Dear Shareholder,

2020 was not a year that could be reduced to a bottom line. The COVID-19 pandemic has hit hard in the communities we serve and continues to do so. It has brought sorrow, loss and uncertainty to many within our own organization. Yet, Verizon had another strong year, both financially and operationally.

On an adjusted basis (non-GAAP, and excluding special items), adjusted earnings per share (EPS) was $4.90, compared with 2019 adjusted EPS of $4.81. Cash flow from operations totaled $41.8 billion, a 16.8 percent increase from 2019.

Our V Teamers have met this challenge

with skill and dedication. They were the essential workers on the frontlines, carrying out field service calls under conditions of unique uncertainty. They were the backbone of our network, enabling frontline workers, healthcare providers and homebound families to remain connected. Through this challenge, Verizon supported small businesses whose incomes dried up in the economic downturn. We have never shied away from responding to a crisis, and this past year was no exception. We responded as we always do, with our four stakeholders in mind: our customers, our employees, our shareholders and society.

Verizon was recognized as a leader in "employers' responses to the pandemic" for the example we set and the transparency with which we communicated to our employees, demonstrating how our company takes care of our own. But it's also a tribute to how our colleagues take care of our customers and our communities.

Those customers and those communities needed us like never before. As the U.S.

and many other nations shut down in the spring, our network handled an immense amount

of traffic. During a time when we needed to be socially distant, our networks made sure people felt connected. During the first 90 days of the COVID-19 crisis in the U.S., our network supported more than 58 billion calls, 519 billion text messages and 10.3 trillion megabytes

of data.

Our network handled all of this traffic without any disruptions, proof positive of the quality of our infrastructure and our entire V Team. Not only that-we developed bigger and better options for customers now facing the cancellation of live events.

We introduced our new Mix & Match plan, which gives consumers unparalleled ability to choose services and experience packages that work for them and their unique personal and family needs. We launched a new

Yahoo Sports integrated feature, Watch Together, that gives viewers the ability to "co-watch"

and interact over entertainment events ranging from music to sports, with the NFL as our initial launch partner.

We also extended our agreement with

The Walt Disney Company to include Disney+, Hulu and ESPN+ in select wireless plans

and announced a collaboration with Discovery, Inc., to debut Discovery+, the largest-ever content offering of any new streaming service.

During a time when we needed to be socially distant, our networks made sure people felt connected. During the first 90 days

of the COVID-19 crisis in the U.S., our network supported more than 58 billion calls, 519 billion text messages and

10.3 trillion megabytes of data.

Even as our network was carrying more traffic than ever before, we continued to invest in its growth. As I mentioned at the Consumer Electronics Show in January of this year, 2020 in many ways marked the arrival of 5G as

a true game-changer for the way consumers learn, work, play and enjoy entertainment.

By the end of 2020, we had 2,700 cities on

our Nationwide 5G network, serving 230 million people. In addition, we had introduced 5G Ultra Wideband to more than 60 metro areas across the U.S.-expansion made possible by our growth in the millimeter-wave technology at the heart of Ultra Wideband.

In the fall, we announced millimeter-wave network deals with two of our leading network partners, Corning and Samsung, delivering 5G radio nodes for retail and other venue deployments.

More recently, we've entered into an agreement with Crown Castle to lease 15,000 small cells to support both millimeter-wave Ultra Wideband and 5G Nationwide.

And, of course, we also expanded access to

5G Home fixed wireless and teamed up with Apple for the arrival of 5G on iPhone 12 models-the moment when "5G got real" for many customers.

*Subject to regulatory approval

Our disciplined strategy and strong balance sheet enabled us to be aggressive and we were able

to acquire the best spectrum available in this auction.

Our disciplined strategy and strong balance sheet enabled us to be aggressive and we were able to acquire the best spectrum available in this auction. That investment- combined with our other network holdings- makes our spectrum position the strongest in the industry and positions us superbly for the next stage of growth and beyond.

In many ways, this is a continuation of

the strategic direction that we've been taking ever since the rollout of Verizon 2.0 in 2019, when we reorganized the company into three customer-facing operating businesses to maximize the value of our leadership in the transformational technology of 5G.

The C-Band investment takes that value maximization to another level. The new spectrum holdings ensure that Verizon is the carrier best positioned to deploy the fastest, most powerful 5G experience to the most people-or as we call it, "5G built right."

Ever since we began building 5G, we have had

a first-mover advantage. We are more than a year ahead in building and selling millimeter-wave with our 5G Ultra Wideband service and we are still the only company with commercial MEC. Now we intend to extend our lead by accelerating our deployment of C-Band. We will increase our capital spending by $10 billion-over and above our annual ongoing capital investment- during the next three years to put this spectrum into use as quickly as possible.