Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — Centurylink — Non-Deal Roadshow (May 2015)
15 slides from Lumen Technologies's roadshow presentation, May 11, 2015
Slide 1: Schedule 14A Information
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a Party other than the Registrant ¨ Check the appropriate box: ¨ Preli
Slide 2: CenturyLink Overview
CenturyLink Overview May 11, 2015
Slide 3: Forward-Looking Statements / Non-GAAP Financial Measures
Forward-Looking Statements / Non-GAAP Financial Measures Certain non-historical statements made in this presentation are intended to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expecta
Slide 4: Participants
Participants Stacey Goff Executive Vice President, Chief Administrative Officer, General Counsel & Secretary Stewart Ewing Executive Vice President, Chief Financial Officer & Assistant Secretary Scott Trezise Executive Vice President, Human Resources 3
Slide 5: CenturyLink
CenturyLink Operating revenues of $18.03B and free cash flow of $2.7B in FY 2014 Enterprise Value of approximately $43B (1) Customers range from Fortune 500 companies to families in rural America 250,000 route mile national fiber network with 58 global data centers Committed to being the broadband l
Slide 6: Transformation in recent years
Transformation in recent years Addition of Hosting/Cloud & IT Acquisition of EMBARQ;7.5 Services capabilities through million access lines, 2.1 acquisitions of Savvis, AppFog, Tier3, Data Gardens, Cognilytics & Orchestrate million broadband customers and 450K video customers in 33 states 2012 - 2015
Slide 7: 2014 Accomplishments
2014 Accomplishments Improved Total and Core Revenue trends, anticipate stable revenues by end of 2015 Generated solid strategic revenue growth of approximately $380 million, a 4.3% increase from 2013 Grew high-bandwidth data services revenue 16% year-over-year Added 91,000 high-speed Internet TM cu
Slide 8: 1Q15 Financial Summary
1Q15 Financial Summary • $4.45 billion in Total revenue 1 • $4.06 billion Core revenue , 1.3% $4.11 $4.05 $4.06 Y/Y decline from 1Q14 2 • $2.32 billion Strategic revenue , 2.2% Y/Y increase from 1Q14 vs. 5.5% Y/Y increase in 1Q14 2 • $1.74 billion Legacy revenue , a 5.7% Y/Y decrease from 1Q14 vs. 6
Slide 9: Strategic Priorities
Strategic Priorities Business Solutions Grow MPLS, Ethernet, Wavelength, Business GPON and VoIP offerings Enhance cloud and hosting services platform Grow Managed Network and Infrastructure Services Increase sales efficiency of direct channel and expand partner sales channel Deliver a broad portfoli
Slide 10: Governance Profile
Governance Profile Over the last several years, CenturyLink has taken steps to enhance its corporate governance profile by further aligning our practices with shareholder interests. • Split our Chairman and CEO roles; Chairman is an independent, non-executive director 2009 • Eliminated our ten-vote
Slide 11: Pay Practices
Pay Practices Shareholders agree that we have favorable pay practices… What We Do… What We Don’t Do… • Performance-based compensation weighted • Enter into employment agreements with our heavily towards long-term equity awards incumbent executives • Stock ownership guidelines • Maintain a supplement
Slide 12: Pay for Performance
Pay for Performance 2014 and 2015 Incentive Plan Design… Short-Term Incentive Bonus Long-Term Equity Incentive • 50% operating cash flow • 60% in performance-based restricted stock, • 50% core revenues split equally between • 3-year TSR vs. custom peer group • 3-year revenue goal Linkage to pay for
Slide 13: CEO Pay Levels
CEO Pay Levels As a result of demonstrated leadership and performance, execution of business strategy and review of compensation benchmarking, the Committee increased CEO pay levels… 2014 2015 • Increased LTI award value from • Increased base salary from $1.1M to $6.6M to $7.5M $1.25M • Increased ST
Slide 14: Q&A
Q&A
Slide 15: Additional Disclosure
Additional Disclosure This information is being provided to certain shareholders in addition to our proxy statement dated April 3, 2015 in connection with the solicitation of proxies from CenturyLink shareholders. Please read our proxy statement and accompanying materials in their entirety as they c