Investor Presentaiton
ADJUSTED FREE CASH FLOW DEFINITION & RECONCILIATION
We define Adjusted Free Cash Flow (Adjusted FCF), a non-GAAP measure, as net cash provided by our
operating activities, plus (i) cash payments for third-party costs directly associated with successful and
unsuccessful acquisitions and dispositions, (ii) expenses financed by an intermediary, (iii) insurance recoveries
related to damaged and destroyed property and equipment and (iv) certain net interest payments or receipts
incurred or received, including associated derivative instrument payments and receipts, in advance of a
significant acquisition, less (a) capital expenditures, net, (b) principal payments on amounts financed by
vendors and intermediaries, (c) principal payments on finance leases, and (d) distributions to noncontrolling
LIBERTY
LATIN AMERICA
interest owners. We believe that our presentation of Adjusted FCF provides useful information to our investors
because this measure can be used to gauge our ability to service debt and fund new investment opportunities.
Adjusted FCF should not be understood to represent our ability to fund discretionary amounts, as we have
various mandatory and contractual obligations, including debt repayments, which are not deducted to arrive at
this amount. Investors should view Adjusted FCF as a supplement to, and not a substitute for, U.S. GAAP
measures of liquidity included in our consolidated statements of cash flows. The following table provides the
reconciliation of our net cash provided by operating activities to Adjusted FCF for the indicated period:
Net cash provided by operating activities
Cash payments for direct acquisition and disposition costs
Expenses financed by an intermediary(1)
Capital expenditures, net
Principal payments on amounts financed by vendors and intermediaries
Pre-acquisition interest payments, net (2)
Principal payments on finance leases
Adjusted FCF before distributions to noncontrolling interest owners
Distributions to noncontrolling interest owners
Adjusted FCF
Three months ended
December 31, 2022
Year ended
December 31, 2022
in USD millions
377.0
868.8
8.1
26.5
33.4
149.1
(166.0)
(660.1)
(42.6)
(196.7)
3.9
(0.2)
(1.1)
209.7
190.4
209.7
(1.9)
188.5
(1) For purposes of our consolidated statements of cash flows, expenses, including value-added taxes, financed by an intermediary are treated as operating cash outflows and financing cash inflows when the expenses are incurred. When we pay the financing intermediary, we record financing cash outflows in our consolidated
statements of cash flows. For purposes of our Adjusted FCF definition, we add back the operating cash outflows when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary.
(2) The amount for the year ended December 31, 2022 reflects the portion of interest paid that relates to the pre-acquisition debt for the Claro Panama Acquisition. The amount for the year ended December 31, 2021 relates to (i) the LCR Term Loan B-1 Facility and LCR Term Loan B-2 Facility that were entered into in advance of the
Telefónica Costa Rica Acquisition and (ii) the portion of interest paid in April 2021 that relates to pre-acquisition debt for the AT&T Acquisition.
LIBERTY LATIN AMERICA | FY 2022 INVESTOR CALL | FEBRUARY 23, 2023
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