Helios Towers PLC · LSE:HTWS
Helios Towers — Q1 2018 Earnings Presentation
23 slides from Helios Towers's earnings presentation, May 14, 2018
Slide 1: Results Q1 2018
Results Q1 2018 14 May 2018
Slide 2: Agenda
Agenda 1 Executive Summary 2 Financial Results 3 Q&A 1
Slide 3: Helios Towers Team Today
Helios Towers Team Today Kash Pandya Tom Greenwood Manjit Dhillon Chief Executive Officer Chief Financial 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: Year-on-year growth in Revenues and Adj. EBITDA driven by organic demand and Business Excellence
Year-on-year growth in Revenues and Adj. EBITDA driven by organic demand and Business Excellence Program Revenue Growth Adj. EBITDA growth Adj. EBITDA margin expansion +7% +26% +7 ppt 88 89 41 42 46% 47% 83 40% 33 Q1 17 Q4 17 Q1 18 Q1 17 Q4 17 Q1 18 Q1 17 Q4 17 Q1 18 • Revenue for the Q1 18 increase
Slide 6: Group Annualised Adj. EBITDA Evolution
Group Annualised Adj. EBITDA(1) Evolution Margin 35% 35% 39% 38% 40% 40% 42% 46% 47% 164 168 148 133 138 126 127 83 85 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 (1) Calculated as per the bond definition as the most recent fiscal quarter multiplied by 4. This is not a forecast of future r
Slide 7: Strong Pipeline Drove Tenancies up by +4%, Achieving a Tenancy Ratio of 2.01x
Strong Pipeline Drove Tenancies up by +4%, Achieving a Tenancy Ratio of 2.01x for Q1 18 Evolution of towers portfolio Evolution of tenants Evolution of tenancy ratio -0% +4% +0.7x 6,507 6,519 6,485 12,617 12,987 13,063 796 825 839 1,666 1,723 1,751 387 384 384 522 525 525 3,472 3,491 3,495 7,207 7,3
Slide 8: Recent Developments
Recent Developments LSE and JSE Listing Moody’s and S&P rating Ghana – Airtel/Tigo Merger Tanzania Listing • On the 2nd March Helios • During the annual rating • In Feb-18 HTG was awarded a • Recent Tanzanian law for Towers announced its review by our rating agencies, 15 year contract with the netwo
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: Group Q1 2018 Key Highlights
Group Q1 2018 Key Highlights Results Snapshot Financial Summary % % Q1 17 Q4 17 Q1 18 change change • Revenue: +7% Y-o-Y / +1% Q-o-Q In US$m, unless Y-o-Y Q-o-Q otherwise stated • Adj. EBITDA: +26% Y-o-Y / +2% Q-o-Q Revenue 83 88 89 7% 1% • Adj. EBITDA margin: +7ppt Y-o-Y / +1ppt Q-o-Q Adj. EBITDA(1
Slide 11: Q1 2018 Revenue Breakdown
Q1 2018 Revenue Breakdown Q1 2018 Revenue Breakdown by Customer Q1 2018 Revenue Breakdown by FX Other 14% LCY 28% USD 53% Power LCY Africa’s Big 5 15% MNOs 86% XAF/EUR 4% Q1 2018 Revenue Breakdown by Country Commentary Ghana • 86% of FY 17 revenues from Africa’s Big 5 MNOs 12% Congo B 7% • 57% of re
Slide 12: Costs and Margin Analysis
Costs and Margin Analysis Q-o-Q Adj. EBITDA Margin Growth Monthly Tower Cash Flow per Tower ($) (1) 46% 47% +20% 2,752 40% 40% 42% 39% 38% 2,290 35% 35% Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 2017 Q1 2018 Q1 18 Costs Breakdown (excl. depreciation)(2) Commentary Total Cost of Sales:
Slide 13: Capital Expenditure
Capital Expenditure Capex Breakdown ($m) Commentary Capex guidance for 2018 remains at $90m 171 Ongoing maintenance and corporate capex 19 guidance of c.$20-25m per annum 78 90 52 37 1 17 2 11 20 1 8 FY 17 Q1 18 FY18 Forecast Maintenance Corporate Upgrade Growth Acquistions Helios Towers 12
Slide 14: Summary of Financial Debt
Summary of Financial Debt Debt KPIs Gross and Net Leverage ($m) Q1 17 FY 17 Q4 17 Q1 18 -1.2x / +0.4x 5.4x Cash & cash equivalents 289 120 120 90 4.9x Bond 600 600 600 600 4.4x 4.2x 4.1x Lease Obligations + Other (2) 120 115 115 102 3.6x 3.6x 3.2x Gross Debt 720 715 715 702 Net Debt 431 595 595 612
Slide 15: Helios Towers' Story Reinforced
Helios Towers’ Story Reinforced Continued growing customer tenancies MARKET LEADER… Successfully renegotiated Ghana contracts UNIQUE POSITIONING … CONTINUING DELIVERING SUPERIOR +7% Revenue growth Y-o-Y GROWTH LONG-TERM Contracted revenue of in excess of $3.4bn with average CONTRACTS… remaining life
Slide 16: Outlook for 2018
Outlook for 2018 “Continued momentum in our 4 markets driven by strong fundamental macro drivers and reinforced by the Business Excellence Program which is expected to continue to drive margin improvement” Helios Towers 15
Slide 17: Q&A
Q&A
Slide 18: Appendix
YY YD AAYY SA AAD WA_ AAR SA ALY MALY LALY LALLY ALYI LILY SA Appendix
Slide 19: Income Statement
Income Statement ($m) Q1 2017 Q1 2018 Revenue 83.0 88.9 Cost of sales (69.9) (65.8) Gross profit 13.1 23.1 Admin expenses (21.8) (31.3) Loss on disposal of PPE (0.1) (0.4) Operating loss (8.8) (8.6) Investment income 0.0 0.2 Other gains and losses - (9.4) Finance costs (41.1) (25.5) Loss before tax
Slide 20: Balance Sheet
Balance Sheet ($m) FY 2017 Q1 2018 Non–current assets Intangible assets 18.0 17.3 Property, plant and equipment 705.7 714.0 Right–of–use assets 115.3 113.5 Investments 0.1 0.1 Derivative financial assets 23.9 14.5 863.0 859.4 Current assets Inventories 9.5 11.2 Trade and other receivables 108.5 116.
Slide 21: Cash Flow Statement
Cash Flow Statement ($m) FY 2017 Q1 2018 Adj. EBITDA 146.0 42.0 Less: Tax Paid (1.3) - Less: Maintenance and Corporate Capex (22.2) (8.5) Unlevered Recurring Cash Flow 122.5 33.5 % Cash Conversion 83.9% 79.8% Less: Change in Working Capital (16.5) (0.3) Less: Finance costs paid (51.6) (27.2) Less: I
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@heliostowersafrica.com