Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q1 2020 Earnings Presentation
20 slides from Liberty Latin America's earnings presentation, May 6, 2020
Slide 1: Q1 2020 Investor Call
LIBERTY LATIN AMERICA Q1 2020 INVESTOR CALL May 6, 2020 Part of Liberty Latin America
Slide 2: Safe Harbor: Forward-Looking Statement and Defined Terms
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS AND DISCLAIMER targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financ
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q1 2020 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Liberty Latin America Key Messages
(1) LIBERTY LATIN AMERICA | KEY MESSAGES STRONG START TO 2020, COVID-19 TO IMPACT REST OF YEAR 1 Strong RGU adds of 60,000; record quarter for C&W up 22% year-over-year 2 Robust financial performance; rebased revenue growth of 2%, OCF up 4% 3 Expanded high-speed footprint; added / upgraded ~80,000 h
Slide 5: Q1 Operational Highlights
(1) Q1 OPERATIONAL HIGHLIGHTS CONTINUING OPERATING EXECUTION INTO Q1 FIXED RGUs | IN THOUSANDS FIXED RGUs | IN THOUSANDS FIXED RGUs | IN THOUSANDS ORGANIC ADDS +13 ORGANIC ADDS +38 3,402 3,390 3,369 ORGANIC ADDS +9 1,873 1,905 3,344 1,818 1,853 3,313 765 772 785 794 760 1,702 Q1 19 Q2 19 Q3 19 Q4 19
Slide 6: COVID-19 Key Focus Areas
COVID-19 | KEY FOCUS AREAS ANALYTICAL APPROACH DRIVING DECISION MAKING & CHANGE THROUGH AGILE ORGANIZATION • Focusing on safety, protecting colleagues & changing workplace practices 1 PEOPLE & SAFETY • Proactive actions from governments in our markets to “flatten the curve” • Delivering resilient an
Slide 7: People & Safety
PEOPLE & SAFETY COMMITMENT TO COLLEAGUES & PROACTIVE ACTIONS FROM GOVERNMENTS TO FLATTEN THE CURVE (1) “STAY AT HOME” MOBILITY CHANGE | PERCENTAGE 50% Chile & Panama started “Stay at Home” prior to US showing 40% ~2x growth of people staying in 1 30% 20% 10% 0% ENABLING PROTECTING 08 Mar 15 Mar 22 M
Slide 8: Network
NETWORK PROVIDING GOOD SERVICE FOR OUR CUSTOMERS DESPITE UTILIZATION GROWTH OTHERS FIXED NETWORK PEAK NETWORK THROUGHPUT | TBPS +38% -7% 5.2 4.8 HIGHER 3.8 2 BANDWIDTH UTILIZATION 01 Mar PEAK 26 Apr SUBSEA NETWORK(1) PEAK NETWORK THROUGHPUT | TBPS +47% -7% EXPANDED 1.7 1.6 SUBSEA 1.2 CAPACITY 01 Mar
Slide 9: Commercial
COMMERCIAL NEW PROPOSITIONS ADAPTING TO RETAIL STORE CLOSINGS & CHALLENGES FACING B2B CUSTOMERS Agile staff Virtual stores Moving call center Assisted & zero- agents and store SALES agents serving and touch self-install personnel to selling from home telesales and LivePerson Promote digital Redefine
Slide 10: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q1 2020 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 11: Q1 2020 Financial Results
(1) Q1 2020 FINANCIAL RESULTS SOLID START TO THE YEAR REVENUE OCF P&E ADDITIONS ADJUSTED FCF IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS; AS % OF REVENUE IN USD MILLIONS 2% REBASED 943 931 4% REBASED 15% 14% 366 364 (97) 139 Includes $67m of 133 insurance receipts 48 Q1 19 Q1 20 Q1 19 Q1 20 Q1 1
Slide 12: Q1 2020 Segment Results
(1) Q1 2020 SEGMENT RESULTS REBASED GROWTH ACROSS EACH SEGMENT Q1 2020 RESULTS Q1 2020 RESULTS Q1 2020 RESULTS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS 589 240 19% 233 105 AS % OF 13% REVENUE 12% AS % OF AS % OF REVENUE REVENUE 93 51 71 45 13 REVENUE OCF P&E REVENUE OCF P&E REVENUE OCF P&E AD
Slide 13: COVID-19 Considerations
COVID-19 CONSIDERATIONS ADVERSE FINANCIAL IMPACT IS EXPECTED TO VARY BY SEGMENT FACTORS INFLUENCING SEGMENT CONSIDERATIONS(1) FIXED B2B FINANCIAL & OPERATIONAL IMPLICATIONS PERFORMANCE MOBILE SUBSEA • Withdrawing 2020 financial guidance due to the uncertainty associated with COVID-19 • Restrictive l
Slide 14: Robust Balance Sheet
ROBUST BALANCE SHEET EXTENSIVELY HEDGED WITH EXTENDED MATURITY PROFILE AS AT MARCH 31, 2020 LIQUIDITY(2) MAINTENANCE COVENANT HEADROOM IN USD MILLIONS SECURED MAINTENANCE RATIO x TOTAL NET LEVERAGE 1,593 650 6.4% 426 CASH AVAILABLE RCF 5.0x 5.0x FULLY-SWAPPED BORROWING 3.0x COST $2.2BN >90% 562 687
Slide 15: Conclusions
(1) CONCLUSIONS EARLY RESPONSES ESTABLISH RESILIENT & AGILE OPERATING MODEL 1 Good start to 2020 driven by continued execution of operating strategy 2 Impacts from COVID-19 uncertain and will vary by market 3 Extensive planning and actions taken to adjust to changing environment 4 Acquisition of AT&
Slide 16: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | Q1 2020 RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 17: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION FULLY-SWAPPED BORROWING COST paying subscribers are counted as RGUs during their free promotional service period. Some of these Represents the weighted average interest rate on our debt (excluding finance leases and including subscribers may choose to disconnec
Slide 18: Definitions and Additional Information
DEFINITIONS AND ADDITIONAL INFORMATION INFORMATION ON REBASED GROWTH undetected errors. The adjustments reflected in our rebased amounts have not been prepared with a For purposes of calculating rebased growth rates on a comparable basis for all businesses that we view towards complying with Article
Slide 19: Operating Cash Flow Definition and Reconciliations
OPERATING CASH FLOW DEFINITION AND RECONCILIATIONS As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our meaningful measure because it represents a transparent view of our recurring operating performance Form 10-Q. OCF is the primary measure used by our chie
Slide 20: Adjusted Free Cash Flow Definition and Reconciliations
ADJUSTED FREE CASH FLOW DEFINITION AND RECONCILIATIONS We define Adjusted FCF as net cash provided by our operating activities, plus (i) cash payments for third- impact of associated pre-acquisition derivative contracts. As the debt was incurred directly as a result of party costs directly associate
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