Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Corporate Update (November 2024)
27 slides from Telephone And Data Systems's corporate update, Nov 20, 2024
Slide 1: Shareholder Engagement 2024 Update
ay TDS Shareholder Engagement 2024 Update TDS’ mission is to provide outstanding communications services to our customers and meet the needs of our shareholders, our people, and our communities. November 2024
Slide 2: Goal of TDS' Shareholder Engagement Outreach Program
The goal of TDS’ Shareholder Engagement Outreach Program: Create a cycle of dialogue and feedback with our shareholders, management and the Board.
Slide 3: Boards making transformational change
Boards making transformational change tps Strategic actions designed to advance our mission and unlock value + Boards of directors of TDS and UScellular decided to initiate a process to explore strategic alternatives for UScellular in August 2023 + Announced a transaction in May 2024 to sell UScellu
Slide 4: Working to create shareholder value
Working to create shareholder value as TDS 400 350 250 150 —TDs —usM —sa&Psoo The comparison above assumes $100.0! ested on the close of trading on 8/3/24, the day before we announced the strategic alternatives review, through 10/31/24.
Slide 5: Corporate Governance Practice Highlights
Corporate Governance Practice Highlights Ze. + Annual election of all directors + Annual "Say on Pay" vote + Policy prohibiting pledging and hedging of company shares + Charter and bylaws can be amended by a simple majority vote + Authority of each committee to retain independent advisors + TDS has
Slide 6: ESG Highlights
ESG Highlights tps Dedicated to bridging the digital divide + TDS Telecom's acceptance of the FCC’s Enhanced A-CAM will bring high-speed internet to underserved, rural locations in 24 states + UScellular is investing in broadband infrastructure and the latest wireless technology to help deliver reli
Slide 7: Board Characteristics
Board Characteristics* Independent Directors Bring Extensive Expertise Senior Sales and Indust isk/ Pul Global Leadership | Marketing | Expel inanci Company rspective Boards 60's v V v Kimberly D. Dixon Christopher D. O’Leary V V y y y George W. Off V y V V al >, Wade Oosterman V V V y y y Napoleon
Slide 8: An Engaged Board
An Engaged Board fps Average Tenure of Independent Directors Overall Attendance at 2024 Board and Committee Meetings 10 ves 98% Number of Board Committee Meetings in 2024* Technology Audit 8 CHRC 7 CGNC 3 Advisory Group Number of Board Meetings in 2024* Number of New Independent Directors added in t
Slide 9: Ongoing Board Refreshment Process
Ongoing Board Refreshment Process tps Developed process in 2013, continually reviewing the need for additional perspectives and skills in the boardroom Annual Board of Directors self-assessment + Evaluates performance and effectiveness of the Board + Discusses matters related to board meetings, boar
Slide 10: Well-Functioning Board of Directors
Well-Functioning Board of Directors tps + Engaged Board, taking decisive action, including the review of strategic alternatives for UScellular and other asset dispositions + Board discussions are open, frank and substantive + Independent directors work collaboratively and constructively with control
Slide 11: Business Update
a TDS Business Update
Slide 12: UScellular
UScellular 3 uscellular * Mission — connecting people to what matters most * Focused on optimizing business results through close of T-Mobile transaction * Fourth-largest full-service wireless carrier * Providing excellent customer support and a high-quality network to 4.5 million retail connections
Slide 13: UScellular total operating performance
UScellular total - operating performance 3 uscellular 9 mos. 9 mos. Ended Ended ($M) 9/30/2024 9/30/2023 % Change Service revenues $2,245 $2,289 (2%) Equipment sales 554 617 (10%) Total operating revenues 2,799 2,906 (4%) System operations expense 542 557 (3%) Cost of equipment sold 630 708 (11%) SG
Slide 14: TDS Telecom
TDS Telecom Mh * Mission — to create a better world through its communications services * Delivering broadband, video and voice services to a mix of small to mid-sized urban, suburban and rural communities — 1.1 million connections * Transforming into a broadband company * Executing on a robust fibe
Slide 15: TDS Telecom operating performance
TDS Telecom operating performance 9 mos. 9 mos. Ended Ended ($M) 9/30/2024 9/30/2023 % Change Total operating revenues $797 $767 4% Cash expenses () 533 563 (5%) Adjusted EBITDA “) (Non-GAAP) 269 207 30% Capital expenditures $242 $434 (44%)
Slide 16: Biographical Information on TDS Independent Directors
a TDS Biographical Information on TDS Independent Directors
Slide 17: Kimberly D. Dixon
Kimberly D. Dixon ae. Management Experience Significant leadership and operating and financial management experience as Executive Vice President and Chief Operating Officer of FedEx Office and Senior Vice President, Consumer Sales and Distribution of Sprint, including experience in consumer and busi
Slide 18: Christopher D. O'Leary
Christopher D. O’Leary aS TDS Management Experience Extensive leadership experience as Interim Chief Executive Office of Tupperware Brands (Nov. 2019 — April 2020) and Chief Operating Officer International of General Mills (2006-2016); significant roles with leading consumer packaged goods providers
Slide 19: George W. Off
George W. Off Management Experience Substantial leadership and operational management experience for marketing services firm (Co-founder and CEO, Catalina Marketing Corporation) and multinational manufacturer (CEO, Checkpoint Systems) Business Expertise and marketing technology Significant business
Slide 20: Wade Oosterman
Wade Oosterman aN. TDS Management Experience + Substantial executive leadership and marketing experience in the telecommunications industry (President Bell Media and Vice Chair, Bell and BCE) + Prior President, Bell Mobility and President, Bell Residential Services; Chief Marketing and Brand Officer
Slide 21: Napoleon B. Rutledge, Jr.
Napoleon B. Rutledge, Jr. aS TDS Management Experience Substantial operating and financial management experience in finance and accounting, currently serving as SVP & Chief Accounting Officer of McKesson, a $309 billion revenues global healthcare company Prior financial expertise includes 23 years i
Slide 22: Dirk S. Woessner
Dirk S. Woessner za. Management Experience Extensive experience in the telecommunications industry having served in numerous executive leadership roles at Deutsche Telekom AG and Rogers Communications. Significant leadership and operating and financial management experience as CEO of CompuGroup Medi
Slide 23: A note on UScellular Board Refreshment
A note on UScellular Board Refreshment tps UScellular has also prioritized adding new and diverse perspectives to its Board. Since 2020, 8 New directors elected to the UScellular Board 2 of these new Directors are independent 70's L/ Ongoing Refreshment of UScellular Board 50's * 2023 - James W. But
Slide 24: Appendix
a TDS Appendix
Slide 25: Adjusted OIBDA and Adjusted EBITDA Reconciliation
Adjusted OIBDA and Adjusted EBITDA Reconciliation ~~ T e 9 Months Ended Sept 30, 2024 9 Months Ended Sept 30, 2023 DS Total Total (SM) UScellular_ TDS Telecom Uscellular. TDS Telecom Net income (loss) (GAAP) $(37) $51 $43 $19 Add back: Income tax expense 29 15 56 6 Income (loss) before income taxes
Slide 26: Cash Expenses; EBITDA definitions
aS TDS Cash Expenses Total cash expenses represent total operating expenses as shown in the Consolidated Statement of Operations Highlights in the TDS and UScellular SEC Forms 8-K, less depreciation, amortization and accretion and gain/losses. EBITDA, Adjusted EBITDA and Adjusted OIBDA EBITDA, Adust
Slide 27: Thank You
a TDS Thank You
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