2nd QUARTER 2012 EARNINGS RESULTS

Fran Shammo Chief Financial Officer

July 19, 2012

SAFE HARBOR STATEMENT

NOTE: This presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. The following important factors could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: adverse conditions in the U.S. and international economies; competition in our markets; material adverse changes in labor matters, including labor negotiations or additional organizing activity, and any resulting financial and/or operational impact; material changes in available technology; any disruption of our key suppliers provisioning of products or services; significant increases in benefit plan costs or lower investment returns on plan assets; breaches of network or information technology security, natural disasters or terrorist attacks or existing or future litigation and any resulting financial impact not covered by insurance; technology substitution; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing; any changes in the regulatory environments in which we operate, including any increase in restrictions on our ability to operate our networks; the timing, scope and financial impact of our deployment of broadband technology; changes in our accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; our ability to complete acquisitions and dispositions; and the inability to implement our business strategies.
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/investor.

CONSOLIDATED

2Q 12 OVERVIEW

Solid double-digit growth in operating income and earnings YTD free cash flow more than doubled over last year Strong growth in wireless retail service revenue with continued robust postpaid ARPU accretion Industry-leading and record wireless EBITDA service margin Accelerating wireline consumer revenue and ARPU growth Intense focus on profitability and cash management

Continued strong, sustained performance

CONSOLIDATED

2Q 12 FINANCIAL SUMMARY
Revenue ($B)
$27.5 $28.2 $28.6
Y/Y Growth

3.7%

Consolidated revenue of $28.6B, up 3.7% Y/Y

Revenue growth across all strategic areas Y/Y

2Q '11
Wireline

1Q '12
Wireless

2Q '12

Operating income growth of 15.5%

Earnings Per Share
$0.64 $0.57 $0.59
Y/Y Growth

EBITDA margin expansion to 34.2%

12.3%

2Q 12 EPS of $0.64 up 12.3% Y/Y

2Q '11

1Q '12

2Q '12

Strong earnings growth trajectory

CONSOLIDATED

CASH FLOW
Cash Flow Summary ($B) 1H 11 Cash from operations Capital expenditures Free cash flow $12.8 $8.9 $3.9 1H 12 $15.3 $7.4 $7.8

YTD cash flow of $15.3B, up 19.4% Y/Y Disciplined capital spending across entire business
1H 12 capital expenditures down 16.7% Y/Y

Capital Expenditures / Revenue

16.4% 13.1%

YTD free cash flow up $4.0B Y/Y

1H '11
Note: Amounts may not add due to rounding.

1H '12

Solid cash flow growth and capital efficiency profile

WIRELESS

REVENUE
Retail Service Revenue ($B)
$14.0 $14.9 $15.2

Y/Y Growth

8.6%

Total revenue growth of 7.4% Y/Y

Retail postpaid revenue up 8.3% Y/Y Retail prepaid revenue up 27.2% Y/Y

2Q '11

1Q '12

2Q '12

Total Service Revenue ($B)

$14.7 $15.4 $15.8

Total data revenue of $6.9B, up 18.5% Y/Y

7.3%

Y/Y Growth

Web and e-mail services revenue up 32.3% Y/Y Messaging revenue up 4.2% Y/Y

2Q '11

1Q '12

2Q '12

Sustained top-line growth trends

WIRELESS

CONNECTIONS / NET ADDS / CHURN

Retail Connections (M)
89.7 93.0 94.2

Y/Y Growth

4.9%

Strong growth in retail connections, up 4.9% Y/Y 888K retail postpaid net adds*

2Q '11
Retail Prepaid

1Q '12

2Q '12

Retail Postpaid

290K retail prepaid net adds* 7% of retail postpaid base upgraded in 2Q 12

Retail Net Adds* (000)

1,318 734 1,178
Y/Y Growth

(10.6%)

7.5M Internet devices 61% of tablet customers are postpaid

0.89%
2Q 11

0.96%
1Q 12

0.84%
2Q 12

Retail Prepaid Retail Postpaid Retail Postpaid Churn

* Excludes acquisitions and adjustments

Lowest retail postpaid churn in 4 years

WIRELESS

PHONES / SMARTPHONES
Retail Postpaid Phone Connections (M)
50%
Smartphones Phones

36% 2Q '11

47% 1Q '12

Smartphone penetration of 50%, up 13.8% 5.9M smartphones sold in 2Q

73% of postpaid phone sales were smartphones 41% of postpaid smartphone upgrades were new to category

2Q '12

Smartphone Penetration

Retail Postpaid ARPU

$54.12 $55.43 4.9% 3.3% 2Q '11 1Q '12 2Q '12 $56.13 4.9%

Y/Y Growth

3.7%

Retail postpaid data ARPU of $24.53, up 15.4% Y/Y

Y/Y Phone ARPU Growth

Highest retail postpaid ARPU growth in 3 years

WIRELESS

4G LTE NETWORK DEPLOYMENT / COVERAGE

4G LTE POPs (M)
176 203 209 233

146

3.2M 4G LTE device sales in 2Q 12 Verizon Wireless 4G LTE network:

2Q '11 3Q '11 4Q '11 1Q '12 2Q '12

4G LTE Devices (M)

10.9 8.0 5.3 1.7
2.0% 2Q '11 12.2% 9.1% 6.1% 3.6% 3Q '11

3.1

offers more 4G LTE coverage than all other competitors networks combined now available in 337 markets covers nearly 75% of the U.S. population Recognized by RootMetrics in more markets for excellence in mobile performance experience

4Q '11

1Q '12

2Q '12

% of Retail Postpaid Connections

Continued progress in 4G LTE adoption

WIRELESS

PROFITABILITY
EBITDA Service Margin
49.0% 45.4% 46.3%

Record EBITDA service margin Continue to balance growth and profitability Sustained service revenue growth Increased smartphone penetration

2Q '11

1Q '12

2Q '12

On track to achieve $2B of expense reduction in 2012

Sustained industry-leading profitability

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WIRELINE

REVENUE & PROFITABILITY

Total Revenue ($B)
Y/Y Growth

$10.2

$9.9

$9.9

(3.1%)

Managing challenges Strategic revenue growth continues

2Q '11

1Q '12

2Q '12

Segment EBITDA ($B)

$2.4 23.8% $2.2 22.6% 1Q '12 $2.3 23.1%
Y/Y Growth

Consumer revenue up 2.5% Y/Y FiOS revenue grew 17.4% Y/Y Enterprise strategic services revenue up 4.4% Y/Y

(6.0%)

Sequential EBITDA margin growth

Product portfolio rationalization Targeted pricing actions Cost management

2Q '11

2Q '12

EBITDA Margin %

Focus on long-term profitability

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WIRELINE

MASS MARKETS
Consumer Revenue ($B)
$3.4
$92.44

FiOS now 65% of consumer revenue

$3.5
ARPU Y/Y Growth

$3.4
$97.88

$100.26

8.5%

16% Y/Y growth in triple play customers ARPU over $149

2Q '11

1Q '12

2Q '12

FiOS Internet subscribers

5.1M subscribers, 134K net adds 36.6% penetration

Consumer ARPU

Mass Markets Revenue ($B)

$4.1 $4.1 $4.1

FiOS Video subscribers

4.5M subscribers, 120K net adds 32.6% penetration 1.7%

Copper migrations accelerating Consumer ARPU now over $100

8.5% Y/Y growth Line loss continues to improve Y/Y

Y/Y Growth

2Q '11

1Q '12

2Q '12

Highest consumer revenue growth in several years

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WIRELINE

GLOBAL ENTERPRISE
Global Enterprise Revenue ($B)
Y/Y Growth

$4.0

$3.9

$3.8

(3.4%)

Global economy and F/X pressures Product rationalization actions

De-emphasis of CPE

Positive revenue growth without CPE and F/X impacts Strategic services revenue growth of 4.4%
2Q '11
Services

1Q '12
Hardware

2Q '12

52% of Global Enterprise revenue

Executing strategy

Confident in asset portfolio longer term

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CONSOLIDATED

2Q 12 SUMMARY Continued revenue growth across all strategic areas Strong earnings momentum and free cash flow generation Capital efficiency continues to improve Strategic investments set stage for continued growth Strategic actions leading to improved revenue mix and long-term profitability

On track for solid double-digit earnings growth in 2012

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