Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Merger or Acquisition (May 2009)
7 slides from Verizon Communications's merger presentation, May 13, 2009
Slide 1: Verizon to Divest Wireline Businesses in 14 States
May 13, 2009 Verizon to Divest Wireline Businesses in 14 States Verizon to Divest Wireline Businesses in 14 States Ivan Seidenberg, Chairman & CEO John Killian, EVP & CFO Exhibit 99.2
Slide 2: "Safe Harbor" Statement
2 “Safe Harbor” Statement “Safe Harbor” Statement Throughout this presentation, results shown are adjusted for special items. Results reflect the reclassifications of revenues, expenses and operating income in the Wireline segment following the completion, on March 31, 2008, of the spin-off of our l
Slide 3: Strategic Transformation: Focus on growth areas
3 Focus on growth areas Strategic Transformation Over the last several years, Verizon has… Divested 8M access lines International Directories Acquired 14M wireless subscribers Spectrum Global IP network & services Wireless 62% Mass Markets 15% Global Enterprise 14% Global Wholesale 8% Other 1% Post-
Slide 4: Creating value for shareholders
4 Creating value for shareholders Strategic Benefits * 2008 revenue is pro forma for Alltel Revenue ($B)* Cash Flow From Continuing Operations ($B) $23 $27 19.4% 17.8% 2006 2008 Capex/ Revenue $106 $87 55% 44% 2006 2008 Wireless as % of Revenue Special distribution through transaction Improving grow
Slide 5: Transaction Overview
5 Transaction Overview ~$8.6B total value in Divested Operations to Verizon & shareholders Approximately 68% ownership by Verizon shareholders in Frontier Tax-free distribution ~$3.3B debt reduction for Verizon Collar around $7.75 +/- $0.75 Exact distribution to be determined prior to closing Transa
Slide 6: Divested Operations Overview
6 Divested Operations Overview 69K 110K 900K 4.8M FiOS TV FiOS Internet High Speed Internet Access lines 37% Wire centers 4% FiOS customers 43% 11K Square miles Employees Operational $0.6B Capex $1.8B EBITDA $4.4B Revenue Financial Based on 2008 results Predominantly rural wireline operations in 14
Slide 7: Summary
7 Summary Enhancing growth profile and focus Significant opportunities for cost reduction Strong Free Cash Flow outlook Maintaining dividend policy Clear strategic, operational and financial benefits
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