LEVEL 3 COMMUNICATIONS

INVESTOR PRESENTATIONMAY 2016

2

Pro Forma Adjustment and Cautionary Statement

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.

Reconciliations of Non-GAAP measures used in this presentation can be found at http://investors.level3.com/investor-relations/presentations-and-events/default.aspx

3

Level 3 Overview

4

Company Overview

Over $8B FY 2015 Total Revenue

Approx. 360 Colocation and Data Center facilities

200,000+ Route Miles of Fiber Globally

Ou

r C

om

pan

y

Over $2.6B FY 2015 Adjusted EBITDA

~12,700 Employees

Connecting 60+ Countries and Counting

5

Global Reach

Our expansive global network provides a competitive advantage

6

Comprehensive Product Portfolio

Product portfolio breadth enables us to meet customers’ complex networking needs

IP & Data Services Transport & Fiber Voice Services Colocation & Datacenter Services

Dark fiber

Wavelengths

Professional Services

Ethernet Private Line

IP VPN

CDN

IP

Converged Services

Collaboration

Enterprise Voice

Datacenter

Colocation

Cloud Connect Solutions

SIP Trunking

Conferencing Services

Managed Security

Managed Hosting*

Note: To see Level 3’s full product portfolio, please visit level3.com *Offered only in Latin America region

7

Why Invest in Level 3?

Emphasis on Profitable Growth

Strong Operating Leverage

M&A Improving Durability of the Business

Sustainable and Growing

Free Cash Flow per

share

Attractive Returns on Investment

Level 3 is a growth company

8

Level 3 Strategy

9

Key Themes Affecting Organizations

IT Enabled Organization

Real-Time Communications Moving to IP

Globalization

Content Everywhere, AnywhereBig Data/Internet of Things

Software Defined Networks

Hybrid Networking

SecurityPrivate/Public Hybrid Cloud

10

Customer Environment

Source: Cisco VNI 2015, State of the Internet reports

• Traffic growing ~23%/year

• Mobile traffic growing ~57%/year

• ~10B new connected devices by 2019

Distributed Denial of Service (DDoS) attacks

up 100+% / year

IT spend

down 1.3% in 2015

CIOs Are Under Pressure to Solve Multiple Challenges

Acceleration of data and computing resources moving

to both public and private cloud infrastructures

11

Level 3

Private VPN

Demand Drivers

* WAN=Wide Area Network; SDN =Software Defined Networking; NFV=Network Function Virtualization

Level’s technology capabilities help CIOs solve their challenges

Level 3

Internet

Branch

Office

Managed

CPE

Multiple ISP

Connections

Branch

Office

Cellular

Backup

Managed

CPE

Mobile DevicesDatacenters

Headquarters

SDN/NFV*

Software enabling more efficient and flexible

network provisioning (SDN) and reducing hardware costs

(NFV)

Security

Increase in the number, types and size of threats driving

focus on new security solutions

Hybrid Cloud

Enterprises migratingfrom their own data

centers to hybrid clouds

Hybrid Networks

Enterprise traffic shifting from private to public

networks or hybrid WANs*

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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

13

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

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Vision of ONE

global employee

customernetwork

portfolio

system

team

Unite and Simplify to Accelerate Growth

ONEexperience

15

Why Does Level 3 Win?

• Broad and deep global network

Advantage vs. MostCompetitors

• Superior customer experience

• Technical expertise to design and manage large-scale complex solutions

Level 3’s global value proposition resonates with customers’ complex needs

• Ease of doing business

• Diversified product portfolio

• Dedicated customer account support

16

Level 3 Financial Overview

17

Historical Financial Performance

$4,333

$6,376 $6,313 $6,777

$8,229

2011 2012 2013 2014 2015

Total Revenue($ in millions)

5.8x

5.1x4.8x

4.4x

3.8x

2011 2012 2013 2014 2015

Leverage Ratio

($106)($165)

($47)

$251

$626

2011 2012 2013 2014 2015

Free Cash Flow($ in millions)

$958

$1,459 $1,624

$1,895

$2,638

22.1%22.9%

25.7%

28.0%

32.1%

2011 2012 2013 2014 2015

Adj EBITDA and Adj EBITDA Margin($ in millions)

Note: For definitions and reconciliation of non-GAAP results to GAAP measures used in this presentation, can be found at investors.level3.com

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72%

28%

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 1Q16

WholesaleEnterprise

1Q11

CNS Revenue $729 M CNS Revenue $1,457 M CNS Revenue $1,947 M

48%

52%

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Credit Profile Overview

Level 3 continues to focus on prudent balance sheet management

Over the last 5 years, have improved the net debt to Adjusted EBITDA ratio from approximately 7 times to within our target leverage range of 3 to 4 times, while increasing average maturity to over 6 years

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

4.0

5.0

5.7 5.6 5.66.0

8.1 8.07.5

6.8

5.9

4.8

7.0x

5.8x

5.1x4.8x

4.4x

3.8x

2010 2011 2012 2013 2014 2015

Weighted Avg Maturity (Years) Weighted Avg Cost of Debt (%) Leverage

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March 31,

2016

December 31,

2015

March 31,

2015(1)

December

31, 2015

December

31, 2014

Core Network Services 1,947$ 1,943$ 1,904$ 7,757$ 6,195$

Wholesale Voice Services 104 110 126 472 582

Total Revenue 2,051$ 2,053$ 2,030$ 8,229$ 6,777$

Adjusted EBITDA 710$ 681$ 620$ 2,638$ 1,895$

Capital Expenditures (297)$ (330)$ (251)$ (1,229)$ (910)$

Unlevered Cash Flow 324$ 399$ 188$ 1,293$ 848$

Free Cash Flow 213$ 226$ 42$ 626$ 251$

Network Access Margin 66.2 % 65.5 % 64.5 % 65.6 % 62.7 %

Adjusted EBITDA Margin 34.6 % 33.2 % 30.5 % 32.1 % 28.0 %

Net Income 124$ 3,323$ 122$ 3,433$ 314$

Basic Earnings Per Share 0.35$ 9.33$ 0.35$ 9.71$ 1.23$

Weighted-Average Shares

Outstanding (in thousands) 356,785 356,274 346,874 353,385 254,428

Diluted Earnings Per Share 0.34$ 9.24$ 0.35$ 9.58$ 1.21$

Weighted-Average Shares

Outstanding (in thousands) 360,339 359,712 350,832 358,593 258,483

Year Ended

Level 3 Communications

($ in millions)

Level 3 Communications Consolidated

($ in millions)

Three Months Ended

Summary of Financial Data

(1) Represents the consolidated results pro forma 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.Note: For definitions and reconciliation of non-GAAP results to GAAP measures, please refer to investors.level3.com

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Financial and Operational Metrics At-A-Glance

CNS Revenue by Geography 82% North America 10% EMEA 8% Latin America

CNS Revenue by Product Group 47% IP & Data 30% Transport & Fiber 16% Voice Services 7% Colocation & Datacenter

CNS vs. WVS Revenue 95% CNS 5% WVS

CNS Revenue by Channel 72% Enterprise 28% Wholesale

Customers Total: ~51,000 96% Enterprise 4% Wholesale

HeadcountTotal Employees: ~12,700QBHC: ~1,140

On-net Buildings Total: 43,900 78% North America 17% Latin America 5% EMEA

Shares Outstanding 357 million

U.S. Federal NOL Balance $9.8 billion

Net Debt to Adjusted EBITDA ratio 3.7x Focused on the low end of

target leverage range of 3 to 4 times

Revenue Metrics

Total Revenue by Currency 91% USD 4% GBP 2% EUR 2% BRL 1% All Other Currencies

CNS Revenue by Currency 90% USD 4% GBP 3% EUR 2% BRL 1% All Other Currencies

Capital Expenditures as a Percent of Total Revenue 1Q16: 14%

CNS Revenue Churn 1.1% (Monthly)

Operational Metrics Financial Metrics

Note: Both Financial and Operational Metrics are as of the end of first quarter 2016

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Level 3 First Quarter 2016 Earnings Results

Comparisons to prior periods are being presented on a “pro forma” (PF) basis, representing results adjusted to exclude the company’s Venezuelan subsidiary’s operations which were deconsolidated

at the end of the third quarter 2015. Growth rates disclosed in the presentation are on a year-over-year basis. Revenue comparisons to prior periods are provided on a constant currency basis, unless

otherwise noted. The reported first quarter 2015 results have been adjusted to reflect changes made to customer assignments between the wholesale and enterprise channels as of the beginning of

2016. For definitions and reconciliation of first quarter non-GAAP 2016 results to GAAP measures contained in the following slides, please refer to 1Q16 Supplemental Schedules that can be found

here http://investors.level3.com/investor-relations/financial-information/quarterly-financials/default.aspx

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Executing on Initiatives

Focus on Operational Excellence

Continued Sales Momentum

Systems Consolidation

Investments in Products and Network

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1Q16 Highlights

(1) On a pro forma, constant currency basis, excluding UK Government

YoY CNS Enterprise Revenue Growth(1)

• Sequential North America CNS Enterprise Revenue Growth of Approximately 2%

Delivered 15% YoY pro forma Adjusted EBITDA growth

Strong Free Cash Flow generation

6.2%

$710million

$213million

25

$1,904 $1,947

1Q15 PF 1Q16

CNS and Enterprise Revenue

3.6% growthConstant currency

CNS Revenue($ in Millions)

1Q16 CNS Revenue Growth(1)

Revenue ConstantCurrency

YoY%

As ReportedYoY%

Total CNS 3.6% 2.3%

Enterprise 5.7% 4.3%

Wholesale (1.4%) (2.7%)

North America 4.4% 4.4%

Enterprise 6.4% 6.5%

Wholesale (0.9%) (0.9%)

EMEA (4.9%) (7.7%)

Enterprise(2) (0.5%) (2.7%)

Wholesale (5.3%) (8.5%)

Latin America 7.6% (4.9%)

Enterprise 10% (2.5%)

Wholesale - (11%)

1Q16 CNS Revenue Churn(3)

(1) On a pro forma basis(2) Excluding UK Government(3) 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.

1.1%

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1Q16 CNS Revenue Mix

CNS Revenue Mix(By Region)

CNS Revenue Mix(By Customer Type)

82%

10%

8%

North America EMEA Latin America

72%

28%

Enterprise Wholesale

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1Q16 CNS Services Revenue

CNS Revenue by Service Type

1Q16 CNS Services Revenue

IP & Data Services

$918M

7.2%

5.6%

Constant Currency

Transport & Fiber

$579M

Voice Services

$303M

Colocation & Datacenter

$147M

(0.3%)

(1.2%)

2.4%

1.7%

(0.5%)

(2.6%)

As Reported

Constant Currency

As Reported

Constant Currency

As Reported

Constant Currency

As Reported

IP & Data

Transport & Fiber

Colocation & Datacenter

Voice Services

Note: Growth rates are on a year-over-year, pro forma basis

47%

30%16%

7%

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Network Related (NRE) and SG&A Expenses

($ in millions)

Network Access Costs and Operating Expenses

Network Access Costs & Margin($ in millions)

(1) Excludes non-cash compensation expense of $5 million and $7 million in NRE for 1Q15PF and 1Q16, respectively and $26 million and $40 million in SG&A for 1Q15PF and 1Q16, respectively.

(1)

$720

$694

64.5%

66.2%

1Q15 PF 1Q16

Network Access Costs Network Access Margin

$349 $331

$341 $316

34.0%

31.5%

1Q15 PF 1Q16

NRE SG&A NRE and SG&A Expenses % Total Revenue

$647$690

Network Access Costs and Operating Expenses

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Adjusted EBITDA & Free Cash Flow

Adjusted EBITDA($ in millions)

Free Cash Flow($ in millions)

$620

$710

30.5%

34.6%

1Q15 PF 1Q16

Adjusted EBITDA Adjusted EBITDA Margin

$42

$213

1Q15 PF 1Q16

Lowered Net Debt to Adjusted EBITDA Leverage to 3.7x

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Adjusted EBITDA(1)(2)

Free Cash Flow

Capital Expenditures

2016 Business Outlook

(1) From a starting point of $2.592 billion, which represents 2015 Adjusted EBITDA, on a pro forma basis to exclude results from Venezuela

(2) Updated as of 1Q16

YoY Growth of 10% to 12%

$1.0 to $1.1 billion

15% of Total Revenue

Outlook Metric

31

Appendix

32

Strong Industry Recognition

*Gartner “Magic Quadrant for Network Services, Global,” by Neil Rickard, Bjarne Munch, January 14, 2016; Gartner Critical Capabilities for Wireline Telecom Services, U.S. DanellieYoung and Sorell Slaymaker U.S. February 25, 2015.

*Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

2016 Gartner Global Network Services Magic Quadrant “Challenger” (positioned furthest within “Challengers” quadrant)*

2015 Level 3 Communications receives second highest product scores in Gartner’s Critical Capabilities (US) report*

2015 Atlantic-ACM North American Business Connectivity for Brand, Network Performance, Data and Voice Value

2015 MEF Ethernet Excellence Awards

• Retail Service Provider of the Year – North America, Global, and CALAWholesale Service Provider of the Year – North America, CALA

• 2014/2015 Frost & Sullivan Excellence in Best Practices Award for:

• North American VoIP Access and SIP Trunking Product Line Strategy Leadership Award

2015 Vertical Systems Group Mid Year US Carrier Ethernet Service Market

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Thank You

Level 3 Communications 1025 Eldorado Boulevard

Broomfield, CO 80021

720-888-2518investors.level3.com

investor.relations@level3.com