Slide 1: 3rd Quarter 2020 Results
3rd Quarter 2020 Results November 4th, 2020 Issued: © 2020 Lumen Nov. 4, 2020 Technologies. All Rights Reserved.
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,” and similar expressions are forward-look
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain non-GAAP historical and forward-looking financial measures, including but not limited to adjusted EBITDA, free cash flow, unlevered cash flow, and adjustments to GAAP and non-GAAP measures to exclude the effect of integration and transformation co
Slide 4: Balanced Capital Allocation Focused on Growth
Balanced Capital Allocation Focused on Growth $ % Return Capital Invest in Growth Reduce Leverage through a Dividend • Invest to drive growth and transform the business • Further strengthening balance sheet, reducing leverage and interest expense • Remain committed to dividend policy; comfortable wi
Slide 5: The Edge Cloud Strategy Requires an Integrated Platform
The Edge Cloud Strategy Requires an Integrated Platform Lumen: The Platform for Amazing Things S O F T W A R E W O R K L O A D S Lumen Digital Platform Experience Lumen Orchestrator Lumen Lumen Lumen Lumen Lumen Lumen Customer Success Lumen Public Cloud Partners Hybrid Virtual Edge Private Edge Edge
Slide 6: Driving the Brand and Product Strategy for Lumen
Driving the Brand and Product Strategy for Lumen A unified platform Fiber-based Copper-based leveraging the infrastructure connectivity world’s best fiber- with a simple, all- managed for based infrastructure, digital experience optimal cost and enabling customer efficiency success in the 4th 6 Issu
Slide 7: Financial Results
FINANCIAL RESULTS Issued: © 2020 Lumen Nov. 4, 2020 Technologies, LLC. All Rights Reserved.
Slide 8: Financial Highlights
Financial Highlights • YoY improvement in Total Revenue performance • Continued progress on cost transformation initiatives • Sequential growth in Adjusted EBITDA • Solid Free Cash Flow generation • Continued progress on deleveraging and refinancing initiatives 8 Issued: Nov. 4, 2020
Slide 9: 3Q20 Revenue
3Q20 Revenue Wholesale SMB 18% Revenue YoY% QoQ% 3Q20 ($ in millions) Change(2) Change 13% International & GAM(1) $835 (3.6%) (1.6%) Enterprise $1,439 0.8% 0.4% SMB $635 (5.8%) (1.7%) 25% Wholesale $949 (6.7%) 0.1% 28% Consumer $1,309 (4.1%) (0.5%) Consumer Total Revenue $5,167 (3.4%) (0.5%) Enterpr
Slide 10: 3Q20 Consumer Metrics
3Q20 Consumer Metrics Consumer Broadband 3Q20 Revenue YoY % Performance 3Q20 QoQ % Change (in thousands) ($ in millions) Change(1) Broadband $730 1.7% 0.6% Total Subscribers 4,563 Subscriber Voice $401 (12%) (2.0%) Quarterly Net (75) Change Regulatory $153 (2.5%) (0.6%) Below 20 Mbps (95) Other(2) $
Slide 11: Adjusted EBITDA | Adjusted EBITDA Margin
Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1)(2) ($ in Billions) $5.350 $5.306 $5.228 $5.192 $5.167 42.9% 42.9% 42.3% 42.4% 41.9% $2.261 $2.278 $2.243 $2.174 $2.190 3Q19 4Q19 1Q20 2Q20 3Q20 Adj. EBITDA Total Revenue Adj. EBITDA Margin (1) 3Q19, 4Q19, 1Q20, 2Q20 and 3Q20 exclude I
Slide 12: Improved Debt Maturity Profile
Improved Debt Maturity Profile (1) As of 3Q20PF ($ in millions) $10,976 $1,125 $5,315 $3,963 $2,403 $1,525 $2,025 $2,075 $1,737 $949 $31 $1,590 Near-Term Debt 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ Maturities As of 3Q20PF Revolver Capacity (2020-2025) As of 4Q18 Reduced by ~$15 bill
Slide 13: 2020 Financial Outlook
2020 Financial Outlook Metric(1)(2) Current Outlook Previous Outlook(3) Net Cash Interest $1.62 billion to $1.65 billion $1.65 billion to $1.70 billion GAAP Interest Expense $1.7 billion $1.7 billion Dividends(4) $1.1 billion $1.1 billion Depreciation & Amortization $4.7 billion to $4.9 billion $4.7