Cellnex Telecom S.a. · BME:CLNX
Cellnex Telecom — Cellnex Telecom Sa Ord — H1 2024 Earnings Presentation
30 slides from Cellnex Telecom's earnings presentation, Aug 1, 2024
Slide 1: 2024 Results Presentation January – June 2024
Other Relevant Information in compliance with article 227 of Law 6/2023 on the Spanish Securities Market and Investment Services, notified to the Spanish National Securities Market Commission 2024 Results Presentation January – June 2024 1st August 1
Slide 2: Disclaimer
Disclaimer This presentation contains a brief summary of the information disclosed in the Interim Condensed Consolidated Financial Statements and Consolidated Interim Directors’ Report for the 6-month period ended on 30 June 2024 (prepared in accordance with IAS 34 “financial reporting”). Therefore,
Slide 3: An unconditional commitment to our Next Chapter objectives
An unconditional commitment to our “Next Chapter” objectives 1 Prioritizing deleveraging, capital discipline and shareholder remuneration Advanced negotiations after having received binding offers for Austria c.€971Mn cash proceeds from Ireland deal to be received upon closing. Process on track with
Slide 4: Solid performance of key metrics in the period
An unconditional commitment to our “Next Chapter” objectives 2 Solid performance of key metrics in the period +9.3% new organic PoPs vs. H1 2023 (+6.3% equivalent) Total revenues ex-pass throughs €1,921Mn (+7.1% vs. H1 2023). Organic revenues growth +7.4% (1) EBITDAaL €1,114Mn (+8.4% vs. H1 2023). O
Slide 5: Securing accretive agreements with clients and operational excellence
An unconditional commitment to our “Next Chapter” objectives 3 Restless focus on securing accretive agreements with clients and operational excellence Limited impact from MNO consolidation processes in Europe and potential value co-creation opportunities with clients Enhanced renewal of CTIL contrac
Slide 6: Business
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Slide 7: H1 2024 Key Highlights
H1 2024 Key Highlights 1 2 3 4 5 6 New Sites (1) New Co-locations Organic Revenues Efficiencies Organic EBITDAaL FCF Growth Growth 2,353 4,668 €134Mn €65Mn +10.7% €49Mn Remarkable growth Solid performance +7.4% organic Cumulative savings Strong control on Backed by strong in France and in Portugal a
Slide 8: H1 2024 Performance: Key financial metrics
H1 2024 Performance Key financial metrics Revenues Adjusted EBITDA (excluding pass-through) 1,795 1,921 +7.4% Organic 1,490 1,578 +8.9% Organic +c.7% +c.6% 83% (1) 82% (1) €Mn €Mn H1 2023 H1 2024 H1 2023 H1 2024 EBITDAaL RLFCF 1,028 1,114 +10.7% Organic +c.8% 741 781 +c.5% 57% (1) 58% (1) 41% (1) 41
Slide 9: H1 2024 Performance: Key operational metrics
H1 2024 Performance Key operational metrics New Total PoPs (including BTS) +9.3% New co-locations +6.2% YoY YoY Eq PoP 6,589 Eq PoP +6.3% Eq +3.0% Eq 4,136 4,844 4,951 2,306 3,390 1,655 3,024 1,278 3,003 3,026 713 2,367 2,002 1,524 1,255 1,365 1,572 974 582 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2
Slide 10: Organic revenue growth
H1 2024 Performance Organic revenue growth Organic revenue growth +7.4% 65 1,928 -7 1,921 30 39 1,795 €Mn Revenues (1) Escalators & CPI Co-location BTS Organic Change of Revenues (1) H1 2023 Revenues perimeter & others H1 2024 (1) Excluding pass-through 10
Slide 11: Organic revenue growth – Business lines
H1 2024 Performance Organic revenue growth – Business lines +c.7% Organic Towers 48 1,591 -18 +c.6% 22 1,573 34 1,486 ARPT (1) €25.6k end H1 23 €27.3k end H1 24 €Mn Revenues Escalators & CPI Co-location BTS Organic Change of Revenues H1 2023 Revenues perimeter & others H1 2024 Fiber, Connectivity &
Slide 12: Efficiencies plan – Optimization of ground leases on track
H1 2024 Performance Efficiencies plan – Optimization of ground leases on track Payment of leases Cumulative efficiencies/synergies CMD 110,915 sites beginning of period +2,301 net site additions during the period +lease efficiencies 462 464 2021-2025 (c.€90-100Mn) c.150-160 c.90-100 €Mn c.75 65 54 3
Slide 13: Free Cash Flow
H1 2024 Performance Free Cash Flow €Mn Jan-Jun Jan-Jun Jan-Jun Jan-Jun 2023 2024 2023 2024 Towers 1,486 1,573 Recurring Levered FCF 741 781 Fiber, Connectivity & Housing Services 78 96 Expansion Capex -197 -198 DAS, Small Cells and RAN 105 123 Tower Expansion Capex -142 -128 Broadcast 125 129 Other
Slide 14: Debt Maturities Profile – New Investment Grade bond issuance
H1 2024 Performance Debt Maturities Profile – New Investment Grade bond issuance 4,000 3,886 2024 maturities fully repaid 150 2025 maturities at variable cost partially repaid with recent bond issuance 700 3,000 Liquidity c.€3.9Bn: c.€0.6Bn cash (2) and 850 2,311 c.€3.2Bn undrawn credit lines 2,20
Slide 15: Annex
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Slide 16: Balance Sheet
Balance Sheet €Mn Dec Jun Dec Jun 2023 2024 2023 2024 Non Current Assets 40,623 39,678 Shareholders’ Equity 15,147 14,849 Property, plant and equipment 11,667 11,818 Non Current Liabilities 25,687 25,252 Intangible assets 24,700 23,307 Bank borrowings and bond issues 17,806 17,471 Right-of-use asset
Slide 17: Income Statement
Income Statement €Mn Jan-Jun Jan-Jun 2023 2024 Revenues 2,001 2,119 Operating Expenses -511 -542 Non-recurring expenses and non-cash items -44 -28 Depreciation & amortization -1,309 -1,344 Impairment losses on assets 0 -402 a Results from disposals of fixed assets 1 59 Operating Profit 139 -137 The
Slide 18: Frequently Asked Questions
Frequently Asked Questions
Slide 19: Next Chapter: Our value creation roadmap
Our value creation roadmap 3. Disciplined approach to capital allocation 2024+ Articulate investments by 2. Shareholder value Golden Rules Leverage target of 5.0-6.0x Net – Return > WACC + Risk Next Chapter Debt / EBITDA by 2025-2026 premium (country, business, Available >€10Bn cumulative cash safet
Slide 20: 5G coverage and data traffic to underpin our organic growth prospects
5G coverage and data traffic to underpin our organic growth prospects Room for growth from 5G coverage More data traffic will lead to long-term growth 5G coverage per country (2023, % population covered) Data traffic per user (GB) Throughput increase 100 requires more telecom AR/ infrastructure 90 V
Slide 21: A restless focus on lease management
A restless focus on lease management Lease cost optimization c.8% savings vs. inertial cost base Lease cash-out bridge Accelerate lease cost optimization c.-8% Enhance our lease efficiency program to increase savings rate c.+19% LandCo creation Launch a vehicle for land acquisition acceleration Site
Slide 22: Disciplined capital allocation framework to maximize value creation
Disciplined capital allocation framework to maximize value creation and shareholder return Cumulative cash until 20301 c.€3Bn >€10Bn Minimum dividend Triggered by value accretion AGM approval in Share buyback Tax efficient2 place for up to 10% “Per share metrics” enhancing3 Disciplined approach base
Slide 23: Financial outlook
Financial outlook €Mn 2023 2024E1 2025E1 2027E1 CAGR (23-27E) Revenues (ex pass-through) 3,659 3,850 – 3,950 4,100 – 4,200 4,500 – 4,700 +6% Adjusted EBITDA 3,008 3,150 – 3,250 3,400 – 3,500 3,800 – 4,000 +7% EBITDAaL 2,157 2,850 – 3,050 +8% RLFCF 1,545 1,650 – 1,750 2,000 – 2,050 2,100 – 2,300 +9%
Slide 24: ESG – Key initiatives
ESG – Key initiatives Roadmap for integration of ESRS requirements into the group’s ESG strategy and Action Plan In progress Double Materiality validation and update of ESG related policies Value Chain Strategic Plan ESG reporting & monitoring system To establish a strategic plan and a value To esta
Slide 25: ESG – Sustainability ratings
ESG – Sustainability ratings Data as of June 2024 S&P Global MSCI FTSE4Good Corporate Sustainability Assessment (CSA) ESG Rating Max: 5 Max: 100 Min: 0 Max: AAA Min: 0 100 Min: CCC 81 81 AAA 5.00 4.4 4.2 4.4 4.3 4.3 4.3 AA 73 3.6 3.8 80 66 AA 4.00 60 A A 53 57 60 A BBB 3.00 40 BBB BB BB +20% 2.00 +5
Slide 26: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition Adjusted EBITDA Adjusted EBITDA relates to the “Operating profit” before “Depreciation, amortization and results from disposals of fixed assets” and after adding back certain non-r
Slide 27: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition EBITDAaL Margin EBITDAaL Margin corresponds to EBITDAaL, divided by "Services (Gross) excluding Utility Fee". Thus, it excludes elements passed through to customers from both expen
Slide 28: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition Net Financial Debt The Net Financial Debt corresponds to “Gross Financial Debt” less “Cash and cash equivalents” and "Other financial assets". Together with Gross Financial Debt, t
Slide 29: Non-IFRS and Alternative Performance Measures (APMs)
Non-IFRS and Alternative Performance Measures (APMs) This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, alternative performance measures (“APMs”) as defined i
Slide 30: H1 2024 Results
H1 2024 Results Supplemental Materials (XLS) https://www.cellnex.com/investor-relations/financial-information/#shareholders-investors-quarterly-results Essential information available on the Investor Relations section of Cellnex’s website 30
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