Q4 & FY 2016 Results February 10, 2017
Agenda David de Buck (CEO): Introduction to Maarten de Vries, CFO Highlights Q4, Elian Update Maarten de Vries (CFO): Basis of Reporting and Segmentation Financial update, focus on jurisdictions Guidance Q&A 2 2
Introduction – Maarten Jan de Vries Background Corporate experience > Personal information: > 2014 – 12/2016 TNT Express - Name: Maarten Jan de Vries - Hoofddorp, the Netherlands - Date of birth: 17 January 1962 - CFO and Executive Board Member - Nationality: Dutch > 2011 – 2014 TP Vision (TPV Technology) > Education: - Amsterdam, the Netherlands. Listed in Hong Kong - 1987 – 1989 Vrije University of Amsterdam: - CEO, Television Joint Venture between TPV and Post-Graduate Education for Controllership Phillips. Revenue (2014): EUR 2.6 billion - 1980-1986 University of Groningen: > 1986 – 2011 Royal Philips Electronics Masters Degree, Faculty for Business Economics - Amsterdam, the Netherlands - Member Group Management Committee (including Chief Supply Officer and Chief Information Officer) and other Finance roles including divisional CFO - Of which 10 years based in Taiwan/Asia 3
Highlights Q4 2016 Revenue and Adjusted EBITA Intertrust Group Underlying 2 Intertrust revenue for Q4 increased by 4.0% yoy in CC 1 +36.8% Margin % Luxembourg Q4 revenue was up sharply 41.4% 39.9% reflecting clearance of the Q3 backlog by new 120.7 employees +31.1% 91.5 Cayman outflow of entities over Q4 slowed, loss ( € m) of revenue decelerated versus Q3 48.1 37.9 Adjusted EBITA margin reflects consolidation of Elian while underlying 2 EBITA margin unchanged Adjusted FY 2016 EPS of € 1.27 (incl. full year Q4 2015 Q4 2016 Q4 2015 Q4 2016 Elian contribution, adjusted net income per share of € 1.44) 3 Revenue Adj. EBITA Notes 1. CC refers to constant currency 4 2. Underlying: Intertrust standalone (excl. Elian) at constant currency and, for FY, incl. Jan-Jun 2015 CorpNordic figures 4 3. Based on management estimates
Elian update Revenue and Adjusted EBITA Elian Margin % Now leading service provider in Jersey, added 34.1% scale in Ireland, UK and Cayman Since Sept 23, 2016 revenue contribution of 28.5 € 28.5 million and Adjusted EBITA of € 9.7 million ( € m) Integration on track: Target Operating Model, Leadership, Office moves, SFM (Spain) 9.7 remaining JV stake acquired Feb 2017 Management estimates Elian FY 2016 revenue of FY 2016 FY 2016 £92.2 million and EBITA of £30.4 million slightly below initial estimates Revenue Adj. EBITA Strong growth for Capital Markets business but Q4 2016 FY 2016 Jersey impacted by Brexit uncertainty Adjusted revenue ( € m) 26.9 28.5 Management estimates Elian revenue grew at high single digit rates for the FY 2016 Adjusted EBITA margin 34.1% 34.1% Number of entities 14,031 FTE 606 5 5
Basis of reporting and segmentation Q4 and FY 2016 Group figures include Elian as of September 23, 2016 Additionally, Q4 & FY 2016 Intertrust is reported standalone (excluding Elian). Guernsey will be shown separately for the last time in this reporting period Underlying: Intertrust standalone (excluding Elian) at constant currency and, for full year, including Jan-Jun 2015 CorpNordic figures As of Q1 2017, Intertrust Group will use the following segmentation: The Netherlands • Luxembourg • Jersey • Cayman Islands • Rest of World (ROW) • Guernsey will become part of ROW and will not be broken out • 6 6
Financial Highlights Q4 2016 As reported Adjusted ( € m) Q4 2016 1 Q4 2015 % change Q4 2016 1 Q4 2015 % change Revenue 120.7 91.6 31.9% 120.7 91.5 32.0% EBITA 40.2 38.0 5.8% 48.1 37.9 27.1% EBITA Margin (%) 33.3% 41.5% -819bps 39.9% 41.4% -153 bps Net Income 15.9 n/a 35.5 n/a Earnings per share 2 0.17 n/a 0.39 n/a Cash from operating activities 51.6 37.7 36.9% Q4 revenue of € 120.7 million grew 31.9% yoy including Elian. Underlying 3 revenue grew 4.0% driven by added-value services Luxembourg Q4 revenue increased as sufficient employees were in place to absorb market growth and address Q3 backlog Cayman standalone revenue declined 10.2% in Q4 yoy but entity outflow slowed during Q4 and continued to show improvement in the beginning of 2017 Elian contributed € 26.9 million in revenue and € 9.2 million in adjusted EBITA over Q4 Standalone adjusted EBITA margins were stable while Group adjusted EBITA decreased, reflecting Elian's lower margin profile An interim dividend of € 22.1 million was paid out in November 2016 7 Notes 1. Q4 2016 includes Elian 7 2. Average number of shares for Q4: 91,995,836 3. Underlying: Intertrust standalone (excl. Elian) at constant currency and, for FY, incl. Jan-Jun 2015 CorpNordic figures
Financial Highlights FY 2016 As reported Adjusted ( € m) FY 2016 1 FY 2015 % change FY 2016 1 FY 2015 % change Revenue 385.8 344.6 11.9% 385.8 344.9 11.9% EBITA 135.9 137.4 -1.1% 153.8 140.4 9.5% EBITA Margin (%) 35.2% 39.9% -464bps 39.9% 40.7% -85 bps Net Income 52.0 2.6 113.2 101.4 Earnings per share 2 0.58 0.12 1.27 1.19 6.9% Cash from operating activities 152.4 127.5 19.5% FY 2016 revenue grew 11.9% to € 385.8 million. Underlying 3 group revenue grew by 3.0%, in Luxembourg (7.4%) and Netherlands (4.3%), but impacted by Cayman (-10.6% CC) EBITA for the year was lower due to inclusion of € 17.9 million in one-off costs related to Elian acquisition No. of entities worldwide (standalone) decreased by 5.4% in 2016. Underlying ARPE grew 8.9% due to mix and higher added- value services FTEs increased to 2,359 (including Elian). 75.4% billable FTEs at year-end 2016 Cash from operating activities was € 152.4 million Net Income was € 52.0 million or € 113.2 million on an adjusted basis (see slide 23 for adjustments) 8 Notes 1. FY 2016 includes Elian as of September 23, 2016 8 2. Average number of shares for FY 2016: 88,942,943 3. Underlying: Intertrust standalone (excl. Elian) at constant currency and, for FY, incl. Jan-Jun 2015 CorpNordic figures
Revenue bridge FY 2015 to FY 2016 Underlying 1 FY 16 yoy % growth +4.3% +7.4% -10.6% +11.9% +3.9% +3.0% +11.9% Q4 16 yoy % growth +0.8% +17.7% -10.2% +20.2% +0.9% +4.0% +31.9% 28.5 385.8 8.3 357.3 5.6 4.8 344.9 6.1 0.2 Intertrust 2015 SA Netherlands Luxembourg Cayman Guernsey RoW Intertrust 2016 SA Elian Intertrust 2016 Adjusted Reported 1 . Underlying: Intertrust standalone (excl. Elian) at constant currency and, for FY, incl. Jan-Jun 2015 CorpNordic figures = reported 9 +x.x% +xx.x%
Adjusted EBITA bridge FY 2015 to FY 2016 Underlying 1 FY 16 margin % 64.0% 53.4% 58.0% 38.2% 32.0% 40.3% 34.1% 39.9% Q4 16 margin % 62.8% 58.4% 60.3% 36.1% 29.9% 41.5% 34.1% 39.9% 9.7 153.8 3.3 5.4 3.0 0.4 144.0 140.4 4.7 3.9 Intertrust 2015 SA Netherlands Luxembourg Cayman Guernsey RoW HQ & IT costs Intertrust 2016 SA Elian Intertrust 2016 1 . Underlying: Intertrust standalone (excl. Elian) at constant currency and, for FY, incl. Jan-Jun 2015 CorpNordic figures = adjusted 10 +x.x% +xx.x%
Intertrust standalone Entities & ARPE development Entities (000) ARPE 1 ( € k) 9.5% Total growth -5.4% 8.9% Underlying Total growth 2 growth 9.4 40.1 8.6 37.9 34 FY 2015 FY 2016 FY 2015 FY 2016 37,907 entities at year end 2016 Net outflow of 2,158 (-5.4%) entities over the last twelve months Main reasons for outflows were end-of-life, portfolio optimisation and loss to competition Majority of inflow from existing clients Notes 1. Average revenue per entity ("ARPE") 11 2. Underlying: Intertrust standalone (excl. Elian) at constant currency and, for FY, incl. Jan-Jun 2015 CorpNordic figures 11
Cash development Capex ( € m) Cash Conversion Ratio & Cash from operating activities ( € m) 1 Cash from Maintenance 1.9 4.4 9.0 37.7 51.6 127.6 152.4 4.4 Capex ( € m) operating activities ( € m) Strategic 1.6 0.5 6.5 2.3 Capex ( € m) 97.0% 95.3% 94.5% 2 Cash 91.4% 11.3 conversion 10.9 ratio 4.9 3.5 Q4 2015 Q4 2016 FY 2015 FY 2016 Q4 2015 Q4 2016 FY 2015 FY 2016 Cash from operating activities was € 152.4 million FY 2016 cash conversion ratio, excluding strategic capital expenditures, remains strong at 94.5% Total capital expenditure for FY 2016 was € 11.3 million Increase in maintenance capex in Q4 2016 versus Q4 2015 was driven by additional IT infrastructure projects 1. Cash from operating activities as reported 2. Cash conversion ratio = Adjusted EBITDA minus maintenance CAPEX, taken as a percentage of Adjusted EBITDA 12 12
Recommend
More recommend
