Crown Castle Inc. · NYSE:CCI
Crown Castle — Crown Castle International — Deutsche Bank 2011 Media and Telecommunications Conference
21 slides from Crown Castle's conference presentation, March 2011
Slide 1: Deutsche Bank 2011 Media and Telecommunications Conference
Deutsche Bank 2011 Media and Telecommunications Conference Jay Brown Chief Financial Officer
Slide 2: Cautionary Information
Cautionary Information This presentation contains forward-looking statements and information that are based on management’s current expectations. Such statements include, but are not limited to plans, projections, Outlook and estimates regarding (i) the growth of our business, including investment o
Slide 3: Section 1: Executive Summary
VASRHP Section 1 Executive Summary
Slide 4: Real Estate Provider to the Wireless Industry
Real Estate Provider to the Wireless Industry Crown Castle is the largest tower operator in the U.S. 4
Slide 5: Crown Castle is Well-Positioned to Capture Future Growth
Crown Castle is Well-Positioned to Capture Future Growth % of Towers in Top 100 BTAs(1) Attractive Tower …of U.S. towers located in top 100 BTAs(1), largest 71% 71% tower operator in the U.S. 62% 52% Footprint CCI AMT SBAC Site Rental Revenue ($bn) Long-Term Contracted $15.3 ~8 …weighted average
Slide 6: Proven Operating Model with Consistent Growth
Proven Operating Model with Consistent Growth Focused Capital Strong Execution + Deployment = Significant Growth Site Rental Metrics Discretionary Cash Spend Since 2004 Recurring Cash Flow per Share ($ in millions) $1,825 Acquisitions & Land Purchases 74% 11% $2.54 Investments(3) 21% $1,286 Tower Bu
Slide 7: Focused on the Largest, High-Growth Wireless Market in the World
Focused on the Largest, High-Growth Wireless Market in the World Crown Castle is the largest and best positioned tower operator in the attractive U.S. market Competitive & Diverse Carriers Significant ARPU and MOU Strong Data Growth Competitive and Diverse Carriers 2010 Carrier Subscriber Share 2010
Slide 8: Historical Tower Demand Drivers
Historical Tower Demand Drivers Minutes of Use Driven By: (in trillions) $3 2.96 Increasing voice minutes of use $3 $2 Increasing subscriber penetration rate $2 $1 Capacity and geographic buildout $1 0.32 $0 Wireline replacement 2000 2010 Source: Wall Street Research Increasing consumer wire
Slide 9: Future Tower Demand Drivers
Future Tower Demand Drivers Forecasted North America Mobile Increasing smartphone penetration Data Traffic (Petabyte (1) per Month) 675 Adoption of emerging / embedded devices Continued development of mobile Internet applications Nearly Doubles Each Year Importance of network speed and quality to cu
Slide 10: Balance Sheet Flexibility Allows Focus on Accretive Investments
Balance Sheet Flexibility Allows Focus on Accretive Investments(1) No significant debt maturities until 2014 ($ in millions) $2,258 $1,670 $1,436 $625 $516 $23 $24 $25 $19 $20 $60 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 After (1) Excludes capital leases and other obligations; where applica
Slide 11: Growth Through Execution and Capital Allocation
Growth Through Execution and Capital Allocation Combination of strong operating execution and $2.54 focused investments in $1.64 acquisitions and capital expenditures Since 2004, Crown has spent $2.3 billion on share purchases reducing share count by 30% $0.58 $0.32 (1) (2) 2004 RCF/Share Share
Slide 12: Strategic Priorities Remain Unchanged
Strategic Priorities Remain Unchanged Maximize Long-Term Recurring Cash Flow per Share 2011E Investment Capacity ($ in millions) Effectively allocate Leverage existing capital by making assets to drive accretive organic growth Total: Over $1 Billion investments Revolver Capacity & Available Ma
Slide 13: Section 2: Industry Outlook
VASRHP Section 2 Industry Outlook
Slide 14: Increasing Adoption of Data-Intensive Devices
Increasing Adoption of Data-Intensive Devices… Increasing adoption of data-intensive devices is expected to drive mobile data growth… Smartphone penetration Device Penetration(1) Average Data Usage (MB per month) 7,000 Emerging / 4% Penetration 7% embedded of data devices 20% intensive devices to 9%
Slide 15: And New and Improved Mobile Internet Applications
…And New and Improved Mobile Internet Applications… …as new and existing applications are embraced Smartphone penetration Forecasted North America Mobile Data Traffic (PB per month) Emerging / 675 embedded devices Mobile Internet 416 applications 235 Network 188 speed and quality 49 17 '09 '10 '11E
Slide 16: Lead to Strong Demand for Wireless Investments
…Lead to Strong Demand for Wireless Investments U.S. Wireless Capital Expenditures(1) Number of U.S. Cell Sites(2) ($ in billions) (in thousands) Smartphone penetration $27.3 $25.3 286 $24.8 275 $21.1 262 Emerging / 247 embedded devices Mobile Internet applications Network speed and '09 '10 '11E '12
Slide 17: Crown Castle is Well-Positioned to Capture Future Growth
Crown Castle is Well-Positioned to Capture Future Growth % of Towers in Top 100 BTAs(1) Attractive Tower …of U.S. towers located in top 100 BTAs(1), largest 71% 71% tower operator in the U.S. 62% 52% Footprint CCI AMT SBAC Site Rental Revenue ($bn) Long-Term Contracted $15.3 ~8 …weighted average
Slide 18: Appendix
VASRHP Appendix
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Crown Castle International Corp. Non-GAAP and Other Reconciliations NON-GAAP FINANCIAL MEASURES This presentation includes presentations or discussions of recurring cash flow and Adjusted EBITDA, which are non-GAAP financial measures. Crown Castle defines Adjusted EBITDA
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA, recurring cash flow, and recurring cash flow per share for Crown Castle for the years ended December 31, 2004, December 31, 2005, December 31, 2006, December 31, 2007, December 31, 2008, December 31, 2009, December 31, 2010, and December 31, 2011 are comp
Slide 21: Other Calculations
Other Calculations Site Rental Gross Margin and Site Rental Gross Margin Percent for Crown Castle for the years ended December 31, 2004, December 31, 2005, December 31, 2006, December 31, 2007, December 31, 2008, December 31, 2009, December 31, 2010, and December 31,2011 are computed as follows: (in
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