Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q2 2021 Earnings Presentation
22 slides from Liberty Latin America's earnings presentation, Aug 5, 2021
Slide 1: Q2 & H1 2021 Investor Call
LIBERTY LATIN AMERICA Q2 & H1 2021 INVESTOR CALL August 5, 2021 Part of Liberty Latin America
Slide 2: Safe Harbor: Forward-Looking Statements and Defined Terms
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS AND DISCLAIMER from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating targ
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Key Messages
LIBERTY LATIN AMERICA | KEY MESSAGES(1) STRONG Q2 SUBSCRIBER ADDITIONS & DOUBLE-DIGIT YOY REBASED ADJUSTED OIBDA GROWTH 1 2 3 4 5 +73K +118K +10% ~360K $500M FIXED RGU MOBILE SUB REBASED HOMES ADDED TELEFONICA ADDITIONS ADDITIONS ADJ. OIBDA / UPGRADED COSTA RICA GROWTH YTD ACQUISITION Strong Q2 Requ
Slide 5: Market Highlights
MARKET HIGHLIGHTS(1) IMPROVING PERFORMANCE DESPITE ONGOING COVID-19 IMPACTS PUERTO RICO CHILE COSTA RICA $1.2 • Broadband penetration driving fixed growth; robust mobile postpaid performance • RGU trends stabilized; fiber build and cost reduction initiatives progressing • Required authorizations rec
Slide 6: Fixed: Strong Q2 Performance
FIXED | STRONG Q2 PERFORMANCE(1) CONTINUING MOMENTUM IN C&W & PUERTO RICO; STABILIZATION IN CHILE FIXED RGU EVOLUTION FIXED RGU ADDITIONS (LOSSES) | IN THOUSANDS ARPU PER CUSTOMER RELATIONSHIP x% YOY FX-NEUTRAL CHANGE $48 +1% $78 (0)% $42 +5% 38 43 32 34 35 28 25 19 21 22 6 7 11 3 2 Q2 20 Q3 20 Q4 2
Slide 7: Mobile: Record Additions
MOBILE | RECORD ADDITIONS(1) SEQUENTIAL IMPROVEMENT DRIVEN BY JAMAICA PERFORMANCE MOBILE SUBSCRIBER EVOLUTION MOBILE ADDITIONS (LOSSES) | IN THOUSANDS MOBILE ARPU x% YOY FX-NEUTRAL CHANGE $15 +13% $XX $44 58 25 35 PRE-AT&T 2 ACQUISITION (2) (2) 6 +11K (176) POSTPAID Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q2
Slide 8: B2B: Steadily Recovering from Pandemic Impact
B2B | STEADILY RECOVERING FROM PANDEMIC IMPACT(1) POSITIVE OUTLOOK FOR H2 2021 AS LOCAL ECONOMIES SET TO RETURN TO GROWTH B2B REVENUE NETWORKS & LATAM B2B CUSTOMER SEGMENTS IN USD MILLIONS REVENUE | IN USD MILLIONS SUBSEA LATAM B2B REVENUE SPLIT | Q2 2021 % B2B REVENUE 5% • Recovery driven by 84 85
Slide 9: Infrastructure: Fixed, Mobile & Subsea
INFRASTRUCTURE | FIXED, MOBILE & SUBSEA(1) INVESTING IN NETWORK EXPANSION & UPGRADES NEW BUILD & UPGRADE PROGRAM FIXED & MOBILE TECHNOLOGY(2) SUBSEA NETWORK NEW BUILD / UPGRADED HOMES PASSED | IN THOUSANDS HOMES PASSED | IN THOUSANDS CHILE 4,042 LTE 359 PUERTO 1,146 5G RICO Q2 PANAMA 731 LTE 153 PEN
Slide 10: Strategy Update: Achievements and Next Steps
STRATEGY UPDATE(1) PROGRESSING WELL AGAINST OBJECTIVES; OPERATING & FINANCIAL PROSPECTS REMAIN ROBUST RECOVERY COST CAPITAL COMMERCIAL NETWORK ALLOCATION & GROWTH FOCUS ACHIEVEMENTS Strong fixed and mobile Consumer propositions Record new build / Panama operating Liberty Mobile net adds in H1 resona
Slide 11: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 12: Q2 & H1 2021 Financial Results
Q2 & H1 2021 FINANCIAL RESULTS(1) STRONG YOY GROWTH REVENUE ADJUSTED OIBDA P&E ADDITIONS ADJUSTED FCF IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS; AS % OF REVENUE IN USD MILLIONS 8% 10% 18% 18% (95) REBASED REBASED 1,168 849 464 333 215 153 130 35 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21 Q2 20 Q2 21
Slide 13: Segment Financial Results
SEGMENT FINANCIAL RESULTS(1) YOY GROWTH ACROSS MARKETS; VTR IMPACTED BY H2 2020 SUBSCRIBER LOSSES Q2 2021 Q2 2021 Q2 2021 Q2 2021 Q2 2021 IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS 17% 16% 14% 27% 20% 434 AS % OF AS % OF AS % OF AS % OF AS % OF REVENUE REVENUE 36
Slide 14: Revenue & Adjusted OIBDA Sequential Evolution
REVENUE & ADJUSTED OIBDA SEQUENTIAL EVOLUTION(1) GROWTH AND IMPROVING MARGIN REVENUE ADJUSTED OIBDA IN USD MILLIONS IN USD MILLIONS $3.8BN $2.3BN $1.5BN $0.9BN 1,160 1,168 1,097 931 888 849 449 464 428 364 360 333 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 (1) See Append
Slide 15: Balance Sheet & Liquidity Position
BALANCE SHEET & LIQUIDITY POSITION(1) AVAILABLE LIQUIDITY & LONG-DATED MATURITY PROFILE; SHARE BUYBACK ACTIVITY IN Q2 CASH & RCF AVAILABILITY(2) KEY METRICS $1.3 $1.2 6.0% 6.3YRS $10M BILLION BILLION WEIGHTED WEIGHTED LLA STOCK AVERAGE COST AVERAGE LIFE REPURCHASED CASH RCF AVAILABILITY OF DEBT(4) O
Slide 16: Conclusions
CONCLUSIONS(1) SOLID FIRST HALF OF THE YEAR 1 2 3 4 ON-TRACK FOOTPRINT INORGANIC GROWTH TO ACHIEVE EXPANSION STRATEGY GUIDANCE Recovery driving strong ~360k fiber homes AT&T operations in PR and P&E additions to be performance YTD passed YTD USVI ~18% of revenue COVID-19 impacts continue 2021 target
Slide 17: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 18: Definitions & Additional Information
DEFINITIONS & ADDITIONAL INFORMATION ADJUSTED OIBDA MARGIN (receipts)) and net debt to annualized Adjusted OIBDA of the latest two quarters. Net debt is defined as total Calculated by dividing Adjusted OIBDA by total revenue for the applicable period. debt (including the convertible notes) less cash
Slide 19: Information on Rebased Growth
INFORMATION ON REBASED GROWTH Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a accounting principles, (b) any significant effects of acquisition accounting adjustments, (c) any significant comparable basis for all businesses that we owned during 2021,
Slide 20: Adjusted OIBDA & Adjusted OIBDA less P&E Additions Definition & Reconciliation
ADJUSTED OIBDA & ADJUSTED OIBDA LESS P&E ADDITIONS DEFINITION & RECONCILIATION Adjusted OIBDA and Adjusted OIBDA less P&E Additions, each a non-GAAP measure, are the primary OIBDA less P&E Additions are meaningful measures because they represent a transparent view of our measures used by our chief o
Slide 21: Adjusted Free Cash Flow Definition & Reconciliation
ADJUSTED FREE CASH FLOW DEFINITION & RECONCILIATION We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP measure, as net cash provided by our this measure can be used to gauge our ability to service debt and fund new investment opportunities. Adjusted operating activities, plus (i) cash paym
Slide 22: Consolidated Leverage Ratio Definition & Reconciliation
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION We have set forth below our consolidated leverage and net leverage ratios. Our consolidated leverage and net consolidated leverage and net leverage ratios are useful because they allow our investors to consider the leverage ratios, each a non-G
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