Crown Castle Inc. · NYSE:CCI
Crown Castle — Crown Castle International — Investor Day (2003)
16 slides from Crown Castle's investor day presentation, 2003
Slide 1: Crown Castle International Corp.
Crown Castle International Corp. NYSE: CCI John P. Kelly President and Chief Executive Officer
Slide 2: CCI Themes
CCI CCI Themes Themes • Growing free cash flow • Deleveraging the balance sheet • Protecting and enhancing the value of the common shareholder Accomplished by… shaping the wireless world SM 2
Slide 3: CCI Key Initiatives
CCI CCI Key Key Initiatives Initiatives § Organic revenue growth in tower business § Grow recurring margins § Allocate capital to projects with high incremental returns and low execution risks § Extend revenue model around existing assets § Transparent financial disclosure and industry leader in cor
Slide 4: Potential for Top-Line Growth
Potential Potential for for Top-Line Top-Line Growth Growth 1992 Total MOU’s Wireless MOU’s Grew 28% 700 from 6/30/01 to 6/30/02 1% 2001 Total MOU’s 99% 600 500 Wireless MOU's in billions 32.7% Wireless 400 Total MOU 17% growth 300 200 Wireline 100 83% 0 91 93 95 97 99 01 ) (E 19 19 19 19 19 20 03 2
Slide 5: MOU's Require Cell Sites
MOU’s MOU’s Require Require Cell Cell Sites Sites 150,000 4,000 Total Cell Sites MOU’s Per Site (in thousands) 130,000 MOU's Per Site (in thousands) 3,500 110,000 3,000 Total Cell Sites 90,000 2,500 70,000 2,000 50,000 1,500 30,000 1,000 10,000 500 -10,000 1994 1995 1996 1997 1998 1999 2000 2001 200
Slide 6: Genesis of Project Southpointe
Genesis Genesis of of Project Project Southpointe Southpointe § Who is not on the tower? § Do they need our site? § Are there alternatives to our site? § How do we capture the potential? shaping the wireless world SM 6
Slide 7: Portfolio of Attractive Sites
Portfolio Portfolio of of Attractive Attractive Sites Sites Site Attractiveness •Site Attractiveness Rankings are site-specific, based on Land Use Categories Low 13% High •Land Use Categories are accepted 35% by wireless service providers as an appropriate determinant of Site Attractiveness Medium 5
Slide 8: Sites Needed by Carriers
Sites Sites Needed Needed by by Carriers Carriers 0.80 •RF need is determined by BBE’S measuring an individual license 0.70 holder’s signal strength at every Carrier A CCI site 0.60 Carrier B 0.50 •Measured signal strength is Carrier C compared to the carrier’s average 0.40 signal strength threshold
Slide 9: Focused on Priority Need
Focused Focused on on Priority Priority Need Need § Attractive location § Low RF Signal § Based only on current MOU’s and network design § Sales force focused on marketing these opportunities § Streamlines the sales cycle by proactively matching supply with demand shaping the wireless world SM 9
Slide 10: Pricing Remains Stable
Pricing Pricing Remains Remains Stable Stable Average Annual Revenue Per New UK Tenant* Average Annual Revenue Per New US Tenant $20,000 $20,000 $15,000 $15,000 $10,000 $10,000 $5,000 $5,000 $0 $0 Q4 '99 Q4 '00 Q4 '01 Q4 '02 Q4 '99 Q4 '00 Q4 '01 Q4 '02 * In USD using exchange rate of 1.5USD to 1GBP
Slide 11: Forecast for US Leasing
Forecast Forecast for for US US Leasing Leasing Demand for MOUs continues to be strong Recent carrier comments indicating need for additional sites New Monthly Lease Rates remain consistent Pressure on carriers to achieve Free Cash Flow Difficult capital markets for wireless telecom On Balance: Leas
Slide 12: Growth in Recurring Margins
Growth in Recurring Margins
Slide 13: Margin Expansion
Margin Margin Expansion Expansion Gross Margin Per US Tower ($) Gross Margin Per US Tower (%) $6,600 66% 63% 59% $5,800 $4,500 Q4 '00 Q4 '01 Q4 '02 Q4 '00 Q4 '01 Q4 '02 Tower Business demonstrates strong Margin Expansion shaping the wireless world SM 13
Slide 14: Managing G&A Expenses
Managing Managing G&A G&A Expenses Expenses Total Annual G&A § US Organization Per Tower* • Seven Areas $7,600 • Asset, Finance, and Sales $7,300 Functions in each Area § UK Organization $6,500 • Four Areas • Telecom function largely decentralized into the Areas • Broadcast function largely 2000 200
Slide 15: CCI's Compelling Business Model
CCI’s CCI’s Compelling Compelling Business Business Model Model 1. Long-term contracted revenue 2. Credit quality of revenue stream 3. Long-term control of assets 4. Relatively fixed operating costs 5. Minimal required capex 6. Potential for significant growth § Top-line § Free cash flow shaping the
Slide 16: Protecting the Common Shareholder
Protecting Protecting the the Common Common Shareholder Shareholder Setting the Standard in Corporate Responsibility § Significant executive ownership with required minimum holdings § 10 Directors, 9 of which are independent directors § Industry leader in disclosure of information and metrics § Inte