Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q2 2013 Earnings Presentation
28 slides from Liberty Global's earnings presentation, Aug 2, 2013
Slide 1: Q2 2013 Investor Call
Q2 2013 Investor Call August 2, 2013
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities creditworthiness of our counterparties, the ability of vendors and suppliers to timely meet delivery requirements, as well as other factors detailed from time to Litigation Reform Act of 1995: time in our filings with the Securities an
Slide 3: Agenda
Agenda Recent Highlights Financial Results Q&A 3
Slide 4: Driving Substantial Scale
(1) Driving Substantial Scale 47.0 million HOMES 24.5 million CUSTOMERS 47.5 million 14 RGUS COUNTRIES (1) As per June 30, 2013. Please see Appendix for the definitions. Liberty Global Q2 2013 Investor Call | August 2, 2013 4
Slide 5: Largest International Cable Operator
(1) Largest International Cable Operator TOTAL SUBSCRIBERS (RGUs) TOTAL CUSTOMERS & BUNDLING (in millions) 48 DOUBLE-PLAY VOICE 12 4.0m SINGLE-PLAY 11.0m DATA 14 24.5m CUSTOMERS VIDEO 22 TRIPLE-PLAY 9.5m (1) As per June 30, 2013. Please see Appendix for the definitions. Liberty Global Q2 2013 Invest
Slide 6: H1'13 & Recent Highlights
(1) H1’13 & Recent Highlights Organic Growth M&A | Innovation Balance Sheet • Total RGUs 47.5 mm with • Closed VMED: enhancing • Liquidity of $5.3 bn, incl. 564,000 additions in H1 scale & levered equity strategy $2.1 bn of consolidated cash • Combined rebased • Opportunistically increased • Over 85
Slide 7: Above Average Subscriber Growth
(1) Above Average Subscriber Growth Broadband Adds Telephony Adds 516 462 382 373 343 319 311 278 H1 2010 H1 2011 H1 2012 H1 2013 H1 2010 H1 2011 H1 2012 H1 2013 Video Adds Total Organic Adds H1 2010 H1 2011 H1 2012 H1 2013 809 564 (168) (169) 486 (191) (229) 368 H1 2010 H1 2011 H1 2012 H1 2013 (1)
Slide 8: "Big 5" Markets Driving Growth
(1,2) “Big 5” Markets Driving Growth H1’13 Revenue H1’13 OCF 12% 10% 9% 8% 6% 6% 5% 5% 5% 2% -1% -3% BE DE CH UK NL DE BE UK CH NL (1) Please see Appendix for the definition and reconciliation of OCF and for information on rebased growth. (2) H1’13 Virgin Media rebased growth rates are for the full
Slide 9: U.K. – Virgin Media Integration Update
(1) U.K. – Virgin Media Integration Update United Kingdom • New management; combining the best • Significant upside to synergy targets • LTM organic RGU additions >160k • Superfast bb RGUs increased 1.5 mm LTM • Added 720k new TiVo customers in LTM • 3 mm mobile subs, Quad-Play at 16% (1) Please see
Slide 10: Germany – Growth Trajectory Continues
(1) Germany – Growth Trajectory Continues Germany • 298,000 YTD organic additions • Focus on customer economics • Strong H1 rebased revenue growth of 9% • Driving 10% YTD rebased OCF growth • September Horizon TV launch (1) Please see Appendix for the definition and information on organic RGU additi
Slide 11: Belgium – Mobile Leveraging Fixed Assets
(1) Belgium – Mobile Leveraging Fixed Assets Belgium • Growing contribution from mobile • 46,000 organic additions in H1 • Record 12% H1 rebased revenue growth • Strong H1 rebased OCF growth of 8% • New simple & transparent bundles (1) Please see Appendix for the definition and information on organi
Slide 12: Netherlands – Investing & Competing
Netherlands – Investing & Competing Netherlands • Market remains competitive • Baptiest Coopmans, new MD • New product portfolio promising • 500 Mbps trial, testing WiFi hotspots • >185,000 Horizon TV subs to date Liberty Global Q2 2013 Investor Call | August 2, 2013 12
Slide 13: Switzerland – Strong Fundamentals Continue
(1) Switzerland – Strong Fundamentals Continue Switzerland • Speed superiority driving ARPU & volume • >85,000 Horizon TV subscribers to date • Solid YTD rebased revenue growth of 5% • Generating 5% H1 rebased OCF growth • Lowest triple-play % in our WE markets (1) Please see Appendix for the defini
Slide 14: Agenda
Agenda Recent Highlights Financial Results Q&A 14 14
Slide 15: H1'13 Combined Rebased Growth
(1) H1’13 Combined Rebased Growth Western Europe combined rebased revenue growth at 5% YTD Revenue Growth OCF Growth 6% 6% 5% 4% 4% 2% Liberty Global Virgin Media Combined Liberty Global Virgin Media Combined excluding VM excluding VM (1) Please see Appendix for the definition and reconciliation of
Slide 16: H1'13 Regional Summary
(1) H1’13 Regional Summary Western Europe and Chile Underpinning Growth Six months ended June 30, 2013 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe $5,057 6% $2,535 4% Chile (VTR) 503 8% 172 11% (3) Liberty Global (Reported) $5,930 5% $2,719 3% (4) Liberty Global (Combined) $8,72
Slide 17: H1'13 Combined P&E Additions and CapEx
(1,2,3) H1’13 Combined P&E Additions and CapEx Declining capital intensity P&E Additions to Revenue CapEx to Revenue Declined YoY by 90 bps Vendor Financing driving decline 22% 21% 19% 17% $1,851 $1,872 $1,575 $1,478 H1'12 H1'13 H1'12 H1'13 (1) Please see Appendix for the definitions of P&E Addition
Slide 18: H1'13 Free Cash Flow & Repurchase Program
(1) H1’13 Free Cash Flow & Repurchase Program Virgin Media driving adjusted free cash flow growth (2) Combined Adj. FCF Share Repurchases ($ mm) Commenced $3.5 bn program $760 $587 VM FCF: Virgin $121 30% $434 1/1 to 6/7 Media May 2015 9% June & Liberty Global $466 LG Actual July 2013 $326 (incl. VM
Slide 19: Leverage & Total Liquidity
(1) Leverage & Total Liquidity Continued access to ample liquidity Leverage Q2’13 Total Liquidity of $5.3 bn ($bn) 5.2x 5.0x $1.4 Cash $3.1 position of $2.1 bn $0.7 Gross Leverage Net Leverage Borrowing Capacity Liberty Global Parent Cash Operating Subsidiaries’ Cash (1) Please see Appendix for defi
Slide 20: Conclusions
Conclusions Solid YTD Performance Synergy Upside at Virgin Media Excited about Horizon TV Launches Focused on Growth & Capital Returns Liberty Global Q2 2013 Investor Call | August 2, 2013 20
Slide 21: Appendix
Appendix 21 21
Slide 22: Definitions and Additional Information
Appendix Definitions and Additional Information GAAP are accounting principles generally accepted cards in service in the U.K. Belgium, Germany, per customer relationship for the European in the United States. Chile, Poland, Hungary and the Netherlands of Operations and Liberty Global Consolidated a
Slide 23: Definitions and Additional Information
Appendix Definitions and Additional Information Digital penetration is calculated by dividing the acquired entities that have been included in whole occur in the future. The rebased growth number of digital cable RGUs by the total number of or in part in the determination of our rebased percentages
Slide 24: Operating Cash Flow Definition and Reconciliation
Appendix Operating Cash Flow Definition and Reconciliation Operating cash flow is the primary measure of long-lived assets, (ii) direct acquisition cash flow measure is useful to investors used by our chief operating decision maker to costs, such as third-party due diligence, legal because it is one
Slide 25: 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 excluding any cash provided or used by our we have various mandatory and contractual provided by our operating activities, plus (i) discontinued operation. We also present obli
Slide 26: Free Cash Flow, P&E Additions and CapEx, Leverage and Total Liquidity
Appendix Free Cash Flow and H1’13 Combined P&E Leverage and Adjusted Free Cash Flow Additions and CapEx Total Liquidity 1) Excess tax benefits from share-based 1) Property and equipment additions 1) Our gross and net debt ratios are compensation represent the excess of include our capital expenditur
Slide 27: Combined Liberty Global and Virgin Media Results
Appendix Combined Liberty Global and Virgin Media Results The Liberty Global amounts presented Media pre-acquisition amounts have been OCF, property and equipment additions below are on a reported basis, including converted at the average GBP/USD and capital expenditures that would have Virgin Media
Slide 28: Combined Free Cash Flow and Adjusted Free Cash Flow
Appendix Combined Free Cash Flow and Adjusted Free Cash Flow The Liberty Global amounts presented Appendix. The Virgin Media pre- Adjusted FCF that would have occurred if below are on a reported basis, including acquisition amounts have been converted the Liberty Global/Virgin Media transaction Virg