Ihs Holding Limited · NYSE:IHS
Ihs — IHS Towers — FY2024 Earnings Presentation
54 slides from Ihs's earnings presentation, March 2025
Slide 1: IHS Towers 4Q/FY24 Company Presentation
IHS TOWERS 4Q/FY24 COMPANY PRESENTATION fee MARCH 2025 Towers of strength
Slide 2: Disclaimer
DISCLAIMER Forward-Looking Information This presentation contains forward-looking statements. We intend such forward-looking statements to be covered by relevant safe harbor provisions for forward-looking statements (or their equivalent) of any applicable jurisdiction, including those contained in S
Slide 3: Introduction
INTRODUCTION fHS 3
Slide 4: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Structurally strong business model with long-term contracts and cost pass-through mechanisms providing 1 visibility of revenue Leading independent multinational TowerCo focused on Emerging Markets – #1 in Africa and leading InfraCo 2 in Brazil 3 Highly attractive markets we
Slide 5: A Unique & Compelling Investment Proposition
A UNIQUE & COMPELLING INVESTMENT PROPOSITION SCALE (1) (2) (3) (2)(4) 39,000+ #1 TowerCo +644M ~200,000 Towers In 6 of 8 Population in Incremental PoS forecast markets our 8 markets in next 5 years (2023-2028) FINANCIAL STRENGTH (5) (5)(6) (1) (5)(6) $1.7B $928M 3.7x 54.3% Consolidated Adjusted Cons
Slide 6: IHS Global Tower Portfolio
IHS GLOBAL TOWER PORTFOLIO In 4Q24, we built +313 towers including +217 in Brazil 39,229 5th Largest Towers on 2 Continents (1) Independent Multinational TowerCo Globally By Tower Count (1) Nigeria 16,495 148,097 Cameroon 2,443 Africa Rwanda 1,462 110,155 Zambia 1,875 Côte d’Ivoire 2,682 GD Towers ~
Slide 7: All IHS-MTN Tower MLAs Renewed and Extended
ALL IHS-MTN TOWER MLAs RENEWED AND EXTENDED • Total MTN Tenancies: 13,440 | Expire Dec. 2032 Nigeria(1) • Total IHS Tenancies: 25,126 • Total MTN Tenancies: 1,942 | Expire Mar. 2033 Cameroon • Total IHS Tenancies: 3,834 • Total MTN Tenancies: 1,285 | Expire Apr. 2034 Rwanda • Total IHS Tenancies: 2,
Slide 8: Financial Overview
FINANCIAL OVERVIEW Attractive Revenue and Adjusted EBITDA growth over the last five years Revenue Adjusted EBITDA(4) $M $M 2,126 (3) 48 1,961 (2) 1,133 18 1,031 (2) 48 (3) 1,711 926 18 1,580 (1) (5) 24 61 928 1,403 819 +5.1% Revenue CAGR 2020-2024 +3.2% Adjusted EBITDA CAGR 2020-2024 2020 2021 2022
Slide 9: Business Timeline
BUSINESS TIMELINE IHS has a +23-year old history of operating in emerging markets Tower Builder Managed Services Specialist Tower Ownership & Colocation Africa Scale & Leadership Global Emerging Market Leader Established in #1 Independent Tower Nigeria in 2001 Launch of Colocation Company in Africa
Slide 10: Management Team
MANAGEMENT TEAM Founder-led management team with 125+ combined years of relevant experience X Years of experience Sam Darwish William Saad 25+ Mohamad Darwish 20+ 25+ Chairman & Group CEO EVP & COO EVP & CEO (Nigeria) • Co-founded IHS Towers in 2001 • Co-founded IHS Towers in 2001 • Co-founded IHS T
Slide 11: Board of Directors
BOARD OF DIRECTORS Global, experienced, and diverse board of directors; 89% independent Independent Board Members X Years of experience Board Members Sam Darwish 25+ Frank Dangeard 35+ Nick Land(1) 45+ Co-founder, Chairman & Group CEO Former Chairman and CEO of Thomson (2004 Former Executive Chairma
Slide 12: Business Model
BUSINESS MODEL IHS mene
Slide 13: "DM Like" Business Model in Emerging Markets
“DM LIKE” BUSINESS MODEL IN EMERGING MARKETS Developed market operating model with exception of FX impacts Africa Latam US Model Long-term Contracts Limited Termination Rights Proxy of US$ contracts: (1) Annual Escalators (2) FX Resets N/A Amendment Revenue Negligible Multi-Tenant Discounts High Qua
Slide 14: High Quality, Long-Term Contracts Generating Consistent Cash Flow
IHS TOWERS STRUCTURES HIGH QUALITY, LONG-TERM CONTRACTS, WHICH GENERATE CONSISTENT, LONG-TERM CASH FLOW Significant operating leverage realized from colocation and lease amendments helps accelerate cash flow 1 Long-term Contracts Provide Certainty & Visibility 2 USD/EUR Linked Contracts with Annual
Slide 15: FX and Power Exposure Overview
FX AND POWER EXPOSURE OVERVIEW Revenue by Reporting Currency (1) Revenue by Linked Contract Split Power Exposure by Country Power Power Pass- Country Indexation Through Nigeria Brazil South Africa 4Q24 4Q24 Côte d’Ivoire Cameroon Zambia 59% 15% (2) 10% 6% Rwanda NGN EUR BRL ZAR 28% 13% 20% 39% (2) 4
Slide 16: Significant Operating Leverage
SIGNIFICANT OPERATING LEVERAGE Significant operating leverage realized from colocation and lease amendments helps accelerate cash flow 4 Strong Economic Units 5 Growing Use Fees Through Lease Amendments UNIT ECONOMICS – GROSS MARGIN ($000s)(1) AMENDMENT REVENUE – OPPORTUNITY(2) 60-65% 1. Tenant Gros
Slide 17: FX Resets Impact on Our Business
FX RESETS IMPACT ON OUR BUSINESS FX Resets and CPI Escalators offer effective revenue protection against the impact of currency devaluation USD FX Reset Frequency (1) 2024 CPI By Market (2) How FX resets work • A relevant portion of contracts is tied to a “hard currency” including USD and Euro • We
Slide 18: Oil Impact on Our Business
OIL IMPACT ON OUR BUSINESS Power Solutions as at December 31, 2024 (1) Diesel $M Oil Impact • For the last several years, IHS has added hybrid (solar/battery) powered solutions. As part of our Carbon Reduction Roadmap, we expect to continue to upgrade a portion of towers in our portfolio, including
Slide 19: IHS Market Data
IHS MARKET DATA We are the leader in market share in 6 of the markets where we operate Country Towers (1) Towerco Market Position Towerco Market Share (2) Core Tenants (3) # out of # Major MNOs (4) Nigeria 16,495 1st 64% 3 out of 4 South Africa 5,693 1st 50% 2 out of 4 Côte d’Ivoire 2,682 1st 100% 3
Slide 20: IHS Markets Overview
IHS MARKETS OVERVIEW Attractive markets well suited for organic growth Population (million people) Data Usage Per SIM (GB/Month) CAGR 2023 – 2028E CAGR 2023 – 2028E 1.5% 2.3% 24.9% 22.1% 692 254 10.2 7.8 644 226 3.4 2.9 2023 2028E 2023 2028E 2023 2028E 2023 2028E All IHS Markets Nigeria All IHS Mark
Slide 21: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY Sustainability Initiatives in 4Q24 Our Strategy Four-pillar Sustainability Strategy • Ethics and governance • Environment and climate change Ethics and Environment and Education and Our people and • Education and economic growth governance climate change economic growt
Slide 22: Carbon Reduction Roadmap
CARBON REDUCTION ROADMAP Our Carbon Reduction Roadmap goal is to decrease Scope 1 and Scope 2 kWh emissions intensity by ~50% by 2030. For Project Green we spent approximately $209M in capex between 2022 and 2024, and expect to deliver $77M in ALFCF savings by 2025, a 30% IRR on the overall project.
Slide 23: Financial Performance
FINANCIAL PERFORMANCE IHS a
Slide 24: 4Q24 Consolidated Revenue Walk
4Q24 CONSOLIDATED REVENUE WALK 4Q24 Revenue Constant Currency Growth $M Constant Currency Growth +$47M or +9.2% +9.2% +$47M Organic Growth +$200M or +39.3% Organic Growth Total Growth ($72M) or (14.1%) +39.3% +$200M Total Growth 510 (14.1%) ($72M) 438 Organic Growth by Segment +61.5% Nigeria +3.1% S
Slide 25: FY24 Consolidated Revenue Walk
FY24 CONSOLIDATED REVENUE WALK FY24 Revenue Constant Currency Growth $M Constant Currency Growth +$139M or +6.5% +6.5% +$139M Organic Growth +$1,022M or +48.1% Total Growth ($414M) or (19.5%) Organic Growth +48.1% +$1,022M Total Growth 2,126 (19.5%) ($414M) 1,711 Organic Growth by Segment +73.2% Nig
Slide 26: 4Q24 Revenue Overview
4Q24 REVENUE OVERVIEW Our key customers consist of the largest MNOs in the markets where we operate 4Q24 Revenue by Key Customer 4Q24 Revenue by segment 63% MTN 14% Airtel 6% TIM 6% Orange 59% Nigeria 2% Zain 28% SSA 2% Vivo 2% Claro 10% Latam 1% Telkom 2% MENA 1% 9mobile <1% Oi (Fixed) <1% Tigo Cus
Slide 27: Revenue and Adjusted EBITDA
REVENUE AND ADJUSTED EBITDA Annual Revenue Quarterly Revenue $M $M 2,126 1,961 41 36 200 510 160 1,711 1,580 45 435 29 503 54 11 418 420 438 1,403 413 184 22 60 (2) (3) 18 48 11 46 11 13 45 10 30 344 484 124 48 45 313 24 (1) 108 120 124 131 1,352 1,334 1,382 1,334 1,038 1,147 1,123 998 321 228 270 2
Slide 28: Adjusted Levered Free Cash Flow and Capex
ADJUSTED LEVERED FREE CASH FLOW AND CAPEX Annual Adjusted Levered Free Cash Flow (1) Quarterly Adjusted Levered Free Cash Flow (1) 433 $M 43 (3) $M 363 (2) 118 18 107 87 304 67 43 2022 2023 2024 4Q23 1Q24 2Q24 3Q24 4Q24 ALFCF Cash Conversion Rate +35.2% +38.2% +32.8% +43.1% +23.3% +26.7% +35.4% +43.
Slide 29: Debt Profile
DEBT PROFILE Consolidated Net Leverage Ratio Debt and Net Leverage Debt Maturity Profile (2) as of December 31, 2024 $M 3.7x $M As of Sep 30, 2024 As of Dec 31, 2024 8.000% Senior Notes due 2027 940 286 • Continue to target net leverage ratio 5.625% Senior Notes due 2026 500 200 of 3-4x 694 6.250% S
Slide 30: ROIC and Capital Allocation
ROIC AND CAPITAL ALLOCATION ROIC (1) (2) FY24 Capital Allocation $M ROIC As of December 31, 2024 15.8% 15.8% 14.6% In 2024 12.4% $256M • Narrowed focus on capital Capital Allocation allocation 11.0% FY24 9.9% • Built 929 New Sites for $54M • Largely completed investment in Project Green • Continued
Slide 31: Key Performance Indicators
KEY PERFORMANCE INDICATORS 31
Slide 32: IHS Towers Key Performance Indicators
IHS TOWERS KEY PERFORMANCE INDICATORS Towers – Annual +9.0% Towers – Quarterly 2020-2024 CAGR (3) (2)(3) 40,650 40,075(1) 39,229 39,652 40,278 40,332 40,075 31,043 27,807 (2) 39,229 2020 2021 2022 2023 2024 4Q23 1Q24 2Q24 3Q24 4Q24 Tenants – Annual +8.5% Tenants – Quarterly 2020-2024 CAGR (3) 60,382
Slide 33: IHS Towers Key Performance Indicators
IHS TOWERS KEY PERFORMANCE INDICATORS Lease Amendments – Annual +21.9% Lease Amendments – Quarterly 2020-2024 CAGR 39,671 39,671 39,389 36,603 38,692 31,674(1) 27,124 17,983 37,126 36,603 2020 2021 2022 2023 2024 4Q23 1Q24 2Q24 3Q24 4Q24 Lease (1) Lease amendments 4,379 9,141 4,550 4,929 3,068 amend
Slide 34: Markets
MARKETS IHS a)
Slide 35: Nigeria
NIGERIA Entered Market in 2001 | #1 Independent TowerCo | 16,495 Towers (as of 4Q24) Nigeria is the 3rd largest country in Africa by GDP(1). The country has a population of 226 million and is expected to grow to 254 million by 2028. Nigeria’s real GDP is expected to grow at a 3.2% CAGR over the next
Slide 36: South Africa
SOUTH AFRICA Entered Market in 2022 | #1 Independent TowerCo | 5,693 Towers (as of 4Q24) South Africa is the 2nd largest country in Africa by GDP(1). The country has a population of 61 million and is expected to grow to 64 million by 2028. South Africa’s real GDP is expected to grow at 1.5% CAGR ove
Slide 37: Cameroon
CAMEROON Entered Market in 2013 | #1 Independent TowerCo | 2,443 Towers (as of 4Q24) Cameroon is the 15th largest country in Africa by GDP(1). The country has a population of 29 million and is expected to grow to 33 million by 2028. Cameroon’s real GDP is projected to grow at a 4.4% CAGR over the ne
Slide 38: Côte d'Ivoire
CÔTE D’IVOIRE Entered Market in 2013 | #1 Independent TowerCo | 2,682 Towers (as of 4Q24) Côte d’Ivoire is the 9th largest country in Africa by GDP(1). The country has a population of 29 million and is expected to grow to 33 million by 2028. Côte d’Ivoire’s real GDP is projected to grow at a 3.9% CA
Slide 39: Rwanda
RWANDA Entered Market in 2014 | #1 Independent TowerCo | 1,462 Towers (as of 4Q24) Rwanda is the 33rd largest country in Africa by GDP(1). The country has a population of 14 million and is expected to grow to 16 million by 2028. Rwanda’s real GDP is projected to grow at a 7.2% CAGR over the next fiv
Slide 40: Zambia
ZAMBIA Entered Market in 2014 | #1 Independent TowerCo | 1,875 Towers (as of 4Q24) Zambia is the 19th largest country in Africa by GDP(1). The country has a population of 21 million and is expected to grow to 24 million by 2028. Zambia’s real GDP is expected to grow at 4.7% CAGR over the next five y
Slide 41: Brazil
BRAZIL Entered Market in 2020 | #4 Independent TowerCo | 8,326 Towers (as of 4Q24) Brazil is the largest country in Latin America by GDP(1). The country has a population of 211 million people and is expected to grow to 216 million by 2028. Brazil’s real GDP is expected to grow at a 1.9% CAGR over th
Slide 42: Colombia
COLOMBIA Entered Market in 2020 | 253 Towers (as of 4Q24) Colombia is the 4th largest country in Latin America by GDP (1). The country has a population of 52 million people and is expected to grow to 53 million by 2028. Colombia’s real GDP is expected to grow at a 2.8% CAGR over the next five years.
Slide 43: Appendix
APPENDIX IHS —
Slide 44: Proven, Disciplined M&A Approach
PROVEN, DISCIPLINED M&A APPROACH +32,500 towers acquired in 22 transactions in 3 regions and 10 countries(1) Market Attractiveness Framework (2) Strategic Importance of Investment to IHS Nigeria SSA Kuwait(3) Latam Towers Investment Total Deals 6 10 1 5 Appraisal Framework Total towers acquired 12,8
Slide 45: Financial Reconciliations
FINANCIAL RECONCILIATIONS 45
Slide 46: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 3-month period ended LTM as of LTM as of LTM as of ($000s) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Sep 30, 2024 Dec 31, 2024 Dec 31, 2023 Sep 30, 2024 Dec 31, 2024 (Loss)/income (456,823) (1,557,250) (
Slide 47: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 2020 2021 2022(1) 2023(1) 2024 ($000s) (Loss)/income (322,682) (26,121) (468,966) (1,988,178) (1,644,201) Divided by total revenue 1,403,149 1,579,730 1,961,299 2,125,539 1,711,225 (Loss)/income margin
Slide 48: Adjusted Levered Free Cash Flow Reconciliation
ADJUSTED LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of Cash From Operations for the period Adjusted Levered Free Cash Flow 3-month period ended ($000s) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Sep 30, 2024 Dec 31, 2024 Cash from operations 162,054 92,984 151,596 182,431 348,845 Net movement
Slide 49: Adjusted Levered Free Cash Flow Reconciliation
ADJUSTED LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of Cash from Operations for the period to Adjusted Levered Free Cash Flow 2022 2023 2024 ($000s) Cash from operations 966,874 902,923 775,856 Net movement in working capital 46,240 224,982 158,667 Income taxes paid (51,245) (45,411) (38,6
Slide 50: Reconciliation of Return on Invested Capital
RECONCILIATION OF RETURN ON INVESTED CAPITAL Reconciliation from profit/(loss) for the period to Adjusted EBITDA and Return on Invested Capital 2020 2021(1) 2022(1) 2023 2024 ($000s) Profit/(Loss) (322,682) (26,121) (468,966) (1,988,178) (1,644,201) Adjustments Income tax expense 169,829 17,980 (75,
Slide 51: Glossary of Terms
GLOSSARY OF TERMS IHS =a
Slide 52: Glossary of Terms
GLOSSARY OF TERMS Adjusted EBITDA (including by segment): (loss)/income for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, net impairment/(reversal of impairment) of withholding tax receivables, impairment of goodwill, business combination t
Slide 53: Glossary of Terms
GLOSSARY OF TERMS Lease Amendments: Refers to the installation of additional equipment on a site or the provision of certain ancillary services for an existing Tenant, for which we charge our customers a recurring lease fee. LTM Adjusted EBITDA: Adjusted EBITDA for the most recently ended four conse
Slide 54: IHS Towers Investor Relations
IHS Towers Investor Relations investorrelations@ihstowers.com ihstowers.com