Slide 1: Liberty Global Investor Call | Full Year 2019
LIBERTY GLOBAL PLC INVESTOR CALL | FULL YEAR 2019 February 14, 2020
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” contained herein to reflect any change in our expectations with regard thereto or any change in events, Forward-Looking Statements + Disclaimer conditions or circumstances on which any such statement is based. This presentation contains forward-looking statements within the meaning of
Slide 3: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 3
Slide 4: 2019 Highlights
2019 HIGHLIGHTS 2019 Continuing Operations (Including Switzerland) YOY FINANCIALS ACTUAL GROWTH 1 Exceeded FCF guidance Rebased Revenue $11.5bn (0.6%) Achieved all other 2019 guidance targets Rebased OCF $4.9bn (3.1%) Operating strategy in place Cost reductions on track P&E Additions $2.9bn (22.3%)
Slide 5: Virgin Media Operating Update
VIRGIN MEDIA OPERATING UPDATE Significant OFCF growth through efficient deployment of capital; focused on implementing mid-term growth plan KEY OPERATING CUSTOMER ARPU CUSTOMER NET ADDS PROJECT RESULTS(1) GROWTH YOY (000s) LIGHTNING 2019 Fixed Fixed/Mobile 107 2.0% +7k 1.6% 76 UK PENETRATION 35% CUS
Slide 6: Virgin Media: Looking Forward
VIRGIN MEDIA: LOOKING FORWARD Implementing mid-term growth plan, addressing cost headwinds and exploring strategic options CHALLENGES GROWTH DRIVERS NETWORK STRATEGY External Headwinds Strength of Network Exploring strategic options to expand network and optimize Ofcom “out-of-contract” Gigabit roll
Slide 7: VodafoneZiggo JV
(1) VODAFONEZIGGO JV Robust 2019 results underpinned by solid execution of FMC strategy 2019 KEY RESULTS KEY DRIVERS OF SUCCESS NETWORK QUALITY & SPEED LEADERSHIP (32k) CUSTOMER NET ADDS • Nationwide 1Gbps broadband rollout by end of 2021 • #1 fixed consumer broadband provider in the Netherlands (78
Slide 8: UPC Switzerland
UPC SWITZERLAND Significant OFCF generation despite turnaround investments 2019 KEY RESULTS (1) KEY INITIATIVES TAKING SPEED TO THE NEXT LEVEL (74k) CUSTOMER NET ADDS • 1Gbps broadband rolled out across footprint ahead of schedule (119k) • UPC customers averaging 300Mbps FIXED RGU NET ADDS TRANSFORM
Slide 9: Key Priorities 2020
KEY PRIORITIES 2020 • Navigate headwinds and exploit opportunities in UK • Continue execution of Swiss turnaround plan • Optimize free cash flow across all assets • Maintain focus on value creation strategies 9
Slide 10: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 10
Slide 11: Group Overview
GROUP OVERVIEW Stable top line; OCF growth impacted by U.K. headwinds; ~$11bn of total liquidity REVENUE GROWTH(1) OCF GROWTH(1) OFCF(1) ($mm) (Continuing Operations including Switzerland) (Continuing Operations including Switzerland) (Continuing Operations including Switzerland) YoY increase +18% 2
Slide 12: Central Update
CENTRAL UPDATE Cost reductions are on track, T&I OFCF fully attributed T&I OPERATING MODEL $660m cost base serves both retained operations and partner markets $m 2018 2019 • Targeting ~$600m for 2020 Central Opex (1) $536 $509 • Split ~50/50 between retained operations Central Capex 524 380 and part
Slide 13: Divisional Overview
DIVISIONAL OVERVIEW Strong OFCF conversion post Centrally-held P&E attributions 50-50 For the year ended Dec 31, 2019 U.K . & IRE LAND BE LGIUM S WITZE RLAND D UTC H JV ( 2 , 3 ) (in millions) REVENUE $6,600 $2,893 $1,259 $4,408 Rebased revenue growth 0.4% (1.2%) (3.5%) 1.1% OCF $2,801 $1,386 $628 $
Slide 14: Pro Forma Adjusted FCF
(1) PRO FORMA ADJUSTED FCF FY 2019 slightly above guidance; $50 million UPC Switzerland break fee not included in Adjusted FCF $m FY 2019 Comments OCF (1) $4,949 P&E (2,880) Includes $390m of Lightning CPP capex OFCF(1) $2,069 INTEREST / DERIVS (1) (1,118) Includes $75m of interest income CASH TAX (
Slide 15: 2020 Outlook
(1) 2020 OUTLOOK OFCF and Adjusted FCF growth despite OCF challenges UK impacted by regulation and cost headwinds Rebased OCF Mid-single-digit decline Swiss OCF impacted by turnaround plan TSA revenue fully rebased, no benefit to growth P&E spend declines across all operations Rebased OFCF Mid-singl
Slide 16: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX 16
Slide 17: Rebase Information
REBASE INFORMATION For purposes of calculating rebased growth rates on a comparable basis for all businesses that The following table provides adjustments made to the 2018 amounts to derive our rebased we owned during 2019, we have adjusted our historical revenue, OCF and OFCF for the three growth r
Slide 18: Glossary
GLOSSARY 10-Q or 10-K: As used herein, the terms 10-Q and 10-K refer to our most recent quarterly or annual report as i. The 2019 amounts include an adjustment to exclude from adjusted free cash flow a $50.4 million cash receipt filed with the Securities and Exchange Commission on Form 10-Q or Form
Slide 19: Glossary
GLOSSARY VodafoneZiggo JV Free Cash Flow (JV FCF): defined as net cash provided by the operating activities, plus mobile subscribers and RGUs, as applicable, to reflect acquisitions, dispositions, FX and the January 1, 2018 (i) expenses financed by an intermediary and (ii) interest payments on share
Slide 20: Glossary
GLOSSARY Enhanced Video Subscriber: a home, residential multiple dwelling unit or commercial unit that receives our Mobile Subscriber Count: the number of active SIM cards in service rather than services provided. For video service over our broadband network or through a partner network via a digita
Slide 21: Glossary
GLOSSARY OCF margin: calculated by dividing OCF by total revenue for the applicable period. SIM: Subscriber Identification Module OFCF: As used herein, Operating Free Cash Flow or “OFCF” represents OCF less property and SOHO: Small or Home Office Subscribers equipment additions. OFCF is an additiona
Slide 22: Centrally-Held Operating Cost Allocations
APPENDIX CENTRALLY-HELD OPERATING COST ALLOCATIONS During the fourth quarter of 2019, we changed the presentation of certain operating costs related to our centrally-managed technology and innovation function. These costs, which were previously included in Central and Corporate, are now allocated to
Slide 23: Centrally-Held P&E Attributions / Attributed OFCF
APPENDIX CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED OFCF Property and equipment additions presented for Central and Corporate include certain capital costs incurred for the benefit of our operating segments. Generally, for purposes of the consolidated financial statements of our borrowing groups,