Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — FY2016 Earnings Presentation
24 slides from Liberty Global's earnings presentation, Feb 16, 2017
Slide 1: Liberty Global Group Investor Call
2016 Liberty Global Group Investor Call February 16, 2017 (Amended on March 28, 2017)
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating This presentation contains forward-looking statements within the meaning of companies' future financial perfo
Slide 3: Liberty Global Group 2016 Investor Call
Liberty Global plc Investor Call | Liberty Global Group 2016 | February 16, 2017
Slide 4: Key European Highlights
Amended (1) Key European Highlights Achieved FY financial guidance; RGU growth, innovation & efficiencies power results Growth New Build Enhancing Solid FCF & Buyback and Accelerating Increasing Connect & Balance Sheet M&A Play Bundles Q4 rebased OCF 1.3 million new build Horizon now live Delivered
Slide 5: Rebased OCF Growth & Net Adds Accelerating
(1) Rebased OCF Growth & Net Adds Accelerating Began reaping Liberty Go benefits in H2 following early 2016 investments 2016 Rebased OCF Growth Organic Net Adds Up 24% YoY (Excludes Netherlands) (in ‘000, includes Netherlands) 946 7.5% UK/IE 8% 760 VOICE 515 VOICE 501 DE 4% DATA 646 DATA 722 5.2% (4
Slide 6: European New Build Program Delivering
Amended (1) European New Build Program Delivering Delivered 1.3 million homes in 2016; forecasting 1.3 to 1.4 million new homes in 2017 UK/Ireland Germany Switzerland & Belgium Central & Austria Eastern 700 to Europe 800 590 400 314 100 80 44 30 51 50 2016 2017 2016 2017 2016 2017 2016 2017 2016 201
Slide 7: UK | Investing to Accelerate RGU Growth in 2017
Amended (1,2) UK | Investing to Accelerate RGU Growth in 2017 2016 net adds up 39% YoY boosted by Lightning & RGU growth on existing footprint U.K. Net Adds Ramping Project Lightning Project Lightning U.K. 2 Accelerating Customer Penetration 80 304 27% (33) 86 314 94 22% 23% 219 81 19% 222 16% 158 8
Slide 8: Expanding FMC Across Our Footprint
(1) Expanding FMC Across Our Footprint Market-by-market convergence strategy in Europe is working Virgin Media Telenet VodafoneZiggo Other Markets (U.K.) • Announced five-year • Ubiquitous connectivity • Creation of most • Switzerland | full-MVNO; solid full-MVNO extension via superior fixed innovat
Slide 9: Ziggo | Building Blocks for Growth in Place
(1) Ziggo | Building Blocks for Growth in Place Subscriber turnaround spurred by investments in customer experience; JV underway Net Adds Turnaround Superior Proposition Joint Venture Insights Data Voice Video 51 12 (11) 56 (40) (28) (52) 10 14 6 7 (7) (3) (5) (6) (17) (19) (33) (44) (51) • Ziggo Sp
Slide 10: 2017 Operating Game Plan
(1) 2017 Operating Game Plan Investing to accelerate our revenue and rebased OCF growth 2017 Guidance • 6-7% rebased OCF growth in 2017 Delivering great entertainment • Stepping up to 7-8% annual through superior connectivity rebased OCF growth over the medium-term, with upside in 2018 Executing on
Slide 11: Liberty Global Group 2016 Investor Call
Liberty Global plc Investor Call | Liberty Global Group 2016 | February 16, 2017
Slide 12: Full-Year 2016 Financial Results
(1,2) Full-Year 2016 Financial Results 2016 rebased OCF performance of 4.3% (excluding NL) powered by solid H2 2016 3.3% 4.3% 23% 27% Rebased (ex. Ziggo) Rebased As a % of revenue (ex. Ziggo) 17.1 17.3 8.2 8.2 4.6 3.9 2.4 2.0 2015 2016 2015 2016 2015 2016 2015 2016 (1) Amounts are in billions, excep
Slide 13: Full-Year 2016 Rebased Results by Segment
(1,2) Full-Year 2016 Rebased Results by Segment Key drivers of our Liberty Go program are kicking in across our platform 6% 6% REVENUE OCF 5% 5% (2)% 4% (3)% 3% 3% 2% REVENUE OCF REVENUE OCF REVENUE OCF REVENUE OCF (1) Please see Appendix for definitions and additional information. (2) Growth rate f
Slide 14: Leverage & Buybacks
(1) Leverage & Buybacks $2.3 billion of cash proceeds from JV deal significantly improves financial fire power Q1-Q3 2016 Cash $1.6bn Borrowing Pro Forma Capacity Close JV Share $3.0bn $2.3bn Repurchases 5.0x 4.8x Q4 2016 $0.5bn Liquidity $6.4bn Target YE2017 $3.0bn GROSS NET Parent & Subsidiary Cas
Slide 15: Conclusions
Conclusions New build & product differentiation fuel RGU performance Continued focus on enhancing the customer experience Liberty Go program beginning to bear fruit Step-up in Q4 results setting the stage for 2017 plan On-track to deliver 6-7% rebased OCF growth in 2017 and 7-8% annually over the me
Slide 16: Liberty Global Group 2016 Investor Call
Liberty Global plc Investor Call | Liberty Global Group 2016 | February 16, 2017
Slide 17: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted in Organic RGU additions exclude RGUs of acquired Medium-Term Rebased OCF Growth Our medium- the United States. entities at the date of acquisition, but include the term OCF guidance of 7% to 8% is intended to g
Slide 18: Definitions and Additional Information
Definitions and Additional Information Total B2B includes subscription (SOHO) and non- Enhanced Video Subscribers without an incremental subscription revenue. Non-subscription revenue recurring fee. Our Internet Subscribers in Switzerland includes the amortization of deferred upfront Enhanced Video
Slide 19: Definitions and Additional Information
Definitions and Additional Information Homes Passed are homes, residential multiple exclude the pre-disposition revenue, OCF and to give retroactive effect to any changes in estimates dwelling units or commercial units that can be associated intercompany eliminations of Film1, which that might be im
Slide 20: Definitions and Additional Information
Definitions and Additional Information Information on Rebased Growth The following table provides adjustments made to the 2015 amounts to derive our rebased growth rates for the Liberty Global Group: Liberty Global plc Investor Call | Liberty Global Group 2016 | February 16, 2017 24 20
Slide 21: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our 10-K. OCF is the primary measure used by our chief operating decision maker to evaluate segment operating performance. OCF is also a key factor that is us
Slide 22: Adjusted Free Cash Flow Definition and Reconciliations
Adjusted Free Cash Flow Definition and Reconciliations(*) We define adjusted 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 succes
Slide 23: Definitions and Additional Information
Definitions and Additional Information Adjusted Free Cash Flow 1. 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
Slide 24: Definitions and Additional Information
Definitions and Additional Information LiLAC Transaction The Liberty Global ordinary shares and the LiLAC ordinary shares are tracking shares. Tracking shares are intended by the issuing company to reflect or “track” the economic performance of a particular business or “group,” rather than the econo