Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2021 Earnings Presentation
31 slides from Liberty Global's earnings presentation, May 6, 2021
Slide 1: Liberty Global plc Investor Call Q1 2021
LIBERTY GLOBAL PLC INVESTOR CALL | Q1 2021 May 6, 2021
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” our affiliates’ ability to adequately forecast and plan future network requirements including the costs and benefits performance, or Forward-Looking Statements + Disclaimer market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency excha
Slide 3: Executive Summary
Slide 4: Key Headlines for Q1
KEY HEADLINES FOR Q1 Commercial momentum Confirming FY’21 guidance continues into 2021 VM/O2 transaction on track Pending regulatory approval for June close from the CMA FMC Champions are Scale, synergies, strength delivering & strategic optionality Infrastructure ecosystem Access to capital, new te
Slide 5: Creating an FMC Champion
#1 Mobile #3 Broadband #2 Pay-TV Market Share3 Market Share3 20% Market Share3 24% 40% SCALE 33m Mobile #1 On-Net #2 On-Net Subs1 41% On-Net4 37% On-Net4 5.5m 3.4m Pay-TV Broadband Subs2 Subs2 SYNERGIES Substantial synergies £540m Run-Rate CREATING valued at £6.2bn NPV Synergies by 5th year AN FMC C
Slide 6: Strong Operating Momentum
YOY REVENUE GROWTH %(1) Best performance in 9 quarters 1.4% 0.7% Supported by convergence and B2B REVENUE 0.0% GROWTH (0.6%) B2B revenue +10%(1) driven by WS & SOHO (3.6%) Consumer revenue ahead of plan Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 FIXED CUSTOMER GROWTH (000’s) 37 42 Best growth in a price-ris
Slide 7: Q1 Operating Highlights
Q1 OPERATING HIGHLIGHTS(1) CONSOLIDATED CORE OPERATING MARKETS Q1 Q1 YOY YOY Q1 YOY Q1 YOY(4) (4) Q1 YOY Q1 YOY Fixed Customer Net Adds 38k 57k 31k 32k 4k 11k (5k) 12k (20k) 14k Broadband Net Adds 80k 58k 43k 33k 14k 13k 9k 1k (9k) 19k Postpaid Mobile Net Adds 146k 30k 63k 9k 42k 6k 15k
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Slide 9: Returning to Revenue Growth
RETURNING TO REVENUE GROWTH (1) 0.2% LG REBASED REVENUE GROWTH (1) 1.4% UKIE REBASED REVENUE (1.3%) BE REBASED REVENUE 0.2% GROWTH ($m) GROWTH ($m) (0.5%) 1,771 (0.3%) (1.3%) 1,748 783 773 (4.3%) Q1'20 Q1'21 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q1'20 Q1'21 (0.3%) CH REBASED REVENUE 1.8% NL(2) REBASED REVEN
Slide 10: Costs to Capture Weigh on EBITDA
COSTS TO CAPTURE WEIGH ON EBITDA (1) (1.7%) LG REBASED Adj (1.9%) UKIE REBASED Adj 3.2% BE REBASED Adj EBITDA GROWTH ($m) EBITDA GROWTH ($m) EBITDA GROWTH ($m) Inc. 19 Costs to Capture(3) Inc. 6 Costs to Capture 1,390 706 693 372 1,367 360 Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 (7.3%) CH REBASED Adj 2.
Slide 11: OFCF Remains Strong
OFCF REMAINS STRONG (1) 5.0% LG REBASED OFCF 4.3% UKIE REBASED OFCF 5.0% BE REBASED OFCF GROWTH ($m) GROWTH ($m) Inc. 6 Costs to Capture GROWTH ($m) Inc. 30 Costs to Capture(3) 621 308 214 591 204 295 Q1'20 Q1'21 Q1'20 Q1'21 Q1'20 Q1'21 (6.2%) CH REBASED OFCF 17.5% NL(2) REBASED Excludes Spectrum GR
Slide 12: On Track for $1.35bn FY'21 FCF Guidance
ON TRACK FOR $1.35BN FY ‘21 FCF GUIDANCE (1) $m Q1 2020 Q1 2021 $m 2019 2020 2021 CONSOLIDATED OFCF $496 $621 ADJUSTED FREE $770 $1,070 $1,350* NET INTEREST (579) (553) CASH FLOW (2) CASH TAX 5 8 VODAFONE ZIGGO Dist. 11 13 YOY GROWTH - 39% 26%* WORKING CAPITAL (3) (250) 4 SHARES 633m 580m 564m ADJUS
Slide 13: Capital Allocation
CAPITAL ALLOCATION Q1 FULL COMPANY LIQUIDITY (1,2) Existing FMC New / Pending $2.9bn $5.8BN Champions FMC Champions Revolving TOTAL UPC (incl. LIQUIDITY Q1’21 BE VZ Sunrise) VM/O2 Credit Facilities Leverage(3) 4.37x 5.54x 4.65x 5x WACD 3.4% 4.2% 4.0% 4.4% $2.9bn Cash/SMAs Av. Life ~7.5 years ~7.5 ye
Slide 14: Conclusions
CONCLUSIONS (1,2) LG Adjusted FCF of $1.35bn (assuming VMO2 transaction closes mid-year) Innovating to stay ahead of the competition GUIDANCE GUIDANCE GUIDANCE GUIDANCE IFRS BASIS Executing convergence Returning to Returning to Revenue growth Adj EBITDA strategy & returning to Revenue growth overcom
Slide 15: Appendix
Slide 16: Virgin Media: Project Lightning Update
VIRGIN MEDIA: PROJECT LIGHTNING UPDATE Construction continued through third U.K. lockdown and improved efficiency driving down cost of build HIGHLIGHTS CONSTRUCTION ACTIVITY KPIs • Periodic U.K. CPP of £590 in Q1 PREMISES CONSTRUCTED (000s) ARPU £ • Utilised PIA for over 20% of UK Lightning to date:
Slide 17: Q1 2021 Adjusted Attributed FCF
Q1 2021 ADJUSTED ATTRIBUTED FCF U.K. & Poland / Liberty 50-50 $m Belgium Switzerland Central (1) Ireland Slovakia Global Dutch JV (2,3) ADJUSTED EBITDA $693 $372 $282 $57 ($37) $1,367 $565 P&E pre-lightning P&E (4) (320) (158) (166) (23) (14) (681) (234) OFCF pre-lightning P&E $373 $214 $116 $34 ($5
Slide 18: Central Update
CENTRAL UPDATE Cost base managed in line with service agreements $m Q1 2020 Q1 2021 Total Operating Costs(1) ($145) ($162) • Includes both T&I (core & partner markets) and Corporate spend Central Revenue(2) $101 $103 • TSA revenue from partner markets offset 100% of related costs • Structures in pla
Slide 19: 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 20: 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 as filed with the Securities and 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 decisi
Slide 21: Glossary
GLOSSARY B2B: Business-to-Business. Costs to capture (CTC): Costs to capture generally include incremental, third-party operating and capital related costs that are directly associated with integration activities, restructuring activities, and certain other costs associated with aligning an acquiree
Slide 22: Glossary
GLOSSARY Mobile Subscriber Count: The number of active SIM cards in service rather than services provided. For example, if a mobile subscriber has both a data and voice plan on a smartphone this would equate to one mobile subscriber. Alternatively, a subscriber who has a voice and data plan for a mo
Slide 23: 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 24: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 24
Slide 25: Reconciliations: Adjusted EBITDA
RECONCILIATIONS ADJUSTED EBITDA The following tables provide a reconciliation of our net earnings to Adjusted EBITDA for the indicated periods: 25
Slide 26: Reconciliations: Adjusted FCF
RECONCILIATIONS ADJUSTED FCF The following table provides a reconciliation of our net cash provided by operating activities to Adjusted Free Cash Flow for the indicated periods: 26
Slide 27: Reconciliations: Adjusted FCF - Continued
RECONCILIATIONS ADJUSTED FCF - CONTINUED 27
Slide 28: Centrally-Held P&E Attributions / Attributed OFCF
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED OFCF Property and equipment additions presented for Central and Corporate include certain capital costs incurred for the benefit of our operating segments. Generally, for purposes of the consolidated financial statements of our borrowing g
Slide 29: Supplemental Adjusted Attributed Free Cash Flow
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW We define adjusted free cash flow as net cash provided by our operating activities, plus (i) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions and (ii) expenses financ
Slide 30: Supplemental Adjusted Attributed Free Cash Flow (Cont.)
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW (CONT.) a. Includes intersegment eliminations. b. Represents interest on an intercompany loan that we eliminate for purposes of this presentation as intercompany interest income/expense does not impact our leverage calculations in our c
Slide 31: VodafoneZiggo JV Adjusted Free Cash Flow
RECONCILIATIONS VODAFONEZIGGO JV ADJUSTED FREE CASH FLOW (JV FCF) JV Adjusted FCF is defined as net cash provided by operating activities, plus (i) expenses financed by an intermediary and (ii) interest payments on certain Shareholder loans, less (a) capital expenditures, (b) principal payments on a