Helios Towers Plc · LSE:HTWS
Helios Towers — Q3 2022 Earnings Presentation
25 slides from Helios Towers's earnings presentation, Nov 3, 2022
Slide 1: Q3 2022 Results
Q3 2022 Results 3 November 2022 Ongoing financial and operational delivery; FY 22 tenancy guidance tightened upwards
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 Q3 2022 Results 2
Slide 3: Agenda
Agenda 1. Q3 2022 Highlights 2. Financial Results 3. Q&A Helios Towers Q3 2022 Results 3
Slide 4: Q3 2022 Highlights
Q3 2022 Highlights Helios Towers Q3 2022 Results 4
Slide 5: Q3 2022 YTD: Highlights
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Q3 2022 YTD: Highlights Robust financial performance, including double-digit organic Adj. EBITDA growth, driven by tenancy additions; FY 22 organic tenancy guidance tightened upwards 1 2 3 4 CONSISTENT AND STRONG ROBUST FINANCIAL OMAN EXPANSION FY 2022 GUIDANCE O
Slide 6: Platform expansion driving strong growth in Adj. EBITDA and portfolio free cash flow
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Q3 2022: Platform expansion driving strong growth in Adj. EBITDA and portfolio free cash flow Tenancies Adj. EBITDA Portfolio free cash flow (#) (US$m) (US$m) Tenancy ratio Adj. EBITDA Margin Cash conversion(1) 2.13x 1.96x 1.92x 55% 54% 49% 77% 70% 71%(2) 20,913
Slide 7: Oman expansion nearing completion
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Oman expansion nearing completion New market integration Oman meets our key acquisition criteria Philippe Loridon Ramsey Koola Exec Led: Regional CEO – Middle East, East & West Africa MD HT Oman & Regional Director ME & East Africa Africa & Middle East ✓ 3% GDP C
Slide 8: Sustainable Business achievements
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Sustainable Business achievements First rating of ‘AAA’ from MSCI Inclusion in the FTSE4Good Index Broad-based Black Economic Empowerment • In October 2022, Helios Towers South Africa • Received an ‘AAA’ ESG rating, the highest possible • The index series measure
Slide 9: Financial Results
Financial Results Helios Towers Q3 2022 Results 9
Slide 10: Q3 2022: Ongoing financial and operational delivery
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Q3 2022: Ongoing financial and operational delivery YoY QoQ In US$m, unless YTD YTD % change Q3 22 Q2 22 % change otherwise stated Q3 22 Q3 21 Revenue 409 327 +25% 143 138 +4% Adj. EBITDA(1) 207 175 +18% 71 69 +2% Adj. EBITDA margin (%) 51% 54% -3% 49% 50% -1% Po
Slide 11: Q3 2022: Consistent and strong tenancy growth
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Q3 2022: Consistent and strong tenancy growth Sites Tenancies Tenancy ratio +9% +24% +7% +18% -0.04x -0.11x 10,872 20,913 747 1,185 586 489 17,773 8,765 606 1,388 1,303 436 1,277 699 1,208 362 632 2,210 253 502 1,991 432 1,109 1,019 4,584 4,927 1,973 2,186 2.03x
Slide 12: Double-digit organic Adj. EBITDA growth complimented by inorganic expansion
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Q3 2022: Double-digit organic Adj. EBITDA growth complimented by inorganic expansion Revenue (US$m) Adj. EBITDA (US$m) Adj. EBITDA margin (%) +15% +25% +11% +16% -2% -4ppt 143 71 2 1 8 4 61 1 6 114 2 9 1 5 3 7 3 5 2 10 10 7 7 11 25 52 25 43 53% 49% 35 52 28 43 Q3
Slide 13: Demonstrable resilience; structural growth and robust business model
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Demonstrable resilience; structural growth and robust business model Q3 22 YoY revenue walkthrough(1,3) Q3 22 YoY Adj. EBITDA walkthrough(1) (US$m) (US$m) +25% +16% 12 8 3 3 1 1 10 6 (4) (1) Further power escalations Power escalations expected in Q4 22, Principal
Slide 14: Diversified business underpinned by long-term contracts with blue-chip MNOs
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Diversified business underpinned by long-term contracts with blue-chip MNOs Diverse, quality customer base Robust hard-currency earnings Geographically diverse Q3 2022 YTD revenue breakdown by customer(3) Q3 2022 YTD revenue breakdown by FX Q3 2022 YTD revenue br
Slide 15: Capital expenditure: Tightly controlled and focused on accretive growth
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Capital expenditure: Tightly controlled and focused on accretive growth Capex breakdown ($m) Commentary FY 22 Q3 22 FY 21 Q3 22 YTD Guidance • Q3 22 YTD capex of $214m, including $63m acquisition capex, principally related to the acquisition in Malawi Acquisition
Slide 16: Strong balance sheet
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Strong balance sheet Debt KPIs Commentary ($m) Q3 21 Q2 22 Q3 22 • Net leverage increased by +0.7x YoY and +0.2x QoQ to 4.1x, within the Group’s medium term target range Cash & cash equivalents 638 389 348 of 3.5x - 4.5x Bond (Dec-25) 975 975 975 Convertible bond
Slide 17: FY 22 outlook: Guidance updated for robust tenancy growth and power price movements
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS FY 22 outlook: Guidance updated for robust tenancy growth and power price movements Initial Current Q3 YTD FY 22 guidance FY 22 guidance Organic tenancy additions ✓ +1,039 organic tenancies of which 57% new sites +1,200 - 1,700 of which 60% sites +1,400 - 1,700 o
Slide 18: Q3 2022: Takeaways
Q3 2022 HIGHLIGHTS FINANCIAL RESULTS Q3 2022: Takeaways FY 22 organic tenancy growth guidance increased, reflecting year-to-date 1 performance and robust pipeline for Q4 Platform expansion nearing completion; Oman towerco licence received in Oct-22 2 and closing expected before year-end 3 2023 outlo
Slide 19: Thank you
Jërëjëf Zikomo Thank you Matondo Matondi Asante Shukranًشكرا Merci Misaotra Medaase Siyabonga Helios Towers Q3 2022 Results 19
Slide 20: Investor relations
Investor relations IR Contact Chris Baker-Sams Head of Strategic Finance and Investor Relations [email protected] Recent IR event Date Event 05-May Capital Markets Day Upcoming IR events Date Event 16/17-Nov Morgan Stanley European TMT Conference Helios Towers Q3 2022 Results 20
Slide 21: Appendix
Appendix Helios Towers Q3 2022 Results 21
Slide 22: Our markets are some of the fastest growing in the world
Our markets are some of the fastest growing in the world, with inflation in-line with global levels 2022 real GDP growth(1) in HT markets 2022 inflation trend(1) in HT markets 6% 27% 18% 5% 4% 4% (2) 4% 4% 4% 4% 3% 10% 3% 8% 9% (2) 8% 8% 7% 2% 2% 7% 4% 4% 3% 4% 1% Senegal Group DRC Congo B Madagasca
Slide 23: Market overview
Market overview Mobile Towers held by PoS Growth CAGR(5) Sites Tenancy ratio # MNOs(2) Penetration(3) MNOs(4) (2021 – 2026) Tanzania 4,174 2.2x 4+ 47% 0.6k 8% DRC 2,186 2.3x 4 27% 1.3k 12% Ghana 1,109 2.0x 3 53% 0.4k 5% Senegal 1,303 1.1x 3 43% 2.7k 7% Congo B 502 1.4x 2 37% 0.3k 10% South Africa 36
Slide 24: Q3 2022: Adj. EBITDA protected through macro volatility
Q3 2022: Adj. EBITDA protected through macro volatility Effective contractual escalators for power prices in a rising power price environment maintain Adj. EBITDA, although dilute margin Without power escalation protections With power escalation protections Illustrative example Illustrative example
Slide 25: 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