2009 Company Overview Presentation
- 1. PAETEC: America’s Premier Alternative to Incumbent Local Carriers
- 2. PAETEC’s mission is to be the most customer and employee-oriented communications provider. “ PAETEC rises above the communications service provider pack.” Forrester Research, May 2008
- 3. Agenda Financial Highlights Company Highlights PAETEC’s Network Industry Recognition Caring Culture Open Communication Unmatched Service Personalized Solutions The PAETEC Difference
- 4. Financial Highlights NASDAQ: PAET Revenue – $1.6B * Adjusted EBITDA – $240M * Free Cash Flow – Over $100M * + * Projected Pro Forma 2008 + Adjusted EBITDA Less CAPEX
- 5. Company Highlights Serve 82 of top 100 U.S. MSAs in ‘08 4.47 million access line equivalents 4,000 employees / customer advocates ISO 9001:2000 certified Headquartered in Rochester, NY Employee-led “Green Team” Data Center – Conshohocken, PA 77 Voice Switches 39 Soft Switches 53 Backbone Routers 3 Network Operations Centers 2 Class-A Data Centers 17,000 Route Miles of Fiber
- 7. Industry Recognition 2008: Received Cisco Customer Satisfaction Excellence Recognition Based on Cisco customer surveys 2007: Ranked #66 of Top 125 International Training Organizations Training magazine 2007: Named Most Innovative Competitive Carrier New Paradigm Resources Group 2007, 2006, 2005: Named Corporate Stewardship Finalist U.S. Chamber of Commerce Center for Corporate Citizenship 2005: Received American Business Ethics Award Society of Financial Services Professionals
- 8. Corporate Values Caring Culture Open Communications Unmatched Service Personalized Solutions
- 10. Community Connections PAETEC strives to live up to our Corporate Value: Caring Culture PAETEC leaders are allocated funds to support charities of their departments’ choice, including: American Heart Association American Red Cross Habitat for Humanity Make-A-Wish Foundation United Way All PAETEC senior officers serve on the board of a local charity The majority of our employees are active board members / volunteers in more than 300 charities nationwide
- 11. Open Communication 2007 Customer Advisory Board Meeting
- 12. We Listen to Our Customers Discuss business challenges Build the foundation for PAETEC’s product and service investments through customer feedback Access PAETEC senior executives Network with peers Customer Advisory Board Program 80+ regional forums for knowledge sharing and relationship building between PAETEC and our customers “ I have been a CAB member for the past three years and value the program completely. The LEGO Group truly benefits from the products, services, and actions that result from CABs.” Joanne Zanetti LEGO Systems, Inc.
- 14. Unmatched Customer Care 65 dedicated Customer Care representatives 244 highly trained NOC technicians PAETEC strives to answer incoming calls by a live person in 20 seconds or less Network Operations Center – Charlotte, NC Network Operations Center – Rochester, NY Network Operations Center – Cedar Rapids, IA
- 15. Industry-Leading Customer Satisfaction Net Promoter Score (NPS) measures highly satisfied customers PAETEC adopted the NPS methodology to measure the satisfaction of our customer base Data for non-PAETEC companies was gathered from the “Net Promoter Telecommunications Industry Report of 33 Telecommunications Companies – June 2006,” completed by Satmetrix Systems. 0 PAETEC 22.7 BellSouth 16.08 Verizon 14.48 -5.7 SBC -8.45 AT&T -11.01 Qwest -28.93 Sprint Telecom NPS Benchmarks
- 17. Industry Focus Commonwealth of Massachusetts Miami Dade County State of New York State of South Carolina Government Bank of America Citigroup HSBC Bank Wachovia Securities Financial Services American Breast Cancer Foundation Dartmouth Hitchcock Medical Center Lifespan MedStar Health Healthcare Hyatt Starwood Hotels & Resorts Tempus Resorts The Palms South Beach Hotel Hospitality Boston University Cornell University Georgetown University Stanford University Higher Education Bond, Schoeneck & King Cadwalader, Wickersham & Taft Haylor, Freyer & Coon Stantec Professional Services Bobcat of Central Florida iPARTY Kinney Drugs Planet Hollywood Retail
- 18. Product Matrix (Communications Solutions) Core Products Value-Added Services Data Equipment Applications Data Center Voice Data MPLS VPN Private Line Fixed Wireless Managed Router Support Access Ethernet Local Loop Dedicated Internet Access Security Hosted E-mail Security Hosted Web Security Hosted Firewall Managed CPE Firewall IP PBX Allworx Avaya Cisco Nortel Routers & Integrated Access Devices ADTRAN Cisco Consulting Network Engineering Consultation Hardware Maintenance Support Financing Equipment for Services Equipment Rental Voice Local Long Distance Toll-Free Advanced Toll-Free Business Voice Lines Direct Trunk Overflow (DTO) Managed Fraud Protection VoIP Dynamic IP Hosted IP Telephony IP Trader Voice Conferencing Audio Conferencing Web Conferencing Consulting Network Diversity Engineering Toll-Free Routing Consultation Colocation Services Data Backup & Recovery Dedicated Hosted Server Shared Web Hosting Licensed PINNACLE Managed PINNACLE Hosted PINNACLE PINNACLE Professional Services Hosted Broadcast Notification Software for Services Click to PAETEC Solutions
- 19. PAETEC Solutions Core Products Value-Added Services Data Equipment Applications Data Center Voice Communications All Data All Equipment All Voice Security MPLS VPN Hosted E-mail Security Hosted Web Security Hosted Firewall Managed CPE Firewall Network Engineering Consultation Managed Fraud Protection Managed Services Managed Router Support Managed CPE Firewall Hosted Firewall Colocation Services Data Backup & Recovery Dedicated Hosted Server Shared Web Hosting Hosted IP Telephony Managed Fraud Protection Financing Equipment for Services Equipment Rental Business Continuity MPLS VPN Fixed Wireless Private Line Network Engineering Consultation Hardware Maintenance Support Colocation Services Data Backup & Recovery Dedicated Hosted Server Dynamic IP Direct Trunk Overflow Network Diversity Engineering Toll-Free Routing Consultation Advanced Toll-Free Hosted Broadcast Notification Business Intelligence Managed Fraud Protection Hosted Broadcast Notification Managed PINNACLE All Data Center Licensed PINNACLE Managed PINNACLE Hosted PINNACLE PINNACLE Professional Services Software for Services All Applications Solutions
- 20. The PAETEC Difference National network presence Broad product portfolio Personalized solutions Trusted business partner Unmatched customer service