Liberty Global Ltd. · NASDAQ:LBTYA
Liberty Global — Q1 2015 Earnings Presentation
23 slides from Liberty Global's earnings presentation, May 8, 2015
Slide 1: Q1 2015 Investor Call
Q1 2015 Investor Call May 8, 2015
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements acquire and integrate new businesses and realize anticipated efficiencies from businesses we acquire, the availability of attractive programming for our digital video services and the costs associated with This presentation contains forward-looking statements
Slide 3: Agenda
Agenda APPENDIX FINANCIAL HIGHLIGHTS RESULTS Liberty Global Q1 2015 Investor Call | May 8, 2015 3
Slide 4: Q1 2015 Highlights
(1) Q1 2015 Highlights Balance Sheet Financial & Key Developments Operating Highlights Total liquidity of $4.3 bn, incl. Project Lightning launched available capacity Rebased revenue growth of in U.K., ramping in H2’15 3% in Q1 to $4.5 bn – on pace Gross leverage at 4.9x, cost of Telenet announced B
Slide 5: Q1 Net Adds Soft, April Back on Track
(1) Q1 Net Adds Soft, April Back on Track Drivers of Q1 Results Q1 Organic RGU Additions Lower adds in Germany largely anticipated, also impacted by higher MDU losses of 20k Dutch market remains competitive Underperformance in former Ziggo footprint BROADBAND 68k 154k Q1 ADDS Increased competitor di
Slide 6: Next-Generation Video Adoption Accelerates
Next-Generation Video Adoption Accelerates Today 39 million households can access our next-generation TV user experience Next-Generation TV Record quarterly Horizon TV adds Subscribers % of Enhanced Video Base(1) (in millions) Horizon TV now available Q1 '14 2.7 18% Q2 '14 2.9 20% across entire Dutc
Slide 7: Mobile Update
Mobile Update Focused on innovation & providing ubiquitous connectivity for our customers BASE Acquisition Full-MVNO Focus Unique and cost effective Capital light approach, leveraging opportunity for Telenet centralized MVNO hub Will secure long-term access to Expanding WiFi and preparing for mobile
Slide 8: Strategic Developments
Strategic Developments (1) Steady progress on key future growth drivers of our business B2B Update Project Lightning Liberty 3.0 Differentiating through speed, Q1 activity mainly consisted of Entering our 3rd phase of growth simplicity and service planning activities following substantial M&A activi
Slide 9: LiLAC Update – Set for Launch
LiLAC Update – Set for Launch (1) Latin American region delivers strong Q1 results Solid Q1 financial & operating performance +6% Mid-single digit OCF growth & limited FCF in 2015 +5% Tracker set to launch in early July Expect to close Choice deal shortly (2) REVENUE OCF 36k 14k CUSTOMERS RGUS (1) S
Slide 10: Agenda
Agenda APPENDIX FINANCIAL HIGHLIGHTS RESULTS Liberty Global Q1 2015 Investor Call | May 8, 2015 10
Slide 11: Q1 2015 Financial Results
(*) Q1 2015 Financial Results Rebased revenue growth improved in 5 out of 7 Western European countries REVENUE GROWTH OCF GROWTH Q1 ‘14 $4,534 Q1 ‘14 $2,128 Q1 ‘15 $4,517 Q1 ‘15 $2,097 Rebased Growth 3% Rebased Growth 1% REGIONAL REVENUE BREAKDOWN REGIONAL OCF BREAKDOWN Europe(2) $4,224 Europe(2) $2
Slide 12: Q1 2015 "Big 5" Revenue Results
(1) Q1 2015 “Big 5” Revenue Results Growth supported by Q1 2015 price increases and continued subscriber growth 7% 5% 3% 3% 4% 1% Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 8% 1% 5% -3% (2) Q1 2014 Q1 2015 Q12014 Q1 2014 Q1 Q1 2015 2015 (1) See appendix for definitions and additional informatio
Slide 13: Solid Free Cash Flow Generation
(*) Solid Free Cash Flow Generation Confirming 2015 Free Cash Flow guidance of $2.5 billion despite FX headwinds 20.5% 336 330 20.1% Q1 2014 Q1 2015 Q1 2014 Q1 2015 * Please see Appendix for the definition of P&E Additions and the definition and reconciliation of FCF. Liberty Global Q1 2015 Investor
Slide 14: FCF and Leverage Fuel Buybacks
(*) FCF and Leverage Fuel Buybacks Liquidity of $4.3 bn | Committed to repurchase an additional ~$3.5bn through YE’16 5.1x 4.8x 4.8x 4.9x 8.0% 6.8% 7.8% 7.0% 5.4% Q1 ’14 Q1 ’15 Q1 ’14 Q1 ’15 Q1 '11 Q1 '12 Q1 '13 Q1 '14 Q1 '15 NET GROSS $3.5 Dec’16 ~ $0.5 Q1 2015 2015/16 Amount Remaining * See append
Slide 15: Conclusions
Conclusions All 2015 guidance targets confirmed Next-generation TV reach expanding Project Lightning expected to ramp in H2 2015 LiLAC tracking stock to launch in early July 2015 Liberty Global Q1 2015 Investor Call | May 8, 2015 15
Slide 16: Agenda
Agenda APPENDIX FINANCIAL HIGHLIGHTS RESULTS Liberty Global Q1 2015 Investor Call | May 8, 2015 16
Slide 17: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted internet or telephony services that we count as at the foreign currency rates used to translate the in the United States. Revenue Generating Units (“RGUs”), without regard current year amounts. Liberty Global's
Slide 18: Definitions and Additional Information
Definitions and Additional Information Enhanced penetration is calculated by dividing the ended March 31, 2014 to the same extent that the are included in our historical results or that the pre- number of Enhanced video RGUs by the total revenue and OCF of these disposed subscribers is acquisition f
Slide 19: Definitions and Additional Information
Definitions and Additional Information Enhanced Video Subscriber is a home, residential Basic Video Subscriber is a home, residential multiple dwelling unit or commercial unit that multiple dwelling unit or commercial unit that receives our video service over our broadband receives our video service
Slide 20: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation OCF is the primary measure used by our chief losses on the disposition of long-lived assets, (b) strategies to improve operating performance in the operating decision maker to evaluate segment third-party costs directly associated with successful dif
Slide 21: Free Cash Flow Definitions and Reconciliations
Free Cash Flow and Free Cash Flow (*) Definitions and Reconciliations We define free cash flow (“FCF”) as net cash leases (exclusive of the portions of the network mandatory and contractual obligations, including provided by our operating activities, plus (i) excess lease in Belgium and the duct lea
Slide 22: Definitions and Additional Information
Definitions and Additional Information Mobile Update 1) For purposes of the multiple calculation, we use Telenet management’s estimate of BASE Company’s FY 2015 EBITDA of €165 million, as adjusted by Telenet to exclude BASE Company’s discontinued operations and estimated reorganization costs and to
Slide 23: Definitions and Additional Information
Definitions and Additional Information P&E Additions and CapEx 1) Property and equipment additions include our capital expenditures on an accrual basis and amounts financed under vendor financing or capital lease arrangements. 2) Capital expenditures refer to capital expenditures on a cash basis, as