Slide 1: Q3 2014 Investor Call
Q3 2014 Investor Call November 6, 2014 Liberty Global Q3 2014 Investor Call | November 6, 2014
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities video services and the costs associated with such programming, Litigation Reform Act of 1995: our ability to achieve forecasted financial and operating targets, the outcome of any pending or threatened litigation, our ability to This p
Slide 3: Agenda
Agenda Liberty Global Q3 2014 Investor Call | November 6, 2014 3
Slide 4: Highlights
(1) Highlights Operating & • Record Q3 RGU adds of 344,000, 928,000 YTD Financial • Q3 & YTD rebased revenue growth of 3% Highlights • Q3 & YTD rebased OCF growth of 5% & 6% • Adj. FCF of $1.4 bn YTD, up 45% on combined basis M&A & • Completed Ziggo offer, will own 100% Innovation • Announced plan t
Slide 5: Strong Organic Growth Momentum
(1) Strong Organic Growth Momentum Enhancement of customer experience through innovation drives YTD results Superior network driving RGU momentum Pricing power across our footprint Harvesting mobile & B2B opportunities Benefitting from substantial scale and synergies Confirming all 2014 financial ta
Slide 6: Leading Entertainment Platforms
(1) Leading Entertainment Platforms Expansion of Horizon TV and Horizon Go across our footprint Next Generation Q3 '13 2.2 17% TV Development Q4 '13 2.4 18% Subscribers, millions Penetration of digital video Q1 '14 2.7 20% Q2 '14 2.9 22% Q3 '14 3.2 23% Multi-Screen Video Subs 1.2 Horizon Go / TV Any
Slide 7: Superior Network Driving Demand & Usage
(1) Superior Network Driving Demand & Usage Continued IP Growth Q3 '13 199 140 339 Net Adds, 000s Q3 '14 239 151 390 BROADBAND INTERNET TELEPHONY High Bandwidth Consumption Q3 '13 44GB Weighted average +46% downstream & upstream monthly usage per Q3 '14 64GB broadband subscriber Bundling Mobile Q3 '
Slide 8: The New Top Three
(1) The New Top Three Represent over 60% of our consolidated revenue when you include Ziggo UK • Best customer growth in 2 years with record low churn • B2B contract wins paying off and mobile remains strong • Growth initiatives including 100,000 HP network upgrade Germany • Increased top speed to 2
Slide 9: Agenda
Agenda Liberty Global Q3 2014 Investor Call | November 6, 2014 9
Slide 10: Delivering Strong YTD Financial Results
(1) Delivering Strong YTD Financial Results Growth powered by our record LTM broadband additions of 930,000 Revenue Growth YTD (2) $12,796 2013 Combined 3% +7% Rebased YTD growth $13,633 2014 OCF Growth YTD (2) $5,815 2013 Combined 6% +10% Rebased growth YTD $6,383 2014 (1) Amounts are presented in
Slide 11: YTD 2014 Geographic Summary
(1) YTD 2014 Geographic Summary Both Europe and Latin America delivering strong financial results Nine months ended September 30, 2014 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth Europe(2) $12,694 3% $6,181 6% Latin $906 4% $351 17% America(3) Liberty $13,633 3% $6,383 6% Global (4) (1) Pl
Slide 12: Q3 2014 “Big 5” Rebased Results
(1) Q3 2014 “Big 5” Rebased Results Success driven by mix of broadband internet adds, mobile and B2B Germany Belgium Switzerland 7% 5% 6% 4% 4% 4% Revenue OCF Revenue OCF Revenue OCF United Kingdom Netherlands “Big 5” 6% 5% 3% 2% -1% -1% Revenue OCF Revenue OCF Revenue OCF (1) Please see Appendix fo
Slide 13: Delivering on Adjusted FCF Generation
(1) Delivering on Adjusted FCF Generation Confirming Adjusted Free Cash Flow guidance of $2.0 bn for 2014 P&E Additions Q3 '13 22.3% to Revenue Declining Capital Q3 '14 20.2% Intensity (2) YTD '13 Combined 22.0% YTD '14 20.5% Adjusted Free Q3 '13 $193 66% Cash Flow increase ($mm) Q3 '14 $321 (2) YTD
Slide 14: FCF and Leverage Power Buybacks
(1) FCF and Leverage Power Buybacks Liquidity of $4.6 bn | Committed to repurchase $2.6 bn over the next 14 months Gross Leverage Q3 2014 4.6x Ratio Net Leverage Q3 2014 4.5x Ratio Share Repurchases $2.6 of $4.5bn program ($bn) Dec’15 $1.0 $0.9 2013 YTD 2014 (1) Please see Appendix for definitions a
Slide 15: Conclusions
Conclusions Delivered solid operating and financial results in Q3 Leveraging our superior network while expanding next-gen TV & mobile Building on this momentum for continued growth in 2015 Reigniting our $2.6bn share repurchase program Liberty Global Q3 2014 Investor Call | November 6, 2014 15
Slide 16: Agenda
Agenda Liberty Global Q3 2014 Investor Call | November 6, 2014 16
Slide 17: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted the U.K., Belgium, Germany, Chile, Poland, relationships of entities acquired during the period in the United States. Hungary, Switzerland and the Netherlands of are normalized. Unless otherwise indicated, ARPU
Slide 18: Definitions and Additional Information
Definitions and Additional Information Big 5 represents our operations in the United our results for the three and nine months ended periods, no assurance can be given that we have Kingdom, Germany, Belgium, the Netherlands and September 30, 2014, (ii) remove intercompany identified all adjustments
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 operate. We believe our operating cash flow by our chief operating decision maker to evaluate associated with successful and unsuccessful measure is use
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 that we assumed in connection with certain represent our ability to fund discretionary amounts, provided by our operating activities, plus (i) excess acquisitions), with each i
Slide 21: Additional Information
Additional Information Free Cash Flow and Adjusted Free Cash Flow P&E Additions and CapEx Leverage and Liquidity 1) Excess tax benefits from share-based 1) Property and equipment additions include our 1) Our gross and net debt ratios are defined as compensation represent the excess of tax capital ex
Slide 22: Combined Revenue, Property & Equipment Additions and OCF for YTD 2013
Combined Revenue, Property & Equipment Additions and OCF for YTD 2013 The combined amounts presented below have been the average GBP/USD foreign exchange rate for have occurred if the Liberty Global/Virgin Media included in this release to provide a means for the pre-acquisition period in 2013 as ap
Slide 23: Combined FCF and Adjusted FCF of Liberty Global and Virgin Media for YTD 2013
(*) (*) Combined FCF and Adjusted FCF of Liberty Global and Virgin Media for YTD 2013 The combined amounts presented below have been and Adjusted FCF definitions of Liberty Global as addition, the combined Liberty Global/Virgin Media included in this release to provide a means for set forth earlier.