Slide 1: Q2 / H1 2021 Results
Q2 / H1 2021 Results Investor Presentation 3 August 2021
Slide 2: Important Notice
Important Notice This presentation as well as any information communicated in connection therewith (the "Presentation") contains information regarding TeamViewer AG (the "Company") and its subsidiaries (the Company, together with its subsidiaries, "TeamViewer"). It is being provided for informationa
Slide 3: Business Overview
Business Overview Oliver Steil
Slide 4: H1 2021: full focus on execution of growth initiatives and retention
H1 2021: full focus on execution of growth initiatives and retention Financial Highlights Strategic Achievements Additional Highlights • Successful retention of lockdown cohorts - • Stable subscriber churn H1 2021 Q2 2021 although on lower renewal values • 17% subscriber growth3 • Enterprise growth
Slide 5: Successful subscriber retention: growing base, stable churn, strong core
Successful subscriber retention: growing base, stable churn, strong “core“ High ASP entry licenses with below average churn and more use cases drive ACV expansion Subscribers (thousand) & Subscriber Churn Rate1 (LTM) Entry licenses address wide Customer & Use Case Spectrum • Prior years’ churn benef
Slide 6: Enterprise growth driven by new logos and ACV expansion
Enterprise growth driven by new logos and ACV expansion Progressively improving client base with now c. €30k ACV per customer on average Enterprise Customers (LTM)1 Enterprise Billings / Total and by ACV (€m, LTM)2 €10-50k >€50k >€100k >€200k 30 Jun 21 2,252 54% 17% 11% 19% 67.4 46% +444 new3 +351 v
Slide 7: Selection of enterprise deals in Q2 2021
Selection of enterprise deals in Q2 20211 Deals with a multitude of use cases in various sectors around the world Sector Country € Value Product Use Case Materials Sweden >200k Tensor IT support requiring high security features and MS Intune integration Global leading manufacturer of printing presse
Slide 8: Launch of marketing partnerships drives brand awareness
Launch of marketing partnerships drives brand awareness Metrics demonstrate ability to expose TeamViewer to millions more potential customers Partnerships measured across 3 Dimensions Launch Activities in May and July with substantial Reach and Coverage • Brand awareness BRAND ACTIVATION • Considera
Slide 9: Financial Overview
Financial Overview Stefan Gaiser
Slide 10: Financial Highlights
Financial Highlights Underlying revenue from SaaS up 28% in H1. IFRS 2 impact on EBITDA largely recognized by year-end Top Line (€m) Profitability (€m) H1 2021 Q2 2021 H1 2021 Q2 2021 268.1 121.6 Billings Adj. EBITDA 147.0 57.0 +22% cc1 +18% cc1 (non-IFRS) (non-IFRS) +12% -0% +19% +15% Change in Cha
Slide 11: 22% cc billings growth in H1 with c. 623,000 subscribers by 30 June 21
22% cc billings growth in H1 with c. 623,000 subscribers by 30 June 21 NRR1 of 95% due to higher than expected right-sizing by retained customers and adverse FX (c.3pp) Subscriber Development (thousand, LTM) Billings by Category (€m) +22%cc +19% +17% 268.1 20 623 +18%cc 1.4 603 225.7 54.4 534 +15% 0
Slide 12: Billings by regions
Billings by regions Strong performance in AMERICAS impacted by FX headwinds AMERICAS EMEA APAC H1 2021 Billings H1 2021 Billings H1 2021 Billings €83.4m €150.6m €34.2m +17% | +27% cc +21% | +21% cc +15% | +17% cc Q2 2021 Billings Q2 2021 Billings Q2 2021 Billings €38.5m €63.8m €19.2m +17% | +26% cc
Slide 13: Industry-leading profitability despite significant growth investments
Industry-leading profitability despite significant growth investments in marketing, sales and R&D €m Q2 21 Q2 20 ∆ H1 21 H1 20 ∆ Billings 121.6 105.9 15% 268.1 225.7 19% • Gross profit margin stable and well Cost of sales (10.0) (9.1) (20.2) (17.0) 19% % of billings -8.2% -8.7% 9% -7.5% -7.5% above
Slide 14: 57% of Q2 adjusted EBITDA converting into levered free cash flow
57% of Q2 adjusted EBITDA converting into levered free cash flow Levered Free Cash Flow and Cash Conversion €m Q2 21 Q2 20 ∆ H1 21 H1 20 ∆ Pre-tax net cash from operating activities (IFRS) 59.0 64.8 -9% 105.6 127.7 -17% • Cash flow mainly impacted by Income tax paid (17.0) (9.6) 77% (29.5) (17.7) 67
Slide 15: Strong liquidity position - net leverage ratio at 1.5x Adj. EBITDA (LTM)
Strong liquidity position - net leverage ratio at 1.5x Adj. EBITDA (LTM) Bolt-on acquisitions funded with operating cash flow Development of cash & cash equivalents in Q2 2021 / Net Financial Liabilities at 30 June 2021 (€m) Cash & Cash Operating Cash & Cash Financial Net Fin. Capex M&A Paid Interes
Slide 16: Guidance unchanged
Guidance unchanged Expecting the lower end of the projected billings and revenue ranges Outlook 2021 2023 Objective Long-term Ambition Billings Grow ≥ 25% p.a. €585 – 605m1 ≥ €1,000m (non-IFRS) after 2023 Revenue €525 – 540m1 (IFRS) Margin expansion Adj. EBITDA Margin 49 – 51% Around 50% until 2023
Slide 17: Appendix
6 TeamViewer Appendix
Slide 18: Q2 2021 reconciliation from management key metrics to IFRS
Q2 2021 reconciliation from management key metrics to IFRS Management view Change in Other non-IFRS Accounting view €m D&A adjusted P&L1 Deferred revenue2 adjustments IFRS P&L Billings / Revenue 121.6 1.3 122.8 Cost of sales (10.0) (8.4) (0.2) (18.6) Gross profit contribution 111.6 / (91.8 % of Bill
Slide 19: H1 2021 reconciliation from management key metrics to IFRS
H1 2021 reconciliation from management key metrics to IFRS Management view Change in Other non-IFRS Accounting view €m D&A adjusted P&L1 Deferred revenue2 adjustments IFRS P&L Billings / Revenue 268.1 (27.0) 241.2 Cost of sales (20.2) (16.4) (0.4) (37.0) Gross profit contribution 248.0 / (92.5 % of
Slide 20: Deferred revenue development in H1 2021
Deferred revenue development in H1 2021 Other Other Additions Release to Additions Release to €m 1 Jan Additions / 31 Mar 1 Apr Additions / 30 Jun from Billings IFRS Revenue from Billings IFRS Revenue Release Release Subscription Model 212.5 146.6 (15.2) (116.6) 227.3 227.3 121.6 10.9 (122.3) 237.5
Slide 21: Non-IFRS adjustments in EBITDA
Non-IFRS adjustments in EBITDA €m Q2 21 Q2 20 H1 21 H1 20 Total IFRS 2 charges (14.8) (10.3) (29.8) (20.4) • M&A related and TLO share-based compensation not cash relevant TeamViewer LTIP (0.7) (0.3) (1.6) (0.4) • Other relate mainly to IT projects (incl. ERP) M&A related share-based compensation (7
Slide 22: Full time employees by functional area
Full time employees by functional area In FTE 30 June 21 31 Dec 20 ∆ 30 June 20 ∆ YoY Sales 616 495 24% 426 45% Marketing 103 94 10% 81 27% Tech Support 77 85 -9% 56 38% R&D 439 384 14% 316 39% G&A 237 198 20% 171 38% Total 1,472 1,256 17% 1,051 40% 22 Q2 / H1 2021 Results - Investor Presentation
Slide 23: Financial Statements
6 TeamViewer Financial Statements
Slide 24: Profit & Loss Statement
Profit & Loss Statement € thousand Q2 2021 Q2 2020 ∆% H1 2021 H1 2020 ∆% Revenue 122,830 114,729 7% 241,160 217,446 11% Cost of sales (18,573) (16,218) 15% (36,954) (30,285) 22% Gross profit 104,257 98,511 6% 204,207 187,161 9% Other income 566 68 >100% 2,060 521 >100% Research and development (16,1
Slide 25: Balance Sheet
Balance Sheet € thousand 30 Jun 2021 31 Dec 2020 Non-current assets Goodwill 666,902 646,793 Intangible assets 265,333 255,330 Property, plant and equipment 45,188 40,469 Financial assets 4,490 4,516 Other assets 1,013 857 Deferred tax assets 275 159 Total non-current assets 983,201 948,124 Current
Slide 26: Balance Sheet (cont'd)
Balance Sheet (cont’d) € thousand 30 Jun 2021 31 Dec 2020 Equity Issued capital 201,071 201,071 Capital reserve 395,127 366,898 (Accumulated losses)/retained earnings (308,930) (326,854) Hedge reserve (61) (61) Foreign currency translation reserve 262 (343) Total equity attributable to shareholders
Slide 27: Cash Flow Statement
Cash Flow Statement € thousand H1 2021 H1 2020 Cash flows from operating activities Profit before taxation 39,536 69,692 Depreciation, amortisation and impairment of non-current assets 24,622 19,322 Increase/(decrease) in provisions (140) (978) Non-operational foreign exchange (gains)/losses 10,838
Slide 28: Cash Flow Statement (cont'd)
Cash Flow Statement (cont’d) € thousand H1 2021 H1 2020 Cash flows from financing activities Repayments of borrowings (52,730) 0 Proceeds from borrowings 400,000 0 Payments for the capital element of lease liabilities (3,620) (1,757) Interest paid for borrowings and lease liabilities (6,744) (13,636