Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q1 2021 Earnings Presentation
21 slides from Liberty Latin America's earnings presentation, May 6, 2021
Slide 1: Q1 2021 Investor Call
LIBERTY LATIN AMERICA Q1 2021 INVESTOR CALL May 6, 2021 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 businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Liberty Latin America Key Messages
LIBERTY LATIN AMERICA | KEY MESSAGES(1) GOOD START TO 2021 GIVEN CHALLENGING ENVIRONMENT; STEADILY RECOVERING FROM COVID-19 1 2 3 4 +76K +3% ~130K $58M FIXED RGU REBASED ADJ. HOMES ADDED / ADJUSTED ADDITIONS OIBDA GROWTH UPGRADED FCF Record Q1 performance, driven Solid YoY financial 98% of new build
Slide 5: Market Highlights
MARKET HIGHLIGHTS(1) UNDERPINNED BY LEADING NETWORKS & PRODUCTS; SUPPORTED BY ACCRETIVE ACQUISITIONS JAMAICA BAHAMAS • Continuing new build and network upgrades • Tourism rebound expected in H2 2021 • Leveraging our fixed-mobile capabilities to achieve • FTTH network upgrades driving broadband adds
Slide 6: Fixed: Record Q1 Net Additions
FIXED | RECORD Q1 NET ADDITIONS(1) GROWTH ACROSS ALL REPORTING SEGMENTS, YOY IMPROVEMENT DRIVEN BY PUERTO RICO FIXED RGU EVOLUTION FIXED RGU ADDITIONS (LOSSES) | IN THOUSANDS ARPU PER CUSTOMER RELATIONSHIP x% YOY FX-NEUTRAL CHANGE $48 (1)% $78 +3% $43 +9% 38 43 34 35 25 28 25 19 21 9 7 6 7 3 2 Q1 20
Slide 7: Mobile: Record Q1 Performance
MOBILE | RECORD Q1 PERFORMANCE(1) CONTINUED RECOVERY FROM 2020 PANDEMIC IMPACTS, SIGNIFICANT IMPROVEMENT IN PANAMA MOBILE SUBSCRIBER EVOLUTION MOBILE ADDITIONS (LOSSES) | IN THOUSANDS MOBILE ARPU x% YOY FX-NEUTRAL CHANGE $14 +0% $45 25 35 2 PRE-AT&T ACQUISITION (2) (2) (28) +3K (176) POSTPAID Q1 20
Slide 8: B2B & Subsea: Providing End-to-End Connectivity
B2B & SUBSEA | PROVIDING END-TO-END CONNECTIVITY (1) STEADY GROWTH IN NETWORKS & LATAM; INCUMBENT MARKETS RECOVERING NETWORKS & LATAM SUBSEA NETWORK OVERVIEW REVENUE IN USD MILLIONS SUBSEA LATAM 87 90 84 84 INCUMBENT >50,000 Km of cable: most OPERATOR extensive network in the Caribbean INTEGRATED Un
Slide 9: COVID-19 Update: Over a Year Into the Pandemic
COVID-19 UPDATE | OVER A YEAR INTO THE PANDEMIC(1) SIGNIFICANT PROGRESS & OPTIMISTIC OUTLOOK FOR LLA LIGHT AT THE END CHALLENGING 2020 PROGRESS OF THE TUNNEL • Quick assessment and • Building momentum with • Expect improving market decisive action taken record Q1 subscriber adds backdrop during rest
Slide 10: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 11: Q1 2021 Financial Results
Q1 2021 FINANCIAL RESULTS(1) SOLID YEAR-OVER-YEAR PERFORMANCE REVENUE ADJUSTED OIBDA P&E ADDITIONS ADJUSTED FCF IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS; AS % OF REVENUE IN USD MILLIONS 0% REBASED 1,160 3% REBASED 14% 931 13% +107 449 364 152 133 58 (49) Q1 20 Q1 21 Q1 20 Q1 21 Q1 20 Q1 21 Q1
Slide 12: Revenue & Adjusted OIBDA Sequential Evolution
REVENUE & ADJUSTED OIBDA SEQUENTIAL EVOLUTION(1) Q1 RESULTS POSITIVELY IMPACTED BY LIBERTY MOBILE CONTRIBUTION REVENUE ADJUSTED OIBDA IN USD MILLIONS IN USD MILLIONS $3.8BN $1.5BN 1,160 1,097 931 888 849 449 428 364 360 333 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 (1) See Appendix
Slide 13: Segment Financial Results
SEGMENT FINANCIAL RESULTS(1) STRONG GROWTH IN LPR & CT; C&W PERFORMANCE IMPROVING; VTR CHALLENGING Q1 2021 Q1 2021 Q1 2021 Q1 2021 Q1 2021 IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS 12% 9% 9% 22% 20% 430 AS % OF AS % OF AS % OF AS % OF AS % OF REVENUE REVENUE 361
Slide 14: Sound Balance Sheet & Liquidity Position
SOUND BALANCE SHEET & LIQUIDITY POSITION(1) SUCCESSFULLY COMPLETED $1.7 BILLION OF FINANCING TRANSACTIONS ACROSS VTR & LPR CASH & RCF AVAILABILITY(2) FINANCING ACTIVITY • New $410m Senior Secured Notes • Total of $1.32 billion raised $1.3 $1.2 • due 2029 Refinanced Term Loans • • $500m Term Loan due
Slide 15: Conclusions
CONCLUSIONS(1) ON-TRACK TO ACHIEVE FULL YEAR TARGETS 1 2 3 4 RECOVERY & FOOTPRINT INORGANIC 2021 GROWTH EXPANSION STRATEGY TARGETS Region reopening PR & USVI integration P&E Additions to be Fiber focus for new steadily activity to increase ~18% of revenue build through rest of year Some markets rema
Slide 16: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 17: Definitions & Additional Information
DEFINITIONS & ADDITIONAL INFORMATION ADJUSTED OIBDA MARGIN (receipts)) and net debt to annualized Adjusted OIBDA of the latest two quarters. Net debt is defined as total Calculated by dividing Adjusted OIBDA by total revenue for the applicable period. debt (including the convertible notes) less cash
Slide 18: Information on Rebased Growth
INFORMATION ON REBASED GROWTH Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a of the acquired entities and (d) other items we deem appropriate. We do not adjust pre-acquisition periods to comparable basis for all businesses that we owned during 2021,
Slide 19: Adjusted OIBDA & Adjusted OIBDA less P&E Additions Definition & Reconciliation
ADJUSTED OIBDA & ADJUSTED OIBDA LESS P&E ADDITIONS DEFINITION & RECONCILIATION Adjusted OIBDA and Adjusted OIBDA less P&E Additions, each a non-GAAP measure, are the primary OIBDA less P&E Additions are meaningful measures because they represent a transparent view of our measures used by our chief o
Slide 20: Adjusted Free Cash Flow Definition & Reconciliation
ADJUSTED FREE CASH FLOW DEFINITION & RECONCILIATION We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP measure, as net cash provided by our this measure can be used to gauge our ability to service debt and fund new investment opportunities. Adjusted operating activities, plus (i) cash paym
Slide 21: Consolidated Leverage Ratio Definition & Reconciliation
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION We have set forth below our consolidated leverage and net leverage ratios. Our consolidated leverage and net consolidated leverage and net leverage ratios are useful because they allow our investors to consider the leverage ratios, each a non-G
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