Liberty Global Annual Report 2013 Connect Discover Be Free Annual Report 2013 www.libertyglobal.com/ar-2013 Shareholder Information Board of Directors Executive Officers Liberty Global’s Class A, B and C Ordinary Shares trade on the NASDAQ Global Select Market under the symbols LBTYA, LBTYB, and LBTYK, respectively. John C. Malone Michael T. Fries Chairman of the Board President and Chief Executive Officer Liberty Global plc Investor Relations Contacts Michael T. Fries Charles H.R. Bracken 38 Hans Crescent [email protected] President and Chief Executive Officer Executive Vice President and Co-Chief Financial Officer SW1X 0LZ London Christopher Noyes (Principal Financial Officer) United Kingdom +1 303 220 6693 Andrew J. Cole Phone: +44 20 7190 6300 Oskar Nooij Chief Executive Director, European Division Bernard G. Dvorak +1 303 220 4218 of Asurion Corp. Executive Vice President and Co-Chief Financial Officer Transfer Agent (Principal Accounting Officer) Computershare Corporate Communications Contacts John P. Cole, Jr. P.O. Box 43023 [email protected] Founder and Retired Partner of Cole, Bryan H. Hall Providence, Rhode Island 02940 Bert Holtkamp Raywid & Braverman Executive Vice President, General Counsel, and Secretary 888 218 4391 +31 20 778 9447 (Outside the U.S.) +1 781 575 3919 Marcus Smith Miranda Curtis Diederik Karsten +44 20 7190 6374 Retired President, Liberty Global Japan Executive Vice President, European Broadband Operations Independent Certified Public Accountants Annual Report on Form 10-K/A John W. Dick Balan Nair KPMG LLP Liberty Global’s Annual Report on Form 10-K/A as Private Investor Executive Vice President and Chief Technology Officer 1225 Seventeenth Street, Suite 800 filed with the Securities and Exchange Commission Denver, Colorado 80202 is available without charge (except for exhibits). Paul A. Gould Amy M. Blair Please contact Investor Relations. Managing Director, Allen & Company, LLC Senior Vice President and Chief Human Resources Officer Richard R. Green Manuel Kohnstamm Retired President and Chief Executive Officer, Senior Vice President and Chief Policy Officer Forward-Looking Statements Rebased revenue and OCF growth is presented (b) principal payments on vendor financing Cable Television Laboratories, Inc. This report contains forward-looking statements to show growth on a comparable basis by obligations and (c) principal payments on Robert M. Leighton within the meaning of the Private Securities neutralizing the effects of acquisitions and capital leases (exclusive of the portions of the David E. Rapley Senior Vice President, Programming Litigation Reform Act of 1995, including our foreign currency exchange rate fluctuations. network lease in Belgium and the duct leases in expectations with respect to our future growth For purposes of calculating rebased revenue Germany that we assumed in connection with Retired Executive Vice President, VECO Corp. – Alaska prospects. See pages I-5 and I-7 of the enclosed and OCF growth, we have adjusted our historical certain acquisitions), with each item excluding Mauricio Ramos Annual Report on Form 10-K/A for a description 2012 revenue and OCF to (i) include the pre- any cash provided or used by our discontinued Larry E. Romrell President, Liberty Global Latin America of other forward-looking statements included acquisition revenue and OCF of certain entities operations. We also present Adjusted Free Retired Executive Vice President, Tele-Communications, Inc. in this report and certain of the risks and acquired during 2012 and 2013 in the respective Cash Flow, which adjusts FCF to eliminate the uncertainties that could cause actual results to 2012 rebased amounts to the same extent incremental FCF deficit associated with the James Ryan differ materially from those expressed or implied that the revenue and OCF of such entities are VTR Wireless mobile initiative and certain J.C. Sparkman Senior Vice President and Chief Strategy Officer by such statements. included in our 2013 results and (ii) reflect the financing and other costs associated with Retired Chairman of the Board of Broadband Services, Inc. translation of our 2012 rebased amounts at the the Virgin Media acquisition. For additional Andrea Salvato Notes on Defined Terms applicable average exchange rates that were information concerning these definitions and Unless otherwise indicated in this report, used to translate our 2013 results. Our OCF calculations, please see our earnings release J. David Wargo Senior Vice President and Chief Development Officer subscriber growth statistics exclude subscribers margin is calculated by dividing OCF by total dated February 13, 2014. President, Wargo & Company, Inc. of acquired entities at the date of acquisition, revenue for the applicable period. We define Rick Westerman but include the impact of changes in subscribers Free Cash Flow or FCF as net cash provided by Basis of Presentation from the date of acquisition. These statistics are operating activities, plus (i) excess tax benefits With the exception of Net earnings (loss) and Senior Vice President, Investor Relations presented on a net basis. related to the exercise of share-based incentive Net earnings (loss) attributable to Liberty and Corporate Communications awards and (ii) cash payments for third-party Global shareholders, all Operating and Financial For our definition of operating cash flow or costs directly associated with successful and information contained herein is that of our OCF and the related reconciliation, see note unsuccessful acquisitions and dispositions, continuing operations. 17 to our consolidated financial statements in less (a) capital expenditures, as reported in the enclosed Annual Report on Form 10-K/A. our consolidated statements of cash flows, Table of Contents Letter to Shareholders 2 2013 Key Figures 6 Our Operations 8 Inside back cover Board of Directors Executive Offi cers LIBERTY GLOBAL 1 Dear Shareholders 2013 was a landmark year for Liberty Global. With the $24 billion acquisition of Virgin Media in the UK, we entered Europe’s most vibrant media and communications market and solidifi ed our position as the world’s largest international cable company. Meanwhile, strong consumer demand for our market-leading product bundles allowed us to deliver our third consecutive year of more than 1 million organic subscriber additions, putting us in the upper echelon of growth companies in our industry. In early 2014, we agreed to buy Ziggo, the largest Dutch cable operator, in a transaction valued at €10 billion ($13.7 billion). This acquisition will create a nationwide cable footprint in the Netherlands, signifi cantly enhancing our competitive position in one of our core markets. Looking ahead, we remain bullish about our prospects to drive continued growth and innovation to the benefi t of all our stakeholders, especially our customers. 2 LIBERTY GLOBAL Market-leading products drive growth In 2013, we delivered another year of industry-leading growth. We recorded 1.3 million 1.3 million organic subscriber additions, ending the year with over 24 million unique customers subscribing to more than 48 million of our video, broadband internet and telephony subscriber additions services across the 14 countries where we operate. On the fi nancial front, we generated $17.3 billion of combined revenue, including Virgin Media for the full year, refl ecting rebased growth of 4%. On the same basis, our combined operating cash fl ow grew 4% to just under $8 billion and our adjusted free cash fl ow increased 16% to $1.8 billion. This is consistent with our stated goal to generate annual free cash fl ow growth in the mid-teens over the next several years. We have ambitious plans to leverage our mobile expertise across a number of additional markets. This performance was driven in large part by continued demand for our superior broadband products and advanced TV platforms. Our core bundles in nearly every market feature broadband speeds ranging from 100 to 150 Mbps, along with maximum speeds of up to 500 Mbps, which even the most advanced DSL services simply cannot match. In 2013, we added 867,000 broadband internet and 718,000 telephony subscriptions. As a result, nearly 60% of our customers now subscribe to at least two products from us. On the television front, we continue rolling out our advanced digital platforms. At the end of the year, we had 13.2 million digital video subscribers representing 63% digital penetration, up from 52% a year earlier. Even more exciting, we now provide services to 2.5 million next-generation video subscribers, including more than 2 million TiVo subscribers in the UK and 500,000 Horizon TV subscribers across the Netherlands, Switzerland, Ireland and Germany. With Horizon TV’s signifi cant growth potential and the launch of this groundbreaking product into additional markets in 2014, we are poised for rapid growth in the years ahead. Signifi cant progress in wireless Through the acquisition of Virgin Media, we have signifi cantly expanded our mobile reach, ending the year with 4.1 million mobile subscribers and nearly $1.2 billion in revenue. We have ambitious plans to leverage our mobile expertise across a number 2.5 million of additional markets in 2014 with the development of our centralized wireless platform. In addition, we are investing in complementary WiFi services to provide customers with next-gener ation the choice and convenience of connecting when they are away from home. TV subscribers We expect to have well over 3 million WiFi homespots active across our European footprint by the end of 2014. Our business thrives on scale In 2013, we signifi cantly expanded our scale in Europe. Through the acquisition of Virgin Media last June, we added 5 million customers subscribing to over 12 million services and became a leading broadband communications company in the UK, which is now our LIBERTY GLOBAL 3 largest market with over $6.4 billion of revenue. Over the last several quarters, we have made substantial progress integrating Virgin Media into the Liberty Global family, which we expect will underpin our cash fl ow growth in 2014 and over the next several years.