Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2013 Earnings Presentation
24 slides from Liberty Global's earnings presentation, May 7, 2013
Slide 1: Q1 2013 Investor Call
Q1 2013 Investor Call May 7, 2013
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities Nothing in this presentation shall constitute a solicitation to buy or subscribe for or an offer to sell any securities of Liberty Global, Virgin Media or Liberty Global Corporation Litigation Reform Act of 1995: Limited (New Liberty G
Slide 3: Agenda
Agenda Q1 2013 Highlights Financial Results Q&A 3
Slide 4: Recent Highlights
(1) Recent Highlights • Organic RGU additions of 373,000 in Q1 Organic Growth • Q1 revenue of $2.8 bn, 5.8% rebased • Q1 OCF of $1.3 bn, 4.1% rebased • Virgin Media acquisition on track to close Q2 M&A | • Opportunistic & strategic investment in Ziggo Innovation • Horizon TV platform continues to ev
Slide 5: Net Adds Success By Product
(1) Net Adds Success By Product Broadband Telephony Video Total Organic Adds Internet 277 Q1 2010 Q1 2011 Q1 2012 Q1 2013 254 445 233 231 373 190 168 (85) (86) (92) 152 155 260 (118) 202 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2010 Q1 2011 Q1 2012 Q1 2013 (1) Organic RGU a
Slide 6: Subscriber Growth Remains at High Levels
Subscriber Growth Remains at High Levels (2) • Latin America net adds up ~90% 445 • Europe, excluding DE, variance LatAm 33 explained by UPC NL 373 • German result includes the loss of housing contract: 16k impact 63 193 • CEE and Belgium increased net adds by 30% and 17%, respectively Europe ex. DE
Slide 7: Germany & Belgium
(1) Germany & Belgium DE Continued Strong Momentum • Rebased revenue at 10% & OCF at 11% • > 700k LTM organic RGU adds • Unencrypted basic digital video at Unity • Expanded HD & harmonized bundles BE Robust Mobile Fueling Growth • Rebased revenue at 12% & OCF at 4% • ~100k mobile adds in Q1 • Drivin
Slide 8: The Netherlands & Switzerland
(1) The Netherlands & Switzerland NL Investments Drive Innovation • Increased speeds in 3-play bundles in April • Roll out of 200 Mbps product • Launched basic DTV unencryption post Q1 • Over 145,000 Horizon TV subscribers to date CH Successful Horizon Launch • Strong rebased revenue growth at 5% •
Slide 9: Update on Virgin Media Acquisition
Update on Virgin Media Acquisition (1) Process Combined LGI / Virgin Media Results • Completed all financings necessary to close the Virgin Media acquisition YoY Q1 ‘13 (2) ($ in billions) Growth • EU regulatory approval received Revenue $4.4 5.0% • Proxy cleared by SEC OCF $1.9 5.3% • Shareholder m
Slide 10: Agenda
Agenda Q1 2013 Highlights Financial Results Q&A 10 10
Slide 11: Mid-Single-Digit Rebased Growth
(1,2) Mid-Single-Digit Rebased Growth Top-line growth driven by triple-play and mobile volume Revenue OCF Rebased Growth of 6% Rebased Growth of 4% $2,768 $2,537 $1,270 $1,196 9% 6% Q1 2012 Q1 2013 Q1 2012 Q1 2013 (1) All amounts are in USD millions. (2) Please see Appendix for the definition and re
Slide 12: Q1 2013 Regional Summary
(1) Q1 2013 Regional Summary Western European operations fuel our rebased growth Three months ended March 31, 2013 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe $2,338 6.5% $1,174 4.5% Western Europe 2,018 7.2% 1,079 5.7% CEE 288 0.9% 141 0.6% Chile (VTR) 250 7.7% 85 9.5% (3) Tota
Slide 13: Q1 2013 P&E Additions
(1) Q1 2013 P&E Additions Continued focus on optimizing capital efficiency P&E Additions to Revenue P&E Additions by Category Declined YoY by 60 bps CPE largest component of spend 20.0% 14% 19.4% 45% 27% 14% Customer premises equipment Q1 2012 Q1 2013 Scalable infrastructure Figures (mm): $507 $536
Slide 14: Q1 2013 FCF & Adjusted FCF Results
(1) Q1 2013 FCF & Adjusted FCF Results YoY FCF impacted by working capital movement ($ in millions) Q1 2013 (2) Q1 2012 Variance (2) Cash flow from continuing operations $ 558 $ 755 $ ( 197) CapEx (504) (521) 17 Principal payments on VF/CL obligations(3) (40) (5) (35) Other items(4) 10 13 (3) Free C
Slide 15: Total Liquidity and Leverage
(1) Total Liquidity and Leverage Adjusted leverage down modestly from Q4 (2) Total Liquidity of $5.1 bn Adjusted Leverage Q1’13 ($bn) 5.1x 4.6x $1.6 Cash $2.2 position (2) of $2.9 bn $1.3 Borrowing Capacity LGI Parent Cash Gross Leverage Net Leverage Operating Subsidiaries’ Cash (1) Please see Appen
Slide 16: Conclusions
Conclusions Top-line momentum continuing in 2013 German performance underpinning growth Expect to close Virgin Media in Q2 Commitment to drive shareholder value LGI Q1 2013 Investor Call | May 7, 2013 16
Slide 17: Appendix
Appendix 17 17
Slide 18: Definitions and Additional Information
Appendix Definitions and Additional Information GAAP are accounting principles generally Non-paying subscribers are counted as period are normalized. Unless otherwise accepted in the United States. subscribers during their free promotional indicated, ARPU per customer relationship for service period
Slide 19: Definitions and Additional Information
Appendix Definitions and Additional Information Digital penetration is calculated by dividing entities acquired during 2012 and 2013 in our changes in estimates that might be the number of digital cable RGUs by the total rebased amounts for the three months ended implemented during post-acquisition
Slide 20: Operating Cash Flow Definition and Reconciliation
Appendix Operating Cash Flow Definition and Reconciliation Operating cash flow is the primary measure costs, such as third-party due diligence, legal our performance with the performance of used by our chief operating decision maker to and advisory costs, and (iii) other acquisition- other companies
Slide 21: 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 free cash flow as net cash excluding any cash provided or used by our obligations, including debt repayments, which provided by our operating activities, plus (i) discontinued operation. We also present
Slide 22: Footnotes to Q1 2013 P&E Additions and Total Liquidity and Leverage
Appendix Footnotes to Q1 2013 P&E Additions Total Liquidity and previous slide Q1 2013 P&E Additions Leverage the 1) Excess tax benefits from stock-based 1) Property and equipment additions 1) Our gross and net debt ratios are compensation represent the excess of include our capital expenditures on
Slide 23: Virgin Media's Operating Cash Flow based on Liberty Global's Definition
Appendix Virgin Media’s Operating Cash Flow based on Liberty Global’s Definition and Reconciliation Operating cash flow is the primary measure and losses on the disposition of long-lived believes their operating cash flow measure is used by Liberty Global’s chief operating assets (ii) direct acquisi
Slide 24: Virgin Media's Free Cash Flow using Liberty Global's Definitions
Appendix Virgin Media’s Free Cash Flow using Liberty Global’s Definitions and Reconciliations(1) Liberty Global defines free cash flow as net cash provided or used by discontinued Investors should view free cash flow as a cash provided by operating activities, plus (i) operations. Liberty Global bel