Shenandoah Telecommunications Co · NASDAQ:SHEN

Shenandoah Telecommunications — Shareholder Meeting (May 2017)

34 slides from Shenandoah Telecommunications's shareholder meeting presentation, May 2, 2017

1. Slide 1: 2017 Shareholder Meeting

   2017 Shareholder Meeting May 2, 2017

2. Slide 2: Management Reports – Chris French, President and CEO

   Management Reports Chris French President and CEO

3. Slide 3: Safe Harbor Statement

   Safe Harbor Statement This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our business strategy, our prospects and our financial position. Th

4. Slide 4: Use of Non-GAAP Financial Measures

   Use of Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures that are not determined in accordance with US generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities an

5. Slide 5: Financial Highlights

   Financial Highlights x Revenue Operating Expense Operating Income Net Income x 2014 2015 2016 x 5

6. Slide 6: Net Income History

   Net Income History x $45 $40.9 $40 $35 $33.9 $29.6 $30 ($ in millions) $25 $24.1 $20 $18.6 $18.1 $15.1 $16.3 $15 $13.0 $10 $5 $0 ($0.9) -$5 x 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 x 6

7. Slide 7: Adjusted OIBDA History

   Adjusted OIBDA History x $250 $246.1 $200 ($ in millions) $150.9 $150 $132.1 $118.6 $106.8 $100 $93.1 $84.0 $72.5 $76.6 $62.2 $50 $0 x 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 x 7

8. Slide 8: Cash Dividend History (per Share, Split Adjusted)

   Cash Dividend History (per Share, Split Adjusted) x x 8

9. Slide 9: Cable and Wireline Operating Income

   Cable and Wireline Operating Income Wireline x x Cable x 2014 2015 2016 9

10. Slide 10: Cable Revenue Generating Units (in thousands)

    Cable Revenue Generating Units (in thousands) (Year End) 10

11. Slide 11: Access, Local, and Fiber Lease Revenue (in millions)

    Access, Local, and Fiber Lease Revenue (in millions) 11

12. Slide 12: Operating Cycle

    Operating Cycle We Are Here 2008 - 2010 2010 - 2013 2010 - 2015 2016 2016 - 2017 2018+ Acquisitions Upgrades / Acquisitions Upgrades Reduced Capex Reduced Capex (nTelos / Sprint) Integration Cable Cable Reduced Capex nTelos / Sprint 4G LTE Build-Out Harvest • Acquired cable • Upgraded • Significant

13. Slide 13: Cumulative Total Shareholder Return

    Cumulative Total Shareholder Return 2011 2012 2013 2014 2015 2016 Shenandoah Telecommunications Company 100 150 255 315 438 561 NDAQ US 100 116 155 175 176 198 x NDAQ Telecom Stocks 100 119 135 139 144 178 13

14. Slide 14: Split-Adjusted Stock Price and Value of Original Share

    Split-Adjusted Stock Price and Value of Original Share x 14

15. Slide 15: Management Reports – Adele Skolits, VP of Finance and CFO

    Management Reports Adele Skolits VP of Finance and CFO

16. Slide 16: Mix of Revenues (in millions)

    Mix of Revenues (in millions)1 1. After elimination of affiliate revenues the total revenues for 2014, 2015, and 2016 were $326.9, $342.5, and $535.3, respectively. 16

17. Slide 17: Wireless Revenues (in millions)

    Wireless Revenues (in millions) Wireless Revenues 2015 2016 Change % Change Prepaid and Postpaid Billings $236.3 $397.3 $161.0 68% Sprint Fees, Net of Waiver ($43.8) ($28.9) $14.9 (34%) Travel & Other Revenues $16.3 $46.4 $30.1 185% Subtotal $208.8 $414.8 $206.0 99% Non-Cash Accounting Deferrals and

18. Slide 18: Operating Expenses (in millions)

    Operating Expenses (in millions) 18

19. Slide 19: Operating Income (in millions)

    Operating Income (in millions) 19

20. Slide 20: Cable Segment – Adjusted OIBDA

    Cable Segment – Adjusted OIBDA $ in millions % of Revenue 29% 30% 25% $30 18% 20% $20 15% $31.8 10% $24.5 10% $10 $15.4 $10.3 $11.7 $0 0% 2012 2013 2014 2015 2016 20

21. Slide 21: Capitalization – As of 12/31/16 (in millions)

    Capitalization – As of 12/31/16 (in millions) 21

22. Slide 22: Management Reports – Earle MacKenzie, EVP and COO

    Management Reports Earle MacKenzie EVP and COO

23. Slide 23: PCS Postpaid Subscribers (in thousands)

    PCS Postpaid Subscribers (in thousands) (Year End) 23

24. Slide 24: PCS Postpaid Gross Billed Revenue per User

    PCS Postpaid Gross Billed Revenue per User 24

25. Slide 25: PCS Prepaid Subscribers (in thousands)

    PCS Prepaid Subscribers (in thousands) (Year End) 25

26. Slide 26: PCS Prepaid Gross Billed Revenue per User

    PCS Prepaid Gross Billed Revenue per User 26

27. Slide 27: PCS Customer Migrations (000’s)

    PCS Customer Migrations (000’s) 27

28. Slide 28: Network Following nTelos Acquisition

    Network Following nTelos Acquisition • 4.8 million covered POPs • 959 thousand total subscribers • 20% penetration of covered POPs • 1,467 base stations 28

29. Slide 29: Status of Network Enhancements – nTelos Footprint

    Status of Network Enhancements – nTelos Footprint Enhancement # of cell sites Decommission 148 Overlap Sites Add 800 MHz 186 3G to 4G 363 New Coverage 220 Sites 0% 20% 40% 60% 80% 100% Completed Expected completion 2017 Expected Completion 2018 29

30. Slide 30: Cable Revenue Generating Units (in thousands)

    Cable Revenue Generating Units (in thousands) (Year End) Customers 71,298 72,734 77,366 x 30

31. Slide 31: Cable Average Monthly Revenue per Customer

    Cable Average Monthly Revenue per Customer 31

32. Slide 32: Wireline Customers

    Wireline Customers (Year End) 32

33. Slide 33: Investing in the Future (in millions)

    Investing in the Future (in millions) Capex Spending 33

34. Slide 34: 2017 Shareholder Meeting

    2017 Shareholder Meeting May 2, 2017

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