Slide 1: Q2 Fiscal Year 2016 Earnings presentation, commentary & financial results supplement
CIMPRESS N.V. Q2 Fiscal Year 2016 Earnings presentation, commentary & financial results supplement January 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 • Q2 FY2016 Overview • Q2 FY2016 Operating and financial results • Looking ahead • Supplementary information • Reconciliation of GAAP to non-GAAP results Live Q&A Session: THURSDAY MORNING January 28, 2016, 7:30 a.m. EST Link from ir.cimpress.com Hosted by:
Slide 4: Our Objectives
4 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 maximi
Slide 5: Q2 Financial Performance
5 Q2 Financial Performance • Good revenue growth year-over-year – Constant Currency • 10% excluding acquisitions in last 4 quarters • 20% consolidated, including recent acquisitions – Reported (USD) Growth • 13% consolidated revenue growth at reported currency rates • Adjusted NOPAT up versus last y
Slide 6: Vistaprint Business Unit
6 Vistaprint Business Unit • Continued traction with customer value proposition changes – 8% constant-currency growth – 3% reported revenue growth – Double-digit repeat bookings growth – Positive new customer bookings growth – Continued growth in gross profit per customer – Focus categories growing
Slide 7: Upload and Print Business Units
7 • Upload and Print Y/Y growth: – 31% constant-currency growth excluding recent acquisitions – 128% constant-currency revenue growth – 112% reported revenue growth • Pixartprinting announced North American expansion • Integration activities progressing as expected across the portfolio Upload and Pr
Slide 8: All Other Business Units
8 BU Key Brands Albumprinter Most of World Corporate Solutions Retail partners that sell our products (branded or white- labeled), franchise businesses, others • All Other business units Y/Y growth: – 8% constant-currency revenue growth – (4)% reported revenue growth • New Corporate Solutions Busine
Slide 9: Mass Customization Platform
9 Mass Customization Platform 9 • Remain at the early stages of this multi- year project • Q2 progress highlights – Talent and software technology investments continue to ramp – Additional wins for acquisition integration in procurement, product availability – Columbus: continued SKU ramp (now avail
Slide 10: Adjusted Net Operating Profit by Segment
10 Adjusted Net Operating Profit by Segment Quarterly, USD in millions In USD millions. Please see reconciliation of non-GAAP measures at the end of this presentation. Adjusted NOP Adjusted NOP Margin Vistaprint Business Unit 35% 30% 25% 20% 15% 10% 5% 0% Q2 FY 14 Q3 FY 14 Q4 FY 14 Q1 FY 15 Q2 FY 15
Slide 11: Q2 FY2016 Financial & Operating Metrics
Q2 FY2016 Financial & Operating Metrics
Slide 12: Q2 FY2016: Revenue Growth
12 Q2 FY2016: Revenue Growth Consolidated Total Revenue (reported, USD in millions) Total Revenue Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 $371 $286 $338 $334 $440 $340 $380 $376 $496 Year-over-Year Constant Currency Growth excl. TTM acquisitions and joint ventures Year-over-Ye
Slide 13: Q2 FY2016: Profit Metrics
13 In USD millions. Please see reconciliation of non-GAAP measures at the end of this presentation. Adjusted NOPAT Adjusted NOPAT Margin Adjusted NOPAT 18% 13% 8% 3% -2% Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 $56 $— $26 $23 $67 $16 $20 $16 $83 TTM Adjusted NOPAT TTM
Slide 14: Currency Impacts
14 Currency Impacts • Impact on both GAAP Net Income and Adjusted NOPAT: – Reduced our YoY revenue growth by 700 bps – More limited impact on bottom line due to natural offsets, and an active currency hedging program ($3.3M realized hedging gains) • Additional below-the-line currency impacts on GAAP
Slide 15: Cash Flow and ROIC Highlights
15 Land & Facilities Mfg & Automation Other CapEx as % of revenue TTM Capital Expenditures Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 5% 5% 6% 5% 5% 5% 5% 5% 5% Cash Flow and ROIC Highlights TTM Cash Flow from Operations Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4
Slide 16: Debt Related Metrics
16 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 17: Looking Ahead
Looking Ahead <> cimpress
Slide 18: Forward-Looking Commentary
18 Forward-Looking Commentary • YTD results reflect the strength of the underlying profitability of the business • "Major" and "Diverse Other" organic investment spending outlined at our investor day in August is largely on track YTD, though a little lower than expected particularly in capital expen
Slide 19: Summary
19 Summary • Clear priorities – Strategic: to be the world leader in mass customization – Financial: to maximize intrinsic value per share • Solid progress midway through FY 2016 – Investments in technology for common mass customization platform – Continued traction of Vistaprint brand repositioning
Slide 20: Q&A Session
Q&A Session Please go to ir.cimpress.com for the live Q&A call at 7:30 am EST on January 28, 2016
Slide 21: Q2 Fiscal Year 2016 Financial and Operating Results Supplement
Q2 Fiscal Year 2016 Financial and Operating Results Supplement
Slide 22: Revenue Growth Rates
22 *All acquisitions included as of acquisition date. For a description of acquisitions and joint ventures that are excluded from constant currency growth, please see reconciliation to reported revenue growth rates at the end of this presentation. Revenue Growth Rates* Consolidated FY13 FY14 FY15 FY
Slide 23: Reported Revenue by Segment
23 Reported Revenue by Segment Quarterly, USD in millions Q2 FY2016 Vistaprint Business Unit² 71 % of total revenue 3 % y/y growth 8 % y/y constant currency growth Upload and Print Business Units 19 % of total revenue 112 % y/y growth 128 % y/y constant currency growth 31 % y/y constant currency gro
Slide 24: Constant Currency Revenue Growth
24 Constant Currency Revenue Growth Upload & Print 140% 120% 100% 80% 60% 40% 20% Q1 FY 15 Q2 FY 15 Q3 FY 15 Q4 FY 15 Q1 FY 16 Q2 FY 16 100% 118% 128% 34% 31% 31% All Other 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 24% 48% 26% 7% 7% 8% 11% 8% 16% (4)% 4% Vista
Slide 25: Share-Based Compensation
25 Share-Based Compensation Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 $8.2 $8.1 $8.4 $7.9 $5.6 $5.9 $5.7 $6.4 $6.6 $5.3 $6.2 $6.1 Note: Share-based compensation excludes SBC-related tax adjustment. The period from Q3 FY13 to Q2 FY14 includes expense related
Slide 26: Balance Sheet Highlights
26 Balance Sheet Highlights Balance Sheet highlights, USD in millions, at period end 12/31/2014 3/31/2015 6/30/2015 9/30/2015 12/31/2015 Total assets $1,022.9 $1,032.2 $1,299.8 $1,343.7 $1,302.5 Cash and cash equivalents $77.9 $134.2 $103.6 $93.8 $73.2 Total current assets $178.3 $220.6 $216.1 $217.
Slide 27: Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 28: About Non-GAAP Financial Measures
28 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 29: Non-GAAP Financial Measures Definitions
29 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 30: Reconciliation: Free Cash Flow
30 Reconciliation: Free Cash Flow Q2 FY15 Q2 FY16 YTD Q2FY15 YTD Q2FY16 Net cash provided by operating activities $138,224 $133,959 $190,844 $159,676 Purchases of property, plant and equipment ($18,268) ($19,156) ($34,952) ($43,549) Purchases of intangible assets not related to acquisitions ($60) ($
Slide 31: Reconciliation: Free Cash Flow (TTM)
31 Reconciliation: Free Cash Flow TTM, In thousands TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 TTM Q2 FY15 TTM Q3 FY15 TTM Q4 FY15 TTM Q1 FY16 TTM Q2 FY16 Net cash provided by operating activities $139,733 $134,740 $148,580 $201,323 $244,520 $242,948 $228,876 $201,973 $197,708 Purchases of prop
Slide 32: Reconciliation: Adjusted NOPAT
32 Reconciliation: Adjusted NOPAT Quarterly, In thousands Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 GAAP Operating income $52,522 $5,239 $19,744 $16,859 $59,888 $4,341 $15,236 $12,085 $67,609 Less: Cash taxes attributable to current period (see below) ($6,309) ($5,282)
Slide 33: Reconciliation: Adjusted NOPAT (TTM)
33 Reconciliation: Adjusted NOPAT TTM, In thousands Cash taxes paid in the current period $18,484 $21,097 $16,597 $16,470 $14,285 $13,698 $17,473 Less: cash taxes related to prior periods ($6,521) ($7,665) ($6,780) ($7,839) ($5,476) ($2,257) ($4,132) Plus: cash taxes attributable to the current peri
Slide 34: Reconciliation: Adjusted NOP by Segment
34 Reconciliation: Adjusted NOP by Segment Quarterly, In thousands Adjusted Net Operating Profit (NOP): Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Vistaprint Business Unit $ 102,276 $ 58,018 $ 72,635 $ 70,836 $ 108,958 $ 69,255 $ 74,493 $ 66,358 $ 117,825 Upload and Prin
Slide 35: Reconciliation: ROIC
35 Reconciliation: ROIC ¹Excess cash is cash and equivalents > 5% of last twelve month revenues; if negative, capped at zero. ²Average invested capital represents a four quarter average of total debt, redeemable non-controlling interests and total shareholder equity, less excess cash TTM, In thousan
Slide 36: Reconciliation: Adjusted EBITDA (Quarterly)
36 Reconciliation: Adjusted EBITDA1,2 Quarterly, In thousands Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Operating Income $52,522 $5,239 $19,744 $16,859 $59,888 $4,341 $15,236 $12,085 $67,609 Depreciation and amortization $16,839 $16,881 $22,936 $24,459 $22,895 $22,325 $27,808 $3
Slide 37: Reconciliation: Adjusted EBITDA (TTM)
37 Reconciliation: Adjusted EBITDA1,2 TTM, In thousands TTM Q4FY14 TTM Q1FY15 TTM Q2FY15 TTM Q3FY15 TTM Q4FY15 TTM Q1FY16 TTM Q2FY16 Operating Income $85,914 $94,364 $101,730 $100,832 $96,324 $91,550 $99,271 Depreciation and amortization $72,281 $81,115 $87,171 $92,615 $97,487 $103,254 $112,164 Shar
Slide 38: Reconciliation: Constant-Currency/ex. TTM Acquisitions Revenue Growth Rates
38 Reconciliation: Constant-Currency/ex. TTM Acquisitions Revenue Growth Rates Q2 FY2016 total company revenue growth in constant currency excluding TTM acquisitions and joint ventures excludes the impact of currency and revenue from druck.at, Easyflyer, Exagroup, Alcione and Tradeprint. Quarterly V
Slide 39: Total Company Revenue Growth Reconciliation
39 Total Company Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Reported Revenue Growth 12% 12% 9% 6% (1)% 21 % 21 % 19 % 19 % 13 % 13 % 13 % Currency Impact —% —% —% —% — % (2)% — % 4 % 7 % 9 % 8 % 7 % Revenue Growth in Constant Currency 12% 12% 9% 6% (1)% 19 %