Slide 1: Q1 2020 Investor Presentation
Anyone. Anything. Anywhere. Anytime. Q1 2020 Investor Presentation 12 May 2020
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 CEO Oliver Steil 3
Slide 4: In The Middle Of Accelerated Global Megatrends
In The Middle Of Accelerated Global Megatrends Long-Term Growth Trends Unique Positioning Exceptional Growth Accelerated by COVID-19 & Business Model & High Profitability • Underinvestment in digitization comes to light • Platform serving all verticals and customer segments • Q1 billings: €119.7m •
Slide 5: Extra Demand In March Drove Billings And Adjusted EBITDA Growth
Extra Demand In March Drove Billings And Adjusted EBITDA Growth Billings (€m) Adjusted EBITDA (€m) & Adjusted EBITDA Margin 119.7 73.9 +75% +96% 68.6 37.7 62% 55% Q1 2019 Q1 2020 Q1 2019 Q1 2020 5
Slide 6: Step Change in Enterprise Business
Step Change in Enterprise Business Customers With Annual Contract Value Above €10k LTM (1) Top 50 Deals Accumulated Contract Value LTM (€m) (1) +153% +142% +69% +63% 1,347 1,183 5.9 5.5 4.2 698 714 3.4 468 518 590 2.7 2.8 2.3 31. Mar 19 30. Jun 19 30. Sep 19 31. Dec 19 31. Jan 20 31. Mar 20 30. Apr
Slide 7: Selected Key Deals Across Regions And Verticals
Selected Key Deals Across Regions And Verticals Sector Country ACV Licence Use Case Food Retail Germany >€200k Tensor, RMM, Pilot POS & IT support, presentation of stores IT Services France >€200k Tensor Customer & internal IT support Public Sector Italy >€200k Tensor, RA Remote work & support Softw
Slide 8: Uninterrupted Execution Of Growth Initiatives
Uninterrupted Execution Of Growth Initiatives • Deeper and broader enterprise penetration • Global hiring continuing as • Channel 2.0 program enhancing reseller planned(2) business • US Enterprise Sales team • Expansion of global partnerships & significantly ramped to 28 FTEs(3) integrations (1) • C
Slide 9: Engaging With All Our Stakeholders In Uncertain Times
Engaging With All Our Stakeholders In Uncertain Times Boosting Router Lenient Unpredictable Capacity Claims No Re- >2.25bn Corona Crisis Protecting Manage- Financing install- Duration & Employees ment Needs ations Impact Top & Business Priority Partners Free 2.4x Net blizz For Suspending Further Com
Slide 10: Financial Review
Financial Review CFO Stefan Gaiser 10
Slide 11: Subscriber And New Billings Growth Driven By Extra Demand In Q1
Subscriber And New Billings Growth Driven By Extra Demand In Q1 Subscribers (thousands) – LTM March 2020 Billings (€m) 514 119.7 0.2 +62% +75% 197 42.2 317 68.6 3.5 29 0.7 154 21.2 7.5 289 73.8 63 39.2 100 31. Mar 19 31. Mar 20 Q1 2019 Q1 2020 New Migrated Retained Perpetual New Migration Renewal 11
Slide 12: Extraordinary Billings Growth In All Regions and 106% NRR
Extraordinary Billings Growth In All Regions and 106% NRR… Billings By Region (€m) Net Retention Rate (LTM) 119.7 +75% 12.8 APAC +62% 106% 106% 38.1 105% 68.6 7.9 AMERICAS 104% +82% 103% 20.9 103% 102% 68.8 102% EMEA 39.7 +73% 101% 100% Q1 2019 Q1 2020 30. Sep 19 31. Dec 19 31. Mar 20 • EMEA and AME
Slide 13: Resulting in €74m Adj. EBITDA (62% Adj. EBITDA Margin)
…Resulting in €74m Adj. EBITDA (62% Adj. EBITDA Margin)… Adjusted EBITDA (€m) Q1 2020 Q1 2019 YoY% Billings 119.7 68.6 75% Cost of Sales (7.8) (5.5) 43% • Dealt very well with increased load on infrastructure during times of % of Billings peak usage, reflecting the quality of the platform 6.5% 8.0%
Slide 14: Of Which 98% Was Converted Into Recurring Pre-Tax Free Cash Flow
…Of Which 98% Was Converted Into Recurring Pre-Tax Free Cash Flow Adjusted Pre-Tax FCF (€m) Q1 2020 Q1 2019 Adj. EBITDA 73.9 37.7 • Continued high quality of earnings with high cash conversion Changes in Other Net Working Capital 3.7 (0.6) • Capital expenditure mainly related to ERP roll out and HQ
Slide 15: Cash Position Significantly Increased And Deleveraging Ahead Of Plan
Cash Position Significantly Increased And Deleveraging Ahead Of Plan Net Financial Debt (€m) and Net Leverage(1) • Q1 €623.1m financial debt comprises €603.0m term loan facilities and €20.1m IFRS 16 lease liabilities 3.7x Net Leverage Net Financial Debt • Deleveraging ahead of plan with net leverage
Slide 16: Raising Full Year Guidance On Back Of Strong Q1
Raising Full Year Guidance On Back Of Strong Q1 – Reduced Visibility Into Remainder Of 2020 FY 2020 Outlook Old New • Strategic positioning resulted in very strong Q1 performance Billings €430 – 440m ~ €450m • April continued to be strong - albeit the COVID-19 driven demand softened later in the mon
Slide 17: Q&A
Q&A 17
Slide 18: Appendix
Appendix 18
Slide 19: Q1 2020 Reconciliation From Management Key Metrics To IFRS
Q1 2020 Reconciliation From Management Key Metrics To IFRS Q1 2020 (€m) Management View Deferred Other non-IFRS Accounting View D&A Adjusted P&L Revenue Adjustments IFRS P&L Billings / Revenue 119.7 (17.0) 102.7 Cost Of Sales (7.8) / (6.5% of Billings) (6.1) (0.1) (14.1) / (13.7% of Revenue) Gross P
Slide 20: Non-IFRS Adjustments in EBITDA
Non-IFRS Adjustments in EBITDA Deferred Revenue Adjustments (€m) Other non-IFRS Adjustments (€m) Q1 2020 Q1 2019 Q1 2020 Q1 2019 Billings 119.7 68.6 IFRS 2 Share-based Compensation (10.1) (0.5) Perpetual Deferred Revenue 17.4 32.5 Release / (Addition) Subscription Def. Revenue Reorganization Expense
Slide 21: Deferred Revenue Development
Deferred Revenue Development Deferred Revenue Beginning and End of Period (€m) IFRS Q1 2020 Q1 2019 Perpetual Deferred Revenue (BoP) 48.9 173.4 Release 17.5 32.9 Addition 0.1 0.5 Perpetual Deferred Revenue (EoP) 31.4 140.9 Subscription Deferred Revenue (BoP) 164.0 107.2 Release 98.1 54.3 Addition 11
Slide 22: Covid-19 Driven Demand Led To Higher Than Usual Billings
Covid-19 Driven Demand Led To Higher Than Usual Billings During The 14 Days Prior To Quarter End Trade Receivables & Undue Billings (€m) 31 Mar 20 31 Dec 19 ∆ • Trade receivables are fully recognized when the payment is due after 14 days (IFRS 15) Trade Receivables 7.0 11.8 (4.8) • Due to the high p
Slide 23: Profit & Loss Statement
Profit & Loss Statement (unaudited) in thousands of euro Q1 2020 Q1 2019 Revenue 102,717 86,714 Cost of sales (14,067) (11,852) Gross profit 88,650 74,861 Other income 453 199 Research and development (9,473) (7,617) Sales (15,705) (9,259) Marketing (8,691) (5,253) General and administrative (12,829
Slide 24: Balance Sheet
Balance Sheet (unaudited) in thousands of euro 31 March 2020 31 December 2019 Non-current assets Goodwill 590,440 590,445 Intangible assets 230,809 235,831 Property, plant and equipment 26,999 26,480 Financial assets 5,802 4,424 Other assets 813 1,740 Deferred tax assets 5,248 6,266 Total non-curren
Slide 25: Balance Sheet (cont’d)
Balance Sheet (cont’d) (unaudited) in thousands of euro 31 March 2020 31 December 2019 Equity Issued capital 200,000 200,000 Capital reserve 330,688 320,661 (Accumulated losses)/retained earnings (417,756) (429,881) Hedge reserve (67) 0 Foreign currency translation reserve 1,074 1,081 Total equity a
Slide 26: Cash Flow Statement
Cash Flow Statement (unaudited) in thousands of euro Q1 2020 Q1 2019 Cash flows from operating activities Profit before taxation 21,465 39,685 Depreciation, amortisation and impairment of non-current assets 9,613 8,761 (Gain)/loss from the sale of property, plant and equipment 3 0 Increase/(decrease
Slide 27: Cash Flow Statement (cont’d)
Cash Flow Statement (cont’d) (unaudited) in thousands of euro Q1 2020 Q1 2019 Cash flows from financing activities Repayments of borrowings 0 (1,286) Payments for the capital element of lease liabilities (967) (1,017) Interest paid for borrowings and lease liabilities (13,349) (13,197) Net cash used