LIBERTY LATIN AMERICA

Q1 2020 INVESTOR CALL

May 6, 2020

Part of Liberty Latin America

"SAFE HARBOR"

FORWARD-LOOKING STATEMENT | DEFINED TERMS

FORWARD-LOOKING STATEMENTS AND DISCLAIMER

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our strategies, priorities, financial performance and guidance; regarding the COVID-19 pandemic, our response to such pandemic and the anticipated impact of such crisis on our business and financial results; our customer value propositions; product innovation and bringing new products to our markets; the acquisition of AT&T's wireless and wireline operations in Puerto Rico and the U.S. Virgin Islands ("the AT&T Acquisition"), including the anticipated consequences and benefits of the transaction and the expected timing of the transaction; new build and upgrade initiatives; the strength of our balance sheet and tenor of our debt; and other information and statements that are not historical fact. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements. These risks and uncertainties include events that are outside of our control, such as hurricanes and other natural disasters, political or social events, and pandemics, such as COVID-19, the uncertainties surrounding such events and efforts to contain any pandemic, the ability and cost to restore networks in the markets impacted by hurricanes or generally to respond to any such events; the continued use by subscribers and potential subscribers of our services and their willingness to upgrade to our more advanced offerings; our ability to meet challenges from competition, to manage rapid technological change or to maintain or increase rates to our subscribers or to pass through increased costs to our subscribers; the effects of changes in laws or regulation; general economic factors; our ability to obtain regulatory approval and satisfy conditions associated with acquisitions and dispositions, including the AT&T Acquisition; our ability to successfully acquire and integrate new businesses and realize anticipated efficiencies from acquired businesses; the availability of attractive programming for our video services and the costs associated with such programming; our ability to achieve forecasted financial and operating

targets; the outcome of any pending or threatened litigation; the ability of our operating companies to access cash of their respective subsidiaries; the impact of our operating companies' future financial performance, or market conditions generally, on the availability, terms and deployment of capital; fluctuations in currency exchange and interest rates; the ability of suppliers and vendors (including our third-party wireless network provider under our MVNO arrangement) to timely deliver quality products, equipment, software, services and access; our ability to adequately forecast and plan future network requirements including the costs and benefits associated with network expansions; and other factors detailed from time to time in our filings with the Securities and Exchange Commission, including our most recently filed Form 10-K and Form 10-Q. These forward-looking statements speak only as of the date of this presentation. We expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

INFORMATION RELATING TO DEFINED TERMS

Please refer to the Appendix at the end of this presentation, as well as our SEC filings, for the definitions of the following terms which may be used herein including: Rebased Growth, Operating Cash Flow ("OCF"), Adjusted Free Cash Flow ("Adjusted FCF"), Revenue Generating Units ("RGUs"), as well as non- GAAP reconciliations, where applicable.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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AGENDA

  1. |
  2. |
  3. |

EXECUTIVE SUMMARY

Q1 2020 RESULTS

APPENDIX

Part of Liberty Latin America

LIBERTY LATIN AMERICA | KEY MESSAGES(1)

STRONG START TO 2020, COVID-19 TO IMPACT REST OF YEAR

1

Strong RGU adds of 60,000; record quarter for C&W up 22% year-over-year

2

Robust financial performance; rebased revenue growth of 2%, OCF up 4%

3

Expanded high-speed footprint; added / upgraded ~80,000 homes across markets

4

Comprehensive strategy established to operate in COVID-19 environment

5

AT&T(2) PR & USVI acquisition expected to close in H2 2020

  1. See Appendix for definitions and additional information.
  2. AT&T PR & USVI acquisition is pending and subject to the satisfaction of customary closing conditions.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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Q1 OPERATIONAL HIGHLIGHTS(1)

CONTINUING OPERATING EXECUTION INTO Q1

FIXED RGUs | IN THOUSANDS

ORGANIC ADDS +38

1,818 1,853 1,873 1,905

1,702

Q1 19

Q2 19

Q3 19

Q4 19

Q1 20

MOBILE SUBSCRIBERS | IN THOUSANDS

ORGANIC ADDS

(43)

3,247

3,394

3,393

3,358

3,315

Q1 19

Q2 19

Q3 19

Q4 19

Q1 20

  • Best Q1 RGU additions since 2016
  • Mobile driven by seasonality and competition

FIXED RGUs | IN THOUSANDS

ORGANIC ADDS

+13

3,390

3,402

3,369

3,344

3,313

Q1 19

Q2 19

Q3 19

Q4 19

Q1 20

MOBILE SUBSCRIBERS | IN THOUSANDS

ORGANIC ADDS

+4

266

276

289

301

305

Q1 19

Q2 19

Q3 19

Q4 19

Q1 20

  • Strong fixed additions driven by broadband
  • VTR consistent growth quarter in mobile

FIXED RGUs | IN THOUSANDS

ORGANIC ADDS

+9

760

765

772

785

794

Q1 19

Q2 19

Q3 19

Q4 19

Q1 20

  • Broadband strength over leading network
  • Integration planning for AT&T assets

(1) See Appendix for definitions and additional information.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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COVID-19 | KEY FOCUS AREAS

ANALYTICAL APPROACH DRIVING DECISION MAKING & CHANGE THROUGH AGILE ORGANIZATION

1

2

3

4

5

6

7

8

PEOPLE & SAFETY

NETWORK

COMMERCIAL

GOVERNMENT AFFAIRS

COVID-19 TASK FORCE

FINANCE & TREASURY

M&A

GOVERNANCE

  • Focusing on safety, protecting colleagues & changing workplace practices
  • Proactive actions from governments in our markets to "flatten the curve"
  • Delivering resilient and leading connectivity despite significant utilization growth
  • Continuing to expand footprint
  • Enabling customers to safely purchase services - order, installation, top-up
  • Customer service continuity; innovative packages
  • Collaborating with governments & regulators across our markets
  • Delivering public services such as education and access to COVID-19 information
  • Extensive scenario planning
  • Innovating and preparing our Company for a post COVID-19 world
  • Maintaining adequate liquidity and robust balance sheet
  • Increasing efficiency and allocating capital prudently
  • Focused on completing acquisition of AT&T's PR and USVI assets
  • Potential opportunities from market dislocation
  • Experienced and knowledgeable board
  • Engaging directly and transparently with all stakeholders

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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PEOPLE & SAFETY

COMMITMENT TO COLLEAGUES & PROACTIVE ACTIONS FROM GOVERNMENTS TO FLATTEN THE CURVE

1

ENABLING

PROTECTING

COLLEAGUES TO

THOSE WHO

WORK-FROM-

CANNOT WORK-

HOME

FROM-HOME

EMPLOYEE

ENGAGEMENT &

WELLBEING

"STAY AT HOME"(1)

MOBILITY CHANGE | PERCENTAGE

50%

Chile & Panama started "Stay

at Home" prior to US showing

40%

~2x growth of people staying in

30%

20%

10%

0%

08 Mar

15 Mar

22 Mar

RETAIL & RECREATION(1)

MOBILITY CHANGE | PERCENTAGE

20%

0%

-20%

-40%

-60%

-80%

-100%

08 Mar

15 Mar

22 Mar

29 Mar

05 Apr

12 Apr

Toughest restrictions in Chile & Panama showing ~2x reduction vs. US

29 Mar

05 Apr

12 Apr

(1) Source: Community Mobility Reports, Google, April 2020.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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NETWORK

PROVIDING GOOD SERVICE FOR OUR CUSTOMERS DESPITE UTILIZATION GROWTH

FIXED NETWORK

OTHERS

PEAK NETWORK THROUGHPUT | TBPS

+38%-7%

HIGHER

2 BANDWIDTH

UTILIZATION

3.8

5.24.8

EXPANDED

SUBSEA

CAPACITY

FIXED NETWORK

INCREASED

MOBILE CORE

UPGRADES

CAPACITY

01 Mar

PEAK

26 Apr

SUBSEA NETWORK(1)

PEAK NETWORK THROUGHPUT | TBPS

+47%-7%

1.71.6

1.2

01 Mar

PEAK

26 Apr

MOBILE NETWORK

PEAK NETWORK THROUGHPUT | GBPS

+11%-5%

87

97

92

01 Mar

PEAK

26 Apr

(1) Subsea network peak throughput represents LLA usage only.

Source: company information

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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COMMERCIAL

NEW PROPOSITIONS ADAPTING TO RETAIL STORE CLOSINGS & CHALLENGES FACING B2B CUSTOMERS

Agile staff

Virtual stores

Assisted & zero-

Moving call center

agents and store

SALES

agents serving and

touch self-install

personnel to

selling from home

telesales and

LivePerson

Promote digital

Redefine

3

CASH

& non-contact

disconnect

platforms

policies to assist

COLLECTION

Collection vans in

customers with

Flow markets

challenges

Work-from-home

Capacity increases

Working with

support - cloud-

B2B

for subsea and

customers through

based voice and

enterprise

difficulties

video conference

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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AGENDA

  1. |
  2. |
  3. |

EXECUTIVE SUMMARY

Q1 2020 RESULTS

APPENDIX

Part of Liberty Latin America

Q1 2020 FINANCIAL RESULTS(1)

SOLID START TO THE YEAR

REVENUE

IN USD MILLIONS

OCF

IN USD MILLIONS

P&E ADDITIONS

ADJUSTED FCF

IN USD MILLIONS; AS % OF REVENUE

IN USD MILLIONS

2%

REBASED

943

931

4%

REBASED

366

364

15%

14%

(97)

Q1 19

Q1 20

Q1 19

Q1 20

139

133

Q1 19

Q1 20

Includes $67m of insurance receipts

48

(49)

Q1 19

Q1 20

(1) See Appendix for definitions and additional information.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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Q1 2020 SEGMENT RESULTS(1)

REBASED GROWTH ACROSS EACH SEGMENT

Q1 2020 RESULTS

IN USD MILLIONS

589

233

12%

AS % OF

REVENUE

71

REVENUE OCF P&E ADDITIONS

REBASED

2%

6%

VS PY

Q1 2020 RESULTS

Q1 2020 RESULTS

IN USD MILLIONS

IN USD MILLIONS

240

19%

105

13%

AS % OF

REVENUE

AS % OF

REVENUE

93

51

45

13

REVENUE

OCF

P&E

REVENUE

OCF

P&E

ADDITIONS

ADDITIONS

1%

2%

3%

4%

(1) See Appendix for definitions and additional information.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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COVID-19 CONSIDERATIONS

ADVERSE FINANCIAL IMPACT IS EXPECTED TO VARY BY SEGMENT

FACTORS INFLUENCING PERFORMANCE

SEGMENT CONSIDERATIONS(1)

FIXED

B2B

MOBILE

SUBSEA

FINANCIAL & OPERATIONAL IMPLICATIONS

TRAVEL &

27% 25%

$589M

• Restrictive lockdowns/curfews in place

Caribbean economies reliant on tourism

High concentration in B2B & mobile revenue

Withdrawing 2020 financial guidance due to the

uncertainty associated with COVID-19

Minimal financial impact in Q1

LOCKDOWN

RESTRICTIONS

PRODUCT &

12%

REVENUE

36%

7%

3%

• Collections dependent in part on interactions,

as ~65% of stores open

• Rolling lockdowns in VTR

• Expect impact to be more pronounced

beginning in Q2, especially in C&W

• Monitoring macro-economic factors across

markets

• Responding to government requests to keep

consumers connected by adopting lifeline plans

with essential features

REVENUE MIX

DEGREE OF

DIGITALIZATION

(1) Revenue data for the three months ended March 31, 2020.

$240M

REVENUE

90%

13%

$105M

REVENUE

87%

• Chile govt passed significant stimulus

• VTR collections highly digitalized

• >95% of revenue is fixed & postpaid mobile

• Restrictive lockdown by mid-March

• Accepted FCC "Keep Connected Pledge"

• April consumer collections on par w/March

• 87% of total revenue is fixed-residential, of

which ~50% is broadband

• Collections will remain difficult, particularly in

markets with lockdowns, low digitalization and/or

challenging economies

• $150 million of fixed operating cost & capex

reductions

• Variable costs & capex are also expected

to reduce with revenue compression

• Managing LLA for positive free cash flow in 2020

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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ROBUST BALANCE SHEET

EXTENSIVELY HEDGED WITH EXTENDED MATURITY PROFILE

AS AT MARCH 31, 2020

LIQUIDITY(2)

MAINTENANCE COVENANT HEADROOM

IN USD MILLIONS

SECURED MAINTENANCE RATIO x TOTAL NET LEVERAGE

$2.2BN

LIQUIDITY(2)

3.8x

NET

LEVERAGE

RATIO

6.4%

FULLY-SWAPPED

BORROWING

COST

$6.1BN

TOTAL NET

DEBT(1)

6.2YEARS

DEBT

WEIGHTED

AVERAGE

TENOR

>90%

INTEREST FIXED

~85%

BALANCE SHEET

MATCHED TO

OCF FUNCTIONAL

CURRENCY

1,593

650

426

CASH

AVAILABLE

5.0x

5.0x

RCF

3.0x

562

687

146

4.4x

SECURED

211

63

2.1x

0.3x

SECURED

119

SECURED

CORP

C&W

VTR

LCPR

C&W

VTR

LCPR

4.1x

3.6x

4.4x

MATURITY SCHEDULE(3)

C&W

LCPR

VTR

CT

CORP

IN USD MILLIONS

2,970

1,840

1,788

1,512

VENDOR FINANCING &

LOCAL FACILITIES

147

158

99

395

66

2020

2021

2022

2023

2024

2025

2026

2027

>2028

  1. Total principal amount of debt and finance lease obligations outstanding, less cash and cash equivalents and the AT&T Acquisition Restricted Cash.
  2. Liquidity refers to cash and cash equivalents, excluding restricted cash, plus the maximum undrawn commitments under subsidiary borrowing facilities. Totals include $14 million of cash and $15 million of available RCF at Cabletica.
  3. Excludes finance lease obligations and includes debt of $1,253 million borrowed by Liberty Puerto Rico to fund the AT&T Acquisition.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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CONCLUSIONS(1)

EARLY RESPONSES ESTABLISH RESILIENT & AGILE OPERATING MODEL

1

Good start to 2020 driven by continued execution of operating strategy

2

Impacts from COVID-19uncertain and will vary by market

3

Extensive planning and actions taken to adjust to changing environment

4

Acquisition of AT&T Puerto Rico and USVI assets expected in H2

5

Remain focused on allocating capital efficiently for shareholder benefit

(1) See Appendix for definitions and additional information.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

15

AGENDA

  1. |
  2. |

EXECUTIVE SUMMARY

Q1 2020 RESULTS

03 | APPENDIX

Part of Liberty Latin America

DEFINITIONS AND ADDITIONAL INFORMATION

FULLY-SWAPPED BORROWING COST

Represents the weighted average interest rate on our debt (excluding finance leases and including vendor financing obligations), including the effects of derivative instruments, original issue premiums or discounts, which includes a discount on the convertible notes issued by Liberty Latin America associated with a conversion option feature, and commitment fees, but excluding the impact of financing costs.

LEVERAGE

Our gross and net leverage ratios are defined as total debt (total principal amount of debt and finance lease obligations outstanding, net of projected derivative principal-related cash payments (receipts)) and net debt to annualized OCF of the latest two quarters. Net debt is defined as total debt (including the convertible notes) less cash, cash equivalents and restricted cash held in escrow at Liberty Puerto Rico that will be used to fund the AT&T Acquisition. For purposes of these calculations, debt is measured using swapped foreign currency rates, consistent with the covenant calculation requirements of our subsidiary debt agreements.

MOBILE SUBSCRIBERS

Our mobile subscriber count represents the number of active subscriber identification module ("SIM") cards in service rather than services provided. For example, if a mobile subscriber has both a data and voice plan on a smartphone this would equate to one mobile subscriber. Alternatively, a subscriber who has a voice and data plan for a mobile handset and a data plan for a laptop (via a dongle) would be counted as two mobile subscribers. Customers who do not pay a recurring monthly fee are excluded from our mobile telephony subscriber counts after periods of inactivity ranging from 30 to 60 days, based on industry standards within the respective country. In a number of countries, our mobile subscribers receive mobile services pursuant to prepaid contracts.

REVENUE GENERATING UNIT ("RGU")

RGU is separately a video RGU, internet RGU or telephony RGU. A home, residential multiple dwelling unit, or commercial unit may contain one or more RGUs. For example, if a residential customer in Chile subscribed to our video service, fixed-line telephony service and broadband internet service, the customer would constitute three RGUs. RGUs are generally counted on a unique premises basis such that a given premises does not count as more than one RGU for any given service. On the other hand, if an individual receives one of our services in two premises (e.g., a primary home and a vacation home), that individual will count as two RGUs for that service. Each bundled video, internet or telephony service is counted as a separate RGU regardless of the nature of any bundling discount or promotion. Non-

paying subscribers are counted as RGUs during their free promotional service period. Some of these subscribers may choose to disconnect after their free service period. Services offered without charge on a long-term basis (e.g., VIP subscribers or free service to employees) generally are not counted as RGUs. We do not include subscriptions to mobile services in our externally reported RGU counts. In this regard, our RGU counts exclude our separately reported postpaid and prepaid mobile subscribers.

U.S. GAAP

Generally accepted accounting principles in the United States.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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DEFINITIONS AND ADDITIONAL INFORMATION

INFORMATION ON REBASED GROWTH

For purposes of calculating rebased growth rates on a comparable basis for all businesses that we owned during 2020, we have adjusted our historical revenue and OCF to (i) include the pre-acquisition revenue and OCF of UTS that was acquired during 2019 in our rebased amounts for the three months ended March 31, 2019, (ii) exclude the revenue and OCF of the Seychelles that was disposed of during 2019 from our rebased amounts for three months ended March 31, 2019 and (iii) reflect the translation of our rebased amounts for three months ended March 31, 2019 at the applicable average foreign currency exchange rates that were used to translate our results for three months ended March 31, 2020. We have reflected the revenue and OCF of UTS in our 2019 rebased amounts based on what we believe to be the most reliable information that is currently available to us (generally pre-acquisition financial statements), as adjusted for the estimated effects of (a) any significant differences between U.S. GAAP and local generally accepted accounting principles, (b) any significant effects of acquisition accounting adjustments, (c) any significant differences between our accounting policies and those of the acquired entities and (d) other items we deem appropriate. We do not adjust pre-acquisition periods to eliminate nonrecurring items or to give retroactive effect to any changes in estimates that might be implemented during post-acquisition periods. As we did not own or operate UTS during the pre-acquisition periods, no assurance can be given that we have identified all adjustments necessary to present their revenue and OCF on a basis that is comparable to the corresponding post-acquisition amounts that are included in our historical results or that the pre-acquisition financial statements we have relied upon do not contain

undetected errors. The adjustments reflected in our rebased amounts have not been prepared with a view towards complying with Article 11 of Regulation S-X. In addition, the rebased growth percentages are not necessarily indicative of the revenue and OCF that would have occurred if these transactions had occurred on the dates assumed for purposes of calculating our rebased amounts or the revenue and OCF that will occur in the future. The rebased growth percentages have been presented as a basis for assessing growth rates on a comparable basis, and are not presented as a measure of our pro forma financial performance. The following table provides the aforementioned adjustments made to the revenue and OCF amounts for three months ended March 31, 2019 to derive our rebased growth rates. Due to rounding, certain rebased growth rate percentages may not recalculate. In addition, on April 1, 2019 a small B2B operation in Puerto Rico was transferred from our C&W segment to our Liberty Puerto Rico segment, and on January 1, 2020, our captive insurance operation was transferred from our C&W segment to our corporate operations. For purposes of calculating rebased growth rates for our C&W segment, Liberty Puerto Rico segment and corporate operations, we have adjusted the historical revenue and OCF, as applicable, of these segments and operations for the three months ended March 31, 2019 to reflect the aforementioned transfers. The rebased revenue and OCF adjustments for the small B2B operation in Puerto Rico were $3 million and $1 million, respectively, for the three months ended March 31, 2019 and the rebased OCF adjustment for the transfer of our captive insurance operation was $2 million for the three months ended March 31, 2019. The amounts in the table below exclude the revenue and OCF, as applicable, of the transferred operations since such amounts eliminate in consolidation.

Revenue

OCF

Three months ended March 31, 2020

Three months ended March 31, 2020

in millions

Acquisition

$ 34.0)

$ 6.9)

Disposal

(14.9)

(5.6)

Foreign currency

(46.7)

(17.7)

Total

$ (27.6)

$ (16.4)

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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OPERATING CASH FLOW DEFINITION AND RECONCILIATIONS

As used herein, OCF has the same meaning as the term "Adjusted OIBDA" that is referenced in our Form 10-Q. OCF is the primary measure used by our chief operating decision maker to evaluate segment operating performance. OCF is also a key factor that is used by our internal decision makers to (i) determine how to allocate resources to segments and (ii) evaluate the effectiveness of our management for purposes of incentive compensation plans. As we use the term, OCF is defined as operating income or loss before depreciation and amortization, share-based compensation, provisions and provision releases related to significant litigation and impairment, restructuring and other operating items. Other operating items include (i) gains and losses on the disposition of long-lived assets, (ii) third-party costs directly associated with successful and unsuccessful acquisitions and dispositions, including legal, advisory and due diligence fees, as applicable, and (iii) other acquisition-related items, such as gains and losses on the settlement of contingent consideration. Our internal decision makers believe OCF is a

Operating income

Share-based compensation expense

Depreciation and amortization

Impairment, restructuring and other operating items, net

Total OCF

meaningful measure because it represents a transparent view of our recurring operating performance that is unaffected by our capital structure and allows management to (i) readily view operating trends, (ii) perform analytical comparisons and benchmarking between segments and (iii) identify strategies to improve operating performance in the different countries in which we operate. We believe our OCF measure is useful to investors because it is one of the bases for comparing our performance with the performance of other companies in the same or similar industries, although our measure may not be directly comparable to similar measures used by other public companies. OCF should be viewed as a measure of operating performance that is a supplement to, and not a substitute for, operating income or loss, net earnings or loss, cash flow from operating activities and other U.S. GAAP measures of income or cash flows. A reconciliation of our operating income to total OCF is presented in the following table:

Three months ended

March 31, 2019

March 31, 2020

in millions

$ 113.3

$ 107.8

14.7

23.8

217.3

213.5

20.5

18.8

$ 365.8

$ 363.9

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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ADJUSTED FREE CASH FLOW DEFINITION AND RECONCILIATIONS

We define Adjusted FCF as net cash provided by our operating activities, plus (i) cash payments for third- party costs directly associated with successful and unsuccessful acquisitions and dispositions, (ii) expenses financed by an intermediary, (iii) insurance recoveries related to damaged and destroyed property and equipment, and (iv) certain net interest payments (receipts) incurred or received, including associated derivative instrument payments and receipts, in advance of a significant acquisition, less (a) capital expenditures, (b) distributions to noncontrolling interest owners, (c) principal payments on amounts financed by vendors and intermediaries and (d) principal payments on finance leases. As a result of the pending AT&T Acquisition, we have changed the way we define adjusted free cash flow effective December 31, 2019 to adjust (i) for pre-acquisition interest incurred on the incremental debt issued in advance of the AT&T Acquisition, (ii) to exclude pre-acquisition interest earned related to the AT&T Acquisition Restricted Cash that will be used to fund a portion of the AT&T Acquisition and (iii) the

impact of associated pre-acquisition derivative contracts. As the debt was incurred directly as a result of the pending acquisition and will be supported by cash flows of the acquisition from the date of the closing, we believe this results in the most meaningful presentation of our Adjusted FCF. We believe that our presentation of Adjusted FCF provides useful information to our investors because this measure can be used to gauge our ability to service debt and fund new investment opportunities. Adjusted FCF should not be understood to represent our ability to fund discretionary amounts, as we have various mandatory and contractual obligations, including debt repayments, which are not deducted to arrive at this amount. Investors should view Adjusted FCF as a supplement to, and not a substitute for, U.S. GAAP measures of liquidity included in our condensed consolidated statements of cash flows. The following table provides the reconciliation of our net cash provided by operating activities to Adjusted FCF for the indicated periods:

Three months ended

March 31, 2019

March 31, 2020

in millions

Net cash provided by operating activities

$ 187.8)

$ 114.9)

Cash payments (recoveries) for direct acquisition and disposition costs

(1.3)

1.4)

Expenses financed by an intermediary(1)

31.3)

32.5)

Capital expenditures

(159.6)

(149.2)

Recovery on damaged or destroyed property and equipment

33.9)

-

Distributions to noncontrolling interest owners

-

(0.7)

Principal payments on amounts financed by vendors and intermediaries

(42.3)

(43.8)

Pre-acquisition net interest payments (receipts)(2)

-

(3.0)

Principal payments on finance leases

(1.4)

(0.6)

Adjusted FCF

$ 48.4)

$ (48.5)

  1. For purposes of our condensed consolidated statements of cash flows, expenses, including value-added taxes, financed by an intermediary are treated as hypothetical operating cash outflows and hypothetical financing cash inflows when the expenses are incurred. When we pay the financing intermediary, we record financing cash outflows in our condensed consolidated statements of cash flows. For purposes of our Adjusted FCF definition, we add back the hypothetical operating cash outflows when these financed expenses are incurred and deduct the financing cash outflows when we pay the financing intermediary.
  2. Amount primarily represents interest received on the AT&T Acquisition Restricted Cash.

LIBERTY LATIN AMERICA | Q1 2020 INVESTOR CALL | MAY 6, 2020

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Liberty Latin America Ltd. published this content on 06 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2020 13:43:08 UTC