2017 ANNUAL REPORT CHARTER COMMUNICATIONS, INC. 2017 ANNUAL REPORT REDEFINING WHAT A CABLE COMPANY CAN BE THIS IS THE TIME TO THINK FORWARD. The future belongs to those who make it. Which is why Spectrum has built an ever-expanding, state-of-the-art, fiber-powered network. A network that is designed to connect our customers with what matters most to them today and tomorrow. There are millions of devices that connect to our network every day. These devices will continue to shape our customers’ passions for learning, working and communicating. So, no matter what our customers want to do, Spectrum’s advanced network is ready to deliver. We’re determined to provide unlimited bandwidth and faster Internet speeds to our customers, who like us, don’t like limits. Because connecting our customers to what matters to them, matters to us. This is how Spectrum continues to redefine what a cable company can be. CHARTER COMMUNICATIONS 1 SPECTRUM GUIDE Our customers want TV on their terms. That’s why we have developed ground- breaking user interfaces like our Spectrum Guide, and continue to deliver TV with incredible picture and sound. Now, our customers are able to experience a whole new level of control. 2 2017 ANNUAL REPORT Charter (NASDAQ: CHTR) is a leading broadband communications company and the second largest cable operator in the United States. Charter provides a full range of advanced broadband THE SPECTRUM services, including Spectrum TV™ video entertainment programming, Spectrum Internet™ access, and Spectrum Voice™. ADVANTAGE Spectrum Business™ similarly provides scalable, tailored, and cost-effective broadband communications solutions to business organizations, such as business-to-business Internet access, data networking, business telephone, video and music entertainment services, and wireless backhaul. Charter’s advertising sales and production services are sold under the Spectrum Reach™ brand. More information about Charter can be found at spectrum.com. DELIVERING VALUE. EXCEEDING EXPECTATIONS. CHARTER COMMUNICATIONS 3 TV With over 200+ channels available in crystal-clear high definition, our customers can enjoy the very best in entertainment. Plus, with the Spectrum TV App and the over 30,000 On Demand titles, the same great TV service is available on more devices than ever before. INTERNET After increasing our starting Internet speeds to 100 Mbps and launching Spectrum Internet Gig, customers now have more bandwidth than ever before to do the things they enjoy. Spectrum Internet is built on a fiber-powered network that is ready for what customers need today and in the future. VOICE With our reliable Voice service, customers don’t have to worry about dropping calls when they talk with their friends and family. Plus, catching up is even easier with over a dozen features and unlimited local and long distance calling in the U.S., Mexico, Canada and more. WIFI HOTSPOTS The growing number of Spectrum WiFi hotspots spread throughout the country give customers the chance to stay connected outside their homes. When connected to Spectrum WiFi, our customers can experience Spectrum Internet on their devices without worrying about expensive data and mobile charges. 4 2017 ANNUAL REPORT THOMAS M. RUTLEDGE Chairman and Chief Executive Officer Today we offer straightforward, high-value “ products, using a uniform approach across our 50 million passings under one powerful brand we call, Spectrum.” CHARTER COMMUNICATIONS 5 DEAR SHAREHOLDERS, It has been nearly two years since we We also made meaningful progress in for faster customer relationship creation closed our transactions with Time consolidating our customer-facing and long-term financial growth: Warner Cable and Bright House applications and platforms in 2017. We • We will continue to drive penetration Networks in May 2016. Since closing, continued to integrate our three legacy of our Spectrum pricing and packaging we have been focused on integrating networks, backbone, and facilities. Over in our new markets—selling Spectrum- our three legacy entities (Charter the last 18 months, we have hired thou- branded services to new customers. Communications, Time Warner Cable, sands of new employees into good jobs, and Bright House Networks) into a single in the communities we serve, creating • By the end of 2018, our national net- unified company, with a centralized, a more insourced service and delivery work will be fully digitized. well-proven operating approach that workforce, delivering a better customer • We will expand our streaming video will allow us to grow faster over a experience. on demand library to approximately multi-year period. For the full year 2017, we added 1 million fifty thousand HD titles. Our integration is going well and is on new customers, ending the year with • By the end of this year, we expect schedule. And despite all the significant 27.2 million customers. We now have Spectrum guide to be available to changes we have made to our people, relationships with over 50% of the essentially all new video customers, processes and core operations over the households and small businesses in our allowing us to fully expose the depth last 18 months, we have been able to 50 million passings footprint. In 2017, of our large video content library. avoid customer disruption and our core we grew our revenue by approximately 1 business continues to grow quickly. 4% on a pro forma basis, to over $41 bil- 1 50000 Revenue lion, and our $15.3 billion of Adjusted (IN MILLIONS) In June of last year, we finished the roll- EBITDA2 grew by 5.8% on a pro forma out of our new pricing, packaging, and 40000 basis. That revenue and Adjusted EBITDA branding, across our national footprint. growth is being driven by our strong +4% Today we offer straightforward, high- 30000 customer growth and robust transaction $41,581 value products, using a uniform approach $40,023 and operating synergy realization. We $37,394 across our 50 million passings, under 20000 generated over $4 billion in free cash one powerful brand we call, Spectrum. flow2 and repurchased over $13 billion Our new products are succeeding with 10000 of Charter stock and Charter Holdings consumers. Quality sales have increased, partnership units in 2017. with nearly all of our new video custom- 0 ers purchasing2015 our2016 richer expanded2017 basic This year will be another busy year of 2015 2016 2017 video product. And we now offer mini- integration for Charter. We remain All results are pro forma for certain acquisitions as if they had occurred at the beginning of the mum Internet speeds of 100 Mbps in focused on a number of key customer- earliest period presented. 99% of our footprint. facingAdjusted initiatives which will position us EBITDA1 (IN MILLIONS) 16000 +6% 12000 $15,301 $14,464 $13,004 8000 4000 0 2015 2016 2017 2015 2016 2017 Residential & All results are pro forma for certain acquisitions Small and as if they had occurred at the beginning of the earliest period presented. Medium Business Customers1 (IN THOUSANDS) 30000 +4% 27,199 25000 26,205 25,051 20000 15000 10000 5000 2015 2016 2017 All results are pro forma for certain acquisitions 0 as if they had occurred at the beginning of the 2014 2016 2017 earliest period presented. Revenue1 50000 (IN MILLIONS) 40000 +4% 30000 $41,581 $40,023 $37,394 1 20000 Revenue 50000 (IN MILLIONS) 40000 10000 6 2017 ANNUAL REPORT +4% 30000 0 $41,581 2015 2016 2017 2015 2016 2017 $40,023 $37,394 All results are pro forma for certain acquisitions 20000 as if they had occurred at the beginning of the earliest period presented. Adjusted Our integration is going well and is on 1 10000 EBITDA (IN MILLIONS) “schedule. And despite all the significant 0 16000 2015 2016 2017 2015 2016 2017 changes we have made to our people, All results are pro forma for certain acquisitions +6% processes and core operations over the as if they had occurred at the beginning of the 12000 earliest period presented. $15,301 Adjusted $14,464 last 18 months, we have been able to EBITDA1 $13,004 8000(IN MILLIONS) avoid customer disruption and our core 16000 business continues to grow quickly. 4000 +6% ” 12000 $15,301 • By year end, we will be offering gigabit unique power of our high-capacity two- $14,464 0 service virtually everywhere we serve. way network that allows us to offer 2015 2016 2017 $13,004 2015 2016 2017 Residential & superior products and services at 8000 • We will insource more of our field All results are pro forma for certain acquisitions Small and as if they had occurred at the beginning of the attractive prices. earliest period presented. operationsMedium and our customer Business care work 1 forces, andCustomers continue to improve service. I would like to thank our investors for 4000 (IN THOUSANDS) their continued support and all of our • We are also on track to launch our employees for their dedication. new mobile service in the middle of 0 30000 2015 2016 2017 2015 2016 2017 Residential & 2018, under our MVNO agreement+4% Best Regards, 27,199 25000 Small and with Verizon. The goal26,205 is to create and All results are pro forma for certain acquisitions 25,051 as if they had occurred at the beginning of the earliest period presented. Medium Business retain more cable customers. We also 1 20000 Customers (IN THOUSANDS) expect that over time, our existing infrastructure will put us in a unique 15000 position to economically deploy new, 30000 powerful products that benefit from Thomas M. Rutledge 10000 +4% 27,199 small cell wireless connectivity. Chairman and Chief Executive Officer 25000 26,205 25,051 5000 Charter Communications So we have2015 another very2016 busy 2017year of 20000 executionAll ahead. results are proWe forma remain for certain confident acquisitions 0 as if they had occurred at the beginning of the 2014 2016 2017 in our plan,earliest our period growth presented.