Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q3 2013 Earnings Presentation
27 slides from Liberty Global's earnings presentation, Nov 6, 2013
Slide 1: Q3 2013 Investor Call
Q3 2013 Investor Call November 6, 2013
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities our FCF, our ability to access cash of our subsidiaries and the impact of our future financial performance and market conditions generally, on the availability, Litigation Reform Act of 1995: terms and deployment of capital, fluctuatio
Slide 3: Agenda
Agenda Recent Highlights Financial Results Q&A 3
Slide 4: Operating and Financial Highlights
(1) Operating and Financial Highlights Organic Growth M&A | Innovation Balance Sheet • Solid RGU additions of • Announced agreement to sell • Liquidity of $5.5 bn, including 314,000 in Q3 2013 Chellomedia for $1.0 bn $2.2 bn of cash • Combined YTD rebased • Virgin Media integration in • Over 85% of
Slide 5: Steady Volume Gains & Improving Mix
(1) Steady Volume Gains & Improving Mix Record Q3 broadband additions combined with low video attrition Broadband Adds Telephony Adds 198 214 211 192 193 147 153 110 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Video Losses Total Organic Adds Q3 2010 Q3 2011 Q3 2012 Q3 2013 326 32
Slide 6: Speed Leadership Across Markets
Speed Leadership Across Markets Sept’13: AT & PL at 250 Mbps, CZ & HU at 240 Mbps, IE & RO at 200 Mbps Germany Belgium Netherlands Switzerland United Kingdom 200 Mbps 150 150 Mbps Mbps Top 150 120 120 120 120 Speed Mbps 3x Mbps Mbps Mbps Mbps 100 Lead 100 100 120 120 Mbps Bundle Mbps 2x Mbps 2x Mbps
Slide 7: Successful Next-Gen TV Roll-out
(1,2) Successful Next-Gen TV Roll-out Netherlands Horizon picks up pace & TiVo penetration up 19 pts YoY 18% >200k Ireland 1,102k 9% >30k (Horizon TV base) 337k Germany 1% >25k United 2,214k Switzerland Kingdom 18% >110k 49% 3,753k >1.8 million 621k (TiVo base) (1) Number in the circle represents th
Slide 8: Germany – Steady Volume & ARPU Gains
(1) Germany – Steady Volume & ARPU Gains • Continued momentum with 124,000 organic RGU additions in Q3 • Enhanced video proposition with Horizon TV • Premium bundle with 150 Mbps, 3x faster than VDSL • Displaying pricing power with new bundles • KBW integration fully on track (1) Please see Appendix
Slide 9: Belgium – Accelerating Triple-play Growth
(1) Belgium – Accelerating Triple-play Growth • Record Q3 organic RGU additions of 48,000 • Successful launch of Whop & Whoppa • Best 3P adds in four years • Content simplification with Rex & Rio • Doubled mobile subs LTM to >700,000 (1) Please see Appendix for the definition and information on orga
Slide 10: Netherlands – Signs of Improvement
(1) Netherlands – Signs of Improvement • Organic RGU additions of 8,000 in Q3, our best quarter in over one year • Strong reception to new bundles • Doubled speed of core bundle to 120 Mbps • 12,000 broadband RGU additions in Q3 • Introduced UPC WifiSpots in Oct’13 (1) Please see Appendix for the de
Slide 11: Switzerland – Solid Execution Yields Results
(1) Switzerland – Solid Execution Yields Results • Q3 organic RGU additions of 19,000, driven by broadband • Strong take-up of our 150 Mbps product • Launching 500 Mbps in Bern region • Over 110,000 Horizon TV subs to date • Best rebased quarterly OCF growth since 2008 (1) Please see Appendix for th
Slide 12: United Kingdom – Integration in Full Swing
United Kingdom – (1,2) Integration in Full Swing Virgin Media synergies ($ mm) • Increased customers by 14,000 in Q3 $350 ~2x • Continued traction of superfast BB $180 • 165,000 new TiVo subs in Q3 • BT Sport and Netflix added to line-up Original Estimate New Estimate • B2B growth prospects improvin
Slide 13: Agenda
Agenda Recent Highlights Financial Results Q&A 13
Slide 14: YTD 2013 Combined Rebased Growth
(1) YTD 2013 Combined Rebased Growth Continued appeal of our market leading triple- & quad-play bundles drives results Revenue Growth OCF Growth Over 85% of top-line growth driven by Big 5 Fueled by Western Europe 5% 6% 4% 5% 4% 2% Liberty Global Virgin Media Combined Liberty Global Virgin Media Com
Slide 15: YTD 2013 Regional Summary
(1) YTD 2013 Regional Summary Performance driven by Germany, Belgium and Switzerland Nine months ended September 30, 2013 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe $9,005 5% $4,443 4% Chile (VTR) $748 8% $257 10% (3) Liberty Global (Reported) $10,301 4% $4,720 4% (4) Liberty G
Slide 16: European OCF Growth Breakdown
(1) European OCF Growth Breakdown Combined YTD rebased OCF growth of 5% Germany Belgium Switzerland United Kingdom(2) Central Europe Netherlands 10% 9% 9% 8% 8% 7% 6% 3% Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD (3%) (5%) Q3 2013 (7%) YTD Q3 2013 (10%) (1) Please see Appendix for the definition and
Slide 17: YTD Combined P&E Additions and FCF
(1,2) YTD Combined P&E Additions and FCF Expect strong Adjusted FCF in Q4 P&E Additions to Revenue Combined Adj. Free Cash Flow Declined YoY by 20 bps ($ mm) $968 21.8% 21.6% $784 24% $2,700 $2,830 YTD 2012 YTD 2013 YTD 2012 YTD 2013 (1) Please see Appendix for the definition of P&E Additions and th
Slide 18: Leverage, Liquidity & Repurchase Program
(1) Leverage, Liquidity & Repurchase Program Balance sheet remains strong with average long-term debt tenor of seven years Leverage Liquidity $5.5 bn Share Repurchases Liberty Global parent cash 5.3x 5.0x $1.2 $2.8 bn May’15 $3.3 $1.0 ~20% Operating ~$700 mm subsidiaries’ Borrowing cash Sept. 30, 20
Slide 19: Conclusions
Conclusions Solid net additions in Q3 Continue leveraging superior networks Fall marketing campaigns working ~2x Synergy upside at Virgin Media Liberty Global Q3 2013 Investor Call | November 6, 2013 19
Slide 20: Appendix
Appendix 20 20
Slide 21: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally Belgium, Germany, Chile, Poland, Hungary and indicated, ARPU per customer relationship for the accepted in the United States. the Netherlands of 3,031,900, 712,900, 196,900, European Operations and Liberty Global 79,900,
Slide 22: Definitions and Additional Information
Definitions and Additional Information Digital penetration is calculated by dividing the the three months ended September 30, 2012 indicative of the revenue and OCF that would have number of digital cable RGUs by the total number include Virgin Media, OneLink and three small occurred if these transa
Slide 23: 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 24: Free Cash Flow and Adjusted Free Cash Flow
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 GAAP measures of liquidity included in our our operating activities, plus (i) excess tax benefits eliminate the incremental FCF d
Slide 25: Additional Information
Additional Information Free Cash Flow and YTD Combined P&E Leverage and Liquidity Adjusted Free Cash Flow Additions and CapEx . 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 excess of tax
Slide 26: Combined Liberty Global and Virgin Media
Combined Liberty Global and Virgin Media The Liberty Global amounts presented below Appendix. The Virgin Media pre-acquisition property and equipment additions that would are on a reported basis, including Virgin Media amounts have been converted at the average have occurred if the Liberty Global/Vi
Slide 27: Combined Free Cash Flow and Adjusted Free Cash Flow
Combined Free Cash Flow and Adjusted Free Cash Flow The Liberty Global amounts presented below earlier in this Appendix. The Virgin Media pre- Adjusted FCF that would have occurred if the are on a reported basis, including Virgin Media acquisition amounts have been converted at Liberty Global/Virgin