Verizon Communications Inc. · NYSE:VZ
Verizon Communications — Merger or Acquisition (February 2015)
9 slides from Verizon Communications's merger presentation, Feb 5, 2015
Slide 1: Forward-looking statements and non-GAAP reconciliation note
As required by SEC rules, we have provided a reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable GAAP measures in materials on our website at www.verizon.com/about/investors. NOTE: In this presentation we have made forward-looking statement
Slide 2: Transactions align with strategic imperatives
Transactions align with strategic imperatives Consistently invest in networks and platforms Provide superior customer experience Develop new products and services Deliver profitable growth and generate cash Return value to shareholders Strengthen balance sheet Overview
Slide 3: Monetization creates value for shareholders
Monetization creates value for shareholders Tower agreement Value in excess of $5 billion Lease-back terms provide operating flexibility Wireline property sale Approx. $10.5 billion of value Enables focus on contiguous Eastern states Return value to shareholders and de-lever the balance sheet Optimi
Slide 4: Tower Monetization Transaction
Expected to close within 60 to 90 days Tower Monetization Transaction Total transaction value $5 billion up-front payment Additional value from end of lease term purchase options Approx. 11,300 towers leased under a Master Prepaid Lease Approx. 165 towers sold outright All towers leased back under M
Slide 5: Wireline Property Sale Transaction
Targeting close in first half of 2016 Wireline Property Sale Transaction Wireline assets in Florida, Texas, and California Concentrates remaining footprint to contiguous eastern states Total transaction value of approximately $10.5 billion Includes assumption of about $600 million of debt Transactio
Slide 6: Wireline Properties – Key Metrics
Cost structure initiatives to mitigate financial impact Wireline Properties – Key Metrics 2014 operating revenue of approx. $5.8 billion 2014 adjusted EBITDA of approx. $1.6 billion About 1.6 million FiOS Internet customers About 1.2 million FiOS Video customers About 3.7 million voice connections A
Slide 7: Funding Plan
Returning value and on track with credit commitments Funding Plan $10.6 billion cash on hand at end of 2014 Cash on hand will fund the $5 billion ASR Spectrum purchase of $10.4 billion less $900 million deposit Cash on hand Term loan Tower proceeds of $5 billion will reduce term loan Wireline procee
Slide 8: Accelerated Stock Repurchase
Provides immediate value to shareholders Accelerated Stock Repurchase $ 5 billion ASR program Signed agreement in place Provides for up-front payment and immediate delivery of 85% of the underlying shares Counterparty borrows shares for delivery then purchases shares on open market between inception
Slide 9: Summary
Confident in ability to execute, grow profitably, and invest for the future Delivering strong operating and financial performance Consistently investing for future growth Developing new products & services Mobile video and Internet of Things Optimizing asset base Strengthening balance sheet Returnin
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