NFON AG

Investor Presentation • May 23, 2024

Earnings Call

3M results 2024 – 23 May 2024

Who you have on the call today

Patrik Heider CEO / CFO

Agenda for today

03 Outlook

2024

04 Q&A session

05 Appendix

Business update

3M 2024

Creating operational excellence

Organisation and employees

§ Relevant key positions are staffed by highly experienced managers.

Business processes

• § Merging DTS with NFON AG
• § 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

Transformation as the basis for innovation

The "AI revolution" – driven by large language model (LLM) innovations – is starting to impact the business communications market

Our approach

Leverage the technology to solve business problems, improve customer experience and drive operational excellence

Initial focus

• Product: use of AI in conjunction with CC Hub
• Know-how: build up broad internal AI competence
• Processes: leverage AI to automate and improve internal processes

Next steps

• Integrate and leverage AI with a clear focus on business value for our customers and partners

Financial figures

3M 2024

3M 2024 results at a glance

Continuously growing share of recurring revenue

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

COMMENTS

• § Recurring revenue grew moderately by 2.8% compared to 3M 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 2.2% in comparison with 3M 2023 due to decrease of non-recurring revenue by –6.1%
• § Enhanced high share of recurring revenue in total revenue of 93.6% provides predictable revenue streams

Reliably high gross margin again with increasingly positive development +0.0%

Development of COGS (adj.)1 in EUR million and gross margin2

1Cost of materials adjusted for changes in inventories of finished goods 2Gross margin defined as (revenue - adj. cost of materials)/ revenue

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 15.9% compared to the same period of the previous year (3M 2023: 16.2%)

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Reduced personnel expenses in line with strategic focus

Adjusted1 personnel expenses in EUR million

COMMENTS

• § Average number of employees decreased from about 482 to 419 (–13.0%)
• § Personnel expenses as reported amount to EUR 8.6 million (3M 2023: EUR 8.8 million)
• § Adjustments:
  • EUR 0.1 million for stock options (3M 2023: EUR 0.0 million)

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§ Adjusted personnel expense ratio of 40.1% (3M 2023: 41.8%) expected to decrease further in the course of 2024 due to scaling effects

Adjusted EBITDA continues to develop positively

Adjusted EBITDA in EUR million

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 0.7 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

COMMENTS

• § Operating cash flow after 3M 2024 declined compared to 3M 2023 from EUR 1.5 million to EUR 0.9 million mainly caused by:
  • increase in net profit
  • decrease in trade payables
  • payments due to the reorganisation of the top management as well as
  • increased tax payments and advanced tax payments mainly due to the termination of the profit and loss share agreement with DTS
• § Cash flow from investing activities improved by EUR 1.1 million
• § FCF substantially improved from about EUR –0.3 million 3M 2023 to EUR 0.2 million in 3M 2024

Outlook

2024

2024: a year of transformation and further sustainable profitable growth

Q&A session

Appendix

Share at a glance

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

31.9 27.6 8.3 7.0 6.0 4.0 15.2 Others in %, as of 17 April 2024 * Based on the voting rights notifications submitted to NFON AG. Earnings Call 3M 2024 – 23 May 2024

Shareholder structure*

C-levelteam

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

Andreas Wesselmann CTO

• § At NFON since 2024
• § > 20 years of experience in an international working environment as well as in senior executive positions within the software industry
• § Previous experience includes
  • SAP

Merano Mettbach CSO

• § 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

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Financial calendar

20 24 07/03 • Preliminary Group financial results FY 2023

25/04 • Group annual report FY 2023

23/05 • Financial results 3M/Q1 2024

• Annual General Meeting 2024

22/08

28/06

• Group half -year report 2024

21/11

• Financial results 9M/Q3 2024

Contact

in https://www.linkedin.com/company/nfon

BLOG

https://www.nfon.com/blog/de/

https://facebook.com/NFONcom

https://twitter.com/NFONcom

https://www.youtube.com/@NFONcom

FRIEDERIKE THYSSEN VP Investor Relations & Sustainability

Machtlfinger Straße 7 81379 Munich, Germany NFON AG Zielstattstrasse 36 81379 Munich, Germany

NFON AG

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

TELEPHONE

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.

c 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.

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Thank you