Unitedglobalcom — Merger or Acquisition (March 2005)
40 slides from Unitedglobalcom's merger presentation, Mar 8, 2005
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Slide 10: UGC / LMI Merger
UGC / LMI Merger Liberty Global L wec © = [— chellomedia JUPITERS — _@rr Casha __| Other Assets
Slide 11: Rationale
Rationale Liberty Global Scale Simplicity Liquidity Growth
Slide 12: UGC Overview / LMI Merger / Q&A
e UGC Overview e LMI Merger © Q&A wen. oo,
Slide 13: What's Happening
What’s Happening Business strategies are colliding Telcos == Video ==> Voice Cable Other Trends: Satellite== 2-way Mobile => Content Everyone’s obsessed with wireless — But it's not a zero sum game Content wins either way — But the “middleman” survives Technology providers are hedging — But margins
Slide 14: Impact on Our Business
Impact on Our Business Competition drives our product and network decisions in Europe * Incumbent telcos & DSL * Expand product portfolio attackers exploiting double (e.g. data, VoIP, digital) and triple play * Expand footprint and reach * Emerging DTT and IPTV (e.g. M&A, off-net DSL) video competit
Slide 15: Triple Play Stats
Triple Play Statis RGU Breakdown!) Data Video Voice Data European Stats?) $12 $39
Slide 16: Video Voice Data
Video Voice Data Content Leadership Price Leadership Product Leadership Mobile Off Footprint 4- Play Positioning National Coverage “Take your home wih || “Compete head-to-head you" with the Telcos” ae oD
Slide 17: Video Strategy
Video Strategy Digital Home — Anything, Anytime, Anywhere a Video Voice Data Content Leadership Price Leadership Product Leadership * Maintain basic share * Customer service and value * Evaluate “Digital conversions" * Up sell
Slide 18: Data Strategy
Data Strategy Digital Home — Anything, Anytime, Anywhere a Video Voice Data Content Leadership Price Leadership Product Leadership * Broad portfolio of data tiers * Exploit network superiority * "Ultra Speed” leader (20 MB) * Value added services
Slide 19: Digital Home — Anything, Anytime, Anywhere
Digital Home — Anything, Anytime, Anywhere Video Voice Data Content Leadership Price Leadership Product Leadership 256 164 512/128 2048 / 512 09 000 / 1000] 00 16000 / 100 ae oD
Slide 20: European business financials
Uss mitions 9 Mos ‘except per sub Sep 04 Revenue $358.1 Gross Margin 349.5 42 GM % 98% 98% OCF $198.7 $24 OCF % 55% 55% Annualized OCF $264.9 $285 1), Ento-endanatysis for European business, including the 2% revenue spl to chelomedia Gvsien. Derived trom 03 04 figures use ternal cost slocaton method
Slide 21: Voice Strategy
Voice Strategy Digital Home — Anything, Anytime, Anywhere a Video Voice Data Content Leadership Price Leadership Product Leadership * Roll-out VoIP (“Digital Phone") * NL and HU launched Q4'04 * 5.5m homes RFS by mid-year * Push the voice/data bundle
Slide 22: VoIP Marketing
VoIP Marketing * Primary line for 25-50% less than incumbent * Lower usage rates & unlimited domestic packages * Ease of use - number portability - feature rich aren 92005
Slide 23: VoIP Results
VoIP Results * 50,000 sales in first 10-12 weeks * 50% -75% of sales bundled with Internet * 25,000 net adds at YE'04; growing backlog Weekty VoIP Sales 5,000 ‘EB Hungary HE Netneriands 43 44 45 46 47 48 49 50 51 52 53 Ou aren 92005 wre on
Slide 24: TDM vs VoIP per subscriber per month
(€’s per Sub/Month) TDM VoIP Revenue € 35.50 €31.40 Direct Cost 12.80 12.80 Gross Margin 22.70 18.60 Opex -4.80 -3.80 Operating CF 17.90 14.80 Cost of Acquisition Marketing €110 €90 CPE 265 63 Install/Other 415 65 Total 490 218 Payback “) 34 mos 17 mos 1) Cash on cash payback, ned 815% WAC, tT 4 @
Slide 25: Current Status
Current Status + Now launched in 7 markets « Total ARPU per customer up 8% « Austria proves the model - 42% 1300 0 Customer a a0 CRE France ML Norway Austria Europe (UPC) ‘Sweden » aren 9.2005 year-over year customers bundled [ARPU per customer! Converted frm euros to dre at rine morth 2004 average
Slide 26: European Consolidation
European Consolidati General Acquisition Characteristics Criteria * Highly fragmented * Consolidate or enter new markets * Financial investors * Favorable regulatory Wale; walue,value frameworks * Triple play potential * Three types of markets * Realizable synergies * Valuation gaps in WE * Appropri
Slide 27: Selected 2004 Deals
Selected 2004 Deals Indicative Deal Country RGUs_ Multiple” Rationale Noos France 1.7m 7.3x Consolidation Telemach Slovenia 110k 8.2x New market Chorus Ireland 200k 6.9x New market Telenet Belgium 2.5m 7.8x Strategic (1) Pease rater to ur por prese fleas fr further deals onthe valuations of thezetra
Slide 28: Conclusions
Conclusions ° Premier international MSO * Best in class organic cash flow growth * Outstanding internal and external strategic growth opportunities * Creation of Liberty Global will significantly enhance platform scale and balance sheet ~O-
Slide 29: UnitedGlobalCom, Inc.
UnitedGlobalCom, Inc. Allen & Company Scottsdale, Arizona March 8, 2005
Slide 30: Appendix: Operating Cash Flow Definition
Appendix Operating Cash Flow Definition + Operating Cash Flow isthe primary measure used by our chef operating decison makers to evaluate Segment-operating performance and to decide how to slocate resources to segments. ‘AS we use the term, Operating Cash Flow is defned as revenue less operating, se
Slide 31: Appendix: Other Definitions
Appendix Other Definit aren 92005 ns Free Cash Flow is not a GAAP measure of liquidity. We define Free Cash Flow as net cash ‘lows from operating activities less capital expenditures. We believe our presentation af free ‘cash flow provides Useful information to our investors because it can be used t
Slide 32: Appendix: Non-GAAP Reconciliations
Appendix aren 9.2005 Non-GAAP Reconciliations ecorilion Oper Cah lov to Nt esne(Lees)™ Nera dos (105) e28) a faa ‘Sept _sepo3 24 _ Sep aaseprectOpaaieg Gah Pow “Sais —siriake | — wale — senate Depecson snd smarate cs ee lpamert longed azo ast] Coo) ast Recrcraeg cages am “te oz am) Sekcaned ompenati
Slide 33: Appendix: UPC and UGC Plans
Appendix UR and Ue Pans aren 92005
Slide 34: Appendix: Supplemental Information
Appendix Supplemental Information aren 9.2005 1. Parte a me an ‘Son afte UPC Fla teowetuig. carpe Feta tb nua at SnainSscrge wwe Pe ‘Sed tote i pay onttlde $1089 alone rena rn rote. and Sot mmonin eck fon te $1017 ron teat repaitinttin ‘hee batbuten co Fea Ssusion ng raat ana conton aout Srepeaten r
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Appendix aren 9.2005
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Appendix aren 9.2005
Slide 39: Appendix: Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations Reconciliation of Operating Cash Flow with Net Income (Loss)! [anousangss ecco beo0t_0e002 sec Taal Semen Operate Carn Fim (Giese) (Fiona) woo.sT —_soz887 Depreciation and amoreion G.1a7.78) Geo") @oees) Impatmant of ong ives ae (1aqex) — @2e.sss) 2209) Rertucttg ch
Slide 40: Searchable text: Safe Harbor
Searchable text section of graphics shown above U nitedGlobalCom, Inc. [PHOTO] Allen & Company Scottsdale, Arizona March 8, 2005 [LOGO] “Safe Harbor” S afe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Forward Looking Statements: Except for historical information conta