Liberty Global : UPC Holding Group Condensed Combined Financial Statements – June 30, 2021

The UPC Holding Group

Condensed Combined Financial Statements

June 30, 2021

The UPC Holding Group
TABLE OF CONTENTS
	Page
	Number
Condensed Combined Balance Sheets as of June 30, 2021 and December 31, 2020 (unaudited)...............................	1
Condensed Combined Statements of Operations for the Three and Six Months Ended June 30, 2021 and 2020
(unaudited)................................................................................................................................................................	3
Condensed Combined Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2021 and
2020 (unaudited).......................................................................................................................................................	4
Condensed Combined Statements of Equity for the Three and Six Months Ended June 30, 2021 and 2020
(unaudited)................................................................................................................................................................	5
Condensed Combined Statements of Cash Flows for the Six Months Ended June 30, 2021 and 2020 (unaudited)...	7
Notes to Condensed Combined Financial Statements (unaudited)...............................................................................	9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS..........................................................................................................................................................	35

The UPC Holding Group

CONDENSED COMBINED BALANCE SHEETS

(unaudited)

		June 30,		December 31,
		2021			2020
		in millions
ASSETS
Current assets:
Cash and cash equivalents...........................................................................................................	€	70.4		€	25.7
Trade receivables, net..................................................................................................................		411.9			560.2
Related-partyreceivables (note 11).............................................................................................		16.1			19.4
Derivative instruments (note 5)...................................................................................................		60.5			74.7
Other current assets (note 3)........................................................................................................		170.0			146.5
Total current assets..................................................................................................................		728.9			826.5
Property and equipment, net (notes 7 and 9)..................................................................................		2,754.7			2,788.9
Goodwill (note 7)............................................................................................................................		5,975.8			6,041.6
Intangible assets subject to amortization, net (note 7)....................................................................		1,882.9			2,075.2
Derivative instruments (note 5)......................................................................................................		192.8			283.8
Operating lease right-of-use(ROU) assets (note 9).......................................................................		950.0			1,001.0
Other assets, net (notes 3, 7, 9 and 11)...........................................................................................		277.3			286.3
Total assets..............................................................................................................................	€	12,762.4		€	13,303.3

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

1

The UPC Holding Group

CONDENSED COMBINED BALANCE SHEETS - (Continued)

(unaudited)

		June 30,		December 31,
		2021			2020
		in millions
LIABILITIES AND COMBINED EQUITY
Current liabilities:
Accounts payable (note 11).........................................................................................................	€	274.0		€	241.4
Deferred revenue (note 3)............................................................................................................		144.3			198.5
Derivative instruments (note 5)...................................................................................................		100.1			76.4
Current portion of debt and finance lease obligations (notes 8 and 9)........................................		348.0			315.6
Current operating lease liabilities (note 9)...................................................................................		107.9			105.3
Other accrued and current liabilities:
Third-party...............................................................................................................................		424.1			505.4
Related-party(note 11)............................................................................................................		34.2			70.6
Total current liabilities........................................................................................................		1,432.6			1,513.2
Long-term debt and finance lease obligations (notes 8 and 9):
Third-party..................................................................................................................................		6,161.1			6,006.9
Related-party(note 11)...............................................................................................................		62.1			67.6
Derivative instruments (note 5)......................................................................................................		268.0			605.3
Long-termoperating lease liabilities (note 9).................................................................................		832.2			878.6
Other long-termliabilities (notes 3 and 11)....................................................................................		514.0			557.0
Total liabilities....................................................................................................................		9,270.0			9,628.6
Commitments and contingencies (notes 5, 8, 10 and 12)
Combined equity:
Parent entities:
Contributions and accumulated earnings in excess of distributions........................................		2,695.5			2,842.5
Accumulated other comprehensive earnings, net of taxes......................................................		782.1			815.0
Total combined equity attributable to parent entities..........................................................		3,477.6			3,657.5
Noncontrolling interests...............................................................................................................		14.8			17.2
Total combined equity........................................................................................................		3,492.4			3,674.7
Total liabilities and combined equity.............................................................................	€	12,762.4		€	13,303.3

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

2

The UPC Holding Group

CONDENSED COMBINED STATEMENTS OF OPERATIONS

(unaudited)

		Three months ended			Six months ended
		June 30,				June 30,
		2021			2020			2021			2020
					in millions
Revenue (notes 3, 11 and 13).......................................................................	€	792.7		€	377.2		€	1,597.7		€	772.8
Operating costs and expenses (exclusive of depreciation and
amortization, shown separately below):
Programming and other direct costs of services (note 11).......................		245.7			77.3			507.8			182.5
Other operating (note 11).........................................................................		103.4			55.7			206.6			112.7
Selling, general and administrative (SG&A) (note 11)............................		151.3			64.1			316.3			130.4
Related-party fees and allocations, net (note 11).....................................		54.2			60.8			103.8			121.3
Depreciation and amortization..................................................................		202.5			89.5			453.1			179.7
Impairment, restructuring and other operating items, net........................		16.8			(0.9)			35.9			11.3
		773.9			346.5			1,623.5			737.9
Operating income (loss)........................................................................		18.8			30.7			(25.8)			34.9
Non-operating income (expense):
Interest expense (note 11)..........................................................................		(62.2)			(36.6)			(128.4)			(78.7)
Realized and unrealized gains (losses) on derivative instruments, net		(74.0)			(42.5)			263.9			38.7
(note 5)...................................................................................................
Foreign currency transaction gains (losses), net........................................		79.9			26.5			(194.9)			(10.9)
Losses on debt extinguishment, net (note 8).............................................		(75.1)			(0.9)			(75.1)			(33.4)
Other income, net (note 11).......................................................................		2.2			3.8			6.7			8.6
		(129.2)			(49.7)			(127.8)			(75.7)
Loss before income taxes.......................................................................		(110.4)			(19.0)			(153.6)			(40.8)
Income tax benefit (expense) (note 10)........................................................		(6.6)			(11.1)			9.5			(17.4)
Net loss.................................................................................................		(117.0)			(30.1)			(144.1)			(58.2)
Net earnings attributable to noncontrolling interests...................................		(0.7)			(0.8)			(1.5)			(1.6)
Net loss attributable to parent entities.................................................	€	(117.7)		€	(30.9)		€	(145.6)		€	(59.8)

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

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