Slide 1: Q3 2016 Investor Call
Q3 2016 Investor Call November 4, 2016
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements efficiencies from businesses we acquire; the availability of attractive programming for our video services and the costs associated with such This presentation contains forward-looking statements within the meaning of programming; our ability to achieve forec
Slide 3: Executive Summary
EXECUTIVE FINANCIAL SU MMA RY R E S U LT S LIBERTY GLOBAL GROUP LIBERTY GLOBAL GROUP LiLAC GROUP LiLAC GROUP Q3 2016 INVESTOR CALL Liberty Global plc | Q3 2016 Investor Call | November 4, 2016
Slide 4: Europe Key Highlights
(1) EUROPE I Key Highlights Growth New Build Customer Liberty Go Benefits Accelerating In Full Swing Experience Emerging RGU adds up Q4 ramp expected; WiFi, Eos, Netflix, Efficiency gains ~50% YTD; targeting 2016 goal of extensive content underpinning (2) OCF growth >5% >1.3mm in Europe & FMC H2 OCF
Slide 5: Europe Quarterly Trends
(1) EUROPE I Quarterly Trends Accelerating net additions YTD and strong improvement in Q3 rebased OCF growth (#k) TOTAL 231 257 135 5.2% VOICE 117 124 143 3.1% DATA 153 160 178 1.7% Q1 16 Q2 16 Q3 16 VIDEO (72) (39) EUROPE EXCLUDING NL (142) Q1 16 Q2 16 Q3 16 3.0% 0.6% 3.4% Net Adds YTD up ~50% YoY
Slide 6: Europe Future Growth Drivers
EUROPE I Future Growth Drivers Transforming our business to accelerate rebased revenue and OCF growth Breakdown of Revenue Growth Profile 2016-18 New Build B2B Mobile Fair Market Share & Pricing Power Liberty Global plc | Q3 2016 Investor Call | November 4, 2016 6
Slide 7: Europe New Build Ramping
EUROPE I New Build Ramping Ramping up to build 5+ million new homes 2016 - 2018 PROJECT LIGHTNING PENETRATION (OF HOMES PASSED) TARGET OF European New Build 5.6 – 6.3 Opportunity (3) 19% 29% MILLION NEW HOMES BY 13% 22% The UK represents our largest NEW BUILD END 2018 PROGRAM(1) IN 2016 new build pr
Slide 8: Europe B2B Delivering Accelerated Growth
(1,2) EUROPE I B2B Delivering Accelerated Growth Developing pan-European platform to drive B2B growth fueled by SOHO & SME OUR BUSINESS OUR EXPANSION TODAY Our Business OPPORTUNITY Opportunity (3) $1.7bn/year Today IN EUROPE Today ~$19bn REVENUE REVENUE B2B MARKET BY BY ON FOOTPRINT BUSINESS PRODUCT
Slide 9: Europe Mobile Rolled Out & Working
(1) EUROPE I Mobile Rolled Out & Working Driving fixed mobile convergence (FMC) Subs Revenue Country Structure (millions) ($ millions)(2) FMC Leverages Scale & Reach UK / Ireland MVNO 3.0 $826 19% National wireless platforms complement Belgium MNO 3.0 933 37% fixed network superiority Germany MVNO
Slide 10: Europe Connect & Play
EUROPE I Connect & Play Superior & seamless connectivity complemented with leading entertainment FIXED CONNECT MOBILE Superior speeds today of Ubiquitous & fluid connectivity up to 500 Mbps to simplify consumers’ lives Over 50mm “Gigaready” Innovative 4P bundles like homes & expanding reach
Slide 11: LiLAC Key Highlights
(1) LiLAC I Key Highlights LiLAC/CWC Q4 2016 Synergies CWC Outlook Additional synergies Challenging of $150 million environment and announced Hurricane Matthew Update New Build / Enhanced LiLAC Guidance Upgrade Ramping Customer Experience 2016 rebased OCF 80% of 150k target growth of 6% for complete
Slide 12: CWC Q3 Results & LiLAC/CWC Synergies
(1) CWC I Q3 Results & LiLAC/CWC Synergies Q3 CWC financial results below expectations; laying groundwork to improve topline Q3 performance Q3 Performance CWC OCF (amounts in USD millions) • Revenue decline of 4% and & Synergies (2) OCF growth of 3% in Q3 • Net adds grew by 9k $38mm other items $29m
Slide 13: VTR and LCPR On-Track With Solid Growth
(1,2) VTR and LCPR I On-Track With Solid Growth Investments driving organic growth; updated 2016 rebased OCF growth of 6% VTR LCPR 6% YTD Revenue & OCF Growth Revenue & OCF up 1% and 11% YTD, respectively - Strong Q3 BB & Mobile sub gains - Solid performance with macro challenges Enhancing the custo
Slide 14: Financial Results
EXECUTIVE FINANCIAL SU MMA RY R E S U LT S LIBERTY GLOBAL GROUP LIBERTY GLOBAL GROUP LiLAC GROUP LiLAC GROUP Q3 2016 INVESTOR CALL Liberty Global plc | Q3 2016 Investor Call | November 4, 2016
Slide 15: Europe YTD '16 Financial Results
EUROPE l YTD ’16 Financial Results (1,2) YTD Rebased OCF growth excluding NL at 3.3%; expect Q4 to be high point in 2016 3% 2% 13.1 12.8 6.1 6.1 YTD 2015 YTD 2016 YTD 2015 YTD 2016 22% 24% 2.8 3.1 1.7 1.0 YTD 2015 YTD 2016 YTD 2015 YTD 2016 (1) Please see Appendix for definitions and additional info
Slide 16: Europe Q3 Rebased Results
(1,2) EUROPE l Q3 Rebased Results OCF acceleration in Q3, supported by strong Unitymedia and Virgin Media results 7% 6% 6% 3% 3% 1% REVENUE OCF REVENUE OCF REVENUE OCF 0% OCF REVENUE 5% 3% 1% 2% (4)% REVENUE OCF REVENUE OCF (1) Please see Appendix for definitions and additional information. (2) Grow
Slide 17: Europe Leverage & Buybacks
(1) EUROPE l Leverage & Buybacks $1.6bn equity repurchased YTD, $2.4bn in additional buybacks by YE 2017 $1.0bn H1 2016 5.1x 5.0x SHARE REPURCHASES $0.6bn Q3 2016 Remainder till $2.4bn Year End 2017 GROSS NET $3.1bn Borrowing Capacity LIQUIDITY $3.6bn $0.1bn Operating Subsidiary Cash $0.4bn Parent C
Slide 18: LiLAC YTD Financial Results
(1,2,3) LiLAC l YTD Financial Results Strong results in Puerto Rico and Chile, CWC included since mid-May 1% 5% 1,801 708 908 364 YTD 2015 YTD 2016 YTD 2015 YTD 2016 20% 20% 40 365 YTD 2016 YTD 2015 185 (55) YTD 2015 YTD 2016 (1) Please see Appendix for definitions and additional information. (2) Am
Slide 19: LiLAC Q3 Financial Results
(1,2) LiLAC l Q3 Financial Results Strength in Legacy LiLAC Group, offset by CWC softness 3% 6% REVENUE OCF 3% -4% REVENUE OCF 21% 5% REVENUE OCF 0% (1)% REVENUE OCF (1) Please see Appendix for definitions and additional information. (2) Growth rate figures are rebased. Liberty Global plc | Q3 2016
Slide 20: LiLAC Guidance Update
(1) LiLAC l Guidance Update Organic growth and synergy potential driving medium-term growth prospects 2016 Long-term Guidance Guidance • 6% rebased 2016 OCF Our view of LiLAC’s combined growth for legacy LiLAC group OCF growth remains robust, and (Chile & Puerto Rico) within the previously disclosed
Slide 21: Conclusions
Conclusions Confirming full-year 2016 financial guidance targets for Europe Investing & innovating in seamless connectivity & great entertainment New build and upgrade program in full-swing; Q4 ramp expected Liberty Go program already yielding early benefits Laying the foundation for accelerating gr
Slide 22: Appendix
APPENDIX Q3 2016 INVESTOR CALL Liberty Global plc | Q3 2016 Investor Call | November 4, 2016
Slide 23: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted in acquisition. All subscriber/RGU additions or losses "limited adjusted FCF" after revising to include CWC the United States. refer to net organic changes, unless otherwise noted. and update FX rates to August
Slide 24: Definitions and Additional Information
Definitions and Additional Information Total B2B includes subscription (SOHO) and non- our video service over our broadband network or Telephony Subscriber is a home, residential multiple subscription revenue. Non-subscription revenue through a partner network via a digital video signal dwelling uni
Slide 25: Definitions and Additional Information
Definitions and Additional Information Homes Passed are homes, residential multiple for the nine months ended September 30, 2016, (iv) acquisition accounting adjustments, (c) any significant dwelling units or commercial units that can be exclude the pre-disposition revenue, OCF and differences betwe
Slide 26: Definitions and Additional Information
Definitions and Additional Information Information on Rebased Growth The following table provides adjustments made to the 2015 amounts to derive our rebased growth rates for the Liberty Global Group and the LiLAC Group: Liberty Global plc | Q3 2016 Investor Call | November 4, 2016 24 26
Slide 27: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our 10-Q. OCF is the primary measure used by our chief operating decision maker to evaluate segment operating performance. OCF is also a key factor that is us
Slide 28: Adjusted Free Cash Flow Definition and Reconciliations
Adjusted Free Cash Flow Definition and Reconciliations(*) We define adjusted free cash flow as net cash provided by our operating activities, plus (i) excess tax benefits related to the exercise of share-based incentive awards, (ii) cash payments for third-party costs directly associated with succes
Slide 29: Definitions and Additional Information
Definitions and Additional Information Adjusted Free Cash Flow 1. Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are
Slide 30: LiLAC Transaction
Definitions and Additional Information LiLAC Transaction On July 1, 2015, Liberty Global completed the "LiLAC Transaction" pursuant to which each holder of Liberty Global’s then-outstanding ordinary shares remained a holder of the same amount and class of new Liberty Global ordinary shares and recei
Slide 31: CWC U.S. GAAP OCF to EU-IFRS Adjusted EBITDA Reconciliation
CWC U.S. GAAP OCF to EU-IFRS Adjusted EBITDA SEC Regulation G Reconciliation The following table provides a reconciliation of CWC's previously disclosed Adjusted EBITDA under International Financial Reporting Standards as adopted by the European Union (EU-IFRS) based on CWC’s pre-acquisition definit
Slide 32: CWC U.S. GAAP OCF to IASB-IFRS Adjusted EBITDA Reconciliation (Continued)
CWC U.S. GAAP OCF to IASB-IFRS Adjusted EBITDA SEC Regulation G Reconciliation - (Continued) The following table provides a reconciliation of CWC's Adjusted EBITDA under IFRS as promulgated by the International Accounting Standards Board (IASB-IFRS) based on Liberty Global’s definition of Adjusted E
Slide 33: CWC U.S. GAAP OCF to IFRS Adjusted EBITDA Reconciliation (Continued)
CWC U.S. GAAP OCF to IFRS Adjusted EBITDA SEC Regulation G Reconciliation - (Continued) Footnotes: (i) Represents the historical revenue and OCF of CWC, as adjusted for identified differences between CWC's pre-acquisition EU-IFRS policies and Liberty Global's U.S. GAAP policies and, with respect to