Strategic Financial Objectives T Financial Operational Objectives Strategic
Strategic & Financial Objectives (T) Financial / Operational Objectives Strategic Objectives § Optimize capital expenditures between wireline (spectrum, small cells) § Achieve share price appreciation which has remained largely stagnant and wireline (fiber network) and other (satellite, content) § Fund capital expenditures of ~$140 bn planned over 2016 -2020 while § Position business model to achieve synergies (content licensing, managing equity dilution and debt levels bundling) while adapting to market and technology trends (Internet TV) § Retain financial capacity for opportunistic M&A acquisitions including § Maintain strong wireless market position by providing affordable reliable further emerging markets and spectrum purchases high-speed and high-capacity value proposition § Maintain dividends per share (2015 is 32 nd consecutive year that AT&T § Grow wireline market position through fiber network rollout and has raised dividends although largely debt-funded) leveraging Direc. TV content licensing deals § Achieve management guidance to bring Net Debt / EBITDA from 2. 28 x § Repeat US mobile internet successes worldwide, starting with Mexico (15 Q 3) to 1. 8 x long-run target by 2018 (~$25 bn in repayment) and leveraging Direc. TV’s Latin America subscriber base § Successfully integrate DIRECTV acquisition, including achieving $2. 5 bn § Provideo content on every screen including traditional pay TV, over- content and cost synergies by 2018 the-top internet streaming and mobile video § Meet customer demand with $140 bn capex on building premier network § Continued focus on wireline business with new IP and fibre-optic networks over 2009 -2014 period; focus moving forward will be on deployment Corporate Finance Transactions SBC Communications acquires AT&T ($26 B) (consolidation, large-scale) Acquisition of spectrum from Aloha Partners, L. P. ($2. 5 B) (consolidation, mid-scale) Acquisition of Centennial Communications Corp. ($2. 9 B) Acquisition of Grupo Iusacell ($2. 58 B) (consolidation, mid-scale) 2005 2006 2007 2008 2009 2010 2011 2012 (telecom/satellite TV) (consolidation, mid-scale) 2017 Copyright © NIBCLive. com – Not for Redistribution 2014 (consolidation, large-scale) 2015 Acquisition of DIRECTV ($70. 3 B) Acquisition of Leap Wireless International Inc. ($4. 9 B) Acquisition of Dobson Communications Corporation ($5. 1 B) Acquisition of Bell. South Corporation ($9. 7 B) 2013 (consolidation, mid-scale)
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