EX-99.1 2 d787712dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Press Release, 7 August 2019

Interxion Reports Second Quarter 2019 Results

Revenue Growth of 14% Year Over Year

Demand Drives New Investments in Frankfurt, Paris, Marseille and Stockholm

AMSTERDAM 7 August 2019 – Interxion Holding NV (NYSE: INXN), a leading European provider of carrier and cloud-neutral colocation data centre services, today announced its results for the three-month period ended 30 June 2019 and further investments in four markets.

Financial Highlights

 

   

Revenue increased by 14% to €158.5 million (2Q 2018: €138.8 million).

 

   

Recurring revenue(1) increased by 14% to €150.0 million (2Q 2018: €131.7 million).

 

   

Net income increased by €8.0 million to €8.6 million (2Q 2018: €0.6 million).

 

   

Adjusted net income(1) decreased by 16% to €7.5 million (2Q 2018: €8.9 million).

 

   

Diluted earnings per share increased by €0.11 to €0.12 (2Q 2018: €0.01).

 

   

Adjusted diluted earnings per share(1) decreased by 16% to €0.10 (2Q 2018: €0.12).

 

   

Adjusted EBITDA(1) increased by 26% to €80.2 million (2Q 2018: €63.4 million).

 

   

Adjusted EBITDA margin(1) increased to 50.6% (2Q 2018: 45.7%).

 

   

Capital expenditure, including intangible assets(2), were €123.5 million (2Q 2018: €120.5 million).

 

1 

All of the following items are non-IFRS measures intended to adjust for certain items and are not measures of financial performance under IFRS: “Adjusted EBITDA”, “Adjusted EBITDA margin”, “Adjusted EBITDA excluding the impact of IFRS 16”, “Adjusted EBITDA margin excluding the impact of IFRS 16”, “Recurring revenue”, “Revenue on a constant currency basis”, “Adjusted net income”, “Adjusted basic earnings per share”, “Adjusted diluted earnings per share” and “Cash generated from operations”. Complete definitions can be found in the “Non-IFRS Financial Measures” section in this press release. Reconciliations of Net income to Adjusted EBITDA, Adjusted EBITDA to Adjusted EBITDA excluding the impact of IFRS 16, Net income to Adjusted net income and Revenue to Recurring revenue, can be found in the financial tables later in this press release.

2 

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.

 

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Press Release, 7 August 2019

 

Operating Highlights

 

   

Equipped space(3) increased by 6,500 square metres (“sqm”) during the quarter to 154,800 sqm metres.

 

   

Revenue generating space(4) increased by 2,600 sqm during the quarter to 121,600 sqm.

 

   

Utilisation rate(5) at the end of the quarter was 79%.

 

   

During the second quarter, Interxion completed the following capacity additions:

 

   

2,000 sqm in Vienna;

 

   

1,300 sqm in Madrid;

 

   

1,100 sqm in Marseille;

 

   

800 sqm in Stockholm;

 

   

600 sqm in London;

 

   

400 sqm in Paris; and

 

   

300 sqm in Dusseldorf.

 

 

3 

Equipped space is the amount of data centre space that, on the date indicated, is equipped and either sold or could be sold, without making any significant additional investments to common infrastructure.

4 

Revenue generating space is the amount of Equipped space that is under contract and billed on the date indicated.

5 

Utilisation rate represents Revenue generating space as a percentage of Equipped space.

 

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“As reflected in the solid second quarter results, Interxion continues to experience favourable demand, driven primarily by the cloud and content platform providers,” said David Ruberg, Interxion’s Chief Executive Officer. “In response to customer demand and orders, we are announcing today incremental investments in Frankfurt, Paris, Marseille and Stockholm. Our recent equity issuance and credit rating upgrade support our ongoing expansion activity, with a focus on sustaining our attractive returns.”

Quarterly Review

As previously noted, the implementation of International Financial Reporting Standard 16 - Leases (“IFRS 16”) on 1 January 2019 reclassified certain expense items, thus impacting the comparability of our results to periods prior to the implementation of IFRS 16. This accounting change had no impact on our revenues or underlying net cash flows. A reconciliation from Adjusted EBITDA and Adjusted EBITDA margin reported after giving effect to IFRS 16 to corresponding measures excluding the impact of IFRS 16 are provided later in this press release.

Revenue in the second quarter of 2019 was €158.5 million, a 14% increase over the second quarter of 2018 and a 5% increase over the first quarter of 2019. Recurring revenue was €150.0 million, a 14% increase over the second quarter of 2018 and a 3% increase over the first quarter of 2019. Recurring revenue in the second quarter represented 95% of total revenue. On a constant currency(6) basis, revenue in the second quarter of 2019 was 14% higher than in the second quarter of 2018.

Cost of sales in the second quarter of 2019 was €54.7 million, a 2% increase over the second quarter of 2018 and a 9% increase over the first quarter of 2019.

Gross profit was €103.7 million in the second quarter of 2019, a 22% increase over the second quarter of 2018 and a 3% increase over the first quarter of 2019. Gross profit margin was 65.5% in the second quarter of 2019, compared with 61.3% in the second quarter of 2018 and 66.7% in the first quarter of 2019.

 

 

6 

We present constant currency information to assess how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than Euro are converted into Euro using the average exchange rates from the prior period rather than the actual exchange rates in effect during the current period.

 

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Sales and marketing costs in the second quarter of 2019 were €9.4 million, a 2% decrease over the second quarter of 2018 and a 3% increase over the first quarter of 2019.

General and administrative costs, excluding the items we adjust for in the determination of Adjusted EBITDA, were €14.2 million in the second quarter of 2019, a 17% increase over the second quarter of 2018 and a 4% decrease from the first quarter of 2019.

Depreciation and amortisation in the second quarter of 2019 were €44.3 million, a 38% increase over the second quarter of 2018 and a 6% increase over the first quarter of 2019.

Operating income in the second quarter of 2019 was €29.6 million, an increase of 12% over the second quarter of 2018 and a 1% decrease from the first quarter of 2019.

Net finance expense for the second quarter of 2019 was €17.1 million, a 25% decrease from the second quarter of 2018 and a 3% increase over the first quarter of 2019.

Income tax expense for the second quarter of 2019 was €3.6 million, a 30% increase over the second quarter of 2018 and a 24% decrease from the first quarter of 2019.

Net income was €8.6 million in the second quarter of 2019, an €8.0 million increase over the second quarter of 2018 and a 3% increase from the first quarter of 2019.

Adjusted net income was €7.5 million in the second quarter of 2019, a 16% decrease from the second quarter of 2018 and a 6% increase from the first quarter of 2019.

Adjusted EBITDA for the second quarter of 2019 was €80.2 million, a 26% increase over the second quarter of 2018 and a 4% increase over the first quarter of 2019. Adjusted EBITDA margin was 50.6% in the second quarter of 2019 compared to 45.7% in the second quarter of 2018 and 51.0% in the first quarter of 2019.

Adjusted EBITDA excluding the effects of IFRS 16 for the second quarter was €71.5 million, a 13% increase over the second quarter of 2018 and a 3% increase over the first quarter of 2019. Adjusted EBITDA margin excluding the effects of IFRS 16 in the second quarter of 2019, was 45.1%, compared to 45.7% in the second quarter of 2018 and 45.7% in the first quarter of 2019.

 

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Net cash flows from operating activities in the second quarter of 2019 were €35.8 million compared to €31.6 million in the second quarter of 2018 and €71.3 million in the first quarter of 2019.

Cash generated from operations(1) in the second quarter of 2019 was €71.8 million compared to €55.1 million in the second quarter of 2018 and €79.9 million in the first quarter of 2019.

Capital expenditure, including intangible assets, in the second quarter of 2019 were €123.5 million compared with €120.5 million in the second quarter of 2018 and €144.1 million in the first quarter of 2019.

Cash and cash equivalents were €55.6 million at 30 June 2019, compared with €186.1 million at year end 2018.

Total borrowings and lease liabilities net of cash and cash equivalents were €1,672.2 million in aggregate at 30 June 2019, compared with €1,104.1 million at 31 December 2018. Excluding lease liabilities, total borrowings were €1,276.7 million at 30 June 2019, compared with €1,239.8 million at 31 December 2018.

As at 30 June 2019, €40 million was drawn under Interxion’s €300 million unsecured revolving credit facility. The full amount was repaid after the end of the quarter.

On 1 July 2019, Interxion issued 4.6 million ordinary shares in a public offering generating net proceeds of €283.2 million.

Equipped space at the end of the second quarter of 2019 was 154,800 square metres, compared to 132,600 square metres at the end of the second quarter of 2018 and 148,300 square metres at the end of the first quarter of 2019. Revenue generating space at the end of the second quarter of 2019 was 121,600 square metres, compared to 106,200 square metres at the end of the second quarter of 2018 and 119,000 square metres at the end of the first quarter of 2019. Utilisation rate, the ratio of revenue

 

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generating space to equipped space, was 79% at the end of the second quarter of 2019, compared to 80% at the end of the second quarter of 2018 and 80% at the end of the first quarter of 2019.

Investment Initiatives in Frankfurt, Marseille, Stockholm and Paris

In response to continued customer demand and orders, Interxion will expand existing data centres in Frankfurt and Marseille and construct a new data centre in Stockholm (“STO6”). Additionally, Interxion has added to its land ownership in Paris.

In Frankfurt, Interxion will add capacity in its FRA15 data centre by constructing Phases 3 and 4. These phases will add an additional 4,700 square metres of equipped space and are scheduled to open in 3Q 2021. The capital expenditure associated with the final two phases of FRA15 is expected to be approximately €40 million.

In Marseille, Interxion will construct the second phase of its MRS3 data centre. This phase will provide approximately 2,400 sqm of equipped space and is scheduled to open in 3Q 2020. The capital expenditure associated with this phase of MRS3 is expected to be approximately €31 million.

In Stockholm, STO6 will be constructed in four phases, delivering a total of 3,300 sqm of equipped space and 5 megawatts (“MW”) of customer available power when fully built out. The first phase of STO6, which is expected to provide approximately 500 sqm, is scheduled to open in 2Q 2020. The second phase is expected to provide approximately 600 sqm and is scheduled to open in 4Q 2020. The capital expenditure associated with the first two phases of STO6 is expected to be approximately €21 million.

In Paris, Interxion completed the acquisition of the land on which its PAR7 data centre is located, for €19 million. The PAR7 site is adjacent to additional land of 68,000 sqm, over which we have a purchase option. This site has an industrial zoning rating and access to 50 MW of available power.

 

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Business Outlook

Interxion today is reaffirming guidance for Revenue, Adjusted EBITDA and Capital expenditure (including intangibles) for full year 2019:

 

Revenue

   €632 million – €647 million   

Adjusted EBITDA

   €324 million – €334 million   

Capital expenditure (including intangibles)

   €570 million – €600 million   

Conference Call to Discuss Results

Interxion will host a conference call today at 8:30 a.m. ET (1:30 p.m. BST, 2:30 p.m. CET) to discuss the results.

To participate on this call, U.S. callers may dial toll free 1-866-966-1396; callers outside the U.S. may dial direct +44 (0) 2071 928 000. The conference ID for this call is INXN. This event also will 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 21 August 2019. To access the replay, U.S. callers may dial toll free 1-866-331-1332; callers outside the U.S. may dial direct +44 (0) 3333 009 785. The replay access number is 3364477.

Forward-looking Statements

This communication contains forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such forward-looking statements. Factors that could cause actual results and future events to differ materially from Interxion’s expectations include, but are not limited to, the difficulty of reducing operating expenses in the short term, the inability to utilise the

 

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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, delays in remediating the material weakness in internal control over financial reporting and/or making disclosure controls and procedures effective, certain other risks detailed herein and other risks described from time to time in Interxion’s filings with the United States Securities and Exchange Commission (the “SEC”).

Interxion does not assume any obligation to update the forward-looking information contained in this press release.

Non-IFRS Financial Measures

These materials include non-IFRS financial measures and ratios, including (i) Adjusted EBITDA; (ii) Adjusted EBITDA margin, (iii) Adjusted EBITDA excluding the impact of IFRS 16; (iv) Adjusted EBITDA margin excluding the impact of IFRS 16; (v) Recurring revenue; (vi) Revenue on a constant currency basis; (vii) Adjusted net income; (viii) Adjusted basic earnings per share; (ix) Adjusted diluted earnings per share and (x) Cash generated from operations, that are not required by, or presented in accordance with, IFRS.

Other companies may present Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin excluding the impact of IFRS 16, Recurring revenue, Revenue on a constant currency basis, Adjusted net income, Adjusted basic earnings per share, Adjusted diluted earnings per share and Cash generated from operations differently than we do. None of these measures are measures of financial performance under IFRS and should not be considered as a measure of liquidity or as an alternative to Profit for the period attributable to shareholders (“Net income”) or as indicators of our operating performance or any other measure of performance implemented in accordance with IFRS.

 

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Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin excluding the impact of IFRS 16, Recurring revenue and Revenue on a constant currency basis

We define Adjusted EBITDA as Net income adjusted for income tax expense, net finance expense and the following items, which may occur in any period, and which management believes are not representative of our operating performance:

 

   

Depreciation and amortisation – property, plant and equipment and intangible assets (except goodwill) are depreciated and amortised on a straight-line basis over the estimated useful life. We believe that these costs do not represent our operating performance.

 

   

Share-based payments – represents primarily the fair value at the date of grant of employee equity awards, which is recognized as an expense over the vesting period. In certain cases, the fair value is redetermined for market conditions at each reporting date, until the final date of grant is achieved. We believe that this expense does not represent our operating performance.

 

   

Income or expense related to the evaluation and execution of potential mergers or acquisitions (“M&A”) – under IFRS, gains and losses associated with M&A activity are recognized in the period in which such gains or losses are incurred. We exclude these effects because we believe they are not reflective of our ongoing operating performance.

 

   

Adjustments related to terminated and unused data centre sites – these gains and losses relate to historical leases entered into for certain brownfield sites, with the intention of developing data centres, which were never developed, and for which management has no intention of developing into data centres. We believe the impact of gains and losses related to unused data centres is not reflective of our business activities and our ongoing operating performance.

In certain circumstances, we may also adjust for other items that management believes are not representative of our current ongoing performance. Examples include: adjustments for the cumulative effect of a change in accounting principle or estimate, impairment losses, litigation gains and losses or windfall gains and losses. Adjusted EBITDA margin is defined as Adjusted EBITDA as a percentage of revenue.

 

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In addition, we present Adjusted EBITDA excluding the impact of IFRS 16 for comparative purposes with regard to Adjusted EBITDA presented in periods prior to 1 January 2019, the effective date of IFRS 16. Adjusted EBITDA margin excluding the impact of IFRS 16 is defined as Adjusted EBITDA excluding the impact of IFRS 16 as a percentage of revenue.

For a reconciliation of Net income to Adjusted EBITDA and from Adjusted EBITDA to Adjusted EBITDA excluding the impact of IFRS 16, see the notes to the Condensed Consolidated Interim Financial Statements. Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin excluding the impact of IFRS 16 and other key performance indicators may not be indicative of our historical results of operations based on IFRS, nor are they meant to be predictive of future results under IFRS.

We define Recurring revenue as revenue incurred from colocation and associated power charges, office space, amortised set-up fees, cross-connects and certain recurring managed services (but excluding any ad hoc managed services) provided by us directly or through third parties, excluding rents received for the sublease of unused sites. Management believes that the exclusion of these items provides useful supplemental information to revenue from colocation and associated power charges to aid investors in evaluating the recurring revenue performance of our business. For a reconciliation of Revenue to Recurring revenue, see the notes to the Condensed Consolidated Interim Financial Statements.

We present constant currency information for revenue to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than Euro are converted into Euro using the average exchange rates from the prior period rather than the actual exchange rates in effect during the current period. We believe that revenue growth is a key indicator of how a company is progressing from period to period and presenting constant currency information for revenue provides useful supplemental information to investors regarding our on-going operational performance because it helps us and our investors evaluate the on-going operating performance of the business after removing the impact of currency exchange rates.

 

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We believe Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin excluding the impact of IFRS 16, Recurring revenue and Revenue on a constant currency basis provide useful supplemental information to investors regarding our ongoing operational performance. These measures help us and our investors evaluate the ongoing operating performance of the business after removing the impact of our capital structure (primarily interest expense), our asset base (primarily depreciation and amortisation) and the implementation of new accounting standards. Management believes that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16, when combined with the primary IFRS presentation of Net income, provides a more complete analysis of our operating performance. Management also believes the use of Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16 facilitates comparisons between us and other data centre operators (including other data centre operators that are REITs) and other infrastructure-based businesses. Adjusted EBITDA excluding the impact of IFRS 16 is also a relevant measure used in the financial covenants of our revolving credit facility and our 4.75% Senior Notes due 2025. Pursuant to the terms of our revolving credit facility and our 4.75% Senior Notes due 2025, the calculation of Adjusted EBITDA for the purposes of the financial covenants is determined in accordance with IFRS as of the date of the financing agreements and therefore does not include the impact of IFRS 16.

Adjusted net income, Adjusted basic earnings per share and Adjusted diluted earnings per share

We define Adjusted net income as Net income adjusted for the following items and the related income tax effect, which may occur in any period, and which management believes are not reflective of our operating performance:

 

   

Income or expense related to the evaluation and execution of potential mergers or acquisitions (“M&A”) – under IFRS, gains and losses associated with M&A activity are recognized in the period in which such gains or losses are incurred. We exclude these effects because we believe they are not reflective of our ongoing operating performance.

 

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Adjustments related to provisions – these adjustments are made for adjustments in provisions that are not reflective of the ongoing operating performance of Interxion. These adjustments may include changes in provisions for onerous lease contracts.

 

   

Adjustments related to capitalized interest – under IFRS, we are required to calculate and capitalize interest allocated to the investment in data centres and exclude it from Net income. We believe that reversing the impact of capitalized interest provides information about the impact of the total interest costs and facilitates comparisons with other data centre operators.

In certain circumstances, we may also adjust for other items that management believes are not representative of our current ongoing performance. Examples include: adjustments for the cumulative effect of a change in accounting principle or estimate, impairment losses, litigation gains and losses or windfall gains and losses.

Management believes that the exclusion of certain items listed above provides useful supplemental information to Net income to aid investors in evaluating the operating performance of our business and comparing our operating performance with other data centre operators and infrastructure companies. We believe the presentation of Adjusted net income, when combined with Net income prepared in accordance with IFRS, is beneficial to a complete understanding of our performance. A reconciliation from reported Net income to Adjusted net income is provided in notes to the Condensed Consolidated Interim Financial Statements.

Adjusted basic earnings per share and Adjusted diluted earnings per share amounts are determined on Adjusted net income.

Cash generated from operations

Cash generated from operations is defined as Net cash flows from operating activities, excluding interest and corporate income tax payments and receipts. Management believes that the exclusion of these items provides useful supplemental information to Net cash flows from operating activities to aid investors in evaluating the cash generating performance of our business.

 

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Additional Key Performance Indicators

In addition to Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA excluding the impact of IFRS 16, Adjusted EBITDA margin excluding the impact of IFRS 16, Recurring revenue, Revenue on a constant currency basis, Adjusted net income, Adjusted basic earnings per share, Adjusted diluted earnings per share and Cash generated from operations, our management also uses the following key performance indicators as measures to evaluate our performance:

 

   

Equipped space: the amount of data centre space that, on the date indicated, is equipped and either sold or could be sold, without making any significant additional investments to common infrastructure. Equipped space at a particular data centre may decrease if either (a) the power requirements of customers at a data centre change so that all or a portion of the remaining space can no longer be sold because the space does not have enough power capacity and/or common infrastructure to support it without further investment or (b) if the design and layout of a data centre changes to meet among others, fire regulations or customer requirements, and necessitates the introduction of common space (such as corridors) which cannot be sold to individual customers;

 

   

Revenue generating space: the amount of Equipped space that is under contract and billed on the date indicated;

 

   

Utilisation rate: on the date indicated, Revenue generating space as a percentage of Equipped space. Some Equipped space is not fully utilised because of customers’ specific requirements regarding the layout of their equipment. In practice, therefore, Utilisation rate does not reach 100%.

 

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IFRS 16 – Leases

We adopted International Financial Reporting Standard 16 – Leases, from 1 January 2019. Under IFRS 16, operating leases are recognized as right of use assets and lease liabilities, and certain components of revenue are recognized as lease revenue.

The impact of IFRS 16 on revenue, gross profit, operating income, Adjusted EBITDA, depreciation and amortisation and net finance expense for the three-month and six-month periods ended 30 June 2019 and total assets and total liabilities as at 30 June 2019 is provided in the tables attached to this press release.

-ENDS-

About Interxion

Interxion (NYSE: INXN) is a leading provider of carrier and cloud-neutral colocation data centre services in Europe, serving a wide range of customers through 53 data centres in 11 European countries. Interxion’s uniformly designed, energy efficient data centres offer customers extensive security and uptime for their mission-critical applications. With over 700 connectivity providers, 21 European Internet exchanges, and most leading cloud and digital media platforms across its footprint, Interxion has created connectivity, cloud, content and finance hubs that foster growing customer communities of interest. For more information, please visit www.interxion.com.

Contact information:

Interxion

Jim Huseby

Investor Relations

Tel: +1-813-644-9399

IR@interxion.com

 

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INTERXION HOLDING NV

CONDENSED CONSOLIDATED INCOME STATEMENTS

(in €‘000 — except per share data and where stated otherwise)

(unaudited)

 

     Three Months Ended     Six Months Ended  
     Jun-30     Jun-30     Jun-30     Jun-30  
     2019     2018     2019     2018  

Revenue

     158,476       138,824       310,007       272,660  

Cost of sales

     (54,729     (53,701     (105,123     (106,398
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit

     103,747       85,123       204,884       166,262  

Other income

     —         —         —         86  

Sales and marketing costs

     (9,397     (9,601     (18,551     (18,309

General and administrative costs

     (64,798     (49,250     (126,942     (94,894
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,552       26,272       59,391       53,145  

Net finance expense

     (17,148     (22,895     (33,810     (34,299

Share of result of equity-accounted investees, net of tax

     (163     —         (163     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before income taxes

     12,241       3,377       25,418       18,846  

Income tax expense

     (3,627     (2,795     (8,405     (6,608
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     8,614       582       17,013       12,238  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share(a): (€)

     0.12       0.01       0.24       0.17  

Diluted earnings per share(b): (€)

     0.12       0.01       0.23       0.17  

Number of shares outstanding at the end of the period (shares in thousands)

     71,888       71,609       71,888       71,609  

Weighted average number of shares for Basic EPS (shares in thousands)

     71,876       71,481       71,843       71,455  

Weighted average number of shares for Diluted EPS (shares in thousands)

     72,457       71,946       72,398       71,902  
                 As at  
                 Jun-30     Jun-30  
Capacity metrics                2019     2018  

Equipped space (in square meters)

         154,800       132,600  

Revenue generating space (in square meters)

         121,600       106,200  

Utilisation rate

         79     80

 

(a)

Basic earnings per share are calculated as net income divided by the weighted average number of shares for Basic EPS.

(b)

Diluted earnings per share are calculated as net income divided by the weighted average number of shares for Diluted EPS.

 

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INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: REPORTING SEGMENT INFORMATION

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Six Months Ended  
     Jun-30     Jun-30     Jun-30     Jun-30  
     2019     2018     2019     2018  

Consolidated

        

Recurring revenue

     149,975       131,709       295,253       258,671  

Non-recurring revenue

     8,501       7,115       14,754       13,989  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     158,476       138,824       310,007       272,660  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     8,614       582       17,013       12,238  

Net income margin

     5.4     0.4     5.5     4.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,552       26,272       59,391       53,145  

Operating income margin

     18.6     18.9     19.2     19.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     80,158       63,431       157,435       124,306  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     65.5     61.3     66.1     61.0

Adjusted EBITDA margin

     50.6     45.7     50.8     45.6

Total assets

     2,743,383       1,975,113       2,743,383       1,975,113  

Total liabilities(a)

     2,082,604       1,368,236       2,082,604       1,368,236  

Capital expenditure, including intangible assets(b)

     (123,477     (120,515     (267,558     (216,709

France, Germany, the Netherlands, and the UK

        

Recurring revenue

     100,673       87,317       197,536       170,771  

Non-recurring revenue

     4,962       4,196       9,399       8,653  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     105,635       91,513       206,935       179,424  

Operating income

     33,584       30,311       66,896       57,946  

Operating income margin

     31.8     33.1     32.3     32.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     62,935       51,388       124,056       99,366  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     66.3     63.2     66.9     62.2

Adjusted EBITDA margin

     59.6     56.2     59.9     55.4

Total assets

     1,968,376       1,360,299       1,968,376       1,360,299  

Total liabilities(a)

     623,050       275,898       623,050       275,898  

Capital expenditure, including intangible assets(b)

     (77,780     (82,556     (177,405     (153,130

Rest of Europe

        

Recurring revenue

     49,302       44,392       97,717       87,900  

Non-recurring revenue

     3,539       2,919       5,355       5,336  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     52,841       47,311       103,072       93,236  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     20,628       18,643       41,637       38,242  

Operating income margin

     39.0     39.4     40.4     41.0
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     32,593       27,171       64,835       54,742  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     69.8     65.0     70.8     66.3

Adjusted EBITDA margin

     61.7     57.4     62.9     58.7

Total assets

     685,304       443,999       685,304       443,999  

Total liabilities(a)

     210,740       84,045       210,740       84,045  

Capital expenditure, including intangible assets(b)

     (37,891     (29,805     (79,476     (52,472

Corporate and other

        

Operating income

     (24,660     (22,682     (49,142     (43,043
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (15,370     (15,128     (31,456     (29,802
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

     89,703       170,815       89,703       170,815  

Total liabilities(a)

     1,248,814       1,008,293       1,248,814       1,008,293  

Capital expenditure, including intangible assets(b)

     (7,806     (8,154     (10,677     (11,107

 

(a)

Certain comparative figures as at 30 June 2018 have been restated compared to the amounts disclosed on Form 6-K furnished on 2 August 2018. For further details see Note 2 and Note 28 of our 2018 Consolidated Financial Statements included on Form 20-F, filed with the SEC on 30 April 2019.

(b)

Capital expenditure, including intangible assets, represents payments to acquire property, plant and equipment and intangible assets, as recorded in the condensed consolidated statements of cash flows as “Purchase of property, plant and equipment” and “Purchase of intangible assets”, respectively.

 

16


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Six Months Ended  
     Jun-30     Jun-30     Jun-30     Jun-30  
     2019     2018     2019     2018  

Reconciliation to Adjusted EBITDA

        

Consolidated

        

Net income

     8,614       582       17,013       12,238  

Income tax expense

     3,627       2,795       8,405       6,608  
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before taxation

     12,241       3,377       25,418       18,846  

Share of result of equity-accounted investees, net of tax

     163       —         163       —    

Net finance expense

     17,148       22,895       33,810       34,299  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,552       26,272       59,391       53,145  

Depreciation and amortisation

     44,320       32,191       85,998       61,750  

Share-based payments

     5,725       3,927       11,405       7,249  

Income or expense related to the evaluation and execution of potential mergers or acquisitions:

        

M&A transaction costs(a)

     561       1,041       641       2,248  

Items related to sub-leases on unused data centre sites(b)

     —         —         —         (86
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(c)

     80,158       63,431       157,435       124,306  
  

 

 

   

 

 

   

 

 

   

 

 

 

France, Germany, the Netherlands, and the UK

        

Operating income

     33,584       30,311       66,896       57,946  

Depreciation and amortisation

     29,010       20,818       56,417       40,903  

Share-based payments

     341       259       743       603  

Items related to sub-leases on unused data centre sites(b)

     —         —         —         (86
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(c)

     62,935       51,388       124,056       99,366  
  

 

 

   

 

 

   

 

 

   

 

 

 

Rest of Europe

        

Operating income

     20,628       18,643       41,637       38,242  

Depreciation and amortisation

     11,728       8,223       22,608       15,971  

Share-based payments

     237       305       590       529  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(c)

     32,593       27,171       64,835       54,742  
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

        

Operating loss

     (24,660     (22,682     (49,142     (43,043

Depreciation and amortisation

     3,582       3,150       6,973       4,876  

Share-based payments

     5,147       3,363       10,072       6,117  

Income or expense related to the evaluation and execution of potential mergers or acquisitions:

        

M&A transaction costs(a)

     561       1,041       641       2,248  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(c)

     (15,370     (15,128     (31,456     (29,802
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

“M&A transaction costs” are costs associated with the evaluation, diligence and conclusion or termination of merger or acquisition activity. These costs are included in “General and administrative costs”.

(b)

“Items related to sub-leases on unused data centre sites” represents the income on sub-lease of portions of unused data centre sites to third parties. This income is treated as “Other income”.

(c)

“Adjusted EBITDA” is a non-IFRS financial measure. See “Non-IFRS Financial Measures” for more information, including why we believe Adjusted EBITDA is useful, and the limitations on the use of Adjusted EBITDA.

 

17


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED BALANCE SHEET

(in €‘000 — except where stated otherwise)

(unaudited)

 

     As at  
     Jun-30     Dec-31  
     2019     2018  

Non-current assets

    

Property, plant and equipment

     1,878,533       1,721,064  

Right-of-use assets

     438,556       —    

Intangible assets

     66,492       64,331  

Goodwill

     38,900       38,900  

Deferred tax assets

     24,607       21,807  

Investment in associate

     3,583       —    

Other investments

     12,606       7,906  

Other non-current assets

     15,934       16,843  
  

 

 

   

 

 

 
     2,479,211       1,870,851  

Current assets

    

Trade receivables and other current assets

     208,611       205,613  

Cash and cash equivalents

     55,561       186,090  
  

 

 

   

 

 

 
     264,172       391,703  
  

 

 

   

 

 

 

Total assets

     2,743,383       2,262,554  
  

 

 

   

 

 

 

Shareholders’ equity

    

Share capital

     7,188       7,170  

Share premium

     564,592       553,425  

Foreign currency translation reserve

     2,965       3,541  

Hedging reserve, net of tax

     (179     (165

Accumulated profit

     86,213       69,449  
  

 

 

   

 

 

 
     660,779       633,420  

Non-current liabilities

    

Borrowings

     1,235,214       1,266,813  

Lease liabilities

     423,508       —    

Deferred tax liabilities

     16,912       16,875  

Other non-current liabilities

     17,974       34,054  
  

 

 

   

 

 

 
     1,693,608       1,317,742  

Current liabilities

    

Trade payables and other current liabilities

     311,880       280,877  

Lease liabilities

     27,563       —    

Income tax liabilities

     8,048       7,185  

Borrowings

     41,505       23,330  
  

 

 

   

 

 

 
     388,996       311,392  
  

 

 

   

 

 

 

Total liabilities

     2,082,604       1,629,134  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     2,743,383       2,262,554  
  

 

 

   

 

 

 

 

18


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

NOTES TO THE CONDENSED CONSOLIDATED BALANCE SHEET: BORROWINGS AND LEASE LIABILITIES NET OF CASH AND CASH EQUIVALENTS

(in €‘000 — except where stated otherwise)

(unaudited)

 

     As at  
     Jun-30      Dec-31  
     2019      2018  

Borrowings and lease liabilities net of cash and cash equivalents

     

Cash and cash equivalents

     55,561        186,090  

4.75% Senior Notes due 2025(a)

     1,189,060        1,188,387  

Finance lease liabilities (IAS 17)(b)

     —          50,374  

Mortgages

     50,411        51,382  

Borrowings under our Revolving Facilities

     37,248        —    
  

 

 

    

 

 

 

Borrowings

     1,276,719        1,290,143  

Lease liabilities (IFRS 16)(b)

     451,071        —    
  

 

 

    

 

 

 

Total borrowings and lease liabilities

     1,727,790        1,290,143  
  

 

 

    

 

 

 

Borrowings and lease liabilities net of cash and cash equivalents(c)

     1,672,229        1,104,053  
  

 

 

    

 

 

 

 

(a)

The €1,200 million 4.75% Senior Notes due 2025 include a premium on additional issuances and are shown after deducting commissions, offering fees and expenses.     

(b)

Under IFRS 16, finance lease liabilities are included in the aggregated amount of lease liabilities rather than presented separately.     

(c)

Total borrowings and lease liabilities exclude deferred financing costs of €2.3 million as of 31 December 2018 which were incurred in connection with the €300 million Revolving Credit Facility, entered into on 18 June 2018. Total borrowings and lease liabilities include deferred financing costs of €2.7 million as of 30 June 2019. The deferred financing costs have been included as during the second quarter the Group has drawn €40.0 million under the Revolving Credit Facility.    

 

19


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Six Months Ended  
     Jun-30
2019
    Jun-30
2018
    Jun-30
2019
    Jun-30
2018(a)
 

Net income

     8,614       582       17,013       12,238  

Depreciation and amortisation

     44,320       32,191       85,998       61,750  

Share-based payments

     5,395       3,646       10,501       6,863  

Net finance expense

     17,148       22,895       33,810       34,299  

Share of result of equity-accounted investees, net of tax

     163       —         163       —    

Income tax expense

     3,627       2,795       8,405       6,608  
  

 

 

   

 

 

   

 

 

   

 

 

 
     79,267     62,109     155,890     121,758  

Movements in trade receivables and other assets

     (17,549     (13,858     (36,753     (20,055

Movements in trade payables and other liabilities

     10,035       6,858       32,481       11,486  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash generated from operations

     71,753       55,109       151,618       113,189  

Interest and fees paid(a)

     (29,435     (18,600     (34,300     (38,831

Income tax paid

     (6,529     (4,893     (10,188     (8,166
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from operating activities

     35,789       31,616       107,130       66,192  

Cash flows used in investing activities

        

Purchase of property, plant and equipment

     (119,972     (117,534     (260,667     (211,751

Financial investments - deposits

     (4     114       12,591       280  

Acquisition of associate

     (3,745     —         (3,745     —    

Purchase of intangible assets

     (3,505     (2,981     (6,891     (4,958

Loans provided

     (2,375     (834     (2,814     (1,251
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows used in investing activities

     (129,601     (121,235     (261,526     (217,680

Cash flows from financing activities

        

Proceeds from exercised options

     432       1,186       684       1,257  

Repayment of mortgages

     (548     (4,948     (1,020     (5,496

Proceeds from revolving credit facilities

     40,000       69,376       40,000       148,814  

Repayment of revolving facilities

     —         (250,724     —         (250,724

Proceeds 4.75% Senior Notes

     —         990,000       —         990,000  

Principal elements of lease payments (2018: Financial lease obligation)

     (8,356     —         (14,885     —    

Repayment 6.00% Senior Secured Notes

     —         (634,375     —         (634,375

Transaction costs 4.75% Senior Notes

     —         (1,192     (200     (1,192

Transaction costs revolving credit facility

     (142     (1,636     (745     (1,636
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from financing activities

     31,386       167,687       23,834       246,648  

Effect of exchange rate changes on cash

     (189     159       33       (81
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     (62,615     78,227       (130,529     95,079  

Cash and cash equivalents, beginning of period

     118,176       55,336       186,090       38,484  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

     55,561       133,563       55,561       133,563  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Interest and fees paid is reported net of cash interest capitalized, which is reported as part of “Purchase of property, plant and equipment”.

 

20


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS AND BALANCE SHEET: IFRS 16 IMPACT RECONCILIATION

(in €’000)

(unaudited)

 

    Three Months Ended     Six Months Ended  
    Jun-30
2019
As Reported
    Effect of
change
due to IFRS 16
    Jun-30
2019
Excl. IFRS 16
    Jun-30
2019
As Reported
    Effect of
change
due to IFRS 16
    Jun-30
2019
Excl. IFRS 16
 

Consolidated

           

Recurring revenue

    149,975       —         149,975       295,253       —         295,253  

Non-recurring revenue

    8,501       —         8,501       14,754       —         14,754  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    158,476       —         158,476       310,007       —         310,007  

Gross profit

    103,747       7,014       96,733       204,884       13,637       191,247  

Gross profit margin

    65.5     4.5     61.0     66.1     4.4     61.7

Operating income

    29,552       1,265       28,287       59,391       2,799       56,593  

Adjusted EBITDA

    80,158       8,610       71,548       157,435       16,605       140,830  

Adjusted EBITDA margin

    50.6     5.4     45.1     50.8     5.4     45.4

Depreciation and amortisation

    44,320       7,345       36,975       85,998       13,806       72,193  

Net finance expense

    17,148       3,072       14,076       33,810       6,151       27,659  

France, Germany, the Netherlands, and the UK

           

Recurring revenue

    100,673       —         100,673       197,536       —         197,536  

Non-recurring revenue

    4,962       —         4,962       9,399       —         9,399  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    105,635       —         105,635       206,935       —         206,935  

Operating income

    33,584       1,130       32,454       66,896       2,271       64,625  

Adjusted EBITDA

    62,935       5,536       57,399       124,056       10,663       113,392  

Adjusted EBITDA margin

    59.6     5.3     54.3     59.9     5.1     54.8

Rest of Europe

           

Recurring revenue

    49,302       —         49,302       97,717       —         97,717  

Non-recurring revenue

    3,539       —         3,539       5,355       —         5,355  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    52,841       —         52,841       103,072       —         103,072  

Operating income

    20,628       132       20,496       41,637       508       41,128  

Adjusted EBITDA

    32,593       2,583       30,009       64,835       4,981       59,854  

Adjusted EBITDA margin

    61.7     4.9     56.8     62.9     4.8     58.1

Corporate and Other

           

Operating income

    (24,660     3       (24,663     (49,142     20       (49,162

Adjusted EBITDA

    (15,370     491       (15,861     (31,456     961       (32,417
    As at                    
    Jun-30
2019
As Reported
    Effect of
change
due to IFRS 16
    Jun-30
2019
Excl. IFRS 16
                   

Consolidated

           

Non-current assets

    2,479,211       408,447       2,070,763        

Current assets

    264,172       (18,551     282,723        

Non-current liabilities

    1,693,608       368,478       1,325,130        

Current liabilities

    388,996       23,995       365,001        

France, Germany, the Netherlands, and the UK

           

Total assets

    1,968,376       280,707       1,687,669        

Total liabilities

    623,050       282,618       340,433        

Rest of Europe

           

Total assets

    685,304       105,928       579,376        

Total liabilities

    210,740       106,586       104,154        

Corporate and Other

           

Total assets

    89,703       3,261       86,443        

Total liabilities

    1,248,814       3,268       1,245,546        

 

21


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED NET INCOME RECONCILIATION

(in €‘000 — except per share data and where stated otherwise)

(unaudited)

 

     Three Months Ended     Six Months Ended  
     Jun-30
2019
    Jun-30
2018
    Jun-30
2019
    Jun-30
2018
 

Net income - as reported

     8,614       582       17,013       12,238  

Add back

        

+ Charges related to termination of financing arrangements(a)

     —         11,171       —         11,171  

+ M&A transaction costs

     561       1,041       641       2,248  
  

 

 

   

 

 

   

 

 

   

 

 

 
     561       12,212       641       13,419  

Reverse

        

- Interest capitalized

     (2,102     (1,181     (3,982     (2,065
  

 

 

   

 

 

   

 

 

   

 

 

 
     (2,102)     (1,181)     (3,982)     (2,065)  

Tax effect of above add backs & reversals

     385       (2,758     835       (2,839
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

     7,458       8,855       14,507       20,753  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported basic EPS: (€)

     0.12       0.01       0.24       0.17  

Reported diluted EPS: (€)

     0.12       0.01       0.23       0.17  

Adjusted basic EPS: (€)

     0.10       0.12       0.20       0.29  

Adjusted diluted EPS: (€)

     0.10       0.12       0.20       0.29  

 

(a)

These charges relate to the repayment of the 6.00% Senior Secured Notes due 2020 and the termination of our revolving credit facility agreements in 2Q18.

 

22


LOGO

Press Release, 7 August 2019

 

INTERXION HOLDING NV

Status of Announced Expansion Projects as at 7 August 2019

with Target Open Dates after 31 March 2019

 

Market

  

Project

   CAPEX(a)(b)
(€ million)
     Equipped
Space(a)
(sqm)
    

Schedule

Amsterdam

   AMS10: Phases 1 - 3 New Build      195        9,500      4Q 2019 - 3Q 2020(c)

Copenhagen

   CPH2: Phases 3 - 5      18        1,500      2Q 2018 - 4Q 2019(d)

Dusseldorf

   DUS2: Phase 3      5        500      1Q 2019 - 2Q 2019(e)

Frankfurt

   FRA14: Phases 1 - 2 New Build      76        4,600      3Q 2019 - 4Q 2019(f)

Frankfurt

   FRA15: Phases 1 - 4 New Build      177        9,600      2Q 2020 - 3Q 2021(g)

London

   LON3: New Build      35        1,800      1Q 2019 - 3Q 2019(h)

Madrid

   MAD3: New Build      44        2,700      2Q 2019 - 4Q 2019(i)

Marseille

   MRS2: Phase 2 - 4      72        4,200      2Q 2018 - 4Q 2019(j)

Marseille

   MRS3: Phases 1 - 2 New Build      111        4,700      1Q 2020 - 3Q 2020(k)

Paris

   PAR7.2: Phase B (cont.) - C      47        2,500      2Q 2018 - 2Q 2019(l)

Stockholm

   STO5: Phases 2 - 3      19        1,200      1Q 2018 - 2Q 2019(m)

Stockholm

   STO6: Phase 1 - 2 New Build      21        1,100      2Q 2020 - 4Q 2020(n)

Vienna

   VIE2: Phase 7 - 9      96        4,500      4Q 2017 - 4Q 2019(o)

Zurich

   ZUR1: Phase 6      10        100      4Q 2019(p)

Zurich

   ZUR2: Phases 1 - 2 New Build      93        3,600      3Q 2020(q)
     

 

 

    

 

 

    

Total

        1,019        52,100     

 

(a)

CAPEX and Equipped space are approximate and may change. SQM figures are rounded to nearest 100 sqm unless otherwise noted, and totals may not add due to rounding.

(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 time.

(c)

AMS10: Phase 1 (2,700 sqm) is scheduled to open in 4Q 2019; phase 2 (4,100 sqm) is scheduled to open in 1Q 2020, phase 3 (2,700 sqm) is scheduled to open in 3Q 2020.

(d)

CPH2: Phases 3 and 4 (900 sqm total) opened in 2Q 2018; phase 5 (600 sqm) is scheduled to open in 4Q 2019.

(e)

DUS2: Phase 3 partially opened (300 sqm) in 1Q 2019 and the remaining 200 sqm opened in 2Q 2019.

(f)

FRA14: Phase 1 (2,400 sqm) is scheduled to open in 3Q 2019; phase 2 (2,200 sqm) is scheduled to open in 4Q 2019.

(g)

FRA15: Phase 1 (2,300 sqm) is scheduled to open in 2Q 2020, Phase 2 (2,600 sqm) is scheduled to open in 4Q 2020, Phase 3 (2,400 sqm) is scheduled to open in 1Q 2021 and Phase 4 (2,400 sqm) scheduled to open in 3Q 2021.

(h)

LON3: Phase 1 (300 sqm) opened in 1Q 2019 and Phase 2 (600 sqm) opened in 2Q 2019. Phase 3 (900 sqm) is scheduled to open in 3Q 2019.

(i)

MAD3: 1,300 sqm opened in 2Q 2019, 700 sqm is scheduled to open in 3Q 2019 and 700 sqm is scheduled to open in 4Q 2019.

(j)

MRS2: Phase 2 (700 sqm) opened in 2018; Phase 3 (1,100 sqm) opened in 2Q 2019 and Phase 4 (2,500 sqm) is scheduled to open in 3Q - 4Q 2019.

(k)

MRS3: Phase 1 (2,300 sqm) is scheduled to open in 1Q 2020 and Phase 2 (2,400 sqm) is scheduled to open in 3Q 2020.

(l)

PAR7.2: Phase B (cont.) (500 sqm) opened in 2Q 2018; Phase C part (1,500 sqm) opened in 4Q 2018 and the remaining part (500 sqm) opened in 2Q 2019.

(m)

STO5: Phases 2-3 - 100 sqm opened in 1Q 2018; 300 sqm became operational in 2Q 2018; 800 sqm opened in 2Q 2019.

(n)

STO6: Phase 1 (500 sqm) is scheduled to open in 2Q 2020 and Phase 2 (600 sqm) is scheduled to open in 4Q 2020.

(o)

VIE2: Phases 7-9; 2,300 sqm opened in 4Q 2017 through 3Q 2018; 2,000 sqm opened in 2Q 2019. The remaining 200 sqm is scheduled to open in 4Q 2019.

(p)

ZUR1: Phase 6 (100 sqm) is scheduled to open in 4Q 2019.

(q)

ZUR2: Phase 1 and Phase 2 are scheduled to open in 3Q 2020 (together 3,600 sqm).

 

23