Exhibit 99.1
Quarterly Investor Update March 8th, 2021
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Safe Harbor StatementForward-looking Language 2 This presentation contains "forward-looking statements," related
to future events. Forward-looking statements address Frontier’s expected future business, financial performance, and financial condition, 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. For Frontier, particular uncertainties that could cause actual results to be materially different than those
expressed in such forward-looking statements include: our ability to continue as a going concern; our ability to successfully consummate a financial restructuring of our existing debt, existing equity interests, and certain other obligations
(the Restructuring), and emerge from cases commenced under chapter 11 (the Chapter 11 Cases) of the United States Bankruptcy Code, including by satisfying both the conditions in the plan and the conditions and milestones in the restructuring
support agreement; our ability to improve our liquidity and long-term capital structure and to address our debt service obligations through the Restructuring and the potential adverse effects of the Chapter 11 Cases on our liquidity and
results of operations; our ability to maintain relationships with suppliers, customers, employees and other third parties as a result of the Restructuring and the Chapter 11 Cases; the effects of the Restructuring and the Chapter 11 Cases on
Frontier and the interests of various constituents; risks and uncertainties associated with the Restructuring, including our ability to satisfy the conditions precedent for effectiveness of and successfully consummate the Restructuring; our
ability to comply with the restrictions imposed by covenants in our debtor-in-possession financing and expected to be imposed by our exit financing; the length of time that Frontier will operate under Chapter 11 protection and the continued
availability of operating capital during the pendency of the Chapter 11 Cases; risks associated with third party motions in the Chapter 11 Cases, which may interfere with Frontier’s ability to consummate the Restructuring; increased
administrative and legal costs related to the Chapter 11 process; 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; declines in Adjusted EBITDA relative to historical levels that we are unable to offset through potential EBITDA enhancements; our ability to successfully implement strategic initiatives, including opportunities to
enhance revenue and realize productivity improvements; 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, 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, employees
or suppliers; our ability to secure, continue to use or renew intellectual property and other licenses used in our business; changes to our board of directors and management team upon emergence from bankruptcy or in anticipation of emergence,
and our ability to hire or retain key personnel; our ability to dispose of certain assets or asset groups 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 expiration of CAF II funding and future RDOF funding and participation in the next round of the RDOF program; our ability to meet our CAF II
and RDOF obligations and the risk of penalties or obligations to return certain CAF II and/or 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 state regulatory requirements that could limit our ability to transfer cash among our subsidiaries or dividend funds up to the parent company; 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; government infrastructure projects (such as highway construction) that impact our capital expenditures; continued reductions in switched access revenues as a
result of regulation, competition or technology substitutions; 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, including the risk that such changes may benefit our competitors more than us, as well as potential future decreases in the value of our deferred tax assets; the effects of
changes in accounting policies or practices, including potential future impairment charges with respect to our intangible assets or additional losses on assets held for sale; the effects of increased medical expenses and pension and
postemployment expenses; our ability to successfully renegotiate union contracts; changes in pension plan assumptions, interest rates, discount rates, regulatory rules and/or the value of our pension plan assets, which could require us to
make increased contributions to the pension plan in 2020 and beyond; adverse changes in economic, political and market conditions in the areas that we serve, the U.S. and globally, including but not limited to, changes resulting from
epidemics, pandemics and outbreaks of contagious diseases, including the COVID-19 pandemic, 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 and working remotely, 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, and stress on our supply chain; trading price and volatility of our common stock, risks related to the
delisting of our common stock from the Nasdaq Global Select Market; and the risks and other factors contained in Frontier’s filings with the U.S. Securities and Exchange Commission, including our most recent report on Form 10-K and the
cancellation of our common stock contemplated by the Plan. These risks and uncertainties may cause actual future results to be materially different than those expressed in such forward-looking statements. Frontier has no obligation to update
or revise these forward-looking statements and does not undertake to do so.
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Non-GAAP Financial Measures 2 Frontier uses certain non-GAAP financial measures in evaluating its performance,
including EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, operating free cash flow, and adjusted operating expenses, each of which is described below. Management uses these non-GAAP financial measures internally to (i) assist
in analyzing Frontier's underlying financial performance from period to period, (ii) analyze and evaluate strategic and operational decisions,(iii) establish criteria for compensation decisions, and (iv) assist in the understanding of
Frontier's ability to generate cash flow and, as a result, to plan for future capital and operational decisions. Management believes that the presentation of these non-GAAP financial measures provides useful information to
investors regarding Frontier’s financial condition and results of operations because these measures, when used in conjunction with related GAAP financial measures (i) provide a more comprehensive view of Frontier’s core operations and
ability to generate cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation, and planning decisions and(iii) present measurements that investors and rating
agencies have indicated to management are useful to them in assessing Frontier and its results of operations. A reconciliation of these measures to the most comparable financial measures calculated and presented in accordance with GAAP is
included in the accompanying tables. These non-GAAP financial measures are not measures of financial performance or liquidity under GAAP, nor are they alternatives to GAAP measures and they may not be comparable to similarly titled measures
of other companies.EBITDA is defined as net income (loss) less income tax expense (benefit), expense, investment and other (loss), pension settlement interest income costs, gains/losses on extinguishment of debt, reorganization items and
depreciation and amortization. EBITDA margin is calculated by dividing EBITDA by total revenue.Adjusted EBITDA is defined as EBITDA, as described above, adjusted to exclude, certain pension/OPEB expenses, restructuring costs and other
charges, stock- based compensation expense, goodwill impairment charges, and certain other non- recurring items. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total revenue.Management uses EBITDA, EBITDA margin, Adjusted
EBITDA and Adjusted EBITDA margin to assist it in comparing performance from period to period and as measures of operational performance. Management believes that these non-GAAP measures provide useful information for investors in evaluating
Frontier’s operational performance from period to period because they exclude depreciation and amortization expenses related to investments made in prior periods and are determined without regard to capital structure or investment
activities. By excluding capital expenditures, debt repayments and dividends, among other factors, these non-GAAP financial measures have certain shortcomings. Management compensates for these shortcomings by utilizing these
non-GAAP financial measures in conjunction with the comparable GAAP financial measures.Adjusted net income (loss) attributable to Frontier common shareholders is defined as net income (loss) attributable to Frontier common shareholders and
restructuring costs and other pension settlement costs, excludes charges, goodwill impairment charges, certain income tax items and the income tax effect of these items, and certain other non-recurring items. Adjusting for these items
allows investors to better understand and analyze Frontier’s financial performance over the periods presented.Management defines operating free cash flow, a non-GAAP measure, as net cash from operating activities less capital expenditures.
Management uses operating free cash flow to assist it in comparing liquidity from period to period and to obtain a more comprehensive view of Frontier’s core operations and ability to generate cash flow. Management believes that this non-GAAP
measure is useful to investors in evaluating cash available to service debt. This non- GAAP financial measure has certain shortcomings; it does not represent the residual cash flow available for discretionary expenditures, as items such as
taxes, pension and OPEB costs, interest expense, and debt repayments are not deducted in determining such measure. Management compensates for these shortcomings by utilizing this non-GAAP financial measure in conjunction with the comparable
GAAP financial measure.Adjusted operating expenses is defined as operating expenses adjusted to exclude depreciation and amortization, restructuring and other charges, goodwill impairment charges, certain pension/OPEB expenses, stock-based
compensation expense, and certain other non-recurring items. Investors have indicated that this non-GAAP measure is useful in evaluating Frontier’s performance.Projected GAAP financial measures are not provided herein because such figures are
not available on a forward-looking basis and reconciliations of projected non-GAAP financial measures are not provided because they could not be derived without unreasonable effort.The information in this presentation should be read in
conjunction with the financial statements and footnotes contained in Frontier’s documents filed with the U.S. Securities and Exchange Commission.
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Note regarding Classifications of Results 2 Unless otherwise indicated, the information presented herein,
including operational and financial data, non-GAAP measures, and commentary pertains to the Remaining Properties only. “Remaining Properties” comprises the 25 states Frontier currently operates in as of December 31, 2020, 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. Reconciliations for the Consolidated, Remaining Properties, and Northwest Ops financial results can be found in the
Appendix section of this presentation, Frontier’s 10-K for the year ended December 31, 2020, and Frontier’s Form 8-K containing supplemental financial information filed on March 3, 2021.
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Today’s Speakers and Agenda 1. Situation Overview 2. Operational and Financial Update Presenters Robert A.
SchriesheimDirector; Chairman of Finance Committee Sheldon BruhaChief Financial Officer Agenda Topics 2
1. Situation Overview: Transformation Status Robert A. Schriesheim,Chairman of Finance Committee
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Strategic Repositioning An Overview of the Last 21 Months Customer retention and product simplification Key
talent enhancements Other key structural improvements In June 2019, Frontier reconstituted its Board of Directors, initiating a process to better position Frontier as a leading provider of Data and Telecommunications servicesFrontier’s
ongoing transformation over the last 21 months has been underpinned by: These initiatives have resulted in significant value creation, with the market value of the unsecured debt increasing by ~92% or an aggregate value increase of ~$2.9B1
since the Restructuring Support Agreement was announced on 4/14/20 Debt reduction and Emergence Plan Approval Significant cash generation Accretive financing and tax transactions 1 3 Transformative Operational Financial
Restructuring Improvements Pivot to a data-first product strategy Extensive network investment and planning 2 1. Pricing sourced from FactSet as of 3/2/21 7
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Summary of Strategic Repositioning 1 Strategic Repositioning Highlights since June 2019Pivot to a
Data-First Product StrategyDe-emphasized unprofitable video adds and reduced video content costsCut content while maintaining strong fiber broadband performanceCompleted service capability of 1Gig offering to over 97% of Frontier-served fiber
homesAchieved six straight quarters of positive fiber broadband net addsExtensive Network Investment and PlanningCompleted 2020 Fiber-to-the-Home pilot programSuccessfully upgraded 60,000+ existing Frontier-served copper locations to
fiberThis program has provided key insights for long-term execution of the broader Modernization PlanContinuing to execute on the broader long-term Modernization PlanSuccessfully participated in RDOF, winning $371M in funding for 127K
locations across 8 states 8
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Summary of Operational Transformation 2 Key Transformational Operational Milestones since June
2019Improved Customer Retention and Product SimplificationReduced broadband churnInitiatives include soft-landing promo pricing and enhanced pre-screening processImplemented product rationalization and simplification of broadband
offeringsSignificantly limited sale of 1–3Mbps copper offeringsKey Talent EnhancementsMade key hires to lead Frontier through the next stage of its transformationCEO, Nick Jeffery (March 4th, 2021)Executive Chairman of the Board, John
Stratton (upon emergence)Head of wholesale, FP&A, digital marketing, and other key operational and strategic hiresOther Key Structural ImprovementsRetained senior enterprise consultant to drive transformation of enterprise sales force and
market strategyImproved relationships with key wholesale customers 9
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Key Operational Initiatives implemented by Frontier management led by CEO Bernie Han:Consumer - Data: Improved
Operational Key Performance Indicators, including significantly reduced YoY churn, leading to Frontier’s 6th straight quarter of positive consumer fiber broadband net adds Consumer – Video: Renegotiate contracts to lower content costs or
drop channels entirelyContent Cost per Subscriber Indexed to 1Q ‘19 Operational Turnaround KPIs Churn reduction initiatives contributed to a YoY decrease in customer churnWhile copper net adds remain negative, fiber net adds continue to be
positive, driven by:The introduction of 1G availability in Q4 ‘19Churn reduction initiativesContent costs per subscriber have decreased in recent quarters, driven by drops of high-cost content -20%Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20
Q3 '20 Q4 '20Note: Figures are for Remaining Properties -15% 10 -10% -5% 0% 5% Content Cost per Sub Indexed to 1Q ‘19
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Summary of Financial Restructuring 3 Key Financial Restructuring Milestones since June 2019Debt
Reduction & Plan ApprovalReduced debt by ~$11B and annual interest expense by ~$1B (~70%)Obtained Federal Communications Commission and state PUC approvals for Chapter 11 restructuring in 17 of 18 required states, with the one remaining
approval expected within weeksSignificant Cash Generation and RecoveryCompleted divestiture of Frontier’s Northwest operations for $1.35B in gross proceedsProceeds used to facilitate restructuring and provide for bondholder cash
distributionGenerated significant cash flow during the restructuringResulting in a $1.313B cash distribution at emergence to unsecured bondholders, ~38% higher than forecastedTotal cash recovery now represents 20.6% of current weighted
average trading values of unsecured notes (55.61) vs 15.0% according to previous estimateAccretive Financing & Tax TransactionsExecuted a series of transactions to increase capital structure flexibility and cash flow generation:Refinanced
$4.95B of secured debt in October and November, decreasing annual interest expense by $60M and extending funded debt maturities to 2027Raised $625M DIP-to-Exit RCFFacilitated the Plan of Reorganization to be consummated as a “Bruno’s
transaction,” which is expected to reduce the Company’s future income tax liabilities 1. Pricing sourced from FactSet as of 3/2/21 11
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Capitalization($ in millions) RCF coupon of L + 350 is for Exit only and matures 4 years after EmergencePlan of
Reorganization requires us to use “commercially reasonable best efforts” to raise an $850 million exit facility, which would require an incremental $225 million of commitments or funded debt on top of our existing $625 million of revolving
credit facility commitments. We are in negotiations to satisfy this obligation, which would allow us to emerge with over 1.2bn of liquidityTakeback Debt coupon to be imputed referencing yield to worst of the DIP-to-Exit 2L Notes prior to
Emergence. Analysis shows coupon of 6.00%, based on YTW as of 3/3/21Subsidiary Debt includes $100M of Secured Subsidiary debt Face Adj. Face Coupon Pre Post Maturity 4Q20 Emergence $625mm DIP-to-Exit RCF1 $ - $ - $
- L + 350 $ - $ - 4 years DIP-to-Exit Term Loan 1,250 - 1,250 L + 475 72 72 Oct-27 DIP-to-Exit 1L Secured Notes 1,150 - 1,150 5.875% 68 68 Oct-27 DIP-to-Exit 1L Secured
Notes 1,550 - 1,550 5.000% 78 78 May-28 Other Secured Debt 13 - 13 6.200% 1 1 Varies Total 1L Debt2 $3,963 $ - $3,963 $218 $218 1.4x 1.4x DIP-to-Exit 2L Notes 2L Takeback Debt3 $1,000- $ - 750 $1,000750 6.750%
TBD $68- $68 45 May-298.5 Years Total Secured Debt $4,963 $750 $5,713 $285 $330 1.8x 2.1x Subsidiary Debt4Liabilities Subject to Compromise $856 10,949 $ - (10,949) $856 7.081% $61 $61 Varies- Varies 1,027 - Varies
Total Debt $16,768 ($10,199) $6,569 $1,373 $391 6.0x 2.4x 4Q20 Emergence Annual Interest Expense Debt / LTM Adj. EBITDA Memo: FY'20 Adj. EBITDA $2,772 Significant debt and interest expense reduction, resulting in an
industry-leading leverage profile of 2.4x 12
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. A low-leveraged, flexible capital structureA rejuvenated operational platformA strategic springboard that
leverages high-return fiber modernization New leadership that drives an accountable culture The Transformation Continues… Frontier is Well-Positioned for Continued Value Creation Post-Emergence 13
2. Operational and Financial Update Sheldon Bruha,Chief Financial Officer
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Business Update Sixth consecutive quarter of positive fiber net adds Consumer customer churn of 1.67%, a YoY
improvement Consumer revenue benefits from fiber broadband improvement Resetting Wholesale customer relationships Completed build of 60K household fiber-to-the-home pilot program Key Q4 2020Highlights Adjusted EBITDAContinued strong cost
discipline $693M $50M Net LossIncludes $136M of reorganization items related to balance sheet restructuring and $72M of debt extinguishment costs related to refinancings $1,695M Total RevenueImprovements in Fiber performance Debt
refinancingDriving $60M annual interest savings $4.95B 15
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. (7) (10) 0 7 7 4 10 9 (15) (10) (5) - 5 10 15 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2
'20 Q3 '20 Q4 '20 Fiber BB Net Adds (000s) 2.7% 2.8% 2.7% 2.2% 1.5% 2.0% 1.8% 1.6% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Avg. Monthly Churn Rate Churn
remains near its 2-year-low, benefitting from operational churn initiativesFiber broadband net adds were positive for the 6th straight quarter due to the introduction of 1 Gig offering in Q4 2019 and improved operational churn
management Customer Service / Churn: Fiber Broadband Net Adds Consumer Fiber Broadband Quarterly Net Adds Consumer Fiber Broadband Avg. Monthly Churn Rate 16 Note: Figures are for Remaining Properties
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Other Operational Initiative Updates Frontier continues to execute other key operational initiatives, including
simplifying its product offering set, increasing its mix of fiber sales, and implementing price increases on new sales and the existing baseProduct rationalizationSignificantly limited new sales of 1Mbps - 3Mbps copper offeringIncreased sales
of 1Gig fiber productMix of new residential fiber broadband sales of 1Gig increased from ~5% in January 2020 to ~13% in December 2020Video StrategyContinued to lower content costs and pause of new video salesPrice increasesImplementing price
increases in Q1 ‘21 across the existing base as well as on new offers 17
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Key Financial Highlights – Consolidated1 Pre-Northwest
Transaction Mixed Post-Transaction ($ in Millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Total
Revenue $2,101 $2,067 $1,997 $1,942 $1,933 $1,801 $1,726 $1,695 Customer $2,009 $1,972 $1,906 $1,851 $1,843 $1,705 $1,627 $1,606 Subsidy & Other2 $92 $95 $91 $91 $90 $96 $99 $89 Net
Income/(Loss) ($87) ($5,317) ($345) ($162) ($186) ($181) $15 ($50) Net Cash Provided from Operating Activities $282 $575 $246 $405 $477 $473 $542 $497 Adjusted Operating
Expenses $1,228 $1,185 $1,193 $1,168 $1,150 $1,069 $1,036 $1,002 Adjusted EBITDA $873 $882 $804 $774 $783 $732 $690 $693 Adjusted EBITDA
Margin 41.6% 42.7% 40.3% 39.9% 40.5% 40.6% 40.0% 40.9% CapEx $305 $275 $318 $328 $286 $225 $314 $356 LTM Operating FCF $643 $592 $563 $282 $496 $444 $744 $808 Q4’20 net income includes $72M of retired
secured debt write-offs and$136M of reorganization itemsFully transitioned Ziply off TSA Agreement, leading to decrease in subsidy revenueLTM Operating FCF increase reflects significant interest expense savings and the stay of pre-petition
trade obligations from the Chapter 11 filing 1 Q2 2020 includes one month of data from the NW Ops, and Q3 and Q4 reflect disposal, and may not be comparable to prior periods. See appendix slides for detail on Consolidated Frontier vs.
Remaining Properties2 Includes $10M, $15M, and $5M of revenue from transition services performed for purchaser of Northwest Operations in Q2 20 through Q4 20. More detail can be found in our 2020 10-K.3 Adjusted Operating Expenses, Adjusted
EBITDA, Adjusted EBITDA Margin and LTM Operating Free Cash Flow are non-GAAP measures. See page 24 for a reconciliation of Net Income (Loss) to Adjusted EBITDA. See page 26 for a reconciliation of Operating Expenses to Adjusted Operating
Expenses. See page 28 for a reconciliation of Net Cash Provided from Operating Activities to LTM Operating Free Cash Flow. See page 3 for the definition of Adjusted EBITDA Margin. 18
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Revenue and Adj. EBITDA – Remaining Properties1 19 Data and Internet Services revenue stable vs. Q3 ‘20Voice
and video continues secular declinesConsumer revenue benefits from fiber broadband improvementCommercial trend continues due to reduced pricing and churn of low-speed productsAdjusted OpEx trends reflect ongoing cost disciplines and reduced
video content costs ($ in Millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Data & Internet Services $888 $885 $851 $822 $855 $849 $838 $834 Voice
Services $604 $582 $574 $555 $529 $509 $500 $490 Video Services $255 $248 $233 $222 $212 $197 $186 $181 Other $113 $111 $106 $108 $108 $105 $103 $101 Total Customer
Revenue $1,860 $1,826 $1,764 $1,707 $1,704 $1,660 $1,627 $1,606 Consumer $996 $969 $943 $923 $894 $874 $859 $857 Commercial $864 $857 $821 $784 $810 $786 $768 $749 Total Customer
Revenue $1,860 $1,826 $1,764 $1,707 $1,704 $1,660 $1,627 $1,606 Subsidy & Other Revenue1 $86 $89 $85 $85 $84 $94 $99 $89 Total Revenue $1,946 $1,915 $1,849 $1,792 $1,788 $1,754 $1,726 $1,695 Adjusted Oper.
Expenses2 $1,175 $1,134 $1,144 $1,119 $1,102 $1,051 $1,036 $1,002 Adjusted EBITDA2 $771 $781 $705 $673 $686 $703 $690 $693 Adjusted EBITDA Margin 39.6% 40.8% 38.1% 37.6% 38.4% 40.1% 40.0% 40.9% 1 Includes $10M,
$15M, and $5M of revenue from transition services performed for purchaser of Northwest Operations in Q2 20 through Q4 20. More detail can be found in our 2020 10-K.2 Adjusted Operating Expenses and Adjusted EBITDA are non-GAAP measures. See
page 25 for a reconciliation of Net Income (Loss) to Adjusted EBITDA. See page 27 for a reconciliation of Operating Expenses to Adjusted Operating Expenses.
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Capital Spending Update Projects Completed & Underway 60k+ FTTH builds completed in 2020 with
overallspend less than the original ~$50M estimate RDOF: Won over $37M of annual government support (for 10 years) for 127K locations across CA, FL, TX, CT, WV, IL, NY, and PA CAF II: ~653K locations enabled to-date with CAF II
broadband Built fiber to over 44K greenfield locations in 2020 (primarily new housing developments within our footprint) on top of over 30K built in FY 2019 Fixed wireless broadband builds completed toreach 55K HH in CAF areas as of
12/31/20 CapEx Spend1$356M in Q4 2020$1,181M in 2020 1 Capital expenditures are reported on a Consolidated basis and are not adjusted to exclude Northwest Ops. 20
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. ($ in Millions) FY 2020 B/(W) vs. Disclosure
Statement1 Actuals $ % Consumer $3,484 $41 1.2 Commercial $3,113 $21 0.7 Subsidy & Other Revenue2 $366 ($18) (4.8) Total Revenue $6,963 $44 0.6 Adj. Operating
Expenses3 $4,191 $93 2.2 Adjusted EBITDA3 $2,772 $137 4.9 21 FY 2020 Actuals vs. Disclosure Statement – Remaining Properties Revenue $44M favorable, primarily driven by lower consumer churn and favorable Wholesale circuit
revenueAdj. Operating Expenses $93M favorable, primarily driven by lower video content COGS and favorable consumer customer acquisition and variable expense trends 1 Represents the 2020 Base Case as presented in our Disclosure Statement
filed with the United States Bankruptcy Court for the Southern District of New York, Case No. 20-22476, on June 17, 2020.2 Includes revenue from transition services performed for purchaser of NW Ops as described in our 10-K for the year ended
December 31, 2020.3 Adjusted Operating Expenses and Adjusted EBITDA are non-GAAP measures. See page 27 for a reconciliation of Operating Expenses to Adjusted Operating Expenses, and page 25 for a reconciliation of net income (loss) to
Adjusted EBITDA.
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Capital Structure Update In Q4, refinanced $4.95B of 1L and 2L debt and amended, extended and increased RCF
commitmentsReduced annual interest expense by $60MCleared funded debt maturities through 2027Increased liquidity via $165M of additional RCF commitments (total RCF now $625M)At emergence, will issue $750M of takeback debt to existing
unsecured bondholdersIn the form of 2L Notes with terms substantially similar to the existing DIP-to-Exit 2L Notes, and a maturity 8.5 years from EmergenceCoupon will be determined at Emergence, based on prevailing market ratesPlan of
Reorganization requires “commercially reasonable best efforts” to raise an $850M exit facility, which would require an incremental $225M of commitments or funded debt on top of existing $625M RCF. We are in negotiations to satisfy this
obligationMaturity Schedule at Emergence1 1,250 1,550 1,150 1,000 750 200 506 50 $625 $ - $2,600 $2,056 $1,800 $14 $100 2026 2029 $ - $ - $ -2021 2022 2023$625mm DIP-to-Exit
RCF6.750% DIP-to-Exit 2L Notes $ -2024 2025DIP-to-Exit Term LoanTakeback Debt 2027 20285.000% DIP-to-Exit 1L NotesSubsidiary Debt 2030 20315.875% DIP-to-Exit 1L NotesIDRB ($ in millions) 22 No funded debt maturities until
2027 Note: Maturity schedule excludes mandatory amortization1. Excludes incremental $225M the Company is currently evaluating as contemplated in the Plan of Reorganization
5. Appendix
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document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. ($ in Millions) Q4 2019 FY 2019 Q1
2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Net Income (Loss) (162) (5,911) (186) (181) 15 (50) (402) Add back (Subtract): Income Tax Expense (Benefit) (74) (611) (23) (57) (11) 7 (84) Interest
Expense 391 1,535 383 160 121 98 762 Investment and Other (Income) Loss, Net 9 37 (5) 20 14 14 43 Pension Settlement Costs 57 57 103 56 - - 159 Loss on Extinguishment of Debt - 20 - - - 72 72 Reorganization
Items, Net - - - 142 131 136 409 Operating Income (Loss) 221 (4,873) 272 140 270 277 959 Depreciation and Amortization 420 1,780 415 397 392 394 1,598 EBITDA $641 ($3,093) $687 $537 $662 $671 $2,557 Add
back: Pension/OPEB Expense 19 78 23 23 24 20 90 Restructuring Costs and Other Charges 82 168 48 36 3 - 87 Stock-based Compensation Expense 5 15 1 1 1 - 3 Storm Related Insurance
Proceeds (5) (6) - (1) - - (1) Loss on disposal of Northwest Operations 32 446 24 136 - 2 162 Goodwill Impairment - 5,725 - - - - - Adjusted EBITDA $774 $3,333 $783 $732 $690 $693 $2,898 EBITDA
Margin 33.0% (38.2)% 35.6% 29.8% 38.4% 39.6% 35.7% Adjusted EBITDA Margin 39.9% 41.1% 40.5% 40.6% 40.0% 40.9% 40.5% 24 Non-GAAP Financial Measures - Consolidated
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. ($ in
Millions) Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Net Income (Loss) (263) (6,252) (283) (210) 15 (50) (528) Add back (Subtract): Income Tax Expense
(Benefit) (74) (611) (23) (57) (11) 7 (84) Interest Expense 391 1,535 383 160 121 98 762 Investment and Other (Income) Loss, Net 9 37 (5) 20 14 14 43 Pension Settlement Costs 57 57 103 56 - - 159 Loss on
Extinguishment of Debt - 20 - - - 72 72 Reorganization Items, Net - - - 142 131 136 409 Operating Income (Loss) 120 (5,214) 175 111 270 277 833 Depreciation and
Amortization 420 1,720 415 397 392 394 1,598 EBITDA $540 ($3,494) $590 $508 $662 $671 $2,431 Add back: Pension/OPEB Expense 19 78 23 23 24 20 90 Restructuring Costs and Other
Charges 82 166 48 36 3 - 87 Stock-based Compensation Expense 5 15 1 1 1 - 3 Storm Related Insurance Proceeds (5) (6) - (1) - - (1) Loss on disposal of Northwest Operations 32 446 24 136 - 2 162 Goodwill
Impairment - 5,725 - - - - - Adjusted EBITDA $673 $2,930 $686 $703 $690 $693 $2,772 EBITDA Margin 30.1% (46.6)% 33.0% 29.0% 38.4% 39.6% 34.9% Adjusted EBITDA
Margin 37.6% 39.1% 38.4% 40.1% 40.0% 40.9% 39.8% 25 Non-GAAP Financial Measures – Remaining Properties
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Non-GAAP Financial Measures – Consolidated 26 ($ in Millions) Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3 2020 Q4
2020 FY 2020 Total Operating Expenses $1,721 $12,980 $1,661 $1,661 $1,456 $1,418 $6,196 Subtract: Depreciation and Amortization 420 1,780 415 397 392 394 $1,598 Goodwill
Impairment - 5,725 - - - - - Loss on disposal of Northwest Operations 32 446 24 136 - 2 162 Pension/OPEB Expense 19 78 23 23 24 20 90 Restructuring Costs and Other Charges 82 168 48 36 3 - 87 Stock-based
Compensation Expense 5 15 1 1 1 - 3 Storm Related Insurance Proceeds (5) (6) - (1) - - (1) Adjusted Operating Expenses $1,168 $4,774 $1,150 $1,069 $1,036 $1,002 $4,257
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Non-GAAP Financial Measures – Remaining Properties 27 ($ in Millions) Q4 2019 FY 2019 Q1 2020 Q2 2020 Q3
2020 Q4 2020 FY 2020 Total Operating Expenses $1,672 $12,716 $1,613 $1,643 $1,456 $1,418 $6,130 Subtract: Depreciation and Amortization 420 1,720 415 397 392 394 1,598 Goodwill
Impairment - 5,725 - - - - - Loss on disposal of Northwest Operations 32 446 24 136 - 2 162 Pension/OPEB Expense 19 78 23 23 24 20 90 Restructuring Costs and Other Charges 82 166 48 36 3 - 87 Stock-based
Compensation Expense 5 15 1 1 1 - 3 Storm Related Insurance Proceeds (5) (6) - (1) - - (1) Adjusted Operating Expenses $1,119 $4,572 $1,102 $1,051 $1,036 $1,002 $4,191
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Non-GAAP Financial Measures – Consolidated 28 Quarterly Results ($ in Millions) Q1 2019 Q2
2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net Cash from Operating Activities $282 $575 $246 $405 $477 $473 $542 $497 Capital Expenditures (305) (275) (318) (328) (286) (225) (314) (356) Operating Free Cash
Flow ($23) $300 ($72) $77 $191 $248 $228 $141 Trailing Four Quarter Results ($ in Millions) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Net Cash from Operating
Activities $1,843 $1,746 $1,706 $1,508 $1,703 $1,601 $1,897 $1,989 Capital Expenditures (1,200) (1,154) (1,143) (1,226) (1,207) (1,157) (1,153) (1,181) Operating Free Cash
Flow $643 $592 $563 $282 $496 $444 $744 $808
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Consumer Unit Trends – Remaining
Properties (43) (49) (33) (23) (17) (21) (31) (7)(19) (10) 0 4 7 7 (46) (43) (38) (36) (36) (35) (41) (33) Video net losses reflect churn from channel drops and linear video industry decline Consumer Copper
Broadband Consumer Fiber Broadband Consumer Video excl. Dish Net Adds (000s) Q1 Q2 2019 Q4 Q2 Q3 2020 Q110 Continued positive fiber net adds reflects competitivve speed offerings across gigabit-capable
network Copper losses increased QoQ partially due to significantly limiting sale of 1–3Mbps copper offerings Q3 Q49 29
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. 2.03% 2.18% 2.27% 1.95% 1.84% 1.63% 1.81% 1.67% Consumer Customer
Churn Customer Churn Trends – Remaining Properties Continued YoY lower churn in both fiber and copper markets benefitting from operational churn initiatives 2019 Q4 2020 churn lower YoY and sequentiallydue promo roll-off
initiatives, among others 2020 Q1 Q3 Q2 Q4 Q2 Q1 Q3 Q4 30
© Frontier Communications® This document contains proprietary and/or confidential information.This
document is intended only for the party to whom it is presented and copying and re-distribution are strictly prohibited. Consumer ARPC – Remaining Properties 90.42 89.82 89.45
89.45 87.88 86.68 86.19 87.00 Consumer Customers ARPC Q4 2020 Consumer ARPC sequential increase due to base shift to higher broadband speed offerings, offset by a decline in video
subscribers 2019 Q1 Q3 Q2 Q4 Q1 2020 Q2 Q4 3.6M 3.6M 3.5M 3.4M 3.4M 3.3M 3.3M 3.3M Q3 31