Slide 1: Q3 Fiscal Year 2016 Earnings Presentation
CIMPRESS N.V. Q3 Fiscal Year 2016 Earnings presentation, commentary & financial results supplement April 27, 2016
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 • Q3 FY2016 Overview • Q3 FY2016 Operating and financial results • Looking ahead • Supplementary information • Reconciliation of GAAP to non-GAAP results Live Q&A Session: THURSDAY MORNING April 28, 2016, 7:30 a.m. EDT Link from ir.cimpress.com Hosted by: R
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: Q3 Financial Performance
5 Q3 Financial Performance • Good revenue growth year-over-year – Constant Currency • 10% excluding acquisitions in last 4 quarters • 31% consolidated, including recent acquisitions – Reported (USD) Growth • 29% 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 – 10% constant-currency growth – 8% reported revenue growth – Double-digit repeat bookings growth – Positive new customer bookings growth, with stabilizing new customer count – Continued growth in gross profit pe
Slide 7: Upload and Print Business Units
7 • Upload and Print Y/Y growth: – 25% constant-currency growth excluding recent acquisitions – 203% constant-currency revenue growth – 201% reported revenue growth • WIRmachenDRUCK acquisition completed in February • Partial goodwill impairment related to Exagroup acquisition Upload and Print Busin
Slide 8: All Other Business Units
8 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: – 3% constant-currency revenue decline – 7% reported revenue decline • Most of Worl
Slide 9: Mass Customization Platform
9 Mass Customization Platform • Remain at the early stages of this multi- year project • Q3 progress highlights – Talent and software technology investments continue to ramp – Additional wins for acquisition integration in procurement, product availability – Columbus: continued SKU ramp (now availab
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.
Slide 11: Other News: Upcoming Extraordinary General Meeting
11 Other News: Upcoming Extraordinary General Meeting Evolved compensation program with proposal for new equity plan • On April 18th we filed a preliminary proxy statement seeking approval for new equity plan • We believe the program: – Supports our uppermost financial objective to maximize intrinsi
Slide 12: Q3 FY2016 Financial & Operating Metrics
Q3 FY2016 Financial & Operating Metrics
Slide 13: Q3 FY2016: Revenue Growth
13 Q3 FY2016: Revenue Growth Consolidated Revenue Growth (Constant Currency) Please see reconciliation of non-GAAP measures at the end of this presentation.
Slide 14: Q3 FY2016: Profit Metrics
14 In USD millions. Please see reconciliation of non-GAAP measures at the end of this presentation. Q3 FY2016: Profit Metrics
Slide 15: Currency Impacts
15 Currency Impacts • Impact on both GAAP net income and adjusted NOPAT: – Reduced our YoY revenue growth by 200 bps – More limited impact on bottom line due to natural offsets, and an active currency hedging program ($1.4M realized hedging gains) • Additional below-the-line currency impacts on GAAP
Slide 16: Cash Flow and ROIC Highlights
16 Cash Flow and ROIC Highlights In USD millions except percentages. Please see reconciliation of non-GAAP measures at the end of this presentation. (1) Free cash flow does not include the value of capital leases. Consolidated $66 $72 $71 $65 $68 $76 $84 $84 $88
Slide 17: Debt Related Metrics
17 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 18: Looking Ahead
Looking Ahead
Slide 19: Forward-Looking Commentary
19 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 continues, but is lower than expected: – Major organic investments on an adjusted NOPAT ba
Slide 20: Summary
20 Summary • Clear priorities – Strategic: to be the world leader in mass customization – Financial: to maximize intrinsic value per share • Solid progress nine months through FY 2016 – Investments in technology for common mass customization platform – Continued traction of Vistaprint brand repositi
Slide 21: Q&A Session
Q&A Session Please go to ir.cimpress.com for the live Q&A call at 7:30 am EDT on April 28, 2016
Slide 22: Q3 Fiscal Year 2016 Financial and Operating Results Supplement
Q3 Fiscal Year 2016 Financial and Operating Results Supplement
Slide 23: Revenue Growth Rates
23 *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 YT
Slide 24: Reported Revenue by Segment
24 Reported Revenue by Segment Quarterly, USD in millions Q3 FY2016 Vistaprint business unit² 66% of total revenue 8% y/y growth 10% y/y constant currency growth Upload and Print business units 27% of total revenue 201% y/y growth 203% y/y constant currency growth 25% y/y constant currency growth ex
Slide 25: Organic Constant Currency Revenue Growth
25 Organic Constant Currency Revenue Growth (excl. TTM acquisitions) In Q4 FY2015, we recognized $4.0M of previously deferred revenue related to group buying activities, a benefit to the year-over-year growth rate for Vistaprint business unit in that period.
Slide 26: Share-Based Compensation
26 Share-Based Compensation Note: Share-based compensation excludes SBC-related tax adjustment. The period from Q4 FY13 to Q2 FY14 includes expense related to the RSA grants as part of the Webs acquisition. Consolidated FY13 $32.9 FY14 $27.8 FY15 $24.1 YTD FY16 $18.2 Quarterly, USD in millions
Slide 27: Balance Sheet Highlights
27 Balance Sheet Highlights Balance sheet highlights, USD in millions, at period end 3/31/2015 6/30/2015 9/30/2015 12/31/2015 3/31/2016 Total assets $1,032.2 $1,299.8 $1,343.7 $1,302.5 $1,486.5 Cash and cash equivalents $134.2 $103.6 $93.8 $73.2 $76.7 Total current assets $220.6 $216.1 $217.4 $197.4
Slide 28: Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Appendix Including a Reconciliation of GAAP to Non-GAAP Financial Measures
Slide 29: About Non-GAAP Financial Measures
29 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 30: Non-GAAP Financial Measures Definitions
30 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 31: Reconciliation: Free Cash Flow
31 Reconciliation: Free Cash Flow Q3 FY15 Q3 FY16 YTD Q3 FY15 YTD Q3 FY16 Net cash provided by operating activities $1,570 $23,859 $192,414 $183,535 Purchases of property, plant and equipment ($15,153) ($19,092) ($50,105) ($62,641) Purchases of intangible assets not related to acquisitions ($56) ($5
Slide 32: Reconciliation: Free Cash Flow (TTM)
32 Reconciliation: Free Cash Flow TTM, In thousands TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 TTM Q2 FY15 TTM Q3 FY15 TTM Q4 FY15 TTM Q1 FY16 TTM Q2 FY16 TTM Q3 FY16 Net cash provided by operating activities $134,740 $148,580 $201,323 $244,520 $242,948 $228,876 $201,973 $197,708 $219,997 Purchases of prop
Slide 33: Reconciliation: Adjusted NOPAT
33 Reconciliation: Adjusted NOPAT Quarterly, In thousands Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 GAAP operating (loss) income $5,239 $19,744 $16,859 $59,888 $4,341 $15,236 $12,085 $67,609 ($17,531) Less: Cash taxes attributable to current period (see below) ($5,282)
Slide 34: Reconciliation: Adjusted NOPAT (TTM)
34 ¹Includes 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. ²Includes the impact of impairments or abandonments of goodwill and other long-lived assets as defined by A
Slide 35: Adjusted Net Operating Profit by Segment Notes
35 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 36: Reconciliation: ROIC
36 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 37: Reconciliation: Adjusted EBITDA
37 Reconciliation: Adjusted EBITDA1,2 Quarterly, In thousands Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 GAAP Operating income (loss) $5,239 $19,744 $16,859 $59,888 $4,341 $15,236 $12,085 $67,609 ($17,531) Depreciation and amortization $16,881 $22,936 $24,459 $22,895 $22,325 $27,
Slide 38: Reconciliation: Adjusted EBITDA (TTM)
38 Reconciliation: Adjusted EBITDA1,2 TTM, In thousands TTM Q1FY15 TTM Q2FY15 TTM Q3FY15 TTM Q4FY15 TTM Q1FY16 TTM Q2FY16 TTM Q3FY16 GAAP Operating income (loss) $94,364 $101,730 $100,832 $96,324 $91,550 $99,271 $77,399 Depreciation and amortization $81,115 $87,171 $92,615 $97,487 $103,254 $112,164
Slide 39: Reconciliation: Constant-Currency/ex. TTM Acquisitions Revenue Growth Rates
39 Reconciliation: Constant-Currency/ex. TTM Acquisitions Revenue Growth Rates In Q4 FY2015, we recognized $4.0M of previously deferred revenue related to group buying activities, a benefit to the year-over-year growth rate for Vistaprint business unit in that period. Q3 FY2016 total company revenue
Slide 40: Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates
40 Total Company Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3 FY16 Reported Revenue Growth 12% 9% 6% (1)% 21% 21% 19% 19% 13% 13% 13% 29% Currency Impact —% —% —% —% (2)% —% 4% 7% 9% 8% 7% 2% Revenue Growth in Constant Currency 12% 9% 6% (1)% 19% 21% 23% 26% 22% 21