© 2022 Verizon
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“Safe Harbor” Statement
NOTE: In this presentation we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to
risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations.
Forward-looking statements also include those preceded or followed by the words “anticipates,” “believes,” “estimates,” “expects,” “hopes,” “forecasts,”
“plans” or similar expressions. 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. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking
statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking
statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could
affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: cyber attacks impacting our
networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters,
extreme weather conditions or terrorist attacks and any resulting financial or reputational impact; the impact of public health crises, including the COVID-19
pandemic, on our operations, our employees and the ways in which our customers use our networks and other products and services; disruption of our key
suppliers’ or vendors' provisioning of products or services, including as a result of geopolitical factors, the COVID-19 pandemic or the potential impacts of
global climate change; material adverse changes in labor matters and any resulting financial or operational impact; the effects of competition in the markets
in which we operate; failure to take advantage of developments in technology and address changes in consumer demand; performance issues or delays in
the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability
to implement our business strategy; adverse conditions in the U.S. and international economies; changes in the regulatory environment in which we operate,
including any increase in restrictions on our ability to operate our networks or businesses; our high level of indebtedness; significant litigation and any
resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt
securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or
availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or treaties, or in
their interpretation; and changes in 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.
This presentation includes the following measures, each of which is a non-GAAP financial measure: adjusted earnings per share, free cash flow
forecast, net unsecured debt/adjusted EBITDA ratio, and net unsecured debt/adjusted EBITDA ratio forecast. As required by SEC rules, we have
provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in materials on our website at
www.verizon.com/about/investors.
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Network-as-a-Service
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Network-as-a-Service Strategy
Mobility Broadband Cloud
21st Century Infrastructure
Personalized Distributed
Virtualized
Network
Metaverse
IoT
Our Network is the Foundation for the 5G Economy
2019
Key Verizon Milestones
2020 2021 2022
mmWave Acquisition
Verizon Intelligent
Edge Network
First to 5G
Mix & Match Launch
Verizon 2.0 Model
First Industry Green Bond
Nationwide 5G
Public MEC Launch
with AWS
Private MEC Launch
with AWS + Microsoft
CBRS Acquisition
Citizen Verizon
C-Band Acquisition
TracFone Acquisition
VMG Divestiture
10-Year NFL 5G Deal
EDISON Alliance
C-Band Deployment
Mix & Match 4.0
Verizon Ultra Internet
for Home & Business
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Delivering Financial Performance and Growth
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Wireless Service Revenue
$B
Dividends
$B
Adjusted EPS
$ per Share
5 Vectors of Growth
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5 Vectors of Growth Drive Verizon’s Performance
Revenue Growth
4% annual service
and other revenue
growth in 2024 &
beyond
Strong Margins
NaaS to drive long-term
consolidated Adjusted
EBITDA growth at or above
revenue growth
Capital Intensity
Reduction below
pre-C-Band levels
Leverage
Achieve target long-term
leverage ratio of 1.75-2.0x
by 2025
Return of Capital
Dividends and Buybacks
ESG
Invest $3B in Digital Inclusion
by 2025 & carbon neutral
operations by 2035
Financial Outlook Overview
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Fundamentals
Network Leadership
Customer-Driven Models Trusted Brand
Financial Discipline
Network-as-a-Service
Disrupt Broadband
Market
New
Business Models
Leadership in Mobility
Network-as-a-Service Framework
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iEN
OneFiber
Investments Enabling Our Strategy
C-Band
mmWave
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Network Spectrum Acquisition
Strategic Investments are the Key Enablers that Accelerate our Strategy
Building an Ecosystem Around Us
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Connectivity
OEMs
Cloud &
Integrators
Global
Partners
First-of-its-kind Strategic Partnership
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Verizon’s Network will Enable the Metaverse
● The Metaverse represents a new use case of
Verizon’s multi-purpose network
● Partnership to determine:
○ Verizon’s network requirements to support XR
cloud rendering and low latency streaming
○ Measure impact of edge computing with
Verizon’s MEC infrastructure on key
performance metrics for metaverse optimized
experiences
Verizon
Prepaid
Measures of Success
+ Drive new customer
growth
+ Increase revenue via
step-ups, premium
offerings and subscription
services
+ Capture share
+ Fiber
+ Fixed Wireless
Access (FWA)
+ Build on the first mover
advantage
+ Edge computing and
next-gen enterprise
solutions
+ #1 Share + Return on invested
capital
+ Wholesale, MVNOs, and
other strategic
partnerships
+ ARPA
+ Subscribers & Accounts
+ Premium Unlimited
Penetration
+ Households and
Businesses Covered
+ Total Subscribers
+ Total Revenue + Prepaid ARPU
+ Prepaid Subscribers
+ Prepaid Revenue
Measures of Success Measures of Success Measures of Success
Network-as-a-Service Overview
13
Measures of Success
+ Wireless Service Revenue
Addressable Market
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$120B Serviceable Addressable Market Expansion over Next 5 Years
2021
$460B
$120B
Growth
$340B
2026E
● Consistent strategy driving execution
● Portfolio of assets designed to compete
● Vibrant ecosystem, redefining our market
● Multiple new paths to growth
More Pathways to Growth
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Global Networks & Technologies Enable NaaS
Build the world’s
best networks
Deploy the world’s
best systems
Drive best
efficiency
Develop the world’s
best culture
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4 Pillars Serve as Foundation for NaaS Strategy and Underpin the 5G Economy
Core
Fiber
RAN
Technology
Multi-Purpose Network
What Makes Us Different
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Reduction in
Transport
Network Elements
Core
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Verizon Intelligent Edge Network Vision
Supports NaaS
93%
Reduction
in Edge
Routers
90%
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iEN Driving over $1B in Cumulative Benefits
Best-in-class
latency
Virtualization is Transforming Networks
Owned Webscale
Platform
World leader for
VRAN deployment
Virtualization Layer
Compute Network Storage
RAN Core
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Verizon is a World Leader in VRAN
Fiber is Fundamental to NaaS
45%
Expect 50% YE 2022
Sites on Verizon Fiber
YE 2021
16.5M
Expect Incremental 550K in 2022
Fios Open for Sale
YE 2021
21
Owned Fiber Assets Improves Performance and Reliability
Fiber Owner’s Economics
10x
Expected Backhaul Increase
~$300M
Owner’s Economics Benefits
Access cost savings in 2021
22
Fiber Owner’s Economics Drives Cost Efficiency
Transforming the Network
4.5M
Circuits
Off Copper
60M
kWhs Saved
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Wire Centers
Converted to Fiber
11%
Copper Trouble
Reduction YoY due to
network transformation
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Copper to Fiber Transformation Drives Additional Cost Savings
Industry Leading RAN Design
mmWave
High density + Urban + Enterprises + Industrial
Mid-Band
Suburban + In-building + Complements mmWave
Low-Band
Wide Coverage Rural + Delivers IoT over distances
Satellite
Global Coverage +Enterprise grade connectivity +
Automobile + IoT + Backhaul & Broadband + 5G Integration
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Coverage and Range
mmWave Usage Growth
Avg. daily usage (TB)
mmWave Usage is Growing Fast
mmWave Usage in Deployed Footprint
Percentage usage on mmWave
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mmWave is Vital to 5G Plan to Support and Scale Usage in Dense Areas
Ultra Speed
C-Band Performance
Massive
Capacity
Peak DL speeds
on C-Band
C-Band
Spectrum (MHz)
>900
Mbps
60
Today
Peak DL speeds
with aggregation
C-Band
Spectrum (MHz)
>1
Gbps
161
2023+
Unique devices connected
to C-Band network
12M
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C-Band off to a Fast Start with Better than Expected Performance
Efficient Use of One Network for Mobility and FWA
12PM –
6PM
Peak Mobility Usage
7PM –
9PM
Peak FWA Usage
While customers are binge watching videoWhile customers are at work
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Mobility & FWA Peak Usage is Complementary
Capacity Enablers
● More spectrum
● Complementary usage patterns
● Bits per Hertz efficiency
Spectral Efficiency Forecast with C-Band
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5G Spectrum is 80% more Efficient than LTE
C-Band Coverage Exceeding Expectations
100M+
POPs
175M
POPs
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EOY
2021
2021
Investor Day Guide
2022
Investor Day Guide
100M
POPs
250M+
POPs
175M
POPs
EOY
2022
EOY
2023
250M+
POPs
C-Band Deployment is Accelerating Faster than Original Build Plan
EOY
2024
Customer
Network Leadership in MEC & Multi-Cloud Services
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Cloud Provider 1
Cloud Provider 2
Customer Cloud
MEC
iEN: Multi-Cloud
Leverage Intelligent Edge Network to Connect Customers to Multiple Cloud Environments
© 2022 Verizon
Evolved Packet Core
5G Services Evolution
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CapabilitiesTechnologies
LTE, 5G Broadband, Fixed
Wireless, Voice over LTE
Consumer & Private
Network Slices
Non-Standalone Standalone Ultra Reliable
Cloud Native 5G Packet Core
5G Core Evolution will Enable Network Slicing Use Cases as the Ecosystem Evolves
© 2022 Verizon
Multi-gig up to 10 Gbps symmetrical using NG-PON2
Advanced Fios Network
Speed Efficiency Multi-Purpose Reliability
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Upgraded Technology Enhances Fios Customer Speeds
© 2022 Verizon
● Cloud integration and digitization
● Market-leading platform
● Coverage
● Low latency
● Real-time
Internet of Things
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Unique Network Capabilities Make Verizon an Ideal IoT Partner
© 2022 Verizon
● Network leadership in core, fiber, RAN and technology
● Reliable, differentiated and scalable platform
● Top engineering talent
More Pathways to Growth
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Verizon confidential and proprietary. Unauthorized disclosure, reproduction or other use prohibited.
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© 2022 Verizon
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Path to Accelerated Growth
Network-as-a-Service
Be our customers’
choice for their digital
transformation journey
Build on our strong
leadership position
Expand into new
growth categories
© 2022 Verizon
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Market Leader in Mobility and Fiber Broadband
44% 49%
Wireless Share
#1 in Wireless across
Enterprise, Public Sector & SMB
B2B Fios Share
#1 broadband provider in
Fios footprint
© 2022 Verizon
18%
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5G Mobility
80%
Expected 5G Mobility Drivers
● Continued growth in premium plan step-ups
● Suite of above network products
○ Security
○ One Talk
○ Unified Communications
5G Phone Adoption Outlook
4Q21 Delivered Highest Wireless Win Share in More than 2 Years;
C-Band Accelerates Industry-Leading Market Share Growth
YE 2021
YE 2025
© 2022 Verizon
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Nationwide Broadband
14M
Expected FWA business
locations covered by 2025
~100K
1M+
Fixed Wireless Access (FWA) Subscribers
FWA as Primary Broadband Access for Every Customer Segment and New Use Cases
YE 2021
YE 2025
© 2022 Verizon
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Verizon Addressable Opportunity by 2025
$30B
Private Networks +
Edge Compute +
Enterprise Solutions
• Rapid ecosystem development
• First and only player with all 3 major cloud platforms
• Seamlessly integrate Public and Private MEC into hybrid, multi-cloud solutions
© 2022 Verizon
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5G Enables Increased Sensor Capacity & Accelerated Adoption
Continued double-digit IoT
connections growth expected
© 2022 Verizon
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Enterprise Private Networking Solutions
Increased
Productivity
Revenue
Opportunity
Cost
Savings
Network
Customization
Operations
Monetization
Gateway to Enable 5G Private Edge Computing
© 2022 Verizon
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Private Networking Use Cases
Automotive
In-building coverage
with Hybrid MEC
Financial
Services
Industrial
Operations
Logistics
Education/
Universities
Sporting Events
& Entertainment
Superior Network Positions Verizon to Drive the Market to Accelerated Adoption of Private Networks
© 2022 Verizon
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Business Transformation
New Customers & Revenue Acceleration
Enhanced Customer Experiences & Digital
Strong Cost Control & Business Simplification Initiatives
1
2
3
Targeting 25% EBITDA Margin
● Building the 21st Century infrastructure:
○ Mobility, Broadband & Cloud
● Accelerating Growth with Many Ways to Win
● Delivering Transformational Customer Outcomes
More Pathways to Growth
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1
Diversified
brand portfolio
2
Home broadband
coverage
3
Connecting everyone,
everything, everywhere
Even Stronger Consumer Group than 12 Months Ago
Verizon
Prepaid
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100M POPs mobility C-Band coverage
30M FWA HHs coverage
© 2022 Verizon
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Go to Market Strength
Value Prop
Differentiation
Product
Innovation
Customer
Experience
Lifetime Value
Management
Omni-Channel Capabilities
Network-as-a-Service
Wholesale
Brand Equity
© 2022 Verizon
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Winning with Mix & Match 4.0 and C-Band
Expanded 5G Ultra
Wideband coverage
Unlimited premium data
with no speed caps
The most hotspot
capacity offered by any
carrier
6 entertainment
subscriptions
Mix and Match Offers Flexibility and Efficiency that brings more Value to Customers
© 2022 Verizon
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Personalized Customer Base Management
ARPA & Step-up
Strategy
Exclusive
Partnerships
Personalized
Upgrade Offers
Maximize Yield Drive Lifetime Value Create Loyalty
© 2022 Verizon
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Exceeding 2021 Investor Day Targets
5G Postpaid
Phone Penetration
Postpaid Plan Mix ARPA Forecast
Exceeded
Expectations
34%
EOP 2021
33%
Premium UNL
EOP 2021
3.3%
ARPA growth to
$122.30 FY 2021
2021
Outlook
© 2022 Verizon
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Raising our Outlook
2022
Outlook
5G Postpaid
Phone Penetration
Postpaid Plan Mix ARPA Forecast
© 2022 Verizon
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YE 2025 Nationwide Broadband Targets
50M
18M
Expected HHs covered FWA
Expected Fios Open For Sale
Opportunity to be THE Nationwide Broadband Provider in the U.S.
© 2022 Verizon
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Winning with Mobile & 5G Home
No contracts,
data caps or extra
fees, equipment
included
50% off pricing for
Mobile & Home
customers
Self set-up
enhancements
Base & Acquisition
management
to support stress
free switching
Increase 5G Open
for Sale (OFS)
Disrupting the Industry with Unparalleled Experience
© 2022 Verizon
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Home Broadband Subscribers
6.5M
11M
YE 2021
2025 E
Total Broadband Subscribers = Fios + Fixed Wireless Access
© 2022 Verizon
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Scaling Value Drives Churn Benefits
16bps
34bps
Active Content
Subscription
Premium Unlimited +
Broadband
Incremental Improvement in Consumer Phone Churn
© 2022 Verizon
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Unlocking Substantial Value
Go to Market Agility
& Lean Structure
Amplify Mission with
New Products, Services
and Innovation
Value
Market
Premium
Market
© 2022 Verizon
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Verizon Value Market Outlook
Prepaid Wireless Service Revenue
© 2022 Verizon
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Network Monetization
Strong Revenue
Stream
Healthy Margins Open for Business
Network-as-a-Service Strategy Creates an Additional Pathway to Revenue Growth
© 2022 Verizon
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Operational Excellence Model
Financial
Imperatives
Go to market
Portfolio
Omni
Operations
Consumer
Better Customer Experience
Lower Costs to Serve
Strong Margins
● Multiple paths to grow
● Leading all customer segments
● Disrupting home broadband nationwide
● Agility and nimbleness
● Customer-centric model
More Pathways to Growth
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● Acquired C-Band and achieved 100M POPs Target
● Completed TracFone acquisition
● Divested non-core assets
● Achieved financial targets
2021 Goals Delivered
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© 2022 Verizon
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Platform for Accelerating Performance
Revenue
Growth
Operating
Leverage
Capital
Efficiency
Free Cash Flow
Conversion
Capital
Allocation Model
© 2022 Verizon
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5 Vectors Drive Accelerating Revenue
Expected Annual
Service & Other
Revenue Growth
2022
~3%* YoY
2023
3%+ YoY
2024+
4% YoY
*Organic (excludes Verizon Media Group and TracFone)
Proof Point: FWA Scaling Quickly. Positioned to Deliver 150K+ FWA Adds in 1Q22
© 2022 Verizon
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Revenue Growth Drivers
Expected Service & Other Revenue Growth ($B)
Consumer
Business
2.2%* 4%
Growth rates
Vector Contributions to 2022-2025 Growth
* Excludes impact from Verizon Media
© 2022 Verizon
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5G Mobility Growth Drivers
5G Mobility Growth Outlook*
* Vector includes postpaid net adds, ARPA/ARPU, and device protection
Expected Key Drivers
Consumer
• 2.0%+ ARPA CAGR thru 2025 (excl. FWA)
• ~2/3 from Premium mix and ~1/3 from products
• Growth from subscribers and accounts
• Customers with 5G phones are 2.5X more likely to
take premium unlimited
Business
• Growth from market leadership expansion
• 5G adoption grows to 80% by year end 2025
• SMB premium mix of ~70% by year end 2025
© 2022 Verizon
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Nationwide Broadband Growth Drivers
Expected Key Drivers
Broadband Revenue Outlook*
*Note: Includes both Consumer & Business FWA + Fios Revenue
FWA
• 50M Households Covered by YE 2025
• 14M Businesses covered by YE 2025
• 4M–5M Subscribers by YE 2025
Fios
• >18M Open For Sale by YE 2025
• ~8M Internet Subscribers by YE 2025
• Consumer Internet-only mix grows from
40% to 50%+ by YE 2025
Format complete.
Ready for Proof
Graph data needed -IR to
manage
OG LINK HERE
© 2022 Verizon
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MEC & B2B Solutions Growth Drivers
MEC & B2B Solution Revenue Outlook* Expected Key Drivers
• IoT revenue grows from $1.5B+ in 2021 driven by
double-digit connections CAGR thru 2025
• ~$1B of growth from Public MEC by YE 2025
• Scaling private networks, delivering private MEC
and solutions revenue
* Vector includes IoT, MEC, Private Wireless Networks, BlueJeans and other services
© 2022 Verizon
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Value Market Growth Drivers
Expected Key Drivers
Prepaid Revenue Growth Outlook
* Tracfone contribution only includes incremental revenue post acquisition
• Growing subscriber base over long term
• Shift to unlimited plans and growth in value added
services driving ARPU
• Migrating 6M+ off-net subs helps drive ~$1B in
synergies
© 2022 Verizon
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Operating Leverage Plan
Operating Scale
from Multiple
Revenue Sources
Network
Owner’s
Economics
Adjusted EBITDA
Growth at or Above
Revenue Growth
$300M 2021 Fiber Access Cost Savings and Annualized Savings Approaching $1B by 2025
© 2022 Verizon
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Improving Capital Efficiency over Time
Capex Outlook ($B)
• C-Band accelerated $10B spend concludes in 2023
• $3B run-rate savings from key programs by 2024
○ Less reliance on 4G LTE capacity over time
○ Completion of One Fiber core build in 2023
○ iEN efficiencies result in virtualization benefits
Expected Key Drivers
* At the mid-point of 2022 guidance
Positioned for $20B-$22B FCF in 2023 and Expected to Expand thereafter
© 2022 Verizon
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Target Leverage Ratio
Leverage Ratio (Net Unsecured Debt/Adjusted EBITDA)
Revenue Growth plus Capital Intensity Reduction Support Deleveraging
© 2022 Verizon
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Capital Allocation Model
Investment
in the Business
• Capital Expenditures
• Spectrum
• Mergers & Acquisitions
Commitment to
Dividend
• 15 consecutive years of
increases
Strong
Balance Sheet
• Target net unsecured
debt to adjusted
EBITDA range of
1.75x – 2.0x
Share
Repurchases
• Efficient return of
excess cash flow to
shareholders
1 2
3 4
● Clear path to 4% annual service and other revenue growth in 2024+
● Adjusted EBITDA growth at or above revenue growth
● Efficiencies drive lower capital intensity and overall spend
● Target leverage ratio remains at 1.75x – 2.0x with share repurchases considered at 2.25x
More Pathways to Growth
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© 2022 Verizon
