About Liberty GlobalLiberty Global is the leading international cable company, with operations in 13 countries. We connect people to the digital world and enable them to discover and experience its endless possibilities. Our market-leading television, broadband internet, and telephony services are provided through next-generation networks and innovative technology platforms that connect 20 million customers who subscribe to 34 million services as of June 30, 2012.
|1||The mid-point DCF model is based on a weighted average cost of capital of 7.9% and a perpetuity growth rate of 1.5%.|
|2||As adjusted for the €3.25 capital reduction paid by Telenet on August 31, 2012.|
|3||The enterprise value implied by the Intended Offer represents a multiple of 9.1x Telenet’s estimated Adjusted EBITDA and 15.7x Telenet’s estimated Adjusted EBITDA less estimated accrued capital expenditures for 2012. Telenet’s Adjusted EBITDA and accrued capital expenditures (each as customarily defined by Telenet) are based on financial projections approved by the Telenet Board in May 2012 (which are consistent with Telenet’s most recently published guidance for 2012) and are prepared based on International Financial Reporting Standards as adopted by the European Union (“EU IFRS”).|
|4||The Ziggo, Virgin Media Inc. (“Virgin Media”) and Kabel Deutschland Holding AG (“KDH”) enterprise values are based on the share price for each company as of September 19, 2012 and financial statements prepared in accordance with EU IFRS for Ziggo and KDH and US GAAP for Virgin Media. EBITDA (earnings before interest, taxes. depreciation and amortization), or in the case of Virgin Media, “operating cash flow”, and capital expenditures estimates of Ziggo, Virgin Media and KDH are based on Bloomberg equity research analysts’ consensus as of September 19, 2012.|
|5||The comparable quoted cable operators include Ziggo, Virgin Media and KDH.|