Cimpress PLC Ordinary Shares (Ireland) Midwest IDEAS Conference

Welcome everybody to the Midwest IDEAS Investor Conference. I'm Phillip Kupper with Three Part Advisors. Our next presentation comes from one of our investor relation clients, Cimpress. That's traded on the Nasdaq Exchange under the ticker symbol CMPR. Cimpress is a mass customization print business serving small and medium-sized businesses that fuel our economies. Presenting for the company today is Cimpress' Chief Financial Officer, Sean Quinn.

Sean. Great. Thanks a lot, Phillip, and welcome everyone.

As Phillip said, my name's Sean Quinn. I'm the CFO at Cimpress, and I want to just extend my thanks to the Three Part Advisors team for having us today for a very full day, which is great. Today I'm here to discuss Cimpress, which is the leader in print mass customization. Maybe just as a little bit of background for this slide, and we are webcasting. The slides today are mostly to try and get everyone a baseline understanding of who we are, what we do, because there are a lot of new folks to the story that are here today. I will share a little bit about our plans for this year and the year after. Maybe just two advertisements. One is that we do have an upcoming investor day at the end of September.

If you're looking for more details, in that event, we'll go deeper into some of our recent progress, but also our plans looking forward. So I would encourage you to attend that. Hopefully see you there. It is virtual. The other thing, if you're newer to the story, I would just encourage you to check out the annual letter to investors that Robert Keane, our founder, Chairman, and CEO, he writes every year. That was published at the end of July. I think you'll find that very interesting and informative in terms of who we are, how we think about capital allocation, but also just some recent examples of our progress and where we're focused. Great. Let's get into it. As we always do, just a quick safe harbor statement. I will talk a little bit about our future today.

We could be wrong about that, and so I just encourage everyone to check out the risk factors that are outlined here on this slide, but also are outlined in far more detail in our most recently filed 10-K, which we filed earlier this month. We do have some non-GAAP measures throughout the presentation. On our IR site, which is at ir.cimpress.com, you can find all the reconciliations to that. We provide quite a bit of information there. Again, if you're newer to the story, there's a financing and operating metrics spreadsheet that you might find quite useful in terms of historical information and so forth if you're looking to model things out. Great. Let's get into who we are. So Cimpress helps millions of businesses build their brands, stand out and grow, and we do that through custom print and promotional products.

We're the market leader in what we do in this mission today. Our businesses serve over 15 million customers each year, and we serve them with custom marketing materials, signage, logo apparel, promotional products, custom packaging labels. You can see some examples of the types of customers on this slide and how we serve them. Going to the next slide here, just a high level on some of the get you grounded in some of the metrics that indicate our scale and also the market that we're in and our offerings. This last year, we're a June 30 fiscal year end, so the year that ended June 2026. We had $3.7 billion in annual revenue. That was 7% reported growth. It was 4% organic constant currency revenue growth.

Off of that revenue, we had $1.7 billion in gross profit, $458 million in adjusted EBITDA, and adjusted free cash flow of $122 million. It was a year of particularly high capital expenditures, which is why the adjusted free cash flow last year was a bit lower than our normal conversion. All of that resulted from our continued shift and our focus towards what we call elevated products, and I'll go into that a little bit. But also importantly, improvements in how we acquire and retain higher value customers. Again, I'll talk a bit more about that, and continue to further advance the advantages, which are very significant, that we have in our manufacturing and supply chain. We operate in a really large market. We estimate that that's over $100 billion in total, and we have teams spread across 25 countries.

We have over 3 million square feet of production space located across North America, Europe, Australia, India, and Brazil. So very much global scale. As I said before, we successfully serve over 15 million customers annually. We do that with over 23,000 unique product offerings and millions of product variants. Each year, we fulfill over 30 million orders. So you put that in perspective, $3.7 billion in revenue, over 30 million orders. All of those orders by definition are custom for that customer. We do that across five reportable segments, which you can see on the bottom right there. That includes Vistaprint, which, typically in the U.S. environment, is the brand that most people are familiar with, given the strength of the Vistaprint brand in the U.S. market. Vistaprint is where the business started. Let me just spend a few minutes on the market.

As I mentioned on the prior slide, we have a total addressable market that exceeds $100 billion, and that's just for North America, Europe, and Australia. So, very large market. That's really just for the part of the print market that would be relevant for us to serve, which is small and medium print runs. This is not commercial printing, this is small and medium print runs. That's really where we seek to bring our mass customization model to continue to disrupt this market. You can see on the right here, the market sizing is divvied up across four product categories. Small format there at the bottom in the orange is where we started.

Today, we have a broad and deep offering of marketing and branding products that cuts across all these, and we're pushing even further into categories like packaging and labels and signage and promotional products, each of which, as you can see, are massive markets. With the investments that we've made, we're able to serve more and more of that market. The market's really fragmented. It's still the case that most of this market, about 60% of it, is served by traditional print businesses. Many of them, I often use the example of if you're just driving around whatever town or city you live in, you'll see these traditional, small, kind of non-scale print businesses. They're the local sign shops or print shops. Those types of shops have been in decline for decades, and for some obvious reasons.

They are ceding share that, in the aggregate, is ceding share to scale mass customization players like ourselves as the leader. Sorry, let me go back here. We think that there's still a long runway of growth opportunity, and really, that comes from two main drivers. One is share gains as we continue to push into that market dynamic that I just described, but also new product introduction. This has really been a meaningful driver of our recent growth. We're able to bring this mass customization paradigm to more and more products over time. Like I said, we started with small format printing, like business cards.

More recently, things like packaging are an area that we can push more deeply into to serve customers in a way that they haven't been able to be served in the past with lower order quantities of beautiful branded packaging at a great price, with a great ordering experience and great quality. So I talk about web-to-print mass customization, which is something that most people wouldn't have heard about before. Let me just spend a minute on what that is. This really speaks to producing custom products, but doing so with the reliability, the quality, the affordability of mass production, even though we're doing it in small quantities. This is a business model that Robert Keane, our founder, really invented. It's something that we excel at and have been at for now almost three decades. This model has a lot of benefits to customers.

We help our customers build their brands. We help to get them products fast. We give them a very broad product selection. We have highly competitive prices. We have great quality. The convenience for customers of ordering online like they do for most things in their life. We allow customers to order the quantity that's right for them, which is really, really important. Even very low quantities, oftentimes minimum order quantities of one. This is not easy to do. We've led in this discipline, and we have very significant scale-based advantages across our value chain that have been specifically designed to serve customers in this way, and it takes the orchestration of those advantages across that entire value chain to really make this work. It's very hard to do what we do. It's hard to build, it's hard to replicate.

We've invested very significant capital over the last decades to make this possible and allow us to continue to grow. Speaking of which, because of the value that we offer our customers, but also the significant scale-based advantages that we have, and we've continually invested in extending those, we have a long history of growth and profitability. On this slide, there's two charts. On the left is our revenue since 2011, and then on the right is our adjusted EBITDA. Obviously, you can see the direction there. We've consistently taken market share. It's a large addressable market, as I went through earlier. Through that continued growth from a top-line perspective, we've remained strongly profitable and also cash flow positive.