Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 6th, 2024
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, and free cash flow, each excluding the effects of special items, and adjustments to GAAP and other non-GAAP measures
Slide 4: Kate Johnson, President & CEO
KATE JOHNSON President & CEO
Slide 5: Executing Lumen's Transformation
Executing Lumen's Transformation Slide Title Disrupting Traditional Telecom & Powering the Digital Economy Improving Driving Commercial Innovating for Financial Health Excellence Growth Announced over $5B in PCF Securing the Base by Cloudifying telecom and sales and targeting over $1B in Improving S
Slide 6: Private Connectivity Fabric – The backbone of the AI economy
Private Connectivity Fabric – The backbone of the AI economy A custom network that gives users more control over their network infrastructure Designed to be #1 -25% optical loss 60% more capacity ≤5ms provider of AI-ready infrastructure vs. competition(1) vs. legacy fiber of latency at the edge desi
Slide 7: Private Connectivity Fabric: AI-Ready Connectivity for Tomorrow
Private Connectivity Fabric AI-Ready Connectivity for Tomorrow Ultimate Control AI Optimized Cybersecurity Customizable Scalable infrastructure Robust protection for networks tailored for designed for advanced your critical data and specific business technologies and data applications needs growth 6
Slide 8: The Lumen Digital Platform
The Lumen Digital Platform Differentiated Customer Experience (CX) A simple, unified, digital CX giving enterprise customers network capabilities needed for today’s applications NaaS Edge Fabric Security Digital, Dynamic Experiences: Waves, Ethernet, IP, VRFs Ubiquity & Proximity Private & Secure In
Slide 9: 2Q24 Mass Markets Highlights
2Q24 Mass Markets Highlights 136K 40K >+60 Fiber-Enabled Fiber Net Net Promotor Locations Adds Score Pacing to Annual Target Best Ever Reported As of June 30, 2024 8 © 2024 Lumen Technologies. All Rights Reserved.
Slide 10: Chris Stansbury, EVP & CFO
CHRIS STANSBURY EVP & CFO
Slide 11: 2Q24 Year-Over-Year Total Reported Revenue Bridge
2Q24 Year-Over-Year Total Reported Revenue Bridge ~36% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ~36%(2) ($ in millions) 2Q24 Change $3,661 $24 Business $2,577 (11.4%) ($142) Mass Markets $691 (8.2%) Total $3,268 (10.7%) (1) The Company bel
Slide 12: 2Q24 Total Reported Revenue
2Q24 Total Reported Revenue Maintained Growth in N.A. Enterprise Grow Products Y/Y% Q/Q% ($ in millions) 2Q24 Change Change Y/Y% Q/Q% Large Enterprise $837 (6.9%) (2.4%) ($ in millions) 2Q24 % Total Change Change Mid-Market Enterprise $478 (7.0%) (1.6%) Grow $761 1.5% 0.3% 43% Public Sector $448 8.0
Slide 13: 2Q24 Mass Markets Revenue
2Q24 Mass Markets Revenue Fiber Broadband Revenue Growth Accelerated Fiber Revenue Contribution to Total Broadband 38% Y/Y% 35% Revenue ($ in millions) 2Q24 % Total 33% Change 32% Fiber Broadband $181 14.6% 26% 31% Other Broadband(1) $298 (16.1%) 43% Voice & Other $212 (11.7%) 31% Total Mass Markets
Slide 14: 2Q24 Mass Markets Broadband Metrics
2Q24 Mass Markets Broadband Metrics(1) Strongest Ever Reported Fiber Net Subscriber Additions Y/Y Q/Q 136K Fiber 2Q24 Fiber-Enabled Location Adds Q/Q Change Change Enabled Locations 3.9M 532K 136K Subscribers 992K 115K 40K >+60 NPS score on Y/Y Q/Q Other 2Q24 Quantum Fiber Change Change Enabled Loca
Slide 15: 2Q24 Year-Over-Year Adjusted EBITDA Bridge
2Q24 Year-Over-Year Adjusted EBITDA Bridge ~21% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ($ in millions) 2Q24 Change ~21%(2) Total Revenue $3,268 (10.7%) $3 Adjusted EBITDA $1,011 (17.7%) ($37) Adj. EBITDA Margin 30.9% (270 bps) (1) The Co
Slide 16: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 2Q24 Cash Flow from Operations $511 Capital Expenditures $753 Free Cash Flow ($156) Net Cash Interest $218 15
Slide 17: 2024 Financial Outlook
2024 Financial Outlook Slide Title Metric(1)(2) Outlook Adjusted EBITDA $3.9 to $4.0 billion Free Cash Flow(3)(4) $1.0 to $1.2 billion Net Cash Interest $1.15 to $1.25 billion Capital Expenditures $3.1 to $3.3 billion Cash Income Taxes/(Refund)(4) ($200) to ($300) million (1) For definitions of non-
Slide 18: Lumen
LUMcN