Helios Towers PLC · LSE:HTWS
Helios Towers — FY2017 Earnings Presentation
22 slides from Helios Towers's earnings presentation, Feb 12, 2018
Slide 1: Results 2017
Results 2017 12 February 2018
Slide 2: Agenda
Agenda 1 Executive Summary 2 Financial Results 3 Q&A 1
Slide 3: Helios Towers Team Today
Helios Towers Team Today Kash Pandya Tom Greenwood Alex Leigh Jeffrey Kriek Chief Executive Officer Chief Financial Officer Chief Commercial Head of Corporate Officer Finance and Investor Relations 2
Slide 4: Executive Summary
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Slide 5: Group FY 2017 Key Highlights
Group FY 2017 Key Highlights Results Snapshot Financial Summary % % Q3 17 Q4 17 change FY 16 FY 17 change • Revenue: +22% Y-o-Y / +1% Q-o-Q In US$m, unless Q-o-Q Y-o-Y otherwise stated • Adj. EBITDA: +39% Y-o-Y / +11% Q-o-Q Revenue 88 88 1% 283 345 22% • Adj. EBITDA margin: +5ppt Y-o-Y / +4ppt Q-o-Q
Slide 6: Group Annualised Adj. EBITDA Evolution
Group Annualised Adj. EBITDA(1) Evolution Margin 35% 35% 39% 38% 40% 40% 42% 46% 164 148 133 138 126 127 83 85 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 (1) Calculated as per the bond definition as the most recent fiscal quarter multiplied by 4. This is not a forecast of future result Helios T
Slide 7: Recent Developments
Recent Developments Vodacom Buy-out Completed Tanzania Listing Directorate change Power saving initiatives • $62m option for • Recent Tanzanian law • Allan Cook CBE DSc, the • 430 solar sites expected Vodacom’s shares in for network facilities former Chairman of WS to be functional by end Tanzania l
Slide 8: Financial Results
YY YD AAYY SA AAD WA_ AAR SA ALY a x MALY LALY LALLY ALYI LILY SA LALL LAL VA AALY KAI YY YD AALY DALY AYXX YO LALYL LAY DALY DALY TINNY NVIN XK Oh Financial Results
Slide 9: Historical Performance of KPIs
Historical Performance of KPIs Revenue Growth ($m) Adjusted EBITDA Growth ($m) +4% +2% +1% +7% +11% +4% 86 88 88 41 83 37 10 35 5 10 10 10 33 6 6 6 4 5 2 5 4 2 2 34 34 36 37 3 17 20 15 16 34 36 35 35 15 17 17 18 (3) (5) (4) (4) Q1 17 Q2 17 Q3 17 Q4 17 Q1 17 Q2 17 Q3 17 Q4 17 Evolution of Tower Portf
Slide 10: FY 2017 Revenue Breakdown
FY 2017 Revenue Breakdown FY 17 Revenue Breakdown by Customer FY 17 Revenue Breakdown by FX Other 12% LCY 27% USD 54% Power LCY Africa’s Big 5 15% MNOs 88% XAF/EUR 4% FY 17 Revenue Breakdown by Country Commentary Ghana • 88% of FY 17 revenues from Africa’s Big 5 MNOs Congo B 12% 7% • 58% of revenues
Slide 11: Costs and Margin Analysis
Costs and Margin Analysis Q-o-Q Adj. EBITDA Margin Growth Monthly Tower Cash Flow per Tower ($) (1) 46% +17% 40% 40% 42% 2,469 39% 38% 35% 35% 2,106 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 FY16 FY17 FY17 Costs Breakdown (excl. depreciation)(2) Commentary Total Cost of Sales: $152m Total SG&A
Slide 12: Capital Expenditure
Capital Expenditure Capex Breakdown ($m) Commentary FY 17 capex of $171m is 39% lower than FY 16 300 -39% 281 Capex guidance for 2018 is $90m, a further 47% reduction from FY 17 250 Since 2012 the Group has invested $169m in Upgrade capex on sites acquired from MNOs and 200 165 -47% 171 are ab
Slide 13: Summary of Financial Debt
Summary of Financial Debt Debt KPIs Gross and Net Leverage ($m) FY 16 PF(1) 4Q 16 PF(1) FY17 4Q 17 6.8x -2.4x / -1.9x Cash & cash equivalents 134 134 120 120 Bond 600 600 600 600 5.5x 5.6x (2) Lease Obligations + Other 111 111 115 115 4.9x Gross Debt 711 711 715 715 4.6x 4.4x Net Debt 577 577 595 59
Slide 14: 2018 Performance Outlook
Outlook for 2018 2018 Performance Outlook Strong pipeline driving 2018 tenancies and top-line growth Business Excellence Program expected to continue to drive margin improvement Organically, we expect strong momentum to continue in 2018 along with improved capital efficiency Helios Towers 13
Slide 15: Q&A
Q&A
Slide 16: Appendix
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Slide 17: Income Statement
Income Statement (1) Includes restructuring costs, advisory and other costs relating to the preparation for the IPO of the Group’s operating subsidiary in Tanzania, exceptional project costs, deal costs for aborted acquisitions and share based payments. Helios Towers 16
Slide 18: Balance Sheet
Balance Sheet ($m) FY 2016 FY 2017 Non–current assets Intangible assets 35.6 18.0 Property, plant and equipment 655.1 705.7 Right–of–use assets 112.7 115.3 Investments 0.1 0.1 Derivative financial assets 1.4 23.9 804.9 863.0 Current assets Inventories 19.5 9.5 Trade and other receivables 126.9 108.5
Slide 19: Cash Flow Statement
Cash Flow Statement ($m) FY 2016 FY 2017 Adj. EBITDA 105.2 146.0 Less: Tax Paid (0.6) (1.3) Less: Maintenance and Corporate Capex (32.8) (22.2) Unlevered Recurring Cash Flow 71.8 122.5 % Cash Conversion 68.3% 83.9% Less: Change in Working Capital (30.8) (16.5) Less: Finance costs paid (41.6) (51.6)
Slide 20: IFRS16 Leases reconciliation
IFRS16 Leases reconciliation FY 2016 FY 2016 ($m) Change Pre-IFRS 16 Post-IFRS 16 Income statement Adjusted EBITDA 84.5 20.6 105.2 D&A (118.9) (10.6) (129.5) Finance costs (60.0) (13.2) (73.3) Other items (18.5) - (18.5) Loss after tax (113.0) (3.2) (116.1) Balance sheet Debt funding 401.1 - 401.1 L
Slide 21: Disclaimer
Disclaimer This presentation (the “Presentation”) is provided on a strictly private and confidential basis for information purposes only and must not be relied up for any purpose. This Presentation does not constitute or form part of, and should not be construed as, an offer, invitation or inducemen
Slide 22: Contact
Contact [email protected]