Slide 1: Q1 Fiscal Year 2016 Earnings Presentation
CIMPRESS N.V. Q1 Fiscal Year 2016 Earnings presentation, commentary & financial results supplement October 28, 2015 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 • Q1 FY2016 Overview • Q1 FY2016 Operating and financial results • Looking ahead • Supplementary information • Reconciliation of GAAP to non-GAAP results Live Q&A Session: THURSDAY MORNING October 29, 2015, 7:30 a.m. ET 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: Solid Q1 Performance
5 Solid Q1 Performance • Continued progress against objectives • Good revenue growth year-over-year – Constant Currency • 11% excluding recent acquisitions • 8% Vistaprint business unit • 21% consolidated – Reported (USD) Growth • 13% consolidated revenue growth at reported currency rates • Adjusted
Slide 6: Vistaprint Business Unit
6 Vistaprint Business Unit • Continued traction with customer value proposition changes – 8% constant-currency growth – 2% 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 – 118% constant-currency revenue growth – 98% reported revenue growth • Tradeprint acquisition closed July 31, 2015 • Integration activities progressing as expected across the portfolio Upload and Print Bus
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: – 6% constant-currency growth excluding recent acquisitions – 10% constant-currency revenue growth –
Slide 9: Mass Customization Platform
9 Mass Customization Platform 9 • Remain at the early stages of this multi-year project • Q1 progress highlights – Talent and software technology investments continue to ramp – Some early wins for acquisition integration in procurement, product availability – Columbus: continued SKU ramp (now availa
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: Q1 FY2016 Financial & Operating Metrics
Q1 FY2016 Financial & Operating Metrics
Slide 12: Q1 FY2016: Revenue Growth
12 Q1 FY2016: Revenue Growth Consolidated Revenue Growth (Constant Currency)
Slide 13: Q1 FY2016: Profit Metrics
13 In USD millions. Please see reconciliation of non-GAAP measures at the end of this presentation. Q1 FY2016: Profit Metrics
Slide 14: Currency Impacts
14 Currency Impacts • Impact on both GAAP Net Income and Adjusted NOPAT: – Reduced our YoY revenue growth by 800 bps – More limited impact on bottom line due to natural offsets, and an active currency hedging program ($0.3M realized hedging gains) • Additional below-the-line currency impacts on GAAP
Slide 15: Cash Flow and ROIC Highlights
15 Cash Flow and ROIC Highlights TTM Free Cash Flow¹ 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 $69 $66 $66 $72 $71 $65 $68 $76 $84
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: Constant-Currency Revenue Growth
18 Constant-Currency Revenue Growth • Per investor letter of July 29, 2015, we will provide an annual update on our general view of organic constant currency growth rates in alignment with our segments • No update to overall outlook, but in light of Q1 2016 segment changes, our newly categorized gen
Slide 19: Other Forward-Looking Commentary
19 Other Forward-Looking Commentary • No material changes to outlook commentary made at the beginning of the fiscal year • Note: accounting treatment of our new leased facility in the U.S. results in a portion of the lease payments flowing through our interest expense line (start date: September, 20
Slide 20: Summary
20 Summary • Clear priorities – Strategic: to be the world leader in mass customization – Financial: to maximize intrinsic value per share • Good start to FY 2016 – Investments in technology for common mass customization platform – Continued traction of Vistaprint brand repositioning – Acquisitions
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 October 29, 2015
Slide 22: Q1 Fiscal Year 2016 Financial and Operating Results Supplement
Q1 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 acquisition 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 16
Slide 24: Reported Revenue by Segment
24 Reported Revenue by Segment ¹For a description of acquisition and joint ventures that are excluded from constant currency growth, please see reconciliation to reported revenue growth rates at the end of this presentation. Quarterly, USD in millions Q1 FY2016 Vistaprint Business Unit 71 % of total
Slide 25: Share-Based Compensation
25 Share-Based Compensation (millions) Note: Share-based compensation excludes SBC-related tax adjustment. The period from Q2 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
Slide 26: Balance Sheet Highlights
26 Balance Sheet Highlights Balance Sheet highlights, USD in millions, at period end 9/30/2015 6/30/2015 3/31/2015 12/31/2014 9/30/2014 Total assets $1,343.7 $1,299.8 $1,032.2 $1,022.9 $979.6 Cash and cash equivalents $93.8 $103.6 $134.2 $77.9 $60.9 Total current assets $217.4 $216.1 $220.6 $178.3 $
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 Q1 FY15 Q1 FY16 Net cash provided by operating activities $52,620 $25,717 Purchases of property, plant and equipment ($16,684 ) ($24,393 ) Purchases of intangible assets not related to acquisitions ($85 ) ($357 ) Capitalization of software and website development co
Slide 31: Reconciliation: Free Cash Flow TTM
31 Reconciliation: Free Cash Flow TTM Q1 FY14 TTM Q2 FY14 TTM Q3 FY14 TTM Q4 FY14 TTM Q1 FY15 TTM Q2 FY15 TTM Q3 FY15 TTM Q4 FY15 TTM Q1 FY16 Net cash provided by operating activities $133,239 $139,733 $134,740 $148,580 $201,323 $244,520 $242,948 $228,876 $201,973 Purchases of property, plant and eq
Slide 32: Reconciliation: Adjusted NOPAT
32 Reconciliation: Adjusted NOPAT Quarterly, In thousands Cash taxes paid in the current period $2,683 $6,761 $3,216 $5,824 $5,296 $2,261 $3,089 $3,639 $4,709 Less: cash taxes related to prior periods ($1,716 ) ($1,473 ) ($44 ) ($3,288 ) ($2,860 ) ($588 ) ($1,103 ) ($925 ) $359 Plus: cash taxes attr
Slide 33: Reconciliation: Adjusted NOPAT TTM
33 TTM Q414 TTM Q115 TTM Q215 TTM Q315 TTM Q415 TTM Q116 GAAP Operating Income $85,914 $94,364 $101,730 $100,832 $96,324 $91,550 Less: Cash taxes attributable to current period (see below) ($20,123) ($20,145) ($21,189) ($20,573) ($24,988) ($26,508) Less: Interest expense associated with Waltham leas
Slide 34: Reconciliation: Adjusted NOP by Segment
34 Reconciliation: Adjusted NOP by Segment Quarterly, In thousands Q1 FY15 Q1 FY16 Adjusted Net Operating Profit (NOP): Vistaprint Business Unit $70,077 $66,252 Upload and Print Business Units 4,520 10,887 All Other 2,192 359 Total 76,789 77,498 Corporate and global functions (48,848 ) (54,619 ) Acq
Slide 35: Reconciliation: ROIC
35 Reconciliation: ROIC *In Q1 FY16 we early adopted a new accounting standard to present our capitalized debt issuance costs asset net of the related debt obligation. Previously, these capitalized costs were classified as other current and long- term assets. We have applied this change retroactivel
Slide 36: Reconciliation: Adjusted EBITDA
36 Reconciliation: Adjusted EBITDA1,2 Quarterly, In thousands Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Operating Income $8,409 $52,522 $5,239 $19,744 $16,860 $59,888 $4,341 $15,236 $12,085 Depreciation and amortization $15,625 $16,839 $16,881 $22,936 $24,459 $22,895 $22,325 $27
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 Operating Income $85,914 $94,365 $101,731 $100,833 $96,325 $91,550 Depreciation and amortization $72,281 $81,115 $87,171 $92,615 $97,487 $103,254 Share-based compensation expense
Slide 38: Reconciliation: Revenue Growth Rates
38 Reconciliation: Revenue Growth Rates Q1 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, Printi, Alcione and Tradeprint. Q1 FY16 Q1 FY15 % Change Currency impact (
Slide 39: Reconciliation: Constant-Currency/ex. TTM Acquisition Revenue Growth Rates
39 Total Company Q2FY13 Q3FY13 Q4FY13 Q1FY14 Q2FY14 Q3FY14 Q4FY14 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Reported Revenue Growth 16 % 12 % 12 % 9 % 6 % (1 )% 21 % 21 % 19 % 19 % 13 % 13 % Currency Impact 1 % — % — % — % — % — % (2 )% — % 4 % 7 % 9 % 8 % Revenue Growth in Constant Currency 17 % 12 % 12 %