Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — FY2014 Earnings Presentation
23 slides from Liberty Global's earnings presentation, Feb 13, 2015
Slide 1: 2014 Investor Call
2014 Investor Call February 13, 2015
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities Additional Information and Where to Find It Litigation Reform Act of 1995: Nothing in this presentation shall constitute a solicitation to buy or subscribe for or an offer to sell any securities of Liberty Global, including Liberty Glo
Slide 3: Agenda
Agenda Highlights Financial Results Appendix Liberty Global 2014 Investor Call | February 13, 2015 3
Slide 4: 2014 Highlights
(1) 2014 Highlights OPERATING & FINANCIAL PRODUCTS & BALANCE HIGHLIGHTS INNOVATION SHEET 1.3 million 2014 RGU adds; Project Lightning; ~4 mm Liquidity of $5.2 bn, including 500k postpaid mobile adds new homes in the U.K. $1.2 bn of cash Rebased revenue growth of Expansion of Horizon TV, Adj. Gross l
Slide 5: Ramping Innovation Across Our Markets
Ramping Innovation Across Our Markets Leveraging our superior broadband network (1) Annual Additions Video Losses Next-Generation TV Development (in millions) (as % of video base) (in millions) % of DTV 2010 0.7 0.8m 2.4% Q4 '13 2.4 18% 2011 0.8 1.2m 1.9% Q1 '14 2.7 20% 2012 0.9 1.6m 1.6% Q2 '14 2.9
Slide 6: Mobile & B2B Accelerate Growth
Mobile & B2B Accelerate Growth Growing significantly faster than residential triple-play business (1) Mobile Subscribers & Revenue 2014 Business Revenue (in billions) (in millions) (in billions) 4.5 $1.3bn 4.1 1.0 Prepaid 1.1 8% 4% B2B $1.7bn SOHO >25% Postpaid 3.6 REBASED $1.5 $0.2 2.9 GROWTH REBAS
Slide 7: LiLAC – Unique Investment Opportunity
(1) LiLAC – Unique Investment Opportunity Creating “pure-play” equity focused on Latin America and Caribbean #1 cable operator in Chile and Puerto Rico Strong 2014 OCF Sustainable growth opportunity in broadband & pay-TV 20% Growth Experienced management team (20+ yrs) in place 14% Well-positioned t
Slide 8: Project Lightning in the U.K.
(1) Project Lightning in the U.K. Five year program targeting ~4 million homes and businesses Network Coverage & Infill Opportunity (millions of premises) Highly accretive financial returns ~29 Modular investment opportunity Debt financed; minimal equity 12 • Less than 50 meters from our network Qua
Slide 9: 2015 Strategic Game Plan & Guidance
(1) 2015 Strategic Game Plan & Guidance Setting the stage for sustainable growth over the next 3-5 years Mid-single-digit OCF growth (1) Mid-teens FX-Adj. FCF growth EURODOCSIS 3.1 ~$2 billion of stock buybacks (1) Please see Appendix for information on combined mid-teens FX-Adjusted FCF growth. Lib
Slide 10: Agenda
Agenda Highlights Financial Results Appendix Liberty Global 2014 Investor Call | February 13, 2015 10
Slide 11: 2014 Financial Results on Target
(1,3) 2014 Financial Results on Target Rebased OCF growth of 5.5%, best in three years, driven by Germany and U.K. Revenue Growth OCF Growth 2013 $17,264 2013 $7,867 Combined(2) 3% Combined(2) 5.5% REBASED REBASED GROWTH GROWTH 2014 $18,248 2014 $8,522 Regional Revenue Breakdown Regional OCF Breakdo
Slide 12: 2014 “Big 5” Financial Results
(1) 2014 “Big 5” Financial Results Growth driven by broadband success underpinned by product innovation 9% 7% 6% 5% 5% 4% -1% -1% 7% 3% (1) Please see Appendix for definitions and additional information. Liberty Global 2014 Investor Call | February 13, 2015 12
Slide 13: Significant Free Cash Flow Generation
(1) Significant Free Cash Flow Generation 2014 Adjusted Free Cash Flow result exceeds guidance P&E Additions to Revenue Adjusted Free Cash Flow Declining Capital Intensity ($mm) +18% +25% 21.8% 21.4% $2,085 $2,207 $1,769 Combined(2) Combined(2) excl. incl. Ziggo Ziggo (1) Please see Appendix for the
Slide 14: FCF and Leverage Fuel Buybacks
(1) FCF and Leverage Fuel Buybacks Liquidity of $5.2 bn | Committed to repurchase ~$4 bn through the end of 2016 Adjusted Leverage Ratios Share Repurchases of $6.5bn program ($bn) 2015/16 target $3.9 4.9x 4.8x Dec’16 $1.0 $1.6 2014 2013 (1) Please see Appendix for definitions and additional informat
Slide 15: Conclusion
Conclusion All 2014 guidance targets achieved Momentum building into 2015 Share repurchases remain robust LiLAC vote on Feb. 24 Liberty Global 2014 Investor Call | February 13, 2015 15
Slide 16: Agenda
Agenda Highlights Financial Results Appendix Liberty Global 2014 Investor Call | February 13, 2015 16
Slide 17: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted 11,200, 10,600, 8,800 and 200, respectively. Our Organic RGU additions exclude RGUs of acquired in the United States. mobile subscriber count represents the number of entities at the date of acquisition, but inc
Slide 18: Definitions and Additional Information
Definitions and Additional Information Digital penetration is calculated by dividing the (iii) reflect the translation of our rebased amounts have not been prepared with a view towards number of digital cable RGUs by the total number of for the three months and year ended December 31, complying with
Slide 19: 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 operate. We believe our operating cash flow by our chief operating decision maker to evaluate associated with successful and unsuccessful measure is use
Slide 20: Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations
Free Cash Flow and Adjusted Free Cash (*) Flow Definitions and Reconciliations We define free cash flow (“FCF”) as net cash that we assumed in connection with certain represent our ability to fund discretionary amounts, provided by our operating activities, plus (i) excess acquisitions), with each i
Slide 21: Additional Information
Additional Information Free Cash Flow and Adjusted Free Cash Flow P&E Additions and CapEx Leverage and Liquidity 1) Excess tax benefits from share-based 1) Property and equipment additions include our 1) Our gross and net debt ratios are defined as compensation represent the excess of tax capital ex
Slide 22: Combined Revenue, Property & Equipment Additions and OCF
Combined Revenue, Property & Equipment Additions and OCF The combined amounts presented below have been the average GBP/USD foreign exchange rate for have occurred if the Liberty Global/Virgin Media included in this release to provide a means for the pre-acquisition period in 2013 as applicable. tra
Slide 23: Combined FCF and Adjusted FCF of Liberty Global and Virgin Media
(*) (*) Combined FCF and Adjusted FCF of Liberty Global and Virgin Media The combined amounts presented below have been the average GBP/USD foreign exchange rate for Adjusted FCF that will occur in the future. Our included in this release to provide a means for the pre-acquisition period in 2013 as