Slide 1: Third Quarter 2023 Results
Third Quarter 2023 Results OCTOBER 31, 2023
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, net-debt-to-adjusted-EBITDA and free cash flow, each excluding the effects of special items, and adjustments to GAAP
Slide 4: Kate Johnson, President & CEO
KATE JOHNSON President & CEO 3
Slide 5: 3Q23 Highlights
3Q23 Highlights Executing on Deeply Strategic Components of Our Turnaround Stronger ~$1.5 Digital 2024 Best Balance Billion Inclusion Companies Net After-Tax Proceeds Won State of California Sheet From the EMEA Divestiture Middle-Mile Deal to Work For Expected November 1st (1) US News & World Report
Slide 6: Strategic Plan for Growth
Strategic Plan for Growth Secure the Base Drive Commercial Innovate for Growth Excellence 5
Slide 7: Chris Stansbury, EVP & CFO
CHRIS STANSBURY EVP & CFO 6
Slide 8: Year-Over-Year Total Reported Revenue Bridge
3Q23 Year-Over-Year Total Reported Revenue Bridge ~73% of Decline Due to Post-Closing Commercial Agreements and Divestitures Y/Y ($ in millions) 3Q23 (2) Change ~73% Business $2,894 (10.1%) $23 Mass Markets $747 (36.3%) -$571 Total $3,641 (17.1%) (1) The Company believes that these figures will allo
Slide 9: Total Reported Revenue
3Q23 Total Reported Revenue Improvement in Enterprise Channel Trends Q/Q% Revenue ($ in millions) 3Q23 % Total Change Revenue ($ in Q/Q% Direct 3Q23 % Total millions) Change Margin(2) Enterprise Channels $2,124 1.1% 58.3% Grow $1,125 (1.1%) 38.9% ~82% Large Enterprise $1,182 0.3% 32.5% Mid-Market En
Slide 10: Mass Markets Revenue
3Q23 Mass Markets Revenue Fiber Contribution Ramping Fiber Revenue Contribution to Total Broadband 32% 31% 29% Q/Q% 28% Revenue ($ in millions) 3Q23 % Total Change Fiber Broadband $162 3.2% 21.7% 22% 20% 19% Other Broadband(1) $340 (4.2%) 45.5% 18% 18% Voice and Other $245 (2.8%) 32.8% Total Mass Ma
Slide 11: Mass Markets Broadband Metrics
3Q23 Mass Markets Broadband Metrics Fiber Enabled Locations Continue to Accelerate Q/Q Y/Y Q/Q 141K Fiber(1) 3Q23 Fiber Enabled Locations Adds Q/Q Change(2) Change Enabled Locations 3.5M 487K 141K Subscribers 896K 83K 19K >+60 average NPS score on Y/Y Q/Q Other(1) 3Q23 Quantum Fiber Change(2) Change
Slide 12: Year-Over-Year Adjusted EBITDA Bridge
3Q23 Year-Over-Year Adjusted EBITDA Bridge ~58% of Decline Due to Post-Closing Commercial Agreements and Divestitures Y/Y (2) ($ in millions) 3Q23 ~58% Change -$40 Total Revenue $3,641 (17.1%) Adjusted EBITDA $1,049 (37.9%) -$332 Adj. EBITDA Margin 28.8% (970bps) (1) The Company believes that these
Slide 13: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 3Q23 Cash Flow from Operations $881 Capital Expenditures $843 Free Cash Flow $43 Net Cash Interest $320 12
Slide 14: Reiterated 2023 Financial Outlook
Reiterated 2023 Financial Outlook Metric(1)(2) Outlook(3) Adjusted EBITDA $4.6 to $4.8 billion Free Cash Flow(4)(5) $0 to $200 million Net Cash Interest $1.1 to $1.2 billion GAAP Interest Expense $1.200 billion Capital Expenditures $2.9 to $3.1 billion Depreciation & Amortization $2.9 to $3.1 billio
Slide 15: Lumen
LUMeEN