Notes:Use this presentation to introduce XO Communications to existing customers as well as prospects. This presentation communicates XO Communications’ capabilities and our business strategy with a focus on delivering a superior customer experience. The presentation is designed to communicate the foundation of our brand. We differentiate ourselves by providing a superior customer experience that is based on the passionate commitment of our employees, our IP services expertise and the proven, reliable performance of our advanced network.
Purpose:This slide provides a high level overview of XO.Notes:XO Communications is a leading communications company headquartered in Herndon, Virginia (a suburb of Washington, DC). We offer a comprehensive portfolio of IP communications, managed network and hosted IT services over one of the most advanced networks in the industry. Our extensive network reach enables us to most major cities across the United States and can connect your business to more than 50 countries around the world. XO is a large company, but not too large. We have approximately $1.5 billion in revenue and more than 3,200 employees nationwide. We believe our size means less bureaucracy, which means we can act and make decisions faster to support our customers better.We are focused only on businesses and wholesale customers. We feel that many of our larger competitors don’t have that focus because they have to compete in many markets, like residential, wireless, small business, medium-business, enterprise and wholesale markets. Our customers include many of the most recognized brands, and more than 50% of the Fortune 500 has entrusted their mission-critical communications and networks to XO. We support companies across many major verticals, including financial services, healthcare, media & entertainment, retail and telecommunications industries.This success is all possible because of what everyone at XO is most passionate about - providing the best customer experience in the industry.
Purpose:This slide is meant to introduce XO’s services and how our service categories are mapped simply to meet customers’ key communications, network and IT services needs.Notes:Our comprehensive portfolio of data and IP-based services is designed to meet your key business needs, including:Connecting your key operations and locations, whether they are across town, across the country or around the globeManaging growth through services that can scale easilyAchieving cost savings with services that optimize network performance or hosted solutionsSimplifying the deployment and management of voice and network infrastructure through converged solutionsAttracting and retaining customers through robust contact center services that help your customers get the information and support they needSecuring you key data and information from outside threatsOur services portfolio is mapped your key needs and consists of:XO Connect: these are services that range from Internet connectivity to intelligent network servicesXO Unify: from VoIP and SIP trunking to hosted PBX and contact center serivcesXO Compute: cloud computing and web hostingXO Accelerate: services that help accelerate the performance of your applications, network and web siteXO Secure: services that secure your network and data
Purpose:This slide is meant to provide a high level overview of the XO network, including our IP network and metro/long haul transport networks.Notes:XO operates of one of the largest, most advanced IP networks in the world. In the U.S., we have #3 IP network; globally, our IP network is among the top 13. (Source: Renesys)Our network has extensive metro, nationwide and global coverage. Our network assets and coverage include:85 major metropolitan marketsService delivery to 50 countries on five continents19,000 route mile nationwide long haul fiber networkNearly one million metro fibers milesAnother key capability of our network is that we can connect your locations using a wide range of access technologies, from fiber and Ethernet over copper to fixed wireless.
Purpose:This slide provides an overview of the XO Business Center and online tools for customers to manage their accounts anytime, anywhere.
Purpose:This slide presents information on how XO is ranked in the industry.
Purpose:This slide shows how Gartner has ranked XO as the #1 alternative to the large, incumbent telecommunications companies.Notes:Gartner, which is one of the most respected research and consulting firms, recently (Dec 2011) rated XO the top competitive services provider; only AT&T, Verizon and Sprint were ranked ahead of XO. XO was ranked ahead of CenturyLink, Level 3, and tw telecom as well as the former Global Crossing and Paetec.This Gartner report (“Critical Capabilities for U.S. Telecom Services”) evaluated providers based on seven categories. XO was the top competitive service provider in terms of:Our overall ability to meet the communications and networking needs of businessesProduct portfolioOur ability to meet the communications and networking needs of mid-sized businessesOur ability to meet communications and networking of large businesses.This is a great endorsement of XO’s ability to support the needs of your company.
Purpose:This slide presents an overview of XO’s financial performance.Notes:In 2011, XO generated revenues of $1.53 billion. Our total revenue grew year over year, and revenue from our data and IP services grew by more than 11%.With $235 million in capital expenditures, this demonstrates that we are investing significant amounts of money in expanding our network capabilities, new services and better systems – all to better serve our customers.We have a strong balance sheet, which is demonstrated by how little debt we have as a company. Many of our competitors of similar size have billions of dollars in debt. This means we have the ability to invest our capital in better serving our customers vs. paying off debt.Our financials demonstrate that XO is focused on next generation data and IP services. We generate a majority of our sales and revenues from these services. This is important because, unlike the large telecom companies that still generate and must protect their legacy TDM services revenue, XO is focused on offering you new and more innovative services that have a greater potential to help you improve performance and control costs.
About XO Communications• Leading nationwide provider of data and IP • Focus on business, large enterprise and services wholesale customers• Comprehensive portfolio of • Customers include more than 50% of the communications, managed network and IT Fortune 500 infrastructure services • Leading brands across major industries• Headquartered in Herndon, VA • Major cable, content, mobile wireless and• More than 3,200 employees domestic/global telecommunications• Annual revenues of more than $1.5B companies Our Customers Large Enterprise Mid-Market SMB Wholesale Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 2
Comprehensive Services Portfolio Robust Services with Simple Pricing to Meet Your Key Communications, Networking and IT Infrastructure NeedsInternet connectivity and Voice, collaboration and Cloud computing, hosting Faster application and Network security andintelligent networks. communications. and IT services. network performance. data protection.Internet Access VoIP Hosted Exchange Applications Network SecurityEthernet Services SIP Trunking Web Hosting Performance Data Backup ManagementMPLS IP-VPN Hosted PBX Managed Servers WAN OptimizationVPLS Web/Audio Virtual Machines Conferencing Content DeliveryPrivate Line Storage NetworksWavelength Contact Center / IVRColocationFixed Wireless Access Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 3
The XO NetworkOne of the Industry’s Largest and Most Advanced IP NetworksExtensive Coverage• 85 major metropolitan markets across United States• Global service delivery to 50+ countries on 5 continents• 3,300 on-net buildings• Ethernet access to hundreds of thousands business locationsRobust Assets• Tier 1 IP network• Built using advanced IP and optical technology from Ciena, Cisco, Infinera and Juniper Networks• 19,000 route mile inter-city miles• 1 million metro fiber miles• 50+ colocation facilities• Fixed wireless spectrum in 80 major metropolitan markets Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 4
XO Customer PortalsOnline Tools to Manage Your Account Anytime, AnywhereEasy Account Management & Billing• View, download and analyze bills and call detail reports• Pay bills online via credit card or debit from your bank account• Set up Autopay so bill payments are automatically deducted each month• Change billing address online• Sign up for paperless billing and email payment reminders• Designate four account access levels (including Master Administrator)24/7 Customer Care• Initiate trouble tickets online 24/7• Email requests or issues directly to a Customer Care agent• Review current trouble ticket status or get notified by email• Sign up to receive network outage and proactive maintenance notificationsOnline Service Management• Configure features for your VoIP servicesNetwork Visibility & Statistics• Monitor performance on each Internet access circuit Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 5
A Recognized Data & IP Services LeaderBy Top Analyst and Research Firms#1 Business VoIP & SIP Trunking Provider• More than 1.3 million business VoIP end users. Recognized by Frost & Sullivan in 2010 and 2011 as the leading VoIP and SIP trunking provider (2011 North American Competitive Strategy Leadership Award for VoIP Access and SIP Trunking).Among Top 5 U.S. Business Ethernet Services Providers• Ranked #5 U.S business Ethernet provider by Vertical Systems in terms of Ethernet port market share (Year-End 2011 U.S. Business Ethernet LEADERBOARD).Among Top 5 U.S Business Internet Service Providers• Recognized by Frost & Sullivan in 2011 has having the fastest growth rate for business Dedicated Internet Access services (2011 North American Competitive Strategy Leadership Award for Retail DIA Services) and ranked #5 in terms of market share by revenue.The Leading Competitive Services Provider (Gartner)• In Gartner’s Critical Capabilities for U.S. Telecom Services report, XO is the highest ranked competitive provider, ahead of CenturyLink, Level 3 and tw telecom, in terms of our product portfolio and capabilities to support mid-size and large businesses.• The 2011 Gartner Magic Quadrant highlights that has XO has made positive strides in becoming a “full service enterprise carrier” and has “one of the industrys most straightforward pricing models for IP services, especially when considering MPLS and SIP services.” Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 6
A Trusted, High-Value Provider of IP & Data ServicesGartner Ranks XO as the #1 Competitive Services Provider to Support theCritical Needs of Mid-Size and Large Enterprises Gartner, Critical Capabilities for U.S. Telecom Services, December 6, 2011 Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 7
XO Financials Focus on Data & IP Services Revenue $1.53 billion Revenue EBITDA $189 million Data & IP 35% Services 65% Legacy TDM Services Capex $235 million Sales Cash Balance $63 million 10% Data & IP ServicesLong-Term Debt $60 million 90% Legacy TDM Services All financial data is for FY 2011 Copyright 2012. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications. 8