Liberty Global in Europe

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3 Liberty Global in Europe Digital technology is part of everyday life. All around the world, television, telephone and the internet unite and connect people. And our world is changing rapidly. The boundaries between television, the internet and telephone are fading. Consumer choice is redefining this new media world. Consumers decide which services and means of communication they want to use, and when and where to use them. Liberty Global makes this world possible and accessible for everyone. Liberty Global is a leading international cable operator offering advanced video, voice and broadband internet services to connect its customers to the world of entertainment, communications and information. The company operates state-of-the-art networks that serve approximately 18 million customers across 14 countries principally located in Europe, Chile and Australia (as of June 30, 2011). Liberty Global's operations also include programming businesses such as Chellomedia in Europe. 1

4 Liberty Global In Europe In Europe, Liberty Global is known under the brands UPC, Unitymedia (Germany), upc cablecom (Switzerland) and Telenet (Belgium) - all cable distribution companies and Chellomedia, the multimedia content provider with many branded (digital) television channels. In most of the countries in which it operates, Liberty Global also offers communication services for the business market. In Europe, Liberty Global reaches close to 26 million homes and provides services to 16 million customer households. Germany, the Netherlands, Belgium and Switzerland are Liberty Global s largest markets. The European headquarters in Schiphol-Rijk, the Netherlands is home to Liberty Global s technological development, network management and product development. And, as the location of Liberty Global s distribution centre, the Chello DMC (Digital Media Centre) in Amsterdam is the source of digital television for millions of households in Europe both in and outside Liberty Global s cable footprint. 2

5 The European headquarters near Amsterdam have evolved into the European gateway for technology development, network management and product development 3

6 , Innovative products provide consumers with information and entertainment services, whenever they want and in whatever form 4

7 Liberty Global Vision DIGITAL FOR EVERYONE The Digital Home is here today, a home in which the boundaries between television, the internet and telephony are rapidly fading. Anyone can participate, by viewing, ing, chatting, phoning or text messaging with the rest of the world. New innovative products offer consumers access to a growing range of information and entertainment. Watching television is a personal experience because you decide what you want to watch and when you want to watch it. The internet is extremely fast and can be tuned precisely to your preferences. Video telephony will be available soon. And wireless connections enable you to simply take your Digital Home with you. A new world is being created in which consumers have more control and choice, equipped with the latest technology and aided by simple, high-quality services. Liberty Global and its operating companies understand this and make this world accessible to everyone. Investing in infrastructure In the Digital Home, consumers use Triple Play services (television, internet and telephony all digital services) which are often provided by a single cable or telecom company. In the future, competition between different infrastructures will intensify. Infrastructure providers invest heavily in the quality of their networks, with important consequences for the economy and society. In Europe alone, Liberty Global has invested billions of euros up to 2011 to ensure that its networks and support systems are future proof. The Digital Home requires a reliable infrastructure that is suited to two-way traffic and has high capacity for broadband services. The vast majority of our hybrid fibre-coax networks are composed of glass fibre and superior to the existing DSL, ether or satellite infrastructures. This makes Liberty Global one of the most important innovators in its markets and the main challenger to traditional telecom providers. Innovative digital services Consumers can see the possibilities of new digital services, yet they will only really be convinced if they have tried them out and experienced the benefits first-hand. Liberty Global innovates so that it can offer consumers new products and services as rapidly as possible. Liberty Global was one of the first in Europe to introduce cable based broadband internet. Many other innovations followed, including large scale digital telephony (VoIP) with the same quality as landline and ultra-high broadband internet service for the consumer with speeds up to 128 Mbps. Throughout Europe Liberty Global is investing into the digital television migration, including Digital Video Recording (DVR), Video on Demand (VoD), HDTV and 3D TV. The company is also about to introduce a Next Generation TV Platform (multimedia home gateway), an all IP in the home platform capable of distributing video, voice and data throughout the home. This solution seamlessly combines linear TV, internet content, widgets/apps and advanced search & recommendations. Growth on an international scale Liberty Global believes in the benefits of scale and its networks now spanning many countries across the globe. Benefits of scale are crucial to competing with traditional telecom providers, which often operate at a national level and wield considerable market power. By contrast, Liberty Global s cable networks are regional and primarily found in the large cities. To compete with national telecom giants a company like Liberty Global has to make optimal use of international benefits of scale. It is this advantage that enables Liberty Global to apply proven best practices from various national markets to other regions. Its size makes Liberty Global a respected partner for the best media technology companies in the world to build a range of advanced products and services. 5

8 Liberty Global Public Policy Partner to governments and EU institutions Governments and European (EU) institutions closely follow the fast moving developments in the European communications and broadcasting industry, markets which are often subject to regulation and new policy initiatives. Liberty Global has long-term relationships with governments and key European institutions. In order to fully understand the environment in which Liberty Global is investing, and to provide the best possible services to our customers, Liberty Global is committed to engaging regulators and government officials in an ongoing, constructive dialogue. Dedicated EU presence Since 1999, Liberty Global has had a permanent representative office close to the European institutions in Brussels. We aim to be a credible discussion partner to national bodies, to the European Commission and to Members of the European Parliament, and to add value to the debate on significant public policy issues. Liberty Global is also an active member of Cable Europe, the Brussels-based trade association, which represents the interests of the entire European cable sector. As a pan-european operator, we contribute actively to the liberalisation and harmonisation of the EU communication markets and we firmly believe in the positive effects of enlarging the EU policy environment to include the Central European countries. In addition to its representation to the EU, in almost every country in which we operate Liberty Global and its operating companies have dedicated public policy and government affairs resources which are firmly rooted in the local community. typically based on in-depth analysis of trends and developments in our markets, highlighting various future scenarios where policy and regulation play a role. The Policy Series has so far included studies on Digital TV Migration Strategies, Triple play competition for the Digital Home, Infrastructure Competition between Next Generation Networks in Europe, Transformation of the European Video Content Market, Digital Confidence, Next Generation Competition in Telecommunications and the latest study, The New Rules of Openness. he The new new rules rules of of openness openn rules of o Liberty Global Public Policy Series In 2006, Liberty Global initiated a research programme designed to actively contribute to pending policy and regulatory debates at the EU and national levels. These Liberty Global Policy Series studies, which are published on a regular basis, are Next Generation Competition Driving Innovation in Telecommunications 1 2 6

9 7 The European Commission and the European Parliament in Brussels, source of many important government decisions for the communications and broadcasting industry

10 Liberty Global is the driving force behind digital television and converged services in the Digital Home

11 Liberty Global Economy & Technology Bringing Growth to the European Economy The role of cable in driving infrastructure competition and in accelerating service innovation in Europe has been widely acknowledged. The launch of high speed broadband internet via cable in the late nineties accelerated the introduction of broadband internet over telecommunications networks, making Europe one of the most competitive broadband markets in the world. Particularly in countries with a traditionally strong cable presence and in countries with significant cable sector consolidation, broadband internet penetration has risen quickly to very significant levels. With cable introducing ultra-high broadband internet speeds over its next generation fibre networks, a new boost to the digital economy can be expected. In order to deliver the sustainable economic and social benefits of broadband, with its 2010 Digital Agenda, the European Commission aims to achieve broadband access for all European households by By 2020, all European households should have access to much higher internet speeds (download rates of 30 Mbps) and 50% or more should have access to internet connections above 100 Mbps. Cable companies will be able to meet these goals for 2013 and 2020 and beyond well ahead of time. Infrastructure competition is delivering significant tangible benefits to consumers offering ever-increasing broadband speeds at affordable prices. Equally, cable is driving innovation and competition in the voice telephony and digital television markets. In its service areas in Europe, Liberty Global is introducing competitive triple play offerings, giving customers an unprecedented choice of different internet, telephony and television services, all tailored to customer needs. Previously static markets are being shaken up. Operators are moving into each other s traditional core markets. Telecommunications incumbents need to innovate their telephony services and lower their prices in response to the competition introduced by cable entering the telephony market. New television channels, innovative interactive applications such as Video on Demand and more European content formats & programmes are being launched on the back of the much wider television offering available to customers through the new digital television platforms of cable, telecommunications, terrestrial and satellite. The value of content rights is growing. Supply industries for network technology and customer television reception equipment are booming. The Driving Force behind Digital Television Liberty Global is firmly committed to the break-through of digital television, an area in which Europe is lagging behind the US and Japan. Digital programming in Europe is still in its early development. To accelerate change, Liberty Global is investing heavily in the roll-out of digital television in Europe. In addition to better quality and broader programming, the added value of digital television is in new interactive services that allow viewers to determine not only what they watch but when they watch it. Liberty Global and its operating companies are developing these services throughout Europe: Video-on-Demand (VoD), which gives access to a vast library of films and programmes; the Digital Video Recorder (DVR), which makes it possible to time shift, pause and rewind live broadcasts; the Electronic TV Guide (EPG), which helps viewers find and record their preferred programmes among the growing number of channels; a full High Definition Television (HDTV) product and 3D services. Triple Play: Converging Services in the Digital Home At Liberty Global, triple play stands for more than digital television, internet and telephony in a single subscription from a single provider. Of course, the ease of receiving a single bill and installing the system in one go is important. However, today s consumers, and certainly future generations, want ease of use, simplicity and comfort: a single solution. Why get up if you can use your television to also access your voic , and web-based content? The future is one multimedia home gateway, an IP enabled home platform capable of distributing video, voice and data throughout the home. The convergence of multiple platforms through one device provides a truly unified experience based on a user interface that seamlessly integrates video content with widgets, apps and an advanced search and 9

12 recommendation engine. An intuitive way for people to access their live, timeshifted, on-demand, and web-based content on the television. Technological excellence Liberty Global develops its own technology. In the fiercely competitive infrastructure market, the speed at which new products can be launched is crucial. Liberty Global s strength lies in bringing together the right technology manufacturers and jointly developing, integrating and testing new applications. Liberty Global develops new applications with multiple suppliers using (industry) standards in order to get the best the market has to offer. Liberty Global prefers to work in this open way. This makes its solutions more future proof: they are compatible and as functionality increases, prices decrease. Guiding and working with technology partners such as Cisco, Samsung, Ericsson, Intel, NDS,Nagravision, Pace, Accenture and Oracle, requires considerable technological expertise from Liberty Global, because suppliers new technologies are often not directly suitable for the mass market. Liberty Global has its own labs at its headquarters in Schiphol-Rijk where new technologies are tested. After rigorous testing the technology is integrated into the networks. Liberty Global s operating companies across Europe have their own technology experts who are equipped to integrate these new technologies. Increasing the intelligence of networks In the past decade, the intelligence and capacity of the company s cable networks have increased dramatically. In our most advanced markets, these are truly Next Generation Networks that are guaranteed to be future proof and secure. A vast majority of our networks are composed of glass fibre. For example, Liberty Global has in 10 European countries (excluding Telenet) over 40,000 route kms of glass fibre and more than 200,000 km of coax cable. Fibre is, in most parts of the network, less than 100 meters from the customer s premises. Only the last part that connects the home to the network is cable (coax). Hence the name hybrid fibre coax. There is no need to replace the last length of coax with glass to further increase the capacity of the network. Since 2008, Eurodocsis 3.0, cable s next generation broadband technology is being deployed by cable operators across Europe which have successfully tested internet speeds of over 1 Gbps, more than 50 times faster than the top broadband speeds over ADSL. Our networks are highly reliable. In the event of a failure in one part of the network, there are several options for rerouting signals. The national networks are connected to the European Liberty Global backbone network, Aorta. The Aorta backbone is recognised as a Tier 1 Carrier, placing it among the top-class telecom networks in the world. Over 90% of our networks are fully equipped for two-way traffic and suitable for carrying television, data and telephony simultaneously using a variety of transport protocols. Software is added to make the networks more user-based and gear them more towards the needs of customers. For example, users can install new services without calling in a technician and the network is suitable for individual user services, such as Video-on-Demand (VoD) 10

13 over 40,000 route km of glass fibre running up until 100 meters from the home

14 Senior citizen internet courses Internet safety Bridging the digital divide LIBERTY GLOBAL CORPORATE RESPONSIBILITY FRAMEWORK Including everyone in the digital world Protecting minors as they use our services Promoting digital confidence Ensuring the privacy and security of our customers TV portal for children alternative energy Delivering responsible marketing, sales and customer care Building a responsible supply chain Our other responsibilities Treating our employees well Managing our environmental impacts safe desktop software Scholarships for aids orphans Community projects

15 Liberty Global Corporate Responsibility Liberty Global s approach to corporate responsibility Our products and services connect people to the digital world; the social benefits of this are enormous. Our customers use our products to communicate, interact, be entertained, seek information, share content and help them understand the world around them. With this comes a responsibility to understand the impacts, both positive and negative, that our products have on the communities in which we operate, and to act accordingly. We believe that corporate responsibility (CR) can be good for our business and good for society. It s about how we do business and how we deliver sustainable returns to our shareholders, while making the most of the opportunities and benefits that our products and services create. This is why our corporate responsibility strategy focuses on promoting digital confidence this is the cornerstone of our CR strategy and it is what our stakeholders have told us is most important to them. For us, digital confidence consists of three areas: including everyone in the digital world, protecting minors as they use our services and ensuring the privacy and security of our customers. These three areas form the core of our corporate responsibility strategy. We also recognize that we have responsibilities in four other important areas we need to manage our environmental impacts effectively, treat our employees well, build a responsible supply chain, and sell and market our products responsibly. We are therefore also actively managing these areas as part of Liberty Global s overall CR strategy. Digital inclusion Our digital inclusion framework consists of widening access, enhancing skills and creating opportunities. We believe that by focusing initiatives on these three areas we can help people to enter the digital world. In Belgium, the Telenet Foundation has been bridging the digital divide over the past years by investing over 1 million across 250 local projects positively affecting over 30,000 people. While in Poland and Hungary, UPC s E-Senior Academy programmes provide free computer and internet courses to senior citizens. To us digital inclusion is not just about access and skills. Total inclusion is also about helping people learn how to make the most of our digital products and services. Thus, in the Netherlands we developed donation by red button, where customers can use the interactive functionality of digital TV and directly donate to a charity. Protecting minors as they use our services We aim to help make the internet and digital TV a safe and secure place for everyone. However, we focus our activity on young people, as we believe this group is most vulnerable. Thus, our E3 strategy sets to educate, empower and enforce where necessary. Liberty Global has partnered with Insafe, a European Commission funded project promoting internet safety across Europe, to create an internet safety toolkit for parents and kids. Over 300,000 copies of the printed toolkit have been distributed in 18 countries. In several countries, we launched the Magic Desktop software, empowering parents to create a safe and secure computer environment for their children. Environment We believe we have a responsibility to reduce the impact of the company s operations on the environment. We launched Climate Challenge, a company-wide programme designed to reduce our carbon emissions and to help our employees to do the same. Climate Challenge is composed of a number of streams including: calculating our carbon footprint, improving the efficiency of our network and offices, developing alternative energy solutions, reduction of energy use by customer equipment and raising employee awareness. We are not only committed to reducing our own carbon footprint, but are also helping our customers reduce their footprint and save money. For example, in 2009 UPC Broadband announced the next generation of energy saving set-top boxes. These boxes have been designed to use less than 1W in stand-by mode and consume an average of 5.5W in the eco-mode. UPC also addresses the energy consumption of existing set-top boxes by deploying new software that will enable these boxes to go to auto stand-by after a period of inactivity. Please visit: or communications@lgi.com. 13

16 Liberty Global at a Glance* Liberty Global is the leading international cable operator offering advanced video, voice and broadband internet services to connect its customers to the world of entertainment, communications and information. As of june 30, 2011, Liberty Global operated state-of-the-art networks serving approximately 18 million customers across 14 countries principally located in Europe, Chile, and Australia. Liberty Global s operations also include significant programming businesses such as Chellomedia in Europe. LIBERTY GLOBAL IN EUROPE Liberty Global s European activities are conducted through UPC Broadband, Telenet and Chellomedia. UPC Broadband (UPC) is the European division of Liberty Global, Inc., the world s leading international cable operator. UPC brings television, broadband internet and telephone services to approximately 13.4 million customers throughout 10 European countries under the UPC, upc cablecom and Unitymedia brands. The company is driven by its vision that this amazing but often complex digital world should be for everyone. UPC s employees throughout Europe strive to make this happen by bringing simplicity and a real touch to everything they do. Telenet is the largest cable television operator in Belgium. Telenet offers television, broadband internet, and traditional circuit-switched & digital (VoIP) telephony services to 2.2 million customers (as of June 30, 2011). Telenet also offers mobile telephony service as a mobile virtual network operator. Liberty Global indirectly owns 50.3% of Telenet. Telenet is also listed on NYSE Euronext Bruxelles. Chellomedia is the international content division of Liberty Global, Inc. It is a leading producer and distributor of television channels and a provider of advanced digital services to other international channel operators. The division operates a portfolio of 45 channels, of which 31 are 100% owned and 14 are joint ventures with leading media companies such as MGM, CBS, AETN, the Outdoor Channel and Zon Multimedia. Chellomedia also provides a full range of TV services through its B2B businesses - At Media and the Chello DMC (Digital Media Centre) - to a variety of leading international channels. KEY DATA Leading international cable operator Revenue: $10.5 billion** Employees: 20,000 Active in Europe (UPC, upc cablecom, Unitymedia, Telenet, Chellomedia), The Americas (VTR, Liberty Puerto Rico) and Australia (AUSTAR) 31.4 million homes passed 17.6 million customers 28.3 million service subscribers (RGUs), including video, internet, and voice Listed on NASDAQ and included in FTSE4Good, Fortune 500, Forbes Global Europe The Americas Australia 14 **Revenue is presented as annualized results (as of June 30, 2011)

17 Liberty Global s global operations map THE AMERICAS TOTAL SERVICE SUBSCRIBERS Video Voice Internet 995, , ,200 DENVER LONDON EUROPE TOTAL SERVICE SUBSCRIBERS Video 14,874,000 Voice 4,244,800 Internet 5,947,600 AMSTERDAM BRUSSELS BUDAPEST SANTIAGO WORLDWIDE TOTAL SERVICE SUBSCRIBERS Video 16,663,300 Voice 4,929,300 Internet 6,774,800 Total (RGUs) 28,337,400 AUSTRALIA TOTAL SERVICE SUBSCRIBERS Video 764,300 SYDNEY 15 * As of June 30, 2011

18 Electronic programme guide Donations on demand Catch up tv games tv search premium pay tv red button voting kids tv guide video on demand After successful tests in the UPC labs, new technology is rolled out and integrated into the networks

19 Liberty Global - European Cable Operations The international nature of Liberty Global and its European headquarters in Amsterdam is reflected in the make-up of its staff. Every day almost 1,000 employees, representing over 50 nationalities, manage and develop the European cable operations of Liberty Global. The Amsterdam office concentrates on customary headquarter functions, customers, technology, product and network development. The company is driven by its vision that this amazing but often complex digital world should be for everyone. Liberty Global s employees throughout Europe strive to make this happen by bringing simplicity and a real touch to everything they do. Technology Development and Labs Liberty Global s ambitions call for solid technical foundations. In Europe, these foundations are created centrally, where the design and architecture of the network are developed. Activities then vary from high-level design, which focuses on the longevity, consistency and capacity of the network as a whole, to low-level design, which encompasses the knowledge and designs that are needed to actually create cable connections. Liberty Global also has the technological know-how to translate new product concepts into technical requirements, which are developed with leading technology suppliers and then tested in its labs using where possible open (industry) standards. Product Development Liberty Global defines and develops its new services for its Triple Play offer at its headquarters in Amsterdam, where strategic and market analysis, product development and product management take place. The product focus in the coming years will be on continuing to improve our current digital TV services such as VoD and HDTV and to innovate and introduce new ones, and to leverage Fibre Power speeds of up to 128 Mbps plus develop value-added services. The main challenge is to converge our digital services and consumer electronics. Imagine a network DVR that allows you to continue watching a film in your bedroom that you started watching in the living room. Or imagine listening to your voic via the television; a mobile telephone that switches automatically to the cheaper land-based network when you are at home. Or a mobile telephone that allows you to set your DVR. Network Monitoring Centre Liberty Global monitors its European network from the Network Monitoring Centre in Amsterdam, 24 hours a day, 7 days a week. In addition to network maintenance and incident prevention, keeping the network future proof is a priority. This ensures that capacity is sufficient for future requirements and that new services can be rolled out quickly and smoothly. The Network Monitoring Centre implements new software and technology and coordinates the integration of newly-acquired cable networks into the European network. Customer Care Customer care is a key pillar of our products and services. Several of our operations have won customer care awards such as UPC Netherlands winning the National Contact Centre Award (NCCA) for its Custom Made Career programme. The company focuses on the development of its Customer Agents and is also leading with the introduction of web care teams who monitor social media, including webforums, blogs, twitter etc. and pro-actively react to statements on the company and its products and services. The web care teams have proven to be valuable for the reputation of our country operations. UPC Business & Telenet Solutions UPC Business and Telenet Solutions service the business (B2B) markets and brings businesses the best digital products and services in a simple, and hassle free way. Together they are active in all 11 European countries in which the company operates. Both UPC Business and Telenet Solutions offer a complete range of communications solutions from standard voice, data, internet, wholesale and hosting services to the more advanced services and next generation technologies for carriers, companies, institutions and administrative bodies from large organisations to small and medium sized enterprises (SME). Both groups are strongly represented in the government, public and healthcare sectors, serving for example many hospitals throughout Europe. 17

20 Liberty Global - Chellomedia Chellomedia is the European content division of Liberty Global. It is a leading producer and distributor of television channels and a provider of advanced digital services to other international channel operators. The division operates a portfolio of 45 channels, of which 31 are 100% owned and 14 are joint ventures with leading media companies such as MGM, CBS, AETN, the Outdoor Channel and Zon Multimedia. Chellomedia also provides a full range of TV services through its business to business operations At Media and Chello DMC (Digital Media Centre) to a variety of leading international channels. These channels are managed and distributed through 79 feeds and multiplexes and reach 244 million households worldwide across consolidated (147 million) and non-consolidated (97 million) channels, multiplexes and feeds. Operations and Businesses Chellomedia s main operations are based in London, Amsterdam, Budapest and Madrid. Chello Zone Chello Zone is a leading international broadcaster and distributor of thematic television channels across Europe, the Middle East, Africa and Asia. With drama, factual, sports, movies, children s and lifestyle television, its channels offer something for everyone. Chello Zone owns a portfolio of five consolidated channel brands: Zone Reality, Zone Romantica, Fantasy, Extreme Sports Channel and preschool channel JimJam. Chello Zone also operates a number of joint venture channels in the EMEA region, including Outdoor Channel and a portfolio of six UK entertainment channels with CBS Studios International. The consolidated and joint venture channels reach audiences in more than 160 million homes across over 100 countries and in 25 languages. Chello Benelux is a leading supplier of premium film and sport channels to the Dutch TV market distributing its premium pay TV channels Film1 and Sport 1 to cablenetworks and satellite operators as well as the Weather & Traffic Channel (Weer & Verkeer). Chello Central Europe focuses on content brands in Central Europe. Its current portfolio of channels for the region includes Filmmúzeum, Minimax, Spektrum, SPORT1, SPORT2, SPORT M, Spektrum Home, TV Paprika, Zone Club, Zone Romantica, Zone Europa and a joint venture with MGM. In addition to its thematic channel business, it also operates AT Media, Poland's leading thematic channel advertising sales agency, and offers distribution and marketing services to a number of TV companies across the region. Chello Multicanal (Multicanal Iberia and Iberian Program Services) is the leading independent producer of thematic television channels in the Iberian market (Spain & Portugal), operating a portfolio of 18 channels. Its TV brands in Spain include Canal Hollywood, XTRM, Somos, Ctk, MGM, Odisea, Natura, Canal de Historia, Bio, Canal Cocina, Decasa, Sol Musica, KidsCo and Buzz. The Chello Multicanal brands in Portugal include Canal Hollywood, Canal Panda, Panda Biggs and Mov. Chello On Demand provides advanced Demand services, principally to UPC Broadband, leveraging its infrastructure and economies of scale to deliver comprehensive content solutions and technology, and operational support for affiliates across the continent. This specialist team provides digital customers with a wide range of Hollywood blockbusters and the best of European films, as well as music, children s, factual and entertainment programming, tailored by market and distribution platform. Chello DMC is one of Europe s leading providers of channel playout services, TV distribution and content delivery for new media applications. The Amsterdam based advanced digital media facility specialises in multi-lingual and multi-platform broadcasting in standard and high definition. Chello DMC currently transmits over 60 channels across continental Europe, the UK, Middle East, Asia and South Africa, including National Geographic Television, E! Entertainment, MGM, History Channel, Extreme Sports Channel, Zone Reality and Playboy. 18

21 Chellomedia s strong stable of thematic channels

22 Liberty Global Presence in Europe Liberty Global has operating cable companies in 10 European Member States and in Switzerland. Across Europe, Liberty Global is one of the principal consolidators in a historically very fragmented cable landscape. Reaching significant operational scale nationally to achieve scale benefits, (e.g. for the procurement of state-of-the-art customer equipment or for acquiring premium content rights) is of vital importance for cable s ability to introduce innovative services to compete with the national telecommunications incumbents that are traditionally operating nationwide. Liberty Global supports its country operations with the implementation of its innovative product & services roadmap, which includes: Introduction of innovative triple play services including Fibre Power internet, digital TV with advanced services such as Video On Demand, Catchup TV and HD television and VoIP telephony Best practice customer relationship management & support systems Centralised content acquisition & exploitation Investments in a consistent state-of-the-art cable network architecture and international backbone connectivity (AORTA) Centralised technological & operational support for networks and triple play services A coherent Corporate Responsibility framework DUBLIN LONDON AMSTERDAM MECHELEN COLOGNE LUXEMBOURG ZURICH BERLIN VIENNA PRAGUE BRATI B MADRID 20

23 SLAVA WARSAW UDAPEST BUCHAREST AUSTRIA KEY FACTS* 1.2 million homes passed 519,000 video subscribers, of which 283,000 are digital cable Digital video services include DVR, HD and VoD 443,000 broadband internet subscribers Internet speeds range up to 100 Mbps 340,000 telephony subscribers UPC Austria is the largest cable television operator in Austria. UPC Austria provides analogue & digital cable video, broadband internet, and traditional & digital telephony services (VoIP) to 692,000 customers. UPC Austria also offers mobile telephony as part of a bundle and DSL services in the majority of the country. UPC Austria s customers are primarily located in Vienna and other regions, including Graz, Klagenfurt, Innsbruck, Wiener Neustadt, and Baden. UPC Austria s network is entirely upgraded to two-way capability, with approximately 90% of its homes passed served by a network with a bandwidth of at least 860 MHz. In addition, UPC Austria offers a range of voice and data services to business customers throughout Austria. UPC Austria offers analogue and digital video services. The average analogue cable subscriber receives a package of 40 channels, mostly in German language, and over 30 radio channels. UPC Austria s digital cable service offers over 140 video channels and over 70 radio channels (including the channels in its analogue package). Through its digital service, UPC Austria also offers premium programming, EPG, interactive services, VoD, DVR and HD-DVR time-shifting capability, including HD television channels. UPC Austria s broadband internet service offers multiple tiers of broadband internet service. Download speeds range up to 100 Mbps UPC Austria also offers several internet products based on DSL technology to both private and business customers. UPC Austria provides fixed-line voice with traditional circuit-switched telephony, as well as feature-rich digital telephony via VoIP (Voice over Internet Protocol). Digital voice services are also provided to DSL customers. UPC Austria also offers a bundle of fixed line and mobile voice services in a co-branding arrangement with Orange Austria Telecommunications, GmbH (B2C) and 3 Hutchison 3G Austria (B2B). BELGIUM KEY FACTS* 2.8 million homes passed 2.2 million video subscribers, of which 1.3 million are digital cable Digital video services include DVR, HD and VoD 1.3 million broadband internet subscribers Internet speeds range up to 100 Mbps 847,000 telephony subscribers 221,000 mobile telephony subscribers Liberty Global indirectly owns 50.3% of Telenet. Telenet is listed on NYSE Euronext Bruxelles. Telenet is the largest cable television operator in Belgium. Telenet offers video, broadband internet, and traditional circuit-switched & digital (VoIP) telephony services to 2.2 million customers. Telenet also offers mobile telephony service as a mobile virtual network operator. Telenet s customers are primarily located in the Flanders region and a part of the capital city of Brussels. Its networks are all upgraded to two-way capability and all of its cable homes passed are served by a network with a bandwidth of at least 450 MHz. Telenet makes its quadrupleplay services available to all of its homes passed. Telenet also offers a range of voice and data services to business customers throughout Belgium under the brand Telenet Solutions. For its analogue cable customers, Telenet offers a basic package of at least 25 video channels and 24 radio channels depending on the region. For its digital cable subscribers, Telenet offers over 100 video channels (including channels from its analogue service), depending on the package. In addition, Telenet s digital offer includes a variety of premium channels, interactive services, on demand services (VoD), DVR and HD DVR time-shifting capabilities, as well as HD television channels. Telenet offers three tiers of broadband internet service with download speeds ranging up to 100 Mbps. Telenet offers circuit-switched voice services as well as multi-feature digital telephony via VoIP (Voice over Internet Protocol) to all its homes passed. Telenet also offers mobile voice services as a mobile virtual network operator. CZECH REPUBLIC KEY FACTS* 1.3 million homes passed 591,000 video subscribers, of which 499,000 are digital cable and DTH Digital video services include DVR and HD 424,000 broadband internet subscribers Internet speeds range up to 100 Mbps 191,000 telephony subscribers UPC Czech is the largest cable television operator in the Czech Republic. UPC Czech provides analogue & digital video, broadband internet, and digital voice services to 747,000 customers. UPC Czech s customers are located in cities and towns throughout the country, including the capital city of Prague, Brno, Ostrava, Pilsen, and Liberec. Its networks are 92% upgraded to two-way capability, with 91% of its homes passed served by a network with a bandwidth of at least 860 MHz. In addition, UPC Czech offers a range of voice and data services to business customers throughout the Czech Republic. UPC Czech offers analogue and digital video services. An analogue cable subscriber may receive over 40 channels and 20 radio channels, as well as two premium channels. UPC Czech s digital cable services offers over 100 digital channels, and 22 channels in the analogue package as well as multiple premium services, and 30 radio channels. UPC also offers DVR and HD-DVR, including HD channels. UPC Direct, a digital satellite television service that provides over 150 coded and free to air TV channels and approximately 30 radio stations in digital quality, is also available in the Czech Republic. UPC Czech offers a range of broadband internet tiers with download speeds ranging up to 100 Mbps, with pricing according to package and speed. UPC Czech offers feature-rich digital telephony services through VoIP (Voice over Internet Protocol). The VoIP services are available to over 90% of its homes passed. *All operating data as per June 30, 2011

24 GERMANY KEY FACTS* 8.7 million homes passed 4.5 million video subscribers, of which 1.6 million are digital cable Digital video services include DVR and HD 895,000 broadband internet subscribers Internet speeds range up to 128 Mbps 893,000 telephony subscribers HUNGARY KEY FACTS* 1.4 million homes passed 820,000 video subscribers, of which 481,000 are digital cable and DTH Digital video services include DVR, HD and VoD 412,000 broadband internet subscribers Internet speeds range up to 120 Mbps 292,000 telephony subscribers IRELAND KEY FACTS* 873,000 homes passed 481,000 video subscribers, of which 385,000 are digital cable Digital video services include DVR and HD 225,000 broadband internet subscribers Internet speeds range up to 100 Mbps 121,000 telephony subscribers THE NETHERLANDS KEY FACTS* 2.8 million homes passed 1.9 million video subscribers, of which 944,000 are digital cable Digital video services include DVR, HD and VoD 882,000 broadband internet subscribers Internet speeds range up to 120 Mbps 778,000 telephony subscribers Unitymedia is the second-largest cable television operator in Germany, providing analogue & digital video, broadband internet, and digital voice services to 4.6 million customers. Unitymedia is the largest cable television operator in the German federal states of North Rhine-Westphalia and Hesse, which are among the most prosperous and densely populated regions in Europe. The cable footprint, passing approximately 8.7 million homes, covers ten of the largest cities in Germany, including Cologne, Dusseldorf, and Frankfurt. Its network are 94% upgraded to two-way capability. In addition, Unitymedia offers a range of voice and data services to business customers throughout North Rhine- Westphalia and Hesse. Unitymedia s analogue TV package includes up to 36 television channels and 34 radio channels. The basic digital TV package includes up to 75 television channels and 70 radio channels which can be complemented by an additional 53 pay SD-channels and 16 HD channels bundled in 2 SD/HD packages and another 45 international channels in 12 languages. Unitymedia s digital services include premium and HD programming, DVR time-shifting capability and near on demand services. Unitymedia offers multiple tiers of broadband internet services to its customers. Download speeds range from 16 Mbps to 128 Mbps with its next-generation broadband internet service. Unitymedia has rolledout Fiber Power on the basis of DOCSIS 3.0 to offer broadband speeds of up to 128 mbps in 84% of its 2-way upgraded network. Unitymedia offers feature-rich digital telephony via VoIP (Voice of Internet Protocol) to 94% of all its homes passed. UPC Hungary is the largest cable television operator in Hungary. It provides analogue & digital video, broadband internet, and traditional circuit-switched & digital telephony services (VoIP) to 948,000 customers. UPC Hungary s customers are located in 18 major Hungarian cities and towns and their surrounding areas, including the capital city of Budapest. Its network is 99% upgraded to two-way capability, with 65% of its cable homes served by a network with a bandwidth of at least 750 Mhz. UPC Hungary also offers business customers located in its service areas a variety of internet and telephony packages, managed leased lines, and virtual private network services. UPC Hungary provides analogue and digital video services. An analogue cable subscriber receives up to 31 channels. UPC Hungary offers a digital package of up to 71 channels (including the simulcast of channels in its analogue service), plus premium packages and HD programming. Through its digital service, UPC Hungary also offers DVR and HD-DVR time-shifting capabilities. UPC Direct, a digital satellite television service that provides over 150 coded and free to air TV channels and approximately 30 radio stations in digital quality, is also available in Hungary. UPC Hungary offers multiple tiers of broadband internet service with download speeds ranging up to 120 Mbps. Following a gradual deployment, over one million homes are enabled to benefit from connections that are five times faster than ADSL s maximum speed. UPC Hungary offers fixed-line voice with traditional circuit-switched telephony, as well as feature-rich digital telephony via VoIP (Voice of Internet Protocol) over its two-way capable network throughout Hungary. UPC Ireland is the largest cable television operator in Ireland. UPC Ireland provides video, broadband internet, and digital (VoIP) telephony services to 531,000 customers. UPC Ireland s customers are located in five regional clusters, including the capital city of Dublin and Cork. Its cable network is 78% upgraded to two-way capacity, with 73 of its cable homes served by a network with a bandwidth of at least 550 Mhz. UPC Ireland makes its digital video, broadband internet, and wire line voice services available to 95%, 78%, and 73%, respectively, of its homes passed. In rural Ireland, UPC offers a digital multichannel TV service across its MMDS platform. In addition, UPC Ireland offers to business customers a complete range of telecommunications solutions including voice, data and internet services to the Corporate, Wholesale and SME markets. UPC Ireland is also a trusted partner to the public sector, such as health organizations. UPC Ireland provides analogue and digital video services via cable and MMDS. An analogue cable subscriber receives up to 18 channels including domestic, foreign, sports, and movie channels. UPC Ireland s digital cable services offers up to 105 video and 39 radio channels. Its digital offering also includes over 20 channels of premium services and a pay-per-view service. UPC Ireland also offers a digital + service (DVR) and HD channels. UPC Ireland offers a range of internet download speeds of up to 100 Mbps using the next generation cable broadband standard EuroDocsis 3.0. UPC provides a telephony service which is delivered over the cable infrastructure. Call packages include free local, national and international calls to selected destinations. UPC Netherlands is the 2nd largest cable television operator in the Netherlands. UPC Netherlands provides analogue & digital cable video, broadband internet, and fixed telephony services to 1.9 million customers. UPC Netherlands customers are located across six broad regional clusters, including the two largest cities, Amsterdam and Rotterdam. Its networks are 96% upgraded to two-way capability, and almost all of its cable homes are served by a network with a bandwidth of at least 860 MHz. UPC Netherlands also offers a range of voice, broadband internet, private data networks, and customized network services to business customers. UPC Netherlands provides analogue and digital video services. An analogue cable subscriber receives approximately 30 video channels and 40 radio channels, depending on location. UPC Netherlands digital cable service offers up to 90 video channels (including the channels in its analogue service), depending on the package, and up to 70 radio channels. Through its digital service, UPC Netherlands also offers additional premium programming, interactive services, as well as DVR and HD-DVR time-shifting capability, on demand services (VoD), and HD television channels. UPC Netherlands s broadband internet service offers 6 tiers, providing among the best-in-market stand alone and bundled internet speeds. Download speeds up to 120 Mbps are available throughout the entire footprint. UPC Netherlands provides a feature rich fixed-line telephony service based on VoIP (Voice over Internet Protocol). *All operating data as per June 30, 2011

25 POLAND KEY FACTS* 2.1 million homes passed 1.0 million video subscribers, of which 408,000 are digital cable Digital video services include DVR, HD and VoD 539,000 broadband internet subscribers Internet speeds range up to 120 Mbps 232,000 telephony subscribers ROMANIA KEY FACTS* 2.1 million homes passed 1.1 million video subscribers, of which 557,000 are digital cable and DTH Digital video services include DVR and HD 258,000 broadband internet subscribers Internet speeds range up to 120 Mbps 160,000 telephony subscribers SLOVAKIA KEY FACTS* 496,000 homes passed 259,000 video subscribers, of which 142,000 are digital cable and DTH Digital video service include DVR and HD 78,000 broadband internet subscribers Internet speeds range up to 120 Mbps 39,000 telephony subscribers SWITZERLAND KEY FACTS* 2.1 million homes passed 1.5 million video subscribers, of which 510,000 are digital cable Digital video services include DVR, HD and VoD 525,000 broadband internet subscribers Internet speeds range up to 100 Mbps 339,000 telephony subscribers UPC Poland is the largest cable television operator in Poland. UPC Poland provides video, broadband internet, and digital (VoIP) telephony services to nearly 1.1 million customers. UPC is a leading provider of triple play services in Poland. UPC Poland s customers are located in regional clusters encompassing ten of the largest cities in Poland, including the capital city of Warsaw as well as Katowice, Cracow and Gdansk. Its network is 95% upgraded to two-way capacity, with 98%of its homes passed served by a network with a bandwidth of at least 860 Mhz. UPC Poland also offers broadband internet and voice services to business customers. UPC Poland offers analogue and digital video services. An analogue cable subscriber may receive up to 60 channels, depending on the package. UPC Poland offers digital cable service with over 150 channels (including the channels in its analogue service). A variety of premium services are availablefor an additional fee to digital subscribers. Through its digital service, UPC Poland also offers DVR time-shifting capability and HDTV. In December 2009, UPC Poland introduced a video-ondemand (VOD) service (UPC on Demand), offering over 450 titles to all digital subscribers in selected locations, irrespective of their programme package and decoder. UPC offers seven Channels on Demand. UPC Poland offers five tiers of broadband internet service in most of its network. Its download speeds range up to 120 Mbps. UPC Poland offers feature-rich digital telephony via VoIP (Voice over Internet Protocol). Its VoIP services are available to 95% of its homes passed. Romania provides video, broadband internet, and digital (VoIP) telephony services to 1.1 million customers. UPC Romania operates in nine of the 12 largest cities in the country, including Bucharest, the capital city, Timisoara, Cluj, and Constanta. Its networks are 79% upgraded to two-way capability with 76% of the homes passed served by a network with a bandwidth of at least 860 MHz. UPC Romania also offers a wide range of fixed line voice and broadband internet products, and hosting services to business customers ranging from small and mediumsized businesses to large multinational companies. UPC Romania offers analogue cable service with up to 56 channels, depending on location and package. Its digital video offering includes up to 115 channels, plus 11 HD programmes. UPC Romania offers premium channels and packages, including HBO Maxpak to digital subscribers for an additional fee (for the MAXIM digital package, HBOMaxpak is included). Through its digital service, UPC Romania also offers DVR time-shifting capability and HDTV. Focus Sat, a digital satellite television service that provides over 70 coded and free to air TV channels and approximately 46 radio stations in digital quality, is also available in Romania. UPC Romania offers four tiers of broadband internet services with download speeds ranging up to 120 Mbps. UPC Romania offers feature-rich digital telephony via VoIP (Voice over Internet Protocol) to over 75% of its homes passed. UPC Slovakia is the largest cable television operator in Slovakia. UPC Slovakia provides video, broadband internet, and digital (VoC) telephony services to 272,000 customers. UPC Slovakia s customers are located in more than 30 cities and towns in Slovakia, including the five largest cities of Bratislava, Kosice, Presov, Banska Bystrica, and Zilina. Its networks are 89% upgraded to two-way capability with 93% of the homes passed served by a network with a bandwidth of at least 860 MHz. In some areas like Bratislava, the capital city, its network is fully upgraded to two-way capability. In addition, UPC Slovakia offers a range of voice and data services to business customers throughout Slovakia. UPC Slovakia offers analogue cable packages of up to 50 channels. For an additional fee, UPC Slovakia offers an HBO premium service to its analogue customers. A digital cable subscriber may receive up to 110 channels, depending on the package (including the channels in its analogue service). The digital offering includes multiple premium packages, DVR time-shifting capability, and HDTV. UPC Slovakia offers five tiers of broadband internet service for residential customers with download speeds ranging up to 120 Mbps. UPC Slovakia also offers multi-feature digital telephony via VoC (Voice over Cable) to 74% of its homes passed. upc cablecom is the largest cable television operator in Switzerland. upc cablecom provides video, broadband internet, and traditional circuitswitched & digital (VoIP) telephony services to 1.5 million customers. upc cablecom also offers mobile voice services through a pre-paid offering. upc cablecom`s customers are located in three regional clusters, including the major cities of Bern, Zurich, Lausanne, and Geneva. Its nationwide network is over 95% upgraded to two-way capability almost all of these cable homes passed served by a network with a bandwidth of 862 MHz. In addition, upc cablecom offers a range of voice and data services to business customers throughout Switzerland. For its analogue cable customers, upc cablecom offers a basic service of a minimum of 36 video channels and 35 radio channels. For its digital cable customers, upc cablecom offers packages offering between 55 and more than 165 video channels. In 2010, upc cablecom launched the DigiCard, a small device fitting into the side of a CI+-capable TV-set, offering digital television without an additional Set-Top-Box. Additionally, upc cablecom customers receive over 100 radio channels (including the channels in its analogue service) and a range of additional pay television programming in a variety of foreign language program packages. Through its digital service, upc cablecom also offers video on demand services (VOD), DVR & HD-DVR time-shifting functionality, as well as HD television channels. upc cablecom offers seven tiers of broadband internet service with download speeds ranging up to 100 Mbps in most major Swiss cities. upc cablecom offers multi-feature digital telephony via VoIP (Voice over Internet Protocol) to over 95% of its homes passed. upc cablecom also offers a pre-paid mobile service to all customers in Switzerland. *All operating data as per June 30, 2011

26 Working at Liberty Global Liberty Global offers dynamic and innovative working environment. Over 50 different nationalities make up the truly diverse international workforce in our European headquarters in Amsterdam, and they are supported by many more based in our country operations. Our market is more competitive and moving faster than ever and our challenge is to develop new technologies and make them available to our customers. Liberty Global is the right place for people who are eager to work with these latest technologies but with a primary focus on our customer and the importance of making our products Simply for everyone. It is not just the best technical staff that we need but a whole range of other specialist skills that help make our company the success that it is. Often it is our imagination that sets the limits of new developments. That is why Liberty Global is always on the lookout for creative talent in the areas of sales & marketing, product development, multimedia services, new content, programming and finance. The innovative nature of our company creates other opportunities for a wide range of staff with the right skills and experience working at the headquarters of Liberty Global, UPC Broadband, Chellomedia and across the country operations. Support functions such as Customer Care, Finance, Procurement, Human Resources, Legal & Public Policy and Corporate Communications play as vital a role in the success of our company. EMPLOYMENT IN EUROPE (FTEs) Liberty Global 900 Chellomedia 1,200 European Cable 13,200 Operations Total Europe 15,300 Rest of World 5,000 Total 20,300 Employee numbers (FTEs) per June 30,

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