Slide 1: Schedule 14A Information
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a Party other than the Registrant ¨ Check the appropriate box: ¨ Preli
Slide 2: CenturyLink Overview
CenturyLink Overview May 12, 2014
Slide 3: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures Certain non-historical statements made in this presentation and future oral or written statements or press releases by us or our management are intended to be forward-looking statements within the meaning of the Private Securities Litigation R
Slide 4: Participants
Participants Stacey Goff Executive Vice President, General Counsel & Secretary Stewart Ewing Executive Vice President, Chief Financial Officer & Assistant Secretary Scott Trezise Executive Vice President, Human Resources 3
Slide 5: CenturyLink
CenturyLink • Operating revenues of $18.1B and adjusted free cash flow of $3.1B in FY 2013 • Enterprise Value of approximately $40B(1) • Customers range from Fortune 500 companies to families in rural America • 240,000 route mile national fiber network with 55 global data centers • Committed to bein
Slide 6: Evolution Over Recent Years
Evolution Over Recent Years Acquired Tier 3 November 2013 Acquired Savvis Acquired AppFog July 2011 June 2013 Acquired Embarq Acquired Qwest Acquired Ciber ITO July 2009 April 2011 October 2012 2008 2009 2010 2011 2012 2013 Employees 6,500 20,200 20,300 49,200 47,000 46,600 Reported $2.6 billion $5.
Slide 7: 2013 Accomplishments
2013 Accomplishments Core Revenue (1) -2.3% -1.3% Improved core revenue trend Generated solid strategic revenue growth of nearly $400 million, a 4.7% increase from 2012 Achieved solid subscriber growth – added approximately 140,000 high-speed Internet customers and 69,000 Prism™ TV customers Pro for
Slide 8: Strong 1Q14 Results
Strong 1Q14 Results Total Revenue Total operating revenues, operating Y/Y change cash flow and Adjusted Diluted EPS 0.6% exceeded expectations Total operating revenues of $4.54 billion grew Y/Y $25 million, or 0.6% (2.1%) (2.7%) • Compares to Y/Y declines of 2.1% 1Q12 1Q13 1Q14 in 1Q13 and 2.7% in 1
Slide 9: Strategic Priorities
Strategic Priorities Business Network Solutions Expand MPLS, Ethernet, Wavelength and VoIP offerings Extend FTTT footprint for wireless data backhaul Hosting, Cloud and IT Services Expand and enhance cloud and hosting services platform Increase participation rate of direct sales and expand partner s
Slide 10: Governance Profile
Governance Profile Over the last several years, CenturyLink has taken steps to enhance its corporate governance profile by further aligning our practices with shareholder interests. • Split our Chairman and CEO roles; Chairman is an independent, non-executive director 2009 • Amended our articles of
Slide 11: Pay Practices
Pay Practices Shareholders agree that we have favorable pay practices… What We Do… What We Don’t Do… • Performance-based compensation weighted • Enter into employment agreements with our heavily towards long-term equity awards incumbent executives • Stock ownership guidelines • Maintain a supplement
Slide 12: Pay for Performance
Pay for Performance Linkage to pay for performance… Annual Incentive Bonus Long-Term Equity Incentive • 50% operating cash flow • 50% performance-based and 50% 2013 • 30% strategic revenues time-based restricted stock • 20% strategic objectives • Change TSR from S&P 500 index to custom peer group •
Slide 13: CEO Pay Levels
CEO Pay Levels CEO paid below market-competitive pay levels… August 2012 May 2013 February 2014 • Increased CEO base salary to • Increased CEO annual incentive • Increased CEO LTI award value $1.1M bonus target from 125% to 150% from $6.6M to $7.5M • Increased CEO LTI award value from $4.4M to $6.6M
Slide 14: Q&A
Q&A
Slide 15: Additional Disclosure
Additional Disclosure This information is being provided to certain shareholders in addition to our proxy statement dated April 14, 2014 in connection with the solicitation of proxies from CenturyLink shareholders. Please read our proxy statement and accompanying materials in their entirety as they