Liberty Global : VodafoneZiggo Group B.V. Condensed Consolidated Financial Statements – March 31, 2019

VodafoneZiggo Group B.V.

Condensed Consolidated Financial Statements

March 31, 2019

VodafoneZiggo Group B.V.

Boven Vredenburgpassage 128,

Utrecht

The Netherlands

VODAFONEZIGGO GROUP B.V.

TABLE OF CONTENTS

	Page
	Number
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 (unaudited)	2
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2019 and 2018
(unaudited)	4
Condensed Consolidated Statement of Owner's Equity for the Three Months Ended March 31, 2019
(unaudited)	5
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2019 and 2018
(unaudited)	6
Notes to Condensed Consolidated Financial Statements (unaudited)	8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS	27

1

VODAFONEZIGGO GROUP B.V.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

		March 31,		December 31,
		2019			2018
		in millions
ASSETS
Current assets:
Cash and cash equivalents	€	288.2		€	239.4
Trade receivables, net		217.3			206.2
Related-party receivables (note 10)		8.7			18.1
Prepaid expenses		27.7			46.4
Inventory held for sale, net		41.6			37.5
Derivative instruments (note 4)		77.2			74.5
Contract assets (note 3)		169.6			169.8
Other current assets, net		91.1			93.3
Total current assets		921.4			885.2
Property and equipment, net (note 6)		5,260.1			5,320.9
Goodwill (note 6)		7,375.5			7,375.5
Intangible assets subject to amortization, net (note 6)		6,402.6			6,554.1
Long-term contract assets (note 3)		55.4			55.0
Other assets, net (notes 2, 4 and 8)		603.4			116.8
Total assets	€	20,618.4		€	20,307.5

The accompanying notes are an integral part of these condensed consolidated financial statements.

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VODAFONEZIGGO GROUP B.V.

CONDENSED CONSOLIDATED BALANCE SHEETS - (Continued)

(unaudited)

		March 31,		December 31,
		2019			2018
		in millions
LIABILITIES AND OWNER'S EQUITY
Current liabilities:
Accounts payable (note 10)	€	367.1		€	395.4
Accrued and other current liabilities:
Third-party (notes 8 and 11)		361.6			313.0
Related-party (note 10)		1.2			2.4
Deferred revenue and advance payments from subscribers and others (note 3)		200.8			203.6
VAT payable		121.8			107.8
Derivative instruments (note 4)		99.4			71.9
Accrued interest (notes 7 and 10)		103.9			155.9
Current portion of debt and finance lease obligations (notes 7 and 8):
Third-party		1,081.2			1,005.7
Related-party (note 10)		200.0			200.2
Total current liabilities		2,537.0			2,455.9
Long-term debt and finance lease obligations (notes 7 and 8):
Third-party		9,971.3			9,946.2
Related-party (note 10)		1,400.0			1,400.0
Deferred income taxes (note 9)		1,036.3			1,070.2
Other long-term liabilities (notes 3, 4, 8 and 11)		835.2			465.1
Total liabilities		15,779.8			15,337.4
Commitments and contingencies (notes 4, 10 and 12)
Total owner's equity		4,838.6			4,970.1
Total liabilities and owner's equity	€	20,618.4		€	20,307.5

The accompanying notes are an integral part of these condensed consolidated financial statements.

3

VODAFONEZIGGO GROUP B.V.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

		Three months ended
		March 31,
		2019			2018
		in millions
Revenue (notes 3, 10 and 13)	€	963.4		€	973.4
Operating costs and expenses (exclusive of depreciation and amortization, shown separately
below):
Programming and other direct costs of services (note 10)		203.9			223.6
Other operating (note 10)		121.7			119.4
Selling, general and administrative (SG&A) (notes 3 and 10)		148.1			151.0
Charges for JV Services (note 10)		55.3			59.6
Depreciation and amortization		377.7			383.0
Impairment, restructuring and other operating items, net (note 11)		11.0			5.3
		917.7			941.9
Operating income		45.7			31.5
Non-operating income (expense):
Interest expense:
Third-party		(122.7)			(113.2)
Related-party (note 10)		(22.2)			(24.6)
Realized and unrealized gains (losses) on derivative instruments, net (note 4)		32.1			(81.2)
Foreign currency transaction gains (losses), net		(99.6)			101.8
Other income, net		0.7			1.4
		(211.7)			(115.8)
Loss before income taxes		(166.0)			(84.3)
Income tax benefit (note 9)		33.9			22.4
Net loss	€	(132.1)		€	(61.9)

The accompanying notes are an integral part of these condensed consolidated financial statements.

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