Q1 2016 Results - Intertrust

Q1 2016 Results - Intertrust

Q1 2016 Results April 21, 2016 2016 Highlights (€m) Financial highlights Q1 2016 Adj. revenue1 87.9 Total growth2 7.7% Proforma growth at con...

647KB Sizes 0 Downloads 17 Views

Recommend Documents

Annual Report 2016 - Intertrust
Mar 31, 2017 - In response to the Panama Papers media reports, Intertrust conducted additional compliance portfolio revi

Management Presentation Q1 2017 results
May 4, 2017 - growing contributions from TV and Media and sound EBITDA ... Focus on retail, captive, Media Markt/Saturn

dream global reit reports q1 2016 financial results with continued
May 4, 2016 - Ms. Lawson joins us from Starlight Investments Ltd. where she has been the CFO since 2012 and brings over

Marketo Hacks Q1 2016 Release: Anonymous Leads - Definitive Results
The upgrade to Anonymous leads is a two-step process. 1. Part 1 (Winter Release) – o The “Is Anonymous” filter has

Q1 2016 10-Q
Feb 2, 2016 - Capital expenditures included in accounts payable and accruals at end of period ..... prior to the closing

VETLANTA Q1 2016 Summit
Feb 9, 2016 - Every employee Veteran received a challenge coin. - Storyboards at HQ to recognize veteran employees & fam

Q1 2016 - OPW
EBRINGTON NI LTD T/A. Horticultural. 23,451.36. 0050177263. WS ATKINS IRELAND LIMITED. Struc Eng Services. 25,765.72. 00

Q1 2016 - MPM Properties
Guest arrivals into Abu Dhabi are up by 10% in Q1 2016. YTD vs. Q1 2015 YTD. ..... market over the last 18 months, (prio

Intertrust CLO Services
Global Collateralized Loan Obligation Services (CLO). Intertrust operates with over 1,700 professionals from more than 2

Blanc document - Intertrust
Feb 1, 2016 - David de Buck, CEO Intertrust Group, said: “Johan's drive for personal ... 2005, and the Regional Head o

Q1 2016 Results April 21, 2016

2016 Highlights (€m)

Financial highlights

Q1 2016

Adj. revenue1

87.9

Total growth2

7.7%

Proforma growth at constant currency3

3.8%

Adj. EBITA1

36.0

Margin (%)

40.9%

Cash flow conversion4

96.3%

Net Adjusted Income Per Share5 (€)

0.30

Opening of Sales office in Chicago in January 2016 in line with strategy of proximity to our clients. CorpNordic operational integration is completed and realization of annualized synergies in excess of €0.9M is on track.

Highlights

Rest of World saw strong revenue growth in particular, Singapore, Spain, the UK and Ireland, combined with attractive ARPE growth. Ireland AIFMD ManCo services signed-on launching customers for five funds. Completed roll-out of the Business Application Roadmap IT project.

Notes 1. Adjusted financials before specific items and one-off revenues/expenses 2. Total growth of adjusted financials 3. Proforma including CorpNordic contribution Jan to Mar 2015

4. Cash conversion ratio excluding strategic capex 5. Adjusted net income divided by the number of shares outstanding as of March 31, 2016 of 85,221,614

2

Continuing to deliver on our objectives What is our guidance?

Metric

Q1 16 YTD results

Revenue growth

+7.7% (y-o-y) 

Adj. revenue1

“Continue historical trends and aim for slightly above market growth”

Revenue growth at CC

+7.7% (y-o-y) 

Proforma revenue growth at CC2

+3.8% (y-o-y)

Adj. EBITA growth

+6.8% (y-o-y)



 Adj. EBITA1

“Continued adj. EBITA progression”

Adj. EBITA growth at CC

+6.5% (y-o-y) 

Cash

Notes: 1. 2. 3.

“Continued high cash conversion”

Proforma Adj. EBITA growth at CC2

+4.5% (y-o-y)

Cash conversion3

96.3% (98.1% Q1 15)



 Adjusted financials before specific items and one-off revenues/expenses Proforma including CorpNordic contribution Jan to Mar 2015 Cash conversion = OpFCF / Adjusted EBITDA, where OpFCF = Adjusted EBITDA – Maintenance Capex

3

Group trading update – March YTD 2016 Q1 2016 margin improvement of 24.8 bps in constant currency versus Q1 2015 proforma EBITA margin of 40.6%

Adj. Revenue and Adj. EBITA (Actual growth) Margin %

41.3%

Key performance indicators

40.9%

(€m)

Q1 2015

81.6

33.7

YTD 2015

YTD 2016 Revenue

Total Revenue Growth

7.7%

Proforma Revenue Growth in CC1

3.8%

# of entities (k)

40.9

39.2

ARPE (€k)

8.02

9.02

ARPE Growth

87.9

YTD 2015

36.0

YTD 2016

Q1 2016

12.3%

FTE

1568.5

1737.4

Revenue / FTE (€k)

208.12

202.32

EBITA / FTE (€k)

85.92

82.82

Adj. EBITA

Adj. Revenue growth was impacted by less available billable hours. YTD annualised ARPE increased by 12.3% to €9.0 thousand (YTD March 31, 2015: €8.0 thousand). We continue to see additional hours per entity due to more complex structures, regulatory reporting requirements and our focus on higher value-added entities. In addition, increased ARPE was partially driven by the outflow of lower valued registered office entities in Cayman.

1. 2.

Proforma including CorpNordic contribution for the period January to March 2015. CC refers to constant currency Annualised numbers

4

Significant increase in ARPE while number of entities are impacted by expected outflows in Cayman ARPE1,2 (€k)

Entities -4.1%

Total growth3

12.3%

Total growth3

9.0 8.0

40.9 39.2

38 March 15

March 15

March 16

March 16

As of Q1 2016, we had 39,227 entities, a net outflow of 1,684 entities over the last twelve months mainly due to the re-entry of a competitor in Cayman (2,370 entities lost of which 1,026 in 2016) partially compensated by the increase of entities due to the CorpNordic acquisition.

Notes: 1. 2.

Average revenue per entity ("ARPE") Annualised numbers based on adjusted revenue before specific items and one-off revenue/expenses

3.

Including CorpNordic

5

FTE growth to support new business Revenue per FTE1,2 (€k)

FTEs 10.8%

Total growth3

1800 1780 1760 1740 1720 1700 1680 1660 1640 1620 1600 1580 1560 1540 1520 1500 1480 1460 1440 1420 1400 1380 1360 1340 1320 1300 1280 1260 1240 1220 1200 1180 1160 1140 1120 1100

-2.8%

Total growth3

1,737 208.1

1,569

March 15

202.3

YTD March 15

March 16

YTD March 16

Net increase of 169 FTEs over the period: +135 billable FTEs (of which 58 FTEs from the CorpNordic acquisition) mainly in the Netherlands and Luxembourg to support business growth +34 non-billable FTEs (of which 13 FTEs from the CorpNordic acquisition and 15 IT FTEs to support IT initiatives) During Q1 2016, the number of FTEs increased by 23 FTEs (19 billable FTEs and 4 non-billable FTEs) Ratio of Billable / Non Billable FTEs continues to be 75% / 25%

Notes: 1. 2.

Full-time employees Annualised numbers based on adjusted revenue before specific items and one-off revenue/expenses

3.

Including CorpNordic

6

Adjusted Revenue per country Q1 2016 vs Q1 2015

In €m

28.6

27.1

18.4

19.9

18.8

Q1 15 Q1 16

15.1 13.7

13.3

7.3

Netherlands

Luxembourg

Cayman

7.2

Guernsey

RoW

7

Cash conversion remains strong Cash conversion¹ OpFCF² (€m)

34.7

98.1%

Q1 15

Capex (€m)

36.5

Maintenance Capex (€m)

0.7

1.4

Strategic Capex (€m)

1.7

0.6

96.3%

Q1 16

2.3

2.0

Q1 15

Q1 16

Total capital expenditure for the quarter was €2.0 million (Q1 2015: €2.3 million); €0.6 million (Q1 2015 €1.7 million) of which represented one-off strategic capital expenditure resulting from the implementation of the Business Application Roadmap, a company-wide standard software application platform. Increase in maintenance capex versus previous year was driven by timing of hardware replacemen t and the initial phases of the implementation to outsource the datacentres.

Notes: 1. 2.

Cash conversion = OpFCF / Adj. EBITDA OpFCF = Adj. EBITDA – Maintenance Capex

8

Medium term objectives Intertrust expects Adjusted net income per share for the full year 2016 to be a minimum of €1.30 Interest costs full year 2016 – expected to be a total of €18.7 million of which €3.7 million is related to amortization of financing fees (non-cash)

Intertrust is keeping cash on its balance sheet to maintain flexibility for acquisitions For medium term, management aspires slightly above organic market growth which is estimated to be 5% CAGR between 2015-2018

Medium term outlook and objectives

Adj EBITA margin: further margin improvement over the 2015 proforma EBITA margin of 40.4% by 200 - 250 bps by 2018 supported by operating leverage and productivity improvements including LTIP (2016 - €1.5 million, 2017 - €3.5 million, 2018 - €5.5 million) slightly impacted by structurally increased IT expenses due to transition to SaaS1 and IaaS2 partially offset by decreased IT capex Cash conversion – in line with historical rates Maintenance / normalized capex marginally below historical levels Effective tax rate of ~18%

Target steady-state debt ratios : 2-2.5 times EBITDA, temporary increase for potential M&A

Target dividend in the range of 40% to 50% of Adjusted net income3

Dividend policy

Dividends to be paid in semi-annual installments First interim payment expected in Q4 2016 for the year ending December 31, 2016

Notes: 1. Software as a Service 2. Infrastructure as a Service 3. Adjusted net income calculated as adjusted EBITA less net interest cost, less tax cost calculated at effective tax rate

9

Appendix

Unaudited Income statement Income statement (€m)

Adjustments (€m) Q1 2015

Q1 2016

81.2

87.9

(35.2)

(38.8)

Revenue Staff expenses thereof equity share-based payments upon IPO

-

(1.0)

Rental expenses

(4.0)

(4.5)

Other operating expenses

(8.4)

(8.3)

thereof transaction & monitoring costs

(0.4)

thereof integration costs

(0.6)

Other operating income

(0.5) -

-

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

33.5

36.3

Depreciation and amortisation

(9.1)

(9.6)

(Profit/(loss) from operating activities

24.5

26.8

-

-

(19.9)

(5.1)

-

-

(19.9)

(5.1)

4.5

21.6

(1.5)

(5.7)

3.0

15.9

Finance income Finance costs Share of profit of equity-accounted investees (net of tax) Net finance costs (Profit/(loss) before income tax Income tax Profit/(loss) from continuing operations

Q1 2015

Q1 2016

33.5

36.3

Transaction & Monitoring costs

0.4

-

Integration costs

0.6

0.5

Other operating (income)/expense

-

-

Equity share based payments upon IPO

-

1.0

One-off revenue

0.3

-

One-off expenses

0.5

0.1

Adjusted EBITDA

35.4

37.9

Depreciation and software amortisation

(1.7)

(2.0)

Adjusted EBITA

33.7

36.0

Adjusted Revenue

81.6

87.9

Earnings before interest, taxes, depreciation and amortisation (EBITDA)

11

Q1 2016 Unaudited Reported and Adjusted Net Income Reported net income (€m) Q1 2016 Reported EBITDA

36.3

Depreciation and software amortization

(2.0)

Amortization of (PPA related) intangibles

(7.6)

Net finance costs

(5.1)

Profit before tax

21.6

Income tax

(5.7)

Q1 2016 Reported Net Income

15.9

Adjusted net income (€m)

Adjustments

Q1 2016 Adjusted EBITDA

37.9

Depreciation

(2.0)

Adjusted EBITA

36.0

Amortization of (PPA related) intangibles

-

Net Interest costs

(4.7)

Profit before tax

31.3

Income tax

(5.7)

Q1 2016 Adjusted Net Income

25.5

Q1 2016 Adjusted Net Income per shares

0.30

Excluding non-recurring items and equity share based payments upon IPO

Acquisition related amortisation excluded from Adjusted Net Income definition Excluding Forex gains and losses of 0.4 €m

Reported Income tax

85,221,614 Shares as per Q1 2016

12