Slide 1: Second Quarter 2023 Results
Second Quarter 2023 Results AUGUST 1, 2023
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 3
Slide 5: Strategic Plan for Growth
Strategic Plan for Growth Secure the Base Drive Commercial Innovate for Growth Excellence 4
Slide 6: Chris Stansbury, EVP & CFO
CHRIS STANSBURY EVP & CFO 5
Slide 7: 2Q23 Year-Over-Year Total Reported Revenue Bridge
2Q23 Year-Over-Year Total Reported Revenue Bridge ~72% of Decline Due to Post-Closing Commercial Agreements and Divestitures Y/Y ~72% (2) ($ in millions) 2Q23 Change $27 Business $2,897 (15.2%) -$707 Mass Markets $764 (36.1%) Total $3,661 (20.6%) (1) The Company believes that these figures will allo
Slide 8: Total Reported Revenue
2Q23 Total Reported Revenue Expanding Revenue Contribution of Grow Products Q/Q% Revenue ($ in millions) 2Q23 % Total Change Revenue ($ in Q/Q% Direct 2Q23 % Total millions) Change Margin(2) Enterprise Channels $2,100 (1.8%) 57.3% Grow $1,138 0.9% 39.3% ~83% Large Enterprise $1,179 (1.3%) 32.2% Mid-
Slide 9: Mass Markets Revenue
2Q23 Mass Markets Revenue Fiber Contribution Ramping Fiber Revenue Contribution to Total Broadband 31% 29% Q/Q% 28% Revenue ($ in millions) 2Q23 % Total Change Fiber Broadband $157 3.3% 20.5% 22% 20% 19% Other Broadband(1) $355 (3.8%) 46.5% 18% 18% 17% Voice and Other $252 (3.4%) 33.0% Total Mass Ma
Slide 10: Mass Markets Broadband Metrics
2Q23 Mass Markets Broadband Metrics Fiber ARPU and Enabled Locations Increasing Q/Q Y/Y Q/Q ~130K Fiber(1) 2Q23 Fiber Enabled Locations Adds Q/Q Change(2) Change Enabled Locations 3.4M 540K 130K Subscribers 877K 91K 21K >+60 average NPS score on Y/Y Q/Q Other(1) 2Q23 Quantum Fiber Change(2) Change E
Slide 11: Year-Over-Year Adjusted EBITDA Bridge
2Q23 Year-Over-Year Adjusted EBITDA Bridge ~77% of Decline Due to Post-Closing Commercial Agreements and Divestitures Y/Y (2) ($ in millions) 2Q23 ~77% Change -$51 Total Revenue $3,661 (20.6%) Adjusted EBITDA $1,229 (32.1%) -$398 Adj. EBITDA Margin 33.6% (570bps) (1) The Company believes that these
Slide 12: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 2Q23 Cash Flow from Operations ($100) Capital Expenditures $796 Free Cash Flow(1) ($896) Net Cash Interest $195 (1) Includes the impact of $938 million in cash tax payments related to our divestitures completed on August 1, 2022 and October
Slide 13: Updated 2023 Financial Outlook
Updated 2023 Financial Outlook Metric(1)(2) Current Outlook(3) Previous Outlook(3) Adjusted EBITDA $4.6 to $4.8 billion $4.6 to $4.8 billion Free Cash Flow(4)(5) $0 to $200 million $0 to $200 million Net Cash Interest $1.1 to $1.2 billion $1.1 to $1.2 billion GAAP Interest Expense $1.200 billion $1.
Slide 14: Lumen
LUMeEN