130718 Ziggo Q2 2013 Earnings Release

7/27/2019 130718 Ziggo Q2 2013 Earnings Release

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ziggo.com

Utrecht, July 18, 2013Ziggo N.V. Q2 2013 Results

Further investments to improverevenue momentumInvestments focused on Ziggo WifiSpots, launch of mobileofferings and customer retention

Successful launch of our popular Ziggo WifiSpots with 850,000hotspots to be activated in August

Ziggo prepares to launch an MVNO-based mobile offering in 2nd halfof 2013

Newly introduced campaigns in Q2 targeted on customer retention B2B continues to record strong organic revenue growth; first

contribution from acquisition of Esprit Telecom Revised outlook for full year 2013 due to higher investments

Operational highlights Q2 2013 All-in-1 bundle subscribers up 20,000 in Q2, resulting in 1.4% q-o-q growth and 7.1% y-o-y

growth; All-in-1 bundle penetration reaches 53.7% of our consumer customer base Internet subscribers up 20,000 in Q2, representing 1.1% q-o-q growth and 4.6% y-o-y growth Telephony usage revenue down 5.2% y-o-y (down 1.3% excluding FTA rate reduction)

Digital pay TV, including Video on Demand, up 1.0% y-o-y B2B adds over 3,500 subscriptions for its business bundles 150,000 set-top boxes made interactive through SGUI, supporting another quarter of strong

growth in Video-on-Demand transactions

Financial highlights Q2 2013 Revenues up 1.4% y-o-y to 391.9 million (down 0.2% excluding Esprit Telecom). Underlying

revenues excluding set-top box sales and other revenues up 0.6% organically, despite a 5.2%decline in telephony usage revenues.

Adjusted EBITDA 221.0 million, up 0.8% y-o-y. Excluding Esprit Telecom, EBITDA up 0.3% Free cash flow 95.0 million, down 40.1% y-o-y due to growth in capital expenditure and

acquisition of Esprit Telecom Net profit up to 88.9 million, from 64.4 million in Q2 2012 Earnings per share 0.44

Leverage ratio down to 3.41x compared to 3.42x at year-end 2012

CEO Bernard Dijkhuizen:During the second quarter we experienced similar market dynamics as in the last few quarters.Our sales campaigns for the All-in-1 bundle were successful and continued to deliver good results,taking into account Q2 seasonality. At the same time, churn levels continued to be relatively highhistorically, particularly for lower spending customers, having an impact on revenue growth in theconsumer market. In order to reduce churn we have developed and launched several programsduring the second quarter targeting to improve customer retention. Our focus on sales of All-in-1bundles and retention had an adverse effect on marketing initiatives for premium TV, contributingto a limited growth in digital pay TV this quarter.


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In addition to our loyalty campaigns, we prepared the increase of internet speeds and started toroll out the popular Ziggo WifiSpots. Ziggo WifiSpots creates through the public channel of the

modems from all Ziggo internet customers a large number of Wifi-hotspot access points in ourfootprint for Ziggo customers. The roll out will result in over 850,000 hotspots by the end of thethird quarter and close to 1 million before the end of the year. This new service strongly supportsthe appeal and attractiveness of our services to our customers and the response by customers andmedia has been overwhelming.

To further leverage the benefits of the Ziggo WiFiSpots we will also launch an MVNO-based mobileoffering for existing customers in the second half of this year. This proposition will offer anattractive price for a bundle of call minutes/SMS and mobile data in combination with high qualityinternet access through the Ziggo WifiSpots. This proposition will grow over time to a fullyconverged mobile offering.

While in consumer markets RGUs and revenue growth came in below our expectations, we were

pleased to see continued strong organic revenue growth in our B2B operations. On top of that webenefited from a first contribution from our acquisition Esprit Telecom. This acquisition willstimulate organic revenue growth in the SME market (small and medium-sized enterprises) goingforward, in addition to growth in the small and home offices market through our office bundles.

OutlookFollowing the decision to further step up our campaigns and investments in customer retention, ourZiggo WifiSpots and the launch of our mobile offering, and taking into consideration the higherthan anticipated churn in the first half year, our outlook for the full year 2013 will change. We nowanticipate 2013 organic revenue growth (excluding revenues from other sources) to be around1%, whilst adjusted EBITDA is expected to be in line with last year. Our capital expenditure for2013 is expected to increase to a range of 330-340 million primarily due to higher investment incustomer premises and equipment to support customer retention and investments for the launch ofZiggo mobile.

In line with the dividend policy, Ziggo intends to pay an interim dividend of 190 million, equal to0.95 per share, in September 2013.

Important datesThis year, Ziggo expects to publish its quarterly results on the following dates:Q3 2013 October 18, 2013FY and Q4 2013 January 23, 2014

Interim dividend 2013:September 3, 2013 Ex-dividend (at opening)September 5, 2013 Record date (after close)September 10, 2013 Payment date


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Financial highlights (unaudited)

million 2013 2012 Change 2013 2012 Change

Subscriptions + usage 347.5 347.7 (0.1%) 697.0 693.5 0.5%

Other revenues 9.7 12.7 (23.9%) 19.7 28.7 (31.1%)

Total consumer revenues 357.2 360.4 (0.9%) 716.7 722.1 (0.8%)

Business services revenues 34.7 26.0 33.4% 63.0 51.4 22.7%

Total revenues 391.9 386.5 1.4% 779.8 773.5 0.8%

Cost of goods sold 76.0 77.2 (1.6%) 147.3 155.7 (5.4%)

Gross margin 315.9 309.2 2.2% 632.5 617.8 2.4%

% of total revenues 80.6% 80.0% 81.1% 79.9%

Operating expenses 76.6 75.5 1.5% 153.0 151.0 1.3%

Marketing & Sales 18.3 14.6 25.6% 35.8 31.6 13.5%

Total operating expenses 94.9 90.1 5.4% 188.9 182.6 3.4%


Adjusted EBITDA1 221.0 219.2 0.8% 443.6 435.3 1.9%


IPO related costs 0.0 0.0 0.0 39.7

EBITDA2 221.0 219.2 0.8% 443.6 395.6 12.2%

Depreciation and amortization 68.8 71.2 (3.3%) 136.6 142.6 (4.2%)

Operating income 152.2 148.0 2.9% 307.0 252.9 21.4%

Share based payments 0.0 0.0 0.0 20.0 (100.0%)

Movement in provisions (3.4) (1.0) 249.5% (4.7) (1.3) 245.8%

Change in net working capital (25.3) (6.7) 279.4% (16.7) 22.1 (175.6%)

Cash flow from operating activities 192.3 211.5 (9.1%) 422.3 436.3 (3.2%)

Capital expenditure (Capex) 79.5 50.5 57.5% 146.1 120.7 21.1%


Acquisition 15.2 0.0 15.2 0.0

Interest received 0.0 (0.2) (100.3%) (0.0) (0.4) (98.1%)

Change in financial assets 0.0 0.0 0.1 (0.1)

Funding joint venture 2.6 2.5 3.8% 5.7 9.5 (40.1%)

Free cash flow 95.0 158.7 (40.1%) 255.1 306.6 (16.8%)


Adjusted EBITDA - Capex 141.5 168.7 (16.1%) 297.5 314.6 (5.4%)


Net result 88.9 64.4 38.0% 181.6 49.9 263.9%

Outstanding shares (# m) 200.0 200.0 200.0 200.0

Earnings per share () 0.44 0.32 38.0% 0.91 0.25 263.9%

Q2 YTD June


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Operational highlights (in thousands) (unaudited)

Footprint3 (thousands) 30 Jun 2013 31 Mar 2013 Change 30 Jun 2012 Change

Homes passed 4,234 4,211 23 4,218 0.4%

Analog TV only 553 591 (39) 716 (22.9%)

Analog and digital TV4 2,265 2,260 5 2,242 1.0%

Total TV customers 2,818 2,851 (33) 2,959 (4.8%)

Digital pay TV subscribers 862 909 (47) 951 (9.4%)

Internet subscribers 1,832 1,812 20 1,751 4.6%

Telephony subscribers 1,549 1,525 23 1,444 7.3%

Total RGUs5

7,060 7,097 (37) 7,104 (0.6%)

Total RGUs consumer 6,845 6,891 (46) 6,935 (1.3%)

of which bundle subscribers 6 1,446 1,426 20 1,351 7.1%

RGUs per customer (#)7

2.54 2.52 0.02 2.43 4.5%

ARPU in Q ( per month)8 42.75 42.34 0.41 40.43 5.7%

ARPU YTD ( per month)8 42.54 42.34 0.20 40.06 6.2%

Total RGUs B2B 214 205 9 169 26.8%


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NotePlease note that the results published in this press release are the consolidated results of Ziggo N.V. (Ziggo),

and not those of Ziggo Bond Company B.V., the entity that we reported on prior to Q1 2012. As a consequenceof the initial public offering of 25% of its ordinary shares on March 21, 2012, Ziggo is now reporting quarterlyresults at the level of the entity that issued the ordinary shares at NYSE Euronext Amsterdam, referred to as

Ziggo. A reconciliation of the results for Ziggo N.V. to Ziggo Bond Company B.V. is attached as a separateschedule to this earnings release, and an explanation of the most important reconciling items is provided at theend of this release. Ziggo was incorporated on April 1, 2011 and indirectly acquired all of the issued andoutstanding shares of Ziggo Bond Company B.V. on March 20, 2012.

Definitions/Footnotes(1) Adjusted EBITDA refers to EBITDA, adjusted to eliminate the effects of operating expenses incurred in

connection with the initial public offering of ordinary shares of the company on March 21, 2012, whichwere 0.0 million respectively 0.0 million for the quarter and half year ended June 30, 2013 and 0.0million respectively 39.7 million for the quarter and half year ended June 30, 2012.

(2) EBITDA represents operating income plus depreciation and amortization. Although EBITDA should not beconsidered a substitute for operating income and net cash flow from operating activities, we believe that it

provides useful information regarding our ability to meet future debt service requirements.(3) Operating data relating to our footprint and RGUs are presented as at the end of the period indicated.(4) Digital television RGUs equals the total number of standard TV subscribers who have activated a smart

card as at the end of the periods indicated. As a result, digital TV RGUs represents the number ofsubscribers who have access to our digital TV services. In any given period, not all of these digital TVRGUs will have subscribed to additional digital pay TV services. As at June 30, 2013, 862,000 of our totaldigital TV RGUs subscribed to one or more of our digital pay TV services.

(5) Total RGUs are calculated as the sum of total standard TV subscribers, digital pay TV subscribers, internetsubscribers and telephony subscribers which are serviced by our coaxial products for both the consumerand the business markets. Total consumer RGUs excludes the subscriptions for our products Office Basis(31,909), Office Plus (1,291) and Internet Plus (10,143) targeted at SOHO and small businesses and ourcollective TV contracts TOM and TOMi (representing 80,000 RGUs), as these coaxial products are servicedby our business division and revenues generated through these products are recognized as businessservice revenues. These products represent 124,000 TV RGUs, 14,000 digital pay TV RGUs, 43,000internet RGUs and 33,000 telephony RGUs.

(6) Besides 1,446,000 subscribers who subscribed to the All-in 1 bundle, 12,000 customers subscribed tostandard TV, internet and telephony on an individual product basis instead of an All-in-1 bundle.(7) RGUs per customer is the total number of consumer RGUs (6,845,000 as at June 30, 2013) divided by the

total number of consumer standard TV subscribers (2,694,000 as at June 30, 2013).(8) Average Revenue per User (ARPU) for the consumer market is calculated as the sum of total standard TV,

digital pay television, internet, telephony (including call charges and interconnection revenue) and All-in-1bundle subscription revenues generated in the consumer market for the period divided by the number ofmonths used and divided by the periods average monthly total standard TV RGUs. It excludes revenuefrom other sources, including installation fees and set-top box sales.

(9) We have changed the definition of net debt for the calculation of the leverage. Net debt is defined as theoutstanding balance of the principal amount of our borrowings plus the accrued interest on theseborrowings and the market-to-market value of the derivative financial instruments, reduced by thebalance for cash and cash equivalents. Before the balance of accrued interest and the market-to-marketvalue of the derivative financial instruments was not included in the calculation of net debt.

About ZiggoZiggo is a Dutch provider of entertainment, information and communication through television, internet andtelephony services. The company serves around 2.8 million households, with over 1.8 million internetsubscribers, almost 2.3 million subscribers for digital television and 1.5 million telephony subscribers. Business-to-business subscribers use services such as data communication, telephony, television and internet. Thecompany owns a next-generation network capable of providing the bandwidth required for all future servicescurrently foreseen. More information on Ziggo can be found on: www.ziggo.com.

Not for publication

For more information please contact:PressMartijn JonkerDeputy Corporate Communications Director+31 (0)88 717 2419 | [email protected]

Analysts and InvestorsWouter van de PutteCorporate Finance & Investor Relations Director+31 (0)88 717 1799 | [email protected]


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Consumer products & services

The second quarter of 2013 showed similar trends for RGUs as the previous quarters. Althoughsales and marketing efforts were again successful, continued strong competition in the consumermarket kept churn ahead of our own targets and ahead of the level for the comparable period inthe previous year. Churn is relatively higher among subscriptions to TV-only and the lower tierinternet (Z1) and lower tier All-in-1 bundle subscriptions. In order to address churn we announcedcertain improvements in our propositions during the quarter, including an increase in internetspeeds, the launch of WifiSpots and attractively priced dual-play propositions. Furthermore, welaunched a number of campaigns focusing on customer retention to address churn. The effects ofthese campaigns should become visible in the second half of 2013. During Q2, customer churn forthe All-in-1 bundles was 4.8% in total, compared to 6.2% for the previous quarter and 4.3% forthe comparable quarter in 2012. These percentages are based on yearly churn rates.

At the end of June 2013, total RGUs in the consumer market reached 6.8 million. In Q2 2013,Ziggo lost 46,000 RGUs as a result of a net churn of 35,000 subscribers and a decline in RGUs fordigital pay TV of 48,000. This decline was partly offset by an increase in RGUs for internet andtelephony, driven by the growth in subscriptions to the All-in-1 bundle. The decline in RGUs fordigital pay TV was driven by the end of the Dutch football season in May, the depressed consumerconfidence as a result of the decline in the economy and also by the focus of our marketingactivities on customer retention and the sales of All-in-1 instead of premium pay TV.

In Q2 the number of subscribers to the All-in-1 bundle grew by 20,000 (or 1.4%) to 1.45 millionand by 7.1% compared to the prior-year quarter. The number of internet subscribers grew by16,000 to 1.79 million during the quarter and by 3.9% compared to the prior-year quarter, againincreasing our market share for broadband internet.

The number of digital TV subscribers increased slightly by 3,000 to 2.24 million, representing apenetration of 83.0% of our consumer customer base. The number of TV-only subscribersdecreased by 21.4% compared with the same quarter last year, to a total of 848,000 as at June30, 2013. The decrease was mainly caused by the up-selling of the All-in-1 bundle to our TV-onlysubscribers as well as by churn among TV-only subscribers. Churn among TV-only subscribers washigher compared to last year as a result of the market moving towards triple-play and increasedcompetition. Churn on all other product lines, and for All-in-1 in particular, is significantly lowercompared to churn among TV-only subscribers. We will continue to focus on upgrading customersto our All-in-1 bundle from a penetration of 53.7% today.

Detail consumerthousands 30 Jun 2013 31 Mar 2013 Change 30 Jun 2012 Change

Analog TV only 458 496 (38) 630 (27.3%)

Analog and digital TV 2,236 2,233 3 2,223 0.6%

Total TV customers 2,694 2,729 (35) 2,853 (5.6%)

Digital pay TV subscribers 848 895 (48) 940 (9.9%)

Internet subscribers 1,788 1,772 16 1,721 3.9%

Telephony subscribers 1,516 1,495 21 1,421 6.7%

Total RGUs 6,845 6,891 (46) 6,935 (1.3%)

of which bundle subscribers 1,446 1,426 20 1,351 7.1%

RGUs per customer (#) 2.54 2.52 0.02 2.43 4.5%

ARPU for the quarter ( per month) 42.75 42.34 0.41 40.43 5.7%

ARPU YtD ( per month) 42.54 42.34 0.20 40.06 6.2%


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The total number of telephony subscribers rose to 1.52 million at the end of the second quarter, anincrease of 6.7% compared to the same period in 2012. This increase is mainly the result of the

increase in All-in-1 subscriptions. RGUs per customer grew to 2.54, up 4.5% compared to lastyear, following a 1.3% decline in RGUs combined with a lower number of TV-only subscribers.Excluding digital pay TV as a separate RGU, Ziggo recorded an average of 2.23 RGUs per customeror a 6.0% growth compared to the previous year. Blended ARPU rose by 5.7% y-o-y, benefitingfrom a further penetration of All-in-1 bundles in our customer base, a relative higher churn amonglower ARPU TV-only customers and ARPU growth for digital pay TV, partly offset by a decline in theARPU for telephony usage.

Marketing and salesThe successful sales campaign for new bundle subscribers launched in February (Kies je Voordeel)was continued during the second quarter. In addition to an introduction discount or a free ordiscounted set-top box in combination with a minimum contract period of twelve months, newsubscribers to All-in-1 have been given the option, since May, to receive a free tablet, subject to a

minimum contract period of twelve months as well. The campaign focuses on triple play and dualplay.

During the second quarter we also launched a number of new campaigns focusing on customerloyalty and customer retention. With these campaigns, existing customers can purchase aninteractive HD receiver or an interactive HD recorder at an attractive discount.We also launched campaigns targeted on customer retention in areas where FttH is being launchedto highlight the strength and future readiness of the HFC network, the quality and attractiveness ofthe Ziggo product offering and the high internet speeds that we offer (150Mb across our footprint).In addition, we have started targeted win-back campaigns in areas where FttH has been rolled outover the past years, supported by an attractive offer for a high quality product and servicecompared to the FttH experience. These targeted retention and win-back campaigns are supportedby special retention offers granting a free interactive receiver or recorder, in combination with atwelve or twenty-four months contract, respectively.

On June 16, a very popular live concert from the Ziggo Dome (Holland Zingt Hazes) wasbroadcasted for our customers via the Ziggo TV App and via the Ziggo Event Channel. The eventwas viewed by approximately 300,000 Ziggo customers. Later that month, the Ziggo Domecelebrated its first anniversary with a contest in which Ziggo customers could win golden seats,enabling them to attend all concerts in the Ziggo Dome for a whole year. Approximately one millionpeople have attended a concert or event since the Ziggo Dome was opened in June 2012.

On June 30, the ParkPop concert was broadcasted live via the Ziggo Event Channel. During thismusic festival in The Hague, Ziggo WifiSpots were placed in the concert area for the concertgoers,and a social media campaign was launched offering participants the chance to win backstagepasses for the event.

Products and servicesAt the end of April, we launched the roll-out of our WiFi Homezone concept in our footprint, calledZiggo WifiSpots, starting with the activation of 65,000 Ziggo WifiSpots in the city of The Hague.By August, we expect to have activated 850,000 WifiSpots, increasing to approximately one millionby the end of 2013. The WiFi Hotspot concept utilizes the public channel of our WiFi EuroDocsis 3.0modems at the customers premises, enabling all Ziggo internet customers to access high speedinternet in the vicinity of an activated Ziggo modem. The introduction was supported by a specialcommunication campaign through television commercials, advertising and mailings to explain theconcept and communicate the benefits for Ziggo customers: mobility and high quality internetaccess on any device, anywhere in our footprint. Our first step on our way to a fully convergedoffering was warmly welcomed in the Dutch media and by our customers.


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We plan to launch our MVNO-based mobile offering for Ziggo customers in the second half of 2013.This will be an attractively priced SIM-only based proposition for a bundle of call minutes/SMS and

mobile data in combination with high quality internet access through the Ziggo WifiSpots.

On May 14, we announced the increase of our internet speeds for various subscriptions. In thecourse of July 2013, approximately 800,000 internet subscribers will have access to higher internetspeeds at no additional cost. The internet speed for the lowest tier internet subscriptions will beraised from 8/1 MBit/s to 20/2 MBit/s and that for All-in-1 Basis will be raised from 10/1 MBit/s to20/2 MBit/s. This increase further widens the gap with DSL-based offerings, particularly when theactual speed delivered is being considered. In addition, the highest internet speed for internet Z3and All-in-1 Extra will increase to 150/15 MBit/s.

In March, we introduced the first fully cloud-based interactive DVB-C TV service in the world. Bycombining the IP protocol with the DVB-C television standard, even set-top boxes without built-inhardware functionality for interactivity, are able to provide interactive services via a cable. This

new streaming graphical user interface (SGUI) has been nominated for the innovation award by theInternational Broadcast Convention (IBC) in the Content Delivery category. The number ofactivated decoders with the SGUI grew from 60,000 in the first quarter to approximately 150,000decoders in the second quarter, and they currently account for approximately one-third of the VODactivity. As at June 30, we have over 480,000 customers with interactive receivers or recorders, upfrom 410,000 at the end of the first quarter of 2013.

On July 12, the first CI+ 1.3 module was introduced. A common interface module in combinationwith a CI+ certified television enables digital TV subscribers to watch digital TV without a decoderand use a single remote control. The new 1.3 standard provides optional access to interactiveservices, which will become available for our customers in the course of the second half of 2013.This introduction will further increase the number of interactive receivers in our customer base andthus stimulate growth of our video-on-demand services and revenues. Currently, over 900,000 ofour customers watch digital TV using a legacy version of the common interface. Only those

customers who have purchased a certified CI+ 1.3 TV in 2013 will be able to use the interactiveservices associated with the new CI+ 1.3 module.

B2B products & services

During the second quarter, over 3,500 new subscribers were added to our Office Basis, OfficePlus and Internet Plus business bundles, bringing the total B2B bundle subscribers to more than43,300. Our focus on the small and home offices with business bundles is driving growth for B2B.

Following the go-ahead from the Dutch Authority for Consumers and Markets (ACM), we finalizedthe previously announced acquisition of Esprit Telecom, which was consolidated as of May 1, 2013.

Detail B2Bthousands 30 Jun 2013 31 Mar 2013 Change 30 Jun 2012 Change

Analog TV only 95 95 (0) 86 9.6%

Analog and digital TV 29 27 3 20 49.3%

Total TV customers 124 122 2 106 16.9%

Digital pay TV subscribers 14 13 1 10 36.7%

Internet subscribers 43 40 4 30 43.7%

Telephony subscribers 33 30 3 23 45.8%Total RGUs 214 205 9 169 26.8%

Of which:

- Office Basis 31.9 29.4 2.5 22.6 41.3%

- Office Plus 1.3 1.1 0.2 0.2 555.3%

- Internet Plus 10.1 9.3 0.8 7.4 37.5%


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The acquisition enables Ziggo to further expand its services for the business market. EspritTelecom is a leading provider of voice and data services for the SME market in the Netherlands and

has an active sales channel of dealers across the country. The acquisition includes Zoranet, an ICTservice provider that focuses on the retail sector.

OtherOn April 26, we announced that our private equity shareholders, Cinven Cable Investments S. r.l.and WP Holdings IV B.V. ("Cinven" and "Warburg Pincus", respectively) and their co-investors hadsuccessfully placed approximately 34 million ordinary shares of Ziggo N.V. at a price of 25.75 pershare. After the completion of this transaction, Cinven, Warburg Pincus and their co-investors dono longer have an equity interest in Ziggo.

On April 18, Ziggo N.V. 's Annual General Meeting of Shareholders took place. All voting items wereadopted, including the 2012 financial statements, the dividend proposal and the appointment ofMs. Pamela Boumeester as a member of the Supervisory Board.


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Financial performance

RevenueIn Q2 2013 Ziggo generated revenues of 391.9 million, an increase of 1.4% compared to thesame quarter of 2012 (386.5 million) and down 0.2% excluding the revenue contribution fromEsprit Telecom. Esprit Telecom is consolidated as of May 1, 2013 and contributed 6.3 million inrevenues during these first two months. Excluding Esprit Telecom and revenue from othersources, revenues increased by 0.6%, despite a 5.2% (2.4 million) decline in revenues fromtelephony usage. The most important drivers for revenue growth were:

1. continued growth in RGUs for internet and telephony driven by a further uptake of the All-in-1bundle;

2. revenue growth from video-on-demand;3. a price increase for the consumer market effective as of February 1; and4. continued growth in subscriptions to business bundles.

Revenue growth was partly offset by continued elevated churn and a revenue decline for telephonyusage revenue. Business services again reported strong organic growth of 9.2% in the businessmarket, primarily driven by the sale of business bundles to the SME and SoHo markets.

Consumer revenues for Q2 2013 amounted to 357.2 million, down 0.9% on Q2 2012. Excludingrevenue from other sources, consumer revenues were flat. This was mainly driven by theFebruary price increase and a further uptake of our All-in-1 bundle during the year, offset by adecline in telephony usage of 5.2% and churn among TV-only customers in particular. In addition,as part of our promotional offers, new subscribers can opt for an introduction discount for a six-month period which is recognized net of revenues in each of the six months. This discountrepresents approximately 0.3% lower growth of consumer revenues from subscription and usage.Subscriptions to All-in-1 grew by 20,000 additions on balance during the quarter, or 7.1% y-o-y.

This resulted in annual growth in both internet and telephony RGUs by 3.9% and 6.7%respectively, with RGUs for standard TV reporting a net annual decline of 5.6% (5.4% for Q1 2013and 4.2% for Q2 2012). Revenue from subscriptions to standard TV, internet and telephonyincreased by 0.7%. The February 1 price increase and the positive revenue effect from the increasein All-in-1 subscriptions were partly offset by the 4.0% decline in revenue for standard TVsubscriptions.

In addition, the company recorded revenue growth in digital pay TV (including VOD) of 1.0% y-o-ydespite a decline in the number of subscribers to digital pay TV by 93,000 compared to previousyear. The decline in RGUs for digital pay TV was driven by the end of the Dutch football season inMay, the depressed consumer confidence as a result of the decline in the economy and also by thefocus of our marketing activities on customer retention and the sales of All-in-1 instead of premiumpay TV. In addition, in the prior year period the subscriber base benefited from a promotional offerfor the HBO package, which was introduced in February 2012. Revenues from telephony usage

decreased by 5.2% compared to Q2 last year. Revenues generated through our All-in-1 bundleincreased by 7.8%, from 167.5 million in Q2 2012 to 180.6 million in Q2 2013, now representing50.6% of total consumer revenues, versus 46.5% in Q2 2012.

Digital pay TV ARPU increased by 9.3% from 14.83 in Q2 2012 to 16.21 in Q2 2013, drivenpredominantly by an increase in the number of premium TV packages per subscriber and growth inVOD. In Q2 we again experienced a strong y-o-y increase in VOD transactions of more than 56%.In addition to the growing popularity of VOD, growth was also supported by the rise in the numberof customers with an interactive set-top box to almost 482,000 at the end of Q2 2013, comparedto 275,000 at the end of Q2 2012. As a result of the program to upgrade part of the existing set-top boxes in our customer base to enable the interactive functionality through a cloud-basedstreaming graphic user interface (SGUI), we added another 90,000 boxes during the quarter,which means there are now more than 150,000 set-top boxes that use the SGUI.


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We expect to further increase the penetration of interactive set-top boxes which will support thegrowth of VOD and enhance customer experiences.

In line with previous quarters, we saw a decline in revenues from telephony usage of 5.2%, or 2.4million, from 45.9 million in Q2 2012 to 43.5 million in Q2 2013. Excluding revenues frominterconnection, telephony usage revenues declined by approximately 1.4%. The February priceincrease for telephony usage contributed approximately 1.5% to revenue growth.

Growth in the number of telephony subscribers of 6.7% was more than offset by a lower ARPU fortelephony usage, due to (1) an FTA rate reduction as at August 1, 2012 from 0.0072 to 0.0037per minute, (2) more subscribers selecting a flat-fee subscription, and (3) a higher share of freeon-net calls following growth in the number of All-in-1 subscribers. When a Ziggo telephonycustomer makes a fixed line call to another Ziggo telephony customer, the call qualifies as on-netand no costs are charged. Both trends result in a higher percentage of non-billable call minutescompared to the previous year, in addition to an overall decline in average call minutes per

telephony subscriber. In the second quarter, call minutes declined by almost 2% compared to thesame quarter last year, whereas on-net calling grew by almost 4%. However, average call minutesper user (AMPU) decreased by 8.7%. The reduction in FTA rates at August 1, 2012 negativelyaffected ARPU and revenues compared to Q2 2012 by 0.35 and 1.8 million respectively.Despite the decline in revenues from telephony usage, the gross margin on total telephonyimproved slightly, both in absolute terms and as a percentage of revenue, due to growth in thenumber of subscribers and reduced FTA and MTA rates.

Other revenues, predominantly consisting of set-top box sales, declined by 23.9% to 9.7 millionin Q2 2013. Although we shipped a higher number of set-top boxes, a lower average sales priceper set-top box resulted in a decline of other revenues. During Q2 2013 we supplied 65,000 iTVrecorders, 31,000 iTV receivers and 4,000 CI+ modules, versus 60,000 iTV, 13,000 HD and 4,000CI+ modules in the same quarter in 2012. In addition, as part of our retention campaigns duringthe quarter, we provided customers with an interactive set-top box for a one- or two-year contract

extension and, as a result, 7,000 set-top boxes of those shipped during the quarter werecapitalized.

Blended ARPU for consumers in Q2 2013 was 42.75, up 2.32 (5.7%) from Q2 2012. Thisincrease was driven by growth in the number of subscribers to the All-in-1 bundle which, combinedwith churn in TV-only subscribers, resulted in a 4.5% increase in RGUs per customer to 2.54(based on a maximum of 4 RGUs per customer). Excluding digital pay TV as a separate RGU, Ziggorecorded an average of 2.23 RGUs per customer. Additionally, blended ARPU was positivelyaffected by (1) the price increase which became effective on February 1, and (2) higher revenuesfrom digital pay TV services, whereas it was negatively affected by lower revenues from telephonyusage. Blended ARPU in Q2 showed an increase of 1.0% compared to Q1 2013, due to 0.6%growth in RGUs per customer and the February price increase being fully reflected in thesubscription fees for the second quarter.

Our business market activities generated revenues of 34.7 million in Q2 2013, up 33.4%compared to 26.0 million in the same period last year. Esprit Telecom contributed 6.3 million inrevenue. Excluding revenues from Esprit Telecom, the acquisition which has been consolidated asof May 1, revenues grew by 9.2%. Growth was primarily the result of the increase in the number ofsubscriptions to our business bundles for home offices and small businesses. The reduction in FTArates as at August 1, 2012 negatively affected revenues by almost 0.3 million per quarter.

In Q2, Ziggo added over 3,500 new subscribers to its main B2B bundles products, Internet Plus,Office Basis and Office Plus bundle, reaching a total of 43,300 subscribers by June 30, 2013.Total revenues from the coaxial products TOM and TOMi, our collective TV contracts, and businessbundles grew by almost 43% in Q2 2013 compared to the previous year, landing at 12.0 million,now representing 42.3% of total B2B revenues (32.4% in Q2 2012).


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Cost of goods sold and gross marginCost of goods sold includes the costs of materials and services directly related to revenues and

consists of copyrights, signal costs and royalties paid to procure our content, interconnection feesthat we pay to other network operators, materials and logistics costs relating to the sale of set-topboxes and other products and materials used to connect customers to our network. The set-topboxes are typically sold at a negative gross margin as part of our promotional campaigns tosupport further penetration of digital TV and triple play and are therefore considered an investment

in our customer base.

In Q2 2013 cost of goods sold decreased to 76.0 million, down 1.6% from Q2 2012. The grossmargin in Q2 was 80.6% of revenues versus 80.0% in the prior-year quarter. Excluding theacquisition of Esprit Telecom, consolidated as at May 1, the gross margin would have been 81.3%.

Margin improvement was mainly the result of higher gross margins on internet, telephony andbusiness services (excluding Esprit Telecom) and a slightly lower negative margin contribution

realized on the sale of set-top boxes. While we shipped a higher volume of set-top boxes at a loweraverage sales price during the quarter compared to Q2 2012, the average purchase price also fell.In addition, 7,000 set-top boxes were capitalized, as these boxes were provided to customers aspart of our retention campaign for one or two-year contract extensions.

Operating expenses (Opex)Operating expenses increased by 4.8 million, or 5.4%, to 94.9 million in Q2 2013 compared to90.1 million in Q2 2012. As a percentage of revenue, operating expenses increased from 23.3%to 24.2%, mainly as a result of an increase in marketing & sales expenses by 25.6% from 14.6million in Q2 2012 to 18.3 million in Q2 2013. The majority of marketing & sales expenses werespent on sales campaigns and customer retention campaigns.Excluding marketing & sales, operating expenses increased by 1.5% compared to Q2 2012.Excluding Esprit Telecom (1.3 million), operating expenses were 75.4 million, down 0.1%compared to Q2 2012 and Q1 2013 (76.5 million).

Personnel costs decreased by 0.7% compared to Q2 2012. Excluding Esprit Telecom (1.1 million),personnel costs decreased by 2.9% or 1.4 million. Total headcount increased by 7% and averagepersonnel costs increased by approximately 3%, which is offset by lower accrued bonusescompared to the prior year period. The increase in average personnel costs was driven by bothdiscretionary individual salary increases and a general salary increase in line with the collectivelabor agreement. The increase in headcount was more than offset by an increase in capitalizedpersonnel costs of approximately 7.5 million or 55%. The increased headcount is the result of theincreased hours spent on projects relating to investments in innovation and our core infrastructureand service platforms, facilitating the addition of new services such as mobility and TV Everywhere.

At the end of Q2 we recorded 3,205 FTEs. Excluding Esprit Telecom, we recorded 3,105 FTEscompared to 2,903 FTEs at the end of Q2 2012 and 3,039 at the end of Q1 2013. Excluding

external and temporary employees, the company had 2,510 employees versus 2,449 in theprevious year. The number of external resources increased from 315 FTEs at the end of Q2 2012 to371 at the end of Q2 2013. The number of temporary call center agents increased from 139 FTEsat the end of Q2 2012 to 224 at the end of Q2 2013, mainly due to insourcing of certain sales-related activities since the last quarter of 2012.

Costs of contracted work, excluding Esprit Telecom, increased by 4.2% compared to Q2 2012(4.3% including Esprit Telecom). This increase was primarily driven by higher costs of maintenanceof network and technology as a result of an increase in the capacity of our infrastructure, as well asrising maintenance costs following investments in our core infrastructure and systems facilitatingthe addition of new services, such as mobility and TV Everywhere. This increase was partly offsetby lower consultancy costs.


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Although call volumes in our customer services department decreased by approximately 10%,costs relating to external call centers increased slightly, as a relative higher percentage of the call

volume was outsourced, in combination with an increase in the average handling time per call.

Office expenses decreased by 2.4% compared to Q2 2012. Excluding Esprit Telecom, officeexpenses decreased by 3.3%. Costs of licenses and maintenance for applications increased byalmost 17% following an increase in the number of users, as well as in the size of variousdatabases. In addition, investments in innovations for our converged platform and businessapplications resulted in additional license and maintenance costs besides recurring costs forexisting IT business applications. The increased costs relating to our IT environment were morethan offset by an increase in the coverage for office expenses as a result of the increase in theheadcount and hours capitalized. Other office expenses excluding office IT and the coverage foroffice expenses decreased by almost 2% as a result of cost reductions in various categories.

Other expenses increased by 89.4% compared to Q2 2012. Excluding Esprit Telecom, other

expenses increased by 88.0% or 1.2 million. This increase is mainly the result of an increasedspend on repairs of customer equipment, such as set-top boxes, and an increase in the addition tothe provision for bad debts and debt collection costs. In Q2 2012, we recognized a release from theprovision for bad debts, because the provision had been overstated as the quality and ageing of thetrade receivables had improved over time.

Adjusted EBITDA and operating profitIn Q2 2013, we achieved an adjusted EBITDA of 221.0 million, up 0.8% compared to Q2 2012.The EBITDA margin was 56.4% compared to 56.7% for Q2 last year. Excluding the EBITDAcontribution of 1.1 million from Esprit Telecom, EBITDA increased by 0.3%, resulting in anEBITDA margin of 57.0%. The increase was mitigated by a 25.6% increase in costs of marketing &sales.

Depreciation expenses and amortization of software in Q2 2013 fell by 2.6 million to 68.6 million

from 71.2 million in Q2 2012. Excluding the acquisition of Esprit Telecom, depreciation andamortization of software fell by 2.7 million. This decrease is the result of high historical networkand infrastructure investments as well as investments related to the merger of the threepredecessor companies which led to relatively high depreciation expenses in recent years.However, with the current investment program in our core infrastructure and systems facilitatingthe addition of new services such as mobility and TV Everywhere, depreciation and amortizationwill stabilize going forward. During the quarter, we recognized 0.2 million in amortization of otherintangible assets, which is the result of the recognition of the amortization of the Esprit customerlist. The Esprit customer list has been valued as the result of the allocation of the purchase pricepaid for the acquisition to the individual assets.

Operating income (EBIT) for the second quarter increased by 2.9% to 152.2 million compared to148.0 million for the prior-year quarter. Excluding the acquisition of Esprit Telecom, operatingincome increased by 2.2% to 151.2 million. This increase is due to improved EBITDA, lowerdepreciation expenses and lower amortization on software.

Net incomeInterest expense excluding interest on shareholder loans decreased by 2.7 million, or 5.2%, to49.1 million in Q2 2013, compared to 51.8 million last year. In Q2 2013, 3.0 million wasallocated as borrowing costs on work in progress, resulting in an interest credit, compared to 2.4million in Q2 2012. Excluding borrowing costs, interest expense decreased by 3.9%, or 2.1million.

A reduction of our average debt by approximately 207 million reduced our interest expensecompared to Q2 2012. The blended interest rate for the second quarter was 7.0% versusapproximately 6.7% for Q2 2012.


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Banking and financing fees increased by 0.6 million to 0.8 million in Q2 2013 from 0.2 million inthe prior-year quarter. This increase is mainly attributable to commitment fees related to the 150

million term facility we put in place in January at the level of Ziggo NV and the new revolving creditfacility of 400 million. The 150 million term facility at the level of Ziggo NV was cancelled inJune, as it was no longer required after the refinancing in March.

The amortization of funding costs decreased by 0.7 million to 2.3 million in Q2 2013 comparedto Q2 last year. The amortization for the quarter includes an impairment of the remaining amountof capitalized financing fees of 0.6 million related to the 150 million term facility. The totalfinancing fees and discount of 14.2 million, which relate to the new 750 million 3.625% seniorsecured notes issue, the 150 million term loan and the new 400 million revolving credit facility,were capitalized and will be amortized over the terms of the senior secured notes, the term loanand revolving credit facility. This will result in a quarterly amortization charge of 1.6 millioninstead of 3.0 million related to the 1.1 billion senior credit facility.

As Ziggo does not comply with hedge accounting rules for interest rate swaps under IFRS, anychange in fair value is recognized as financial income and expense. In Q2 2013, Ziggo recorded a10.3 million gain on other income, due to (1) the periodic amortization of its negative hedgereserve of 1.2 million, (2) a fair value gain on IRS contracts of 11.4 million as a result ofshortened expiration periods of underlying hedges and an increase in the underlying interest ratesduring the quarter, and (3) a foreign exchange gain on USD denominated purchases of 0.1million. For the same quarter of 2012 Ziggo had reported a fair value loss of 4.7 million and aforeign exchange loss of 0.8 million.

During the second quarter we recorded a net loss from joint ventures of 2.1 million compared to anet loss of 1.2 million in the prior-year quarter. The 2.1 million net loss from joint venturespredominantly relates to our 50% share in the results of HBO NL, our joint venture with HBO.Investments in and results from the joint venture are accounted for using the equity method. Ourshare in the funding of this joint venture during the second quarter amounted to 2.6 million in

total.

For Q2 2013 Ziggo reported an income tax expense of 19.3 million, compared to 21.9 million inthe same quarter last year. Higher operating income, combined with reduced interest costs and afair value gain on our interest rate hedges, resulted in a strong increase in the result before incometaxes to 110.3 million, compared to 87.5 million for the prior-year quarter. The result beforeincome taxes of 110.3 million would have led to a corporate income tax charge of 27.6 million atan effective tax rate of 25% versus 21.9 million in prior year quarter. However, as a result of theinnovation box tax facility which we agreed with the Dutch tax authorities in the first quarter, theeffective tax rate is approximately 17.5%, resulting in an income tax expense of 19.3 million.

The innovation box is a tax facility under Dutch corporate income tax law, which taxes profitsattributable to innovation at an effective tax rate of 5% instead of the statutory rate of 25%.

In Q2 2013, Ziggo posted net profit of 88.9 million, versus 64.4 million in Q2 2012. Adjusted for(1) amortization of financing fees, and (2) changes in fair value on our interest rate hedges (alladjustments net of income taxes), net profit would have increased from approximately 70.2million in Q2 2012 to 83.0 million in Q2 2013, representing an increase of 18%.

Working capital, cash flow and liquidity

Working capitalNet working capital excluding accrued interest and corporate income tax due increased by 29.5million from 283.2 million negative as at the end of Q1 2013 to 253.7 million negative as at theend of June 2013. The increase in working capital in Q2 2013 is mainly due to a reduction of thetrade accounts payable and personnel related liabilities due to the employee bonus over 2012settled in the second quarter.


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Working capital excludes corporate income tax due as at June 30, 2013 of 3.5 million. This is theresult of an intragroup transaction as part of which we transferred certain assets in 2012 in order

to renew part of our tax loss carry-forward position so as to avoid expiry of these losses. One ofour subsidiaries is required to report profit for tax purposes based on a percentage of the value oftransferred assets, which cannot be offset against the remaining losses of the fiscal unit accordingto Dutch carry-over rules, and the balance due from 2012 (2.3 million) is therefore payable in thecourse of 2013.

Cash flow from operating activitiesCash flow from operating activities decreased by 19.2 million or 9.1 % to 192.3 millioncompared to 211.5 million in Q2 2012. Although EBITDA increased by 1.8 million to 221.0million in Q2 2013, the cash outflow from a change in working capital increased by 18.6 millionand the cash outflow from a change in provisions increased by 2.4 million.

Capital expenditure (Capex)

Our capital expenditure and investments relate primarily to extending, upgrading and maintainingour network, installation of new service equipment at customer premises, cost of modems andinvestments in our core infrastructure, service platforms and systems facilitating the addition ofnew services such as mobility and TV Everywhere. They also include increases in intangible assets,

primarily expenditures on software, which we capitalize. Set-top boxes are predominantly sold tocustomers and therefore recognized as cost of goods sold instead of being capitalized.

During Q2 2013, Ziggo recorded capital expenditure of 79.5 million, an increase of 57.5%compared to Q2 2012 (50.5 million). During Q2 2013 the amount spent on internal hourscapitalized and contracted work increased by approximately 19 million compared to the prior-yearquarter, reflecting the efforts put into realizing our strategic agenda.

In Q2 2013, capital expenditure of 13.5 million (17%) related to service equipment and modeminstallations at customer premises (13.5 million, or 27%, in Q2 2012), whereas 44% related tonew build and growth of our network capacity to accommodate our increased internet subscriberbase and continuously increasing internet speed and bandwidth requirements (approximately 27%in Q2 2012).

The capital expenditure on customer installations of 13.5 million is at the same level as Q2 lastyear. During Q2 we swapped approximately 8,500 modems for dual-band WiFi enabled EuroDocsis3.0 modems. At the end of Q2 we had activated 1,409,000 EuroDocsis 3.0 modems at customerpremises, of which 954,000 were Wifi enabled, which represents a growth of 58,000 Wifi enabledmodems compared to the first quarter.

The increase in capital expenditure on network growth compared to Q2 2012 of 21.3 millionresulted partly from the preparation for the higher internet speeds provided to our customers asfrom July 2013. In addition, the capital expenditure on network growth in Q2 2012 was low asequipment purchased and capitalized in Q1 2012 was actually installed in the second quarter,resulting in a relatively low spend on equipment for network growth for Q2 2012.

million 2013 % of total 2012 % of total 2013 % of total 2012 % of total

Customer installation 13.5 17% 13.5 27% 31.0 21% 35.6 29%

Network growth 34.9 44% 13.6 27% 60.4 41% 37.6 31%

Maintenance and other 31.2 39% 23.4 46% 54.8 37% 47.5 39%

Total Capex 79.5 100% 50.5 100% 146.1 100% 120.7 100%

Q2 YTD June


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The remainder of capital expenditure represented maintenance and replacement of networkequipment and recurring investments in our IT platform and systems, as well as other investments

in core infrastructure, service platforms and systems facilitating the addition of new services suchas mobility and TV Everywhere. In Q2 2013, investments in this category increased by 7.8 million,or 33.3%, to 31.2 million (or 39% of total capital expenditure for the quarter) compared to 23.4million for the prior-year quarter. The amount spent on capitalized hours and contracted workincreased significantly compared to Q2 2012.

Capital expenditure for 2013 is expected to be in the range of 330-340 million, which is up fromthe previous guidance of 320-330 million. The increase in the forecast is the result of increasedinvestment in customer premises and equipment to support customer retention and investmentsfor the launch of Ziggo mobile and WifiSpots.

Operational free cash flowOperational free cash flow (OpFCF, or adjusted EBITDA minus Capex) decreased by 27.2 million

or 16.1% to 141.5 million in Q2 2013, compared to 168.7 million for the prior-year quarter,driven by a 29.0 million increase in capital expenditure.

Free cash flow and net cash used in financing activitiesDuring Q2, free cash flow (cash flow before financing activities) decreased to 95.0 million, down63.7 million, or 40.1%, compared to Q2 2012. The decrease in the free cash flow was mainly theresult of the decrease in the cash flow from operating activities of 19.2 million, combined with anincreased spend on capital expenditure of 29.0 million and the net cash spend on the acquisitionof Esprit Telecom of 15.2 million.

Net cash used in financing activities for the quarter comprises interest expense, banking andfinancing fees related to our loan facilities, dividend payments and prepayments and drawings onthe senior credit facilities. During Q2 2013, we drew 160.0 million under our revolving creditfacility.Cash interest paid in Q2 2013 amounted to 81.5 million, representing a 8.4 million drop

from the prior-year period. The difference is related to the lower average debt and a differenttiming of interest payments following the refinancing in March. Our senior credit facility withinterest payable monthly has been partly replaced by a senior secured note of 750 million with anannual interest payment. Interest on both the 6.125% senior secured and 8.0% senior unsecurednotes is payable semi-annually, in May and November, and interest on the 3.625% senior securednote is payable annually in March.

During Q2 2013, the final dividend over 2012 of 180 million was distributed to our shareholderson April 29.

At the end of Q2 2013, accrued interest on the senior secured and senior unsecured notes was25.1 million, compared to 17.8 million at the end of Q2 2012.

At the end of Q2 2013, Ziggo held 51.0 million in cash and cash equivalents, compared to 156.0million at the end of Q2 2012.

Ziggo has a revolving credit facility of 400.0 million in place, expiring in March 2018. As at June30, 2013, 160.0 million had been drawn under this facility.


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Net debt and financing structureAs at June 30, 2013, we carried a total debt balance of 2,974.6 million, including principal

amount, capitalized funding costs and discount on the issuance date. An amount of 310.0 millionis owed under our senior credit facility (term loan A and revolving credit facility), 750.0 millionwas granted by Ziggo Finance B.V. (term loan E), which had issued senior secured notes for asimilar amount in 2010, 750.0 million related to senior secured notes issued in March 2013 and1,208.9 million related to senior unsecured notes issued in 2010. A summary of the capitalstructure with notional amounts outstanding as at June 30, 2013 is stated below.

On June 30, 2013 the outstanding balance of the senior credit facility and revolving credit facilityamounted to 304.0 million, including principal amount (150.0 million plus 160.0 million drawnunder the revolving credit facility of 400.0 million) and capitalized financing fees. Financing feesfor the senior credit facility and revolving credit facility amounted to 6.4 million, to be amortizedover a period of five years. As at June 30, 2013 an amount of 0.4 million was amortized, resultingin capitalized financing fees as at the end of Q2 2013 of 6.0 million.

As at June 30, 2013, senior unsecured notes (8.0%, May 2018) amounted to 1,185.3 million. Thisitem is carried at amortized cost, including principal amount (1,208.9 million), capitalized fundingcosts and discount on the issuance date. Financing fees for the notes issuance amounted to 25.8million, to be amortized over a period of eight years. The capitalized discount upon issuanceamounted to 8.8 million, to be amortized as interest expense over a period of eight years.

As at June 30, 2013 an amount of 11.0 million was amortized, resulting in capitalized financingfees as at the end of Q2 2013 of 17.6 million and a capitalized discount of 6.0 million. Theunsecured notes become callable on May 15, 2014 against a premium of 4.0% of the principalvalue.

As at June 30, 2013 the balance of senior secured notes (6.125%, March 2017) amounted to742.9 million, stated at amortized cost, including principal amount (750.0 million) andcapitalized funding cost. Financing fees for the senior secured notes issuance amounted to 10.6million, to be amortized over a period of seven years. As at June 30, 2013 a total amount of 3.5million had been amortized since issuance, resulting in capitalized financing fees of 7.1 million asat the end of Q2 2013. The secured notes become callable on November 15, 2013 against apremium of 3.063% of the principal value.

As at June 30, 2013 the balance of senior secured notes (3.625%, March 2020) amounted to742.4 million, stated at amortized cost, including principal amount (750.0 million), capitalizedfunding costs and capitalized discount.Financing fees for the notes issuance amounted to 6.3 million, to be amortized over a period ofseven years. The capitalized discount upon issuance amounted to 1.5 million, to be amortized asinterest expense over a period of seven years.

million 30-Jun-13 x LTM EBITDA Margin/Coupon Maturity

Senior Credit Facility 310.0 0.35 E + 2.0% Mar 2018

6.125 % Senior Secured Notes 750.0 0.84 6.125% Nov 2017

3.625 % Senior Secured Notes 750.0 0.84 3.625% Mar 2020

Total Senior Secured Debt 1,810.0 2.04

8.000% Senior Unsecured Notes 1,208.9 1.36 8.000% May 2018

Total Debt 3,018.9 3.40

Accrued interest 25.1 0.03

MtM SWAPS 41.5 0.05

Cash and cash equivalents (51.0) (0.06)

Total Net Debt 3,034.4 3.41


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As at June 30, 2013 an amount of 0.2 million was amortized, resulting in capitalized financingfees as at the end of Q2 2013 of 6.1 million and a capitalized discount of 1.5 million. These

secured notes are non-callable during the term of the notes.

Interest on the 6.125% senior secured notes and 8.0% senior unsecured notes is due semi-annually. The coupon for the new 3.625% is due annually in March. As at June 30, 2013 an amountof 25.1 million was accrued under current liabilities.

As at June 30, 2013, the fair value of the interest rate swaps (IRS) amounted to 41.5 millionnegative, compared to 52.8 million negative as at March 31, 2013. Since the issuance of thesenior secured notes on October 28, 2010, any change in fair value has been recognized asfinancial income and expense, as Ziggo does not satisfy the IFRS requirements for hedgeaccounting. Before the issuance of the senior secured notes, any changes in fair value wererecorded in the hedge reserve as part of equity. As at June 30, 2013, the hedge reserve amountedto 2.6 million negative, which will be charged to profit or loss during the remaining term of the

outstanding IRS.

During the quarter we entered into forward starting interest rate swaps for the period May 2014 toMay 2024 for an amount of 500 million. With these forward starting interest swaps we have fixedthe base interest rate and consequently reduced our interest rate exposure for the period 2014-2024 assuming we will call our unsecured notes ultimately at the first call date in May 2014.

As at June 30, 2013, our Net Debt to Adjusted LTM EBITDA leverage ratio was 3.41x, down from3.42x as at year-end 2012. With the publication of the Q2 results, we changed the definition of netdebt for the calculation of the leverage ratio. Net debt is now defined as the outstanding balance ofthe principal amount of our borrowings, plus interest accrued on those borrowings (25.1 million asat June 30, 2013) and the market-to-market value of the interest rate swaps (41.5 million as atJune 30, 2013), reduced by the balance of cash and cash equivalents. The balance of accruedinterest and the market-to-market value of the interest rate swaps were not previously included

when calculating net debt. The calculation of the leverage as at year-end 2012 has been adjustedto reflect this change.

The average debt maturity was 5.2 years as at June 30, 2013, up from 4.9 years as at the end ofDecember 31, 2012, as a result of the refinancing which extended the average debt maturity.


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Reconciliation of results of Ziggo N.V. with those of Ziggo

Bond Company B.V.As a result of the restructuring which took place ahead of the IPO of Ziggo N.V. (Ziggo), Ziggoindirectly acquired all issued and outstanding shares of Ziggo Bond Company B.V. (ZiggoBondCo). A reconciliation of the results of Ziggo with those of Ziggo BondCo is attached as aseparate schedule to this press release.

The main differences with Ziggo BondCo related to the outstanding loans to shareholders untilZiggo went public on March 21, 2012, at which moment the shareholder loans were fully convertedinto equity. The shareholder loans amounted to 2,334 million at the time Ziggo went public. Theproceeds of these shareholder loans were invested, in 2005-2007, as equity in AmsterdamseBeheer and Consultingmaatschappij B.V. (ABC), a direct subsidiary of Ziggo BondCo. As a result,Ziggo recognized interest expenses on the shareholder loans until Q1 2012, whereas Ziggo BondCohad not done so. Ziggo recognized interest expense on the shareholder loans to an amount of

52.2 million in Q1 2012.

Other reconciliations between the results of Ziggo and Ziggo BondCo are as follows.

In the first half year of 2013, Ziggo recognized 1.8 million in personnel costs for themanagement board and supervisory board. As a result of the allocation of costs of themanagement board, Ziggo has charged 1.6 million as management fees to Ziggo BondCo.As a result, operating income for the first half year of 2013 reported for Ziggo was 0.2million lower than that reported for Ziggo BondCo.

The term facility of 150.0 million, which had been put into place in January 2013, wascancelled in Q2 2013 as we agreed a new revolving credit facility of 400 million with therefinancing of the 1.1 billion credit facility in March. The remaining balance of thecapitalized financing fees, were fully amortized in Q2 2013 for an amount of 0.8 million.The banking and financing fees of 0.6 million relate to the commitment fees paid for the

term facility. The costs associated with the 150 million term facility are recognized in theresults of Ziggo but not in those of Ziggo BondCo.

As a result of the allocation of costs of the Management Board of 0.2 million to Ziggo, thecommitment fees of 0.6 million and the amortization of financing fees of 0.8 million, theresult before income tax realized by Ziggo BondCo was 1.6 million higher than the resultrealized by Ziggo. The corporate income tax charge recognized by Ziggo BondCo was 0.4million lower than the amount recognized by Ziggo.

Mainly as a result of the accrued interest costs of 969.5 million recognized on shareholderloans since 2006, the tax loss carry-forward at the time of the conversion of theshareholder loans into equity on March 21, 2012 was 1,015.5 million higher than theamount realized by Ziggo BondCo. The resulting deferred tax asset for Ziggo as at the endof Q2 2013 amounted to 235.5 million, while the deferred tax asset recognized by ZiggoBondCo relates to the fair value of the interest rate swaps as at June 30, 2013 for anamount of 10.4 million, to the deferred tax asset recognized as a result of the tax renewaltransaction for an amount of 72.7 million and the deferred tax assets of 0.8 million as aresult of the acquisition of Esprit Telecom.

During the first quarter of 2012 ABC distributed 53.0 million in dividend to Ziggo BondCompany Holding B.V. (through Ziggo Bondco). Certain IPO-related costs were paid byZiggo BondCo on behalf of Ziggo. In addition, Ziggo BondCo had an intercompany incometax liability to Ziggo, as the tax to be paid by BondCo was netted against the deferred taxassets of the Ziggo fiscal unit. In Q2 2013 BondCo paid 92.2 million on the intercompanyincome tax liability to Ziggo. As a result, the balance of current liabilities to related partiesreported by Ziggo BondCo amounted to 43.2 million.

The equity attributable to equity holders reported by Ziggo was 194.3 million higher thanthe equity reported by Ziggo BondCo. This difference is mainly the result of the tax benefitrealized on the total accrued interest on shareholder loans since 2006, which amounted to969.5 million, the difference being recognized in the net result for the year.


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Total Revenues 391.9 386.5 1.4% 779.8 773.5 0.8%


Personnel 47.7 48.1 (0.7%) 95.8 130.5 (26.6%)

Contracted work 13.1 12.6 4.3% 26.4 26.9 (2.0%)

Marketing & Sales 18.3 14.6 25.6% 35.8 32.5 10.1%

Office expense 13.1 13.4 (2.4%) 26.4 27.9 (5.2%)

Other operating expenses 2.6 1.4 89.4% 4.4 4.4 (0.5%)

Depreciation 62.5 64.2 (2.6%) 124.2 128.0 (2.9%)

Amortization of software 6.2 7.1 (12.6%) 12.2 14.7 (16.7%)

Amortization of other intangible assets 0.2 0.0 0.2 0.0

Total 239.8 238.5 0.5% 472.7 520.6 (9.2%)


Net financial income (expense)

- Interest (49.1) (51.8) (5.2%) (99.0) (156.8) (36.8%)

- Banking and financing fees (0.8) (0.2) 266.8% (1.3) (0.5) 151.1%

- Amortization of funding costs (2.3) (3.0) (24.5%) (48.5) (6.1) 701.7%

- Other income 10.3 (5.5) (288.1%) 19.5 (9.0) (315.9%)

Result from normal business before income taxes 110.3 87.5 26.1% 177.7 80.5 120.6%

Net result of joint ventures and associates (2.1) (1.2) 69.7% (3.4) (5.1) (33.6%)

Income tax benefit (expense) (19.3) (21.9) (11.5%) 7.3 (25.5) (128.5%)

Net result 88.9 64.4 38.0% 181.6 49.9 263.9%

Financial Information - The condensed consolidated income statement has been prepared in accordance with the International Financial

Reporting Standards (IFRS), as adopted by the European Union

Consolidated income statement for Ziggo N.V.

(unaudited)

Q2 YTD June


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Consolidated balance sheet for Ziggo N.V. (unaudited)

million 30 Jun 2013 31 De c 2012 30 Jun 2012

ASSETS

Intangible assets 3,336.1 3,321.2 3,321.2

Capitalized software 37.4 37.2 36.3

Property and equipment 1,452.0 1,434.1 1,406.8

Other financial assets 0.8 0.7 0.4

Investments in joint ventures 6.8 3.6 4.3

Deferred income tax asset 235.5 223.7 248.7

Total non-current asse ts 5,068.7 5,020.5 5,017.8

Inventories 31.8 27.9 36.5

Trade accounts receivable 26.8 18.2 25.9

Other current assets 38.6 24.9 37.3

Cash and cash equivalents 51.0 92.4 156.0

Total current assets 148.3 163.5 255.7

TOTAL ASSETS 5,216.9 5,183.9 5,273.6

EQUITY AND LIABILITIES

Issued share capital 200.0 200.0 200.0

Share premium 3,394.5 3,500.0 3,500.0

Treasury stock (0.0) (0.0) 0.0

Retained earnings (2,393.8) (2,513.8) (2,405.8)

Net income (loss) for the period 181.6 192.8 49.9

Equity attributable to equity holders 1,382.2 1,378.9 1,344.1

Loans from financial institutions 304.0 1,018.2 1,188.0

Unsecured Bond 1,185.3 1,183.4 1,181.5Facility E (Secured Bond) 1,485.3 742.2 741.5

Derivative financial instruments 15.8 63.2 57.4

Provisions 21.0 23.1 24.0

Deferred income tax liability 410.7 407.8 384.9

Other non current liabilities 2.0 0.2 0.1

Total non-current liabilities 3,424.2 3,438.1 3,577.5

Trade accounts payable 79.2 85.6 55.6

Deferred revenue 119.1 109.7 118.9

Derivative financial instruments 25.6 (0.0) 6.1

Provisions 5.4 7.5 6.4

Corporate income tax 3.5 2.3 0.0

Taxes and social security 56.6 52.8 54.3

Personnel related liabilities 13.5 17.5 19.0

Accrued interest 25.1 18.0 18.3

Other current liabilities 82.7 73.6 73.4

Total current liabilities 410.6 366.9 351.9

TOTAL EQUITY AND LIABILITIES 5,216.9 5,183.9 5,273.6

Financial Information - The condensed consolidated balance sheet has been prepared in accordance with the International Financial Reporting

Standards, (IFRS), as adopted by the European Union.


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Consolidated cash flow statement for Ziggo N.V. (unaudited)


Operating activities:


Adjustments for:

Share-based payments 20.0 (100.0%)

Depreciation 62.5 64.2 (2.6%) 124.2 128.0 (2.9%)

Amortization 6.4 7.1 (9.9%) 12.4 14.7 (15.4%)

Movement in provisions (3.4) (1.0) 249.5% (4.7) (1.3) 245.8%

Working capital adjustments for:

(Increase)/Decrease in current assets (2.0) (0.4) 447.0% (20.8) (14.6) 41.9%

Increase/(Decrease) in current liabilities (23.2) (6.3) 269.6% 4.1 36.7 (89.0%)C hange in working capital (excl. accrue d interest) (25.3) (6.7) 279.4% (16.7) 22.1 (175.6%)

Net cash flow from operating activities 192.3 211.5 (9.1%) 422.3 436.3 (3.2%)

Investing activities:

Capital expenditures (79.5) (50.5) 57.5% (146.1) (120.7) 21.1%

Acquisition (15.2) (15.2)

Funding of joint venture (2.6) (2.5) 3.8% (5.7) (9.5) (40.1%)

Interest received (0.0) 0.2 (100.3%) 0.0 0.4 (98.1%)

Change in financial assets (0.0) 0.0 (235.6%) (0.1) 0.1 (257.4%)

Net cash flow from (used in) investing activities (97.3) (52.8) 84.3% (167.1) (129.7) 28.8%

Financing activities:

3.625% Senior Secured Notes 748.5

Term Loan A (new) 150.0

HoldCo Facility (1.0)

Revolver facility 160.0 160.0

Financing Fees (3.1) (12.4)

Dividend (180.0) (180.0)

Repayment of loans (60.0) (100.0%) (1,063.3) (152.8) 596.0%

Interest (81.5) (89.9) (9.4%) (98.0) (109.8) (10.7%)

Other financing activities (0.9) (1.2) (26.0%) (1.3) (0.7) 80.8%

Net cash flow from (used in) financing activities (106.4) (151.1) (29.6%) (296.6) (263.3) 12.6%

NET INCREASE (DECREASE) IN CASH (EQUIVALENTS) (11.4) 7.6 (249.0%) (41.4) 43.3 (195.7%)

Financial Information - The condensed consolidated cash flow statement has been prepared in accordance with the International Financial

Reporting Standards, (IFRS), as adopted by the European Union.

Free cash flow = Net cash flow from operating activities + net cash flow from (used in) investing activities. For the Q2 ending June 30, 2013 the

free cash flow amounts to 255.1M (June30 2012: 306.6M)

Q2 YTD June


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Details on consolidated income statement (unaudited)


Revenue by segment1

Standard cable subscription revenue 112.6 117.3 (4.0%) 226.1 234.3 (3.5%)

Digital pay television services revenue 42.5 42.1 1.0% 85.6 83.2 3.0%

Total video revenues 155.1 159.3 (2.6%) 311.8 317.5 (1.8%)

Broadband Internet subscription revenue 115.1 110.4 4.3% 229.3 219.1 4.6%

Telephony subscription revenue 33.8 32.1 5.4% 67.4 63.2 6.7%

Telephony usage revenue 43.5 45.9 (5.2%) 88.5 93.7 (5.5%)

Total telephony revenues 77.3 78.0 (0.9%) 155.9 156.9 (0.6%)

Revenue from other sources 9.7 12.7 (23.9%) 19.7 28.7 (31.1%)

Total consumer market 357.2 360.4 (0.9%) 716.7 722.1 (0.8%)

Of which All-in-1 bundle revenues 180.6 167.5 7.8% 358.2 328.9 8.9%

Business services revenues 34.7 26.0 33.4% 63.0 51.4 22.7%

TOTAL REVENUES 391.9 386.5 1.4% 779.8 773.5 0.8%


Personnel 47.7 48.1 (0.7%) 95.8 94.9 1.0%

Contracted work 13.1 12.6 4.3% 26.4 26.3 0.4%

Marketing & Sales 18.3 14.6 25.6% 35.8 31.6 13.5%

Office expense 13.1 13.4 (2.4%) 26.4 26.4 0.0%

Other expenses 2.6 1.4 89.4% 4.4 3.5 27.9%

Total operating expenses 170.9 167.3 2.2% 336.1 338.3 (0.6%)

Adjusted EBITDA2 221.0 219.2 0.8% 443.6 435.3 1.9%

IPO related costs3 0.0 0.0 (100.0%) 0.0 39.7 (100.0%)

EBITDA 221.0 219.2 0.8% 443.6 395.6 12.2%

Depreciation and amortization 68.8 71.2 (3.3%) 136.6 142.6 (4.2%)


Net financial income (expense) 41.9 60.5 (30.8%) 129.3 172.4 (25.0%)

Result from normal business before income taxes 110.3 87.5 26.1% 177.7 80.5 120.6%

Net result of joint ventures and associates (2.1) (1.2) 69.7% (3.4) (5.1) (33.6%)

Income tax benefit (expense) (19.3) (21.9) (11.5%) 7.3 (25.5) (128.5%)

Result after income taxes 88.9 64.4 38.0% 181.6 49.9 263.9%

Q2 YTD June

Financial Information - The condensed consolidated income statement has been prepared in accordance with the International Financial


(1) Revenue for each o f our segments is derived from our internal accounts and is not presented in audited financial statements.

(2) EBITDA is defined as profit before net finance expense, income taxes, depreciation, amortization and impairment. Adjusted EBITDA is

defined as EBITDA before extraordinary costs.

(3) Operating expenses incurred in c onnection with the IPO of Ziggo in Q1 2012.


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Details on working capital for the 1st half year 2013 *

million 30 Jun 2013 31 Dec 2012 30 Jun 2012 31 Dec 2011

Inventories 31.8 28.0 36.5 32.2

Trade accounts receivable 26.8 20.0 25.9 25.8

Other current assets 38.6 27.6 37.3 26.8

97.3 75.6 99.8 84.7

Trade accounts payable 79.2 88.5 55.6 74.4

Deferred revenue 119.1 111.0 118.9 115.9

Corporate income tax 3.5 2.3 0.0 0.0

Taxes and social securities 56.6 53.2 54.3 19.9

Personnel related liabilities 13.5 17.8 19.0 15.2

Accrued interest 25.1 18.0 18.3 18.6

Other current liabilities 82.7 75.5 73.4 58.5

379.5 366.3 339.5 302.5

Net working capital (282.3) (290.7) (239.7) (217.8)

Change in net working capital (8.4) 21.9

Net working capita l excl. Accrued interest and corp. inc. tax (253.7) (270.4) (221.4) (199.2)

Change in net working capital excl. accrued interest and corp. inc. tax (16.7) 22.2

Details on working capital for the 2nd quarter 2013

million 30 Jun 2013 31 Mar 2013 30 Jun 2012 31 Mar 2012

Inventories 31.8 27.3 36.5 34.8

Trade accounts receivable 26.8 29.3 25.9 28.1

Other current assets 38.6 37.7 37.3 36.6

97.3 94.3 99.8 99.4

Trade accounts payable 79.2 90.5 55.6 63.1

Deferred revenue 119.1 120.3 118.9 118.5

Corporate income tax 3.5 2.9 0.0 0.0

Taxes and social securities 56.6 59.8 54.3 48.0

Personnel related liabilities 13.5 21.8 19.0 28.6

Accrued interest 25.1 53.8 18.3 54.0

Other current liabilities 82.7 85.0 73.4 69.0

379.5 434.2 339.5 381.2

Net working capital (282.3) (339.9) (239.7) (281.8)

Change in net working capital (57.6) (42.1)

Net working capita l excl. Accrued interest and corp. inc. tax (253.7) (283.2) (221.4) (227.8)

Change in net working capital excl. accrued interest and corp. inc. tax (29.5) (6.4)

* The closing balance as per December 31 2012 and 31 March 2013 has been adjusted for the opening balance for the working capital of the acquisition of Esprit


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Details Loans

million 30 Jun 2013 31 Ma r 2013 30 Jun 2012 31 Ma r 2012

Senior Credit Facility 310.0 151.0 1,230.6 1,290.6

Capitalized financing fees (6.0) (7.1) (42.6) (44.6)

Loans from financial institutions 304.0 143.9 1,188.0 1,245.9

8.000% Senior unsecured Notes (principal amount) 1,208.9 1,208.9 1,208.9 1,208.9

Capitalized discount at issuance (price 99.271) (6.0) (6.2) (7.0) (7.2)


Senior Notes 1,185.3 1,184.3 1,181.5 1,180.6

3.625% Senior Secured Notes (principal amount) 750.0 750.0 0.0 0.0

Capitalized discount at issuance (price 99.800) (1.5) (1.5) 0.0 0.0

Capitalized financing fees (6.1) (6.3) 0.0 0.0

Senior Notes 742.4 742.2 0.0 0.0

Facility E (6.125% Secured Bond; principal amount) 750.0 750.0 750.0 750.0


Senior Notes 742.9 742.6 741.5 741.2

Total Loans 2,974.6 2,812.9 3,111.0 3,167.7


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Consolidated income statement for Ziggo N.V compared with Ziggo Bondco BV

(unaudited)

million Ziggo Delta Bondco Ziggo Delta Bondco

Total revenue 779.8 0.0 779.8 773.5 0.0 773.5

0.0

Cost of goods sold 147.3 0.0 147.3 155.7 0.0 155.7

Personnel 95.8 1.8 94.0 130.5 35.6 94.9

Contracted work 26.4 0.0 26.4 26.9 0.6 26.3

Marketing & Sales 35.8 0.0 35.8 32.5 1.0 31.6

Office expense 26.4 0.0 26.4 27.9 1.5 26.4

Other operating expenses 4.4 (1.6) 6.0 4.4 1.0 3.5

Depreciation 124.2 0.0 124.2 128.0 0.0 128.0

Amortization of software 12.2 0.0 12.2 14.7 0.0 14.7

Amortization of other intangible assets 0.2 0.0 0.2 0.0 0.0 0.0

Total operating expenses 472.7 0.2 472.5 520.6 39.7 480.9

Operating income 307.0 (0.2) 307.3 252.9 (39.7) 292.6

Net financial income (expense)

- Interest (99.0) (0.0) (99.0) (156.8) (52.2) (104.6)

- Banking and financing fees (1.3) (0.6) (0.7) (0.5) 0.0 (0.5)

- Amortization of funding costs (48.5) (0.8) (47.8) (6.1) 0.0 (6.1)

- Other income (i.e. fair value gains / (losses) on derivative fin. instruments) 19.5 0.0 19.5 (9.0) 0.0 (9.0)

Result from norm. business before income taxes 177.7 (1.6) 179.3 80.5 (91.9) 172.4

Net result of joint ventures and associates (3.4) 0.0 (3.4) (5.1) 0.0 (5.1)

Income tax benefit (expense) 7.3 0.4 6.9 (25.5) 17.6 (43.1)

Net result 181.6 (1.2) 182.8 49.9 (74.3) 124.2

YTD June 2013 YTD June 2012

Financial Information - The condensed consolidated income statement has been prepared in accordance with the International Financial Reporting

Standards (IFRS), as adopted by the European Union


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Consolidated balance sheet for Ziggo N.V. compared with Ziggo Bondco BV

(unaudited)


ASSETS

Intangible assets 3,336.1 0.0 3,336.1 3,321.2 0.0 3,321.2

Capitalized software 37.4 0.0 37.4 36.3 0.0 36.3

Property and equipment 1,452.0 0.0 1,452.0 1,406.8 0.0 1,406.8

Other financial assets 0.8 0.0 0.8 0.4 0.0 0.4

Investments in joint ventures 6.8 0.0 6.8 4.3 0.0 4.3

Deferred income tax asset 235.5 151.6 83.9 248.7 232.8 15.9

Total non-current assets 5,068.7 151.6 4,917.1 5,017.8 232.8 4,785.0

Inventories 31.8 0.0 31.8 36.5 0.0 36.5

Trade accounts receivable 26.8 0.0 26.8 25.9 0.0 25.9

Other current assets 38.6 0.0 38.6 37.3 0.0 37.3

Cash and cash equivalents 51.0 0.2 50.8 156.0 0.1 155.9

Total current assets 148.3 0.2 148.0 255.7 0.1 255.7

TOTAL ASSETS 5,216.9 151.8 5,065.1 5,273.6 232.9 5,040.6

EQUITY AND LIABILITIES

Issued share capital 200.0 200.0 0.0 200.0 200.0 0.0

Share premium 3,394.5 2,553.5 841.0 3,500.0 2,659.0 841.0

Treasury stock (0.0) (0.0) 0.0 0.0 0.0 0.0

Retained earnings (2,393.8) (2,557.9) 164.1 (2,405.8) (2,496.8) 91.1

Net income (loss) for the period 181.6 (1.2) 182.8 49.9 (74.3) 124.2

Equity attr. to equity holders 1,382.2 194.3 1,187.9 1,344.1 287.9 1,056.3

Loans from financial institutions 304.0 0.0 304.0 1,188.0 0.0 1,188.0

Unsecured Bond 1,185.3 0.0 1,185.3 1,181.5 0.0 1,181.5

Secured Bonds 1,485.3 0.0 1,485.3 741.5 0.0 741.5

Derivative financial instruments 15.8 0.0 15.8 57.4 0.0 57.4

Provisions 21.0 0.0 21.0 24.0 0.0 24.0

Deferred income tax liability 410.7 0.0 410.7 384.9 (20.8) 405.7

Other non current liabilities 2.0 0.0 2.0 0.1 0.0 0.1

Tota l non-current l iabil ities 3,424.2 0.0 3,424.2 3,577.5 (20.8) 3,598.3

Trade accounts payable 79.2 0.0 79.2 55.6 0.0 55.6

Deferred revenue 119.1 0.0 119.1 118.9 0.0 118.9

Current liabilities related parties 0.0 (43.2) 43.2 0.0 (39.5) 39.5

Derivative financial instruments 25.6 0.0 25.6 6.1 0.0 6.1

Provisions 5.4 0.0 5.4 6.4 0.0 6.4

Current taxes 3.5 0.0 3.5 0.0 0.0 0.0

Taxes and social securities 56.6 0.1 56.5 54.3 0.0 54.3

Personnel related liabilities 13.5 0.4 13.0 19.0 4.5 14.5

Accrued interest 25.1 0.0 25.1 18.3 0.0 18.3

Other current liabilities 82.7 0.2 82.5 73.4 0.8 72.7

Total current liabilities 410.6 (42.5) 453.0 351.9 (34.2) 386.1

TOTAL EQUITY AND LIABILITIES 5,216.9 151.8 5,065.1 5,273.6 232.9 5,040.6

30 June 2013 30 June 2012

Financial Information - The condensed consolidated balance sheet has been prepared in accordance with the International Financial



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Operating income 307.0 (0.2) 307.3 252.9 (39.7) 292.6

Adjustments f or:

Share based payments 0.0 0.0 0.0 20.0 20.0 0.0

Depreciation 124.2 0.0 124.2 128.0 0.0 128.0

Amortization 12.4 0.0 12.4 14.7 0.0 14.7

Movement in provisions (4.7) 0.0 (4.7) (1.3) 0.0 (1.3)

Working capital adjustments for:

(Increase)/Decrease in current assets (20.8) (0.2) (20.6) (14.6) 0.4 (15.0)

Increase/(Decrease) in current liabilities 4.1 94.1 (90.0) 36.7 (33.7) 70.4

Change in working capital (excl. accrued interest) (16.7) 93.9 (110.7) 22.1 (33.2) 55.4

Net cash flow from operating activities 422.3 93.7 328.6 436.3 (52.9) 489.3

Investing activities:

Capital expenditures (146.1) 0.0 (146.1) (120.7) 0.0 (120.7)

Acquisition (15.2) 0.0 (15.2) 0.0 0.0 0.0

Funding of joint venture (5.7) 0.0 (5.7) (9.5) 0.0 (9.5)

Interest received 0.0 0.0 0.0 0.4 0.0 0.4

Change in financial assets (0.1) 0.0 (0.1) 0.1 (0.0) 0.1

Net cash flow from (used in) investing activities (167.1) 0.0 (167.1) (129.7) (0.0) (129.7)

Financing activities:

3.625% Senior Secured Notes 748.5 0.0 748.5 0.0 0.0 0.0

Term Loan A 150.0 0.0 150.0 0.0 0.0 0.0

Revolver facility 160.0 0.0 160.0 0.0 0.0 0.0

Financing Fees (12.4) (0.8) (11.6) 0.0 0.0 0.0

Dividend (180.0) (92.2) (87.8) 0.0 53.0 (53.0)

Repayment of loans (1,063) 0.0 (1,063) (152.8) 0.0 (152.8)

Interest (98.0) 0.0 (98.0) (109.8) 0.0 (109.8)

Other financing activities (1.3) (0.6) (0.7) (0.7) 0.0 (0.7)

Net cash flow from (used in) financing activities (296.6) (93.5) (203.1) (263.3) 53.0 (316.3)

Net increase (decrease) in cash (equiv ale nts) (41.4) 0.2 (41.6) 43.3 0.0 43.3

YTD June 2013 YTD June 2012

Consolidated cash flow statement for Ziggo N.V. compared with Ziggo Bondco BV

(unaudited)

Financial Information - The condensed consolidated cash flow statement has been prepa red in accordance with the International Financial


130718 Ziggo Q2 2013 Earnings Release

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Transcript of 130718 Ziggo Q2 2013 Earnings Release