Verizon Communications

Company & Industry Overview

13th February 2016

Confidential Presentation for Verizon Communications
 Verizon Communications: Overview
Overview Key Management
 Founded in 1983 as Bell Atlantic Corporation, the company, acting
through its subsidiaries, is one of the world’s leading providers of  Chairman and CEO - Lowell C. McAdam
communications, information and entertainment products and
services to consumers, businesses and governmental agencies
 Formed in June 2000 when the Federal Communications
 EVP and Chief Financial Office - Francis J. Shammo
Commission approved a US$64.7 billion merger of telephone
companies Bell Atlantic and GTE
 Products include
•Fixed-line and mobile telephony, EVP and Chief Strategy Officer - Roy H. Chestnutt
•Broadband and fixed-line internet services,
•Digital television and network services, and
 2015 revenue = $131.6bn aagainst $127.1 bn in 2014 , growth of
3.6% Y/Y  Chief Communications Officer - Jim Gerace
 2015 adjusted EPS = $3.99 against $3.35 in 2014, growth of 19.1%
Y/Y

Financial Performance
($bn)

($)

Consolidated Cash Flow Summary 4Q, 2015 ($bn) 2015 ($bn)

140 4.2
120 3.6 Cash flow from operations $10.5 $38.9
100 3.0
Capital expenditures $5.2 $17.8
80 2.4
60 1.8 Free cash flow $5.3 $21.2
40 1.2
20 0.6 Dividends paid $2.2 $8.5
0 0.0
2012 2013 2014 Total debt $110.2 $110.2

Consolidated Revenue Diluted EPS Dividend/Share

Net debt to adjusted EBITDA 2.3x 2.3x
___________________________
Source: company filings.
Verizon Communications:Timeline
Verizon completes fiber-Optic
Lowell McAdam transformation of lower Verizon completes
becomes Verizon Manhattan acquisition of AOL
chairman and CEO

2011 2012 2013 2014 2015

• Verizon acquires
Hughes Telematics inc. Verizon acquires
Vodafone's stake in
Verizon Wireless

Growth strategy

___________________________
Source: company filings.
Verizon Communications: Competitive intelligence
Market Med
Company Net Income P/S P/B P/E Dividend 5-Yr Rev Interest D/E
Cap Oper.
Mil Mil Yield% CAGR% Margin% Coverage
Verizon Communications Inc 203891 10257 1.6 15.5 20.1 4.4 3.3 13.7 4.1 8

MagicJack VocalTec Ltd 118 7 1.3 2.3 17 — -0.1 11.7 71.5 —

iiNET Ltd — 70 — — — — 18.7 10.3 5.9 0.9

iTalk Inc 2 0 0.4 — — — — -286.4 -3.1 —

iPass Inc 57 -17 0.9 2.3 — — -16.4 -2.8 — —

iPackets International Inc — — — — — — — — — —

Freenet AG 4347 239 1.3 3.1 16.6 4.9 -3.3 6.6 — 0.2

e-Kong Group Ltd — 9 6.2 2.4 49.2 — -37.6 -23.4 -49.2 —

USP Future Outlook

 Largest Wireless Carrier in US
 America’s Largest and Most Reliable Network
 Strong reputation of network coverage with 100 million plus
wireless subscribers
 4G Network capabilities
 Brand Recognition & Global Goodwill
 Deliver Strong Operating and financial performance
 Focus to Invest in Network
 Focus ton new revenue stream
Return Maximum value to shareholders

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Source: company filings.