Ihs Holding Limited · NYSE:IHS
Ihs — ESG Presentation (October 2022)
24 slides from Ihs's sustainability presentation, Oct 24, 2022
Slide 1: Carbon Reduction Roadmap
Carbon Reduction Roadmap October 24, 2022
Slide 2: Important Notice and Forward-Looking Information
IMPORTANT: The following applies to this document, the oral presentation of the information in this document, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). In accessing the Information, you agree to be bound by the following terms and condi
Slide 3: Presenters
SAM DARWISH WILLIAM SAAD STEVE HOWDEN COLBY SYNESAEL Chairman & CEO Executive Vice President Executive Vice President Senior Vice President of & COO & CFO Communications 3
Slide 4: Contents
EXECUTIVE SUMMARY 5 WHO WE ARE & WHAT WE DO 6 PROJECT GREEN 13 CARBON FOOTPRINT & TARGET 18 GOING FORWARD 22 GLOSSARY 23 4
Slide 5: Executive Summary: Project Green and Near-Term Goal
Our Near-Term Goal We aim to reduce our kWh emissions intensity 1 The Projected Results of by approximately 50% by 2030 (Scope 1 and Project Green2 Scope 2). How We’ll Get There Expected annual RLFCF • The largest source of our emissions is tower diesel use, which accounts for 85.8% of our savings o
Slide 6: Sustainability is a fundamental value at IHS
“Sustainability is a fundamental value at IHS and a central tenant to our business, approach and stakeholder engagement. We believe that in addition to creating a sustainable business, we have a fundamental duty to protect and enhance our communities and the environments in which we operate. The ben
Slide 7: Sustainability and Core Values
Sustainability Customer Innovation Integrity Boldness Safeguarding the health, safety and wellbeing of Focus Constantly seeking new Being ethical, Being courageous in all stakeholders Understanding and improved ways to transparent and honest expanding existing deliver our products and in everything
Slide 8: Ethics and Governance, Environment and Climate Change
Ethics and Environment and Governance Climate Change Striving to be a best-in-class responsible business Seeking to minimize the impact of our operations and promoting the highest standards everywhere and protect the environment by investing in more we operate, with a focus on conducting business re
Slide 9: How We Power Our Tower Sites
99.7% Grid Power comes from access to the national grid, or independent power producer (IPP). Connecting to the grid reduces our Average power uptime in our diesel consumption on site which lowers overall African businesses.3 emissions. Battery Used to store and supply electricity to the towers We p
Slide 10: We own and operate nearly 40,000 towers across 11 markets
Grid We own and operate nearly 40,000 towers Connected4 across 11 markets in Africa, Latin America Egypt N/A5 and the Middle East.6 Africa and the Middle East Kuwait 87% Across our total tower portfolio, 56% of our sites are connected to the grid; however, Nigeria 4% electricity is not available 24
Slide 11: Technology Penetration and Power Consumption by Technology
Technology Penetration within IHS Markets by Region7 2G 3G 4G 5G % of SIMS Nigeria SSA LatAm MENA All Markets 75.1 44.8 43.9 68.2 84.4 50.3 61.5 76.9 44.2 36.2 30.5 50.9 35.1 35.1 24.7 33.5 24.9 23.1 20.4 16.1 11.0 20.5 18.5 15.7 8.9 10.9 3.4 6.6 8.5 2.4 4.0 3.7 0 1.6 0.1 0.5 0.0 2.6 1.0 0.3 2021 20
Slide 12: We upgraded over 9,000 sites to hybrid in Nigeria in 2016-2018
We upgraded over Power Solutions for African Markets 2021 2025E9 9,000 sites to hybrid in Nigeria in 2016-2018 42% 40% 38% Power Project Investments 28% Managing emissions from tower sites 24% is a critical component of our carbon reduction strategy. We last made a significant investment in hybrid 1
Slide 13: Project Green Markets
Project Green Markets10 Expected Annual RLFCF Savings: Expected Total Capex: Expected Payback: LatAm Ramping to $77M by 2025 $214M (2022-2024) 2.8 years (~75% in opex and ~25% in Brazil, Colombia and Peru are excluded given pass-through/grid maintenance capex) connectivity dynamics South Africa Excl
Slide 14: Annual RLFCF savings of $77M by 2025 and capex forecast
By 2025 we expect to generate annual RLFCF savings of $77M, which over the course of the project equates to an IRR of +30%, making Project Green a highly attractive use of IHS capital. Annual Project Green RLFCF Savings Total Project Green Capex Forecast (~75% in opex and ~25% in maintenance capex)
Slide 15: Cost of Diesel and Diesel Consumption
Cost of Diesel 2021 1H22 Diesel Consumption 2021 1H22 US$M Liters/Millions 33311 225 178 170 All Markets All Markets Diesel Delivery Process Vessel carrying diesel docks Fuel arrives at tank farm. Diesel is loaded onto trucks Diesel is delivered Engineer on IHS site offshore. Smaller vessel will Pro
Slide 16: Assumed Diesel Price and IRR Sensitivity Analysis
While our expectation that we will generate a +30% IRR already assumes the price of diesel will come down over our 12-year planning period, we can still generate attractive returns if the average price of diesel is lower during this time. Assumed Diesel Price12 Average ICE Low Sulphur Gasoil/Metric
Slide 17: Sourcing Strategy
Reduce overall risk by Sourcing Strategy - using suppliers with a mitigates risk and delivers robust track record at the lowest total cost • Either with IHS Towers or other recognized companies Mitigate shipping delays caused by general supply chain issues • Agreeing to shipping terms with suppliers
Slide 18: Scope 1 and Scope 2 Defined
Scope 1 and Scope 2 Defined13 Scope 1 IHS Towers Scope 1 Activities Company Company Emissions from tower and vehicle fleet facilities building diesel generators, LPG, natural gas, refrigerants, vehicle petrol/diesel Scope 2 Scope 2 Emissions from tower grid electricity and office electricity consump
Slide 19: 2021 Carbon Footprint
2021 Carbon Footprint (tCO2e)14 Scope 1: 957,178 The Scope 1 and Scope 215 (location-based) carbon footprint follows the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard (2015). The Scope 1 and Scope 2 (location-based) carbon footprint was 1,013,746 tCO2e in 2021. Emissions
Slide 20: Scope 1 and 2 Emissions Sources and Intensity
Scope 1 and Scope 2 Emissions Sources 85.8% Emissions Intensity16 0.9593 kgCO2e/kWh 6.9% 5.6% 0.9% 0.5% 0.2% 0.1% <0.1% Diesel - Tower Refrigerants Electricity Other Fuels Petrol - Vehicle Diesel - Vehicle Diesel - Offices Gas 1,013,746 tCO2e (16) The CO2e intensity (kgCO2e/kWh) is calculated as the
Slide 21: Target 50% reduction in tower kWh emissions intensity by 2030
We commit to reduce the kWh emissions Target Tower kWh Emissions Intensity17 intensity of our tower portfolio by 50% by 2030. This target encompasses all Scope 1 and Scope 2 energy-related emissions. • With the effects of Project Green, emissions intensity is projected to decrease by 21 22 23 24 25
Slide 22: Project Green Updates and Key Considerations
Project Green Updates • Capex spend and savings updates to be included in earnings releases • GHG emissions to be disclosed annually, in the Sustainability Report Key Considerations • Assumed revenue growth • Grid availability and pricing • Diesel price fluctuations • Integration of new businesses •
Slide 23: Glossary
Capital Expenditure (“Capex”): The additions of property, plant and equipment (including advance payments for such additions) and the purchase of software, as presented in the statement of cash flows. Decarbonization: The process of reducing carbon emissions. Green House Gas Emissions (“GHG” or “Emi
Slide 24: IHS Towers Investor Relations
IHS Towers Investor Relations: investorrelations@ihstowers.com