Vantage Towers Ag · HAM:VTWR
Vantage Towers — Merger or Acquisition (January 2021)
24 slides from Vantage Towers's merger presentation, Jan 11, 2021
Slide 1: Growing Vantage Towers in the UK
Growing Vantage Towers in the UK Commercialisation of Cornerstone agreed 11 January 2021
Slide 2: Strengthening our leadership position in European towers
Strengthening our leadership position in European towers Macro sites (tenancy ratio)1 Commercialising Cornerstone 50% 14.2k (2.0x) – #1 UK tower operator3 – 2 strong anchor tenants with 1.3k (1.5x) 19.1k (1.2x) network sharing partnership 3.8k (1.1x) – A preferred supplier for new sites to both Voda
Slide 3: Commercialising the UK tower infrastructure leader Cornerstone
Commercialising the UK tower infrastructure leader Cornerstone Cornerstone has agreed long-term MSAs with Vodafone and TEF UK who will continue their network sharing partnership on its grid • Commercialisation of Cornerstone and contribution of Macro sites 14.2k Vodafone’s 50% co-controlling shareho
Slide 4: #1 operator in the UK with two strong anchor tenants
#1 operator in the UK with two strong anchor tenants #1 tower operator in the UK Anchor tenant relationship with Vodafone and TEF UK Tenancy ratio 2.0x 1.5x1 n.a. n.a. n.a. n.a. Share of total 31% 30% 22% 17% subs (%)3 Market share2 41% 23% 21% 9% 6% 1% Subs / PoPs 1.4 1.4 1.0 1.0 ('000)3 Mobile mar
Slide 5: Portfolio well positioned to benefit from expected demand
Portfolio well positioned to benefit from expected demand Attractive portfolio characteristics Cornerstone's macro sites by geo-type1 Nationwide, well balanced coverage, with macro sites in London attractive, premium locations for optimal coverage – strong 16% position in London and urban in particu
Slide 6: MSAs materially consistent with Vantage Towers consolidated markets
MSAs materially consistent with Vantage Towers consolidated markets Contracted cash flows • MSA term: 8+8+8+8 years1 In-built growth • Inflation-linked growth (CPI floor: 0% / CPI cap: 3%) • Upfront commitment of ~1,200 new macro sites2 by FY25 and ~1,950 new passive tenancies on existing New macro
Slide 7: FY20 adjusted pro forma KPIs and financials
FY20 adjusted pro forma KPIs and financials Historical performance 77% GBT1 ~1,200 Long-term contracted revenue with anchor tenants ~14,200 2.01x committed new − Vodafone UK and TEF UK represent 96% of revenue (ex. pass through macro sites1 23% RTT1 tenancy ratio1 macro sites revenue) Key financials
Slide 8: Business outlook | Growth, visibility and cash flow
Business outlook | Growth, visibility and cash flow Medium-term targets Commitments New macro sites by FY25 Revenue (ex. pass-through)1 • Low single digit CAGR ~1,200 (o/w 950 due to New macro sites unwinding3) RFCF • Mid single digit CAGR New passive tenancies on ~1,950 existing macro sites by New
Slide 9: Key takeaways
Key takeaways 1 Footprint extended with #1 tower operator in the UK 2 Vantage Towers now a leader in 9 of our 10 markets 3 2 strong anchor tenants with network sharing partnership 4 Consistent with strategic and capital allocation framework 9
Slide 10: Vantage Towers | Our story
Vantage Towers | Our story 1 A leading European tower infrastructure operator 2 Benefitting from strong and resilient underlying demand within an evolving towers market 3 Top tier, highly rated customer base, secured with network sharing agreements 4 Growth platform underpinned by long-term, inflati
Slide 11: Appendix - additional information on Cornerstone
Appendix - additional information on Cornerstone 11
Slide 12: Additional macro sites and tenancies | Reconciliation
Additional macro sites and tenancies | Reconciliation Additional macro sites by FY25 Additional passive tenancies by FY25 On existing n.a. 1,950 macro sites Unwinding1 On new 950 950 macro sites SRN 150 Up to 450 Other committed new macro 100 Up to 200 sites Total 1,200 Up to 3,550 Note 1 Additional
Slide 13: Leases | ECC provides for potentially significant cost reductions
Leases | ECC provides for potentially significant cost reductions ECC is expected to reduce ground lease costs in the UK for mobile tower operators over time as new leases are entered into and existing leases are renewed, with Cornerstone retaining a 30% share ~40% of contracts are up for renewal ov
Slide 14: Adj. EBITDA and Adj. EBITDAaL | Reconciliation
Adj. EBITDA and Adj. EBITDAaL | Reconciliation FY20PF H121PF £m Staff cost Staff cost Pro forma Reported capitalisation Pro forma Adjusted1 Pro forma Reported capitalisation Pro forma Adjusted1 Total revenue 347 347 177 177 Opex (incl. pass-through) (106) (12) (118) (57) (6) (63) Adj. EBITDA 241 (12
Slide 15: Appendix – Vantage Towers post Cornerstone commercialisation
Appendix 2 – Vantage Towers post Cornerstone commercialisation 15
Slide 16: Impact on Vantage Towers | Key metrics
Impact on Vantage Towers | Key metrics Cornerstone adds 14.2k macro sites and €62m to Vantage Towers' FY20PF aggregated Adj. EBITDAaL Co-controlled Fully-owned segments operations2 Germany Spain Greece1 Other European Consolidated INWIT Cornerstone Aggregated 4,5 Markets (33.2% (50.0% €m (unless sta
Slide 17: A leader in scale and geographic diversification
A leader in scale and geographic diversification 82k 84k3 # of macro 40k sites1,2 35k 78k4 23k 22k VT Cellnex Orange DT Telxius INWIT # of 12 European 10 8 countries in which 2 2 present2 1 VT Cellnex Orange DT Telxius INWIT Revenue Telecom, Telecom and mix ~100% telecom5 broadcasting and 100% telec
Slide 18: A leader in 9 of our 10 markets with a high quality portfolio
A leader in 9 of our 10 markets with a high quality portfolio to attract new tenants Vantage Towers market position 2 4 2 2 Rank1 11 22 11 2 1 1 2 1 2 2 4 1 22.1 Macro 19.1 sites 14.2 ('000, FY20PF) 8.8 4.9 3.8 3.5 2.2 1.9 1.3 IT DE UK ES GR CZ PT HU RO EIR Source Company information as of 30-Sep-20
Slide 19: Basis of preparation (1/2)
Basis of preparation (1/2) Introduction The financial information presented above sets out certain summary pro forma financial results for Cornerstone Telecommunications Infrastructure Limited (“Cornerstone”) for the twelve months ended 31 March 2020 and the six months ended 30 September 2020. The p
Slide 20: Basis of preparation (2/2)
Basis of preparation (2/2) KPIs and financial terms KPIs are generally aligned with Vantage Towers KPIs as disclosed at the Vantage Towers Capital Markets Day on 17 November 2020. A number of Alternative Performance Measures (“APMs”) are presented in this announcement, which are used in addition to
Slide 21: Disclaimer (1/3)
Disclaimer (1/3) IMPORTANT: The following applies to this document, which has been prepared by Vantage Towers GmbH (the “Company” and together with its subsidiaries and those entities to become its subsidiaries, the ”Group”) in connection with the Group’s acquisition of Vodafone Group Plc's shares i
Slide 22: Disclaimer (2/3)
Disclaimer (2/3) The Information is provided at the date of this document and is subject to change without notice. In providing access to the Information, none of the Company, Vodafone or any of their respective Representatives or any other person undertakes any obligation to provide the attendee or
Slide 23: Disclaimer (3/3)
Disclaimer (3/3) The Information is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or re
Slide 24: Key contacts
Key contacts https://www.vantagetowers.com/investors www.vodafone.com/investors ir@vodafone.co.uk 1 Kingdom Street, London, W2 6BY Matthew Johnson • Director • Group IR • matthew.johnson@vodafone.com Daniel Morris • Deputy Director • Group IR • daniel.morris@vodafone.com
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