Slide 1: Second Quarter 2021 Results
Second Quarter 2021 Results August 3, 2021 Issued: © 2021 Lumen Aug. 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: Financial Highlights for 2Q21
Financial Highlights for 2Q21 We delivered solid Adjusted EBITDA despite revenue headwinds with continued strong and growing adjusted margins Cash flow remains robust, providing Lumen the opportunity to invest in our key areas of growth We expect capital expenditures to increase in the second half o
Slide 5: Revenue – Sales Channels
2Q21 Revenue – Sales Channels Sales Channels Revenue YoY% QoQ% 2Q21 Mass ($ in millions) Change Change Markets International and GAM $1,004 (2.6%) (0.9%) Large Enterprise $931 (4.3%) (0.6%) 28% Mid-Market Enterprise $682 (9.7%) (4.7%) Enterprise Channels Subtotal $2,617 (5.1%) (1.8%) Wholesale 72% $
Slide 6: Business Revenue – Product Categories
2Q21 Business Revenue – Product Categories Enterprise(1) Product Categories YoY% QoQ% Wholesale Product Categories Revenue 2Q21 ($ in millions) Change Change Revenue YoY% QoQ% 2Q21 ($ in millions) Change Change Compute and Application Services $387 0% 1.8% Compute and Application Services $49 8.9% 2
Slide 7: Mass Markets Revenue
2Q21 Mass Markets Revenue Mass Markets Product Categories Revenue YoY% QoQ% Quantum Fiber 2Q21 Broadband 2Q21 ($ in millions) Change Change Performance Consumer Broadband $723 (0.4%) (1.1%) Fiber Subscribers 746K SBG Broadband $39 0% 0% Fiber Enabled 2.6M Voice and Other $518 (12%) (4.3%) Fiber Pene
Slide 8: Adjusted EBITDA | Adjusted EBITDA Margin
2Q21 Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1) ($ in Billions) $5.192 $5.167 $5.125 $5.029 $4.924 43.1% 42.7% 42.8% 41.1% 41.3% $2.135 $2.132 $2.188 $2.165 $2.109 2Q20 3Q20 4Q20 1Q21 2Q21 Adj. EBITDA Total Revenue Adj. EBITDA Margin (1) 2Q20, 3Q20, 4Q20, 1Q21 and 2Q21 exclude
Slide 9: 2021 Financial Outlook
2021 Financial Outlook 2021 Metric(1)(2) Current Outlook Previous Outlook (3) Adjusted EBITDA (excluding Special Items) $8.4 to $8.6 billion $8.4 to $8.6 billion Free Cash Flow (excluding Special Items)(4) $3.1 to $3.3 billion $2.8 to $3.0 billion Net Cash Interest $1.525 to $1.575 billion $1.525 to
Slide 10: Appendix
Appendix Issued: © 2021 Lumen Aug. 3, 2021 Technologies, LLC. All Rights Reserved.
Slide 11: Improved Debt Maturity Profile
Improved Debt Maturity Profile (1) As of 2Q21 ($ in millions) $10,976 $2,200 $4,305 $4,490 $1,110 $1,525 $2,888 $2,075 $949 $1,125 $1,737 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ As of 2Q21 Revolver Capacity As of 4Q18 $7,634 $7,872 $1,618 $6,571 $3,101 $5,031 $2,084 $775 $754 2021 2022 20