Liberty Global Results Presentation Deck
VMO2 JV
RECONCILIATIONS - ADJUSTED FCF
VMO2 JV ADJUSTED FREE CASH FLOW (VMO2 JV ADJ FCF)
VMO2 JV Adjusted FCF is defined as net cash provided by operating activities, plus operating-related vendor financed expenses (which represents an increase in the period to actual cash available
as a result of extending vendor payment terms beyond normal payment terms, which are typically 90 days or less, through non-cash financing activities), less (i) cash payments in the period for
capital expenditures, (ii) principal payments on operating- and capital-related amounts financed by vendors and intermediaries (which represents a decrease in the period to actual cash available as
a result of paying amounts to vendors and intermediaries where terms had previously been extended beyond the normal payment terms) and (iii) principal payments on finance leases (which
represents a decrease in the period to actual cash available). We believe that the presentation of VMO2 Adjusted Free Cash Flow provides useful information to our investors because this measure
can be used to gauge VMO2's ability to service debt, distribute cash to parent entities and fund new investment opportunities after consideration of all actual cash payments related to working
capital activities and expenses that are capital in nature whether paid inside normal vendor payment terms or paid later outside normal vendor payment terms (in which case amounts are typically
paid in less than 365 days). VMO2 JV FCF, which is a non-GAAP measure, should not be understood to represent VMO2's ability to fund discretionary amounts, as it has various mandatory and
contractual obligations, including debt repayments, that are not deducted to arrive at this amount. Investors should view adjusted free cash flow as a supplement to, and not a substitute for, GAAP
measures. For purposes of its standalone reporting obligations, VMO2 prepares its consolidated financial statements in accordance with IFRS.
A reconciliation of VMO2 JV FCF for the three months ended March 31, 2022 is provided below.
Adjusted Free Cash Flow:
US GAAP:
Net cash provided by operating activities..
Cash capital expenditures, net...
Operating-related vendor financing additions.
Principal payments on operating-related vendor financing..
Principal payments on capital-related vendor financing..
Principal payments on finance leases.
US GAAP Adjusted FCF.
IFRS:
IFRS/US GAAP Adjustments (1)..
IFRS Adjusted FCF.
$
Three months ended
March 31, 2022
in millions
570.4
(291.4)
1,092.8
(1,049.2)
(418.3)
(91.8)
(187.5)
(240.8)
(428.3)
(1) Adjusted FCF IFRS/US GAAP differences relate to (i) the JV's investment in CTIL and (ii) certain handset securitization transactions.
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