Q2/H1 2022 Results Investor/Analyst Presentation

03 August 2022

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 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 value (net) of goods and services invoiced to customers within a specific period and which constitute a contract as defined by IFRS 15.

"Adjusted EBITDA" is defined as operating income (EBIT) according to IFRS, plus depreciation and amortisation of tangible and intangible assets (EBITDA), adjusted for the change in deferred revenue recognised in profit or loss in the period under review and for certain business transactions (income and expenses) defined by the Management Board in agreement with the Supervisory Board. Business transactions to be adjusted relate to share-based compensation schemes and other material special items that 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 (LTM).

The "net retention rate" (NRR LTM) is defined as recurring billings (subscription renewals, up-selling and cross-selling activities) in the previous twelve-month period that were attributable to existing subscribers (subscribers who were already subscribers in the previous twelve-month period), divided by the total recurring billings in the previous twelve-month period.

"Retained billings" are recurring billings (renewals, up-sell & cross-sell) to existing subscribers who were also subscribers in the previous twelve-month period.

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

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

Business Overview

Oliver Steil

Q2 and H1 2022 at a glance

	Q2 2022	H1 2022
Billings	€ 136m	€ 300m
(non-IFRS)	+12% +7% cc1	+12% +8% cc1
Revenue	€ 137m	€ 272m
(IFRS)	+12%	+13%
Adj. EBITDA	43%	47%
Margin (non-IFRS)	-4pp	-8pp

Financials Key developments

Double-digit billings growth in Q2 with 12%, H1 billings growth at 12% yoy
Q2 revenue up 12% yoy, H1 revenue up 13%
Q2 adj. EBITDA margin of 43% and H1 adj. EBITDA margin of 47%, above expectations
Improved SMB performance with billings up 10%, supported by resumption of monetization campaigns
Enterprise billings up 21% in spite of increasingly challenging market environment
Further optimized financing profile
Overall macroeconomic uncertainty reflected in prolonged customer decision making and softer order intake

¹At constant currencies

Strong growth in AMERICAS, particularly benefiting from FX tailwinds

New strategic partnership with Siemens Digital Industries Software

Strategic partnership with Siemens Digital Industries Software signed end of July 2022
Embedding TeamViewer Frontline's Spatial module into Siemens' Product Lifecycle Management solution
Siemens' global customers can leverage their existing investment in CAD and PLM for increased productivity, efficiency, and process quality
Enable AR content creation based on PLM information without programming knowledge

Customer spotlight: Employee qualification at DB Netz AG

Railway infrastructure manager DB NetzAG relies on TeamViewer for training employees in maintenance procedures.
MR enables the projection of technical equipment in training rooms, as well as the display of virtual information on real training equipment.
Better illustration of components, processes and possible malfunctions leads to better understanding and improved transfer between theory and real-world operations.

Customer spotlight Wendy's: AR in the food industry

Global fast food restaurant company Wendy's opts for TeamViewer's AR solutions to innovate in the food industry
Used to improve in critical areas such as food safety and quality, regulatory compliance and training, employee safety, operations performance

Financial Overview

Stefan Gaiser

Financial highlights

Top Line (in €m)			Profitability (in €m)			Free Cash Flow and Cash Conversion (in €m)
	Q2 2022	H1 2022		Q2 2022	H1 2022		Q2 2022	H1 2022
Billings (non-IFRS)	136.1 +12% +7% cc1	299.6 +12% +8% cc1	Adj. EBITDA (non-IFRS)2	58.1 +2%	141.3 -4%	Levered Free Cash Flow (FCFE)	28.2 -13%	50.1 -13%
Revenue (IFRS)	137.5 +12%	272.0 +13%	Adj. EBITDA margins (non IFRS)2	42.6% -4pp	47.2% -8pp	As % of Adj. EBITDA (non IFRS)2	49% -8pp	35% -4pp

¹At constant currencies

²Adjusted EBITDA is defined as operating income (EBIT) according to IFRS, plus depreciation and amortisation of tangible and intangible assets (EBITDA), adjusted for the change in deferred revenue recognised in profit or loss in the period under review and for certain business transactions (income and expenses) defined by the Management Board in agreement with the Supervisory Board. Business transactions to be adjusted relate to share-based compensation schemes and other material special items that are presented separately to show the underlying operating performance of the business.

12% overall growth, driven by improved SMB performance and robust Enterprise growth

H1 2020 – 2022 Billings Development (in €m)

¹TeamViewer defines Enterprise customers as customers with invoiced billings across all products and services of at least EUR 10,000 within the last 12 months. Customers which exceed or fall below this threshold are reallocated accordingly

Strong Q2 in higher tier ACV SMB buckets

Absolute SMB Billings Development by ACV Bucket (in €m, LTM)

Absolute SMB Subscriber Development by ACV Bucket (in k)

Solid SMB growth across all KPIs, supported by monetization campaigns

SMB Subscriber Churn¹ (LTM)

SMB Total ASP Development (in €)

SMB Subscriber Development (in k)

Enterprise continued to grow by number of customers and ACV size, despite tougher environment

Enterprise Billings by ACV Bucket(in €m, LTM)

Enterprise Net Retention Rate (LTM)

Q2 2021	Q3 2021	Q4 2021	Q1 2022	Q2 2022
>95%	>100%	>110%	>115%	>110%

Enterprise Total ASP Development (in €k)

Number of Enterprise Customers Development (LTM)

Increased strong Q2 adjusted EBITDA, operating leverage combined with cost containment

€m (all adjusted non-IFRS figures)	Q2 2022	Q2 2021	∆ %	H1 2022	H1 2021	∆ %
Billings	136.1	121.6	12%	299.6	268.1	12%
Cost of sales of billings %	(9.2) -6.8%	(10.0) -8.2%	-7%	(19.1) -6.4%	(20.2) -7.5%	-6%
Gross profit Margin %	126.9 93.2%	111.6 91.8%	14% 1.4 pp	280.5 93.6%	248.0 92.5%	13% 1.2 pp
Sales of % billings	(20.5) -15.0%	(17.9) -14.7%	15%	(37.6) -12.5%	(34.3) -12.8%	10%
Marketing of billings %	(29.1) -21.4%	(16.1) -13.2%	81%	(58.0) -19.4%	(27.1) -10.1%	114%
R&D of billings %	(13.4) -9.8%	(11.3) -9.3%	19%	(26.3) -8.8%	(20.3) -7.6%	29%
G&A of billings %	(5.4) -4.0%	(7.6) -6.3%	-29%	(12.5) -4.2%	(14.2) -5.3%	-12%
Other1 of % billings	(0.5) -0.3%	(1.7) -1.4%	-72%	(4.8) -1.6%	(5.1) -1.9%	-5%
Total OpEx of billings %	(68.9) -50.6%	(54.6) -44.9%	26%	(139.2) -46.5%	(101.0) -37.7%	38%
Adj. EBITDA	58.1	57.0	2%	141.3	147.0	-4%
Margin %	42 6%	46 9%	-4 pp	47 2%	54 8%	-8 pp

¹Incl. other income/expenses and bad debt expenses of €1.1m in Q2 2022 and € 3.5m in Q2 2021 / €5.6m in H1 2022 and € 8m in H1 2021

Q2 adjusted EBITDA growth yoy despite full effect of sports partnerships (immaterial in Q2 2021)
Q2 and H1 adjusted EBITDA margins above expectations

High free cash flow and cash conversion

€m	Q2 2022	Q2 2021	∆ %	H1 2022	H1 2021	∆ %
Pre-Tax net cash from operating activities (IFRS)	48.2	59.0	-18%	87.8	105.6	-17%
Income tax paid	(11.6)	(17.0)	-32%	(22.0)	(29.5)	-26%
Capital expenditure (excl. M&A)	(2.4)	(4.5)	-48%	(3.7)	(8.4)	-56%
Lease repayments	(2.6)	(2.5)	5%	(4.1)	(3.6)	12%
Interest paid for borrowings and lease liabilities	(3.4)	(2.8)	24%	(8.0)	(6.7)	18%
Levered Free Cash Flow (FCFE)	28.2	32.2	-13%	50.1	57.3	-13%

as % of adj. EBITDA	49%	57%	35%	39%
as % of EBITDA	60%	77%	57%	69%

TeamViewer continues to operate with very little investment requirements, thus CapEx further decreased
Levered Free Cash Flow decreased due to planned advance payments for the marketing partnerships in the first half of the year (full ManU payment for 2022 in H1; in 2021 just half-season payment in H1)
Lower tax payments in Q2 2022 reflecting larger expenses for marketing partnerships

Liquidity position, leverage and update on SBB

m€

Refinancing of € 477m term loans with:

€180m paid in cash to further reduce cash interest costs
an extension of RCF by € 300m to € 450m of which € 150m are drawn
a new € 150m term loan at improved terms

²Mainly consists of the capital element of lease liabilities and FX effect on cash positions

³Adjusted EBITDA (LTM): €251.3m

New revolving debt facility with reduced higher interest-bearing debt, extended maturity profile and maintained full flexibility

Maturity profile before refinancing (in m€)

Maturity profile after refinancing (in m€)

Optimized financing profile due to reduced cash position, improved commercial terms and an extended RCF

Flattened and extended maturity profile for the next 5 years

Single euro refinancing led to reduced FX volatility and an improved interest rate profile

Sufficient financial flexibility for any future investments

Sustainability linked financing through ESGcomponent

Financial profile further improved

Optimized financing structure based on strong financial performance:

Significantly reduced interest charges whilst also retaining full fire power and extending debt maturity profile

3 million of bought-back shares to be used as RSU, fully covering the requirements for the next two to three years

2022 Guidance

	2022 guidance	Mid-term outlook
Billings (non-IFRS)	~ € 630m	High teens percentage growth YoY

Revenue (IFRS)	€ 565m – € 580m	Mid teens percentage growth YoY

Adj. EBITDA Margin (non-IFRS, as % of Billings)	45% – 47%	Further margin improvement

Given the impact of pulling out of Russia and Belarus (accounting for approximately one percent of billings) as well as the operating environment experienced year-to-date, TeamViewer expects billings for the full year of 2022 to be at or around the bottom end of its guidance
For the longer term, TeamViewer does not intend to extend the sponsorship agreement with Manchester United beyond its term. While the partnership and its brand-building effect has been positive over the past year, TeamViewer has decided to reassess its long-term marketing strategy in light of the current macro environment.
TeamViewer is committed to maintain its attractive financial profile and, after having successfully implemented short-term measures to improve the bottom line, the company is now increasingly focusing on medium-term measures to ensure and increase its high profitability. TeamViewer expects that the combined effect of these measures will result in a significant improvement in the company's margin following the end of the current sponsorship agreement.

Thank you for your attention

Appendix

Enterprise and SMB KPI overview

	Q2'20	Q3'20	Q4'20	Q1'21	Q2'21	Q3'21	Q4'21	Q1'22	Q2'22
Enterprise
Billings p.q. in €m	13.6	7.7	14.2	23.2	22.2	18.1	29.4	35.2	26.9
Billings LTM in €m	40.7	44.5	53.0	58.7	67.4	77.8	93.0	104.9	109.5
Number of subscribers	1,457	1,658	1,885	2,058	2,252	2,419	2,712	2,873	3,062
ASP (LTM) in €	27,943	26,851	28,139	28,540	29,938	32,162	34,279	36,519	35,775
SMB
Billings p.q. in €m	92.4	98.7	113.9	123.3	99.3	107.6	124.4	128.3	109.3
Billings LTM in €m	368.3	388.3	407.2	428.4	435.3	444.2	454.6	459.6	469.5
Number of subscribers	532,906	565,125	582,593	600,555	620,445	625,744	624,152	616,840	623,174
ASP (LTM) in €	691	687	699	713	702	710	728	745	753
Total
Billings p.q. in €m	105.9	106.4	128.1	146.6	121.6	125.8	153.7	163.5	136.1
Billings LTM in €m	409.0	432.8	460.3	487.1	502.7	522.0	547.6	564.5	579.1
Number of subscribers	534,363	566,783	584,478	602,613	622,697	628,163	626,864	619,713	626,236

Q2 2022 reconciliation from management key metrics to IFRS - QTD

	Management view	Change in		Other non-IFRS	Accounting view
€m	adjusted P&L1	deferred revenue2	D&A	adjustments	IFRS P&L
Billings / Revenue	136.1	1.3			137.5
Cost of sales	(9.2)		(8.4)	0.1	(17.5)
Gross profit contribution	126.9				120.0
of Billings % / Revenue	93.2%				87.3%
Sales	(20.5)		(1.9)	(3.0)	(25.4)
Marketing	(29.1)		(0.4)	(1.9)	(31.4)
R&D	(13.4)		(2.1)	(2.8)	(18.3)
G&A	(5.4)		(0.6)	(7.4)	(13.5)
Other3	(0.5)		0.0	2.7	2.3
Adj. EBITDA	58.1
of Billings % / Revenue	42.6%
D&A (ordinary only)4	(5.9)
Adj. EBIT / Operating profit (EBIT)	52.1	1.3	(7.5)⁵	(12.3)	33.8
of Billings % / Revenue	38.3%				24.6%
D&A (total)4+5					13.4
EBITDA					47.1
of Billings % / Revenue					34.3%

¹Margins and percentages of billings adjusted and IFRS revenue

²Included change in undue billings

³Incl. other income/expenses and bad debt expenses of € 1.14 m

⁴D&A excl. amortization intangible assets from PPA

5Amortization intangible assets from PPA

H1 2022 reconciliation from management key metrics to IFRS - YTD

	Management view	Change in		Other non-IFRS	Accounting view
€m	adjusted P&L1	deferred revenue2	D&A	adjustments	IFRS P&L
Billings / Revenue	299.6	(27.6)			272.0
Cost of sales	(19.1)		(16.7)	0.1	(35.7)
Gross profit contribution	280.5				236.3
of Billings % / Revenue	93.6%				86.9%
Sales	(37.6)		(3.7)	(6.9)	(48.3)
Marketing	(58.0)		(0.8)	(4.4)	(63.2)
R&D	(26.3)		(3.9)	(4.8)	(35.0)
G&A	(12.5)		(1.3)	(12.3)	(26.2)
Other3	(4.8)		0.0	3.1	(1.7)
Adj. EBITDA	141.3
of Billings % / Revenue	47.2%
D&A (ordinary only)4	(11.6)
Adj. EBIT / Operating profit (EBIT)	129.7	(27.6)	(14.9)⁵	(25.3)	61.9
of Billings % / Revenue	43.3%				22.7%
D&A (total)4+5					26.5
EBITDA					88.4
of Billings % / Revenue					32.5%