munich 3 march 2020 preliminary results 2019 and outlook 2020 · 2020-03-02 · correctness,...

Preliminary Results 2019 and Outlook 2020Munich | 3 March 2020

Disclaimer

Preliminary Results 2019 and Outlook 2020 - 3 March 2020

This publication contains forward-looking statements regarding NFON AG ("NFON") or the NFON Group and itssubsidiaries, including assessments, estimates and forecasts regarding the financial position, business strategy, plansand objectives of management and future operations of NFON and the NFON Group. Forward-looking statements aresubject 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 onnumerous 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 informationcontained in this press release is subject to change without notice. They may be incomplete or abbreviated and may notcontain all material information relating to NFON or the NFON Group. NFON assumes no obligation to publicly update orrevise 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 beconstrued as a basis for investment decisions in NFON or the NFON Group, in whole or in part.

NFON AG

2

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

Growth Excellence Leadership Award 2017

3

450k40%

84%

39%

33%

321k27%

Accelerated growth 2019Outlook

2017 2018

We expect to increase our customer base between39% and 41%

Number of seats

253k32%

Recurring revenue share

We expect the resulting recurring revenues in 2019 to be in the range between 80% and 85% of total revenues78%

2019e adjusted guidance

80%


We expect recurring revenue to grow between38% and 40%29%

Recurring revenuegrowth

25%

We expect a revenue growth rate in a range between30% and 33%17%Revenue

growth 21%

Results*

4

* Including M&A effects due to the acquisition of DTS

Business Highlights

Our way to become the No 1 in EuropeCoherent multi vector growth strategy

Customer development

Market development

Leverageproven marketentry strategy

to covercontinental Europe

Expand regionally

Increase marketing efforts to drive

penetration of existing clients and adoption of new clients in existing

markets

Increasepenetration and

adoption

Product development

Transform product

Roll-out of innovative features will attract

additional customers, increase ARPU and add

value to the core product

Further developopen APIs to allow

broad access for third party solutions

Open APIs

Marketconsolidation

Capitalise on high market fragmentation

Consolidate highly fragmented European market by capitalising

on opportunities to gain further market share

6Preliminary Results 2019 and Outlook 2020 - 3 March 2020

https://www.google.de/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiQmrSBuMrYAhXEhrQKHStiBGUQjRwIBw&url=https://developer.digitalchalk.com/&psig=AOvVaw182MNlCoy-bFMc5FmRgLU1&ust=1515572050730092

Milestones Completed 2019

31.12.2017 31.12.2018 31.03.2019 31.06.2019 31.09.2019 31.12.2019

CLOUDYANew core product

TakeoverDTS AG

15 countriesFrance

>30,000clients

14 countriesItaly

StrengtheningM&A activitiesCapital increaseActive Ownership

253,360

320,728

390,826

Total number of seat on the balance sheet date

84%RecurringRevenue

Ø Share408,393

431,935

NCTI Pro & NvoiceNew products

449,711

Takeoveronwerk GmbH

>40,000clients

Preliminary Figures 2019

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


Business model

Non-recurring revenues 16%Recurring revenues 84%

Activation fee Hardware Professionalservices

Licence feeper extension

Airtime Premiumsolutions

€57m2019e

revenues

Seats ARPU One-off

9

Development total recurring/ non-recurring revenues

21.627.8

34.6

48.18.8

7.9

8.4

9.1

74.8

77.9

80.4

84.1

72

74

76

78

80

82

84

86

0

10

20

30

40

50

60

2016 2017 2018 2019e

Recurring revenues Non-recurring revenues Recurring in %

Significant increase of recurring revenues


Revenue development

2

Comments

Total revenues grow by 32.7% to €57.1m in comparison to €43.0m in 2018

Q4 2019 total revenues on a growth rate of 32.9 compared to Q4 2018 (€15.7m vs. €11.8m)

Non-recurring revenues 2019 show slight increase of 7% compared to 2018

Significant increase of recurring revenues by 38.9% compared to 2018 (Q4 2019 compared to Q4 2018: 39.7%)

Cumulative effect quarter by quarter due to steadily growing total number of seats

High share of recurring revenue (84.1%) due to strong and sustainable growing customer base

1 including extraordinary effect from R&D project amounting to €1.5m) 2First time consolidation of DTS in March 2019

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Strong growth of seats


Sustainable recurring revenues

Development number of seats (‘000) and ARPU

Comments

Increase of total number of seats by 40.2%

Very low gross churn rate of <0.5% per month underlines quality of product and service and guarantees continuous recurring revenues

Increasing share of wholesale partner business selling their own airtime leads to expected decrease of total blended ARPU

Additional premium solutions represent upside potential for ARPU development in the medium term

134

192

253

321

450

2015 2016 2017 2018 2019e

11.24 10.86 10.32 9.92 9.64

blended ARPU € per seat per month

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EBITDA reflects investments to execute growth strategy


Development of earnings

Detailed reconciliation of one-off items Comments

EBITDA as reported amounts to approx. €-7.0m

In accordance with strategy, personnel costs, marketing and sales commissions continue to increase

One-off effects in connection with the consistent implementation of the M&A strategy (DTS) in the amount of €0.6m burdened plus €0.1m others

Adj. EBITDA at €-5.1m

1

1

Reconciliation from EBITDA to adjusted EBITDA 2019e 2018

€m

EBITDA -7.0 -7.8

Stock Options/ESOP 0.6 3.61

Retention bonus 0.5 0.8

IPO costs 0 2.4

Expenses related to DTS acquistion/Other one-off expenses2 0.7 -0.2

Total EBITDA adjustments 1.9 6.6

Adjusted EBITDA -5.1 -1.2

1 Including equity and cash settled share-based payment programmes 2Expenses related to tax and social security matters (2018: reversals)

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Continued growth courseOutlook 2020


Recurringrevenuesgrowth

Number of seats

Recurring revenues share

2020

We expect the revenue growth rate for 2020 between22% and 26%25%

We expect a significant growth of our customer base between 20% and 24%27%

We expect the resulting recurring revenue in 2020 to be between 80% and 85%80%

2018

39%*

40%*

84%*

2019e

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

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Key investment highlights


Huge addressable business communication market being disrupted by structural shift to Cloud PBX solutions1

Only true Pan-European Cloud PBX company best positioned to become the dominant European player2

Strong business model resulting in unique combination of massive growth and sustainable recurring revenue3

State-of-the-art “German Engineering“ Cloud PBX solution tailored to European customer needs4

Proven track record of scalable growth5

Proven growth strategy leveraging multi dimensional layers of growth6

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AppendixFurther information about NFON

>20 years of C-Level experiencePrevious experience includes− CEO/CFO Francotyp-Postalia− President Jenoptik LOS− Klöckner & Co

Hans Szymanski CEO/CFO

>20 years of experience in the IT/Telco industryPrevious experience includes− Founder Seceidos− Tiscali− Telenor Group

Jan-Peter KoopmannCTO

César Flores RodríguezCSO

>10 years of C-Level experiencePrevious experience includes− Aconex− Co-founder conject Group− Mercer Management Consulting

Management Board


NFON AG

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Financial calendar


Date Event3 March 2020 Preliminary Financial Results 2019

Web- and Telephone Conference

1 April 2020 Presentation Final Financial Results 2019


18 May 2020 Interim Report 1st Quarter 2020


28 May 2020 Annual General Meeting

Kustermann, Viktualienmarkt 8, 80331 Munich

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11 March 2019 Berenberg European Opportunity London/ Jeffries Enterprise Communication Summit

London, New York

17

7 May 2020 NFON - Capital Market Day

Munich

Shareholder structure

Share at a glanceNFON AG

FactsISIN DE000A0N4N52Segment Prime Standard/

TelecommunicationShares 15.1 million

(21 October 2019)Designated Baader Banksponsor ODDO SeydlerFirst day of trading 11 May 2018Coverage Berenberg Bank,

Baader Bank, Hauck & Aufhäuser

Others

1 voting rights based on 13.8 million shares 2 voting rights based on 14.1 million shares


4.94%

3.41%1

3.18%2

7.74%111.43

%

30.10%1

14.05%

25.15%

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Contact


Investor Relations

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

Facebookhttps://facebook.com/NFONcom

Twitterhttps://twitter.com/NFONcom

Sabina PrüserHead of Investor Relations

NFON AGMachtlfinger Straße 781379 MunichGermany

TelephoneFon +49 (0) 89 453 00 134Fax + 49 (0) 89 453 00 33 [email protected]

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Thanks@NFONcom

#cloud #telephony #allip

munich 3 march 2020 preliminary results 2019 and outlook 2020 · 2020-03-02 · correctness,...

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