Form 6-K InterXion Holding N.V. For: Nov 05
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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM�6-K
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE�13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Report on Form�6-K dated 5�November 2014
(Commission File No.�001-35053)
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INTERXION HOLDING N.V.
(Translation of Registrant�s Name into English)
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Tupolevlaan 24, 1119 NX Schiphol-Rijk, The Netherlands, +31 20 880 7600
(Address of Principal Executive Office)
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Indicate by check mark whether the registrant files or will file annual reports under cover of Form�20-F or Form�40-F.
Form�20-F��x������������Form�40-F���
Indicate by check mark if the registrant is submitting the Form�6-K in paper as permitted by Regulation S-T Rule�101(b)(1):���
Note:�Regulation S-T Rule�101(b)(1)�only permits the submission in paper of a Form�6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form�6-K in paper as permitted by Regulation S-T Rule�101(b)(7)�):���
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant�s �home country�), or under the rules of the home country exchange on which the registrant�s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant�s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
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This report contains Interxion Holding N.V.�s (1)�third quarter 2014 earnings press release and (2)�presentation materials to be used during a conference call with investors on 5�November 2014.
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| Exhibit |
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| 99.1 | �� | The press release �Interxion Reports Third Quarter 2014 Results�, dated 5�November 2014. |
| 99.2 | �� | Presentation materials to be used during a conference call with investors on 5�November 2014. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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| INTERXION HOLDING N.V. | ||
| By: | � | /s/ David C. Ruberg |
| Name: | � | David C. Ruberg |
| Title: | � | Chief Executive Officer |
Date: 5�November 2014
Exhibit 99.1
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Press Release, 5�November 2014
Interxion Reports Third Quarter 2014 Results
AMSTERDAM 5�November 2014 � Interxion Holding NV (NYSE: INXN), a leading European provider of cloud and carrier-neutral colocation data centre services, today announced its results for the three months ended 30�September 2014.
Financial Highlights
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| � | � | � | Revenue increased by 11% to �86.4�million (Q3 2013: �78.1 million). |
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| � | � | � | Adjusted EBITDA increased by 11% to �37.3�million (Q3 2013: �33.7 million). |
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| � | � | � | Adjusted EBITDA margin was 43.1% (Q3 2013: 43.1%). |
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| � | � | � | Net profit increased to �9.0�million (Q3 2013: �16.5�million loss). |
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| � | � | � | Capital expenditure, including intangible assets, was �57.0 million. |
Operating Highlights
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| � | � | � | Revenue Generating Space increased by 4,200 square metres to 68,500 square metres. |
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| � | � | � | Equipped Space increased by 2,600 square metres to 88,600 square metres. |
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| � | � | � | Utilisation Rate at the end of the quarter was 77%. |
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| � | � | � | Expansion in Amsterdam and a new data centre opened in Stockholm. |
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| � | � | � | Completed the purchase of the SFR data centre in Marseille, France, as previously announced. |
�Interxion delivered solid operating and financial results in the quarter. Revenue Generating Space increased by 4,200 square meters (+7%)�over Q2 2014 and revenue growth improved to 11% year over year,� said Interxion Chief Executive Officer, David Ruberg. �Our community of interest strategy continues to show attractive results, as magnetic cloud service providers are being installed with signs of increased activity among community members starting to emerge.�
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Press Release, 5 November 2014
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Quarterly Review
Revenue in the third quarter of 2014 was �86.4�million, an 11% increase over the third quarter of 2013 and a 3% increase over the second quarter of 2014. Recurring revenue was �80.9�million, a 10% increase over the third quarter of 2013 and a 3% increase over the second quarter of 2014.
Cost of sales in the third quarter of 2014 was �35.5�million, a 12% increase over the third quarter of 2013 and a 5% increase over the second quarter of 2014.
Gross profit was �50.9�million in the third quarter of 2014, a 10% increase over the third quarter of 2013 and a 3% increase over the second quarter of 2014. Gross profit margin in the third quarter of 2014 was 58.9%, compared with 59.2% in the third quarter of 2013 and 59.4% in the second quarter of 2014.
Sales and marketing costs in the third quarter of 2014 were �5.9�million, an 8% increase over the third quarter of 2013 and a 5% decrease from the second quarter of 2014.
General and administrative costs1 in the third quarter of 2014 were �7.7�million, a 9% increase compared with the third quarter of 2013 and a 2% increase over the second quarter of 2014. Depreciation and amortisation in the third quarter of 2014 was �16.0�million, a 5% increase compared with the third quarter of 2013 and an 8% increase over the second quarter of 2014.
Net financing costs in the third quarter of 2014 were �7.0�million, an 82% decrease compared with the third quarter of 2013 and a 7% decrease over the second quarter of 2014. During the third quarter of 2013, Interxion closed a refinancing transaction that resulted in a �31.0�million one-time charge. Excluding this charge, net financing costs in the third quarter of 2014 were 1.4% lower than adjusted third quarter 2013 net financing costs.
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| 1� | Excluding depreciation, amortisation, impairments, increase/(decrease) in provision for onerous lease contracts, and share-based payments. |
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Press Release, 5 November 2014
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Income tax expense was �3.9�million in the third quarter of 2014, compared to a �4.1�million income tax benefit in the third quarter of 2013, and a 2% decrease from the second quarter of 2014. The underlying effective tax rate for the quarter was 30% unchanged from the 30% in the same period last year.
Net profit was �9.0�million in the third quarter of 2014, compared to a net loss of �16.5�million in the third quarter 2013 and an 8% increase over the second quarter of 2014. Earnings per share were �0.13 on a weighted average of 70.0�million diluted shares in the third quarter of 2014. This result compares with a net loss of �0.24 on a weighted average of 69.5�million diluted shares in the third quarter of 2013, and earnings per share of �0.12 on a weighted average of 69.8�million diluted shares in the second quarter of 2014. Adjusted diluted earnings per share2 for the third quarter of 2014 were �0.11, compared with �0.10 for the third quarter of 2013 and �0.11 for the second quarter of 2014.
Adjusted EBITDA in the third quarter of 2014 was �37.3�million, an 11% increase over the third quarter of 2013 and a 4% increase over the second quarter of 2014. Adjusted EBITDA margin was 43.1%, compared with 43.1% in the third quarter of 2013 and 42.9% in the second quarter of 2014.
Cash generated from operations, defined as cash generated from operating activities before interest and corporate income tax payments and receipts, was �33.6�million in the third quarter of 2014, a 5% increase over the third quarter of 2013 and a 25% increase over the second quarter of 2014. Capital expenditure, including intangible assets, was �57.0�million in the third quarter of 2014, compared with �26.5�million in the third quarter of 2013 and �54.4�million in the second quarter of 2014.
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| 2� | Diluted earnings per share adjusted for the impact of the refinancing charges, deferred tax adjustments, Dutch crisis tax, adjustments to onerous leases, capitalised interest, and the related corporate income tax effect. |
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Press Release, 5 November 2014
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Cash and cash equivalents were �112.8�million at 30�September 2014, up from �45.7�million at year-end 2013, principally due to the company adding a further �150.0�million aggregate principal amount of its 6.00% Senior Secured Notes due 2020, issued at 106.75 and resulting in net cash proceeds of �157.9�million, net of estimated offering fees and expenses of �2.3 million. Total borrowings, net of deferred revolving facility financing fees, were �542.7�million at the end of the third quarter of 2014, compared with �362.7�million at the end of 2013. In the quarter, the company entered into a finance lease obligation of �13.4�million relating to our AMS7 facility. The company�s �100�million revolving credit facility was undrawn at 30�September 2014.
During the quarter, the company completed its purchase of the data centre facilities in Marseille, France from Soci�t� Fran�aise du Radiot�l�phone � SFR SA (�SFR�). The company expects capital expenditure associated with the purchase of the freehold land and buildings together with the construction of the first two phases of equipped space totalling approximately 1,000 square metres to be approximately �20 million.
Equipped Space at the end of the third quarter of 2014 was 88,600 square metres, compared with 79,300 square metres at the end of the third quarter of 2013 and 86,000 square metres at the end of the second quarter of 2014.
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| � | � | � | AMS7 (Amsterdam): Phase 3 (1,500 square metres) became operational in 3Q 2014; phase 4 (1,300 square metres) is scheduled for 4Q 2014; phases 5 and 6 (1,300 square metres each) are scheduled for 1Q 2015 and 2Q 2015, respectively; |
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| � | � | � | FRA8 (Frankfurt): Phases 3 and 4 (900 square metres each) are scheduled for 1Q 2015; |
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| � | � | � | MRS1 (Marseille): Phases 1 and 2 (500 square metres each) are scheduled for 4Q 2014 and 1Q 2015, respectively; |
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| � | � | � | STO3 (Stockholm): 900 square metres opened in 3Q 2014; |
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| � | � | � | STO4 (Stockholm): 1,100 square metres are scheduled to open in 2Q 2015; |
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| � | � | � | VIE2 (Vienna): Phase 1 (600 square metres) is scheduled to be operational in 4Q 2014; Phases 2 and 3 will deliver 1,000 square metres scheduled to be operational in 1Q 2015 and 300 square metres scheduled to be operational in 2Q 2015, and Phase 4 (900 square metres) is scheduled to open in the second half of 2015. |
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Press Release, 5 November 2014
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Revenue Generating Space at the end of the third quarter of 2014 was 68,500 square metres, compared with 59,100 square metres at the end of the third quarter of 2013 and 64,300 square metres at the end of the second quarter of 2014. Utilisation Rate, the ratio of Revenue Generating Space to Equipped Space, was 77% at the end of the third quarter of 2014, compared with 75% at the end of the third quarter of 2013 and 75% at the end of the second quarter of 2014.
Business Outlook
Interxion today reaffirmed its guidance for 2014:
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| Revenue |
�� | � | 334�million�-� | �344�million� |
| Adjusted EBITDA |
�� | � | 145�million�-� | �152�million� |
| Capital expenditure (including intangibles) |
�� | � | 200�million�-� | �230�million� |
Conference Call to Discuss Results
The company will host a conference call today at 8:30am ET (1:30pm GMT and 2:30pm CET) to discuss the results.
To participate on this call, U.S. callers may dial toll free 1-866-966-9439; callers outside the U.S. may dial direct +44 (0)�1452 555 566. The conference ID for this call is 15649465. This event will also be webcast live over the Internet in listen-only mode at investors.interxion.com.
A replay of this call will be available shortly after the call concludes and will be available until 11�November 2014. To access the replay, U.S. callers may dial toll free 1-866-247-4222; callers outside the U.S. may dial direct +44 (0)�1452 550 000. The replay access number is 15649465.
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Press Release, 5 November 2014
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Forward-looking Statements
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the difficulty of reducing operating expenses in the short term, inability to utilise the capacity of newly planned data centres and data centre expansions, significant competition, the cost and supply of electrical power, data centre industry over-capacity, performance under service-level agreements, and other risks described from time to time in Interxion�s filings with the Securities and Exchange Commission. Interxion does not assume any obligation to update the forward-looking information contained in this press release.
Use of Non-IFRS Information
EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments, increase/decrease in provision for onerous lease contracts, and income from sub-leases on unused data centre sites. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue. We present EBITDA, Adjusted EBITDA and Adjusted EBITDA margin as additional information because we understand that they are measures used by certain investors and because they are used in our financial covenants in our �100�million revolving facility and �475�million 6.00% Senior Secured Notes due 2020. A reconciliation from Net profit to EBITDA and EBITDA to Adjusted EBITDA is provided in the notes to our consolidated income statement included elsewhere in this press release.
Adjusted diluted earnings per share amounts are determined on Adjusted Net Profit.�We define Adjusted Net Profit as net profit/loss excluding the impact of the refinancing charges, deferred tax adjustments, Dutch crisis tax, adjustments to onerous leases, capitalised interest, and the related corporate income tax effect.�A reconciliation from reported Net Profit to Adjusted Net Profit is included elsewhere in this press release.
Other companies, however, may present EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Net Profit differently than we do. EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Net Profit are not measures of financial performance under IFRS and should not be considered as an alternative to operating profit or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measure of performance derived in accordance with IFRS.
Interxion does not provide forward-looking estimates of Net profit, Operating profit, depreciation, amortisation, and impairments, share-based payments, or increase/decrease in provision for onerous lease contracts, and income from sub-leases on unused data centre sites, which it uses to reconcile to Adjusted EBITDA. The company is, therefore, unable to provide forward-looking reconciling information for Adjusted EBITDA.
-ENDS-
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Press Release, 5 November 2014
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About Interxion
Interxion (NYSE: INXN) is a leading provider of cloud and carrier-neutral colocation data centre services in Europe, serving a wide range of customers through 38 data centres in 11 European countries.�Interxion�s data centres offer customers extensive security and uptime for their mission-critical applications. With connectivity provided by over 500 connectivity providers and 20 European Internet exchanges across its footprint, Interxion has created cloud, content, finance and connectivity hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.
Contact:
Jim Huseby
Investor Relations
Interxion
Tel: +1-813-644-9399
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Press Release, 5 November 2014
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INTERXION HOLDING NV
CONSOLIDATED INCOME STATEMENT
(in ��000 � except per share data and where stated otherwise)
(unaudited)
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| � | �� | Three�Months�Ended | � | � | Nine Months Ended | � | ||||||||||
| � | �� | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | � | 30 Sep 2014 |
� | � | 30 Sep 2013 |
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| Revenue |
�� | � | 86,446 | �� | � | � | 78,051 | �� | � | � | 250,702 | �� | � | � | 228,957 | �� |
| Cost of sales |
�� | � | (35,531 | )� | � | � | (31,860 | )� | � | � | (102,107 | )� | � | � | (92,769 | )� |
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� | � | � |
� |
� | � | � |
� |
� | � | � |
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| Gross profit |
�� | � | 50,915 | �� | � | � | 46,191 | �� | � | � | 148,595 | �� | � | � | 136,188 | �� |
| Other income |
�� | � | 57 | �� | � | � | 106 | �� | � | � | 167 | �� | � | � | 299 | �� |
| Sales and marketing costs |
�� | � | (5,926 | )� | � | � | (5,465 | )� | � | � | (18,021 | )� | � | � | (16,452 | )� |
| General and administrative costs |
�� | � | (25,211 | )� | � | � | (23,321 | )� | � | � | (71,199 | )� | � | � | (68,688 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
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| Operating profit |
�� | � | 19,835 | �� | � | � | 17,511 | �� | � | � | 59,542 | �� | � | � | 51,347 | �� |
| Net finance expense |
�� | � | (6,986 | )� | � | � | (38,082 | )� | � | � | (19,875 | )� | � | � | (51,863 | )� |
| �� | � |
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� | � | � |
� |
� | � | � |
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� | � | � |
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| Profit/(loss) before taxation |
�� | � | 12,849 | �� | � | � | (20,571 | )� | � | � | 39,667 | �� | � | � | (516 | )� |
| Income tax expense |
�� | � | (3,855 | )� | � | � | 4,053 | �� | � | � | (11,992 | )� | � | � | (2,432 | )� |
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� | � | � |
� |
� | � | � |
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� | � | � |
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| Net profit/(loss) |
�� | � | 8,994 | �� | � | � | (16,518 | )� | � | � | 27,675 | �� | � | � | (2,948 | )� |
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� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
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| Basic earnings per share: (�) |
�� | � | 0.13 | �� | � | � | (0.24 | ) | � | � | 0.40 | �� | � | � | (0.04 | )� |
| Diluted earnings per share: (�) |
�� | � | 0.13 | �� | � | � | (0.24 | ) | � | � | 0.40 | �� | � | � | (0.04 | )� |
| Number of shares outstanding at the end of the period (shares in thousands) |
�� | � | 69,161 | �� | � | � | 68,810 | �� | � | � | 69,161 | �� | � | � | 68,810 | �� |
| Weighted average number of shares for Basic EPS (shares in thousands) |
�� | � | 69,118 | �� | � | � | 68,737 | �� | � | � | 68,985 | �� | � | � | 68,500 | �� |
| Weighted average number of shares for Diluted EPS (shares in thousands) |
�� | � | 70,039 | �� | � | � | 69,487 | �� | � | � | 69,921 | �� | � | � | 69,283 | �� |
| � | �� | As at | � | � | � | � | � | � | � | |||||||
| Capacity metrics |
�� | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | � | � | � | � | � | � | ||||
| Equipped space (in square meters) |
�� | � | 88,600 | �� | � | � | 79,300 | �� | � | � | ||||||
| Revenue generating space (in square meters) |
�� | � | 68,500 | �� | � | � | 59,100 | �� | � | � | ||||||
| Utilisation rate |
�� | � | 77 | %� | � | � | 75 | %� | � | � | ||||||
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Press Release, 5 November 2014
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INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: SEGMENT INFORMATION
(in ��000 � except where stated otherwise)
(unaudited)
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| � | �� | Three Months Ended | � | � | Nine Months Ended | � | ||||||||||
| � | �� | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | � | 30 Sep 2014 |
� | � | 30 Sep 2013 |
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| Consolidated |
�� | � | � | � | ||||||||||||
| Recurring revenue |
�� | � | 80,863 | �� | � | � | 73,708 | �� | � | � | 235,466 | �� | � | � | 216,858 | �� |
| Non-recurring revenue |
�� | � | 5,583 | �� | � | � | 4,343 | �� | � | � | 15,236 | �� | � | � | 12,099 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Revenue |
�� | � | 86,446 | �� | � | � | 78,051 | �� | � | � | 250,702 | �� | � | � | 228,957 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | 37,275 | �� | � | � | 33,671 | �� | � | � | 107,686 | �� | � | � | 98,075 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Gross margin |
�� | � | 58.9 | %� | � | � | 59.2 | %� | � | � | 59.3 | %� | � | � | 59.5 | %� |
| Adjusted EBITDA margin |
�� | � | 43.1 | %� | � | � | 43.1 | %� | � | � | 43.0 | %� | � | � | 42.8 | %� |
| Total assets |
�� | � | 1,134,861 | �� | � | � | 885,658 | �� | � | � | 1,134,861 | �� | � | � | 885,658 | �� |
| Total liabilities |
�� | � | 708,601 | �� | � | � | 508,180 | �� | � | � | 708,601 | �� | � | � | 508,180 | �� |
| Capital expenditure, including intangible assets (i) |
�� | � | (57,041 | )� | � | � | (26,467 | )� | � | � | (168,456 | )� | � | � | (88,035 | )� |
| France, Germany, the Netherlands, and the UK |
�� | � | � | � | ||||||||||||
| Recurring revenue |
�� | � | 50,950 | �� | � | � | 46,057 | �� | � | � | 147,929 | �� | � | � | 135,692 | �� |
| Non-recurring revenue |
�� | � | 3,901 | �� | � | � | 2,713 | �� | � | � | 9,904 | �� | � | � | 7,915 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Revenue |
�� | � | 54,851 | �� | � | � | 48,770 | �� | � | � | 157,833 | �� | � | � | 143,607 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | 29,226 | �� | � | � | 26,587 | �� | � | � | 84,408 | �� | � | � | 77,791 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Gross margin |
�� | � | 60.5 | %� | � | � | 62.1 | %� | � | � | 61.1 | %� | � | � | 62.5 | %� |
| Adjusted EBITDA margin |
�� | � | 53.3 | %� | � | � | 54.5 | %� | � | � | 53.5 | %� | � | � | 54.2 | %� |
| Total assets |
�� | � | 760,212 | �� | � | � | 590,500 | �� | � | � | 760,212 | �� | � | � | 590,500 | �� |
| Total liabilities |
�� | � | 165,599 | �� | � | � | 135,540 | �� | � | � | 165,599 | �� | � | � | 135,540 | �� |
| Capital expenditure, including intangible assets (i) |
�� | � | (37,322 | )� | � | � | (17,595 | )� | � | � | (116,495 | )� | � | � | (59,316 | )� |
| Rest of Europe |
�� | � | � | � | ||||||||||||
| Recurring revenue |
�� | � | 29,913 | �� | � | � | 27,651 | �� | � | � | 87,537 | �� | � | � | 81,166 | �� |
| Non-recurring revenue |
�� | � | 1,682 | �� | � | � | 1,630 | �� | � | � | 5,332 | �� | � | � | 4,184 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Revenue |
�� | � | 31,595 | �� | � | � | 29,281 | �� | � | � | 92,869 | �� | � | � | 85,350 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | 16,767 | �� | � | � | 14,931 | �� | � | � | 49,198 | �� | � | � | 44,122 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Gross margin |
�� | � | 61.5 | %� | � | � | 60.6 | %� | � | � | 62.0 | %� | � | � | 61.1 | %� |
| Adjusted EBITDA margin |
�� | � | 53.1 | %� | � | � | 51.0 | %� | � | � | 53.0 | %� | � | � | 51.7 | %� |
| Total assets |
�� | � | 263,009 | �� | � | � | 207,318 | �� | � | � | 263,009 | �� | � | � | 207,318 | �� |
| Total liabilities |
�� | � | 53,817 | �� | � | � | 41,438 | �� | � | � | 53,817 | �� | � | � | 41,438 | �� |
| Capital expenditure, including intangible assets (i) |
�� | � | (17,696 | )� | � | � | (7,998 | )� | � | � | (47,648 | )� | � | � | (26,552 | )� |
| Corporate and other |
�� | � | � | � | ||||||||||||
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | (8,718 | )� | � | � | (7,847 | )� | � | � | (25,920 | )� | � | � | (23,838 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Total assets |
�� | � | 111,640 | �� | � | � | 87,840 | �� | � | � | 111,640 | �� | � | � | 87,840 | �� |
| Total liabilities |
�� | � | 489,185 | �� | � | � | 331,202 | �� | � | � | 489,185 | �� | � | � | 331,202 | �� |
| Capital expenditure, including intangible assets (i) |
�� | � | (2,023 | )� | � | � | (874 | )� | � | � | (4,313 | )� | � | � | (2,167 | )� |
�
| (i) | Capital expenditure, including intangible assets, represents payments to acquire property, plant and equipment and intangible assets, as recorded in the consolidated statement of cash flows as �Purchase of property, plant and equipment� and �Purchase of intangible assets�, respectively. |
�
9
Press Release, 5 November 2014
�
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: ADJUSTED EBITDA RECONCILIATION
(in ��000 � except where stated otherwise)
(unaudited)
�
| � | �� | Three�Months�Ended | � | � | Nine Months Ended | � | ||||||||||
| � | �� | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | � | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | ||||
| Reconciliation to Adjusted EBITDA |
�� | � | � | � | ||||||||||||
| Consolidated |
�� | � | � | � | ||||||||||||
| Net profit/(loss) |
�� | � | 8,994 | �� | � | � | (16,518 | )� | � | � | 27,675 | �� | � | � | (2,948 | )� |
| Income tax expense |
�� | � | 3,855 | �� | � | � | (4,053 | )� | � | � | 11,992 | �� | � | � | 2,432 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Profit/(loss) before taxation |
�� | � | 12,849 | �� | � | � | (20,571 | )� | � | � | 39,667 | �� | � | � | (516 | )� |
| Net finance expense |
�� | � | 6,986 | �� | � | � | 38,082 | �� | � | � | 19,875 | �� | � | � | 51,863 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Operating profit |
�� | � | 19,835 | �� | � | � | 17,511 | �� | � | � | 59,542 | �� | � | � | 51,347 | �� |
| Depreciation, amortisation and impairments |
�� | � | 16,025 | �� | � | � | 15,211 | �� | � | � | 44,870 | �� | � | � | 44,138 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| EBITDA |
�� | � | 35,860 | �� | � | � | 32,722 | �� | � | � | 104,412 | �� | � | � | 95,485 | �� |
| Share-based payments |
�� | � | 1,472 | �� | � | � | 1,055 | �� | � | � | 4,246 | �� | � | � | 2,889 | �� |
| Increase/(decrease) in provision for onerous lease contracts |
�� | � | ��� | �� | � | � | ��� | �� | � | � | (805 | )� | � | � | ��� | �� |
| Income from sub-leases on unused data centre sites |
�� | � | (57 | )� | � | � | (106 | )� | � | � | (167 | )� | � | � | (299 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | 37,275 | �� | � | � | 33,671 | �� | � | � | 107,686 | �� | � | � | 98,075 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| France, Germany, the Netherlands, and the UK |
�� | � | � | � | ||||||||||||
| Operating profit |
�� | � | 18,420 | �� | � | � | 16,745 | �� | � | � | 55,452 | �� | � | � | 48,971 | �� |
| Depreciation, amortisation and impairments |
�� | � | 10,528 | �� | � | � | 9,761 | �� | � | � | 28,968 | �� | � | � | 28,668 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| EBITDA |
�� | � | 28,948 | �� | � | � | 26,506 | �� | � | � | 84,420 | �� | � | � | 77,639 | �� |
| Share-based payments |
�� | � | 335 | �� | � | � | 187 | �� | � | � | 960 | �� | � | � | 451 | �� |
| Increase/(decrease) in provision for onerous lease contracts |
�� | � | ��� | �� | � | � | ��� | �� | � | � | (805 | )� | � | � | ��� | �� |
| Income from sub-leases on unused data centre sites |
�� | � | (57 | )� | � | � | (106 | )� | � | � | (167 | )� | � | � | (299 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | 29,226 | �� | � | � | 26,587 | �� | � | � | 84,408 | �� | � | � | 77,791 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Rest of Europe |
�� | � | � | � | ||||||||||||
| Operating profit |
�� | � | 11,857 | �� | � | � | 10,218 | �� | � | � | 35,158 | �� | � | � | 30,635 | �� |
| Depreciation, amortisation and impairments |
�� | � | 4,610 | �� | � | � | 4,638 | �� | � | � | 13,386 | �� | � | � | 13,232 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| EBITDA |
�� | � | 16,467 | �� | � | � | 14,856 | �� | � | � | 48,544 | �� | � | � | 43,867 | �� |
| Share-based payments |
�� | � | 300 | �� | � | � | 75 | �� | � | � | 654 | �� | � | � | 255 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | 16,767 | �� | � | � | 14,931 | �� | � | � | 49,198 | �� | � | � | 44,122 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Corporate and Other |
�� | � | � | � | ||||||||||||
| Operating profit/(loss) |
�� | � | (10,442 | )� | � | � | (9,452 | )� | � | � | (31,068 | )� | � | � | (28,259 | )� |
| Depreciation, amortisation and impairments |
�� | � | 887 | �� | � | � | 812 | �� | � | � | 2,516 | �� | � | � | 2,238 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| EBITDA |
�� | � | (9,555 | )� | � | � | (8,640 | )� | � | � | (28,552 | )� | � | � | (26,021 | )� |
| Share-based payments |
�� | � | 837 | �� | � | � | 793 | �� | � | � | 2,632 | �� | � | � | 2,183 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted EBITDA |
�� | � | (8,718 | )� | � | � | (7,847 | )� | � | � | (25,920 | )� | � | � | (23,838 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
�
10
Press Release, 5 November 2014
�
INTERXION HOLDING NV
CONSOLIDATED BALANCE SHEET
(in ��000 � except where stated otherwise)
(unaudited)
�
| � | �� | As at | � | |||||
| � | �� | 30 Sep 2014 |
� | � | 31 Dec 2013 |
� | ||
| Non-current assets |
�� | � | ||||||
| Property, plant and equipment |
�� | � | 850,500 | �� | � | � | 698,748 | �� |
| Intangible assets |
�� | � | 18,545 | �� | � | � | 17,878 | �� |
| Deferred tax assets |
�� | � | 30,812 | �� | � | � | 34,446 | �� |
| Financial assets |
�� | � | 774 | �� | � | � | 774 | �� |
| Other non-current assets |
�� | � | 5,781 | �� | � | � | 16,536 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| �� | � | 906,412 | �� | � | � | 768,382 | �� | |
| Current assets |
�� | � | ||||||
| Trade and other current assets |
�� | � | 115,694 | �� | � | � | 96,703 | �� |
| Cash and cash equivalents |
�� | � | 112,755 | �� | � | � | 45,690 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| �� | � | 228,449 | �� | � | � | 142,393 | �� | |
| �� | � |
� |
� | � | � |
� |
� | |
| Total assets |
�� | � | 1,134,861 | �� | � | � | 910,775 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| Shareholders� equity |
�� | � | ||||||
| Share capital |
�� | � | 6,915 | �� | � | � | 6,887 | �� |
| Share premium |
�� | � | 492,205 | �� | � | � | 485,347 | �� |
| Foreign currency translation reserve |
�� | � | 10,812 | �� | � | � | 6,757 | �� |
| Hedging reserve, net of tax |
�� | � | (198 | )� | � | � | 60 | �� |
| Accumulated deficit |
�� | � | (83,474 | )� | � | � | (111,149 | )� |
| �� | � |
� |
� | � | � |
� |
� | |
| �� | � | 426,260 | �� | � | � | 387,902 | �� | |
| Non-current liabilities |
�� | � | ||||||
| Trade payables and other liabilities |
�� | � | 11,658 | �� | � | � | 11,537 | �� |
| Deferred tax liabilities |
�� | � | 6,750 | �� | � | � | 4,147 | �� |
| Provision for onerous lease contracts |
�� | � | 2,607 | �� | � | � | 4,855 | �� |
| Borrowings |
�� | � | 541,445 | �� | � | � | 362,209 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| �� | � | 562,460 | �� | � | � | 382,748 | �� | |
| Current liabilities |
�� | � | ||||||
| Trade payables and other liabilities |
�� | � | 135,962 | �� | � | � | 132,093 | �� |
| Income tax liabilities |
�� | � | 4,685 | �� | � | � | 2,229 | �� |
| Provision for onerous lease contracts |
�� | � | 3,139 | �� | � | � | 4,020 | �� |
| Borrowings |
�� | � | 2,355 | �� | � | � | 1,783 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| �� | � | 146,141 | �� | � | � | 140,125 | �� | |
| �� | � |
� |
� | � | � |
� |
� | |
| Total liabilities |
�� | � | 708,601 | �� | � | � | 522,873 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| Total liabilities and shareholders� equity |
�� | � | 1,134,861 | �� | � | � | 910,775 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
�
11
Press Release, 5 November 2014
�
INTERXION HOLDING NV
NOTES TO THE CONSOLIDATED BALANCE SHEET: BORROWINGS
(in ��000 � except where stated otherwise)
(unaudited)
�
| � | �� | As at | � | |||||
| � | �� | 30 Sep 2014 |
� | � | 31 Dec 2013 |
� | ||
| Borrowings net of cash and cash equivalents |
�� | � | ||||||
| Cash and cash equivalents (ii) |
�� | � | 112,755 | �� | � | � | 45,690 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| 6.00% Senior Secured Notes due 2020 (iii) |
�� | � | 475,698 | �� | � | � | 317,610 | �� |
| Mortgages |
�� | � | 32,457 | �� | � | � | 24,257 | �� |
| Financial leases |
�� | � | 34,040 | �� | � | � | 20,520 | �� |
| Other borrowings |
�� | � | 1,605 | �� | � | � | 1,605 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| Borrowings excluding Revolving Facility deferred financing costs |
�� | � | 543,800 | �� | � | � | 363,992 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| Revolving Facility deferred financing costs (iv) |
�� | � | (1,066 | )� | � | � | (1,258 | )� |
| �� | � |
� |
� | � | � |
� |
� | |
| Total borrowings |
�� | � | 542,734 | �� | � | � | 362,734 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
| Borrowings net of cash and cash equivalents |
�� | � | 429,979 | �� | � | � | 317,044 | �� |
| �� | � |
� |
� | � | � |
� |
� | |
�
| (ii) | Cash and cash equivalents include �4.2�million as of 30�September 2014 and �4.1�million as of 31�December 2013, which is restricted and held as collateral to support the issuance of bank guarantees on behalf of a number of subsidiary companies. |
| (iii) | �475�million 6.00% Senior Secured Notes due 2020 include a premium on the additional issuance and are shown after deducting underwriting discounts and commissions, offering fees and expenses. On 29�April 2014, the Company completed the issuance of �150.0�million aggregate principal amount of its 6.00% Senior Secured Notes due 2020 (the �Additional Notes�). |
| (iv) | Deferred financing costs of �1.1�million as of 30�September 2014 were incurred in connection with the �100 million revolving facility. |
�
12
Press Release, 5 November 2014
�
INTERXION HOLDING NV
CONSOLIDATED STATEMENT OF CASH FLOWS
(in ��000 � except where stated otherwise)
(unaudited)
�
| � | �� | Three Months Ended | � | � | Nine Months Ended | � | ||||||||||
| � | �� | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | � | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | ||||
| Profit/(loss) for the period |
�� | � | 8,994 | �� | � | � | (16,518 | )� | � | � | 27,675 | �� | � | � | (2,948 | )� |
| Depreciation, amortisation and impairments |
�� | � | 16,025 | �� | � | � | 15,211 | �� | � | � | 44,870 | �� | � | � | 44,138 | �� |
| Provision for onerous lease contracts |
�� | � | (859 | )� | � | � | (825 | )� | � | � | (3,313 | )� | � | � | (2,456 | )� |
| Share-based payments |
�� | � | 1,472 | �� | � | � | 1,055 | �� | � | � | 4,246 | �� | � | � | 2,889 | �� |
| Net finance expense |
�� | � | 6,986 | �� | � | � | 38,082 | �� | � | � | 19,875 | �� | � | � | 51,863 | �� |
| Income tax expense |
�� | � | 3,855 | �� | � | � | (4,053 | )� | � | � | 11,992 | �� | � | � | 2,432 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| �� | � | 36,473 | �� | � | � | 32,952 | �� | � | � | 105,345 | �� | � | � | 95,918 | �� | |
| Movements in trade and other current assets |
�� | � | (7,848 | )� | � | � | (1,105 | )� | � | � | (19,077 | )� | � | � | (9,909 | )� |
| Movements in trade and other liabilities |
�� | � | 5,012 | �� | � | � | 156 | �� | � | � | 8,607 | �� | � | � | (6,314 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Cash generated from operations |
�� | � | 33,637 | �� | � | � | 32,003 | �� | � | � | 94,875 | �� | � | � | 79,695 | �� |
| Interest and fees paid (v) |
�� | � | (11,711 | )� | � | � | (10,763 | )� | � | � | (23,772 | )� | � | � | (21,934 | )� |
| Interest received |
�� | � | 114 | �� | � | � | 145 | �� | � | � | 238 | �� | � | � | 432 | �� |
| Income tax paid |
�� | � | (1,950 | )� | � | � | (2,020 | )� | � | � | (4,151 | )� | � | � | (4,090 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Net cash flows from operating activities |
�� | � | 20,090 | �� | � | � | 19,365 | �� | � | � | 67,190 | �� | � | � | 54,103 | �� |
| Cash flows from investing activities |
�� | � | � | � | ||||||||||||
| Purchase of property, plant and equipment |
�� | � | (56,251 | )� | � | � | (25,959 | )� | � | � | (166,276 | )� | � | � | (85,432 | )� |
| Purchase of intangible assets |
�� | � | (790 | )� | � | � | (508 | )� | � | � | (2,180 | )� | � | � | (2,603 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Net cash flows from investing activities |
�� | � | (57,041 | )� | � | � | (26,467 | )� | � | � | (168,456 | )� | � | � | (88,035 | )� |
| Cash flows from financing activities |
�� | � | � | � | ||||||||||||
| Proceeds from exercised options |
�� | � | 1,444 | �� | � | � | 1,289 | �� | � | � | 2,846 | �� | � | � | 4,032 | �� |
| Proceeds from mortgages |
�� | � | ��� | �� | � | � | ��� | �� | � | � | 9,185 | �� | � | � | 15,324 | �� |
| Repayment of mortgages |
�� | � | (320 | )� | � | � | (167 | )� | � | � | (1,054 | )� | � | � | (167 | )� |
| Proceeds Revolving Facility |
�� | � | ��� | �� | � | � | ��� | �� | � | � | 30,000 | �� | � | � | ��� | �� |
| Repayments Revolving Facility |
�� | � | ��� | �� | � | � | ��� | �� | � | � | (30,000 | )� | � | � | ��� | �� |
| Payments for Revolving Facility |
�� | � | ��� | �� | � | � | (1,159 | )� | � | � | ��� | �� | � | � | (1,159 | )� |
| Proceeds 6.00% Senior Secured Notes due 2020 |
�� | � | (504 | )� | � | � | 317,814 | �� | � | � | 157,878 | �� | � | � | 317,814 | �� |
| Repayment 9.50% Senior Secured Notes due 2017 |
�� | � | ��� | �� | � | � | (286,478 | )� | � | � | ��� | �� | � | � | (286,478 | )� |
| Interest received at issue of Additional Notes |
�� | � | ��� | �� | � | � | ��� | �� | � | � | 2,600 | �� | � | � | ��� | �� |
| Interest paid related to interest received at issue of Additional Notes |
�� | � | (2,600 | )� | � | � | ��� | �� | � | � | (2,600 | )� | � | � | ��� | �� |
| Transaction costs related to Senior Secured Facility |
�� | � | (275 | )� | � | � | ��� | �� | � | � | (646 | )� | � | � | ��� | �� |
| Repayment of other borrowings |
�� | � | 8 | �� | � | � | (28 | )� | � | � | (15 | )� | � | � | (53 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Net cash flows from financing activities |
�� | � | (2,247 | )� | � | � | 31,271 | �� | � | � | 168,194 | �� | � | � | 49,313 | �� |
| Effect of exchange rate changes on cash |
�� | � | 73 | �� | � | � | (9 | )� | � | � | 137 | �� | � | � | (70 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Net movement in cash and cash equivalents |
�� | � | (39,125 | )� | � | � | 24,160 | �� | � | � | 67,065 | �� | � | � | 15,311 | �� |
| Cash and cash equivalents, beginning of period |
�� | � | 151,880 | �� | � | � | 59,843 | �� | � | � | 45,690 | �� | � | � | 68,692 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Cash and cash equivalents, end of period |
�� | � | 112,755 | �� | � | � | 84,003 | �� | � | � | 112,755 | �� | � | � | 84,003 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
�
| (v) | Interest paid is reported net of cash interest capitalized, which is reported as part of �Purchase of property, plant and equipment�. |
�
13
Press Release, 5 November 2014
�
INTERXION HOLDING NV
NOTES TO CONSOLIDATED INCOME STATEMENT: ADJUSTED NET PROFIT RECONCILIATION
(in � millions � except per share data and where stated otherwise)
(unaudited)
�
| � | �� | Three�Months�Ended | � | � | Nine�Months�Ended | � | ||||||||||
| � | �� | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | � | 30 Sep 2014 |
� | � | 30 Sep 2013 |
� | ||||
| Net profit/(loss) - as reported |
�� | � | 9.0 | �� | � | � | (16.5 | )� | � | � | 27.7 | �� | � | � | (2.9 | )� |
| Add back |
�� | � | � | � | ||||||||||||
| + Refinancing charges |
�� | � | ��� | �� | � | � | 31.0 | �� | � | � | 0.6 | �� | � | � | 31.0 | �� |
| + Deferred tax asset adjustment |
�� | � | ��� | �� | � | � | 0.6 | �� | � | � | ��� | �� | � | � | 0.6 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| �� | � | ��� | �� | � | � | 31.6 | �� | � | � | 0.6 | �� | � | � | 31.6 | �� | |
| Reverse |
�� | � | � | � | ||||||||||||
| - Adjustments to onerous lease |
�� | � | ��� | �� | � | � | ��� | �� | � | � | (0.8 | )� | � | � | ��� | �� |
| - Interest capitalised |
�� | � | (1.3 | )� | � | � | (0.3 | )� | � | � | (3.0 | )� | � | � | (1.3 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| �� | � | (1.3 | )� | � | � | (0.3 | )� | � | � | (3.8 | )� | � | � | (1.3 | )� | |
| Tax effect of above add backs�& reversals |
�� | � | 0.3 | �� | � | � | (7.7 | )� | � | � | 0.8 | �� | � | � | (7.7 | )� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Adjusted Net profit |
�� | � | 8.0 | �� | � | � | 7.1 | �� | � | � | 25.4 | �� | � | � | 19.7 | �� |
| �� | � |
� |
� | � | � |
� |
� | � | � |
� |
� | � | � |
� |
� | |
| Reported Basic EPS: (�) |
�� | � | 0.13 | �� | � | � | (0.24 | )� | � | � | 0.40 | �� | � | � | (0.04 | )� |
| Reported Diluted EPS: (�) |
�� | � | 0.13 | �� | � | � | (0.24 | )� | � | � | 0.40 | �� | � | � | (0.04 | )� |
| Adjusted Basic EPS: (�) |
�� | � | 0.12 | �� | � | � | 0.10 | �� | � | � | 0.37 | �� | � | � | 0.29 | �� |
| Adjusted Diluted EPS: (�) |
�� | � | 0.11 | �� | � | � | 0.10 | �� | � | � | 0.36 | �� | � | � | 0.29 | �� |
�
14
Press Release, 5 November 2014
�
INTERXION HOLDING NV
Status of Announced Expansion Projects as at 5�November 2014
with Target Open Dates in 2014�& 2015
�
| Market |
�� | Project |
�� | CAPEX�(a,�b) (�million) |
� | �� | Equipped Space (a) (sqm) |
� | �� | Target�Opening�Dates | ||
| Amsterdam |
�� | AMS 7: Phases 1 - 6 New Build | �� | � | 115 | �� | �� | � | 7,400 | �� | �� | 1Q�2014�-�2Q�2015�(c) |
| Brussels |
�� | BRU 1: Phase 5 Expansion | �� | � | 2 | �� | �� | � | 300 | �� | �� | 1Q�2014�(fully�opened) |
| Dusseldorf |
�� | DUS 1: Expansion | �� | � | <1 | �� | �� | � | 100 | �� | �� | 3Q 2014 (fully opened) |
| Frankfurt |
�� | FRA 8: Phases 1 - 4 New Build | �� | � | 67 | �� | �� | � | 3,700 | �� | �� | 2Q 2014�-�1Q 2015�(d) |
| Frankfurt |
�� | FRA 9: New Build | �� | � | 13 | �� | �� | � | 800 | �� | �� | 1Q 2014 (fully opened) |
| London |
�� | LON 1: Expansion | �� | � | 1 | �� | �� | � | 200 | �� | �� | 2Q�-�3Q�2014�(fully�opened)�(e) |
| Marseille |
�� | MRS 1: Phases 1 - 2 | �� | � | 20 | �� | �� | � | 1,000 | �� | �� | 4Q 2014�-�1Q2015(f) |
| Stockholm |
�� | STO 2: Phase 2 Expansion | �� | � | 6 | �� | �� | � | 500 | �� | �� | 1Q 2014 (fully opened) |
| Stockholm |
�� | STO 3: New Build | �� | � | 11 | �� | �� | � | 900 | �� | �� | 3Q 2014 (fully opened) |
| Stockholm |
�� | STO 4: New Build | �� | � | 15 | �� | �� | � | 1,100 | �� | �� | 2Q 2015 |
| Vienna |
�� | VIE 2: Phases 1 - 4 New Build | �� | � | 42 | �� | �� | � | 2,800 | �� | �� | 4Q 2014�-�2H 2015 (g) |
| Zurich |
�� | ZUR 1: Expansion | �� | � | 1 | �� | �� | � | 100 | �� | �� | 2Q 2014 (fully opened) |
| Total |
�� | �� | � | 293 | �� | �� | � | 19,100 | �� | �� | ||
�
| (a) | CAPEX and Equipped Space are approximate and may change. Figures are rounded to nearest 100 sqm unless otherwise noted. |
| (b) | CAPEX reflects the total spend for the projects listed at full power and capacity and the amounts shown in the table above may be invested over the duration of more than one fiscal year. |
| (c) | Phase 1 (1,100 square metres) became operational in 1Q 2014; phase 2 (1,000 square metres) became operational in 2Q 2014; Phase 3 (1,500 square metres) became operational in 3Q 2014; phases 4, 5, and 6 (1,300 square metres each) are scheduled for 4Q 2014, 1Q 2015, and 2Q 2015, respectively. |
| (d) | Phases 1 and 2 (900 square metres each) became operational in the second quarter of 2014; Phases 3 and 4 (900 square metres each) are scheduled for 1Q 2015. |
| (e) | 100 sqm added in each of 2Q 2014 and 3Q 2014. |
| (f) | Phases 1 and 2 (500 square metres each) are scheduled for 4Q 2014 and 1Q 2015, respectively. Marseille costs include the purchase of land buildings, and data centre equipment. |
| (g) | Phase 1 (600 square metres) are scheduled to be operational in 4Q 2014; Phases 2 and 3 will deliver 1,000 square metres scheduled to be operational in 1Q 2015 and 300 square metres scheduled to be operational in 2Q 2015, and Phase 4 (900 square metres) is scheduled to open in the second half of 2015. |
�
15
Exhibit 99.2
�
�
Exhibit 99.2
3Q 2014 EARNINGS
CONFERENCE CALL
NYSE: INXN
| 5 |
� |
November 2014 |
� Copyright Interxion Holding N.V., 2014.
�
DISCLAIMER
This document includes forward-looking statements. All statements other than statements of historical fact included in this document regarding our business, financial condition, results of operations and certain of our plans, objectives, assumptions, projections, expectations or beliefs with respect to these items and statements regarding other future events or prospects, are forward-looking statements. These statements include, without limitation, those concerning: our strategy and our ability to achieve it; expectations regarding sales, profitability and growth; plans for the construction of new data centres; our possible or assumed future results of operations; research and development, capital expenditure and investment plans; adequacy of capital; and financing plans. The words �aim,� �may,� �will,� �expect,� �anticipate,� �believe,� �future,� �continue,� �help,� �estimate,� �plan,� �schedule,� �intend,� �should,� �shall� or the negative or other variations thereof as well as other statements regarding matters that are not historical fact, are or may constitute forward-looking statements.
In addition, this document includes forward-looking statements relating to our potential exposure to various types of market risks, such as foreign exchange rate risk, interest rate risks and other risks related to financial assets and liabilities. We have based these forward-looking statements on our management�s current view with respect to future events and financial performance. These views reflect the best judgment of our management but involve a number of risks and uncertainties which could cause actual results to differ materially from those predicted in our forward-looking statements and from past results, performance or achievements. Although we believe that the estimates reflected in the forward-looking statements are reasonable, such estimates may prove to be incorrect. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from these expressed or implied by these forward-looking statements. These factors include, among other things:
operating expenses cannot be easily reduced in the short term;
inability to utilise the capacity of newly planned data centres and data centre expansions;
significant competition;
cost and supply of electrical power;
data centre industry over-capacity; and
performance under service level agreements.
All forward-looking statements included in this document are based on information available to us on the date of this document. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout this document.
This document contains references to certain non-IFRS financial measures. For definitions of terms such as �Adjusted EBITDA�, �Adjusted Net Profit�, �Equipped Space�, �LTM�, and �Recurring Revenue� and a detailed reconciliation between the non-IFRS financial results presented in this document and the corresponding IFRS measures, please refer to the appendix.
Certain financial and other information presented in this document has not been audited or reviewed by our independent auditors.
Certain numerical, financial data, other amounts and percentages in this document may not sum due to rounding. In addition, certain figures in this document have been rounded to the nearest whole number.
| 2 |
� |
�
STRATEGIC�& OPERATIONAL HIGHLIGHTS
David Ruberg � Chief Executive Officer
| 3 |
� |
�
Q3 2014 PERFORMANCE
Financial Execution
Revenue grew 11% Y/Y, 3% Q/Q
Adjusted EBITDA grew 11% Y/Y, 4% Q/Q
Adjusted EBITDA margin of 43.1%
Capital Expenditure of €57�million including intangibles
Operational Execution
Revenue Generating Space grew by 4,200 sqm, up 16% Y/Y
Equipped Space grew by 2,600 sqm, up 12% Y/Y
Utilisation Rate 77%
Expansion in Amsterdam and a new data centre opened in Stockholm
Completed purchase of data centre in Marseille, France
Solid Execution; Community of Interest Strategy Delivering Results
| 4 |
� |
�
Q3 FINANCIAL HIGHLIGHTS
Q3 Revenue €86.4 Million
Grew 11% Y/Y and 3% Q/Q
Q3 Recurring Revenue €80.9 Million
Grew 10% Y/Y and 3% Q/Q
94% of total
Q3 Adjusted EBITDA €37.3 Million
Grew 11% Y/Y and 4% Q/Q
Q3 Adjusted EBITDA margin 43.1%
Revenue
(€ millions)
78.1 78.2 80.6 83.6 86.4 Non- Recurring Revenue
73.7 74.4 75.9 78.7 80.9 Recurring Revenue
3Q13 4Q13 1Q14 2Q14 3Q14
Adjusted EBITDA�& Margin
(€ millions) Adjusted EBITDA
33.7 33.8 34.5 35.9 37.3
3Q13 4Q13 1Q14 2Q14 3Q14
43.1% 43.2�% 42.9�% 42.9�% 43.1% Margin
Increasing Momentum with Double Digit Revenue Growth Rate
| 5 |
� |
�
Q3 OPERATIONAL HIGHLIGHTS
Equipped Space of 88,600 sqm
Grew 12% Y/Y
2,600 sqm added in quarter
Revenue Generating Space of 68,500 sqm
Grew 16% Y/Y
4,200 sqm installed in quarter
Utilisation rate 77%
Equipped�& Revenue Generating Space
(1,000�s sqm)
79.3 80.1 82.9 86.0 88.6 Available Equipped Space
59.1 59.7 61.4 64.3 68.5 Revenue Generating Space
3Q13 4Q13 1Q14 2Q14 3Q14
75% 75% 74% 75% 77% Utilisation
Strong Customer Installations Drive Increased Utilisation
| 6 |
� |
�
EXPANDING FACILITIES TO SUPPORT CUSTOMER NEEDS
Projects opened in Q3:
AMS7.3: 1,500 sqm
STO3: 900 sqm
Continued demand-driven expansion
Marseille (MRS1) new build in new market
Stockholm (STO4) new build
Vienna (VIE2.3 � 2.4) expansion
Customer Available Power:
96 MW at end of 3Q14
Potential of 145 MW from current data centres and announced projects
Announced Projects With Target Open Dates in 2014�& 2015
(See appendix for quarterly schedule)
Market Data Centre Project Project CapEx (€ millions) Equipped Space (sqm)
Project Opened Scheduled Opening by Phase
Amsterdam AMS7 Phases 1 � 6 New Build 115 7,400 3,600 1Q14 � 2Q15
Brussels BRU1 Phase 5 Expansion 2 300 300 1Q14
Frankfurt FRA8 Phases 1 � 4 New Build 67 3,700 1,800 2Q14 � 1Q15
Frankfurt FRA9 New Build 13 800 800 1Q14
Marseille MRS1 Phases 1 � 2 20 1,000 0 4Q14 � 1Q15
Stockholm STO2 Phase 2 Expansion 6 500 500 1Q14
Stockholm STO3 Phase 1 New Build 12 900 900 3Q14
Stockholm STO4 Phase 1 New Build 15 1,100 0 2Q15
Vienna VIE2 Phases 1 � 4 New Build 42 2,800 0 4Q14 � 4Q15
Notes:
As of 5�November 2014.
CapEx and Equipped Space are approximate and may change.
CapEx reflects the total spend for the listed project at full power and capacity and the amounts shown in the table above may be invested over the
duration of more than one fiscal year.
| 7 |
� |
�
BUILDING COMMUNITIES OF INTEREST DELIVERS SIGNIFICANT CUSTOMER VALUE
Interxion�s Target Segments
Digital Media�& CDNs
Enterprises
Financial Services
Platform Providers(1)
Managed Service Providers Network Providers
Sept 2014(2)
11% 9% 11% 26% 32%
Sept 2013(2)
10�% 9�% 12�% 22�% 35�%
Continued Strong Momentum from Magnetic Cloud Customers
(1)Selected providers in these segments, plus systems integrators, are deploying cloud platforms.
(2)Percentage of monthly recurring revenue. Remaining Monthly Recurring Revenue (Sept 2014 11%, Sept 2013 12%) allocated to systems integrator, on-line retail, and public customer segments.
| 8 |
� |
�
FINANCIAL HIGHLIGHTS
Josh Joshi � Chief Financial Officer
9
�
Q3 2014 RESULTS
€ millions Q3 2014 vs. Q3 2014 vs.
Q3 2013 Q2 2014 Q3 2014
(except per share amounts) Q3 2013 Q2 2014
Recurring revenue 73.7 78.7 80.9 10% 3%
Non-recurring revenue 4.3 4.9 5.6 29% 14%
Revenue 78.1 83.6 86.4 11% 3%
Gross profit 46.2 49.6 50.9 10% 3%
Gross margin % 59.2% 59.4% 58.9% -30bps -50bps
Adjusted EBITDA(1) 33.7 35.9 37.3 11% 4%
Adjusted EBITDA Margin % 43.1% 42.9% 43.1% � +20bps
Net profit / (loss) (16.5)�8.3 9.0 n/m 8%
EPS (diluted) €(0.24) € 0.12 € 013. n/m 8%
Adjusted Net Profit (2)�7.1 7.6 8.0 13% 6%
Adjusted EPS (diluted)(2) €0.10 € 0.11 € 0.11 12% 5%
Revenue grew 11% Y/Y/Y and 3%
Q/Q
10% Y/Y and 3% Q/Q constant currency
Gross Margin down 30 bps
Y/Y; down 50 bps Q/Q
Adjusted EBITDA Margin
consistent Y/Y; up 20 bps Q/Q
Maintained margins despite
expansion drag and higher
non-recurring revenue
Adjusted net profit(2) grew 13%
Y/Y and 6% Q/Q
Adjustments to EBITDA include share-based payments, increase/decrease in provision for onerous lease contracts, and income from sub-leases
on unused data centre sites.
Adjustments to Net Profit include refinancing charges, adjustments to onerous leases, Dutch Crisis Tax, capitalised interest and the related corporate income tax effect. See appendix for reconciliation.
10
�
Q3 2014 REPORTING SEGMENT ANALYSIS
France, Germany, the Netherlands, and UK
54.5�% 54.4% 53.8�% 53.4% 53.3%
54.9
48.8 48.9 50.8 52.2
26.6 26.6 27.3 27.9 29.2
3Q13 4Q13 1Q14 2Q14 3Q14
Revenue grew 12% Y/Y, 5% Q/Q
Recurring revenue grew 11% Y/Y, 3% Q/Q
Adjusted EBITDA margins impacted by expansion drag and higher non-recurring revenue
Strength in Germany and the Netherlands
(€ millions)
Revenue
Adjusted EBITDA
Adjusted EBITDA Margin
Rest of Europe
51.0% 51.1�% 52.9�% 52.9% 53.1%
29.3 29.3 29.8 31.4 31.6
14.9 15.0 15.8 16.6 16.8
3Q13 4Q13 1Q14 2Q14 3Q14
Revenue grew 8% Y/Y, 1% Q/Q
Recurring revenue grew 8% Y/Y, 2% Q/Q Adjusted EBITDA margins grew 210bps Y/Y Strength in Austria, Ireland, and Sweden
Strong Sequential Revenue Growth in Big 4 Segment
Note: Analysis excludes �Corporate�& Other� segment.
11
�
DEMAND-DRIVEN CAPITAL EXPENDITURES
Capital Expenditures, including Intangible Assets
(€ millions)
55.3
57.0
54.4
57.0
26.5
3Q13 4Q13 1Q14 2Q14 3Q14
By Geography (Q3 2014)
(€ millions)
2.0
Big 4
17.7 ROE
37.3 Corporate
By Category (Q3 2014)
(€ millions)
0.8
5.0 Expansion /
Upgrade
Maintenance�&
Other
51.2 Intangibles
Disciplined, Order-Driven Capital Expenditures
12
�
STRONG BALANCE SHEET
€ millions 30-Sept-14 31-Dec-13
Cash�& Cash Equivalents 112.8 45.7
Total Borrowings(1) 542.7 362.7
Shareholders Equity 426.3 387.9
Total Capitalisation 969.0 750.6
Total Borrowings / Total
Capitalisation 56.0% 48.3%
Gross Leverage Ratio(2) 3.8x 2.8x
Net Leverage Ratio(3) 3.0x 2.5x
Strong cash position to support planned
expansions
Purchased Marseille data centre
€13.4�million liability for AMS7 financial lease
Blended interest cost 6.1%
€100�million RCF remains undrawn
Q3 2014 LTM Cash ROGIC 12%
Fully Funded to Complete Expansion Plan
(1) Total�Borrowings�=�6.00%�Senior�Secured Notes�due�2020�including�premium�on�additional�issue�and�are�shown�after�deducting�underwriting�discounts�and�commissions,
offering�fees�and�expenses�+�Mortgages�+�Financial�Leases�+� Revolving�facility�borrowings�+�Other�Borrowings�� Revolving�facility�deferred�financing�costs.
(2) Gross�Leverage�Ratio�= (6.00%�Senior�Secured�Notes�due�2020�at�face�value�+�Mortgages�+�Financial�Leases�+�Revolving�facility�borrowings+�Other�Borrowings)�/ LTM
Adjusted�EBITDA.
(3) Net�Leverage�Ratio�=�(6.00%�Senior�Secured�Notes�due�2020�at�face�value�+�Mortgages�+�Financial�Leases�+�Revolving�facility�balance�+� Other�Borrowings�� Cash�&�Cash
Equivalents) / LTM�Adjusted�EBITDA.
13
�
DISCIPLINED INVESTMENTS DRIVE STRONG RETURNS
(millions)
502
R eturns LTM
2014 214 27% Q3
142 138
| (4) |
� |
| (3) |
� |
Investments Revenue Gross Profit Maintenance Annual Cash (66% margin) Capex Return
24 Fully Built-Out (1)�Data Centres (2)
Space fully equipped
Some power upgrades yet to come
As at 1�January 2013
50,200 sqm of equipped space
83% utilisation
27% annual cash return
Attractive Cash Returns from Fully Built-Out (1)�Data Centres
(1)Fully Built-Out Data Centre: a data centre for which materially all equippable space is equipped; future power upgrades may further increase the
capacity of a fully built out data centre.
(2)24 Fully Built-Out Data Centres as at 1�January 2013: AMS1, AMS2, AMS3, AMS4, AMS5, AMS6, DUB1, DUB 2, DUS1, FRA1, FRA2, FRA3,
FRA4, FRA5, FRA7, HIL1, LON1, MAD1, PAR1, PAR2, PAR3, PAR4, PAR5, and PAR6.
(3)Represents total investments in Data Centre Assets, including freehold land and buildings, infrastructure and equipment, Intangible assets, and
assets under construction as at 30�September 2014.
14
�
BUSINESS COMMENTARY OUTLOOK�& CONCLUDING REMARKS
David Ruberg � Chief Executive Officer
15
�
OUR VIEW ON CLOUD ADOPTION HASN�T CHANGED
Total sqm
United States
Cloud Service Providers
Enterprises (SaaS, IaaS, PaaS)
Enterprises (SaaS, IaaS, PaaS)
Cloud Service Providers
Europe
1/2013 1/2014 1/2015 1/2016+
| (1) |
� |
Derived�from�industry,�broker�and�customer�research. |
16
�
GUIDANCE FOR 2014
Range
(in millions)
Revenue € 334 � 344
Adjusted EBITDA € 145 � 152
Capital € 200 � 230
Expenditures
17
�
QUESTIONS
& ANSWERS
Amsterdam Brussels Copenhagen Dublin Dusseldorf Frankfurt Hilversum London Madrid Paris Stockholm Vienna Zurich
www.interxion.com
�
APPENDIX
19
�
TRACK RECORD OF EXECUTION
Revenue by Quarter 76.5 78.1 78.2 80.6 83.6 86.4
(€ millions) 54.6 55.6 57.9 60.0 62.0 64.4 65.8 68.0 70.4 72.9 74.4
40.4 42.5 43.7 45.1 47.8 50.4
Y/Y 1Q�09 2Q�09 3Q�09 4Q�09 1Q�10 2Q�10 3Q�10 4Q�10 1Q�11 2Q�11 3Q�11 4Q�11 1Q�12 2Q�12 3Q�12 4Q�12 1Q�13 2Q�13 3Q�13 4Q�13 1Q�14 2Q�14 3Q�14
Growth 30% 28% 22% 18% 18% 19% 25% 23% 21% 19% 13% 16% 14% 13% 14% 13% 13% 13% 11% 7% 8% 9% 11%
Big 4 %(2) 58% 59% 59% 59% 60% 60% 60% 58% 60% 60% 59% 62% 61% 62% 62% 62% 63% 63% 62% 63% 63% 62% 63%
CAGR(1)=15%
Adjusted EBITDA by Quarter
CAGR(1)=19%
31.2 31.7 32.7 33.7 33.8 34.5 35.9 37.3
(€ millions) 25.0 27.1 27.3 27.8 28.7
14.1 15.7 16.0 16.9 17.4 19.6 20.8 21.4 22.2 23.3
Adjusted 1Q�09 2Q�09 3Q�09 4Q�09 1Q�10 2Q�10 3Q�10 4Q�10 1Q�11 2Q�11 3Q�11 4Q�11 1Q�12 2Q�12 3Q�12 4Q�12 1Q�13 2Q�13 3Q�13 4Q�13 1Q�14 2Q�14 3Q�14
EBITDA 35% 37% 37% 37% 36% 39% 38% 38% 38% 39% 40% 42% 42% 41% 41% 43% 43% 43% 43% 43% 43% 43% 43%
Margin(3)
32 Consecutive Quarters of Sequential Organic Revenue and Adjusted EBITDA Growth
| (1) |
� |
CAGR calculated as 3Q14 vs. 1Q09. |
| (2) |
� |
Big 4�% defined as percentage of total revenue from France, Germany, Netherlands, and UK reporting segment. |
| (3) |
� |
Adjusted EBITDA margin calculated as Adjusted EBITDA divided by Revenue. |
20
�
�
ILLUSTRATIVE ARPU DEVELOPMENT
Customer ARPU Development
Space Installed Power Reservation�& Energy Consumption
Data Centre Recurring Revenue
Development
ARPU increases over time as IT workloads increase
Customers initially contract for space and modest power reservation(1) As workloads increase, larger power reservation fees are required and energy consumption increases
Revenue grows from space, power reservation, and energy consumption over time As data centres fill with customers:
Revenue mix initially tilted toward space As space becomes more fully utilised, revenue growth from power reservation and energy consumption can continue
Revenue Develops Over Time as Power Reservation and Energy Consumption Increase
| (1) |
� |
Power Reservation is the fee for infrastructure power (cooling, power distribution, etc.). |
21
�
HISTORICAL FINANCIAL RESULTS
2012 2013 2014 2012 2013
€ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY
(except as noted)
Recurring revenue 62.3 62.9 65.1 69.0 71.0 72.2 73.7 74.4 75.9 78.7 80.9 259.2 291.3
Non-recurring revenue 3.5 5.1 5.3 3.9 3.4 4.3 4.3 3.7 4.7 4.9 5.6 17.9 15.8
Total Revenue 65.8 68.0 70.4 72.9 74.4 76.5 78.1 78.2 80.6 83.6 86.4 277.1 307.1
Gross Profit 39.3 39.8 41.0 43.9 44.8 45.2 46.2 46.8 48.0 49.6 50.9 164.0 183.0
Gross Margin 59.7% 58.5% 58.3% 60.3% 60.2% 59.1% 59.2% 59.9% 59.6% 59.4% 58.9% 59.2% 59.6%
Adj EBITDA 27.3 27.8 28.7 31.2 31.7 32.7 33.7 33.8 34.5 35.9 37.3 115.0 131.8
Adj EBITDA Margin 41.5% 40.8% 40.8% 42.8% 42.6% 42.8% 43.1% 43.2% 42.9% 42.9% 43.1% 41.5% 42.9%
Net Profit / (loss) 8.7 8.7 8.6 5.6 7.0 6.6 (16.5)(1)�9.8 10.4 8.3 9.0 31.6 6.8(1)
CapEx Paid 61.1 42.6 46.5 28.2 32.8 28.8 26.5 55.3 57.0 54.4 57.0 178.3 143.4
Expansion/Upgrade 57.8 38.2 42.2 23.4 28.8 27.1 25.0 52.8 52.7 51.0 51.2 161.5 133.6
Maintenance�& Other 1.9 3.3 1.6 3.6 2.1 1.5 1.0 2.0 3.7 2.6 5.0 10.5 6.7
Intangibles 1.4 1.0 2.6 1.2 1.9 0.2 0.5 0.5 0.6 0.8 0.8 6.3 3.1
Cash Generated from
Operations 25.4 29.4 24.1 32.9 23.6 24.1 32.0 23.0 34.3 26.9 33.6 111.7 102.7
Gross PP&E 730.1 775.9 807.9 856.3 870.0 900.0 933.5 987.2 1,045.4 1,105.8 1,183.1 856.3 987.2
Gross Intangible Assets 16.9 17.9 21.7 23.1 23.5 23.7 24.3 24.9 25.5 26.5 27.5 23.1 24.9
LTM Cash ROGIC 15% 15% 14% 13% 13% 13% 14% 13% 13% 12% 12% 13% 13%
The Company�s growth has been 100% organic; hence, gross goodwill is zero for all periods.
(1) Includes €31�million in one-time charges related to debt refinancing; see Adjusted Net Profit reconciliation elsewhere in this Appendix.
22
�
HISTORICAL SEGMENT FINANCIAL RESULTS
2012 2013 2014 2012 2013
€ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY FY
(except as noted)
BIG 4
Recurring revenue 38.0 38.4 39.8 42.8 44.4 45.2 46.1 46.5 47.6 49.3 51.0 159.1 182.2
Non-recurring revenue 2.3 3.9 4.0 2.5 2.1 3.1 2.7 2.4 3.1 2.9 3.9 12.6 10.3
Total Revenue 40.3 42.4 43.8 45.3 46.6 48.3 48.8 48.9 50.8 52.2 54.9 171.8 192.5
Gross Margin 62.6% 60.2% 60.1% 62.7% 63.2% 62.1% 62.1% 63.1% 61.8% 61.2% 60.5% 61.4% 62.6%
Adj EBITDA 21.6 21.8 22.4 24.3 25.2 26.0 26.6 26.6 27.3 27.9 29.2 90.1 104.4
Adj EBITDA Margin 53.5% 51.5% 51.2% 53.6% 54.0% 54.0% 54.5% 54.4% 53.8% 53.4% 53.3% 52.5% 54.2%
REST OF EUROPE
Recurring revenue 24.3 24.4 25.3 26.2 26.5 27.0 27.7 27.9 28.2 29.4 29.9 100.1 109.1
Non-recurring revenue 1.2 1.2 1.4 1.4 1.3 1.3 1.6 1.4 1.6 2.0 1.7 5.2 5.5
Total Revenue 25.5 25.7 26.6 27.5 27.8 28.3 29.3 29.3 29.8 31.4 31.6 105.3 114.7
Gross Margin 61.4% 61.5% 60.8% 62.4% 61.3% 61.4% 60.6% 61.4% 62.2% 62.3% 61.5% 61.5% 61.2%
Adj EBITDA 13.4 13.5 13.8 14.4 14.5 14.7 14.9 15.0 15.8 16.6 16.8 55.1 59.1
Adj EBITDA Margin 52.6% 52.5% 51.8% 52.2% 52.0% 52.1% 51.0% 51.1% 52.9% 52.9% 53.1% 52.3% 51.5%
CORPORATE�& OTHER
Adj EBITDA (7.6)�(7.5)�(7.5)�(7.5)�(8.0)�(8.0)�(7.8)�(7.8)�(8.5)�(8.7)�(8.7)�(30.2)�(31.6)
23
�
HISTORICAL OPERATING METRICS
2012 2013 2014
Space figures in square metres(1)
Power in MW(1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Equipped Space 64,800 65,300 69,600 74,000 78,100 78,900 79,300 80,100 82,900 86,000 88,600
Equipped Space added 2,000 500 4,300 4,400 4,100 800 400 800 2,800 3,100 2,600
Revenue Generating Space 47,500 48,600 51,200 56,200 57,000 58,200 59,100 59,700 61,400 64,300 68,500
RGS added 400 1,100 2,600 5,000 800 1,200 900 600 1,700 2,900 4,200
Utilisation (%)(2) 73% 74% 74% 76% 73% 74% 75% 75% 74% 75% 77%
Customer Available Power 60 62 73 79 79 81 81 82 86 90 96
Potential Customer Power 102 104 106 107 108 113 114 127 139 139 145
Data Centres in Operation 29 30 32 33 33 34 34 34 36 37 38
| (1) |
� |
All figures at the end of the period. |
| (2) |
� |
Utilisation as at the relevant date. |
24
�
SCHEDULED EQUIPPED SPACE ADDITIONS
2012 2013 2014E(2) 2015E(2)
Space figures in square
metres(1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4E Q1E Q2E Q3E Q4E
BIG 4
France 500 1,500 2,700 500 500
Germany 1,500 600 800 1,800 100 1,800
Netherlands(3) 1,700 3,700 (200)�1,100 1,000 1,500 1,300 700 1,300
UK 1,100 400 100 100
Subtotal 1,500 500 4,300 3,700 3,500 1,900 2,900 1,700 1,800 3,000 1,300
REST OF EUROPE
Austria 400 300 600 1,000 300 900
Belgium 300
Denmark 300
Ireland
Spain 200 600
Sweden 500 500 500 900 1,100
Switzerland 600 500 100
Subtotal 500 800 600 800 400 800 800 100 900 600 1,000 1,400 900
Total Additional
Equipped Space 2,000 500 4,300 4,400 4,100 800 400 800 2,800 3,100 2,600 2,400 4,000 2,700 900
| (1) |
� |
Figures rounded to nearest net 100 sqm for each country unless otherwise noted. |
(2) Future expansion additions based on announced schedule, which is subject to change; additions scheduled for the first half are noted in the second quarter and additions scheduled for the second half are noted in the fourth quarter.
| (3) |
� |
HIL1 space reduced in 1Q13 and 1Q15E. |
25
�
ADJUSTED NET PROFIT RECONCILIATION
Reconciliation to Adjusted Net Profit
2012 2013 2014 2012 2013
€ in millions (except as noted) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4(1) Q1 Q2 Q3 FY FY
Net Profit / (Loss) � as reported 8.7 8.7 8.6 5.6 7.0 6.6 (16.5)�9.8 10.4 8.3 9.0 31.6 6.8
Add back
+ Refinancing charges 31.0 0.6 31.0
+ Deferred tax asset adjustment 0.6 0.6
+ NL Crisis wage tax 1.9 0.4 1.9 0.4
+ Adjustment to onerous leases 0.8 0.8
2.7 31.6 0.4 0.6 2.7 32.0
Reverse
- Adjustment to onerous leases (0.8)
- Interest capitalised (2.4)�(2.8)�(2.7)�(1.3)�(0.7) (0.3) (0.3) (0.4) (0.8) (0.8) (1.3)�(9.2)�(1.7)
(2.4) (2.8)�(2.7)�(1.3)�(0.7) (0.3) (0.3) (0.4) (0.8) (1.6)�(1.3)�(9.2)�(1.7)
Tax effect of above add backs�& 0.6 0.7 0.7 (0.4) 0.2 0.1 (7.7)�0.2 0.3 0.3 1.6 (7.6)
reversals
Adjusted Net Profit 6.9 6.6 6.6 6.6 6.5 6.4 7.1 9.8 9.8 7.6 8.0 26.7 29.5
Reported Basic EPS (€) 0.13 0.13 0.13 0.08 0.10 0.10 (0.24) 0.14 0.15 0.12 0.13 0.47 0.10
Reported Diluted EPS (€) 0.13 0.13 0.12 0.08 0.10 0.10 (0.24) 0.14 0.15 0.12 0.13 0.46 0.10
Adjusted Basic EPS (€) 0.10 0.10 0.10 0.10 0.10 0.09 0.10 0.14 0.14 0.11 0.12 0.40 0.43
Adjusted Diluted EPS (€) 0.10 0.10 0.09 0.10 0.09 0.09 0.10 0.14 0.14 0.11 0.11 0.39 0.43
(1) With effect from Q4 2013, the company changed the estimated lives of certain data centre assets categories and applied this change on a prospective basis. In Q4 2013, the impact of the change had a €1.3�million after tax positive effect.
26
�
NON-IFRS RECONCILIATIONS
Reconciliation to Adjusted EBITDA
2009 2010 2011 2012 2013 2014
€ in millions (except as noted) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Net profit / (loss) 5.9 8.2 1.3 11.0 (4.7)�4.0 5.9 9.5 2.8 5.2 6.9 10.6 8.7 8.7 8.6 5.6 7.0 6.6 (16.5)(1)�9.8 10.4 8.3 9.0
Income tax expense / (benefit) 1.7 0.7 2.3 (5.4)�1.2 2.9 1.6 (3.2)�2.3 2.3 3.2 1.9 3.9 4.1 4.3 3.5 3.4 3.1 (4.1)�3.7 4.2 3.9 3.9
Profit / (loss) before taxation 7.6 8.9 3.6 5.7 (3.5)�6.9 7.5 6.3 5.1 7.5 10.1 12.6 12.6 12.9 12.8 9.1 10.3 9.7 (20.6)�13.4 14.6 12.2 12.8
Net finance expense 1.5 1.0 1.9 1.9 13.5 4.8 5.1 6.1 6.6 6.0 5.3 5.0 4.4 3.9 3.8 5.7 6.5 7.3 38.1(1) 5.6 5.4 7.5 7.0
Operating profit 9.1 9.8 5.5 7.5 10.0 11.7 12.6 12.4 11.7 13.5 15.3 17.5 17.1 16.7 16.6 14.8 16.8 17.1 17.5 19.0 20.0 19.7 19.8
Depreciation, amortisation and
impairments 4.6 5.0 5.6 6.8 7.2 7.5 7.8 8.6 8.5 9.6 9.1 8.4 9.7 10.2 11.0 13.1 14.0 14.9 15.2 13.5 14.0 14.9 16.0
EBITDA 13.8 14.8 11.1 14.3 17.2 19.2 20.4 21.0 20.3 23.1 24.4 25.9 26.7 27.0 27.6 27.8 30.8 32.0 32.7 32.5 34.0 34.6 35.9
Share-based payments 0.2 0.2 0.2 0.3 0.3 0.4 0.4 0.6 0.3 0.3 0.7 1.3 0.7 0.9 1.2 2.6 1.0 0.8 1.1 1.3 0.6 2.1 1.5
Increase/(decrease) in
provision 0.5 0.9 0.0 2.4 0.1 0.1 0.1 (0.1) 0.0 0.8 (0.8)
for onerous lease contracts
IPO transaction costs 1.7
Abandoned transaction costs 4.8
Income from sub-leases on (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.1) (0.1) (0.1)
unused data centre sites
Net insurance compensation (0.3)
benefit
Adjusted EBITDA 14.1 15.7 16.0 16.9 17.4 19.6 20.8 21.4 22.2 23.3 25.0 27.1 27.3 27.8 28.7 31.2 31.7 32.7 33.7 33.8 34.5 35.9 37.3
(1) Includes €31�million in one-time charges related to debt refinancing; see Adjusted Net Profit reconciliation elsewhere in this Appendix.
27
�
NON-IFRS RECONCILIATIONS
Reconciliation to Segment Adjusted EBITDA
2012 2013 2014
€ in millions Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
BIG 4
Operating profit 16.2 16.0 15.8 15.3 15.9 16.3 16.7 17.6 18.3 18.7 18.4
Depreciation, amortisation and impairments 5.3 5.8 6.5 8.1 9.1 9.8 9.8 8.7 8.9 9.5 10.5
EBITDA 21.5 21.8 22.3 23.4 25.0 26.1 26.5 26.3 27.2 28.3 28.9
Share-based payments 0.2 0.2 0.2 0.2 0.3 0.0 0.2 0.3 0.2 0.5 0.3
Increase/(decrease) in provision for onerous lease 0.8 (0.8)
contracts
Income from sub-leases on unused data centre sites (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.0) (0.1) (0.1) (0.1)
Adjusted EBITDA 21.6 21.8 22.4 24.3 25.2 26.0 26.6 26.6 27.3 27.9 29.2
ROE
Operating profit 9.7 9.5 9.8 10.0 10.2 10.2 10.2 10.8 11.5 11.8 11.9
Depreciation, amortisation and impairments 3.6 3.9 3.9 4.3 4.2 4.4 4.6 4.0 4.3 4.5 4.6
EBITDA 13.3 13.4 13.7 14.3 14.4 14.7 14.8 14.9 15.7 16.3 16.5
Share-based payments 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.3 0.3
Adjusted EBITDA 13.4 13.5 13.8 14.4 14.5 14.7 14.9 15.0 15.8 16.6 16.8
CORPORATE�& OTHER
Operating profit/(loss) (8.8)�(8.8)�(9.0)�(10.6)�(9.3)�(9.5)�(9.5)�(9.4)�(9.8)�(10.9)�(10.4)
Depreciation, amortisation and impairments 0.7 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.9
EBITDA (8.1)�(8.2)�(8.4)�(9.8)�(8.6)�(8.8)�(8.6)�(8.7)�(9.0)�(10.0)�(9.6)
Share-based payments 0.5 0.6 0.9 2.3 0.6 0.7 0.8 0.9 0.4 1.4 0.8
Adjusted EBITDA (7.6)�(7.5)�(7.5)�(7.5)�(8.0)�(8.0)�(7.8)�(7.8)�(8.5)�(8.7)�(8.7)
28
�
DEFINITIONS
Adjusted EBITDA: EBITDA is defined as operating profit plus depreciation, amortisation and impairment of assets. We define Adjusted EBITDA as EBITDA adjusted to exclude share-based payments, increase/decrease in provision for onerous lease contracts, IPO transaction costs, abandoned transaction costs, income from subleases on unused data centre sites and net insurance compensation benefit.
Adjusted diluted earnings per share: Adjusted diluted earnings per share amounts are determined on Adjusted net profit.
Adjusted net profit: Net profit/loss excluding the impact of the refinancing charges, deferred tax adjustments, Dutch crisis tax, adjustments to onerous leases, capitalised interest, and the related corporate income tax effect.
ARPU: Average revenue per unit
Big 4: France, Germany, the Netherlands, and the UK CAGR: Compound Annual Growth Rate
Capital expenditures including intangible assets: represent payments to acquire property, plant�& equipment and intangible assets as recorded on our consolidated statement of cash flows as �Purchase of property, plant and equipment� and �Purchase of intangible assets�, respectively. Investments in intangibles assets include power grid rights and software development.
Cash ROGIC: Cash Return on Gross Invested Capital (Cash ROGIC) defined as (Adjusted EBITDA less maintenance and other capex) divided by {Average of opening and closing (gross PP&E plus gross intangible assets plus gross goodwill)}.
Corporate and Other: Unallocated items comprised of mainly general and administrative expenses, assets and liabilities associated with our headquarters operations, provisions for onerous contracts (relating to the discounted amount of future losses expected to be incurred in respect of unused data centre sites over the term of the relevant leases) and revenue and expenses related to those onerous contracts, loans and borrowings and related expenses and income tax assets and liabilities. CDNs: Content Distribution Networks Churn: contracted Monthly Recurring Revenue which came to an end during the month as a percentage of the total contracted Monthly Recurring Revenue at the beginning of the month.
Customer Available Power: the current installed electrical customer capacity.
Equipped Space: the amount of data centre space that, on the relevant date, is equipped and either sold or could be sold, without making any significant additional investments to common infrastructure.
IAAS: Infrastructure as a Service
LTM: Last Twelve Months ended 30�September 2014, unless otherwise noted. MW: Megawatts PAAS: Platform as a Service SAAS: Software as a Service SQM: Square metres
Recurring Revenue: revenue that is incurred from colocation and associated power charges, office space, amortised set-Grew fees and certain recurring managed services (but excluding any ad hoc managed services) provided by us directly or through third parties. Rents received for the sublease of unused sites are excluded. Rest of Europe / ROE: Austria, Belgium, Denmark, Ireland, Spain, Sweden, and Switzerland.
Revenue Generating Space: the amount of Equipped Space that is under contract and billed on the relevant date.
Utilisation Rate: on the relevant date, Revenue Generating Space as a percentage of Equipped Space. Some Equipped Space is not fully utilised due to customers� specific requirements regarding the layout of their equipment. In practice, therefore, Utilisation Rate does not reach 100%.
YTM: Yield to maturity
29
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