Wendel Se · EURONEXT:MF
Wendel — IHS Towers — Investor Day (December 2018)
17 slides from Wendel's investor day presentation, December 2018
Slide 1: IHS – Long-Term Investor
IHS LONG-TERM INVESTOR 1 Wendel Investor Day 2018 | IHS Towers
Slide 2: IHS – Introduction
IHS – Introduction Towers (1) 22,4k 22,9k ▪ Founded in 2001 by a team of entrepreneurs 21,1k led by Sam Darwish 14,6k ▪ $3.4b equity / $2.0b debt raised and deployed 5,9k since 2012(4) 1,2k ▪ $1,348m of net debt (as of September 2018) Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 ▪ Enables digitalizatio
Slide 3: 2018 – IHS Team top management
2018 – IHS Team top management Sam Darwish Executive Vice Chairman and Group Chief Executive Officer – Co-founded IHS in 2001 – More than 25 years experience in the telecom industry Adam Walker Executive Vice President and Chief Financial Officer – 15+ years experience as CFO of three listed UK busi
Slide 4: 2018 – A year of progress in challenging times
IHS Towers – Wendel Investor Day 2018 – A year of progress in challenging times 2018 LONG-TERM INVESTOR 4 Wendel Investor Day 2018 | IHS Towers
Slide 5: IHS Group – founder-led group with 17 year history of growth
IHS Group – founder-led group with 17 year history of growth Summary Information Current Footprint(1) Kuwait(2) ▪ Largest independent TowerCo in EMEA Saudi Arabia(2) >1,600 • #1 TowerCo in Africa, >2x next closest competitor >8,100 • Operates 23,631 towers across 5 countries(1) Nigeria 16,218 ▪ #3 i
Slide 6: The clear leader in Africa and 3rd largest independent multinational TowerCo
The clear leader in Africa and 3rd largest independent multinational TowerCo IHS is 2.1x the size of the nearest Africa TowerCo, 1.1x the size of the nearest EMEA TowerCo, and the third largest independent, multinational TowerCo globally. #1 Africa Independent TowerCos #1 EMEA Independent TowerCos 1
Slide 7: Strong track record of growth historically
Strong track record of growth historically Towers & New BTS POP Tenants, Lease Amendments & LUR Tech LUR: 1.50x 1.88x 2.03x New BTS(1): 796 743 670 LUR: 1.36x 1.52x 1.50x 22,425 22,861 21,132 12,066 8,121 3,026 34,052 34,259 28,772 FY2015 FY2016 FY2017 Dec-15 Dec-16 Dec-17 POP Tenants Lease Amendmen
Slide 8: Nigeria still presents significant opportunities…
Nigeria still presents significant opportunities… Nigeria has the largest population in Africa and 7th largest population in the world with ~46% of youth 1 population between ages 10-34. The UN estimates that Nigeria will be the 3rd most populous nation by 2050(1). 2 Nigeria GDP is expected to grow
Slide 9: …And some issues to manage
…And some issues to manage USD – CBN / NAFEX Exchange Rates Commentary 500 ▪ Portion of contracts indexed to USD, but 360 contractually settled in Naira using the 400 Central Bank of Nigeria (CBN) rate. 300 ▪ Reset mechanism in contracts protect against Divergence 200 305 of 18% devaluation, as occu
Slide 10: We have made good progress against multiple challenges
We have made good progress against multiple challenges Challenge / Uncertainty Progress to Date ▪ As of 14 November 2018, all instructions have Regulatory At 30 June 2018, $196.5m in bank been lifted and there is no remaining matters accounts was restricted restricted cash related to the EFCC’s enqu
Slide 11: Group current trading
Group current trading Towers & New BTS POP Tenants, Lease Amendments & LUR New BTS(1): 598 893 Tech LUR: 2.04x 2.21x LUR: 1.53x 1.51x 22,793 23,631 16,703 11,494 34,911 35,615 Sep-17 Sep-18 9M Sep-17 9M Sep-18 POP Tenants Lease Amendments Revenue & Revenue Growth(2) Commentary Reported Growth: +4% ▪
Slide 12: Restricted Group, Nigeria
Restricted Group, Nigeria Note: Nigeria performance is as reported for the issuer of the US$800 million 9½% Senior Notes due 2021. This Restricted Group excludes 9,887 towers in Nigeria as at 30 September 2018. Summary 9M 9M Commentary Performance Sep-2017 Sep-2018 ▪ Towers: Increased to 6,331, +429
Slide 13: Rest of our portfolio continues to perform well
Rest of our portfolio continues to perform well Summary Performance 9M Sep-2017 9M Sep-2018 Change Towers 7,310 7,413 +1% New BTS 122 147 +20% New Colocations 431 545 +26% ▪ Performance across Cameroon, Côte d’Ivoire, Zambia and Rwanda remains encouraging — double digit constant currency revenue gro
Slide 14: It's not just about more towers
It’s not just about more towers More progress in 2018 – a continued focus on innovation across all departments Information Technology Innovation Governance E-Learning ▪ New VP & Chief ▪ Rolling out lamp pole ▪ New risk management ▪ One year anniversary of Information Officer small cell sites to plat
Slide 15: We are making strides in other areas too
We are making strides in other areas too Environmental, Social and Governance (ESG) ▪ Further development of ESG reporting, KPI metrics and frameworks ▪ Creation of new Health Safety, Security and Environment (HSSE) incident management system ▪ Full suite of Group policies and procedures deployed &
Slide 16: More of the same for 2019
More of the same for 2019 Revenue and ▪ Focus on colocation and lease amendments EBITDA Growth ▪ Assesses BTS against return benchmarks Free Cash Flow ▪ Country OPEX and SG&A continuously managed and optimized Generation – Cost Savings ▪ Maintain appropriate Group costs without burdening operations
Slide 17: 2018 – A year of progress in challenging times
2018 – A year of progress in challenging times ▪ Double digit growth on a constant currency basis and good cost controls ▪ Absorbed a number of challenges in Nigeria this year ▪ Shifting focus to internal value creation ▪ Increased focus on cash flow generation ▪ Well positioned to take advantage of