Exhibit 99.2
Frontier (FYBR)Fourth Quarter 2021 Results February 23, 2022
Safe Harbor statement This presentation contains "forward-looking statements" related to future events. Forward-looking statements address our expectations or beliefs concerning future events, including, without limitation, our future operating and financial performance, our implementation of strategic initiatives, and our ability to comply with the covenants in the agreements governing our indebtedness and other matters. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and performance and contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “may,” “will,” “would,” or “target.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. A wide range of factors could materially affect future developments and performance, including but not limited to: our significant indebtedness, our ability to incur substantially more debt in the future, and covenants in the agreements governing our current indebtedness that may reduce our operating and financial flexibility; declines in Adjusted EBITDA relative to historical levels that we are unable to offset; our ability to successfully implement strategic initiatives, including our fiber buildout and other initiatives to enhance revenue and realize productivity and service improvements; our ability to secure necessary construction resources, materials and permits for our fiber buildout initiative in a timely and cost effective manner; potential disruptions in our supply chain and the effects of inflation resulting from the COVID-19 pandemic, the global microchip shortage, or otherwise, which could adversely impact our business and hinder our fiber expansion plans; our ability to effectively manage our operations, operating expenses, capital expenditures, debt service requirement and cash paid for income taxes and liquidity; competition from cable, wireless and wireline carriers, satellite, fiber “overbuilders” and OTT companies, and the risk that we will not respond on a timely or profitable basis; our ability to successfully adjust to changes in the communications industry, including the effects of technological changes and competition on our capital expenditures, products and service offerings; risks related to disruption in our networks, infrastructure and information technology that result in customer loss and/or incurrence of additional expenses; the impact of potential information technology or data security breaches or other cyber-attacks or other disruptions; our ability to retain or attract new customers and to maintain relationships with customers; our reliance on a limited number of key supplies and vendors; declines in revenue from our voice services, switched and nonswitched access and video and data services that we cannot stabilize or offset with increases in revenue from other products and services; our ability to secure, continue to use or renew intellectual property and other licenses used in our business; our ability to hire or retain key personnel; our ability to dispose of certain assets or asset groups or to make acquisition of certain assets on terms that are attractive to us, or at all; the effects of changes in the availability of federal and state universal service funding or other subsidies to us and our competitors and our ability to obtain future subsidies, including participation in the proposed RDOF program; our ability to comply with the applicable CAF II and RDOF requirements and the risk of penalties or obligations to return certain CAF II and RDOF funds; our ability to defend against litigation and potentially unfavorable results from current pending and future litigation; our ability to comply with applicable federal and state consumer protection requirements; the effects of governmental legislation and regulation on our business, including costs, disruptions, possible limitations on operating flexibility and changes to the competitive landscape resulting from such legislation or regulation; the impact of regulatory, investigative and legal proceedings and legal compliance risks; our ability to effectively manage service quality in the states in which we operate and meet mandated service quality metrics; the effects of changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments; the effects of changes in accounting policies or practices; our ability to successfully renegotiate union contracts; the effects of increased medical expenses and pension and postemployment expenses; changes in pension plan assumptions, interest rates, discount rates, regulatory rules and/or the value of our pension plan assets; the likelihood that our historical financial information may no longer be indicative of our future performance and our implementation of fresh start accounting; the impact of adverse changes in economic, political and market conditions in the areas that we serve, the U.S. and globally, including, but not limited to, disruption in our supply chain, inflation in pricing for key materials or labor, or other adverse changes resulting from epidemics, pandemics and outbreaks of contagious diseases, including the COVID-19 pandemic, natural disasters, economic or political instability or other adverse public health developments; potential adverse impacts of the COVID-19 pandemic on our business and operations, including potential disruptions to the work of our employees arising from health and safety measures such as social distancing, working remotely and recent applicable federal, state, and local mandates, and prohibitions, our ability to effectively manage increased demand on our network, our ability to maintain relationships with our current or prospective customers and vendors as well as their abilities to perform under current or proposed arrangements with us; risks associated with our emergence from the Chapter 11 Cases, including, but not limited to, the continuing effects of the Chapter 11 Cases on us and our relationships with our suppliers, customers, service providers or employees and changes in the composition of our board of directors and senior management; volatility in the trading price of our common stock, which has a limited trading history; substantial market overhang from the common stock issued in the Chapter 11 reorganization; certain provisions of Delaware law and our certificate of incorporation that may prevent efforts by our stockholders to change the direction or management of our Company; and certain other factors set forth in our other filings with the SEC. This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not intended to be exhaustive. You should consider these important factors, as well as the risks and other factors contained in Frontier’s filings with the U.S. Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. We do not intend, nor do we undertake any duty, to update any forward-looking statements.Non-GAAP Financial MeasuresCertain financial measures included herein, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses and Operating Free Cash Flow, are not made in accordance with U.S. GAAP, and use of such terms varies from others in the same industry. Non-GAAP financial measures should not be considered as alternatives to net income (loss), net income margin or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or cash flows as measures of liquidity. Non-GAAP financial measures have important limitations as analytical tools, and you should not consider them in isolation or as substitutes for results as reported under U.S. GAAP. This presentation includes a reconciliation of certain non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with U.S. GAAP. Projected GAAP financial measures and reconciliations of projected non-GAAP financial measures are not provided herein because such GAAP financial measures are not available on a forward-looking basis and such reconciliations could not be derived without unreasonable effort.This presentation uses the term “Implied Enterprise Value”, “Implied EV” and other similar terms, which is calculated using a trend line implied by our peers and certain assumed levels of broadband penetration. This term does not necessarily represent our actual enterprise value. Note Regarding Classifications of ResultsUnless otherwise indicated, the information presented herein, including operational, non-GAAP measures, and commentary pertain to the Remaining Properties only. “Remaining Properties,” as defined in Frontier’s 10-K for the year ended December 31, 2020, comprises the 25 states Frontier currently operates in and excludes Washington, Oregon, Idaho, and Montana due to the divestiture of operations and assets in these states effective May 1, 2020. “Consolidated” refers to the entire business, which may include financial data from Washington, Oregon, Idaho, and Montana for the periods through May 1, 2020. References to “Northwest Ops” refer to the metrics of the four Northwest states. Upon emergence from bankruptcy, Frontier adopted fresh start accounting in accordance with ASC 852. Unless otherwise noted, all figures and growth rates have been normalized to reflect the impact of fresh start accounting. Forward looking language
3 © Frontier Communications. John StrattonExecutive Chairman of the Board • • • • • • •
Frontier today: company overview Key operational & financial metrics1 Frontier footprint $6.4BLTM Revenue as ofQ4 ‘21 $2.5BLTM Adjusted EBITDA as of Q4 ‘21 2.8MBroadband Customers2 $1.1BLTM Adjusted EBITDA from Fiber as of Q4 ‘21 23kTowers within 1 mile of Frontier fiber 400kBusinesses within 250 feet of Frontier fiber 1. All metrics shown are adjusted for the sale of Northwest Operations and have been normalized to reflect the impact of fresh start accounting. EBITDA and Adjusted EBITDA are non-GAAP measures. See Appendix slides for reconciliations to the closest GAAP measure. See Frontier’s supplemental trending schedules, available at www.frontier.com/ir, for information regarding certain GAAP and non-GAAP measures, including the impact of fresh start accounting. 2. Including consumer and business broadband subscribers
2021 was a pivotal year as we built a new team and began executing on our fiber-centric strategy 2021 March Listed on NASDAQ Trading under FYBR May April July August September October Today Q2-Q3 President & CEO Nick Jeffery joins New Board of Directors announced February New management team formed Launched Consumer Emergence Offer Announced plans to reach 10M+ fiber locations by 2025 at Inaugural Investor Day Finished record quarter of fiber build and fiber net adds Executed $1B debt offering Launched 2Gbps Broadband Service Q4 Earnings Call 2022
We achieved several key inflection points in 2021, with more to come in 2022 and 2023 Q2 2021 Inflection of Fiber Build Q3 2021 Inflection of Fiber Broadband Net Adds Q4 2021 Inflection of Total Broadband Net Adds Projected Late 2022 Sequential EBITDA growth Projected 2023 Year-over-year EBITDA and Revenue growth
Long-term trends in the private and public sector continue to create positive momentum for the business Data usage expected to triple over next five yearsFiber is the best product to meet this demandFrontier has a cost advantage in building fiber and deploying faster speeds over time Government broadband stimulus spending expected to increase 5-6x over the next few years1 Building Gigabit America™ is our purpose and aligned with Government initiativesOur incumbent position provides significant speed and cost advantages to building fiber Our products connect people to the Digital SocietyWe are developing a talented, diverse, and sustainable workforce We are stewards of the environmentWe are committed to the highest principles of governance Growth in demand for high-speed broadband Increased public funding to bridge digital divide Expanded focus on ESG investing 1. Wall Street research
We continue to make progress on the 4 levers of value creation that we laid out at our August Investor Day BuildingGigabitAmerica™ PenetrationWin customers in our fiber footprint Operational efficiencySimplify and digitize operations Customer ExperienceDeliver an exceptional endto end customer journey Fiber DeploymentAccelerate our fiber build 1 2 3 4
9 © Frontier Communications. Nick JefferyPresident & Chief Executive Officer • • • • • • •
We made significant progress executing on our strategic priorities in Q4 Built a record 192,000 new fiber locations, reaching target of ~4M total fiber locations at the end of 2021 Added a record 45,000 fiber broadband customer net additions, over 50% higher than prior record set in Q3-2021 Achieved positive total broadband customer growth for the first time in more than 5 years Earned record-high NPS scores and record-low churn through strong operational execution Launched nation’s only network-wide 2Gig fiber internet service in February 2022
BuildingGigabitAmerica™ PenetrationWin customers in our fiber footprint Operational efficiencySimplify and digitize operations Customer ExperienceDeliver an exceptional endto end customer journey Fiber DeploymentAccelerate our fiber build 1 2 3 4
We achieved a record quarter of new fiber passings in Q4 and finished 2021 with ~4M fiber passings… Wave 2: 10M+ fiber passings by end of 2025 Wave 1: 4M+ fiber passings by end of 2021 2Q21 4Q20 3Q20 1Q20 3Q21 4Q21 2Q20 1Q21 2020 2022 2021 2023 2024 2025 1M+ expected in 2022 1. Consumer and business locations with less than 5 units per location included in expansion passings. Quarterly Fiber Expansion Passings1, Thousand passings Projected Fiber Passings1, Million passings
…and we put the foundation in place to scale even more rapidly in the next 18 months Key foundational elements implemented in 2021 Expanded pool of suppliers for both labor and materials Signed multi-year agreements with key partners to secure supply while meeting cost targets Improved permitting process to reduce time to permit Enhanced power of our network with industry-leading trial of 25Gig
BuildingGigabitAmerica™ PenetrationWin customers in our fiber footprint Operational efficiencySimplify and digitize operations Customer ExperienceDeliver an exceptional endto end customer journey Fiber DeploymentAccelerate our fiber build 1 2 3 4
Consumer Fiber: We have come a long way since early 2021 by fixing the basics of our consumer business… Value-Added Services Early 2022 Pre-Emergence: Early 2021 Consumer Offer Standardized 3 tier offer for 500Mpbs, 1 Gig, and 2 GigFastest entry speeds, best value, fastest top performance Complex legacy pricing offers, with unclear value proposition and added operational complexity Launched best in-home Wi-Fi experience Expanded OTT partnerships Limited roadmap beyond OTT Partnership with DirectTV StreamLimited in-home Wi-Fi capability Brand Reputation Fiber NPS scores up 30+ points since early 2021 Tarnished brand with Fiber NPS scores in negative 20s Digital Customer Acquisition New partnership with Red Ventures to develop digital channel marketing and intelligence strategies, while building Frontier capabilitiesConsumer e-cart, AI-powered A/B testing and mix optimization Limited digital customer acquisition capabilities
…and our strong execution has led to two successive quarters of record consumer fiber broadband growth 4Q21 1Q20 2Q20 3Q20 4Q20 2Q21 1Q21 3Q21 ~5X growth We added a record number of fiber broadband customers, almost 5X the previous Q4… Consumer Fiber Broadband Net Adds, ‘000 customers …driving fiber broadband customer growth of 8% this year Consumer Fiber Broadband Consumers, ‘000 customers 1Q21 4Q21 4Q20 1Q20 3Q21 2Q21 2Q20 3Q20 +8%
Base fiber penetration improved to 41.9%, and Expansion fiber penetration exceeded the high end of target range 41.2% 2Q20 41.0% 4Q21 41.2% 3Q20 1Q21 40.7% 40.8% 41.3% 41.5% 41.9% 1Q20 2Q21 3Q21 4Q20 Base fiber penetration improved to 41.9%, led by gains in TX and FL Base Fiber Penetration, % of passings 86k passings in cohort have hit 12-month mark; we continue to expect 15-20% penetration for Wave 2 Expansion Fiber Penetration,% of passings 22% 2020 Build CohortPenetration at 12 months
We are widening our network advantages against the competition 2Gbps Further enhances our industry leading consumer offering $54.99 Fastest entry speedsSpeeds starting at 500Mbps Compelling value No Activation Fee. No Hidden Fees. Everyday Low Price Top performance Symmetrical speeds upto 2Gbps, the highest in-market 2 Gbps Stream with high resolution video quality Multiple users or large families simultaneously Telecommute and video conference with confidence Symmetrical speeds up to 500Mbps 500Mbps $79.99 Total home Wi-Fi, powering all your users, devices and online activities Symmetrical speeds up to 1Gbps 1Gbps1 $149.99 Symmetrical speeds up to 2Gbps 2Gbps Our flagship speed Our fastest speed available Game with ultimate performance Unlock the power of 8K TV and AR/VR 8K 1. Max wired speeds of 940/880, actual speeds may vary Total home Wi-Fi, My Premium Tech, Multi-Device Security
Business and Wholesale: We have also made significant progress in turning around our business and wholesale segment Pre-Emergence: Early 2021 Early 2022 Wholesale Limited strategic partnerships with key carriers Multi-year strategic agreement with AT&T, to boost connectivity to cell towers and enterprise customers SMB Complex offer and pricing with unclear value propositionGeneric marketing campaigns, based on broader Consumer campaignsInbound-centric acquisition structure, absence of robust outbound channelsLack of local engagement and regionalized focusNo program in place to migrate fiber-eligible copper customers Simple three tier offer with attractive pricing and Business Suite includedNeeds-based SMB dedicated marketing campaignsRefined and optimized inbound and outbound channel strategyRegional campaigns tailored to drive local engagement in key marketsProactive effort to migrate fiber-eligible copper customers Enterprise Unclear segmentation and lack of well-defined coverage modelProduct portfolio centered on legacy products with product gapsFragmented sales operations and customer management structure and limited CRM capability Refined segmentation and coverage model to focus on highest potential customers and prospectsSimplified portfolio with focus on strategic productsConsolidated sales operations and customer management structure with optimized CRM platform
BuildingGigabitAmerica™ PenetrationWin customers in our fiber footprint Operational efficiencySimplify and digitize operations Customer ExperienceDeliver an exceptional endto end customer journey Fiber DeploymentAccelerate our fiber build 1 2 3 4
Early 2022 Pre-Emergence: Early 2021 Through our relentless focus on the customer experience, we have begun regaining loyalty Next Day Install Customer Billing Equipment Returns Customer Communications Simplified, paperless billing and emphasis on auto-pay Paper billing with inconsistent format Streamlined IVR, automated and simplified SMS and email communications, online FAQs and self-help tools Customer communications driven by manual call center processes Next-day install availability across bulk of footprint Long install intervals with frequent delays, resulting in cancelled orders Simplified, automated return process with mail-in option and QR code Manual equipment return requiring Technician pick up or customer drop off
Fiber Net Promoter Score up ~33 points from January to December 2021 Fiber and copper churn both down more than 20 points year-over-year Jan-21 Apr-21 Feb-21 Mar-21 May-21 Aug-21 Jun-21 Jul-21 Sep-21 Oct-21 Nov-21 Dec-21 Our Fiber NPS turned positive for the first time in Q4, and our churn continues to improve 4Q21 4Q20 Fiber -24 pts 4Q21 4Q20 Copper -27 pts Frontier 2021 Fiber Net Promoter Score Consumer Broadband Churn, %
23 © Frontier Communications. Scott BeasleyChief Financial Officer • • • • • • •
Q4 2021:Financial Highlights Note: Adjusted EBITDA is a non-GAAP measure. See Appendix for reconciliations to closest GAAP measures. $468M of Net Cash from Operations, driven by healthy operating performance and increased focus on working capital management $273M of Adjusted EBITDA from Fiber Products, roughly flat sequentially as higher Consumer Fiber performance was offset by lower voice and other $585M of Adjusted EBITDA, roughly flat sequentially across Fiber and Copper $189M Net Income $1.54B Revenue, including roughly flat sequential data revenue but lower voice revenue
Fiber broadband revenue growth remained strong, partly offsetting voice and video declines Revenue from Fiber1, $M Revenue Commentary Revenue from Copper1, $M Q4 2020 685 Q4 2021 Q3 2021 675 684 Q3 2021 Q4 2020 784 Q4 2021 809 866 Business and Wholeslae Consumer 1. Excluding subsidy and other revenue. See the supplemental trending schedules, available at www.frontier.com/ir, for information regarding certain GAAP and non-GAAP financial measures, including the impact of fresh start accounting. Revenue from fiber declined sequentially, as broadband growth was offset by video and voice declines Consumer Fiber broadband revenue grew 11% year-over-year Business and wholesale fiber revenue declined ~1% year-over-year Revenue from copper products declined ~9% year-over-year, driven by declines across consumer, business and wholesale Copper consumer broadband revenue declined ~3% year-over-year, while voice and video declines were more significant
Q4 2021 Adjusted EBITDA1, $M Adjusted EBITDA Commentary Fiber represents the majority of Adjusted EBITDA, and should continue growing as we expand our fiber network Fiber Products Copper Products 1. EBITDA and Adjusted EBITDA are non-GAAP financial measures. See the supplemental trending schedules, available at www.frontier.com/ir, and the Appendix hereto for information regarding Adjusted EBITDA from Fiber and Copper products. Adjusted EBITDA from Fiber products was roughly flat year-over-year, as strong consumer broadband growth and margin improvements were offset by revenue declines in voice and wholesale Adjusted EBITDA from Fiber products now represents 54% of total EBITDA, up from 48% in the fourth quarter of 2020 Adjusted EBITDA from Copper products was in-line with our expectations, and we expect year-over-year declines to moderate over the next several quarters
BuildingGigabitAmerica™ PenetrationWin customers in our fiber footprint Operational efficiencySimplify and digitize operations Customer ExperienceDeliver an exceptional endto end customer journey Fiber DeploymentAccelerate our fiber build 1 2 3 4
Fit for the Future Update: We surpassed our in-year target for 2021, and are on track to exceed our original savings targets 2021 $25M 2022 2023 $100M $250M Gross run-rate savings (Announced at Aug 2021 Investor Day) Additional $150M+ one-time cash benefits from divesting non-core assets On track to exceed original targets Exceeded original target with ~$90M of run-rate savings Fit for the Future Program Targets
We continue to simplify our business to reduce our cost structure and redeploy capital into our fiber growth strategy Closeretail stores Consolidate excess locations to reduce operating expenses and redeploy cash Divest non-productive real estate Reviewing ancillary businesses with low margin or non-recurring revenues Review options on CPE business Objective Progress in 2021 Exit retail stores, which are not reflective of consumer broadband buying behavior Diversify base of key suppliers while consolidating overall vendor base Transform Procurement Sold 18 properties for cash proceeds of $42M Closed more than 50 retail stores in 2H 2021Redeployed efforts into digital interaction Divested CPE business in Q4-21 to focus on core connectivity ($50M of revenue but minimal EBITDA) Diversified Fiber Build Supplier baseConsolidated long tail of tactical vendors
We continue to simplify our business to reduce our cost structure and redeploy capital into our fiber growth strategy Closeretail stores Consolidate excess locations to reduce operating expenses and redeploy cash Divest non-productive real estate Reviewing ancillary businesses with low margin or non-recurring revenues Review options on CPE business Objective Progress in 2021 Exit retail stores, which are not reflective of consumer broadband buying behavior Diversify base of key suppliers while consolidating overall vendor base Transform Procurement Sold 18 properties for cash proceeds of $42M Closed 13 retail stores in 2H 2021Redeployed efforts into digital interaction Divested CPE business in Q4-21 to focus on core connectivity ($50M of revenue but minimal EBITDA) Diversified Fiber Build Supplier baseConsolidated long tail of tactical vendors
Disciplined Capital Allocation: We are rigorously focused on improving our return on capital Fiber build will be primary focus of capital allocation; dynamic model to target highest IRR opportunities for revenue growth and cost reduction We generated $468M of net cash from operating activities in the fourth quarter Committed to disciplined balance sheet management; with net leverage in “mid-threes” Strong cash flow generation Disciplined balance sheet management Rigorous capital allocation decision-making
Strong liquidity to fund fiber build, with no significant maturities before 2027 Maturity Profile as of December 31, 20211, $M 2029 2024 2023 2022 2025 2026 2027 2028 2030 2031 1. Excludes amortization payments of ~$15 million per year on Term Loan.2. Leverage ratio is a non-GAAP measure. See supplemental trending schedules available at www.frontier.com/ir. 4Q21 Leverage Ratio Weighted Average Cost of Debt Weighted Average Life of Debt Current Liquidity 2.4x2 5.7% 7.7 years $2.6B, including ~$2.1B of cash
Introducing 2022 Financial Guidance Adjusted EBITDA Capital Expenditures Fiber Build Note: Projected GAAP financial measures and reconciliations of projected non-GAAP financial measures are not provided herein because such GAAP financial measures are not available on a forward-looking basis and such reconciliations could not be derived without unreasonable effort. Adjusted EBITDA is a non-GAAP Financial measure. $2.40 - 2.50B 1M+ locations $2.00 - 2.15B
Favorable market structure Strong & growing demand Clear strategy & purpose Ample liquidity & access to capital Strong & experienced leadership team Superior product Frontier Investment Thesis
34 © Frontier Communications. Q&A • • • • • • •
35 © Frontier Communications. • • • • • • • Appendix
Non-GAAP Financial Measures – Remaining Properties (Millions) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net Income (Loss) $(283) $(210) $15 $(50) $60 $4,580 $126 Add back (Subtract) Income Tax Expense (Benefit) (23) (57) (11) 7 87 (180) 31 Interest Expense 383 160 121 98 89 91 90 Investment and Other (income) Loss, Net (5) 20 14 14 (2) 3 37 Pension Settlement Costs 103 56 - - - - - Loss on Extinguishment of Debt - - -- 72 - - - Reorganization Items, Net - 142 131 136 25 (4,196) - Operating Income 175 �� 111 270 277 259 298 284 Depreciation and Amortization 415 397 392 394 387 298 273 EBITDA $590 $508 $662 $671 $646 $596 $557 Add back: Pension / OPEB Expense $23 $23 $24 $20 $23 $21 $18 Restructuring Costs and Other Charges 48 36 3 - 2 16 8 Stock-based Compensation Expense 1 1 1 - (1) - 8 Storm Related Insurance Proceeds - (1) - - - - (4) Gain/Loss on Disposal of NW Operations 24 136 - 2 - - - Adjusted EBITDA $686 $703 $690 $693 $670 $633 $587 EBITDA margin 33.0% 29.0% 38.4% 39.6% 38.5% 36.9% 35.3% Adjusted EBITDA margin 38.4% 40.1% 40.0% 40.9% 40.0% 39.2% 37.2% Q4 2021 $189 12 105 (34) - - - 272 282 $554 $19 2 10 - - $585 35.9% 37.9%