SecondQuarter2015

EarningsSummary
July30,2015

CautionConcerningForwardLookingStatements
andNonGAAPFinancialMeasures
ThispresentationincludescertainforwardlookingstatementswithinthemeaningofthePrivateSecuritiesLitigation
ReformActof1995andTimeWarnerCableintendsthatallsuchstatementsbecoveredbythesafeharborprovisions
ofthefederalsecuritieslaws.Statementshereinregardingfuturefinancialandoperatingresultsandanyother
statementsaboutfutureexpectationsconstituteforwardlookingstatements.Theseforwardlookingstatementsmay
beidentifiedbywordssuchasbelieve,expects,anticipates,projects,intends,should,estimatesorsimilar
expressions.Thesestatementsarebasedonmanagementscurrentexpectationsorbeliefs,andaresubjectto
uncertaintyandchangesincircumstances.Actualresultsmayvarymateriallyfromthoseexpressedorimpliedbythe
statementshereinduetochangesineconomic,business,competitive,technological,strategicand/orregulatory
factors,andotherfactorsaffectingtheoperationsofTimeWarnerCable,includingtheproposedmergerwithCharter
Communications,Inc.MoredetailedinformationaboutthesefactorsmaybefoundinfilingsbyTimeWarnerCablewith
theSEC,includingitsmostrecentAnnualReportonForm10KandQuarterlyReportsonForm10Q.TimeWarner
Cableisundernoobligationto,andexpresslydisclaimsanysuchobligationto,updateoralteritsforwardlooking
statements,whetherasaresultofnewinformation,futureevents,orotherwise.
ThispresentationincludesinformationregardingthehistoricalfinancialperformancethroughJune30,2015ofTime
WarnerCableanditsexpectationsregardingfutureperformance,includinghistoricalfinancialperformanceasreflected
innonGAAPfinancialmeasuressuchasOIBDA(OperatingIncomebeforeDepreciationandAmortization),Adjusted
OIBDA,AdjustednetincomeattributabletoTWCshareholders,AdjustedDilutedEPSandFreeCashFlow.Pleasenote
thatschedulessettingoutthereconciliationofhistoricalnonGAAPfinancialmeasurestoOperatingIncome,net
incomeattributabletoTWCshareholdersandcashprovidedbyoperatingactivitiesorothermostdirectlycomparable
GAAPfinancialmeasures,asapplicable,areincludedinthetrendingschedulespostedontheTimeWarnerCable
companywebsiteatwww.twc.com/investorsand,asapplicable,alsoareincludedintheCompanysearningsreleasefor
thequarterendedJune30,2015,whichcanalsobeaccessedfromtheCompanyswebsite.

FinancialHighlightsandSelectedFinancialResults

Secondquarter2015revenuegrew3.5%yearoveryearwithBusinessServicesrevenueup16.2%andResidentialServices
revenueup2.1%.

SecondquarterAdjustedOIBDA(1) was$2.0billion a1.2%decreaseyearoveryearasaresultofcontinuedaggressive

investments,aswellashigherprogrammingcostsandpensionexpense.Excludingthe$27millionincreaseinpension
expense,AdjustedOIBDA(1) wouldhavebeenflat.

HigherdepreciationexpensefromTWCMaxxandotherinvestmentsalsoreducedsecondquarterOperatingIncometo
$1.0billion.
(inmillions,exceptpersharedata)

2ndQuarter

YeartoDate6/30
Change

2015

2014

Change
%

2015

2014

Revenue

5,926 $

5,726 $

200

3.5% $

11,703 $

11,308 $

395

3.5%

AdjustedOIBDA(1)

2,030 $

2,054 $

(24)

(1.2%) $

4,026 $

4,034 $

(8)

(0.2%)

OperatingIncome+

1,029 $

1,163 $

(134)

(11.5%) $

2,113 $

2,255 $

(142)

(6.3%)

DilutedEPS(2)

1.62 $

1.76 $

(0.14)

(8.0%) $

3.21 $

3.46 $

(0.25)

(7.2%)

AdjustedDilutedEPS(3)

1.54 $

1.89 $

(0.35)

(18.5%) $

3.19 $

3.68 $

(0.49)

(13.3%)

Cashprovidedbyoperatingactivities+

1,698 $

1,695 $

0.2% $

3,206 $

3,092 $

114

3.7%

Capitalexpenditures

1,263 $

1,240 $

23

1.9% $

2,397 $

2,074 $

323

15.6%

FreeCashFlow(4)+

440 $

459 $

(19)

(4.1%) $

847 $

1,088 $

(241)

(22.2%)

+ OperatingIncomeisreducedbymergerrelatedandrestructuringcostsof$82millionand$61millionforthesecondquartersof2015and2014,
respectively,and$108millionand$141millionforthesixmonthsendedJune30,2015and2014,respectively.Cashprovided by operatingactivities
andFreeCashFlowarereducedbymergerrelatedandrestructuringpaymentsof$105millionand$29millionforthesecondquartersof2015and
2014,respectively,and$131millionand$87millionforthesixmonthsendedJune30,2015and2014,respectively.
RefertoEndnotesonslide12fordefinitions.

OperationalHighlights

Recordsecondquarterresidentialsubscriberperformance:
o Residentialvideonetdeclinesof45,000 bestsecondquartersince2008
o Residentialhighspeeddatanetadditionsof172,000 best secondquartersince2008
o Residentialvoicenetadditionsof252,000 bestsecondquarterever
o Residentialtripleplaynetadditionsof233,000 best secondquarterever
o Residentialcustomerrelationshipnetadditionsof66,000 bestsecondquartereverandfirstpositivesecond
quarternetadditionssince2008

Firsthalfcapitalexpendituresof$2.4billionreflecttheCompanyscontinuedacceleratedinvestmentinTWCMaxx,
improvedcustomerexperienceandnetworkexpansion.
o TWCMaxx,includingalldigitalconversionandInternetspeedsofupto300Mbps,wascompletedinAustinin
midApril,iswellunderwayinKansasCity,Dallas,Raleigh,SanAntonio,CharlotteandHawaiiandwillbegininSan
Diegoin2015.
o Also,theCompanyhasacceleratedthedeploymentofTWCMaxxinWilmingtonandGreensboroin2015.
o TWCcontinuedtoupgradecustomerpremiseequipmenttoimproveitscustomersexperience.Inthefirstsix
monthsof2015,TWCdeployed nearly5.6millionnewsettopboxes,digitaladaptersandadvancedmodemsin
customershomes.
o Duringthefirstsixmonthsof2015,TWCfurthergrewitsserviceableBusinessServicesopportunitybyaddingnearly
32,000commercialbuildingstoitsnetwork.

Investmentsinnetworkreliabilityandcustomercarecontinuedtocontributetomeaningfulyearoveryearoperational
improvementsinthesecondquarter.
o 530,000fewerrepaircallstoTWCcallcentersyearoveryear.
o 15%reductioninrepairrelatedtruckrollspercustomerrelationship.
o 98%ontimepercentageforcustomerappointmentswithintheCompanysindustryleadingonehourappointment
window.
o Firstvisitproblemresolutionimprovedby10%.

Record2QSubscriberResults
2QNetAdds(Declines)
(inThousands)
(25)
(45)
(50)

2Q

2010
2011

(100)

2Q
172

2009

(75)

175
150

2009

125

2010
2011

100

2012

2012
(125)

2013
2014

(150)

2015

(175)
(200)

2Q

250
252

2009
2010

150

2011

100

2012
2013
2014

2015
(50)
(100)

2014

50

2015

25

ResidentialHSD

300

50

2013

ResidentialVideo

200

75

75
50

2Q
66
2009 +

25

2010 +
2011

2012
(25)

2013
2014

(50)

2015

(75)
(100)

ResidentialVoice

ResidentialCustomerRelationships

+Amountsincludedfor2009and2010representnetadditionsfortotalcustomerrelationshipsasresidentialamountsarenot available.

TotalRevenue
TotalCustomerRelationshipARPU(5)

Revenue
($inMillions)

$5,726

+3.5%

$5,926
$365

+1.5%

$373
$803

$691

$125.79
$4,662

$4,758

2Q14

2Q15

ResidentialServices

BusinessServices

RefertoEndnotesonslide12fordefinitions.

2Q14

$127.65

2Q15

Other

RevenuebySegment
($inMillions)

ResidentialServices

+2.1%
$20

$4,662

$4,758

$490

$478

$803
$24

$691

+16.2%

$50
$95

$50

$120

$90
$1,606

OtherOperations+

BusinessServices

$1,742
$97

$436

$147

$123

$2,546

2Q14
Video

$2,514

HSD

Voice

2Q14
Other

HSD

Voice

$431

$164

$168

$272

$263

2Q14

2Q15

$391

$331

2Q15

(1.1%)

2Q15
Wholesale
transport

+Includesintersegmentrevenueof$66millionin2Q2015and$63millionin2Q2014.

Video

Other

Advertising

Other

AdjustedOIBDA(1) &OperatingIncome
($inMillions)

AdjustedOIBDA(1)
(1.2%)

OperatingCostsandExpenses+

$3,672

+6.1%

$207
$371
$544

$2,054

$2,030

2Q14

2Q15

35.9%

34.3%

$3,896
$224
$406

Margin(6)

$596

DepreciationandAmortization
+10.7%

$1,209

$1,341

$1,181
$830

$919

2Q14

2Q15

OperatingIncome

$1,489

(11.5%)

2Q14

2Q15

Programmingandcontent

Otheroperating

Salesandmarketing

Technicaloperations

Customercare

Margin(7)

$1,163

$1,029

2Q14

2Q15

20.3%

17.4%

+Totaloperatingcostsandexpensesexcludesdepreciation,amortizationandmergerrelatedandrestructuringcosts.
RefertoEndnotesonslide12fordefinitions.

DilutedEarningsPerShare
DilutedEPS(2)

AdjustedDilutedEPS(3)

(8.0%)

(18.5%)

$1.89
$1.76
$1.62

2Q14

$1.54

2Q15

2Q14

2Q15

AverageDilutedCommonShares
Outstanding
(inMillions)

2Q14
282.4

RefertoEndnotesonslide12fordefinitions.

2Q15
285.8

CapitalExpenditures
CapitalExpenditures
YeartoDateJune30,
($inMillions)

+15.6%

$2,074

$2,397

2014

2015

CapitalIntensity(8)
YeartoDateJune30,
2014
18.3%

RefertoEndnotesonslide12fordefinitions.

CapitalExpendituresincreasedprimarilydueto
theCompanysinvestmentstoimprovenetwork
reliability,upgradeoldercustomerpremise
equipmentandexpanditsnetworktoadditional
residences,commercialbuildingsandcell
towers,including:
thedeploymentofTWCMaxxinAustin,
KansasCity,Dallas,Raleigh,SanAntonio,
CharlotteandHawaii;
nearly5.6millionnewsettopboxes,digital
adaptersandadvancedmodemsdeployedin
customershomes;and
nearly32,000commercialbuildingsaddedto
TWCsnetwork.

2015
20.5%

10

FreeCashFlow(4)
($inMillions)

FreeCashFlow(4)
YeartoDateJune30,

YeartoDate6/30
2014
(1)

AdjustedOIBDA
Netinterestpayments
Netincometaxpayments

(22.2%)

2015

4,034 $
(745)
(95)

4,026
(697)
(35)

Allother,net,includingworking
capitalchanges
Cashprovidedbyoperatingactivities
ofstockoptions
$847

3,092

3,206

99

74

(2,074)

(2,397)

(24)

(31)

(5)

(5)

1,088 $

847

Less:
Capitalexpenditures
Cashpaidforotherintangibleassets
Other
(4)

FreeCashFlow

RefertoEndnotesonslide12fordefinitions.

(88)

Add:Excesstaxbenefitfromexercise

$1,088

2014

(102)

2015

11

Endnotes
(1)AdjustedOIBDAisdefinedasOperatingIncomebeforeDepreciationandAmortizationexcludingtheimpact,ifany,of
noncashimpairmentsofgoodwill,intangibleandfixedassets;gainsandlossesonassetsales;andmergerrelatedand
restructuringcosts.
(2)Dilutedearningspershare(EPS)isdefinedasnetincomeperdilutedcommonshareattributabletoTWCcommon
shareholders.
(3)AdjustedDilutedEPSmeansnetincomeperdilutedcommonshareattributabletoTWCcommonshareholdersexcluding
theimpact,ifany,ofnoncashimpairmentsofgoodwill,intangibleandfixedassetsandinvestments;gainsandlosseson
assetsales;mergerrelatedandrestructuringcosts;changesintheCompanysequityawardreimbursementobligationto
TimeWarnerInc.;andcertainchangestoincometaxprovision;aswellastheimpactoftaxesontheaboveitems.
(4)FreeCashFlowisdefinedascashprovidedbyoperatingactivities(asdefinedunderGAAP)excludingtheimpact,ifany,
ofcashprovidedorusedbydiscontinuedoperations,plus(i)anyincometaxespaidoninvestmentsalesand(ii)any
excesstaxbenefitfromequitybasedcompensation,less(i)capitalexpenditures,(ii)cashpaidforotherintangibleassets
(excludingthoseassociatedwithbusinesscombinations),(iii)partnershipdistributionstothirdpartiesand(iv)principal
paymentsoncapitalleases.
(5)ARPUrepresentsaveragemonthlyrevenueperunit.TotalcustomerrelationshipARPUrepresentstotalrevenuedivided
bythecorrespondingaveragecustomerrelationshipsfortheperiod.
(6)AdjustedOIBDAmarginisdefinedasAdjustedOIBDAasapercentageoftotalrevenue.
(7)OperatingIncomemarginisdefinedasOperatingIncomeasapercentageoftotalrevenue.
(8)Capitalintensityisdefinedascapitalexpendituresasapercentageoftotalrevenue.

12