Slide 1: Fourth Quarter 2021 Results
Fourth Quarter 2021 Results February 9, 2022 Issued: © 2022 Lumen Feb. 9, 2022 Technologies. All Rights Reserved.
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” “will,” and similar expressions are forw
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain historical and forward-looking non-GAAP financial measures, including but not limited to adjusted EBITDA, adjusted EBITDA margin, net-debt-to-adjusted-EBITDA and free cash flow, each excluding the effects of special items, and adjustments to GAAP
Slide 4: Key Capital Allocation Priorities
Key Capital Allocation Priorities • Invest to Drive Growth 1 • Maintain $1.00 per Share Dividend 2 • Relatively Net Leverage Neutral Through Investment Phase 3 • Continued Portfolio Optimization 4 •5 Evaluate Opportunity for Additional Share Repurchases 4 Issued: Feb. 9, 2022
Slide 5: Financial Highlights for 2021
Financial Highlights for 2021 Expanded Adjusted EBITDA margins by over 100 basis points and generated Adjusted EBITDA of $8.4 billion Sequential revenue trends stabilized with a 0.8% decline in the fourth quarter Delivered solid Free Cash Flow over $3.7 billion, supporting our capital allocation pri
Slide 6: 4Q21 Revenue – Sales Channels
4Q21 Revenue – Sales Channels Sales Channels Revenue YoY% QoQ% ($ in millions) 4Q21 Change Change Mass Markets International and GAM $1,017 (1.5%) (0.2%) Large Enterprise $922 (6.5%) (1.1%) 28% Mid-Market Enterprise $665 (7.1%) (0.2%) Enterprise Channels Subtotal $2,604 (4.8%) (0.5%) 72% Wholesale $
Slide 7: 4Q21 Business Revenue – Product Categories
4Q21 Business Revenue – Product Categories Enterprise(1) Product Categories Wholesale Product Categories Revenue YoY% QoQ% 4Q21 Revenue YoY% QoQ% ($ in millions) Change Change 4Q21 ($ in millions) Change Change Compute and Application Services $400 (2.2%) 3.9% Compute and Application Services $46 2.
Slide 8: 4Q21 Mass Markets Revenue
4Q21 Mass Markets Revenue Mass Markets Product Categories Quantum Fiber YoY Revenue YoY% QoQ% Broadband 4Q21 4Q21 Change ($ in millions) Change Change Performance Consumer Broadband $706 (3.4%) (1.3%) Fiber Subscribers 803K +128K SBG Broadband $39 5.4% 0.0% Fiber Enabled 2.8M +0.4M Voice and Other $
Slide 9: Adjusted EBITDA | Adjusted EBITDA Margin
Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1) Annual Performance(2) ($ in billions) ($ in billions) $5.125 $5.029 $4.924 $4.887 $8.664 $4.847 $8.440 43.1% 43.1% 42.9% 42.7% 42.8% 42.5% 41.8% $2.188 $2.165 $2.109 $2.078 $2.088 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 Adj. EBITDA Total R
Slide 10: 2022 Financial Outlook
2022 Financial Outlook Metric(1)(2) Outlook(3) Adjusted EBITDA $6.5 to $6.7 billion Free Cash Flow $1.6 to $1.8 billion(4) Net Cash Interest $1.3 to $1.4 billion GAAP Interest Expense $1.350 billion Dividends(5) $1.00 per share Capital Expenditures $3.2 to $3.4 billion Depreciation & Amortization $3
Slide 11: Appendix
Appendix Issued: © 2022 Lumen Feb. 9, 2022 Technologies, LLC. All Rights Reserved.
Slide 12: Debt Maturity Profile
Debt Maturity Profile (1) As of 4Q21 ($ in millions) $10,976 $2,000 $4,305 $4,490 $1,525 $3,088 $2,075 $949 $1,125 $1,737 2022 2023 2024 2025 2026 2027 2028 2029 2030+ As of 4Q21 Revolver Capacity (1) Excludes finance leases 12 Issued: Feb. 9, 2022