Slide 1: Cimpress N.V. Q2 Fiscal Year 2015 Earnings Presentation
CIMPRESS N.V. Q2 Fiscal Year 2015 Earnings presentation, commentary & financial results supplement January 28, 2015 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation and the accompanying notes contain statements about our future expectations, plans and prospects of our business that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995,
Slide 3: Presentation Organization & Call Details
Presentation Organization & Call Details 3 • Q2 FY2015 Overview • Q2 FY2015 Operating and financial results • Looking Ahead • Supplementary information • Reconciliation of GAAP to non-GAAP Results Live Q&A Session: TOMORROW MORNING January 29, 2015, 7:30 a.m. ET Link from ir.cimpress.com Hosted by:
Slide 4: Q2 FY2015 Overview
Q2 FY2015 Overview <> clmpress
Slide 5: Q2 FY2015 Overview
Q2 FY2015 Overview • Year-over-year revenue growth of 19% - Vistaprint growth rate improved QoQ and in line with our expectations - Recent acquisitions performing well • Strong GAAP profitability helped by non-operational or timing related items • GAAP and Non-GAAP EPS up 60% and 41% YoY, respective
Slide 6: Vistaprint Business Unit
Vistaprint Business Unit • Continued to move value proposition toward needs of customers with higher expectations - Improved trends in markets in which we have made major marketing changes - Traction in customer metrics, including gross profit per customer • Exposed new customers to our value propos
Slide 7: Other Business Units
• Most of World: - Japan JV continues to build foundations - Continued growth in India while also laying foundations - Began to consolidate Brazil (Printi) • Smaller EU Brands: - Strong performance in Q2 - Further adjustments to Pixartprinting and Printdeal earn out reflecting positive momentum - Se
Slide 8: Manufacturing & Technology
Manufacturing & Technology 8 • Strong operational execution during seasonal peak • Talent and software technology investments in support of vision for a common mass customization platform • Ramp of beta production for soft goods and apparel • Continued optimization of Printdeal manufacturing in our
Slide 9: Q2 FY2015 Financial & Operating Metrics
Q2 FY2015 Financial & Operating Metrics
Slide 10: Q2 FY2015: Key Financial Metrics
GAAP Net Income (Loss) Non-GAAP Net Income 30% 20% 10% 0% -10% Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 $348 $288 $280 $275 $371 $286 $338 $334 $440 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 $0.66 $0.17 $0.07 $0.01 $1.18 $0.04 $0.03 $0.71
Slide 11: Cash Flow and ROIC Highlights
Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 7% 7% 7% 6% 5% 5% 6% 5% 5% Cash Flow and ROIC Highlights 11 TTM Free Cash FlowTTM Cash Flow from Operations TTM Capital Expenditures TTM Return on Invested Capital In USD millions except percentages. Please see reconciliation of
Slide 12: Geographic Region Revenue
Geographic Region Revenue Quarterly (millions) 12 North America: 47% of total revenue 9% y/y growth 10% y/y constant currency growth Europe: 47% of total revenue 30% y/y growth 41% y/y constant currency growth 4% y/y constant currency growth ex. acquisitions from past year Other: 6% of total revenue
Slide 13: Operational Metrics: Orders and Average Order Value
Operational Metrics 13 Excludes Printi, Printdeal, Pixartprinting and FotoKnudsen Vistaprint, Albumprinter and Webs Orders (M) Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 8.3 7.6 7.1 9.8 7.8 7.1 7.1 9.1 7.3 7.0 6.8 8.8 Average Order Value Q3 FY12 Q
Slide 14: Operational Metrics: New Customers, COCA, Advertising
Operational Metrics 14 Excludes Printi, Printdeal, Pixartprinting and FotoKnudsen Vistaprint, Albumprinter and Webs New Customers (millions) 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 2.6 2.3 2.3 3.3 2.6
Slide 15: TTM Unique Customers
TTM* Unique Customers (M) Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 10.5 10.5 10.4 10.0 9.8 9.7 9.6 9.4 6.4 6.5 6.7 6.9 7.0 7.0 7.1 7.2 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 TTM Unique Customers (M) 16.9 17.0 17.1 16.9 16.8 16.7 16.7 16.6 TTM New Custo
Slide 16: Historical Revenue Driver Metrics: Bookings per Customer
Total Repeat New Average TTM* Bookings Per Unique Customer (USD) Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Average Customer Bookings: $68 $69 $70 $72 $73 $74 $75 $76 $96 $97 $98 $100 $101 $102 $103 $103 $50 $51 $52 $53 $53 $54 $55 $56 Historical Revenue Driver Metrics 16 Exclud
Slide 17: Looking Ahead
Looking Ahead <> clmpress
Slide 18: FY 2015 Outlook & Expectations
FY 2015 Outlook & Expectations • Changes to revenue outlook: - Reduced range by roughly $30 million to reflect currency movements since October - Operational outlook essentially unchanged - Narrowed guidance range • Changes to EPS outlook lower GAAP EPS range and increase non-GAAP EPS range: - Estim
Slide 19: FY 2015 Outlook & Expectations (cont.)
FY 2015 Outlook & Expectations (cont.) • Guidance does not include: - Potential for further changes in fair value estimate of acquisition- related earn-outs - Potential for increased interest expense resulting from further financing activity 19
Slide 20: Revenue and EPS Guidance
Revenue and EPS Guidance* The Company is providing the following assumptions to facilitate non-GAAP adjusted net income per diluted share comparisons that exclude share- based compensation related expenses, amortization of acquired intangible assets, tax charges related to the alignment of IP with o
Slide 21: Capital Expenditures Guidance
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15-High FY 14-Low 14% 6% 6% 3% 2% 2% 2% 3% 3% 2% 8% 7% 7% 9% 2% 2% 3% 1% 2% 2% 3% 3% 2% 3% 1% 1% 2% 2% 2% 2% Capital Expenditures Guidance 21 As of January 28, 2015 (expressed as percent of revenue) FY 2015 Guidance: • $85M - $95M • ~6-7% of revenue
Slide 22: Summary
Summary • Clear priorities • Leadership: mass customization leader • Long termism: multi-decade mutual success for stakeholders • Intrinsic value: maximizing DCF per share • Solid first half of 2015 • Operational execution in the important seasonal peak • Initial investments in technology for common
Slide 23: Q&A Session
Q&A Session Please go to ir.cimpress.com for the live Q&A call at 7:30 am EDT on January 29, 2015
Slide 24: Q2 Fiscal Year 2015 Financial and Operating Results Supplement
Q2 Fiscal Year 2015 Financial and Operating Results Supplement
Slide 25: Revenue Growth Rates
22% constant-currency growth Revenue Growth Rates* Constant-Currency Reported Constant-Currency Excl. TTM Acquisitions and Joint Ventures Reported Excl. TTM Acquisitions and Joint Ventures 30% 25% 20% 15% 10% 5% 0% -5% Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q
Slide 26: Constant Currency Geographic Region Revenue Growth Rates
Other 50% 40% 30% 20% 10% 0% -10% Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 14 Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15 40% 33% 29% 24.0% 10.0% 8.0% 2.0% 6.0% 10.0% 8.0% 13.0% 27.0% Europe 50% 40% 30% 20% 10% 0% -10% Q3 FY 12 Q4 FY 12 Q1 FY 13 Q2 FY 13 Q3 FY 13 Q4 FY 13 Q1 FY 1
Slide 27: Gross Margin and Gross Profit
Gross Profit (millions) GM % Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 $169 $162 $163 $234 $189 $181 $179 $250 $185 $205 $204 $283 65.5% 64.6% 65.0% 67.2% 65.5% 64.6% 65.2% 67.4% 64.7% 60.5% 61.0% 64.4% Gross Margin and Gross Profit 27 FY12 65.2%
Slide 28: GAAP Net Income (Loss) and Net Margin
GAAP Adjusted Net Income (millions) GAAP Adjusted Net Margin Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 $— $4 $(2) $23 $6 $2 $— $41 $1 $1 $24 $64 1.5% (0.7)% 6.6% 2.0% 0.8% 0.1% 11.0% 0.5% 0.3% 7.1% 14.5% GAAP Net Income (Loss) and Net Margin 28 F
Slide 29: Non-GAAP Adjusted Net Income & Net Margin
Non-GAAP Adjusted Net Income (millions) Non-GAAP Adjusted Net Margin Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 $11 $15 $9 $36 $17 $14 $16 $53 $8 $26 $29 $72 4.4% 5.9% 3.6% 10.3% 5.9% 5.0% 5.9% 14.2% 2.9% 7.6% 8.6% 16.4% Non-GAAP Adjusted Net Inco
Slide 30: Q2 Income Statement Comparison to Prior Year
Q2 Income Statement 30 Comparison to Prior Year, as a percentage of revenue Consolidated Q2 FY15 Q2 FY14 13.6% 14.2% 8.6% 8.2% 10.6% 11.5% 31.6% 33.5% 35.6% 32.6%
Slide 31: Q2 Income Statement Comparison to Prior Quarter
Q2 Income Statement 31 Comparison to Prior Quarter, as a percentage of revenue Consolidated Q2 FY15 Q1 FY15 13.6% 5.1% 8.6% 9.3% 10.6% 13.1% 31.6% 33.5% 35.6% 39.0%
Slide 32: Share-Based Compensation
Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 $7.6 $8.6 $8.4 $8.5 $8.4 $8.3 $8.6 $8.1 $5.8 $6.1 $5.8 $5.4 Share-Based Compensation* (millions) 32 * Share-based compensation (SBC) expense includes SBC-related tax adjustment. The period from Q3 FY12 to
Slide 33: Balance Sheet Highlights
Balance Sheet Highlights Balance Sheet highlights, in millions, at period end 12/31/2014 9/30/2014 6/30/2014 3/31/2014 12/31/2013 Total assets $ 1,026.5 $ 984.1 $ 989.0 $ 672.0 $ 674.6 Cash and cash equivalents $ 77.9 $ 60.9 $ 62.5 $ 46.5 $ 62.3 Total current assets $ 179.1 $ 144.3 $ 157.9 $ 126.0 $
Slide 34: Committed Credit Capacity
Committed Credit Capacity as of December 31, 2014 Availability under our committed credit facility (millions)* 12/31/2014 Aggregate loan commitments $ 848.0 Outstanding borrowings $ (342.5) Remaining amount $ 505.5 Limitations to borrowing due to debt covenants and other obligations* $ (106.4) Amoun
Slide 35: Q2 FY15 Capital Expenditure Breakdown
Land/Facilities¹ Mfg & Automation Equipment² Other³ Q2 CapEx: $18.3M 35 1 Land, building and construction, leasehold improvements, and furniture and fixtures 2 Including printing presses and related equipment, finishing equipment, and automation. 3 IT infrastructure, software and office equipment Co
Slide 36: Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 37: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures • To supplement Cimpress' consolidated financial statements presented in accordance with U.S. generally accepted accounting principles, or GAAP, Cimpress has used the following measures defined as non-GAAP financial measures by Securities and Exchange Commission, or
Slide 38: Non-GAAP Financial Measures Definitions
Non-GAAP Financial Measures Definitions Non-GAAP Measure Definition Non-GAAP Net Income/EPS The items excluded from the non-GAAP adjusted net income measurements are share-based compensation expense and its related tax effect, amortization of acquisition-related intangibles, tax charges related to t
Slide 39: Reconciliation: GAAP to Non-GAAP Results Net Income (Loss)
Reconciliation: GAAP to Non-GAAP Results Net Income (Loss) . Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GAAP Net Income $274 $3,851 $(1,696) $22,960 $5,866 $2,305 $412 $40,875 $1,375 $1,034 $23,694 $63,609 Share-based compensation and rela
Slide 40: Reconciliation: GAAP to Non-GAAP EPS
Fiscal Year 2012 Fiscal Year 2013 Fiscal Year 2014 Fiscal Year 2015 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 GAAP Net Income per share $0.01 $0.10 $(0.05) $0.66 $0.17 $0.07 $0.01 $1.18 $0.04 $0.03 $0.71 $1.89 Share-based Compensation and related tax effect per share $0.20 $0.23 $0.24 $0.24 $0.24 $0.24 $0
Slide 41: Reconciliation: Free Cash Flow
Reconciliation: Free Cash Flow 41 Q2 FY14 Q2 FY15 Net cash (used in) provided by operating activities $95,027 $138,224 Purchases of property, plant and equipment $(24,592) $(18,268) Purchases of intangible assets not related to acquisitions $(44) $(60) Capitalization of software and website developm
Slide 42: Reconciliation: TTM Free Cash Flow
Reconciliation: TTM Free Cash Flow TTM Q2 FY13 TTM Q3 FY13 TTM Q4 FY13 TTM Q1 FY14 TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 TTM Q2 FY15 Net cash provided by operating activities $ 124,144 $ 122,659 $ 140,012 $ 133,239 $ 139,733 $ 134,740 $ 148,580 $ 201,323 $ 244,520 Purchase of property, pla
Slide 43: Reconciliation: TTM ROIC
Reconciliation: TTM ROIC 43 TTM Q2 FY13 TTM Q3 FY13 TTM Q4 FY13 TTM Q1 FY14 TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 TTM Q2 FY15 Operating Income $46,161 $48,110 $46,124 $54,299 $73,780 $69,286 $85,914 $94,385 $101,751 Tax Provision $15,196 $11,989 $9,387 $10,068 $7,884 $6,619 $10,590 $12,007
Slide 44: Reconciliation: Average Invested Capital
Reconciliation: Average Invested Capital 44 Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Total Debt $ 126,500 $ 229,000 $ 259,314 $ 230,500 $ 238,500 $ 238,750 $ 270,000 $ 204,500 $ 201,953 $ 448,059 $ 447,870 $ 346,949 Redeemable Non- Controlling I
Slide 45: Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates (Europe, Other)
EUROPE Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Reported revenue growth 29% 18% 12% 11% 8% 3% 6% 1% (4)% 50% 46% 30% Currency impact 5% 12% 11% 3.0% —% (1)% (4)% (3)% (3)% (7)% (1)% 11% Revenue growth in constant currency 34% 30% 23% 14% 8% 2% 2
Slide 46: Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates (Total, North America)
TOTAL COMPANY Q3 FY12 Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Reported revenue growth 26% 20% 18% 16% 12% 12% 9% 6% (1)% 21% 21% 19% Currency impact 2% 5% 5% 1% 0% 0% 0% 0% 0% (2)% 0% 4% Revenue growth in constant currency 28% 25% 23% 17% 12% 12% 9% 6%