425

Filed by InterXion Holding N.V.

Pursuant to Rule 425 under the Securities Act of 1933

Subject Company: InterXion Holding N.V.

Filer’s SEC File No.: 001-35053

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Press Release, 7 November 2019

Interxion Reports Third Quarter 2019 Results

Revenue Growth of 12% Year Over Year

AMSTERDAM 7 November 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 September 2019.

3Q 2019 Financial Highlights

 

   

Revenue increased by 12% to €159.4 million (3Q 2018: €142.2 million).

 

   

Recurring revenue(1) increased by 13% to €152.3 million (3Q 2018: €134.8 million).

 

   

Net income increased by €10.6 million to €21.5 million (3Q 2018: €10.9 million).

 

   

Adjusted net income(1) increased by €8.6 million to €20.2 million (3Q 2018: €11.6 million).

 

   

Diluted earnings per share increased by €0.13 to €0.28 (3Q 2018: €0.15).

 

   

Adjusted diluted earnings per share(1) increased by €0.10 to €0.26 (3Q 2018: €0.16).

 

   

Adjusted EBITDA(1) increased by 26% to €82.7 million (3Q 2018: €65.8 million).

 

   

Adjusted EBITDA margin(1) increased to 51.9% (3Q 2018: 46.3%).

 

   

Capital expenditures, including intangible assets(2), were €150.6 million (3Q 2018: €103.2 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 November 2019

 

3Q 2019 Operating Highlights

 

   

Equipped space(3) increased by 5,000 square metres (“sqm”) during the quarter to 159,800 sqm.

 

   

Revenue generating space(4) increased by 1,100 sqm during the quarter to 122,700 sqm.

 

   

Utilisation rate(5) at the end of the quarter was 77%.

 

   

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

 

   

2,600 sqm in Frankfurt;

 

   

1,200 sqm in Marseille;

 

   

700 sqm in Madrid;

 

   

600 sqm in Copenhagen;

 

   

200 sqm in Vienna; and

 

   

100 sqm in Zurich.

 

   

Closed 500 sqm satellite data centre that came with the Science Park acquisition that was completed in 2017.

 

 

3 

Equipped space is the amount of data centre space that, on the date indicated, is equipped and is either sold or could be sold, without making any significant additional investments to common infrastructure. This number is net of a decrease of 500 sqm due to the closure of a satellite data centre that came with the Science Park acquisition (referred to as AMS9) and was previously included in the AMS9 sqm reporting.

4 

Revenue generating space is the amount of Equipped space that is under contract and billed on the date indicated. This number is net of a decrease in Science Park.

5 

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

 

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“Interxion posted solid results for the third quarter led by 13% recurring revenue growth and strong margins. Favourable demand trends for colocation reflect ongoing migration towards cloud and digital content platforms by enterprises and consumers,” said David Ruberg, Interxion’s Chief Executive Officer. “The platform providers continue to expand their presence in Europe and seek line of sight to substantial future capacity, which we are well placed to deliver at our highly-connected campuses in key cities across Europe.”

Interxion to Combine with Digital Realty

On 29 October 2019, Interxion and Digital Realty (NYSE: DLR) announced they entered into a definitive agreement to combine their businesses to create a leading global provider of data centre, colocation and interconnection solutions. Under the terms of the agreement, Interxion shareholders will receive a fixed exchange ratio of 0.7067 Digital Realty shares per Interxion share. Based on Digital Realty’s closing stock price of $132.28 on 28 October 2019, the transaction values Interxion at approximately $93.48 per ordinary share, or approximately $8.4 billion of total enterprise value, including assumed net debt. Completion of the transaction is subject to customary closing conditions, including approval by shareholders of Interxion and shareholders of Digital Realty.

“The combination of Interxion with Digital Realty is compelling from a strategic perspective and brings together two highly complementary businesses in terms of market positioning and geographical footprint,” said David Ruberg, Interxion’s Chief Executive Officer. “We are creating one of the largest data centre operators in the world. This transaction offers our shareholders an attractive return and, as you will see in forthcoming filings, follows many discussions over several years with potential strategic and financial acquirers of Interxion and other parties that have sought to pursue transactions with us. We strongly believe that the combination with Digital Realty will deliver significant long-term value for all our stakeholders.”

 

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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 the relevant measures reported under IFRS 16 to the corresponding measures excluding the impact of IFRS 16 is provided later in this press release.

Revenue in the third quarter of 2019 was €159.4 million, a 12% increase over the third quarter of 2018 and a 1% increase over the second quarter of 2019. Recurring revenue was €152.3 million, a 13% increase over the third quarter of 2018 and a 2% increase over the second quarter of 2019. Recurring revenue in the third quarter represented 96% of total revenue. On a constant currency(6) basis, revenue in the third quarter of 2019 was also 12% higher than in the third quarter of 2018.

Cost of sales in the third quarter of 2019 were €54.1 million, a 3% decrease from the third quarter of 2018 and a 1% decrease from the second quarter of 2019.

Gross profit was €105.3 million in the third quarter of 2019, a 22% increase over the third quarter of 2018 and a 1% increase over the second quarter of 2019. Gross profit margin was 66.0% in the third quarter of 2019, compared with 60.7% in the third quarter of 2018 and 65.5% in the second quarter of 2019.

Sales and marketing costs in the third quarter of 2019 were €8.7 million, a 0.3% increase over the third quarter of 2018 and a 7% decrease from the second quarter of 2019.

 

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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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General and administrative costs, excluding the items we adjust for in the determination of Adjusted EBITDA, were €13.9 million in the third quarter of 2019, a 17% increase over the third quarter of 2018 and a 2% decrease from the second quarter of 2019.

Depreciation and amortisation in the third quarter of 2019 were €45.3 million, a 38% increase over the third quarter of 2018 and a 2% increase over the second quarter of 2019.

Operating income in the third quarter of 2019 was €31.3 million, an increase of 16% over the third quarter of 2018 and a 6% increase over the second quarter of 2019.

Net finance expense for the third quarter of 2019 was €3.2 million, a 72% decrease from the third quarter of 2018 and a 81% decrease from the second quarter of 2019. This includes the €9.5 million increase in the fair value of certain convertible loans given to Icolo.

Income tax expense for the third quarter of 2019 was €6.5 million, a 46% increase over the third quarter of 2018 and a 79% increase over the second quarter of 2019.

Net income was €21.5 million in the third quarter of 2019, an 97% increase over the third quarter of 2018 and a 149% increase over the second quarter of 2019, partly driven by the fair value adjustment of the Icolo convertible loans.

Adjusted net income was €20.2 million in the third quarter of 2019, a 74% increase over the third quarter of 2018 and a 171% increase over the second quarter of 2019.

Adjusted EBITDA for the third quarter of 2019 was €82.7 million, a 26% increase over the third quarter of 2018 and a 3% increase over the second quarter of 2019. Adjusted EBITDA margin was 51.9% in the third quarter of 2019, compared to 46.3% in the third quarter of 2018 and 50.6% in the second quarter of 2019.

Adjusted EBITDA excluding the impact of IFRS 16(1) for the third quarter was €74.2 million, a 13% increase over the third quarter of 2018 and a 4% increase over the second quarter of 2019. Adjusted EBITDA margin excluding the effects of IFRS 16 in the third quarter of 2019 was 46.5%, compared to 46.3% in the third quarter of 2018 and 45.1% in the second quarter of 2019.

 

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Net cash flows from operating activities in the third quarter of 2019 were €65.4 million, compared to €53.9 million in the third quarter of 2018 and €35.8 million in the second quarter of 2019.

Cash generated from operations(1) in the third quarter of 2019 was €75.5 million, compared to €60.9 million in the third quarter of 2018 and €71.8 million in the second quarter of 2019.

Capital expenditures, including intangible assets, in the third quarter of 2019 were €150.6 million, compared with €103.2 million in the third quarter of 2018 and €123.5 million in the second quarter of 2019.

Cash and cash equivalents were €205.8 million at 30 September 2019, compared with €186.1 million at year end 2018.

Total borrowings and lease liabilities net of cash and cash equivalents were €1,502.3 million in aggregate at 30 September 2019, compared with €1,104.1 million at 31 December 2018. Excluding lease liabilities, total borrowings were €1,254.7 million at 30 September 2019, compared with €1,239.8 million at 31 December 2018.

As at 30 September 2019, Interxion’s €300 million unsecured revolving credit facility was undrawn.

On 1 July 2019, Interxion issued 4.6 million new ordinary shares in a public offering, which generated net proceeds of €281.6 million.

Equipped space at the end of the third quarter of 2019 was 159,800 square metres, compared to 140,300 square metres at the end of the third quarter of 2018 and 154,800 square metres at the end of the second quarter of 2019. Revenue generating space at the end of the third quarter of 2019 was 122,700 square metres, compared to 111,200 square metres at the end of the third quarter of 2018 and 121,600 square metres at the end of the second quarter of 2019. Utilisation rate, representing the ratio of revenue

 

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generating space to equipped space, was 77% at the end of the third quarter of 2019, compared to 79% at the end of the third quarter of 2018 and 79% at the end of the second quarter of 2019.

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 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

 

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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.

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

 

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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.

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.

 

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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.

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.

 

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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.

 

   

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.

 

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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.

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;

 

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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%.

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 nine-month periods ended 30 September 2019 and total assets and total liabilities as at 30 September 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 54 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.

 

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Additional Information and Where to Find It

This communication is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy, vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed transactions, Digital Realty intends to file a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (the “SEC”), that will include a proxy statement of Digital Realty, which also constitutes a prospectus of Digital Realty. After the registration statement is declared effective by the SEC, Digital Realty intends to mail a definitive proxy statement/prospectus to shareholders of Digital Realty and Digital Realty intends to cause its subsidiary to file a Tender Offer Statement on Schedule TO (the “Schedule TO”) with the SEC and soon thereafter Interxion intends to file a Solicitation/Recommendation Statement on Schedule 14D-9 (the “Schedule 14D-9”) with respect to the tender offer. The tender offer for the outstanding ordinary shares of Interxion referred to in this document has not yet commenced. The solicitation and offer to purchase shares of Interxion’s ordinary shares will only be made pursuant to the Schedule TO and related offer to purchase. This material is not a substitute for the proxy statement/prospectus, the Schedule TO, the Schedule 14D-9 or the Registration Statement or for any other document that Digital Realty or Interxion may file with the SEC and send to Digital Realty’s or Interxion’s shareholders in connection with the proposed transactions.

BEFORE MAKING ANY VOTING OR INVESTMENT DECISION OR DECISION WITH RESPECT TO THE TENDER OFFER, WE URGE INVESTORS OF DIGITAL REALTY AND INTERXION TO READ THE REGISTRATION STATEMENT, PROXY STATEMENT/PROSPECTUS, SCHEDULE TO (INCLUDING AN OFFER TO PURCHASE, RELATED LETTER OF TRANSMITTAL AND OTHER OFFER DOCUMENTS) AND SCHEDULE 14D-9, AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS

 

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FILED BY DIGITAL REALTY AND INTERXION WITH THE SEC CAREFULLY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT DIGITAL REALTY, INTERXION AND THE PROPOSED TRANSACTIONS.

Investors will be able to obtain free copies of the Registration Statement, proxy statement/prospectus, Schedule TO and Schedule 14D-9, as each may be amended from time to time, and other relevant documents filed by Digital Realty and Interxion with the SEC (when they become available) at http://www.sec.gov, the SEC’s website, or free of charge from Digital Realty’s website (http://www.digitalrealty.com) or by contacting Digital Realty’s Investor Relations Department at (415) 848-9311. These documents are also available free of charge from Interxion’s website (http://www.interxion.com) or by contacting Interxion’s Investor Relations Department at (813) 644-9399.

Participants in the Solicitation

Digital Realty, Interxion and their respective directors and certain of their executive officers and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Digital Realty’s and Interxion’s shareholders in connection with the proposed transactions. Information regarding the officers and directors of Digital Realty is included in its definitive proxy statement for its 2019 annual meeting filed with the SEC on April 1, 2019. Information regarding the officers and directors of Interxion and their ownership of Interxion ordinary shares is set forth in Interxion’s Annual Report on Form 20-F, which was filed with the SEC on April 30, 2019. Additional information regarding the persons who may be deemed participants and their interests will be set forth in the Registration Statement and proxy statement/prospectus and other materials when they are filed with SEC in connection with the proposed transactions. Free copies of these documents may be obtained as described in the paragraphs above.

 

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Forward-Looking Statements

Interxion cautions that statements in this communication that are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of Digital Realty, Interxion and the combined company. These forward-looking statements include, among other things, statements about anticipated satisfaction of closing conditions and completion of the proposed transactions contemplated by the purchase agreement between them. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: the ability of Digital Realty and Interxion to obtain the regulatory and shareholder approvals necessary to complete the anticipated combination, on the anticipated timeline or at all; the risk that a condition to the closing of the anticipated combination may not be satisfied, on the anticipated timeline or at all or that the anticipated combination may fail to close; the outcome of any legal proceedings, regulatory proceedings or enforcement matters that may be instituted relating to the anticipated combination; the costs incurred to consummate the anticipated combination; the possibility that the expected synergies from the anticipated combination will not be realized, or will not be realized within the expected time period; difficulties related to the integration of the two companies; disruption from the anticipated combination making it more difficult to maintain relationships with customers, employees, regulators or suppliers; the diversion of management time and attention on the anticipated combination; adverse changes in the markets in which Digital Realty and Interxion operate or credit markets; and changes in the terms, scope or timing of contracts, contract cancellations, and other modifications and actions by customers and other business counterparties of Digital Realty and Interxion. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward looking statements. For a more complete discussion of these and other risk factors, please see (i) Digital Realty’s filings with the SEC, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q and (ii) Interxion’s filings with the SEC, including its annual report on Form 20-F for the year

 

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ended December 31, 2018 and its subsequent reports on Form 6-K. This communication reflects the views of Interxion’s management as of the date hereof. Except to the extent required by applicable law, Interxion undertakes no obligation to update or revise any forward-looking statement.

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     Nine Months Ended  
     Sep-30     Sep-30     Sep-30     Sep-30  
     2019     2018     2019     2018  

Revenue

     159,393       142,191       469,400       414,851  

Cost of sales

     (54,138     (55,852     (159,261     (162,250
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross Profit

     105,255       86,339       310,139       252,601  

Other income

     —         —         —         86  

Sales and marketing costs

     (8,737     (8,710     (27,288     (27,019

General and administrative costs

     (65,226     (50,552     (192,169     (145,447
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     31,292       27,077       90,682       80,221  

Net finance expense

     (3,232     (11,732     (37,042     (46,031

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

     (113     —         (277     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before income taxes

     27,947       15,345       53,363       34,190  

Income tax expense

     (6,496     (4,445     (14,900     (11,052
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     21,451       10,900       38,463       23,138  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share(a): (€)

     0.28       0.15       0.52       0.32  

Diluted earnings per share(b): (€)

     0.28       0.15       0.52       0.32  

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

     76,604       71,673       76,604       71,673  

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

     76,548       71,642       73,429       71,518  

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

     77,133       72,091       74,015       71,950  
                 As at  
                 Sep-30     Sep-30  
Capacity metrics                2019     2018  

Equipped space (in square meters)

         159,800       140,300  

Revenue generating space (in square meters)

         122,700       111,200  

Utilisation rate

         77     79

 

(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.    

 

18


LOGO

Press Release, 7 November 2019

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: REPORTING SEGMENT INFORMATION

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     Sep-30     Sep-30     Sep-30     Sep-30  
     2019     2018     2019     2018  

Consolidated

        

Recurring revenue

     152,347       134,754       447,600       393,425  

Non-recurring revenue

     7,046       7,437       21,800       21,426  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     159,393       142,191       469,400       414,851  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     21,451       10,900       38,463       23,138  

Net income margin

     13.5     7.7     8.2     5.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     31,292       27,077       90,682       80,221  

Operating income margin

     19.6     19.0     19.3     19.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     82,662       65,783       240,097       190,089  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     66.0     60.7     66.1     60.9

Adjusted EBITDA margin

     51.9     46.3     51.1     45.8

Total assets

     2,999,220       2,223,963       2,999,220       2,223,963  

Total liabilities(a)

     2,024,362       1,601,055       2,024,362       1,601,055  

Capital expenditure, including intangible assets(b)

     (150,578     (103,185     (418,138     (319,894

France, Germany, the Netherlands, and the UK

        

Recurring revenue

     102,193       89,178       299,729       259,949  

Non-recurring revenue

     5,145       4,409       14,544       13,062  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     107,338       93,587       314,273       273,011  

Operating income

     34,498       30,367       101,394       88,314  

Operating income margin

     32.1     32.4     32.3     32.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     64,139       51,847       188,195       151,214  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     66.1     61.9     66.6     62.1

Adjusted EBITDA margin

     59.8     55.4     59.9     55.4

Total assets

     2,035,901       1,425,769       2,035,901       1,425,769  

Total liabilities(a)

     599,321       288,451       599,321       288,451  

Capital expenditure, including intangible assets(b)

     (116,405     (80,066     (293,810     (233,196

Rest of Europe

        

Recurring revenue

     50,154       45,576       147,871       133,476  

Non-recurring revenue

     1,901       3,028       7,256       8,364  
  

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     52,055       48,604       155,127       141,840  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     21,099       17,993       62,734       56,231  

Operating income margin

     40.5     37.0     40.4     39.6
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     33,823       28,690       98,658       83,432  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit margin

     72.2     66.4     71.3     66.3

Adjusted EBITDA margin

     65.0     59.0     63.6     58.8

Total assets

     705,854       464,250       705,854       464,250  

Total liabilities(a)

     202,247       92,830       202,247       92,830  

Capital expenditure, including intangible assets(b)

     (29,894     (20,726     (109,372     (73,198

Corporate and other

        

Operating income

     (24,305     (21,283     (73,446     (64,324
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     (15,300     (14,754     (46,756     (44,557
  

 

 

   

 

 

   

 

 

   

 

 

 

Total assets

     257,465       333,944       257,465       333,944  

Total liabilities

     1,222,794       1,219,774       1,222,794       1,219,774  

Capital expenditure, including intangible assets(b)

     (4,279     (2,393     (14,956     (13,500

 

(a)

Certain comparative figures as at 30 September 2018 have been restated compared to the amounts disclosed on Form 6-K furnished on 1 November 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.

 

19


LOGO

Press Release, 7 November 2019

 

INTERXION HOLDING NV

NOTES TO CONDENSED CONSOLIDATED INCOME STATEMENTS: ADJUSTED EBITDA RECONCILIATION

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     Sep-30     Sep-30     Sep-30     Sep-30  
     2019     2018     2019     2018  

Reconciliation to Adjusted EBITDA

        

Consolidated

        

Net income

     21,451       10,900       38,463       23,138  

Income tax expense

     6,496       4,445       14,900       11,052  
  

 

 

   

 

 

   

 

 

   

 

 

 

Profit before taxation

     27,947       15,345       53,363       34,190  

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

     113       —         277       —    

Net finance expense

     3,232       11,732       37,042       46,031  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     31,292       27,077       90,682       80,221  

Depreciation and amortisation

     45,297       32,885       131,295       94,635  

Share-based payments

     5,289       3,942       16,695       11,192  

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

        

M&A transaction costs(a)

     784       689       1,425       2,937  

Re-assessment of indirect taxes(b)

     —         1,190       —         1,190  

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

     —         —         —         (86
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(d)

     82,662       65,783       240,097       190,089  
  

 

 

   

 

 

   

 

 

   

 

 

 

France, Germany, the Netherlands, and the UK

        

Operating income

     34,498       30,367       101,394       88,314  

Depreciation and amortisation

     29,224       21,173       85,641       62,075  

Share-based payments

     417       307       1,160       911  

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

     —         —         —         (86
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(d)

     64,139       51,847       188,195       151,214  
  

 

 

   

 

 

   

 

 

   

 

 

 

Rest of Europe

        

Operating income

     21,099       17,993       62,734       56,231  

Depreciation and amortisation

     12,493       9,252       35,101       25,227  

Share-based payments

     231       255       823       784  

Re-assessment of indirect taxes(b)

     —         1,190       —         1,190  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(d)

     33,823       28,690       98,658       83,432  
  

 

 

   

 

 

   

 

 

   

 

 

 

Corporate and Other

        

Operating loss

     (24,305     (21,283     (73,446     (64,324

Depreciation and amortisation

     3,580       2,460       10,553       7,333  

Share-based payments

     4,641       3,380       14,712       9,497  

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

        

M&A transaction costs(a)

     784       689       1,425       2,937  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA(d)

     (15,300     (14,754     (46,756     (44,557
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(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)

This re-assessment relates to years prior to 2018 and is therefore not representative of our current on-going business.

(c)

“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”.

(d)

“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.

 

20


LOGO

Press Release, 7 November 2019

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED BALANCE SHEET

(in €‘000 — except where stated otherwise)

(unaudited)

 

     As at  
     Sep-30     Dec-31  
     2019     2018  

Non-current assets

    

Property, plant and equipment

     1,969,757       1,721,064  

Right-of-use assets

     436,079       —    

Intangible assets

     70,258       64,331  

Goodwill

     38,900       38,900  

Deferred tax assets

     26,913       21,807  

Investment in associate

     3,413       —    

Other investments

     —         7,906  

Other non-current assets

     16,792       16,843  
  

 

 

   

 

 

 
     2,562,112       1,870,851  

Current assets

    

Trade receivables and other current assets

     231,278       205,613  

Cash and cash equivalents

     205,830       186,090  
  

 

 

   

 

 

 
     437,108       391,703  
  

 

 

   

 

 

 

Total assets

     2,999,220       2,262,554  
  

 

 

   

 

 

 

Shareholders’ equity

    

Share capital

     7,716       7,170  

Share premium

     855,116       553,425  

Foreign currency translation reserve

     4,626       3,541  

Hedging reserve, net of tax

     (264     (165

Accumulated profit

     107,664       69,449  
  

 

 

   

 

 

 
     974,858       633,420  

Non-current liabilities

    

Borrowings

     1,249,837       1,266,813  

Lease liabilities

     425,315       —    

Deferred tax liabilities

     18,162       16,875  

Other non-current liabilities

     16,652       34,054  
  

 

 

   

 

 

 
     1,709,966       1,317,742  

Current liabilities

    

Trade payables and other current liabilities

     272,841       280,877  

Lease liabilities

     28,077       —    

Income tax liabilities

     8,596       7,185  

Borrowings

     4,882       23,330  
  

 

 

   

 

 

 
     314,396       311,392  
  

 

 

   

 

 

 

Total liabilities

     2,024,362       1,629,134  
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

     2,999,220       2,262,554  
  

 

 

   

 

 

 

 

21


LOGO

Press Release, 7 November 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  
     Sep-30      Dec-31  
     2019      2018  

Borrowings and lease liabilities net of cash and cash equivalents

     
  

 

 

    

 

 

 

Cash and cash equivalents

     205,830        186,090  
  

 

 

    

 

 

 

4.75% Senior Notes due 2025(a)

     1,189,446        1,188,387  

Finance lease liabilities (IAS 17)(b)

     —          50,374  

Mortgages

     65,273        51,382  
  

 

 

    

 

 

 

Borrowings

     1,254,719        1,290,143  

Lease liabilities (IFRS 16)(b)

     453,392        —    
  

 

 

    

 

 

 

Total borrowings and lease liabilities

     1,708,111        1,290,143  
  

 

 

    

 

 

 

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

     1,502,281        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, and deferred financing costs of €2.6 million as of 30 September 2019 relate to the Revolving Credit Facility and the increased capacity thereunder in March 2019.    

 

22


LOGO

Press Release, 7 November 2019

 

INTERXION HOLDING NV

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in €‘000 — except where stated otherwise)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     Sep-30
2019
    Sep-30
2018
    Sep-30
2019
    Sep-30
2018
 

Net income

     21,451       10,900       38,464       23,138  

Depreciation and amortisation

     45,297       32,885       131,295       94,635  

Share-based payments

     5,313       3,620       15,814       10,482  

Net finance expense

     3,232       11,732       37,042       46,031  

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

     113       —         277       —    

Income tax expense

     6,496       4,445       14,900       11,052  
  

 

 

   

 

 

   

 

 

   

 

 

 
     81,902     63,582     237,792     185,338  

Movements in trade receivables and other assets

     3,013       (193     (33,742     (20,246

Movements in trade payables and other liabilities

     (9,427     (2,510     23,054       8,976  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash generated from operations

     75,488       60,879       227,104       174,068  

Interest and fees paid(a)

     (4,658     (3,014     (38,955     (41,846

Interest received

     —         2       —         2  

Income tax paid

     (5,426     (4,005     (15,615     (12,171
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from operating activities

     65,404       53,862       172,534       120,053  

Cash flows used in investing activities

        

Purchase of property, plant and equipment

     (144,522     (102,143     (405,191     (313,894

Financial investments - deposits

     20       (13     12,611       267  

Acquisition of associate

     —         —         (3,745     —    

Purchase of intangible assets

     (6,056     (1,042     (12,947     (6,000

Loans provided

     (1,586     (857     (4,400     (2,108
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows used in investing activities

     (152,144     (104,055     (413,672     (321,735

Cash flows from financing activities

        

Proceeds from issue of share capital

     282,867       —         282,867       —    

Transaction costs from issue of share capital

     (1,229     —         (1,229     —    

Proceeds from exercised options

     1,040       262       1,724       1,520  

Proceeds from mortgages

     15,860       5,970       15,860       5,969  

Repayment of mortgages

     (1,024     (548     (2,044     (6,044

Proceeds from revolving credit facilities

     —         —         40,000       148,814  

Repayment of revolving facilities

     (40,000     —         (40,000     (250,724

Proceeds 4.75% Senior Notes

     —         204,800       —         1,194,800  

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

     (24,689     —         (39,574     —    

Repayment 6.00% Senior Secured Notes

     —         —         —         (634,375

Interest received at issuance of additional notes

     —         2,428       —         2,428  

Transaction costs 4.75% Senior Notes

     —         (5,504     (200     (6,696

Transaction costs revolving credit facility

     —         (926     (745     (2,562
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flows from financing activities

     232,825       206,482       256,659       453,130  

Effect of exchange rate changes on cash

     4,184       8       4,219       (72
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     150,269       156,297       19,740       251,376  

Cash and cash equivalents, beginning of period

     55,561       133,563       186,090       38,484  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents, end of period

     205,830       289,860       205,830       289,860  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

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

 

23


LOGO

Press Release, 7 November 2019

 

INTERXION HOLDING NV

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

(in €‘000)

(unaudited)

 

    Three Months Ended     Nine Months Ended  
    30 Sep
2019
As Reported
    Effect of
change
due to IFRS 16
    30 Sep
2019
Excl. IFRS 16
    30 Sep
2019
As Reported
    Effect of
change
due to IFRS 16
    30 Sep
2019
Excl. IFRS 16
 

Consolidated

           

Recurring revenue

    152,347       —         152,347       447,600       —         447,600  

Non-recurring revenue

    7,046       —         7,046       21,800       —         21,800  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    159,393       —         159,393       469,400       —         469,400  

Gross profit

    105,255       7,062       98,193       310,139       20,699       289,440  

Gross profit margin

    66.0     4.4     61.6     66.1     4.4     61.7

Operating income

    31,292       1,319       29,973       90,682       4,118       86,564  

Adjusted EBITDA

    82,662       8,488       74,174       240,097       25,093       215,004  

Adjusted EBITDA margin

    51.9     5.4     46.5     51.1     5.3     45.8

Depreciation and amortisation

    45,297       7,169       38,128       131,295       20,975       110,320  

Net finance expense

    3,232       3,081       151       37,042       9,231       27,811  

France, Germany, the Netherlands, and the UK

           

Recurring revenue

    102,193       —         102,193       299,729       —         299,729  

Non-recurring revenue

    5,145       —         5,145       14,544       —         14,544  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    107,338       —         107,338       314,273       —         314,273  

Operating income

    34,498       976       33,522       101,394       3,247       98,147  

Adjusted EBITDA

    64,139       5,470       58,669       188,195       16,134       172,061  

Adjusted EBITDA margin

    59.8     5.1     54.7     59.9     5.2     54.7

Rest of Europe

           

Recurring revenue

    50,154       —         50,154       147,871       —         147,871  

Non-recurring revenue

    1,901       —         1,901       7,256       —         7,256  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

    52,055       —         52,055       155,127       —         155,127  

Operating income

    21,099       325       20,774       62,734       833       61,901  

Adjusted EBITDA

    33,823       2,587       31,236       98,658       7,567       91,091  

Adjusted EBITDA margin

    65.0     5.0     60.0     63.6     4.9     58.7

Corporate and Other

           

Operating income

    (24,305     18       (24,323     (73,446     37       (73,483

Adjusted EBITDA

    (15,300     431       (15,731     (46,756     1,392       (48,148
    As at                    
    30 Sep
2019
As Reported
    Effect of
change
due to IFRS 16
    30 Sep
2019
Excl. IFRS 16
                   

Consolidated

           

Non-current assets

    2,562,112       406,265       2,155,847        

Current assets

    437,108       (17,101     454,209        

Non-current liabilities

    1,709,966       369,028       1,340,938        

Current liabilities

    314,396       24,111       290,285        

France, Germany, the Netherlands, and the UK

           

Total assets

    2,035,901       280,608       1,755,293        

Total liabilities

    599,321       283,614       315,707        

Rest of Europe

           

Total assets

    705,854       105,601       600,253        

Total liabilities

    202,247       106,567       95,680        

Corporate and Other

           

Total assets

    257,465       2,955       254,510        

Total liabilities

    1,222,794       2,958       1,219,836        

 

24


LOGO

Press Release, 7 November 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     Nine Months Ended  
     Sep-30
2019
    Sep-30
2018
    Sep-30
2019
    Sep-30
2018
 

Net income - as reported

     21,451       10,900       38,463       23,138  

Add back

        

+ Charges related to termination of financing arrangements(a)

     —         —         —         11,171  

+ Re-assessment of indirect taxes(b)

     —         1,734       —         1,734  

+ M&A transaction costs

     784       689       1,425       2,937  
  

 

 

   

 

 

   

 

 

   

 

 

 
     784       2,423       1,425       15,842  

Reverse

        

- Interest capitalized

     (2,393     (1,541     (6,375     (3,606
  

 

 

   

 

 

   

 

 

   

 

 

 
     (2,393     (1,541     (6,375     (3,606

Tax effect of above add backs & reversals

     402       (168     1,238       (3,007
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

     20,244       11,614       34,751       32,367  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reported basic EPS: (€)

     0.28       0.15       0.52       0.32  

Reported diluted EPS: (€)

     0.28       0.15       0.52       0.32  

Adjusted basic EPS: (€)

     0.26       0.16       0.47       0.45  

Adjusted diluted EPS: (€)

     0.26       0.16       0.47       0.45  

 

(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.

(b)

This re-assessment relates to years prior to 2018 and is therefore not representative of our current on-going business.

 

25


LOGO

Press Release, 7 November 2019

 

INTERXION HOLDING NV

Status of Announced Expansion Projects as at 7 November 2019

with Target Open Dates after 30 September 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)

Frankfurt

   FRA14: Phases 1 - 2 New Build      76        4,800      3Q 2019 - 4Q 2019(d)

Frankfurt

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

London

   LON3: New Build      35        1,800      1Q 2019 - 1Q 2020(f)

Madrid

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

Marseille

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

Marseille

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

Stockholm

   STO6: Phase 1 - 2 New Build      28        1,500      2Q 2020 - 4Q 2020(j)

Vienna

   VIE2: Phase 7 - 9      96        4,700      4Q 2017 - 1Q 2020(k)

Zurich

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

 

 

    

 

 

    

Total

        927        47,100     

 

(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)

FRA14: Phase 1 (2,600 sqm) opened in 3Q 2019; phase 2 (2,200 sqm) is scheduled to open in 4Q 2019.

(e)

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.

(f)

LON3: Phase 1 (300 sqm) opened in 1Q 2019 and Phase 2 (600 sqm) opened in 2Q 2019. The first part of phase 3 (300 sqm) is scheduled to open in 4Q 2019 and the second part (600 sqm) is scheduled to open in 1Q 2020.

(g)

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

(h)

MRS2: Phase 2 (700 sqm) opened in 2018; Phase 3 (1,100 sqm) opened in 2Q 2019 and the half of Phase 4 (1,200 sqm) opened in 3Q 2019 and the second half (1,300 sqm) is scheduled to open in 4Q 2019.

(i)

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.

(j)

STO6: Phase 1 (500 sqm) is scheduled to open in 2Q 2020 and Phase 2 (1,000 sqm) is scheduled to open in 4Q 2020.

(k)

VIE2: Phases 7-9; 2,300 sqm opened in 4Q 2017 through 3Q 2018; 2,000 sqm opened in 2Q 2019, 200 sqm opened in 3Q 2019 and the remaining 200 sqm is scheduled to open in 1Q 2020.

(l)

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

 

26