Slide 1: Q2 2012 Investor Call
Q2 2012 Investor Call August 3, 2012
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities access cash of our subsidiaries and the impact of our future financial performance and market conditions generally, on the availability, terms and Litigation Reform Act of 1995: deployment of capital, fluctuations in currency exchange
Slide 3: Agenda
Agenda Q2 2012 Highlights Financial Results Q&A Q2 2012 Investor Call | August 3, 2012 3
Slide 4: Q2 2012 Highlights
Q2 2012 Highlights (1) Organic Growth M&A \ Innovation Balance Sheet • Organic RGU adds up • Announced OneLink • Liquidity of $4.0 bn, 61% to 364,000 with acquisition in Puerto including $1.9 bn cons. Germany key driver Rico, adding scale cash ($1.3 bn parent) • Q2 revenue of $2.5 bn • German integr
Slide 5: Significant Net Adds Momentum
Significant Net Adds Momentum (1) RGU Additions for H1 & H2 (000s) Triple-play success driving results 809 706 469 486 368 339 238 • Record H1 results • Strong triple-play customer growth: H1 ‘09 H2 ‘09 H2 ‘11 H1 ‘12 up 39% YoY H1 ‘10 H2 ‘10 H1 ‘11 2009 2010 2011 2012 • 44% of our 20 mm customers bu
Slide 6: Europe Driving Rapid RGU Growth
Europe Driving Rapid RGU Growth (1) H1 RGU Additions (000s) Increased 67% year-over-year 809 (2) 79 2% • Latin America net adds up 2% • Western Europe net adds up 41% 322 486 +61% • Strong Swiss performance 78 • CEE doubled net adds to 118,000 200 • Germany increased net adds 13% +96% on a pro forma
Slide 7: Spotlight on Chilean Mobile
Spotlight on Chilean Mobile VTR 4G launched in May • Launch well received by market • Currently, 40,000+ mobile subs • Expect customer take-up to ramp • Unique offerings vs. competition • ARPU roughly double industry avg. (1) Mobile Customers Bundled Stand-alone Customers 51% 49% Customers (1) As of
Slide 8: Horizon Platform Key Differentiator
Horizon Platform Key Differentiator Next-generation video platform creates substantial gap vs. the competition • Gateway for all content & apps, bringing them onto the TV & second screen • Highly intuitive & elegant user experience, advanced personalization • Launching in the Netherlands in Septembe
Slide 9: Agenda
Agenda Q2 2012 Highlights Financial Results Q&A Q2 2012 Investor Call | August 3, 2012 9
Slide 10: YTD Financial Summary
YTD Financial Summary (1,2) Revenue OCF Rebased Growth of 5% Rebased Growth of 3% $5,062 $2,391 $4,688 8% $2,220 8% YTD '11 YTD '12 YTD '11 YTD '12 (1) All amounts are in USD millions. (2) Please see Appendix for the definition and reconciliation of OCF and for information on rebased growth. Q2 2012
Slide 11: Q2 Regional Summary
Q2 Regional Summary (1) Three months ended June 30, 2012 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe (excl. BE) $1,695 5% $880 3% Belgium (Telenet) 466 7% 237 5% Chile (VTR) 227 5% 75 (8%) (3) Total LGI $2,525 5% $1,195 3% (1) Please see Appendix for information on rebased growt
Slide 12: Western Europe Revenue Growth
Western Europe Revenue Growth (1) (2) Germany – record quarter Switzerland – accelerating growth 11% 8% 4% 2% Q2 '11 Q2 '12 Q2 '11 Q2 '12 Netherlands – poised to rebound Belgium – strong DTV & Mobile 7% 6% 4% 5% Q2 '11 Q2 '12 Q2 '11 Q2 '12 (1) Please note all growth figures are rebased. Please see A
Slide 13: Revenue Breakdown
Revenue Breakdown (1) (2) Q2 2012 by Country Q2 2012 by Product “Big Four” driving growth Voice and data fastest growing 84% Telephony Video 65% (1) Other revenue consists of Other Western Europe, Central and Eastern Europe, Central and other, VTR Group, Corporate and other and Intersegment eliminat
Slide 14: YTD CapEx & Adjusted FCF Results
YTD CapEx & Adjusted FCF Results (1) (2) CapEx to Revenue Adjusted Free Cash Flow YoY decline of 100bps YTD Adj. FCF increase of 19% $466 20.6% $392 19.6% $186 $150 24% 15% $279 $243 YTD '11 YTD '12 YTD '11 YTD '12 Q1 Q2 (1) Please see Appendix for the definition and reconciliation of FCF, Adjusted
Slide 15: Leverage and Share Repurchase Program
Leverage and Share Repurchase Program (1) Adjusted Leverage Q2‘12 YTD Share Repurchases Gross and net leverage declining Committed to complete $1 bn target 5.0x 4.8x Goal $566 4.7x H2‘12 4.4x $434 $434 Gross Leverage Net Leverage YTD 6/30/12 2012 Target Q1 Q2 (1) All amounts are in USD millions. Q2
Slide 16: Conclusions
Conclusions Record first half RGU additions Horizon product launch in September Expecting OCF acceleration in second half Confirming all full-year guidance targets Q2 2012 Investor Call | August 3, 2012 16
Slide 17: Appendix
Appendix LIBERTY GLOBAL \ \
Slide 18: Definitions and Additional Information
Appendix Definitions and Additional Information GAAP are accounting principles generally counted as RGUs. We do not include organic changes, unless otherwise noted. accepted in the United States. subscriptions to mobile services in our externally reported RGU counts. In this regard, Advanced service
Slide 19: Definitions and Additional Information
Appendix Definitions and Additional Information Digital penetration is calculated by dividing included in our results for the three and six deem appropriate. We do not adjust pre- the number of digital cable RGUs by the total months ended June 30, 2012, (ii) exclude the acquisition periods to elimin
Slide 20: Operating Cash Flow Definition and Reconciliation
Appendix Operating Cash Flow Definition and Reconciliation Operating cash flow is the primary measure costs, such as third-party due diligence, legal our performance with the performance of used by our chief operating decision maker to and advisory costs, and (iii) other acquisition- other companies
Slide 21: Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations
Appendix Free Cash Flow and Adjusted Free Cash Flow Definitions and Reconciliations(*) We define free cash flow as net cash We believe that our presentation of free cash consolidated cash flow statements.The provided by our operating activities, plus (i) flow provides useful information to our follo
Slide 22: Footnotes to CapEx, FCF, Leverage and Share Repurchase
Appendix Footnotes to Q2 CapEx & Adjusted Leverage & Share previous slide 21 FCF Results Repurchase 1) Excess tax benefits from stock-based 1) The capital expenditures that we report 1) Our gross and net debt ratios are compensation represent the excess of in our consolidated cash flow statements de