Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q3 2021 Earnings Presentation
36 slides from Liberty Global's earnings presentation, Nov 1, 2021
Slide 1: Liberty Global plc Investor Call Q3 2021
LIBERTY GLOBAL PLC INVESTOR CALL | Q3 2021
Slide 2: Safe Harbor: Forward-Looking Statements and Disclaimer
“SAFE HARBOR” Forward-Looking Statements + Disclaimer Additional Information Relating to Defined Terms: This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Please refer to the Appendix at the end of this presenta
Slide 3: Executive Summary
'>EXECUTIVE SUMMARY | FINANCIAL RESULTS APPENDIX &. 0) o Sunrise & upc (6) (Zj
Slide 4: Key Highlights
KEY HIGHLIGHTS Q3 1 Three core pillars of value creation are working Broadband and mobile growth continue to drive 2 commercial momentum UK & Swiss integrations are on track and 3 producing strategic and financial results 4 Networks strategies in Belgium and Ireland are taking shape 5 FCF guidance f
Slide 5: Three Pillars of Value Creation Working
THREE PILLARS OF VALUE CREATION WORKING EUROPEAN FMC CHAMPIONS VENTURES PORTFOLIO • FMV of $3.1bn(2) at 3Q21 (～$5.50 per share) NATIONAL SCALE: Shaping markets and creating strategic opportunities for further growth • Plume closes Softbank financing at $2.6bn valuation • >30% IRR on Tech portfolio (
Slide 6: Strong Operating Performance
STRONG OPERATING PERFORMANCE With sequential growth in broadband and post-paid mobile adds (on aggregate basis) (2) CORE OPERATING MARKETS(1) (IFRS) Q3 YTD Q3 YTD Q3 YTD Q3 YTD Broadband Net Adds 42k 117k 5k 25k 8k 23k -10k -26k Postpaid Net Adds 108k 215k 43k 126k 0k 33k 67k 184k Revenue growth 0.7
Slide 7: Fixed-Mobile Convergence
FIXED-MOBILE CONVERGENCE Drives growth and customer satisfaction across the footprint FMC RATIOS VMO2 LAUNCHED ‘VOLT’ • 1st supercharged service from VMO2, 43% vs. 25% giving customers the best of both brands FMC YoY VMUK • Available to both new & existing customers 56% +570 bps • 1Gig speeds & unli
Slide 8: Strength of Fixed Networks
STRENGTH OF FIXED NETWORKS Creates optionality & opportunity on path to 10 gig IRELAND 15.5M HHs 1.0M HHs 3.4M HHs 3.0M HHs 7.3M HHs 1Gig+ 100% 100% 100% 100% >80% Footprint Coverage YE ‘21 INCUMBENT ~25% ~30% ~15% ~40% ~45% TECH FTTH FTTH FTTH Hybrid Hybrid Current Overlay Overlay Overlay (HFC + Re
Slide 9: Financial Results
EXECUTIVE SUMMARY a APPENDIX o. @0) () o Sunrise & upc Ow
Slide 10: Sustained Revenue Growth
SUSTAINED REVENUE GROWTH LG CONSOLIDATED REBASED VMO2 IFRS PROFORMA TRANSACTION BE REBASED REVENUE REVENUE GROWTH (1) ADJUSTED REVENUE GROWTH (2)(3) ($M) GROWTH (1) ($M) 0.4% 0.7% 3.4% $752 $755 $3,588 $3,341 0.7% 0.2% (0.5%) (1.3%) Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q3'20 Q3'21 Q3'20 Q3'21 CH REBASED RE
Slide 11: Return to Rebased EBITDA Growth
RETURN TO REBASED EBITDA GROWTH LG CONSOLIDATED REBASED ADJ VMO2 IFRS PROFORMA TRANSACTION BE REBASED ADJ. EBITDA EBITDA GROWTH ($M) (1) ADJUSTED ADJ. EBITDA GROWTH (2)(3) ($M) GROWTH (1) ($M) (0.6%) (0.4%) $1,243 $371 $369 1.0% (0.3%) $1,173 Inc. $15m Costs to Capture (1.7%) (5.0%) (6.2%) Q3'20 Q4'
Slide 12: Integration and Synergy Plans Progressing
INTEGRATION AND SYNERGY PLANS PROGRESSING LG CONSOLIDATED REBASED VMO2 IFRS PROFORMA TRANSACTION BE REBASED ADJ. EBITDA LESS P&E ADJ. EBITDA LESS ADJ. EBITDA LESS P&E ADDITIONS ADDITIONS GROWTH (1) ($M) P&E ADDITIONS GROWTH ($M) (1) GROWTH (2)(3) ($M) (6.3%) (14.1%) (4.2%) $401 $592 $244 $378 $541 $
Slide 13: FY '21 Full Company FCF Guidance Upgrade to $1.45B
FY ’21 FULL COMPANY FCF GUIDANCE UPGRADE TO $1.45B (1) Q3 YTD Q3 YTD $M $M 2019 2020 2021 2020 2021 ADJUSTED EBITDA $1,648 $1,691 ADJUSTED FREE LESS P&E ADDITIONS $770 $1,070 $1,450(1) CASH FLOW (2) NET INTEREST (1,078) (813) CASH TAX (197) (176) YOY GROWTH - 39% 36% VODAFONE ZIGGO 138 282 (Dividend
Slide 14: Capital Allocation
CAPITAL ALLOCATION Q3 LIQUIDITY (1) FMC CHAMPIONS $5.3B TOTAL $1.6B LIQUIDITY UPC (incl. Revolving Q3’21 BE VZ VMED O2 Sunrise) Credit Facilities Leverage(2) 3.43x 5.29x 4.54x 4.76x WACD 3.20% 4.30% 3.73% 4.60% $3.7B Cash/SMAs Av. Life ~6.8 years ~6.9 years ~7.7 years ~7.7 years $1,131 MILLION BUYBA
Slide 15: Conclusions
CONCLUSIONS (1,2) FMC execution drives operating momentum LG ADJUSTED FCF OF $1.45B Network strategies evolving in BE and IE GUIDANCE (3) GUIDANCE GUIDANCE(4) GUIDANCE IFRS BASIS IFRS BASIS Upgrading FY21 Adjusted Transaction Returning to Revenue growth Revenue growth Adj EBITDA Adjusted Adj of up t
Slide 16: Appendix
>APPENDIX
Slide 17: Q3 2021 YTD Adjusted Attributed FCF
Q3 2021 YTD ADJUSTED ATTRIBUTED FCF 50-50 Liberty U.K. JV Total 50-50 Global $m U.K.(1) Ireland Belgium Switzerland Central (2) Poland Liberty Dutch JV IFRS Continuing Global (3,4) Basis Operations (3,4,5) Adjusted EBITDA $1,085 $161 $1,131 $911 ($15) $3,273 $158 $3,431 $1,713 $1,719 Pre-lightning P
Slide 18: Rebase Information
REBASE INFORMATION Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2021, we have adjusted our historical r
Slide 19: 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 filed with the Securities and Exchange Commission on Form 10-Q or Form 10-K, as applicable. Adjusted EBITDA: Adjusted EBITDA is the primary measure used by our chief operating decisi
Slide 20: Glossary
GLOSSARY Blended fully-swapped debt borrowing cost: The weighted average interest rate on our aggregate variable- and fixed-rate indebtedness (excluding finance leases and including vendor financing obligations), including the effects of derivative instruments, original issue premiums or discounts a
Slide 21: Glossary
GLOSSARY Lightning premises: Includes homes, residential multiple dwelling units and commercial premises that potentially could subscribe to our residential or SOHO services, which have been connected to the VMED O2 JV networks in the UK as a part of the Project Lightning network extension program i
Slide 22: Reconciliations: Rebase Adjustments
RECONCILIATIONS REBASE ADJUSTMENTS Rebase growth percentages, which are non-GAAP measures, are presented as a basis for assessing growth rates on a comparable basis. For further details on adjustments made to arrive at our rebase growth rates for the periods below, refer to our previously issued ear
Slide 23: Reconciliations: Rebase Adjustments (Continued)
RECONCILIATIONS REBASE ADJUSTMENTS (CONTINUED) 23
Slide 24: Reconciliations: Adjusted EBITDA & Adjusted EBITDA less P&E Additions
RECONCILIATIONS ADJUSTED EBITDA & ADJUSTED EBITDA LESS P&E ADDITIONS The following tables provide a reconciliation of our net earnings (loss) from continuing operations to Adjusted EBITDA and Adjusted EBITDA to Adjusted EBITDA less P&E for the indicated periods: 24
Slide 25: Reconciliations: Adjusted EBITDA
RECONCILIATIONS ADJUSTED EBITDA The following table provides a reconciliation of our net earnings (loss), as historically reported, to Adjusted EBITDA, as historically reported, for the indicated periods. These amounts have not been revised to reflect Poland discontinued operations. 25
Slide 26: Reconciliations: Liberty Global Full Company Adjusted FCF
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF The following table provides a reconciliation of our Full Company net cash provided by operating activities to Adjusted Free Cash Flow for the indicated periods: 26
Slide 27: Reconciliations: Full Company Adjusted FCF - Continued
RECONCILIATIONS LIBERTY GLOBAL FULL COMPANY ADJUSTED FCF - CONTINUED 27
Slide 28: Centrally-Held P&E Attributions / Attributed Adjusted EBITDA less P&E Additions
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED ADJUSTED EBITDA LESS P&E ADDITIONS 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
Slide 29: Centrally-Held P&E Attributions - Continued
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED ADJ EBITDA LESS P&E ADDITIONS - CONTINUED A reconciliation of our Adjusted EBITDA to attributed Adjusted EBITDA less P&E Additions, including Centrally-held Property and Equipment Attributions, consistent with our internal management repor
Slide 30: Centrally-Held P&E Attributions - Continued
RECONCILIATIONS CENTRALLY-HELD P&E ATTRIBUTIONS / ATTRIBUTED ADJ EBITDA LESS P&E ADDITIONS - CONTINUED 30
Slide 31: Supplemental Adjusted Attributed Free Cash Flow
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW We define adjusted free cash flow as 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 financ
Slide 32: Supplemental Adjusted Attributed Free Cash Flow (Cont.)
RECONCILIATIONS SUPPLEMENTAL ADJUSTED ATTRIBUTED FREE CASH FLOW (CONT.) 32
Slide 33: Reconciliations - VodafoneZiggo JV
RECONCILIATIONS – VODAFONEZIGGO JV VODAFONEZIGGO JV ADJUSTED FREE CASH FLOW (DUTCH JV FCF) VodafoneZiggo JV Adjusted FCF is defined as net cash provided by operating activities, plus (i) expenses financed by an intermediary and (ii) interest payments on certain Shareholder loans, less (a) capital ex
Slide 34: VMED O2 JV Reconciliations - Revenue
VMED O2 JV RECONCILIATIONS – REVENUE The following tables provide reconciliations from VMED O2 JV Transaction Adjusted IFRS revenue to US GAAP revenue for the indicated periods: 34
Slide 35: VMED O2 JV Reconciliations - Adjusted EBITDA & Adjusted EBITDA less P&E Additions
VMED O2 JV RECONCILIATIONS – ADJUSTED EBITDA & ADJUSTED EBITDA LESS P&E ADDITIONS The following tables provide reconciliations from VMED O2 JV Transaction Adjusted IFRS Adjusted EBITDA to US GAAP Adjusted EBITDA for the indicated periods: 35
Slide 36: VMED O2 JV Reconciliations - Adjusted FCF
VMED O2 JV RECONCILIATIONS – ADJUSTED FCF VMED O2 JV ADJUSTED FREE CASH FLOW (VMED O2 JV FCF) VMED O2 JV Adjusted FCF is defined as net cash provided by operating activities, plus expenses financed by an intermediary, less (i) capital expenditures, (ii) principal payments on amounts financed by vend