Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — FY2021 Earnings Presentation
24 slides from Liberty Latin America's earnings presentation, Feb 23, 2022
Slide 1: Liberty Latin America FY 2021 Investor Call
LIBERTY LATIN AMERICA FY 2021 INVESTOR CALL February 23, 2022 Part of Liberty Latin America
Slide 2: Safe Harbor: Forward-Looking Statements
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS AND DISCLAIMER and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programmi
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) STRONG OPERATING MOMENTUM, ADJUSTED FCF GENERATION & STRATEGIC PROGRESS IN 2021 1 2 3 4 5 STRATEGIC 269K 493K ~750K $200M MOVES FIXED RGU MOBILE SUB HOMES ADDED ADJUSTED STRENGTHEN ADDITIONS ADDITIONS / UPGRADED FCF FUTURE PROSPECTS Announced accretive >100k a
Slide 5: Fixed: Robust Recovery
FIXED | ROBUST RECOVERY(1) STRONG YOY IMPROVEMENT IN 2021 FIXED RGU EVOLUTION ORGANIC FIXED RGU ADDITIONS (LOSSES) | IN THOUSANDS ARPU PER CUSTOMER RELATIONSHIP x% YOY FX-NEUTRAL CHANGE(2) $48 (0)% $76 (2)% $42 (1)% 113 121 103 76 72 47 44 45 18 2019 2020 2021 2019 2020 2021 2019 2020 2021 $39 +0% $
Slide 6: Mobile: Record Year for Postpaid Additions
MOBILE | RECORD YEAR FOR POSTPAID ADDITIONS(1) PANAMA, JAMAICA & NEWLY ACQUIRED COSTA RICA OPERATION DRIVING STRONG GROWTH MOBILE SUBSCRIBER EVOLUTION ORGANIC MOBILE ORGANIC ADDITIONS (LOSSES) | IN THOUSANDS 122 135 138 PRE- ACQUISITION (2) 0 PRE-ACQUISITION (144) OF WHICH POSTPAID +8 +14 +40 +4 +39
Slide 7: B2B: Robust Recovery Underway
B2B | ROBUST RECOVERY UNDERWAY(1) C&W C&N: LARGEST CONTRIBUTOR FOR LLA; SUBSEA: DIVERSIFIED REVENUE & HIGH PROFITABILITY B2B REVENUE B2B REVENUE BY REPORTING SEGMENT NETWORKS & LATAM REVENUE BY GEOGRAPHY IN USD MILLIONS FY 2021 C&W C&N C&W PANAMA LPR VTR CR SUBSEA 69% +15% REBASED 391 11% 322 18% Q4
Slide 8: Network: Investing in High-Speed Connectivity
NETWORK | INVESTING IN HIGH-SPEED CONNECTIVITY(1) MAJORITY NEW BUILD & UPGRADE IN FTTH; LTE COVERAGE UP ACROSS FOOTPRINT & 5G IN PUERTO RICO FIXED NETWORK TECHNOLOGY(2) NETWORK EXPANSION / UPGRADE MOBILE LTE COVERAGE(3) % OF TOTAL HOMES PASSED HOMES PASSED ADDED & UPGRADED | IN THOUSANDS % OF SITES
Slide 9: M&A: Accretive Transactions Drive Additional Growth
M&A | ACCRETIVE TRANSACTIONS DRIVE ADDITIONAL GROWTH DISCIPLINED M&A SETS FOUNDATION FOR INORGANIC OPPORTUNITY M&A INTEGRATION UPDATE COMPLETED OCT OCT SEP OCT AUG DEC 2018 2018 2019 2020 2021 2021 RUN-RATE SYNERGIES POST >$70 ~$15 INTEGRATION MILLION MILLION 40% AT&T TEF BROADBAND CABLETICA UTS LPR
Slide 10: Strategic Vision: 2022 Roadmap
STRATEGIC VISION | 2022 ROADMAP FOCUSING ON KEY PRIORITIES ACROSS 3 PILLARS NEW BUILDS & IT UPGRADES TRANSFORMATION NETWORKS & IT FIXED MOBILE PRODUCT DIGITAL CHURN CONVERGENCE DEVELOPMENT CHANNELS REDUCTION COMMERCIAL INORGANIC SHARE INTEGRATION CAPITAL GROWTH BUYBACK ALLOCATION LIBERTY LATIN AMERI
Slide 11: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 12: Q4 & FY 2021 Financial Results
Q4 & FY 2021 FINANCIAL RESULTS(1) DELIVERED REBASED GROWTH REVENUE ADJUSTED OIBDA IN USD MILLIONS IN USD MILLIONS Q4 FY Q4 FY 6% REBASED 4% REBASED 3% REBASED 4% REBASED 4,799 1,829 3,765 1,485 1,097 1,279 428 470 Q4 20 Q4 21 FY 20 FY 21 Q4 20 Q4 21 FY 20 FY 21 P&E ADDITIONS ADJUSTED FCF IN USD MILL
Slide 13: 2021 Quarterly Evolution
2021 QUARTERLY EVOLUTION(1) STEADY PROGRESS THROUGH THE YEAR REVENUE ADJUSTED OIBDA ADJUSTED FCF IN USD MILLIONS YoY REBASED GROWTH IN USD MILLIONS YoY REBASED GROWTH IN USD MILLIONS 0% 8% 3% 6% 3% 10% 0% 3% $200 +35% MILLION YoY 1,279 1,192 1,160 1,168 470 464 449 446 58 56 51 35 Q1 21 Q2 21 Q3 21
Slide 14: Segment Financial Results
SEGMENT FINANCIAL RESULTS(1) GROWTH AGROSS ALL SEGMENTS BESIDES VTR; STRONG RECOVERY IN C&W PANAMA Q4 2021 Q4 2021 Q4 2021 Q4 2021 Q4 2021 IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS 453 169 376 107 175 196 141 63 55 29 REVENUE ADJ. REVENUE ADJ. REVENUE ADJ. REVEN
Slide 15: Balance Sheet & Financial Guidance
BALANCE SHEET & FINANCIAL GUIDANCE(1) STRONG BALANCE SHEET METRICS & LONG DATED MATURITIES; 2021 GUIDANCE DELIVERED KEY METRICS MATURITY SCHEDULE 2022 FINANCIAL GUIDANCE $1.1 $1.2 85% P&E ADJUSTED BILLION BILLION ADDITIONS FCF CASH(2) CASH RCFAVAILABILITY RCF AVAILABILITY(3) $9.2 5.0X 4.4X 15% BILLI
Slide 16: Conclusions
CONCLUSIONS(1) STRATEGIC ACTIONS ESTABLISH PLATFORM FOR GROWTH; SETTING STAGE FOR MID-TERM RAMP 1 2 3 4 P&E EFFICIENT OPERATIONAL 2022 ADDITION CAPITAL EXECUTION OUTLOOK DISCIPLINE ALLOCATION Maintaining P&E adds Focus on Puerto Rico & at 18% of revenue Costa Rica integrations to Continued revenue &
Slide 17: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 18: 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 19: 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 between our accounting policies and those of the acquired entities and (d) other items we deem appropriate. comparable basis for all businesses that we owned during the cur
Slide 20: Information on Rebased Growth (Cont.)
INFORMATION ON REBASED GROWTH (CONT.) Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a between our accounting policies and those of the acquired entities and (d) other items we deem appropriate. comparable basis for all businesses that we owned during
Slide 21: Information on Rebased Growth (Cont.)
INFORMATION ON REBASED GROWTH (CONT.) Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a did not own or operate the acquired entities during the pre-acquisition periods, no assurance can be given that comparable basis for all businesses that we owned du
Slide 22: Adjusted OIBDA & Adjusted OIBDA less P&E Additions 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 23: 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 leases. We believe that our presentation of Adjusted FCF provides useful information to our investors because operating activities, plus (i) cash paym
Slide 24: Consolidated Leverage Ratio Definition & Reconciliation
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION We have set forth below our consolidated leverage and net leverage ratios, which include VTR. Our foreign currency rates. We believe our consolidated leverage and net leverage ratios are useful because they consolidated leverage and net leverag