Liberty Global

A world leader in converge broadband video and mobile communications and an active investor
in cutting edge infrastructure, content and technology ventures with investments in fibre based
and 5G networks. We play quite a vital role in the society. We are currently providing over 85
million connections with 45 million mobile subscriber, 13 million fixed customers and connecting
31 million homes rolling out the next generation of products and services.

Our networks reach 10 Gigabit speed and beyond. Over the past decade, we have sort of
consolidated our positions and created national champions across five key markets, combining
the best broadband and mobile networks such as brands like Virgin Media, O2 in the UK, Virgin
Media and Ireland, Vodafone, Siegel in Netherlands, Sunrise in Switzerland, Telenet in Belgium
and UPC in Slovakia. Our combined annual revenue is around $24 billion.

And we also have the Liberty Global Ventures, which is our global investment arm, which has a
portfolio of more than 75 companies with 3.4 billion of funds invested across content,
infrastructure and technology.

So here if we try and understand a bit more about the federation, we can categorise our
investments into three large buckets or pillars. First, our operating companies where we try to be
the number one and #2 in every market we operate and where these companies sort of leverage
their scale synergies, their pursuit of strong growth and strategic optionality to not only meet the
demands of today's market, but also to position themselves for sustained success.
And the rapidly evolving telco entertainment sector. So for example, the vast scale allows them to
negotiate favourable terms with content providers, technology vendors and other partners. The
scale also allows us to contribute to cost efficiencies in network infrastructure and operations
synergies, extend to technological innovations and shared resources, ensuring that each of our
OP Co and each of our OPCO basically can benefit from the collective expertise and capabilities
within our ecosystem.

The Opcos also are strategically positioned to capitalise on the growing demand for digital
services as the telco and entertainment industries evolve. These companies focus on expanding
their customer base, introducing new products and services, as well as staying at the forefront of
technological advancements. Lastly, the maintain strategic optionality, which means that they are
actively able to explore and assess various parts for future development. This flexibility sort of
enables them to adapt them to adapt to market trends, regulatory changes.
Liberty Global-UK-GH-Santiago (12 Seats) 6 minutes 41 seconds
All this emerging opportunities, the outlook of our Opcos look quite stable as well because we
mostly have long term fixed rate debt with no near term majorities. If we move on to the
ventures portfolio today, sorry Kelly, the yeah. So if we talk about the venture portfolio today, we
are focused primarily on strategic adjacencies. We have a small dedicated team of long term
founder friendly investment experts based in Denver as well as Silicon Valley whose strategy is
sort of to invest in.
Liberty Global-UK-GH-Santiago (12 Seats) 7 minutes 13 seconds
Innovative and high growth early stage companies with a focus in tech. So we're essentially
looking for companies with products and services which we can sort of use in our operating
companies to bring in synergies as well as which will bring in some scalability to our core
business.

The content portfolio is also a very exciting one and this makes up nearly sort of half of our
ventures portfolio, which includes companies such as the portfolio Fleabag, all through media.
Liberty Global-UK-GH-Santiago (12 Seats) 7 minutes 43 seconds
Bollywood studio behind Hunger Games and Mad Men, Lionsgate and Spanish language
broadcast network Univision, so you can see a lot of very interesting names here. We also invest
in sports through channels such as Sigo Sports in the Netherlands and the Formula E Racing
Series and support digital startups such as Little Dot Studios.
Liberty Global-UK-GH-Santiago (12 Seats) 8 minutes 4 seconds
Infra is the fastest growing part of our adventures arm. We're focusing on exciting industries
adjacent to our core businesses, leveraging our companies expertise and track record. And again
telco financing and M and A.
Liberty Global-UK-GH-Santiago (12 Seats) 8 minutes 18 seconds
So in edge computing we have set up Atlas Edge with our partner digital bridge and invested in
Edge connects to bring data centres closer to our end customers. We are also monetising assets
in our operating companies such as the towers as well as the properties in the energy space we
recently launched EEC which is EU KS first electric vehicle home charging service and we have
partnered with Zoo Capital to create Liberty Charge which we have now rebranded to believe and
this leverages Virgin Media's.
Liberty Global-UK-GH-Santiago (12 Seats) 8 minutes 48 seconds
Doctor and expertise to rule out EV St Charging points across the UK. Apart from this, as you can
see, we also have the $4 billion in cash which comes from our free cash flow growth and we have
plans to sort of use it to buy back shares along with investing in Core M and a activities and
ventures portfolio. Moving on to the next slide.
Liberty Global-UK-GH-Santiago (12 Seats) 9 minutes 10 seconds
So here you can see all the activities and the strategy decisions are steered by this leadership
team here. Doctor Malone, who's a cable and media veteran.
Liberty Global-UK-GH-Santiago (12 Seats) 9 minutes 20 seconds
Fun fact, he also introduced the concept of epidda, so he was the one who came with the
concept that telcos and cable companies should be evaluated differently. He has over 40 years of
cable and television media experience. He plays a key role in establishing the company's strategic
and financial priorities.
Liberty Global-UK-GH-Santiago (12 Seats) 9 minutes 37 seconds
Then we have Mike Ries, who is our CEO since 2005. He helped to expand Liberty Global's
presence in key market. He was also the 5th Employee of Liberty Global. So you can see the sort
of, you know, career that he has across 20 years in this company. And then finally, we have our
CFO, Charlie Bracken, who's responsible for the group Finance and Treasury operations.
Interestingly, he's also the sponsor of the MBA programme. It was his office who actually started
this idea.
Liberty Global-UK-GH-Santiago (12 Seats) 10 minutes 6 seconds

Values

So we are agile, so we're resilient. We strive to embrace change, evolve, transform and really
adapt quickly to situations we are straight up. So we're really authentic. We like to be transparent
and just really like to do the right thing for our customer, but also for the organisation as a
whole. We're limitless. So we're bold. We like to set new standards and all things that we do.
Hudson, Kallie 11 minutes 18 seconds
And finally, we're united. So we collaborate and embrace all of our differences to to achieve our
goals within the business. So these values, as I said, they're really important to us and we try to
embrace them in the work that we do each day. And I would just say it's just something that's
really important when you're looking at roles and opportunities to have a look at the company
values and just kind of see which of those might resonate with you. I know that was something
that I found really useful when I was looking at opportunities kind of seeing these values and
seeing kind of what ones I felt were important and how I could reflect on them as well.
Liberty Global-UK-GH-Santiago (12 Seats) 11 minutes 51 seconds
Thanks Kelly.
Liberty Global-UK-GH-Santiago (12 Seats) 11 minutes 53 seconds
Yeah, yeah. So this is again just to give you a bit of flavour of how active we are in the M and a
space. So over the past few decades, we acquired March and invested in various businesses and
we also kept ourselves, as Kelly mentioned, Agile and lean by spinning off and divesting in some
of our businesses as well. We have executed more than 500 deals, which is worth 190 billion in
transaction value with the most recent one last year where we acquired 100% of Telenet so.
Liberty Global-UK-GH-Santiago (12 Seats) 12 minutes 23 seconds
The you know broad range of activities that we have done, the kind of spaces that we have
involved ourselves in, be it content, communications or even infrastructure. So it's very
interesting to see how sort of we have you know, strategically took those decisions to acquire
and divest some of those acquisitions that we have had and that sort of you know helped us to
come about where we are today.

Liberty Global brings people together

Values
Agile
We are resilient. We strive to embrace change, evolve, transform and adapt quickly.
Straight up
We are authentic, transparent and do the right thing for our customer and our organisation.
Limitless
We’re bold and set new standards in all that we do.
United
We collaborate and embrace our differences to achieve our goals.

Hudson, Kallie 13 minutes 24 seconds

However, then just the scheme itself will consist of four six month rotations and they will be in a
range of different departments. So obviously we've got that list there, so it could be areas like
capital allocation, business integration strategy M and a structured finance, but it could
also be some place within our ventures or a telco operating companies. So as we heard
about early on, a few slides before you heard about those various ventures that we have. So you
could have the opportunity to be working with Formula E you could be with our operating could
be our with.
Hudson, Kallie 13 minutes 56 seconds
Fibre or any of those sort of ventures that we have. So there's lots of opportunities to kind of step
outside of liberty global. We're still being within that family. Likewise that opportunity within our
telco operating companies. So you could find yourself doing a rotation within Virgin Media O2 or
you could find yourself going off to Zurich and doing a rotation with sunrise. So there's lots of
opportunities and I think the really unique part about this programme is that you do really have
that opportunity to completely tailor your experience to kind of what you want it to be. So if you
want to have those opportunities to explore those different companies underneath our global
brand.
News

22nd feb 2024

Nokia and Liberty Global's Belgian subsidiary Telenet have entered a partnership to
enhance operational efficiency and services at the Port of Antwerp, one of the world's
largest ports. Telenet will utilize Nokia's Network as Code platform with a developer
portal to create new network use cases for the port. In a recent trial, the partnership
demonstrated how Telenet's 5G standalone network, powered by Nokia's technology,
can enable remotely-located captains to operate vessels more safely and efficiently
through real-time data and zero-touch automation. The trial is part of Liberty
Global's Network-as-a-Service program and aligns with the Open Gateway initiative
for standardized APIs. The collaboration leverages 5G standalone networks, cloud
technology, edge computing, and AI-driven computer vision applications to drive
improvements in customer experiences.

15th feb
Liberty Global CEO, Mike Fries, highlighted the company's resilient performance in
2023 despite challenges such as cost-of-living and inflationary pressures and
increased competition in broadband, mobile, and video services. The Q4 and full-year
results demonstrated strong postpaid momentum and improved broadband
performance in most markets. The successful execution of price adjustments
throughout the year supported stable to growing revenues across Liberty Global's
Fixed-Mobile Convergence (FMC) markets in 2023. The Full Company Distributable
Cash Flow result was impacted by an unexpected U.S. litigation-related cash tax
payment of $315 million, but excluding this, they exceeded their Distributable Cash
Flow guidance of $1.6 billion for the year. The CEO reported postpaid growth across
all FMC operations in Q4 and over 80,000 aggregate net adds. Despite challenges,
strategic initiatives and pricing actions supported stable to growing Average Revenue
Per User (ARPU) across the group in Q4. Liberty Global made significant progress on
fixed network strategies, with almost 32 million homes capable of delivering gigabit
speeds, and plans to expand reach to 38 million homes by 2026. The CEO anticipates
providing a strategic update on how the company plans to deliver value over time
during the upcoming results call.

16th feb
Liberty Global has announced its intention to spin-off 100% of Sunrise to Liberty
Global shareholders, aiming to maximize shareholder value by crystallizing the value
of Sunrise. The spin-off will allow shareholders to fully participate in the future
growth and upside of both Sunrise and Liberty Global. It is expected to broaden and
deepen the investor base, given the distinct and compelling investment profiles of
both companies. The spin-off will leverage the full potential of Sunrise as a locally
listed Fixed-Mobile Convergence (FMC) challenger, building on the successful
integration of Sunrise and UPC since their combination in 2020. The operational
business, including customers, employees, suppliers, or other stakeholders, will not
be affected by the spin-off. Liberty Global CEO, Mike Fries, emphasized the alignment
of the spin-off with the strategy of unlocking value and reaffirmed Liberty's
commitment to listing Sunrise with a strong capital structure. Sunrise CEO, André
Krause, expressed excitement at the prospect of being listed in Switzerland again and
providing investors with access to their scaled FMC challenger position in the market.
More details will be presented at a Capital Markets Day later this year.

Strategy Latest - Liberty global has shown a strategic commitment to its shareholders as it is
reflected by the aggressive buyback program.

Summary of Liberty Global position as per Q4 results

Every market was focused on commercial and marketing initiatives that reinvigorated growth in
the fourth quarter as we added 80,000 postpaid mobile subs and saw improved broadband
performance in Switzerland, Belgium and Holland. In every market, we continue to focus on the
right balance between value and volume with price adjustments supporting stable to growing
revenues. Financially, we saw a strong Q4 with accelerated EBITDA at BMO 2 and Sunrise, which
reported nearly 8% and 6% growth, respectively. Importantly, this enabled us to deliver on all of
our OpCo guidance metrics for the full year and to actually exceed our original distributable cash
flow guidance when you exclude the unexpected tax payment in Q4. And then lastly, we remain
ahead of plan on synergy execution with both the U.K. and Switzerland, around two third of the
way through their respective targets. More on all of this as we move through the slides, I promise.
The last big takeaway is that our balance sheet liquidity profile and capital allocation model are
strong and intact. Charlie will dive into most of these topics later, but certainly a highlight is our
repurchase of 18.5% of our shares through the end of 2024, funded by our distributable cash
flow. And we'll spend plenty of time on our balance sheet and cash position today, but the
punchline is we are extremely well positioned with long-dated fixed rate debt and over $4 billion
in cash and liquid securities.

In 2023, the company reported stable to growing revenues across its core markets. Different
subsidiaries like VMO 2, Vodafone Ziggo, Telenet, and Sunrise showed varying revenue and
EBITDA growth, with some facing challenges like fixed pressures and weak handset sales.
Despite challenges, key subsidiaries like Virgin Media and Sunrise met their full-year guidance for
adjusted EBITDA growth. The company ended 2023 with distributable cash flow slightly ahead of
the initial guidance, excluding an unexpected U.S. tax payment.
Looking ahead to 2024, the company is transitioning from providing distributable cash flow
guidance to offering free cash flow guidance by operating companies. Each operating company,
such as BMO 2, Sunrise, Vodafone Ziggo, and Telenet, has its own expectations for revenue,
adjusted EBITDA, property and equipment additions, and adjusted free cash flow.
In 2024, BMO 2 is focusing on investments to support future growth, including completing its
fiber upgrade program and nationwide 5G rollout. The company anticipates a reduction in capital
intensity in the coming years as these programs are completed, leading to strong free cash flow
conversion in the longer term.
2024 is seen as a transition year with increased investments in IT efficiency, customer experience,
marketing initiatives, and operating expenses to support new product launches. The goal is to
establish a solid platform for future growth.

(Q4-2023)
Market Capitalization: Liberty Global has a market capitalization of $7 billion. Market
capitalization is the total value of a company's outstanding shares of stock in the open market. It's
calculated by multiplying the current stock price by the total number of outstanding shares. In
this case, it provides a measure of the company's overall value according to the stock market.
Price/Book Ratio (P/B ratio): The Price/Book ratio is calculated by dividing the market price per
share by the book value per share. In this context, the P/B ratio is 0.37. A P/B ratio below 1
suggests that the market values the company at less than the accounting value of its assets. It
could indicate that the stock is undervalued, especially when compared to the company's book
value.
Low Multiple: The statement mentions that Liberty Global is trading at a low multiple. This is likely
referring to the low Price/Book ratio. A low multiple can indicate that the market is undervaluing
the company's assets relative to its share price.
Impressive Gross Profit Margin: Liberty Global has an impressive gross profit margin of 68.17%.
Gross profit margin is the percentage of revenue that exceeds the cost of goods sold. A high
gross profit margin indicates that the company is able to retain a significant portion of revenue
after covering its direct production costs.
Putting it all together, the mixed picture likely refers to the fact that while Liberty Global is trading
at a low multiple, suggesting potential undervaluation, its impressive gross profit margin could be
seen as a positive indicator. Investors might want to delve deeper into the company's financials
and market conditions to understand the reasons behind the apparent undervaluation and assess
the overall health and prospects of the company.

Strategy going forward

Main Message: Liberty Global's strategy going forward is to focus on maximizing the value of its
core assets and delivering that value to shareholders. The company aims to achieve this through
various means, including reducing equities, distributing value through dividends and spin-offs,
and driving a higher share price.
Recent Developments and Initiatives:
1. Sunrise Listing and Spin-off: Liberty Global is listing its Swiss subsidiary, Sunrise, and
plans to spin off 100% of the shares to shareholders in the second half of the year. The
company intends to invest up to $1.7 billion to delever Sunrise before the spin-off.
2. Liberty Global Benelux: A new holding company, Liberty Global Benelux, is created to own
and manage the interests in both Telenet and Vodafone Ziggo. This move aims to create
one of the largest FMC (Fixed-Mobile Convergence) platforms in Europe.
3. UK NetCo: Liberty Global plans to create a U.K. NetCo, consolidating all of its Virgin
Media O2 fixed network assets in the U.K. This move underlines the commitment to fiber
and provides potential financing and monetization options.
 4. All3Media Sale: Liberty Global is selling its 50-50 content production venture, All3Media,
to RedBird and IMI for GBP 1.15 billion, or about 12x EBITDA. The proceeds,
approximately $400 million, will support a portion of the investment in Sunrise.
5. Share Buyback: Liberty Global intends to buy up to 10% of its shares in calendar 2024,
reflecting the company's commitment to shareholder remuneration.
Valuation and Shareholder Value: Liberty Global acknowledges a significant discount in its stock
price. A sum-of-the-parts analysis suggests that the proportionate interest in its core FMC
operations could be worth around $30 per share. The company plans to bridge this gap by taking
strategic steps, including the spin-off of Sunrise.
Financial and Strategic Advantages: Liberty Global highlights six key advantages: a strong track
record of capital allocation, a balance sheet built for value creation, optimization of tax positions,
corporate flexibility, commitment to shareholder remuneration, and ownership of some of the
best operating businesses in Europe.
Overall, the strategy update emphasizes the company's commitment to delivering value to
shareholders through various initiatives, financial maneuvers, and optimizing its operating
businesses.

Capital allocation Summary

**Charlie Bracken's Overview of Capital Allocation:**

**Historic Capital Allocation (2017-2023):**

- Generated $14 billion in net after-tax proceeds from asset sales, starting with the sale of
Germany and Central Eastern Europe to Vodafone.
- Distributed over $9 billion of distributable cash flow to the parent company from FMC (Fixed-
Mobile Convergence) champions.
- Utilized capital: $14 billion for share buybacks, $4 billion in M&A transactions (including Sunrise
acquisition), $2 billion in ventures portfolio, and retained around $4 billion in cash.

**Current Financial Position:**

- Cash balance of $3.7 billion.
- $900 million in listed equity securities.
- $2.3 billion in venture assets (with plans to make disposals to support a target of $500 million to
$1 billion in noncore asset disposals by the end of the year).
- Potential liquidity to allocate of just under $7 billion.

**Future Capital Allocation Strategies:**

1. **Sunrise Spin-off:** Commitment to investing up to $1.7 billion to facilitate the spin-off of
Sunrise.
2. **Share Buyback:** Targeting to purchase another 10% of shares outstanding during calendar
2024.
3. **Strategic Deleveraging:** Will consider investing capital to execute strategic deleveraging
into other transactions with FMC OpCos.
4. **Opportunistic M&A:** Remains opportunistic on M&A opportunities in core markets.
5. **Ventures Portfolio:** Selective investments in ventures such as nexfibre, AtlasEdge, and other
growth opportunities in key thematic areas of tech, content, and infra.
6. **Tech and Services Platform:** Considering opportunities to grow the tech and services
platform through partnerships and/or infill acquisitions.
7. **Balance Sheet Management:** Proactive approach to pushing out the average life of debt.

**Balance Sheet and Liquidity:**

- Cash and liquidity remain at the parent company, which has virtually no debt.
- Debt stacks are siloed at the key FMC assets, ensuring no risk of financial distress in one
impacting others.
- Commitment to maintaining target leverage of 4x to 5x through the cycle within each FMC debt
stack.
- Proactive refinancing of debt to ensure a long average maturity, fully fixing interest rates, and
swapping nonfunctional currency debt back into the functional currency.
- Debt silos have an average life of six years at fixed interest rates, with significant undrawn
revolving credit facilities providing additional liquidity until 2029.

**Ventures Portfolio:**
- Four pillars: Tech, Content, Infrastructure, and Financial.
- Fair market value at year-end: $3.3 billion.
- Tech portfolio worth $700 million against net invested capital of around $100 million.
- Content portfolio worth $1.5 billion compared to net invested capital since inception of $1.4
billion.
- Infrastructure vertical shows a significant uplift in fair market value of around $600 million.
- Financial pillar includes opportunistic positions in public debt or equity to provide yield and
strategic optionality.

**Conclusion:**
- Liberty Global feels positive about the balance sheet and retains significant cash and liquid
investments.
- Proactive approach in pushing out the average life of debt.
- Excitement about the opportunities in the Ventures portfolio, with a focus on tech, content,
infrastructure, and financial investments.