Helios Towers PLC · LSE:HTWS
Helios Towers — Q3 2021 Earnings Presentation
23 slides from Helios Towers's earnings presentation, Oct 28, 2021
Slide 1: Q3 2021 Trading update
Q3 2021 Trading update 28 October 2021
Slide 2: Helios Towers team today
Helios Towers team today Tom Greenwood Kash Pandya Manjit Dhillon Chief Operating Officer / Chief Executive Chief Financial CEO-Designate Officer Officer Helios Towers plc 2
Slide 3: Agenda
Agenda 1 Highlights – Kash Pandya, CEO 2 Highlights & Strategic Updates – Tom Greenwood, COO / CEO-Designate 3 Financial Results – Manjit Dhillon, CFO 4 Q&A Helios Towers plc 3
Slide 4: Highlights
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Slide 5: Q3 2021 highlights
Q3 2021 highlights STRONG REVENUE +10% revenue growth from $103.6m in Q3 20 to $114.4m in Q3 21, driven by GROWTH the Free Senegal tower portfolio acquisition and steady organic growth +6% Adj. EBITDA growth from $57.4m in Q3 20 to $60.8m in Q3 21, with -2ppt CONTINUED EBITDA margin decrease YoY to
Slide 6: Q3 2021: Robust tenancy and Adjusted EBITDA growth
Q3 2021: Robust tenancy and Adjusted EBITDA growth (1) (2) Tenancies Adj. EBITDA (US$m) Portfolio free cash flow (US$m) • Illustrates the core driver of business • Highlights the growth and operational • Measures the unlevered free cash flow growth performance of our business generation of the exist
Slide 7: Sustainable Business Strategy update
Sustainable Business Strategy update Carbon roadmap • Helios Towers will publish its carbon roadmap on 25 November 2021, with management hosting a presentation at 9:30am GMT on the same day. • Roadmap and management presentation will outline our carbon Q4 targets and strategy of minimising our envir
Slide 8: Strategic Highlights
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Slide 9: Successfully executing growth strategy
Successfully executing growth strategy Pro forma characteristics HT presence Q3 Q3 2021 PF 2021 Acquisitions(1) Executive HQ Dubai Markets 6 11 13,882 / Senegal Oman Chad Sites 8,765 14,897 (incl. committed BTS) Ghana Annualised DRC (2) 458 606 Congo B revenues ($m) Gabon Annualised (2) 243 310 Tanz
Slide 10: Strong progress towards acquisition closings and integration
Strong progress towards acquisition closings and integration Senegal Madagascar Malawi Oman Chad Gabon Consideration 190 52 56 575 N.D. N.D. (US$m): Y1 EBITDA 19 5 8 40 7 7 (US$m)(1): Acquired $ Towers (#): 1,207 494 735 2,890 539 459 Committed 400 135 60 300 60 60 BTS (#): Targeted Closed Q4 21 Q4
Slide 11: Ongoing structural growth due to critical mobile services demand and macro fundamentals
Ongoing structural growth due to critical mobile services demand and macro fundamentals Strong performance from …driven by strong macro drivers and low MNOs expected in FY 21… mobile penetration across our markets 4G +5% c.70% +12% +52m +6% 67% YoY unique mobile YoY increase in 4G revenue growth inc
Slide 12: Financial results
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Slide 13: Q3 2021: Continued tenancy growth and operational excellence
Q3 2021: Continued tenancy growth and operational excellence YoY QoQ In US$m, unless YTD YTD % change Q3 21 Q2 21 % change otherwise stated Q3 21 Q3 20 Revenue 327 308 +6% 114 109 +5% Adj. EBITDA(1) 175 167 +5% 61 58 +4% Adj. EBITDA margin (%) 54% 54% - 53% 54% -1ppt Annualised Adj. EBITDA(2) 243 23
Slide 14: Q3 2021: Robust organic tenancy growth
Q3 2021: Robust organic tenancy growth Evolution of sites portfolio Evolution of tenants Evolution of tenancy ratio Organic(1) Organic Organic +5% +21% +9% +18% +0.09x -0.06x +2% +4% Organic Organic +0.04x +2% +4% Organic +0.04x 8,603 8,765 17,090 17,773 1,277 1,208 15,082 1,264 436 7,222 1,207 353
Slide 15: Q3 2021: Solid revenue and Adj. EBITDA performance driven by Senegal acquisition
Q3 2021: Solid revenue and Adj. EBITDA performance driven by Senegal acquisition Revenue ($m) Adj. EBITDA ($m) Adj. EBITDA margin (%) Organic Organic(1) +10% Organic +6% -2ppt +2% +1% -3% +5% +4% -1ppt Organic Organic +1% 0% 109 114 61 55% 54% 53% 104 57 58 Q3 20 Q2 21 Q3 21 Q3 20 Q2 21 Q3 21 Q3 20
Slide 16: Strong currency hedged business underpinned by long-term contracts
Strong currency hedged business underpinned by long- term contracts with blue-chip mobile network operators Q3 2021 YTD revenue breakdown by customer Q3 2021 YTD revenue breakdown by FX Other 98% LCY (CPI) 22% 62% 2% hard currency revenues from multinational MNOs(1) LCY (Power) USD 16% 52% CFA Franc
Slide 17: Q3 2021: $272m deployed of c.$1bn FY21E capex
Q3 2021: $272m deployed of c.$1bn FY21E capex Capex breakdown ($m) Q3 21 Commentary FY 21 YTG Q3 21 YTD capex of $272m, reflecting $182m c.$1,040m c.$683m - $1,070m acquisition capex (largely related to the acquisition of Free Senegal’s tower portfolio), $70m growth and upgrade capex and $20m non-
Slide 18: Q3 2021: Strong balance sheet to support acquisitions
Q3 2021: Strong balance sheet to support acquisitions Debt KPIs Gross and net leverage +1.4x / +0.5x ($m) Q4 20 Q1 21 Q2 21 Q3 21 6.0x 5.9x 6.1x Cash & cash equivalents 429 670 640 638 4.7x 2.9x 3.0x 3.2x 3.4x Bond 975 975 975 975 Convertible bond(1) - 205 247 247 SA loan facility 13 12 13 12 Q4 20
Slide 19: Q3 2021: Key takeaways
Q3 2021: Key takeaways – Significant momentum; Organic, Inorganic, ESG 1 Well-invested platform, delivering strongest quarter of organic tenancy additions in six years, with robust pipeline supporting 2021 outlook and beyond 2 Continued progress on Airtel and Omantel acquisitions which upon closing,
Slide 20: Q&A
Q&A KY peur MA ‘ % % % LN BAY AY & x % x
Slide 21: Appendix
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Slide 22: Helios Towers market overview
Helios Towers market overview Multinational MNOs PoS PoS Growth Oman- Oore- Mobile Towers Additions(2) CAGR(2) Airtel Africell MTN Orange Axian(3) Voda Viettel tel doo Penetration(1) Available(2) (2020 – (2020 – 2026E) 2026E) Tanzania 41% 0.6k 5.5k 6% DRC 40% 1.2k 5.7k 11% Ghana (4)
Slide 23: 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