Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2014 Earnings Presentation
24 slides from Liberty Global's earnings presentation, May 7, 2014
Slide 1: Q1 2014 Investor Call
Q1 2014 Investor Call May 7, 2014
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities future financial performance and market conditions generally, on the availability, terms and deployment of capital, fluctuations in currency exchange and interest Litigation Reform Act of 1995: rates, the continued creditworthiness of
Slide 3: Agenda
Agenda Recent Highlights Financial Results Q&A Liberty Global Q1 2014 Investor Call | May 7, 2014 3
Slide 4: Operating & Financial Highlights
(1) Operating & Financial Highlights Organic Growth M&A | Innovation Balance Sheet • Strong RGU additions of • Ziggo acquisition on track • Liquidity of $6.7 bn, including 345,000 in Q1 2014 for H2 2014 close $3.1 bn of cash • Q1 2014 revenue of $4.5 bn, • Acquired remaining 20% of • Opportunistical
Slide 5: Robust Subscriber Growth Continuing
(1) Robust Subscriber Growth Continuing Superior network driving broadband gains & lowering video attrition Broadband Adds Telephony Adds 233 239 231 177 Q1 2013 Q1 2014 Q1 2013 Q1 2014 Video Losses Total Organic Adds 373 345 Q1 2013 Q1 2014 (71) (92) Q1 2013 Q1 2014 (1) Organic RGU additions in the
Slide 6: Video Leadership across our Footprint
(1) Video Leadership across our Footprint Germany • 127,000 Net Adds & 15% rebased OCF growth • Strong demand for 150 Mbps broadband tier • Over 100,000 Horizon TV subscribers • Basic video price increases slated for H2 2014 United Kingdom • 35,000 Net Adds & 6% rebased OCF growth • Successfully exe
Slide 7: Improving & Expanding Quad-play Offers
(1) Improving & Expanding Quad-play Offers Belgium • 29,000 Net Adds & 17% rebased OCF growth • Strong triple-play growth continuing • Focused on a value-driven mobile strategy • Important new content contracts in place Switzerland • 21,000 Net Adds & 8% rebased OCF growth • Increased video & broadb
Slide 8: Driving Dutch Innovation & LatAm Growth
(1) Driving Dutch Innovation & LatAm Growth Netherlands • 7,000 Net Adds & 4% rebased OCF decline • Rolled out enhanced Horizon TV bundles • Expect Ziggo regulatory update shortly • Offer to be launched in the coming weeks Latin America • 49,000 Net Adds & 16% rebased OCF growth • New triple-play &
Slide 9: Strategic Game Plan in Europe
Strategic Game Plan in Europe Expanding Mobility Evolution of Horizon >4 MILLION MOBILE SUBS TODAY IMPROVING USER EXPERIENCE >1.5 MILLION WIFI HOMESPOTS OVER 550K HORIZON TV SUBS 4,000 PUBLIC HOTSPOTS HORIZON “IN THE CLOUD” Extending Speed Leadership Focus on Strategic Content OTT│SVOD TOP SPEEDS 15
Slide 10: Agenda
Agenda Recent Highlights Financial Results Q&A Liberty Global Q1 2014 Investor Call | May 7, 2014 10
Slide 11: Q1 2014 Rebased Growth
(1) Q1 2014 Rebased Growth OCF growth ahead of expectations Revenue Growth OCF Growth Germany and Chile fuel top-line results Western Europe drives OCF performance 9% 8% 6% Subscription Revenue | 4% 4% 4% Total Revenue | 3% 2% 1% Liberty Global Virgin Media Liberty Global Liberty Global Virgin Media
Slide 12: Q1 2014 Regional Summary
(1) Q1 2014 Regional Summary Robust OCF growth in Belgium, Germany and LatAm in Q1 2014 As of March 31, 2014 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe $4,223 2% $2,058 8% (3) Latin America $300 4% $112 16% (4) Liberty Global $4,534 2% $2,128 8% (1) Please see Appendix for info
Slide 13: "Big 5" Quarterly OCF Growth
(1) “Big 5” Quarterly OCF Growth Germany Belgium 17% Switzerland 15% 9% 8% 8% 8% Q4 2013 Q1 2014 Q4 2013 Q1 2014 Q4 2013 Q1 2014 UK Netherlands Liberty Global 6% 8% Q4 2013 Q4 2013 Q1 2014 2% Q1 2014 (4%) Q4 2013 Q1 2014 (4%) (6%) (1) Please see Appendix for the definition and reconciliation of OCF
Slide 14: Q1 2014 P&E Additions and FCF
(1) Q1 2014 P&E Additions and FCF Confirming ~$2.0 bn Adjusted FCF outlook for 2014 P&E Additions to Revenue Adjusted Free Cash Flow Declined by 30 bps YoY ($ mm) $350 23.4% 22.3% 47% 21.0% 20.4% 20.1% $238 (2) (Combined) (2) (2) Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q1 2013 Q1 2014 (1) Please see Appendix
Slide 15: Balance Sheet & Share Repurchases
(1) Balance Sheet & Share Repurchases Active in debt markets | Repurchased equity more aggressively in April Leverage at March 31, 2014 Share Repurchases of $4.5 bn program (in $ bn) 5.1x 4.8x $3.1 Dec’15 $1.0 $0.4 2013 March 31, 2014 Q1 2014 (2) (Combined) Gross Leverage Net Leverage Repurchased ~$
Slide 16: Conclusions
Conclusions Executing on Product Roadmap Network Advantage Driving Sub Growth Strong Q1 OCF & FCF Generation Ziggo Completion Tracking H2 2014 Liberty Global Q1 2014 Investor Call | May 7, 2014 16
Slide 17: Appendix
Appendix 17 17
Slide 18: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally 2,998,500, 779,800, 255,300, 83,000, 14,600, adjusted for currency impacts. ARPU per customer accepted in the United States. 8,500 and 3,500, respectively. Our mobile relationship amounts reported for periods ended subsc
Slide 19: Definitions and Additional Information
Definitions and Additional Information Digital penetration is calculated by dividing the costs becoming third-party costs and (iii) reflect contain undetected errors. The adjustments number of digital cable RGUs by the total number the translation of our rebased amounts for the reflected in our reba
Slide 20: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation Operating cash flow is the primary measure used long-lived assets, (b) third-party costs directly different countries in which we operate. We by our chief operating decision maker to evaluate associated with successful and unsuccessful believe our op
Slide 21: Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations
Free Cash Flow and Adjusted Free Cash Flow (*) Definitions and Reconciliations We define free cash flow as net cash provided by present Adjusted FCF, which adjusts FCF to substitute for, GAAP measures of liquidity included our operating activities, plus (i) excess tax benefits eliminate the incremen
Slide 22: Additional Information
Additional Information Free Cash Flow and P&E Additions and Leverage Adjusted Free Cash Flow CapEx (page 14, 21 and 24) (page 14) (page 15) 1) Excess tax benefits from share-based 1) Property and equipment additions include 1) Our gross and net debt ratios are defined as compensation represent the e
Slide 23: Combined FCF and Adjusted FCF and other information of Liberty Global and Virgin Media
Combined FCF and Adjusted FCF and other information of Liberty Global and Virgin Media The combined amounts presented below have Liberty Global as set forth earlier. The Virgin Adjusted FCF that would have occurred if the been included in this release to provide a Media pre-acquisition amounts have
Slide 24: Combined Liberty Global and Virgin Media (Continued)
Combined Liberty Global and Virgin Media (Continued) Three Months Ended March 31, 2013 Virgin Media pre- Liberty Global acquisition Combined Net cash provided by operating activities of continuing operations .................................................. $ 551.7 $ 472.3 $ 1,024.0 1 Excess tax be