Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — FY2021 Earnings Presentation
44 slides from Liberty Global's earnings presentation, Feb 18, 2022
Slide 1: Investor Call FY 2021
LIBERTY GLOBAL PLC INVESTOR CALL FY 2021 FEBRUARY 18, 2022
Slide 2: Safe Harbor
“SAFE HARBOR” Forward-Looking Statements + Disclaimer Presentation of Continuing & Discontinuing Operations: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of On September 22, 2021, we entered into a sale a nd purchase agreeme
Slide 3: FY 2021 Key Highlights
FY 2021 KEY HIGHLIGHTS Delivered on all 2021 guidance across the FMC portfolio, 1 including upgraded Adjusted FCF guidance (1) for the group Strong aggregate broadband & postpaid mobile growth, driving 2 stable to growing revenues across FMC champions FMC penetrations increasing and integrations on
Slide 4: The Big Picture: Driving Shareholder Value
THE BIG PICTURE: DRIVING SHAREHOLDER VALUE EUROPEAN FMC GROWING VENTURES SHAREHOLDER CHAMPIONS PLATFORM VALUE CREATION #1 or #2 in every market(1) Three strategic pillars >>> Levered equity model with >>> over 85m aggregate Tech + Content + long-term fixed-rate debt fixed & mobile subs (2) Infrastru
Slide 5: 2021 Revenue: FMC Champions Back to Stable or Growing Revenues
2021 REVENUE: FMC CHAMPIONS BACK TO STABLE OR GROWING REVENUES(1) VodafoneZiggo2: VODAFONEZIGGO(2) TELENET Another year of strong revenue growth of +1.9% REVENUE GROWTH (%) REVENUE GROWTH (%) in 2021, +1.1% in Q4 driven by mobile growth NL market structure supportive of ARPU growth Telenet: 3.0% 3.7
Slide 6: Demand for Connectivity: Steady Broadband and Mobile Growth
DEMAND FOR CONNECTIVITY: STEADY BROADBAND AND MOBILE GROWTH ACROSS PORTFOLIO Broadband Net Adds Postpaid Mobile Net Adds VMO2: VMO2 (1) (2) BROADBAND TELENET BROADBAND AND POSTPAID MOBILE NET ADDS AND POSTPAID MOBILE NET ADDS Broadband growth across Lightning and BAU for 7th (000’S) (000’S) straight
Slide 7: Fixed-Mobile Convergence: Driving Growth & Customer Satisfaction
FIXED-MOBILE CONVERGENCE: DRIVING GROWTH & CUSTOMER SATISFACTION ACROSS THE FOOTPRINT FMC RATIOS(1) VMO2 LAUNCHED ‘VOLT’ ‘SUNRISE WE’ LAUNCHED 45% vs. 25% FMC YoY VMUK 56% +3% YoY • Exciting cross sell opportunity into mobile • Less than one-third of combined customer FMC base; ~2m O2 customers with
Slide 8: Fixed Network Strategies: Progressing Well in All Markets
FIXED NETWORK STRATEGIES: PROGRESSING WELL IN ALL MARKETS(1) IRELAND 15.6M HHs 1.0M HHs 3.4M HHs 3.0M HHs 7.3M HHs 1Gig+ 100% 100% 100% 100% 73% Footprint Coverage INCUMBENT ~28% ~30% ~40% ~16% ~44% YE ‘21 TOTAL FTTX(2) ~32% ~39% ~40% ~16% ~47% • Lightning ramps in ’22 to • FTTH upgrade is • Hybrid
Slide 9: Financial Results
INVESTOR CALL FY 2021 FINANCIAL RESULTS
Slide 10: Back to Stable and Growing Revenues
BACK TO STABLE AND GROWING REVENUES LG CONSOLIDATED REBASED VMO2 IFRS PROFORMA TRANSACTION BE REBASED REVENUE REVENUE GROWTH (1) ADJUSTED REVENUE GROWTH (2)(3) ($M) GROWTH (1) ($M) (1.1%) 0.7% 3.4% $3,043 $3,066 $13,494 $14,285 1.9% 1.5% 0.7% 0.2% (0.5%) (1.5%) Q4'20 FY'20 Q1'21 Q2'21 Q3'21 Q4'21 FY
Slide 11: Full Year Adjusted EBITDA Growth Improved
FULL YEAR ADJUSTED EBITDA GROWTH IMPROVED LG CONSOLIDATED REBASED ADJ VMO2 IFRS PROFORMA TRANSACTION BE REBASED ADJ. EBITDA EBITDA GROWTH ($M) (1) ADJUSTED ADJ. EBITDA GROWTH (2)(3) ($M) GROWTH (1) ($M) 1.0% 1.2% $4,973 $4,596 $1,482 $1,464 (1.0%) Inc. $81m Costs to Capture (1.7%) (1.4%) (0.3%) (6.2
Slide 12: Integration and Synergy Plans Progressing
INTEGRATION AND SYNERGY PLANS PROGRESSING LG CONSOLIDATED REBASED VMO2 IFRS PROFORMA TRANSACTION ADJ. BE REBASED ADJ. EBITDA ADJ. EBITDA LESS EBITDA LESS P&E ADDITIONS GROWTH (2)(3) LESS P&E ADDITIONS P&E ADDITIONS GROWTH ($M) (1) ($M) GROWTH (1) ($M) (2.7%) $2,158 (3.0%) (31.0%) $1,864 $920 $892 $1
Slide 13: Free Cash Flow: FY '21 Guidance Achieved
FREE CASH FLOW: FY ’21 GUIDANCE ACHIEVED (1) FY FY $M 2020 2021 $M 2020 2021 ADJ EBITDA LESS P&E ADDITIONS $2,201 $1,921 FULL COMPANY AS NET INTEREST (1,121) (821) REPORTED ADJUSTED FREE $1,013 $1,389 CASH FLOW CASH TAX (248) (190) VMO2 JV (Dividend) - 215 YOY GROWTH 31% 37% VODAFONE ZIGGO (Dividend
Slide 14: Solid Quarter for Ventures: Value Increased to $3.5bn
SOLID QUARTER FOR VENTURES: VALUE INCREASED TO $3.5BN OR ~$6.70 PER SHARE(1) VENTURES FAIR MARKET VALUE ($M) Solid year for ventures, ending with $3.5bn FV (+$1.1bn vs Dec-2020), +46% year on year1 $3.5bn • Tech - $1bn funding round for $3.1bn Lacework and valuation now >$8bn • Content - Closed Univ
Slide 15: Capital Allocation: $1.6bn Buyback in 2021
CAPITAL ALLOCATION: $1.6BN BUYBACK IN 2021 Q4 LIQUIDITY (1) FMC CHAMPIONS $5.3B $5.3B $1.6B TOTAL TOTAL LIQUIDITY Revolving LIQUIDITY Credit UPC (incl. Q4’21 BE VZ(3) Sunrise) VMO2(3) Facilities Leverage(2) 4.34x 5.24x 4.90x 4.49x $3.7B WACD 3.2% 4.3% 3.5% 4.5% Cash/SMAs Av. Life ~6.5 years ~6.6 yea
Slide 16: Conclusions
CONCLUSIONS 2022 OUTLOOK(2) $1.7B (1,2) LG Distributable GUIDANCE (IFRS basis)(3) Cash Flow • Improved revenue growth • Mid-single-digit Transaction Adjusted EBITDA growth Changing guidance metric to Distributable Cash Flow (1) (before CTC) going forward to now include recapitalisations (5) • Opex a
Slide 17: Appendix
INVESTOR CALL FY 2021 APPENDIX
Slide 18: FY 2021 Adjusted Attributed FCF
FY 2021 ADJUSTED ATTRIBUTED FCF LIBERTY 50-50 50-50 TOTAL VODAFON VMO2 JV CENTRAL GLOBAL $M U.K.(1) IRELAND BELGIUM SWITZERLAND POLAND LIBERTY EZIGGO JV (2) CONTINUING IFRS BASIS GLOBAL OPERATIONS (3,4) ( 3 , 4,5) ADJUSTED EBITDA $1,085 $219 $1,482 $1,209 ($32) $3,963 $210 $4,173 $2,266 $2,869 PRE-L
Slide 19: Central Update
CENTRAL UPDATE $m 2020 2021 Total Operating Costs(1) ($576) ($719) • Initiatives in place to help flex cost base with TSA expiration Central Revenue (2) $394 $597 • 2021 central revenue uplift reflects VMO2 TSA’s. Opex allocation $82 $66 • T&I Opex allocations already reflected within OpCo Segment A
Slide 20: Rebase Information
REBASE INFORMATION Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2021, we have adjusted our historical r
Slide 21: Rebase Information (Continued)
REBASE INFORMATION (CONTINUED) The follow ing table provides adjustments made to the 2019 amounts (i) in aggregate for our consolidated reportable segments to derive our rebased grow th rates: 21
Slide 22: Glossary
GLOSSARY 10-Q or 10-K: As used herein, the terms 10-Q and 10-K refer to our most recent quarterly or annual report asfiled with the Securitiesand Exchange Commission on Form 10-Q or Form 10-K, as applicable. Adjusted EBITDA: Adjusted EBITDA is the primary measure used by our chief operating decision
Slide 23: Glossary
GLOSSARY ARPU per Mobile Subscriber: Our ARPU per mobile subscriber calculation that e xcludes inte rconnect revenue refers to the average monthly mobile subscription revenue per average mobile subscriber and is calculated by dividing the average monthly mobile subscription revenue (excluding handse
Slide 24: Glossary
GLOSSARY Lightning premises: Includes homes, residential multiple dwelling units and commercial premises tha t pote ntia lly could subscribe to our res idential or SOHO services, which have been connecte d to the VMO2 JV networks in the UK as a part of the Project Lightning network extension program
Slide 25: Reconciliations: Rebase Adjustments
RECONCILIATIONS REBASE ADJUSTMENTS Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For further details on adjustments made to arrive at our rebase growth rates for the periods below, refer to our previously issued ear
Slide 26: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 26
Slide 27: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 27
Slide 28: Reconciliations: Adjusted EBITDA & Adjusted EBITDA Less P&E Additions
RECONCILIATIONS ADJUSTED EBITDA & ADJUSTED EBITDA LESS P&E ADDITIONS The following tables provide a reconciliation of our net earnings (loss) from continuing operations to Adjusted EBITDA and Adjusted EBITDA to Adjusted EBITDA less P&E for the indicated periods: Three months ended December 31, Year
Slide 29: Reconciliations: Adjusted EBITDA
RECONCILIATIONS ADJUSTED EBITDA The following table provides a reconciliation of our net earnings (loss), as historically reported, to Adjusted EBITDA, as historically reported, for the indicated periods. These amounts have not been revised to reflect Poland discontinued operations. September 30, De
Slide 30: Reconciliations: Liberty Global Full Company Adjusted FCF
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF We define Adjusted Free Cash Flow as net cash provided by the operating activities of our continuing operations, plus operating-related vendor financed expenses (which represents an increase in the period to our actual cash available as a resu
Slide 31: Reconciliations: Full Company Adjusted FCF (Continued)
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF (CONTINUED) 31
Slide 32: Reconciliations: Centrally-Held P&E Attributions
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED ADJUSTED EBITDA LESS P&E ADDITIONS Property and equipment additions presented for Central and Corporate include certain capital costs incurred for the benefit o f our operating segments. Generally, for purposes of the consolidated financia
Slide 33: Reconciliations: Centrally-Held P&E Attributions (Continued)
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED ADJ EBITDA LESS P&E ADDITIONS - CONTINUED A reconciliation of our Adjusted EBITDA to attributed Adjusted EBITDA less P&E Additions, including Centrally-held Property and Equipment Attributions, consistent with our internal management repor
Slide 34: Reconciliations: Centrally-Held P&E Attributions (Continued)
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED ADJ EBITDA LESS P&E ADDITIONS - CONTINUED 34
Slide 35: Reconciliations: Supplemental Adjusted Attributed Free Cash Flow
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW We define Adjusted Free Cas h Flow as net cash provided by the opera ting activities, plus operating-relate d vendor financed expenses (which represents an increase in the period to our actual cas h available as a result of extending ve
Slide 36: Reconciliations: Supplemental Adjusted Attributed FCF (Continued)
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW (CONTINUED) 36
Slide 37: Reconciliations: VodafoneZiggo JV
RECONCILIATIONS – VODAFONEZIGGO JV VODAFONEZIGGO JV ADJUSTED FREE CASH FLOW (VODAFONEZIGGO JV ADJ FCF) VodafoneZiggo JV Adjusted FCF is defined as net cash provided by operating activities, plus (i) operating-related vendor financed expenses (which represents an increase in the period to actual cash
Slide 38: VMO2 JV Reconciliations: Revenue
VMO2 JV RECONCILIATIONS – REVENUE The following tables provide reconciliations from VMO2 JV Transaction Adjusted IFRS revenue to US GAAP revenue for the indicated periods: 38
Slide 39: VMO2 JV Reconciliations: Revenue (Continued)
VMO2 JV RECONCILIATIONS – REVENUE (CONTINUED) The following tables provide reconciliations from VMO2 JV Transaction Adjusted IFRS revenue to US GAAP revenue for the indicated periods: 39
Slide 40: VMO2 JV Reconciliations: Revenue (Continued)
VMO2 JV RECONCILIATIONS – REVENUE (CONTINUED) The following tables provide reconciliations from VMO2 JV Transaction Adjusted IFRS revenue to US GAAP revenue for the indicated periods: 40
Slide 41: VMO2 JV Reconciliations: Revenue (Continued)
VMO2 JV RECONCILIATIONS – REVENUE (CONTINUED) The following tables provide reconciliations from VMO2 JV Transaction Adjusted IFRS revenue to US GAAP revenue for the indicated periods: 41
Slide 42: VMO2 JV Reconciliations: Adj EBITDA & Adj EBITDA Less P&E Additions
VMO2 JV RECONCILIATIONS – ADJ EBITDA & ADJ EBITDA LESS P&E ADDITIONS The following tables provide reconciliations from VMO2 JV Transaction Adjusted IFRS Adjusted EBITDA to US GAAP Adjusted EBITDA for the indicated periods: 42
Slide 43: VMO2 JV Reconciliations: Adj EBITDA (Continued)
VMO2 JV RECONCILIATIONS – ADJ EBITDA & ADJ EBITDA LESS P&E ADDITIONS (CONTINUED) The following tables provide reconciliations from VMO2 JV Transaction Adjusted IFRS Adjusted EBITDA to US GAAP Adjusted EBITDA for the indicated period: 43
Slide 44: VMO2 JV Reconciliations: Adjusted FCF
VMO2 JV RECONCILIATIONS – ADJUSTED FCF VMO2 JV ADJUSTED FREE CASH FLOW (VMO2 JV ADJ FCF) VMO2 JV Adjusted FCF is defined as net cash provided by operating activities, plus operating-related vendor financed expenses (which represents an increase in the period to actual cash available as a result of e