The new freedom of communication - Deutsches Eigenkapitalforum 2020 - NFON AG
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Deutsches Eigenkapitalforum 2020 The new freedom of communication
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 NFON and the NFON Group. Forward-looking statements are
subject to known and unknown risks, uncertainties and other factors that may cause the results of operations, profitability,
performance or results of NFON or the NFON Group to differ materially from those expressed or implied by such forward-
looking statements. These forward-looking statements are made as of the date of this press release and are based on
numerous assumptions that may prove to be incorrect.
NFON makes no representations and assumes no liability with regard to the proper presentation, completeness,
correctness, appropriateness or accuracy of the information and assessments contained herein. The information
contained in this press release is subject to change without notice. They may be incomplete or abbreviated and may not
contain all material information relating to NFON or the NFON Group. NFON assumes no obligation to publicly update or
revise any forward-looking statements or other information contained herein, whether as a result of new information,
future events or otherwise. This press release is not an offer to buy or subscribe for securities and should not be
construed as a basis for investment decisions in NFON or the NFON Group, in whole or in part.
Deutsches Eigenkapitalforum 2020 2
We want to dominate the European Cloud
telephony market by delivering freedom of
business communication.
<
Growth
Excellence
Leadership
Award 2017
3
NFON at a glance Market – Competition – Sales
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
15
Cloud PBX European
countries
Minimal Automatic
support updates
IP-Voice
required
… PSTN
Location
independ- Scalability
400+
ence employees
Deutsches Eigenkapitalforum 2020 5
Wind of change
A market full of opportunities for NFON
Telephony is still the The importance of
Flexible working is seen Increase in mobile work
most frequently used communication and The way
as the new normality and remote work
communication channel collaboration tools we work keeps changing
24/7
75% 54% 84% 70%
of employees of companies in of medium size of large
worldwide consider Germany want to companies use organisations use
flexible working to be implement remote telephony to advanced
normal4 working on a contact their collaboration and
permanent basis2 customers1 UC, e.g. document
sharing, audio
4%
of respondents
conferencing, team
collaboration, but
smaller ones are
employees want to even less likely to Carriers are moving
Proliferation of SaaS go back3 use these methods from ISDN to All
delivery models internally than with IP
customers5
References can be found in appendix
Deutsches Eigenkapitalforum 2020 6European PBX Market Disruptive
business Cloud
€5.1bn
PBX market2
High attractive european growth market
€2.8bn
>41m
seats
23m
seats
2020 2024
1 c.12% CAGR
2
>24%2
Total European business
PBX market 20201
135m seats
On-premise &
Hosted PBX solutions
2020 2024
Source: 1MZA “The Global Telecommunications Market 2019”, “The Global Telecommunications Market 2018” and Cavell Group: "Cloud Comms Market Report Q4 2019”; 2Related to Public Multi-Tenant
Note: Cloud business telephony seats including public multi-tenant, public multi-instance and public single-instance technology; Market value calculated as respective number of total extensions/installed base based on MZA estimates multiplied with NFON’s 2017
ARPU of €10.32 per seat per month ”Competitive environment in a fast-changing business
The only true pan-European Cloud PBX provider
UCaaS technology European Cloud PBX providers with own technology
vendors
Seats
Metaswitch 600k
broadsoft
centile
cisco
European subscribers
BT
vodafone
Telefonica
skype 300k
orange Telecom
Gamma
amazon RingCentral 8x8
Avaya
Placetel sipgate
Panasonic Google
Másmóvil
Mitel NEC Microsoft
vozilia voiceworks
unify Dozens voztelecom
ASTRA of start-ups voz
ATLASSIAN fuze
Alcatel-Lucent 1k per country
Low High
European coverage
On-premise PBX economy Software based economy
Deutsches Eigenkapitalforum 2020 8Sales 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.
acmeo Hackney
FP
Wholesale
w/ Partner Lufthansa
chess
Industry Solutions
westcoast
airtime Mary Kay
Enterprise
e.g. Fressnapf
TAROX
Distributor tegut
INGRAM R+V
Betriebskrankenkasse Europartner
Explorer DocMorris
Fernreisen Mid-market
>1,000 Dealer e.g.
Figlmüller Shpock Foodist
Die Flohmarkt App
Star Inn
Direct MODOMOTO outfittery orderbird
e.g. Small business …and thousands of SOHOs
Customer relationship
Deutsches Eigenkapitalforum 2020 9Frost RadarTM
“NFON - a company with great growth potential and
strong innovative power”
NFON
Growth potential
Growth index
Best practice
Competitive Intensity
Customer value
Partner potential
Innovation index
Source: Frost & Sullivan Radar EUROPEAN HOSTED IP TELEPHONY AND UCAAS MARKET; Frost RadarTM
Deutsches Eigenkapitalforum 2020 10Business Highlights
Strategy – MilestonesCoherent multi vector growth strategy
Our way to become the No 1 in Europe
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 open APIs to allow proven market fragmented European
efforts to drive
additional customers, broad access for third entry strategy market by capitalising
penetration of existing
increase ARPU and add party solutions to cover on opportunities to gain
clients and adoption of
value to the core continental Europe further market share
new clients in existing
product
markets
Customer Market Market
Product development
development development consolidation
Deutsches Eigenkapitalforum 2020 12Milestones Completed
508,265
Recurring
Revenue 467,253
88% 449,711
Share 431,935
320,728
253,360
31/12/2017 31/12/2018 30/09/2019 31/12/2019 31/03/2020 30/09/2020
Takeover NCTI Pro >40,000 > 500,000
CLOUDYA DTS AG & Nvoice clients seats
New core product New products
14 countries Takeover 2,700 Expanding R&D Capacity
Italy Onwerk GmbH Partners Portugal selected for nearshore R&D Center
>30,000
clients
15 countries Strengthening M&A activities Meet & Share
France Capital increase Active Ownership Video Conferencing and Screen sharing (Beta)
Total number of seats on the balance sheet dateFinancial Results
9 month 2020Business model
Strong business model resulting in unique combination
of massive growth and sustainable recurring revenue
Recurring revenues 88% Non-recurring revenues 12%
One-off
Seats ARPU
€49.4m
9 months 2020
revenues
Licence fee Airtime Premium Activation fee Hardware Professional
per extension solutions services
Deutsches Eigenkapitalforum 2020 15Seat base
NFON reaches milestone of over 500,000 seats
Development number of seats (‘000) Comments
and ARPU
Increase of total number of seats by 17.7% in
comparison to 30 September 2019
Increase of total number of seats by 13.0% in
508 comparison to year-end 2019
450 Still very low gross churn rate ofRevenue development
Share of recurring revenue above guidance
Development total recurring vs. non-recurring revenues Comments
€ million
Recurring revenues in the first nine month 2020
grow by 24.7% compared to first nine month 2019
70
Non-recurring revenues show decrease of -10.8%
115
60
compared to previous year due to less hardware
sales
9.1
50
5.7 High share of recurring revenues (88.4%) due to
40 8.4 6.4
strong and sustainable growing customer base
2 88.4
7.9 85
30
80.4 84.5 48.1 84.1
20 77.9 43.7
34.6 35.0
27.8
10
0 55
2017 2018 9M 2019 2019 9M 2020
Recurring revenues Non-recurring revenues Recurring in %
1 Revenues of DTS were not consolidated in the NFON Group in January and February 2019.
Deutsches Eigenkapitalforum 2020 17Development of earnings
Strong improvement in EBITDA proofs that our business
model can be profitable at short term
Detailed reconciliation of one-off items Comments
Reconciliation from EBITDA EBITDA improves by €7.4m
9M 2020 9M 2019
to adjusted EBITDA
Main factors for positive development
€m Increased ARPU
1
EBITDA 1.8 -5.6 Very high proportion of recurring revenues
and the associated improved gross margin
Retention bonus 0.2 0.4
Lower other operating expenses,
Stock Options 0.5 0.5 e.g. marketing expenses
Expenses related to DTS acquistion 0.0 0.6 leads to a positive development of reported EBITDA
of €1.8m in 9M 2020
Total EBITDA adjustments 1
0.7 1.4
Adjustments for retention bonus and stock options
Adjusted EBITDA1 2.5 -4.2 of €0.7m
Adjusted EBITDA of €2.5m
1Rounding differences may occur in the tables
Deutsches Eigenkapitalforum 2020 18Outlook 2020
NFON guidance takes Corona effects into account
2018 2019 2020
Number We expect a growth rate of our customer base between
27% 40%*
of seats 17% and 19% (before 20% and 24%)
Recurring
39%* We expect the recurring revenue growth rate for 2020 between
revenues 25%
22% and 26% not taking into account any further acquisitions
growth
Recurring
revenues 84%* We expect the resulting recurring revenue ratio in 2020
80%
share to be between 85% and 90% (before 80% and 85%)
In line with our vision of becoming the no. 1 in the European market for cloud telephony, we will continue to invest significantly in gaining market share.
Therefore, assuming a stable overall economic development and a cloud communications market in Europe that is expanding rapidly as expected,
NFON expects a continuation of its dynamic revenue growth with possible additional impulses from further M&A activities. The EBITDA breakeven point
could be reached in the medium term if the current investment intensity is maintained. This does not include investments to take advantage of additional
growth opportunities that arise in the short term.
* Including M&A effects due to the acquisition of DTS
Deutsches Eigenkapitalforum 2020 19Key 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 growth
3 and sustainable recurring revenue
State-of-the-art “German Engineering“ Cloud PBX solution tailored to European
4 customer needs
5 Proven track record of scalable growth
6 Proven growth strategy leveraging multi dimensional layers of growth
Deutsches Eigenkapitalforum 2020 20Thanks
@NFONcom
#cloud #telephony #allipAppendix Further information about NFON
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
− CEO/CFO Francotyp-Postalia − Founder Seceidos − Aconex
− President Jenoptik LOS − Tiscali − Co-founder conject Group
− Klöckner & Co − Telenor Group − Mercer Management Consulting
Deutsches Eigenkapitalforum 2020 23Financial calendar
Date Event
13 Nov 2020 Preliminary Financial Results 3rd Quarter 2020
Corporate News
16/17 Nov 2020 Equity Forum Frankfurt
Virtual Meetings
26 Nov 2020 Financial Results 3rd Quarter 2020
Presentation
2 Dec 2020 Berenberg European Conference, Pennyhill
Virtual Meetings
Feb/ March 2021 Preliminary Financial Results Full Year 2020
Web- and Telephone Conference
Deutsches Eigenkapitalforum 2020 24NFON AG
Share at a glance
Facts Shareholder structure
ISIN DE000A0N4N52
Segment Prime Standard/
Telecommunication
Others
Shares 15.1 million 27.7%
(21 October 2019)
Designated Baader Bank
sponsor ODDO Seydler 33.90%
First day of trading 11 May 2018
Coverage Berenberg Bank,
3.18%1
Baader Bank,
Hauck & Aufhäuser,
Mainfirst
Freefloat 40.62%
(according to Deutsche Börse)
4.94%
4.8% 8.0%
17.5%
1 voting rights based on 14.1 million shares
Deutsches Eigenkapitalforum 2020 25Business communication
E-Mail and telephony are still the main contact points
How do you contact your customers?*
85% 84%
80% 78%
73%
64%
50%
35%
15%
Small (1- 49) Medium (50 - 249) Large (250+)
E-Mail Phone Video Conference
* Source: Cavell Group
Deutsches Eigenkapitalforum 2020 26Sources Studies used for market trends 1 Cavell Group: Enterprise Insight Report DE 2019 2 https://www.ifo.de/node/56686 3. https://blog.perceptyx.com/employees-become-more-productive-working-from-home 4 https://de.statista.com/statistik/daten/studie/1067502/umfrage/umfrage-zur-flexibilitaet-im-arbeitsleben-in- ausgewaehlten-laendern-weltweit/ 5 Cavell Group: Enterprise Insight Report DE 2019 Deutsches Eigenkapitalforum 2020 27
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
sabina.prueser@nfon.com
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