Slide 1: IHS Towers 2Q24 Earnings Results
IHS TOWERS 2Q24 EARNINGS RESULTS # AUGUST 13, 2024 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: Presenting Today
PRESENTING TODAY Sam Darwish Steve Howden Chairman & CEO Executive Vice President & CFO 3
Slide 4: IHS Track Record
IHS TRACK RECORD One of the world’s largest independent and multinational owners, operators, and developers of shared communications infrastructure Revenue Adjusted EBITDA(4)(5) $M $M • Capitalize on significant growth opportunities in +14.6% existing markets Revenue CAGR 2019-2023 • Optimize utiliz
Slide 5: 2Q24 Performance
2Q24 PERFORMANCE Revenue Adjusted EBITDA & ALFCF(1) $M $M • In 2Q24, constructed 207 towers, added (20.3%) (11.9%) net 385 tenants, and added net 1,566 2Q24 Revenue 2Q24 Adjusted EBITDA lease amendments Growth Y/Y Growth Y/Y +69.3% (9.6%) • 2Q24 Revenue of $435M increased by 4% Q/Q 2Q24 Organic Reve
Slide 6: IHS Global Tower Portfolio
IHS GLOBAL TOWER PORTFOLIO In 2Q24, we built +207 towers including +136 in Brazil 40,332 3rd Largest Towers on 3 Continents (1) Independent Multinational TowerCo Globally By Tower Count (1) Egypt(2) - 222,415 Africa and the Middle East Kuwait 1,676 Nigeria 16,345 113,216 Cameroon 2,419 Rwanda 1,443
Slide 7: All IHS-MTN Tower MLAs Renewed and Extended
ALL IHS-MTN TOWER MLAs RENEWED AND EXTENDED • Total MTN Tenancies: 13,440 | Expire Dec. 2032 Nigeria(1) • Total IHS Tenancies: 25,126 • Total MTN Tenancies: 1,942 | Expire Mar. 2033 Cameroon • Total IHS Tenancies: 3,834 • Total MTN Tenancies: 1,285 | Expire Apr. 2034 Rwanda • Total IHS Tenancies: 2,
Slide 8: Highlights
HIGHLIGHTS Strategic Review Governance Progress MTN Commercial Update • The review remains ongoing – firmly targeted at value-creation options • At our 2024 Annual General Meeting (AGM) held on June 28, 2024, the • All MTN tower Master Lease Agreements (MLAs) have been proposals, including to amend
Slide 9: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY Sustainability Initiatives in 2Q24 Our Strategy Four-pillar Sustainability Strategy • Ethics and governance Ethics and Environment and Education and Our people and • Environment and climate change • Education and economic growth governance climate change economic growt
Slide 10: Consolidated Results Snapshot
CONSOLIDATED RESULTS SNAPSHOT 2Q23 2Q24 Y/Y Towers (#) 39,298 40,332 2.6% Tenants (#) 58,447 60,382 3.3% Colocation Rate 1.49x 1.50x 0.01x Lease Amendments (#) 34,234 38,692 13.0% In US$M, unless stated Revenue 546 435 (20.3%) Adjusted EBITDA 285(1) 251 (11.9%) Adjusted EBITDA margin 52.1%(1) 57.6%
Slide 11: Updated and De-risked Power Exposure
UPDATED AND DE-RISKED POWER EXPOSURE Illustrative Revenue by Linked Contract Split after Power Exposure by Country renewal of all contracts with MTN Nigeria Country Power Indexation Power Pass-Through 46% USD Nigeria Actual 2Q24 Contract Split 12% EUR Brazil 9% Power 33% Local Currency South Africa(
Slide 12: 2Q24 Consolidated Revenue Walk
2Q24 CONSOLIDATED REVENUE WALK 2Q24 Revenue $M Total Growth Total Growth ($111M) or (20.3%) Organic Growth +$379M or +69.3% (20.3%) ($111M) Organic Growth 23 16 11 14 0 +69.3% +$379M 321 4 0.5 (-44 44) 33 Organic Growth 546 by Segment 435 (490) +105.1% Nigeria (4.7%) SSA +1.5% Latam 6.1% 58.8% 0.8%
Slide 13: Consolidated Revenue and Adjusted EBITDA
CONSOLIDATED REVENUE AND ADJUSTED EBITDA Revenue $M 546 2Q24 Revenue 510 48 10 467 Growth Rate Y/Y 54 11 418 435 52 10 (20.3%) 123 11 124 48 11 46 133 108 131 ($111M) 365 321 271 228 270 • 2Q24 Revenue increased by 4% Q/Q 2Q23 3Q23 4Q23 1Q24 2Q24 Revenue Growth Y/Y +16.8% (10.4%) (3.1%) (30.7%) (20.
Slide 14: Adjusted Levered Free Cash Flow and Capex
ADJUSTED LEVERED FREE CASH FLOW AND CAPEX Adjusted Levered Free Cash Flow (1) $M 2Q24 Adjusted Levered (2) 118 Free Cash Flow 74 86 67 $67M 43 • 2Q24 ALFCF increased by 56% Q/Q 2Q23 (2) 3Q23 (2) 4Q23 1Q24 2Q24 • 2Q24 ALFCF decreased (9.6%) Y/Y ALFCF Cash Conversion Rate +26.0% +36.0% +43.1% +23.3% +
Slide 15: 2Q24 Segment Performance Highlights
2Q24 SEGMENT PERFORMANCE HIGHLIGHTS Revenue and segment Adjusted EBITDA in $M 2Q23 2Q24 Y/Y Towers 16,398 16,345 (0.3%) Nigeria Tenants 25,798 26,196 1.5% Lease Amendments 32,496 34,707 6.8% Revenue 365 270 (26.1%) Segment Adjusted EBITDA 219(1) 171 (21.9%) Segment Adjusted EBITDA Margin % 60.2%(1)
Slide 16: Towers and Tenants
TOWERS AND TENANTS Towers (in ‘000s) Towers Built 39.7 40.1 40.3 40.3 438 39.3 1.5 1.7 1.7 1.7 1.7 415 12 18 7.4 7.7 8.0 8.1 8.2 278 14.0 14.1 14.1 14.1 10 321 13.9 294 216 207 4 2 175 161 151 16.4 16.4 16.4 16.4 16.3 51 48 77 54 39 32 45 26 12 22 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24 2Q24 Ni
Slide 17: Debt Profile
DEBT PROFILE Consolidated Net Leverage Ratio Debt and Net Leverage Debt Maturity Profile (2) as of June 30, 2024 $M 3.9x $M As of Mar. 31, 2024 As of June 30, 2024 8.000% Senior Notes due 2027 940 940 1,114 • Continue to target net leverage 5.625% Senior Notes due 2026 500 500 ratio of 3-4x 147 6.25
Slide 18: 2024 Guidance
2024 GUIDANCE 2024 Guidance – as revised on August 7, 2024 Key Points Previous Range Metrics Current Range Revenue Guidance (May 14, 2024) • Implies organic growth of ~48% (at the mid-point) Revenue $1,670M - $1,700M $1,700M - $1,730M • Includes impact from the renewal and extension of all tower con
Slide 19: FX Overview
FX OVERVIEW Revenue by Reporting Currency (1) Revenue by Linked Contract Split 2Q24 2Q24 62% 15% (2) 11% 4% 46% 12% (2) NGN EUR BRL ZAR USD EUR 3% 3% 3% 33% 9% ZMW RWF KWD Local Currency Power (3) Assumed in 2024 Guidance FX Rates Interest Rates (4) 1,610 5.00 0.90 23.70 1,375 0.30 4,150 3.75 19.00
Slide 20: Appendix
APPENDIX IHS = 0
Slide 21: 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) 2023 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 22: Oil Impact on Our Business
OIL IMPACT ON OUR BUSINESS Power Solutions as at Dec 31, 2023 (1) Diesel $M Oil Impact • For the last several years, IHS has added hybrid (solar/battery) powered solutions. As part of 911 our Carbon Reduction Roadmap, we expect to 813 continue to upgrade a portion 792 of towers in our portfolio, 766
Slide 23: 2Q24 Revenue Overview
2Q24 REVENUE OVERVIEW Our key customers consist of the largest MNOs in the markets where we operate 2Q24 Revenue by Key Customer 2Q24 Revenue by segment 61% MTN 15% Airtel 7% TIM 6% Orange 62% Nigeria 3% Zain 25% SSA 2% Claro 2% Vivo 11% Latam 1% Telkom 3% MENA <1% 9mobile <1% Tigo <1% Oi (Fixed) Cu
Slide 24: IHS Market Data
IHS MARKET DATA We are the leader in market share in 7 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 16,345 1st 64% 3 out of 4 South Africa 5,691 1st 50% 2 out of 4 Côte d’Ivoire 2,686 1st 100% 3
Slide 25: 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 1.4% 2.3% 17.2% 22.1% 809 254 12.8 7.8 754 226 5.8 2.9 2023 2028E 2023 2028E 2023 2028E 2023 2028E All IHS Markets(1) Nigeria All IHS M
Slide 26: 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) June 30, 2023(1) Sep 30, 2023(1) Dec 31, 2023 Mar 31, 2024 June 30, 2024 June 30, 2023(1) Mar 31, 2024 June 30, 2024 (Loss)/income (1,270,326)
Slide 27: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from (loss)/income for the period to Adjusted EBITDA 2019 2020 2021 2022(1) 2023(1) ($000s) (Loss)/income (423,492) (322,682) (26,121) (468,966) (1,988,178) Divided by total revenue 1,231,056 1,403,149 1,579,730 1,961,299 2,125,539 (Loss)/income margin (
Slide 28: 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) June 30, 2023(1) Sep 30, 2023(1) Dec 31, 2023 Mar 31, 2024 June 30, 2024 Cash from operations 259,098 229,912 162,054 92,984 151,596 Net m
Slide 29: Currency Overview
CURRENCY OVERVIEW Average Period End Spot Currency FY22 2Q23 3Q23 4Q23 1Q24 2Q24 FY22 2Q23 3Q23 4Q23 1Q24 2Q24 Nigeria (Naira) - USD:NGN NAFEX 428 508 768 815 1,316 1,392 462 753 776 912 1,394 1,514 European Union (Euro) - USD:EUR 0.95 0.92 0.92 0.93 0.92 0.93 0.94 0.92 0.95 0.91 0.93 0.93 Zambia (K
Slide 30: Glossary of Terms
GLOSSARY OF TERMS Adjusted EBITDA (including by segment): income/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, impairment of goodwill, business combination transaction costs, impairment
Slide 31: Glossary of Terms
GLOSSARY OF TERMS LTM Pro Forma Adjusted EBITDA: Adjusted EBITDA for the applicable four consecutive fiscal quarters as further adjusted to give pro forma effect (as determined in good faith by management and may, with respect to acquisitions, include anticipated cost synergies and expense and cost
Slide 32: IHS Towers Investor Relations
IHS Towers Investor Relations investorrelations@ihstowers.com