Slide 1: Liberty Global plc Investor Call Q3 2018
LIBERTY GLOBAL PLC INVESTOR CALL | Q3 2018 November 8, 2018
Slide 2: Safe Harbor
“SAFE HARBOR” income and OCF amounts for all prior-year periods presented herein have been restated to reflect the impact of ASU 2017-07. ASU 2014- Forward-Looking Statements + Disclaimer 09 and ASU 2017-07 are collectively referred to herein as “New GAAP.” This presentation contains forward-looking
Slide 3: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 3
Slide 4: Q3 2018 Highlights
Q3 2018 HIGHLIGHTS Solid group results led by robust Virgin Media performance CONTINUING OPERATIONS | Q3 • Vodafone transaction remains on track for Net Adds 28k Revenue Growth 1.9% (2) mid-2019 completion OCF Growth 5.2% (2) • Continued operating momentum at Virgin • Belgian synergies underpin OCF
Slide 5: Q3 Net Adds
Q3 NET ADDS Record volume growth in the U.K. partially offset by weakness in Belgium and Switzerland QUARTERLY RGU NET ADDS BROADBAND (000s) • 117,000 Continuing Operations broadband adds LTM; 218,000 Discontinued Operations broadband adds LTM • Continued speed leadership across our footprint, Gigab
Slide 6: Virgin Media Q3 Update
VIRGIN MEDIA Q3 UPDATE (1) Record Q3 net adds, solid financial performance with 4.1% revenue and 5.3% OCF growth OPERATING RESULTS PROJECT LIGHTNING FIXED RGU NET ADDS CUSTOMER ARPU • Consistent YTD build pace (000s) REBASED GROWTH YOY • KPIs continue to support attractive returns 1.9% 1.6% 1.6% CUM
Slide 7: Q3 Update: Continuing Ops & Dutch JV
Q3 UPDATE | CONTINUING OPS & DUTCH JV (1, 2) Challenging RGU and top-line trends, but strong underlying cash flow generation BELGIUM SWITZERLAND DUTCH JV (50%) SYNERGIES CONTINUE REVAMPING THE FURTHER SIGNS TO DRIVE OCF GROWTH VIDEO PROPOSITION OF STABILIZATION (53k) • Disconnects impacted by July p
Slide 8: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 8
Slide 9: Q3 2018 Financial Results
Q3 2018 FINANCIAL RESULTS (1, 2) Improved rebased OCF growth and lower capital intensity vs 2017 REVENUE OCF P&E ADDITIONS USD BN / REBASED GROWTH USD BN / REBASED GROWTH USD BN / AS % REVENUE CONTINUING DISCONTINUED CONTINUING FULL CONTINUING FULL OPERATIONS OPERATIONS OPERATIONS COMPANY OPERATIONS
Slide 10: Continuing Operations by Segment
CONTINUING OPERATIONS BY SEGMENT (1) Belgium supports Q3’s OCF margin expansion of 120 bps YoY to 43.7% LIBERTY GLOBAL U.K. & IRELAND BELGIUM (CONTINUING OPERATIONS) 5.2% 2.5% 4.4% 4.1% 4.1% 0.9% 2.8% 2.7% REVENUE REVENUE REVENUE 2.2% 2.6% 1.9% 1.5% (1.3%) (1.0%) (1.5%) Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q
Slide 11: P&E Additions | Continuing Operations
P&E ADDITIONS | CONTINUING OPERATIONS Significantly lower capital intensity than prior year with further reductions in FY 2019 CAPITAL SPEND 36.7% 35.1% • YTD 2018 P&E additions of $2.7bn 8.5% 31.8% NEW BUILD 30.1% • Central spend continues to support Full Company 8.4% & UPGRADE 28.4% 6.1% 5.2% • Ta
Slide 12: Conclusions
CONCLUSIONS Operations performing in-line with expectations • Solid Q3 results at Virgin Media • Telenet continues to benefit from FMC synergies • Switzerland challenged, turnaround plan underway • Confirming all 2018 guidance(1): REBASED P&E NEW BUILD ADJUSTED OCF GROWTH ADDITIONS & UPGRADE FCF Con
Slide 13: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 13
Slide 14: Rebase Information
REBASE INFORMATION For purposes of calculating rebased growth rates on a comparable basis for all businesses that growth rates: we owned during 2018, we have adjusted our historical revenue and OCF for the three and nine months ended September 30, 2017 to (i) include the pre-acquisition revenue and
Slide 15: 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 Free Cash Flow (FCF): net cash provided by our operating activities, plus (i) cas
Slide 16: Glossary
GLOSSARY (iv) Represents our preliminary estimate of the net cash flows that we growth for revenue and OCF. Customer Churn: the rate at which customers relinquish their would have received from transition services agreements if the sale of the subscriptions. The annual rolling average basis is calcu
Slide 17: Glossary
GLOSSARY Internet Subscriber: a home, residential multiple dwelling unit or commercial unit that receives internet to significant litigation and impairment, restructuring and other operating items. Other operating items include services over our networks, or that we service through a partner network
Slide 18: Glossary
GLOSSARY RGU: A Revenue Generating Unit is separately a Basic Video Subscriber, Enhanced Video Subscriber, DTH Subscriber, Internet Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer
Slide 19: Appendix - Belgium
APPENDIX - BELGIUM For purposes of its standalone reporting obligations, Telenet prepares its consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (EU IFRS). Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as ne