2. Cautionary Statement Regarding
Forward Looking Statements
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:
This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although
we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you
that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and
assumptions including, without limitation, the factors described under quot;Risk Factorsquot; from time to time in our filings with the Securities and Exchange
Commission (“SEC”). Many of the forward-looking statements contained in this presentation may be identified by the use of forward-looking words such as
quot;believe,quot; quot;expect,quot; quot;anticipate,quot; quot;should,quot; quot;planned,quot; quot;will,quot; quot;may,quot; quot;intend,quot; quot;estimated,quot; quot;aim,quot; quot;on track,quot; quot;target,quot; quot;opportunityquot; and quot;potential,quot; among
others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this presentation are set forth
in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:
• the availability, in general, of funds to meet interest payment obligations under our debt and to fund our operations and necessary capital
expenditures, either through cash flows from operating activities, further borrowings or other sources and, in particular, our ability to fund debt
obligations (by dividend, investment or otherwise) to the applicable obligor of such debt;
• our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a
default of our other obligations under cross-default provisions;
• our ability to pay or refinance debt prior to or when it becomes due and/or refinance that debt through new issuances, exchange offers or otherwise,
including restructuring our balance sheet and leverage position;
• the impact of competition from other distributors, including incumbent telephone companies, direct broadcast satellite operators, wireless broadband
providers, and digital subscriber line (“DSL”) providers;
• difficulties in growing, further introducing, and operating our telephone services, while adequately meeting customer expectations for the reliability of
voice services;
• our ability to adequately meet demand for installations and customer service;
• our ability to sustain and grow revenues and cash flows from operating activities by offering video, high-speed Internet, telephone and other services,
and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition;
• our ability to obtain programming at reasonable prices or to adequately raise prices to offset the effects of higher programming costs;
• general business conditions, economic uncertainty or slowdown, including the recent significant slowdown in the new housing sector and overall
economy; and
• the effects of governmental regulation on our business.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We
are under no duty or obligation to update any of the forward-looking statements after the date of this presentation.
Unless otherwise stated, all results are pro forma, which reflect certain sales and acquisition of cable systems in 2006 and 2007 as if they had
occurred on January 1, 2006. For comparable actual results for 2007, see the Appendix to these slides.
2
3. Continuing Momentum with Focused Strategies
RGU net adds of 302,300 – total RGUs up 7% year-over-year
Video RGU net adds of 90,900 – strongest net adds since 2003
RGU Momentum
1.1 million telephone customers – nearly doubled since 1Q07
49% bundle penetration up from 43%
Total ARPU up 13.4% – surpassed $100
ARPU Growth
Video ARPU up 6.2% due to HD and other advanced services
Strong Revenue 10.5% revenue growth
and Adj EBITDA1
10.5% adjusted EBITDA1 growth
Growth
Opportunistically Completed $1.0 billion financing transaction
Improve Balance
$1.9 billion of liquidity at quarter end
Sheet
3
See notes on slide 11
4. Right Strategies Generating Results
Bundled Customers Revenue
($ in millions) +10.5%
$1,564
y/y
+13% y/y
2,602,800 $1,416
2,305,300
Triple Play
Customers
1Q07 1Q08
Adjusted EBITDA1
Double Play
Customers
($ in millions)
+10.5%
$545
y/y
1Q 0 7 1Q 0 8
$493
Bundle
43% 49%
Pen.
3-Play
$120 - $130 $120 - $130
ARPU
1Q07 1Q08
Bundle driving double-digit revenue and adj EBITDA1 growth
See notes on slide 11 4
5. 1Q08 Performance Snapshot
1Q08 Highlights
1Q Y/Y
Revenue Summary
1Q08 Growth
($ in millions)
10.5% revenue and adj EBITDA1 growth
year-over-year
Video $858 3%
HSI and telephone contributed 63% of
High-Speed Internet 328 12%
revenue growth
Telephone 121 92%
Commercial revenue continued strong
Commercial 93 15%
performance, growing 15% year-over-
year
Ad Sales 68 10%
Other 96 12%
Total ARPU up 13.4% to over $100
driven by bundle and advanced services
Total Revenues $1,564 10.5%
Operating Costs and
Expenses $1,019 10.4%
1
Adj EBITDA $545 10.5%
See notes on slide 11 5
6. Upselling Video Customers
Video Customer Mix Bundled Video Mix (Residential)
100%
100%
75%
75%
Triple
Digital 50% Double
50%
Basic Only
Single
25%
25%
0%
0%
1Q06 1Q07 1Q08
1Q06 1Q07 1Q08
Note: Bundled video mix is residential (non-bulk) video customers only.
1Q08 Video Highlights Video ARPU
90,900 video RGU net adds +6.2%
Video ARPU up 6.2% year-over-year: $57.46
On Demand orders up 44% $56.05
$55.46
$55.13
65% of video revenue growth in $54.11
quarter from advanced services
Best video RGU net adds and
ARPU growth since 2003 1Q07 2Q07 3Q07 4Q07 1Q08
6
7. Growing HSI Customers
1Q08 HSI Highlights HSI Customers
+86
(Customers in ‘000s)
2,768
Grew HSI customers 10% year-over-year
2,682
2,632
HSI ARPU of $40.08, up from $39.76 in 1Q07
2,578
Home networking customers and revenue 2,517
quadrupled year-over-year
Widely deploying 16 Mbps this year
1Q07 2Q07 3Q07 4Q07 1Q08
Pen. of
23.4% 23.8% 24.1% 24.3% 25.0%
HSI HH
HSI revenue growth driven by bundle, speed migration, and home networking
7
8. Focus on Driving Telephone Penetration
Telephone Customers
1Q08 Telephone Highlights
(Customers in ‘000s)
Nearly doubled telephone customers and +126
revenue year-over-year 1,085
959
78% of telephone customers have Triple Play 804
701
Triple Play ARPU $120 - $130 573
Expect 20-25% penetration in next few years
1Q07 2Q07 3Q07 4Q07 1Q08
Pen. of
7.9% 9.2% 9.7% 10.6% 11.4%
Phone
HH
Leveraging telephone to drive bundle
8
9. Bundle Opportunity
Driving Bundle Penetration Targeting Unserved Households
(% of Residential Customer Relationships)
49%
43% Existing Video
Opportunity Customers
36%
Double 4.9M HH
6.5M HH
Triple
1Q06 1Q07 1Q08 391K 391K HH
Non-video
Customers
Opportunity with 6.5M unserved
Added 96,100 bundled customers in 1Q08
households available to target
Nearly half of customers now in a bundle
Focused on providing right mix to right
Opportunity to further target remaining customers
51% of customer base with bundle
Non-video customers grew 14% year-over-
packages
year with mid-teen growth for last 5
quarters
9
10. 1Q08 Summary
RGU net adds of 302,300
Leveraging telephone and HSI to drive deeper bundle penetration
RGU Momentum
16% triple play penetration – doubled year-over-year
13.4% year-over-year ARPU growth
Growing ARPU with advanced services, bundling, and upselling
ARPU Growth
Triple play ARPU of $120 - $130
Strong Revenue
10.5% revenue growth
and Adj EBITDA
10.5% adjusted EBITDA1 growth
Growth1
Disciplined Expect $1.2B capex in 2008
Capital
Three-quarters of capex success-based
Investments
See notes on slide 11 10
11. Footnotes
Unless otherwise stated, all results are pro forma, which reflect certain sales and acquisition of cable systems in 2007 and 2006 as
if they had occurred on January 1, 2006. For comparable actual results for 2007, see the Appendix to these slides.
1 Adjusted EBITDA and pro forma adjusted EBITDA are non-GAAP financial measures and should be considered in addition to, not as a
substitute for, net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be
comparable to similarly titled measures used by other companies. Adjusted EBITDA is defined as income from operations before
depreciation and amortization, stock compensation expense, and other operating expenses such as special charges or loss on sale or
retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-
intensive nature of the Company’s businesses as well as other non-cash or non-recurring items, and is unaffected by the Company’s capital
structure or investment activities. Adjusted EBITDA and pro forma adjusted EBITDA are liquidity measures used by Company management
and its board of directors to measure the Company’s ability to fund operations and its financing obligations. For this reason, it is a significant
component of Charter’s annual incentive compensation program. However, this measure is limited in that it does not reflect the periodic
costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing for the Company.
Company management evaluates these costs through other financial measures.
The Company believes that adjusted EBITDA and pro forma adjusted EBITDA provide information useful to investors in assessing Charter’s
ability to service its debt, fund operations, and make additional investments with internally generated funds. In addition, adjusted EBITDA
generally correlates to the leverage ratio calculation under the Company’s credit facilities or outstanding notes to determine compliance with
the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). Adjusted EBITDA and pro
forma adjusted EBITDA, as presented, include management fee expenses in the amount of $34 and $32 million for each of the three months
ended March 31, 2008 and 2007, respectively, which expense amounts are excluded for the purposes of calculating compliance with
leverage covenants.
For a reconciliation of pro forma adjusted EBITDA and adjusted EBITDA to the most directly comparable GAAP financial measure, see the
Appendix.
11
13. CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(DOLLARS IN MILLIONS)
Three Months Ended March 31,
2008 2007 2007
Actual Actual Pro Forma (a)
Net cash flows from operating activities $ 204 $ 266 $ 263
Less: Purchases of property, plant and equipment (334) (298) (298)
Less: Change in accrued expenses related to capital expenditures (31) (32) (32)
Free cash flow (161) (64) (67)
Interest on cash pay obligations (b) 452 453 453
Purchases of property, plant and equipment 334 298 298
Change in accrued expenses related to capital expenditures 31 32 32
Other, net 10 2 2
Change in operating assets and liabilities (121) (225) (225)
Adjusted EBITDA $ 545 $ 496 $ 493
(a) Pro forma results reflect certain sales and acquisitions of cable systems in 2007 as if they occurred as of January 1, 2007.
(b) Interest on cash pay obligations excludes accretion of original issue discounts on certain debt securities and amortization of deferred financing
costs that are reflected as interest expense in our consolidated statements of operations.
The above schedules are presented in order to reconcile adjusted EBITDA and free cash flows, both non-GAAP measures, to the most directly
comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.
14. Revenue Summary
($ millions) 1Q Y/Y
1Q08 Growth
Video $ 858 2.4%
High-Speed Internet 328 11.6%
Telephone 121 92.1%
Commercial 93 14.8%
Advertising Sales 68 7.9%
Other 96 11.6%
Total Revenues $ 1,564 9.8%
Operating Costs and
Expenses 1,019 9.7%
Adj EBITDA $ 545 9.9%
