Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q1 2019 Earnings Presentation
20 slides from Liberty Latin America's earnings presentation, May 8, 2019
Slide 1: Liberty Latin America Q1 2019 Investor Call
LIBERTY LATIN AMERICA Q1 2019 INVESTOR CALL May 8, 2019 Part of Liberty Latin America
Slide 2: Safe Harbor: Forward-Looking Statement and Defined Terms
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS AND DISCLAIMER 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 targets;
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q1 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Key Messages: Good Start to 2019
(1) LIBERTY LATIN AMERICA | KEY MESSAGES GOOD START TO 2019 1 Record Q1 RGU Additions of 73,000; Mobile Additions Positive 2 Rebased Revenue +4% & OCF +9%; Strong Growth in Puerto Rico 3 Network Expansion: >80,000 Homes Passed or Upgraded In Q1 4 Significantly Improved Adjusted FCF Performance vs PY
Slide 5: Leading Fixed Connectivity
(1) LEADING FIXED CONNECTIVITY INCREASING PENETRATION OF HIGH-SPEED DATA SERVICES RGU GROWTH MOMENTUM FOCUS ON LEADING SPEEDS AND PRODUCTS IN THOUSANDS – FIXED SUBSCRIBER ADDITIONS +40 73 61 56 > 200 Mbps 40 42 AVERAGE PER CUSTOMER 33 16 Hurricane impact (31) Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 1
Slide 6: High-Speed Mobile Services
(1) HIGH-SPEED MOBILE SERVICES DELIVERING REVITALIZED PROPOSITIONS THROUGH SUPERIOR CONNECTIVITY SUBSCRIBER PERFORMANCE IMPROVING LTE SUBSCRIBER GROWTH IN THOUSANDS – MOBILE ADDITIONS IN THOUSANDS +22 40% LTE PENETRATION 11 28% +43% (8) 1,350 (11) (30) 945 (34) (33) (37) (76) Q2 17 Q3 17 Q4 17 Q1 18
Slide 7: Creating "Moments That Move Us"
CREATING “MOMENTS THAT MOVE US” POWERFUL PROPOSITIONS FOCUSED ON OUR CUSTOMERS PANAMA JAMAICA BAHAMAS, BARBADOS AND OTHER MARKETS DELIVERING HIGH-SPEED BUNDLES FOR FIXED CUSTOMERS SIMPLIFYING & ENHANCING OFFERS TO DRIVE MARKET SHARE REFRESHING OUR CUSTOMER VALUE PROPOSITIONS LIBERTY LATIN AMERICA |
Slide 8: Additional Levers of Growth
(1) ADDITIONAL LEVERS OF GROWTH LEVERAGING OUR ASSETS AND FOOTPRINT CONTINUED B2B DEVELOPMENT INORGANIC GROWTH Q1 BREAKDOWN OF REVENUE (2) (2) C&W CONSUMER 63% MARKETS 82k 74k LCPR 4% Purchased 87.5% stake for ~$160mm VTR 3% $289 Creates National Champion in Curaçao MILLION SUBSEA 20% 6x EV/EB
Slide 9: Strategic Vision: Unlocking Growth Opportunities
STRATEGIC VISION | UNLOCKING GROWTH OPPORTUNITIES BUILDING A FOUNDATION FOR SUSTAINABLE GROWTH 2019 BUSINESS PRIORITIES BUILD OUR TEAM DRIVE OUR PERFORMANCE TRANSFORM OUR BUSINESS GROW OUR COMPANY WITH M&A STRENGTHEN OUR BALANCE SHEET LIBERTY LATIN AMERICA | Q1 2019 INVESTOR CALL | MAY 8, 2019 | 9
Slide 10: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q1 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 11: Q1 2019 Financial Results
(1) Q1 2019 FINANCIAL RESULTS STRONG PERFORMANCE ACROSS KEY METRICS REVENUE OCF P&E ADDITIONS ADJUSTED FCF USD MM USD MM USD MM; AS % OF REVENUE USD MM 4% REBASED 9% REBASED 21% +94 943 366 48 910 194 341 15% 139 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 Q1 2018 Q1 2019 (46) (1) See Appendix f
Slide 12: Q1 2019 Regional Results
(1) Q1 2019 REGIONAL RESULTS STRONG LCPR RECOVERY RESULTS & REBASED GROWTH RESULTS & REBASED GROWTH RESULTS & GROWTH USD MM USD MM USD MM LCPR REVENUE RECOVERY 570 +60% 107 99 62 277 Q1 17 Q1 18 Q1 19 223 99 AS % OF 11% REVENUE AS % OF 107 20% REVENUE AS % OF 20% REVENUE 48 64 54 20 REVENUE OCF P&E
Slide 13: Robust Balance Sheet
ROBUST BALANCE SHEET EXTENSIVELY HEDGED WITH FURTHER EXTENDED MATURITY PROFILE AS AT MARCH 31, 2019 STRENGTHENING THE BALANCE SHEET C&W April financing activity (3) ADJUSTED $300mm additional 6.875% Unsecured Notes due 2027 6.4% $400mm new 5.75% Senior Secured Notes due 2027 WEIGHTED AVERAGE COS
Slide 14: Conclusions
CONCLUSIONS(1) ON-TRACK FOR 2019 GUIDANCE 1 Fixed & Mobile Campaigns Leading to Improved Performance 2 B2B Continuing to Generate Growth 3 Cost Opportunities to Drive H2 OCF 4 Disciplined Capital Allocation to Create Shareholder Value (1) See Appendix for definitions and additional information. LIBE
Slide 15: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q1 2019 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 16: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION B2B calculations, debt is measured using swapped foreign currency rates, consistent with the covenant Business-to-business subscription revenue represents revenue from services to certain SOHO calculation requirements of our subsidiary debt agreements. subscrib
Slide 17: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION TELEPHONY SUBSCRIBER A home, residential multiple dwelling unit or commercial unit that receives voice services over our networks. Telephony subscribers exclude mobile telephony subscribers. TWO-WAY HOMES PASSED Homes passed by those sections of our networks th
Slide 18: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION INFORMATION ON REBASED GROWTH have identified all adjustments necessary to present their revenue and OCF on a basis that is For purposes of calculating rebased growth rates on a comparable basis for all businesses that we comparable to the corresponding post-ac
Slide 19: Operating Cash Flow Definitions and Reconciliations
OPERATING CASH FLOW DEFINITIONS AND RECONCILIATIONS As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our directly comparable to similar measures used by other public companies. OCF should be viewed as a Form 10-Q. OCF is the primary measure used by our chie
Slide 20: Adjusted Free Cash Flow Definition and Reconciliations
ADJUSTED FREE CASH FLOW DEFINITION AND RECONCILIATIONS We define Adjusted FCF as net cash provided by our operating activities, plus (i) cash payments for third- replace the property and equipment that was damaged or destroyed as a result of the Hurricanes. We party costs directly associated with su
Liberty Latin America — Q1 2019 Earnings Presentation on 6ix