Qwest Communications International Inc
Qwest Communications International — Merger or Acquisition (April 2010)
15 slides from Qwest Communications International's merger presentation, Apr 22, 2010
Slide 1: CenturyLink Acquisition of Qwest: Employee Overview
Exhibit 99.7 CenturyLink Acquisition of Qwest Employee Overview Glen Post Thursday, April 22, 2010 «a WM “a CenturyLink~
Slide 2: Safe Harbor Language
Safe Harbor Language Forward Looking Statements Except for the historical and factual information contained herein, the matters set forth in this release, including statements regarding the expected timing and benefits of the acquisition such as efficiencies, cost savings, enhanced revenues, growth
Slide 3: Additional Information
Additional Information Additional Information CenturyLink and Qwest plan to file a joint proxy statement/prospectus with the SEC. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain the j
Slide 4: About Qwest
About Qwest ¢ 30,000 employees in 14 mostly Western states ¢ Provides services to 95 percent of Fortune 500 companies ¢ Significant number of large business, government and wholesale customers ¢ Industry-leading national fiber network ¢ We will maintain a key operational presence in Denver, includin
Slide 5: Transaction Summary
Transactio umma Transaction Structure: All stock combination Fixed Exchange Ratio: 0.1664 shares of CenturyLink stock per share of Qwest stock Pro Forma Ownership: 50.5% CenturyLink shareholders / 49.5% Qwest shareholders Transaction Value: $22.4 billion, including net debt of $11.8 billion as of 12
Slide 6: Compelling Combination
Compelling Combination Transformational transaction will create a nationwide, industry-leading communications company ¢Pro forma 2009: revenue - $19.8 billion; EBITDA - $8.2 billion; free cash flow © - $3.4 billion ¢ Extensive broadband capabilities with 173,000-mile fiber network «Premier enterpris
Slide 7: Compelling Combination (cont)
Compelling Combination (cont) Well positioned strategically with significant scale and scope * National breadth and local depth with a compelling array of broadband products and services « Diverse markets and revenues ¢ Strong growth platform - enterprise, broadband and enhanced services + Attractiv
Slide 8: A Local Operating Model with A Premier Nationwide Network
A Local Operating Model with A Premier Nationwide Network Transformational transaction will create a nationwide, industry-leading communications company with national breadth and local depth National Breadth + Approximately $5 billion of pro forma 2009 enterprise revenue + Serves more than 95% of Fo
Slide 9: Enhanced Scale, Scope and Reach
Enhanced Scale, Scope and Reach cca ITVAIUC cova revenue $20 S4t t $20 A $40 : 1 ! i 20 1 $15 : 1 822 1 H $18 sto 1 $20 ! $16 ij fi st 1 510 4 $5 ‘ s4 | 1 i 1 so ¢ so 1 Proforma cm FR = WIN" Proforma | wn cmLiQ t ctL/q | 2009 Access Lines 2009 Broadband (ormtions) (a miions) 6 —x5—! a a a1 16 1 = 7
Slide 10: Attractive Financial Profile
Attractive Financial Profile 2009 EBITDA 2009 EBITDA % Margin (Sin billions) 310 60% $8 40% $6 $4 20% ‘ ir Pro Forma Pro Forma cma cma 09 Dividend Payout Rati 2009 Net Leverage 80% 40x 33x 60% 30x 21% 26x 2ax 20x 40% 20x 20% 10x L 0% 00x Pro Forma win® Pro Forma win” Q FIR™ cm” cma cma Source: Compa
Slide 11: Governance
Governance Chairman of the Board: William A. Owens Chief Executive Officer Glen F. Post Ill & President: Chief Financial Officer: R. Stewart Ewing Jr. Chief Operating Officer: Karen A. Puckett President of Business Christopher K. Ancell Markets Group: Board Members: 4 members from the current Qwest
Slide 12: Approval and Integration Process
Approval and Integration Process e Similar to Embarq transaction process e FCC, DoJ, shareholders and states need to approve e Will adopt CenturyLink regional operating model e Will keep employees informed throughout process e Expect to conclude acquisition process in first half of 2011 we ar 2 Cent
Slide 13: Great Strategic Combination
Great Strategic Combination ¢Significantly enhanced scale with improved growth characteristics «Immediately accretive to free cash flow / improved payout ratio *Significant free cash flow, solid balance sheet and strong liquidity «Extensive broadband capabilities with 173,000-mile fiber network «Exp
Slide 14: Thank You!
Thank You! Remain focused on key strategic areas: « Successfully complete merger integration * Laser focus on owning the broadband position in our markets ¢ Intensify customer/revenue growth and retention efforts * Remain vigilant about cost control ¢ Invest in and develop new products and related b
Slide 15: a A,
a A, 71 CenturyLink
Qwest Communications International — Merger or Acquisition (April 2010) on 6ix