Slide 1: 2nd Quarter 2020 Results
2nd Quarter 2020 Results August 5, 2020 Issued: May 6, 2020
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 c
Slide 4: CenturyLink's Global Network Statistics
CenturyLink’s Global Network Statistics 450K Fiber Route Miles 170K+ On-net Buildings 27M Technical Space (sq. ft) Most highly connected internet peering backbone in the world 2,200+ Public Data Centers On-net Edge Compute Nodes 100+ (Enabling > 98% of U.S. Enterprises within latency of 5ms) 4 Issue
Slide 5: Transitioning to a Technology Company
Transitioning to a Technology Company Two distinct business models with an all-digital operating mindset Enterprise • Growth-oriented, fiber-based Consumer and Enterprise services Small Business • Coupling our extensive • Fiber is the enabler for all footprint with greater digital emerging communica
Slide 6: Fiber and Low Latency are the Foundation for Emerging Applications
Fiber and Low Latency are the Foundation for Emerging Applications • IoT • Smart manufacturing and retail • Personalized healthcare and finance • Robotics • AI/Big Data • AR/VR • Real-time video analytics • 5G enablement CenturyLink is well-positioned to capture expanding addressable market opportun
Slide 7: CenturyLink's Edge Platform | Customer Examples
CenturyLink’s Edge Platform | Customer Examples Manufacturing Gaming Retail • Hosts robotics control • Delivers very low latencies • Utilizes edge facilities to applications that online gaming customers move compute resources require from stores to edge compute • Provides wireless connectivity locat
Slide 8: Financial Highlights for 2Q20
Financial Highlights for 2Q20 • Steady improvement in Total Revenue performance • Strong YoY and QoQ revenue growth in Enterprise segment • Continued progress on cost transformation initiatives • Solid EBITDA and FCF performance • Deleveraging and refinancings continue to deliver interest expense sa
Slide 9: 2Q20 Revenue
2Q20 Revenue Wholesale SMB 18% Revenue YoY % QoQ % 2Q20 ($ in millions) Change(2) Change 13% International & GAM(1) $849 (3.2%) (1.8%) Enterprise $1,433 1.7% 0.9% 25% Consumer SMB $646 (6.1%) (1.8%) Wholesale $948 (6.3%) (1.0%) 28% Consumer $1,316 (5.3%) (0.8%) Enterprise Total Revenue $5,192 (3.4%)
Slide 10: 2Q20 Consumer Metrics
2Q20 Consumer Metrics Consumer Broadband Performance 2Q20 (in thousands) Revenue YoY % QoQ % 2Q20 ($ in millions) Change(1) Change Broadband Total Subscribers 4,638 $726 1.1% 0.6% Subscriber Quarterly Net Voice $409 (12%) (2.9%) Change (29) Regulatory $154 (1.9%) (1.3%) Below 20 Mbps (70) Other(2) $
Slide 11: Adjusted EBITDA | Adjusted EBITDA Margin
Adjusted EBITDA | Adjusted EBITDA Margin Quarterly Performance(1)(2) ($ in Billions) $5.375 $5.350 $5.306 $5.228 $5.192 42.9% 42.9% 42.2% 42.3% 41.9% $2.269 $2.261 $2.278 $2.243 $2.174 2Q19 3Q19 4Q19 1Q20 2Q20 Adj. EBITDA Total Revenue Adj. EBITDA Margin 1) (1) 2Q19, 3Q19, 4Q19, 1Q20 and 2Q20 exclud
Slide 12: Debt Maturity Profile
Debt Maturity Profile As of 4Q18 ($ in millions) $7,634 $7,872 $1,618 $6,571 $5,031 $3,101 $2,084 $1,164 $775 $754 Debt 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+ maturities As of 4Q18 Revolver Capacity 2020-2025 As of 2Q20PF (1) reduced by ($ in millions) ~$14 billion $10,761 $1,125 $5
Slide 13: 2020 Financial Outlook
2020 Financial Outlook Metric(1)(2) Current Outlook Previous Outlook(3)(4) GAAP Interest Expense $1.7 billion $1.8 billion Net Cash Interest $1.65 billion to $1.70 billion $1.75 billion to $1.80 billion Dividends(5) $1.1 billion $1.1 billion Depreciation & Amortization $4.7 billion to $4.9 billion $