Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — FY2020 Earnings Presentation
26 slides from Liberty Latin America's earnings presentation, Mar 1, 2021
Slide 1: Liberty Latin America FY 2020 Investor Call
LIBERTY LATIN AMERICA FY 2020 INVESTOR CALL March 1, 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 acquisition of Telefónica's Costa Rica business; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attra
Slide 3: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 4: Key Messages
LIBERTY LATIN AMERICA | KEY MESSAGES(1) ROBUST FIXED-LINE OPERATIONS & ADJUSTED FCF DESPITE COVID-19 1 2 3 4 AT&T ~170K $148M PR & USVI ~400K RGU ADDS ADJUSTED FCF HOMES ACQUISITION IN 2020 IN 2020 +1M ADDED / MOBILE SUBS UPGRADED IN 2020 Record year for LPR Financial results Liberty Mobile off to >
Slide 5: Fixed & Mobile: Strong Fixed Adds & Recovery in Mobile
FIXED & MOBILE | STRONG FIXED ADDS & RECOVERY IN MOBILE(1) FIXED MOMENTUM CONTINUES IN C&W & LPR WITH VTR IMPROVING; MOBILE ADDITIONS IN Q3 & Q4 FIXED RGU EVOLUTION MOBILE SUBSCRIBER EVOLUTION FIXED RGU ADDITIONS | IN THOUSANDS MOBILE ADDITIONS (LOSSES) | IN THOUSANDS +171 (232) 60 58 69 48 35 19 (3
Slide 6: C&W Caribbean & Networks 2020 Highlights
C&W CARIBBEAN & NETWORKS | 2020 HIGHLIGHTS(1) RESILIENT FIXED BUSINESS; MOBILE ADDS IN H2 AFTER Q2 COVID-19 IMPACT FIXED RGU EVOLUTION REVENUE BY PRODUCT 2020 KEY MESSAGES FIXED RGU ADDITIONS | IN THOUSANDS FY 2020 FIXED MOBILE B2B SUBSEA • Jamaica >90k fixed RGU additions +103 • Mobile subscribers
Slide 7: C&W Panama 2020 Highlights
C&W PANAMA | 2020 HIGHLIGHTS(1) HIGH MOBILE AND B2B REVENUE WEIGHTING; MOST STRICT COVID-19 MOBILITY RESTRICTIONS FIXED RGU EVOLUTION REVENUE BY PRODUCT 2020 KEY MESSAGES FIXED RGU ADDITIONS (LOSSES) | IN THOUSANDS FY 2020 FIXED MOBILE B2B • Most impacted market by COVID-19 +35 • Resilient fixed sub
Slide 8: VTR & Cabletica 2020 Highlights
VTR & CABLETICA | 2020 HIGHLIGHTS(1) CHALLENGING YEAR; DISRUPTIONS FOLLOWING SIGNIFICANT INCREASE IN USAGE FIXED RGU EVOLUTION REVENUE BY PRODUCT 2020 KEY MESSAGES FIXED RGU ADDITIONS (LOSSES) | IN THOUSANDS FY 2020 FIXED MOBILE B2B • Challenging year for VTR (87) • Improving quarterly RGU 90% perfo
Slide 9: VTR Operational Update
VTR | OPERATIONAL UPDATE(1) NETWORK & CUSTOMER EXPERIENCE INVESTMENTS DRIVING IMPROVING TRENDS TECHNICAL CALLS & TRUCK ROLLS INTENTION TO DISCONNECT NEW BUILD ACTIVITY TECH CALL RATE TRUCK ROLL RATE DAILY NUMBER OF CALLS RECEIVED BY RETENTION PLATFORM IN THOUSANDS FTTH HFC (73%) ~400 (7%) (49%) 202
Slide 10: Liberty Puerto Rico 2020 Highlights
LIBERTY PUERTO RICO | 2020 HIGHLIGHTS(1) RECORD RGU ADDS & FOCUS ON NETWORK UPGRADES & MOBILE INTEGRATION FIXED RGU EVOLUTION REVENUE(2) 2020 KEY MESSAGES FIXED RGU ADDITIONS | IN THOUSANDS FY 2020 | IN MILLIONS • Record RGU additions in FY 2020 +121 930 1,380 • Strong start for acquired AT&T assets
Slide 11: Liberty Puerto Rico AT&T Integration Update
LIBERTY PUERTO RICO | AT&T INTEGRATION UPDATE CREATING NEW CUSTOMER PROPOSITIONS, MAINTAINING NETWORK SUPERIORITY & DRIVING SYNERGIES 1 2 3 4 5 BE THE LEADING LEAD WITH INTEGRATE & GROW LAUNCH EXCITING ENSURE SERVICE FULL-SERVICE TOUCHLESS, DIGITAL INTO ONE NEW NEW CUSTOMER CONTINUITY COMMUNICATIONS
Slide 12: Strategic Vision: Growth in 2021
STRATEGIC VISION | GROWTH IN 2021 FIVE FOCUS AREAS TO DRIVE PERFORMANCE & SUSTAINABLE GROWTH RECOVERY COST COMMERCIAL NETWORK M&A & GROWTH FOCUS Improve C&W Panama Focus on expansion of Integrate PR/USVI performance FTTH networks operations Drive product bringing connectivity to Continuous cost cont
Slide 13: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 14: Q4 & FY 2020 Financial Results
Q4 & FY 2020 FINANCIAL RESULTS(1) DELIVERED POSITIVE ADJUSTED FCF FOR 2020 REVENUE ADJUSTED OIBDA IN USD MILLIONS IN USD MILLIONS Q4 FY Q4 FY (1)% REBASED (3)% REBASED (4)% REBASED (2)% REBASED 3,867 3,765 1,541 1,485 1,097 975 409 428 Q4 19 Q4 20 FY 19 FY 20 Q4 19 Q4 20 FY 19 FY 20 P&E ADDITIONS AD
Slide 15: Revenue & Adjusted OIBDA Sequential Evolution
REVENUE & ADJUSTED OIBDA SEQUENTIAL EVOLUTION(1) Q4 2020 ADJUSTED OIBDA ABOVE Q1 2020 LEVEL REVENUE ADJUSTED OIBDA IN USD MILLIONS LIBERTY MOBILE IN USD MILLIONS LIBERTY MOBILE $3.8BN $1.5BN 1,097 174 Q1 level 428 56 Q1 level 931 923 888 849 364 360 372 333 Q1 20 Q2 20 Q3 20 Q4 20 Q1 20 Q2 20 Q3 20
Slide 16: Segment Financial Results
SEGMENT FINANCIAL RESULTS DOUBLE-DIGIT GROWTH AT LPR; COVID-19 IMPACTS MITIGATED THROUGH COST ACTIONS Q4 2020 Q4 2020 Q4 2020 Q4 2020 IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS IN USD MILLIONS LIBERTY MOBILE 296 15% 15% 21% AS % OF 428 14% AS % OF 244 AS % OF 116 REVENUE 182 REVENUE 131 AS % OF
Slide 17: Efficiency Strategy
EFFICIENCY STRATEGY(1) DRIVING IMPROVED ADJUSTED OIBDA MINUS P&E ADDITIONS CONVERSION ADJUSTED OIBDA MARGIN P&E ADDITIONS ADJ. OIBDA MINUS P&E ADDITIONS AS % OF REVENUE AS % OF REVENUE AS % OF REVENUE (50) -0.5 bps 39.9% 39.4% +150 +1.5 bps 22.7% (190) 21.2% -1.9 bps 18.7% 16.8% FY 19 FY 20 FY 19 FY
Slide 18: Robust Balance Sheet
ROBUST BALANCE SHEET(1) FINISHED THE YEAR WITH STRONG METRICS CASH & RCF AVAILABILITY(2) MATURITY SCHEDULE(4) IN USD BILLIONS C&W LPR VTR CT LLA CORP $0.9 $1.1 $2.0 6.3% FULLY- 6.2YEARS DEBT ~85% DEBT DUE IN BILLION BILLION SWAPPED BILLION WEIGHTED 2026 & BORROWING AVERAGE BEYOND CASH RCF AVAILABILI
Slide 19: 2021 Focus Areas
2021 FOCUS AREAS(1) OPERATING ENVIRONMENT SLOWLY IMPROVING; ANTICIPATE FURTHER RECOVERY IN 2021 1 2 3 4 PRODUCT & TOP-LINE INORGANIC ADJUSTED NETWORK RECOVERY STRATEGY FCF GROWTH INVESTMENT Product innovation Broadband Integration in PR & penetration opportunity Increasing USVI Expect to deliver fib
Slide 20: Agenda
AGENDA 01 | EXECUTIVE SUMMARY 02 | FINANCIAL RESULTS 03 | APPENDIX Part of Liberty Latin America
Slide 21: Definitions & Additional Information
DEFINITIONS & ADDITIONAL INFORMATION ADJUSTED OIBDA MARGIN REVENUE GENERATING UNIT (“RGU”) Calculated by dividing Adjusted OIBDA by total revenue for the applicable period. RGU is separately a video RGU, internet RGU or telephony RGU. A home, residential multiple dwelling unit, or commercial unit ma
Slide 22: 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 principles, (b) any significant effects of acquisition accounting adjustments, (c) any significant differences comparable basis for all businesses that we owned during 2020
Slide 23: 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 and Adjusted OIBDA less P&E Additions are meaningful measures because they represent a transparent view measures used by our c
Slide 24: 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 separately as the acquisition of future services from AT&T. See footnote to the table below for additional operating activities, plus (i) cash payment
Slide 25: Consolidated Leverage Ratio Definition & Reconciliation
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION We have set forth below our consolidated leverage and net leverage ratios. Our consolidated leverage and finance lease obligations is measured using swapped foreign currency rates. We believe our consolidated net leverage ratios, each a non-GAA
Slide 26: AT&T Acquired Entities Pre-Acquisition Information & Non-GAAP Reconciliation
AT&T ACQUIRED ENTITIES PRE-ACQUISITION INFORMATION & NON-GAAP RECONCILIATION The table below sets forth the revenue and Adjusted OIBDA (as defined by Liberty Latin America) of the The “revenue-as adjusted” and “Adjusted OIBDA-as adjusted” results are not necessarily indicative of the AT&T Acquired E