Telenet Goldman Sachs - European Leveraged Finance Conference
Renaat Berckmoes, Chief Financial Officer
LdLondon - Sep temb er 6, 2012 Safe Harbor Disclaimer
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995.
Various statements contained in this document constitute “forward-looking statements” as that term is defined under the U.S. Private Securities Litigation Reform Act of 1995. Words like “believe,” “anticipate,” “should,” “intend,” “plan,” “will,” “expects,” “estimates,” “projects,” “positioned,” “strategy,” and similar expressions identify these forward-looking statements related to our financial and operational outlook, dividend policy and future growth ppprospects ,which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from those contemplated, projected, forecasted, estimated or budgeted whether expressed or implied, by these forward- looking statements. These factors include: potential adverse developments with respect to our liquidity or results of operations; potential adverse competitive, economic or regulatory developments; our significant debt payments and other contractual commitments; our ability to fund and execute our business plan; our ability to generate cash sufficient to service our dbdebt; interest rate and currency exchangeratefluctuations; theimpactof new business opportunities requiring significant up-front investments; our ability to attract and retain customers and increase our overall market penetration; our ability to compete against other communications and content distribution businesses; our ability to maintain contracts that are critical to our operations; our ability to respond adequately to technological developments; our ability to develop and maintain back-up for our critical systems; our ability to continue to design networks, install facilities, obtain and maintain any required governmental licenses or approvals and finance construction and development, in a timely manner at reasonable costs and on satisfactory terms and conditions; our ability to have an impact upon, or to respond effectively to, new or modified laws or regulations, pending debt exchange transactions, our ability to make value-accretive investments, and our ability to sustain or increase shareholder distributions in future periods. We assume no obligation to update these forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
Adjusted EBITDA and Free Cash Flow are non-GAAP measures as contemplated by the U.S. Securities and Exchange Commission’s Regulation G. For related definitions and reconciliations, see the Investor Relations section of the Liberty Global, Inc. website (http://www.lgi.com). Liberty Global, Inc. is our controlling shareholder.
2 Agenda
1 Who we are
2 Change to capital structure and shareholder remuneration policy
3 Future growth drivers
3 A cable company with a strong track record...
Powerful . FllFully upgraddded, bi-direc tiona l 600 MHz net work . Continuous stable level of investments 1 network . Active node splitting to create next-gen network
Product . EuroDocsis 3.0 powered broadband products . Full interactive digital HDTV platform with true VOD 2 leadership . Active beyond cable: WiFi and mobile
. Customer Loyalty closely measured: management Service is key reward system based on customer satisfaction levels . Leading service levels through efficiency 3 A strong . CtiContinuous ly low leve ls of churn rel ltiative to peers brand . Strong revenue growth and significant runway ahead Solid financials . Sustained focus on efficiency, disciplined cost control . Vast majorit y of capital expendit ures success-bdbased 4 . Prudent, pro-active balance sheet management
. Strong, diversified management team Our people . Balance between long track record and outside experience 5 . Great company culture, promote from within 4 ...active in one of Europe’s most attractive cable markets...
Cable penetration per household Triple-play penetration (2011) (Q2 2012)
74% 65% 69% 60%
52% 47% 48% 38%
19% 16%
BE UK DE PT NL TNET VMED KDG¹ ZON ZIGGO
(1) Excluding the effect of the TeleColumbus acquisition, as per March, 2012
. Strong historical adoption of cable services . Triple‐play penetration of 38% at June 30, 2012 . Substitution of basic cable TV by digital TV (cable, . Significant potential to convert remaining 33% of IPTV, satellit e, DTT) ‐ still unttdapped pottiltential for silingle‐play customers to lldieading multipl e‐play bbdlundles migration to higher ARPU digital TV platform
Legend: BE=Belgium, UK=United Kingdom, DE=Germany, PT=Portugal, NL=The Netherlands 5 Source: European Commission E-Communications Household Survey, Company data ... in a region with national characteristics
+ 1/3rd of Brussels
Legacy Telenet Network Interkabel Network = acquired Oct 1, 2008
. Flanders is a cohesive footprint . Our franchise area covers ~2.9 million . … a focused, regional government households (61% of Belgium) . … a regional culture and language . ~2.8 million homes passed with cable = ~98% reach . … a regional media environment . ~2.2 million unique customers . … a strong and growing economy = ~75% cable penetration . … superior GDP ppp(er capita (23% above . In B2B, we cover the whole of Belgium EU average) and Luxembourg 6 A strong national competitor versus regional cable systems
. Former telco incumbent is half state- . Fragmented cable industry versus owned nationwide DSL and mobile operators
. >80% VDSL coverage . All cable networks are adjacent . Numéricable active in part of Brussels . Belgacom TV is top 3 IPTV platform (approx. 180,000 homes passed) . Fixed and mobile convergence . VOO active in Wallonia (approx. 117.7 million homes passed) . More than 75% market share in B2B
7 Leading the cable space in terms of (multi-) product penetration
Fixed Digital TV Telephony 52% 32% penetration penetration
Broadband Internet Mobile Telephony 47% penetration Basic Cable TV 75% penetration
Penetration rates relate to total homes passed by the Telenet network 8 But still a challenger
€4.0 bn €3.8 bn €0.9 bn Others 7% KPN/BASE 17% 2% 24%
20%
Mobistar 37%
Telenet 56% 1%
70%
Belgacom 44%
19%
Mobile Fixed data & voice TV
9 Source: BIPT, 2011 – Market size and market shares are based on service revenues Cable caters for unparalleled 1 Powerful network service experience
# Product – April 2012
Bandwidth shared 1 Telenet Fibernet 100 over all services 2 Telenet Fibernet 60 Maximum download speed up to 30 Mbps 3 Telenet Fibernet
4 VOO A La Folie
Dedicated bandwidth per 5 Telenet Comfortnet service 6 VOO Passionément
Maximum download speed 7 EDPnet Newer & Faster up to 120 Mbps 8 Dommel CityConnect
9 Belgacom Favorite
10 Belgacom Intense
. Video and multiple devices will make high broadband speeds relevant
. Added value of cable = simultaneous services into the house
. New devices (tablet PCs) will require ample streaming capacity
Source: www.ispmonitor.be 10 The ISP Monitor Speed Test is an independent source for bandwidth speed comparison. The results shown above are a summary of the test results gathered by the users of the ISP Monitor software. Deeper fiberization to retain speed 1 Powerful network leadership position
TODAY
~1,400 Telenet Service homes/ Offering node
Optical NdNode Fiber loops 2015
~500 homes/ Optical node IP Backbone CMTS Nodes
Fiber 11 Coax HFC (Hybrid Fiber Coax Network) Beyond our network…
Focus on:
Our products Our service Our brand
12 Enhancing customer value 2 Product leadership
(in %) (in %) (in €/month) Customer mix H1 2011 Customer mix H1 2012 ARPU per customer profile 72.9
+61% 53.5 33% 34% 39% 38% 45.4 12.8 27% 29%
Q2'12 1P 2P 3P
Single-play Dual-play Triple-play Single-play Dual-play Triple-play
(in 000) (in €/month) Triple-play subscribers ARPU per unique customer
+9% +10% 819 45.1 752 41.0
H1 2011 H1 2012 H1 2011 H1 2012 13 Constant innovation 2 Product leadership
Internet Fibernet – up to 120 Mbps
Digital TV Sporting, Search & Recommend, GUI
Fixed Telephony FreePhone Mobile
Subsidies, Homespots, competitive and Mobile innovative SIM-only rate plans
Business A-Desk
14 Telenet internet starts where 2 Internet competition ends Advertized download Internet VDSL2 speeds (Mbps) Up to 2525 MbpsMbps Internet ADSL €35.00 Up to 12 Mbps €25.00 Basic Internet Fibernet XL Up to 30 Mbps Up to 120 Mbps Home Internet 12 €24.95 €64.95 Up to 12 Mbps €40.00 0 15 30 60 120 // // // //
Internet Basic Start Fibernet Up to 6 Mbps Up to 30 Mbps Up to 60 Mbps €25.00 €24.95 €44.95 ItInternet RRlelax Up to 16 Mbps €30.00 Home Internet 1 Up to 1 Mbps Comfort €25.00 Up to 30 Mbps €34.05 Internet Max Up to 16 Mbps Home Internet 4 €40.00 Maxi Up to 4 Mbps Up to 30 Mbps €30.00 €44.94
(*) Prices mentioned refer to stand-alone residential broadband internet products, in € (including 21% VAT) – temporary promotions have not been 15 reflected – prices mentioned on company websites as per July 26, 2012 Increased digitalization 2 Digital TV
(in %) (in %) (in €/month) Digitalization rate Digitalization rate ARPU per customer H1 2010 H1 2012 profile
32% x2 46%
54% 68%
Analog12.1 TV Digital TV Analog TV Digital TV Analog TV Digital TV Basic access VAS 12.1
(in 000) . Accelerated digitalization fueled by Digital TV subscribers successful digital TV migration campaign;
+17% . 116,700 net new subscribers to our 1,473 higher ARPU interactive digital TV 1,262 platform in H1 2012, of which 71,300 in QQ;2 2012; H1 2011 H1 2012 . 68% of cable TV customers on digital. 16 Sporting Telenet 2 Digital TV
Addition of top Belgian football resulted in 48% increase in subscribers
Belgian football ~183,700 . 3 top fixtures per week, exclusive and live in subscribers HD . 5 remaining fixtures on a non-exclusive €16.15 basis +48% if 3-play yoy The best Top European football sports now €21.55 exclusively . 550 fixtures per season, live if 2-play on . Premier League, German, Italian, Dutch and Sporting French national leagues Telenet €26.95 if 1-play . NBA Basketball . NFL American Football . Golf Also available on 17 All prices are retail prices per month and including 21% VAT Fixed teleppyhony remains a reliable 2 Fixed telephony cheap voice solution
(in 000) Fidixed telhlephony market share(*) Fixed telephony subscribers Telenet Competition 920 880 815 741 61% 629 71% 67% 64% 548 455 364 39% 29% 33% 36% 2005 2006 2007 2008 2009 2010 2011 H1 2012 2008 2009 2010 2011
(*) Adjusted for Telenet footprint only. Source: company data, adjusted based on own estimations. . Continued penetration(**) amongst our customer base, reaching 32.2% at the end of Q2 2012; . Net new subscriber growth driven by attractive flat-fee rate plans and multiple-play growth; . Introduction of FreePhone Mobile in November 2011 is expected to drive incremental RGU growth; . Sustained market share gains despite mature and intensely competitive market; . Reliability and cheap flat-fee plans remain key advantages over mobile.
18 (**) Penetration as a % of homes passed across the Combined Network. Combined Network includes both Telenet Network and Telenet Partner Network. FreePhone tariff plans 2 Fixed telephony
Relevance of fixed line fuelled by free FreePhone Mobile option
FreePhone MOU to mobile Europe
Free option: + x4 €20 FreePhone Mobile
per month Q1 2011 Q1 2012
. Introduction of free option FreePhone Mobile . FreePhone Europe allows customers to make the following calls (per month): . Unli m ite d o ffpeak call s to fixed lines in Be llgi ium . 1,000 offpeak minutes to mobile numbers in Belgium . 2,000 offpeak minutes to fixed lines in Europe + Turkey + Morocco . €10 option to place 24/7 calls to fixed lines in Belgium and Europe
19 The convergent future: 2 Mobile WiFi + mobile
Telenet Hotspots / WiFi homezone + Telenet Mobile
. Telenet Hotspots: >1,200 locations (airports, train stations, hotels, highway parkings)
. International coverage: >140,000 locations in 95 countries through iPass
. Telenet WiFi homezone via home gateway
20 Launch of competitive SIM-only 2 Mobile rate plans
Pay as you go King Kong
€0.15 /min 150 minutes 2,000 minutes
€0.10 /SMS 10,000 SMS 10,000 SMS
€0.10 /MB 500 MB 1 GB
Stand-alone €0 €20 €70
For Telenet customers €0 €15 €50
. Simple, transparent . No fixed contract duration . 85% of mobile consumers will be able to save money 21 Telenet for Business 2 Business
Integration of VAS + connectivity and SmallBiz + enterprise segments create foundation for unique service portfolio
Value Added Services Security Solutions Security Consulting Managed Services Integrated c-cure product hostbasket Unified Hosting Housing Applications Collaboration Cloud portfolio
Connectivity Carrier Offer
Data Internet Voice Multi-TV
Service Levels: Securitisation & Back-up Options
Transport Fiber Coax Copper Mobile Wireless
Client segment targets
22 Delivering a superior service 3 Service is key experience to our customers
A unique service experience 360° Experience for our customers
Speed leadership through Fibernet Internet Television Richest experience & OTT market convergence Platform
Bundles
Maximize ARPU per unique customer
23 Enhance customer loyalty 3 Service is key
(in %) . Continued low churn levels for all Annualized churn services compared to peers and other 10.3% cable operators;
7.1% . Reflects Telenet’s continued
7.1% investments in customer care and focus on customer experience; Q1'10 Q3'10 Q1'11 Q3'11 Q1'12
Basic cable TV Broadband internet . Management incentive schemes to Fixed telephony enhance customer loyalty.
New Telecom Act Telenet
Maximum fixed No fidfixed cont ract contract term limited term for all major to six months as of services as of October 1, 2012 October 1, 2012
24 And reward accordingly 3 Service is key
TOP-150
Customer Loyalty 15%
Managerial skills 43%
Operational and financial performance 44%
2007-2009 As of 2010
Customer Customer loyalty satisfaction 25 Strong stable cash flows and 4 Solid financials significant operating leverage % of revenue
(in €m) (in €m) Revenue Adjusted EBITDA
723 1,299(*) 1,376 1,197 669 +9% +7% 608 CAGR CAGR
2009 2010 2011 2009 2010 2011 50.7% 51.5% 52.6%
(in €m) (in €m) Accrued capital expenditures Free cash flow
160 254 242 31 +22% 162 (**) +9% CAGR 318 310 259(**) yoy
2009 2010 2011 2009200010 2011 26.5%(**)22.0%(**) 22.5% (**) 13.5% 19.6% 17.6%
(*) Including approximately €8.0 million of revenue on certain premium voice and SMS content sevices, which were no longer recognized as of 26 January 01, 2011 following a change in Belgian legislation. (**) Excluding DTT license in 2010, 4th 3G mobile spectrum license and Belgian football rights in 2011. Exppgerienced management team 5 Our people with long tenor across the industry
Name JiJoined TTlelenet PiiPosition Duco Sickinghe 2001 Chief Executive Officer and Managing Director Jan Vorstermans 2003 Chief Operating Officer Patrick Vincent 2004 Chief Commercial Officer Renaat Berckmoes 2001 Chief Financial Officer Luc Machtelinckx 1999 Executive Vice President and General Counsel Claudia Poels 2008 Senior Vice President Human Resources Inge Smidts 2009 Senior Vice President Residential Marketing Herbert Vanhove 2010 Senior Vice President Product Management Martine Tempels 2009 Senior Vice President Telenet for Business Ann Caluwaerts 2011 Senior Vice President Public Affairs & Media Management Senior Vice President Strategy, Investor Relations and Corporate Vincent Bruyneel 2004 Communications
Promoting an environment that supports a dynamic and innovative culture
27 Regulation: Timeline of wholesale of cable services
European Not to scale Commission (DD/MM/YY) notification RO and retail‐minus
max 3 6 months 9 months (**) 6 months weeks
Preparation & submission draft Approval of Contract Implementation reference offer reference offer negotiations
1/08/2011 1/09/201131/1/2012 4/9/2012 1/11/2012 1/5/2013 21/4/2013 6/2013
Annual review by VRM Launch date Court of Appeal : introduction of suspension and Possible Possible annulment suspension(*) annulment at the earliest
(*) In case suspension would not be granted to Telenet, Telenet could incur additional accrued expenditures related to preparatory IT investments for wholesale. (**) Due to the delayed decision on the suspension, which was initially expected by April 26, 2012, the envisioned 4 month period for approval of the reference offer will be extended which subsequently affects the start of the 6 months implementation timing. 28 Agenda
1 Who we are
2 Change to capital structure and shareholder remuneration policy
3 Future growth drivers
29 Policy changes to enhance returns to shareholders
. Target range of 3. 5-4.5x Net Total Debt to EBITDA(()*) Net leverage to maintained 1 higher end of . Objective to move to around 4.5x from c.3.5x target range . Higher net leverage supported by: . Strong cash flow generation . Stable business profile . Solid future growth . No significant acquisitions in the foreseeable future
Future shareholder . Underpins future growth potential remuneration . Tax neutral for shareholders if in form of program (if in 2 mainly via share form of self-tender, for Belgian retail shareholders and repurchases other investors that cannot benefit from exemption or reduction, rate of the Belgian withholding tax is 21%) . Enhances flexibility for shareholder distributions and increases FCF per share potential . Increase of owne rship percentage for remaining shareholders as repurchased shares will be cancelled 30 (*) Net leverage ratio is calculated as per the Senior Credit Facility definition, using net total debt, excluding subordinated shareholder loans, capitalized elements of indebtedness under the clientele and annuity fees and any other finance leases, divided by last two quarters’ annualized EBITDA. Immediate actions
. OtitiOpportunistic time to raise additional ddbtebt financi ng Incurrence of . Further improvement of long-term capital structure 1 additional debt . Proceeds of any additional debt are intended to be used to fund a share buy-back . Telenet is targeting a Net Total Debt to EBITDA ratio of around 4.5x (*) (*) Net leverage ratio is calculated as per Senior Credit Facility definition, using net total debt, excluding subordinated shareholder loans, capitalizcapitalizeded elements of indebtedness under the clientele and annuity fees and any other finance leases, divided by last two quarters’ annualized EBITDA
. Voluntary conditional tender offer Share buy-back of €656.4 million via . 20,673,043 shares or up to 18.2% of the share capital 2 (**) self-tender offer . Offer price of €35.0 per share (***) . Majority shareholder LGI will not tender its shares . Current €50.0 million Share Repurchase Program 2012, of which 91% has been executed, has been terminated
(＊＊) Total number of shares issued by the Company including own shares currently held by the Company. These treasury shares represent 0.76% of the total number of shares. (＊＊＊) To be adjusted downwards by the gross amount of any distributions prior to the closing of the tender offer (including the €3.25 per share to be 31 paid on August 31, 2012 pursuant to the capital decrease approved by the extraordinary shareholders’ meeting on April 25, 2012). Details about share repurchase plan via self-tender offer
. Share buy-back enhances flexibility for shareholder Purpose distributions and increases FCF per share potential . However, shareholders with focus on cash only returns can opt for voluntary tender offer
. Self-tender in accordance with the Belgian tender offer rules for a Form maximum of 20,673,043 shares, or 18.2% of the share capital of TGH NV (*), at a price of €35.0 per share (to be adjusted downwards by the gross amount of any distributions prior to the closing of the tender offer, including the €3.25 per share capital return to be paid on August 31, 2012) . LGI, Telenet’s majority shareholder, would not tender any shares in the tender offer, but reserves its position concerning tendering in possible future repurchase programs. (**) . Each shareholder would be able to tender approximately 37% of the shares it owns and tender additional shares by way of a pro ration mechanism (to the extent the tender offer is under-subscribed)
(＊) Total number of shares issued by the Company including own shares currently held by the Company. These treasury shares represent 0.76% of the total number of shares. 32 (＊＊) If the maximum number of shares is tendered and subsequently cancelled, LGI’s shareholding in Telenet would increase from 50.04% to 61.18% of the share capital of Telenet and to 61.75% if treasury shares are not counted. Leverage to higher end of range while maitiiintaining strong ddleleverage capacit y
(1) Pro Forma NetLeverage Total ratio Debt/EBITDA (*) Pro Forma deleverage capacity (**)
6.25x CONCEPTUAL 6.0x 6 6 5 5 4 Leverage threshold 3.5-4.5x 4 3 3 2 2 -1.0x -1.5x 1 1 0 0 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Q3 12 2012 2013 2014 2015 Pro-forma
Senior Credit Facility EBITDA Covenant Net Debt / L2QA EBITDA
. Leverage ratio to increase to around 4.4x (pro-forma Q3’12) from 3.1x (Q2’12) . Reflects planned €3.25 per share capital reduction (€369.2 million in aggregate) and proposed €656.4 million share buy-back . Telenet maintains strong autonomous deleverage capacity . Assuming all Free Cash Flow would be used for debt repayments, leverage would decrease by ~1.0x by 2014 and by ~1.5x by 2015
(*) Calculated as per Senior Credit Facility definition, using net total debt, excluding subordinated shareholder loans, capitalized elements of indebtedness under the clientele and annuity fees and any other finance leases, divided by last two quarters’ annualized EBITDA. (**) Conceptual, assuming that all FCF will be used to repay existing debt instruments. FCF based on Bloomberg consensus estimates as of Aug 7, 2012 that do not reflect management projections and are included for informational purposes. The Company takes no responsibility for the accuracy of 33 such data. Balanced debt profile remains unchanged
(in €m) (in €m) Debt profile (committed) Pro-forma debt profile (estimated amounts and maturities post transaction)
400 400 799 799
500 500 450 158 431 158431 300 300 250 100 175 100 175 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
TL M TL N TL O TL P TL Q TL R TL T Revolver TL M TL N TL O TL P TL Q TL R TL T Revolver New issuance
. Average maturity of ~7 years . New issuance of €700 million . No debt repayments before 2016 equivalent, of which €450 million 10Yr Senior Secured Notes at 6.25% and €250 million 12Yr Senior Secured Notes at 6.75% . Further extends average maturity
34 Enhanced shareholder return for 2012
Initial shareholder Amended shareholder return 2012 return 2012
€1.00 per share €1.00 per share Regular dividend (paid May 10) (paid May 10)
€3.25 per share €3.25 per share Capital reduction (to be paid Aug 31) (paid on Aug 31)
Share buy back €50.0m in total €702.1m in total (*)
(*) Of which €45.7m under the Share Repurchase Program 2012 as announced on Feb 16, 2012 and terminated on August 11, 2012.
35 Agenda
1 Who we are
2 Change to capital structure and shareholder remuneration policy
3 Future growth drivers
36 FY 2012 outlook reconfirmed
FY 2012 will be at least at top end of outlook
5% – 6% . Top line and Adjusted EBITDA growth will Revenue growth be higher in H1 relative to H2 2012; (~€1,445m – €1,,)459m) . We will no longer benefit from favorable impact from price increases and launch of Sporting Telenet both happened in Q3 2011; Adjusted EBITDA 5% – 6% . Strong continued underlying growth in H2 growth fueled by digital TV, broadband and (~€760m – €767m) mobile.
. ~76% success-based; Accrued 22% – 23% . Higher spending on set-top boxes and (1) Capital Expenditures (~€318m – €335m) customer installations, in line with expected RGU growth, and Pulsar.
. Solid and sustainable Free Cash Flow Free Cash Flow (2) Stable generation despite higher cash payments for Belgian football rights and higher cash interest expenses,.
(1) Represents accrued capital expenditures. Accrued capital expenditures are defined as additions to property, equipment and intangible assets, including additions from capital leases and other financing arrangements, as reported in the Company’s statement of financial position on an accrued basis. (2) Free Cash Flow is defined as net cash provided by the operating activities of Telenet’s continuing operations less (i) purchases of property and equipment and purchases of intangibles of its continuing operations, (ii) principal payments on vendor financing obligations, and (iii) principal payments on capital leases (exclusive of network-related leases), each as reported in the Company’s consolidated statement of cash flows. Free Cash Flow is an 37 additional measure used by management to demonstrate the Company’s ability to service debt and fund new investment opportunities and should not replace the measures in accordance with EU GAAP as an indicator of the Company’s performance, but rather should be used in conjunction with the most directly comparable EU GAAP measure. Future growth drivers
1 Broadband penetration 2 TV subscribers Flanders
95% Inter- +19% Digital 32% net TV 80% 68%
2011 2015 (Est) Digital Analog
3 Mobile SIMs per 4 Business growth cable customer opportunities
13% Legacy business Small MbilMobile B2B Bizz 87% Security Hosting
Video MLE Cloud services Telenet Mobile Other mobile provider
38 Strong fundamentals to deliver long-term shhldhareholder value
1 2 . Convert 62% of 1P and 2P . Continued investments in customers to triple play fixed network (Pulsar node . Repositioning in mobile and splitting project) quadplay enhancing ARPU Invest and . Maintain leadership position Future . Broadband market growth maintain on broadband speed and growth from c.80% now to c.95% by leadership interactive digital TV platform position 2015 . Strong focus on customer . Convert 32% remaining excellence and loyalty analog TV base to digital
3 4 . Balanced revenue mix . Significant availability of underlines defensive cash at 4.5x leverage characteristics . Enhanced flexibility for Strong long-term shareholder Sound . Solid EBITDA margins and Free Cash Flow generation share- distributions financ ia l holder . Stable leverage target of profile . No debt maturities before potential 2016, average maturity ~4.5x projects attractive around 7 years and recurring shareholder distributions . Interest risks fully hedged
39 And long-term strategy
LdLeadershi p . Leading cable network Network . Fiber closer to the homes
Differentiate . Aggregate services Service Layer . All-IP
EllExcellence . Competitive, simple and rational Customer . Top leadership commitment for
40 Thank you.
Telenet Vincent Bruyneel Rob Goyens Liersesteenweg 4 Senior Vice President Strategy, Investor Director Investor Relations 2800 Mechelen, Belgium Relations and Corporate Communications and Strategic Planning investors.telenet.be + 32 (0)15 33 56 96 + 32 (0)15 33 30 54 [email protected] [email protected]