2010 q4 presentation en

8/3/2019 2010 Q4 Presentation En

1/60

I nvesto r & Ana lys t Confe rence Ca ll

February 25, 2011

Dr iv ing the fu t ure .


2/60


3/60

A enda

Key Highlights Duco Sickinghe, CEO

Operating Results Duco Sickinghe, CEO

Regulatory Update Duco Sickinghe, CEO

Financial Review Renaat Berckmoes, CFO

3

,


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K ey ac c o m pl ishm ent s 2010

e ver ng on our rev se u ear ou oo

Revenue rowth

(October2010)ccomp s men

8.5%

1,299.0million)

AdjustedEBITDAmargin

Close

to

51%

.

(668.7million)

CapitalExpenditures(*)Around22%

ofrevenue

22%ofrevenue(285.6million)

Inexcess of225millionFreeCashFlow 257.8million

4(*)Accruedcapitalexpenditures,includingrentalsettopboxesandnoncashcapitalleaseadditions,butexcludes30.7millionofaccruedcapitalexpenditures

relatedtotheacquisitionoftheDTTlicense


5/60

Key acc ompl i shment s 2010

ew pro uc nnova ons ay e oun a on or u ure grow

LTE trial on E19motorway

209m prepaymentof outstanding debt

Executive Team

ew anlaunch web PVR

Launch of

Capital reductionof 2.23 per share

Acquisition of

Q12010 Q2

2010 Q3

2010 Q4

2010

500m debt issuanceAgreement withNorkring Belgi on

use of DTT

Voluntary debtextension

Introduction of

Major B2B contractwin AxaAnnouncement

Revised FY2010outlook

100m debt issuanceg a ave

5


6/60

K ey highl ight s FY 2010

u p e-p ay s ra egy y e e ro us su scr er an grow

Continuedstrongsubscribergrowthacrossresidentialsegmentsthankstoour

differentiatingpremiumproductandservicepositioning;

Solidtop

line

growth

for

our

business

services

division

driven

by

good

traction

for

Operational

GrowthourdataandfiberproductsandbyCCUREacquisition;

ARPUperuniquesubscriberup11%yoyto38.8in2010from35.0in2009;

NetlossofbasiccableTVsubscribersconfirmeditsstabilizingtrend(Q4: 13,800).

58%ofcustomerbaseonmultipleplayand32%ontripleplay;

Advancing

Customers

55%ofcableTVsubsaredigital 21%ofourremaininganalogcableTVcustomer

baseswitchedtodigitalin2010;

Commerciallaunch

of

EuroDocsis

3.0

powered

Fibernet

products

with

unmatched

Increasingpreferenceforhighervaluemobilerateplansinducedbyuniquely

subsidizedsmartphones.

6


7/60

K ey highl ight s FY 2010

us a ne pro a y w e nves ng n grow

Financial

Revenueup8%yoy onthebackofsolidfixed,mobileandB2Bperformance;

AdjustedEBITDA

up

10%

yoy

Adjusted

EBITDA

margin

up

to

51.5%

in

2010

from

.

FreeCashFlowleapedby54%to257.8million;

Netprofitof89.3million,including39.0millionlossonderivativesand7.9

n ss n eex ngu s en e .

Significantimprovementinourdebtmaturityprofilefollowingseveraldebt

Corporate

Update

Averagelifetimeofdebtaround6.8yrsnowascomparedto5.4yrsatend2009;

Net

Total

Debt/EBITDA

ratio

(*)

downto

2.8x

as

of

December

31,

2010

compared

to

. xa een o ecem er , esp e e . pers ares are o er

disbursement.

7(*)CalculatedasperSeniorCreditFacilitydefinition,usingnettotaldebt,excludingsubordinatedshareholderloans,capitalized elementsofindebtednessundertheclienteleandannuityfeesandanyotherfinanceleases,dividedbylasttwoquartersannualizedEBITDA.


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Operat i ona l h ighl ight s FY 2010

on nue momen um n our res en a per ormance

Fixed tele hon subscribers in 000

624729

883985

1,1161,227

455548

629

741815

29,800net additions

in Q4 2010

29,800net additions

in Q4 2010

364YoY YoY

Mobiletelephonysubscribers(in000)

2005 2006 2007 2008 2009 2010

TelenetDigitalTVsubscribers(in000)

129

198

674

938

1,183

+54%

,net additions

in Q4 2010

Equivalent to84,500 boxes

,net additions

in Q4 2010

Equivalent to84,500 boxes

13

56

75226

391 +26%

YoYYoY

8


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So li d im p r ovem e nt of m u l t i p le -p lay e c on om i c s

ronges annua cus omer ncrease ever s nce

*

539

651719

r p ep aysu scr ers n000

31% 35% 41% 45% 52%

Singleplay Multipleplay

176236

323 YoY

69% 65% 59% 55% 48% 42%

2005 2006 2007 2008 2009 20102005 2006 2007 2008 2009 2010

1.67

1.79

1.90

32.5 35.0

38.8

un quecus omer mont

1.421.50

1.60

24.826.7

29.4+6%

YoY

+11%

YoY

2005 2006 2007 2008 2009 20109

2005 2006 2007 2008 2009 2010

(*)Multipleplayreferstocustomerssubscribingtotwoormoreproducts,thereforenotspecificallyinabundle.


10/60

Financ ia l h igh l igh ts FY 2010

ree as ow up on . grow an ower cas capex

Revenue(m) AdjustedEBITDA(m)

1,299.01,197.4

607.7668.7

+8% +10%

FY09 FY10 FY09 FY10

Accruedcapitalexpenditures(m) FreeCashFlow(m)

50.7% 51.5%%ofrevenue

30.7

316.3

DTT license

317.6

285.6166.9

257.8

10%+54%

FY 09 FY 10

10

FY09 FY10

26.5%22.0%

(exclDTT)13.9% 19.8%

%ofrevenue %ofrevenue


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A enda





11

,


12/60

Mult ip le-p lay (* )

oo progress, u s very s rong grow oppor un es a ea

Growthopportunities

23%

CustomerbaseDec2008 CustomerbaseDec2010

55%22%

42%

26%

42%

26%

32

Singleplay Dualplay Tripleplay Singleplay Dualplay Tripleplay Singleplay Dualplay Tripleplay

40.0

ARPUperuniquesubscriber

(/month)

719,200

Tripleplaycustomers ARPU/Uniquecustomer

(/month)

36.8651,000 +10% +9%

40.0+85%

Q42009 Q42010 12Q42009 Q42010Actual Single

play Dual

play Triple

play

(*)Multipleplayreferstocustomerssubscribingtotwoormoreproducts,thereforenotspecificallyinabundle.


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Broadband in te r ne t

Broadband enetration

72%

(%ofhouseholds)

Broadbandpenetration Belgium

114 100 116 112 95105 100 102

131

111

Internetnetadditions(000)

60%

64%

68%

19

64

2007 2008 2009 20101999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

72%

92%

Broadbandpenetration(%ofhouseholds2010)

Sustainednetnewsubscribergrowthdrivenbythe

premiumpositioningofourcablebroadband

productsovercompetinginfrastructures;

.

opportunities;

Competitionbetweeninfrastructuresdrives

broadbandpenetration;

+28%

e g um e er an s

13

Compared toneighboring countries,still untapped

growth potential.


14/60

Broadband in te r ne t

no er quar er o so ne new su scr er grow

1 197

1,227

u scr er ase n000 Netadditions(in000) Annualizedchurn(in%)

31

34

30 7.4%7.8% 7.6%

1,116

1,150

1,174 24 236.9%

6.5%

Q409 Q110 Q210 Q310 Q410

+10%

Q409 Q110 Q210 Q310 Q410 Q409 Q110 Q210 Q310 Q410

110,700netnewbroadbandsubscribersin2010,ofwhich29,800inQ42010;

Subscriber

rowthdriven

b

the

remium

ositionin

of

cable

relative

to

com etin

DSL

offers

our

continued

focusoncustomerserviceandourattractivepricingschemes;

1,226,600broadband subscribers asofDecember31,2010(+10%compared toprioryear);

43.5%ofhomespassed inour footprint(*)subscribed toone ofour broadband offerings asofDec.31,2010;

Stablechurnrateof7.2%forthefullyear2010(Q42010:7.6%).

14(*)Penetration asa%ofhomespassed across theCombined Network.Combined Network includes both Telenet Network andTelenet PartnerNetwork.


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Fibernet

ew pro uc neup an c pa es grow ng an w nee s

4Mbps

15GB

15Mbps

50GB

40Mbps

100GB

60Mbps

FUP

100Mbps

FUP

Downstream

Volume

18.90 30.64 44.95 64.95 99.00Price/month

(incl.VAT)

45.00(**) 54.95 74.95 99.00Pricewith

tripleplay(*)

15(*)ExcludesBasicCableTVsubscription(**)InatripleplayShake,Basicnet downstreamspeedhasbeenupgradedto15Mbps


16/60

New roduc t l ineu rov ides best va lue for m one

Current broadband product portfolio unmatched by competition

Telenet broadband customer base one of most advanced

Competition Telenet

1%

100Mbps

15

4

12Comfortnet

Basicnet5%

18.90 32.92

30.64 32.92

40

30

25Fibernet40

47%

47% 44.95 43.46

100

60

Fibernet100

Fi ernet60

n/a

. .

16Retail price permonth,incl.VAT


17/60

Fixed t e lephony

xe ne rema ns a re evan pro uc as par o un es

77 7891

93

81

112

74

Fixedtelephonynetadditions(000) Fixed telmarket share (%)*

Telenet Competition

29

67

48 51

41% 44%

69% 65% 59%56%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2007 2008 2009 Q32010

(*)on Telenet footprint,

Continuedpenetrationamongstourcustomerbase,reaching28.9%attheendof2010;

Netnewsu scr ergrowt r ven yattract ve at eeratep ansan mu t p ep aygrowt ;

Sustainedmarketsharegainsdespitematureandintenselycompetitivemarket;

Reliabilityandcheapflatfeeplansremainkeyadvantagesovermobile.

17


18/60

Fix ed t e lephony

on nue pene ra on grow amongs our cus omer ase

815

u scr er ase n000 Netadditions(in000) Annualizedchurn(in%)

26

6.9%7.2%

741

763

780

22

1715

206.8%

.

6.1%

Q409 Q110 Q210 Q310 Q410

+10%

73,700netnewfixedtelephonysubscribersin2010(Q42010:19,800)despitethematurecharacterofthefixed

Netnewsubscribergrowthpredominantlydrivenbymultipleplaygrowthandflatfeerateplans;

Numberoffixed telephony subscribers up10%compared toprioryear,reaching 814,600endDecember2010;

(*)

. .

Annualized

churn

rose

well

under

control

at

6.8%

for

the

full

year

2010

(Q4

2010:

7.2%). 18(*)Penetrationasa%ofhomespassedacrosstheCombinedNetwork.CombinedNetworkincludesbothTelenetNetworkandTelenetPartnerNetwork.


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Mobi le te lephonyMobile doubles to line rowth throu h increased focus on hi h-end

customers

280198

u scr er ase n000 Netadditions(in000) Revenueimpactmobile(m)

+14%

2423

120

160

200

240

129

152

170182

+119%

17

13

16

0

40

80

FY2009 FY20104 09 1 10 2 10 3 10 4 10

+4%

Q409 Q110 Q210 Q310 Q410

Fixedtelephony Mobiletelephony

Our carefully weighted pushinto themobilemarket anduniquely positioned tariff plansincluding subsidized

,

Increased focuson higher value segments andincreasing proportion ofsmartphone users;

Newly acquired subscribers generate ahigher ARPUcompared tothemobilesubscribers under thelegacy tariff

lans;

Mobilerevenue morethan doubled in2010ascompared toprioryear andrepresented 71%ofresidential

telephony revenue growth. 19


20/60

Mobi le te lephonyppea ng more o g er va ue cus omers

Q32009 Q42009 Q42010

Light MVNO Launch new rateplans Today

Mid

Mid LowHigh

Low

LowMid

Q32009 Q42009 Q42010

Active

Subscriber

Base

Mid

LowMid

High

20

LowLow


21/60

Basic c able TVur er s a za on o ne organ c oss ren

Cable TVchurn determined by:

Q42009 Q12010 Q22010 Q32010 Q42010

, Historically dense cable

penetration inFlanders (~90%);

Limited expansion interms of

~

2124

15 15 14

;

Sustained competition from

alternative TVplatforms.

x6

245

68

x2

21Analog

TV

customer Digital

TV

customer Triple

play

customer68

TotalcableTV DigitalTV Tripleplay


22/60

Dig i t a l TV

uper or p a orm appea s o o cus omers n years me

Di italTVnetadditions 000

218

329

245

Digital Analogconversion rate of

total TVsubscriber base

75

151 157

28%43%

55%

77% 72%57%

9% 10% 11% 14% 11%

2005 2006 2007 2008 2009 2010 2007 2008 2009 2010

AdvancedinteractivedigitalTVplatformofferingHD,3DandtrueVOD;

65%ofdigitalTVcustomershaveHD;

Newelectronicprogrammingguide(EPG)attractedmorenewusersto

Insta e oxes(Dec2010)

HighDef StandardDef

PRIMElineupextendedwithGolfChannel;

Interactiveapplicationsenrichedwithweatherradar,onlineportaland

other features. 65%

35%

22


23/60

Dig i t a l TVg a za on o our ana og ase con nue a a ea y pace

1,109 1,183

Su scr er aseTe enet DTV (in000) NetadditionsTelenetiDTV(in000) Digitalizationrate(in%)

Analog Digital

81

Equivalent to84,500 boxesEquivalent to84,500 boxes

9381,003

, 65

53 52

43% 46% 49% 51% 55%

Q409 Q110 Q210 Q310 Q410

+26%

Q409 Q110 Q210 Q310 Q410

57% 54% 51%49% 45%

Q409 Q110 Q210 Q310 Q410

224,900netnewsubscriberstoourinteractiveTelenetDigitalTVplatform,whichisbestresulteverwhen

excludin

2009s

entu

demand

resultin

from

the

Interkabel

Ac uisition

In2010,21%ofourremaininganalogcableTVsubscribersswitchedtodigital,equivalentto11%ofourtotal

cableTVbase,whichwasaheadofourlongtermprojections;

AsofDecember31,2010,ourdigitalizationratereached55%inourfootprintcomparedto43%end2009;

23

MigrationtodigitalTVremainsanimportantvaluedriverassuchaconvertedcustomergenerates

approximatelydouble

the

ARPU

of

a

basic

analog

TV

subscriber.


24/60

Dig i t a l TVrecor e es per ormance ever

10.3 10.911.6

14.5

4.5

5.0

15

20

Mio

transactions

3.5 3.5 3.6

4.2

3.0

3.5

4.0

0

5

10

Q12010 Q22010 Q32010 Q42010

VODtransactions AverageVODuseperiDTVpermonth

Settopbox Thematic Premium

VOD

Basic TV

Interactivity

The digi t a l TV va lue cha in

24


25/60

Yeloe nex s ep: wa c v r ua y everyw ere

>90,000

downloads> , ,

sessions

>1,500

co-creators

25


26/60

Bus iness ser v icesevenue up n r ven y organ c grow an -

Accessnetwork

Internet76.9

84.9

Businessservicesrevenue(inm)

Re ional

+10%

Office Branch

andHomeOffice

Wifi

19.3.

+27%

ea quar ers

10%toplinegrowthforourB2Bdivisionin2010

drivenbygoodtractionforourdataandfiber

solutionsandtheacquisitionofCCURE(asofMay

26

,

Roll

out

and

availability

of

EuroDocsis

3.0

will

herald

futuregrowthforselect,smallersizedB2Bsegments.


27/60

A enda





27

,


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Regulat o r y updat en en on o n ro uce reme es or an roa an n erne mar e

MarketstudyofregionalTVbroadcastingmarketinFlanders,WalloniaandBrussels

Reviewedbythenationaltelco (BIPT)andregionalmediaregulators(VRM,CSA,Medienrat)Basis

Telenet (andothercableoperators)havesignificantmarketshareintheirrespectivefootprint

forTVbroadcastingResults

1. WholesaleofferingofanalogTV

2. AccesstodigitalTVplatform(alsoappliestoBelgacom)

3. Wholesaleofferingofbroadbandinternet,onlyincombinationwithaccesstodigitalTV

Proposed

remedies

p at orm

MorecompetitionandfairpricesinTVmarket

Rationale A ege mportanceo un esexpan e reme esto roa an nternet

28


29/60

St e 1: how t he re u lat or m ade t hei r ro osal

Anal ze TV broadcast Assess need for

Regulators

transmissionmarket

regulationProposereme es

Analysis

of

market

was

limited

to

Market

for

TV

was removed

from list

Resale

of

analog

cable

TV

approach:

Geographically, themarketcanbe

definedaccordingtocablefootprints

Regulatorshouldprove3criteria

test:

Barrierstoentryarehigh

AccesstodigitalTVplatform(also

forBelgacoms IPTVplatform)

Resaleofinternetincombination

withTV(becauseofimportanceof

Nodynamictrendtocompetitionandthuslowerprices

Competitionlawisinsufficient

un estose TV

SatelliteTVandDTTshouldnot

havebeenexcluded

Both latforms are available in

5playershaverecentlyenteredTV

distributionmarket

Prices for cable TV are re ulated

WiththegrowthofdigitalTV,analog

TVislosingrelevance

Bel acom should not have access to

Telenets

view:

Belgiumandaresuccessfulabroad

RiseofOTT isdiscarded

Marketisnational,becausethereis

PricesinBelgiumforTVarelow and

DTVadoptionishigh

Accesstocableisnot necessary

cablegivenitsexistingTVplatform

Openingofcablewillresultinless

investments,hencelessinnovation

29

ac a no su s u one ec s esa eo ca e sno en orce

elsewhereinEurope:precedent !


30/60

St ep 2 : broadband regu la t ion w as not ana lyzed

Cable has territorial SMP Bundles are crucial Cable needs to resell cable

Regulators

inTVdistribution

tosellTV

internet

Jurisdiction:

VRM,

CSA

and

No

jurisdiction:

bundles

are

not

a

Jurisdiction:

BIPT

conclusions:

communities

TV

distribution

market

cannot

be

limitedtothecablefootprint

Competitionisnational (Belgacom,

24%

of

Belgian

consumers

subscribe

tobundles

BasicTVsubscriptionisnotpartof

Telenets national

market

share

=

37%

BIPTdoesnotconsiderTelenet as

Telenetsview:

Mobistar,OTT)

TVdistributionmarketembracesa

largesetofplayerscoveringvarious

technologies

theTelenet bundles SMPforbroadband

Accesstocableisnotaprerequisite

tobesuccessfulintheTVmarket

WithSMP

in

broadband,

Belgacom

TVproductmarketiswiderthanthe

oneusedbyVRM

shouldnothaveaccesstocable

30


31/60

St e 3 : t he ECs 3 c r it e r ia t est fa i l s

3criteria test:

Barr erstoentry Compet t veness Compet t on aw

The

market

is

subject

to

high

and

The

market

will

not

tend

over

time

Competition

law

by

itself

is

failure

Newplayers

have

entered

the

TV

distributionmarket,demonstrating

thatbarrierstoentryarelow

AnalogTV

is

no

longer

the

dominant

platformgivensubstitutionbydigital

TV,DTH,DVBTandotherplatforms

Noother

EU

country

has

opened

cableTV

Access to cable is not necessar

Telenets

view:

TheTVdistributionmarketisbyfar

themostdynamic

telecommunicationsmarketin

Belgium

Within5yearsBelgacom has

captured31%ofthedigital TV

householdsinBelgium

The broadcastingmarketisdeletedbytheEuropeanCommissionfromthelistofmarketsas

31

potentiallysusceptibletoexanteregulation


32/60

New p layers have en tered t he TV dis t r ibu t ion

,

Cable IPTV DTH

2002 6/2005 10/20103/20106/2006 2009

Cable

8 /2005

Cable OTT OTT DTH IPTV IPTV IPTV + DTH

DigitalTV

market

shares

Belgium

(June2010)

Telenet BelgacomASTRA VOO

10%

3% 4%2%

38%

13%

32Source: Companyreports

30%


33/60

The pr oposed rem edies dont p rovide added

3remedies:

Ana ogca eTV D g ta TV Ca e nternet

Resaleof

analog

cable

TV

Accessto

digital

TV

platform

Resaleof

cable

internet,

in

areas:

TVplatform

BelgianTVhouseholdsareswiftly

switchingtodigitalTV,andthis

makestheaccesstoanalogTV

Thecompetitivelandscapeofdigital

TVinBelgiumishighlydynamicand

thereforethereisnoneedforresale

BIPThasstatedthatBelgacom has

SMPinbroadband,whereasthisis

notthecaseforTelenet

Telenets

view:

irrelevant of digitalTV

Belgiumhasanaboveaveragedigital

payTVpenetrationandbelow

averageprices

for

digital

pay

TV

Belgiumhasanaboveaverage

broadbandpenetrationandlow

pricesforbroadband

entrypackages

Shiftingtowardsservicebased

competitionwillresultin (even)less

investmentsandthereforeless

lowestpricedbroadbandentry

products

33

nnovat ons


34/60

Ind ic at ive t im i n of r oc ess

Not to scalePublic Could adjust

1 month 1 month2 months

Hearing ?

decision

European Commission

Consultation Competition council

u ca on

results

or regulators

Beyond May EC canrecommend to

withdraw remedies

If serious doubts2 months

-consultation?

Potential for appeal :

BIPT/CRC Court of Appeal

max 3 months6 months 3 months6 months

VRM/CSA Council of State

Negotiations

with operators

Public consultation

on reference offer

Reference

offer into force

Preparation draft

reference offerFinal decision

34

6/2012 9/2012 at the earliest12/2011

Source: Draft decision of the regulators.

mid 06/2011


35/60

A enda





35

,


36/60

Revenue

1,350

EURm

rong nanc a per ormance oos e y so opera ng resu s

3.7m negative3.7m negative

1,250

1,300

+35.3

0.8

+24.7

+31.6+8.0

1,299.0

termination billings


1,150

1,200

1,197.4 +2.8

+8% reported

1,050

1,100

+7% organic(*)

1,000

RevenueFY2009

BasiccableTV

PremiumcableTV Distributors /other ResBBInternet ResTelephony B2B RevenueFY2010

ea t y top negrowt n ,o w c wasorgan c,to , . m on;

Organicrevenueincreasedrivenbytheunderlyinggrowthinthenumberoffixedandmobileservicesandthe

ongoingmigrationfromanalogtodigitalTV;

36

acquisitionofCCURE.

(*)Organicrevenuegrowthexcludesrevenuefromacquisitions,i.eBelCompany(fullyconsolidatedsinceJune30,2009)andCCURE(fullyconsolidatedsinceMay31,2010)


37/60

Revenuerevenue mpac e y ower con rac erm na on ngs

Revenue(m) Revenuegrowthdrivers(Change%yearonyear)

+5%

reported

1,197.41,299.0

14%

31%

Restelephony

PremiumcableTV

+8%reported+4%organic(*)

6%

10%

Resbroadband

B2B

+7%organic(*)315.5 .

1%

1%

Distributors/other

BasiccableTV

Organicrevenue Acquisitioneffect

Revenue

in

Q4

2010

impacted

by

3.7

million

lower

revenue

from

contract

termination

billings,

which

FY2010 Q42010

representstheterminationfeewechargetocustomerswhencancellingtheironeyearcontractobligation;

Solidgrowthwithinourcoreresidentialproducts,whileourB2Bdivisionshowed27%toplinegrowthyoy

drivenbygoodtractionforourdataandfiberproductsandtheacquisitionofCCURE;

37

revenue atBelCompany.Inline with our strategy,weexpecttorealizeagrowing proportion ofour mobile

sales through BelCompany.

(*)Organicrevenuegrowthexcludesrevenuefromacquisitions,i.eBelCompany(fullyconsolidatedsinceJune30,2009)andCCURE(fullyconsolidatedsinceMay31,2010)

E


38/60

Expenses4% or anic ex ense rowth in 2010 reflectin continued rowth of our

980

EUR munderlying operations

920

940

960

+10.7+4.7

+11.0

+35.0 +0.1 +0.6 954.5

860

880

900892.3

+6% reported

+4% organic(**)

800

820

840

Expenses FY Employee Sharebased D&A Network Advertising, O th er E xp en ses9M2009(*) benefits comp operatingand

servicecosts salesand marketing 2010

4%organicexpensegrowthin2010,comparingfavorablytoorganictoplinegrowthof7%;

Higher

employee

benefits,

reflecting recent

acquisitions

and

business

growth

(6%

increase

in

FTEs

compared

to

prioryear)plusafurther insourcing ofcall centresoffsetbylowernetworkoperatingandservicecosts;

Higher networkoperating andservicecosts reflect BelCompany acquisition,purchase ofmobilehandsetsand

further increase indirectexpenses correlated togrowing number ofservices;

38

ver s ng,sa es an mar e ngcos s a compare opr oryear esp emo emar e ngcampa gns, e

BelCompanyacquisition andlaunchofourYelomobileTVplatform.

(*) ExpensesfortheyearendedDecember31,2009excludea6.6millionnonrecurringprovisionwithregardstothesettlementofpostemploymentbenefits

(**)Organicexpensegrowthexcludesexpensesfromacquisitions,i.eBelCompany(fullyconsolidatedsinceJune30,2009)andCCURE(fullyconsolidatedsinceMay31,2010)


39/60

Adjust ed EBITDAmarg n co ore y seasona y, ye mprov ng year-on-year

AdjustedEBITDA(m) andAdjustedEBITDAmargin (%) AdjustedEBITDA(m)

607.7668.7

600.0

700.0

54%

56%

170

1801.0m negative

impact from contract


1.0m negativeimpact from contract


300.0

400.0

500.0

+11%reported+10%reported

48%

50%

52%

130

140

150

160

. .

-100.0

.

FY2009 FY2010 Q42009 Q42010

42%

44%

46%

100

110

120

Q108 Q308 Q109 Q309 Q110 Q310

50.7% %ofrevenue51.5% 46.5% 49.1%AdjustedEBITDA AdjustedEBITDAmargin

.

,

.

.

Despiteselectiveinvestmentsingrowthwesucceededinexpandingouroverallmargin;

Q42010marginaffectedbyseasonalityaswegenerallyincurmuchhigheradvertising,salesandmarketing

costsintheyearendquarterandaffectedby1.0millionnegativeimpactfromcontractterminationbillings;

39

Evenexcludingthe6.6millionnonrecurringpostemploymentbenefitexpenseinQ42009,wewereableto

expandour

margin

which

we

owe

to

various

process

improvements

and

the

benefits

of

our

multiple

play

model.

Fi


40/60

Financ e ex pensesSomewhat hi her net interest ex ense one-time im act from re a ment

of debt in Q4 2010

32.7

FY2009 FY2010 Q42009 Q42010

e nanceexpense m as n eres expenses m

Floating Hedging Leases Fixed

179

(132.7) (150.7)

(31.4)(44.3)

20.9

(2.3)(7.9)

(33.7) (19.5)

34

1927

48137

(39.0)

(7.9)

Netfinanceex ense * Net ain loss onderivatives

(153.6)

(197.6) 84 83

21

Lossonextinguishmentofdebt

(*)Netfinanceexpenseisdefinedasnetinterestexpenseandforeignexchange

loss+netinterestincomeandforeignexchangegain

2010 2011(E)

aresult ofdebt maturity extension inAugust2009andSeptember2010;partially offsetby lower EURIBOR;

Change infairvalue ofinterestrate derivatives revealed a39.0million lossin2010compared toalossof

20.9million intheprioryear period.Q42010produced again on our derivatives of32.7million;

40

7.9million losson theextinguishment ofdebt inQ42010following prepayment ofcertain TermLoans;

Refinancing operations,enlarged debt level

and

anticipated higher EURIBOR

rates will increase cash

interestexpenses by approx.30%for FY2011.

Net incom e


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Net i ncom eLoss on derivatives and loss on extin uishment of debt masked underl in

profit growth

Netincomefortheperiod(m)

20.9

,

55%

129.4

38.1

+5%

233.1

89.3

160.439.0

.

7.9

7.9233.1

62%17.3

136.2

.

(32.7)

(124.6) (124.6)

FY2009 FY

2010 Q4

2009 Q4

2010

89.3

160.4

42.1

74%

Netprofitfortheperiod Netloss(gain)onderivatives

Taxbenefit Lossonextinguishmentofdebt

FY2009 FY2010 Q42009 Q42010

Net rofit of 89.3 million in 2010 com ared to 233.1 million in 2009

ThedeclineinnetprofitisattributabletoanonrecurringincometaxbenefitinQ42009,ahigherlosson

derivativesandalossontheextinguishmentofdebtinQ42010;

Excludingthe39.0millionlossonderivativesandthe7.9millionlossontheextinguishmentofdebt,our

41

netprofitreached136.2millionin2010(+5%yoy).


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Capi t a l ex pendi tur esxc u ng cense, accrue capex s owe a yoy ec ne

AccruedCapitalExpenditures(m)

317.6

~76%

SCALABLEOR

AccruedCapitalExpendituresFY2010(%)

316.3

20%10%

SUBSCRIBER

RELATED

~10%ONETIME

CAPEXRELATED

16%102.4

TODTTLICENSE141.4

30%

RentalSTB Customerinstall Networkgrowth

FY2009 FY2010 Q42009 Q42010

Other

capex Network

growth Customer

installRentalSTB DTT

26.5%%ofrevenue 24.3% 32.5% 42.6%

42

22.0% 33.3%%ofrevenue,

excludingDTT


43/60

Free Cash Flowree as ow eape yoy o . m

EURmFreeCashFlow(m)

668.7-246.0

257.8+169%

-127.8

-9.2-27.9 257.8

.

18.950.8

FY2009 FY2010 Q42009 Q42010Adjusted

EBITDA

Cashcapex Netinterest

paidand

Cashpaidfor

derivatives

Working

capitaland

FreeCash

Flow

taxes other

changes

Free

Cash

Flow

boosted

by

54%

year

on

year

to

257.8

million,

representing

20%

of

revenue;

13.9% %ofrevenue19.8% 6.0% 15.3%

StrongFreeCashFlowimprovementattributabletosolidAdjustedEBITDAgrowth,somewhathigherinterest

expensesandlowercashcapitalexpenditures;

FreeCashFlowinQ42010positivelyinfluencedbylowerworkingcapitalrequirements,whichisexpectedto

43

reverse n .


44/60

Deb t pr of i l e*e o a e everage o . x as o ecem er ,

*everage rat o e ma ur ypro e u y rawn me o a e

ASOFDECEMBER31,2009

5

66.25x

6.0x

2.8x

1

2

3

453 419979

175

0

Q1

08 Q3

08 Q1

09 Q3

09 Q1

10 Q3

10

SeniorCreditFacility EBITDACovenant

77 76 38 83

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Tranche A Tranche B1 & B2 Tranche C Tranche DTranche E1 & E2 Tranche F Revolver

,

AvailabilityofcommittedSeniorCreditFacility

(m)175

2,530

,

79500

100300175

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

44(*)CalculatedasperSeniorCreditFacilitydefinition,usingnettotaldebt,excludingsubordinatedshareholderloans,capitalized elementsofindebtednessundertheclienteleandannuityfeesandanyotherfinanceleases,dividedbylasttwoquartersannualizedEBITDA.

Revolver undrawn Drawn Tranche G Tranche J Tranche M Tranche N Tranche O Revolver

Sh h ld t i t t


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Sh ar eho ld er r em u ner at i on st r at e g ya e everage arge = recurr ng s are o er remunera on

Additional

EBITDA

growth

leverage

3.5x

Combination of

leverage on growing

EBITDAandFreeCash

Flow generation

EBITDA

RecurringFreeCash

Flow

providesfor longterm

shareholderremuneration in

absenceofM&A

Capex,

interest

EBITDA

Longtermdecliningcashcapex

45

Partiallyoffsetbyincreasein

cashinterestexpensesinline

withhigher

leverage


46/60

A enda




Financial ReviewRenaat Berckmoes, CFO

46

,

Out look 2011


47/60

Out look 2011Confident to deliver another ear of health o erational and financial

growth

FY2011outlook

Tripleplayopportunity

Continuedbroadband

market

growth

FurtherdigitalizationofTVcustomerbase

GrowthfromB2Bandmobile

AdjustedEBITDAmargin Stablerelative

toFY

2010

Efficiencygainsinfixedbusinessoperationsto

leveloff

low

margin

mobile

operations

CapitalExpenditures(*)Around21%

ofrevenue

ActualimplementationofPulsarnodesplitting

Majorityofcapex isscalableandcustomer

related

Inexcess of

250millionFreeCashFlow

StrongFreeCashFlowgenerationfollowingAdj.

EBITDAgrowthandstablecashcapex

Includesanticipated~42mhighercashinterest

47(*)

Accrued

capital

expenditures,

including

rental

set

top

boxes

and

non

cash

capital

lease

additions

chargesfollowingrefinancingoperations

U f h b i f id t i


48/60

Uses o f c ash: bas is for c ons iderat ionPriority to M&A/growth, followed by shareholder disbursements

as enerat on

431 2

a ance assessment ase on us nessper ormance, ongtermout oo ,

(iii)competitivesituationand(iv)economicconditions

M&A/

newgrowth CashDebtShareholder

opportunities

Upon

assessment

of

Keep

cash

buffer

When

available,

invest

Enhance

shareholder

economicsituation,

maturitylevelsand

businessprogress,

takingintoaccountNet

invalueaccretiveM&A

ornewbusiness

opportunities

embeddingclear

valuebydistributing

recurringcashto

shareholders

TotalDebt/EBITDAratiogrowthprospects

48


49/60

Pro osed s ec ia l disbur sem ent

Distributable

Amount 505.9million

PerShare Sharesoutstanding=112.4m 4.50pershare

Shareholder

DisbursementForm Capitalreduction,nowithholdingtax

ec s on o pr ,

Payoutdate ProbablyinJuly2011

49


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A enda

ac up

50


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Revenue b ser v ic e

RevenueEUGAAP in millions

Q42010 Q42009 Change% FY2010 FY2009 Change%

Basiccable

television

(1)

80.3 82.2

2% 325.1 322.3 +1%

Premiumcabletelevision(2) 40.7 32.9 +24% 150.7 115.4 +31%

Distributors/Other(3) 13.4 18.5 28% 55.7 56.5 1%

Residentialbroadbandinternet 105.7 103.3 +2% 426.7 402.0 +6%

es en a e ep ony . . + . . +

Businessservices 24.6 19.3 +27% 84.9 76.9 +10%

TotalRevenue 332.0 315.5 +5% 1,299.0 1,197.4 +8%

Organicrevenuegrowth +4% +7%

51

as c ca e te ev s on revenue compr ses t e a s c su s cr pt on e e pa y our ana og an g ta ot e enet g ta a n su scr ers.

(2) Premium cable television revenue includes recurring monthly settop box rental fees, subscription fees to our thematic and premium channel packages , PayTV and video ondemand

revenue and the use of other interactive services on the platform.

(3) Distributors / Other revenue includes revenue from settop box sales, BelCompany revenue, revenue from cable television activation and installation fees and an increasing share of other

services such as online advertising on our community websites and portal websites.

E b t


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Ex enses b nat ure

EUGAAP inmillions


Employeebenefits 35.2 33.6 +5% 133.8 123.1 +9%

Nonrecurringpostemploymentbenefits 6.6 n/a 6.6 n/a

Sharebasedcompensation 6.2 1.2 +417% 9.8 5.1 +92%

Depreciation 61.5 62.0 1% 246.5 239.0 +3%

Amortization 16.2 15.7 +3% 60.5 55.5 +9%

Amortizationofbroadcastingrights 2.2 2.1 +5% 6.8 8.3 18%

Networkoperat ngandserv cecosts 98.0 90.4 +8% 378.2 343.2 +10%

Advertising,salesandmarketing 23.0 24.3 5% 69.3 69.2 +0%

Othercosts 12.7 14.0 9% 49.0 47.7 +3%

Operatingcharges(credits)relatedtoacquisitionsor

divestitures0.3 (0.2) n/a 0.3 1.3 77%

Restructuringcharges 0.3 n/a 0.3 n/a

TotalExpenses 255.6 249.7 +2% 954.5 898.9 +6%

Organicexpensegrowth +1% +4%

52

I t t t


53/60

I nc ome st at ement

Incomestatement

EUGAAP in millions

Totalrevenue 332.0 315.5 +5% 1,299.0 1,197.4 +8%

Total

expenses

(excl.

D&A,

stock

based

comp.,

operating

(168.9) (168.9) +0% (630.3) (589.7) +

7%

AdjustedEBITDA(1) 163.1 146.6 +11% 668.7 607.7 +10%

AdjustedEBITDAMargin 49.1% 46.5% 51.5% 50.8%Operatingprofit 76.4 65.8 +16% 344.5 298.5 +15%

Netfinanceexpense (19.5) (33.7) 42% (197.6) (153.6) +29%

Shareofthelossofequityaccountedinvestees (0.0) (0.0) n/a (0.4) (0.5) 20%

Profitbeforeincometax 56.9 32.1 +77% 146.5 144.4 +1%

Incometaxbenefit(expense) (14.8) 128.3 n/a (57.2) 88.7 n/a

Profitfortheperiod 42.1 160.4 74% 89.3 233.1 62%

(1) Adjusted EBITDA is a non-GAAP measure as contemplated by the U.S. Securities and Exchange Commissions Regulation G. For related definitions and reconciliations, seethe Investor Relations section of the Liberty Global, Inc. website (http://www.lgi.com). Liberty Global, Inc. is our controlling shareholder.

EBITDA is defined as profit before net finance expense, income taxes, depreciation, amortization and impairment. Adjusted EBITDA is defined as EBITDA before stock-based

compensation and restructuring charges, and before operating charges or credits related to successful or unsuccessful acquisitions or divestures. Operating charges orcredits related to acquisitions or divestures include (i) gains and losses on the disposition of long-lived assets and (ii) due diligence, legal, advisory and other third-party

53

costs directly related to our efforts to acquire or divest controlling interests in businesses.

Adjusted EBITDA is an additional measure used by management to demonstrate the Companys underlying performance and should not replace the measures in accordance

with IFRS as an indicator of the Companys performance, but rather should be used in conjunction with the most directly comparable IFRS measure.

N t f i


54/60

Net f inanc e ex ense

Net financeexpenseEUGAAP in millions


Financeincome 32.9 0.2 n/a 1.5 1.2 +25%

Netinterestincomeandforeignexchangegain 0.2 0.2 n/a 1.5 1.2 +25%

Netgainonderivativefinancialinstruments 32.7 n/a n/a

Financeincome (52.4) (33.9) +55% (199.1) (154.8) +29%

Netinterestexpenseandforeignexchangeloss (44.5) (31.6) +41% (152.2) (133.9) +14%

Netlossonderivativefinancialinstruments (2.3) n/a (39.0) (20.9) +87%

Losson

extinguishment

of

debt (7.9)

n/a (7.9)

n/a

NetFinanceexpense (19.5) (33.7) 42% (197.6) (153.6) +29%

54

Ad ust ed EBITDA rec onc i l i at ion


55/60

Ad ust ed EBITDA rec onc i l i at ion

AdjustedEBITDAreconciliation Q42010 Q42009 Change% FY2010 FY2009 Change% n m ons

AdjustedEBITDA 163.1 146.6 +11% 668.7 607.7 +10%

AdjustedEBITDAmargin 49.1% 46.5% 51.5% 50.7%

Sharebasedcompensation (6.2) (1.2) +417% (9.8) (5.1) +92%

Operatingcredits(charges)relatedtoacquisitionsor

divestitures(0.3) 0.2 n/a (0.3) (1.3) 77%

Restructuringcharges (0.3) n/a (0.3) n/a

EBITDA 156.3 145.6 +7% 658.3 601.3 +9%

Depreciation,amortizationandimpairment (79.9) (79.8) +0% (313.8) (302.8) +4%

Operatingprofit 76.4 65.8 +16% 344.5 298.5 +15%

NetFinanceexpense (19.5) (33.7) 42% (197.6) (153.6) +29%

Shareofthelossofequityaccountedinvestees (0.0) (0.0) n/a (0.4) (0.5) 20%

Incometaxbenefit(expense) (14.8) 128.3 n/a (57.2) 88.7 n/a

Totalcomprehensiveincomefortheperiod,attributable

toownersoftheCompany42.1 160.4 74% 89.3 233.1 62%

Adjusted EBITDA is a non-GAAP measure as contemplated by the U.S. Securities and Exchange Commissions Regulation G. For related definitions and reconciliations, seethe Investor Relations section of the Liberty Global, Inc. website (http://www.lgi.com). Liberty Global, Inc. is our controlling shareholder.

EBITDA is defined as profit before net finance expense, income taxes, depreciation, amortization and impairment. Adjusted EBITDA is defined as EBITDA before stock-based

compensation and restructuring charges, and before operating charges or credits related to successful or unsuccessful acquisitions or divestures. Operating charges orcredits related to acquisitions or divestures include (i) gains and losses on the disposition of long-lived assets and (ii) due diligence, legal, advisory and other third-party

55

costs directly related to our efforts to acquire or divest controlling interests in businesses.

Adjusted EBITDA is an additional measure used by management to demonstrate the Companys underlying performance and should not replace the measures in accordance

with IFRS as an indicator of the Companys performance, but rather should be used in conjunction with the most directly comparable IFRS measure.

Cash flow st at ement


56/60

Cash flow s t at ement

CashFlowEUGAAP in millions


Cashflowsprovidedbyoperatingactivities

Profitfortheperiod 42.1 160.4 74% 89.3 233.1 62%

Depreciation, amortization andimpairment 79.9 79.8 +0% 313.8 302.8 +4%

Workingcapital

changes

and

other

non

cash

items (1.9) (27.8)

93% (17.0) (45.6)

63%

Incometaxexpense(benefit) 14.7 (128.3) n/a 57.5 (89.0) n/a

Netinterestexpenseandforeignexchangeloss 44.3 31.4 +41% 150.7 132.8 13%

Netloss(gain)onderivativefinancialinstruments (32.7) 2.3 n/a 39.0 20.9 +87%

Lossonextinguishment ofdebt 7.9 n/a 7.9 0.0 n/a

Cashinterestexpensesandcashderivatives (30.4) (28.1) +8% (137.4) (114.2) +20%

Netcashprovidedbyoperatingactivities 123.9 89.7 +38% 503.8 440.8 +14%

Cash

flows

provided

by

investing

activitiesCashcapex (73.1) (70.8) +3% (246.0) (273.9) 10%

Acquisitionsofsubsidiariesandaffiliates,netofcashacquired (0.4) n/a (2.3) (6.4) 64%

Proceedsfromsaleofpropertyandequipment andother

intangibles. . . .

Netcashusedininvesting activities (72.9) (70.6) +3% (248.0) (279.6) 11%

Cashflowsprovidedbyfinancingactivities

Netdebtredemptions 391.2 n/a 526.2 5.0 n/a

Payment

of

shareholder

disbursement (0.1)

n/a (249.8) (55.8) +

348%

Otherfinancingactivities(incl.financeleases) (19.7) (3.8) +418% (38.3) (30.3) +26%

Netcashprovidedby(usedin)financingactivities 371.4 (3.8) n/a 238.1 (81.1) n/a

Net increaseincashandcashequivalents

56

. . . .

Cashatendofperiod 639.6 145.7 +339% 639.6 145.7 +339%

Netcashgenerated 422.4 15.3 n/a 493.9 80.1 +517%

Free Cash Flow rec onc i l ia t ion


57/60

Free Cash Flow rec onc i l ia t ion

FreeCashFlowreconciliationEUGAAP in millions


Netcashprovidedbyoperatingactivities 123.9 89.7 +38% 503.8 440.8 +14%

Cashcapex (73.1) (70.8) +

3% (246.0) (273.9)

10%

FreeCashFlow 50.8 18.9 +169% 257.8 166.9 +54%

Free Cash Flow is a non-GAAP measure as contemplated by the U.S. Securities and Exchange Commissions 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.

57

,reported in our consolidated statement of cash flows.

Free Cash Flow is an additional measure used by management to demonstrate the Companys ability to service debt and fund new investment opportunities and

should not replace the measures in accordance with IFRS as an indicator of the Companys performance, but rather should be used in conjunction with the mostdirectly comparable IFRS measure.

Balanc e sheet s t at em ent


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Balanc e sheet s t at em ent

BalanceSheet December31, December31,Chan e Chan e %

EUGAAP in millions 2010 2009

Noncurrentassets 2,895.3 2,995.3 (100.0) 3%

CurrentAssets 157.8 132.2 25.6 +19%

Cashand

Cash

Equivalents

639.6

145.7

493.9

+

339%

TotalAssets 3,692.7 3,273.2 419.5 +13%

TotalEquity 217.5 360.1 (142.6) 40%

Loansandborrowings 2,837.4 2,291.5 545.9 +24%

Derivativefinancialinstruments 35.9 18.6 17.3 +93%

Othernon

current

Liabilities 50.1

94.2

(44.1)

47%

NonCurrentLiabilities 2,923.4 2,404.3 519.1 +22%

urren or ono ong erm e . . . +

Tradepayables 109.4 82.2 27.2 +33%

AccruedExpensesandOtherCurrentLiabilities 283.1 272.5 10.6 +4%

DeferredRevenue 94.0 105.1 (11.1) 11%

DerivativeFinancial

Instruments 24.7

16.6

8.1

+

49%

Currenttaxliability 0.3 0.1 0.2 +200%

CurrentLiabilities 551.8 508.9 42.9 +8%

TotalEquityandLiabilities 3,692.7 3,273.2 419.5 +13%

58


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60/60

Contact Investor Relations

Liersesteenweg 4

2800 Mechelen, Belgium

investors.telenet.be

Vincent BruyneelVice President Investor Relations,

Corporate Finance & Development

+ 32 (0)15 33 56 96

Rob GoyensManager Investor Relations

+ 32 (0)15 33 30 54

[email protected]

60

[email protected]

2010 q4 presentation en

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