Comcast NBCU Call 12.03.09


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Comcast NBCU Call 12.03.09

  1. 1. Creating A Premier Media and Entertainment Company g p y annels Cable Cha C dcast Broad Digital .com Film Parks December 3, 2009
  2. 2. Safe Harbor Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, cases you can identify those so called “forward looking statements” by words such as “may ” “will ” “should ” “expects ” “plans ” “anticipates ” so-called forward-looking statements may, will, should, expects, plans, anticipates, “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of those words and other comparable words. We wish to take advantage of the “safe harbor” provided for by the Private Securities Litigation Reform Act of 1995 and we caution you that actual events or results may differ materially from the expectations we express in our forward-looking statements as a result of various risks and uncertainties, many of which are beyond our control. Factors that could cause our actual results to differ materially from these forward-looking statements include: (1) our proposed joint venture with General Electric is subject to regulatory and other conditions, and we cannot provide assurances ( ) p p j j g y , p that we will be able to consummate the transaction, that conditions imposed by regulators might not impact our results, or that the joint venture will be able to succeed in the highly competitive media industry and generate acceptable financial returns and cash flows (2) changes in the competitive environment, (3) changes in business and economic conditions, (4) changes in our programming costs, (5) changes in laws and regulations, (6) changes in technology, (7) adverse decisions in litigation matters, (8) risks associated with acquisitions and other strategic transactions, (9) changes in assumptions underlying our critical accounting policies, and (10) other risks described from time to time in reports and other documents we file with the Securities and Exchange Commission. We undertake no obligation to update any forward- looking statements. The amount and timing of share repurchases and dividends is subject to business, economic and other relevant factors. Non-GAAP Financial Measures Our presentation may also contain non-GAAP financial measures, as defined in Regulation G, adopted by the SEC. We provide a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measure in this presentation and non GAAP presentation, descriptions of these non-GAAP financial measures can be found in our Form 8-K (Quarterly Earnings Release), which is located on the SEC’s website at Other Considerations Financial numbers in this presentation are based, in part, on information provided to us by GE. These numbers are preliminary and, among other things, do not include all purchase accounting adjustments. Throughout this presentation we provide estimated revenue and Operating Cash Flow (OCF) dollar amounts and pro forma mix percentages. OCF figures exclude OCF from non-consolidated affiliates. Estimated revenue and OCF mix percentages are before corporate overhead, inter-company eliminations and certain other amounts and do not include all purchase accounting adjustments required by GAAP. Financial numbers in this presentation are for illustrative purposes only and do not represent guidance. The description of the transaction included in this presentation is qualified in its entirety by, and is subject to, the terms of the definitive documentation to be filed with the Securities and Exchange Commission on a Form 8-K. 2
  3. 3. Creating A Premier Media and Entertainment Company g p y annels Cable Cha C dcast Broad Digital .com Film Parks 3
  4. 4. Compelling Strategic Opportunity Positions Comcast for continued innovation and growth • Brings together outstanding content creation and distribution capabilities • Comcast creates Comcast Entertainment Group to hold its 51% interest in a leading media and entertainment company – C bi Combines NBCU a hi h quality di NBCU, high lit diversified media company, with C ifi d di ith Comcast t programming assets, increasing our scale and capabilities – Cable channels represent 82% of the new joint venture’s OCF and drive its profitability • Builds on multi-platform reach to expand entertainment options for consumers and growth opportunities for Comcast – Accelerates innovation and new models for content delivery and distribution y • Combines experienced management teams with proven track records of integrating, operating and growing cable and content assets 4
  5. 5. Builds Shareholder Value • Attractive transaction structure – Maintains our balance sheet strength while providing 51% ownership and control of extensive content businesses – Unique structure provides performance incentives and significant value creation opportunity  Under the redemption mechanism, Comcast shares in an additional 50% of the value creation above the initial equity value • Strong financial returns even assuming minimal synergies – Structure provides meaningful tax benefits to Comcast and reduces net cash investment – Any potential synergies further enhance returns • Clear future capital allocation strategy – The new joint venture represents a vehicle to invest in cable channels, a fast-growing part of our business and one of the most compelling areas in media – Comcast retains flexibility to invest in cable and broadband distribution and its commitment to return capital to shareholders  Increasing Comcast’s planned annual dividend 40% to $0.378 per share, with first payment effective January 2010  Repurchasing $3.6 billion of Comcast stock over the next 36 months 5
  6. 6. Michael J. Angelakis
  7. 7. Transaction Summary Comcast and GE are forming a content joint venture initially owned 51% by Comcast and 49% by GE Transaction Steps Transaction Structure • NBC Universal will borrow $9.1 billion from third party lenders and distribute the proceeds to GE Cash – Fully committed debt financing with expected BBB+/Baa2 rating ~$6.5Bn • GE will contribute its interest in NBC Universal to the new joint venture, valued at $30Bn, subject to $9.1 Comcast Content Assets NBCU Assets Cash billion of debt Valued at $30Bn Valued at $9.1Bn $7.25Bn • Comcast will contribute its cable channels, regional sports networks and two Internet assets (Fandango and Daily Candy), together valued at $7.25 billion New Joint Venture • Subject to certain adjustments, Comcast will pay GE Comcast: 51%    GE: 49% approximately $6.5 billion in cash to achieve 51% ($ in Billions) g controlling interest Value of NBC Universal $30.0 $30 0 • Structure provides meaningful tax benefits to Comcast Debt ($9.1) NBC Universal Equity Value $20.9 • Regulatory approval and closing expected in 9 to12 Value of Comcast Content $7.3 months Initial Equity Value* $28.2 • GE to purchase Vivendi’s interest in NBC Universal * Subject to adjustment based on the amount of cash, if any, in the venture at closing. 6
  8. 8. Transaction Summary Meets our strategic and financial objectives and creates a defined p g j path to achieve 100% control1 • The new joint venture will be conservatively capitalized with initial Debt/OCF of less than 3.0x – Expect investment grade rating by Moody’s and S&P – Business has high FCF conversion that will drive substantial de-levering • The new joint venture is expected to self-finance future equity redemptions by GE – Strong projected FCF and debt capacity fund the redemption of remaining 49% interest over 7 years – Beginning shortly after closing, the new joint venture is expected to maintain maximum leverage of 2.75x and remain investment grade • Redemption price is based on the fully-distributed public market value at time of redemption, subject to certain adjustments tied to the venture’s value. • Comcast’s obligation to fund GE redemptions is capped at $5.75 billion – If any borrowings by the venture to fund GE’s redemptions would result in the venture’s leverage ratio exceeding 2.75x or the venture losing investment grade status, Comcast will provide a backstop to a maximum amount of $5.75 billion • 1st redemption right for GE at year 3.5 of 50% of its ownership: maximum backstop of $2 875 billion 35 $2.875 • 2nd redemption right for GE at year 7 of remaining ownership: $2.875 billion backstop plus any unused amount from 1st redemption to a maximum of $5.75 billion • Comcast receives a performance incentive as the value of the new joint venture increases – Under the redemption price mechanism, Comcast shares in 50% of the value creation above the initial equity value of $28.2 billion (1) GE may retain a preferred interest in the venture in certain circumstances. Refer to Appendix for detailed description 7
  9. 9. Transaction Summary Transaction structure and returns meets our financial objectives • Immediately accretive to: – Free Cash Flow – Free Cash Flow per share – Earnings per share • Unique structure has market price-based self-correction and attractive price based self correction performance incentive – Under the redemption mechanism, Comcast shares in 50% of the value creation above the initial equity value of $28.2 billion • Expected double-digit IRRs substantially exceed our WACC and generate meaningful shareholder value, even assuming: – Minimal cost benefits (<$50 million) and no incremental revenue benefits – “Business as usual” performance from Comcast and NBC Universal assets – Multiple upside and downside scenarios • Balanced approach of investing in strategic opportunities and future growth, while maintaining financial strength and returning capital to shareholders hil i t i i fi i l t th d t i it l t h h ld 8
  10. 10. Maintains Balance Sheet Strength and Investment Grade Rating Illustrative 2010 estimated pro forma financial metrics C t Comcast1 PF Comcast PF Comcast Mix % Ex-Programming New JV ($Bn) Revenue 2010 Estimate: 2 Parks Revenue R $35.2 $35 2 $18.2 $18 2 $52.1 $52 1 Broadcast 1% 11% OCF $13.6 $3.0 $16.5 Cable Channels Cap Ex $4.8 $0.4 $5.2 14% Cable Distribution 3 Interest $2.4 $2 4 $0.6 $0 6 $3.0 $3 0 65% 3 FCF $4.3 $1.4 $5.7 OCF 4 Total Debt $33.4 $9.1 $42.5 Debt / OCF 2.5x 3.0x 2.6x Cable Channels 17% Note: 2010 figures are for illustrative purposes only and do not represent guidance. Cable Distribution Figures are preliminary and do not include all GAAP purchase accounting adjustments 80% (1) Comcast includes Cable, Corp & Other (CIM and Spectacor) and excludes contributed assets (Programming assets, RSNs, Fandango and Daily Candy). (2) PF Comcast revenue is net of inter-company eliminations. (3) Interest expense and FCF are pro forma as if closing occurred on 1/1/2010. (4) Estimated debt at closing. Excludes borrowings for transaction fees and debt guaranteed by GE. Cable and Cable Channels are 97% of OCF and Drive Profitability and FCF Growth 9
  11. 11. Maintains Commitment to Return Capital to Shareholders C t Comcast1 New Joint Venture Ex-Programming Strong FCF Generation Strong FCF + Debt Capacity Parks 1% Broadcast 14% Films 8% Increased Return of Capital to I dR t f C it l t Expected to Fund 100% E t dt F d Shareholders Ownership • Increasing Comcast’s planned annual dividend • Free cash flow is retained to fund any GE 40% to $$0.378 p share, with first p y per , payment redemption of its remaining 49% interest2 effective January 2010 • Debt capacity based on maximum leverage – Expect to further grow the dividend in line with of 2.75x and maintaining investment grade growth in the business rating • Intend to complete share repurchase plan to • Comcast’s funding obligation is capped at Comcast s buy back $3.6 billion of Comcast stock over $5.75 billion over 7 year period next 36 months • Meaningful tax benefits to Comcast • Dividend and share repurchase payout ratio in excess of 50% of LTM Free Cash Flow Continue to Build Long-Term Shareholder Value (1) Comcast includes Cable and Corp & Other and excludes contributed assets (Programming assets, RSNs, Fandango and Daily Candy). (2) GE may retain a preferred interest in the venture in certain circumstances. 10
  12. 12. Balanced and Disciplined Financial Strategy Comcast’s Capital Allocation Principles Remain in Place • Invest in the business to support profitable growth and generate attractive returns • Disciplined acquisition and investment strategy • Maintain the strength of our balance sheet and investment grade profile • Return capital directly to shareholders Committed to Build Shareholder Value • This transaction has a strong financial profile – Immediately accretive with strong returns – Maintains balance sheet strength and investment grade profile g g p – Maintains capacity to accelerate return of capital to shareholders Meets our Strategic and Financial Objectives 11
  13. 13. Brian L. Roberts
  14. 14. 2009E OCF Cable Channels • Highly profitable collection of leading cable channels Broadcast Cable  38% Channels • Strong position with ratings growth across the portfolio Cable  78% Channels • Expansion potential through domestic and international distribution 31% Broadcast 10% • Opportunities to deliver and monetize content across platforms Broadcast Film Theme Parks • NBC: a global brand with an iconic • Major studio with valuable • 1 of 2 international legacy (News, Sports, Primetime) franchises theme park brands Cable Channels • Telemundo: extensive presence in • Strong content library: • Attractive, profitable Drive NBCU the high-growth Hispanic market g g p 4,000+ movie titles , business Profitability • TV stations with strong local presence • A growing library of 3,000+ titles 13
  15. 15. 2009E Revenue Broadcast • NBC: a global brand with an iconic legacy (News, Sports, Primetime) • Telemundo: extensive presence in the high-growth Hispanic market high growth Broadcast 38% • TV stations: strong local presence with deep ad sales relationships Cable  • TV production studio supplies owned and 3rd party networks with a growing Channels library of 3,000+ titles 31% 2009E OCF Broadcast network TV production #2 Spanish reaches 100% of studio + library: content producer Cable  Broadcast US households Channels 10% 3,000+ titles globally 78% NBC’s 10 O+Os cover 27% of US 16 O+O’s TV HH Complex business…more opportunity than downside 14
  16. 16. A Global and Iconic Brand • Tonight Show …5 hosts, 5 decades of leadership Entertainment • Late Night …3 hosts, 3 decades of leadership • Saturday Night Live …a cultural institution for 35 years • Today Show #1 for 15 straight years • Nightly News #1 for 13 straight years News • Meet the Press #1 for 12 straight years • Local News #1 or #2 in 9 out of 10 DMAs • Success at NBC creates significant value in MSNBC Sports Delivers mass-market audience with 100% reach of US TV HH Reach of 1 network spot on … Same reach across 9 spots on … 15
  17. 17. 2009E Revenue Film Cable  • One of six major Hollywood studios Channels 31% • Movies have strong, sustained and global appeal M i h t t i d d l b l l Broadcast 38% • Extensive library includes 4,000+ movie titles Cable  • Significant international distribution capability Channels Broadcast 38% 31% • Opportunities to develop new distribution and promotion strategies • 4,000+ film library 2009E OCF with classic titles • Broad appeal for global audience Cable  • Strong franchises Channels 78%  Bourne Broadcast B d t  Fast and Furious 10%  Meet the Parents 16
  18. 18. 2009E Revenue Theme Parks • One of two major international theme park brands Broadcast 38% • St bl i d t l di margins Stable, industry-leading i • International growth opportunity with zero-capital / management fee model Parks 3% Cable  (1) (2) (3) Channels 31% 2009E OCF • Strong Brands  Jurassic Park  Men in Black Broadcast  Shrek 10% Cable  • Innovative New Attractions Channels 78%  Harry Potter  The Simpsons  The Mummy (1) NBCU owns 100% of Universal Studios Hollywood. (2) 50/50 JV with Blackstone formed in September 2008. (3) NBCU receives licensing/management fees for Universal Studios Japan. 17
  19. 19. Cable Channels Deliver Majority of Value • One of the most valuable businesses in the media sector • Attractive growth with resilient business model given dual revenue streams: – Affiliate fees from cable, satellite and telco providers have been growing on average 12% per year1 – Advertising sales have increased on average 7% per year1 due to increased ratings and attractive audience delivery • Much of their own content is produced internally, adding to cost stability and ratings growth • NBCU owns 5 cable channels that each generate in excess of $200 million in annual OCF (1) Source: 2004-2009 per Kagan Research. 18
  20. 20. A Valuable Portfolio of Profitable Cable Channels Outstanding growth and profitability with industry-leading margins 2004-2009 CAGR: +16.2% NBCU Cable Channels Operating Cash Flow ($MM) $2,190 $1,953 $1 953 $1,560 $1,280 $1,103 $1 103 $1,035 2004 2005 2006 2007 2008 2009E 44% margin 44% margin 44% margin 48% margin 48% margin 51% margin 19
  21. 21. A Valuable Portfolio of Profitable Cable Channels NBCU’s successful formula drives industry-leading ratings • #1 in primetime ratings for 13 consecutive quarters • “Characters Welcome” brand has led to unprecedented original success: • Monk, Burn Notice, In Plain Site… and now White Collar • #1 business news channel since 1989 • Global brand reaching 340MM HH around the world • Top #10 in ratings A25-54 and A18-49 year-to-date • Hit original series: Warehouse 13, Eureka, Ghost Hunters • 23 international channels in 2010 • #2 cable news channel (primetime ratings A25-54), regularly beating CNN • Successful The Place for Politics positioning • Ratings doubled over the last 4 years • #2 fastest growing top 20 cable entertainment network A18-49 over the past 2 years • Successful positioning as the “pop culture innovator” • Dramatic improvement since acquisition • Top 25 in ratings for women 18-49 • Launched in 2008 to create premium highly targeted original programming premium, • First successes: Royal Pains, Psych 20
  22. 22. Combines Experienced Management Teams and Creative Talent TV Entertainment MSNBC Comcast Programming Comcast Sports Group Jeff Gaspin Phil Griffin Jeff Shell Jon Litner Sports + Olympics Sports + Olympics Universal Studios Universal Studios Comcast Entertainment Comcast Entertainment Sprout Dick Ebersol Ron Meyer Ted Harbert Sandy Wax NBCU NBC News/MSNBC Universal Pictures Style Steve Capus Steve Capus Adam Fogelson Adam Fogelson Salaam Coleman‐Smith Jeff Zucker Jeff Zucker NBCU Cable Entertainment  Universal Pictures Golf Channel and Universal Cable  Donna Langley Page Thomson Productions  Productions Bonnie Hammer NBCU Women and  Universal Pictures  G4 Lifestyle Entertainment  + Universal Studios Neal Tiles Networks Rick Finkelstein Lauren Zalaznick CNBC Universal Parks  Versus and Resorts Jamie Davis Mark Hoffman Tom Williams 21
  23. 23. Stephen B. Burke
  24. 24. Business Opportunities • Valuable portfolio of profitable cable channels – Achieves scale for Comcast’s cable channels, providing opportunity for Comcast s margin expansion – Combination of established and emerging cable channels plus broadcast network provides opportunity for growth • Valuable platform to reach key demographics – Entertainment, women, sports and news • Combination of content and distribution creates consumer choice and drives value dd i l • Unrivalled asset mix, defined strategy and attractive transaction structure lead to shareholder value creation 23
  25. 25. Cable Channels…The Foundation for an Attractive Asset Mix NBCU New Joint Venture 2009E Revenue 2009E Revenue Film Film 25% 28% Cable  Broadcast Channels 38% Broadcast 31% 33% Cable Channels Cable Channels 31% 40% Parks Parks 3% 3% Parks  2009E OCF 2009E OCF 5% Film Cable Channels Cable Channels 6% Film 82% 78% Broadcast 5% 10% Broadcast Parks 8% Parks 6% 5% 24
  26. 26. Cable Channels Drive Growth 2004-2009 CAGR: +14.9% Cable Channels Operating Cash Flow ($MM) $2,762 $2,491 $2,000 $1,657 NBCU (1) $1,524 Comcast $1,381 $2,190 $ , $1,953 2004-09 $1,560 CAGR: $1,103 $1,280 +16.2% $1,035 $346 $420 $377 $440 $538 $572 2004-09 CAGR: +10.6% 2004 2005 2006 2007 2008 2009E (1) Operating cash flow of consolidated Comcast cable channels excludes SNY, PBS Kids Sprout, TVOne, FEARNet. 25
  27. 27. A Valuable Portfolio of Profitable Cable Channels Subscribers by Network(1) Comcast NBCU 99 Growth Opportunities: 97 97 • Cross promote and strengthen emerging channels 96 93 • Strong platforms for advertisers 92 82 • Expand domestic and international p distribution 75 66 • Increase exposure to new platforms 64 64 35 40% 34 Minority Interests y 32 8% 30 ~33% 33%  22 ~16% 16 25% (1) November 2009 Nielsen Households in MM except Universal, FearNet, Sleuth, and Sprout which are 2009E subscribers in millions. 26
  28. 28. A Valuable Portfolio of Profitable Cable Channels 2009E OCF Cable Channels (1) Company ($Bn) % of Total OCF (2) $3.8 50% $3.2 94% $2.8 82% New NBCU Joint Venture (3) (4) $2.8 39% (5) $1.9 38% (1) Total OCF excludes corporate overhead. (2) Disney excludes Equity in Affiliates. 2009 data reflects the fiscal year ending September 30, 2009. (3) The new joint venture’s estimated OCF excludes Equity in Affiliates and non-recurring items. Cable channels as a percentage of the total new joint venture’s OCF. (4) Time Warner excludes HBO financial information based on Kagan Research. (5) News Corp 2009 data reflects the fiscal year ending June 30, 2009. Source: Company Filings, Wall Street Research 27
  29. 29. Establishes Strong Platforms Entertainment …a large audience across cable and broadcast 1 Women …reaches the most women – on cable TV and online sites Sports …reaches across national broadcast, cable and regional sports News Local News Extensive choices f advertisers and consumers E t i h i for d ti d (1) For TV: Nielsen Unduplicated Cume Audience (Women 18-49), September 2009. For online: Nielsen NetView Monthly Unique Audience, September 2009. 28
  30. 30. A Leading Provider of Content Online • A “Top 10” online property with 82 million monthly unique visitors • A leading supplier of professionally produced online content: #1 Women/Lifestyle #3 News #3 Entertainment #7 Sports NBC Sports Comcastsportsnet g Accesshollywood Hulu Fancast Exercise TV 25% Source: MediaMetrix, October 2009 (Unduplicated Audience). Note: Rankings are based on companies that focus p g p primarily on the p y production and distribution of p professional content online and exclude p portals and ad networks that p y primarily aggregate content and audiences from 3rd parties. Comcast’s new joint venture includes (25% ownership), but excludes (50% ownership) and Hulu (27% ownership). and Fancast are excluded, as they are not being contributed to the joint venture. 29
  31. 31. Growth Opportunities for the Combination Content Distribution Content Benefits Benefits Benefits Content Content Distribution • Cross-promotion between Cross promotion • Help launch and grow p g • Strengthen Video On channels and NBC cable channels Demand and On Demand Online offerings • Programming from NBC, • Use new technologies Universal Studios and such as Video On Demand, • Accelerate interactive Television Studio for electronic sell through and sell-through television applications and channels On Demand Online advanced advertising • Gain scale for advertising, • Protect copyrights, fight • Offer tent-pole events and digital and cost structure piracy, create new use libraries to create new distribution models, etc. models etc products Builds Shareholder Value 30
  32. 32. Shareholder Value Creation M t All Our Acquisition and Investment Criteria and Meets O A i iti dI t t C it i d Maximizes Long-Term Shareholder Value • Compelling strategic rationale – Extends the size and capabilities of cable, content and Internet businesses – Pro forma asset mix positions the company to continue to innovate and grow • Significant capacity to execute ― Combines strong and experienced management teams with proven track record of integrating, operating and growing cable and content assets i t ti ti d i bl d t t t • Strong financial returns and financial profile ― Immediately accretive with strong returns ― Maintains balance sheet strength and investment grade profile ― Maintains capacity to accelerate return of capital to shareholders 31
  33. 33. Appendix
  34. 34. Important Transaction Points • During the six month period starting on the 3½ year anniversary of closing (1st redemption right), GE can  elect to cause the new joint venture to redeem 50% of its interest elect to cause the new joint venture to redeem 50% of its interest. GE • During the six month period starting on the 7th anniversary of closing (2nd redemption right), GE can elect  to cause the new joint venture to redeem GE’s remaining  interest1. Redemption • The new joint  venture’s redemption of GE’s equity interest is supported by the new joint venture’s strong  Rights FCF generation and debt capacity.  • If any borrowings by the joint venture to fund GE’s redemptions would result in the venture’s leverage ratio  exceeding 2.75x or the venture losing investment grade status, Comcast will provide a backstop to a  maximum amount of $5.75 billion: up to $2.875 billion for 1st redemption right, and up to an additional  $2.875 billion (plus any unused amount from 1st redemption) for the 2nd redemption right. • If the 1st GE redemption right is exercised, Comcast can elect to simultaneously buy the remainder of GE’s  Comcast interest1. Purchase • If GE’s 1st redemption right is not exercised during the six month period starting on the 5th anniversary of  closing, Comcast can elect to acquire 50% of GE’s interest. Rights • Comcast can elect to acquire the remainder of GE’s interest on the 8th anniversary of closing1. Comcast can elect to acquire the remainder of GE s interest on the 8 anniversary of closing • After approximately the 3½ year anniversary of closing, GE can engage in public and private sales (including  causing an IPO), subject to Comcast’s right of first offer or similar purchase rights and certain other  limitations. li it ti • After approximately the 4th anniversary of closing, Comcast has the right to sell its entire stake, subject to  Transfer  tag‐along / drag‐along rights. Rights • After the 4th anniversary of closing, Comcast is permitted to sell a portion of its stake as long as it  maintains control and is the largest shareholder in the new joint venture. • Comcast can cause an IPO to occur after the closing of the 1st GE redemption right, if exercised, or after the  4th anniversary of the deal closing if not exercised. (1) GE may retain a preferred interest in certain circumstances. 33
  35. 35. Illustrative Redemption Calculation • Valuation based on 20% premium to market‐ Public Equity Value Public Equity Value  based multiples at the time of redemption • Excess value over initial equity value is split  20% Equity Premium 50%‐50% between Comcast and GE Adjusted Equity Value • Redemption value of GE stake expected to be  funded primarily through free cash flow and  leverage capacity at the new joint venture Initial Equity Value of  Initial Equity Value of $28.2 Billion • If any borrowings by the joint venture to fund  Excess Value GE’s redemptions would result in the venture’s  leverage ratio exceeding 2.75x or the venture  losing investment grade status, Comcast will  losing investment grade status Comcast will provide a backstop to a maximum amount of  50% Equity Investment Split $5.75 billion Shared Portion of Excess Value – 1st redemption right at year 3.5: maximum  backstop of $2.875 billion – 2nd redemption right at year 7: maximum  backstop of $2.875 billion plus any unused  Adjusted Equity  Shared Portion of  Equity Value for  backstop from 1st redemption Value Excess Value Redemption – Maximum total redemption funding of $5.75  Maximum total redemption funding of $5 75 billion 34
  36. 36. Reconciliation of Non-GAAP Financial Measures to GAAP Comcast1 New JV PF Ex-Programming Comcast Estimated Net Cash Provided by Operating Activities C O $9.2 $ $2.0 $ $11.2 $ Less: Estimated Capital Expenditures and Cash Paid for $(5.4) $(0.4) $(5.8) Intangible Assets g Estimated Adjustments for Payment of Tax on $0.1 $(0.2) $(0.1) Non-operating Items and Other Distributions Adjustment to Exclude the Estimated Impact of $0.4 $0.0 $0.4 the Economic Stimulus Packages Estimated Free Cash Flow $4.3 $1.4 $5.7 1) Comcast includes Cable Corporate & Other (CIM and Spectacor) and excludes contributed assets (Programming entities Regional SportsNets Fandango and Daily Candy) Cable, entities, SportsNets, Candy). 35