TeamViewer AG — Earnings Release 2021

Oct 6, 2021

Preliminary Q3 2021 Results

6 October 2021

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 informational purposes only and should not be relied on for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose.

All stated figures are preliminary and unaudited.

Certain statements in this presentation may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in TeamViewer's disclosures. You should not rely on these forward-looking statements as predictions of future events, and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels.

The Company undertakes no obligation, and does not expect to publicly update, or publicly revise, any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to it or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Presentation.

This document contains certain alternative performance measures (collectively, "APMs") including billings and Adjusted EBITDA that are not required by, or presented in accordance with, IFRS, German GAAP or any other generally accepted accounting principles. TeamViewer presents APMs because they are used by management in monitoring, evaluating and managing its business and management believes these measures provide an enhanced understanding of TeamViewer's underlying results and related trends. The definitions of the APMs may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of TeamViewer's operating results as reported under IFRS or German GAAP. APMs such as billings and Adjusted EBITDA are not measurements of TeamViewer's performance or liquidity under IFRS or German GAAP and should not be considered as alternatives to results for the period or any other performance measures derived in accordance with IFRS, German GAAP or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities.

TeamViewer has defined each of the following APMs as follows:

"Billings" represent the (net) value of invoiced goods and services charged to customers within a period and constitute a contract as defined by IFRS 15.

"Adjusted EBITDA" is defined as operating income (EBIT) as per IFRS plus depreciation and amortisation of tangible and intangible fixed assets (EBITDA), adjusted for change in deferred revenue recognised in profit or loss during the period under consideration and for certain transactions that have been defined by the Management Board in agreement with the Supervisory Board (income and expenses). Business events to be adjusted relate to share-based compensation models and other material special items of the business which are presented separately to show the underlying operating performance of the business.

"Adjusted EBITDA margin" means Adjusted EBITDA as a percentage of billings.

This document also includes further certain operational metrics, such as Net Retention Rate, and additional financial measures that are not required by, or presented in accordance with IFRS, German GAAP or any other generally accepted accounting principles (collectively, "other financial measures"). TeamViewer presents these operational metrics and other financial measures for information purposes and because they are used by the management for monitoring, evaluating and managing its business. The definitions of these operational metrics and other financial metrics may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of TeamViewer's operating results, performance or liquidity as reported under IFRS or German GAAP.

TeamViewer has defined these operational metrics and other financial measures for information purposes as follows:

"Levered free cash flow" (FCFE) means net cash from operating activities less capital expenditure for property, plant and equipment and intangible assets (excl. M&A), payments for the capital element of lease liabilities and interest paid for borrowings and lease liabilities.

"Net leverage ratio" means the ratio of net financial liabilities (sum of interest-bearing loans and borrowings, current and non-current, less cash and cash equivalents) to Adjusted EBITDA.

"Net retention rate" or "NRR" is calculated as annual recurring billings (subscription renewal, up-selling and cross-selling activities) over the last twelve months attributable to retained subscribers (subscribers who were subscribers in the previous twelvemonth period) divided by the total recurring billings from the previous twelve-month period. (Note: TeamViewer amended the NRR definition with the beginning of FY 2021 to facilitate a direct derivation from reported annual recuring billings.) "Retained Billings" means annual recurring billings (renewals, up- and cross sell) attributable to retained subscribers who were subscribers in the previous twelve-month period.

"New Billings" means annual recurring billings attributable to new subscribers.

"Non-recurring Billings" means all billings that do not recur annually such as professional services and hardware reselling.

Q3 2021 at a glance

Financials at a glance

	9M 2021	Q3 2021
Billings	€ 394m	€ 126m
(non-IFRS)	+19% +21% cc1	+18% +18% cc1
Adj. EBITDA	48%	34%
Margin (non-IFRS)	-9pp	-21pp

Q3 2021 with many improving metrics but growth much slower than anticipated

• Q3 2021 billings growth up compared to previous quarter (Q2 2021: +15%/+18% cc¹ )
• Improving subscriber churn² (14.6% LTM vs. 15.5% LTM in Q2 2021)
• Q3 2021 recovery of NRR to nearly 100% after 88% in Q2 2021 LTM now at 96% / 99% cc³
• 11% subscriber growth³ to 628,000 subscribers at quarter-end
• Solid enterprise growth (LTM growth ~60%) but slower than expected, closed largest Augmented Reality deal ever, >€700k
• Billings miss resulted in lower adjusted EBITDA in combination with ramp up of cost base

¹At constant currencies

²[Retained subscribers (LTM) divided by total subscribers (LTM-12)]-1 ³30 September 2021, LTM

Billings by regions Americas and EMEA with solid performance, APAC lagging expectations

Underestimated headwinds have significantly impacted our business drivers

Adjusted guidance New guidance for 2021 and ambition for future years

	New		Old
	Outlook 2021	2022 and beyond	Outlook 2021	2023 Objective	Long-term ambition
Billings (non-IFRS)	€555m1 €535m –	High teens percentage growth YoY	605m1 €585 – (lower end)	≥ €1,000m	Grow ≥ 25% p.a. after 2023
Revenue (IFRS)	€505m1 €495m –	Mid teens percentage growth YoY	540m1 €525 – (lower end)
Adj. EBITDA Margin (non-IFRS, as % of Billings)	44% – 46%	Margin recovery	49% – 51%	Around 50% until 2023	Margin expansion potential from 2024 due to scale effects

¹Assumes USD/EUR exchange rate of 1.20 and broadly stable other currencies

Pillars of future value creation