NFON : Präsentation (Englisch) (2024 q1 presentation)

Earnings Call

3M results 2024 - 23 May 2024

Who you have on the call today

Patrik Heider

CEO / CFO

Earnings Call 3M 2024 - 23 May 2024

2

Agenda for	01 3M 2024
	Business update
today

02	Financial figures
3M 2024

03 Outlook2024

04

05

Q&A session

Appendix

Earnings Call 3M 2024 - 23 May 2024

3

Business update

3M 2024

Creating operational excellence

123

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

Earnings Call 3M 2024 - 23 May 2024 5

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

Contact Centre Hub

• AI Agent Chat bot
• AI Agent Voice bot
• AI Agent Email bot
• AI Agent GPT Knowledge bot
• Smart Call Transcription
• CC Hub Copilot

Earnings Call 3M 2024 - 23 May 2024

6

Financial figures

3M 2024

3M 2024 results at a glance

Recurring

revenue Recurring revenue growth of 2.8% compared to 3M 2023 growth

Recurring

revenueIncreased high share of recurring revenue of 93.6% share

Adjusted	Improved adjusted EBITDA of EUR 2.8 million
EBITDA

Earnings Call 3M 2024 - 23 May 2024

8

Continuously growing share of recurring revenue

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

+2.2%

COMMENTS

75.9

7.9

68.0

89.5

2021

80.8

7.2

73.6

91.1

2022

20.8

93.1

1.4

19.3

3M 2023

82.3

5.2

77.1

93.7

2023

21.2

93.6

1.4

19.9

+2.8%

3M 2024

• 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

Recurring revenue		Non-recurring revenue	Share of recurring (in %)

Earnings Call 3M 2024 - 23 May 2024

9

Reliably high gross margin again with increasingly positive development

Development of COGS (adj.)1	+0.0%
in EUR million and gross margin2

COMMENTS

14.514.4

13.0

84.3	84.1
83.7

82.2

81.0

3.4

3.4

2021

2022

3M 2023

2023

3M 2024

Gross margin (in %)

• 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%)

1Cost of materials adjusted for changes in inventories of finished goods	Earnings Call 3M 2024 - 23 May 2024	10
2Gross margin defined as (revenue - adj. cost of materials)/ revenue