Slide 1: Q3 Investor Presentation
Q3 Investor Presentation November 2019
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: Introduction To TeamViewer
Introduction To TeamViewer STRONG ATTRACTIVE HIGHLY PLATFORM GLOBAL GROWTH ECONOMICS PROFITABLE • Business critical • ~€10bn global TAM as • Accelerating billings • No geographic, • Cash conversion connectivity of 2018 growth >45% YoY (2) customer or vertical >90% (5) platform concentration • Active
Slide 4: Business Update: We Are On Track To Deliver On Our Commitment
Business Update: We Are On Track To Deliver On Our Commitment Continuous Successful Geographic Use Case Innovation Sustained exceptional Growth Momentum Enterprise Launch Expansion Profitability and Cash flows ✓ Q3 shows 63% YoY ✓ Enterprise customers ✓ +41% 9M 2019 YOY ✓ Important product ✓ 10% poi
Slide 5: Continuous Growth in Enterprise Segment
Continuous Growth in Enterprise Segment Customers With ACV(1)Above €10k (any product) Top 3 Deals in Q3 2019 +60% 1) Pharmaceuticals: €252k 590 (Renewal) 518 468 2) Automotive: €114k 419 (Upsell) 369 3) Technology: €79k (New Sales) Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 1. ACV: Annual Contract Value 5
Slide 6: Overview of Key Performance Indicators – Q3 2019
Overview of Key Performance Indicators – Q3 2019 Billings (€m) Cash EBITDA (€m) 56% 63% 46% 95% Growth 83 Growth 46 51 24 Q3 2018 Q3 2019 Q3 2018 Q3 2019 45% 54% 53% 50% Growth Growth 224 120 155 78 9M 2018 9M 2019 9M 2018 9M 2019 Cash EBITDA Margin 6
Slide 7: Financial Update
reas, ir J Financial Update
Slide 8: Q3 2019 Billings Update
Q3 2019 Billings Update Billings (€m) 45% 224 Growth 155 63% Growth 83 51 9M 2018 9M 2019 Q3 2018 Q3 2019 Completed Subscription Strong Renewals Dynamics Continued New Sales High Visibility on 2019E Given Transition NRR 103% 9M 2019 Momentum Q4 Renewals 8
Slide 9: Q3 2019 Regional Billings Update
Q3 2019 Regional Billings Update Billings (€m) +45% 224 31 155 77 24 +63% 48 83 51 11 116 7 36 82 20 23 36 9M 2018 9M 2019 Q3 2018 Q3 2019 EMEA AMERICAS APAC EMEA AMS APAC EMEA AMS APAC +41% +60% +30% +54% +75% +55% 9
Slide 10: Cash EBITDA 9M Q3 2019
Cash EBITDA 9M Q3 2019 Illustrative Cash EBITDA 9M 2019 (€m) FYE, 31-Dec 9M 2018A 9M 2019A Q3 2018A Q3 2019A Billings 155 224 51 83 Cost of Sales (16) (17) (6) (6) Scaling of customer support and infrastructure cost for % of Billings 10% 8% 11% 8% Router & Server plus IFRS 16 impact Gross Margin 90%
Slide 11: Free Cash Flow
Free Cash Flow Illustrative FCF (€m) Q3 2018A Q3 2019A Cash EBITDA 23.6 46.0 Change in Net Working Capital (0.5) 2.0 Capitalised operating leases from IFRS 16 amount to ~€1 in Q3 2019 Capex (3.4) (0.2)* Pre-Tax FCF 19.7 47.8 % Cash Conversion 83% 104% Capex for FY 2019 expected to amount to €10-15m
Slide 12: Leverage
Leverage Overview of Current Capital Structure (€m) FY 18 LTM Q3 19 Refinancing in September with 613m nominal debt (USD, EUR and GBP) and 4.2% weighted interest Cash And Cash Equivalents (81) (27) Capitalised operating leases from IFRS 16 amount to ~€8m in 2019 Financial Debt 676 621 Clear delevera
Slide 13: Deferred Revenue
Deferred Revenue Deferred Revenue (€m) FYE, 31-Dec 2016A 2017A 2018A 2018 9M 2019 9M Billings 177 185 230 155 224 • Billings reflect invoiced amounts in any given period ∆ Deferred Revenue – Perpetual (74) (11) 92 56 96 • For IFRS purposes billings are recognized as revenue over time ∆ Deferred Reve
Slide 14: Specific Accounting Topics
Specific Accounting Topics Specific Accounting topics (€m) Q3 2019A 9M 2019A IFRS 2 (26) (27) • IFRS 2 charge relates to incentive structure put in place and fully financed by selling shareholder IPO-related charges (8) (8) • No dilution and no cash impact • Counter-position directly booked into equ
Slide 15: Well On Track To Achieve 2019 Guidance For Billings …
Well On Track To Achieve 2019 Guidance For Billings … Billings (€m) FY 2019E: €310-320m (+35-39% vs. FY 2018A) LTM Sep-2019A: €300m Key Developments in Q3 2019 Strong operating momentum continued since H1, billings significantly ahead of prior year 33% 29%(1) 26% 24% 23% 21% 22% 22% 85-95 83 75 69 7
Slide 16: … And Cash EBITDA
… And Cash EBITDA Cash EBITDA (€m) FY2019: €177-183m LTM: €163m Key Developments in Q3 2019 Strong operating Strong increase of Cash EBITDA expected to momentum continued Cash EBITDA continue to reflect since H1, Cash EBITDA margin , 56% in Q3 seasonality, with majority significantly ahead of prior
Slide 17: FY 2019 KPI Guidance Fully Confirmed
FY 2019 KPI Guidance Fully Confirmed FY 2018 FY 2019 Billings €230m €310 – 320m Billings % Y-o-y Growth +25% 35 – 39% growth Renewal (Net Retention) Over 100% Marginally above 100% Revenue €258 €386 – 391m Cash EBITDA €121m €177– 183m 17
Slide 18: Appendix
Appendix 18
Slide 19: Reconciliation From Management Key Metrics To IFRS
Reconciliation From Management Key Metrics To IFRS Consolidated Statement of Comprehensive Income Q3 2019, in €m Management View Deferred D&A Specific Non-recurring Accounting View Adjusted P&L Revenue Adjustments IFRS P&L Billings / Revenue 83 19 102 Cost Of Sales (6) (6) (0) (13) Gross Profit Cont
Slide 20: Reconciliation From Management Key Metrics To IFRS
Reconciliation From Management Key Metrics To IFRS Consolidated Statement of Comprehensive Income 9M 2019, in €m Management View Deferred D&A Specific Non-recurring Accounting View Adjusted P&L Revenue Adjustments IFRS P&L Billings / Revenue 224 59 283 Cost Of Sales (17) (19) (1) (36) Gross Profit C
Slide 21: Deferred Revenue
Deferred Revenue Deferred Revenue (€m) For the year For the nine months ended December 31, ended September 30, 2016 2017 2018 2018 2019 Perpetual - BoP 181 254 265 265 173 Perpetual - Release of Deferred Revenue 78 106 122 83 97 Perpetual - Addition of Deferred Revenue 151 117 30 27 1 Perpetual - Eo
Slide 22: Consolidated P&L
Consolidated P&L Consolidated P&L (€m) Q3 2019 Q3 2018 % YOY 9M 2019 9M 2018 % YOY Revenue 102 73 39% 283 175 62% Cost of sales (13) (12) 5% (36) (35) 5% Gross profit / (loss) 89 61 46% 247 140 76% Other income 8 0 >100% 16 1 >100% R&D (10) (6) 70% (27) (17) 60% Sales (14) (8) 81% (35) (21) 64% Mark
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Balance Sheet (€m) September 30, 2019 December 31, 2018 Non-current assets: Property, plant and equipment 12 2 Goodwill 591 584 Intangible assets 239 253 Deferred tax assets 2 0 Other non-current assets 5 1 Total non-current assets 850 840 Current assets: Trad
Slide 24: Consolidated Balance Sheet (cont’d)
Consolidated Balance Sheet (cont’d) Consolidated Balance Sheet (€m) September 30, 2019 December 31, 2018 Equity: Issued capital 200 0 Capital reserve 310 116 (Accumulated losses)/retained earnings (474) (333) Foreign currency translation reserve 1 0 Total equity 37 (217) Non-current liabilities: Int
Slide 25: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows Consolidated Statement of Cash Flows (€m) For the nine months ended September 30, 2019 2018 Cash flows from operating activities: Profit for the period (net income/net loss) 59 0 Amortisation and depreciation 27 22 (Gain)/ loss on sale of fixed assets (0) 0 (Incr
Slide 26: Consolidated Statement of Cash Flows (cont’d)
Consolidated Statement of Cash Flows (cont’d) Consolidated Statement of Cash Flows (€m) For the nine months ended September 30, 2019 2018 Cash flows from investing activities: Investments 0 0 Capital expenditure (8) (8) Finance effects 0 0 Net cash used in investing activities (8) (8) Cash flows fro
Slide 27: Quarterly KPIs
Quarterly KPIs Quarterly KPIs for the Three Months Ended (€m) For the three months ended 2016 2017 2018 2019 Mar-31 Jun-30 Sep-30 Dec-31 Mar-31 Jun-30 Sep-30 Dec-31 Mar-31 Jun-30 Sep-30 Dec-31 Mar-31 Jun-30 Sep-30 Revenue 20 21 24 27 30 33 36 40 47 55 73 83 87 95 102 EMEA 13 14 15 17 19 20 22 24 28
Slide 28: Refinancing
Refinancing New Financing in place since 09/2019 Amount 6M Base Margin All-in interest • 613m refinancing with 35m additional RCF facility on RCF 35 0.00% 2.50% 27 September 2019 • Mandatory repayment of 5% starting 12/31/2020, full Total loan amount 613 4.18% repayment on 26 September 2024 • EURIBO