Summary of Lumen Technologies, Inc. Conference Call Company Overview - **Company**: Lumen Technologies, Inc. (NYSE:LUMN) - **Industry**: Telecommunications - **Conference Date**: March 7, 2023 Key Points Company Structure and Market Position - Lumen's business is composed of approximately 80% enterprise and 20% consumer segments [3][4] - The company operates the largest ultra-low loss fiber network globally, with 6 million fiber miles added recently and another 6 million planned [3] - Lumen serves 240 third-party data centers and has 150,000 on-net buildings [3] Strategic Focus and Management Changes - New leadership, including CEO Kate Johnson, aims to shift from an internally-focused strategy to a customer-centric approach [5][6] - The management team has a tech-oriented background, emphasizing innovation and growth rather than efficiency alone [7][8] - Five key priorities for the year include developing customer obsession, innovating for growth, simplifying operations, and fostering a growth mindset culture [8][10] Financial Investments and Growth Strategy - Lumen plans to invest approximately $700 million of free cash flow into digitizing sales processes, expanding network as a service, and automating internal processes [9][10] - The company aims for stable revenue and EBITDA by the end of 2024, with growth expected thereafter [13] Product and Service Development - Lumen is focusing on enhancing product offerings, including edge compute and security solutions like Black Lotus Labs [12][26] - The company is transitioning from legacy products to newer technologies, emphasizing proactive customer engagement [20][21] Consumer Market and Fiber Expansion - Lumen is expanding its fiber network to reach 8 to 10 million homes, currently serving about 3 million [4][30] - The Quantum Fiber product has received positive customer feedback, with a net promoter score (NPS) above 50 [30] - The company is focusing on major metropolitan areas for fiber build-out, facing challenges such as permitting and construction conditions [31][36] Divestitures and Simplification - Recent divestitures in Latin America and other regions were made to streamline operations and focus on core markets [22][24] - The company aims to reduce debt and concentrate investments in areas with growth potential [23][24] Competitive Landscape - Lumen's strategy is to compete primarily against cable providers, leveraging its fiber offerings to regain market share lost to DSL [44] - The company believes its fiber product is superior to cable offerings, providing symmetrical gigabit speeds at competitive pricing [46] Future Outlook - Lumen is optimistic about growth opportunities in both enterprise and consumer segments, with a focus on addressing customer needs and enhancing service delivery [27][28] - The company plans to provide more detailed insights into its growth strategy during an upcoming Investor Day [48] Additional Insights - The management emphasizes the importance of aligning resources and incentives to drive performance and accountability [13][10] - There is a recognition of the need for a cultural shift within the company to prioritize growth over mere efficiency [10][20]

Summary of Lumen Technologies, Inc. Conference Call Company Overview - **Company**: Lumen Technologies, Inc. (NYSE:LUMN) - **Date**: March 6, 2023 - **Participants**: Chris Stansbury (CFO), Simon Flannery (Morgan Stanley) Key Points Company Changes and Strategy - Lumen divested two major businesses: the 20 state ILEC business to Apollo and the LATAM business, creating Brightspeed and Cirion respectively [2][3] - The divestitures led to a reevaluation of capital allocation priorities, resulting in the elimination of dividends and a focus on growth [2][3] - The company aims to achieve revenue and EBITDA stability by the end of 2024, with a growth mindset shift [3][7] Network and Product Opportunities - Lumen possesses the largest ultra-low loss fiber network globally, with plans to double its footprint [5] - The company recognizes the need to monetize its network effectively, especially in a commoditized market [6] - There is a focus on expanding offerings beyond connectivity, including security and edge computing solutions [6] Internal Focus and Resource Allocation - The "grow, nurture, harvest" strategy was introduced to improve visibility and resource allocation within the company [9][10] - This strategy aims to prioritize growth products over legacy products, ensuring resources are allocated effectively [10][12] Financial Guidance and Investments - Lumen plans to invest $700 million of free cash flow in 2023 and 2024, with $500 million allocated to CapEx and $200 million to OpEx [17][19] - The company is focused on digitizing its sales process and simplifying IT systems to unlock costs [17][18] - Guidance indicates a push for leverage reduction, with proceeds from divestitures aimed at deleveraging [25][55] Market Dynamics and Competitive Landscape - The enterprise market is experiencing slow approval cycles, with no significant changes expected in the near term [31] - Lumen is positioned to capitalize on hybrid work environments, providing connectivity and security solutions [31] - The company is also exploring partnerships with cloud companies to enhance its edge computing capabilities [34] Fiber Build and Market Penetration - Lumen's Quantum Fiber product has shown promising penetration rates, with a focus on thoughtful investment in fiber builds [46][47] - The company aims to pass 5 to 7 million homes, with a current target of 0.5 million homes for the year [51][52] Supply Chain and Inflation Challenges - Supply chain issues and inflationary pressures are expected to persist in the near term, although inventory levels are being managed [61][62] Additional Insights - The company is shifting its operational structure to enhance focus on consumer and enterprise segments [48] - There is an emphasis on customer lifetime value and transitioning customers from legacy services to newer offerings [40] - Lumen is committed to maintaining positive cash flow while navigating its investment cycle [57] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Lumen's focus on growth, operational efficiency, and market opportunities.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) 100 CenturyLink Drive, FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 L ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or othe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or other jur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or other ju ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 Lumen Technologies, Inc. (Exact name of registrant as specified in its charter) | Louisiana | 72-0651161 | | --- | --- | | (State or other jur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or othe ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or other jur ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended March 31, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or other jurisdiction of incorporation or organization) 100 CenturyLink Drive, Monroe, Louisiana 7120 ...