Slide 1: Q2 2014 Investor Call
Q2 2014 Investor Call August 6, 2014
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities and suppliers to timely deliver quality products, as well as other factors detailed from time to time in our filings with the Securities and Exchange Commission Litigation Reform Act of 1995: including the most recently filed Forms 10-
Slide 3: Agenda
Agenda Highlights Financial Results Appendix Liberty Global Q2 2014 Investor Call | August 6, 2014 3
Slide 4: Operating & Financial Highlights
(1) Operating & Financial Highlights Organic Growth M&A | Innovation Balance Sheet • Q2 RGU adds of 239,000 and • Ziggo offer launched & on • Liquidity of $4.7 bn, including 584,000 YTD track for H2 2014 close $1.1 bn of consolidated cash • Q2 & YTD rebased revenue • Announced All3Media and • Gross
Slide 5: Drivers of Organic Growth
(1) Drivers of Organic Growth Innovation and scale benefits driving shareholder value creation Total Organic Adds MARKET SHARE GAINS ACROSS FOOTPRINT (x 1,000) 564 584 PRICING POWER WITH SUPERIOR PRODUCTS Q2 191 239 Q1 373 345 MOBILE & B2B GROWTH AHEAD OF PACE H1 2013 H1 2014 Big 5 Rebased Growth SC
Slide 6: Leading Video Innovation
(1) Leading Video Innovation Driving Digital % Next Generation TV Analog Opportunity (Digital penetration) (Subs x mm) (RGUs x mm) 64% 2.9 61% 7.5 58% 1.9 Analog 13.4 Digital Cable video Q2 2012 Q2 2013 Q2 2014 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 base Q2 2014 (pro forma) KEY ENABLERS OF FUTURE GROWTH (1)
Slide 7: Leveraging our Network Advantage
(1) Leveraging our Network Advantage Continued IP Growth Leading with Speed Focus on Postpaid (Net Adds x 1,000) (Weighted average downstream broadband speed) (Postpaid Mobile subscribers x mm) 3.2 310 56 Mbps 2.7 291 41 Telephony Broadband Internet 149 185 Q2 2013 Q2 2014 Q2 2013 Q2 2014 Q2'13 Q3'1
Slide 8: Focused Content Strategy in Europe
Focused Content Strategy in Europe 1 BROADCAST NETWORKS 2 OTT, NON-LINEAR & DIGITAL Content Outlook 3 PRODUCTION & RIGHTS LONGER-TERM STRATEGY MARKET-BY-MARKET APPROACH 4 SPORTS ACCRETIVE FINANCIAL RETURNS PARTNERS WHERE APPROPRIATE ~$300M OF EQUITY COMMITMENTS YTD Liberty Global Q2 2014 Investor Ca
Slide 9: Agenda
Agenda Highlights Financial Results Appendix Liberty Global Q2 2014 Investor Call | August 6, 2014 9
Slide 10: Strong H1 2014 Growth
(1) Strong H1 2014 Growth Continued success across footprint, supported in part by B2B and Mobile growth $9,136 Revenue $8,520 Growth 3% Rebased 7% Revenue Growth Combined (2) YTD 2013 YTD 2014 $4,272 OCF $3,826 Growth 12% 7% Rebased OCF Growth Combined (2) YTD 2013 YTD 2014 (1) Amounts are presente
Slide 11: H1 2014 Regional Summary
(1) H1 2014 Regional Summary Strong results powered by Western European and Latin American performance Six months ended June 30, 2014 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe $8,507 3% $4,144 7% (3) Latin America $606 4% $231 18% (4) Liberty Global $9,136 3% $4,272 7% (1) Ple
Slide 12: Q2 Growth Underpinned by the "Big 5"
(1) Q2 Growth Underpinned by the “Big 5” Over 85% of Liberty Global’s OCF derived from 5 key countries Germany Belgium Switzerland 11% 9% 5% 6% 4% 2% Q2 Revenue Q2 OCF Q2 Revenue Q2 OCF Q2 Revenue Q2 OCF United Kingdom Netherlands Total Western Europe 3% 6% 3% 7% (1%) 3% Q2 Revenue Q2 OCF Q2 Revenue
Slide 13: Strong YTD Adjusted FCF Performance
(1) Strong YTD Adjusted FCF Performance Confirming 2014 targets on both capital intensity and Adjusted Free Cash Flow 23.4% P&E Additions 21.9% to Revenue 21.1% 20.6% Declining capital intensity Combined Combined (2) (2) Q2 ’13 Q2 ‘14 YTD ‘13 YTD ‘14 $1,075 Adjusted Free Cash Flow $725 $769 +40% $53
Slide 14: Levered Equity Model
(1) Levered Equity Model Repaid $2 bn of debt in Q2 | More than 55% of repurchase program remains Gross Leverage Share Repurchases of $4.5bn program (in $bn) 5.3x 4.9x $2.6 Dec’15 $1.0 $0.9 2013 Q4 2013 Q2 2014 YTD 2014 (1) Please see Appendix for the definition of Leverage. Liberty Global Q2 2014 I
Slide 15: Conclusions
Conclusions Robust OCF growth and Adj. FCF in H1 Successfully executing content strategy Ziggo acquisition tracking H2 2014 Solid momentum heading into H2 Liberty Global Q2 2014 Investor Call | August 6, 2014 15
Slide 16: Agenda
Agenda Highlights Financial Results Appendix Liberty Global Q2 2014 Investor Call | August 6, 2014 16
Slide 17: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally Switzerland of 3,041,300, 820,800, 276,400, Operations Division and Other Europe are not accepted in the United States. 89,700, 13,300, 9,300 and 2,500 and 500, adjusted for currency impacts. respectively. Our mobile sub
Slide 18: Definitions and Additional Information
Definitions and Additional Information Digital penetration is calculated by dividing the the three and six months ended June 30, 2014, (ii) on a basis that is comparable to the corresponding number of digital cable RGUs by the total number remove intercompany eliminations for the post-acquisition am
Slide 19: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation Operating cash flow is the primary measure used long-lived assets, (b) third-party costs directly different countries in which we operate. We by our chief operating decision maker to evaluate associated with successful and unsuccessful believe our op
Slide 20: Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations
Free Cash Flow and Adjusted Free Cash(*) Flow Definitions and Reconciliations We define free cash flow (“FCF”) as net cash present Adjusted FCF, which adjusts FCF to GAAP measures of liquidity included in our provided by our operating activities, plus (i) excess eliminate the incremental FCF deficit
Slide 21: Additional Information
Additional Information Free Cash Flow and P&E Additions and Leverage Adjusted Free Cash Flow CapEx 1) Excess tax benefits from share-based 1) Property and equipment additions include 1) Our gross and net debt ratios are defined as compensation represent the excess of tax our capital expenditures on
Slide 22: Combined Revenue, Property & Equipment Additions and OCF for Q2 and YTD 2013
Combined Revenue, Property & Equipment Additions and OCF for Q2 and YTD 2013 The combined amounts presented below have U.S. dollars at the average GBP/USD foreign Media transaction had occurred on the dates been included in this release to provide a exchange rates for the pre-acquisition periods ass
Slide 23: Combined FCF and Adjusted FCF of Liberty Global and Virgin Media for Q2 and YTD 2013
Combined FCF and Adjusted FCF of Liberty Global and Virgin Media for Q2 and YTD 2013 The combined amounts presented below have conform to the FCF and Adjusted FCF Liberty Global/Virgin Media results are not been included in this release to provide a definitions of Liberty Global as set forth earlier