Investor presentation march_2017

1. LEVEL 3 COMMUNICATIONS
JULY 2016
Level 3 Communications
March 2017

2. 2
Modified Adjustment and Cautionary Statement
In this presentation, Modified prior period results exclude the company’s Venezuelan subsidiary’s operations, which
were deconsolidated as of September 30, 2015, and reflect changes made to customer assignments between the
wholesale and enterprise channels at the beginning of 2016. Consistent with the SEC’s Compliance and Disclosure
Interpretations relating to non-GAAP metrics, we have made changes to some of our earnings materials. See slide 17
for Non-GAAP Reconciliations.
Some statements made in this presentation are forward-looking in nature and are based on management's current
expectations or beliefs. These forward-looking statements are not a guarantee of performance and are subject to a
number of uncertainties and other factors, many of which are outside Level 3's control, which could cause actual
events to differ materially from those expressed or implied by the statements. Important factors that could prevent
Level 3 from achieving its stated goals include, but are not limited to, the company's ability to: increase revenue from
its services to realize its targets for financial and operating performance; develop and maintain effective business
support systems; manage system and network failures or disruptions; avert the breach of its network and computer
system security measures; develop new services that meet customer demands and generate acceptable margins;
manage the future expansion or adaptation of its network to remain competitive; defend intellectual property and
proprietary rights; manage risks associated with continued uncertainty in the global economy; manage continued or
accelerated decreases in market pricing for communications services; obtain capacity for its network from other
providers and interconnect its network with other networks on favorable terms; successfully integrate future
acquisitions; effectively manage political, legal, regulatory, foreign currency and other risks it is exposed to due to its
substantial international operations; mitigate its exposure to contingent liabilities; and meet all of the terms and
conditions of its debt obligations. Additional information concerning these and other important factors can be found
within Level 3's filings with the Securities and Exchange Commission. Statements in this presentation should be
evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such
obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or
otherwise.

3. 3
Modified Adjustment and Cautionary Statement
Forward-Looking Statements
Except for the historical and factual information contained herein, the matters set forth in this communication, including statements regarding the expected
timing and benefits of the proposed transaction, such as efficiencies, cost savings, enhanced revenues, growth potential, market profile and financial
strength, and the competitive ability and position of the combined company, and other statements identified by words such as “will,” “estimates,”
“anticipates,” “believes,” “expects,” “projects,” “plans,” “intends,” “may,” “should,” “could,” “seeks” and similar expressions, are forward-looking
statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are
subject to a number of risks, uncertainties and assumptions, many of which are beyond our control. These forward-looking statements, and the assumptions
upon which they are based, (i) are not guarantees of future results, (ii) are inherently speculative and (iii) are subject to a number of risks and uncertainties.
Actual events and results may differ materially from those anticipated, estimated, projected or implied in those statements if one or more of these risks or
uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: the ability of
the parties to timely and successfully receive the required approvals for the combination from regulatory agencies free of conditions materially adverse to
the parties and from their respective shareholders; the possibility that the anticipated benefits from the proposed transaction cannot be fully realized or may
take longer to realize than expected; the possibility that costs, difficulties or disruptions related to the integration of Level 3’s operations with those of
CenturyLink will be greater than expected; the ability of the combined company to retain and hire key personnel; the effects of competition from a wide
variety of competitive providers, including lower demand for CenturyLink’s legacy offerings; the effects of new, emerging or competing technologies,
including those that could make the combined company’s products less desirable or obsolete; the effects of ongoing changes in the regulation of the
communications industry, including the outcome of regulatory or judicial proceedings relating to intercarrier compensation, interconnection obligations,
access charges, universal service, broadband deployment, data protection and net neutrality; adverse changes in CenturyLink’s or the combined company’s
access to credit markets on favorable terms, whether caused by changes in its financial position, lower debt credit ratings, unstable markets or otherwise;
the combined company’s ability to effectively adjust to changes in the communications industry, and changes in the composition of its markets and product
mix; possible changes in the demand for, or pricing of, the combined company’s products and services, including the combined company’s ability to
effectively respond to increased demand for high-speed broadband service; changes in the operating plans, capital allocation plans or corporate strategies of
the combined company, whether based on changes in market conditions, changes in the cash flows or financial position of the combined company, or
otherwise; the combined company’s ability to successfully maintain the quality and profitability of its existing product and service offerings and to introduce
new offerings on a timely and cost-effective basis; the adverse impact on the combined company’s business and network from possible equipment failures,
service outages, security breaches or similar events impacting its network; the combined company’s ability to maintain favorable relations with key business
partners, suppliers, vendors, landlords and financial institutions; the ability of the combined company to utilize net operating losses in amounts projected;
changes in the future cash requirements of the combined company; and other risk factors and cautionary statements as detailed from time to time in each
of CenturyLink’s and Level 3’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”). Due to these risks and uncertainties, there can be
no assurance that the proposed combination or any other transaction described above will in fact be completed in the manner described or at all. You
should be aware that new factors may emerge from time to time and it is not possible for us to identify all such factors nor can we predict the impact of each
such factor on the proposed combination or the combined company. You should not place undue reliance on these forward-looking statements, which
speak only as of the date of this communication. Unless legally required, CenturyLink and Level 3 undertake no obligation and each expressly disclaim any
such obligation, to update publicly any forward-looking statements, whether as a result of new information, future events, changed events or otherwise.

4. 4
Modified Adjustment and Cautionary Statement
Additional Information
In connection with the proposed combination, CenturyLink filed a registration statement on Form S-4 with the SEC
(Registration Statement No. 333-215121), which was declared effective by the SEC on February 13, 2017. CenturyLink and
Level 3 have filed a joint proxy statement/prospectus and will file other relevant documents concerning the proposed
transaction with the SEC. CenturyLink and Level 3 began mailing the definitive joint proxy statement/prospectus to their
respective security holders on or about February 13, 2017. The definitive joint proxy statement/prospectus, dated as of
February 13, 2017, contains important information about CenturyLink, Level 3, the proposed combination and related
matters. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS
AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED COMBINATION OR
INCORPORATED BY REFERENCE IN THE DEFINITIVE JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY BECAUSE THEY
CONTAIN IMPORTANT INFORMATION. Investors and security holders may obtain the definitive joint proxy
statement/prospectus and the filings that are incorporated by reference in the definitive joint proxy statement/prospectus,
as well as other filings containing information about CenturyLink and Level 3, free of charge, at the website maintained by the
SEC at www.sec.gov. Investors and security holders may also obtain these documents free of charge by directing a request to
CenturyLink, 100 CenturyLink Drive, Monroe, Louisiana 71203, Attention: Corporate Secretary, or to Level 3, 1025 Eldorado
Boulevard, Broomfield, Colorado 80021, Attention: Investor Relations.
.

5. 5
Level 3 Overview

6. 6
Company Overview
Over $8B FY 2016 Total Revenue
Approx. 360 Colocation and Data Center facilities
200,000+Route Miles of Fiber Globally
OurCompany
Approx. $2.9B FY 2016 Adjusted EBITDA
~12,600 Employees
Connecting 60+ Countries and Counting

7. 7
Global Reach
Our expansive global network provides a competitive advantage

8. 8
Level 3 Delivers Adaptive Networking
Enabling the journey
to the hybrid cloudConnecting sites, people and
machines in the digital
organization
Cloud Ecosystem Real-Time
Communications
Hybrid Connectivity Security
Protecting and defending
public/private networks
and cloud connections
Providing a reliable and
secure, common
workforce experience
anytime, anywhere

9. 9
Level 3 Strategy

10. 10
5.2 billion
people connected
By 2017, the world will have almost
5.2 billion people connected
through mobile devices
More mobility
By 2020, each employee will
have seven connected devices
More devices
In 2016, 6.4 billion devices were
connected to the Internet - and 5.5 million
new 'things' will join them each day until
those numbers reach 20.8 billion by 2020
Internet of Things
82% of enterprises report
a multi-cloud strategy2
Cloud
By 2020, Global IP traffic will
increase threefold
More data 50% of workers have jobs that
are compatible with tele-work
and 80% - 90% of workers would
like to tele-work
Dispersed
Workforces
Industry Trends and Digital Transformation Drive Need for Significant Business Change
Industry Trends and Digital Transformation

11. 11
Digital Transformation Creates More and More Connections
IT to become more agile to keep up with the pace of change in the constantly
changing environment for connections
IT continues to evolve from a back-office necessity to a critical business driver
continues to provide opportunities for our business

12. 12
CIO Challenges have Anchored the Level 3 Value Proposition
GROWTH EFFICIENCY SECURITY
Traffic growing
~23%/year
• Mobile traffic growing ~57%/year
• ~10B new connected devices
by 2019
IT spend down
1.3% in 2015
DDoS attacks
up 117%
in the past year

13. 13
Sweet
Spot for
Level 3
Strategic
Enterprise
Tier 1
4,000 – 30,000 employees
Tier 2
500-4,000 employees
Tier 3
15-500 employees
30,000+ employees
and/or 800 sites
High
bandwidth
or On-net
Diverse Customer Base

14. 14
Level 3 Strategy
1 2 3 4
FOCUS ON
ENTERPRISE
CUSTOMERS
EXPAND
OUR
NETWORK
DELIVER A
SUPERIOR
CUSTOMER
EXPERIENCE
EVOLVE OUR
PRODUCT
PORTFOLIO
Continue to
capture share of
the global
communications
market
Invest in our
product portfolio
to solve
customers’
complex needs
Build directly to
our customers to
provide better
network
performance
Invest in
operational
excellence
Strategy to position the company to become the premier provider of global
communications services

15. 15
Level 3 Financial Overview

16. 16
$(106)
$(165)
$(47)
$251
$626
$1,009
2011 2012 2013 2014 2015 2016
Historical Financial Performance
Note: For definitions and reconciliation of non-GAAP results to GAAP measures used in this presentation can be found at investors.level3.com
Total Revenue
($ in millions)
Adj. EBITDA and Adj. EBITDA Margin
($ in millions)
Free Cash Flow
($ in millions)
5.8x
5.1x
4.8x
4.4x
3.8x
3.2x
2011 2012 2013 2014 2015 2016
Leverage Ratio
$4,333
$6,376 $6,313
$6,777
$8,229 $8,172
2011 2012 2013 2014 2015 2016
$958
$1,459
$1,624
$1,895
$2,638
$2,850
22.1%
22.9%
25.7%
28.0%
32.1%
34.9%
2011 2012 2013 2014 2015 2016

17. 17
74%
26%
66% 34%
Level 3’s Business is Enterprise Driven
Level 3 continues to be successful in delivering targeted solutions to meet the
needs of enterprise customers
1Q14 4Q16
WholesaleEnterprise
1Q11
CNS Revenue $729 M CNS Revenue $1,457 M CNS Revenue $1,934 M
48%
52%

18. 18
Credit Profile Overview
➢ Level 3 continues to focus on prudent balance sheet management
➢ Rating agencies have acknowledged Level 3’s balance sheet improvement, upgrading credit ratings several notches
in the past several years
Caa1/B- B3/B- B3/B- B3/B B2/BB- Ba3/BB-
Note: Ratings denote Moody’s and Standard & Poor’s ratings.
2016 Pro forma reflects the refinancing of Term Loans completed on February 21, 2017
Ba3/BB
4.0
5.0
5.7 5.6 5.6
6.0
6.7
8.1 8.0
7.5
6.8
5.9
4.8
4.4
7.0x
5.8x
5.1x
4.8x
4.4x
3.8x
3.2x
2010 2011 2012 2013 2014 2015 2016 PF
Weighted Avg Maturity (Years) Weighted Avg Cost of Debt (%) Leverage

19. 19
Summary of Financial Data
December 31,
2016
December 31,
2015(1)
December 31,
2016
December 31,
2015(1)
December 31, 2015
Modified (1)(2)
Core Network Services 1,934$ 1,943$ 7,767$ 7,757$ 7,685$
Wholesale Voice Services 98 110 405 472 472
Total Revenue 2,032$ 2,053$ 8,172$ 8,229$ 8,157$
Adjusted EBITDA 709$ 681$ 2,850$ 2,638$ 2,592$
Capital Expenditures (306)$ (330)$ (1,334)$ (1,229)$ (1,219)$
Unlevered Cash Flow 386$ 399$ 1,513$ 1,293$ 1,262$
Free Cash Flow 251$ 226$ 1,009$ 626$ 595$
Network Access Margin 66.5 % 65.5 % 66.7 % 65.6 % 65.4 %
Adjusted EBITDA Margin 34.9 % 33.2 % 34.9 % 32.1 % 31.8 %
Net Income 250$ 3,323$ 677$ 3,433$
Basic Earnings Per Share 0.70$ 9.33$ 1.89$ 9.71$
Weighted-Average Shares
Outstanding (in thousands)
359,937 356,274 358,559 353,385
Diluted Earnings Per Share 0.69$ 9.24$ 1.87$ 9.58$
Weighted-Average Shares
Outstanding (in thousands)
363,250 359,712 361,472 358,593
Three Months Ended Year Ended
Level 3 Communications Consolidated
($ in millions)
(1) The 2015 results have been adjusted to reflect changes made to customer assignments between the wholesale and enterprise channels as of the beginning of 2016.
(2) Represents the consolidated results modified to exclude the Company's Venezuelan subsidiary's operations that was deconsolidated as of September 30, 2015, except for Net Income and Basic
and Diluted Earnings per Share.

20. 20
CenturyLink to acquire Level 3

21. 21
Advancing Shared Visions and Strategies
Improve the Lives of Our
Customers by Connecting
them to the Digital World
The Trusted Connection to
the Networked World
• Provide our customers leading
products and services enabled by
the fastest, most reliable
broadband network
• Customer-centric focus delivered
by committed employees
• Build scalable and efficient
network-based services to deliver
industry-leading value
• Operational excellence is our core
value discipline

22. 22
Transaction Overview
Leading Facilities-
Based Enterprise
Communications
Provider
Strong Financial
Profile
Multiple
Opportunities for
Growth
Proven Ability to
Integrate and Meet
/ Exceed Synergy
Targets
● $19bn in pro forma business revenue represents ~76% of total consolidated revenue (1)(2)
● Increases network by 200,000 route miles of fiber, including 64,000 route miles in more than
350 metropolitan areas and 33,000 subsea fiber route miles connecting multiple continents
● On-net buildings expected to increase by nearly 75% to approximately 75,000, including 10,000
buildings in EMEA and Latin America
● Pro forma revenue of $26bn and adjusted EBITDA of $11bn (including synergies) (2)(3)
o Pro forma business revenue of $19bn and $13bn in business strategic revenue (1)(2)
● Accretive to free cash flow in first year following close and significantly accretive on annual run-rate
basis thereafter
● Acceleration of nearly $10bn Level 3 NOLs drives robust free cash flow and significantly lowered
dividend payout ratio
● Pro forma net leverage of less than 3.7x at close (including run-rate synergies) (3)
● Accretive to CenturyLink’s existing growth profile with additional upside opportunities:
o Deploy product portfolio across combined customer bases
o Increased scale of network with dense local metropolitan areas and global reach
● Expected to achieve $975mm in annual run-rate cash synergies
o $850mm opex and $125mm capex synergies targeted
● Track record of strong execution and meeting or exceeding synergy targets
o CenturyLink: Qwest, Embarq; Level 3: tw telecom, Global Crossing
.
(1) Excludes CenturyLink Other Revenues.
(2) Combined balances and metrics represent pro forma results of CenturyLink and Level 3 as of LTM ended June 30, 2016.
(3) Includes expected run-rate cost synergies of $850mm.

23. 23
Compelling for CenturyLink and Level 3 Shareholders
Consideration
and Transaction
Structure
● CenturyLink to acquire Level 3 for $66.50 per share
o 60% stock consideration at $40.00 per share
– Fixed exchange ratio of 1.4286x based on CenturyLink $28.00 per share reference price
o 40% cash consideration at $26.50 per share
Transaction
Value
● Transaction valued at $34bn, including assumption of debt (1)
o Represents a premium of approximately 42% based on Level 3’s unaffected share price (2)
Pro Forma
Ownership
● 51% CenturyLink shareholders
● 49% Level 3 shareholders
Dividend ● Expect to maintain CenturyLink annual dividend of $2.16 per share
Financing ● Financing commitment currently in place
● ~$10.2bn acquisition financing, including $2.0bn undrawn revolver at close
Board /
Leadership
● After the close of the transaction, Glen Post will continue to serve as Chief Executive Officer and
President and Sunit Patel, Executive Vice President and Chief Financial Officer of Level 3, will serve as
Chief Financial Officer of the combined company
● The Chairman of CenturyLink’s Board at the time of the closing of the transaction will continue to serve
as Chairman of the combined company. CenturyLink has agreed to appoint four Level 3 Board members
at closing, one of whom will be a representative of STT Crossing Ltd., a wholly owned subsidiary of
Singapore Technologies Telemedia Pte Ltd (“ST Telemedia”)
Closing ● Both CenturyLink and Level 3 shareholders will have the opportunity to vote on the transaction
o Voting agreement in place with STT Crossing (currently holds approximately 18% of Level 3
outstanding common stock)
● Closing expected by the end of third quarter 2017
____________________
Source: Company filings.
(1) Based on $66.50 / Level 3 share; balance sheet data as of June 30, 2016.
(2) Level 3’s unaffected share price of $46.92 as of October 26, 2016.

24. 24
Expansive Domestic and Global Network
8J6H: 851698_1.wor
International Presence
Legend
Level 3 On-net Area with Metro Network
Level 3 On-net Metropolitan Area
Level 3 Owned & Leased Network
CenturyLink Core Fiber
CenturyLink Local Territory
Pro Forma Network Map
Metropolitan
Areas with
Metro Fiber
350
On-Net
Buildings
75,000
London
Paris
Frankfurt
Dublin
Edinburgh
Madrid
Amsterdam
Zurich
Milan
Europe
Hong Kong
Singapore
Seoul
Tokyo
Sydney
Perth
Asia
Johannesburg
Capetown
Nairobi
Dubai
Africa
Rio de Janeiro
São Paulo
Lima
Santiago
Buenos Aires
Caracas
Bogotá
Latin America

25. 25
Combining Diversified and Complementary Businesses
LTM 2Q’16A Revenue Mix
____________________
Source: Company filings.
(1) Total Revenue excludes CenturyLink Other Revenues.
(2) Total Core Revenue excludes CenturyLink data integration and Other Revenues; treats Level 3’s WVS revenue as Legacy revenue.

26. 26
Combination will provide leading Business Focus and Scale
76%
17%
13% 13%
6%
(3)(2) (4)(1)
$32.5
$18.8
$17.3
$10.6
$8.2
$4.9 $4.7
(2) (4)(3) (5)
Business Focus
Enterprise / SME / Wholesale Revenue
as % of Total Revenue (2015A)
Leading Domestic Communications Provider
Serving Global Enterprise Customers
Enterprise / SME / Wholesale Revenue ($bn, 2015A)
____________________
Source: Company filings.
(1) Excludes CenturyLink Other Revenues.
(2) Pro forma for TWX acquisition.
(3) Pro forma for the sale of wireline assets to Frontier Communications and Yahoo acquisition.
(4) Pro forma for TWC and Bright House acquisitions.
(5) Excludes other operating revenues.

27. 27
Transaction Synergies
~$685mm
(one-time)
Operating Cost
Savings
Capex
Synergies
Integration
Costs
• Corporate
• Network and Operational Efficiencies
• IT Support
• Purchasing Synergies
• Advertising / Marketing
• Purchasing Synergies
• Realization of Synergies
• Network Integration
~$850mm
annually
~$125mm
annually
Description Amount
CenturyLink and Level 3 have a proven ability to integrate and
meet or exceed synergy targets
Incur majority
by 2019
80% of run-rate within
36 months
100% of run-rate within
36 months
Timing
$975mm Annually in Clear, Achievable Synergies

28. 28
Pro Forma Capital Structure and Financial Policy
Net Debt $19.7 $9.7
2Q'16A LTM Adj. EBITDA (Pre-SBC) 7.0 2.7
Net Leverage 2.8x 3.5x 3.7x
____________________
Source: Company filings.
Note: Dollars in billions.
(1) Excludes Qwest 2056 Notes issued in August 2016.
(2) LTM EBITDA modified to exclude Level 3’s Venezuelan subsidiary's operations that were deconsolidated as of September 30, 2015.
Pro Forma Capitalization (2Q’16A)
● Combined company’s capital structure benefits from:
o Strong liquidity profile, including $2bn unfunded revolver
o Free cash flow accretion and focus on sustainable free cash flow growth
o Significantly lowered dividend payout ratio
● Long-term leverage target at ~3.0x
● CenturyLink’s strategic review of its data center and colocation business continues, and if completed, cash
proceeds can be used to delever
(1)

29. 29
Pro Forma Financing Structure Overview
Level 3 Financing, Inc.
TLB: $4.6bn
HY Notes: $5.3bn
Qwest Comm. Int. (QCII)
Qwest Capital Funding Inc.
(QCF) HY Notes: $1.0bn
Qwest Corp. (QC) (1)
IG Notes: $7.3bn
Qwest Services Corp
(QSC)
Level 3 Communications, LLC
CenturyLink, Inc.
HY Notes: $8.1bn;
$10.2bn of New Acquisition Debt ($8.2bn funded)
Various CenturyLink
Subs / Others / Capital
Leases: $0.4bn
Embarq Corp. (EQ)
HY Notes/Other: $1.8bn
New Level 3 HoldCo
Level 3 Communications, Inc.
HY Notes: $0.6bn
• Stays in place
• No new debt
New Debt
• New acquisition debtexpected to
receive guarantees from material
non-regulated CenturyLink subs
(including Embarq parent) and new
Level 3 HoldCo
• Expected pledge of stock from QC
and Level 3 Communications Inc.
● Level 3 will not incur or guarantee any acquisition debt
● Based on expected ratings, Change of Control puts will not be triggered
● No consents are required from Lenders or Noteholders for closing the acquisition
____________________
Source: Company filings.
(1) QC is a regulated sub and is a non-guarantor. Includes QC Preferred Notes of $4.4bn. Pro forma for $285mm QC Notes due 2033 called in Q3-2016.

30. 30
Roadmap to Completion
• Key conditions
o Regulatory approvals and customary closing conditions
– HSR Clearance
– FCC Review
– National Security Approvals
– Certain State Regulatory Approvals
– International Filings
o Approval by CenturyLink and Level 3 shareholders
– Voting agreement in place with STT Crossing, a wholly owned subsidiary of ST
Telemedia (currently holds 18% of Level 3)
– Both companies’ stockholders approved the merger on March 16, 2017
• Expected closing by the end of third quarter 2017

31. 31
CenturyLink + Level 3: Transaction to Benefit All Stakeholders
Customers
● Combined presence in over 60 countries, network and fiber capabilities over an owned network that
connects more than 350 metropolitan areas
● Increased bandwidth capacity and additional managed services
● Ability to invest in and further improve its broadband infrastructure, enhancing broadband deployment
speeds for both business and consumer customers
● Ability to offer CenturyLink’s larger enterprise customer base the benefits of Level 3’s global footprint
● Complementary portfolios will allow combined company to offer an even broader range of services and
solutions to meet the demand for more bandwidth and new applications in an increasingly complex
operating environment
Employees
● Opportunity to work for a leading global fiber infrastructure company
● Combining two highly customer-focused organizations to place an even greater emphasis on customer
service
● Provides employees growth and advancement opportunities companies could not offer separately
● Values and unifying principles align and will drive an employee-centric culture
Shareholders
● CenturyLink and Level 3 shareholders to benefit from significant upside potential of combination
● Improved free cash flow will enhance the combined company’s financial flexibility and significantly lower
its payout ratio
● Accretive to free cash flow in first year following close and significantly accretive including run-rate
synergies
● Expected to generate $975mm of annual run-rate synergies

32. 32
Level 3 Fourth Quarter and Full Year Results

33. 33
FY2016 Highlights
Network Access Margin of 66.7%
Adjusted EBITDA Margin(1) of 35.1%
11% YoY Adjusted EBITDA(1) Growth
Generated Strong Free Cash Flow of $1.024(1) billion, up
from $595 million in 2015
(1) Excludes$15 million of CenturyLink acquisition-related expenses

34. 34
CNS Revenue
(1) Level 3 measures revenue churn as disconnects of Core Network Services
(CNS) monthly recurring revenue as a percentage of CNS revenue. This
calculation excludes churn from customers who disconnected existing service
in a particular location but replaced it with new services in the same location.
The calculation also excludes usage.
CNS Revenue
($ in millions)
4Q16 CNS Revenue Performance
Revenue
Constant Currency
YoY%
YoY%
Total CNS 0.2% (0.5%)
Enterprise 2.9% 2.3%
Enterprise(ex UK Gov’t) 3.4% 3.1%
Wholesale (6.9%) (7.6%)
North America 0.8% 0.8%
Enterprise 3.2% 3.2%
Wholesale (5.8%) (5.8%)
EMEA (7.3%) (15%)
Enterprise (1.9%) (9.4%)
Wholesale (9.4%) (15%)
UK Government (25%) (41%)
Latin America 3.8% 6.9%
Enterprise 10% 14%
Wholesale (16%) (15%)
4Q16 CNS Revenue Churn(1)1.1%
$1,943 $1,934
4Q15 4Q16

35. 35
4Q16 CNS Services Revenue
CNS Revenue by Service Type CNS Revenue by Service Type
1.7%
1.1%
Constant Currency
(1.6%)
(2.0%)
0.3%
(1.0%)
(2.3%)
(2.7%)
As Reported
Constant Currency
As Reported
Constant Currency
As Reported
Constant Currency
As Reported
$146M
Colocation &
Data Center
Voice Services
$295M
Transport & Fiber
$577M
$916M
IP & Data Services
47%
30%
15%
8%
IP & Data
Transport &
Fiber
Colocation &
Data Center
Voice Services
Note: Growth rates are on a Year-over-Year basis.
4Q16 CNS Services Revenue

36. 36
95%
5%
4Q16 Revenue Mix
CNS Revenue by Region CNS Revenue by Customer Type
82%
9%
9%
North America EMEA Latin America
74%
26%
Enterprise Wholesale
Total Revenue by Currency Total Revenue Mix
USD
GBP
EUR
BRL
Other
CNS
WVS
90%
4%
2%
2%
2%
4Q16 Revenue Mix

37. 37
$338 $327
$326 $316
32.3%
31.6%
4Q15 4Q16
NRE SG&A NRE and SG&A Expenses % Total Revenue
$643$664
$708
$680
65.5%
66.5%
4Q15 4Q16
Network Access Costs Network Access Margin
Network Access Costs & Operating Expenses
Network Access Costs & Margin
($ in millions)
Network Related Expenses(NRE)
and SG&A(1)
($ in millions)
(1) Excludes non-cash compensation expense of $6 million and $5 million in NRE and $43 million and $30 million in SG&A for 4Q15 and 4Q16, respectively.
Network Access Costs and Operating Expenses

38. 38
$2,592
$2,865
31.8%
35.1%
FY15 FY16
Adjusted EBITDA Adjusted EBITDA Margin
$681
$724
33.2%
35.6%
4Q15 4Q16
Adjusted EBITDA Adjusted EBITDA Margin
Adjusted EBITDA
Fourth Quarter
Adjusted EBITDA
($ in millions)
Net Debt to Adjusted EBITDA Leverage Ratio 3.2x
Full Year
Adjusted EBITDA
($ in millions)
(3)(2) (2)
(1) Includes $4 million of tw telecom integration-related expenses
(2) Excludes $15 million of CenturyLink acquisition-related expenses
(3) Modified to exclude the company’s Venezuelan subsidiary’s operations, which were deconsolidated as of September 30, 2015 and includes $32
million of tw telecom integration-related expenses
(1)
Adjusted EBITDA

39. 39
$595
$1,024
FY15 FY16
$226
$266
4Q15 4Q16
Full Year
Free Cash Flow
($ in millions)
(3)
Fourth Quarter
Free Cash Flow
($ in millions)
Free Cash Flow
(2) (2)(1)
(1) Includes $4 million of tw telecom integration-related expenses
(2) Excludes $15 million of CenturyLink acquisition-related expenses
(3) Modified to exclude the company’s Venezuelan subsidiary’s operations, which were deconsolidated as of September 30, 2015 and includes $32
million of tw telecom integration-related expenses
Free Cash Flow

40. 40
2017 Business Outlook
Adjusted EBITDA
Free Cash Flow
GAAP Interest Expense
Cash Interest Expense
Capital Expenditures
Depreciation & Amortization
Non-Cash Compensation
Cash Income Tax
$2.94 to $3.00 billion
$1.10 to $1.16 billion
$570 million
$520 million
16% of Total Revenue
$1.35 billion
$170 million
$40 million
Outlook Metric
Full Year Income Tax Rate Approximately 38%
2017 Business Outlook

41. 41
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