Slide 1: Q2 2020 Investor Presentation
Q2 2020 Investor Presentation 4 August 2020 ANYONE. ANYTHING. ANYWHERE. ANYTIME
Slide 2: Importance Notice
Importance 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 information
Slide 3: Business Overview
Business Overview CEO Oliver Steil 3
Slide 4: Strong Profitable Growth Amid A Global Crisis
Strong Profitable Growth Amid A Global Crisis Subscribers Net Retention Rate Billings STRONG ORGANIC 534k (+45% yoy) 105% €105.9m (+45% yoy) PERFORMANCE CONTINUED IN Q2 High Net Leverage Target Adj. EBITDA Free Cash Flow1 Achieved €57.3m (+60% yoy) (€44.4m) 1.9x Adj. EBITDA STRATEGIC GROWTH INITIATI
Slide 5: TeamViewer And Ubimax To Create The Global Leader In Industrial Workplace Technology
TeamViewer And Ubimax To Create The Global Leader In Industrial Workplace Technology Leadership In AR Based Frontline Workforce Solutions Ubimax Billings3 (€m) Combined Complementary products, enhanced use case discovery TAM of 45 - 50% €40bn in 20231 Accelerated growth and innovation in AR and IoT
Slide 6: Progressive Growth Of The Enterprise Customer Base
Progressive Growth Of The Enterprise Customer Base… Customers With Annual Contract Value > €10k LTM1 Top 50 Deals Accumulated Contract Value LTM (€m) +181% +133% 1,457 6.3 1,183 5.5 698 3.4 590 2.7 2.8 518 30. Jun 19 30. Sep 19 31. Dec 19 31. Mar 20 30. Jun 20 30. Jun 19 30. Sep 19 31. Dec 19 31. Ma
Slide 7: With Deals Across All Sectors Addressing Numerous Use Cases
…With Deals1 Across All Sectors Addressing Numerous Use Cases Sector Country ACV Licence Use Cases Remote access to more than 50 different on-premise systems, Media Canada >100k Tensor employee training, WFH Industrials USA >100k Tensor Customer helpdesk & training, WFH Centralized IT support with 3
Slide 8: Competitive Edge By Continuous Innovation And Expanding Partnerships And Integrations
Competitive Edge By Continuous Innovation And Expanding Partnerships And Integrations Universal Android Working From Home Browser Based Support Support Features Enhancements TV Core / Partnership Tensor Tensor with RA Jira Integration Unified Licence Integration Integration MDM Integration Integrati
Slide 9: Financial Overview
Financial Overview CFO Stefan Gaiser 9
Slide 10: Delivering Above Market Growth With High Profitability
Delivering Above Market Growth With High Profitability Billings (€m) Adj. EBITDA (€m) / Adj. EBITDA Margin +45% +60% 105.9 57.3 73.1 35.8 54.0% 49.0% Q2 2019 Q2 2020 Q2 2019 Q2 2020 +59% +78% 225.7 131.1 141.6 73.5 58.1% 51.9% H1 2019 H1 2020 H1 2019 H1 2020 10 Q2 2020 Investor Presentation
Slide 11: Sustained Subscriber Growth And High Net Retention Rate
Sustained Subscriber Growth And High Net Retention Rate…. Subscribers (thousand, LTM) Net Retention Rate (LTM) +45% • NRR is based on annually recurring billings net of payment defaults 534 • Slight decrease due to USD and GBP weakening 464 • Churn and up- and cross-sell stayed largely stable 175 36
Slide 12: Very Strong Q2 Billings - Most Notably in the Americas
…Resulted In Very Strong Q2 Billings - Most Notably in the Americas Billings By Category (€m) Billings By Region (€m) +45% • Suspension of active free to paid conversion with higher impact on APAC given large free use base 105.9 0.7 105.9 28.1 APAC 73.1 17.0 +34% 2.1 1.0 73.1 32.8 25.5 12.7 AMERICAS
Slide 13: And With Above Market Profitability
…And With Above Market Profitability €m Q2 20 Q2 19 ∆ H1 20 H1 19 ∆ Billings 105.9 73.1 +45% 225.7 141.6 +59% • Continued investments across all functions Cost of Sales (9.1) (5.5) (17.0) (11.0) including accelerated % of Billings +65% +54% 8.6% 7.6% 7.5% 7.8% hiring in Sales & Marketing Gross Profi
Slide 14: Sharp Increase In Operating And Free Cash Flow
Sharp Increase In Operating And Free Cash Flow €m Q2 20 Q2 19 ∆ H1 20 H1 19 ∆ Net Cash from Operating • One-off capital 55.3 24.5 +126% 110.0 52.7 +109% Activities (IFRS) expenditure related to ERP system (€6.2m) and Capital Expenditure (excl. M&A) (9.9) (4.2) +134% (15.1) (7.9) +90% new headquarter
Slide 15: Deleveraging Target Achieved Six Months Ahead Of Plan
Deleveraging Target Achieved Six Months Ahead Of Plan Due To Continued Strong Cash Conversion Net Financial Debt and Net Leverage Development Cash & Cash Equivalents Loan Facilities IFRS 16 Leases Net Financial Debt • Target of <2.0x by year-end Net Leverage 2020 achieved in Q2 already €m 616.8 623.
Slide 16: 2020 Outlook Confirmed
2020 Outlook Confirmed Excluding Ubimax and considering a weakening of the U.S. Dollar Billings • Billings of around €450m • Revenue of at least €450 due to significant Q1 2020 billings and Revenue therefore higher deferred revenue releases before year end Adj. EBITDA • Adj. EBITDA margin of around
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: Q2 2020 Reconciliation From Management Key Metrics To IFRS
Q2 2020 Reconciliation From Management Key Metrics To IFRS Other non- Management View Deferred IFRS Accounting View €m Adjusted P&L Revenue D&A Adjustments IFRS P&L Billings / Revenue 105.9 8.8 114.7 Cost Of Sales (9.1) / (8.6% of Billings) (6.9) (0.1) (16.2) / (14.1% of Revenue) Gross Profit Contri
Slide 20: H1 2020 Reconciliation From Management Key Metrics To IFRS
H1 2020 Reconciliation From Management Key Metrics To IFRS Other non- Management View Deferred IFRS Accounting View €m Adjusted P&L Revenue D&A Adjustments IFRS P&L Billings / Revenue 225.7 (8.2) 217.4 Cost Of Sales (17.0) / (7.5% of Billings) (13.0) (0.3) (30.3) / (13.9% of Revenue) Gross Profit Co
Slide 21: Non-IFRS Adjustments in EBITDA
Non-IFRS Adjustments in EBITDA Deferred Revenue Adjustments (€m) Other non-IFRS Adjustments (€m) Q2 20 Q2 19 H1 20 H1 19 Q2 20 Q2 19 H1 20 H1 19 Billings 105.9 73.1 225.7 141.6 IFRS 2 Share-based Perpetual Def. Revenue (10.3) (0.5) (20.4) (0.9) 13.1 32.1 30.5 64.6 Compensation Release / (Addition) S
Slide 22: Deferred Revenue Development
Deferred Revenue Development Deferred Revenue Beginning and End of Period (€m) IFRS Q2 20 Q2 19 H1 20 H1 19 Perpetual Deferred Revenue (BoP) 31.4 140.9 48.9 173.4 Release 13.1 32.8 30.6 65.7 Addition 0 0.7 0.1 1.2 Perpetual Deferred Revenue (EoP) 18.3 108.8 18.3 108.8 Subscription Deferred Revenue (
Slide 23: Profit & Loss Statement
Profit & Loss Statement (unaudited) in EUR thousands Q2 2020 Q2 2019 ∆% H1 2020 H1 2019 ∆% Revenue 114,729 94,523 21% 217,446 181,236 20% Cost of sales (16,218) (11,919) 36% (30,285) (23,771) 27% Gross profit 98,511 82,603 19% 187,161 157,465 19% Other income 68 7,813 -99% 521 8,012 -93% Research an
Slide 24: Balance Sheet
Balance Sheet (unaudited) in EUR thousands 30 June 2020 31 December 2019 Non-current assets Goodwill 590,437 590,445 Intangible assets 229,318 235,831 Property, plant and equipment 28,898 26,480 Financial assets 5,402 4,424 Other assets 1,106 1,740 Deferred tax assets (0) 6,266 Total non-current ass
Slide 25: Balance Sheet (cont'd)
Balance Sheet (cont’d) (unaudited) in EUR thousands 30 June 2020 31 December 2019 Equity Issued capital 200,000 200,000 Capital reserve 340,716 320,661 (Accumulated losses)/retained earnings (387,418) (429,881) Hedge reserve (62) 0 Foreign currency translation reserve 1,048 1,081 Total equity attrib
Slide 26: Cash Flow Statement
Cash Flow Statement (unaudited) in EUR thousands Q2 2020 Q2 2019 H1 2020 H1 2019 Cash flows from operating activities Profit before taxation 48,227 30,067 69,692 69,752 Depreciation, amortisation and impairment of non-current assets 9,709 9,145 19,322 17,906 (Gain)/loss from the sale of property, pl
Slide 27: Cash Flow Statement (cont'd)
Cash Flow Statement (cont’d) (unaudited) in EUR thousands Q2 2020 Q2 2019 H1 2020 H1 2019 Cash flows from financing activities Repayments of borrowings 0 (51,175) 0 (52,461) Proceeds from bank borrowings 0 0 0 0 Payments for the capital element of lease liabilities (789) (1,353) (1,757) (2,370) Inte