Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2018 Earnings Presentation
21 slides from Liberty Global's earnings presentation, May 9, 2018
Slide 1: Liberty Global plc Investor Call
Liberty Global plc Investor Call Q1 2018 | May 9, 2018
Slide 2: Safe Harbor
“Safe Harbor” ® Forward-Looking Statements + Disclaimer filings with the Securities and Exchange Commission, including our most recently filed Forms 10-K and 10-Q. These forward-looking statements speak only as of the date of this presentation. We expressly disclaim any obligation or undertaking to
Slide 3: Executive Summary, Financial Results, Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX
Slide 4: Q1 2018 Highlights
Q1 2018 Highlights Solid start to the year across multiple fronts ® Premium valuation received in deal with Vodafone Strongest quarterly revenue growth in ~5 years (1) Virgin Media 5%+ revenue and OCF growth (1) Confirming all 2018 guidance targets (2) (1) On a rebased basis (2) See page 13 for impa
Slide 5: Transaction Overview
Transaction Overview ® SUMMARY Vodafone to acquire Liberty Global’s operations in Germany, Hungary, Romania and the Czech Republic (1) Approximately 28% of Liberty Global’s consolidated 2017 OCF (2) PRICE €19.0 billion ($22.7 billion ) total enterprise value (TEV) (3) (4) VALUATION Represents TEV /O
Slide 6: Strategic Rationale
Strategic Rationale ® PREMIUM Reflects appropriate premium valuation for VALUATION Liberty’s leading broadband and video operations CONVERGENCE Customers to benefit from scaled national fixed-mobile OPPORTUNITY challengers to incumbent telecom operators REBALANCING Successful track record of rebalan
Slide 7: Track Record of Value Creation: German Case Study
Track Record of Value Creation ® German Case Study Operational Execution (DE) Value Creation (DE) KEY KPI’s € BILLIONS Net Cash Total Gross (EU-IFRS) Proceeds Cash Flows 9.6 ~6x Return 9.3 13.1 Net Cash Upstreamed Equity 3.8 Invested 2.1 2010-2017 2018 2010-2018 2010-2011 See page 15 for detailed fo
Slide 8: Organic Growth Drivers
Organic Growth Drivers ® SUBSCRIBERS PRICE(1) • UK/IE (+45k) driven by RGUS (000) • U.K. & Ireland up 1.6% from CABLE ARPU (CUSTOMER) Lightning additions NET ADDS price rises in Q4’17 & Q1’18, REBASED GROWTH YOY Total RGUs respectively • Germany (+29k) impacted by 244 46MM 1.2% 1.2% 0.9% 1.3% price
Slide 9: Virgin Media Operating Update
Virgin Media Operating Update Strong first quarter as price rise lands well and churn declines ® (1) REVENUE AND OCF PROGRESSION NOVEMBER 2017 U.K. PRICE RISE U.K. CUSTOMER ARPU(2) REBASED REVENUE REBASED OCF • Impact of Q4 price rise now REBASED GROWTH YOY 5.2% GROWTH YOY 5.5% fully reflected 5.2%
Slide 10: Financial Results
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX
Slide 11: Q1 2018 Financial Results
(1) Q1 2018 Financial Results All key metrics broadly in line with expectations REVENUE OCF P&E ADDITIONS USD BN USD BN USD BN 4.2% REBASED GROWTH 4.7% REBASED GROWTH 25.2% 30.1% AS % OF REVENUE $4.2 $3.5 $1.9 $1.6 $1.3 $0.9 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Q1 2017 Q1 2018 ADJUSTED FCF LEVERAGE RATIO
Slide 12: Results by Segment
(1) Results by Segment Switzerland remains a significant headwind to OCF growth U.K. & IRELAND GERMANY 8.7% CEE 5.6% 6.4% 4.4% 5.2% 4.6% 4.6% 5.2% 4.9% 4.6% 4.3% 1.7% 2.5% REVENUE 0.9% 1.5% Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 Q1 '17 Q2 '17 Q3 '17 Q4 '17 Q1 '18 11.8%
Slide 13: Conclusions
Conclusions A solid start to 2018 across multiple fronts Transformational deal reinforces value creation strategy Improving U.K. ARPU as price rise fully kicks in B2B delivers another quarter of double-digit growth Strong quarter for U.K. mobile; Belgian market challenging Continuing to deploy capit
Slide 14: Appendix
EXECUTIVE SUMMARY FINANCIAL RESULTS APPENDIX
Slide 15: Vodafone Transaction - Footnotes
Vodafone Transaction - Footnotes 1. Please see Glossary for definitions and reconciliations 2. Convenience translation at USD/EUR of 1.1950 3. Total enterprise value calculated on a U.S. GAAP basis and does not include any outstanding indebtedness of the UPC Holding borrowing group 4. For the purpos
Slide 16: Rebase Information
Rebase Information For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2017, we have adjusted our historical revenue and OCF for the three months ended March 31, 2017 to (i) include the pre-acquisition revenue and OCF of an entity acquired d
Slide 17: Glossary
Glossary Adjusted Segment EBITDA: the primary measure used by Unitymedia’s management to evaluate Unitymedia’s performance. Adjusted Segment EBITDA is also a key factor that is used by Unitymedia’s internal decision makers to evaluate the effectiveness of Unitymedia’s management for purposes of annu
Slide 18: Glossary
Glossary Adjusted Free Cash Flow: net cash provided by our Adjusted Free Cash Flow should not be understood to operating activities, plus (i) cash payments for third- represent our ability to fund discretionary amounts, as party costs directly associated with successful and we have various mandatory
Slide 19: Glossary
Glossary ARPU: Average Revenue Per Unit is the average monthly to any recurring monthly service that requires the use of customers from basic to enhanced video services, we report subscription revenue per average cable customer encryption-enabling technology. Encryption-enabling a decrease in our Ba
Slide 20: Glossary
Glossary OCF: As used herein, OCF has the same meaning as substitute for, operating income, net earnings or loss, the term "Adjusted OIBDA" that is referenced in our cash flow from operating activities and other U.S. Form 10-Q. OCF is the primary measure used GAAP measures of income or cash flows. A
Slide 21: Glossary
Glossary Property and equipment additions: includes capital SIM: Subscriber Identification Module expenditures on an accrual basis, amounts financed under vendor financing or capital lease arrangements SOHO: Small or Home Office Subscribers and other non-cash additions. Telephony Subscriber: a home,