Slide 1: Q4 & Fiscal Year 2016 Earnings Presentation
CIMPRESS N.V. Q4 & Fiscal Year 2016 Earnings presentation, commentary & financial results supplement July 27, 2016 1
Slide 2: Safe Harbor Statement
2 Safe Harbor Statement 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
3 Presentation Organization & Call Details • Q4 FY2016 Overview • Q4 FY2016 Operating and financial results • Looking ahead • Supplementary information • Reconciliation of GAAP to non-GAAP results Live Q&A Session: THURSDAY MORNING July 28, 2016, 7:30 a.m. EDT Link from ir.cimpress.com Hosted by: Ro
Slide 4: Our Objectives
Our Objectives Strategic To be the world leader in mass customization • Producing, with the reliability, quality and affordability of mass production, small individual orders where each and every one embodies the personal relevance inherent to customized physical products Financial To maximize intri
Slide 5: Post-IPO Revenue and Net Income
5 Post-IPO Revenue and Net Income Revenue FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 $152 $256 $401 $516 $670 $817 $1,020 $1,167 $1,270 $1,494 $1,788 Net Income FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 $19 $27 $40 $56 $68 $82 $44 $29 $44 $92 $54 In USD millions.
Slide 6: Post-IPO Free Cash Flow & Share Count
6 Post-IPO Free Cash Flow & Share Count Operating Cash Flow (USD, millions) Free Cash Flow (USD, millions) Operating & Free Cash Flow(1) FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 $35 $54 $89 $130 $160 $165 $147 $142 $154 $242 $247 $7 ($13) $19 $46 $52 $121 $95 $54 $72 $157 $152 Shares O
Slide 7: Q4 Financial Performance
7 Q4 Financial Performance • Good Q4 revenue growth year-over-year – Constant currency • 11% excluding acquisitions in last 4 quarters • 26% consolidated, including recent acquisitions – Reported (USD) growth • 26% consolidated revenue growth at reported currency rates • Q4 GAAP operating income up
Slide 8: Vistaprint Business Unit
8 Vistaprint Business Unit • Continued traction with customer value proposition improvements – 10% constant-currency growth for full year; 12% for Q4 – 6% reported revenue growth for full year; 11% for Q4 – Double-digit repeat bookings growth – New customer count growth for first time in 3 years – C
Slide 9: Upload and Print Business Units
9 • Upload and Print Y/Y growth: – 27% constant-currency growth excluding recent acquisitions for full year; 21% for Q4 – 127% constant-currency revenue growth for full year; 92% for Q4 – 120% reported revenue growth for full year; 94% for Q4 • Full quarter of results from WIRmachenDRUCK acquisition
Slide 10: All Other Business Units
10 Albumprinter Most of World ● Brazil ● Japan ● India ● China Corporate Solutions ● 3rd parties that sell our products (branded or white- labeled) ● Franchise businesses ● Others • All Other business units Y/Y growth: – 2% constant-currency revenue growth for the full year and 8% decline for Q4 – 6
Slide 11: Mass Customization Platform
11 Mass Customization Platform 11 • Remain at the early stages of this multi- year project • Q4 and FY progress across multiple areas: – Growth of talent pool – Integration of acquisitions – Expansion of product offering
Slide 12: Adjusted Net Operating Profit by Segment
12 Adjusted Net Operating Profit by Segment Quarterly, USD in millions Adjusted NOP Adjusted NOP Margin Vistaprint Business Unit 35% 30% 25% 20% 15% 10% 5% 0% Q4 FY 14 Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY 16 Q3 FY 16 Q4 FY 16 $73 $71 $109 $69 $74 $66 $118 $80 $87 Adjusted NOP Adjusted
Slide 13: Letter to Investors
13 Letter to Investors • See letter published July 27, 2016 – Available at ir.cimpress.com – Includes detail that is not contained in this presentation or in our earnings press release • We will review content as part of our August 10, 2016 investor day
Slide 14: Q4 FY2016 Financial & Operating Metrics
Q4 FY2016 Financial & Operating Metrics
Slide 15: Q4 FY2016: Revenue Growth
15 Q4 FY2016: Revenue Growth Consolidated Note: In Q4 FY2015, we recognized deferred revenue related to group buying activities, a net $3.7 million headwind to year-over-year revenue growth in the current period. (1) Please see reconciliation of non-GAAP measures at the end of this presentation. Yea
Slide 16: Stacked Constant-Currency Organic Revenue Growth
16 Yr 1 Yr 2 Stacked Constant-Currency Organic Revenue Growth (1) Q4 '12 +Q 4'1 3 Q1 '13 +Q 1'1 4 Q2 '13 +Q 2'1 4 Q3 '13 +Q 3'1 4 Q4 '13 +Q 4'1 4 Q1 '14 +Q 1'1 5 Q2 '14 +Q 2'1 5 Q3 '14 +Q 3'1 5 Q4 '14 +Q 4'1 5 Q1 '15 +Q 1'1 6 Q2 '15 +Q 2'1 6 Q3 '15 +Q 3'1 6 Q4 '15 +Q 4'1 6 17% 13% 14% 11% 10% 12% 9%
Slide 17: GAAP Net Income and Operating Income
17 GAAP Net Income GAAP Net Income Margin GAAP Net Income (Loss) (1) 20% 10% 0% -10% Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 $1 $24 $64 $9 ($4) $10 $58 ($33) $17 TTM Operating Income TTM Adjusted NOPAT TTM GAAP Operating Income & Adjusted NOPAT Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY
Slide 18: Currency Impacts
18 Currency Impacts • Impact on both GAAP net income and adjusted NOPAT: – Reduced our YoY revenue growth by 400 bps for the full year; Q4 impact negligible – More limited impact on bottom line due to natural offsets, and an active currency hedging program ($5.9M realized hedging gains for full year
Slide 19: Cash Flow and ROIC Highlights
19 TTM Free Cash Flow (1,2) Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 $72 $123 $172 $164 $157 $124 $117 $141 $152 Cash Flow and ROIC Highlights TTM Cash Flow from Operations (2) Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 $154 $206 $250 $246 $242 $217 $212 $24
Slide 20: Debt Related Metrics
20 Debt Related Metrics *Our borrowing ability under our senior secured credit facility can be limited by our debt covenants each quarter. These covenants may limit our borrowing capacity depending on our leverage, other indebtedness, such as notes, capital leases, letters of credit, and other debt,
Slide 21: Looking Ahead
Looking Ahead <> cimpress
Slide 22: Revenue Commentary
22 Revenue Commentary Vistaprint Business Unit Increasing confidence this business can grow at double- digit constant currency rates, but near-term growth will be constrained by Vistaprint shipping price reductions. Upload and Print Business Units Confidence in double-digit organic constant currency
Slide 23: Investment Commentary
23 Investment Commentary (1) Figures consolidate 100% of investments in Japan and Brazil, although we own only 51% and 49.99% respectively (2) Investments are not tax effected (3) Please see definitions of non-GAAP financial measures at the end of this letter Approximate Impact of Organic Investment
Slide 24: Additional Commentary
24 Additional Commentary • Full year of WIRmachenDRUCK results in FY17 versus five months in FY16 • Intend to improve comparability of adjusted NOP by segment in FY17 • Year-over-year operating income and adjusted NOP decline from certain partner dynamics expected to be roughly $17 million • New LTI
Slide 25: Summary
25 Summary • Clear priorities – Strategic: to be the world leader in mass customization – Financial: to maximize intrinsic value per share • Solid progress in FY 2016 – Investments in technology for common mass customization platform – Continued traction of Vistaprint brand repositioning – Acquisiti
Slide 26: Q&A Session
Q&A Session Please go to ir.cimpress.com for the live Q&A call at 7:30 am EDT on July 28, 2016
Slide 27: Q4 & Fiscal Year 2016 Financial and Operating Results Supplement
Q4 & Fiscal Year 2016 Financial and Operating Results Supplement
Slide 28: Revenue Growth Rates
28 (1) Please see non-GAAP reconciliation to reported revenue growth rates at the end of this presentation. Revenue Growth Rates Consolidated Constant-Currency (1) Reported Constant-Currency Excl. TTM Acquisitions and Joint Ventures (1) Reported Excl. TTM Acquisitions and Joint Ventures (1) 35% 30%
Slide 29: Reported Revenue by Segment
29 Reported Revenue by Segment Quarterly, USD in millions Q4 FY2016 Vistaprint business unit (2) 64 % of total revenue 11 % y/y growth 12 % y/y constant currency growth Upload and Print business units 30 % of total revenue 94 % y/y growth 92 % y/y constant currency growth 21 % y/y constant currency
Slide 30: Reported Revenue Growth by Segment
30 Reported Revenue Growth Upload & Print Business Unit 200% 170% 140% 110% 80% 50% 20% -10% Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY 16 Q3 FY 16 Q4 FY 16 74% 98% 112% 201% 94% All Other Business Units 200% 170% 140% 110% 80% 50% 20% -10% Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY
Slide 31: Organic Constant Currency Revenue Growth
31 Organic Constant Currency Revenue Growth (excl. TTM acquisitions) Upload & Print Business Unit 50% 40% 30% 20% 10% 0% -10% Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY 16 Q3 FY 16 Q4 FY 16 34% 31% 31% 25% 21% All Other Business Units 50% 40% 30% 20% 10% 0% -10% Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4
Slide 32: Share-Based Compensation
32 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 $8.4 $7.9 $5.6 $5.9 $5.7 $6.4 $6.6 $5.3 $6.2 $6.1 $6.0 $5.6 Share-Based Compensation Note: Share-based compensation excludes SBC-related tax adjustment. Q1FY14 and Q2 FY14 includes expense related to the RSA grant
Slide 33: Balance Sheet Highlights
33 Balance Sheet Highlights Balance sheet highlights, USD in millions, at period end 6/30/2015 9/30/2015 12/31/2015 3/31/2016 6/30/2016 Total assets $1,299.8 $1,343.7 $1,302.5 $1,486.5 $1,463.9 Cash and cash equivalents $103.6 $93.8 $73.2 $76.7 $77.4 Total current assets $216.1 $217.4 $197.4 $204.2
Slide 34: Appendix: Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 35: About Non-GAAP Financial Measures
35 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,
Slide 36: Non-GAAP Financial Measures Definitions
36 Non-GAAP Financial Measures Definitions Non-GAAP Measure Definition Free Cash Flow FCF = Cash flow from operations – capital expenditures – purchases of intangible assets not related to acquisitions – capitalized software expenses + payment of contingent consideration in excess of acquisition-dat
Slide 37: Reconciliation: Free Cash Flow
37 Reconciliation: Free Cash Flow Q4FY15 Q4FY16 Net cash provided by operating activities $46,922 $52,138 Purchases of property, plant and equipment ($25,708) ($17,794) Purchases of intangible assets not related to acquisitions ($49) ($23) Capitalization of software and website development costs ($4
Slide 38: Reconciliation: Free Cash Flow TTM
38 Reconciliation: Free Cash Flow TTM, In thousands TTM Q4FY14 TTM Q1FY15 TTM Q2FY15 TTM Q3FY15 TTM Q4FY15 TTM Q1FY16 TTM Q2FY16 TTM Q3FY16 TTM Q4FY16 Net cash provided by operating activities $154,355 $205,923 $249,650 $245,942 $242,022 $216,509 $212,151 $242,140 $247,356 Purchases of property, pla
Slide 39: Reconciliation: Annual Free Cash Flow
39 Reconciliation: Annual Free Cash Flow Annual, In thousands FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Net cash provided by operating activities $34,637 $54,377 $89,032 $129,654 $159,973 $165,149 $146,749 $141,808 $153,739 $242,022 $247,356 Purchases of property, plant and equipment ($
Slide 40: Reconciliation: Adjusted NOPAT
40 Reconciliation: Adjusted NOPAT Quarterly, In thousands Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 GAAP operating income $19,744 $16,859 $59,888 $4,341 $15,236 $12,085 $67,609 ($17,531) $16,030 Less: Cash taxes attributable to current period (see below) ($3,241) ($5,313) ($7,35
Slide 41: Reconciliation: Adjusted NOPAT TTM
41 (1)Includes expense recognized for the change in fair value of contingent consideration and compensation expense related to cash-based earn-out mechanisms dependent upon continued employment. (2)Includes the impact of impairments or abandonments of goodwill and other long-lived assets as defined
Slide 42: Comparability of Adjusted NOP by Segment
42 Note: The following factors, among others, may limit the comparability of adjusted net operating profit by segment: • We do not allocate support costs across operating segments or corporate and global functions. • Some of our acquired business units in our Upload and Print business units and All
Slide 43: Reconciliation: ROIC
43 Reconciliation: ROIC (1) Excess cash is cash and equivalents > 5% of last twelve month revenues; if negative, capped at zero. ²(2) Average invested capital represents a four quarter average of total debt, redeemable non-controlling interests and total shareholder equity, less excess cash TTM, In
Slide 44: Reconciliation: Adjusted EBITDA
44 Reconciliation: Adjusted EBITDA Quarterly, In thousands Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 GAAP Operating income (loss) $19,744 $16,859 $59,888 $4,341 $15,236 $12,085 $67,609 ($17,531) $16,030 Depreciation and amortization $22,936 $24,459 $22,895 $22,325 $27,808 $30,22
Slide 45: Reconciliation: Adjusted EBITDA TTM
45 Reconciliation: Adjusted EBITDA TTM, In thousands TTM Q4FY14 TTM Q1FY15 TTM Q2FY15 TTM Q3FY15 TTM Q4FY15 TTM Q1FY16 TTM Q2FY16 TTM Q3FY16 TTM Q4FY16 GAAP Operating income (loss) $85,914 $94,364 $101,730 $100,832 $96,324 $91,550 $99,271 $77,399 $78,193 Depreciation and amortization $72,281 $81,115
Slide 46: Reconciliation: Constant-Currency Revenue Growth Rates by Segment
46 Reconciliation: Constant-Currency/ex. TTM Acquisitions Revenue Growth Rates Quarterly Vistaprint business unit Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3 FY16 Q4 FY16 Reported revenue growth 5% 3% 4% 5% 2% 3% 8% 11% Currency Impact 1% 4% 7% 6% 6% 5% 2% 1% Revenue growth in constant currency 6%
Slide 47: Quarterly Reconciliation: Constant-Currency Revenue Growth Rates
47 Quarterly Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3 FY16 Q4 FY16 Reported Revenue Growth 9% 6% (1 )% 21 % 21 % 19 % 19 % 13 % 13 % 13 % 29 % 26 % Currency Impact —% —% — % (2)% — % 4 % 7 % 9
Slide 48: Reconciliation: Annual Constant-Currency Revenue Growth Rates
48 Total Company FY14 FY15 FY16 Reported Revenue Growth 9.0 % 18.0 % 20.0 % Currency Impact (1.0)% 5.0 % 4.0 % Revenue Growth in Constant Currency 8.0 % 23.0 % 24.0 % Impact of TTM Acquisitions & JVs (4.0)% (14.0)% (13.0)% Revenue growth in constant currency ex. TTM acquisitions & JVs 4.0 % 9.0 % 11
Slide 49: Reconciliation: Two-year Stacked Organic Revenue Growth
49 Reconciliation: Two-year stacked constant-currency organic revenue growth Quarterly Q4FY12 Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Reported Revenue Growth 20 % 18 % 16% 12 % 12% 9% 6% (1)% 21 % 21 % 19 % 19 % 13 % 13 % 13 % 2