Helios Towers Plc · LSE:HTWS
Helios Towers — Q1 2022 Earnings Presentation
22 slides from Helios Towers's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Results
Q1 2022 Results 5 May 2022 Strong organic growth and continued progress with our transformational platform expansion
Slide 2: Helios Towers team today
Helios Towers team today Manjit Dhillon Tom Greenwood Chris Baker-Sams Chief Financial Officer Chief Executive Officer Head of Strategic Finance and Investor Relations Helios Towers Q1 2022 Results 2
Slide 3: Agenda
Agenda This morning: 1. Q1 2022 highlights 2. Financial results 3. Q&A This afternoon: 4. Capital Markets Day (click here to register virtually) Helios Towers Q1 2022 Results 3
Slide 4: Q1 2022 Highlights
Q1 2022 Highlights Helios Towers Q1 2022 Results 4
Slide 5: Q1 2022: Highlights
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022: Highlights Seasonally strong tenancy additions and Q1 financial performance in-line with expectations 1 2 3 4 CONSISTENT AND STRONG CONTINUED ROBUST FINANCIAL FY 2022 GUIDANCE ORGANIC TENANCY TRANSFORMATION THROUGH PERFORMANCE REITERATED GROWTH M&A •
Slide 6: Q1 2022: Strong growth driven by organic and inorganic expansion
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022: Strong growth driven by organic and inorganic expansion Tenancies Adj. EBITDA Portfolio free cash flow(1) (#) (US$m) (US$m) Tenancy ratio Adj. EBITDA Margin Cash conversion(2) 2.13x 1.96x 1.92x 55% 54% 52% 77% 70% 72%(3) 191 20,233 274 174 18,776 241
Slide 7: Sustainable Business Strategy
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Sustainable Business Strategy Committed to the highest levels of reporting and Refreshed Sustainable Business Strategy transparency launching today Our purpose 2020 is to drive the growth of mobile communication across Africa and the Middle East Our mission is
Slide 8: Q1 2022: Acquisition update
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022: Acquisition update Continued platform expansion and diversification with Malawi closed in Q1 22; pending acquisitions in Oman and Gabon tracking in-line with expectations Closing / Acquired Acquired Local Acquired Market expected closing Revenues(1) A
Slide 9: Financial Results
Financial Results Helios Towers Q1 2022 Results 9
Slide 10: Q1 2022: Financial overview
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022: Financial overview YoY QoQ In US$m, unless Q1 22 Q1 21 % change Q1 22 Q4 21 % change otherwise stated Revenue 128 104 +23% 128 122 +4% Adj. EBITDA(1) 67 56 +20% 67 66 +2% Adj. EBITDA margin (%) 52% 54% -2ppt 52% 54% -2ppt Portfolio free cash flow(2) 4
Slide 11: Q1 2022: Strong organic and inorganic tenancy growth
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022: Strong organic and inorganic tenancy growth Sites Tenancies Tenancy ratio +9% +43% +9% +29% +0.0x -0.22x 10,511 20,233 723 488 1,098 589 7,358 1,261 15,732 1,331 335 471 556 661 242 419 620 2,093 427 1,060 1,929 981 2,105 4,132 4,784 1,895 2.14x 1.92x
Slide 12: Q1 2022: Double-digit organic revenue and Adj. EBITDA growth
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022: Double-digit organic revenue and Adj. EBITDA growth Revenue (US$m) Adj. EBITDA (US$m) Adj. EBITDA margin (%) +10% +23% +10% +20% -2ppt 128 67 4 0.4 9 1 0.2 104 56 6 7 2 1 7 1 10 3 1 64 11 7 48 27 43 25 54% 52% 42 47 27 30 (6) (8) Q1 21 Q1 22 Q1 21 Q1
Slide 13: Diverse currency hedged business underpinned by long-term contracts with blue-chip MNOs
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Diverse currency hedged business underpinned by long-term contracts with blue-chip MNOs Diverse, quality customer base Robust hard-currency earnings Geographically diverse Q1 2022 revenue breakdown by customer Q1 2022 revenue breakdown by FX(2) Q1 2022 revenue
Slide 14: Capital expenditure: Tightly controlled and focused on accretive growth
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Capital expenditure: Tightly controlled and focused on accretive growth Capex breakdown ($m) Commentary $737m - $777m 610 810 - 850 Q1 22 capex targeted across Q2 – Q4 • Q1 22 capex of $73m, including $40m acquisition capex, 395 2022 principally related to the
Slide 15: Fully funded for organic and inorganic expansion
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Fully funded for organic and inorganic expansion Debt KPIs Commentary ($m) Q1 21 Q4 21 Q1 22 • Net leverage increased by +0.7x YoY and +0.1x QoQ Cash & cash equivalents 670 529 483 to 3.7x, the low end of the Group’s medium term target range of 3.5 - 4.5x, pro
Slide 16: Seasonally strong tenancy additions and tracking in-line with financial guidance
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Seasonally strong tenancy additions and tracking in-line with financial guidance Medium term Q1 2022 FY 2022 guidance (enlarged portfolio) Organic tenancy additions +359 organic tenancies of which, c.64% new sites +1,200 – 1,700 (mid-point: +8%) of which, c.
Slide 17: Q1 2022 takeaways
Q1 2022 HIGHLIGHTS FINANCIAL HIGHLIGHTS Q1 2022 takeaways Seasonally strong tenancy additions and Q1 financial performance 1 in-line with expectations Malawi deal closed; taking us into our eighth market and increasing 2 tower count to over 10,500 towers 3 FY 22 guidance reiterated 4 Refreshed five-
Slide 18: Q&A
Q&A Helios Towers Q1 2022 Results 18
Slide 19: Investor relations
Investor relations IR Contact Chris Baker-Sams Head of Strategic Finance and Investor Relations [email protected] Upcoming IR events Date Event May-5 Helios Towers Capital Markets Day (13:00 BST) May-17 Citi Bank Frontier Markets Symposium May-24 Morgan Stanley Global Towers Symposi
Slide 20: Appendix
Appendix Helios Towers Q1 2022 Results 20
Slide 21: Market overview
Market overview PoS PoS Growth Mobile Towers held by Sites Tenancy ratio # MNOs Additions(3) CAGR(4) Penetration(2) MNOs(3) (2021 – 2026) (2021 – 2026) Tanzania 4,068 2.2x 4+ 42% 0.6k 6.5k 8% DRC 2,105 2.3x 4 40% 1.3k 5.7k 12% Ghana 1,060 2.0x 3 56% 0.4k 2.7k 5% Senegal 1,261 1.1x 3 53% 2.7k 1.8k 7%
Slide 22: Disclaimer
Disclaimer This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Helios Towers plc (the "Company") or any other member of the Helios Towers group