Liberty Global Ltd.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Liberties Global fourth quarter 2022 investor call. This call and the associated webcasts are the property of Liberty Global, and any redistribution, retransmission, or rebroadcast of this call or webcast in any form without the express written consent, Liberty Global is strictly prohibited. At this time, all participants are in listen-only mode. Today's formal presentation materials can be found under the Investor Relations Session of Liberty Global's website at libertyglobal.com. After today's formal presentation, instructions will be given for a question and answer session. Page two of the slides details the company's safe harbor statement regarding forward-looking statements. Today's presentation may include forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995, including the company's expectations with respect to its outlook and future growth, prospects and other information, and statements that are not historical facts. These forward-looking statements involve certain risks that could cause actual results to differ materially from those expressed or implied by these statements. The risks include those detailed in Liberty Global's filing with Securities and Exchange Commission, including its most recent file form, 10-K and 10-Q, as amended. Liberty Global disclaims any obligation to update any of these forward-looking statements to reflect any change in its expectations or in the conditions of which any such statement is based. I would now like to turn the call over to Mike Freeze. You may now proceed.

Okay, welcome everyone and thanks for joining our year-end results call. I hope you're all doing well. As usual, we have some prepared remarks that Charlie and I will manage and then we'll get right to your questions. And for that, I'll bring in my key leaders who will be ready to respond as needed. We're working off slides as we usually do and they contain quite a bit of good information this time, so we'll assume you've got those in front of you or you'll access them at some point. Just a warning, this is our year-end call, so there's a bit more information than usual, but bear with us. We'll try to keep it crisp. I'll begin on slide three with some highlights for the quarter and the full year. And I have to start by saying that I'm extremely proud of my team and each of our operating businesses for how they executed through a challenging year. Just when we thought things were getting better, Europe was hit with a war in Ukraine, rising energy costs, record inflation, and a cost of living crisis that impacted customers really across the region. But despite these headwinds, we hit or exceeded all 16 guidance metrics for our big FMC operating companies that we established a year ago. And we beat our forecast for distributable cash flow at the Liberty Global level by $100 million, and that's using GuidanceFX. So this is the third year in a row that we were faced with external uncertainty but still managed to deliver on our public targets. Second, and perhaps not surprisingly, Q4 was a very strong quarter for us across the board. We delivered positive broadband and post-paid additions in every market, fueled by convergence offerings and Black Friday campaigns. And our largest operation, Virgin Media 02, delivered their best financial result yet with a double-digit EBITDA growth figure supported by price adjustments, synergies, and net ads. We continue to benefit from consistent and steady revenue growth in our three most important segments, which are B2B, broadband, and mobile. And just as importantly, we're actively addressing headwinds in our B2C fixed businesses more broadly with smart network and product innovation, and I'll dig into both of these topics in a moment. And then fourth, we've maintained a clear and consistent approach to capital allocation. In 2022, we bought back 40% more stock than we guided to, a total of $1.7 billion, or 14% of the shares outstanding. And we're on track for at least another 10% this year. And in a few slides, I'll expand a bit on how we see our capital allocation framework going forward. And finally, I'll let Charlie cover the details of our guidance, but I'll just highlight up front that despite continued investment in fiber, 5G, and digital, this year we expect to generate another $1.6 billion in distributable cash flow in 2023. So a strong year for us operationally and financially, and as we'll discuss in a moment, we're well positioned to drive value for shareholders moving forward. Slide four is our standard schedule showing connectivity trends for our four large FMC telcos over the last five quarters. One quick observation is that for the first time in over five years, every market experienced positive broadband and post-paid mobile ads in the fourth quarter. The top left shows VM02, which has delivered three straight quarters of sequential growth in both broadband and post-paid net ads, despite intense competition and a cost of living pressures in the UK. Broadband speed upgrades, together with strong momentum from our Volt bundle, drove our best broadband quarter of the year. By the way, we outperformed BT again, and we garnered an even higher share of national gross ads than we did a year ago. Q4 also saw strong pickup in post-paid net ads in what is always an important trading period for mobile companies. And the O2 brand continues to perform very well, especially at the top end of the market with sector-leading churn well below 1%. Now, Sunrise in Switzerland also had a strong fourth quarter with 53,000 broadband and post-paid ads. Importantly, after two quarters of losses in Switzerland, we delivered positive broadband growth helped by a strong Black Friday period. focused on one gigabit offers and a new Netflix bundle we put into the market. This was particularly good performance given the continued higher churn we've experienced related to the UPC brand migration that we flagged really mid-year last year. Now, in post-paid, Sunrise delivered another strong quarter with 34,000 ads supported by the Sunrise brand refresh and, interestingly, our Swiss ski sponsorship, which is off to a great start now that the ski season is fully underway. After nine quarters of broadband losses, Vodafone Zygo delivered 7,000 net ads in Q4, in part supported by its Zygo Sprinter and Black Friday campaigns. Look at the Dutch market remains highly competitive with price and quality of service now becoming more important than fiber. When you look at customer return, incidentally, KPN lost broadband subs in the quarter. Vodafone Zygo's 26,000 postpaid ads were negatively impacted by the loss of some corporate accounts, but were still higher than KPN in the quarter. It's also interesting that T-Mobile took some pricing in January up 9%. And then finally, Telanet added 13,000 broadband and postpaid ads, which was largely consistent with prior periods. And postpaid mobile ads were steady, supported by their bundles, and really strong performance from the base brand. So solid execution across all of our markets in broadband and mobile. Now, slide five is also becoming a standard chart for us, showing revenue growth across the four main FMC opcos and then broken down by revenue segment. So there's Five key takeaways here. First, if you look at the total revenue growth for each FMC Opco, you'll see that revenue remained resilient, with broadly stable to positive trends across the group. As you move down the chart, however, you'll see that consumer fixed revenue as a whole is consistently negative, from negative 1 to negative 4%. And that's impacted by losses in video and voice RGU, something you're well aware of, as well as pressure on ARPUs and MIX during this cost-of-living crisis. But interestingly, while we continue to lose video subs at a rate a third of what's happening in the U.S., video is now only about 15% of our revenue. I'll spend a moment on how we're addressing the headwinds in Fixed on the next slide. Now embedded in this fixed B2C result are broadband revenues, which continue to grow, albeit modestly, and will increasingly become a larger and larger part of the fixed consumer story in every market. And then third, revenue growth in consumer mobile is all green across the board, driven largely by service revenue, which is growing 2% to 4% across the group. This is a function of strong post-paid additions, of course, and price adjustments through the year. And then fourth, B2B remains a growth engine across all assets, with revenue growing increasing 1.5% to 4% and significant upside as we expand our reach and market share. And then finally, as the pie charts at the bottom make clear, we have a highly diverse and arguably defensive revenue mix with mobile, both B2C and B2B, now representing almost half our turnover, and B2B itself comprising 20% to 25% of revenue. Now, slide six dives a bit deeper into our fixed consumer business and how we're addressing some of the headwinds today. I'll start by showing fixed ARPU trends on the top left. which, as you can see, have been relatively stable in Belgium and Holland, even slightly up, with both markets betting down price rise as well and dealing with limited front book, back book dynamics. In the UK, in Switzerland, however, we've seen around a 3% decline in fixed ARPU related partly to the fact that we start with fairly higher ARPUs in each market, and then that's compounded in the UK by declining video, voice, and cost of living pressures. And in Switzerland, as we discussed, we're managing through a migration from UPC to Sunrise, which has impacted our booth. So what are we doing here? First of all, we're taking price increases on fixed. You know that. Around 14% in the UK and mid-single digit in Belgium and Holland. And those are outlined on the bottom left. You can see what we've done. Secondly, we're implementing a number of commercial initiatives that are critical here. By far, the most important is our broad convergence strategy, which, as we've demonstrated, helps improve churn, MPS, and cross-sell opportunities. We've talked about it before in Holland. FMC households have on average 20 points higher MPS and 50% less churn. These are real, not theoretical benefits to the fixed base as we converge. We've also invested significant effort into integrating streaming apps into our video platforms. Netflix, for example, is bundled in just about every market, and we're increasingly able to add these subscriptions to our bill. We're also focused on rolling out all IP and app-first video devices across our markets. In the UK, for example, we're now adding video subscribers, not losing video subscribers, actually adding video subscribers in January as a result of our Stream TV launch. And then our investments in digital are reducing friction and cost in the fixed consumer business. The tools we're rolling out are driving more online sales, reducing call center interactions, improving self-install rates, and driving cross-sell opportunities. And then finally, we're making good progress on new revenue streams. And these include things like home security or telehealth and energy. We've rolled out products just like this in most markets, and we intend to continue to take advantage of our customer relationships and digital platforms to widen our revenue lens and find new areas of growth. Now, certainly a significant part of our plans to keep growing broadband and improving our fixed consumer business relates to our fixed network investment strategies in every market, which we provide an update on in slide seven. It's also important to remind folks that we are the broadband leader today in Europe with over 31 million gigabit homes ready for service. And just as importantly, we have a clear path to 10 gigabit speeds in every market with mostly creative structures, really creative structures that will ensure we're optimizing CapEx intensity. So the chart on the bottom left shows you that by 2028, we'll be 70% fiber to the home across what will then be a 36 million home footprint. Now, that excludes whole-buy arrangements in markets like Switzerland and Ireland that add another 4 million fiber homes, takes us to 40 million, and brings that fiber percentage to 75%. So we could be as many as 40 million homes by 2028. That's good organic greenfield growth. Now, our plans to get there are summarized on the right. familiar with our approach in the UK. We added or upgraded 1 million fiber homes in 2022, and that will accelerate by at least 50% in 2023. Again, most of that CapEx, especially the new-build CapEx, is being invested through our JV with Telefonica and Improvia, so off-balance sheet. In Belgium, we've announced a deal with Fluvius, you're aware of that, to build fiber across Flanders in a net-coast-serve-coast structure. That should close this summer. And in the meantime, we've agreed a reciprocal wholesale access deal with Orange That ensures that Telenet is the undisputed leader in the north with 70% plus utilization and also capable of entering the south. Now, we completed our 1 gig upgrade in Holland last year, and in Switzerland, as you know, we're going to use a hybrid approach with DOCSIS, Fiber, and Holby. And then finally, in Ireland, we'll be our first market to launch wholesale services on our own Fiber network in 2023, and that's after announcing a wholesale agreement with Vodafone. So we have a sound and, we think, efficient set of plans in every market, remain the speed and quality leader in fixed connectivity. And you should expect that we'll keep you posted on progress here every quarter. Now, moving to slide eight, we decided to hit the valuation question head on this quarter. So if you back off and squint your eyes a little bit, this might look like a complicated slide, but it's really quite simple. The purpose here is to help decipher the valuation gap in our stock a bit and focusing on our FMC opco. So One way to look at our current market valuation is to break it down into three parts, as we've done on the left side of the chart. So assuming full value for our cash balance and our ventures portfolio, the implied valuation of our FMC opcos at the $21 price level is roughly five and a half times EBITDA and around 13 times operating free cash flow using our actual and reported figures for 2022. By the way, cash is cash, and our venture investments are conservatively marked They're held in very tax-efficient structures, and we've already returned over $500 million to the parent. Now, interestingly, the free cash flow yield at $21 once you reduce the market cap by ventures and cash is well over 30%. Now, moving to the middle of the slide, the analyst community has an average price target on our stock of $30. That implies a 40% premium to our current market price of $21. So running the same math, and attributing all of that premium to the FMC telcos result in an EBITDA multiple of around 6.5 and an operating free cash flow multiple of about 14.5. By the way, our peer group trades between 6.5 and 7.5 and some as high as 8.5 times EBITDA. The free cash flow yield of $30, by the way, is still compelling at around 15%. So while our peers would be really mid to high single digits, the analysts correctly cite, in our view, a handful of narratives support their price targets right and this includes things like telco sector tailwinds in europe uh where we can now have pricing power market rationalization and mobile revenue growth and regulatory relief and we agree with that but their arguments also typically include three other drivers like the benefits we're realizing from a sub base that is now 50 converged or the expectation of continued and on-target synergy realization in the uk and switzerland and the inherent free cash flow profile of our businesses, especially given that we believe we're in a peak CapEx period right now. So I guess the message is that $30 doesn't seem like a big stretch to us. One of the reasons is that we don't believe analysts have captured all of the drivers that, in our view, support a premium market valuation. We don't specifically quantify what a premium market price looks like. Our lawyers wouldn't let us do that. But we do identify the key elements that should support values well above our stock price, and perhaps even twice the analyst price target. And those are summarized on the right-hand side of the slide. To begin with, we have been on the receiving end, as most of you know, of six private market transactions in the last six years where EBITDA multiples were as high as 12 and OFCF multiples exceeded 20. Now, admittedly, synergies did factor into some of those valuations, but these were subscale cable TV operations, not fully converged FMC champions. You can run your own numbers, but in today's environment, we believe 8 to 10 times EBITDA and 18 to 20 times operating free cash flow are not unrealistic multiples and are based – if you look at historical transactions for high-quality FMC businesses in Europe. In addition, there are a handful of other value drivers that we believe would support a premium valuation that analysts don't cover. First, we've gone to great lengths to build true national champions that are shaping the market structure in every country we operate in. We have embedded infrastructure upside in the form of towers as well as our fiber networks that's not recognized. Third, we're only beginning to realize now the benefits from new revenue streams like security, gaming, and telehealth, all of which we've launched. And finally, we are arguably at peak capex levels this year, which will result, obviously, in even greater long-term cash conversion. And we add to this equation our unique approach to value creation that relies on agile capital allocation, a leveraged but de-risked balance sheet, And a commitment to buybacks, you've got a winning combination. So building on that last point about our levered equity model, slide nine digs a bit deeper into our capital allocation framework. And we know this differentiates us from our peers. It all begins with shareholder remuneration, which we show graphically on the left-hand side of the slide. As you know, we've now retired over 50% of the shares in the last six years, averaging 11% per year. And in 2022, we exceeded our initial buyback authorization, as I mentioned, by 40%, buying 14% of the shares and returning all distributable cash flow, $1.7 billion, to shareholders. Now, for 2023, we remain committed to the 10% buyback floor again, and we are well underway there. On the right-hand side, we try to put the buyback into context. If you look at our overall capital allocation framework, We have three principal sources of cash, right? Of course, we start with our existing cash balance at the corporate level of $3.4 billion and the modest interest we earn on that before investments. Then you add the $1.6 billion of distributable cash flow that we receive from our operating companies that we're just guided to, which includes recaps. And then finally, we expect cash proceeds. That's the bottom line from the sale of venture investments and non-core assets over time. Now, we're clearly a cash generative business. So where do we invest that capital? First, as you would expect, we do prioritize our networks. So our fiber and 5G investments are important to us at the company level. None of that PP&E is funded out of our cash balance since we generate free cash flow at the Opco level, but we mention it since it does impact the amount of distributable cash flow we receive, and therefore it is a capital allocation decision. And as I mentioned on the previous slide, we see ourselves right now at peak levels of capital intensities. By far, the largest use of cash is directed towards our buyback programs, where we've allocated over $12 billion since January 17, and we are committed to this strategy again this year. From time to time, we will allocate capital to our FMC opcos for strategic transactions that create value. A good example of this is an X-Fiber JV in the UK, or even the acquisition of Sunrise. And then finally, we have been building a sizable portfolio of strategically aligned assets in tech, media, and infrastructure. Now, building on this last point of investing capital into strategically aligned assets, we thought it would make sense to provide a bit more background on our current portfolio of investments and how we intend to manage this part of our business growing forward. If you look at the top of slide 10 on the left-hand side of my last slide, you'll see a familiar chart that breaks down the $3.1 billion Ventures portfolio into principally tech, content, and infrastructure, and then a few notes beneath that on how that value moved modestly in the fourth quarter. As a reminder, we're not coming up with these values on our own. We use a big four accounting firm to provide an independent assessment of value on an annual basis. Then in the three boxes in the top right, we highlight some really important updates that we thought you should be aware of. First, we have 60-plus investments in our tech portfolio. Five of those investments, five companies today, represent about 75% of the value, and we've listed them here for your references. Three of these are companies that provide innovative cloud-based solutions. Plume, you know well, and BitSight is a cybersecurity business. Our net investment in these five companies is about $100 million, and they are conservatively valued today at $700 million. Importantly, each of these companies is currently doing or planning to do business with our FMC Opcos, and that's part of the flywheel we provide in Vesky Companies, and quite frankly, why our pipeline of deals is so robust. The bottom line is that our tech ventures team has an eight-year track record of making money in strategically aligned product, service, and technology companies, and has already returned $500 million to the parent. Next, you'll also see our three largest infrastructure investments, Atlas Edge, our 50-50 JV with DigitalBridge, the Edge Connect data center business, where we are 5% shareholder with EQT, and NextFiber, the JV I've discussed already with Telefonica and Infravia. That's going to build 5 to 7 million fiber homes in the UK. In each case here, we are using either existing opco assets or our strategic position in a market to create and benefit from these infrastructure platforms. It's also important to point out that these figures do not include our tower assets in markets like the UK, NNL, which we own through joint ventures. Now, on the far right, we've provided just a few bullets on the announced Vodafone investment. I'm not sure there's much to add to what we've said publicly. We do think the stock is undervalued, and there are a handful of near-term catalysts that should be beneficial. We've also put in place a very clever structure which minimized the amount of equity we had to put up while protecting our downside. By the way, there is no scenario where we would have to invest further capital beyond the relatively low cost of borrowing, which is partially offset by dividends. We also intend to replenish that equity investment, as we said in the press release, with asset sales, and there are more than a handful that we're focused on presently. I suppose it's good to see that the Vodafone stock is up since our announcement. We don't take credit for that, but obviously that's a positive. And then finally, on the bottom right, we've provided a few points in how we see this part of our business evolving. And you'll see that the three main verticals, tech, content, and infrastructure, are targeting technology, services, or platforms that are right up our alley, as they say. We have expertise, history, or unique synergies in each of these areas. We've added a fourth pillar that we simply call financial, for lack of a better word, which captures existing and potential investments in the debt or equity of situations that we feel are strategic, distressed, or provide a unique opportunity to put capital to work. Now, across the first three pillars, our investing principles are straightforward. We're looking for businesses that provide significant growth opportunities. This typically means businesses with scale, sector tailwinds and strategic benefits to both our opcos or perhaps other portfolio investments. We're also interested in companies built around new or disruptive innovation that either diversify or amplify our core businesses. And then lastly, we intend to be extremely disciplined here with exits and what we refer to as capital rotation. We've already begun to evaluate every position and believe there are more than a handful of assets that could be monetized both in the Ventures Group and outside the portfolio, like Towers, for example. So those are the core building blocks of value creation. You know, first we're going to continue to drive growth and free cashflow in our FMC champions and optimize our ownership positions in these businesses over time. This may include capital investment in M and a or strategic growth. And some of those markets also will be very flexible and agile about, as we've said in the past listings or spins and things like that. Secondly, we're going to continue to put our capital to work in an efficient buyback program as we've consistently done. And then third, We're going to remain opportunistic about investments that we feel are strategically aligned with our core mission and within our capability set. Now, this last one is not easy, right? But we've surely earned the credibility to work here given our history of building, buying, and exiting assets in our sector over time. I don't want to be on this call in three years' time sitting on $3.5 billion of corporate cash and $6 billion of liquidity. I don't think you want that either. So we're focused on value creation first and foremost, and I think we're in a great position to do that. Charlie, over to you.

Thanks, Mike. On the next page, we provided a summary of the revenue profile in our four key markets. 2022 saw stable revenues in three of our four markets and slight growth in Belgium, despite the challenging macroeconomic environment. Fixed consumer revenue pressures across our markets were softened by sensible price adjustments in Benelux and in the UK, and we saw strong mobile and B2B growth across our portfolio. Virgin Media O2 delivered stable revenues in Q4 and across 2022 with continued pressures on fixed consumer ARPU and challenges in B2B being offset by strong mobile subscription revenue growth. Switzerland saw Q4 revenue growth decline as continued strong mobile growth was offset by weaker B2B wholesale revenues and continued pressure on the consumer ARPU mix as the business resets the pricing of its UPC customers in the migration to the Sunrise brand. In the Netherlands, despite a strong net outperformance, we saw a slight decline in revenue growth due to weakness in the consumer fixed business, partially offset by price adjustments, which we implemented in July. We delivered mobile service revenue growth of 6.3% in Q4, which was supported by a mobile price adjustment in October. Belgium delivered Q4 revenue growth of 1.7% and 1.5% across 2022. as the mid-June price adjustment continued to support top-line fixed ARPU growth in the second half of the year. The next slide sets out our adjusted EBITDA performance in the quarter. The standout performance in Q4 was delivered by Virgin Media O2, posting full-year adjusted EBITDA growth of 6%. In Q4, Virgin Media O2 delivered accelerated EBITDA growth of 10%, driven by synergies from the merger, and the continued impact of price rises earlier in the year. This was despite $40 million of cost to capture, which hit the OPEX line this quarter. Versus the exceptional EBITDA growth in Q4, we do expect Q1 growth to be much more muted, and this is impacted by the phasing of a delayed fixed price rise and tougher synergy comparison versus the prior year. Sunrise saw an EBITDA decline of 8.1% in Q4 as tailwinds from the MVNO synergies faded, combined with a continued weaker fixed after This continues to be as a result of the rotational churn challenge associated with the UPC migration to the Sunrise brand. We expect headwinds from this migration to continue to impact EBITDA trends in 2023, and in particular impact the Q1 numbers. Vodafone's Zygo saw a slight decline in EBITDA growth in Q4, driven by cost inflation headwinds, which offset the impact of price adjustments. We expect cost inflation headwinds, in particular in energy, to impact our 2023 outlook, with an estimated EBITDA hit of over 100 million euros from energy and wages. Telenet reported EBITDA growth at around 5% for the second consecutive quarter, driven by price adjustments. The business anticipates ongoing headwinds from energy inflation, as well as mandatory wage increases of 11%, which will hit from the start of 2023. The next slide provides a more detailed update on our energy costs. Before the Ukraine invasion, energy typically accounted for a low single-digit percentage of operating costs. And historically, our policy was to hedge those costs forward on a rolling 12-month basis. This hedging policy helped soften the impact of rising energy costs in our 2022 results, and we were able to absorb the impact of the unhedged costs and still meet our EBITDA guidance in our opcos. However, in 2023, you will see a full impact of the increased energy costs resulting from the invasions. And as you can see from these slides, we have broadly hedged the energy costs in each of our markets for 2023, but this has been at significantly higher rates than 2021 and 2022. We've highlighted the impact on each of our markets, but if you were to add them all up and use today's dollar exchange rates, broadly, our 2021 energy costs are around $280 million, increased to around $410 million in 2022, and will be around $600 million in 2023. representing a hit to free cash flow across our portfolio of around $330 million as a result of the invasion. Now, like everyone else, we don't know where energy prices will settle out, but in the meantime, we continue to execute our rolling 12-month hedging program and have started on the 2024 hedges, which thanks to recent price declines are at lower prices than we've locked in for 2023. We're also investigating longer-term fixed rate deals through PPA agreements. The next slide gives an update on our progress on the UK and Swiss synergies, resulting from the O2 merger and Sunrise acquisition. We remain on track in both the UK and Switzerland with our overall synergy targets, with a very strong finish to the year in the UK. Now, just to remind you, at Virgin Media O2, we expect to deliver £6.2 billion of MPV synergies, or an annualised run rate target of £540 million from the O2 merger. In 2022, we come to be delivered over 30% of our synergies in the first 18 months of the combined business and are on track to deliver over 50% by the end of 2023. Meanwhile, cost to capture peaked in 2022 with over £300 million recorded out of the total £700 million cost to capture envelope. Cost to capture are expected to roughly halve in 2023, falling to around £150 million as investment in mobile capacity to support the MVNO migration took place in 2022. In 2023, trends are expected to benefit from the continued flow through of MVNO synergies, along with the unlocking of further synergy streams, including labour and commercial. Moving to Switzerland, we reaffirm our target to deliver 3.7 billion MPV Swiss francs of synergies and incur 400 million Swiss francs of overall cost of capture. 2022 represented a peak year for Costa Captcha, as approximately 140 million Swiss francs of Costa Captcha supported the business in achieving nearly 50% of our synergy run rate target, including the early benefit of MVNO synergies supporting half-won trends in 2022. The business aims to deliver around 60% of the synergy run rate target by the end of 2023, with key focus areas being the build-up of the DSL migration and headcount synergies, and delivery of these synergy projects will be supported by an expected 50 million Swiss francs of cost of capture spend in 2023. Turning to capital allocation, Q4 saw a step up in capital intensity across our key operations. This is as we expected and was consistent with our full year capital intensity guidance for the group. Moving to distributable cash flow, we achieved our distributable cash flow guidance for the year, delivering over $1.7 billion of full company distributable cash flow in 2022, based on the FX rates at the time of our 2022 guidance. On a reported basis for the full year, distributable cash flow was around $1.6 billion, including $455 million of dividends from Virgin Media O2, along with $478 million coming from our share of the recapitalization of that company, and $321 million from Vodafone Zika. Finally, our outlook for 2023. Now, I appreciate there's a lot on this slide, but to help you understand our current view on the 2023 key financial drivers and ultimately the free cash flow and cash flow distributions of our key assets, we've added our view on some of the drivers behind those assumptions. Starting with VMO2, on an IFRS basis, we expect to achieve revenue growth mid single digit adjusted EBITDA growth supported by synergy execution and inflation link price rise adjustments with headwinds from inflationary pressures impacting our cost base, including energy. Now these numbers are excluding cost of capture for the year where we expect OPEX and CAPEX cost of capture of around 150 million pounds, which is still within our multi-year expectation of 700 million pounds. We also guide to property and equipment additions of around 2 billion pounds Benefits from Project Lightning moving off balance sheets, but this is offset somewhat by the fibre upgrade accelerating and the 5G mobile investments. On cash distributions to shareholders, Virgin Media O2 is going to around £1.8 to £2 billion versus £1.6 billion distributed in 2022. Turning to Sunrise, we expect low single-digit revenue decline for the year, along with low to mid-single-digit adjusted EBITDA decline, including cost of capture, as the business continues to navigate the impact of the UPC brand migration and lower tailwinds from the synergies in 2023. We guide to property and equipment additions as a percentage of sales to be around 15% to 17%, also including cost of capture. Cost to capture spend will drop this year, falling to around 50 million Swiss francs, of which 10 million Swiss francs is expected to be attributed to OPEX. Vodafone Ziggo is guiding to an improved revenue profile, supported by pricing actions, and low to mid single-digit adjusted VDA decline as the business will be impacted by cost inflation headwinds of around 100 million euros from energy and wages. Property and equipment additions as a percentage of sales is expected to be 21% to 23%. The Dutch JV is guiding to shareholder distributions of €300 million to €400 million of cash, which is impacted by higher cash taxes and a tougher EBITDA outlook. This is versus cash distributions of €602 million in 2022. And finally, on an IFRS basis, Telenet are guiding to revenue growth of 1% to 2%, supported by price adjustments and broadly stable adjusted EBITDA, impacted by wage and energy inflation headwinds. Property and equipment additions as a proportion of sales are expected to be around 26% with an adjusted free cash flow outlook of 250 million euros for the year. This is lower versus the 409 million euros delivered in 2022 as free cash flow will be impacted by higher capex on 5G fibre build. And finally, on group distributable cash flow guidance, we're guiding to 1.6 billion of distributable cash flow in 2023 at guidance FX rates. we reiterate our commitment to buy back 10% of our shares outstanding in 2023. And with that, operator, let's turn to questions.