Slide 1: Liberty Global plc Investor Call Q2 2018
LIBERTY GLOBAL PLC INVESTOR CALL | Q2 2018 | AUG 9, 2018
Slide 2: Safe Harbor: Forward-Looking Statements + Disclaimer
“SAFE HARBOR” income and OCF amounts for all prior-year periods presented herein have been restated to reflect the impact of ASU 2017-07. For a Forward-Looking Statements + Disclaimer summary of selected quarterly information of our continuing and discontinued operations, as adjusted to give pro for
Slide 3: Executive Summary / Financial Results / Appendix
EX. CUTIVE SUMiMAI.Y © FINANCIAL RESULTS APPENDIX
Slide 4: Q2 2018 Highlights
Q2 2018 HIGHLIGHTS Solid operating results with good progress on strategic initiatives CONTINUING OPERATIONS | Q2 • Vodafone transaction remains on track • Closed the sale of UPC Austria @ ~11x OCF 43K 2.7% 3.3% REVENUE OCF NET ADDS GROWTH GROWTH – Buyback increased by $500m FULL COMPANY | Q2 • Reco
Slide 5: Q2 Net Adds
Q2 NET ADDS Continuing operations up 14% YoY as U.K. acceleration more than offsets Swiss losses QUARTERLY RGU NET ADDS STRONG BROADBAND GAINS (000s) • Added ~400,000 broadband subs LTM* 204 • Average speeds of 140 Mbps; 72% of base at 100 Mbps or higher* 162 149 148 • Gigabit broadband launched in
Slide 6: Virgin Media Q2 Update
VIRGIN MEDIA Q2 UPDATE Virgin Media delivering record Q2 net adds and revenue growth OPERATING RESULTS PROJECT LIGHTNING FIXED RGU NET ADDS CUSTOMER ARPU CUMULATIVE PREMISES IN UKIE (000s) REBASED GROWTH YOY 2018 1,500 118 1.6% 1.6% 1,250 2017 159 111 112 147 92 1,000 78 45 750 2016 102 127 86 8 (0.
Slide 7: Q2 Update | Continuing Ops & Dutch JV
Q2 UPDATE | CONTINUING OPS & DUTCH JV (1, 2) Revenue growth remains challenging but highly cash flow generative BELGIUM SWITZERLAND DUTCH JV (50%) SYNERGIES & COST SAVINGS MARKET REMAINS HIGHLY FIXED GROWING BUT OFFSET DELIVER OCF GROWTH COMPETITIVE BY MOBILE PRESSURE (8k) • Narrowing subscriber los
Slide 8: Financial Results
EXECUTIVE SUMMARY © FINANCIAL RESULTS APPENDIX
Slide 9: Q2 2018 Financial Results
Q2 2018 FINANCIAL RESULTS (1, 2) Stable organic growth and declining P&E additions vs. 2017 REVENUE OCF P&E ADDITIONS USD BN / REBASED GROWTH USD BN / REBASED GROWTH USD BN / AS % REVENUE CONTINUING FULL CONTINUING FULL CONTINUING FULL OPERATIONS COMPANY OPERATIONS COMPANY OPERATIONS COMPANY 2.7% 3.
Slide 10: Continuing Operations by Segment
CONTINUING OPERATIONS BY SEGMENT (1) Q2 rebased OCF results led by Belgium & U.K. LIBERTY GLOBAL U.K. & IRELAND BELGIUM (CONTINUING OPERATIONS) 5.2% 2.5% 4.4% 4.1% 0.7% 0.9% 2.8% 2.7% REVENUE REVENUE REVENUE 2.2% 2.6% 0.9% 0.9% 1.5% (1.3%) (1.0%) Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q2 '18 Q2 '17 Q3 '17 Q4 '
Slide 11: P&E Additions | Continuing Operations
P&E ADDITIONS | CONTINUING OPERATIONS Declining as % of Revenue Capital Intensity • H1’18 $1.9bn, reconfirming ~$4bn guidance 36.7% 34.4% 35.1% • Full-year capital intensity declining vs 2017 8.5% 31.8% NEW BUILD • Targeting further reduction in 2019 8.4% & UPGRADE 8.4% 28.4% 6.1% • Various large-sc
Slide 12: Conclusions
CONCLUSIONS Continuing Operations performing in line with expectations • Record Q2 performance at Virgin Media • FMC synergies kicking in at Telenet • Swiss market remains challenging • Buyback increased by $500mm over the next 12 months • Confirming all 2018 guidance(1): REBASED P&E NEW BUILD ADJUS
Slide 13: Appendix
EXECUTIVE SUMMARY © FINANCIAL RESULTS A PENMDIX
Slide 14: 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 2017 amounts to derive our rebased we owned during 2018, we have adjusted our historical revenue and OCF for the three and six growth
Slide 15: Glossary
GLOSSARY Adjusted Free Cash Flow (FCF): net cash provided by our operating activities, plus (i) cash payments for third-party costs directly associated with successful and unsuccessful acquisitions and dispositions and (ii) expenses financed by an intermediary, less (a) capital expenditures, as repo
Slide 16: Glossary
GLOSSARY (iv) Represents our preliminary estimate of the net cash flows that we growth for revenue and OCF. Customer Churn: the rate at which customers relinquish their would have received from transition services agreements if the sale of the subscriptions. The annual rolling average basis is calcu
Slide 17: Glossary
GLOSSARY Internet Subscriber: a home, residential multiple dwelling unit or commercial unit that receives internet to significant litigation and impairment, restructuring and other operating items. Other operating items include services over our networks, or that we service through a partner network
Slide 18: Glossary
GLOSSARY RGU: A Revenue Generating Unit is separately a Basic Video Subscriber, Enhanced Video Subscriber, DTH Subscriber, Internet Subscriber or Telephony Subscriber. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer
Slide 19: Appendix: Continuing Operations Quarterly Information
APPENDIX The former LiLAC Group and the Discontinued European Operations have been accounted for as discontinued operations. In addition, on January 1, 2018, we adopted ASU 2014-09 on a prospective basis and ASU 2017-07 on a retrospective basis. The following table provides a summary of selected qua
Slide 20: Appendix: Discontinued European Operations Quarterly Information
APPENDIX The following table provides a summary of selected quarterly information for the Discontinued European Operations for the past six quarters that gives pro forma effect to the adoption of ASU 2014-09 and reflects the retrospective changes of ASU 2017-07. For additional information concerning
Slide 21: Appendix - Belgium
APPENDIX - BELGIUM For purposes of its standalone reporting obligations, Telenet prepares its consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (EU IFRS). Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as ne
Slide 22: Appendix – Dutch JV
APPENDIX – DUTCH JV OCF: OCF is the primary measure used by the Dutch JV management to evaluate the operating performance of the businesses. OCF is also a key factor that is used by the Dutch JV management and its Supervisory Board to evaluate the effectiveness of its management for purposes of annu