Investor Presentaiton
CONSOLIDATED LEVERAGE RATIO DEFINITION & RECONCILIATION
LIBERTY
LATIN AMERICA
June 30, 2021
We have set forth below our consolidated leverage and net leverage ratios. Our consolidated leverage and net
leverage ratios, each a non-GAAP measure, are defined as (i) adjusted total debt and finance lease obligations
(total carrying value of debt and finance lease obligations plus discounts, premiums and deferred finance costs,
less projected derivative principal-related cash receipts) less cash and cash equivalents divided by (ii) last two
quarters annualized Adjusted OIBDA as of June 30, 2021. For purposes of these calculations, adjusted total
debt and finance lease obligations is measured using swapped foreign currency rates. We believe our
consolidated leverage and net leverage ratios are useful because they allow our investors to consider the
aggregate leverage on the business inclusive of any leverage at the Liberty Latin America level, not just at each
of our operations. Investors should view consolidated leverage and net leverage as supplements to, and not
substitutes for, ratios that would be calculated based upon measures presented in accordance with U.S. GAAP.
Reconciliations of the numerator and denominator used to calculate the consolidated leverage and net leverage
ratios as of June 30, 2021 and March 31, 2021 are set forth below:
March 31, 2021
Total debt and finance lease obligations
Discounts, premiums and deferred financing costs, net
Projected derivative principal-related cash payments (1)
Adjusted total debt and finance lease obligations
Less:
Cash and cash equivalents
Net debt and finance lease obligations
Adjusted OIBDA (2):
Adjusted OBIDA for the three months ended December 31, 2020
Adjusted OIBDA for the three months ended March 31, 2021
Adjusted OIBDA for the three months ended June 30, 2021
Rebased Adjusted OIBDA - AT&T Acquired Entities (3)
Adjusted OIBDA - last two quarters
Annualized adjusted OIBDA - last two quarters annualized
Consolidated leverage ratio
Consolidated net leverage ratio
in USD millions; except leverage ratios
8,782.9
156.0
150.9
9,089.8
1,305.6
7,784.2
8,794.3
152.3
114.1
9,060.7
1,311.1
7,749.6
428.0
n/a
449.3
449.3
n/a
464.0
26.8
904.1
1,808.2
5.0x
4.3x
913.3
1,826.6
5.0x
(1) Amounts represent the U.S. dollar equivalents and are based on interest rates and exchange rates that were in effect as of June 30, 2021 and March 31, 2021, respectively. For a discussion of our projected cash flows associated with derivative instruments, please see Item 3. Quantitative and Qualitative Disclosures About
Market Risk-Projected Cash Flows Associated with Derivative Instruments in our most recently filed Quarterly Report on Form 10-Q.
(2) Adjusted OIBDA is a non-GAAP measure. See slide 20 for reconciliations of Adjusted OIBDA to the nearest U.S. GAAP measure.
(3) Reflects our calculation of Adjusted OIBDA, as defined by Liberty Latin America, based upon historical financial information of the AT&T Acquired Entities for the pre-acquisition period (October 1, 2020 to October 31, 2020 with respect to the March 31, 2021 ratio calculations) as adjusted primarily for (i) the impact of new
rates pursuant to agreements with AT&T related to roaming, subsea and ethernet services, (ii) aligning the accounting policies of the AT&T Acquired Entities to those used by Liberty Latin America, (iii) the impact of the elimination of parent-company allocations included in the historical financial statements of the AT&T
Acquired Entities that are replaced by costs for services provided through the transitional services agreement with AT&T, which generally relate to network operations, customer service, finance and accounting, information, technology, and sales and marketing, and (iv) estimated standalone costs not covered by the
transitional services agreement with AT&T.
LIBERTY LATIN AMERICA | Q2 & H1 2021 INVESTOR CALL | AUGUST 5, 2021
4.2x
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