Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2012 Earnings Presentation
23 slides from Liberty Global's earnings presentation, May 11, 2012
Slide 1: Q1 2012 Investor Call
Q1 2012 Investor Call May 11, 2012
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including our expectations with respect to our 2012 outlook and future gro
Slide 3: Agenda
Agenda Q1 2012 Highlights Financial Results Q&A 3
Slide 4: Q1 2012 Highlights
Q1 2012 Highlights (1) Organic RGU additions up 71% to 445,000 Organic Accelerating rebased revenue growth of 5.5% Growth Adjusted FCF growth of 15% in line with guidance Austar proceeds of ~$1.1 billion expected late May M&A German integration progressing on schedule Activity European cable peer gr
Slide 5: Subscriber Momentum
Subscriber Momentum (1) Broadband adds continue ramping Voice propelled by bundled growth 277 254 229 230 190 192 193 154 155 156 34% 79% YoY YoY Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Video losses stable on larger RGU base Total Net Adds an LGI record 445 2% 380 (59)
Slide 6: All Regions Performing
All Regions Performing Q1 Net Additions (000s) 445 +24% • LatAm(2) net adds up 24% 33 347 +55% 27 • Western Europe net adds up 51% 193 • Central Europe up 67% 124 • Switzerland delivered its best result in 4 years +12% 87 (Kabel BW) • Germany accounted for 49% of 219 LGI’s net adds 109 • Quarterly r
Slide 7: Digital Driving Revenue
Digital Driving Revenue Evolution of Cable Video Subscribers Significant runway ahead Kabel BW 15 mm • 9 mm analog cable subs Unitymedia • ARPU uplift potential 10 mm Proven track record • 8 mm digital cable subs • 1 mm+ added each year 5 mm • 4 mm HD / DVR subs • Strong HD growth Q1 ’12 0 mm Q2 Q3
Slide 8: Winning Broadband Share
Winning Broadband Share The Netherlands Germany Quarterly Broadband Net Adds(1) Quarterly Broadband Net Adds(2) 35 114 30 105 27 101 24 99 UPC NL 86 15 Unitymedia 91 & Kabel BW 70 Deutsche 57 KPN Telekom (7) (consumer) (11) (11) (9) 36 24 (22) Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q1 '11 Q2 '11 Q3 '11
Slide 9: Spotlight on Germany
Spotlight on Germany Another strong quarter New bundled offers Record subscriber growth Simplifying offers, increasing value of bundles Strong demand for HD, DVR, & 3.0 50Mbps in core Double-digit revenue growth bundles, +€3 Remedy impact in line Promoting HD take-up Enriched Content I
Slide 10: New Product Development
New Product Development Horizon Mobile - the way forward - - selective approach - Launch in Q3 2012, the Netherlands first, Preparing for 4G commercial launch in Chile followed by Switzerland later this month Extended MVNO with Mobistar in Belgium Significant content on deployment MVNO con
Slide 11: Agenda
Agenda 2012 Highlights Financial Results Q&A 11
Slide 12: Q1 Financial Summary
Q1 Financial Summary (1) Revenue OCF Rebased Growth of 5.5% Rebased Growth of 3.1% ($mm) ($mm) $2,537 $2,258 $1,196 $1,062 12% 13% Q1 '11 Q1 '12 Q1 '11 Q1 '12 (1) Please see Appendix for the definition and reconciliation of OCF and for information on rebased growth. 12
Slide 13: Q1 Regional Summary
Q1 Regional Summary (1) Three months ended March 31, 2012 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth Europe (excl. BE)(2) $1,706 4% $882 4% Belgium (Telenet) 478 10% 236 6% Chile (VTR) 225 7% 75 (10%) Total LGI(3) $2,537 6% $1,196 3% (1) Please see Appendix for information on rebased grow
Slide 14: W. Europe Revenue Growth
W. Europe Revenue Growth (1) Germany – robust volume growth Belgium – driving ARPU & mobile (2) 9.7% 9.6% 8.3% 8.8% 8.7% 5.1% Q3 '11 Q4 '11 Q1 '12 Q3 '11 Q4 '11 Q1 '12 Netherlands – steady growth profile Switzerland – gaining momentum 4.5% 4.1% 4.0% 2.8% 2.2% 1.4% Q3 '11 Q4 '11 Q1 '12 Q3 '11 Q4 '11
Slide 15: Q1 CapEx & Adjusted FCF Results
Q1 CapEx & Adjusted FCF Results CapEx to Revenue Adjusted Free Cash Flow(1) ($mm) $279 21.7% $243 20.5% 15% Q1 '11 Q1 '12 Q1 '11 Q1 '12 Declining YoY trend Consistent w/ FY guidance (1) Please see Appendix for the definition and reconciliation of FCF and Adjusted FCF. 15
Slide 16: Leverage & Liquidity Snapshot
Leverage & Liquidity Snapshot (1) Adjusted Leverage Q1 ‘12 PF Total Liquidity of $4.8 bn ($bn) 5.0x 4.7x $1.7 $2.0 $1.1 Borrowing Capacity Cash Gross Net Austar Proceeds Leverage Leverage Ample liquidity for continued equity repurchases (1) Please see Appendix for accompanying footnotes. 16
Slide 17: Conclusions
Conclusions Strong demand for triple-play bundles Volume driving faster revenue growth Confirming all full-year guidance targets Significant liquidity to drive value creation 17
Slide 18: Appendix
LIBERTYGLOBAL. _
Slide 19: Definitions and Additional Information
Appendix Definitions and Additional Information GAAP are accounting principles generally accepted in the United States. Revenue Generating Unit (“RGU”) is separately an Analog Cable Subscriber, Digital Cable Subscriber, DTH Subscriber, MMDS Subscriber, Internet Subscriber or Telephony Subscriber. A
Slide 20: Definitions and Additional Information
Appendix Definitions and Additional Information Digital penetration is calculated by dividing the number of digital cable RGUs by the total number of digital and analog cable RGUs. Broadband internet and telephony penetration is calculated by dividing the number of broadband internet or telephony RG
Slide 21: Operating Cash Flow Definition and Reconciliation
Appendix Operating Cash Flow Definition and Reconciliation Operating cash flow is not a GAAP measure. Operating cash flow is the primary measure used by our chief operating decision maker to evaluate segment operating performance. Operating cash flow is also a key factor that is used by our internal
Slide 22: Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations
Appendix Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations(*) We define FCF as net cash provided by our operating activities, plus (i) excess tax benefits related to the exercise of stock incentive awards and (ii) cash payments for direct acquisition costs, less (a) capital
Slide 23: Footnotes to slide
Appendix Footnotes to slide 22 (1) Excess tax benefits from stock-based compensation represent the excess of tax deductions over the related financial reporting stock-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are reported as an increase to cash