Helios Towers PLC · LSE:HTWS
Helios Towers — Q3 2023 Earnings Presentation
28 slides from Helios Towers's earnings presentation, Nov 2, 2023
Slide 1: Q3 23 performance
Q3 23 performance Q3 2023 Results ahead of expectations; 2 November 2023 FY 23 guidance increased
Slide 2: Helios Towers team
Helios Towers team Manjit Dhillon Tom Greenwood Chris Baker-Sams Chief Financial Officer Chief Executive Officer Head of Strategic Finance and Investor Relations Helios Towers Q3 2023 Results 2
Slide 3: Agenda
Agenda 1. Highlights 2. Financial Results 3. Q&A Helios Towers Q3 2023 Results 3
Slide 4: Highlights
Highlights Helios Towers Q3 2023 Results 4
Slide 5: Highlights
HIGHLIGHTS FINANCIAL RESULTS Highlights Q3 23 performance ahead of expectations; FY 23 guidance increased across all metrics 1 2 3 4 DELIVERING ...DRIVING STRONG Q3 23 STRENGTHENED FY 23 FOR OUR CUSTOMERS... FINANCIAL PERFORMANCE BALANCE SHEET GUIDANCE INCREASED Increase vs. prior guidance(2) • Reco
Slide 6: FY 2023 on track to be one of the Company's best ever years for organic growth
HIGHLIGHTS FINANCIAL RESULTS FY 2023 on track to be one of the Company’s best ever years’ for organic growth, driving cash flow and returns Organic tenancy additions Adj. EBITDA PFCF(2) and ROIC(3) (#) (US$m) (US$m / %) Organic tenancy ratio expansion Adj. EBITDA growth PFCF growth +0.02x +0.01x +0.
Slide 7: Future contracted revenue has grown 37% in the past year
HIGHLIGHTS FINANCIAL RESULTS Future contracted revenue has grown 37% in the past year, underpinning future growth Future contracted revenue Commentary (US$bn, excluding future escalations and automatic renewals) Average remaining life (years) • Contracted revenue increased to a record $5.5bn, 7.0yrs
Slide 8: FY 2024 financial goals
HIGHLIGHTS FINANCIAL RESULTS FY 2024 financial goals Following platform expansion across 2021-2022 and strong organic performance in 2023, 2024 is expected to deliver continued organic growth and reduced net leverage 1 2 3 Organic growth focus Double-digit Continued deleveraging with 0.05-0.1x tenan
Slide 9: Financial Results
Financial Results Helios Towers Q3 2023 Results 9
Slide 10: Q3 2023: Financial overview
HIGHLIGHTS FINANCIAL RESULTS Q3 2023: Financial overview YoY QoQ In US$m, unless YTD YTD % change Q3 23 Q2 23 % change otherwise stated Q3 23 Q3 22 Sites (#) 14,024 10,872 +29% 14,024 13,870 +1% Tenancies (#) 26,624 20,913 +27% 26,624 25,883 +3% Tenancy ratio (x) 1.90x 1.92x -0.02x 1.90x 1.87x +0.03
Slide 11: Q3 2023: Record organic tenancy additions
HIGHLIGHTS FINANCIAL RESULTS Q3 2023: Record organic tenancy additions Sites Tenancies Tenancy ratio +5% +29% +11% +27% +0.11x -0.02x 26,624 14,024 3,304 1.92x 1.90x 2,528 20,913 10,872 10,765 9,028 1.79x 4,648 5,085 (PF Oman acquisition, closed Q4-22) 6,411 11,885 12,555 6,224 Q3 22 Q3 23 Q3 22 Q3
Slide 12: Q3 2023: Strong YoY Adjusted EBITDA growth
HIGHLIGHTS FINANCIAL RESULTS Q3 2023: Strong YoY Adjusted EBITDA growth Revenue (US$m) Adj. EBITDA (US$m) Adj. EBITDA margin (%) +18% +28% +22% +35% +3ppt 184 95 14 9 143 71 91 44 75 36 49% 52% 78 52 69 43 -8 -9 Q3 22 Q3 23 Q3 22 Q3 23 Q3 22 Q3 23 • Organic revenue growth driven by • Adj. EBITDA gro
Slide 13: Q3 2023: Proven resilience to Fx, CPI and power prices
HIGHLIGHTS FINANCIAL RESULTS Q3 2023: Proven resilience to Fx, CPI and power prices Q3 23 YoY revenue walkthrough(1,2) Q3 23 YoY Adj. EBITDA walkthrough(1) (US$m) (US$m) +28% +35% 9 14 7 (4) 3 (2) 7 2 17 12 Principally driven by Power efficiency through CPI escalations more than 95 Ghanaian Cedi 184
Slide 14: Diversified business underpinned by long-term contracts with blue-chip MNOs
HIGHLIGHTS FINANCIAL RESULTS Diversified business underpinned by long-term contracts with blue-chip MNOs Diverse, quality customer base Robust hard-currency revenues Geographically diverse revenues Q3 23 YTD revenue breakdown by customer Q3 23 YTD revenue breakdown by FX Q3 23 YTD revenue breakdown
Slide 15: FY 2023 capex is tightly controlled and focused on accretive opportunities
HIGHLIGHTS FINANCIAL RESULTS FY 2023 capex is tightly controlled and focused on accretive high-return organic opportunities Capex breakdown Commentary • Discretionary capex is tightly controlled and only US$m, FY 23 approved if returns achieve key thresholds FY 22 Q3 23 YTD unless otherwise stated G
Slide 16: Debt liability management
HIGHLIGHTS FINANCIAL RESULTS Debt liability management In September, the Company raised up to $720m loan and credit facilities(1), to opportunistically manage its debt maturity profile Strengthened balance sheet Debt maturity profile extended ($m) Group facilities: +1yr extended weighted average rem
Slide 17: Q3 2023: Net leverage reduced to within our target range
HIGHLIGHTS FINANCIAL RESULTS Q3 2023: Net leverage reduced to within our target range Debt KPIs Commentary ($m) Q4 22 Q2 23 Q3 23 Q3 23 PF(7) • Net leverage decreased by -0.6x YTD and -0.3x QoQ to Cash & cash equivalents 120 128 151 151 4.5x, within our target range of 3.5x – 4.5x Bond (Dec-25) 975
Slide 18: FY 2023: Guidance increased following strong YTD performance
HIGHLIGHTS FINANCIAL RESULTS FY 2023: Guidance increased following strong YTD performance FY 22 FY 23 FY 23 YoY Actual Prior guidance Updated guidance(1) FY 23 vs FY 22(2) Organic tenancy +1,601 +1,900 - +2,100 +2,200 - +2,400 +9% - +10% (Original: +1,600 - +2,100) additions Adj. EBITDA $283m $355m
Slide 19: Key takeaways
HIGHLIGHTS FINANCIAL RESULTS Key takeaways FY 23 set to be one of the Company's best ever years for organic growth with full-year guidance increased further New markets continue to demonstrate lease-up, supporting Adj. EBITDA and ROIC growth Net leverage down within our target range, one quart
Slide 20: Thank you
Jërëjëf Zikomo Thank you Matondo Matondi Asante Shukranًشكرا Merci Misaotra Medaase Siyabonga Helios Towers Q3 2023 Results 20
Slide 21: Investor relations
Investor relations IR Contact Chris Baker-Sams Head of Strategic Finance and Investor Relations investorrelations@heliostowers.com Upcoming IR events Date Event Morgan Stanley European Technology, Media & 15 to 16-Nov Telecom Conference Helios Towers Q3 2023 Results 21
Slide 22: Appendix
Appendix Helios Towers Q3 2023 Results 22
Slide 23: Q3 2023 sites and tenancies
Q3 2023 sites and tenancies Sites Tenancies Tenancy ratio Q3 23 Q3 22 YoY Q2 23 QoQ Q3 23 Q3 22 YoY Q2 23 QoQ Q3 23 Q3 22 YoY Q2 23 QoQ Tanzania 4,188 4,174 +14 4,193 (5) 9,648 9,312 +336 9,535 +113 2.3x 2.2x +0.1x 2.3x 0.0x Senegal 1,428 1,303 +125 1,386 +42 1,554 1,388 +166 1,483 +71 1.1x 1.1x 0.0
Slide 24: Our markets are some of the fastest growing in the world
Our markets are some of the fastest growing in the world Forecast 2023 real GDP growth(1) in HT markets Forecast 2023 inflation trend(1) in HT markets 42% 28% 7% 5% 4% 4% 4% (2) 4% 3% 11% (2) 8% 2% 7% 1% 6% 6% 1% 1% 5% 4% 4% 1% 4% 1% Senegal Group DRC G7 Congo B Madagascar South Africa Ghana Tanzani
Slide 25: Market overview: Macro and industry snapshot
Market overview: Macro and industry snapshot Mobile PoS Growth CAGR(3) Towers held by Credit ratings # MNOs(1) 4G/ 5G penetration Credit ratings(5) Penetration(2) (2021 – 2026) MNOs(4) momentum(6) Tanzania 4+ 48% 15% 8% 0.6k B2(Pos)/NR/B+(St) Senegal 3 44% 24% 7% 2.7k Ba3(St)/B+(St)/NR Malawi 2 41%
Slide 26: Adj. EBITDA protected through power price volatility
Adj. EBITDA protected through power price volatility Without power escalation protections With Helios Towers power escalation protections Illustrative example Illustrative example HT Q3 2023 US$m Before Power After US$m Before Power After US$m Q3 23 Power Q3 23 (unless otherwise power increase power
Slide 27: Leading ESG credentials
Leading ESG credentials Second ‘AAA’ ESG rating from MSCI, Jun 23 FTSE4Good Index inclusion, Jun 23 Scored B, Dec 22 Platinum rating, Nov 22 (the highest possible score from MSCI) (for a second consecutive year) (improvement from 2021 rating of B-) (rated top 1% from telecoms industry) ESG Risk Rati
Slide 28: 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