NaaS Market Opportunity and Strategic Imperatives slide image

NaaS Market Opportunity and Strategic Imperatives

Driving Revenue Shift to the Grow Category We zoomed in on our product suite, recategorized our offerings, and have now rotated our focus towards products that are high Customer Lifetime Value¹ and high growth, with next- generation capabilities • Market Business Strategy to Products Included Product Category Maximize Cash Flow Prioritize growth to: (Non-exhaustive) CLV1 2023 Revenue 2027 Revenue Mix² Mix² 3-Yr CAGR³ GROW • Future-proof company Increase CLV potential VoIP/UC&C, SASE, SD-WAN, IP, Waves, Managed Security -10x 41% 59% ~8% NURTURE Maintain customer spend and loyalty VPN Data Networks, Ethernet ~3x 33% 22% ~(3%) HARVEST Migrate to Grow to preempt churn Legacy Voice, Managed Hosting, Private Line 1x 18% 11% ~(4%) Note: Percentages in projections columns do not add up to 100% due to exclusion of "other" category. 1. Metrics represent results relative to Harvest category. 2. Enterprise channel projected revenue excludes financial results of Lumen's EMEA business which is under contract for sale. See "Forward-Looking Statements" 3. Projected FY23-FY26 CAGR. 13 Issued: June 5, 2023 LUMEN®
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