2016 QVC...The Information shown above provides a reconciliation for QVC’s Adjusted OIBDA to QVC’s operating income calculated in accordance with GAAP for the year ended December

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moments & momentum QVC 2016

moments & momentum QVC 2016 1

There were big moments for QVC in 2015.

We implemented a new global operating model which will bring the best of QVC to every market. We

launched our seventh market, QVC France, across all platforms. We forged an exciting and mutually bene-

ficial relationship with zulily. And we introduced our QVC for Apple TV app in the US and the UK, the latest

demonstration of our ongoing commitment to deliver a robust customer experience on emerging platforms.

There were smaller moments, too. Moments of discovery. And storytelling. And community. And exceptional

customer service.

Moments, big and small, happen every day around the world at QVC. And with each moment, we’re connect-

ing with real people and touching real lives. That’s what’s always set us apart. And that’s what’s continuing

to drive our success.

moments


In 2015, every single market grew revenue.

And that’s not all. Our customer counts rose 3% worldwide to 12.6 million, and increased 4% in the US to 8.3

million—both records. We saw continued growth in new customers, and we improved our retention rates.

Moment by moment, we’re building momentum. The momentum to expand our reach, optimize our platforms,

increase customer engagement, and drive sales. And moment by moment, we’re confident that we’re creating

the momentum to propel us to even greater success in the future.

Mike George | President & CEO

momentum


*Operating Income Before Depreciation and Amortization Excluding Stock Compensation

’10 ’11 ’12 ’13 ’14 ’15

Consolidated Net Revenuein millions

’10 ’11 ’12 ’13 ’14 ’15

Consolidated Adjusted OIBDA* in millions

$7,

80

7

$8

,26

9

$8

,516

$8

,62

6

$8

,80

1

$8

,74

3

$1,

67

1

$1,73

3

$1,

82

8

$1,

84

1

$1,

910

$1,

89

4

’10 ’11 ’12 ’13 ’14 ’15

Consolidated Operating Incomein millions

$1,13

0

$1,13

7

$1,

26

8

$1,

24

5

$12

79

$1,

275

shared moments

QVC Italy partnered with

Vogue, offering exclusive

and limited lines of hand-

bags, shoes, and jewelry

during our Fashion Days

through Vogue Accessory

programming.

Designer Susan Graver

marked 25 years with QVC.

In keeping with the community

spirit of QVC, she celebrated

the occasion at a meet-and-

greet brunch with customers.IT Cosmetics founder Jamie Kern Lima

achieved a major milestone. The news-

anchor-turned-entrepreneur welcomed

her one-millionth QVC customer.

QVC UK threw a media event inspired

by legendary Studio 54 to launch the

H by Halston apparel line, creating the

platform for sell-out shows.

QVC Germany celebrated Berlin

Fashion Week with a THOM by

Thomas Rath showroom event, in-

troducing over 60 journalists and

bloggers to the designer’s spring/

summer collection for QVC.


Better together. On October 1, 2015, zulily officially became part of the QVC Group. Be-

cause QVC and zulily have highly complementary customer bases spanning generations of

women, this new relationship offers both companies the opportunity to extend our busi-

nesses beyond our core audiences and accelerate the growth of both companies—all while

maintaining our individual brand identities.

QVC and zulily share some commonalities that make the new connection a good fit. We’re

both passionate about building long-term customer relationships based on trust. We’re

both dedicated to creating engaging shopping experiences around the joy of discovery.

And we’re both innovators across multiple platforms, with a focus on mobile and digital.

But it’s our differences that make this new relationship truly exciting. QVC is a leading

brand among women 35 to 64 which, including our joint venture in China, includes 14 mil-

lion active customers. zulily is a leader among women 25 to 45, with approximately 5 mil-

lion active customers and an email membership of many million prospects. Most zulily cus-

tomers have never shopped with QVC, and vice versa. Few of zulily’s thousands of vendors

currently work with QVC, and few of our brands are sold through zulily. Now, together in

the QVC Group, QVC and zulily will be able to share brands and products across platforms,

jointly host events and brand launches, engage celebrities together, learn best practices

from each other—and surprise and delight a broader range of customers who love to shop.

Early cross-promotion efforts, such as running a Discover zulily show on QVC Plus and

selling some QVC proprietary brands on zulily, confirm our belief that we can accelerate

customer growth and increase purchase occasions for both businesses.

shared momentum


breakthrough moments


Our joint venture, CNR Mall,

expanded into Shanghai,

broadening reach to 114 million

homes and making China

QVC’s largest market.

QVC Germany invited

shoppers to try Click & Chic,

a virtual fitting room. The

promotion—the first of its kind

in Germany—generated media

buzz and introduced new

potential new names to QVC

as a fashion authority.

Elemis became QVC UK’s biggest

Today’s Special Value ever—in both

sales and units sold.

QVC US broke sales records

during Thanksgiving Week,

November 23-29. Thanksgiving

was our highest-selling day

ever; we had our biggest-

selling Black Friday on QVC.

com; Cyber Monday was a

record day; and on November

28, a Dell laptop became the

best-selling Today’s Special

Value ever on QVC.com.

QVC Japan nearly doubled its fan

base on Facebook, achieving a total

reach of 3.5 million.

Changing the way the world shops—again. In time for Q4 2015, QVC launched a highly

intuitive app for Apple TV, providing customers with yet another way to discover our ever-

changing curation of people, places, and finds. The app, available in the US and the UK,

enables shoppers to view live and pre-produced QVC programming and make purchases

directly through Apple TV with just the click of a remote.

QVC was one of a select group of companies invited to demonstrate their apps at an

Apple TV media event. This demo resulted in widespread media impressions, with influ-

encers in the tech world hailing QVC for effectively harnessing the power of the Apple TV

platform to create a unique, engaging, and immersive experience for users. According to

Nilay Patel at The Verge, “I am going to be 100% crazy honest with you: the single most

interesting app in the Apple TV App Store right now is the QVC app… (It) is the only app

that really and truly blends television with interactivity… That kind of interactivity is the

real future of television…”

This new app is just one example of our ongoing effort to bring QVC to life on today’s

newest, most innovative platforms. It joins our existing family of apps for Apple devices,

which includes the QVC for Apple Watch app, available in the US, the UK, and Germany, as

well as apps for iPhone and iPad. It also joins our universal Android app, launched in the

US, the UK, and Germany, which has already driven significant conversions and sales gains

on that platform.

QVC for Apple TV will continue to evolve, like all of our apps, offering new features and

capabilities over time.

breakthrough momentum


global moments

QVC launched a global Facebook

page, giving our social team

access to global analytics and

insights while delivering our brand

to 2.2 million unique fans across

all markets on one of the world’s

largest social platforms.QVC received honors and

recognition around the globe

for our consistently high level

of customer service, our digital

customer experience, and as a

top workplace.

Global participation in Q Perspec-

tives, QVC’s annual employee survey,

increased to 87%, demonstrating

that team members around the

world are highly engaged compared

to those of other companies.

QVC markets all united behind a

global tagline, underscoring our

promise that customers around the

world will find what they love and

love what they find here.

The US Ambassador to China and

his wife visited CNR Mall as part of

our joint venture’s USA Brand Day.

Thanks to QVC’s global resources,

CNR Mall now offers more products

and international brands than any of

its competitors.


Bonjour, France! On June 23, 2015 at 3pm CEST, QVC entered the French market—a

digitally mature market—with the launch of its newest ecommerce site, QVC.fr. The first

broadcast of QVC France followed on August 1. And it all reached an audience primed

to experience QVC, thanks to anticipation built through the QVC France Facebook page,

launched earlier in the year.

QVC France is the result of unprecedented cooperation across all QVC markets. By

enlisting our best talent and leadership to establish operations and leveraging existing

infrastructures, including Germany’s distribution center in Huckelhoven and the UK’s supply

chain management system, we were able to minimize upfront investment and maximize

efficiency. Regional video content sharing systems now exist, allowing France to rely on other

European operations for content creation. Thanks to our new global organization structure,

this kind of cross-market support is now the model for the future.

Arriving on the heels of QVC’s entry into the Italian market in 2010, QVC France has

already built its TV reach to 18 million homes.

global momentum



QVC Global Leadership Team

Mike George President and Chief Executive Officer

Mary Campbell Commerce Platforms

Linda Dillman Information Technology

Matt Goldberg Corporate Development

Larry Hayes Legal and Compliance

Steve Hofmann International

Doug Howe Merchandising

Ted Jastrzebski Finance and Strategy

Robert Muller Customer and Business Services

Doug Rose Brand and Communications

Beth Rubino Human Resources

QVC Market Leaders

Gregg Bertoni CNR Mall / QVC Joint Venture with China National Radio

Mathias Bork Germany

Dermot Boyd United Kingdom

Steve Bridgeman France

Mike Fitzharris Japan

Paolo Penati Italy

zulily

Darrell Cavens President and Chief Executive Officer

moments & momentum QVC 2016

Non-GAAP Reconciliation

This document includes references to Adjusted OIBDA, which is a non-GAAP financial measure for QVC. QVC defines Adjusted OIBDA as revenue less cost of sales, operating expenses and selling, general and administrative expenses (ex-cluding stock and other equity-based compensation) and excludes from that definition depreciation and amortization, restructuring and impairment charges and legal settlements that are included in the measurement of operating income pursuant to GAAP. QVC believes Adjusted OIBDA is an important indicator of the operational strength and performance of its business, including the ability to service debt and fund capital expenditures. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. Because Adjusted OIBDA is used as a measure of operating performance, QVC views operating income as the most directly comparable GAAP measure. Adjusted OIBDA is not meant to replace or supersede operat-ing income or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that QVC's management considers in assessing the results of operations and performance of its assets. Please see the below schedule for a reconciliation of Adjusted OlBDA to operating income (loss) calculated in accordance with GAAP for QVC.

Consolidated Adjusted OIBDAin millions

Consolidated QVC adjusted OIBDA

Depreciation and amortization

Stock compensation

QVC operating income

The Information shown above provides a reconciliation for QVC’s Adjusted OIBDA to QVC’s operating income

calculated in accordance with GAAP for the year ended December 31, 2010 to 2015.

©2016 QVC, Inc. QVC, the Q, and the Q-Ribbon Logo are registered service marks of ER Marks, Inc. and QVC, Inc.

2015

$1,894

(588)

(31)

1,275

2014

$1,910

(587)

(44)

1,279

2013

$1,841

(558)

(38)

1,245

2012

$1,828

(526)

(34)

1,268

2011

$1,733

(574)

(22)

1,137

2010

$1,671

(523)

(18)

1,130


Documents

2016 QVC...The Information shown above provides a reconciliation for QVC’s Adjusted OIBDA to QVC’s operating income calculated in accordance with GAAP for the year ended December