Liberty Global : UPC Holding Group Condensed Combined Financial Statements – March 31, 2022

The UPC Holding Group

Condensed Combined Financial Statements

March 31, 2022

The UPC Holding Group
TABLE OF CONTENTS
	Page
	Number
Condensed Combined Balance Sheets as of March 31, 2022 and December 31, 2021 (unaudited)............................	1
Condensed Combined Statements of Operations for the Three Months Ended March 31, 2022 and 2021
(unaudited)................................................................................................................................................................	3
Condensed Combined Statements of Comprehensive Earnings (Loss) for the Three Months Ended March 31,
2022 and 2021 (unaudited).......................................................................................................................................	4
Condensed Combined Statements of Equity for the Three Months Ended March 31, 2022 and 2021 (unaudited)....	5
Condensed Combined Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021
(unaudited)................................................................................................................................................................	7
Notes to Condensed Combined Financial Statements (unaudited)...............................................................................	9
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS..........................................................................................................................................................	32

The UPC Holding Group

CONDENSED COMBINED BALANCE SHEETS

(unaudited)

		March 31,		December 31,
		2022			2021
		in millions
ASSETS
Current assets:
Cash and cash equivalents ............................................................................................................	€	46.9		€	16.9
Trade receivables, net (note 11)....................................................................................................		440.1			408.7
Derivative instruments (note 5) ....................................................................................................		195.6			152.3
Current assets of discontinued operations (note 4).......................................................................		818.2			814.1
Other current assets (notes 3 and 11)............................................................................................		247.2			343.2
Total current assets...................................................................................................................		1,748.0			1,735.2
Related-partyreceivables (note 11).................................................................................................		35.5			73.6
Property and equipment, net (notes 7 and 9)...................................................................................		2,607.2			2,585.5
Goodwill (note 7) ............................................................................................................................		5,933.4			5,844.6
Intangible assets subject to amortization, net (note 7).....................................................................		1,746.6			1,807.6
Operating lease right-of-use(ROU) assets (note 9)........................................................................		992.5			979.1
Other assets, net (notes 3, 5, 9 and 11)............................................................................................		498.2			384.5
Total assets ...............................................................................................................................	€	13,561.4		€	13,410.1

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

1

The UPC Holding Group

CONDENSED COMBINED BALANCE SHEETS - (Continued)

(unaudited)

		March 31,		December 31,
		2022			2021
		in millions
LIABILITIES AND COMBINED EQUITY
Current liabilities:
Accounts payable (note 11) ..........................................................................................................	€	218.5		€	245.8
Deferred revenue (note 3) .............................................................................................................		163.2			84.0
Derivative instruments (note 5) ....................................................................................................		198.1			131.8
Current portion of debt and finance lease obligations (notes 8 and 9) .........................................		269.9			273.3
Current operating lease liabilities (note 9)....................................................................................		75.9			71.4
Accrued capital expenditures........................................................................................................		85.6			85.4
Current liabilities of discontinued operations (note 4) .................................................................		140.0			175.6
Other accrued and current liabilities:
Third-party .................................................................................................................................		335.8			398.5
Related-party(note 11) ..............................................................................................................		44.0			57.8
Total current liabilities ...........................................................................................................		1,531.0			1,523.6
Long-term debt and finance lease obligations (notes 8 and 9) ........................................................		6,412.2			6,306.4
Derivative instruments (note 5) .......................................................................................................		276.7			414.6
Long-termoperating lease liabilities (note 9)..................................................................................		925.9			921.9
Other long-termliabilities (notes 3 and 11).....................................................................................		405.9			423.8
Total liabilities........................................................................................................................		9,551.7			9,590.3
Commitments and contingencies (notes 5, 8, 9, 10 and 12)
Combined equity:
Parent entities:
Contributions and accumulated earnings in excess of distributions ..........................................		3,000.9			2,843.3
Accumulated other comprehensive earnings, net of taxes .........................................................		990.5			959.4
Total combined equity attributable to parent entities.............................................................		3,991.4			3,802.7
Noncontrolling interests................................................................................................................		18.3			17.1
Total combined equity ..........................................................................................................		4,009.7			3,819.8
Total liabilities and combined equity................................................................................	€	13,561.4		€	13,410.1

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

March 31,

		2022			2021
		in millions
Revenue (notes 3, 11 and 13) ............................................................................................................	€	742.7		€	709.1
Operating costs and expenses (exclusive of depreciation and amortization, shown separately
below):
Programming and other direct costs of services (note 11).............................................................		235.8			236.2
Other operating (note 11)...............................................................................................................		101.6			90.5
Selling, general and administrative (SG&A) (note 11).................................................................		141.1			150.3
Related-partyfees and allocations, net (note 11)...........................................................................		41.4			38.4
Depreciation and amortization.......................................................................................................		234.4			228.2
Impairment, restructuring and other operating items, net..............................................................		0.8			19.1
		755.1			762.7
Operating loss ............................................................................................................................		(12.4)			(53.6)
Non-operating income (expense):
Interest expense (note 11)...............................................................................................................		(61.9)			(65.8)
Realized and unrealized gains on derivative instruments, net (note 5) ..........................................		196.2			337.9
Foreign currency transaction losses, net.........................................................................................		(1.1)			(274.2)
Other income, net (note 11)............................................................................................................		9.5			4.7
		142.7			2.6
Earnings (loss) from continuing operations before income taxes ...............................................		130.3			(51.0)
Income tax benefit (note 10) .............................................................................................................		15.0			20.4
Earnings (loss) from continuing operations ..............................................................................		145.3			(30.6)
Earnings from discontinued operations, net of taxes (note 4)...........................................................		16.3			3.5
Net earnings (loss).....................................................................................................................		161.6			(27.1)
Net earnings attributable to noncontrolling interests ........................................................................		(0.8)			(0.8)
Net earnings (loss) attributable to parent entities.....................................................................	€	160.8		€	(27.9)

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

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