Liberty Latin America Ltd. · NASDAQ:LILA
Liberty Latin America — FY2016 Earnings Presentation
29 slides from Liberty Latin America's earnings presentation, Feb 16, 2017
Slide 1: LiLAC Group Investor Call
2016 LiLAC Group Investor Call February 16, 2017
Slide 2: Safe Harbor
“Safe Harbor” Forward-Looking Statements respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and This presentation contains forward-looking statements within the meaning of deployment of capital; flu
Slide 3: Liberty Global plc Investor Call | LiLAC Group 2016
Liberty Global plc Investor Call | LiLAC Group 2016 | February 16, 2017
Slide 4: LiLAC Group - Unique Investment Opportunity
(1) LiLAC Group - Unique Investment Opportunity Highly diversified operations driving Fixed-to-Mobile convergence across the region Leading communications & entertainment platform, including fixed-line broadband, TV and mobile, leveraging the power of our subsea fiber network Attractive organic grow
Slide 5: LiLAC Group Key Highlights
(1) LiLAC Group Key Highlights Strong results at VTR & Liberty Puerto Rico; CWC integration on track Legacy LiLAC CWC Progress Network Product Buyback Group Expansion Enhancements Initiated Strong RGU & CWC strategy Built/upgraded Raised speeds at Announced customer established; over 150,000 legacy
Slide 6: LiLAC Group Operational Overview
(1) LiLAC Group Operational Overview Legacy LiLAC businesses performing well; new strategic plan at CWC 2016 Revenue 2016 OCF Operational Focus $923 Areas $894 $377 $332 LEGACY $151 • Leveraging Liberty $325 LILAC $355 LEGACY LEGACY Global expertise; LILAC LILAC $591 $140 implementing best $603 CWC
Slide 7: VTR | Delivered Solid 2016 Results
(1) VTR | Delivered Solid 2016 Results Chilean operation executing, as products continue to resonate with customers Strong subscriber trends 2016 Net Additions Home Build/Upgrade • Q4 BB & Mobile sub gains (000s) (000s) Enhancing the customer CUSTOMERS RGUS MOBILE SUBS experience 88 175 • Aggressive
Slide 8: Puerto Rico | Operational Excellence
(1) Puerto Rico | Operational Excellence Solid operational execution continues, despite macroeconomic headwinds Continued strength in 2016 Net Additions New Home Builds sub growth (000s) (000s) • Voice and data steady; CUSTOMERS RGUS improving video trend 22 Leading innovator in the market 15 • Laun
Slide 9: Cable & Wireless | Progress in 2016
(1) Cable & Wireless | Progress in 2016 Solidified management team, ramped integration efforts & launched new products (2) Investing in People Integration 2016 Net Additions (000s) • Post-acquisition in May, • Detailed strategic review began laying the ground work completed, execution RGUS MOBILE fo
Slide 10: Cable & Wireless | Top Three Markets
(1,2,3) Cable & Wireless | Top Three Markets New operating strategy in place; significant transformation opportunity Caribbean Panama Bahamas REVENUE SUBSCRIBERS REVENUE SUBSCRIBERS REVENUE SUBSCRIBERS $1.1bn 2.6mm $642mm 2.2mm $288mm 0.4mm BROADBAND MOBILE BROADBAND MOBILE FIXED MOBILE POSITION POS
Slide 11: Liberty Global plc Investor Call | LiLAC Group 2016
Liberty Global plc Investor Call | LiLAC Group 2016 | February 16, 2017
Slide 12: Full-Year 2016 Financial Results
(1,2) Full-Year 2016 Financial Results Legacy LiLAC delivered 9% rebased OCF growth in 2016; CWC posted 3% growth 1% 6% 19% 21% $2,724 $568 $87 $227 $62 $1,217 $1,084 $491 2015 2016 2015 2016 2015 2016 2015 2016 (1) Amounts are in millions, except for % amounts. Growth rate figures are rebased, exce
Slide 13: Full-Year 2016 Financial Results by Region
(1) Full-Year 2016 Financial Results by Region Strong performances at legacy LiLAC operations, partially offset by CWC $2,340 6% $860 $910 $1,445 1% 7% (1%) $421 15% $481 $339 23% $542 $212 22% $195 As reported 3% $283 $91 20% Revenue OCF P&E Revenue OCF P&E Revenue OCF P&E Additions Additions Addit
Slide 14: Leverage & Buybacks
(1) Leverage & Buybacks Equity repurchase program launched in November 2016; $300 mm target by YE 2019 Operating Borrowing Subsidiary Remainder Capacity Parent Cash Cash by YE ~$1.0bn $0.1bn $0.5bn 2019 $279mm 4.0x 3.6x Q4 2016 $21mm GROSS NET (1) Please see Appendix for definitions and additional i
Slide 15: 2017 Outlook
(1) 2017 Outlook YoY comparison impacted by LCPR non-recurring item & Q1’16 CWC pre-acquisition 2016 (USD mm) (2) • $1.5 billion of U.S. GAAP OCF in 2017 268 post acquisition (2) • Limited 2017 FCF CWC OCF 226 • P&E additions as a % of revenue expected to 201 215 range between 21%-23% in 2017 Q1 Q2
Slide 16: Conclusions
Conclusions Strong performances by VTR and LCPR set to continue CWC transformation programs well underway Investing & innovating in connectivity & entertainment Integration progressing; significant synergies identified Laying the foundation for accelerating growth Liberty Global plc Investor Call |
Slide 17: Liberty Global plc Investor Call | LiLAC Group 2016
Liberty Global plc Investor Call | LiLAC Group 2016 | February 16, 2017
Slide 18: LiLAC Group - Unique Investment Opportunity
(1,2) LiLAC Group - Unique Investment Opportunity Well-diversified operations across Latin America and the Caribbean 3% HOMES FTTH 76% PASSED HFC 2-WAY BY TECHNOLOGY 11% ADSL/VDSL 10% HFC 1-WAY 8% THE BAHAMAS 29% CARIBBEAN 19% 18% VIDEO 9% BROADBAND OTHER REVENUE BY GEOGRAPHY 8% 11% 6% FIXED PUERTO
Slide 19: C&W has ownership of leading data infrastructure in region
C&W has ownership of leading data infrastructure in region Liberty Global plc Investor Call | LiLAC Group 2016 | February 16, 2017 19
Slide 20: Definitions and Additional Information
Definitions and Additional Information GAAP are accounting principles generally accepted in Subscription Revenue includes amounts received decrease in our Basic Video Subscribers equal to the the United States. from subscribers for ongoing services, excluding increase in our Enhanced Video Subscribe
Slide 21: Definitions and Additional Information
Definitions and Additional Information Homes Passed are homes, residential multiple ended December 31, 2016. We have included CWC in necessary to present the revenue and OCF of these dwelling units or commercial units that can be the determination of our rebased revenue and OCF for entities on a bas
Slide 22: Operating Cash Flow Definition and Reconciliation
Operating Cash Flow Definition and Reconciliation As used herein, OCF has the same meaning as the operating items include (a) gains and losses on the operating performance in the different countries in term "Adjusted OIBDA" that is referenced in our 10- disposition of long-lived assets, (b) third-pa
Slide 23: Adjusted Free Cash Flow Definition and Reconciliations
Adjusted Free Cash Flow Definition and Reconciliations(*) We define adjusted free cash flow as net cash acquisitions), with each item excluding any cash consolidated statements of cash flows. Beginning provided by our operating activities, plus (i) excess provided or used by our discontinued operati
Slide 24: Definitions and Additional Information
Definitions and Additional Information Adjusted Free Cash Flow 1. Excess tax benefits from share-based compensation represent the excess of tax deductions over the related financial reporting share-based compensation expense. The hypothetical cash flows associated with these excess tax benefits are
Slide 25: Definitions and Additional Information
Definitions and Additional Information LiLAC Transaction The Liberty Global ordinary shares and the LiLAC ordinary shares are tracking shares. Tracking shares are intended by the issuing company to reflect or “track” the economic performance of a particular business or “group,” rather than the econo
Slide 26: CWC U.S. GAAP OCF to EU-IFRS Adjusted EBITDA SEC Regulation G Reconciliation
CWC U.S. GAAP OCF to EU-IFRS Adjusted EBITDA SEC Regulation G Reconciliation The following table provides a reconciliation of set forth below have been or will be used for CWC's previously disclosed Adjusted EBITDA purposes of computing rebased growth rates, as under International Financial Reportin
Slide 27: CWC U.S. GAAP OCF to IASB-IFRS Adjusted EBITDA SEC Regulation G Reconciliation (Continued)
CWC U.S. GAAP OCF to IASB-IFRS Adjusted EBITDA SEC Regulation G Reconciliation (Continued) The following table provides a reconciliation of accounting policies. On May 16, 2016, Liberty The Q1 2016 pre-acquisition period and the CWC's calendar year 2016 Adjusted EBITDA by Global completed the acquis
Slide 28: CWC U.S. GAAP OCF to IASB-IFRS Adjusted EBITDA SEC Regulation G Reconciliation (Continued)
CWC U.S. GAAP OCF to IASB-IFRS Adjusted EBITDA SEC Regulation G Reconciliation (Continued) (i) Represents the historical revenue and OCF of CWC, as adjusted for identified differences between CWC's pre-acquisition EU-IFRS policies and Liberty Global's U.S. GAAP policies and, with respect to OCF, as
Slide 29: CWC Revenue and P&E Additions
CWC Revenue and P&E Additions The following table provides the revenue and below includes the combination of pre-acquisition property and equipment additions of CWC by and post-acquisition revenue and property and quarter and in total for 2016. The revenue amounts equipment additions of CWC. The Q1