Slide 1: Fourth Quarter 2023 Results
Fourth Quarter 2023 Results FEBRUARY 6, 2024
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: Kate Johnson, President & CEO
KATE JOHNSON President & CEO
Slide 5: Executing Our Transformation
Executing Our Transformation Slide Title Disrupting Traditional Telecom & Powering the Digital Economy Bolstering our Executing Igniting Runway Turnaround New Growth Amended TSA Will, Drove Momentum in 2023, Fueling Proprietary When Completed, Securing the Base & Innovation & Tapping Extend Debt Mat
Slide 6: The Path of Disruption
The Path of Disruption Networks Need to Support the Digital Economy Edge Hybrid Cloud Security entraliz Streaming Decchitectued Big Data Apps & r re Services A Apps ed Connected Hi acity Ca Advanc cities gher p SaaS Data migration Em e Te rgin n CXut Internet Access Communication Data Transfer E-Com
Slide 7: The Lumen Digital Platform
The Lumen Digital Platform Differentiated Customer Experience (CX) A simple, unified, digital CX giving enterprise customers network capabilities needed for today’s applications NaaS ExaSwitch Edge Fabric Security Digital, Dynamic Friction Free, High Capacity Ubiquity & Proximity Private & Secure Ex
Slide 8: Chris Stansbury, EVP & CFO
CHRIS STANSBURY EVP & CFO
Slide 9: Strengthening Our Balance Sheet
Level 3 Lumen and Qwest Strengthening Our Balance Sheet(1) ($ in billions) ~$9 Billion In Debt Maturity Through 2027 to be Addressed Following Completion of TSA Transactions at Current Participation Levels(2) Reported Debt Maturity Profile Debt Maturity Profile Following Debt Maturity Profile Addres
Slide 10: 4Q23 Year-Over-Year Total Reported Revenue Bridge
4Q23 Year-Over-Year Total Reported Revenue Bridge ~39% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ~39%(2) ($ in millions) 4Q23 Change $3,800 $6 Business $2,788 (7.2%) ($96) Mass Markets $729 (8.3%) Total $3,517 (7.4%) (1) The Company believe
Slide 11: 4Q23 Total Reported Revenue
4Q23 Total Reported Revenue Improvement in Public Sector and Mid-Market Enterprise Channels Y/Y% Q/Q% ($ in millions) 4Q23 Change Change Large Enterprise $903 (3.6%) (1.8%) Y/Y% Q/Q% ($ in millions) 4Q23 % Total Change Change Mid-Market Enterprise $490 (6.0%) (1.4%) Grow $756 5.7% 0.9% 40% Public Se
Slide 12: 4Q23 Mass Markets Revenue
4Q23 Mass Markets Revenue Strong Fiber Broadband Revenue Growth Fiber Revenue Contribution to Total Broadband 33% Y/Y% 32% Revenue ($ in millions) 4Q23 % Total Change 31% 29% Fiber Broadband $165 11.5% 23% 28% Other Broadband(1) $330 (12.5%) 45% Voice & Other $234 (13.3%) 32% Total Mass Markets $729
Slide 13: 4Q23 Mass Markets Broadband Metrics
4Q23 Mass Markets Broadband Metrics Enabled 516K Fiber Locations in 2023 Y/Y Q/Q 126K Fiber(1) 4Q23 Fiber-Enabled Location Adds Q/Q Change Change Enabled Locations 3.7M 516K 126K Subscribers 916K 84K 20K >+60 Average NPS score on Y/Y Q/Q Other(1) 4Q23 Quantum Fiber Change Change Enabled Locations 18
Slide 14: 4Q23 Year-Over-Year Adjusted EBITDA Bridge
4Q23 Year-Over-Year Adjusted EBITDA Bridge ~9% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ($ in millions) 4Q23 Change ~9%(2) Total Revenue $3,517 (7.4%) $3 ($13) Adjusted EBITDA $1,099 (21.1%) Adj. EBITDA Margin 31.2% (541 bps) (1) The Compa
Slide 15: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 4Q23 Cash Flow from Operations $784 Capital Expenditures $821 Free Cash Flow $50 Net Cash Interest $233 14
Slide 16: 2024 Adjusted EBITDA Outlook
2024 Adjusted EBITDA Outlook Expected Organic Decline Improvement of ~600 Basis Points(1) Versus 2023 Outlook $4,100 to ($175) to ($225) $4,300 Approx. $50 (7%) to (11%) (4%) to (5%) Approx. (1%) ($100) to ($250) (2%) to (5%) ($ in millions and % in Y/Y) 15 © (1) 2024 Lumen asTechnologies. Allbetwee
Slide 17: 2024 Financial Outlook
2024 Financial Outlook Slide Title Metric(1)(2) Outlook Adjusted EBITDA $4.1 to $4.3 billion Free Cash Flow(3)(4) $100 to $300 million Net Cash Interest $1.25 to $1.35 billion Capital Expenditures $2.7 to $2.9 billion Cash Income Taxes/(Refund)(4) ($200) to ($300) million (1) For definitions of non-
Slide 18: LUMcN
LUMcN