Helios Towers PLC · LSE:HTWS
Helios Towers — H1 2019 Earnings Presentation
23 slides from Helios Towers's earnings presentation, Aug 15, 2019
Slide 1: Results H1 2019
Results H1 2019 15 August 2019
Slide 2: Agenda
Agenda 1 Key Highlights 2 Financial Results 3 Q&A 1
Slide 3: Helios Towers Team Today
Helios Towers Team Today Tom Greenwood Kash Pandya Manjit Dhillon Chief Financial Officer Chief Executive Officer Head of Corporate Finance 2
Slide 4: Key Highlights
YY YD AAYY SA AAD WA_ AAR SA ALY MALY LALY LALLY ALYI LILY SA LALL LAL VA AALY VA 4 DALY DALY KAI DALY ye YY YD AALY DALY LALLY AYXX YO LALYL LAY DALY DALY VEE TINNY NVIN Dy DALY XK Oh DALY ighlights Key
Slide 5: 18 Consecutive Quarters of Adj. EBITDA Growth
18 Consecutive Quarters of Adj. EBITDA(1) Growth Group Annualised Adj. EBITDA ($m) Margin 25% 27% 28% 28% 35% 35% 39% 38% 40% 40% 42% 46% 47% 49% 51% 52% 52% 52% CAGR Q1 2015 – Q2 2019 44% Margin has more than doubled >2x through top-line growth and implementation of business excellence strategy 195
Slide 6: Year-on-year revenue growth accelerating to +9% in Q2 2019 with Adj. EBITDA expanding +14% to $50m
Year-on-year revenue growth accelerating to +9% in Q2 2019 with Adj. EBITDA expanding +14% to $50m Revenue growth Adj. EBITDA growth Adj. EBITDA margin expansion +9% +14% +3 ppt 97 50 49% 52% 52% 89 94 49 44 Q2 18 Q1 19 Q2 19 Q2 18 Q1 19 Q2 19 Q2 18 Q1 19 Q2 19 • Q2 19 Revenue of $97m increased 9% y
Slide 7: Tenancies up by +8% year-on-year, achieving a tenancy ratio of 2.05x for Q2 19
Tenancies up by +8% year-on-year, achieving a tenancy ratio of 2.05x for Q2 19 Evolution of sites portfolio Evolution of tenants Evolution of tenancy ratio +5% +8% +0.06x 6,533 6,716 6,882 13,600 14,100 168 101 12,996 533 384 380 13 381 532 531 17 933 1,709 1,744 870 910 1,642 1,817 3,519 3,705 1,77
Slide 8: Recent Developments
Recent Developments Completion of SA Towers ISO Strategic Acquisition Certification Announcement • On 30 April 2019 HTSA closed its • On 13 June 2019 HT was awarded • As a result of continued financial acquisition of SA Towers the Anti-Bribery Management and strategic progress made in 2018 System ce
Slide 9: Financial Results
YY YD AAYY SA AAD WA_ AAR SA ALY a x MALY LALY LALLY ALYI LILY SA LALL LAL VA AALY KAI YY YD AALY DALY AYXX YO LALYL LAY DALY DALY TINNY NVIN XK Oh Financial Results
Slide 10: Q2 2019 Key Highlights
Q2 2019 Key Highlights Results Snapshot Financial Summary % % Q1 19 Q2 19 H1 18 H1 19 change change • H1 Revenue: +7% Y-o-Y / +3% Q-o-Q In US$m, unless Q-o-Q Y-o-Y otherwise stated • H1 Adj. EBITDA: +15% Y-o-Y / +3% Q-o-Q Revenue 94 97 3% 178 191 7% • H1 Adj. EBITDA margin: +4ppt Y-o-Y / 0ppt Q-o-Q
Slide 11: H1 2019 Revenue Breakdown
H1 2019 Revenue Breakdown H1 2019 Revenue Breakdown by Customer H1 2019 Revenue Breakdown by FX Other LCY 22% 14% USD Power LCY 53% 21% Africa’s Big 5 MNOs(1) 86% XAF/EUR 4% H1 2019 Revenue Breakdown by Country Commentary Ghana South Africa • 86% of H1 19 revenues from Africa’s Big 5 MNOs 10% 0% (Q1
Slide 12: H1 2019 Costs and Margin Analysis
H1 2019 Costs and Margin Analysis Q-o-Q Adj. EBITDA Margin Monthly Tower Cash Flow per Tower ($) (1) 51% 52% 52% 52% 46% 47% 49% +8% 3,069 39% 38% 40% 40% 42% 35% 35% 28% 28% 2,837 25% 27% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 18 Q2 19 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18
Slide 13: Capital Expenditure
Capital Expenditure Capex Breakdown ($m) Commentary Capex guidance for FY 19 (excl. South Africa) remains at $100m, a 16% reduction from FY 18 Ongoing maintenance and corporate capex 130 guidance unchanged at c.$20-25m per annum 119 2 30 Reducing FY 19 capex guidance for South Africa 100 from
Slide 14: Summary of Financial Debt
Summary of Financial Debt Debt KPIs Gross and Net Leverage ($m) FY 18 Q4 18 Q1 19 Q2 19 -0.2x / -0.1x Cash & cash equivalents 89 89 109 90 Bond 600 600 600 600 4.2x 4.0x 4.0x 4.0x Term Loan 25 25 75 75 3.7x 3.5x 3.4x 3.6x (1) Lease Obligations + Other 121 121 106 129 Gross Debt 746 746 781 805 Net D
Slide 15: Helios Towers' Story Reinforced
Helios Towers’ Story Reinforced Strong growing positions in four existing markets with MARKET LEADER… exciting growth potential in the new South African market UNIQUE POSITIONING … CONTINUING +9% Revenue growth and +14% EBITDA growth year-on- DELIVERING GROWTH year for Q2 2019 LONG-TERM Contracted r
Slide 16: Outlook for 2019
Outlook for 2019 “Continued growth in our four established markets to be driven by top-line growth and execution of our Business Excellence Strategy. We expect this to be complimented by growth in South Africa, where we take our proven business model to this attractive new market.” Helios Towers 15
Slide 17: Q&A
Q&A
Slide 18: Appendix
YY YD AAYY SA AAD WA_ AAR SA ALY MALY LALY LALLY ALYI LILY SA Appendix
Slide 19: Summary Income Statement
Summary Income Statement ($m) H1 18 H1 19 Revenue 178.1 190.7 Cost of sales (130.9) (132.7) Gross Profit 47.2 58.0 Admin expenses (49.3) (39.9) Loss on disposal of PPE (0.0) (5.4) Operating profit/(loss) (2.1) 12.7 Interest receivable 0.5 0.7 Other gains and losses (24.1) 24.3 Finance costs (55.5) (
Slide 20: Summary Balance Sheet
Summary Balance Sheet ($m) FY 2018 H1 2019 Non–current assets Intangible assets 12.4 40.1 Property, plant and equipment 676.6 653.5 Right–of–use assets 103.8 108.5 Investments in subsidiaries 0.1 - Derivative financial assets 7.1 31.4 800.1 833.5 Current assets Inventories 10.3 10.0 Trade and other
Slide 21: Summary Cash Flow Statement
Summary Cash Flow Statement ($m) H1 18 H1 19 Adj. EBITDA 85.9 99.0 Less: Tax paid - (1.2) Less: Payments of lease liabilities (1) (13.7) (10.2) Less: Maintenance and corporate capex (2) (10.8) (7.8) Portfolio free cash flow 61.5 79.8 Cash conversion % (3) 72% 81% Less: Net payment of interest (4) (2
Slide 22: Disclaimer
Disclaimer This presentation (the “Presentation”) is provided on a strictly private and confidential basis for information purposes only and must not be relied up for any purpose. This Presentation does not constitute or form part of, and should not be construed as, an offer, invitation or inducemen
Slide 23: Contact
Contact investorrelations@heliostowers.com