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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 223 23
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