Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Investor Day (November 2020)
41 slides from Verizon Communications's investor day presentation, Nov 12, 2020
Slide 1: Sellside Analyst Day November 11, 2020
Exhibit 99.1 Sellside Analyst Day November 11, 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement NOTE: In this presentation we have made forward-looking statements. These disruption of our key suppliers’ or vendors' provisioning of products or services, statements are based on our estimates and assumptions and are subject to risks including as a result of the COVID-19 outb
Slide 3: Hans Vestberg, Chairman & CEO
Hans Vestberg Chairman & CEO
Slide 4: Strategy Fundamentals Driving 2.0 Transformation
Presented Feb. 2019 Investor Day Strategy Fundamentals Driving 2.0 Transformation CUSTOMERS INNOVATION DRIVING FIRST NEW GROWTH • Best Network Experiences • 5G & Edge Compute • Customer-Centric Models • New Market Opportunities Network-as-a-Service PURPOSE-DRIVEN 000/ Platform FINANCIAL CULTURE DISC
Slide 5: 5G Creating Value Across Existing and New Businesses
Presented Feb. 2019 Investor Day 5G Creating Value Across Existing and New Businesses NEW Fixed Wireless Access (FWA) (Consumer & VZ Solutions 3rd Party Developer Ecosystem EXTEND Business) Business Models Manufacturing Mobile Edge Compute (MEC) 5G Mobility DEFEND © 2020 Verizon 5
Slide 6: 2020: Strong Execution Against Strategic Priorities
2020: Strong Execution Against Strategic Priorities and … LTE Award LTE Home Internet RootMetrics & Expansion JD Power Mix & Match 3.0 Verizon Mix & Match Visa Card for Business # 1 COVID-19 2nd $1B 2020 Response Green Commitments Bond 1Q 2Q 3Q 4Q Boston & SF Launch Strong 3Q * Financials 2019 ESG F
Slide 7: Fulfilling 2020 Commitments while Driving COVID-19 Initiatives
Presented Feb. 2020 Investor Day …Fulfilling 2020 Commitments while Driving COVID-19 Initiatives Continued 2.0 Transformation Strengthen & Network & Customer innovation: IE Network, VZ Credit Card, Mix & Match √ Grow Core Business VBG Investments to capture new markets; deliver on 4-year $10B cash s
Slide 8: Strategy Execution Resulting in Financial Strength
Strategy Execution Resulting in Financial Strength Total Wireless Service Revenue Y/Y Growth* Adjusted EPS*** W/O 606 2019 2020 guidance: 4.3% 4Q guidance: $1.26 0-2% Y/Y growth** Reported 2.5% 2.8% 2.7% A 2020 $1.25 2.5% >=2.0%** $1.23 1.9% 1.9% 3.1% 0.0% $1.25 B 0.9% 0.8% 0.1% 0.3% $1.20 $1.18 $1.
Slide 9: The Verizon Growth Agenda: Network-as-a-Service at Scale
The Verizon Growth Agenda Network-as-a-Service at Scale Strategic foundation to maximize growth in the fully networked economy. World-class partnerships to accelerate scale. © 2020 Verizon 9
Slide 10: Executing Growth Across Vectors
Executing Growth Across 5 Vectors 5G Network Next-gen B2B Customer New Adoption Monetization Applications Differentiation Markets © 2020 Verizon 10
Slide 11: Executing Growth Across Vectors
Executing Growth Across 5 Vectors © 2020 Verizon 11
Slide 12: Executing Growth Across Vectors
Executing Growth Across 5 Vectors © 2020 Verizon 12
Slide 13: Executing Growth Across Vectors
Executing Growth Across 5 Vectors © 2020 Verizon 13
Slide 14: Executing Growth Across Vectors
Executing Growth Across 5 Vectors © 2020 Verizon 14
Slide 15: Executing Growth Across Vectors
Executing Growth Across 5 Vectors © 2020 Verizon 15
Slide 16: Network-as-a-Service at Scale
Network-as-a-Service at Scale 5G Network Next-gen B2B Customer New Adoption Monetization Applications Differentiation Markets 5G UW MVNO partnerships MEC leadership Deepen and broaden TracFone* 5G Nationwide Increase 5G traffic, site Monetize remote work, customer relationships Visible and Yahoo! Mo
Slide 17: Accelerating Momentum Heading into Next Year
Accelerating Momentum Heading into Next Year Macro and Industry Considerations Verizon Leadership and Execution • Economic uncertainty likely to persist • Build on momentum in core businesses • Mobility & Broadband to remain key economic drivers • Scale in 5G deployment & monetization • Strong deman
Slide 18: Slide 18
Slide 19: Delivering on our network initiatives in 2020
Delivering on our network initiatives in 2020 1 Continue to provide highest-quality, most reliable service 2 Launched 5G Nationwide DSS in October 3 On track with 5G mmWave expansion 4 Maintaining network leadership in 4G LTE and 5G 5 Obtained significant CBRS spectrum to augment network capacity Su
Slide 20: 4G capacity margin remains healthy despite usage changes
4G capacity margin remains healthy despite usage changes Busy Hour Usage Expanded Network Capacity Capacity Margin since 2015 Capacity Margin 2015 2016 2017 2018 2019 2020 Increasing network capacity ahead of expected data growth © 2020 Verizon 20
Slide 21: Accelerated pace of 4G capacity expansion given demand
Accelerated pace of 4G capacity expansion given demand 4G – Carrier Adds CBRS Adds Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Actual Target Actual Target 4G Carrier Adds and C
Slide 22: Dynamic Spectrum Sharing (DSS) working well
Dynamic Spectrum Sharing (DSS) working well Ookla® Median Download Speed of 5G Capable Devices Pre 5G Nationwide Post 5G Nationwide Throughput [Mbps] Aug 2020 Sep 2020 Oct 2020 Nov 2020 Based on Verizon's analysis of Ookla® Speedtest Intelligence® U.S. daily data of median download speeds from Augus
Slide 23: Extending our lead in network performance rankings
Extending our lead in network performance rankings Root Metrics – Overall Win Rate Verizon Competitor A Competitor B Verizon maintains network leadership by a wide margin © 2020 Verizon 23
Slide 24: 5G Ultra Wideband build tracking ahead of plan
5G Ultra Wideband (UW) build tracking ahead of plan 5G UW Sites Activated YTD Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 Strong momentum in putting sites on air at scale © 2020 Verizon 24
Slide 25: 5G UW enables unmatched performance
5G UW enables unmatched performance • 5G UW available in 55 cities now, vs. 31 at year-end 2019 • On track for 60 5G UW cities by year-end • Build areas represent a high percentage of peak hour usage • Real-world speeds of 4 Gbps, faster than wired broadband, and up to 5 Gbps in the lab • October 20
Slide 26: Driving efficient use of assets
Driving efficient use of assets Illustrative Distribution of Cell Sites based on Utilization Count of Cell Sites Cell of Count Low Peak High Peak Utilization Utilization © 2020 Verizon 26
Slide 27: Driving efficient use of assets
Driving efficient use of assets Illustrative Distribution of Cell Sites based on Utilization • In highest utilization areas (most dense 5G UW and highest traveled locations), deploy Mobility + mmWave spectrum Home Count of Cell Sites Cell of Count Low Peak High Peak Utilization Utilization © 2020 Ve
Slide 28: Driving efficient use of assets
Driving efficient use of assets Illustrative Distribution of Cell Sites based on Utilization • In highest utilization areas (most dense and highest traveled locations), deploy 4G LTE + 5G UW FWA Mobility + mmWave spectrum Home • In areas with excess capacity, monetize it with 4G FWA product (LTE Hom
Slide 29: Driving efficient use of assets
Driving efficient use of assets Illustrative Distribution of Cell Sites based on Utilization • In highest utilization areas (most dense and highest traveled locations), deploy 4G LTE + Carrier 5G UW FWA Adds/ Mobility + mmWave spectrum CBRS Home • In areas with excess capacity, monetize it with 4G F
Slide 30: 5G UW Technology Roadmap
5G UW Technology Roadmap • New 5G Home CPE & Self-Setup • 5G In-Building • 5G Core and 5G Stand Alone • 10CC for >5Gbps • Network Slicing • MEC & Private Networks • Virtualization and Webscale • Security Verizon is paving the way to deploy the full functionality of 5G © 2020 Verizon 30
Slide 31: Network-based strategy driving results and path to growth
Network-based strategy driving results and path to growth 5G DSS 4G LTE 5G UW Nationwide Best-in-class and most reliable network, today and tomorrow © 2020 Verizon 31
Slide 32: Ronan Dunne, EVP & Group CEO Verizon Consumer
Ronan Dunne EVP & Group CEO Verizon Consumer
Slide 33: Verizon's platform strategy
Verizon’s platform strategy Consumers Customer Enhancements Go to * market Enabling Modular, API-driven, AI-ready technology stack and data layer tech layer Core Customer Networks Distribution Billing Platforms (incl. MEC) Service Note: *TracFone acquisition expected to close in 2021 subject to regu
Slide 34: Executing and accelerating our strategy
Executing and accelerating our strategy The 5G America’s been waiting for Digital, Seamless Omni-Channel Signature experiences growing premium accounts Journeys, and Contactless Retail LTE Home Expanding our home internet presence Internet Launch More value to customers driving loyalty * Controlling
Slide 35: Consumer Growth Platform
Consumer Growth Platform P&L Drivers New Accounts Value Proposition Unlimited Mix Premium Mix Verizon Up Lower Churn Omni-channel Base Management and Step Ups Experience Additional Lines Personalization Credit Card Product Attach Rate Mobile & Devices & Products Home New Revenue Increase Penetration
Slide 36: Mobile: Accelerating growth
Mobile: Accelerating growth Postpaid Account Mix Key Growth Drivers New Accounts 45% 39% Metered 58% 60% 88% of new accounts chose of new unlimited accounts an unlimited plan (3Q’20) chose a premium plan (3Q’20) Entry 44% Unlimited Base Accounts 44% 36% Premium 17% 11% Unlimited 4% YE'18 YE'19 3Q'20
Slide 37: Changing the Home Experience
Changing the Home Experience More choice w/ Mix & Customer Experience & More at Home Match on Fios Rewards • Pay only for what you need • Superior network performance • VZ Protect Home • Mix shift to Premium • Mobile + Home Rewards • Stream TV Platform • Growing Fios margin • Easy self setup • Premi
Slide 38: Mobile: Accelerating growth
Mobile: Accelerating growth Expanding Expanding and Innovating Coverage device line up 5G Cities with 5G Home 12 Home 48 States with LTE Home • 5G Home average usage of 20+ • High power 5G Home CPE GB per day LTE Fios Home • Integrated home Wi-Fi router • Expanding broadband to millions more homes •
Slide 39: Summary
Summary • Investments and transformations have laid the foundation • Vectors of growth will help deliver on our GDP+ plan • Strength in core business with continued headroom for growth • New revenue streams (5G, FWA, product, Value) • Evolving the broadband experience and differentiating against our
Slide 40: Kyle Malady, EVP & CTO
Slide 41: Q&A
© 2020 Verizon
Verizon Communications — Investor Day (November 2020) on 6ix