Ihs Holding Limited · NYSE:IHS
Ihs — Q3 2024 Earnings Presentation
30 slides from Ihs's earnings presentation, Nov 12, 2024
Slide 1: IHS Towers 3Q24 Earnings Results
IHS TOWERS 3Q24 EARNINGS RESULTS NOVEMBER 12, 2024
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Information This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in S
Slide 3: Presenting Today
PRESENTING TODAY Sam Darwish Steve Howden Robert Berg Chairman & CEO Executive Vice President & CFO Head of Investor Relations 3
Slide 4: 3Q24 Performance
3Q24 PERFORMANCE Revenue Adjusted EBITDA & ALFCF(1) $M $M • In 3Q24, constructed 193 towers, (10.0%) +3.3% decreased net (67) tenants, and added net 3Q24 Revenue 3Q24 Adjusted EBITDA 697 lease amendments Growth Y/Y Growth Y/Y +49.0% • 3Q24 Revenue of $420M decreased by +1.6% (3.5%) Q/Q, inclusive of
Slide 5: IHS Global Tower Portfolio
IHS GLOBAL TOWER PORTFOLIO In 3Q24, we built +193 towers including +158 in Brazil 40,650 3rd Largest Towers on 3 Continents (1) Independent Multinational TowerCo Globally By Tower Count (1) Egypt(2) - 147,299 Africa and the Middle East Kuwait 1,675 Nigeria 16,488 113,216 Cameroon 2,437 Rwanda 1,442
Slide 6: Highlights
HIGHLIGHTS Strategic Review MTN Commercial Update Improving Financial Profile • The review remains ongoing – firmly targeted at value-creation options • All MTN tower Master Lease Agreements (MLAs) have been renewed • Recently renewed or extended contracts covering 72% of revenue(2) or extended • Th
Slide 7: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY Sustainability Initiatives in 3Q24 Our Strategy Four-pillar Sustainability Strategy • Ethics and governance • Environment and climate change Ethics and Environment and Education and Our people and • Education and economic growth governance climate change economic growt
Slide 8: Consolidated Results Snapshot
CONSOLIDATED RESULTS SNAPSHOT 3Q23 3Q24 Y/Y Towers (#) 39,739 40,650(3) 2.3% Tenants (#) 59,196 60,315(3) 1.9% Colocation Rate 1.49x 1.48x(3) (0.01x) Lease Amendments (#) 35,254 39,389 11.7% In US$M, unless stated Revenue 467 420 (10.0%) Adjusted EBITDA 238(1) 246 3.3% (1) Adjusted EBITDA margin 51.
Slide 9: 3Q24 Consolidated Revenue Walk
3Q24 CONSOLIDATED REVENUE WALK 3Q24 Revenue $M Total Growth Total Growth ($47M) or (10.0%) Organic Growth +$229M or +49.0% (10.0%) ($47M) Organic Growth +49.0% +$229M 467 Organic Growth 420 by Segment +86.8% Nigeria (6.2)% SSA (0.6)% Latam 8.5% 21.0% 0.8% 1.0% 2.9% 17.6% 2.0% (4.8)% 0.0% (59.1%) +19
Slide 10: FX and Power Exposure Overview
FX AND POWER EXPOSURE OVERVIEW Revenue by Reporting Currency (1) Revenue by Linked Contract Split Power Exposure by Country Power Power Pass- Country Indexation Through Nigeria Brazil South Africa 3Q24 3Q24 Côte d’Ivoire Cameroon Zambia 58% 15% (2) 11% 6% Kuwait NGN EUR BRL ZAR 26% 13% 21% 41% (2) (
Slide 11: Consolidated Revenue and Adjusted EBITDA
CONSOLIDATED REVENUE AND ADJUSTED EBITDA Revenue $M 510 3Q24 Revenue 467 11 Growth Rate Y/Y 54 418 435 420 52 10 11 133 124 48 11 46 108 45 120 13 (10.0%) 131 ($47M) 321 271 228 270 242 • 3Q24 Revenue decreased (3.5%) Q/Q 3Q23 4Q23 1Q24 2Q24 3Q24 Revenue Growth Y/Y (10.4%) (3.1%) (30.7%) (20.3%) (10
Slide 12: Adjusted Levered Free Cash Flow and Capex
ADJUSTED LEVERED FREE CASH FLOW AND CAPEX Adjusted Levered Free Cash Flow (1) $M 3Q24 118 (2) Adjusted Levered 87 Free Cash Flow 86 67 $87M 43 • 3Q24 ALFCF increased +30.3% Q/Q 3Q23 (2) 4Q23 1Q24 2Q24 3Q24 • 3Q24 ALFCF increased +1.6% Y/Y ALFCF Cash Conversion Rate +36.0% +43.1% +23.3% +26.7% +35.4%
Slide 13: 3Q24 Segment Performance Highlights
3Q24 SEGMENT PERFORMANCE HIGHLIGHTS Revenue and segment Adjusted EBITDA in $M 3Q23 3Q24 Y/Y (2) Towers 16,400 16,488 0.5% Nigeria Tenants 25,927 25,648 (2) (1.1%) Lease Amendments 33,254 34,855 4.8% Revenue 271 242 (10.7%) Segment Adjusted EBITDA 164(1) 159 (3.2%) Segment Adjusted EBITDA Margin % 60
Slide 14: Towers and Tenants
TOWERS AND TENANTS Towers (in ‘000s) Towers Built 39.7 40.1 40.3 40.3 40.7 438 1.7 1.7 1.7 1.7 1.7 415 12 18 7.7 8.0 8.1 8.2 8.4 14.0 14.1 14.1 14.1 14.1 321 294 216 207 4 2 193 3 161 151 160 16.4 16.4 16.4 16.3 16.5 51 77 54 39 32 26 12 22 22 8 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 Nige
Slide 15: Debt Profile
DEBT PROFILE Consolidated Net Leverage Ratio Debt and Net Leverage Debt Maturity Profile (2) as of September 30, 2024 $M 3.9x $M As of June 30, 2024 As of Sep 30, 2024 8.000% Senior Notes due 2027 940 940 Includes $430M term loan fully repaid in • Continue to target net leverage 1,116 5.625% Senior
Slide 16: 2024 Guidance
2024 GUIDANCE 2024 Guidance Key Points Previous Range Metrics Current Range Revenue Guidance (Aug 7, 2024) $1,670M - $1,700M • Implies organic growth of ~48% (at the mid-point) Revenue $1,670M - $1,700M no change • Includes impact from the renewal and extension of all tower contracts with MTN Nigeri
Slide 17: Appendix
APPENDIX tHS =
Slide 18: IHS Track Record
IHS TRACK RECORD One of the world’s largest independent and multinational owners, operators, and developers of shared communications infrastru cture Revenue Adjusted EBITDA(4)(5) $M $M • Capitalize on significant growth opportunities in +14.6% existing markets Revenue CAGR 2019-2023 • Optimize utili
Slide 19: FX Resets Impact on Our Business
FX RESETS IMPACT ON OUR BUSINESS FX Resets and CPI Escalators offer effective revenue protection against the impact of currency devaluation USD FX Reset Frequency (1) 2023 CPI By Market (2) How FX resets work • A relevant portion of contracts is tied to a “hard currency” including USD and Euro • We
Slide 20: Oil Impact on Our Business
OIL IMPACT ON OUR BUSINESS Power Solutions as at June 30, 2024 (1) Diesel $M Oil Impact • For the last several years, IHS 911 has added hybrid (solar/battery) powered solutions. As part of our Carbon Reduction 813 Roadmap, we expect to 792 continue to upgrade a portion 766 of towers in our portfolio
Slide 21: 3Q24 Revenue Overview
3Q24 REVENUE OVERVIEW Our key customers consist of the largest MNOs in the markets where we operate 3Q24 Revenue by Key Customer 3Q24 Revenue by segment 62% MTN 14% Airtel 7% TIM 6% Orange 58% Nigeria 3% Zain 29% SSA 2% Vivo 1% Telkom 11% Latam 1% Claro 3% MENA <1% Oi (Fixed) <1% Tigo <1% 9mobile Cu
Slide 22: IHS Market Data
IHS MARKET DATA We are the leader in market share in 7 of the markets where we operate Country Towers (1) Towerco Market Position Towerco Market Share (2) Core Tenants (3) # out of # Major MNOs (4) Nigeria 16,488 1st 64% 3 out of 4 South Africa 5,693 1st 50% 2 out of 4 Côte d’Ivoire 2,686 1st 100% 3
Slide 23: IHS Markets Overview
IHS MARKETS OVERVIEW Attractive markets well suited for organic growth Population (million people) Data Usage Per SIM (GB/Month) CAGR 2023 – 2028E CAGR 2023 – 2028E 1.4% 2.3% 17.2% 22.1% 809 254 12.8 7.8 754 226 5.8 2.9 2023 2028E 2023 2028E 2023 2028E 2023 2028E All IHS Markets(1) Nigeria All IHS M
Slide 24: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 3-month period ended LTM as of LTM as of LTM as of ($000s) Sep 30, 2023(1) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Sep 30, 2024 Sep 30, 2023(1) Jun 30, 2024 Sep 30, 2024 (Loss)/income (268,804) (456,82
Slide 25: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 2019 2020 2021 2022(1) 2023(1) ($000s) (Loss)/income (423,492) (322,682) (26,121) (468,966) (1,988,178) Divided by total revenue 1,231,056 1,403,149 1,579,730 1,961,299 2,125,539 (Loss)/income margin (
Slide 26: Adjusted Levered Free Cash Flow Reconciliation
ADJUSTED LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of Cash From Operations for the period Adjusted Levered Free Cash Flow 3-month period ended ($000s) Sep 30, 2023(1) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Sep 30, 2024 Cash from operations 229,912 162,054 92,984 151,596 182,431 Net movem
Slide 27: Currency Overview
CURRENCY OVERVIEW Average Period End Spot Currency FY23 3Q23 4Q23 1Q24 2Q24 3Q24 FY23 3Q23 4Q23 1Q24 2Q24 3Q24 Nigeria (Naira) - USD:NGN NAFEX 638 768 815 1,316 1,392 1,601 912 776 912 1,394 1,514 1,669 European Union (Euro) - USD:EUR 0.92 0.92 0.93 0.92 0.93 0.91 0.91 0.95 0.91 0.93 0.93 0.90 Zambi
Slide 28: Glossary of Terms
GLOSSARY OF TERMS Adjusted EBITDA (including by segment): income/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, impairment of goodwill, business combination transaction costs, impairment
Slide 29: Glossary of Terms
GLOSSARY OF TERMS LTM Pro Forma Adjusted EBITDA: Adjusted EBITDA for the applicable four consecutive fiscal quarters as further adjusted to give pro forma effect (as determined in good faith by management and may, with respect to acquisitions, include anticipated cost synergies and expense and cost
Slide 30: IHS Towers Investor Relations
IHS Towers Investor Relations investorrelations@ihstowers.com