Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q3 2012 Earnings Presentation
21 slides from Liberty Global's earnings presentation, Nov 5, 2012
Slide 1: Q3 2012 Investor Call
Q3 2012 Investor Call November 5, 2012
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities fluctuations in currency exchange and interest rates, the continued creditworthiness of our counterparties, the ability of vendors and suppliers to Litigation Reform Act of 1995: timely meet delivery requirements, as well as other fact
Slide 3: Agenda
Agenda Q3 2012 Highlights Financial Results Q&A LGI Q3 2012 Investor Call | November 5, 2012 3
Slide 4: Q3 2012 Highlights
(1) Q3 2012 Highlights Product innovation • Added 320,000 organic RGUs • Successful launch of Horizon in NL • Solid rebased revenue growth of 6% • Improved rebased OCF growth of 5% • Liquidity of $5.5 bn, including $3.3 bn of cash with $2.1 bn at parent • Over 95% of total debt due 2016 & beyond; FX
Slide 5: Strong RGU Growth
Strong RGU Growth (1) RGU Additions 9 Months YTD (000s) Triple-play success boosting results 1,129 812 520 342 2009 2010 2011 2012 (1) Please see Appendix for the definition and information on organic RGU additions. LGI Q3 2012 Investor Call | November 5, 2012 5
Slide 6: Successful Horizon Launch in NL
(1) Successful Horizon Launch in NL Sold over 50,000 Horizon subscriptions Over 125,000 unique Horizon TV online users since launch (1) Statistics as of November 1, 2012. LGI Q3 2012 Investor Call | November 5, 2012 6
Slide 7: Update on Mobile
(1) Update on Mobile Early days at UPC/Unity, VTR MNO positive & TNET changes strategy UPC/Unity Mobile VTR Mobile Telenet Mobile • Currently building full MVNO • Over 78,000 mobile subs • Attacker pricing model Pan-European platform • Great user experience • 66,000 net adds in Q3 • Multiple full MV
Slide 8: Fall Campaigns
Fall Campaigns Market leading bundles with speed advantage at competitive prices Germany Switzerland Clear speed leadership with 50MB Competitive price points across footprint Speed leadership with 100MB With HD DVR and wifi-modem LGI Q3 2012 Investor Call | November 5, 2012 8
Slide 9: Agenda
Agenda Q3 2012 Highlights Financial Results Q&A LGI Q3 2012 Investor Call | November 5, 2012 9 9
Slide 10: YTD Financial Summary
(1,2) YTD Financial Summary Strong top-line rebased growth driven by 1.5 mm LTM RGU Additions Revenue OCF Rebased Growth of 6% Rebased Growth of 4% $7,581 $3,615 $7,106 7% $3,383 7% YTD '11 YTD '12 YTD '11 YTD '12 (1) All amounts are in USD millions. (2) Please see Appendix for the definition and re
Slide 11: Q3 Regional Summary
(1) Q3 Regional Summary Excluding VTR Wireless, Q3 OCF rebased growth of 7% Three months ended September 30, 2012 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe (excl. BE) $1,687 6% $906 6% Belgium (Telenet) 461 6% 241 8% Chile (VTR) 241 7% 82 (7%) (3) Total LGI $2,519 6% $1,225 5%
Slide 12: Western Europe Rebased OCF Growth
(1) Western Europe Rebased OCF Growth (2) Germany – ramping growth Belgium – lapping football costs 12% 8% 7% 1% Q3 '11 Q3 '12 Q3 '11 Q3 '12 Netherlands – steadying trend Switzerland – driving RGUs 7% 6% 4% 2% Q3 '11 Q3 '12 Q3 '11 Q3 '12 (1) Please note all growth figures are rebased. Please see App
Slide 13: YTD CapEx & Adjusted FCF Results
(1) YTD CapEx & Adjusted FCF Results Expect strong Adjusted FCF in Q4 (2) CapEx to Revenue Adjusted Free Cash Flow YoY decline of 80bps YTD Adj. FCF increase of 4% 19.9% $440 19.1% $423 YTD '11 YTD '12 YTD '11 YTD '12 (1) Please see Appendix for the definition and reconciliation of Adjusted FCF and
Slide 14: Leverage and Total Liquidity
(1) Leverage and Total Liquidity Liquidity to fund Telenet offer & complete 2012 buyback Adjusted Leverage Q3 ‘12 Total Liquidity of $5.5 bn 5.2x ($bn) 4.5x $2.1 $3.3 bn $2.2 cash $1.2 Borrowing Capacity LGI Parent Cash Gross Leverage Net Leverage Operating Subsidiaries’ Cash (1) Please see Appendix
Slide 15: Conclusions
Conclusions Improved Revenue & OCF rebased growth Confirming all 2012 guidance targets Horizon fortifying bundling advantage Excited about fall marketing campaigns LGI Q3 2012 Investor Call | November 5, 2012 15
Slide 16: Appendix
Appendix
Slide 17: Definitions and Additional Information
Appendix Definitions and Additional Information GAAP are accounting principles generally subscriptions to mobile services in our additions or losses refer to net organic accepted in the United States. externally reported RGU counts. In this regard, changes, unless otherwise noted. our September 30,
Slide 18: Definitions and Additional Information
Appendix Definitions and Additional Information Digital penetration is calculated by dividing entities are included in our results for the three entities and (iv) other items we deem the number of digital cable RGUs by the total and nine months ended September 30, 2012, appropriate. We do not adjust
Slide 19: Operating Cash Flow Definition and Reconciliation
Appendix Operating Cash Flow Definition and Reconciliation Operating cash flow is the primary measure costs, such as third-party due diligence, legal our performance with the performance of used by our chief operating decision maker to and advisory costs, and (iii) other acquisition- other companies
Slide 20: Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations
Appendix Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations(*) We define free cash flow as net cash We believe that our presentation of free cash consolidated cash flow statements.The provided by our operating activities, plus (i) flow provides useful information to our follo
Slide 21: Footnotes
Appendix Footnotes to Q3 CapEx & Adjusted Leverage & Total previous slide 20 FCF Results Liquidity from the 1) Excess tax benefits from stock-based 1) The capital expenditures that we report 1) Our gross and net debt ratios are compensation represent the excess of in our consolidated cash flow state