2018 ANNUAL REPORT 2018 ANNUAL Think Think Forward CHARTER COMMUNICATIONS, INC. 2018 ANNUAL REPORT Introducing Mobile Made Better Spectrum Mobile is built on America’s largest LTE network, combined with a nationwide network of Spectrum WiFi hotspots, all designed to save customers money. The best network, the best devices and the best value. CHARTER COMMUNICATIONS 1 Our faster, more powerful network is built to keep customers connected now and in the future. Spectrum Internet® Launched Gig Spectrum doubled starting Internet speeds service across and launched Spectrum Internet Gig service footprint so customers have access to the fastest speeds with no throttling or data caps. Spectrum TV® Expanded Spectrum gives customers all the entertainment On Demand they want and countless ways to watch it. We library increased our On Demand library to over 50,000 titles that are now available anytime inside or outside the home with the Spectrum TV® App. 2 2018 ANNUAL REPORT Second largest Spectrum Voice® residential Spectrum offers customers reliable phone landline provider service along with unlimited nationwide calling in the U.S.* within the U.S., Canada, Mexico and more. Spectrum Mobile™ The best network, Spectrum Mobile is a network designed to the best devices save customers money. With Unlimited and By-the-Gig data plans, customers never need to and the best value worry about contracts or overage charges. All built on America’s most-awarded network. *Leichtman Research Group | Quarterly Tracking Report—Q4 2018 Results CHARTER COMMUNICATIONS 3 THOMAS M. RUTLEDGE Chairman and Chief Executive Officer Ultimately, our long-term growth opportunity comes “ from our powerful, easy-to-upgrade network that allows us to offer data-rich wireline and wireless products that consumers want and businesses need. ” 4 2018 ANNUAL REPORT DEAR SHAREHOLDERS: In May of 2016, we closed our large and As of the end of 2018, we had migrated And net income attributable to Charter complex transactions with Time Warner over 70% of our acquired residential shareholders reached over $1.2 billion. Cable and Bright House Networks, putting customers to our Spectrum pricing In addition, we generated $2.8 billion three companies together in order to and packaging. In 2018, we also of cable free cash flow2 in 2018, and create a new company with a larger and completed our all-digital initiative and repurchased approximately $5.0 billion more concentrated footprint, giving us the upgrade to DOCSIS 3.1, allowing us of Charter stock and Charter Holding the scale to innovate and grow faster. to offer Gigabit speeds across our entire partnership units, despite investing After two and a half years of integration, footprint. Our service infrastructure is nearly $500 million through the launch Charter is beginning to benefit from those now national, specialized and consistent, of Spectrum Mobile. As we look to 2019, transactions in all the ways we expected. and our field operations and customer in addition to completing the last pieces 30000 operations50000 insourcing are nearly complete. of our 20000integration, we remain focused When we started the process of pursuing TM 25000 Finally, we launched Spectrum Mobile on a number of key strategic priorities, additional scale in cable in 2013, we 40000 last summer with positive early results. including:15000 20000knew that to fully benefit from any 30000 acquisitions, we would need to create Despite all of that integration activity, Driving higher sales volumes: Late in 15000 10000 a single operating entity with a unified Charter20000 performed well operationally and the third quarter, we executed the full 10000product, marketing, technology and financially in 2018. We added 1.3 million market launch of Spectrum Mobile, 5000 10000 5000service infrastructure. We have spent Internet customers in 2018, for growth with the goal of using that product over two years doing that. And while we of 5.3%. For the full year, we grew our to drive faster overall customer 0 0 0 2016 2017 2018 2016 2017 2018 2016 2017 2018 still have some work to do, virtually all of cable revenue2 by 4.7% to $43.5 billion, relationship growth. We have the customer-facing initiatives related to and total revenue grew to over $43.6 positioned Spectrum Mobile to be our integration are now behind us. billion. Our 2018 cable Adjusted EBITDA2 the triple play driver for connectivity grew by a strong 6.5%, to $16.3 billion. sales, similar to the successful Residential & Cable Cable Small and Medium Revenue1, 2 Adjusted Business Customers (IN MILLIONS) EBITDA1, 2 (IN THOUSANDS) (IN MILLIONS) 2016 26,166 2016 $40,023 2016 $14,464 2017 27,161 2017 $41,581 2017 $15,301 2018 28,103 2018 $43,528 2018 $16,299 3% 5% 7% 1 All results are pro forma for certain acquisitions as if they had occurred at the beginning of the earliest period presented. See Exhibit 99.1 in the Company’s Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2016 filed with the Securities and Exchange Commission on November 3, 2016, which includes reconciliations of the pro forma information to actual information for the first and second quarters of 2016. 2 Cable revenue, cable Adjusted EBITDA and cable free cash flow are defined and reconciled to the most comparable GAAP measures on page F-63 of this document in the “Use of Non-GAAP Financial Measures” section. CHARTER COMMUNICATIONS 5 strategy that we pursued with wireline across a larger base of customers as planned, but also beyond 2019, voice over the last decade. We expect improve and as we begin to benefit as CPE spend per home declines, our effectiveness at selling mobile to from enhanced online self-service consumers increasingly install their continue to improve, especially as we and greater levels of self-installation. own devices, the reliability of our expand our “bring-your-own-device” We anticipate the lower level of plant improves and our network program throughout 2019. Ultimately, activity in 2019 will raise customer becomes increasingly cloud-based we believe that the consumer savings satisfaction, reduce churn and extend and IP-driven—all on higher from our mobile offering will lead to customer lifetimes. expected revenue. better retention and drive incremental Reducing capital intensity: Our Ultimately, our long-term growth cable sales over the longer term. goal at the beginning of this process opportunity comes from our powerful, Reducing service transactions and was to put our combined assets easy-to-upgrade network that allows us churn: With the vast majority of our in a position to operate as a single to offer data-rich wireline and wireless integration behind us, we expect to entity, and to grow faster over the products that consumers want and see a meaningful reduction in network long term. As a result, we needed businesses need. We believe our current activity, customer equipment swaps, to increase our capital spending in customer relationship penetration is service calls and truck rolls. Service the short term. That higher spending low relative to our potential, given the activity should also decline as our is now behind us, and cable capital current and future quality of our wireline better products, pricing and service intensity will fall significantly in 2019, and wireless products. The capability of 6 2018 ANNUAL REPORT our plant will continue to expand with behind us, we are in a position to drive Best Regards, advanced DOCSIS products and the long-term, sustainable customer convergence of our wireline and wireless relationship growth and Adjusted architectures, allowing us to offer high- EBITDA growth. Additionally, our capacity, high-compute, low-latency expected growth, combined with our connectivity products both inside and declining capital intensity, balance out of the home. sheet strategy and tax assets, should Thomas M. Rutledge yield industry-leading free cash flow per Chairman and Chief Executive Officer We believe we have an excellent runway share growth in the coming years. Charter Communications for customer growth and significant opportunities for operational cost I would like to thank our investors for efficiencies from improving products and their continued support and all of our service and by reducing transactions. employees for their dedication. With our biggest integration initiatives Charter Communications, Inc. (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 residential broadband services, including Spectrum TV® programming, Spectrum Internet®, Spectrum Voice®, and Spectrum Mobile™. Under the Spectrum Business® brand, Charter provides scalable, and cost-effective broadband communications solutions to small and medium-sized business organizations, including Internet access, business telephone, and TV services. Through the Spectrum Enterprise brand, Charter is a national provider of scalable, fiber-based technology solutions serving many of America’s largest businesses and communications service providers. Charter’s advertising sales and production services are sold under the Spectrum Reach® brand. Charter’s news and sports networks are operated under the Spectrum Networks brand. More information about Charter can be found at newsroom.charter.com. THE CHARTER FOOTPRINT CHARTER COMMUNICATIONS 7 OPERATING SUMMARY Financial Information For the year ended December 31, (in millions, except ARPU data) 2018 2017 Revenue $ 43,634 $ 41,581 Cable revenue1 $ 43,528