. Half-year Results 2022 Web Conference 22 Aug. Annual General Meeting Location will be published in due time 17.11. Financial Results Q3 2022 Web Conference Earnings Call Q1 2022 19 May 2022 24

  23. Slide 23: Contact

    Investor Relations Contact BLOG https://www.nfon.com/blog/de/ SABINA PRÜSER Head of Investor Relations 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 sabina.prueser@nfon.com

  24. Slide 24: 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

  25. Slide 25: NFON AG

    NFON AG

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