Investor Presentaiton
ADJUSTED OIBDA & ADJUSTED OIBDA LESS P&E ADDITIONS
DEFINITION & RECONCILIATION
LIBERTY
LATIN AMERICA
Adjusted OIBDA and Adjusted OIBDA less P&E Additions, each a non-GAAP measure, are the primary
measures used by our chief operating decision maker to evaluate segment operating performance. Adjusted
OIBDA and Adjusted OIBDA less P&E Additions are also key factors that are used by our internal decision
makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our
management for purposes of incentive compensation plans. As we use the term, Adjusted OIBDA is defined
as operating income or loss before share-based compensation, depreciation and amortization, provisions and
provision releases related to significant litigation and impairment, restructuring and other operating
items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party
costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal,
advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and
losses on the settlement of contingent consideration. Our internal decision makers believe Adjusted OIBDA
and Adjusted OIBDA less P&E Additions are meaningful measures because they represent a transparent view
of our recurring operating performance that is unaffected by our capital structure and allows management to
(i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments
and (iii) identify strategies to improve operating performance in the different countries in which we operate. We
believe our Adjusted OIBDA and Adjusted OIBDA less P&E Additions measures are useful to investors
because they are one of the bases for comparing our performance with the performance of other companies
in the same or similar industries, although our measures may not be directly comparable to similar measures
used by other public companies. Adjusted OIBDA and Adjusted OIBDA less P&E Additions should be viewed
as measures of operating performance that are a supplement to, and not a substitute for, operating income or
loss, net earnings or loss and other U.S. GAAP measures of income. A reconciliation of our operating income
or loss to total Adjusted OIBDA and Adjusted OIBDA less P&E Additions are presented in the following table:
Three months ended
December 31,
2019
March 31,
2020
June 30,
2020
September 30,
2020
Year ended
December 31,
2020
December 31,
2019
December 31,
2020
in USD millions; for percentages
Operating income (loss)
166.7
107.8
(206.0)
86.6
103.3
353.8
91.7
Share-based compensation expense
12.3
23.8
23.5
28.0
22.2
57.5
97.5
Depreciation and amortization
205.7
213.5
216.4
231.6
253.1
871.0
914.6
Impairment, restructuring and other operating items, net
23.8
18.8
298.7
14.0
49.4
259.1
380.9
Adjusted OIBDA
408.5
363.9
332.6
360.2
428.0
1,541.4
1,484.7
Less: P&E additions
229.4
132.9
153.3
156.9
188.0
721.5
631.1
Adjusted OIBDA less P&E additions
179.1
231.0
179.3
203.3
240.0
819.9
853.6
Operating income (loss) margin (1)
17.1%
11.6%
(24.3%)
9.8%
9.4%
9.1%
2.4%
Adjusted OIBDA margin(2)
41.9%
39.1%
39.2%
40.6%
39.0%
39.9%
39.4%
(1) Calculated by dividing operating income (loss) by total revenue for the applicable period.
(2) Calculated by dividing Adjusted OIBDA by total revenue for the applicable period.
LIBERTY LATIN AMERICA | FY 2020 INVESTOR CALL | MARCH 1, 2021
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