Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q2 2015 Earnings Presentation
24 slides from Liberty Global's earnings presentation, Aug 5, 2015
Slide 1: Q2 2015 Investor Call
Q2 2015 Investor Call August 5, 2015
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements efficiencies from businesses we acquire; the availability of attractive programming for our digital video services and the costs associated with such programming; our ability to achieve forecasted financial and This presentation contains forward-looking state
Slide 3: Agenda
Agenda Executive Finance Appendix Summary Liberty Global | Q2 2015 Investor Call | August 5, 2015 3
Slide 4: Highlights Liberty Global plc
(1) Highlights Liberty Global plc • 207,000 YTD organic RGU additions, including 138,000 in Q2 Operating & Financial • Revenue of $9.1 bn YTD; rebased growth 3.3% in Q2 Highlights • Q2 Rebased OCF growth accelerated to 4.4%; OCF $4.3 bn YTD • FCF of $592 million in Q2, increasing YTD total to $922 m
Slide 5: Liberty Global Group Q2 2015 Highlights
(1) Liberty Global Group Q2 2015 Highlights Q2 rebased OCF growth for Western Europe at 4.6% despite Ziggo results • Q2 rebased revenue and OCF growth of 3.0% and 3.9%, Organic RGU Additions respectively • Operating momentum in U.K. driving 8.5% rebased OCF growth 130 128 • Regained RGU momentum in
Slide 6: U.K.'s Performance More Than Offsets Ziggo
U.K.’s Performance More Than Offsets Ziggo (1) Virgin Media delivers strong results across the board; issues in Holland being addressed Challenges in Robust U.K. Performance Dutch market • Superior products resonating well • 4th straight quarter of record low churn • Lower sales & higher churn due t
Slide 7: LiLAC Group Q2 2015 Key Highlights
(1) LiLAC Group Q2 2015 Key Highlights LatAm region delivering strong operational and financial performance • Superior products driving gains in Organic RGU Additions RGUs and customers in Q2 79 • Q2 rebased revenue and OCF growth of 7.3% and 13.1%, respectively • Started Choice integration in June
Slide 8: Key Building Blocks of Customer Proposition
Key Building Blocks of Customer Proposition Superior connectivity complemented with best-in-class TV experience Next-Generation TV DOCSIS 3.1 Mobile Strategy (1) • ~4mm Next-Gen TV • 3.1 trials set for H2, • Full launch in Austria and subscribers at Q2’15; deployments expected to expanding “split ha
Slide 9: Liberty 3.0 Program Kicking Off
(1) Liberty 3.0 Program Kicking Off Three powerful drivers expected to enhance our growth in the coming years 3.0 Project Goals & Targets • Transformational project designed to ensure continued success. Blueprint completed following extensive work by executive team • $1bn of efficiencies identified,
Slide 10: Agenda
Agenda Executive Finance Appendix Summary Liberty Global | Q2 2015 Investor Call | August 5, 2015 10
Slide 11: Liberty Global Group – H1 2015 Results
Liberty Global Group – H1 2015 Results (1) Revenue Growth OCF Growth H1 ‘14 $8,530 H1 ‘14 $4,043 H1 ‘15 3% $8,484 H1 ‘15 2% $4,047 Property & Equipment Additions Free Cash Flow H1 ‘14 21% $1,747 H1 ‘14 $990 H1 ‘15 22% $1,840 H1 ‘15 $894 (1) Amounts are in millions, except % amounts. Revenue and OCF
Slide 12: Q2 2015 Results – Western Europe
Q2 2015 Results – Western Europe (1) Leveraging the scale of our distribution platform to drive operational efficiencies United Kingdom U.K./Ireland Belgium Switzerland/Austria Germany Netherlands 12% 8% 6% 3% 3% 6% 2% 5% Revenue OCF Revenue OCF Revenue OCF Revenue OCF -2% -5% Revenue OCF (1) Please
Slide 13: Liberty Global Group – Leverage & Buybacks
Liberty Global Group – Leverage & Buybacks (1) 5.1x 5.0x 5.0x Adjusted 4.8x Leverage Ratios Liberty Global Group Q4 ’14 Q4 ’14 Q2 ’15 Q2 ’15 GROSS NET GROSS NET Share Repurchases(2) 2015/16 Amount Remaining $3.0 Dec’16 $0.9 YTD June 2015 (1) Please see Appendix for definitions and additional informa
Slide 14: H1 LiLAC 2015 Financial Results
(1) H1 LiLAC 2015 Financial Results Revenue Growth OCF Growth H1 ‘14 $606 H1 ‘14 $230 H1 ‘15 6% $599 H1 ‘15 10% $236 Property & Equipment Additions Free Cash Flow H1 ‘14 22% $135 H1 ‘14 $63 H1 ‘15 21% $126 H1 ‘15 $28 (1) Amounts are in millions of dollars, except % amounts (Revenue and OCF growth is
Slide 15: Q2 LiLAC 2015 – Results and Leverage
Q2 LiLAC 2015 – Results and Leverage (1) Strong organic growth in Chile and Puerto Rico provides solid foundation Revenue Growth Breakdown Chile 7% $221 Adjusted Leverage Puerto Rico 8% $91 Ratio 3.9x 3.5x (2) OCF Growth Breakdown Chile 14% $88 Q2 ’15 Q2 ’15 GROSS NET Puerto Rico 12% $41 (1) Amounts
Slide 16: Conclusions
Conclusions All full-year 2015 guidance targets confirmed Excited about Fall campaigns and new product pipeline LiLAC highlights attractive growth opportunities in region Expect Liberty 3.0 to meaningfully enhance growth prospects Liberty Global | Q2 2015 Investor Call | August 5, 2015 16
Slide 17: Agenda
Agenda Executive Finance Appendix Summary Liberty Global | Q2 2015 Investor Call | August 5, 2015 17
Slide 18: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted internet or telephony services that we count as example, if a mobile subscriber has both a data and in the United States. RGUs, without regard to which or to how many voice plan on a smartphone this would equate
Slide 19: Definitions and Additional Information
Definitions and Additional Information Basic Video Subscriber is a home, residential Subscribers to enhanced video services provided networks. In Switzerland, we offer a basic phone multiple dwelling unit or commercial unit that by our operations in Switzerland and the service to our Basic and Enhan
Slide 20: Definitions and Additional Information
Definitions and Additional Information Information on Rebased Growth For purposes of have included Ziggo, Choice and two small entities would have occurred if these transactions had calculating rebased growth rates on a comparable in whole or in part in the determination of our occurred on the dates
Slide 21: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation As used herein, OCF has the same meaning as the disposition of long-lived assets, (b) third-party costs operate. We believe our OCF measure is useful to term “Adjusted OIBDA” that is referenced in our 10- directly associated with successful and inves
Slide 22: Free Cash Flow Definitions and Reconciliations
Free Cash Flow and Free Cash Flow (*) Definitions and Reconciliations We define free cash flow as net cash provided by our operating activities, plus (i) excess tax benefits related to the exercise of share-based incentive awards, (ii) cash payments for third-party costs directly associated with suc
Slide 23: Definitions and Additional Information
Definitions and Additional Information Free Cash Flow 5. Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are reported
Slide 24: Definitions and Additional Information
Definitions and Additional Information LiLAC Transaction On July 1, 2015, Liberty Global completed the "LiLAC Transaction" pursuant to which each holder of Liberty Global’s then-outstanding ordinary shares remained a holder of the same amount and class of Liberty Global ordinary shares and received