NFON : Sustainability Report 2023

NFON GROUP I SUSTAINABILITY REPORT 2023

Transformation. Integration. Implementation.

Sustainability Report 2023

Who we are

With its headquarters in Munich, Germany, NFON AG is a leading European provider of integrated cloud business communications. The listed company (Frankfurt Stock Exchange, Prime Standard) with more than 3,000 partners in 18 European countries and eight branches counts more than 55,000 companies among its customers.

The NFON portfolio comprises four areas: Business Communication, Integration, Customer Contact and Enablement. With its core product Cloudya, the smart cloud communications platform, NFON offers hassle-free voice calls, simple video conferencing and seamless integration of CRM and collaboration tools for small and medium-sized companies.

All NFON's cloud services are operated in certified data centres in Germany, with 100% of their energy needs covered by renewable sources. NFON accompanies companies into the future of business communication by offering intuitive communication solutions.

CORPORATE.NFON.COM/EN

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NAVIGATION

Page forward

Page back

Table of contents

List of abbreviations

More information

Our goals

Quick links

01	About this report
02	To our stakeholders
03	Basic information on the Group
04	Sustainability management
05	Environment
06	Social
07	Governance
08	Additional information

We are here

NFON PRODUCT AREAS

Business Communication

• Cloudya (cloud telephony)
• Meet & Share (video calls and screen sharing)

Integration

• CRM Connect
• NCTI (Standard, Premium and Pro)
• NFON Integration for Microsoft Teams (Premium and Standard)
• ASC Recording Insights for Microsoft Teams (UK only)

Customer Contact

• Contact Center Hub
• Nmonitoring Queues
• Neorecording
• Noperatorpanel
• Nhospitality

Enablement

• Nconnect Voice (SIP trunk)
• Nconnect Data (Germany only)

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Every day, we provide companies in Europe with intuitive communication solutions to improve their business operations.

The Group operates as a telecommunications company in 18 European countries and is represented by its own companies in Germany, Austria, the UK, Spain, Italy, France, Poland and Portugal.

NFON activities with a local presence

NFON activities without a local presence

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Table of contents

01	ABOUT THIS REPORT	5
	Reporting framework and content	6
02	TO OUR STAKEHOLDERS	9
	Message from the Chairman of the Management Board	10
	Comment from the sustainability team	11
03	BASIC INFORMATION ON THE GROUP	12
	Business purpose and model	13
	Business processes and inputs	14
	Procurement and sales markets	15
	Strategy and goals	15
04	SUSTAINABILITY MANAGEMENT	16
	Governance and organisation	17
	Sustainability strategy and goals	20
	Our material topics in our sustainability reporting	21
	Stakeholder management	21
	ESG ratings and rankings	25
	Sustainable finance	25
	Risk management	26

05

06

07

08

ENVIRONMENT	27
Climate policy framework	28
Operational environmental protection	28
Emissions	29
Energy	32
Waste	34

SOCIAL	35
Employee matters	36
Community involvement	49
GOVERNANCE	50
Compliance	51
Data protection and information security	53
Sustainable procurement	57
Product responsibility	58
ADDITIONAL INFORMATION	61
Glossary	62
Abbreviations	65
Contact information	66
Imprint	67

01About this report

SUSTAINABILITY REPORT 2023		5

Table of contents	5
Reporting framework and content	6

1. Interactive table of contents You can click on the individual topics to go to the relevant page.

01 About	02 To our stake-	03 Basic infor-	04 Sustainability	05 Environment 06 Social	07 Governance 08 Additional	SUSTAINABILITY REPORT 2023		6
this report	holders	mation on	management		information
		the Group

ABOUT THIS REPORT

For more information on the subject of sustainability, please

visit corporate.nfon.com.

Reporting framework and content

The Sustainability Report 2023 of the NFON Group presents our annual performance in the area of sustainability for the financial year and can be found atcorporate.nfon.com/en/sustainability/reports. The report is available in German and English. In the event of any discrepancies, the German version is binding.

Basic information on the presentation

The Sustainability Report of the NFON Group (hereinafter: "we", "NFON", "the company", "the Group", "the NFON Group") and NFON Aktiengesellschaft (NFON AG) is essentially also an accountability report to our stakeholders. The report is published in parallel with and in relation to the combinedgroup management report, the consolidated financial statements and the notes to the consolidated financial statements, the Group corporate governance state- ment, the remuneration report and the report to the Supervisory Board. We do not repeat content that is already presented and discussed in other reports, but instead make reference to it in this Sustainability Report. To keep the report as up to date as possible, we have included all relevant information that was available up to 18 April 2024.

Constant development of our sustainability reporting

We have expanded our internal and external sustainability reporting as part of our sustainability performance. We are endeavouring to continually expand the sustainability information that is available. NFON published a sustainability report for the first time in the Annual Report 2021. In 2023, we published an additional report in the form of the non-financial statement (section 289c (3) Handelsgesetzbuch (HGB) - German Commercial Code) together with the Annual Report 2022; this statement was not reviewed by the auditors, We plan to report on the progress we are making on sustainability issues every year. And starting from 2026, we plan to present our sustainability reporting for the preceding financial year in accordance with the requirements of the Corpor­

ate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS). This report will be subjected to an external audit with reasonable assurance conducted by a public auditor for the first time. We have selected performance indicators on the basis of relevant standards or laws. These include the Global Reporting Initiative (GRI), the requirements of the German CSR Directive Implementation Act, the ESRS and the UN's 17 Sustainable Development Goals.

Properly functioning interactions between NFON and the central stakeholders are essential for our business success. For this reason, we selected the contents of this Sustainability Report not only from NFON's own point of view but equally from the perspective of (what we believe to be) the interests of our key stakeholders. We embarked on our journey of transition back in 2023 when we initiated our materiality assessmentin accordance with the principle of double materiality. We also validate what we believe to be the interests of our key stakeholders in this way.

The report largely relates to the entire NFON Group. We explicitly explain any matters that relate only to certain countries or subsidiaries.

01 About	02 To our stake-	03 Basic infor-	04 Sustainability	05 Environment 06 Social	07 Governance 08 Additional
this report	holders	mation on	management		information
		the Group

Consolidation

Unless otherwise stated, all information in this report relates to 31 December 2023 or the financial year that ends on this date. The underlying data basis for the NFON Group's non-financial key performance indicators essentially corres­ ponds to the scope of consolidation used in the financial reporting. We point out where any different information is included.

Facts and figures

Unless otherwise indicated, the measures that are presented in relation to the relevant aspects are ongoing. The rounding of totals and the calculation of percentages in this report may give rise to minor discrepancies. We continue to work on consistently enhancing the quality of our data. To better measure our sustainability performance, we have therefore expanded the data that we collect on emissions, for example. All greenhouse gas data points are collected on the basis of the Greenhouse Gas Protocol.

Certain information and data have been excluded from this report in accordance with our internal policies and legal requirements in order to minimise potential risks relating to intellectual property and confidential information.

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Threshold for adjustments

Where adjustments are made to financial indicators, we follow the annual financial statements. Where adjustments are made to ESG data (environment, social, governance), we decide at our own discretion whether we have to adjust these figures. We indicate clearly where we have adjusted any data.

Forward-looking statements

This report contains forward-looking statements and information that are based on the opinions and assumptions of the management. These are based in turn on the information that is currently available to the manage- ment. All statements contained in this report that are not historical facts are forward-looking statements. These forward-looking statements are the result of our current expectations, assumptions and forecasts concerning future circumstances and events. Consequently, these forward-looking statements and information are subject to a range of risks and uncertainties, many of which are beyond our control. If one or more of these risks and uncertainties occur, or if the assumptions made by the management prove to be incorrect, our actual results could differ substantially from the expectations described in or derived from the forward-looking statements and information. The relevant risks and uncertainties are described in the "Opportunities and risk management" and "Risks of the NFON Group" sections of the Annual Report.

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this report	holders	mation on	management		information
		the Group

Words such as "expect", "believe", "anticipate", "continue", "estimate", "fore- cast", "intend", "be confident", "assume", "plan", "predict", "should", "strategy", "may", "could", "will", "outlook", "expected development" and "goals" as well as similar expressions relating to NFON indicate these types of forward-looking statements.

The forward-looking statements reflect the viewpoint at the time they were made or as at the date of this report. We recommend that readers do not place undue trust in these statements. Apart from our legal disclosure requirements, we are under no obligation to the public to update or correct forward-looking statements due to new information or circumstances arising after the date of publication, future events or for other reasons.

This report contains statistical data taken from publications from various information sources. NFON bears no responsibility for the statistical data contained in this report. Furthermore, this type of data is subject to risks and inaccuracies and may change as a result of various factors, including the factors described above or those described in the "Opportunity and risk management" and "Risks of the NFON Group" sections of the Annual Report. These and other factors could cause our results to deviate substantially from those estimated by third parties and from the results reported by NFON.

External audit

We have produced this report on a voluntary basis. There is as yet no plan to have it audited by a public auditor. In addition, the report is submitted to the Management Board in line with the reporting structure. We plan to commission a public auditor to conduct an external audit with reasonable assurance for the first time for the 2026 report on the 2025 reporting year.

02To our stakeholders

SUSTAINABILITY REPORT 2023		9

Table of contents	9
Message from the Chairman of the Management Board	10
Comment from the sustainability team	11

1. Interactive table of contents You can click on the individual topics to go to the relevant page.

01 About	02 To our stake- 03 Basic infor-	04 Sustainability	05 Environment 06 Social	07 Governance 08 Additional	SUSTAINABILITY REPORT 2023		10
this report	holders	mation on	management		information
		the Group

TO OUR

STAKEHOLDERS

Message from the Chairman of the

Management Board

Patrik Heider

Chairman of the

Management Board

Dear Stakeholders,

I am delighted to be able to present the Sustainability Report 2023 to you. The past financial year was characterised by the start of the transformation at NFON AG. Building on the foundation of operational excellence, we will also implement this transformation with greater success in the 2024 reporting year. In this way we will ensure that we can continue to grow sustainably and successfully in the future. As a leading provider of integrated cloud business communi- cation, we are not only pursing sustainable economic success, but also aiming to make a positive contribution to the benefit of society and the environment.

Cloud technology offers companies enormous opportunities, and not just in these times of the home office and new work concepts. It enables us to design communication that is flexible and decentralised, which not only optimises­ workflows, but can also play a role in deploying resources more efficiently. Our goal is to implement effective sustainability management and to create an organisation that integrates sustainable actions seamlessly into business processes.

In this report, we present to you the initiatives we launched and the success we enjoyed in the area of sustainability over the past financial year. We show how we are making our contribution to a more sustainable (business) world. Let us join together not only to protect the interests of our generation today, but also to meet the needs of the generations that will follow us tomorrow.

I thank you for your trust and your support on our journey and look forward to continuing our successful cooperation in the future.

Yours faithfully,

Patrik Heider

Chairman of the Management Board