Filed by AT&T Corp.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: AT&T Corp.
Commission File No. 001-01105
On December 20, 2001 AT&T distributed the following information:
[AT&T Comcast Corporation Logo]
--------------------------------------------------------------------------------
Investor Presentation
December 20, 2001
Safe Harbor
--------------------------------------------------------------------------------
Caution Concerning Forward-Looking Statements
This presentation contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. In some cases, you can
identify those so-called "forward-looking statements" by words such as "may,"
"will," "should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential," or "continue," or the negative of those words and other
comparable words. AT&T Corp ("AT&T") and Comcast Corporation ("Comcast") wish to
take advantage of the "safe harbor" provided for by the Private Securities
Litigation Reform Act of 1995 and you are cautioned that actual events or
results may differ materially from the expectations expressed in such forward-
looking statements as a result of various factors, including risks and
uncertainties, many of which are beyond the control of AT&T and Comcast. Factors
that could cause actual results to differ materially include, but are not
limited to (1) the businesses of Comcast and AT&T Broadband ("AT&T Broadband")
may not be integrated successfully or such integration may be more difficult,
time-consuming or costly than expected; (2) expected combination benefits from
the transaction may not be fully realized or realized within the expected time
frame; (3) revenues following the transaction may be lower than expected; (4)
operating costs, customer loss and business disruption, including, without
limitation, difficulties in maintaining relationships with employees, customers,
clients or suppliers, may be greater than expected following the transaction;
(5) the regulatory approvals required for the transaction may not be obtained on
the proposed terms or on the anticipated schedule; (6) the effects of
legislative and regulatory changes; (7) the potential for increased competition;
(8) technological changes; (9) the need to generate substantial growth in the
subscriber base by successfully launching, marketing and providing services in
identified markets; (10) pricing pressures which could affect demand for
Comcast's services; (11) AT&T and Comcast's ability to expand its distribution;
(12) changes in labor, programming, equipment and capital costs; (13) AT&T and
Comcast's continued ability to create or acquire programming and products that
customers will find attractive; (14) future acquisitions, strategic partnerships
and divestitures; (15) general business and economic conditions; and (16) other
risks described from time to time in AT&T and Comcast's periodic reports filed
with the Securities and Exchange Commission.
[AT&T Comcast Corporation Logo]
1
Safe Harbor
--------------------------------------------------------------------------------
Additional Information and Where to Find it
In connection with the proposed merger, AT&T and Comcast will file a joint proxy
statement/prospectus with the Securities and Exchange Commission. INVESTORS AND
SECURITY HOLDERS ARE ADVISED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS WHEN
IT BECOMES AVAILABLE, BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Investors
and security holders may obtain a free copy of the joint proxy
statement/prospectus (when available) and other documents filed by AT&T and
Comcast with the Commission at the Commission's web site at http://www.sec.gov.
Free copies of the joint proxy statement/prospectus, once available, and each
company's other filings with the Commission may also be obtained from the
respective companies. Free copies of AT&T's filings may be obtained by directing
a request to AT&T Corp., 295 North Maple Avenue, Basking Ridge NJ 07920. Free
copies of Comcast's filings may be obtained by directing a request to Comcast,
1500 Market Street, Philadelphia PA 19102.
Participants in the Solicitation
AT&T, Comcast and their respective directors, executive officers and other
members of their management and employees may be soliciting proxies from their
respective stockholders in favor of the merger. Information concerning persons
who may be considered participants in the solicitation of AT&T's and Comcast's
stockholders under the rules of the Commission is set forth in public filings
filed by AT&T and Comcast with the Commission and will be set forth in the Joint
Proxy Statement/Prospectus when it is filed with the Commission.
[AT&T Comcast Corporation Logo]
2
--------------------------------------------------------------------------------
REALIZATION OF THE BROADBAND VISION
--------------------------------------------------------------------------------
MIKE ARMSTRONG
CHAIRMAN AND CEO
AT&T
Realization of the Broadband Vision
--------------------------------------------------------------------------------
[AT&T Broadband Logo] [Comcast Logo]
\ /
\ /
\ /
\ /
\ /
[AT&T Comcast Corporation Logo]
*More services to more people, more quickly
*Maximizes shareholder value
--------------------------------------------------------------------
| Creates one of the most powerful communications |
| media and entertainment companies in the world |
--------------------------------------------------------------------
[AT&T Comcast Corporation Logo]
4
Rationale for AT&T Restructuring
--------------------------------------------------------------------------------
Combination of AT&T Broadband and Comcast furthers the AT&T restructuring plan
* Financial strength to realize growth
opportunities AT&T Corp
|
* Greater transparency of results |
|
* Separate currencies that track - - - - - |
individual businesses | |
[AT&T [AT&T- - - [AT&T [AT&T
* Direct stock-based reward system Broadband Business Consumer Wireless
for employees logo] logo] logo] logo]
Asset Asset Tracker Asset
* Appeals to distinct sets of investors
56% 100% 100%
---------------------------------------------------------------------
| Accelerates execution of the multi-product broadband strategy |
---------------------------------------------------------------------
[AT&T Comcast Corporation Logo]
5
Strength of AT&T Communications Services
--------------------------------------------------------------------------------
--------------- ---------------
|AT&T Business| |AT&T Consumer|
--------------- ---------------
*4M+ customers *~60M customers
*$14B growth businesses base *Leader in long distance
(Data/IP, Local) voice
*Leader in enterprise customer *Developing integrated
relationships service offerings
---------------------------------------
| [AT&T Communications Services Logo] |
| Revenues: $44.2B |
| EBITDA: $14.7B |
---------------------------------------
--------------------------------------------------------------------
| AT&T Communications Services is an industry leader |
--------------------------------------------------------------------
Note: LTM data as of September 30, 2001. EBITDA excludes other income,
pretax equity earnings (losses), and asset impairment charges.
[AT&T Comcast Corporation Logo]
6
Realization of the Broadband Vision
--------------------------------------------------------------------------------
[AT&T Comcast Corporation Logo] Revenues: $18.0B
EBITDA: $4.6B
*38M homes passed, with 22M subscribers
*Potential for scaling new and innovative products and services
to consumers
*Best value proposition to the consumer
*Experienced management and employees
*Projected EBITDA growth approaching 20%
*Financial strength and flexibility
-------------------------------------------------------------------
| Merger creates the leading entertainment, communications |
| and information company |
-------------------------------------------------------------------
Note: Financial data for AT&T Broadband based on 9 months annualized as of
September 30, 2001. Financial data for Comcast represents LTM as of September
30, 2001. EBITDA excludes other income, pretax equity earnings (losses), and
asset impairment charges.
[AT&T Comcast Corporation Logo]
7
Transaction Summary
--------------------------------------------------------------------------------
* Merger between Comcast and AT&T Broadband
* Tax-free spin-off to shareholders
* Values AT&T Broadband at $72 billion, implying $4,500 per sub
* Microsoft converting $5 billion of QUIPS for up to 115 million
AT&T Comcast Corp shares
* AT&T shareholders will receive approximately 0.34 of AT&T Comcast Corp Class A
shares for each share of AT&T (subject to adjustment)
* AT&T shareholders will own 56% of the economics and 66%
of the vote of the new company
(1) Value includes TWE and other non core cable assets.
(2) Approximately 1.235B Comcast shares based on current shares outstanding.
[AT&T Comcast Corporation Logo]
8
Transaction Summary
--------------------------------------------------------------------------------
* Company Name: AT&T Comcast Corp
* "Best of both teams" management approach
* Five Board members from each company plus 2 independent
* Executive transition team led by proven experts selected
from both companies
* Headquarters: Philadelphia, with executive offices in New York area
* Well positioned for regulatory approvals
* Closing expected by year-end 2002
[AT&T Comcast Corporation Logo]
9
Transaction Summary
--------------------------------------------------------------------------------
[Bar Graph Depicting Equity Capitalization ($B)]
AOL Time Warner $165
AT&T/Comcast (1) $86
Viacom $79
Disney $44
EchoStar/Hughes $35
(pending)
News Corp. $33
--------------------------------------------------------------------
| AT&T Comcast Corp: A "must own" large-cap growth stock |
--------------------------------------------------------------------
Note: (1) Equity values based on 20 day trading average ending 12/18/2001.
AT&T Comcast Corp based on pro forma value implied by Comcast price.
Value reflects conversion of Microsoft QUIPS for up to 115 million
AT&T Comcast Corp shares.
[AT&T Comcast Corporation Logo]
10
--------------------------------------------------------------------------------
POWERFUL PLATFORM FOR GROWTH
--------------------------------------------------------------------------------
BRIAN ROBERTS
PRESIDENT
COMCAST CORPORATION
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------------
| Creates one of the most powerful communications |
| media and entertainment companies in the world |
--------------------------------------------------------------------
*Unparalleled scale and scope
*The leader in advanced services
*Realizing the telephony opportunity
*Creating value through content
*Maximizing cost synergies and revenue enhancement
[AT&T Comcast Corporation Logo]
12
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------------
| Diligence Assessment - What Did We Find? |
--------------------------------------------------------------------
*Strong foundation in place to drive future growth
*Best and most highly clustered industry footprint
*Consolidation and integration of operating activities and facilities
largely complete
*Telephony and data infrastructure [Photograph of buidlings
investments were behind them -- and skyline]
just beginning to realize scale benefits
[Photograph of pickup
*Highly committed workforce: "Best of Both" trucks]
[AT&T Comcast Corporation Logo]
13
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------------
| Best and most highly clustered industry footprint |
--------------------------------------------------------------------
[Graphic Depicting Map of U.S. with locations of Clustered Subscribers]
--------------------------------------------------------------------------
| Clustered Subscribers: |
| --------------------- |
| AT&T Broadband Comcast |
|-------------------------------------------------------------------------
Boston/Hartford 2.2 Philadelphia 1.8
Bay Area 1.8 Baltimore/Washington 1.5
Chicago 1.7 Detroit 1.0
Seattle 1.0 NY/NJ/CT 0.8
Miami 0.8 Harrisburg 0.5
Sacramento 0.6 Nashville 0.3
Dallas 0.6
Denver 0.6
Atlanta 0.6
-----------------------------
Pittsburgh 0.6 |*38M HOMES PASSED |
| |
Los Angeles 0.5 |*79% OF SUBS IN SYSTEMS |
| GREATER THAN 250,000 |
Portland 0.4 | |
|*PRESENCE IN 41 STATES |
Salt Lake City 0.3 -----------------------------
Twin Cities 0.3
Jacksonville 0.3
[AT&T Comcast Corporation Logo]
14
Powerful Platform for Growth
--------------------------------------------------------------------------------
------------------------------------------------
| TOP 20 DMAS SUBS IN 000S |
| -------------------------------------------- | --------------------------
| 1. New York, NY 670 | | *LEADER IN 8 OF TOP 10 |
| 2. Los Angeles, CA 530 | | DMAS |
| 3. Chicago, IL 1,750 | | |
| 4. Philadelphia, PA 1,790 | | *70% OF SUBSCRIBERS IN |
| 5. San Francisco-Oakland-San Jose, CA 1,830 | | TOP 20 DMAS |
| 6. Boston, MA 1,680 | | |
| 7. Dallas-Fort Worth, TX 560 | | *MAJOR PRSENCE IN 17 |
| 8. Washington, DC 860 | | OF THE TOP 20 DMAS |
| 9. Detroit, MI 830 | |------------------------
| 10. Atlanta, GA 680 |
| 11. Houston, TX -- |
| 12. Seattle-Tacoma, WA 960 |
| 13. Tampa/St. Petersburg-Sarasota, FL 210 |
| 14. Minneapolis-St. Paul, MN 340 |
| 15. Cleveland, OH 90 | [Graphic of map from page 14]
| 16. Miami/Ft Lauderdale, FL 780 |
| 17. Phoenix, AZ -- |
| 18. Denver, CO 620 |
| 19. Sacramento-Stockton-Modesto, CA 550 |
| 20. Pittsburgh, PA 620 |
-----------------------------------------------
Source: Wall Street equity research.
[AT&T Comcast Corporation Logo]
15
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------------
| SCALE DRIVES ACCELERATED BROADBAND DEPLOYMENT |
--------------------------------------------------------------------
[Bar Graph depicting 2001E Subscribers (MM]
1st Quarter 2nd Quarter
AT&T/Comcast -- 22.1
EchoStar/DirecTV (pending) 10.3 6.4
Time Warner Cable 11.2 --
Charter 7.0 --
Cox 6.3 --
Adelphia 5.8 --
Cablevision 3.0 --
Source: Wall Street equity research.
[AT&T Comcast Corporation Logo]
16
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------
Scale drives accelerated broadband deployment
--------------------------------------------------------------
* Deploy new products and services
- Telephony
- VOD
- SVOD
- Home networking
- Interactive TV
* Develop new, and leverage existing, programming content
[QVC Logo] [E! Logo] [THE GOLF CHANNEL Logo] [Comcast SportsNet Logo]
[AT&T Comcast Corporation Logo]
17
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------
Leading Provider of Advanced Services
--------------------------------------------------------------
Digital Data Telephony
--------- ------ ---------
(Subscribers (000's) (Subscribers (000's) (Subscribers (000's)
AT&T Comcast 4,797 AT&T Comcast 2,180 AT&T Comcast 924
AOL/TW 2,861 AOL/TW 1,661 Cox 399
CHTR 1,951 Cox 779 CVC 12
ADLAC 1,682 CHTR 508
Cox 1,228 CVC 423
ADLAC 315
Source: Data as of Company reports 9/30/01
[AT&T Comcast Corporation Logo]
18
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------------------------------------------
Value creation by leveraging AT&T's telephony expertise
--------------------------------------------------------------
*Telephony footprint with national reach
*AT&T telephony infrastructure leverageable and scaleable into Comcast footprint
*Initial rollout to 1 million Comcast homes
-- Initial Comcast markets -Philadelphia and Detriot
*Strong focus on building long term economic value
*Enhances growth profile of combined company
[AT&T Comcast Corporation Logo]
19
Powerful Platform for Growth
--------------------------------------------------------------------------------
------------------------------------------------------------------------
Comcast record of content value creation benefits all shareholders
------------------------------------------------------------------------
Value Today
-----------
[QVC Logo] *More than tripled OCF in 7 years
*$209M in 1994 to $700M in 2001 $13-$15B
[E! Logo] *60% subscriber growth in 4 years
*46M in 1997 to 75M at YE01 $1.5-$2.5B
[Style Logo] *15M subscribers today growing to
40M by YE04 $300-$500M
[THE GOLF CHANNEL Logo] *200% subscriber growth in 4 years
*14M in 1997 to 46M at TE01 $1.0-$1.5B
[Outdoor Life Network Logo] *120% subscriber growth since 1998
*17M in 1998 to 37M at TE01 $500-$700M
[Comcast *Regional sports network covers 8.2M
SportsNet Logo] subscribers and entrie Mid-Atlantic
customer base $300-$500M
-----------
$16.6-$20.7B
[AT&T Comcast Corporation Logo]
Source: Wall Street equity research estimates.
Value represents 100% of the equity for each entity.
20
Powerful Platform for Growth
--------------------------------------------------------------------------------
------------------------------------------------------------------------
Comcast's superior currency has outperformed its peers and the market
------------------------------------------------------------------------
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
--------------------------------------------------------------------------------
Comcast (0.3%) 11% 34% 22%
--------------------------------------------------------------------------------
Cable Composite (2) (21%) 4% 32% 13%
Nasdaq (21%) (2%) 9% 14%
S&P 500 (12%) (1%) 9% 11%
[AT&T Comcast Corporation Logo]
Notes: (1) All performance measurements calculated through 12/19/01
(2) Consists of Adelphia, Calbevision, Charter and Cox.
21
--------------------------------------------------------------------------------
Leading Broadband Platform
--------------------------------------------------------------------------------
Bill Schleyer
President and CEO
AT&T Broadband
Powerful Platform for Growth
--------------------------------------------------------------------------------
--------------------------- ----------------------------------------
Pro Forma Plant Status (1) Upgraded Homes as % of Homes Passed (2)
--------------------------- ----------------------------------------
[2002]
[Pie Chart:] Digitial Video
Service Ready Homes 38.0M
750+ MHz 67%
Cable Modem
550-750 MHz 13% Service Ready Homes 30.2M
<550 MHz 20% Telephony
Service Ready Homes 11.2M
--------------------------------------------------------------------------------
Upgraded plant positioned for growth in advanced services
--------------------------------------------------------------------------------
[AT&T Comcast Corporation Logo]
Notes: (1) Based on 13.8MM and 24.6MM homes passed for Comcast
and AT&T Broadband, respectively.
(2) Upgraded Service ready homes
23
High Speed Data Network Migration
--------------------------------------------------------------------------------
* Migration to self reliant high-speed data network
- Improves control and cost
- Increases overall network reliability, including redundant RDCs
- Designed to support multiple ISPs
- Enables ability to offer tiered packages
- Enhanced product features (e.g. remote email)
* Long-term results
- Increased customer satisfaction
- Improved operating and long term financial results
[AT&T Comcast Corporation Logo]
24
Powerful Telephony Footprint
--------------------------------------------------------------------------------
----------------------------------- -----------------------------------
Telephony Footprint
Comparable to RBOCs... ...with National Reach
----------------------------------- -----------------------------------
Homes Homes
Passed (M) Connected (M) [Map depiciting National Reach]
AT&T Comcast Corp 38 1.0 SBC: California, Nevada,
Texas, Oklahoma,
SBC 36 36 Arkansas, Missouri,
Illinois, Indiana,
Verizon 33 33 Wisconsin, Michigan, Ohio
BellSouth 15 15 Bell South: Louisiana,
Mississippi, Alabama,
Qwest 10 10 Georgia, Florida, North
Carolina, South Carolina,
Cox 10 0.4 Kentucky, Tennessee
Qwest: Arizona, New Mexico, Utah
Colorado, Kansas,
Wyoming, Nebraska,
North Dakota, South
Dakota, Montana,
Washington, Oregon,
Idaho, Iowa, Minnesota
Verizon: New Jersey, Connecticut,
Massachusetts,
New Hampshire, Vermont,
Maine, West Virginia,
Virginia, Washington,
D.C., Pennsylannia, New
York, Maryland, Delaware,
Rhode Island
Source: Wall Street equity estimates research and company reports
[AT&T Comcast Corporation Logo]
25
Telephony Infrastructure in Place to Support Growth
--------------------------------------------------------------------------------
* Infrastructure is in place to support telephony
- Centralized infrastructure
- Roll-out knowledge and process
- AT&T Infrastructure
* Strong financial returns
- Incremental EBITDA/Sub by 2003 - $300 annually
- Incremental per sub capital cost $700 and declining
- AT&T Broadband breakeven by Q102
--------------------------------------------------------------------------------
| AT&T Comcast Corp has the experience and infrastructure |
| to rapidly deploy telephony more efficiently and quickly |
--------------------------------------------------------------------------------
[AT&T Comcast Corporation Logo]
26
--------------------------------------------------------------------------------
VALUE CREATION THROUGH SYNERGIES
--------------------------------------------------------------------------------
STEVE BURKE
PRESIDENT
COMCAST CABLE
Value Creation Through Synergies
--------------------------------------------------------------------------------
Annual synergies approaching $2B
Annual
EBITDA Impact ($M) Timing
------------------ ------
Programming Cost Savings $250-450 1-3 years
Continued Operating Efficiencies $200-300 1-3 years
National Advertising Platform $100-200 1-3 years
New Products $100-200 3 years
Comcast Telephony $600-800 5 years
--------
TOTAL $1,250-1,950
Net Present Value $13,500
[AT&T Comcast Corporation Logo]
28
Value Creation Through Synergies
--------------------------------------------------------------------------------
Substantial EBITDA margin improvement opportunity
in addition to synergies
[Bar Graph showing EBITDA Margins for AT&T Broadband and Comcast as
follows:
AT&T Broadband(1) Comcast(2)
1Q01 EBITDA Margins 18% 41%
2Q01 EBITDA Margins 23% 43%
3Q01 EBITDA Margins 25% 42%]
Comcast Margin 42%
AT&T Broadband Margin 25%
---------------------------------------
|DIFFERENCE 17% |
---------------------------------------
AT&T Broadband '01 Revenue(3) x $9.6B
---------------------------------------
|POTENTIAL MARGIN IMPROVEMENT $1.6B|
---------------------------------------
---------------------------------------
| Projected EBITDA growth |
| approaching 20% |
---------------------------------------
Source: Company Reports
Notes: (1) AT&T Broadband margins exclude restructuring and other changes.
(2) Margins inckude 75% corporate overhead allocation.
(3) Annualized 3Q01 AT&T Broadband revenues.
[AT&T Comcast Corporation Logo]
29
Value Creation Through Synergies
--------------------------------------------------------------------------------
Comcast's strong EBITDA margins maintained
even as lower margin systems are integrated
* Comcast integrated 1.7 million subscribers in 2000 and 1.9 million subscribers
in the first two quarters of 2001
[Bar Graph showing Comcast Quarterly EBITDA and % EBITDA Margin
for four quarters of 2000 and three quarters of 2001 as follows:
Quarterly EBITDA ($MM) %EBITDA Margin
2000 Q1 458 40.0
2000 Q2 486 40.8
2000 Q3 492 41.4
2000 Q4 505 40.8
2001 Q1 508 40.9
2001 Q2 554 42.5
2001 Q3 556 42.4
Note: Margins include 75% corporate overhead allocation.
Includes all system sales and swaps.
[AT&T Comcast Corporation Logo]
30
Value Creation Through Synergies
--------------------------------------------------------------------------------
$5B + value content creation opportunity
* Scale enables cost-effective and profitable content creation
- 22 million subscribers
- Reduced risk in start-up phase
- Access to quality programming
- More attractive to advertising sponsors
* Leverages Comcast's success in content development to date
* Launch of additional channels will create significant value
[AT&T Comcast Corporation Logo]
31
--------------------------------------------------------------------------------
FINANCIAL REVIEW
--------------------------------------------------------------------------------
CHUCK NOSKI
CHIEF FINANCIAL OFFICER
AT&T
Financially Powerful Combination with Strong Credit Position
--------------------------------------------------------------------------------
* Estimated pro forma EBITDA of $4.6B
* Retains maximum financial and strategic flexibility
* Accelerating free cash flow provides additional debt capacity
* Focus on continued deleveraging activities
* Anticipate investment grade credit ratings
--------------------------------------------------------------------------------
| AT&T Comcast Corp will be financially strong and positioned for growth |
--------------------------------------------------------------------------------
Note: Financial data for AT&T Broadband based on 9 months annualized as of
September 30, 2001. Financial data for Comcast represents 2001 estimate.
EBITDA excludes other income, pretax equity earnings (losses), and asset
impairment charges.
[AT&T Comcast Corporation Logo]
33
Pro Forma Financial Results
--------------------------------------------------------------------------------
AT&T AT&T
($ in Billions) Broadband Comcast Comcast Corp.
--------- ------- -------------
Revenue(1) $9.0B $9.0B $18.0B
EBITDA(1) $1.9B $2.7B $4.6B
EBITDA Margin 20.8% 30.3% 25.6%
Net Debt(2) $17.3B $9.7B $27B
--------------------------------------------------------------------------------
| Target debt rating of strong BBB |
--------------------------------------------------------------------------------
(1) Financial data for AT&T Broadband based on 9 months annualized as of
September 30, 2001. Financial data for Comcast represents LTM as of
September 30, 2001. EBITDA excludes other income, pretax equity earnings
(losses), and asset impairment charges.
(2) Net debt excluding QUIPS (Face amount $5 billion) and other liabilities.
[AT&T Comcast Corporation Logo]
34
AT&T Communications Services: Deleveraging Progress
--------------------------------------------------------------------------------
AT&T Consolidated Net Debt(1) --------------------------------
(Dollars in Billions) |Key Drivers |
|----------- |
| |
|NTT DoCoMo ($9.8B) |
|Japan Telecom ($1.3B) |
YE00(2) | $56.2B | |Non-core Cable Assets ($5.0B) |
| | |AWE Split ($0.7B) |
| | |AWE Debt-Equity Swap ($1.6B) |
| | |AWE Residual Interest ($1.2B) |
| | |Cablevision/RMG ($2.0B) |
Today | $35.6B | |Global Bond Offering/Refinance|
| | --------------------------------
| |
Debt Assumed by --- --- + $5B of Microsoft QUIPS
AT&T Comcast Corp - ($17.3B) - Exchanged
- -
- -
- -
|
--------------------------------------------------------------------------------
| AT&T Communications Services will remain in a strong |
| capital position as the result of this transaction |
--------------------------------------------------------------------------------
(1) Net of monetizations and cash.
(2) Includes debt from discontinued operations.
[AT&T Comcast Corporation Logo]
35
Strength of AT&T Communications Services
--------------------------------------------------------------------------------
------------------------------- -------------------------------
| --------------- | | --------------- |
| |AT&T Business| | | |AT&T Consumer| |
| --------------- | | --------------- |
| | | |
| Revenue: $28.3B | | Revenue: $15.9B |
| | | |
| EBITDA: $ 9.1B | | EBITDA: $5.6B |
| | | |
------------------------------- -------------------------------
--------------------------------------------
| |
| [AT&T Communications Services Logo] |
| Revenue: $44.2B |
| |
| EBITDA: $14.7B |
| |
| Net Debt: ~$18B |
--------------------------------------------
Note: Revenue and EBITDA shows LTM data as of September 30, 2001. EBITDA
excludes other income, pretax equity earnings (losses), and asset
impairment charges. Net debt expected for year-end 2001.
[AT&T Comcast Corporation Logo]
36
AT&T's Restructuring - Future
--------------------------------------------------------------------------------
Activity Estimated Timing
-------- ----------------
* Deleveraging * On-going
* Proxy Filing * First Qyarter 2002
* Shareholder Vote * Mid 2002
* Consumer Tracker Distribution * 2nd Half 2002
* AT&T Comcast Corp Closing * Approximately 1 Year
[AT&T Comcast Corporation Logo]
37
Realization of the Broadband Vision
--------------------------------------------------------------------------------
[AT&T Comcast Corporation Logo] Revenues: $18.0B
EBITDA: $ 4.6B
* 38M homes passed, with 22M subscribers
* Potential for scaling new and innovative products and services to consumers
* Best value proposition to the consumer
* Experienced management and employees
* Projected EBITDA growth approaching 20%
* Financial strength and flexibility
--------------------------------------------------------------------------------
| Merger creates the leading entertainment, communications |
| and information company |
--------------------------------------------------------------------------------
Note: Financial data for AT&T Broadband based on 9 months annualized as of
September 30, 2001. Financial data for Comcast represents LTM as of
September 30, 2001. EBITDA excludes other income, pretax equity earnings
(losses), and asset impairment charges.
[AT&T Comcast Corporation Logo]
38
[AT&T Comcast Corporation Logo]
--------------------------------------------------------------------------------
Investor Presentation
December 20, 2001