CenturyLink Analyst Day

June 24 , 2015

Forward-Looking Statements / Non-GAAP Financial Measures

Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures. These measures are provided and valid only as of the date of this presentation and should not be relied upon beyond that date. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are available on our website at www.centurylink.com.

Certain non-historical statements made in this presentation and future oral or written statements or press releases by us or our management are intended to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations only, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: the timing, success and overall effects of competition from a wide variety of competitive providers; the risks inherent in rapid technological change, including product displacement; the effects of ongoing changes in the regulation of the communications industry, including the outcome of regulatory or judicial proceedings relating to intercarrier compensation, access charges, universal service, broadband deployment, data protection and net neutrality; our ability to effectively adjust to changes in the communications industry, and changes in our markets, product mix and network; our ability to effectively manage our expansion opportunities, including retaining and hiring key personnel; possible changes in the demand for, or pricing of, our products and services, including our ability to effectively respond to increased demand for high-speed broadband service; our ability to successfully introduce new product or service offerings on a timely and cost-effective basis; the adverse impact on our business and network from possible equipment failures, security breaches or similar attacks on our network; our ability to successfully negotiate collective bargaining agreements on reasonable terms without work stoppages; our ability to use our net operating loss carryovers in projected amounts; our continued access to credit markets on favorable terms; our ability to collect our receivables from financially troubled companies; our ability to maintain favorable relations with our key business partners, suppliers, vendors, landlords and financial institutions; any adverse developments in legal or regulatory proceedings involving us; changes in our operating plans, corporate strategies, dividend payment plans or other capital allocation plans, including those caused by changes in our cash requirements, capital expenditure needs, debt obligations, pension funding requirements, cash flows, or financial position, or other similar changes; the effects of adverse weather; other risks referenced from time to time in our filings with the SEC; and the effects of more general factors such as changes in interest rates, in tax laws, in accounting policies or practices, in operating, medical, pension or administrative costs, in general market, labor or economic conditions, or in legislation, regulation or public policy. These and other uncertainties related to our business and our recent acquisitions are described in greater detail in our Form 10-Q for the quarter ended March 31, 2015, as updated and supplemented by our subsequent SEC reports. 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 business or the extent to which any one or more factors may cause actual results to differ from those reflected in any forward-looking statements. Given these uncertainties, we caution investors not to unduly rely on our forward-looking statements. We undertake no obligation to update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of this release, and is based upon, among other things, the existing regulatory and technological environment, industry and competitive conditions, economic and market conditions, and our assumptions as of such date. We may change our intentions, strategies or plans at any time and without notice, based upon any changes in such factors, in our assumptions or otherwise.

2

Strategic Overview

G l e n P o s t C h i e f E x e c u t i v e O f f i c e r & P r e s i d e n t

4

Agenda

Strategic Overview

Product Development & Technology

Global Markets

Global Operations & Shared Services

Finance

Q & A

Company Overview & Transformation

6

CenturyLink by the Numbers

Total 2014 Annual Operating Revenues

Total Revenue from Strategic services

Revenue from Business Customers

Fortune 500 Companies served

Route-mile U.S. and International transport network

Broadband customers

Data centers globally

$18.0B

>60%

98%

>550K

6.1M

52%

58

2008 20141

Employees 6,500 45,000 Assets $8.3 billion $50.1 billion Reported Revenue $2.6 billion $18.0 billion Operating Cash Flow2 $1.3 billion $7.1 billion Free Cash Flow2 $582 million $2.7 billion

1) 2009-2011 acquired Embarq, Qwest & Savvis 2) Excludes special items

Transformation by the Numbers

7

Industry Rapidly Redefining Itself

• New competitors, partnerships and business models

• Environment of continuous innovation and automation

• Technology advancing rapidly, driving changes in customer expectations and creating opportunities

• Local services less regulated, Internet services now regulated

8

CenturyLink is reinventing the way we do business to take advantage of opportunities resulting from these changes

Strategic Vision

9

Transition from a traditional network

communications provider to a growing

provider of integrated, advanced IP-enabled

network, cloud, hosting and IT services.

$29 $34

$65 $95

$86

$147

2014 2015 2016 2017 2018 2019

Strategic Market Opportunity

Strategic vision aligned with the market opportunity $ in billions

Total Market 2014: ~$180B 2019: ~$275B

CAGR = 9%

14-19 CAGR

11%

8%

3%

Consumer Broadband & Video

Strategic Network Services

IT Outsourcing – Hosting, Cloud,

Security & Consulting

Source: Third party research and CenturyLink analysis. Notes: Market size and position represents the domestic US market. for Strategic Network Services. IT Infrastructure Outsourcing Services represents the North America market. Consumer Broadband and Video represent estimated CenturyLink in-territory opportunity. IT Infrastructure Outsourcing Services include Colocation, Hosting, Cloud, Security Services, IT Consulting Services. SaaS is excluded. Strategic Network includes IP based services such as Ethernet, MPLS, B-VoIP and Managed Network Services.

10

Strong Foundation for Success

• Great strategic assets for growth • Growing market opportunity for strategic

services • Strong cash flows support

–Continued investment –Dividend payouts

• Recent organizational realignment designed to drive increased agility, productivity and efficiency

11

Strategic Priorities

Business Solutions • Grow strategic revenue offerings: MPLS, Ethernet,

Wavelength, VoIP, Hosting, Cloud and Big Data • Invest in fiber/GPON to drive increased network

bandwidth and capacity • Create advanced cloud and hosting capabilities

Strategic Priorities

13

Business Solutions (continued) • Develop and deliver managed services solutions

across our broad portfolio of network, hosting, cloud and IT capabilities

• Expand and increase efficiency of direct and indirect sales channels

Strategic Priorities (continued)

14

Consumer Broadband and Video • Deploy fiber/GPON deeper into network to drive higher

speeds • Expand PrismTM TV footprint and penetration • Develop home automation and security solutions Operating Efficiency • Simplify and rationalize network infrastructure • Automate and improve processes • Continue to integrate and simplify systems

Strategic Priorities (continued)

15

You’ll Hear Today About Our…

• Focus on customers’ needs and the customer experience in all we do

• Strong foundation of assets that positions us for growth

• Advanced network services and robust, high-quality network

16

You’ll Hear Today About Our… (continued)

• Managed services solutions designed to meet customers’ evolving needs

• Automation of systems and streamlining of processes

• Financial strength that supports continued investment and dividend payouts

17

Product Development & Technology

A a m i r H u s s a i n E x e c u t i v e V i c e P r e s i d e n t & C h i e f Te c h n o l o g y O f f i c e r

Managed Network Services

Cloud & Hosting Services (XaaS)

Managed Security Services

Unified Communications

Broadband

Video & Over-the-Top Content Services

Data Analytics and Internet of Things (IOT)

Hybrid IT Services

Define, Design & Deliver

o New Products & Services

o Network & Cloud Technologies

o Security Framework

Achieve Profitable Growth

19

Areas of Responsibility

Aligning Organization to CenturyLink’s Business Transformation Objectives

20

Product Development & Technology

Technology Transformation

Platform Development

Integration and Innovation

Service Transformation

Product & Platform

Rationalization

Program Management & Metrics

Quicker Time to Market Differentiated Customer Experience

Focus Areas

21

Accelerated

Cloud Adoption

Hybrid Cloud

Data Monetization

Data Analytics

Over-the-Top

Services (video etc)

Increase

Connectivity

Fiber Deployment

Copper

Innovations

Cost Savings

Speeds Up

Service Delivery

On Demand

Virtualized Services

Everything is Connected

Data Explosion

Device & Sensor

Saturation

Clo

ud &

Big

Dat

a

Hig

her B

andw

idth

Prog

ram

mab

le S

ervi

ce B

ackb

one

Inte

rnet

of T

hing

s

• Expansion of cloud footprint • Integration of network to cloud • Enabling hybrid cloud • PaaS for development community • Enabling platform Managed

Services (DRaaS, Big Data Analytics, ecommerce Apps, ERP/CRM Apps)

22

Cloud & Big Data

Enhance our cloud offering

Interconnect our network and platform to all relevant cloud and

data center partners

23

CenturyLink Cloud Platform

Cloud Colocation Network Hosting

Legacy Application Optimization New Application Agility

IT Services – Managed Application Solutions

Platform Managed Services

Platform Control Portal

Extending On Premise

Ecosystem

Exten

ding T

o AW

S, vC

loud…

• Continue to expand gigabit footprint • Use vectoring/bonding technology to

provide up to 200 Mbps • Enhance our video offerings

(OTT, Prism)

• Enhance Unified Communications offerings

24

Enabling Higher Bandwidth & Applications for Our Customers

Enhance our higher speed Broadband footprint

Network Modernization

Application Integration

• Video

• Unified Communications

• Completed NFV Deployments in 36 data centers across 7 countries (network based security)

• Fully Distributed & Programmable

• Self Healing, Self Learning Network

Simplify Network Infrastructure

Modernize the Network

25

Programmable Service Backbone

Any Service | Any Place | Any Time Our Goal: A Single Network Service Delivery Fabric

Internet of Things (IoT) Use Cases

26

• Idling Vehicle Management

• GPS Analytics

• Maintenance Management

Smart Fleet • Building Floor Space

Utilization

• Building Automation

• Smart Workspace

Smart Building • Safety / Regulation

• Over-the-Top Content to Vehicle

Smart Car

• Conducting Trials • Complements Our

Analytics & Cloud offering

• Trials in Progress • Big Data Learning Opportunity • Extensible to Smart Car /

Smart City Use Cases

• Aligned to Insurance Opportunities.

• Integration with Smart Home Use Cases

IoT creates Data & Storage opportunities as well as complements our Infrastructure & Cloud Offerings while enhancing our Managed Services.

Two Technology Development Centers

27

Technology Center of Excellence Monroe, LA

Cloud Development Center Seattle, WA

Innovate

Incubate

Collaborate

Deliver

Product Development & Technology Review

28

• Velocity of innovation • Transformation of technology & business model • Driving newer product areas to replace legacy

revenue streams • Committed to establishing CenturyLink as a leader in

the new era of IT Services

Global Markets

Global Markets Overview R o s s G a r r i t y I n t e r i m P r e s i d e n t , G l o b a l M a r k e t s

33,000 Business and Government customers

Over 6.1M high-speed Internet subscribers across our Business and Consumer Segments

Nearly 250,000 PrismTM TV customers

31

Global Markets

Business • Small to Large

Businesses both domestic and abroad

• Local & Federal Government

• Wholesale

Consumer • Single family

homes and multi-dwelling units targeting video, high-speed Internet, security products and voice

Impact of Information Technology

32

MOORE’S LAW STATES THAT EVERY 18 MONTHS, THE NUMBER OF TRANSISTORS THAT CAN BE PLACED IN A CHIP DOUBLES.

1958 - MICROCHIP INVENTED

1960 1975 2000 2025

IT Used to … Enable Existing Industries

IT Used to … Disrupt Industries

• Microsoft • Intel • IBM • Dell • Oracle • SAP • DEC

• Amazon • Uber • Airbnb • Netflix

First Half of the Chess Board

Second Half of the Chess Board

2016

Enterprise IT Transformation

33

Enterprise IT Ecosystem Transformation

Maintenance Plan

IT Infrastructure Purchase/Plan

Connectivity Plan

Upfront Software Purchase

Maintenance Included

IaaS capability included

Simplified IP Connectivity

Per Seat/Use Purchase

Old Enterprise Software Deployment Model High upfront costs Slow decision making

New Enterprise Software Deployment Model Low upfront costs Decision making velocity

and innovation

100% Uptime

I T C H A L L E N G E S Prioritizing budgets, people, systems

B U S I N E S S D E M A N D S Need more of everything, faster

Cost containment

Accelerating Business Innovation really Challenges IT

Profitability

Increased productivity

Mobile & Social

eCommerce

Resource acquisition, retention, skills, and training

Complexity

Compliance

Shorter implementation cycles

34

Why CenturyLink Business Solutions

Pure Players • Good toolset, but client

remains effectively DIY shop • Requires individual sourcing of

all components needed to deliver end-to-end solutions

• No accountability for end-to-end business outcomes

System Integrators • Labor and Capital integration in

the classic SI model • Focus on very large, complex

solutions

CenturyLink • Solution designs using the right

mix of automation and customization

• Extensive breadth of innovative standard building blocks (cloud, automation)

• Flexible services and outsourcing arrangements

• Managed Services, Security, Cloud, and Network on a foundation of owned assets 35

Business Marketing Shirish Lal Chief Marketing Officer

CenturyLink is Well-Positioned

Cloud disrupts the ITO providers, VAR value proposition, and business model leaving CenturyLink well positioned in Mid-Market and SMB

Point Platform Managed Solutions Outsourced IT

SMB (<500)

Mid-Market (500 – 5K)

Enterprise (5K+ Employees)

Mid-Tier Sis, Vertical ISVs

VARs

Mid-Tier Sis,VARs

VARs

SaaS Providers

Third Party Cloud Survey Results

38

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Ease of Use

Differentiated Very Differentiated

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Global Networking

Differentiated Very Differentiated

• 80% of surveyed IT organizations rated CenturyLink Cloud’s Ease of Use as differentiated or better compared to the competition

• 82% of surveyed IT organizations rated CenturyLink Cloud’s Global Network of use as differentiated or better compared to the competition

• CenturyLink Cloud customers reported saving 25% on average for Capital Expenditures on IT infrastructure and 22% on average for Operating Expenditures

*Third party research of CenturyLink customer base

CenturyLink Managed Solutions

MANAGED DATA

MANAGED VOICE

MANAGED HYBRID CLOUD Remote Infrastructure Management

MANAGED SECURITY

OPERATIONAL SCALE MANAGING DATA CENTERS, SERVERS, APPLICATIONS, AND NETWORKS AND HIGHLY EFFICIENT ON-SHORE AND OFF-SHORE MODEL

UNIQUE BREADTH OF NFRASTRUCTURE

MANAGED SERVICES

MANAGED OFFICE Infrastructure Outsourcing to Desktop for

Small/Mid Sized Businesses

NETWORK IP COMMUNICATIONS COLO CLOUD – IAAS, SAAS

BIG DATA AS A SERVICE (Cognilytics) Complete Big Data Solutions from Infrastructure Management to Analytics

PRE-PACKAGED SOLUTIONS

SERVICES SCALE

CenturyLink Managed Hybrid Cloud Solutions

40

Managed Hosting

Bare Metal

Public Cloud

Customer

INFRASTRUCTURE, APPLICATION, OS MANAGEMENT Complete range of On-shore and Off-shore options

Customer Infrastructure

Big Data eCom ERP BCDR

Manage /Integrate existing customer environments into

solutions.

Migrate from or add to an existing customer environment via optimal mix of scaled public cloud, scaled private cloud, and customized Managed Hosting.

Reduce costs through scaled, multi-tenant managed services.

Practice area-based packaged solutions. Defined app support with reference architectures.

CenturyLink

Customization

Business Solutions Focus by Segment

41

SMB (<500 employees)

Mid-Market (500 – 5K employees)

Global (5K+ employees)

IT Spend per Employee Low High Med/High

Competitive Intensity High in Telecom Low/Med in IT

Medium Very High

CenturyLink Solutions GPON/MTU Managed Office

MPLS Hybrid IT

Managed Services

MPLS Hybrid IT

Managed Services

How CenturyLink Will Win

Grow distribution and leverage speed and

functionality advantage of GPON & Managed Office

Aggressively target less competitive Mid-Market with Hybrid IT solutions and Managed Services

Win our fair share of opportunities leveraging

disruption of ITO business

Business Solutions Kenny Wyatt Senior Vice President, Business Solutions

FROM

Enhancing Our Go-To-Market to Better Serve Customers

TO

Customer Segments

Multiple Approaches

• Aligned by Buyer Behavior • Highly targeted value propositions • Focused verticals

Channel Alignment

Aligned By Product

• Aligned by Customer Segment • Single Sales Pro to Customer • Solution Specialists to cross portfolio

Sales Posture

Retention Centric Limited Hunting

• Prospecting • CXO level selling – challenger • Selling through alliances

Arming Sales Pros

Ad-Hoc Tools / Training

• Tools to enable single call close • University-style certifications • Strong coaching culture

Appealing to Changing Buyer Behaviors

• Optimized by Segment • Provider accountability for End-to-End Service

Level Agreement • Agile / Tech refresh at scale

Colo / Infra-

structure

Cloud/ Managed

IT Services

Network

Provider A

Provider C

Provider D

Customer Assembles/

Manages Environment

Secu

rity

/ Bus

ines

s C

ontin

uity

&

Dis

aste

r Rec

over

y

Selective Outsourcing Hybrid IT

Provider B

• Traditional Posture on Capital Purchase • Customer accountable for coordinating

End-to-End Service delivery • Agility limited to internal processes

Colo / Infra-

structure

Cloud/ Managed

IT Services

Network

Big

Dat

a

Appl

icat

ion

Dev

elop

men

t /

Dep

loym

ent

Man

aged

Offi

ce

44

Businesses of all Sizes Trust CenturyLink to Manage IT needs

Customer Service(s) Provided by CenturyLink

Managed Office: Applications, Storage, Security, Network, Voice – priced per seat

Business Problem

G500 Beverage Company

“Need a more competitive cost structure for maintaining global eCommerce Platform”

Global Colocation

Managed Infrastructure IT Services

Network Aerospace

Manufacturer

“Need a quicker path to market for my commercial maintenance applications”

Cloud Security / Disaster Recovery

Now Bidding Big Data

Financial Services

“As I spin off, need to rethink my internal IT”

IT Services Network

Managed Compute / Storage

DB and Middleware

Apps

<50 Person Law Firm

“I run a law firm and don’t want to even think about my

IT infrastructure”

45

CenturyLink Business Value Proposition

46

With a comprehensive services approach – from access to applications – and the ability

to orchestrate across public, private and remote infrastructures, CenturyLink is

uniquely positioned to support an enterprise's migration to Hybrid IT.

Consumer Marketing Shirish Lal Chief Marketing Officer

Consumer Strategy

High Value Focus

• Optimize investment and marketing mix based for highest value customers

Set up Future Growth

• Invest in HSI speeds through bonding, vectoring, FTTP, smart build approach

• Leverage PRISM and Value Added Products to drive ARPU growth

Marcom Optimization

• Differentiate CenturyLink messaging through focus on simplicity • Shift focus to more efficient digital advertising/channels

Customer Focus

• Apply differentiated product design, service delivery and customer experience by customer behavioral segment

48

DSL FTTN FTTP

Sales

Network and Prism Investment Drives Penetration and Revenue Growth

1.5x

Incremental 10% Bump From Fiber Halo

1.5x

Sales per 1000 HHs

0 20 40 60 80

100 120 140 160

Consumer Average

PRISM Consumer

ARPU

Optimization of Approach

50

Clear message delivered in a warm/friendly tone Mass Media Direct Response

Maintain aggressive price driven narrative

Shifting focus and spend to online opportunities

Digital Advertising

Aligning Offerings Sub-

Segment Product Offering Customer Experience Key Differentiation

Millennial/MDU

CenturyLink On and OTT

Online ordering and customer service

Products they want offered in the

environment where they want to interact

and purchase

Home Office

Managed Home Office

High tech product suite with business support

Business optimized product suite and

service level for their home office

High Income Family

GPON/Prism/ Smart Home

Bundle

Best in class technology configured to meet their

needs

Bundles configured to deliver the products they want and the

service they expect

Low Tenure Pure Broadband Low touch engagement

with online ordering Internet delivered without

hassle 51

Global Operations & Shared Services

M a x i n e M o r e a u E x e c u t i v e V i c e P r e s i d e n t , G l o b a l O p e r a t i o n s & S h a r e d S e r v i c e s

• End-to-end post-sales operational support

• Enable world-class network and data centers to support revenue growth

• Support customer sales of solutions that rely on the quality, reliability and security of our network and data center platforms

• Support product roadmap and operationalize evolving technology

• Provide local and national field technician expertise

End-to-end planning, engineering, construction and management of global network and hosting data centers

Global network and data center operations, service delivery and service assurance

Managed services: office, network (data/voice), hosting, remote infrastructure management and security

Shared services support of real estate, fleet, environmental health & safety and disaster recovery

53

Areas of Responsibility

54

CenturyLink Offers … A comprehensive data networking portfolio including MPLS, Ethernet, Wavelength and VoIP services that delivers …

Best-in-class connectivity across our owned and operated Tier 1 global network that is …

Seamlessly integrated with our industry-leading cloud and hosting infrastructure …

Backed by our award-winning commitment to working with our customers.

55

CenturyLink’s Global Network

• 250,000+ miles of owned and operated fiber across U.S. plus 300,000+ miles of owned or leased international transport network

• Enterprise network services in 85 countries

• Connected into our 58 global data centers plus another 200+ third-party U.S. data centers

• 21,500+ fiber-fed buildings domestically

• Scalable bandwidth of up to 100 Gbps with 99.999% documented uptime transporting more than 100 trillion bits of data per second

• Among top three North American telecom providers and leading MPLS/Ethernet provider

CenturyLink Network + Data Centers – International • Own or lease over 300,000 international transport miles • Connected to 11 international data centers (EMEA and Asia)

DATA CENTERS

56

57

Network Enablement

Fiber to the Premise Addressable businesses

Fiber to the Premise Addressable homes

Addressable units capable of 20 Mbps+

Addressable units capable of 40 Mbps+

PrismTM TV Addressable homes

Fiber Enabled Wireless Towers

<5K

33%

15%

1.2M

390K

56%

27%

2.4M

1st Quarter 2013 1st Quarter 2015

16K 22K

<50K 360K

Integrated Platform Enablement Data Centers

– #2 North American data center provider1

– 58 data centers globally – 1.5+ million square feet sellable floor space – 24/7 operations, security and support – 100% uptime SLA

Managed Hosting – #5 North American managed hosting provider2 – End to end management of IT security, infrastructure, applications – More than 30,000 servers under management – 26 PB (petabytes) of storage – Highly efficient on-shore and off-shore model

Cloud – Recognized leader in key industry reports – Public | Private | Hybrid – 12 global deployments

58 1 Source: 451 Research 2 Source: Synergy Research

• Increase capacity at reduced cost per bit • Continued investment in automation and

customer self-service • Continued investment in system

consolidation • Improve service delivery • Meet/exceed network/platform availability

targets • Evolve network infrastructure to work

seamlessly with cloud infrastructure

Focus on operational efficiency

Improve customer experience

Align costs with revenue

59

Operational Excellence

• 99.999% Availability • Recipient of the 2015 FTTXcellence Award • Recipient of five Wholesale Provider Excellence Awards

from Atlantic-ACM • TL 9000 certification • #1 provider of Managed Trusted Internet Protocol Service

(MTIPS)

60

Network Quality/Reliability

• Brill Award for Efficient IT • Industry-recognized practices (ITIL - Information

Technology Infrastructure Library) • Uptime Tier III certification

61

Data Center/Hosting Quality

62

Global Operations & Shared Services Review

• Robust domestic and international network • Extensive global data center footprint • Focus on operational excellence in service delivery

and support • Align cost structure with revenue

Finance

S t e w a r t E w i n g E x e c u t i v e V i c e P r e s i d e n t & C h i e f F i n a n c i a l O f f i c e r

Key Financial Objectives

• Top-line revenue stabilization/growth • Cost alignment with revenue trends • Capital investment with return-based and

disciplined approach • Long-term shareholder value

64

• Revenue declined 0.4% for full-year 2014 versus 5.6% for pro-forma full-year 2010

• Strategic growth initiatives and reducing the rate of legacy revenue decline have driven improved trend

Revenue Trend

Pro forma 2009-2010

Pro forma 2010-2011

Pro forma 2011-2012 2012-2013 2013-2014

Annual Revenue Decline Analyst Average

2014-2015

65 (5.6%)

(3.8%)

(1.7%) (1.5%)

(0.4%) (0.9%)

-6.0%

-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

Uses of Operating Cash Flow1

• Capital expenditures • Dividends • Cash Interest • Other

– Share repurchase – Cash taxes – Reduce debt

66

1 2014 figures

$3.0

$1.2

$1.3

$1.5

Capital expenditures Dividends Cash Interest Other

54%

24%

18%

5%

Revenue Enablement & Success-based Maintenance Capacity Investment All other

Capital Expenditures1

67

• Bottoms-up capital allocation process

• Sufficient capital budget to meet growing demands

• Expect similar capital expenditure level in 2015

1 2014 figures

$3.0 B

Analyst Projected Dividend Coverage

Analyst Estimates 1

($ millions) 2015 2016 2017 2018

Free Cash Flow 2 $2,559 $1,365 $1,727 $1,738 Cash Dividends Paid 3 1,207 1,190 1,182 1,181 Dividend Payout Ratio (with deferral) 4 47% 87% 68% 68% Dividend Payout Ratio (without deferral) 5 53% 71% 68% 68%

68

1 Analyst estimates derived from financial models received from 12 sell-side analysts as of June 1, 2015 2 Free cash flow is defined as operating cash flow less cash paid for taxes, interest, and capital expenditures, along with other income (CTL-defined) 3 Cash dividends calculated as weighted average shares outstanding from analyst models multiplied by $2.16 per share current annual dividend rate 4 Dividend payout ratio calculated as projected cash dividends (assuming current rates) divided by projected free cash flow including deferral of $300 million from 2015 to 2016. 5 Dividend payout ratio calculated as projected cash dividends (assuming current rates) divided by projected free cash flow excluding deferral of $300 million from 2015 to 2016.

0%

20%

40%

60%

80%

100%

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2015 2016 2017 2018

Divid

end

Payo

ut R

atio

(Lin

e)

Estim

ated

FCF

(Col

umn)

Liability Management

69

• Upcoming debt maturities are manageable • Actions over the past few years have extended our weighted average maturity curve to

approximately 15 years with average coupon of 6.658% • $7.4 billion, or 36% of total debt, held at Qwest Corporation level which currently holds

Investment Grade rating; $3.4 billion in long-dated retail bonds with maturity of 2051 and beyond 1 Leverage ratio calculated as net debt divided by trailing twelve months operating cash flow.

-

200

400

600

800

1,000

1,200

1,400

1,600

2015 2016 2017 2018 2019 2020

$ milli

ons

Debt Maturities Qwest Corp

All Other

2.91x 2.90x

1.00x

1.50x

2.00x

2.50x

3.00x

3.50x

2014 1Q15

Leverage1

• Eligible to receive up to $514 million of annual pre-tax funding

• Build-out requirements include: – Target build-out speed of 10 Mbps downstream / 1 Mbps upstream – No less than 7 years of funding – Designed to reach approximately 1.2 million living units

• Currently analyzing our cost to build to these rural high-cost markets

• Continue to evaluate accounting treatment for funds • Plan to announce participation level in third quarter

Summary of CAF II

70

Financial Review1

• Investing to drive long-term growth and shareholder value

• Maintaining strong balance sheet • Continuing to support dividend payouts and

current share repurchase program

71

1 For additional information, see our periodic reports filed with the U.S. Securities and Exchange Commission

Q & A

Closing Remarks

G l e n P o s t C h i e f E x e c u t i v e O f f i c e r & P r e s i d e n t