Slide 1: Third Quarter 2021 Results
Third Quarter 2021 Results November 3, 2021 Issued: © 2021 Lumen Nov. 3, 2021 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, free cash flow, unlevered cash flow, and adjustments to GAAP and non-GAAP measures to exclude the effect of special items. In addition to pro
Slide 4: Lumen's Key Priorities
Lumen’s 5 Key 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: Nov. 3, 2021
Slide 5: Realizing Significant Value With Announced Divestitures
Realizing Significant Value With Announced Divestitures Apollo to acquire Lumen’s ILEC assets(1) Stonepeak to acquire Lumen’s LATAM TRANSACTIONS in 20 states for $7.5 billion (5.5x multiple) business for $2.7 billion (9x multiple) CLOSING Anticipate closing during 2H22 Anticipate closing during 1H22
Slide 6: Unique market opportunity to serve high-density locations in our streamlined footprint
Unique market opportunity to serve high-density locations in our streamlined footprint Targets: Ramp to a 1.5 - 2.0 million annual enablement run rate exiting 2022 12+ million total addressable opportunity Key Assumptions: Less than $1,000 per location to enable Target 40%+ penetration over time 6 I
Slide 7: Financial Highlights for 3Q21
Financial Highlights for 3Q21 Improved sequential revenue performance Delivered solid Adjusted EBITDA and expanded margins on a year over year basis Cash flow remains robust, supporting our capital allocation priorities Updating capital spending guidance to be in the range of $2.8-$3.0 billion, and
Slide 8: 3Q21 Revenue – Sales Channels
3Q21 Revenue – Sales Channels Sales Channels Revenue YoY% QoQ% ($ in millions) 3Q21 Change Change Mass Markets International and GAM $1,019 0.6% 1.5% Large Enterprise $932 (5.9%) 0.1% 28% Mid-Market Enterprise $666 (9.6%) (2.3%) Enterprise Channels Subtotal $2,617 (4.5%) 0.0% 72% Wholesale $891 (7.0
Slide 9: 3Q21 Business Revenue – Product Categories
3Q21 Business Revenue – Product Categories Enterprise(1) Product Categories Wholesale Product Categories Revenue YoY% QoQ% 3Q21 Revenue YoY% QoQ% ($ in millions) Change Change 3Q21 ($ in millions) Change Change Compute and Application Services $385 (0.5%) (0.5%) Compute and Application Services $46
Slide 10: 3Q21 Mass Markets Revenue
3Q21 Mass Markets Revenue Mass Markets Product Categories Quantum Fiber Revenue YoY% QoQ% Broadband 3Q21 3Q21 ($ in millions) Change Change Performance Consumer Broadband $715 (2.1%) (1.1%) Fiber Subscribers 774K SBG Broadband $39 2.6% 0.0% Fiber Enabled 2.7M Voice and Other $502 (13%) (3.1%) Fiber
Slide 11: 3Q21 Adjusted EBITDA | Adjusted EBITDA Margin
3Q21 Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1) ($ in billions) $5.167 $5.125 $5.029 $4.924 $4.887 43.1% 42.7% 42.8% 42.5% 41.3% $2.132 $2.188 $2.165 $2.109 $2.078 3Q20 4Q20 1Q21 2Q21 3Q21 Adj. EBITDA Total Revenue Adj. EBITDA Margin (1) 3Q20, 4Q20, 1Q21, 2Q21 and 3Q21 exclude
Slide 12: 2021 Financial Outlook
2021 Financial Outlook 2021 Metric(1)(2) Current Outlook(3) Previous Outlook (4) Adjusted EBITDA (excluding Special Items) $8.4 to $8.6 billion $8.4 to $8.6 billion Free Cash Flow (excluding Special Items) $3.6 to $3.8 billion $3.1 to $3.3 billion Net Cash Interest $1.475 to $1.525 billion $1.525 to
Slide 13: Appendix
Appendix Issued: © 2021 Lumen Nov. 3, 2021 Technologies, LLC. All Rights Reserved.
Slide 14: Improved Debt Maturity Profile
Improved Debt Maturity Profile As of 3Q21 (1) ($ in millions) $10,976 $2,200 $4,305 $4,490 $981 $1,525 $2,888 $2,075 $949 $1,125 $1,737 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ As of 3Q21 Revolver Capacity As of 4Q18 $7,634 $7,872 $1,618 $6,571 $3,101 $5,031 $2,084 $775 $754 2021 2022 2023