STRICTLY PRIVATE & CONFIDENTIAL Cablecom Luxembourg SCA

Cablecom Luxembourg S.C.A.
Annual Report for the
Year Ended December 31, 2005
STRICTLY PRIVATE & CONFIDENTIAL

TABLE OF CONTENTS
BUSINESS ....................................................................................................................................................................1
RISK FACTORS .........................................................................................................................................................18
CAPITALIZATION ....................................................................................................................................................30
SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA ......................................................................31
KEY OPERATING STATISTICS ..............................................................................................................................33
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS ......................................................................................................................................................35
MANAGEMENT AND GOVERNANCE ..................................................................................................................47
DESCRIPTION OF CERTAIN FINANCING ARRANGEMENTS ..........................................................................52
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS ..........................................................59
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS................................................................................ F-1
Page

General Development of Business
BUSINESS
Cablecom Luxembourg S.C.A. (Issuer) is a holding company incorporated in Luxembourg and its
subsidiary, Cablecom GmbH, Zurich (collectively referred to as Cablecom 1 ) operates cable communications
services primarily in Switzerland, and to a lesser extent in the Austrian market. Cablecom provides a wide
range of services, including television, telephony and Internet access to its residential customers, as well as
data services to business customers in Switzerland. Cablecom began to offer telephony services, initially as
an extension of its broadband Internet product in February 2003.
Cablecom’s analog cable television service represents the most significant contributor to Cablecom’s
revenue. Additionally, Cablecom utilizes its existing infrastructure and network capacity to develop its
broadband Internet access, digital television service, and fixed-line telephone services to residential
customers while providing advanced data services and wholesale activities to business customers and third
party network operators, respectively.
The Issuer was incorporated in Luxembourg on March 19, 2004 in order to perform holding activities of
Cablecom GmbH and facilitated the refinancing of Cablecom GmbH in April 2004. Cablecom GmbH was
acquired by the Issuer through its subsidiary CCom Financing (Gibraltar) Limited through a non-cash
issuance of shares as a result of the subsequent refinancing.
Cablecom’s ultimate parent changed on October 24, 2005 when Liberty Global Switzerland, Inc. (Liberty
Global Switzerland) acquired 100% of the outstanding shares of Cablecom Holdings AG from Glacier
Holdings S.C.A. See Note 1 to the consolidated financial statements.
Unless indicated otherwise, amounts are denominated in Swiss Francs (CHF). In addition to CHF, other
foreign currencies will be described throughout this document. These other currencies include the European
monetary unit (EUR) and the U.S. Dollar (USD).
Recent Development of Business
Change in ultimate parent company
On September 30, 2005, Liberty Global Switzerland, formerly United ACM Holdings Inc., a subsidiary of
Liberty Global, Inc. (Liberty Global), entered into a share purchase agreement with Glacier Holdings S.C.A.
to acquire 100% of the issued share capital of Cablecom Holdings AG, for cash consideration of
CHF 2.826 billion, from a group of selling shareholders. The acquisition was completed on October 24,
2005.
Liberty Global is the leading international cable operator offering advanced video, voice, and Internetaccess
services to connect our customers to the world of entertainment, communications and information. At
December 31, 2005, Liberty Global operated state-of-the-art broadband communications networks that
served approximately 15 million customers in 19 countries principally located in Europe, Japan, Chile, and
Australia. Liberty Global’s operations also include significant media and programming businesses such as
Jupiter TV in Japan and chellomedia in Europe.
1 “we,” “us” and “our” refer to the Cablecom.
1

Financing
The Issuer had outstanding senior fixed rate notes (Senior Notes) and senior secured floating rate notes
(Senior Secured Notes) at the time of its acquisition by Liberty Global Switzerland. Pursuant to the
indentures governing the Senior Notes and Senior Secured Notes, the Issuer was required to make an offer
to purchase the Senior Notes and Senior Secured Notes at 101% of their principal amount as a result of the
change of control. On December 8, 2005, the Issuer purchased the tendered Senior and Senior Secured
Notes.
On January 20, 2006, the Issuer redeemed the balance of the Senior Secured Notes not tendered in the
“change of control” offer for 102% of their principal amount. The purchase of Senior Secured Notes
pursuant to the change of control offer and the optional redemption was funded by borrowings of term loans
under a facilities agreement (Bank Facility) entered into by the Issuer and its subsidiary, Cablecom GmbH,
dated December 5, 2005. The Bank Facility provides for two term loan facilities to the Issuer with
maximum aggregate borrowings of CHF 1.33 billion. The Bank Facility was fully drawn to finance the
change of control tender offer and the redemption of the remaining Senior Secured Notes. In addition,
Cablecom GmbH has a CHF 150.0 million revolving credit facility (Existing Revolving Credit Facility).
Narrative Description of Business
We are the largest cable operator offering broadband communications services in Switzerland, providing our
customers with quadruple-play products in cable television, broadband Internet, fixed-line and mobile
telephone services. We have a major presence in 14 of the 16 largest Swiss cities.
Based on our consolidated operating statistics as at December 31, 2005, our network passed approximately
1.8 million homes and provided cable television services to 1.4 million analog cable television subscribers.
In addition, we serviced 106,300 digital cable television subscribers, 340,500 broadband Internet subscribers
and 186,200 telephony subscribers over both our network and our partner networks, as of December 31,
2005. Included in these subscriber numbers are 25,000 digital cable television, 35,800 broadband Internet
and 19,300 telephony subscribers serviced over partner networks. 70% of our nationwide network is
upgraded to two-way capability 2 .
We market analog cable television services to 100% of our homes passed. For 70% of our analog cable
television subscribers, we maintain billing relationships with landlords or housing associations, which
typically provide analog cable television service for an entire building and do not terminate service each
time there is a change of tenant in the landlord’s or housing association’s premises. 81% of our homes
passed are capable of receiving digital cable television service. We offer our digital cable television
subscribers a digital entry package consisting of 50 television and 30 radio channels and a range of
additional pay television programming in a variety of foreign language program packages. We also offer
NVOD services, which provide movies and other programs available on demand to all of our digital cable
television customers. In January 2006, we announced the introduction of a DVR, enabling users to create a
personalized television experience. Our digital cable television service is sold directly to the end user as an
add-on to our analog cable television services.
2 Two-way capable homes are homes passed by our networks where customers can request and receive the
installation of a two-way addressable set-top converter, cable modem, transceiver and/or voice port which, in most
cases, allows for the provision of analog cable television services, digital cable television services, broadband
Internet services and telephony services.
2

We offer five tiers of broadband Internet access service with download speeds ranging from 300 kbps to
6 mbps. 70% of our homes passed are capable of receiving broadband Internet. Approximately 20% of our
analog cable television subscribers also receive our Internet access service. In addition, we continue to offer
dial-up Internet services on a limited basis.
Telephony services are available to 70% of our homes passed. Approximately 11% of our analog cable
television subscribers also receive our telephony services. In June 2005, we launched “Unlimited 24”, the
first flat rate telephone plan in Switzerland.
We offer managed wireless area networks and voice services as well as value-added services such as
security, messaging and hosting to the business market in Switzerland. The acquisition of Unified Business
Solutions in May 2005 provided us with a suite of converged voice and data products and an established
customer base.
We provide full or partial analog television signal delivery, network maintenance services and engineering
and construction services to other cable operators in Switzerland, which we refer to as our “partner
networks”. We also offer digital television, broadband Internet and telephony service to the analog cable
subscribers of those partner networks that enter into service operating contracts with Cablecom. We have
the direct customer billing relations with the subscribers who subscribe to these services on the partner
networks. These service operating contracts permit us to offer some or all of our digital television,
broadband Internet and fixed-line telephony products directly to those partner network subscribers and, as a
result, have expanded the addressable markets for our digital products. In exchange for our right to provide
digital products directly to the partner network subscribers, we pay to each partner network a share of the
revenue we generate from those subscribers.
With the launch of a mobile pre-paid offer in December 2005, we became the first telecommunications
provider in Switzerland to offer television, Internet, fixed-line and mobile telephony — also known as
“quadruple play”.
Integration
Our integration process into UPC Broadband, Liberty Global’s European broadband group, started after the
closing of the transaction on October 24, 2005. As a first priority we focused on procurement synergies
(e.g. modem prices, voice license fees, set-top boxes, etc.) as well as the reduction of overhead in corporate
shared functions. In November 2005, we began with an announced program to reduce headcount by 80 full
time equivalents by year end and an additional 170 full time equivalents throughout 2006. In addition, we
began integrating other areas of Cablecom such as our Network and Information Technology departments.
We migrated network monitoring as well as 2nd and 3rd level support to UPC Broadband’s Amsterdam
location and started the migration to UPC Broadband’s Pan European IT platform for provisioning, billing
and customer web interface.
In addition, we will incur operational costs recharged by UPC Broadband for usage of shared platforms,
backbone and services as well as for corporate functions and support.
3

Our Products and Services
Cable television
We are the leading Swiss cable television service provider with approximately 1.4 million analog cable
television subscribers as of December 31, 2005, representing a 78% penetration 3 in our network coverage
areas. In addition, through our partner networks, we deliver analog cable television signals to approximately
0.5 million subscribers, and, in many cases, we have the exclusive rights to market our digital products to
these partner network subscribers. As of December 31, 2005, we serviced approximately 106,300 digital
cable television customers over both our network and our partner networks. Our analog television offering
consists of up to 53 analog television channels and up to 45 analog radio channels. To complement our
analog television offering, we offer up to 130 digital television channels, 30 digital radio channels as well as
pay-per-view and premium packages, NVOD and DVR services.
Analog cable television
We currently provide up to 53 analog television channels to approximately 1.4 million analog cable
television subscribers. Our service includes a variety of public and private channels from Switzerland,
Germany, France, Italy and Austria, as well as special interest channels such as information, sport, music
and home shopping and public channels from non-neighboring countries. We offer our services through
direct connections to subscribers’ televisions. We derive revenues from subscription fees and also receive a
small amount of carriage fees paid by certain of the content providers to carry their programs over our
network.
In 2005, we charged our subscribers a maximum monthly fee of CHF 19.50, excluding VAT, for our analog
services and a monthly fee of CHF 2.00 for regulatory and copyright. In 2004, we reached an agreement
with the Swiss Price Regulator of the Federal Department of the Economy of Switzerland, governing the
basic analog television rate for 2005 and 2006. According to the agreement, prices for our analog cable
television service remained unchanged for 2005 and were increased by CHF 1.50 to CHF 21.00 effective
January 1, 2006.
In addition to the delivery of analog cable television, we offer our subscribers a Service Plus contract,
providing for maintenance of in-building cable wiring and permission to upgrade the in-building installation
if necessary, for bi-directional services (specifically, broadband Internet and fixed-line telephony). As of
December 31, 2005, approximately 69% of our subscriber base had opted for this service, which costs each
subscriber CHF 2.00 per month.
Digital television
We launched our digital television platform in November 1999 for the German language region of
Switzerland. In mid 2001, we added the first two German language pay-TV packages. Since June 2002, we
had a competitive offering tailored to each of the three regions of Switzerland. This consists of a basic
offering of 50 television and 30 radio channels, several packages targeted to specific customer segments and
stand alone pay-television channels. The digital television product is an ancillary service to analog cable
television. As of December 31, 2005, we serviced approximately 106,300 digital subscribers over both our
3 Penetration measures the number of Revenue Generating Units (RGU) for our service divided by the number of
homes serviceable for our service. RGU is separately an analog cable television subscriber, digital cable television
subscriber, broadband Internet subscriber or telephony subscriber. A home may contain one or more RGUs.
4

network and our partner networks. Our services are available to approximately 1.7 million homes within
both our network and our partner networks.
Reception of our digital cable television services requires a digital set-top box that the customer either rents
together with the digital basic package for a monthly fee of CHF 25.00 from our direct channels or from
retail outlets or buys outright from our direct channels. The customer can choose from three categories of
programming:
• basic programming bundle or stand alone plus an interactive television service at no additional
cost (beyond the set-top box rental or purchase cost);
• pay packages, including minority group programming and specialty programming, for which the
customer pays a monthly fee, varying by package; and
• pay-per-view programming comprised of a fee for a single viewing of a specific program,
predominantly hit movies from six of the major Hollywood studios and adult programming.
In 2005 we introduced full simulcasting of our analog channels on our digital platform and subsequently
introduced the first DVR in the Swiss market. Throughout 2006, we plan to implement a variety of
measures to further improve the television experience of our customers. We plan to continue to expand our
digital line-up with a selection of new programming as it becomes available. Our electronic program guide
will be expanded to provide detailed information on scheduling and content for all of our channels on an
expanded time basis. This will assist customers to easily sort through our expanded collection of channels.
Broadband Internet
In 1999, we expanded our existing dial-up Internet services by launching our broadband offering, “hispeed,”
which provides “always on” high-speed Internet access via cable modem at a variety of downstream speeds
from 300 kbps to 6 mbps. As of December 31, 2005, we had approximately 340,500 residential hispeed
subscribers and a 23% penetration rate of broadband Internet homes serviceable within both our network
and our partner networks.
We currently offer five different residential packages:
Product Speed (Download/Upload in kbps) Cost per month (CHF)
Hispeed Light 300/100 10 plus Volume (max. 80)
Hispeed 300 300/100 30
Hispeed 3,000 3,000/300 45
Hispeed 4,000 4,000/400 60
Hispeed 6,000 6,000/600 95
Switzerland is well positioned for continued broadband Internet growth based on key demographics,
including computer and Internet penetration rates and average income, as well as the early success of the
broadband Internet product across the country. Broadband Internet is a high margin business with the
majority of our costs relating to Internet peering.
Our residential broadband Internet strategy is to provide a superior product at a superior price by
outperforming our competitors in terms of upstream and downstream speed, product features and service
quality. We are well positioned to be the broadband Internet market leader in those parts of Switzerland
where our service is available. We expect to continue this strategy, and expect that most product capital
expenditures will be incremental going forward, either in terms of subscribers or capacity.
5

In 1998, we launched our Internet services by acquiring Swiss Online AG, a leading Swiss dial-up Internet
service provider with service availability across Switzerland. As of December 31, 2005, Swiss Online had
approximately 93,500 dial-up users, of which about 24,700 were subscription-based users. From 2001 to
2005, we targeted our dial-up Internet customers for conversion to broadband Internet services. For many of
the remaining customers who reside off of our footprint area, Cablecom broadband Internet is not available.
However the dial-up business continues to generate steady revenues with minimal cost. Much of the dial-up
infrastructure, including the Internet platform, web site and maintenance costs, are shared with our business
and consumer broadband Internet services.
Telephony
We started offering fixed-line telephone services under the name of “digital phone” on a limited basis in
February 2003. On June 8, 2004, we officially launched the telephony product with the announcement of a
new tariff structure including free evening and weekend national calls for all subscribers. As of December
31, 2005, we had approximately 186,200 residential telephony subscribers and a 13% penetration rate of
telephony homes serviceable within both our network and our partner networks.
We are uniquely positioned in the telephony market as the only alternative local loop provider of fixed-line
telecommunications services. We intend to attract subscribers to our fixed-line telephone services based on
the wider offering of value-added services over a hybrid VoIP platform, product bundling with our existing
broadband Internet subscriber base and offering attractive tariff pricing which attracts a high usage profile
user which, in turn, generates higher average revenue per user (ARPU).
In 2005, we signed a mobile reseller contract with Sunrise, which enabled us to become the first quadruple
provider in Switzerland and strategically open the opportunities to develop and offer fixed-mobile
converged telephone services. On December 16, 2005 we launched our prepaid offer and announced the
launch of a post-paid offer for the first half of 2006.
Business Solutions
We offer advanced data services including Internet access, multi-site data connectivity, VPN, security and
other value-added services to the Swiss business market. For large businesses, customized data and voice
solutions are offered, and for the small and medium enterprise (SME) market we offer standardized service
packages. Current corporate customers include Migros, Swiss Life, Basler Insurance, Sun and over 1,500
medium-sized customers.
Business Solutions’ services are modular and can be tailored to specific customer requirements such as
bandwidth and service level. Our product offerings include:
• cablecom connect VPN, which offers a reliable and high-performance private corporate network;
• cablecom connect ethernet, which offers level 2 point to point connectivity
• cablecom connect Internet, which offers lnternet connectivity
• cablecom managed firewall, which offers reliable security
Our network includes the second most extensive local loop infrastructure in Switzerland. The network is
close to or within proximity of the majority of Swiss businesses which provides a basis for further growth in
this segment.
6

The acquisition of Unified Business Solutions in May 2005 provided us with a suite of converged voice and
data (including VoIP) products and an established customer base. These capabilities enable us to support
our customers in the transition from traditional ISDN to converged IP-based data and voice services by
providing integrated solutions.
Partner Group
Cablecom provides wholesale delivery of analogue television signals, engineering and operating services to
numerous partner networks in Switzerland.
We provided full or partial analogue television signals to networks that redistributed the signals to more than
0.7 million of their subscribers. Of these networks, partner networks under service operating contracts
redistributed our signal to approximately 0.5 million partner network subscribers. These service operating
contracts also permit us to offer some or all of our digital television, broadband Internet, fixed-line
telephony and other services directly to those partner network subscribers and, as a result, have expanded
the addressable market our digital products. In exchange for the right to provide digital products directly to
the partner network subscribers, we pay each partner network a share of the revenue generated from those
subscribers. Revenue for residential digital cable television, broadband Internet and telephony services
provided to subscribers of the partner networks as well as the commissions paid to the partner networks are
recognized within our consumer business.
In addition to analogue signal delivery, we provide cable television engineering and construction services to
partner networks and third party networks, including the upgrade and maintenance of cable networks, and
sale of hardware such as amplifiers and routers. We also upgrade cable networks to enable them to deliver
digital television, broadband Internet or fixed-line telephony on a stand alone basis or as provided through
our consumer business.
Cablecom provides technical services covering all infrastructures and operating aspects of cable networks,
including:
• Planning of cable television systems and network infrastructure
• Design and construction of turn-key systems and project management as a general contractor
• Provision of IP-transit services (Internet feed)
• Operation and maintenance of infrastructure, 24-hour on call services, fault clearing services and
installation of information channels for cable television operators, hotel chains and public
transport groups
We believe that partner network relationships also give us an advantage to acquire and integrate partner
networks should the opportunity arise.
Since the first quarter of 2005, Cablecom no longer actively markets its carrier services as part of business
activities. While we continue to provide these services to existing customers, the revenue generated from
these services will decline over time as the carrier services contracts expire.
7

Sales and Marketing
We use a combination of direct and indirect sales channels, direct marketing and brand advertising to attract
new customers and to cross- and up-sell our digital products. We also support sales and marketing with
innovative tariffs.
Our sales and marketing organization is currently divided into four customer-oriented groups:
• Analog cable television sales are managed through a key-account organization. Analog cable
television connections and Service Plus contracts are sold through local account managers,
mainly targeted at larger housing associations, private landlords and construction companies.
• Digital product sales are based on a centrally managed channel strategy, which includes reactive
sales channels, such as web and inbound telesales, and proactive sales channels, such as retail,
door-to-door sales and outbound telesales. With some of our retailers, we have established ‘‘shop
in shop’ display units to promote our brand. We estimate we generated approximately 60% of our
digital product sales through reactive sales channels and the remainder through proactive sales
channels.
• Our Business Solutions sales team markets our products to large and SME accounts. Sales
activities for large accounts are based on requests for proposal and referrals. We target SMEs
through our key account management and outbound telesales. While we plan for our own sales
force to continue focusing on large accounts and SMEs, we have expanded our indirect sales
channels to target the SME market by working more closely with solutions integrators, industrybased
partners and resellers.
• Wholesale sales and marketing activities, as well as sales activities to partner networks, are based
on relationship management with designated account managers and direct marketing events.
Customer care
We channel all billing and product inquiries through three call centers, which support all consumer products.
The largest call center in Zurich is responsible for all German language calls and all escalated issues. The
two call centers in Yverdon and Manno cover French and Italian language inquiries, respectively, but
transfer all escalated matters to Zurich where a multi‑lingual team is available.
Our call centers cover the technical help desk, administration and billing and all related customer care
support. We continue to focus on ways to improve performance in terms of call and answer times while
leveraging our capability across product offerings. The call centers also take incoming calls for new digital
product sales.
Billing
We collect over 80% of our analog cable television subscriptions on an annual basis in advance. Subscribers
receive their annual bill late in the fourth quarter of each calendar year and generally pay their annual bill
over the following two months. We receive an additional 7% of our analog cable television subscriptions on
a semi-annual basis in advance and the remaining subscriptions on a quarterly basis in advance. Upon
billing, we defer the revenue and each month we recognize a pro rata portion of our annual cable television
subscription fees as revenue. Furthermore, for approximately 70% of the analog cable television subscribers
to our cable network, we maintain billing relationships with landlords, as opposed to end users. For
providing the billing and collection services, we pay these landlords a commission of between 3% and 5%
8

of the revenue we generate from their tenants. For all remaining cable television subscriptions and other
products, we maintain a direct billing relationship with the end customer.
We have several billing systems tailored to the needs of different customer requirements. For cable
television and digital television, we use “Open Service.” For the more detailed billing requirements of
hispeed and digital phone we use an integrated Keenan-Arbor billing system. We also have developed an
electronic payment and collections process to drive accuracy and productivity. Business Solutions and
Partner Group leverage our Ergon/Taifun and SAP systems for billing to and collection from our customers.
Our Network
Consumer network
We have a state-of-the-art, fully redundant backbone network which can provide analog and digital
television, broadband Internet and fixed-line telephone services. Apart from Swisscom, we are the only
company with a nationwide footprint and a local loop infrastructure throughout Switzerland.
Our network consists of the following interconnected segments: fiber optic (backbone), HFC network and
DPoPs serving a copper local loop, direct fiber connections, and leased lines as well as in-building wiring.
Our network upgrade program comprises installing new backbone connections, installing new HFC nodes
and connecting them to the backbone, installing a return path in the HFC amplifiers and replacing the inbuilding
wiring or installing filters. Moreover, as HFC networks in each area are upgraded, we upgrade inbuilding
wiring at the request of subscribers wishing to subscribe to new services, including digital cable
television, broadband Internet and fixed-line telephone services.
HFC network
As of December 31, 2005, 70% of our network is upgraded to 606 MHz or more. We plan to focus our
efforts on marketing to our existing upgraded homes, with limited investment planned for expansion of the
upgraded homes base.
In-building wiring
As in most European and U.S. cable markets, once our network is upgraded, in-building installation capital
expenditure is required to extend the capacity and bi-directionality of the HFC network to the end user’s
premises, thereby enabling broadband Internet access and telephony. Depending on the quality of the
existing in-building wiring, this requires the installation of coaxial cabling, electronics and wall plates.
Historically, an in-building wiring upgrade was performed as a full rewiring of the home. We developed a
procedure to perform the in-building wiring upgrade via a simplified procedure, whereby an amplifier is
changed and a filter is removed to allow for bi-directionality. This simplified procedure is used if the
existing in-building wiring is of sufficient quality. As of December 31, 2005, approximately 0.8 million
homes have been upgraded for in-building wiring.
Telephony network
We deploy a hybrid telephony solution using our HFC network and IP backbone to reach an IP gateway
which is connected to a Time-Division Multiplexing (TDM) switch. We intend to convert our hybrid
telephony solution to a full VoIP solution with the introduction of a soft switch. We expect the introduction
of the soft switch to reduce licensing related customer acquisition and maintenance costs.
9

Business services network
We have over 6,900 kilometers of fiber cable laid in Switzerland, passing 50% of all Swiss business
premises. We are able to provide up to 8,000 mbps of Internet connectivity, including first class transit and
peering arrangements. We access this network capacity when a corporate or wholesale customer wishes to
have bandwidth intensive services such as IP/VPN, leased lines and Internet feed. The average distance
from our backbone fibers to the majority of enterprise customers is 300 meters. We have a number of
available access options:
• building (direct fiber access) local loop;
• leased lines;
• copper local loop (SDSL); and
• utilizing existing HFC network where applicable.
In cases where the existing HFC network does not pass the business premises or the potential contract does
not warrant direct fiber access construction, we use either leased lines or the copper local loop from the
incumbent, Swisscom. Through our existing fiber and alternative access methodologies, we pass over 90%
of business in Switzerland.
Material Contracts
Set forth below is a summary of certain material agreements to which we are a party.
Interconnection agreements
We have entered into interconnection agreements with an indefinite term with Swisscom as well as with
other telecommunications services providers in Switzerland such as Calltrade Carrier Services AG and T-
Systems Schweiz AG.
Content agreements
We are party to several contracts with content providers. For distribution of digital channels, different
models apply, including revenue sharing models, or the remuneration based upon numbers of subscribers.
For analog channels, we are permitted to distribute and redistribute those radio and television programs
which are also broadcast by wireless terrestrial signals or satellite in unencrypted form, without having to
enter into a contractual relationship.
Infrastructure/network agreements
Although we own the vast majority of our network, we entered into several agreements in connection with
the extension and upgrade of our network, including fiber lease agreements, use and joint use agreements of
cable channels, use of dark fiber link agreements, as well as others. Such agreements have been established
mainly with other network owners in Switzerland including SBB, BLS, AEW Energie AG, Colt Telecom
AG and TDC. Most of these agreements have a duration of 20 years or longer.
Furthermore, Cablecom has entered into agreements with various suppliers for receipt of hardware and
software in order to upgrade and modify our cable network constantly.
10

Supply and installation agreements
We purchase equipment components necessary to operate its business from a range of suppliers. Key supply
and installation contracts relate to critical elements of its network equipment, including the telephony
platform, data and voice modems and set-top-boxes. Cablecom uses a limited number of suppliers for such
components and is in the process of evaluating alternative sources.
Service and maintenance agreements
We entered into various agreements in regards to the maintenance of its network and infrastructure. Most of
the maintenance agreements have a term of one year and are being renewed year by year.
Operating Lease and Rental Agreements
We have entered into commercial leases on certain motor vehicles. These leases have an average life
between 3 and 4 years with no explicit renewal terms or restrictions included in the contracts.
We have rented several buildings with a remaining contract life between 3 months and 16 years including
the headquarters in Zurich.
Partner agreements
We have agreements with more than 255 other cable network operators or telecommunications services
providers in Switzerland. These agreements include television signal feed agreements, operating agreements
in order to sell our products (hispeed Internet, digital phone and digital television) to households located
within our partner networks, fiber lease agreements, joint-use agreements and maintenance agreements.
Competition
The industry in which we operate is highly competitive. We face competition from a number of established
and new competitors in Switzerland. It is likely that we will continue to face significant competition in some
or all of our target markets in the future. As existing technology develops and new technologies emerge, we
believe that competition will intensify in each of our business areas. See “Risk Factors—Risks Related to
Our Business—The Swiss Internet, data and telephony industries are highly competitive, and the television
industry may become more competitive in the future, which could result in lower prices and the loss of
subscribers. If we are unable to compete successfully, our financial condition and results of operations could
be adversely affected.”
Cable television
We are the largest operator in the Swiss cable market, providing cable television services to approximately
1.5 million subscribers through our own network and cable television signal to approximately 0.5 million
subscribers through partner networks as of December 31, 2005. We estimate that the next largest operator,
Télégenève, had approximately 87,000 subscribers as of December 31, 2005; Télégenève operates in
Geneva, where we do not provide coverage. The remainder of the Swiss cable television market is highly
fragmented among approximately 450 cable operators.
There is limited terrestrial television in Switzerland. Furthermore, Direct-To-Home (DTH) satellite services
in Switzerland remain low due to the historically high cable television penetration, topography and
restrictive zoning regulations which prohibit satellite dishes from being used in some areas of Switzerland.
11

Our cable television service does not currently compete with other television and video services on a
significant scale, due in part to the historically high penetration rate of cable in Switzerland. In 1999, we
launched our digital television offering to maintain our leadership position in television distribution. We
plan to continue the opportunistic rollout of the digital television product as an add on to analog television,
with increasing penetration and ARPU driven by simulcasting analog channels, enhanced content, PVR,
pay-per-view and video-on-demand. This strategy has proved successful to date and we believe it will
continue to provide a further source of growth.
Swisscom has announced its intention to introduce a streaming video on demand product over its
established telephone network later in 2006. Until its streaming video on demand product is ready for
commercial application, Swisscom has begun offering a digital recorder service which allows users who
receive analog cable television to record broadcasted programs. In addition, Swisscom has also announced
the launch of a broadcasting service (IPTV) via VDSL (very high bit-rate digital subscriber line) technology
with an expected 100 to 200 digital channels. The deployment and commercialization of VDSL or digital
video broadcasting as methods for delivering television services will increase the level of competition we
face today from satellite, and as a result could lead to a decline in our sales and an increase in our costs.
SRG, the Swiss radio and television broadcaster, has started to roll out DTT in Ticino in 2003. SRG expects
full national coverage by 2008. Currently only SRG programs are broadcasted through DTT.
Broadband Internet
The market for residential broadband Internet access services in Switzerland is highly competitive in terms
of pricing, product and service quality, promotions, advertising and new product development and
introduction time.
As fully unbundled, shared or bitstream access to Swisscom’s network has not yet been implemented in
Switzerland, alternative DSL services providers are currently reliant on Swisscom’s wholesale offering or
are required to construct their own access network to provide Internet access services. The main Swiss
Internet service providers other than Swisscom’s ISP Bluewin and Cablecom are Sunrise (also known as
TDC Switzerland) and Tele2 Switzerland. Since Swisscom will become subject to an obligation to offer full
access and bitstream access as of 2007, the competitive environment might change. See” —Regulations”.
Telephony
Switzerland’s fixed-line telephony market opened to competition at the beginning of 1998. Since
liberalization, fixed telecommunications operators, such as Sunrise and Tele2, entered the Swiss market as
resellers and successfully began to erode Swisscom’s market share through aggressive pricing supported by
intensive marketing campaigns focused on carrier pre-select services.
Our strategy relies in part on the continued growth of our digital telephone service. The Swiss telephony
market continues to be dominated by Swisscom, which benefits from a highly reliable product and a deeply
entrenched customer base. Our competitors have expanded their bundled carrier pre-select based voice and
broadband offerings. In addition, the market trend towards substituting fixed-line telephony with mobile
telephony has been and may continue to be substantial. Even though we continue to see our digital
telephone service erode Swisscom’s leadership in the market, we may be confronted with increased
competition challenges that could make our growth strategy unsuccessful.
In the Swiss mobile telephony market there are currently four principal service providers. Each of
Swisscom Mobile, Orange and Sunrise operates its own network, whereas Tele2 provides its services on a
12

eselling basis and limited to the Zurich area. Recently, Switzerland’s largest retailers Migros, Coop and
Mobilezone began providing mobile services on a reseller basis.
Business services
Competition in the provision of Internet, data and voice products to business customers is intense, with
Swisscom, which dominates the market, and major international companies with established market
presence, such as Sunrise, COLT and MCI, being our primary competitors. Given their significant financial
and other resources, such large scale competitors may be able to launch products with superior capabilities
or at lower prices, to integrate systems and products more effectively than we do, to secure long term
agreements with some of our customers. In addition, they may be better able to fund investment in product
development. Although we believe we are well positioned to compete in this market due to our nationwide
backbone, local loop footprint and integrated network infrastructure, we may experience unanticipated
difficulties in establishing and maintaining a nationwide market presence in light of the substantial
competition we face.
Intellectual Property
We do not possess any material patents or copyrights, nor do we believe that patents play a material role in
our business. We have registered several trademarks with the Swiss Federal Institute of Intellectual Property
(Eidgenössisches Institut für Geistiges Eigentum) including our brand name, logo and service offerings.
Employees
The following chart details the number of full time equivalent employees that were on our payroll
(excluding temporary employees) as of the dates indicated:
As of December 31,
2005 2004
Total FTEs................................................................................. 1,623 1,573
We believe that Switzerland remains one of the most flexible labor markets in Europe. We provide our
employees with health and life insurance benefits, as well as a pension plan. For a description of our pension
plans, see “Management and Governance—Pension Plans.” In addition, to state requirements, we offer
income to cover extended sickness and life insurance and sometimes even private medical care. We believe
that our relationships with our employees are good.
Properties
We conduct our business at owned as well as at leased real estates. Our major owned properties are located
in Basel, Bern, Zurich, Neuchâtel, Biel, Chur, Thun and in the Italian speaking part of Switzerland. In
addition, we own various technical locations, including head ends, storage space, point of presence and
antenna sites. Furthermore, we have entered into approximately 280 lease agreements in various regions of
Switzerland. These agreements include the lease of offices, archives, storage space and parking spaces. Our
main leased properties are located in Zurich, Yverdon and Manno. In addition, we have entered into various
infrastructure and network lease agreements with other network owners in Switzerland (such as SBB, BLS,
AEW Energie AG, Colt Telecom AG, TDC), such as fiber lease agreements, duct lease agreements and
other agreements related to our cable network.
13

Environmental Matters
We believe that we are in compliance with the laws and regulations relating to land use and environmental
protection that are applicable to us. We are not aware of any claims being made or potential liabilities
arising in connection with such laws and regulations.
Regulations
The federal government regulates the provision of broadcast and telephony services, as well as the
distribution over cable networks of radio and television channels.
The current regulatory framework governing telecommunications services in Switzerland was established
on January 1, 1998 with the Telecommunications Act and a concurrent restatement of the Radio and
Television Act (RTVG). The new regulatory regime opened both the telecommunications and cable
television markets to enhanced competition.
Radio and Television Act
The Radio and Television Act regulates the operation, distribution and redistribution, and receipt of radio
and television programs. A distinction is made between the provision of content (“programs” in the
terminology of the Act) and the distribution and redistribution of content. A distributor who creates a
program and aims to broadcast such program requires a programming license. The Federal Council has the
discretion to issue such a license. We hold redistribution licenses for all areas in which we operate. We also
hold two programming licenses under which we provide the Info Channel and the C-More film channel.
According to Swiss law, the transfer of 20% or more of shares of the holder of a license is regarded as an
economic transfer of the license requiring regulatory approval. While the necessary approvals for the
transfer of the redistribution (as well as the telecommunications) licenses have been obtained, the approval
of the transfer of the programming licenses is still pending. There can be no assurance that such approval
will be granted. But we do not anticipate that failure to obtain such approval would have a material adverse
effect. Based on the blanket redistribution license the licensee, in principle, may freely choose the programs
that it redistributes. However, the must-carry rules of the Act require any licensee to redistribute unencoded
television and radio programs that are broadcast by wireless terrestrial signals in the territory in which it
operates, as well as the channels of the Swiss Broadcasting Corporation.
Under the must-carry regulations currently in force, Cablecom is required to carry without charge certain
radio and television channels on the cable system which we would not necessarily carry voluntarily or at
least not without receiving any compensation. Furthermore, the Office for Communications (OfCom) may
oblige us to distribute additional channels of any broadcaster which so requests, provided we have sufficient
capacity or if the broadcaster’s program contributes to the achievement of the objectives of the RTVG (e.g.,
the free formation of public opinion). The authorities are allowed to set the “appropriate remuneration” to
cover the costs we incur as a result of carrying these channels. The compensation received for providing
such channels may not cover actual costs or provide the return that we would otherwise receive if they were
allowed to freely choose the programming offered on their system. Increasing the number of channels that
we must carry on our network may use valuable network capacity that could otherwise be used to deliver
alternative channels or services which may be more profitable.
The RTVG furthermore states that a licensee may neither compel customers to receive nor refuse customers
the right to receive its broadcasting services. Landlords of properties must grant access if a lessee so
requests and it is willing to cover any related costs.
14

The RTVG has undergone a comprehensive restatement in order to keep up with technological and market
developments (i.e., digitalization and convergence). The restated Act is expected to enter into force in the
first quarter of 2007. It will include the following changes affecting our business:
• The programming license system will be replaced by a notification system which will mean that
we were no longer be required to hold a programming license and the redistribution licenses will
be regulated under the Telecommunications law and also be replaced by a notification system
• The terms of carriage of other than must carry programs can be commercially negotiated subject
to non discrimination
• The rules obliging us to carry certain programs will be expanded, but at the same time the
maximum number of such channels will be fixed
• Broadcasters will have to use the digital platform of the distributor as long as such platform
allows the provision of state of the art services, indicating that broadcasters in principle cannot
request unbundled access to a digital platform; however, the authorities may impose technical
standards to ensure interoperability or if necessary to maintain freedom of information
Telecommunications Act
The Telecommunications Act sets forth the general framework for the transmission of voice and data
information through telecommunications devices for third parties. According to the Telecommunications
Act, any operator that provides telecommunications services and independently operates a significant
portion of a network must obtain a license. Special rules apply to the use of the radio frequency spectrum
and the provision of universal service. Fixed-line carriers and cable television operators have a legal right to
lay cables on public property in order to build their networks. Under the Telecommunications Act, the
Swiss telephony market is regulated by two principal regulatory bodies: The Commission for
Communication (ComCom), and the Office for Communication (OfCom, also known as BAKOM).
ComCom is an independent regulatory agency that is vested with decision-making authority in the
telecommunications sector. OfCom is responsible for day-to-day oversight of the telecommunications
sector.
A revised Telecommunications Act has been adopted by Swiss parliament in March 2006, aiming to
strengthen competition in the telecommunications market, in particular by introducing the unbundling of the
local loop by a formal act and to increase transparency for customers. The new Act is expected to enter into
force in the first quarter of 2007. As both chambers of parliament have refused to implement technology
neutral unbundling, local loop obligations only apply to Swisscom.
Swisscom, as the incumbent operator, will be subject to unbundling obligations, i.e. full line access as well
as bitstream access on a transparent, non-discriminatory and cost-based basis. The obligation to offer
bitstream access will be limited to a period of four years.
In addition all operators will become obliged to take action against spamming. The licensing system will be
replaced by a notification system. Universal services would be imposed and all operators would be obliged
to contribute to the costs for the provision of universal services if the licensee were not able to provide such
services in a cost efficient manner.
15

Licenses
We hold redistribution licenses for all areas in which we operate, a programming license to provide our
Info-Channel and the C-more Film channel and a license to provide telecommunications services in
Switzerland.
Legal Proceedings
We are involved in a number of legal proceedings that have arisen in the ordinary course of our business.
Other than as described below, we do not expect the outcome of such proceedings to have a material
adverse effect on our operations, financial condition or cash flows. However, there can be no assurance that
such claims will not, either individually or in the aggregate, have such effect.
Teleclub litigation
We are involved in a number of proceedings with Teleclub AG (Teleclub), which has exclusive rights to a
significant portion of the premium and sports content distributed in Switzerland. Swisscom AG (Swisscom),
the incumbent telecommunications operator, holds an indirect controlling interest in Teleclub. In
proceedings before the Competition Commission initiated by Teleclub, based on a preliminary fact finding
and legal assessment process, we were determined to be dominant in the market for distribution of television
signals via cable television networks in the areas in which we operate. Interim measures were granted in
September 2002 ordering us, among other things, to transmit the digital television signals of Teleclub and
allow the installation of Teleclub’s proprietary set-top boxes on our network. In September 2003, the Swiss
Federal Court, while assuming that we hold a dominant position, reversed the Competition Commission’s
decision on the interim measures related to installing set-top boxes of Teleclub’s choosing on the basis that
our objection to doing so may be justified by legitimate business reasons. The Competition Commission is
continuing its investigation of whether our application of our digital standards or digital platform to the
distribution of Teleclub’s digital television signals may constitute an abuse of a dominant position. Given
the finding of dominance, which the Competition Commission confirmed on October 2004 in a legal
opinion prepared for the Swiss Price Regulator, if we are found to have abused its dominant position,
Teleclub may be granted the relief requested, we may be found to have violated the Federal Act on Cartels
and other restrictions of Competition (the Cartels Act), and we may be subject to administrative fines and
additional civil litigation.
In October 2002, the Competition Commission also investigated whether the encryption of the digital
channels offered by us as part of our basic digital package constitutes an abuse of a dominant position as
such encryption would prevent reception of these channels through any alternative set-top box. Until a final
determination has been made in the pending proceedings between Teleclub and us, the Competition
Commission has suspended its investigation. Should this proceeding be resumed and have an adverse
outcome, we may be subject to fines and sanctions under the Cartels Act and may be required to make our
digital service available through alternate set-top boxes. For the same reason described above, the
Competition Commission has not acted on the request of the Swiss Price Regulator to intervene against us
to cease encrypting the digital signal and allow use of third-party set-top boxes on our network and to
prohibit bundling of set-top box rental and content subscription.
An unfavorable outcome from the Teleclub legal proceedings could result in an adverse effect on our
business. We expect that these proceedings may continue for several years until a non-appealable decision
has been made. We cannot currently predict the outcome of these proceedings.
16

Indemnity claim dispute
In 2000, we acquired a company which was subsequently merged into its existing operating companies. As
a result of these mergers, the respective tax authorities ruled that the capital gain realized by the former
shareholders will be taxed, assuming an indirect liquidation. We and the former shareholders have appealed
against this decision. Based on the current practice of the Supreme Court, it is probable that the amount of
CHF 2.8 million, included in current liabilities in the consolidated balance sheets, will become due.
17

RISK FACTORS
In addition to the other information contained in this Annual Report, you should consider the following risk
factors in evaluating our results of operations, financial conditions, business and operations.
The risk factors described in this section have been separated into four groups:
• risks that relate to the technology used in our business and the competition we face;
• risks that relate to the legislation and regulation of the market where we operate;
• risks that relate to legal proceedings;
• risks that relate to our financial matters; and
• risks that relate to our principal shareholder.
Risk Factors Relating to Technology and Competition
The Swiss Internet, data and telephony industries are highly competitive, and the television industry
may become more competitive in the future, which could result in lower prices and the loss of
subscribers. If we are unable to compete successfully, our financial condition and results of operations
could be adversely affected.
We face significant competition from established and new competitors in each of our businesses. As
existing technology develops and new technologies emerge, we believe that competition will intensify in
each of our business areas, particularly cable television, Internet, telephony and Business Solutions services.
Some of our competitors have substantially greater financial and technical resources than we do. In
particular, Swisscom, our principal competitor in the Internet, telephony and Business Markets segments,
has substantially superior financial and marketing resources compared to ours. Swisscom is experimenting
with television over DSL and may therefore become a potential competitor of our cable television business
in the future. We may be required to increase content costs for cable television. We may be required to
reduce prices if our competitors reduce prices, or as a result of any other downward pressure on prices for
telecommunications services, which could result in a decrease of our average revenue per user, as well as a
loss of subscribers.
Cable Television. Our cable television service currently does not face significant competition with other
television and video services on a significant scale, due in part to the high penetration rate of cable in
Switzerland. Such favorable competitive outlook may change. For example, Swisscom has announced the
launch of a television service via DSL offering an expected 100 to 200 digital channels. The launch has been
announced for 2006. Swisscom intends to invest heavily in its network in order to be able to offer its DSL
broadcasting product throughout Switzerland. We may also face increased competition from other
providers of DSL, multi-channel satellite, digital terrestrial and other means of delivering multiple
programming. Although none of these options has been deployed on a commercial scale in Switzerland to
date, Swisscom is running trials and many of these technologies have been effectively deployed elsewhere
in Europe and may allow better-capitalized competitors to enter the market and offer a greater variety of
channel packages and programming than we currently provide on our network on more competitive terms.
Furthermore, future legislation or regulation or a change in interpretation of existing legislation or regulation
may require us to provide competitors access to our network for purposes of providing broadcasting services
at regulated prices, which would strengthen our competitors by granting them access and lowering their
costs to enter into the cable television business. See also “—Risks Related to Regulatory and Legislative
18

Matters—We may become subject to more extensive regulation if we are deemed to possess a dominant
position in any of the markets in which we operate.”
Internet. The market for residential broadband Internet access services in Switzerland is highly competitive
in terms of pricing, product and service quality, promotions, advertising and new product development and
introduction time. Our competitors may be able to gain further market recognition by offering products at
lower prices, or may be better positioned to develop superior product features, technological innovations or
capacity management. We may lose business if we do not match the prices, technologies or quality offered
by our competitors. We may need to further upgrade our network to match the speed and quality of our
competitors. In addition, new technologies, including access technologies like Wi-Fi and WiMAX, could
significantly alter the competitive landscape and necessitate additional investment in our network or similar
access technologies to remain competitive.
Telephony. Our strategy relies in part on the growth of our digital telephone service. The Swiss telephony
market is currently dominated by Swisscom, which benefits from a highly reliable product and a deeply
entrenched customer base. Our other competitors are a variety of carrier pre-select and mobile operators.
While we believe that the regulatory environment is favorable to us, we expect competition in the market to
intensify as we further scale up our digital telephone service. For example, our competitors are likely to
expand their bundled voice and broadband offerings. In addition, the market trend towards substituting
fixed-line telephony with mobile telephony has been and may continue to be substantial. Even though we
believe that our digital telephone service offering is potentially capable of eroding Swisscom’s leadership in
the market, we may be confronted with increased competitive challenges that could make our growth
strategy unsuccessful. It is also likely that new competitors, such as pure VoIP players, will continue their
efforts to increase their market share in the future.
Business services. Competition in providing Internet, data and voice products to business customers is
intense. Our competitors may be able to launch products with superior capabilities or at lower prices, to
integrate systems and products more effectively than we do, and to secure long term agreements with some
of our customers. In addition, they may be better able to fund investment in product development. Although
we believe we are well positioned to compete in this market due to our nationwide backbone, local loop
footprint and integrated network infrastructure, we may experience unanticipated difficulties in establishing
and maintaining a nationwide market presence in light of the substantial competition we face.
Any increase in competition in our markets, or any activities by our competitors, including those mentioned
above and others, could lead to a decline in our sales and/or increase in our costs, which could have an
adverse effect on our business, financial condition, results of operations and cash flows.
We do not have complete control over the prices that we charge or the programming that we provide,
which exposes us to third-party risks and may adversely affect our business and results of operations.
As long as we are deemed to be in a dominant position in what the Swiss authorities have identified as the
market for access to cable television, the Swiss Price Regulator has assumed the right to review the prices
that we charge and to determine whether our subscription rates for providing cable television are excessively
high. In November 2004, we agreed with the Swiss Price Regulator to maintain the maximum analog
monthly subscription fee of CHF 19.50 in 2005 excluding regulatory and copyright fees. The agreement
allowed us to increase the analog monthly subscription fee to CHF 21.00 in 2006. This arrangement also
defines a basic service to be offered for the regulated price mentioned before, including a number of
programs to be broadcasted. Because of this price regulation, we are not permitted to set our rates freely in
line with the cost of inflation and general price increases and are maybe exposed to a price reduction in case
the current prices are deemed abusive when a new agreement is negotiated for the period as of 2007. There
19

may be the risk that our revenues may decline, and our business operations could experience a significant
decline in profitability.
Under current regulations, we are required to carry certain radio and television channels on our cable system
that we would not necessarily carry voluntarily. With respect to television services, these “must-carry”
obligations currently apply to three television channels that we deliver to end users in the German speaking
part of Switzerland and two television channels each in the Italian and French speaking parts of Switzerland.
In addition, the authorities may, under certain conditions, compel us to carry additional channels. The
authorities have the right to set the “appropriate remuneration” to cover the costs we incur as a result of
carrying these channels. The remuneration that we receive may not cover our actual costs of broadcasting
such channels, or provide the return that we would otherwise receive if we were allowed to freely choose the
programming we offer. Due to the must-carry regulations, it is possible that we may be required to carry
additional channels in the future. Increasing the number of channels that we must carry on our network
would use valuable network capacity that we could otherwise use to deliver alternative channels or services
that may be more profitable.
We do not have full access to content due to exclusive agreements by other parties which may adversely
affect our business and results of operations.
In the light of increasing competition between infrastructures, access to attractive content might become a
key issue for operators to compete successfully for customers in the future. In particular, the supply of payper-view
programs can add value and enhance an existing offer. Furthermore, such offers increase the
willingness of customers to purchase programming services.
In September 2004, our biggest competitor, Swisscom, has acquired 49% of the shares of CT Cinetrade AG
(Cinetrade) with the option to buy the remaining 51% of the shares later. The Cinetrade group arranges and
distributes Pay TV (Teleclub AG), is present in the cinema market in various Swiss cities (KITAG Kino-
Theater AG) and also holds exclusive rights for a substantive part of premium content for Pay TV in
Switzerland (PlazaVista Entertainment AG).
After having approved the acquisition of the 49% stake in Cinetrade by Swisscom, the Swiss Competition
Commission is currently investigating the anti-competitive effects of exclusivity contracts for premium
content. An appeal against the Competitor Commission’s approval of the acquisition is pending before the
Federal Court. If we are unable to acquire attractive content at affordable prices, our results of operations
could be adversely affected as competition increases.
The functionality of our encryption system could be compromised by illegal piracy, leading to a
material adverse effect on our business.
We use a conditional access system to transmit encrypted pay television programs that form part of our
digital offerings. Billing and revenue generation for these services rely on the proper functioning of the
conditional access system. Although we believe we have a secure conditional access system, the
functionality of this system could be compromised by illegal piracy. Such illegal piracy could have a
material adverse effect on our results of operations and business.
If we fail to successfully market broadband Internet and telephony services, our business and revenues
may be adversely affected.
A significant component of our strategy is to successfully market broadband Internet and digital telephone
services to our existing residential customers. We believe that our offering of digital television, broadband
Internet access and fixed-line and mobile telephony will prove attractive to our existing customer base and
20

allow us to increase our average revenue per user, or ARPU. However, broadband Internet and telephony
usage by residential customers still remains an underdeveloped market. As of December 31, 2005, out of
approximately 1.5 million homes currently able to receive broadband Internet and approximately 1.4 million
homes currently able to receive digital phone services from us over both our network and our partner
networks, we had approximately 340,500 customers receiving broadband Internet and approximately
186,200 customers receiving telephony services. In addition, we face significant competition in these
markets. In general, if our competitors offer a better product to our customers, our ARPU and churn rate
could suffer. If we are unable to charge the prices for broadband Internet and digital telephone services that
we anticipate or if our competition delivers better services to our customers, our results of operations may be
adversely affected.
If we fail to successfully introduce new services or respond to technological developments, our business
and revenues may be adversely affected.
The industry in which we operate is subject to rapid and significant changes in technology and is
characterized by the introduction of new products and services. The effect of such new technologies or
services on our businesses or operations cannot be predicted. Our core offerings may become outdated due
to technological breakthroughs rendering our products obsolete. If any new or enhanced technologies,
products or services that we plan to introduce prove premature or otherwise fail to achieve market
acceptance or experience technical difficulties, our revenue growth, margins and cash flows may be
adversely affected. Scalability, network compatibility or other technical problems may arise that could
interfere with or delay our development of telephony services. We may not recover investments that we
have made or will make in order to deploy new technologies and services, or realize anticipated returns on
such services and products. In addition, our competitors’ products may be more appealing to customers. See
“—Risks Related to Our Business—The Swiss Internet, data and telephony industries are highly
competitive, and the television industry may become more competitive in the future, which could result in
lower prices and the loss of subscribers. If we are unable to compete successfully, our financial condition
and results of operations could be adversely affected.”
Furthermore, the cost of implementation for emerging and future technologies could be significant, and the
ability to fund such implementation may depend on the ability to obtain additional financing. There can be
no certainty that we would be successful in obtaining any additional financing required, or if we obtain
financing, that the terms of such financing will be favorable to us. We may not be able to fund the capital
expenditures necessary to keep pace with technological developments. Our inability to obtain the funding or
other resources necessary to expand or further upgrade our systems and provide advanced services in a
timely manner, or successfully anticipate the demands of the marketplace, could adversely affect our ability
to attract and retain customers and generate revenue.
We may pursue acquisitions that, if consummated, could decrease the availability of cash to repay our
indebtedness and may adversely affect our business if we cannot effectively integrate these new
operations.
We regularly engage in discussions regarding potential acquisitions of businesses that we believe will
present opportunities to realize synergies and strengthen our market position. Any acquisition we may
undertake in the future could result in the incurrence of debt and contingent liabilities and an increase in
interest expense and amortization expense related to intangible assets or in the use by us of available cash on
hand to finance any such acquisitions. If we experience any difficulties in integrating acquired operations
into our business, we may incur higher than expected costs and not realize all the benefits of these
acquisitions. In addition, our management may be distracted by such acquisitions and the integration of the
acquired businesses. In addition, any additional indebtedness incurred to fund acquisitions or the use of
21

available cash on hand to finance acquisitions would reduce the amount of our cash flow available to make
payments on the Senior Notes or the Bank Facility.
The lack of direct billing relationships with our analog cable television customers and the dependence
on landlords and housing associations for, among other things, the collection of payments for our
services may have an adverse effect on our business strategy and our results of operations.
As of December 31, 2005, we did not maintain direct billing relationships with, and did not control access
to, over 70% of our analog cable television subscribers. In each case, we maintain billing relationships with
the landlords of these homes and local housing associations. The lack of a direct relationship with the end
users causes us to be dependent on the bill payers for access to our customer base. For example, should a
landlord decide to terminate the relationship with us, we would have to enter into new direct contracts with
our customers. This may prove difficult and may increase our levels of bad debt, billing and payment and
collections expenses and may have an adverse effect on our business strategy and our results of operations.
A change in our cable television billing and collection process may have a material adverse effect on
our working capital dynamics and our results of operations.
In the event the landlords with whom we have billing relationships successfully demand that we invoice and
collect payments for subscription fees on a basis other than annually, semi-annually or quarterly in advance,
as is the case today, this could have a one-time negative effect on our cash flow, and materially adversely
affect our working capital dynamics.
Our operating performance will depend, in part, on our ability to control customer churn and
operating costs.
Customer churn is a measure of customers who stop subscribing to our services and is a key element of our
operational performance. Our customer churn may increase if we are unable to deliver our services over our
network without interruption, if new or better quality services are being offered in the market by our
competitors or if we fail to deliver a satisfactory level of customer service.
We may decide to migrate our customers from analog to digital service. The migration process could also
increase churn levels, which would adversely impact our results of operations. We rely on technology to
deliver our services, and may need to invest in our network to maintain or increase required service levels.
In order to counter a potential or incurred increase in customer churn, higher marketing, call center or other
costs might be required. Increased customer churn or operating cost would negatively affect our
profitability.
Any significant disruption in our supply of equipment and services from key vendors may adversely
affect our business and profitability.
We have important relationships with certain suppliers of equipment and services that are critical to
conducting our business. Should any of our suppliers cease to operate, discontinue their products or seek to
charge us prices that are not competitive, we may have to find alternate suppliers. Even though in most
cases our suppliers can be replaced, switching to alternative suppliers could cause us to experience
difficulties or delays in providing our services, or to incur significant costs, either of which could harm our
financial condition and results of operations. Although we permanently evaluate ways to reduce our reliance
on any particular supplier, we cannot assure you that significant disruptions or difficulties we may encounter
with suppliers would not adversely affect our services, reputation and profitability.
22

Our broadcast services business is dependent on various regulations, namely our distribution license,
and content agreements and various other contracts.
As a holder of a distribution license, we are free to distribute and redistribute any radio and television
programs which are broadcast by wireless terrestrial signals without an agreement with the respective
broadcaster. For the provision of any other programs, we enter into contracts with several content providers,
including but not limited to UPC Programming BV, Hurst International Company, MTV Europe, NGC
International (UK) Limited, Fox Kids Italy S.r.l., Canal Plus, Lagardère Networks International and BBC-
Prime. Although historically the content providers have renewed their contracts with us, we cannot assure
you that they will do so upon expiration of the current contracts, that they will not negotiate terms for
provision of transmission services by us on a basis less favorable to us or that they will not seek to obtain
from third parties a portion of the transmission services that we currently provide. We cannot assure you that
content providers or the competent national collecting society respectively will allow us to distribute and
redistribute their signals on a digital platform, based on the existing contracts.
The loss of our distribution license or any one of these contracts could have a material adverse effect on our
financial condition and results of operations.
Failure to maintain and upgrade our network or make other network improvements could have a
material adverse effect on our operations and impair our financial condition.
A significant part of our network has been upgraded to a HFC standard with bi-directional digital
capabilities. Our assumptions regarding the costs associated with maintenance and continued upgrades of
the network may prove to be inaccurate, including if we are unable in the future to effectively reduce the
number of homes served by each node in our network, which would enable us to relieve local network
capacity constraints. If capital expenditure exceeds our projections or our operating cash flow is lower than
expected, we may be required to seek additional financing for future maintenance and upgrades.
A catastrophe at one or more of the locations where our critical cable network systems are housed
could have a material adverse effect on our business.
Our business is dependent on many sophisticated critical systems, which support all of the various aspects of
our cable network operations. The hardware supporting a large number of critical systems for our cable
network is housed in a relatively small number of locations. If one or more of these locations were to be
subject to fire, natural disaster, terrorism, power loss, vandalism or other catastrophe, we would not be able
to pass transmission signals over our cable network. This would cause serious harm to our business. We are
currently developing ways to improve our disaster recovery plan to prevent or mitigate a potential failure.
However, we cannot assure you that any disaster recovery, security and service continuity protection
measures we have, or may take, in the future will be sufficient. In addition, although we build our fiber
network mostly based on redundant rings to ensure the continuity of network availability in the event of any
damage to our underground fibers, it is likely that no transmission signals will be able to pass if any ring is
cut twice.
Failure in our technology or telecommunications systems could significantly disrupt our operations,
which could reduce our customer base and result in lost revenues.
Our success depends, in part, on the continued and uninterrupted performance of our IT systems as well as
our customer service centers. Our computer systems are vulnerable to damage from a variety of sources,
including telecommunications failures, malicious human acts and natural disasters. Moreover, despite
security measures, our servers are potentially vulnerable to physical or electronic break-ins, computer
viruses and similar disruptive problems. Despite the precautions we have taken, unanticipated problems
23

affecting our systems could cause failures in our IT systems, including systems that are critical for timely
and accurate customer billing, or our customer service centers. Sustained or repeated system failures that
interrupt our ability to provide service to our customers or otherwise meet our business obligations in a
timely manner would adversely affect our reputation and result in a loss of customers and revenues.
We do not insure the underground portion of our cable network and various pavement-based
electronics associated with our cable network.
We obtain insurance of the type and in the amounts that we believe are customary for similar companies in
our industry. Consistent with this practice, we do not insure the underground portion of our cable network or
various pavement-based electronics associated with our cable network. Substantially all of our cable
network is constructed underground. As a result, any catastrophe that affects our underground cable network
or our pavement-based electronics could prevent us from providing services to our customers and result in
substantial uninsured losses.
Risk Factors Relating to Regulatory and Legislative Matters
We are subject to significant government regulation, which could require us to make additional
expenditures or limit our revenues.
Our activities as a cable television and telephony operator in Switzerland are subject to extensive regulation
and supervision by various Swiss national authorities, in particular the Communications Commission
(ComCom), the Swiss Federal Office of Communications (OfCom/BAKOM), the Swiss Price Regulator
and the Competition Commission. These regulations may increase our administrative and operational
expenses and limit our revenues. Our Internet and data businesses are not currently subject to extensive
regulation, but could be in the future.
We are subject to, among other things:
• price regulation for certain services that we provide;
• rules governing the interconnection between different telephone networks and which, due to
existing obligations to charge reciprocal rates, indirectly regulate the interconnection rates that we
can charge and that we pay;
• requirements that we carry certain broadcast stations over our network (must-carry);
• rules for license renewals and transfers;
• rules and regulations relating to subscriber privacy; and
• other requirements covering a variety of operational areas such as land use and environmental
protection, equal employment opportunity, technical standards and subscriber service
requirements.
Changes in laws, regulations or governmental policy or the interpretation or application of those laws or
regulations affecting our activities and those of our competitors could greatly influence our viability and
how we operate our business and introduce new products and services. Our business could be materially and
adversely affected by any changes in relevant laws or regulations (or in their interpretation) regarding, for
example, unbundling of the local loop, licensing requirements, access and price regulation, interconnection
arrangements or the imposition of universal service obligations, or any change in policy allowing more
24

favorable conditions for other operators. Our ability to introduce new products and services may also be
affected if we cannot predict how existing or future laws, regulations or policies would apply to such
product or service.
Pending legislation may significantly alter the regulatory regime applicable to us, which could
adversely affect our competitive position and profitability.
In March 2006, Swiss Parliament has introduced significant changes to the regulatory regime applicable to
operators providing telephony, Internet and broadcasting services. See “Business—Regulation.” The
changes to the Radio and Television Act and the Telecommunications Act are expected to enter into force in
the first quarter of 2007. Market dominant telecommunications operator Swisscom will become obliged to
unbundle its local loop. The unbundling obligations will comprise the offer of full line access as well as
bitstream access, the latter only being available to competitors for a limited period of four years.
Furthermore our current telephony licenses will be replaced with general authorizations. Although the
number of conditions with which we must currently comply under our licenses would be reduced, other
aspects of the new law or their future interpretation may adversely affect us.
The revised Radio and Television Act will expand our obligation to carry certain programs, but at the same
time the maximum number of such channels will be fixed in an ordinance which will enter into force in
parallel to the new law. The terms of carriage of other than must carry programs can be commercially
negotiated subject to non discrimination, and the new Act will clarify that broadcasters have to use the
digital platform of the distributor as long as such platform allows the provision of state of the art services,
indicating that broadcasters in principle cannot request unbundled access to a digital platform; however, the
authorities may impose technical standards to ensure interoperability or if necessary to maintain freedom of
information. Should such standards result in us being required to replace or materially alter the existing settop
boxes of our customers, our costs would increase and, as a result, our results of operations could suffer.
Furthermore, as a provider of a digital platform, we may in the future be compelled to allow broadcasters
the use of our digital platform on a non-discriminatory basis.
We may become subject to more extensive regulation if we are deemed to possess a dominant position
in any of the markets in which we operate.
Based on a preliminary fact finding and legal assessment process in an on-going litigation procedure, we
have been considered dominant in the market for the distribution of television signals via cable television
networks in the German-speaking part of Switzerland by the Competition Commission, the Recourse
Commission and the Federal Supreme Court. Any past, present or future anti-competitive conduct on our
part (e.g. unilateral refusal to deal, exclusive dealing, tying, predatory pricing, price squeezing,
discriminatory pricing, imposing other unfair terms or other discriminatory practices) and as it relates to
providing analog cable television services may, therefore, be considered an abuse of a dominant position
under the Federal Act on Cartels. Harmed third parties may claim damages that result from such conduct in
civil lawsuits. Since April 1, 2004, such conduct may also be subject to potentially significant direct
sanctions imposed by the Competition Commission.
Under the revised legislation there are pricing and service restrictions on entities deemed to have a dominant
position in any of the markets in which they operate. There is a risk that we could be found to hold a
dominant position in certain other segments of our business (other than transmission of analog television
signals via cable television network) if the Swiss authorities identify these areas as relevant markets in
which there is not sufficient competition. In the past, the Swiss Competition Commission has taken the
position that broadcasting of television channels over cable networks for the German speaking population in
Switzerland constitutes a distinct relevant market. Given our strong market position in that area, we could be
25

equired to provide access to our network to other service providers who provide competing broadcasting
services at regulated prices. Granting such access would limit the bandwidth available for us to provide
products and services to the customers served by our network. Other restrictions may be imposed on how
we operate our network and market our services. Such regulation could:
• impair our ability to use our network in ways that would generate maximum revenue;
• create a shortage of capacity on our network, which could limit the types and variety of services
we seek to provide our customers;
• strengthen our competitors by granting them access and lowering their costs to enter into our
markets;
• force us to create a separate wholesale division making the management of our operations more
complex; and
• as a result, have a significant adverse impact on our financial performance.
Risk Factors Relating to Litigation Risks
We are currently involved in significant disputes and face various litigation risks that could have a
material adverse effect on our results of operations.
Any legal proceedings may harm our reputation and adversely affect our business, financial condition,
results of operations and cash flows. See “Business—Legal Proceedings” for information about our legal
proceedings.
Risk Factors Relating to Certain Financial Matters
Our substantial leverage and debt service obligations could materially adversely affect our business,
financial condition and results of operations and prevent us from fulfilling our obligations under the
Senior Notes and the Bank Facility.
We have significant debt and debt service requirements and may incur additional debt. As of December 31,
2005, our total debt was CHF 1.772 billion as compared to shareholders’ equity of approximately CHF
350.5 million, and we are therefore considered highly leveraged. In addition, we have a further CHF 150.0
million of undrawn availability under our Existing Revolving Credit Facility, which we may draw in the
future. See “—Capitalization” and “—Description of Certain Financing Arrangements”. Our high level of
debt could have important consequences for you. For example, it could:
• make it more difficult for us to satisfy our debt obligations;
• require us to dedicate a substantial portion of our cash flows from operations to payments on our
debt, thereby reducing the funds available to us to finance our operations, capital expenditures,
working capital, research and development and other general corporate purposes, including
maintaining the quality of our network and product performance;
• place us at a competitive disadvantage compared to other providers of cable television, Internet or
data and telephony services in Switzerland that have less debt than we do;
• limit our flexibility in planning for, or reacting to, changes in our industry;
26

• adversely affect public perception of us and our brand and reduce our flexibility to respond to
general and industry-specific adverse economic conditions; and
• impede our ability to obtain additional debt or equity financing, and increase the cost of any such
borrowing, particularly due to the financial and other restrictive covenants contained in the
agreements governing our debt.
Any of these or other consequences or events could have a material adverse effect on our ability to satisfy
our debt obligations. The terms of our debt agreements restrict, but do not prohibit, us from incurring
additional debt. If we were to incur additional debt, the related risks that we now face will intensify.
We require a significant amount of cash to make payments on our debt obligations and to service our
other debt. Our ability to generate sufficient cash flow depends on a number of factors, many of which
are out of our control.
Our ability to service our debt as well as to fund our ongoing operations will depend on our future operating
performance and ability to generate cash. This depends to some extent on general economic, financial,
competitive, market, legislative, regulatory and other factors, many of which are out of our control, as well
as other factors discussed in these “Risk Factors.”
We cannot assure you that our business will generate sufficient cash flow from operating activities, or that
future debt or equity financing will be available to us in an amount sufficient to enable us to pay our debt
obligations when due, or to fund our liquidity needs. See “—Management’s Discussion and Analysis of
Financial Condition and Results of Operations.”
If our future cash flows from operations and other capital resources are insufficient to pay our obligations as
they mature or to fund liquidity needs, we may be forced to sell assets, attempt to restructure or refinance
our existing indebtedness or seek additional funding in the form of debt or equity capital. We cannot assure
you that we would be able to accomplish any of these alternatives on a timely basis or on satisfactory terms,
if at all. In addition, the terms of the indenture governing the Senior Notes and the agreement of the Bank
Facility will limit our ability to pursue any of these alternatives. If we obtain additional debt financing or
equity capital, the related risks we now face would increase.
We are subject to restrictive debt covenants that could adversely affect our ability to operate our
business and repay the Senior Notes and the Bank Facility.
The terms of the indenture governing the Senior Notes and the agreement of the Bank Facility contain
certain provisions that, among other things, could restrict our ability, and the ability of our subsidiaries, to
do any of the following:
• make certain payments, including dividends or other distributions;
• incur or guarantee additional debt and issue preferred stock;
• make certain investments or acquisitions, including participating in joint ventures;
• prepay or redeem subordinated debt or equity;
• make capital expenditures;
• engage in certain transactions with affiliates and other related parties;
27

• sell assets, consolidate or merge with other companies;
• issue or sell share capital of certain subsidiaries; and
• create liens.
All of these limitations will be subject to exceptions and qualifications that may be important. Our ability to
comply with these provisions may be affected by events beyond our control. In addition, we may not be able
to borrow under the Existing Revolving Credit Facility, which could have a material adverse effect on our
ability to operate our business and to make payments under our debt instruments. The Bank Facility also
requires us to maintain certain ratios of total debt to EBITDA, senior debt to EBITDA, EBITDA to total
cash interest and EBITDA to debt service.
In addition to limiting our flexibility in operating our business, the breach of any covenants or obligations
under the agreements and instruments governing our debt will result in a default under the applicable debt
agreement or instrument and could trigger acceleration of the related debt, which in turn could trigger
defaults under other agreements governing our debt. A default under the agreements governing our other
debt could materially adversely affect our growth, our financial condition and results of operations and
result in our not having sufficient assets to make payments on the Senior Notes, Bank Facility and other
debt. See “—Description of Certain Financing Arrangements.”
As our business is capital intensive, our cash flows from operating activities have been largely applied
to fund capital expenditures and other investing activities during 2005 and 2004. We cannot assure you
that we will have sufficient liquidity to meet our obligations under our existing debt obligations in the
future.
Our business is capital intensive and has always required significant amounts of cash. Operating costs and
capital expenditures have resulted in negative cash flows before financing expenses in the past. The amount
and timing of our future capital requirements may materially differ from our current estimates due to various
factors, many of which are beyond our control. Failure to generate sufficient cash flow could diminish our
ability to sustain operations, meet financial covenants, obtain additional required funds and make required
payments on any indebtedness we have incurred or may incur.
Although we believe that our expected cash flows from operating activities, together with cash equivalents
and available borrowings, will be adequate to meet our anticipated liquidity needs, we cannot assure you
that these sources of cash will be sufficient or that we will be able to raise additional funds for liquidity,
should the need arise. See “Management Discussion and Analysis—Liquidity and Capital Resources”.
We may not report net earnings.
Our net loss amounted to CHF 350.7 million for the year ended December 31, 2005. In light of our
historical financial performance, we cannot assure you that we will report net earnings in the near future or
at all.
We are exposed to interest rate and currency exchange rate risks. Shifts in such rates may have a
material adverse effect on our ability to make payments on the Senior Notes and Bank Facility.
Some of our debt bears interest at variable rates. An increase in the interest rates on our debt will reduce the
funds available to repay the Senior Notes, the Bank Facility and our other debt and to finance our
operations, capital expenditures and future business opportunities. Under the terms of our existing interest
rate hedging arrangements, our effective interest rates may be higher than actual interest rates, resulting in
28

increased costs for us. Furthermore, we are exposed to currency exchange rate risks because we generate
revenues and incur operating and other expenses in CHF, while we pay interest and principal obligations
with respect to a part of our indebtedness in EUR. We cannot assure you that the hedging transactions we
have entered into or that we may enter into will be successful or that shifts in currency exchange rates will
not have a material adverse effect on our business. Any appreciation or depreciation in the CHF relative to
the EUR could have a material adverse effect on our ability to make payments on the Senior Notes or the
Bank Facility. See “—Management’s Discussion and Analysis of Financial Condition and Results of
Operations—Disclosures about Market Risk.”
While almost all of our revenues are denominated in CHF, a portion of our operating expenses and capital
expenditures are denominated in currencies other than CHF. Therefore, we are exposed to the adverse effect
of a weaker CHF against other currencies. Our primary exchange rate exposure was against EUR and USD.
Risk Factors Relating to our Principal Shareholder
The interst s of Liberty Global, our indirect parent company, may conflict the interests of Cablecom.
Liberty Global is an indirect parent of the Issuer indirectly owning 100% of the voting interests in the Issuer.
It operates in substantially the same businesses as Cablecom does. When business opportunities, or risks and
risk allocation, arise, the interest of Liberty Global may be different, or in conflict with, the interst of
Cablecom on a stand-alone basis. Because we are indirectly controlled by Liberty Global, we cannot assure
you that Liberty Global will permit us to pursue business opportunities if it is seeking to capitalize on such
opportunities itself.
29

CAPITALIZATION
The following table sets forth (i) our actual consolidated capitalization as of December 31, 2005, and (ii) our
consolidated capitalization on an adjusted basis, after giving effect to the January 2006 refinancing. The
adjustments to reflect the January 2006 refinancing include:
• the draw down (on January 20, 2006) under the Bank Facility agreement dated December 5,
2005 of CHF 349,769,000 aggregate principal amount under the Term Loan A and CHF
355,760,000 and EUR 229,079,000 aggregate principal amount under the Term Loan B; and
• the early repayment of CHF 259,000,000, EUR 157,900,000 and EUR 335,700,000 of Senior
Secured Notes at 102% of par value.
You should read this table in conjunction with “Selected Consolidated Financial Data,” “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” “Description of Certain
Financing Arrangements” and our consolidated financial statements and the notes thereto included
elsewhere in this Annual Report. The capitalization table presented below does not reflect any purchase
accounting adjustments related to Liberty Global Switzerland’s acquisition of Cablecom on October 24,
2005.
Except as set forth above, there have not been material changes to our capitalization since December 31,
2005.
As of December 31, 2005
Actual As adjusted
(CHF in millions)
Cash and cash equivalents.......................................................................... 124 124
Debt:
Senior Secured Notes (1) ............................................................................. 1,019 —
Facility A Term Loan................................................................................ 269 618
Facility B Term Loan (2) ........................................................................... — 712
Other secured debt (3) ................................................................................ 32 32
Senior Notes (1) ......................................................................................... 452 452
Total debt (4) ................................................................................................ 1,772 1,814
Equity:
Common stock .......................................................................................... 68 68
Other ......................................................................................................... 282 282
Total shareholders’ equity......................................................................... 350 350
Total capitalization ..................................................................................... 2,122 2,164
(1) Existing Senior Secured Notes and Senior Notes are converted into CHF, where applicable, at CHF 1.5579
= EUR 1.00
(2) The EUR Term Loan B at par value is converted into CHF, where applicable, at CHF 1.5530 = EUR 1.00.
(3) Includes capital leases, mortgages and other short- and long-term debt.
(4) In addition, we have CHF 150 million of undrawn availability under the Existing Revolving Credit Facility.
30

SELECTED HISTORICAL CONSOLIDATED FINANCIAL DATA
The table below sets out selected consolidated financial data of the Issuer as at and for the year ended
December 31, 2004 and 2005. The data relating to the years ended December 31, 2004 and 2005 have been
prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and
have been derived from the audited consolidated financial statements of the Issuer which are included
elsewhere in this Annual Report. The selected consolidated data presented below does not reflect any
purchase accounting adjustments related to Liberty Global Switzerlands’s acquisition of Cablecom on
October 24, 2005. You should read such data in conjunction with our consolidated financial statements and
the notes thereto which are contained elsewhere in this Annual Report and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations.”
Year ended December 31,
2005 2004
(CHF in thousands)
Consolidated Statements of Operations
Revenue:
Cable television ........................................................................... 458,074 444,037
Internet......................................................................................... 173,810 147,409
Telephony .................................................................................... 103,880 42,424
Business Solutions....................................................................... 46,396 28,169
Partner Group and other............................................................ 49,658 47,109
Operating revenue, net.................................................................
Operating costs and expenses:
831,818 709,148
Cost of goods and services .......................................................... (247,946) (209,532)
Selling, general and administration ............................................. (275,423) (215,496)
Stock-based compensation........................................................... (144,033) (23,675)
Depreciation and amortization..................................................... (324,123) (296,475)
Restructuring costs and related charges....................................... (12,204) (2,089)
Net gain on disposal of long-lived assets..................................... 5,710 1,745
Operating loss ...............................................................................
Other income (expense):
(166,201) (36,374)
Equity in earnings of affiliates..................................................... 634 821
Net (loss) gain on derivative instruments .................................... (21,559) 16,452
Interest expense, net..................................................................... (101,500) (90,665)
Loss on debt modifications.......................................................... (31,878) (53,812)
Foreign currency (losses) gains, net ............................................ (20,810) 373
Other non-operating (expense) income........................................ (1,595) 2,036
Minority interest .......................................................................... (2,725) (2,142)
Loss before income taxes.............................................................. (345,634) (163,311)
Income tax expense...................................................................... (5,041) (4,310)
Net loss........................................................................................... (350,675) (167,621)
31

Year ended December 31,
2005 2004
(CHF in thousands)
Balance Sheet data
Cash and cash equivalents............................................................. 123,703 64,037
Total assets.................................................................................... 2,931,802 2,893,057
Total current liabilities .................................................................. 641,156 573,141
Total non-current liabilities........................................................... 1,924,456 1,793,617
Minority interest............................................................................ 15,716 13,630
Total shareholders’ equity............................................................. 350,474 512,669
32

KEY OPERATING STATISTICS (1)
Year ended December 31, 2005
Partner
Cablecom Networks Total
Homes Passed (2) ................................................................ 1,802,200 n/a 1,802,200
Two-way Homes Passed (3) ............................................... 1,254,500 455,600 1,710,100
Customer Relationships (4) ................................................
RGUs
1,491,200 80,100 1,571,300
(5)
Analog cable television (6) .................................................... 1,410,900 n/a 1,410,900
Digital cable television (7) .................................................... 81,300 25,000 106,300
Broadband Internet (8) ........................................................... 304,700 35,800 340,500
Telephony (9) ......................................................................... 166,900 19,300 186,200
Total RGUs ........................................................................
Homes Serviceable
1,963,800 80,100 2,043,900
(10)
Analog cable television........................................................ 1,802,200 n/a 1,802,200
Digital cable television ........................................................ 1,457,500 266,000 1,723,500
Broadband Internet............................................................... 1,254,500 212,900 1,467,400
Telephony.............................................................................
Penetration
1,254,500 163,100 1,417,600
(11)
Analog cable television........................................................ 78.3% n/a 78.3%
Digital cable television ........................................................ 5.6% 9.4% 6.2%
Broadband Internet............................................................... 24.3% 16.8% 23.2%
Telephony............................................................................. 13.3% 11.8% 13.1%
Dec 31,
2004
33
March 31,
2005
June 30,
2005
Sept 30,
2005
Dec 31,
2005
RGUs (5)
Analog cable television (6) .................... 1,411,500 1,411,000 1,411,300 1,415,600 1,410,900
Digital cable television (7) .................... 84,000 89,100 98,100 100,300 106,300
Broadband Internet (8) .......................... 268,900 292,600 310,600 323,700 340,500
Telephony (9) ........................................ 103,000 128,200 148,000 162,000 186,200
Total RGUs....................................... 1,867,400 1,920,900 1,967,900 2,001,700 2,043,900

(1) The subscriber statistics have been calculated in accordance with the methods used by Liberty Global.
Previously the subscriber statistics were presented in accordance with Cablecom’s policy. The changes in
the methodology mainly affect the number of RGUs in our analog and digital cable television services.
Consistent with Liberty Global’s single count methodology, a digital cable television subscriber is no
longer counted as both an analog and a digital cable television RGU, but as a single digital cable television
RGU. As a consequence the number of analog cable television RGUs will be lower than Cablecom’s
previous reporting by approximately the number of reported digital cable television RGUs. Furthermore,
customers that purchased a set-top box but do not generate recurring revenue for digital cable television is
no longer counted as a digital cable television RGU. Consequently, penetration, ARPU and churn were
affected due to the changed customer base. The methodology for the calculation of the other subscriber
statistics presented in the Annual Report remains the same.
(2) Homes Passed are homes that can be connected to our networks without further extending the distribution
plant. Our Homes Passed counts are based on census data that can change based on either revisions to the
data or from new census results. We do not report Homes Passed for our partner networks.
(3) Two-way Homes Passed are homes passed by our networks where customers can request and receive the
installation of a two-way addressable set-top converter, cable modem, transceiver and/or voice port which,
in most cases, allows for the provision of analog cable television services, digital cable television services,
broadband Internet services and telephony services.
(4) Customer Relationships are the number of customers who receive at least one level of service without
regard to which service(s) they subscribe. We exclude mobile customers from customer relationships but
include customers from our partner networks subscribing to digital cable television, broadband Internet and
telephony services.
(5) Revenue Generating Unit (RGU) is separately an analog cable television subscriber, digital cable television
subscriber, broadband Internet subscriber or telephony subscriber. A home may contain one or more RGUs.
For example, a subscriber to our digital cable television service, broadband Internet service and telephony
service would constitute three RGUs. In some cases, non-paying subscribers are counted as subscribers
during their free promotional service period. Some of these subscribers choose to disconnect after their free
service period. Digital cable television, broadband Internet and telephony RGUs include partner network
subscribers.
(6) Analog cable television subscriber is comprised of analog cable television customers that are counted on a
per connection basis. An analog cable television subscriber is not counted as a digital cable television
subscriber. An analog cable television subscriber who also has digital cable television service is counted as
a digital television RGU.
(7) Digital cable television subscriber is a customer with one or more digital converter boxes that receives our
digital cable television service. We count a subscriber with one or more digital converter boxes that
receives our digital cable television service as just one subscriber. A digital cable television subscriber is
not counted as an analog cable television subscriber.
(8) Broadband Internet subscriber is a home or commercial unit or equivalent bulk unit (EBU) with one or
more cable modems connected to our broadband networks, where a customer has requested and is receiving
high-speed Internet access services.
(9) Telephony subscriber is a home or commercial unit or EBU connected to our networks, where a customer
has requested and is receiving voice services. Telephone subscribers as of December 31, 2005, exclude an
aggregate of 958 mobile telephone subscribers.
(10) Homes Serviceable are homes that can be connected to our networks, where customers can request and
receive analog cable television services, digital cable television services, broadband Internet services or
telephony services, respectively.
(11) Penetration measures the number of RGUs for our service divided by the number of homes serviceable for
our service.
34

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following discussion and analysis is intended to assist in providing an understanding of our financial
condition, changes in financial condition and results of operations and should be read in conjunction with
our consolidated financial statements. This discussion is organized as follows:
• Forward Looking Statements. This section provides a description of certain of the factors that could
cause actual results or events to differ materially from anticipated results or events.
• Overview. This section provides a general description of our business and recent events.
• Results of Operations. This section provides an analysis of our results of operations for the years ended
December 31, 2005 and 2004.
• Liquidity and Capital Resources. This section provides an analysis of our corporate and subsidiary
liquidity, consolidated cash flow statements, and our off balance sheet arrangements and contractual
commitments.
The following is a discussion and analysis of our results of operations and financial condition in the periods
set forth below. It is based on data that are derived from the audited consolidated financial statements of the
Issuer as of and for the years ended December 31, 2005 and 2004. The consolidated financial statements
have been prepared in accordance with U.S. GAAP. The capitalized terms used below have been defined in
the notes to the consolidated financial statements. In the following text, Cablecom, we, us, our and our
company may refer, as the context requires, to Cablecom Luxembourg S.C.A and its consolidated
subsidiaries, Cablecom GmbH. The financial information discussed in “Management’s Discussion and
Analysis” does not reflect any purchase accounting adjustments related to Liberty Global Switzerland’s
acquisition of Cablecom on October 24, 2005.
You should read this section in conjunction with the consolidated financial statements, including the notes
thereto, as well as the other financial information contained elsewhere in this Annual Report.
In accordance with the indenture of the Senior Notes and the Bank Facility agreement and the notification to
the Facility Agent on April 26, 2006, the Issuer has elected to apply U.S. GAAP in lieu of Swiss GAAP
FER in the preparation of its accounts. Therefore, this Annual Report as well as any future financial
statements and reports will be provided in accordance with U.S. GAAP. All ratios, computations, and other
determinations based on generally accepted accounting principles have been retroactively calculated in
conformity with U.S. GAAP.
Forward Looking Statements
The following discussion and analysis of our financial condition and results of operations contains
forward-looking statements. Those statements are subject to risks, uncertainties and other factors that could
cause our future results of operations or cash flow to differ materially from those expressed or implied in
such forward-looking statements. Factors that could cause or contribute to such differences include, but are
not limited to, those discussed below and elsewhere in this Annual Report, particularly under “Risk
Factors.” The following includes some but not all of the factors that could cause actual results or events to
differ materially from anticipated results or events:
35

Effect of competition and pricing
We operate in a number of competitive markets, including data and voice services. Maintaining a
competitive stance in the market may require repositioning our products which could materially impact the
amount of revenue per customer. In 2005, we introduced “hispeed light”, a 300 kbps version of our
broadband Internet product exclusively for entry-level customers also taking telephony as a bundle. We may
introduce similar entry-level or bundled products across our different product offerings. While introducing
customers to our products through lower-priced subscriptions has been a key customer acquisition strategy,
if we do not succeed in upgrading customers to higher value products, we may experience a reduced average
revenue per customer.
Continued growth of our television, broadband Internet, telephony and business products
We expect continued subscriber, penetration and revenue growth from our cable television, broadband
Internet and telephony businesses. In addition, we expect to continue growing our business to business
segment through current and future offerings. Reduced growth in these markets could have a material effect
on our financial results.
Effect of restrictions on price increases
In November 2004, we reached an agreement with the Swiss Price Regulator which foresaw a price freeze
for the analog television subscription at CHF 19.50 in 2005 and allowed us to increase prices to CHF 21.00
in 2006. This agreement, as well as discussions with the Swiss Price Regulator regarding future price
increases, could have a material impact on our results of operations and financial condition.
Effect of discounts
We have introduced product discounts in the past and may continue to do so in the future. Such discounts,
such as granting the first month free of charge for telephony, could have an effect on our results of
operations.
Effect of shift from fixed to growth-related capital expenditure
We have significantly reduced the fixed portion of our capital expenditures as most of our network is fully
upgraded, and we therefore expect, that going forward, our capital expenditure will be driven by the growth
of our digital products. If the fixed portion of our expenditure was to increase, or market conditions forced
further upgrade of our network, this would have a material impact on our cash flow and financial results.
Future product developments
In March 2006, Cablecom announced the bandwidth increase for Internet access of up to five times for the
same price. We expect to continue making capital expenditures for future bandwidth increases. As leaders in
our market, we may be required to make additional expenditures in our network to address customer growth
and demand-driven requirements for bandwidth capacity or the introduction of other product technologies.
You should be aware that the cable television, Internet and telephony services industries are changing
rapidly, and, therefore, the forward looking statements of expectations, plans and intent in this Annual
Report are subject to a greater degree of risk than similar statements regarding certain other industries.
These forward looking statements and such risks, uncertainties and other factors speak only as of the date of
this Annual Report, and we expressly disclaim any obligation or undertaking to disseminate any updates or
revisions to any forward looking statement contained herein, to reflect any change in our expectations with
36

egard thereto, or any other change in events, conditions or circumstances on which any such statement is
based.
Overview
We are the largest Swiss broadband communications provider of cable television, Internet access and fixedline
and mobile telephone services with consolidated operations in 14 of the 16 largest Swiss cities.
Cablecom’s ultimate parent changed on October 24, 2005 when Liberty Global Switzerland, an indirect
subsidiary of Liberty Global, acquired 100% of the outstanding shares of Cablecom Holdings AG from
Glacier Holdings S.C.A. In connection with the change in our ultimate parent company, Cablecom was
required to effect a change of control offer for all outstanding Senior Notes and Senior Secured Notes. In
order to fund this offer, we entered into a refinancing transaction in December 2005 and terminated all
hedging positions related to the Senior Secured Notes thereafter. In January 2006, Cablecom decided to
refinance all outstanding Senior Secured Notes which were not tendered during the change of control offer.
See ”—Liquidity and Capital resources.”
We have completed a number of acquisitions during 2005 and 2004 that have expanded our footprint and
the scope of our business. In 2005, we purchased two small, fully upgraded cable networks with
approximately 4,300 subscribers and sold two minor cable assets with an aggregated subscriber base of less
than 200 subscribers.
Through our subsidiaries we are the largest broadband cable operator in Switzerland in terms of
subscribers. At December 31, 2005, our consolidated subsidiaries owned and operated networks that passed
approximately 1.8 million homes and served approximately 2.0 million revenue generating units (RGUs)
over both our network and our partner networks, consisting of approximately 1.5 million cable television
subscribers, 340,500 broadband Internet subscribers and 186,200 telephony subscribers.
In general, we are focused on growing our subscriber base and average total monthly revenue from all
sources (including non-subscription revenue such as installation fees or advertising revenue) per average
RGU (ARPU) by launching bundled entertainment, information and communications services, upgrading
the quality of our networks where appropriate, leveraging the reach of our broadband distribution systems to
create new content opportunities and entering into strategic alliances and acquisitions in order to increase
our distribution presence and maximize operating efficiencies.
Current Developments
In March, 2006, we announced the bandwidth increase for Internet access of up to five times for the same
price. Hispeed 600, our most popular subscription, was upgraded to hispeed 3,000. The upload speed was
also increased to meet a 1:10 upload/download ratio. New customers benefit from the higher speed
immediately, existing customers will be upgraded automatically through June 2006. We expect to continue
making capital expenditures for future bandwidth increases. We may be required to make additional
expenditures in our network to address customer growth and demand-driven bandwidth capacity
requirements.
In March 2006 Swiss parliament has adopted a revised Telecommunications Act and a revised Radio and
Television Act which both are expected to enter into force on January 1, 2007. See “Business—Regulation”.
37

Results of Operations for the Years Ended December 31, 2005 and December 31, 2004
Year ended December 31,
2005 2004 Variance
(CHF in thousands) %
Consolidated Statements of
Operations
Revenue:
Cable television..................................... 458,074 444,037 14,037 3.2
Internet .................................................. 173,810 147,409 26,401 17.9
Telephony.............................................. 103,880 42,424 61,456 144.9
Business Solutions................................. 46,396 28,169 18,227 64.7
Partner Group and other ........................ 49,658 47,109 2,549 5.4
Operating revenue, net ...........................
Operating costs and expenses:
831,818 709,148 122,670 17.3
Cost of goods and services .................... (247,946) (209,532) (38,414) 18.3
Selling, general and administration....... (275,423) (215,496) (59,927) 27.8
Stock-based compensation .................... (144,033) (23,675) (120,358) 508.4
Depreciation and amortization .............. (324,123) (296,475) (27,648) 9.3
Restructuring costs and related
charges...................................................
(12,204) (2,089)
(10,115) 484.2
Net gain on disposal of long-lived
assets .....................................................
5,710 1,745 3,965 227.2
Operating loss..........................................
Other income (expense):
(166,201) (36,374) (129,827) 356.9
Equity in earnings of affiliates .............. 634 821 (187) (22.8)
Net (loss) gain on derivative
instruments ............................................
(21,559) 16,452 (38,011) (231.0)
Interest expense, net .............................. (101,500) (90,665) (10,835) 12.0
Loss on debt modifications.................... (31,878) (53,812) 21,934 (40.8)
Foreign currency (losses) gains,
net..........................................................
(20,810) 373 (21,183) (5,679.1)
Other non-operating (expense)
income ...................................................
(1,595) 2,036 (3,631) (178.3)
Minority interest.................................... (2,725) (2,142) (583) 27.2
Loss before income taxes ........................ (345,634) (163,311) (182,323) 111.6
Income tax expense ............................... (5,041) (4,310) (731) 17.0
Net loss ..................................................... (350,675) (167,621) (183,054) 109.2
The comparability of our operating results during 2005 and 2004 are affected by acquisitions and
dispositions. Acquisitions, net of dispositions, accounted for CHF 22 million of the overall increase in
revenue from 2004 to 2005. Due to the insignificance of these acquisitions and dispositions on our results of
operations we do not quantify their impact in our explanations of each individual line item.
Revenues
Our revenues consist of analog cable television revenue, digital cable television revenue, broadband Internet
revenue, dial-up Internet revenue, fixed-line and mobile telephony revenue, business services revenue and
Partner Group revenue. Revenues increased by CHF 122.7 million, or 17.3%, from CHF 709.1 million for
38

the year ended December 31, 2004 to CHF 831.8 million for the year ended December 31, 2005. The
increase in revenue is primarily due to increasing broadband Internet and telephony subscribers as well as
the effects of acquisitions, net of dispositions. Our cable television business generated CHF 458.1 million,
or 55%, of our consolidated revenues for the year ended December 31, 2005. Our residential Internet
(including dial-up and broadband Internet services) and telephony businesses generated CHF 173.8 million
and CHF 103.9 million, or 21% and 12% respectively, of our consolidated revenues for the year ended
December 31, 2005. Sales from Business Solutions and Partner Group were CHF 46.4 million and CHF
49.7 million, respectively, or both about 6% of our consolidated revenues, for the year ended December 31,
2005.
Cable television
Revenues generated by our cable television business increased by 3.2%, from CHF 444.0 million for the
year ended December 31, 2004, to CHF 458.1 million for the year ended December 31, 2005. This increase
was mainly due to organic and acquisition related subscriber growth in digital television as well as increased
advertising revenue.
Internet
Revenues generated by our Internet business increased by 17.9%, from CHF 147.4 million for the year
ended December 31, 2004 to CHF 173.8 million for the year ended December 31, 2005. Net additions of
broadband Internet subscribers were the main driver for increase in revenue partially offset by lower ARPU
and decreasing revenue from our dial-up Internet business.
Telephony
We officially launched our telephony business in June 2004. Our telephony business generates revenue from
a combination of fixed monthly line rental and usage fees (consisting of fixed call set-up fees and perminute
tariffs) and interconnection fees. Revenues generated by our telephony business increased by
144.9%, from CHF 42.4 million for the year ended December 31, 2004 to CHF 103.9 million for the year
ended December 31, 2005. The increase in revenue was primarily driven by the growth of the subscriber
base, generating revenue from monthly line rental charge and usage fees.
Business Solutions and Partner Group
Business Solutions and Partner Group revenues increased by 27.6%, from an aggregate of CHF 75.3 million
for the year ended December 31, 2004, to CHF 96.1 million for the year ended December 31, 2005.
Business Solutions revenues increased by 64.7% from CHF 28.2 million in 2004 to CHF 46.4 million in
2005 driven by an acquisition and growth in the number of business customers taking our existing data
connectivity services. We generate revenue from these services primarily from fees paid by customers for
data services, pursuant to standard conditions with smaller businesses (with fees typically generated on a
usage basis) and individually negotiated contracts with larger businesses.
Partner Group revenues increased by 5.4% from CHF 47.1 million in 2004 to CHF 49.7 million in 2005.
The increase was mainly attributable to an acquisition partially offset by the fact that we have stopped
growing the wholesale data transport services over our backbone to better leverage our competitive network
asset in the retail business market.
39

Costs
Costs of goods and services
Our costs of goods and services consist of copyright and license fees, direct service costs, programming
costs, network maintenance, interconnection fees, Internet peering costs, leased lines, and sold network
materials (including partner network sales and digital set-top boxes). We present depreciation and
amortization separately from our direct costs. See "—Depreciation and amortization expenses."
Costs of goods sold increased by 18.3% from CHF 209.5 million in 2004 to CHF 247.9 million in 2005.
Cost of goods sold as a percentage of revenue increased from 29.5% in 2004 to 29.8% in 2005. The increase
was in line with the growth of our business.
Selling, general and administrative expenses
Our selling, general and administrative expenses consist of customer acquisition costs (advertising),
administrative costs, facility costs, utilities, travel expense, insurance and personnel expenses. Personnel
expenses consist primarily of salary, social charges, pension contribution, bonuses and holiday accruals.
Selling, general and administrative expenses increased by 27.8% from CHF 215.5 million in 2004 to CHF
275.4 million in 2005 mainly driven by the increase in indirect labor, particularly for customer care,
administration and overhead functions, and by the increase of rental, insurance and utilities expenses.
Stock based compensation
Stock based compensation is related to the Management Equity Participation Plan ("MEPP") that was
established in November 2004, by Glacier Holding S.C.A and one of its shareholders together with Glacier
Holdings S.C.A.'s principal shareholders, for the benefit of certain employees of Cablecom. This plan no
longer exists following Liberty Global’s acquisition of Cablecom.
Stock based compensation increased from CHF 23.7 million in 2004 to CHF 144.0 million in 2005. The
increase in the stock compensation expense is due to increases in our value combined with accelerated
vesting due to the acquisition of Cablecom by Liberty Global Switzerland.
Depreciation and amortization expenses
Depreciation and amortization expense is related to the depreciation of our communication equipment and
amortization of intangible assets. Depreciation and amortization expense increased by 9.3% from CHF
296.5 million in 2004 to CHF 324.1 million in 2005 primarily driven by a higher carrying value of
communication equipment as a result of increased growth related capital expenditures, thus resulting in
higher depreciation on communication equipment during 2005 over 2004.
Restructuring and related charges
Restructuring and related charges are costs related to reorganization activities and plans to reduce the work
force of Cablecom. Restructuring and related charges increased from CHF 2.1 million for the year ended
December 31, 2004 to CHF 12.2 million for the year ended December 31, 2005. Our 2005 restructuring and
related charges mainly consist of attrition, early retirements and termination expenses. See Note 14 to the
consolidated financial statements.
40

Net gain on disposal of long-lived assets
Net gain on disposal of long-lived assets increased from CHF 1.7 million in 2004 to CHF 5.7 million in
2005 as a result of the sale of certain real estate assets. See Note 4 to the consolidated financial statements.
Equity in earnings of affiliates
Equity in earnings of affiliates is related to the pro rata share of profit or (loss) from investments in affiliates
that we account for using the equity method. Equity in earnings of affiliates decreased from CHF 0.8 million
in 2004 to CHF 0.6 million in 2005.
Net (loss) gain on derivative instruments
Net loss on derivative instruments relate to (i) the reclassification into earnings of the unrealized gains and
losses on derivative instruments that were previously in accumulated other comprehensive (loss) income.
These unrealized gains and losses are reclassified when the underlying cash flows that were previously
hedged are no longer probably of occurring, mainly due to refinancing and (ii) the change in fair market
value of derivative when not recognized in other comprehensive income.
Net loss on derivative instruments was CHF 21.6 million in the year ended December 31, 2005, as
compared to a net gain on derivative instruments of CHF 16.5 million in the year ended December 31, 2004.
In 2005, we reclassified previously recognized losses from accumulated other comprehensive (loss) income
to the statement of operations, including (i) CHF 17.8 million losses on interest rate swaps, (ii) CHF 14.7
million losses on USD to CHF cross-currency swaps, and (iii) CHF 2.5 million gain on EUR to CHF crosscurrency
swaps, when the underlying cash flows associated with these hedging instruments became no
longer probable of occurring following the April 2005 and December 2005 refinancing. These losses were
offset by changes in fair market values of derivative instruments in 2005. See Note 7 to the consolidated
financial statements.
Interest expense
Interest expense represents amounts payable on our various debt obligations including interest payments
under our existing Senior Secured Notes, Senior Notes and Bank Facility, the interest portion of hedging
agreements and discount/premium amortization on debt instrument.
Interest expense increased by 12.0% from CHF 90.7 million in 2004 to CHF 101.5 million in 2005. The
increase was mainly driven by higher principal outstanding and higher interest expense on our derivative
instruments.
Loss on debt modifications
Loss on debt modification is related to expensing deferred financing fees that were capitalized in
conjunction with certain previous long-term debt agreements. Loss on debt modifications decreased from
CHF 53.8 million in 2004 to CHF 31.9 million in 2005. The loss on debt modifications in 2004 was related
to previously capitalized refinancing fees which have been expensed as a consequence of the April 2004
refinancing. In addition, following April and December 2005 refinancing, certain capitalized cost have been
expensed.
41

Foreign currency (losses) gains, net
Foreign currency (losses) gains, net are primarily related to foreign currency transaction gains and losses
recorded with respect to long-term debt that is denominated in currencies other than our or our subsidiary’s
functional currency. Subsequent changes in exchange rates result in foreign currency (losses) gains which
are either unrealized or realized upon settlement of the transaction.
Net foreign currency (losses) gains were a net gain of CHF 0.4 million in the year ended December 31,
2004, as compared to a net loss of CHF 20.8 million in the year ended December 31, 2005. The loss in 2005
was mainly related to the strengthening of the EUR and USD against the Swiss Franc.
Income taxes
Income taxes relate to the movements in the consolidated tax liability or asset position, including income tax
for majority owned companies. We recognized income tax expense of CHF 5.0 million and CHF 4.3 million
during 2005 and 2004, respectively. The tax expense for 2005 differs from the expected tax benefit of CHF
76.4 million (based on the Swiss Federal and Cantonal 22.1% income tax rate) due primarily to (i) net
operating loss carry forwards that cannot be recognized for financial reporting purposes, as we have not yet
concluded that it is more-likely-than-not that we will utilize these loss carry forwards in future periods and
to (ii) various expenses not deductible for income tax purposes. See Note 8 to our consolidated financial
statements.
Liquidity and Capital Resources
Sources and Uses of Cash
At December 31, 2005, we held cash and cash equivalents of CHF 123.7 million. In addition to our cash and
cash equivalents, our sources of liquidity include borrowings availability subject to satisfaction of certain
conditions under our Existing Revolving Credit Facility, and our operating cash flow.
At December 31, 2005, Cablecom’s debt included outstanding floating rate Senior Secured Notes (Senior
Secured Notes) of CHF 1.019 billion, 9.375% EUR 290 million bonds (Senior Notes) of CHF 451.6 million
and Bank Facility of CHF 268.7 million. In addition, a CHF 150.0 million undrawn Existing Revolving
Credit Facility is available to us subject to our being in compliance with certain financial covenants and
other conditions.
We maintain cash and cash equivalents to fund the day-to-day cash requirements of our business and for
acquisitions.
We refinanced the Senior Credit Facility on April 8, 2005, by issuing floating rate Senior Secured Notes
(Series A CHF 390.0 million and EUR 200.0 million and Series B EUR 375.0 million) with net proceeds of
CHF 1.252 billion and maturities in the years 2010 and 2012.
In December, 2005, in connection with the Liberty Global Switzerland’s acquisition of Cablecom Holdings
AG and subsidiaries, the Issuer was required to effect a change of control offer (Change of Control Offer)
for the existing Senior Secured Notes, Senior Notes at 101% of their respective principal amounts, and for
the Existing Revolving Credit Facility. In order to fund the Change of Control Offer, Cablecom
Luxembourg S.C.A. entered into a bank facility agreement (Bank Facility) with certain banks and financial
institutions as lenders on December 5, 2005. The Bank Facility provides the terms and conditions upon
which (i) the lenders made available to Cablecom two term loans (Facility A Term Loan and Facility B
Term Loan) in an aggregate principal amount not to exceed CHF 1.33 billion and (ii) the revolving lenders
42

under Cablecom's CHF 150.0 million Existing Revolving Credit Facility have agreed to make available to
Cablecom and certain of its subsidiaries a new revolving credit facility (New Revolving Credit Facility) in
an aggregate principal amount not to exceed CHF 150.0 million to replace the Existing Revolving Credit
Facility. To date, the Existing Revolving Credit Facility remains in place and the New Revolving Credit
Facility will not be available for borrowing until the Existing Revolving Credit Facility is cancelled.
Pursuant to the Change of Control Offer, on December 8, 2005 Cablecom used CHF 268.7 million of
proceeds from the Facility A Term Loan under the Bank Facility to (i) purchase CHF 131.0 million of the
Series A CHF Senior Secured Notes, (ii) EUR 81.4 million of Series A and B EUR Senior Secured Notes,
(iii) EUR 0.1 million of the Senior Notes and (iv) fund the costs and expenses of the Change of Control
Offer. In addition, the lenders under the Existing Revolving Credit Facility waived their prepayment right
resulting from the change of control. See Note 6 to the consolidated financial statements.
On December 15, 2005, we notified the remaining bondholders to redeem all the remaining outstanding
Senior Secured Notes not tendered in the Change of Control Offer (the Redemption), at a redemption price
of 102% of their respective principal amounts, plus accrued and unpaid interest. On January 20, 2006, we
used CHF 349.3 million and CHF 335.8 million from Facility A and Facility B CHF Term Loans,
respectively and EUR 229.1 million from Facility B EUR Term Loan to fund the Redemption. Following
the Redemption, all amounts available under Facility A and Facility B had been drawn. See Note 6 to the
consolidated financial statements.
Our principal uses of cash following the 2006 refinancing will be for capital expenditures and for debt
service. We expect to fund these requirements with cash flows from our operating activities, cash on hand,
and, subject to satisfaction of certain conditions to borrowing, from borrowings under our Existing
Revolving Credit Facility.
The principal risks to our sources of liquidity are operational risks, including risks associated with decreased
pricing, reduced subscriber growth, increased technology and marketing costs and other consequences of
increased competition.
Our ability to service our debt and to fund our ongoing operations will depend on our future operating
performance and ability to generate cash. These depend to some extent on general economic, financial,
competitive, market, legislative, regulatory and other factors, many of which are beyond our control, as well
as other factors discussed under “Risk Factors” or elsewhere in this Annual Report.
We currently believe that our operating cash flows and available cash, together with available borrowings
under the Existing Revolving Credit Facility will be sufficient to fund our working capital needs, anticipated
capital expenditure and debt service requirements for at least the next several years, although we cannot
assure you that this will be the case.
43

Consolidated Cash Flow Statement
The following table sets out the components of our cash flows for each of the periods presented.
Year ended December 31,
2005 2004
(CHF in thousands)
Net cash provided by (used in) operating activities ................. 249,106 252,765
Net cash provided by (used in) investing activities.................. (235,322) (189,701)
Net cash provided by (used in) financing activities ................. 45,882 (143,002)
Effect of exchange rates on cash .............................................. - (28)
Net increase/ (decrease) in cash and cash equivalents ........ 59,666 (79,966)
During 2005, we used net cash provided by our operating activities of CHF 249.1 million, net cash provided
by financing activities of CHF 45.9 million to fund net cash used in our investing activities of CHF 235.3
million and increased our existing cash and cash equivalents balance by CHF 59.7 million.
The net cash used by our investing activities during 2005 includes cash paid for acquisitions of CHF 6.0
million capital expenditures of CHF 248.1 million, cash received from disposition of property and
equipment of CHF 41.4 million and the net effect of other less significant sources and uses of cash.
We have incurred, and may continue to incur, significant capital expenditure to fund the construction,
maintenance and insurance of our network and the development, marketing and distribution of our services.
The following table summarizes our capital expenditure for the periods set out below.
Year ended December 31,
2005 2004
(CHF in thousands)
Real estate ............................................................................ 732 46
Communications equipment................................................. 174,837 140,902
Other tangible assets / Construction in progress .................. 72,576 54,577
Capital expenditures/fixed asset increases........................ 248,145 195,525
We incurred capital expenditures of CHF 248.1 million and of CHF 195.5 million in 2005 and 2004,
respectively. The increase in capital expenditures is mainly related to our subscriber growth and generally
increasing capacity requirements that accompany subscriber growth. In future periods, we expect to
continue to focus on increasing the penetration of services in our existing upgraded footprint and efficiently
deploying capital aimed at services that result in positive net cash flows. During 2005, the cash provided by
our financing activities was CHF 45.9 million. Such amount includes primarily net borrowings of CHF 93.3
million, payment on financing costs of CHF 28.9 million, CHF 15.0 million cash paid to Glacier Holding
S.C.A, our previous ultimate parent company.
During 2004, we used net cash provided by operating activities of CHF 252.8 million as well as CHF 80.0
million of our cash and cash equivalents balances to fund net cash used in our investing activities of CHF
189.7 million and net cash used in our financing activities of CHF 143.0 million. The net cash used by our
investing activities was CHF 189.7 million. Such amount includes capital expenditures of CHF 195.5
million, and cash received from disposition of property and equipment of CHF 5.3 million. The net cash
44

used by our financing activities was CHF 143.0 million. Such amount includes the net repayment of debt of
CHF 93.0 million, including the impact of the 2004 debt refinancing, capital contribution received of CHF
20.0 million and payment on financing costs of CHF 69.7 million.
Off Balance Sheet Arrangements and Aggregate Contractual Obligations
Off Balance Sheet Arrangements
In the ordinary course of business, we have provided indemnifications to (i) purchasers of certain of our
assets, (ii) our lenders, (iii) our vendors, and (iv) other parties. In addition, we have provided performance
and/or financial guarantees to local municipalities, our customers and vendors. Historically, these
arrangements have not resulted in making any material payments and we do not believe that they will result
in material payments in the future.
Commitments and Contingencies
Our determination of the treatment of contingent liabilities in the financial statements is based on a view of
the expected outcome of the applicable contingency. We consult legal counsel on matters related to
litigation. We also consult with experts both within and outside Cablecom with respect to other matters that
arise in the ordinary course of business. Examples of such matters that are based on assumptions, judgments
and estimates are amounts to be paid to terminate certain agreements included in restructuring charges and
amounts to be paid to settle certain other liabilities. A liability is accrued if the likelihood of an adverse
outcome is probable of occurrence and the amount can be estimated. See Note 15 to our consolidated
financial statements.
Television distribution, Internet, telephony and content businesses are regulated in Switzerland. Adverse
regulatory developments could subject our businesses to a number of risks. Regulation could limit growth,
revenue and the number and types of services offered. In addition, regulation may restrict our operations and
subject them to further competitive pressure, including pricing restrictions, interconnect and other access
obligations, and restrictions or controls on content, including content provided by third parties. Failure to
comply with current or future regulation could expose our businesses to various penalties.
In addition to the foregoing items, we have contingent liabilities related to legal proceedings and other
matters arising in the ordinary course of business. In our opinion, it is expected that amounts, if any, which
may be required to satisfy such contingencies will not be material in relation to our consolidated financial
statements.
Contractual Obligations
The following table summarizes contractual obligations, commercial commitments and payments under
property leases.
Payments due by period from December 31, 2005
Less than 1-3 3-5 More than
Total 1 year years years 5 years
Operating leases................................... 81.4 15.7
(CHF in millions)
24.7 15.9 25.0
Other commitments.............................. 10.2 7.3 2.7 0.2 -
Total contractual obligations................ 91.6 23.0 27.4 16.2 25.0
See Note 13 and 15 to our consolidated financial statements.
45

In addition to the commitments set forth in the table above, we have commitments under agreements with
programming vendors, franchise authorities and municipalities, and other third parties pursuant to which we
expect to make payments in future periods. Such amounts are not included in the above table because they
are not fixed or determinable due to various factors.
The following table sets forth our contractual long- and other short-term debt obligations after giving effect
to the 2006 Refinancing, as they fall due for payment.
Payments due by period following the Refinancing
Less than 1-3 3-5 More than
Total 1 year years years 5 years
(CHF in millions)
Long-term and other short-term debt... 1,786.1 7.4 14.6 633.1 1,131.0
See Note 6 to our consolidated financial statements.
Financial Derivatives
See Note 7 to our consolidated financial statements.
46

Management of Cablecom
Board of Directors of Cablecom Holdings AG
MANAGEMENT AND GOVERNANCE
The Board of Directors of Cablecom Holdings AG, the direct parent company of the Issuer, currently
consists of seven directors. The table below sets out their names, their ages and their current positions.
Name Age Position
Gene Musselman.................................... 62 President and COO of UPC Broadband
Robert Dunn........................................... 39 Chief Financial Officer of UPC Broadband
Anton Tuijten......................................... 44 SVP and General Counsel of Liberty Global Europe
Bernd Kleinsteuber ................................ 40 Vice President Legal & Regulatory of Cablecom
Rolf Watter............................................. 47 Chairman
Walter Bosch.......................................... 61 Independent Director
Klaus Hug .............................................. 65 Independent Director
Rolf Watter has been a partner in the law firm Bär & Karrer in Zurich since 1994 and is a member of its
executive board; he further serves as a part-time professor at the University of Zurich. He is a Director of
Zurich Financial Services AG (and its subsidiary Zurich Insurance AG), Syngenta AG, Forbo Holding AG
(and its subsidiary Forbo Finanz AG), Feldschlösschen Getränke Holding AG, UBS Alternative Portfolio
AG and A.W. Faber-Castell (Holding) AG, in addition to being a Board member of the Swiss Lawyers’
Association and a member of the SWX admission board and of the Commission of Experts on Disclosure of
Shareholdings. From 2002 until September 2003 he was a non-executive Director of Centerpulse AG. Mr.
Watter graduated from the University of Zurich with a doctorate in law and holds a LLM degree from
Georgetown University.
Gene W. Musselman became President and Chief Operating Officer of the UPC Broadband division in
September 2003. He serves as a Director or Supervisory Board member for a number of Liberty Global’s
European subsidiary cable operations, including Austria, Belgium, France, Hungary, Ireland, the
Netherlands, Poland, Sweden and Switzerland. He became Chief Operating Officer of the UPC
Broadband division in April 2000 and was a member of its Board of Management from June 2000 to
September 2003. In September 1997, he became Chief Operating Officer and shortly thereafter Chief
Executive Officer of Telekabel Wien, an Austrian subsidiary, where he was awarded the “Silver Medal
for Services to the Province of Vienna” in recognition of his contribution and extraordinary services in
2004. He has been actively involved in the cable industry for more than 25 years. Mr. Musselman
attended Loyola University of Chicago where he obtained his Masters degree in Industrial Relations.
Robert Dunn became Chief Financial Officer of the UPC Broadband division in February 2001. He
serves as a Director or Supervisory Board member for a number of Liberty Global’s European subsidiary
cable operations, including Austria, Belgium, France and Poland. Before joining UPC NV as a Managing
Director of Finance and Accounting in May 2000, he was Group Financial Controller of a Pan European
metal packaging company. Furthermore, he was part of Price Waterhouse’s Transaction Sevices Group
and started his career as an audit manager. Mr. Dunn graduated from City University Business School in
London and is a Chartered Accountant in England and Wales.
Anton M. Tuijten, as General Counsel and Senior Vice President of Liberty Global Europe, Ton oversees
legal strategy, regulatory issues and public policy for Liberty Global Europe’s European country
operations. His focus areas include mergers and acquisitions and competition law.
47

Mr. Tuijten joined the company in September 1998 as UPC’s Vice President of Legal Services. In May
1999, he was promoted to UPC’s General Counsel. Before joining UPC, Ton served as General Counsel and
Company Secretary at Unisource, an international telecommunications company. Prior to this, he served as
Senior Corporate Lawyer at KPN. Ton is a member of the International Bar Association and the Dutch
Association of Business Lawyers. In 2003, Ton was named “European General Counsel of the Year” by
Legal Week Magazine. Ton received a Law degree specializing in business and competition law from
Leiden University in the Netherlands in 1986.
Bernd Kleinsteuber joined Cablecom in July 2002 as Legal Counsel Regulatory Affairs. Since April
2004, as Vice President Legal & Regulatory, he is responsible for regulatory affairs and the legal
department. Prior to joining Cablecom, Bernd Kleinsteuber was responsible for legal and regulatory
affairs of Energis (Switzerland) AG and its subsidiaries in various European countries and the US.
Previously he worked for o.tel.o, the alternative German carrier in Düsseldorf and as an attorney-at-law at
Rittershaus, Wissmann & von Rosenstiel, a law firm in Mannheim and Frankfurt/Germany. Bernd
Kleinsteuber holds a decree in law and is admitted to the bar in Germany and a registered foreign lawyer in
Switzerland.
Walter Bosch was appointed to the board of Cablecom in March 2004. Mr. Bosch is an entrepreneur and a
consultant. Mr. Bosch serves as Vice-Chairman on the Board of Swiss International Airlines, is a Delegate
of the Board of Euphonix Inc., and a board member of Business Development Partners AG, STAR TV, as
well as the Swissaid and FIS charities in Switzerland. Mr. Bosch was the founder of the advertising agency
“Bosch & Butz.” Previously, Mr. Bosch was the President of Ringier, the largest publishing house in
Switzerland, and Chief Editor of several Swiss publications. Mr. Bosch is a graduate of the University of St.
Gallen and Berlin in economics and management.
Klaus Hug has been a member of the board of Cablecom since July 2005. Mr. Hug is an attorney-at-law
and member of the board of Affichage Holding SA in Geneva and serves a board member of several other
Swiss companies. He is member of the Competition Commission. Previously he acted as secretary to the
minister of justice and as the director of the Federal Office for Industry and Labour. Formerly he also was
President of the Federal Institute of Intellectual Property. Klaus Hug graduated from the University of
Zurich with a doctorate in law.
Management of Cablecom
The table below sets out the names of the members of management team, their ages and their current
principal positions.
Name Age Position
Herbert Hribar.................. 54 Executive Vice President, Managing Director ad interim
Rudolf Fischer.................. 49 Executive Vice President, Managing Director
Guido Winkelman............ 35 Executive Vice President, Chief Financial Officer
Herbert Hribar was appointed Managing Director ad interim after the acquisition of Cablecom by Liberty
Global in October 2005. He will leave Cablecom at the end of June 2006. Mr. Hribar joined Cablecom as
Chief Operating Officer in January 2005. In this position he is responsible for the network, IT, and customer
care business. Prior to joining Cablecom, Mr. Hribar was managing director of the Wholesale and Network
division of eircom, the former Irish PTT, where he led the turn-around of that division and was instrumental
in bringing eircom back to the market in 2004. He has a wide range of experience in telecommunications
including President of Ameritech Cellular, managing director of Ameritech Europe and President and Chief
Operating Officer of Verio, an industry leading ISP acquired by NTT in 2001. Mr. Hribar graduated from
48

the U.S. Naval Academy in 1974 and holds advanced degrees in engineering, business, and computer
science.
Rudolf Fischer joined Cablecom in September 2001 and was appointed to the Board of Directors in
November 2003. From January 2005 until March 2006, he has been the Managing Director for the
operational business and is the contact person for representatives from the public, politics, authorities and
associations. Effective April 1, 2006, he was appointed Managing Director of Cablecom. Prior to joining
Cablecom, Mr. Fischer held various positions with Arthur D. Little, most recently as Global Leader of the
Telecoms Consulting Practice (c-quential, a 100% subsidiary of Arthur D. Little). Previously, he was CEO
of Ascom Ericsson Transmission AG, a joint venture between Ascom and Ericsson, a manufacturer of
transmission systems. Mr. Fischer received an MSc. in electrical engineering from the Swiss Federal
Institute of Technology in Zurich (ETH Zurich), and an MBA from the Graduate School of Business
Administration in Zurich.
Guido Winkelman joined Cablecom in January 2006 as Chief Financial Officer. Previously, he held several
positions at the UPC Broadband Group for more than seven years. Most recently, he was Director of
Acquisition and Financial Integration at UPC NV responsible for the financial and operational due diligence
on all potential acquisitions and for the post-acquisition financial integration. Before that, he was CFO of
UPC Sverige AB and Vice President Fiscal Affairs at UPC NV. Prior to joining UPC Broadband, he was a
tax consultant at Arthur Andersen. Guido Winkelman graduated in tax law at the University of Leiden.
Compensation
Members of our management team are compensated on the basis of a fixed salary plus a bonus based on
economic and qualitative performance objectives. During the year ended December 31, 2005, the aggregate
compensation paid to our management team was approximately CHF 6.6 million, including bonuses relating
to 2004 performance but excluding other employee benefits. We maintain directors’ and officers’ liability
insurance.
Pension Plans
See Note 12 to our consolidated financial statements.
Management and Corporate Governance of the Issuer
The Issuer is a société en commandite par actions, governed by Luxembourg law and its articles of
association (statuts). All matters not governed by the articles of association are determined in accordance
with Luxembourg law. The articles of association also determine which decisions require collective
shareholder approval, in addition to those decisions that Luxembourg law reserves to the general
shareholders’ meeting.
Pursuant to Article 3 of its articles of association, the purpose of the Issuer is the holding of interests, in any
form whatsoever, in Luxembourg and foreign companies and any other form of investment, the acquisition
by purchase, subscription or in any other manner as well as the transfer by sale, exchange or otherwise of
securities of any kind and the administration, control and development of its portfolio. Pursuant to Article 3,
the Issuer may obtain financing through the issuance of bonds or notes of any type, through private
placement or public offering, and may further guarantee, grant loans or otherwise assist the companies in
which it holds a direct or indirect participation or which form part of the same group of companies as the
Issuer. Under Article 3, the Issuer may carry out any commercial, industrial or financial activities which it
may deem useful in accomplishment of its purpose.
49

Manager of the Issuer
In accordance with Luxembourg law governing sociétés en commandite par action, the Issuer’s business is
managed by its general partner acting as manager. The general partner, Cablecom Luxembourg GP S.à r.l., a
company incorporated and existing under the laws of Luxembourg, has full executive authority to manage
the Issuer’s business.
The general partner is appointed as manager by the shareholders in the articles of association. The general
partner may only be removed from its position as manager by the shareholders if it consents to such
removal.
The company is validly bound vis-à-vis third parties by the signatures of any duly appointed representatives
of its general partner, or by the signature (s) of any other person (s) to whom authority has been delegated
by the general partner for specific transactions.
Under Luxembourg law, the general partner acting as manager of the Issuer convenes shareholders meetings
and presents the company’s financial statements to the shareholders for their approval.
Managers of the general partner of the Issuer
The general partner is managed by one or more managers, who are appointed by the shareholder (s) of the
general partner and who serve until their death, resignation or removal, with or without cause, by the
shareholders of the general partner or until the winding up of the general partner.
The general partner currently has four managers elected for an unlimited period of time. There is no
limitation on the duration of a term of a manager of the general partner.
The current managers of the general partner are the following persons:
a) Jeremy Evans, Cablecom Luxembourg S.C.A., 398, route d’Esch, Alter Domus Business Centre, 3e
étage, L-1417 Luxembourg
b) Dennis Okhuijsen, Cablecom Luxembourg S.C.A., route d’Esch, Alter Domus Business Centre, 3e
étage, L-1417 Luxembourg
c) Robert Dunn, Cablecom Luxembourg S.C.A., 398, route d’Esch, Alter Domus Business Centre, 3e
étage, L-1417 Luxembourg
d) Anton Tuijten, Cablecom Luxembourg S.C.A., 398, route d’Esch, Alter Domus Business Centre, 3e
étage, L-1417 Luxembourg
The general partner may be bound in all circumstances by the sole signature of any manager.
Meetings of the managers of the general partner, which are held as often as required, are normally convened
and presided over by the chairman of the board of managers. A quorum consists of two of the managers of
the general partner. Decisions of the managers of the general partner are taken by a vote of the majority of
the managers present or represented by another manager. A manager can give a proxy to another manager
and a manager may represent more than one manager at any particular meeting. Managers represented by
another manager at meetings count for purposes of determining the existence of a quorum. The board of
managers may grant special powers by authentic proxy or power of attorney by private instrument.
50

Managers’ power to vote on agreements in which they are interested
Luxembourg law does not provide for any express rules regarding agreements between the Issuer and its
general partner acting as manager, between the Issuer and a manager of its general partner or between the
general partner and one of its managers.
Compensation of the managers of the general partner
In consideration for their services as manager of the Issuer or as managers of the general partner, managers
are entitled to receive managers’ fees (jetons de présence). Managers’ fees are fixed by the general
shareholders’ meeting of the Issuer or of the general partner respectively.
Borrowing powers exercisable by the managers
Under Luxembourg law, the general partner, through a board resolution taken by its managers, must give
prior authorization for any security, pledge or guarantee by the Issuer. If the security, pledge or guarantee
has not been previously authorized by the general partner, the security, pledge or guarantee is nevertheless
enforceable against the Issuer if it has been signed by persons authorized to bind the Issuer or by persons
whom third parties of good faith could reasonably believe to be authorized to bind the Issuer.
Summary of terms of the shares issued by the Issuer
The Issuer has issued only one class of shares granting identical rights to all the shareholders. In addition to
the voting rights conferred by law or the articles of association, each share gives a right to a portion of the
Issuer’s net assets on winding-up, in proportion to the number and nominal value of shares outstanding.
The general partner of the Issuer is liable for all liabilities which cannot be paid out of the assets of the
Issuer. The liability of the limited shareholders is limited to their contributions to the company.
General meetings
Annual general meetings and extraordinary general meetings are usually called by the general partner of the
Issuer with 8 days notice. In specific circumstances, annual general meetings and extraordinary general
meetings can be called by the statutory auditors of the company, by an agent designated in court or
indirectly by shareholders holding one fifth of the shares of the company.
Any shareholder can attend the general meetings, upon providing proof of identity and share ownership.
51

DESCRIPTION OF CERTAIN FINANCING ARRANGEMENTS
The following is a summary of the material terms of certain financing arrangements to which we are a party.
The following summaries are not complete and are qualified by reference to the agreements described
below.
Senior Notes
General
On April 14, 2004, the Issuer issued EUR 290.0 million of 9 3⁄8% Senior Notes that mature on April 15,
2014 (The Senior Notes). Following the acquisition of Cablecom Holdings AG by Liberty Global
Switzerland Ltd., the Issuer was required to make an offer to purchase the Senior Notes at 101% of their
principal amount as a result of the change of control, whereof EUR 100,000 was redeemed.
Interest Rate
The Senior Notes bear interest at a rate equal to 9 3⁄8% per year. Interest is payable semi-annually on April
15 and October 15 of each year.
Ranking
The Senior Notes are the Issuer’s senior obligations and rank equally in right of payment with all future
unsecured indebtedness of the Issuer that is not subordinated to the Senior Notes, and rank senior in right of
payment to all of the Issuer’s existing and future subordinated indebtedness. The Bank Facility and the
Senior Secured Notes rank senior to the Senior Notes. All of the Senior Secured Notes were redeemed in
December 2005 and January 2006. The Senior Notes are structurally subordinated to all obligations of
Cablecom.
Covenants
The indenture for the Senior Notes includes certain covenants which, among other things, restrict the ability
of the Issuer and certain of its subsidiaries to:
• make certain payments, including dividends or make other distributions;
• incur or guarantee debt and issue preferred stock;
• make certain investments or acquisitions, including participating in joint ventures;
• prepay or redeem subordinated debt or equity;
• engage in certain transactions with affiliates and other related parties;
• sell assets, consolidate, merge with or into other companies;
• issue or sell share capital of certain subsidiaries; and
• create certain liens.
52

Security
The Senior Notes are secured by the Subordinated Intercompany Loan Note Assignment on a
second-ranking basis. Pursuant to the Intercreditor Deed, the security interest granted for the benefit of the
holders of the Senior Notes is subject to limitations on enforcement and is subordinated to the first-ranking
security in favor of the Senior Secured Notes as well as the new Bank Facility. All of the Senior Secured
Notes were redeemed in December 2005 and January 2006.
Change of Control
Upon the occurrence of a change of control (which is defined in the indenture governing the Senior Notes),
each holder of the Senior Notes has the right, subject to certain exceptions, to require the Issuer to
repurchase such holder’s Notes at a purchase price in cash equal to 101% of the principal amount thereof,
plus accrued and unpaid interest, if any, to the repurchase date.
Optional Redemption
On and after April 15, 2007, the Issuer will be entitled, at its option, to redeem all or a part of the Senior
Notes upon not less than 30 nor more than 60 days’ notice at the following redemption prices, plus accrued
and unpaid interest to the redemption date, if redeemed during the twelve-month period beginning on April
15 of the years indicated below:
Year
Redemption
Price
2007 ................................................................................................................................................. 109.375%
2008 ................................................................................................................................................. 107.031%
2009 ................................................................................................................................................. 104.688%
2010 ................................................................................................................................................. 103.125%
2011 ................................................................................................................................................. 101.563%
2012 and thereafter.......................................................................................................................... 100.000%
Prior to April 15, 2007, the Issuer may on any one or more occasions redeem up to 40% of the original
principal amount of the Senior Notes with the net cash proceeds of one or more equity offerings at a
redemption price of 109.375% of the principal amount thereof, plus accrued and unpaid interest, if any, to
the redemption date; provided that
(1) at least 60% of the original principal amount of the Senior Notes remains outstanding after each such
redemption; and
(2) the redemption occurs within 120 days after the closing of such equity offering.
In the case of definitive notes, if the optional redemption date is on or after an interest record date and on or
before the related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person in
whose name the Note is registered at the close of business on such record date and no additional interest will
be payable to holders whose Notes will be subject to redemption by the Issuer.
In addition, the Issuer may redeem all, but not less than all, of the Senior Notes in the event of specified
developments affecting taxation at a price equal to 100% of the principal amount thereof with accrued and
unpaid interest.
53

Events of Default
The indenture for the Senior Notes provides for events of default which, if any of them occurs, would permit
or require the principal of and accrued interest on the Senior Notes to become or to be declared due and
payable.
Senior Secured Notes
General
On April 8, 2005, Cablecom Luxembourg S.C.A. issued CHF 390.0 million of floating rate Senior Secured
Notes that mature on April 15, 2010 (the “Series A CHF Notes”), EUR 200.0 million of floating rate senior
secured notes that mature on April 15, 2010 (the “Series A Euro Notes” and, together with the Series A
CHF Notes, the “Series A Notes”) and EUR 375.0 million of floating rate senior secured notes that mature
on April 15, 2012 (the “Series B Notes” and, together with the Series A Notes, the “Senior Secured Notes”).
All of the Senior Secured Notes were redeemed in December 2005 and January 2006.
Existing Revolving Credit Facility
General
On April 8, 2005, Cablecom GmbH and Cablecom Luxembourg S.C.A. entered into a credit agreement (the
‘‘Existing Revolving Credit Facility’’) with, among others, Goldman Sachs International, Deutsche Bank
AG London and Credit Suisse First Boston as arrangers. The credit agreement provides for a revolving
credit facility of up to CHF 150 million), which is available for drawing in Swiss francs by Cablecom
GmbH and certain of its subsidiaries (subject to its terms and conditions).
Interest rates and fees
Advances under the Existing Revolving Credit Facilty bears interest for each interest period at a rate per
annum equal to LIBOR, plus a margin of 2.25% per annum, plus mandatory costs (if any). The margin is
not subject to adjustment. In addition to paying interest on advances under the Exisiting Revolving Credit
Facilty, Cablecom GmbH is required to pay a commitment fee to the lenders under the Existing Revolving
Credit Facilty in respect of the unutilized commitments thereunder at a rate of 0.75% per annum. It has also
agreed to pay certain agency fees to the facility agent and the security agent.
Guarantees and security
The Exisiting Revolving Credit Facilty requires the provision of the following security in favor of the
lenders to secure the obligations of Cablecom GmbH and Cablecom Luxembourg S.C.A.:
• a first-ranking pledge by Cablecom Luxembourg S.C.A. of its shares in Cablecom GmbH;
• a first-ranking security assignment by Cablecom Luxembourg S.C.A. of certain inter-company
loan notes; and
• a first-ranking security assignment by Cablecom GmbH and certain other members of the
Cablecom group of their bank accounts (subject to certain exceptions).
Cablecom GmbH, any other borrowers of the Exisiting Revolving Credit Facility and Cablecom
Luxembourg S.C.A. are required to provide a guarantee of each of the other borrowers’ obligations under
the Existing Revolving Credit Facilty in favor of the lenders.
54

Maturity
Each advance made under the Existing Revolving Credit Facilty are repayable on the last day of the interest
period relating thereto and amounts repaid may be redrawn during the availability period (subject to certain
conditions), provided that all amounts outstanding under the Existing Revolving Credit Facilty will be
repayable in full on April 8, 2010 (the ‘‘Final Maturity Date’’).
Availability of the Existing Revolving Credit Facility and use of proceeds
The proceeds of the Existing Revolving Credit Facility are, subject to the satisfaction of conditions
precedent, available for the period from (and including) the signing date to the date falling one month prior
to the Final Maturity Date. The Existing Revolving Credit Facility may be used to finance working capital
and for the general corporate purposes of the borrowers (including capital expenditure and acquisitions).
Voluntary and mandatory prepayment
Subject to the giving of notice and certain minimum amounts, the Existing Revolving Credit Facility
agreement allows for voluntary prepayments of outstanding advances (in whole or in part) at any time. The
Existing Revolving Credit Facilty requires mandatory prepayment of all amounts outstanding thereunder
following the occurrence of any event or circumstance in which the Senior Secured Notes are required by
their terms to be redeemed in full (or in which an offer to purchase all of the Senior Secured Notes is
required to be made), or in certain circumstances, after application of funds to make an offer to purchase the
notes, and following the expiry of any grace period or notice period applicable thereto. In addition, the
Existing Revolving Credit Facilty requires mandatory repayment in part of all amounts outstanding
thereunder following the occurrence of any event or circumstance in which the Senior Secured Notes are
required by their terms to be redeemed in part (or in which an offer to purchase part only of the Senior
Secured Notes is required to be made). All amounts required to be applied in partial prepayment will be
applied, first, to the Senior Secured Notes and, second, in the event of any remaining amounts, towards
prepayment of the Existing Revolving Credit Facility (and any amounts so prepaid will result in a
permanent reduction of the lenders’ commitments thereunder). In addition, the Existing Revolving Credit
Facilty requires mandatory repayment of all amounts outstanding thereunder following the occurrence of a
change in control. As defined in the Exisitng Revolving Credit Facilty, a change of control includes, among
other things: (1) any ‘‘person’’ or ‘‘group’’ of related persons (as such terms are used in Sections 13(d) and
14(d) of the Exchange Act), other than one or more specified permitted holders, is or becomes the beneficial
owner, directly or indirectly, of more than 50% of the total voting power of the voting stock of Cablecom
Luxembourg S.C.A. (or its successor) (for the purposes of this clause, such person or group shall be deemed
to beneficially own any voting stock of Cablecom Luxembourg S.C.A. held by a parent entity, if such
person or group beneficially owns, directly or indirectly, more than 50% of the voting power of the voting
stock of such parent entity); and (2) the first day on which a majority of the members of the board of
directors of Cablecom Luxembourg S.C.A. are not nominated for election or elected to the board of
directors with the approval of a majority of the then members of its board of directors. All prepayments
under the Existing Revolving Credit Facility shall be made in full, without penalty or premium, but subject
to payment of broken funding costs if not made on the last day of an interest period. The lenders under the
Existing Revolving Credit Facility waived their prepayment right resulting from the change of control.
Representations, warranties, undertakings and events of default
The Existing Revolving Credit Facilty contains various customary representations and warranties. In
addition, it contains various affirmative and negative undertakings similar to those contained in the
indenture governing the Senior Secured Notes. The Existing Revolving Credit Facilty does not contain any
financial maintenance covenants. The Existing Revolving Credit Facilty provides for events of default
55

which, if any of them occurs, would permit or, if instructed by the lenders, require the facility agent to
terminate the availability of the Existing Revolving Credit Facility, declare any outstanding advances due
and payable, require the borrowers to repay their outstanding liabilities and/or enforce any security.
Bank Facility
General
On December 5, 2005, Cablecom Luxembourg S.C.A. entered into a new facilities agreement (the “Bank
Facility”) with certain banks and financial institutions. The Bank Facility provides the terms and conditions
upon which (i) the lenders have made available to Cablecom Luxembourg two term loans (Facility A and
Facility B) in an aggregate principal amount not to exceed CHF 1.330 billion and (ii) the existing revolving
lenders under Cablecom GmbH's CHF 150.0 million Existing Revolving Credit Facility have agreed to
make available to Cablecom GmbH and certain of its subsidiaries a New Revolving Credit Facility in an
aggregate principal amount not to exceed CHF 150.0 million in replacement of the Existing Revolving
Credit Facility. To date, the Existing Revolving Credit Facility remains in place and the New Revolving
Credit Facility will not be available for borrowing until the Existing Revolving Credit Facility is cancelled.
Facility A is a CHF facility of CHF 618.48 million that matures on December 31, 2010 (“Facility A”),
Facility B was split into a CHF 355.76 million facility (the “CHF Facility B”) and a EUR 229.08 million
facility (“EUR Facility B”) that matures in accordance with the following installments (1% on a yearly
basis, starting December 31, 2006 up to December 31, 2011 with final repayment on September 31, 2012).
As discussed below, Facility A was partly drawn in December 2005 and both Facility A and Facility B were
fully drawn on January 20, 2006.
The Bank Facility includes an accession mechanism under which the term loan lenders agree to roll their
participations in the term loans into UPC Broadband Holding B.V.’s existing senior secured credit facility,
originally dated 16 January 2004, as amended from time to time (the “UPCB Facility”), at the election of
Cablecom Luxembourg S.C.A. at any time, subject to there being no actual event of default (as defined
therein) under the Bank Facility or actual or potential event of default (as defined therein) under the UPCB
Facility and provided that any amendments or waivers granted by the lenders under the UPCB Facility have
been approved by applicable Cablecom term loan lenders.
Interest Rate
Interest periods can be chosen by the borrower: 1, 2, 3, 6 months or any other period agreed. The interest
varies per Facility. Facility A bears interest at a rate per annum equal to CHF Libor + 2.50%. The CHF
Facility B bears interest at a rate per annum equal to CHF LIBOR + 2.75% for the first nine months
following drawdown and then decreasing to CHF LIBOR + 2.50%. The EUR Facility B bears interest at a
rate per annum equal to EURIBOR + 2.50%.
Ranking
The Bank Facility ranks pari passu to the Senior Secured Notes and the Existing Revolving Credit Facility.
On April 15, 2004, Cablecom GmbH and Cablecom Luxembourg S.C.A. entered into an intercreditor deed
with, among others, Deutsche Bank AG, London and Deutsche Bank Trustee Company Limited as amended
by a supplemental deed dated April 8, 2005 as well as a second supplemental deed dated December 6, 2005
pursuant to which the Bank Facility effectively rank pari passu with the Senior Secured Notes and the
CHF 150.0 million Existing Revolving Credit Facility of Cablecom GmbH and rank senior to the Senior
Notes. The intercreditor deed contains customary undertakings by, among others, Cablecom GmbH and
Cablecom Luxembourg S.C.A. to give effect to the ranking of the Bank Facility, the Senior Secured Notes,
the Existing Revolving Credit Facility and the Senior Notes.
56

Covenants
The Bank Facility includes covenants which, among other things, restrict the ability of Cablecom
Luxembourg S.C.A. and certain of its subsidiaries to:
• pay dividends or make other distributions
• make certain other restricted payments and investments
• incur additional indebtedness
• create or permit to exist liens
• dispose of assets
• merge or consolidate with other entities; and
• enter into transactions with affiliates
It also contain following financial covenants:
• maximum leverage (total, Senior)
• minimum total interest coverage; and
• minimum debt services coverage
Security
The Bank Facility is secured by certain inter-company loan notes as well as all shares in Cablecom GmbH,
all on a first-ranking basis.
Change of Control
Upon delivery of notice regarding the occurrence of a change of control, the Borrowers will if the Majority
Lenders so require, be required to repay all outstanding loans under the Bank Facility together with accrued
and unpaid interest immediately. As defined in the Bank Facility, a change of control will occur if (1) UGC
and the Permitted Holders (as defined therein) cease to (i) directly or indirectly own more than 50% of the
issued share capital of UGCE Inc.; and (ii) to control UGCE Inc; or (2) UGCE Inc. does not or ceases to
own directly or indirectly through one or more of its subsidiaries or other persons controlled by it, the legal
and beneficial interest in more than 50% of the voting and economic rights attaching to the issued share
capital of, or otherwise ceases to control, Cablecom Holdings AG (except as a result of a merger or
consolidation of Cablecom Holdings AG with or into a shareholder); or (3) Cablecom Holdings AG does
not or ceases to own, directly or indirectly through one or more of its subsidiaries or other persons
controlled by it, the legal and beneficial interest in 100% of the voting and economic rights attaching to the
issued share capital of, or otherwise ceases to control, each of Cablecom Luxembourg S.C.A. and Cablecom
GmbH..
57

Voluntary Prepayment
The Bank Facility and the New Revolving Credit Facility may be voluntarily prepaid, in whole or in part
(subject to certain de minimus thresholds), but subject to break funding costs.
Events of Default
The Bank Facility provides for events of default which would permit or require the principal of and accrued
interest on the Bank Facility to become or to be declared immediately due and payable.
58

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
Since January 1, 2004, material transactions between us and related parties, excluding intercompany
indebtedness, included the following arrangements.
• Costs totaling CHF 5.2 million have been allocated to Cablecom by Liberty Global Switzerland
and related companies after October 24, 2005.
All of the arrangements listed below were terminated or are no longer applicable as a result of Liberty
Global Switzerland’s acquisition of Cablecom on October 24, 2005:
• The Shareholders’ Agreement by and among Glacier Holdings S.C.A., Glacier Holdings GP S.A.,
and each of the Company’s and Manager’s shareholders, dated November 12, 2003. This
agreement, among other things, provided the terms and conditions of the governance and
management of the various parties.
• Implementation of a management equity participation plan as of November 11, 2004 for senior
management of Cablecom.
• Costs totaling CHF 4.3 million and CHF 8.6 million have been incurred by Glacier on behalf of
Cablecom and have been recorded as a component of SG&A during the period from January 1,
2005 to October 24, 2005 and the year ended December 31, 2004, respectively.
• Cablecom agreed to pay a special distribution of CHF 15.0 million to Glacier which has been
recorded as a transfer to Glacier Holdings S.C.A. in the consolidated statement of shareholders’
equity and in accrued expenses in the balance sheet at December 31, 2004.
59

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Auditors.............................................................................................................F-2
Financial Statements
Consolidated Balance Sheets .....................................................................................................................F-3
Consolidated Statements of Operations and Comprehensive Loss............................................................F-4
Consolidated Statements of Shareholders’ Equity.....................................................................................F-5
Consolidated Statements of Cash Flows....................................................................................................F-6
Notes to Consolidated Financial Statements..............................................................................................F-8
F- 1

Report of Independent Auditors
The Board of Directors and Shareholders of Cablecom Luxembourg S.C.A. and subsidiaries
We have audited the accompanying consolidated balance sheets of Cablecom Luxembourg S.C.A. and
subsidiaries (the “Company”) as of December 31, 2005 and 2004, and the related consolidated statements of
operations and comprehensive loss, shareholders’ equity and cash flows for the years then ended. These
financial statements are the responsibility of the Company’s management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. We were not engaged to perform an audit of the
Company’s internal control over financial reporting. Our audits included consideration of internal control
over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances,
but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over
financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Cablecom Luxembourg S.C.A. and subsidiaries at December 31, 2005 and
2004, and the consolidated results of their operations and their cash flows for the years then ended in
conformity with accounting principles generally accepted in the United States.
Ernst & Young AG
/s/ Yves Vontobel /s/ Michael Fischer
Yves Vontobel Michael Fischer
Swiss Certified Accountant Certified Public Accountant
(in charge of the audit)
Zurich, Switzerland
March 20, 2006
F- 2

(CHF in thousands, except share amounts)
December 31, December 31,
2005 2004
Assets
Current assets
Cash and cash equivalents
Accounts receivable — trade, less allowance for doubtful accounts of
123'703 64'037
CHF 24,215 in 2005 and CHF 14,115 in 2004 291'703 245'323
Other accounts receivable 6'274 1'914
Unbilled receivables 21'498 21'874
Inventories 11'610 14'238
Financial derivatives 13'996 -
Other current assets 15'078 20'765
Total current assets 483'862 368'151
Non-current assets
Property and equipment, net 1'425'850 1'505'017
Intangible assets, net 198'556 209'450
Investment in affiliates 7'423 6'790
Deferred financing costs 10'254 13'281
Financial derivatives 974 2'479
Other non-current assets 16'783 2'812
Goodwill 788'100 785'077
Total assets 2'931'802 2'893'057
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable 73'791 60'829
Accrued expenses 101'896 58'434
Income taxes payable 2'695 2'087
Financial derivatives 10'528 14'658
Interest payable 19'760 13'606
Current portion of deferred revenue 385'946 358'859
Other current liabilities 43'482 38'855
Current portion of long-term debt and capital leases 3'058 25'813
Total current liabilities 641'156 573'141
Non-current liabilities
Long-term debt and capital leases 1'769'311 1'645'568
Financial derivatives 7'022 21'255
Non-current deferred revenue 40'795 23'083
Pension liability 80'235 90'683
Other non-current liabilities 27'093 13'028
Total liabilities 2'565'612 2'366'758
Commitments and contingent liabilities - -
Minority interest 15'716 13'630
Shareholders' equity
Common stock - Euro 10 par value; authorized 4,384,401 shares;
issued and outstanding 4,384,401 shares in 2005 and in 2004 68'375 68'375
Additional paid-in capital 818'524 670'295
Accumulated other comprehensive income (loss) 15'196 (25'055)
Accumulated deficit (551'621) (200'946)
Total shareholders' equity 350'474 512'669
Total liabilities and shareholders' equity 2'931'802 2'893'057
F- 3

(CHF in thousands)
F- 4
Year Ended Year Ended
December 31, December 31,
2005 2004
Revenues
Operating revenue, net
Operating costs and expenses
831'818 709'148
Cost of goods and services (247'946) (209'532)
Selling, general and administrative (SG&A) (275'423) (215'496)
Stock-based compensation (144'033) (23'675)
Depreciation and amortization (324'123) (296'475)
Restructuring and related charges (12'204) (2'089)
Net gain on disposal of long-lived assets 5'710 1'745
(998'019) (745'522)
Operating loss
Other income (expense)
(166'201) (36'374)
Equity in earnings of affiliates 634 821
Net (loss) gain on derivative instruments (21'559) 16'452
Interest expense, net (101'500) (90'665)
Loss on debt modifications (31'878) (53'812)
Foreign currency (loss) gains, net (20'810) 373
Other non-operating (expense) income (1'595) 2'036
Minority interest (2'725) (2'142)
Loss before income taxes (345'634) (163'311)
Income tax expense (5'041) (4'310)
Net loss (350'675) (167'621)
Foreign currency translation adjustments 10'216 6'488
Unrealized loss on cash flow hedges (423) (31'683)
De-designation of financial hedge instruments 30'458 -
Comprehensive loss (310'424) (192'816)

(CHF in thousands, except share amounts)
Accumulated Other Comprehensive
Income (Loss)
Total
Net Accumulated
Additional Foreign Unrealized Other Total
Common Stock Paid-In Currency Losses on Comprehensive Accumulated Shareholders'
Shares Par Capital Translation Derivatives Income (Loss) Deficit Equity
Contribution of Cablecom GmbH 4'384'401 68'375 633'013 140 - 140 (33'325) 668'203
Capital contribution from Cablecom Holdings AG - - 20'000 - - - - 20'000
Stock-based compensation - - 23'675 - - - - 23'675
Transfer to Glacier Holdings S.C.A.
Push down of Glacier Holdings S.C.A. expenses
- - (15'000) - - - - (15'000)
(see Note 10) - - 8'607 - - - - 8'607
Net loss
Foreign currency translation
- - - - - - (167'621) (167'621)
adjustments - - - 6'488 - 6'488 - 6'488
Unrealized loss on cash flow hedges - - - - (31'683) (31'683) - (31'683)
Balance, December 31, 2004 4'384'401 68'375 670'295 6'628 (31'683) (25'055) (200'946) 512'669
Stock-based compensation - - 144'033 - - - - 144'033
Push down of Glacier Holdings S.C.A. expenses
(see Note 10)
- - 4'196 - - - - 4'196
Net loss - - - - - - (350'675) (350'675)
Foreign currency translation adjustments - - - 10'216 - 10'216 - 10'216
Unrealized loss on cash flow hedges - - - - (423) (423) - (423)
De-designation of financial hedge instruments - - - - 30'458 30'458 - 30'458
Balance, December 31, 2005 4'384'401 68'375 818'524 16'844 (1'648) 15'196 (551'621) 350'474
F- 5

(CHF in thousands)
December 31, December 31,
2005 2004
Operating activities
Net loss
Adjustment to reconcile net loss to net cash
provided by operating activities
(350'675) (167'621)
Depreciation and amortization 324'123 296'475
Provision for doubtful accounts 10'100 1'749
Stock-based compensation 144'033 23'675
Push down of expenses by Glacier Holdings S.C.A. 4'196 8'607
Equity in earnings of affiliates (634) (821)
Net gain on disposal of assets (5'710) (1'745)
Loss on debt modification 31'878 53'812
Net loss (gain) on derivative instruments 21'559 (16'452)
Minority interest 2'725 2'142
Foreign currency loss (gains), net
Effect of changes in operating
assets and liabilities
20'810 (373)
Accounts receivable trade (54'725) 6'369
Other accounts receivable (4'360) 3'027
Unbilled receivables and other assets (7'852) (18'574)
Inventories 2'628 1'630
Accounts payable 10'610 36'422
Interest payable 6'154 (6'283)
Accrued expenses and other liabilities 48'839 11'439
Income taxes payable 608 (3'561)
Deferred revenue
Net cash provided by
44'799 22'848
operating activities
Inves ting activities
249'106 252'765
Purchase of property and equipment (248'145) (195'525)
Disposition of property and equipment 41'352 5'286
Acquisitions, net of cash acquired (6'010) -
Net cash paid to settle financial derivatives (22'378) -
Other (141) 538
Net cash used in investing activities
Financing activities
(235'322) (189'701)
Capital lease payments (2'921) (1'765)
Payment of financing costs (28'851) (67'571)
Repayment of debt (1'448'338) (1'725'827)
Issuance of debt 1'541'631 1'632'779
Capital contribution from Cablecom Holdings AG - 20'000
Transfer to Glacier Holdings S.C.A. (15'000) -
Dividends paid to minority interest
Net cash provided by (used in)
(639) (618)
financing activities
Effect of exchange rate fluctuations on
45'882 (143'002)
cash and cash equivalents - (28)
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents
59'666 (79'966)
Beginning of period 64'037 144'003
End of period 123'703 64'037
F- 6

December 31, December 31,
2005 2004
Supplemental disclosure of cash flow information
Cash paid during the year for interest exclusive
of amounts capitalized (90'811) (141'710)
Additions to property and equipment for capital leases 1'379 2'891
Income taxes paid (1'067) (3'338)
F- 7

1. Organization and Business
Cablecom Luxembourg S.C.A. is a holding company incorporated in Luxembourg operating cable
communications services primarily in Switzerland through its subsidiary Cablecom GmbH, Zurich
(collectively referred to as “Cablecom” or the “Company”). Cable communications services, although to a
lesser extent, are also provided to the Austrian market. The Company provides a wide range of services,
including television, telephony and Internet access to its residential customers, as well as data services to
business customers in Switzerland. Cablecom began to offer telephony services initially as an extension of
its broadband Internet product in February 2003.
Cablecom’s analog cable television service represents the Company’s most significant contributor to
revenue. Additionally, the Company utilized its existing infrastructure and network capacity to develop its
high growth broadband Internet access, digital television service, and fixed-line telephony services to
residential customers while providing advanced data services and wholesale activities to business customers
and third party network operators, respectively.
Cablecom Luxembourg S.C.A. was incorporated in Luxembourg on March 19, 2004 in order to perform
holding activities of Cablecom GmbH and facilitated the financial restructuring of Cablecom GmbH in
April 2004. Cablecom GmbH was acquired by Cablecom Luxembourg S.C.A. through its subsidiary CCom
Financing (Gibraltar) Limited through a non-cash issuance of shares as a result of the financial restructuring
and subsequent refinancing. The acquisition of Cablecom GmbH was accounted for by Cablecom
Luxemburg S.C.A. at its historical basis as the transfer occurred between entities under common control. As
the transfer of rights, obligations and risks are substantively in place during 2004, these financial statements
include the results of operations and cash flows of Cablecom GmbH for the full period from January 1, 2004
to December 31, 2004.
The Company’s ultimate parent changed on October 24, 2005 when Liberty Global Switzerland Inc.
acquired 100% of the outstanding shares of Cablecom Holdings AG from Glacier Holdings S.C.A.,
(“Glacier”). Any adjustments to apply the purchase method of accounting resulting from this transaction
have not been reflected in these consolidated financial statements.
2. Significant Accounting Policies
Basis of Presentation and Use of Estimates
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States and are presented in Swiss Francs (“CHF”), except as
noted.
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States requires management to make estimates and assumptions that affect the amounts reported in
the financial statements and accompanying notes.
The Company uses specialists who have applied certain methods and assumptions in estimating the fair
value of financial instruments, including derivatives, stock compensation and actuarial liabilities associated
with certain benefit plans. In addition, goodwill and long-lived asset impairment tests are assessed using
fair value estimation techniques.
Actual results may differ significantly from those estimates and such differences may be material to the
financial statements. On an ongoing basis, management reviews its estimates based on currently available
information. Changes in facts and circumstances may result in revised estimates.
F- 8

Principles of Consolidation
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries
and entities where the Company’s voting interest is greater than 50%. Significant intercompany accounts
and transactions have been eliminated in consolidation. In those cases where the subsidiaries are not
wholly-owned, the minority interests are separately presented in the consolidated statements of operations
and comprehensive loss and consolidated balance sheets. The Company does not have any significant
variable interests in variable interest entities as contemplated by Interpretation 46(R) “Consolidation of
Variable Interest Entities an Interpretation of ARB No. 51” of the Financial Accounting Standards Board.
Foreign Currency Translation
The financial statements of foreign subsidiaries have been translated into CHF in accordance with Statement
of Financial Accounting Standards (“SFAS”) No. 52, “Foreign Currency Translation.” Balance sheet
accounts have been translated using the current exchange rates at the respective balance sheet dates.
Statement of operations amounts have been translated using the average exchange rates for the respective
periods. The translation gains or losses resulting from the change in exchange rates have been reported as a
component of accumulated other comprehensive income or loss. Foreign currency transaction gains and
losses are included in the statements of operations as incurred.
To the extent that the Company obtains financing in CHF and incurs capital and operating costs in various
other currencies, it will encounter currency exchange rate risks. In addition, the Company’s revenues are
generated in CHF while a portion of its interest and principal obligations are payable in foreign currencies.
These foreign currencies include the European monetary unit (“EUR”) and the U.S. Dollar (“USD”).
Cash Equivalents
Cash equivalents are short-term highly liquid investments purchased with original maturities of three
months or less. Cash equivalents were CHF 15.9 million and CHF 0.9 million at December 31, 2005 and
2004, respectively, which consisted primarily of bank time deposits.
Accounts Receivable Trade and Unbilled Receivables
Trade receivables, which generally have 30-90 day terms, are recognized and carried at original invoice
amount less an allowance for any estimated uncollectible amounts. An allowance for doubtful accounts is
recorded when collection of the full invoice amount is no longer probable. Bad debts are written off when
identified. As discussed under “Revenue Recognition” below, unbilled receivables represent amounts to be
billed for services performed as of the balance sheet date.
Inventory
Inventories are valued at the lower of cost or market value. Raw materials are stated at purchase price on a
weighted average cost basis.
Property and Equipment
Property and equipment are stated at cost less accumulated depreciation which includes amounts capitalized
for labor and overhead incurred in connection with the design and installation of operating equipment.
Installation activities that are capitalized include (i) the initial connection (or “drop”) from the Company’s
cable system to a customer location and (ii) the replacement or the installation for additional services such
as digital cable, telephone or broadband Internet service. Costs of reconnecting customer locations where a
drop already exists and disconnecting customer locations are expensed as incurred. The cost of repair and
maintenance activities are expensed as incurred, while improvements are capitalized and depreciated.
F- 9

Internal costs directly related to the construction of facilities, including payroll and related costs of certain
employees are capitalized.
Depreciation is computed using the straight-line method over the estimated useful lives of the assets.
Estimated useful lives are as follows:
Buildings 33-50 years
Communication network 16 years
Backbone 6-20 years
Other communication equipment 2-6 years
Other equipment 3-6 years
Leasehold improvements are depreciated over the shorter of the asset’s estimated useful life or the lease
term. Depreciation expense was CHF 313.1 million and CHF 285.8 million for the years ended
December 31, 2005 and 2004, respectively.
Goodwill and Intangible Assets
Goodwill is the excess of the purchase price over the fair value of net assets (including identifiable
intangible assets) acquired in business combinations accounted for as purchases. Goodwill is not amortized.
Instead, goodwill is reviewed annually at year-end (or more frequently under certain conditions) for
impairment in accordance with SFAS No. 142, “Goodwill and Other Intangible Assets.” Intangible assets
consist of customer relationships which represent the portion of the purchase price allocated to the value of
the customer base. Customer relationships are amortized on a straight-line basis over the estimated life of
the customer relationships (22 years).
Impairment of Long-Lived Assets
Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of
the asset, a loss is recognized for the difference between the fair value and the carrying value of the asset.
Investment in Affiliates
Investments in which the Company has the ability to exercise significant influence over the investee, but
less than a controlling voting interest, are accounted for using the equity method. Equity method
investments are recorded at original cost and adjusted periodically to recognize the Company’s
proportionate share of the investees’ net income or loss after the date of investment, additional contributions
made and dividends received. The Company periodically evaluates the carrying value of its equity method
investments and performs impairment tests whenever declines in the value of these investments are
considered to be other than temporary.
Deferred Financing Costs
Deferred financing costs are capitalized costs incurred in connection with the issuance of debt and are
amortized using the effective interest method over the term of the related debt as a component of interest
expense. In accordance with Emerging Issues Task Force (“EITF”) Issue 96-19, “Debtor’s Accounting for a
Modification or Exchange of Debt Instruments,” certain financing costs incurred in conjunction with the
refinancing of long-term debt were expensed as incurred and reflected as loss on debt modification in the
statements of operations. Additional direct financing costs associated with the refinancing were capitalized
F- 10

and are being amortized using the effective interest method and reflected as amortization expense in the
statements of operations.
Long-Term Debt
At December 31, 2005 and 2004, long-term debt was recorded and is carried at amortized cost. Long-term
debt is accreted to the face amount of the borrowings using the effective interest method with accretion
included as a component of interest expense in the consolidated statements of operations and comprehensive
loss.
Equity-Based Compensation
As more fully described in Note 10 and 11, the Company accounts for equity-based compensation provided
by Glacier Holdings S.C.A. and principal shareholders to its employees in accordance with the provisions of
Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB
25”), and related interpretations, which allows a company to measure compensation expense based on the
intrinsic value of an award at date of grant for a fixed award or at each balance sheet date for a variable
award. The Company measures the intrinsic value as the difference between the fair value of the relevant
equity based securities provided to employees less any amount paid by the employee. For those awards
subject to graded vesting, the intrinsic value of each vesting tranche is amortized separately over the
relevant vesting period.
The Company has adopted the disclosure only requirements of SFAS No. 123, “Accounting for Stock-
Based Compensation” (“SFAS No. 123”) which allows entities to continue to apply the provisions of APB
25 for transactions with employees and to provide pro forma net income disclosures as if the fair value
based method of accounting described in SFAS No. 123 had been applied to equity-based transactions with
employees. As disclosed in Note 11, there would not have been any impact on net loss had the Company
accounted for its equity compensation awards in accordance with SFAS No. 123 during all the periods
presented in the accompanying consolidated financial statements.
Defined Benefit Plans
The Company maintains various pension plans for its employees. The Company’s plans represent a benefit
for its employees and a cost to the Company. In accordance with SFAS No. 87, “Employers’ Accounting
for Pensions,” certain assumptions and estimates must be made to determine the costs and future benefits
that will be associated with these plans. These assumptions include the estimated long-term rate of return to
be earned by plan assets, the estimated discount rate used to value the projected benefit obligations and
estimated wage increases. The Company uses a model portfolio of high quality bonds whose expected rate
of return is estimated to match the plan’s expected cash flows as a basis to determine the most appropriate
discount rate. For the long-term rate of return, the Company uses a model portfolio based on the
Company’s targeted asset allocation.
Leases
The Company enters into agreements to lease certain operating assets such as cars and buildings. In
addition, the Company enters into contracts with counter parties to provide cable network capacity, and
grants rights to capacity on the basis of an indefeasible right of use (“IRU”). An IRU is a right to use a
specified amount of capacity for a specified time period. The indefeasible right is one that cannot be
revoked or voided. An acquirer of an IRU has the exclusive right to use the capacity represented by the
IRU. It may use the capacity of dark fibre pairs or use duct space to lay fibre. Upon entering into a
contract, the Company assesses whether or not the contract is for the use of specified equipment or for
F- 11

services rendered, and if certain criteria are met, the contract is accounted for as a lease in accordance with
SFAS No. 13, “Accounting for Leases.”
Capital leases are accounted for as if the Company had acquired the assets and are recorded at the inception
of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease
payments. Lease payments are apportioned between the finance charges and reduction of the lease liability
so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are
charged to interest expense. Capitalized leased assets are depreciated over the shorter of the estimated
useful life of the asset or the lease term. Depreciation expense associated with assets under capital leases is
recognized as depreciation and amortization in the consolidated statements of operations and comprehensive
loss. Operating lease payments are recognized as an expense in the consolidated statement of operations on
a straight-line basis over the lease term.
Income Taxes
The provision for income taxes, income taxes payable and deferred income taxes are determined using the
liability method. Deferred income tax assets and liabilities are determined based on differences between the
financial reporting and tax basis of assets and liabilities and are measured by applying enacted tax rates and
laws to taxable years in which such differences are expected to reverse. This process requires our
management to make assessments regarding the timing and probability of the ultimate tax impact of such
items. A valuation allowance is provided when the Company determines that it is more likely than not that
a portion of the deferred tax asset balance will not be realized. Establishing a tax valuation allowance
requires us to make assessments about the timing of future events including the probability of expected
future taxable income and available tax planning opportunities. Actual income taxes could vary from these
estimates due to changes in income tax law in the jurisdictions in which we operate, differences between
estimated and actual results or unpredicted results from the final determination of each year's liability by
taxing authorities. Any of these factors could have a material effect on our current and deferred tax position
as reported in the accompanying financial statements. A high degree of judgment is required to assess the
impact of possible future outcomes on our current and deferred tax positions.
Asset Retirement Obligations
The Company maintains certain rights of way and leases that require it to restore facilities or remove
equipment in the event that the agreement is not renewed. The possibility is remote that the Company
would be required to incur significant restoration or removal costs in the foreseeable future. In March 2005,
the FASB issued Interpretation No. 47, “Accounting for Conditional Asset Retirement Obligations” (“FIN
47”), an interpretation of FASB Statement No. 143, “Accounting for Asset Retirement Obligations.” FIN
47 generally applies to long-lived assets and requires a liability to be recognized for a conditional asset
retirement obligation if the fair value of that liability can be reasonably estimated. A conditional asset
retirement obligation is defined as a legal obligation to perform an activity associated with an asset
retirement in which the timing and/or method of settlement are conditional on a future event that may or
may not occur or be within the control of the company. A liability should be recognized when incurred
(based on its fair value at that date), which generally would be upon acquisition or construction of the
related asset. Upon recognition, the offset to the liability would be capitalized as part of the cost of the asset
and depreciated over the estimated useful life of that asset. FIN 47 was effective no later than December 31,
2005. The adoption of FIN 47 did not have a material impact on the consolidated financial statements.
F- 12

Revenue Recognition
Operating revenue, net contain all revenues from ordinary business activities. Revenues are recorded net of
value-added tax (VAT) and sales-related reductions.
Revenue consists primarily of monthly subscription fees as well as usage fees for providing access services
to analog or digital cable television, Internet and telephony. Revenue by service is presented in the
following table:
(CHF in thousands)
F- 13
Year Ended Year Ended
December 31, December 31,
2005 2004
Cable television 458'074 444'037
Internet 173'810 147'409
Telephony 103'880 42'424
Business solutions 46'396 28'169
Wholesale and other 49'658 47'109
Total 831'818 709'148
Revenues are recognized at the time the service is rendered to the customer, when persuasive evidence of an
arrangement exists, the price to the customer is fixed and determinable, and when collectibility is reasonably
assured. Charges for services that are billed in advance are deferred and recognized when earned. Rental
revenues are recognized when earned. Maintenance service revenues are recognized when the performance
of the service has been completed. Unbilled receivables are primarily related to services performed but not
yet billed.
Installation revenue related to services over the cable network is recognized as revenue in the period in
which the installation occurs to the extent these revenues are less than direct selling costs, which are
expensed as incurred. To the extent that installation revenue exceeds direct selling costs, the excess fees are
deferred and amortized over the expected subscriber life.
Multiple Element Arrangements
The Company enters into transactions that include multiple deliverables, which may include any
combination of services, installation and hardware. A deliverable is considered a separate element for
accounting purposes when there is objective and reliable evidence of fair value of the undelivered elements
and the delivered item has stand alone value to the customer. If there is objective and reliable evidence of
fair value for all elements of accounting in an arrangement, the arrangement consideration is allocated to the
separate units of accounting based on their relative fair values. In cases where objective reliable evidence
only exists for the undelivered elements of accounting in an arrangement, the residual value method is used
to determine the revenue to be recognized for the delivered elements.
Barter Transactions
From time to time the Company enters into arrangements for the exchange of fiber and ducts. Certain of
these arrangements include cash payments in addition to the exchange. Exchanges of similar assets are
recorded at cost. Exchanges of dissimilar assets are recorded at fair values, where the fair value of the asset
has been determined using the replacement cost. Gains or losses on these exchanges are recognized in the
consolidated statements of operations and comprehensive loss at the date of the exchange.

Advertising Expense
The Company charges the cost of advertising to selling, general and administrative expense as incurred.
Advertising costs were CHF 34.6 million and CHF 26.3 million during the years ended December 31, 2005
and 2004, respectively.
Derivative Financial Instruments
The Company accounts for derivative financial instruments pursuant to the guidance in SFAS No. 133,
“Accounting for Derivative Instruments and Hedging Activities,” as amended (together “SFAS 133”).
SFAS 133 requires that all such instruments be recorded on the balance sheet at fair value. Changes in the
fair value of derivatives not qualifying for hedge accounting treatment under SFAS 133 are recorded each
period in the consolidated statements of operations and comprehensive loss. To the extent the derivative is
designated as a hedge for accounting purposes and qualifies for hedge accounting treatment under SFAS
133, changes in the fair value of derivatives are recorded each period in the results of operations or in
accumulated other comprehensive loss depending on its hedge designation. The ineffective portion of
hedges is recognized in the consolidated statements of operations and comprehensive loss. The Company
has recorded the change in the fair value of certain qualifying cash flow hedges each period in accumulated
other comprehensive loss (“OCI”). Changes in the fair value of other derivative and embedded derivative
instruments are recorded as other income or expense in the consolidated statements of operations and
comprehensive loss.
The Company uses derivative financial instruments such as foreign currency contracts, interest rate and
cross currency swaps to hedge its risks associated with interest rate and foreign currency fluctuations. Such
derivative financial instruments are stated at fair value.
Derivative instruments that are deemed to be hedges for accounting purposes are classified as either fair
value hedges when they hedge the exposure to changes in the fair value of a recognized asset or liability; or
cash flow hedges where they hedge exposure to variability in cash flows that is either attributable to a
particular risk associated with a recognized asset or liability or a forecasted transaction.
Gains and losses for each hedge type are recorded as follows:
• Fair value hedges — Unrealized and realized gains and losses are recorded immediately in the
consolidated statements of operations and comprehensive loss in the period incurred in other income
and expense.
• Cash flows hedges — Unrealized gains and losses are recognized in OCI in the period incurred and
any ineffective portion is recognized in earnings. Gains and losses recognized in OCI are transferred
to the consolidated statements of operations and comprehensive loss during the period in which the
hedged item affects the net profit and loss.
Unrealized gains or losses on derivatives that do not qualify for hedge accounting are included in other
income or expense for the period. If a hedged forecasted transaction is no longer expected to occur, the net
cumulative unrealized gain or loss recognized in OCI is transferred to the consolidated statements of
operations.
Hedge accounting is discontinued when the hedging instrument expires or is sold, the underlying risk is
recognized, terminated or exercised, or no longer qualifies for hedge accounting.
F- 14

Instruments that are embedded in contracts but whose terms are not considered clearly and closely related to
the contract terms are separated and recorded at fair value. Changes in fair value of the instruments are
recorded as a component of other income or expense in the consolidated statements of operations and
comprehensive loss.
Recently Issued Accounting Standards
In December 2004, the FASB issued SFAS No. 153, “Exchanges of Nonmonetary Assets an Amendment of
APB Opinion No. 29” (“SFAS No. 153”), which eliminates the exception for nonmonetary exchanges of
similar productive assets and replaces it with a general exception for exchanges of nonmonetary assets that
do not have commercial substance. SFAS No. 153 will be effective for nonmonetary asset exchanges
occurring in fiscal periods beginning after June 15, 2005. The Company does not believe the adoption of
SFAS No. 153 will have a material impact on its consolidated financial statements.
In December 2004, the FASB issued SFAS No. 123 (revised 2004), “Share-Based Payment” (“SFAS No.
123R”). SFAS No. 123R, which is a revision of SFAS No. 123 and supersedes APB Opinion No. 25,
establishes standards for the accounting for transactions in which an entity exchanges its equity instruments
for goods or services, primarily focusing on transactions in which an entity obtains employee services.
SFAS No. 123R generally requires companies to measure the cost of employee services received in
exchange for an award of equity instruments (such as stock options and restricted stock) based on the grantdate
fair value of the award, and to recognize that cost over the period during which the employee is
required to provide service (usually the vesting period of the award). SFAS No. 123R also requires
companies to measure the cost of employee services received in exchange for an award of liability
instruments (such as stock appreciation rights) based on the current fair value of the award, and to remeasure
the fair value of the award at each reporting date.
SFAS 123R applies to awards that are granted, modified, or settled in fiscal years beginning after
December 15, 2005. Early adoption is encouraged for periods in which financial statements have not been
issued. The provisions of SFAS 123R allow companies to adopt the standard on a prospective basis or to
restate all periods for which SFAS 123 was effective. The Company does not believe the adoption of SFAS
123R will have a material impact on its consolidated financial statements.
In May 2005, the FASB issued SFAS No. 154, “Accounting Changes and Error Corrections, a replacement
of APB Opinion No. 20 and FASB Statement No. 3” (“SFAS No. 154”). SFAS No. 154 provides guidance
on the accounting for and reporting of accounting changes and error corrections. SFAS No. 154 requires
retrospective application to prior period financial statements for changes in accounting principle, unless it is
impracticable to determine either the period-specific effects or the cumulative effect of the change. SFAS
No. 154 also requires that retrospective application of a change in accounting principle be limited to the
direct effects of the change. Indirect effects of a change in accounting principle should be recognized in the
period of the accounting change. SFAS No. 154 further requires a change in depreciation, amortization, or
depletion method for long-lived, non-financial assets to be accounted for as a change in accounting estimate
affected by a change in accounting principle. SFAS No. 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005. The adoption of SFAS No.
154 did not have a material impact on the Company's financial condition or results of operations.
In June 2005, the FASB ratified the EITF consensus on Issue 05-6, “Determining the Amortization Period
for Leasehold Improvements” (“EITF 05-6”), which provides guidance on the determination of the
amortization period for leasehold improvements that are purchased subsequent to the inception of the lease.
EITF 05-6 states that leasehold improvements acquired in a business combination or purchased subsequent
to the inception of the lease should be amortized over the lesser of the useful life of the asset or the lease
term that includes reasonably assured lease renewals as determined on the date of acquisition of the
F- 15

leasehold improvement. The guidance should be applied prospectively. The adoption of EITF 05-6 did not
have a material impact on the Company’s financial condition or results of operations.
In October 2005, the FASB issued FASB Staff Position No. 13-1, “Accounting for Rental Costs Incurred
during a Construction Period” (“FSP 13-1”). The FSP addresses the accounting for rental costs associated
with operating leases that are incurred during a construction period and requires rental costs associated with
ground or building operating leases that are incurred during a construction period to be recognized as rental
expense. The provisions of this FSP are required to be applied to the first reporting period beginning after
December 15, 2005. The Company does not believe the application of FSP 13-1 will have a material impact
on its consolidated financial statements.
3. Acquisitions
During 2005, the Company entered into four business combination transactions and acquired the following
interests:
(a) the remaining 41.5% of the voting shares of KASAG on January 3, 2005 (cable network);
(b) 100% of the voting shares of Unified Business Solutions AG on May 24, 2005 (Internet voice
information technology);
(c) 100% of the voting shares of Radio TV Riedo AG (cable network) on June 30, 2005; and
(d) 100% of the voting shares of Medicom AG (cable network) on June 27, 2005.
In the aggregate, the total cost of the above listed acquisitions amounted to CHF 7.3 million including
acquisition costs of approximately CHF 0.2 million. The fair value of the net assets acquired is CHF 4.3
million, and the excess of the cost over the fair value of net assets recognized as goodwill is CHF 3.0
million.
4. Property and Equipment
(CHF in thousands)
F- 16
December 31, December 31,
2005 2004
Communications equipment 1'782'035 1'594'302
Land and buildings
Other equipment and
21'962 47'969
construction-in-progress 250'707 246'399
Subtotal 2'054'704 1'888'670
Accumulated depreciation (628'854) (383'653)
1'425'850 1'505'017
The carrying value of communication equipment held under capital lease is CHF 45.7 million and CHF 48.2
million at December 31, 2005 and 2004, respectively. Depreciation expense recognized includes the
depreciation of the assets under capital lease.

Disposal of Real Estate
During 2005, the Company completed the sale and leaseback of the headquarters’ office building in Zurich.
Net cash proceeds of CHF 32.6 million were received. Upon execution of the sale and leaseback transaction,
property costs of CHF 24.3 million and accumulated depreciation of CHF 4.1 million were removed from
the Company’s books resulting in a gain of CHF 12.4 million being amortized over the term of the operating
lease until March 2020. No gain was recorded at the time of the transaction. Total future minimum lease
payments under the operating lease amount to CHF 26.3 million.
5. Intangible Assets
Finite-lived intangible assets consist of:
(CHF in thousands)
F- 17
December 31, December 31,
2005 2004
Customer lists 221'942 221'998
Accumulated amortization (23'386) (12'548)
198'556 209'450
Estimated aggregate amortization expense for customer relationships for each of the five succeeding years
from December 31, 2005, is as follows: CHF 10.1 million in 2006, CHF 10.1 million is 2007, CHF 10.1
million in 2008, CHF 10.1 million in 2009, CHF 10.1 million in 2010 and CHF 148.1 million thereafter.
6. Long-Term Debt and Capital Leases
Long-term debt and capital leases consist of:
(CHF in thousands)
December 31, December 31,
2005 2004
Senior Secured Notes
Series A CHF 390 million (due 2010) 256'777 -
Series A EUR 200 million (due 2010) 243'878 -
Series B EUR 375 million (due 2012) 518'280 -
Senior Credit Facility - 1'202'222
Bank Facility (Facility A Term Loan) 268'711 -
9.375% EUR 290 million bonds (Senior Notes) 451'629 437'051
Capital lease obligations 27'276 28'617
Mortgages and other long-term debt 5'818 3'491
Total debt and capital leases 1'772'369 1'671'381
Less: Current portion of debt and capital leases (3'058) (25'813)
Long-term debt and capital leases 1'769'311 1'645'568
The Company has a revolving credit facility (the “Existing Revolving Credit Facility”) of CHF 150.0
million available, which matures in 2010. At December 31, 2005, no amount had been drawn under the
Existing Revolving Credit Facility. The interest rate applicable to the Existing Revolving Credit Facility is

CHF LIBOR plus a margin of 2.25%, and there is an annual commitment fee of 0.75% payable on the
undrawn amount of the facility.
The current portion of long-term debt in the amount of CHF 23.2 million was reclassified to long-term debt
at December 31, 2004 in accordance with SFAS No. 6, “Classification of Short-Term Obligations Expected
To Be Refinanced,” as the Company refinanced this obligation during 2005 with long-term senior credit
facilities.
Refinancing of Debt
April 2004 Refinancing
In April 2004, the Company entered into a refinancing of its senior bank debt, most of which was held by
debt holders who received equity interests in Glacier Holdings S.C.A. on November 12, 2003. The
refinancing agreement provided for credit facilities (“Senior Credit Facility”) of up to the equivalent of CHF
1.4 billion (including CHF 150.0 million revolving credit facility) which matures from April 2011 through
April 2014. As described in Note 2 under the caption “Deferred Financing Costs,” a loss on modification of
debt of CHF 53.8 million was recognized as part of the April 2004 refinancing related to substantial
modification of terms with certain creditors.
Advances under the Senior Credit Facility bore interest for each interest period at a rate per annum equal to
LIBOR or EURIBOR, as applicable, plus margins ranging from 2.25% to 3.60% on the Term Loans and
2.25% for the revolving credit facility plus commitment fees.
The margins on the Senior Credit Facility were subject to a margin adjustment mechanism, pursuant to
which the margin was adjusted downwards at specified increments if certain ratios of total net debt to
earnings before income taxes, depreciation and amortization (“EBITDA”) were achieved and maintained,
subject to a minimum margin of 1.25% per year.
In addition, as part of the refinancing, the Company issued 9.375% EUR 290.0 million bonds (Senior
Notes) which mature on April 15, 2014, bearing a coupon interest rate of 9.375% per year, payable semiannually.
April 2005 Refinancing
As part of its strategic finance plan, the Company refinanced the Senior Credit Facility on April 8, 2005, by
issuing floating rate Senior Secured Notes (Series A CHF 390.0 million and EUR 200.0 million and Series
B EUR 375.0 million) with net proceeds of CHF 1.252 billion and maturities in the years 2010 and 2012
and replaced the revolving credit facility with a new CHF 150.0 million Existing Revolving Credit Facility.
As described in Note 2 under the caption “Deferred Financing Costs”, a loss on modification of debt of
approximately CHF 15.4 million was recognized as part of the April 2005 refinancing related to substantial
modification of terms with certain creditors.
These Senior Secured Notes are subject to certain covenants which will limit, among other things, the
Company’s ability to: incur additional indebtedness, pay dividends or make other distributions, make certain
other restricted payments and investments, create or permit to exist liens, impose restrictions on the ability
of the subsidiaries to pay dividends or make other payments, transfer or sell assets, merge or consolidate
with other entities, and enter into transactions with affiliates. Each of the covenants is subject to a number
of exceptions and qualifications.
The Senior Secured Notes benefit from credit support in the form of a first-ranking security on certain
intercompany loans and the shares in Cablecom GmbH (share pledge).
F- 18

December 2005 Refinancing
In connection with the Liberty Global Switzerland Inc.’s acquisition of Cablecom Holdings AG and
subsidiaries, Cablecom Luxembourg S.C.A. was required to effect a change of control offer (the Change of
Control Offer) for the existing Senior Secured Notes at 101% of their respective principal amounts, and for
the Existing Revolving Credit Facility. In order to fund the Change of Control Offer, on December 5, 2005,
Cablecom Luxembourg S.C.A. entered into a bank facility agreement (the ”Bank Facility”) with certain
banks and financial institutions as lenders. The Bank Facility provides the terms and conditions upon which
(i) the lenders have made available to the Company two term loans (“Facility A Term Loan” and “Facility B
Term Loan”) in an aggregate principal amount not to exceed CHF 1.33 billion and (ii) the revolving lenders
under the Company's CHF 150.0 million Existing Revolving Credit Facility have agreed to make available
to the Company and certain of its subsidiaries a new revolving credit facility (the “New Revolving Credit
Facility”) in an aggregate principal amount not to exceed CHF 150.0 million in replacement of the Existing
Revolving Credit Facility. To date, the Existing Revolving Credit Facility remains in place and the New
Revolving Credit Facility will not be available for borrowing until the Existing Revolving Credit Facility is
cancelled.
The Bank Facility is subject to certain covenants which will limit, among other things, the Company’s
ability to: incur additional indebtedness, pay dividends or make other distributions, make certain other
restricted payments and investments, create or permit to exist liens, impose restrictions on the ability of the
subsidiaries to pay dividends or make other payments, transfer or sell assets, merge or consolidate with other
entities, and enter into transactions with affiliates. Each of the covenants is subject to a number of
exceptions and qualifications. The Bank Facility also requires the Company to maintain certain ratios of
total debt to EBITDA, senior debt to EBITDA, EBITDA to total cash interest and EBITDA to debt service.
These covenants take affect beginning on March 31, 2006.
The Bank Facility benefits from credit support in the form of a first-ranking security on certain
intercompany loans and the shares in Cablecom GmbH (share pledge).
Pursuant to the Change of Control Offer, on December 8, 2005 the Company used CHF 268.7 million of
proceeds from the Facility A Term Loan under the Bank Facility to (i) purchase CHF 131.0 million of the
Series A CHF Senior Secured Notes, (ii) EUR 81.4 million of Series A and B EUR Senior Secured Notes,
(iii) EUR 0.1 million of the Senior Notes and (iv) fund the costs and expenses of the Change of Control
Offer. In addition, the lenders under the Existing Revolving Credit Facility waived their prepayment right
resulting from the change of control.
The Facility A Term loan is a CHF 618.0 million facility, maturing December 31, 2010 bearing interest rate
equal to CHF LIBOR plus 2.50% through June 5, 2007 (and thereafter the margin adjusts based on a
leverage ratio).
F- 19

The following is an overview of the refinancing as of December 8, 2005:
(CHF in thousands)
Senior Secured Original Original Amount
Notes and Bonds Interest Rate Maturity Par Amount Refinanced
Series A CHF Notes LIBOR +2.625% 2010 CHF 390'000 CHF 131'000
Series A EUR Notes EURIBOR +2.5% 2010 EUR 200'000 EUR 42'100
Series B EUR Notes EURIBOR +2.75% 2012 EUR 375'000 EUR 39'300
EUR 290 million bonds 9 3/8% 2014 EUR 290'000 EUR 100
As a result of this refinancing, the Company incurred charges relating to fees paid and amortization of
financing fees. As described in Note 2 under the caption “Deferred Financing Costs,” a loss on modification
of debt of approximately CHF 16.4 million was recognized as part of the December 2005 refinancing
related to substantial modification of terms with certain creditors.
At December 31, 2005, principal debt repayments, excluding capital leases (see Note 13 for maturity of
capital leases), mortgages and other long term debt, of approximately CHF 773.0 million are due in 2010,
and CHF 975.0 million are due after January 1, 2011, respectively. These amounts represent the
undiscounted principal amounts due by the respective dates.
January 2006 Refinancing
On December 15, 2005, the Company notified the remaining bondholders to redeem all outstanding Senior
Secured Notes not tendered in the Change of Control Offer (the Redemption), at a redemption price of
102% of their respective principal amounts, plus accrued and unpaid interest. On January 20, 2006, the
Company used CHF 349.8 million and CHF 355.8 million from Facility A and Facility B CHF Term Loans,
respectively and EUR 229.1 million from Facility B EUR Term Loan to fund the Redemption.
The Facility B Term Loan, which matures September 30, 2012, includes a CHF 335.8 million facility and a
EUR 229.1 million facility. The interest rate applicable to principal denominated in Swiss Francs under the
Facility B Term Loan is equal to CHF LIBOR plus a margin of 2.75% for the first nine months following
draw-down and thereafter 2.50%. The interest rate applicable to principal denominated in EUR under the
Facility B Term Loan is equal to EURIBOR plus a margin of 2.50%.
7. Financial Derivatives
Interest Rate Swaps
In connection with the April 2004 refinancing, the Company terminated its previous derivative instruments
and entered into three 5-year interest rate swaps effective July 15, 2004 to hedge the interest rate risk related
to the new, floating-rate debt under the Senior Credit Facility. The swaps, known as interest rate step-up
swaps, effectively converted floating-rate debt to fixed-rate debt at a series of fixed rates which adjust or
“step up” quarterly throughout the 5-year hedge period, ranging from 0.6% to 3.33%. These instruments
provided 90% coverage of the outstanding principal amount of the Senior Credit Facility as of December
31, 2004.
As a result of the April 2005 refinancing the original underlying hedged cash flows of the Senior Credit
Facility were no longer probable to occur. As a result, the Company reclassified a loss of CHF 17.8 million
F- 20

from accumulated other comprehensive loss into the consolidated statements of operations. These interest
rate swaps have been terminated in connection with the December 2005 refinancing.
On April 15, 2005, the Company entered into three 3-year interest rate swaps, effective July 15, 2005 to
hedge the interest rate risk related to the Senior Secured Notes over and above the interest rate risk hedged
by the step-up swaps. The new swaps, known as interest rate top-up swaps, effectively converted floatingrate
CHF debt to fixed-rate CHF debt. These swaps were designated as cash flow hedges at the inception of
the swaps and have been terminated in connection with the December 2005 refinancing.
In December 2005, the Company entered into two interest rate swaps effective January 20, 2006 to hedge
the interest rate risk related to the new Bank Facility. The swaps convert floating rate debt to fixed rate debt
ranging from 2.1875% and 2.3415%.
Interest rate swaps related to the Senior Credit Facility, Senior Secured Notes and Bank Facility amount to:
(CHF in thousands)
Notional amount (aggregate) 1'330'000
Fair value, net (7'022)
Cross-Currency Swaps
F- 21
December 31, December 31,
2005 2004
1'080'000
(19'586)
On April 15, 2004 the Company entered into two cross-currency swap transactions to mitigate exposure to
fluctuations in foreign exchange rates in respect of the Senior Notes. Such instruments provide a EUR to
CHF swap of the full principal amount, EUR 290.0 million, of the Senior Notes and related interest
payments during the period from April 2004 until April 2007. The Company discontinued the hedge
accounting of these two swaps through de-designation as of October 31, 2005. The gains and losses that are
recorded in accumulated other comprehensive income (loss) as of October 31, 2005 will remain in
accumulated other comprehensive income (loss) until the forecasted transactions that give rise to the
variability in future cash flows occur. Future changes in the derivative’s fair value subsequent to the
discontinuance of hedge accounting will be reported in the consolidated statements of operations.
Cross-currency swaps related to the Senior Notes amount to:
(CHF in thousands)
December 31, December 31,
2005 2004
Notional amount (aggregate) 451'629 437'051
Fair value, net 974 (1'668)
The Senior Credit Facility included both EUR and USD denominated tranches. The USD tranche of the
Senior Credit Facility was converted from USD into CHF by entering into two 5-year cross currency swaps,
effective July 8, 2004, with aggregate notional amounts of USD 115.0 million. These currency swap
transactions hedged exposure to fluctuations in foreign exchange rates in respect of the foreign currency
portion of the Senior Credit Facility. In April 2005, the Company repaid the USD tranche of the Senior
Credit Facility. As a result of the April 2005 refinancing, the cash flows associated with these swaps were

no longer probable to occur and the Company reclassified a loss of CHF 14.7 million from accumulated
other comprehensive income (loss) into the consolidated statements of operations. In addition, the Company
entered into two off-setting USD to CHF cross currency swaps, resulting in a net zero notional amount on
the four swap transactions. These swaps were terminated in the first quarter of 2006.
The EUR tranche Senior Credit Facility was converted from EUR into CHF by entering into two 5-year
cross currency swaps, effective July 8, 2004, with aggregate notional amounts of EUR 124.5 million. These
currency swap transactions hedge exposure to fluctuations in foreign exchange rates in respect of the foreign
currency portion of the Senior Credit Facility. As the result of the April 2005 refinancing, the cash flows
associated with these swaps were no longer probable to occur. As a result, the Company reclassified a gain
of CHF 2.5 million from accumulated other comprehensive income (loss) into the consolidated statements
of operations.
Effective April 28, 2005 six cross currency swaps were put in place in order to hedge the foreign exchange
risk of the Senior Secured Notes for a period of three years. These swaps were not designated as hedges
under hedge accounting even though together with the two existing EUR to CHF currency swaps mentioned
above (with an effective date of July 8, 2004), they provided a EUR to CHF swap of the full principal
amount of the Senior Secured Notes and related interest payments. In connection with the December 2005
refinancing, all eight cross currency swaps have been terminated.
Cross-currency swaps related to the Senior Credit Facility amount to:
(CHF in thousands)
Notional amount (aggregate) -
Fair value, net (2'468)
Forward Contracts
F- 22
December 31, December 31,
2005 2004
323'098
(12'180)
Following the December 2005 refinancing, the Company entered into two forward contracts in order to
hedge for the EUR to CHF exposure in relation to the next interest payment as well as the announced
repayment of the Senior Secured Notes taking place in January 2006.
Forward contracts related to the Senior Secured Notes amount to:
(CHF in thousands)
Notional amount (aggregate) 787'097
Fair value, net 5'936
December 31, December 31,
2005 2004
-
-

8. Income Taxes
(CHF in thousands)
Current expense 1'675
Deferred expense 3'366
Income tax expense 5'041
F- 23
Year Ended Year Ended
December 31, December 31,
2005 2004
4'310
-
4'310
Major operations are located in Switzerland and, consequently, the taxes payable are mainly owed to Swiss
tax authorities. Taxes in Switzerland are not based on consolidated accounts but, rather are levied on a
cantonal basis on the level of each legal entity.
Taxable income in Switzerland is allocated among the 26 cantons. Cantons have different income tax rates.
The Company’s weighted average statutory tax rate for Federal and Cantonal taxes is 22.10% for the year
ended December 31, 2005 and 23.50% for the year ended December 31, 2004. The primary differences
between the statutory tax rate and the effective tax rate is attributable to various expenses that are not
deductible for income tax purposes and net operating loss carryforwards that cannot be recognized for
financial reporting purposes as the Company cannot conclude it is more likely than not that the
carryforwards will be utilized in future years.
(CHF in thousands)
Year Ended Year Ended
December 31, December 31,
2005 2004
Loss before taxes
Weighted-average Swiss
345'634 163'311
statutory income tax rate
Income tax benefit at the
weighted-average statutory
22.10 % 23.50 %
tax rate 76'385 38'378
Permanent differences (32'759) (7'586)
Change in valuation allowance (52'354) (31'766)
Income not taxed at statutory rate 3'487 -
Other 200 (3'336)
Income tax expense (5'041) (4'310)
Permanent differences are primarily comprised of stock based compensation and the push down of Glacier
Holdings S.C.A. expenses which are not deductible for tax purposes.
Due to a change in the tax law in the Canton of Zurich, the Company’s weighted average Swiss statutory
income tax rate decreased from 23.50% in 2004 to 22.10% in 2005. The change in the valuation allowance
of CHF 1.4 million is the result of the tax rate change of CHF 50.9 offset by the change in the net deferred
taxes before valuation allowance of CHF 52.4 million.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the deferred tax assets and (liabilities) are as follows:
(CHF in thousands)
F- 24
December 31, December 31,
2005 2004
Net operating loss carryforwards 924'679 981'767
Investments (80'866) (84'713)
Post-employment benefits 16'737 16'098
Deferred subscriber revenue 10'578 15'313
Property, plant and equipment
Accrued expenses and
(23'923) (47'360)
other non-current liabilities 2'960 (22'364)
Other 2'514 (4'132)
Deferred tax assets, net 852'679 854'609
Valuation allowance (856'045) (854'609)
Net deferred tax liability (3'366) -
The Company establishes a valuation allowance against its deferred tax assets that it deems more likely than
not will not be recovered in whole or in part in the future.
Tax net operating loss carryforwards expire in the following years:
(CHF in thousands)
2006 4'084
2007 53'146
2008 1'577'343
2009 1'847'158
2010 264'351
2011 431'300
2012 2'602
Taxable net operating losses 4'179'984
9. Fair Values of Financial Instruments
Carrying amounts of the Company’s financial instruments including cash and cash equivalents, accounts
receivable, accounts payable and accrued expenses reported in the consolidated balance sheets approximate
fair value. The carrying amount of the Senior Secured Notes and Bank Facility approximate fair value as
the debt does not have a fixed interest rate. The EUR 290.0 million bonds (Senior Notes) have an estimated
fair value and carrying value of CHF 516.0 million and CHF 451.6 million at December 31, 2005
respectively, and an estimated fair value and carrying value of CHF 499.8 million and CHF 437.1 million,
respectively, at December 31, 2004.

10. Related Party Transactions
Material transactions between the Company and related parties included:
(CHF in thousands)
F- 25
Rendering of
Service by/ Amounts Amounts
Sales Purchases Owed by Owed to
Related from Related Related Related
Parties Parties Parties Parties
Year ended December 31, 2005
Liberty Global Switzerland Inc. and related companies (2)
- 5'151 17'650 4'875
Glacier - 4'252 (1)
- -
Total entities with control over the Company - 9'403 17'650 4'875
Other related parties
Key management personnel of the Company
1'572 1'913 691 4
Director - 1'749 - 312
Former Director - 1'942 - -
Total key management control
Year ended December 31, 2004
- 3'691 - 312
Glacier 461 8'607 (1)
2'295 15'067 (3)
Glacier Consortium 4'445
Total entities with control over the Group 461 13'052 2'295 15'067
Other related parties
Key management personnel of the Company
3'050 1'936 400 2
Director - 630 - 27
Former director - 1'875 - -
Total key management personnel - 2'505 - 27
(1) Costs totaling CHF 4.3 million and CHF 8.6 million have been incurred by Glacier on behalf of the
Company and have been recorded as a component of SG&A during the period from January 1, 2005
to October 24, 2005 and the year ended December 31, 2004, respectively.
(2) Costs have been incurred since October 24, 2005.
(3) Cablecom agreed to pay a special distribution of CHF 15.0 million to Glacier which has been
recorded as a transfer to Parent in the consolidated statement of shareholders’ equity and in accrued
expenses in the balance sheet at December 31, 2004
11. Management Equity Participation Plan
Glacier Holding S.C.A. and one of its shareholders (collectively, “Investees”) together with Glacier
Holdings S.C.A.’s principal shareholders (collectively, the “Principal Shareholders”) implemented a
Management Equity Participation Plan (the “MEPP”) in November 2004 for the benefit of certain
employees of the Company and one non-employee consultant. The MEPP allowed these individuals
(“Participants”) to purchase interests in newly created entities (“Investment Vehicles”) which in turn
acquired shares and convertible securities of Investees representing approximately 8% of Investees’
outstanding equity on a fully-converted basis.

Through the Investment Vehicles, the Participants vest, in tranches of 20% per year beginning retroactively
as of June 2003, in the right to receive the increase in fair value of Investees’ shares and convertible
securities above a series of defined thresholds. Vesting is accelerated upon certain events such as a change
of control or public offering. Any distributions or proceeds up to such thresholds otherwise payable to the
Investment Vehicles must be remitted to the Principal Shareholders. Participants paid cash of
approximately CHF 3.0 million to participate in the MEPP and certain Participants also provided a personal
guarantee to the Principal Shareholders that such remittance up to and including a final liquidation of
Investees’ would not be less than a defined amount, approximately CHF 14.5 million in aggregate.
Many of the terms of the MEPP, including the Investment Vehicles’ acquisition price of Investees’ shares
and convertible securities, were determined in 2003 as part of the negotiations among the Company’s
creditors to establish the terms of the November 12, 2003 change of control and debt modification
transactions. The Principal Shareholders’ intent was to enable Participants to benefit from increases in fair
value of the Company subsequent to the November 12, 2003 transactions, and not to provide equity
participation at a discount. However, certain legal and administrative terms were not finalized until
November 2004, at which time the fair value of the Company, and therefore the Investees, had increased,
resulting in a positive intrinsic value as of the November 2004 accounting date of grant. Based on a
valuation of Cablecom AG performed by a third-party expert as of December 31, 2004, the intrinsic value
of securities sold to employee Participants via the Investment Vehicles was estimated to be approximately
CHF 35.0 million on the date of grant and as of December 31, 2004, of which CHF 20.4 million been
recorded in 2004 by the Company as compensation expense and an increase in share capital in accordance
with AIN-APB 25, “Accounting for Stock Issued to Employees: Accounting Interpretations of APB
Opinion No. 25.” This interpretation requires that an equity-based plan or transaction that is established or
financed by a principal stockholder who has the ability, directly or indirectly, to control the Company should
be treated as a contribution to capital by the principal stockholder and accounted for as an expense of the
Company, if the economic substance is to provide compensation to individuals for goods or services
provided to the Company, to the extent that such an expense would be recorded under APB Opinion No. 25
if the plan had been awarded by the Company itself. Based on sale of the former parent on October 24,
2005, the intrinsic value of securities sold to employee participants via the Investment Vehicles was
estimated to be approximately CHF 140.0 million of which CHF 119.6 million has been recorded in 2005 as
compensation expense and an increase in share capital. Also, associated with the MEPP are CHF 3.6
million of Social Security taxes which are payable by the Company and recorded in SG&A in 2005.
As the plan is similar to a stock appreciation right provided the Principal Shareholders, the Company has
accounted for employee compensation costs associated with the MEPP as a variable plan in accordance with
FASB Interpretation No. 28 “Accounting for Stock Appreciation Rights and Other Variable Stock Option or
Award Plans” under which compensation expense for each vesting tranche is measured based on the
intrinsic value of the award at each balance sheet date. As the plan would be treated as a liability award
under SFAS No. 123, the measurement of compensation expense that would have been recorded by the
Company, had it elected to adopt the measurement and recognition provisions of SFAS 123, would not have
differed, since the Company would have recorded the intrinsic value of each tranche based on its respective
vesting percentage at December 31, 2004. As of December 31, 2005 the Company has recognized the
intrinsic value of each tranche assuming 100% vesting. As a result of the sale of the Company to Liberty
Global Switzerland, Inc. on October 24, 2005, the sale was deemed to be an accelerated vesting event under
the terms of the MEPP.
F- 26

For the awards provided to the nonemployee consultant, the Company recorded 100% of the fair value, or
approximately CHF 3.3 million and CHF 7.3 million, as expense during 2004 and 2005, respectively, as the
fair value of services provided by the consultant. The consultant agreement terminated on October 24, 2005.
The Company provided options to a former executive in 2005. The option granted the former executive the
right to purchase shares and convertible securities similar to those of the MEPP. These options fully vested
due to the sale of the Company on October 24, 2005 and were exercised during 2005. As a result, the
Company recognized compensation expense of approximately CHF 17.1 million in 2005 related to that
award.
12. Employee Benefit Plans
Annual service cost for the employee benefit plans is determined using the projected unit credit actuarial
method, and prior service cost is amortized on a straight-line basis over the average remaining service
period of the employees.
The board of trustees of the pension fund has established and maintains an investment policy for assets. The
investment strategies are long-term in nature and designed to meet the following objectives:
• Ensure that funds are available to pay benefits as they become due;
• Maximize the trusts total returns subject to prudent risk taking; and
• Preserve and/or improve the funded status of the trusts over time.
Allocations to real estate will occur over multiple time periods. Assets targeted to real estate, but not yet
allocated, will be invested in fixed income securities with corresponding adjustments to fixed income
rebalancing guidelines.
The Company reviews the asset mix of the funds on a regular basis. Generally, each fund’s asset mix will
be rebalanced to the target mix as individual portfolios approach their minimum or maximum levels.
F- 27

The following is a summary of the funded status of the pension plans:
(CHF in thousands)
F- 28
December 31, December 31,
2005 2004
Projected benefit obligation
at beginning of year 298'164 282'574
Service cost 10'191 8'507
Interest cost 11'057 10'469
Actuarial losses (gains) 6'089 (4'907)
Plan participants' contributions 9'655 8'311
Benefits paid (6'608) (6'790)
Plan amendments (48'384) -
Settlement (101'014) -
Projected benefit obligation
at end of year
Fair value of plan assets
179'150 298'164
at beginning of year 202'832 190'663
Actual return on plan assets 9'868 (128)
Company contributions 13'054 10'776
Plan participants' contributions 9'655 8'311
Benefits paid (6'608) (6'790)
Settlement (91'854) -
Fair value of plan assets at end of year
Funded status of the plan
136'947 202'832
Funded status of the plan (42'203) (95'332)
Unrecognized net actuarial losses 5'072 4'649
Unrecognized Prior Service Benefit (43'104) -
Net liability in the balance sheet (80'235) (90'683)
The accumulated benefit obligation at December 31, 2005 and 2004 is CHF 133.9 million and CHF 211.0
million, respectively. Total expected contributions to be made by the Company in 2006 are expected to be
CHF 16.1 million.
Actuarial Assumptions
The measurement date used to determine pension plans is December 31. The actuarial assumptions used to
compute the net periodic pension cost are based upon information available as of the beginning of each year,
specifically, market interest rates, past experience and management’s best estimate of future economic
conditions. Changes in these assumptions may impact future benefit costs and obligations. In computing
future costs and obligations, the Company must make assumptions about such items as employee mortality
and turnover, expected salary and wage increases, discount rate, an expected long-term rate of return on plan
assets.
Annually, the Company sets its discount rate based upon the yields on high-quality fixed-income
investments available at the measurement date and expected to be available during the period to maturity of
the pension benefits.

The expected rate of return on plan assets is the long-term rate of return the Company expects to earn on
trust assets. The rate of return is determined by the investment composition of the plan assets and the longterm
risk and return forecast for each asset category. The forecasts for each asset class are generated using
historical information as well as an analysis of current and expected market conditions. The expected risk
and return characteristics for each asset class are reviewed annually and revised, as necessary, to reflect
changes in the financial markets. To compute the expected return on plan assets, the Company applies an
expected rate of return to the fair value of the plan assets.
The weighted average assumptions used in determining benefit obligations were as follows:
(CHF in thousands)
Expected rate of salary increase 2.00 %
Discount rate 3.25 %
Return on plan assets 4.50 %
F- 29
December 31, December 31,
2005 2004
2.00 %
3.75 %
4.50 %
The net periodic benefit cost recorded in the consolidated statement of operations consisted of the following
components:
(CHF in thousands)
Year Ended Year Ended
December 31, December 31,
2005 2004
Service cost, net 10'191 8'507
Interest cost 11'057 10'469
Expected return on plan assets (9'511) (8'860)
Settlement
Net periodic
(9'152) -
pension cost 2'585 10'116
Plan assets were comprised of the following instruments:
(CHF in thousands)
Year Ended Year Ended
Long Term December 31, December 31,
Target 2005 2004
Cash 2% 35 %
Equity securities 31% 30 %
Real estate 10% 18 %
Debt securities 50% 14 %
Other 7% 3 %
100 %
35 %
31 %
20 %
10 %
4 %
100 %
Strategic pension plan asset allocations are determined by the objective to achieve an investment return
which, together with the contributions paid, is sufficient to maintain reasonable control over the various
funding risks of the plans. Based upon current market and economic environments, actual asset allocation
may periodically deviate from policy targets as determined by the plan trustees and by the pension board.

The expected future cash flows to be paid by the Company in respect of pensions at December 31, 2005
were as follows:
(CHF in thousands)
Pension Plan
Expected future benefit payments
2006 3'379
2007 3'534
2008 3'688
2009 4'170
2010 4'781
2011 to 2015 33'515
Pension Plan Change
The Company cancelled their contract with its pension fund and introduced a new pension fund on
January 1, 2006 resulting in a net settlement.
In addition the Company amended its existing pension plan resulting in a reduction of the projected benefit
obligation by CHF 48.4 million. The decision was taken by management with the consent of the Employee
Committee and was the result of the pension fund changing from a defined benefit plan to a defined
contribution plan according to Swiss Law (which is accounted for as a defined benefit plan under generally
accepted accounting principles in the United States). The Company’s management guarantees to all insured
parties at least equivalent coverage as if they had remained in the pension fund.
13. Leases
The Company accounts for the use of a communication network as a capital lease and is obliged to maintain
and to make semi-annual minimum payments which will be adjusted according to a schedule and to the
variation of the Swiss consumer price index. The ownership of the cable network will be transferred
automatically to the Company on December 31, 2027.
F- 30

Pursuant to the Company’s contractual obligations, future minimum annual payments at December 31, 2005
are as follows:
(CHF in thousands)
F- 31
Capital Operating
Leases Leases
Year ending December 31,
2006 2'997 15'722
2007 2'973 13'714
2008 2'978 10'946
2009 2'979 8'744
2010 2'961 7'177
Thereafter 37'118 25'047
Total minimum lease payments 52'006 81'350
Less: Amount representing interest 24'730
Present value of net minimum lease payments 27'276
Less: Current maturities 2'416
Long-term capital lease obligations 24'860
The Company has entered into operating leases for certain motor vehicles. These leases have an average
life between 3 and 4 years with no explicit renewal terms included in the contracts or restrictions.
The Company has one rental contract which gives them the right to build on land not owned by the
Company for the remaining contract life of 71 years. The Company has other rental contracts for buildings
and parking lots which have remaining lives between 1 month to 15 years and fiber optic cable, cable
conduit and other telecommunication or office infrastructure with a remaining contract lives between 2
months to 25 years. Some contracts include a clause to enable upward revision of the rental charge on an
annual basis on prevailing market conditions. Charges related to these operating leases are charged to the
consolidated statement of operations on a straight-line basis with any offset recorded as a component of
other current or non-current liabilities based upon the timing of the expected cash flows.
Leases for buildings, office space and equipment extend through 2016 and most contain renewal options for
varying periods. Total rental expense for the years ended December 31, 2005 and 2004, under operating
leases was CHF 11.3 million and CHF 8.0 million, respectively.

14. Accrued Restructuring
The following accruals are included in accrued expenses in the consolidated balance sheets:
(CHF in thousands)
Restructuring 2 Restructuring 1 Total
Employee Employee
Severance Severance
At January 1, 2003 - 4'264 4'264
Expense - 2'089 2'089
Paid - (3'120) (3'120)
Released - - -
Other - - -
At December 31, 2004 - 3'233 3'233
Expense 6'749 272 7'021
Paid (389) (2'721) (3'110)
Released - (143) (143)
Other - - -
At December 31, 2005 6'360 641 7'001
Restructuring
November 2005 Restructuring (Restructuring 2)
On November 8, 2005, the Company announced a plan to reduce its workforce by approximately 15% by
the end of 2006. Out of the total of 1,750 current employees, approximately 80 were terminated before the
end of 2005. These reductions represent an adjustment to current market conditions and are a consequence
of the recent acquisition by Liberty Global Switzerland Inc. This reduction in workforce will come about by
a combination of attrition, early retirements and layoffs. The planned reorganization will primarily affect
Network Management and Technology personnel, as well as support functions and upper management. In
addition to the costs incurred in 2005, the Company anticipates future restructuring costs of approximately
CHF 13.6 million.
In addition, the Company terminated certain individuals with existing employment contracts. As a result, the
Company incurred approximately CHF 5.5 million of expenses during 2005 under the terms of these
contracts.
2002 through 2004 Restructurings (Restructuring 1)
The Company implemented several restructurings from 2002 through 2004. A restructuring liability was
recognized in connection with termination of employees in conjunction with the restructuring of the
business in the year 2001 and in relation with various additional restructurings in the years 2002 to 2004.
The expense associated with these liabilities has been recognized in the consolidated statements of
operations and comprehensive loss. As a result of various termination agreements, the Company is obliged
to pay monthly severance payments and other personnel benefits to 36 former employees up to the year
2007. All employees that were expected to be terminated were terminated at each year end.
F- 32

15. Commitments and Contingencies
Legal Claims
The Company is involved with employment claims and other legal proceedings in the normal course of its
business activities. In the opinion of management, the ultimate outcome of these matters will not have a
material effect on the Company’s consolidated financial statements beyond what is described in the
following paragraphs:
Teleclub Litigation
The Company is involved in a number of proceedings with Teleclub AG (Teleclub), which has exclusive
rights to a significant portion of the premium and sports content distributed in Switzerland. Swisscom AG
(Swisscom), the incumbent telecommunications operator, holds an indirect controlling interest in Teleclub.
In proceedings before the Competition Commission initiated by Teleclub, based on a preliminary fact
finding and legal assessment process, the Company was determined to be dominant in the market for
distribution of television signals via cable television networks in the areas in which it operates. Interim
measures were granted in September 2002 ordering the Company, among other things, to transmit the
digital television signals of Teleclub and allow the installation of Teleclub’s proprietary set-top boxes on the
Company’s network. In September 2003, the Swiss Federal Court, while assuming that the Company holds
a dominant position, reversed the Competition Commission’s decision on the interim measures related to
installing set-top boxes of Teleclub’s choosing on the basis that the Company’s objection to doing so may
be justified by legitimate business reasons. The Competition Commission is continuing its investigation of
whether the Company’s application of its digital standards or digital platform to the distribution of
Teleclub’s digital television signals may constitute an abuse of a dominant position. Given the finding of
dominance, which the Competition Commission confirmed on October 2004 in a legal opinion prepared for
the Swiss Price Regulator, if the Company is found to have abused its dominant position, Teleclub may be
granted the relief requested, the Company may be found to have violated the Federal Act on Cartels and
other restrictions of Competition (the Cartels Act), and the Company may be subject to administrative fines
and additional civil litigation.
In October 2002, the Competition Commission also investigated whether the encryption of the digital
channels offered by the Company as part of its basic digital package constitutes an abuse of a dominant
position as such encryption would prevent reception of these channels through any alternative set-top box.
Until a final determination has been made in the pending proceedings between Teleclub and the Company,
the Competition Commission has suspended its investigation. Should this proceeding be resumed and have
an adverse outcome, the Company may be subject to fines and sanctions under the Cartels Act and may be
required to make its digital service available through alternate set-top boxes. For the same reason described
above, the Competition Commission has not acted on the request of the Swiss Price Regulator to intervene
against the Company to cease encrypting the digital signal and allow use of third-party set-top boxes on the
Company’s network and to prohibit bundling of set-top box rental and content subscription.
An unfavorable outcome from the Teleclub legal proceedings could result in an adverse effect on the
Company’s business. We expect that these proceedings may continue for several years until a nonappealable
decision has been made. We cannot currently predict the outcome of these proceedings.
Capital Gains of Former Shareholders in Acquired Businesses
In 2000, the Company acquired a company which was subsequently merged into its existing operating
companies. As a result of these mergers, the respective Cantonal tax authorities ruled that the capital gain
realized by the former shareholders will be taxed, assuming an indirect liquidation. The Company and the
F- 33

former shareholders have appealed against this decision. Based on the current practice of the Supreme
Court, it is probable that the amount of CHF 2.8 million, included in current liabilities in the consolidated
balance sheets, will become due.
Other Commitments
At December 31, 2005, the Company was committed to pay approximately CHF 10.2 million for equipment
and services from January 1, 2006 to 2009. The aggregate amount of the fixed and determinable portion of
these obligations for the succeeding fiscal years is as follows:
(CHF in thousands)
Year ending December 31,
2006 7'269
2007 1'737
2008 995
2009 238
2010 -
Assets Pledged as Collateral for Own Commitments
10'239
In relation to the Senior Credit Facility agreement dated April 15, 2004, certain cash balances and trade
accounts receivable were pledged as collateral by the Company. As of April 15, 2005 this agreement was
revised and as a consequence as of December 31, 2005 there are no longer any pledges.
The mortgage loans are secured with public deeds on the respective property.
16. Investment in Affiliates
The consolidated financial statements include investments in affiliates listed in the following table:
Name
Capital
owned %
Regionalantenne Ermatingen AG 32.5%
TELEBE Kabelfernsehen Berlingen AG 20.0%
Télécarouge SA 49.0%
Téléonex SA 48.9%
Télélancy SA 45.0%
Télé-Prégny-Chambésy SA 25.0%
DigiTV SA 41.7%
Boisy TV SA 48.6%
Linth Signal AG 21.9%
Regas Spiez AG 30.0%
All subsidiaries have a fiscal year end of December 31.
F- 34

The following presents combined financial information of the Company’s investments in affiliates (amounts
do not reflect any elimination of activities with the Company):
(CHF in thousands)
F- 35
Year Ended Year Ended
December 31, December 31,
2005 2004
Operating results
Revenue 11'131 10'672
Net income 1'370 1'926
(CHF in thousands)
December 31, December 31,
2005 2004
Balance Sheets
Current assets 20'701 19'335
Non-current assets 5'427 5'927
Total assets 26'128 25'262
Current liabilities 9'241 9'059
Non-current liabilities 745 960
Total liabilities
Total shareholders' equity
9'986 10'019
or partners' capital 16'142 15'243
17. Subsequent Events
Increase in Investment
During January 2006, the Company increased their investment in Télé Grand-Saconnex SA from 19% to
70% at a cost of approximately CHF 1.1 million, and in March 2006, the Company acquired the remaining
30% at a cost of approximately CHF 0.6 million.