NFON AG

Investor Presentation • Aug 26, 2024

Earnings call

H1/6M results 2024 - 22 August 2024

Who you have on the call today

Patrik Heider
CEO / CFO

Agenda

01
BUSINESS UPDATE
H1 2024

02
FINANCIAL FIGURES
H1 2024

03
OUTLOOK
2024

Q\&A session

05
APPENDIX
2024

Business update

Transformation process in progress

Creating operational excellence

Organisation and employees

• Relevant key positions are staffed by highly experienced managers
• Implementation of the position of Chief Revenue Officer
• Merger of DTS with NFON AG was finalised in the second quarter 2024
• Modernising the technological basis of our products
• Developing our AI approach
• Centring our business strategy around our customers and sales partners by reorganising our sales structures
  

Internal system landscape

• Optimise our Business Support System (BSS) along the customer value chain
• Review our internal IT landscape to create our NFON IT target image

Our objectives

• To live up to our self-image as a pioneer of integrated cloud business communication in the European market.
• Dynamic growth and profitability go hand in hand.

Our acquisition at a glance

botario

Founded in 2019

Experienced team of software developers

Well established in the insurance, telecommunications and energy sectors

Revenue: EUR 2.1 million EBITDA: 30\%

Mission

to automate all communication channels on one platform with the latest AI technology

• Innovative technology company specialising in the development and implementation of advanced AI solutions for business communication
• Transaction strengthens innovative product development and generates additional business value for customers and partners
• Existing product portfolio expanded with new AI functions
• Synergies and addressing new market segments open up further prospects for profitable growth

Our objectives

Accelerate our growth and simultaneously boost our profitability.

Dynamic growth and profitability go hand in hand.

Financial figures

H1 2024

Key financial figures at a glance

H1/6M 2024

Results H1/6m 2024

Continuously growing share of recurring revenue

Development of total recurring vs. non-recurring revenue in EUR million

COMMENTS

• Recurring revenue grew moderately by $4.4 \%$ compared to 6M 2023
• Acquisition of new customers
• Increase in installed extensions (seats) within the existing customer base particularly in Germany and Austria
• Offering enhanced products (Premium Solutions) to existing customers
• Total revenue growth of $3.3 \%$ in comparison with 6M 2023 due to decrease of non-recurring revenue by $-12.3 \%$
• Enhanced high share of recurring revenue in total revenue of $94.3 \%$ provides predictable revenue streams

Reliably high gross margin again with increasingly positive development

Development of COGS (adj.) ${ }^{1}$
in EUR million and gross margin ${ }^{2}$

COMMENTS

• Improved gross margin compared to the same period last year due to successfully growing share of high-margin sales
• Cost of materials is largely variable in nature and mainly comprises costs for hardware sold, costs for airtime sold and data centre housing costs
• Cost of materials was at the same level as in the same period of the previous year
• This again results in a low material cost ratio of $15.5 \%$ compared to the same period of the previous year (6M 2023: $16.0 \%)$

Reduced personnel expenses in line with strategic focus

Adjusted ${ }^{1}$ personnel expenses in EUR million

Adjusted EBITDA continues to develop positively

Adjusted EBITDA in EUR million

NFON AG

COMMENTS

• Increased revenues, a higher gross profit and measures to increase profitability taking effect
• Cost reductions in the area of personnel expenses and other operating expenses
• EBIT improved to EUR 1.1 million for the reasons mentioned above
• We expect further positive development of the adjusted EBITDA key figures

Achieving positive free cash flow: paving the way for future success

in EUR million

INFORMATION

• Operating cash flow after 6M 2024 increased compared to 6M 2023 from EUR 2.3 million to EUR 3.7 million, driven by positive net profit development as well as
• Pre-tax profit improved from EUR -1.3 million to EUR +0.5 million
• Increase in receivables and assets reduced cash flow by EUR 0.8 million
• Decrease in provisions by EUR 0.3 million negatively impacted operating cash flow
• Foreign exchange gains of EUR 0.2 million from GBP-EUR conversion in the UK subsidiary, mainly from intercompany valuations
• Cash flow from investing activities improved by EUR 1.8 million
• FCF substantially improved from about EUR -1.1 million 6M 2023 to EUR 2.0 million in 6M 2024

Outlook

2024

2024: a year of transformation and further sustainable profitable growth

Results 2023

We expect recurring revenue growth in the mid to upper single-digit percentage range

Recurring revenue share

We expect a resulting recurring revenue ratio of $>90 \%$

Adjusted EBITDA

Q\&A session

Appendix

Share at a

glance

ISIN	DE000A0N4N52
Segment	Prime Standard/
	Telecommunication
Shares	16.6 million
	(29 March 2021)
Designated	Baader Bank,
sponsors	ODDO Seydler Bank
First day of trading	11 May 2018
Coverage	Berenberg Bank,
	Baader Bank,
	NuWays,
	ODDO BHF

Shareholder structure*
in \%, as of 17 April 2024

C-level team

Patrik Heider

CEO / CFO

• At NFON since 2023
• 20 years of C-level experience and in the IT industry
• Previous experience includes
• Nemetschek SE
• Thinkproject
• riskmethods
  

Merano Mettbach CRO

• At NFON since 1 September 2023

• 20 years of senior executive experience within the telco industry

• Previous experience includes
• Cisco Systems
• BroadSoft
• Vodafone
  

Markus Krammer CPO

• At NFON since 2015
• Previous position:
• Managing Director for NFON Developments Lda.

• 20 years of experience in senior executive positions within the telco industry

Financial calendar

NFON AG

07/03 ๑

$25 / 04$ ๑

23/05 ๑

28/06 ๑

22/08 ๑

21/11

• • • • Preliminary Group financial results FY 2023
• Group annual report FY 2023
• Financial results 3M/Q1 2024
• Annual General Meeting 2024
• Group half-year report 2024
• Financial results 9M/Q3 2024

Contact

https://www.linkedin.com/company/nfon
BLOG https://www.nfon.com/blog/de/
(5) https://facebook.com/NFONcom
(1) https://twitter.com/NFONcom

FRIEDERIKE THYSSEN
VP Investor Relations \& Sustainability

NFON AG
Zielstattstrasse 36
81379 Munich, Germany

Phone: +49 89 45300-449
ir-info@nfon.com

Disclaimer

This publication contains forward-looking statements regarding NFON AG or the NFON Group and its subsidiaries, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of the management and future operations of NFON AG 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 AG 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 AG 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. It may be incomplete or abbreviated and may not contain all material information relating to NFON AG or the NFON Group. NFON AG 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 AG or the NFON Group, in whole or in part.

NFON AG