Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — FY2013 Earnings Presentation
27 slides from Liberty Global's earnings presentation, Feb 14, 2014
Slide 1: 2013 Investor Call
2013 Investor Call February 14, 2014
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities phasing of our FCF, our ability to access cash of our subsidiaries and the impact of our future financial performance and market conditions generally, on the Litigation Reform Act of 1995: availability, terms and deployment of capital,
Slide 3: Agenda
Agenda Recent Highlights Financial Results Q&A 3
Slide 4: Recent Operating & Financial Highlights
(1) Recent Operating & Financial Highlights Organic Growth M&A | Innovation Balance Sheet • RGU additions of 1.3 mm, • Announced agreement to • Liquidity of $7.0 bn, including (2) including 413k in Q4 acquire Ziggo in Jan’14 $3.7 bn of cash • Combined 2013 rebased • Closed Chellomedia sale for • Ove
Slide 5: Net Adds Success by Product
(1) Net Adds Success by Product Strong broadband and voice net adds driving subscriber growth 1,594 1,291 1,192 971 909 867 837 765 734 718 665 544 (372) (307) (287) (294) 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 2010 2011 2012 2013 (1) Organic RGU additions in the graphs are in t
Slide 6: United Kingdom – Integration & Innovation
(1) United Kingdom – Integration & Innovation • Gained 34k customers in H2’13 • Strong demand for higher speeds • TiVo base crossed 2 million • Innovation driving pricing power • Significant B2B wins in Q4’13 • Integration on track • Management reorganization substantially completed (1) Please see A
Slide 7: Germany – Superior Growth Model
(1) Germany – Superior Growth Model • 558,000 organic RGU adds in 2013 • Focused on volume & economics • Substantially enhanced value of our bundles: • Horizon TV • Increased broadband speeds • > 75,000 Horizon TV subs to date • SoHo operation gaining traction (1) Please see Appendix for the definit
Slide 8: Belgium – Continued Traction of Triple-Play
(1) Belgium – Continued Traction of Triple-Play • 146,000 organic RGU adds in 2013 • Best quarterly 3P adds in five years • Reached 750,000 mobile subs in 2013 • Price increase enabling future investments • FLUO: simplified SOHO and SME bundles (1) Please see Appendix for the definition and informat
Slide 9: Switzerland – Growth Momentum Continues
Switzerland – Growth Momentum Continues • Innovation drives ARPU & volume Superior Broadband • Over 150,000 Horizon TV subscribers to date • Introduction of Replay TV in Q4 • Preparing for full MVNO launch • Video price increase of 2% in Superior 3-play Offer January 2014 Replay TV Liberty Global 20
Slide 10: Netherlands – Focused on Improvement
(1) Netherlands – Focused on Improvement • Market remains competitive; operating strategies taking effect • 15,000 organic broadband RGU additions in Q4 • Good momentum in SoHo segment • Over 210,000 Horizon subscribers to date • 120,000 UPC WifiSpots & preparing for full MVNO launch (1) Please see
Slide 11: Ziggo – Creating a National Champion
Ziggo – Creating a National Champion Benefits for All Stakeholders Process Update • Reaching >90% of Dutch homes • Financing completed at attractive rates • Investment & innovation to benefit Dutch • Plan to file Form CO with EU Commission consumers and businesses later this month • Creates leading
Slide 12: 2014 Strategic Game Plan
2014 Strategic Game Plan Innovation & Leveraging Assets & Driving Scale Superior Digital TV Mobility M&A | Synergies (1) Speed Leadership Business Services 2014 Outlook • Accelerating rebased OCF growth • Declining capital intensity • ~$2.0 bn of Adjusted FCF (1) Please see Appendix for additional i
Slide 13: Agenda
Agenda Recent Highlights Financial Results Q&A 13
Slide 14: 2013 Combined Rebased Growth
(1) 2013 Combined Rebased Growth Compelling high speed broadband bundles drive financial results Revenue Growth OCF Growth Chile, Belgium and Germany top contributors Western Europe & Chile fueling growth 5% 5% 4% 4% 3% 2% Liberty Global Virgin Media Combined Liberty Global Virgin Media Combined exc
Slide 15: 2013 Regional Summary
(1) 2013 Regional Summary Strong growth in Latin America in 2013 Year ended December 31, 2013 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2,3) Europe (combined) $15,934 4% $7,532 4% (4) Latin America $1,289 6% $461 14% (3,5) Liberty Global (Combined) $17,264 4% $7,867 4% (5) Liberty Globa
Slide 16: “Big 5” Revenue and OCF Growth
(1,2) “Big 5” Revenue and OCF Growth 85% of Liberty Global’s combined OCF derived from the “Big 5” Germany Belgium Switzerland United Kingdom Netherlands 10% 9% 8% 7% 7% 4% 3% 2% Revenue OCF Revenue OCF Revenue OCF Revenue OCF Revenue OCF (2%) Revenue Growth 2013 (5%) OCF Growth 2013 (1) Please see
Slide 17: 2013 Combined P&E Additions and FCF
(1,2) 2013 Combined P&E Additions and FCF Strong Adj. Free Cash Flow Performance driven by $807 mm in Q4 P&E Additions to Revenue Combined Adj. Free Cash Flow Declined YoY by 50 bps ($ mm) $1,769 22.3% 21.8% 16% $1,531 $3.7 bn $3.8 bn 2012 2013 2012 2013 (1) Please see Appendix for the definition of
Slide 18: Balance Sheet & Share Repurchase Program
(1) Balance Sheet & Share Repurchase Program Ample liquidity to drive shareholder value Liquidity $7.0 bn Leverage Share Repurchases (in $ bn) of $4.5 bn program Liberty Global Borrowing parent cash Capacity 5.3x 4.9x $1.5 $3.5 bn $3.3 Dec’15 $1.2 ~22% $1.0 Operating subsidiaries’ cash $1.0 bn Proce
Slide 19: Conclusions
Conclusions Solid momentum heading into 2014 Accelerating OCF growth in 2014 $2.0 bn of Adjusted FCF in 2014 Ample liquidity to drive shareholder value Liberty Global 2013 Investor Call | February 14, 2014 19
Slide 20: Appendix
Appendix 20 20
Slide 21: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally Netherlands of 2,990,200, 750,500, 239,500, adjusted for currency impacts. ARPU per customer accepted in the United States. 71,300, 16,500, 7,700 and 3,000, respectively. Our relationship amounts reported for periods end
Slide 22: Definitions and Additional Information
Definitions and Additional Information Digital penetration is calculated by dividing the December 31, 2012 include Virgin Media, OneLink rebased growth percentages are not necessarily number of digital cable RGUs by the total number and two small entities. The acquired entities that indicative of th
Slide 23: 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 24: 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 as net cash provided by present Adjusted FCF, which adjusts FCF to substitute for, GAAP measures of liquidity included our operating activities, plus (i) excess tax benefits eliminate the incremen
Slide 25: Additional Information
Additional Information Free Cash Flow and 2013 Combined P&E Leverage and Liquidity Adjusted Free Cash Flow Additions and CapEx . (page 17, 24 and 27) (page 17) (page 18) 1) Excess tax benefits from share-based 1) Property and equipment additions include 1) Our gross and net debt ratios are defined a
Slide 26: Combined Liberty Global and Virgin Media
Combined Liberty Global and Virgin Media The combined amounts presented below have December 31, 2012, as adjusted to conform to the combined Liberty Global/Virgin Media been included in this release to provide a the FCF, Adjusted FCF and OCF definitions of results are not necessarily indicative of t
Slide 27: Combined Liberty Global and Virgin Media (Continued)
Combined Liberty Global and Virgin Media (Continued) Year ended Year ended December 31, 2013 December 31, 2012 Virgin Media Liberty Pre- Liberty Global acquisition Combined Global Virgin Media Combined in millions Net cash provided by operating activities of continuing operations......... $ 3,921.0