Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — FY2015 Earnings Presentation
26 slides from Liberty Global's earnings presentation, Feb 16, 2016
Slide 1: 2015 Investor Call
2015 Investor Call February 16, 2016
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements integrate new businesses and realize anticipated efficiencies from businesses we acquire; the availability of attractive programming for our This presentation contains forward-looking statements within the digital video services and the costs associated with
Slide 3: Agenda
Agenda Executive Summary Finance Appendix Liberty Global | 2015 Investor Call | February 16, 2016 3
Slide 4: Five Big Messages
Five Big Messages 1 Key growth drivers improved throughout the year 2 Guidance for 2016 & next three years trending up 3 Liberty 3.0 in full execution mode 4 Vodafone JV in NL creates national powerhouse 5 Balance sheet strong & buyback program upsized Liberty Global | 2015 Investor Call | February
Slide 5: Liberty Global plc Highlights
(1) Liberty Global plc Highlights Core drivers of value creation and opportunity have never been stronger O P E R AT I O N S & M&A | PRODUCTS & BALANCE FINANCIALS I N N O VAT I O N SHEET • 870k RGUs plus 456k mobile • Announced Vodafone JV in • Strong balance sheet with postpaid added in 2015 NL and
Slide 6: Delivered Enhanced Growth in H2 2015
(1) Delivered Enhanced Growth in H2 2015 Improvement across leading KPI’s driven by U.K., Germany and LiLAC NET ADDS REVENUE OCF FCF (1,000’s) (rebased growth) (rebased growth) (In millions) 5% $1,597 663 4% 3% 3% $922 207 H1 15 H2 15 H1 15 H2 15 H1 15 H2 15 H1 15 H2 15 • H2 net adds fueled • Strong
Slide 7: Ziggo & Vodafone NL to Merge Assets
Ziggo & Vodafone NL to Merge Assets Powerful combination of the best fixed and mobile networks in the Netherlands S T R AT E G I C R AT I O N A L E N AT I O N A L S C A L E • Unified communications provider with complementary OVER 15 MILLION FIXED & strengths across video, broadband, mobile and B2B
Slide 8: Ziggo Valued at ~11x 2015 OCF
Ziggo Valued at ~11x 2015 OCF Highly accretive transaction for Liberty shareholders DEAL STRUCTURE DEAL BENEFITS • 50-50 joint venture with equal governance Premium multiple for Ziggo going into JV • We valued Ziggo at an enterprise value of Continue to benefit from 50% of synergies, ~ €14 billi
Slide 9: Strategic Game Plan 2016 - 2018
Strategic Game Plan 2016 - 2018 Kicked-off three-year plan to drive faster rebased revenue & OCF growth • >1.5 mm new build in 2016; • Superior Speed 7mm over next three years • Next-Generation TV • Project Lightning ramps & • Pricing levers leads the way New Market • Keep indirect cost Share Build
Slide 10: Outlook & Guidance
Outlook & Guidance Stage set for a powerful 2016 LIBERTY GLOBAL GROUP LILAC GROUP GUIDANCE (EX BASE) GUIDANCE (EX CWC) • 2016 Rebased OCF growth: • 2016 Rebased OCF 5-7% excluding NL growth: 5-7% • 2016 FCF: over $2.0 billion(1) • Limited FCF in 2016 with >$700 mm increase in • 2015 to 2018 Rebased
Slide 11: Agenda
Agenda Executive Summary Finance Appendix Liberty Global | 2015 Investor Call | February 16, 2016 11
Slide 12: Liberty Global Group – 2015 Financial Results
(1) Liberty Global Group – 2015 Financial Results Western Europe delivers 5% rebased OCF growth in 2015 PROPERTY & REVENUE OCF FREE CASH FLOW EQUIPMENT ADDS (USD MM) (USD MM) (USD MM, % OF REVENUE) (USD MM, GROWTH %) 21% 23% 3% 3.5% 16% 17,063 3,653 3,910 2,432 17,044 2,103 8,046 8,176 2014 2015 201
Slide 13: 2015 Rebased Results | Western Europe
(1,2) 2015 Rebased Results | Western Europe Strong financial results across most Western European markets UK & AUSTRIA & GERMANY BELGIUM NETHERLANDS IRELAND SWITZERLAND 7% 6% 6% 6% 6% 6% 4% Revenue OCF 3% Revenue OCF Revenue OCF Revenue OCF -2% -2% Revenue OCF (1) Please see Appendix for definitions
Slide 14: Leverage & Buybacks
(1) Liberty Global Group - Leverage & Buybacks $2.3 bn stock repurchases during 2015; targeting $4 bn by year-end 2017 Borrowing Capacity $4.0bn $3.7bn By Year-End 2017 ADJUSTED LEVERAGE RATIOS LIQUIDITY 5.0x 4.9x $4.4bn SHARE REPURCHASES Parent Cash Gross Net Operating $0.2bn Subsidiary Cash $0.9bn
Slide 15: LiLAC Group – 2015 Financial Results
(1) LiLAC Group – 2015 Financial Results Operations in Chile and Puerto Rico deliver continued strong performance REVENUE OCF PROPERTY & FREE CASH FLOW GROWTH GROWTH EQUIPMENT ADDS (USD MM) (USD MM) (USD MM & %/REVENUE) (USD MM) 7% 8% 21% 25% 19% 1,205 1,217 256 87 477 491 227 70 2014 2015 2014 2015
Slide 16: LiLAC Group – 2015 Results and Leverage
(1) LiLAC Group – 2015 Results and Leverage Solid growth across both operations; cost of debt at 6.0% at Dec 31 REVENUE GROWTH O C F G R O W T H (2) ADJUSTED BREAKDOWN BREAKDOWN LEVERAGE RATIOS (USD M) (USD M) 7% 7% 838 328 10% 4.5x 6% 3.9x 379 167 Chile Puerto Chile Puerto Gross Net Rico Rico (1) A
Slide 17: Conclusions
Conclusions 2015 financial guidance targets achieved Excited about 2016 and 3-year growth prospects Boosting share repurchase ambition; $4 billion by year-end 2017 Vodafone JV a game-changer; CWC expected to close in Q2’16 Liberty Global | 2015 Investor Call | February 16, 2016 17
Slide 18: Agenda
Agenda Executive Summary Finance Appendix Liberty Global | 2015 Investor Call | February 16, 2016 18
Slide 19: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted Customer Relationships are the number of Organic RGU additions exclude RGUs of acquired in the United States. customers who receive at least one of our video, entities at the date of acquisition, but include the
Slide 20: Definitions and Additional Information
Definitions and Additional Information Next-Generation TV Subscribers in this Enhanced Video Subscriber is not counted as a Subscribers exclude mobile telephony subscribers. presentation includes our Horizon, TiVo, Horizon- Basic Video Subscriber. As we migrate customers Our Telephony Subscribers ex
Slide 21: Definitions and Additional Information
Definitions and Additional Information Total B2B includes subscription (SOHO) and of Ziggo, with the combined amount further adjusted segment OCF of Ziggo and Sport1 for the non-subscription revenue. Non-subscription adjusted to reflect the new Ziggo capital structure year ended December 31, 2015 of
Slide 22: Definitions and Additional Information
Definitions and Additional Information Profit Forecast We are currently in an offer period of these disposed subscribers is excluded from our adjustments, (c) any significant differences between (as defined in the City Code on Takeovers and results for the three months and year ended our accounting
Slide 23: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation As used herein, OCF has the same meaning as the directly associated with successful and comparing our performance with the performance of term "Adjusted OIBDA" that is referenced in our 10- unsuccessful acquisitions and dispositions, other companies
Slide 24: 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 25: Free Cash Flow
Definitions and Additional Information Free Cash Flow 6. 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 26: LiLAC Transaction
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 new Liberty Global ordinary shares and recei