Revenue Increased 13% Year Over Year

AMSTERDAM–(BUSINESS WIRE)–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 31 March 2019.

Financial Highlights

• Revenue increased by 13% to €151.5 million (1Q 2018: €133.8 million).
• Recurring revenue¹ increased by 14% to €145.3 million (1Q
  2018: €127.0 million).
• Net income decreased by 28% to €8.4 million (1Q 2018: €11.7 million).
• Adjusted net income² decreased by 41% to €7.0 million (1Q
  2018: €11.9 million).
• Diluted earnings per share decreased by 28% to €0.12 (1Q 2018: €0.16).
• Adjusted diluted earnings per share² decreased by 41% to
  €0.10 (1Q 2018: €0.17).
• Adjusted EBITDA² increased by 27% to €77.3 million (1Q
  2018: €60.9 million).
• Adjusted EBITDA margin increased to 51.0% (1Q 2018: 45.5%).
• Adjusted EBITDA excluding the impact of IFRS 16² increased
  by 14% to €69.3 million (1Q 2018: €60.9 million) and Adjusted EBITDA
  margin excluding the impact of IFRS 16 increased to 45.7% (1Q 2018:
  45.5%).
• Capital expenditures, including intangible assets³, were
  €144.1 million (1Q 2018: €96.2 million).

Operating Highlights

• Equipped space increased by 3,500 square metres during the quarter to
  148,300 square metres.
• Revenue generating space increased by 4,000 square metres during the
  quarter to 119,000 square metres.
• Utilisation rate at the end of the quarter was 80%.
• During the first quarter, Interxion completed the following capacity
  additions:
  • 2,600 sqm in Frankfurt;
  • 300 sqm in London; and
  • 300 sqm in Dusseldorf.
• In April, Interxion acquired a 40% equity interest in Icolo Ltd., a
  Kenyan data centre operator.

“Interxion continues to experience strong demand in Europe, with the
cloud and content platforms continuing to expand across our pan-European
footprint, driving 14% recurring revenue growth in the first quarter and
providing support for our ongoing expansion program,” said David Ruberg,
Interxion’s Chief Executive Officer. “Interxion’s highly-connected data
centres and value-enhancing communities of interest continue to attract
mission-critical and latency sensitive applications, contributing to
sustainable attractive returns for our shareholders.”

Quarterly Review

The implementation of International Financial Reporting Standard –
Leases (“IFRS 16”) on January 1, 2019, had a significant impact on our
reported numbers as at and for the three-month period ended 31 March
2019. While IFRS 16 had no impact on our underlying cash flows, the new
accounting treatment applicable to operating leases resulted in a
reduction in our reported rent expense, which had a positive impact on
reported gross profit and Adjusted EBITDA. IFRS 16 also resulted in an
increase in depreciation and interest charges, which had a negative
impact on net income and earnings per share. In addition, the new
accounting treatment under IFRS 16 impacted our balance sheet, resulting
in an increase in reported liabilities, together with a corresponding
increase in right of use assets, in each case, as a result of including
both future lease liabilities and right of use assets on balance sheet.

Revenue in the first quarter of 2019 was €151.5 million, a 13% increase
over the first quarter of 2018 and a 3% increase over the fourth quarter
of 2018. Recurring revenue was €145.3 million, a 14% increase over the
first quarter of 2018 and a 4% increase over the fourth quarter of 2018.
Recurring revenue in the first quarter represented 96% of total revenue.
On a constant currency⁴ basis, revenue in the first quarter
of 2019 was 13% higher than in the first quarter of 2018. Neither
foreign exchange movements nor the adoption of IFRS 16 had a meaningful
impact on reported revenue in the first quarter of 2019.

Cost of sales in the first quarter of 2019 was €50.4 million, a 4%
decrease over the first quarter of 2018 and a 12% decrease over the
fourth quarter of 2018.

Gross profit was €101.1 million in the first quarter of 2019, a 25%
increase over the first quarter of 2018 and a 13% increase over the
fourth quarter of 2018. Gross profit margin was 66.7% in the first
quarter of 2019, compared with 60.6% in the first quarter of 2018 and
61.1% in the fourth quarter of 2018.

Sales and marketing costs in the first quarter of 2019 were €9.2
million, a 5% increase over the first quarter of 2018 and a 3% decrease
from the fourth quarter of 2018.

General and administrative costs, excluding the items we adjust for in
the determination of Adjusted EBITDA, were €14.7 million in the first
quarter of 2019, a 27% increase over the first quarter of 2018 and an
18% increase from the fourth quarter of 2018.

Depreciation and amortisation in the first quarter of 2019 were €41.7
million, an increase of 41% from the first quarter of 2018 and a 21%
increase from the fourth quarter of 2018.

Operating income in the first quarter of 2019 was €29.8 million, an
increase of 11% from the first quarter of 2018 and a 4% decrease from
the fourth quarter of 2018.

Net finance expense for the first quarter of 2019 was €16.7 million, a
46% increase over the first quarter of 2018 and a 6% increase over the
fourth quarter of 2018.

Income tax expense for the first quarter of 2019 was €4.8 million, a 25%
increase compared with the first quarter of 2018 and a 34% decrease from
the fourth quarter of 2018.

Net income was €8.4 million in the first quarter of 2019, a 28% decrease
over the first quarter of 2018 and a 5% increase from the fourth quarter
of 2018.

Adjusted net income was €7.0 million in the first quarter of 2019, a 41%
decrease over the first quarter of 2018 and a 10% decrease from the
fourth quarter of 2018.

Adjusted EBITDA for the first quarter of 2019 was €77.3 million, a 27%
increase over the first quarter of 2018 and a 14% increase over the
fourth quarter of 2018. Adjusted EBITDA margin was 51.0% in the first
quarter of 2019 compared with 45.5% in the first quarter of 2018 and
46.1% in the fourth quarter of 2018.

Adjusted EBITDA excluding the effects of IFRS 16, was €69.3 million for
the first quarter of 2019, a 14% increase over the first quarter of 2018
and a 2% increase over the fourth quarter of 2018. Adjusted EBITDA
margin, excluding the effects of IFRS 16, was 45.7% in the first quarter
of 2019, compared with 45.5% in the first quarter of 2018 and 46.1% in
the fourth quarter of 2018.

Net cash flows from operating activities were €71.3 million in the first
quarter of 2019, compared with €34.6 million in the first quarter of
2018 and €44.8 million in the fourth quarter of 2018.

Cash generated from operations⁵ was €79.9 million in the
first quarter of 2019, compared with €58.1 million in the first quarter
of 2018 and €76.9 million in the fourth quarter of 2018.

Capital expenditures, including intangible assets, were €144.1 million
in the first quarter of 2019, compared with €96.2 million in the first
quarter of 2018 and €131.3 million in the fourth quarter of 2018.

Cash and cash equivalents were €118.2 million at 31 March 2019, compared
with €186.1 million at year end 2018.

Total borrowings (including lease liabilities) net of cash and cash
equivalents were €1,593.9 million in aggregate at 31 March 2019,
compared with €1,104.1 million at 31 December 2018. Excluding lease
liabilities, total borrowings were €1,239.6 million at 31 March 2019,
compared with €1,239.8 million at 31 December 2018.

During the first quarter of 2019, Interxion increased its unsecured
revolving credit facility by €100 million for a total commitment of €300
million. As at 31 March 2019, no amounts had been drawn under this
facility.

Equipped space at the end of the first quarter of 2019 was 148,300
square metres, compared to 128,900 square metres at the end of the first
quarter of 2018 and 144,800 square metres at the end of the fourth
quarter of 2018. Revenue generating space at the end of the first
quarter of 2019 was 119,000 square metres, compared to 104,100 square
metres at the end of the first quarter of 2018 and 115,000 square metres
at the end of the fourth quarter of 2018. Utilisation rate, the ratio of
revenue-generating space to equipped space, was 80% at the end of the
first quarter of 2019, compared to 81% at the end of the first quarter
of 2018 and 79% at the end of the fourth quarter of 2018.

Business Outlook

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

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 23 May 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 7667705.

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

Included in these materials are certain non-IFRS financial measures,
which are measures of our financial performance that are not calculated
and presented in accordance with IFRS, within the meaning of applicable
SEC rules. These measures are as follows: (i) Adjusted EBITDA; (ii)
Adjusted EBITDA excluding the impact of IFRS 16; (iii) Recurring
revenue; (iv) Revenue on a constant currency basis; (v) Adjusted net
income; (vi) Adjusted basic earnings per share; (vii) Adjusted diluted
earnings per share and (viii) Cash generated from operations.

Other companies may present Adjusted EBITDA, Adjusted EBITDA 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. Each of these measures are not measures of
financial performance under IFRS and should not be considered as an
alternative to operating income or as a measure of liquidity or an
alternative to Profit for the period attributable to shareholders (“net
income”) as indicators of our operating performance or any other measure
of performance implemented in accordance with IFRS.

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

We define Adjusted EBITDA as Operating income adjusted for 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 recognised 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 are 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.

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.

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.

We believe Adjusted EBITDA, Adjusted EBITDA 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 contained therein is determined in accordance with IFRS as of
the date of the financing agreements related thereto (June 2018) and
therefore does not include the impact of IFRS 16.

A reconciliation from net income to Adjusted EBITDA and from Adjusted
EBITDA to Adjusted EBITDA excluding the impact of IFRS 16 is provided in
the tables attached to this press release. Adjusted EBITDA, Adjusted
EBITDA 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.

Management’s outlook for 2019 included in this press release includes a
range for expected Adjusted EBITDA, a non-IFRS financial measure, which
excludes items that management believes are not representative of our
operating performance. These items include, but are not limited to,
depreciation and amortisation, share-based payments, income or expense
related to the evaluation and execution of potential mergers or
acquisitions, adjustments related to terminated and unused data centre
sites, and other significant items that currently cannot be predicted.
The exact amount of these items is an estimate but may be significant.
Accordingly, the company is unable to provide equivalent reconciliations
from the corresponding forward-looking IFRS measures to expected
Adjusted EBITDA.

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.

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 recognised 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 capitalised interest – under IFRS, we are
  required to calculate and capitalise interest allocated to the
  investment in data centres and exclude it from net income. We believe
  that reversing the impact of capitalised 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 on-going
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 the tables attached to this press release.

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.

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 amortization, net finance expense,
total assets and total liabilities as reported for the first quarter of
2019 is provided in the tables attached to this press release.

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 52 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.

¹ Recurring revenue is revenue incurred from colocation and
associated power charges, office space, amortized 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.

² Adjusted net income (or ‘Adjusted diluted earnings’),
Adjusted EBITDA and Adjusted EBITDA excluding the impact of IFRS 16, are
non-IFRS measures intended to adjust for certain items and are not
measures of financial performance under IFRS. 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 and net income
to Adjusted net income, can be found in the financial tables later in
this press release.

³ Capital expenditures, including intangible assets,
represent 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.

⁴ We present constant currency information 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.

Contacts

Interxion
Jim Huseby
Investor Relations
+1-813-644-9399
IR@interxion.com

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