The Verizon Value Creation Model

3. Operational improvements have created stronger cash flow.

Operating Cash Flow from Continuing Operations

In addition to creating top-line growth, our business model also focuses on creating value for shareowners by generating strong cash flow and margins. Our goal is to take advantage of our scale, streamline our processes, eliminate duplication and drive savings to the bottom-line.

We continue to increase operational efficiency within each of our business groups to improve productivity and margins across the entire business. The results are evident in our strong operating cash flow from continuing operations, which last year grew by 14.2 percent compared to 2006.