Liberty Global Results Presentation Deck
VMO2 JV RECONCILIATIONS – ADJUSTED FCF
VMO2JV ADJUSTED FREE CASH FLOW (VMO2JV 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 indicated period is provided below.
Adjusted Free Cash Flow:
US GAAP:
Net cash used 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.
(1) Adjusted FCF IFRS/US GAAP differences relate to the JV's investment in CTIL.
(n
Three months ended
June 30, 2023
in millions
$
1,242.2
(525.4)
1,714.7
(1,908.9)
(893.8)
(8.4)
(379.6)
21.0
(358.6)
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