Slide 1: 2012 Investor Call
2012 Investor Call February 14, 2013
Slide 2: Safe Harbor
“Safe Harbor” Safe Harbor Statement Under the Private Securities timely meet delivery requirements, as well as other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission Litigation Reform Act of 1995: including our most recently filed Form 10-K. The
Slide 3: Agenda
Agenda 2012 Highlights Financial Results Q&A 3
Slide 4: Recent Highlights
(1) Recent Highlights Organic Growth M&A | Innovation Balance Sheet • Record RGU additions of • Announced agreement • Liquidity of $5.3 bn, incl. 1.6 mm, up 34% to acquire Virgin Media $3.1 bn of adjusted cash • 2012 revenue of $10.3 bn • Closed OneLink in Q4’12 • Over 85% of total debt (6% rebased)
Slide 5: Year End Dashboard
(1) Year End Dashboard 2012 Results 2012 2011 YoY Change Total RGUs (000s) 34,835 32,790 6% Organic RGU Adds (000s) 1,594 1,192 34% Revenue ($mm) $10,311 $9,511 6% rebased OCF ($mm) $4,870 $4,482 4% rebased OCF Margin % 47.2% 47.1% 10 bps Capex as % of Revenue 18.3% 20.3% 200 bps Adjusted FCF ($mm)
Slide 6: Subscriber Momentum
Subscriber Momentum RGU Annual Additions (1) Record quarterly & annual Triple-play success enhancing results results in 2012 Full year 2012 RGU 1,594 additions up 34% Q4 2012 RGU 465 additions up 22% 1,192 380 837 577 317 235 2009 2010 2011 2012 (1) Please see Appendix for the definition and informa
Slide 7: 2012 Net Adds Success By Product
(1) 2012 Net Adds Success By Product Broadband Internet Telephony 971 909 765 734 665 544 484 416 2009 2010 2011 2012 2009 2010 2011 2012 Video Total Organic Adds 2009 2010 2011 2012 1,594 1,192 (287) 837 (323) (307) (372) 577 2009 2010 2011 2012 (1) Please see Appendix for the definition and inform
Slide 8: Horizon Update
Horizon Update Two successful launches of our next-generation video platform Switzerland Netherlands Launch: January 2013 (1) Over 20,000 Horizon subscriptions Launch: September 2012 (1) > 10,000 unique Horizon TV online users (1) Over 100,000 Horizon subscriptions (1) > 200,000 unique Horizon TV on
Slide 9: Substantial Triple-Play Growth Potential
(1) Substantial Triple-Play Growth Potential Video breakdown Internet penetration Other 0.8 mm 36% 28% Analog Cable Digital 18% 8.4 mm 18.3 mm Cable Subs 9.1 mm Germany Netherlands LGI Total Bundling opportunity Single-Play Triple-Play Double-Play 20 mm 10.7 mm 6.0 mm 3.1 mm Customers (1) As of Dece
Slide 10: Virgin Media Acquisition
Virgin Media Acquisition A Powerful Combination • Creation of the world’s leading broadband communications company • Complementary strengths across video, voice & broadband products • Significant potential to monetize customer base • Substantial synergy opportunity • Accretive to free cash flow • St
Slide 11: 2013 Strategic Game Plan
2013 Strategic Game Plan Broadband Horizon Mobile (1) B2B M&A | Synergies LGI + VM 2012 (in $ bn) Small business segment Revenue $16.8 OCF $7.5 Enterprise segment OCF margin 44.8% Fast internet up to 150MB Adjusted FCF $1.5 First class fiber networks (1) Please see Appendix slides 25-27 for details
Slide 12: Agenda
Agenda 2012 Highlights Financial Results Q&A 12 12
Slide 13: 2012 Financial Summary
(1,2) 2012 Financial Summary Record 1.6 mm RGU additions in 2012 drive strong top-line Revenue OCF Rebased Growth of 6% Rebased Growth of 4% $10,311 $4,870 $9,511 8% $4,482 9% 2011 2012 2011 2012 (1) All amounts are in USD millions. (2) Please see Appendix for the definition and reconciliation of OC
Slide 14: 2012 Regional Summary
(1) 2012 Regional Summary Strong full-year growth in rebased revenue and OCF Year ended December 31, 2012 Revenue Rebased OCF Rebased ($mm) Growth ($mm) Growth (2) Europe (excl. BE) $6,880 5% $3,619 6% Belgium (Telenet) 1,918 8% 941 5% Chile (VTR) 941 6% 314 (7%) (3) Total LGI $10,311 6% $4,870 4% (
Slide 15: Key Western European Markets Performing
(1) Key Western European Markets Performing Rebased annual revenue growth 11% 8% 8% 7% 6% 5% 5% 4% 4% 2% Western DE BE NL CH Europe 2011 2012 (1) Please see Appendix for the definitions and information on rebased growth. Total Western Europe as used here includes Germany, the Netherlands, Switzerlan
Slide 16: 2012 CapEx & Adjusted FCF Results
(1) 2012 CapEx & Adjusted FCF Results Exceeded guidance on both metrics (2) CapEx to Revenue Adjusted Free Cash Flow YoY decline of ~200bps in Capex 2012 Adj. FCF increase of 31% $1,034 20.3% 18.3% $791 $594 (Q4’12) $368 (Q4’11) 2011 2011 2012 2012 2011 2012 (1) Please see Appendix for the definitio
Slide 17: Leverage and Total Liquidity
(1) Leverage and Total Liquidity Ample liquidity to fund Virgin Media acquisition (2) Adjusted Leverage 2012 Total Liquidity of $5.3 bn 5.3x ($bn) 4.7x $1.8 Adjusted $2.2 cash position of $3.1 bn $1.3 Borrowing Capacity LGI Parent Cash Gross Leverage Net Leverage Operating Subsidiaries’ Cash (1) Ple
Slide 18: PF Combined Medium-Term Outlook
PF Combined Medium-Term Outlook Mid-single-digit rebased revenue growth Mid-single-digit rebased OCF growth Capital intensity to decline Mid-teens free cash flow growth LGI 2012 Investor Call | February 14, 2013 18
Slide 19: Appendix
Appendix 19 19
Slide 20: Definitions and Additional Information
Appendix Definitions and Additional Information GAAP are accounting principles generally We do not include subscriptions to mobile the date of acquisition. All subscriber/RGU accepted in the United States. services in our externally reported RGU additions or losses refer to net organic counts. In th
Slide 21: Definitions and Additional Information
Appendix Definitions and Additional Information Digital penetration is calculated by dividing such entities are included in our results for the entities and (iv) other items we deem the number of digital cable RGUs by the total three months and year ended December 31, appropriate. We do not adjust p
Slide 22: 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 23: 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 to, and not a substitute for, GAAP measures provided by our operating activities, plus (i) discontinued operations. We believe that o
Slide 24: Footnotes to CapEx, Adjusted Leverage and Total Liquidity
Appendix Footnotes to 2012 CapEx & Adjusted Leverage & Total previous slide FCF Results Liquidity from the 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 statem
Slide 25: Certain combined metrics of Liberty Global and Virgin Media
(1) Appendix Certain combined metrics of Liberty Global and Virgin Media 2012 Results (2) (In billions, unless %) Combined Revenue $10.3 $6.5 $16.8 OCF $4.9 $2.7 $7.5 OCF margin 47.2% 41.0% 44.8% Adjusted FCF $1.0 $0.5 $1.5 (1) LGI amounts are on an as reported basis. Please see Appendix for the def
Slide 26: Virgin Media's Operating Cash Flow Definition and Reconciliation
Appendix Virgin Media’s Operating Cash Flow based on Liberty Global’s Definition and Reconciliation Operating cash flow is the primary measure and losses on the disposition of long-lived believes their operating cash flow measure is used by Liberty Global’s chief operating assets (ii) direct acquisi
Slide 27: Virgin Media's Free Cash Flow Definitions and Reconciliations
Appendix Virgin Media’s Free Cash Flow using Liberty Global’s Definitions and Reconciliations Liberty Global defines free cash flow as net cash provided or used by discontinued Investors should view free cash flow as a cash provided by operating activities, plus (i) operations. Liberty Global believ