Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — Q3 2021 Earnings Presentation
21 slides from Liberty Latin America's earnings presentation, Nov 3, 2021
Slide 1: Liberty Latin America Q3 2021 Investor Call
LIBERTY LATIN AMERICA Q3 2021 INVESTOR CALL November 3, 2021 Part of Liberty Latin America
Slide 2: Safe Harbor: Forward-Looking Statements and Defined Terms
“SAFE HARBOR” FORWARD-LOOKING STATEMENT | DEFINED TERMS FORWARD-LOOKING STATEMENTS AND DISCLAIMER Chile; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services a
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Liberty Latin America Key Messages
LIBERTY LATIN AMERICA | KEY MESSAGES(1) CONTINUING SUBSCRIBER MOMENTUM & STRONG ADJUSTED FCF GENERATION 1 2 3 4 5 PANAMA & +84K +74K ~600K $149M CHILE FIXED RGU MOBILE SUB HOMES ADDED ADJUSTED FCF TRANSACTIONS ADDITIONS ADDITIONS / UPGRADED YTD ANNOUNCED YTD Adds across all Accretive segments Driven
Slide 5: Fixed: Strongest Quarter of the Year
FIXED | STRONGEST QUARTER OF THE YEAR(1) NET ADDS ACROSS ALL SEGMENTS; DRIVEN BY C&W FIXED RGU EVOLUTION NETWORK EXPANSION FIXED RGU ADDITIONS | IN THOUSANDS ARPU PER CUSTOMER RELATIONSHIP x% YOY FX-NEUTRAL CHANGE HOMES PASSED ADDED & UPGRADED | IN THOUSANDS % FIBER NEW BUILD & UPGRADE $48 +2% Q1 20
Slide 6: Mobile: Continued Additions with Growing Postpaid
MOBILE | CONTINUED ADDITIONS WITH GROWING POSTPAID(1) COSTA RICA MOBILE OPERATIONS & C&W DRIVE Q3 SUBSCRIBER GROWTH MOBILE SUBSCRIBER EVOLUTION MOBILE ADDITIONS (LOSSES) | IN THOUSANDS MOBILE ARPU x% YOY FX-NEUTRAL CHANGE $13 +8% 118 69 74 48 55 (39) (310) Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 P
Slide 7: B2B: Year-over-Year Growth
B2B | YEAR-OVER-YEAR GROWTH(1) STEADY RECOVERY FROM INITIAL IMPACTS OF COVID-19 IN C&W; INORGANIC GROWTH IN LPR B2B REVENUE B2B CUSTOMER SEGMENTS IN USD MILLIONS % YTD B2B REVENUE C&W C&N SUBSEA 229 ENTERPRISE 213 217 53 54 WHOLESALE 51 167 47 151 154 SMB 13 14 63 62 63 GOVERNMENT Q3 19 Q3 20 Q3 21
Slide 8: Progressing Our Inorganic Strategy
PROGRESSING OUR INORGANIC STRATEGY(1) ANNOUNCED ACCRETIVE TRANSACTIONS TO ADDRESS STRATEGIC OBJECTIVES AMX & LLA CHILE OPERATIONS JOINT VENTURE(2) CLARO PANAMA ACQUISITION(3) INVESTMENT RATIONALE INVESTMENT RATIONALE • 50:50 JV combining two of Chile’s leading telecom • Mobile market expected to go
Slide 9: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 10: Q3 & YTD 2021 Revenue & Adjusted OIBDA
Q3 & YTD 2021 REVENUE & ADJUSTED OIBDA(1) REBASED TOP-LINE GROWTH YOY DRIVEN BY C&W REVENUE ADJUSTED OIBDA IN USD MILLIONS IN USD MILLIONS 34% 3% 24% 0% REPORTED REBASED REPORTED REBASED +305 1,192 +86 888 360 446 Q3 20 Q3 21 Q3 20 Q3 21 32% 4% 29% 4% REPORTED REBASED REPORTED REBASED +853 +303 3,52
Slide 11: Segment Financial Results
SEGMENT FINANCIAL RESULTS(1) STRONG YOY RECOVERY IN C&W PANAMA Q3 2021 Q3 2021 Q3 2021 Q3 2021 Q3 2021 IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS 435 359 193 129 77 182 142 48 65 24 REVENUE ADJ. REVENUE ADJ. REVENUE ADJ. REVENUE ADJ. REVENUE ADJ. OIBDA OIBDA OIBD
Slide 12: Q3 & YTD 2021 P&E Additions & Adjusted FCF
Q3 & YTD 2021 P&E ADDITIONS & ADJUSTED FCF(1) STRONG YOY GROWTH IN ADJUSTED FCF P&E ADDITIONS ADJUSTED FCF IN USD MILLIONS; AS % OF REVENUE IN USD MILLIONS 18% 20% +78 232 157 56 (22) Q3 20 Q3 21 Q3 20 Q3 21 17% 17% +89 599 443 149 59 YTD 20 YTD 21 YTD 20 YTD 21 (1) See Appendix for definitions and
Slide 13: Revenue by Currency
REVENUE BY CURRENCY(1) DIFFERENTIATED BY SIGNIFICANT US DOLLAR WEIGHTING Q3 2021 REVENUE BY CURRENCY(2) CHILEAN 16% PESO 64% USD & USD PEGGED OR LINKED $1.2 JAMAICAN BILLION 8% DOLLAR COSTA RICAN 6% COLON OTHER 5% (1) See Appendix for definitions and additional information. Due to rounding, certain
Slide 14: Balance Sheet & Liquidity Position
BALANCE SHEET & LIQUIDITY POSITION(1) IMPROVED TENOR & COST OF DEBT WITH C&W REFI; ACCELERATED SHARE BUYBACK ACTIVITY IN Q3 FINANCING ACTIVITY MATURITY SCHEDULE(4) IN USD BILLIONS C&W LPR VTR CR LLA CORP 3.0 3.0 Purchase consideration financed with mix of debt and cash DUE IN 2027 >85% & BEYOND • ~$
Slide 15: Conclusions
CONCLUSIONS(1) STRATEGIC PROGRESS THROUGH M&A; ON-TRACK FOR 2021 GUIDANCE TARGETS 1 2 3 4 ON-TRACK FOOTPRINT INORGANIC GROWTH TO ACHIEVE EXPANSION STRATEGY GUIDANCE Integration in Puerto Rico and Costa Rica P&E additions to be Continued subscriber ~600k fiber homes ~18% of revenue additions Acquisit
Slide 16: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 17: Definitions & Additional Information
DEFINITIONS & ADDITIONAL INFORMATION ADJUSTED OIBDA MARGIN (receipts)) and net debt to annualized Adjusted OIBDA of the latest two quarters. Net debt is defined as total Calculated by dividing Adjusted OIBDA by total revenue for the applicable period. debt (including the convertible notes) less cash
Slide 18: Information on Rebased Growth
INFORMATION ON REBASED GROWTH Rebase growth rates are a non-GAAP measure. For purposes of calculating rebased growth rates on a adjusted for the estimated effects of (a) any significant differences between U.S. GAAP and local generally comparable basis for all businesses that we owned during 2021, w
Slide 19: Adjusted OIBDA & Adjusted OIBDA less P&E Additions Definition & Reconciliation
ADJUSTED OIBDA & ADJUSTED OIBDA LESS P&E ADDITIONS DEFINITION & RECONCILIATION Adjusted OIBDA and Adjusted OIBDA less P&E Additions, each a non-GAAP measure, are the primary view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) measures used by our ch
Slide 20: Adjusted Free Cash Flow Definition & Reconciliation
ADJUSTED FREE CASH FLOW DEFINITION & RECONCILIATION We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP measure, as net cash provided by our this measure can be used to gauge our ability to service debt and fund new investment opportunities. Adjusted operating activities, plus (i) cash paym
Slide 21: Consolidated Leverage Ratio Definition & Reconciliation
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION We have set forth below our consolidated leverage and net leverage ratios, which include VTR. Our foreign currency rates. We believe our consolidated leverage and net leverage ratios are useful because they consolidated leverage and net leverag
Liberty Latin America — Q3 2021 Earnings Presentation on 6ix