NFON AG — Investor Presentation 2018

May 17, 2018

THE NEW FREEDOM OF BUSINESS COMMUNICATION

Financial Report Q1 2018 17 May 2018

We want to dominate the European Cloud telephony market by delivering freedom of business communication.

Growth Excellence

Note: Use of logos for Analyst Presentation only Leadership Award 2017

Introduction ¹

NFON – The only true Pan-European Cloud PBX company

Shift to cloud communication creates unique opportunity

5 Source: MZA (2017), NFON Annual Report

¹calculated 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 Note: Cloud business telephony seats including public multi-tenant, public multi-instance and public single-instance technology

Business Highlights

Successful IPO - NFON has started operating as a listed Company in May 2018

Final offer price	€12.00
Listing	Frankfurt Stock Exchange (Prime Standard) on 11 May 2018
First price	€13.00
Total Offer Size	€80.5m total offer size, thereof €50m gross proceeds from capital increase
Major Shareholders	Milestone Venture Capital (30.1%), Earlybird Venture Capital (14.9%)
Management participation in IPO	Hans Szymanski (CEO/ CFO) 12,500 shares, Jan-Peter Koopmann (CTO) 9,166 shares, César Flores Rodríguez (CSO) 10,416 shares
Lock-up	12 months for the Company, Management Board and pre-IPO shareholders

Strong Q1 2018 – in line with expectations

Business Model & Financial Overview

3

NFON's top line mechanics are centred around recurring revenue

Strong top line results in Q1 2018 to be further accelerated, driven by cumulative effects

Comments

• Based on the nature of NFON's business, revenue growth rates in the earlier quarters of the year tend to be lower than expected full year growth rates as a result of the cumulative effect of new seat wins
• Considering Q1 2018 as a pre-IPO quarter, the following quarters will be influenced by the use of IPO proceeds
• We will start to invest in the multivector growth strategy
• In Q1 2018, NFON achieved EBITDA of €0.1m adjusted for €0.5m of IPO costs in line with expectations

Strong growth in recurring revenue from consistent increase in total number of seats and largely stable ARPU

Comments

• Historically, NFON has experienced a strong increase in the number of total seats serviced, driven by the attractiveness of our solutions and the increasing demand for cloud telephony systems in general
• Based on largely stable ARPU levels and an increasing number of seats NFON has been able to grow its recurring revenue base significantly
• ARPU levels have furthermore been impacted by the increasing share of sales through wholesale partners selling their own airtime
• Additional premium solutions represent upside potential for ARPU development in the medium term

NFON – Q1 Financial Highlights at a Glance

4

Strategy Overview and Guidance

Guidance for 2018

Clear focus on implementation of growth strategy We expect the revenue growth rate for 2018 to clearly outperform the revenue growth rate of 2017 We expect a significant growth of our customer base by around 30% Number of seats 253k Recurring revenue share (%) 17.3% Revenue growth (%) 2017 2018 We expect the resulting recurring revenue in 2018 to be between 75% – 80% 77.9%

Coherent multi vector growth strategy

Key Investment Highlights and Q&A

5

Key investment highlights

Huge addressable business communication market being disrupted by structural shift to Cloud PBX solutions 1

Only true Pan-European Cloud PBX company best positioned to become the dominant European player 2

Strong business model resulting in unique combination of massive growth and sustainable recurring revenue 3

State-of-the-art "German Engineering" Cloud PBX solution tailored to European customer needs 4

Outstanding track record of scalable growth underpinned by break-even profitability at Group level 5

Proven growth strategy leveraging multi dimensional layers of growth 6

Thanks @NFONcom #cloud #telephony #allip

Management Board of NFON AG

Hans Szymanski CEO/CFO

• 20 years of C-Level experience

• Previous experience includes
• CEO/CFO Francotyp-Postalia
• President Jenoptik LOS
• Klöckner & Co

Jan-Peter Koopmann CTO

• 20 years of experience in the IT/Telco industry

• Previous experience includes
• Founder Seceidos
• Tiscali
• Telenor Group

César Flores Rodríguez CSO

• 10 years of C-Level experience

• Previous experience includes
• Aconex
• Co-founder conject Group
• Mercer Management Consulting

NFON share at a glance

Facts

ISIN	DE000A0N4N52
Segment	Prime Standard/ Telecommunication
Shares	13.8 million
Designated sponsor	Baader Bank ODDO Seydler
First day of trading	11 May 2018

Shareholder structure¹

Financial calendar

Date	Event
17 May 2018	Interim Report 1st Quarter 2018
Web- and Telephone Conference
20 Sep 2018	Interim Half-year Report 2018
Web- and Telephone Conference
22 Nov 2018	Interim Report 3rd Quarter 2018
Web- and Telephone Conference
26 – 28 Nov 2018	German Equity Forum Frankfurt
Analyst Presentation and 1-on-1

Contact

Sabina Prüser Head of Investor Relations

NFON AG Machtlfinger Straße 7 81379 München

Telephone

Fon +89 (0) 89 453 00 134 Fax + 89 (0) 89 453 00 33 134 sabina.prueser@nfon.com

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

Facebook https://www.facebook.com/NFONcom

Twitter https://twitter.com/NFONcom