Helios Towers PLC · LSE:HTWS
Helios Towers — FY2022 Earnings Presentation
36 slides from Helios Towers's earnings presentation, Mar 16, 2023
Slide 1: FY 2022 Results
Strong and resilient delivery in FY 22; enlarged FY 2022 Results platform primed for 16 March 2023 growth and returns in FY 23 and beyond
Slide 2: Helios Towers team today
Helios Towers team today Manjit Dhillon Tom Greenwood Chris Baker-Sams Chief Financial Officer Chief Executive Officer Head of Strategic Finance and Investor Relations Helios Towers FY 2022 Results 2
Slide 3: Agenda
Agenda 1. Highlights 2. Financial Results 3. Q&A Helios Towers FY 2022 Results 3
Slide 4: Highlights
Highlights Helios Towers FY 2022 Results 4
Slide 5: Highlights
HIGHLIGHTS FINANCIAL RESULTS Highlights Strong, resilient financial delivery in FY 22, with well-invested platform primed for accelerated growth and returns in FY 23 and beyond 1 2 3 4 FY 22: STRONG FY 22: RECORD SITE FY 23: ACCELERATED FY 23: CAPEX FOCUSED FINANCIAL DELIVERY AND TENANCY GROWTH GROW
Slide 6: Key phase of inorganic expansion complete and strong start in all new markets
HIGHLIGHTS FINANCIAL RESULTS Key phase of inorganic expansion complete and strong start in all new markets Market Closing date Local leadership Sites Tenancy ratio LQA Adj. EBITDA 1,347 1.1x $23m Karim Ndiaye Senegal Closed: Q2 2021 Managing Director, +20% +21% Senegal(1) (1,207) (1.0x) ($19m) 5
Slide 7: Enlarged platform primed for growth and returns
HIGHLIGHTS FINANCIAL RESULTS Enlarged platform primed for growth and returns Recent investments have effectively doubled our Attractive markets support leading organic platform and provided greater diversification growth 16.0 Adj. EBITDA margin Transformational period for the Company: Tenancy ratio
Slide 8: Unparalleled structural growth in HT markets
HIGHLIGHTS FINANCIAL RESULTS Unparalleled structural growth in HT markets Low mobile penetration(1) Huge population growth(2) Fastest growing mobile markets(1) (2022) (2021-26) (2021-26) 91% +42 million +68 million (CAGR +2%) (CAGR +4%) 51% +34 million (CAGR +1%) +7 million (CAGR +0%) HT markets G7
Slide 9: Organic tenancy growth and lease-up driven by attractive market dynamics
HIGHLIGHTS FINANCIAL RESULTS Organic tenancy growth and lease-up driven by attractive market dynamics Consistently delivering high-single digit organic Substantial platform expansion masking strong tenancy growth since IPO underlying lease-up YoY organic tenancy growth -0.15x +8% +7% +8% +8% +8%(1)
Slide 10: Proven track record of driving lease-up
HIGHLIGHTS FINANCIAL RESULTS Proven track record of driving lease-up Tenancy ratio by vintage Highly attractive returns Average tenancy ratio expansion per annum: Illustrative incremental site ROIC for BTS(1) Minimal incremental opex BTS: 0.2x 0.3x 0.2x Minimal incremental capex Acquired: 0.1x 0.1x
Slide 11: Sustainable Business Strategy
HIGHLIGHTS FINANCIAL RESULTS Sustainable Business Strategy Committed to the highest levels of reporting Sustainable Business Strategy progressing; and transparency management compensation closely aligned Mgmt. Impact KPI FY 21 FY 22 FY 26 First rating of ‘AAA’ from MSCI comp(3) • Received an ‘AAA’ E
Slide 12: Financial Results
Financial Results Helios Towers FY 2022 Results 12
Slide 13: FY 2022: Delivered on guidance with strong organic tenancy and Adj. EBITDA growth
HIGHLIGHTS FINANCIAL RESULTS FY 2022: Delivered on guidance with strong organic tenancy and Adj. EBITDA growth FY 2022 actual FY 2022 guidance Organic tenancy additions +1,601 organic tenancies of which 47% new sites +1,400 - 1,700 of which 60% sites Lease rate per tenancy +4%(1) +3% - 5% YoY
Slide 14: Robust financial performance and outlook
HIGHLIGHTS FINANCIAL RESULTS Robust financial performance and outlook Continued Adj. EBITDA and PFCF growth, with platform ready to drive returns upwards Adj. EBITDA Portfolio free cash flow Return on invested capital(2) (US$m) (US$m) (%) Adj. EBITDA Margin Cash conversion(1) >$1bn invested capital
Slide 15: FY 2022: Record site and tenancy growth
HIGHLIGHTS FINANCIAL RESULTS FY 2022: Record site and tenancy growth Sites Tenancies Tenancy ratio +7% +42% +8% +30% +0.01x -0.15x 24,492 13,553 3,017 2,519 18,776 605 1,232 765 594 1,439 9,560 508 1,303 631 490 464 715 2,216 1,347 661 2,041 272 1,232 369 1,040 511 1,113 4,701 5,215 459 1.96x 1.81x
Slide 16: FY 2022: Continued Adj. EBITDA expansion driven by tenancy growth
HIGHLIGHTS FINANCIAL RESULTS FY 2022: Continued Adj. EBITDA expansion driven by tenancy growth Revenue (US$m) Adj. EBITDA (US$m) Adj. EBITDA margin (%) +9% +18% +14% +25% -2ppt -3ppt 2 283 4 561 7 24 241 6 22 15 1 5 449 37 3 13 14 2 9 21 6 23 28 37 13 26 28 43 104 206 101 176 53.6% 50.4% 113 134 170
Slide 17: Robust business model protects Adj. EBITDA through macro volatility
HIGHLIGHTS FINANCIAL RESULTS Robust business model protects Adj. EBITDA through macro volatility FY 22 YoY revenue walkthrough(1,3) FY 22 YoY Adj. EBITDA walkthrough(1) (US$m) (US$m) +25% +18% 53 21 11 (12) 24 0 5 (8) 25 35 Fx movements, which Power escalations largely occurred in Further power Prin
Slide 18: Adj. EBITDA protected through power price volatility
HIGHLIGHTS FINANCIAL RESULTS Adj. EBITDA protected through power price volatility Without power escalation protections With Helios Towers power escalation protections Illustrative example Illustrative example HT FY 2022 Before After US$m Before After US$m FY 22 US$m Power Power Power FY 22 (unless o
Slide 19: Diversified business underpinned by long-term contracts with blue-chip MNOs
HIGHLIGHTS FINANCIAL RESULTS Diversified business underpinned by long-term contracts with blue-chip MNOs Diverse, quality customer base Robust hard-currency earnings Geographically diverse revenues FY 22 revenue breakdown by customer FY 22 revenue breakdown by FX FY 22 actual FY 22 pro forma acquisi
Slide 20: FY 2023 capex is tightly controlled and focused on organic investments
HIGHLIGHTS FINANCIAL RESULTS FY 2023 capex is tightly controlled and focused on organic investments to drive returns Capex breakdown Commentary FY 22 US$m, FY 23 FY 21 FY 22 • FY 22 capex of $765m, a record level of investment, including acquisition capex of unless otherwise stated Guidance $557m, p
Slide 21: Strong portfolio free cash flow reinvested to support growth
HIGHLIGHTS FINANCIAL RESULTS Strong portfolio free cash flow reinvested to support growth Management cash flow Commentary ($m) FY 20 FY 21 FY 22 • FY 22 portfolio free cash flow of $201m, increasing Adj. EBITDA 227 241 283 20% YoY Non-discretionary capex (17) (22) (20) Payment of lease liabilities(1
Slide 22: Net leverage increase driven by Oman acquisition; clear pathway to de-levering
HIGHLIGHTS FINANCIAL RESULTS Net leverage increase driven by Oman acquisition; clear pathway to de-levering Debt KPIs Commentary ($m) FY 21 FY 22 • Net leverage increased by +1.5x YoY to 5.1x, due to Cash & cash equivalents 529 120 closing of Malawi and Oman acquisitions during the Bond (Dec-25) 975
Slide 23: FY 2023: Focused on execution with organic tenancy additions
HIGHLIGHTS FINANCIAL RESULTS FY 2023: Focused on execution with organic tenancy additions and Adj. EBITDA growth expected to accelerate FY 2022 actual FY 2023 guidance YoY Growth Organic tenancy +1,601 organic tenancies +1,600 - 2,100 +7% - 9% of which 47% new sites of which 40% sites additions Adj.
Slide 24: Segmentation update
HIGHLIGHTS FINANCIAL RESULTS Segmentation update Following key phase of expansion and investment in regional structures, the company will align its reporting segments effective from Q1 2023 FY 2022 Sites Tenancies Adj. EBITDA (#) (#) (US$m) East and West Africa 6,300 12,093 163 Tanzania, Senegal, Ma
Slide 25: Key takeaways and outlook for 2023
HIGHLIGHTS FINANCIAL RESULTS Key takeaways and outlook for 2023 Key phase of inorganic expansion complete, with record sites and tenancies 1 delivered in FY 22 Demonstrable resilience through macro volatility: structural growth and robust 2 business model Record organic tenancies, accelerated Adj. E
Slide 26: Thank you
Jërëjëf Zikomo Thank you Matondo Matondi Asante Shukranًشكرا Merci Misaotra Medaase Siyabonga Helios Towers FY 2022 Results 26
Slide 27: Investor relations
Investor relations IR Contact Chris Baker-Sams Head of Strategic Finance and Investor Relations investorrelations@heliostowers.com Upcoming IR events Date Event 16-Mar Citi TMT Conference 21-Mar Berenberg UK Corporate Conference 29/30-Mar Jefferies Pan-European Mid-Cap Conference Helios Towers FY 20
Slide 28: Appendix
Appendix Helios Towers FY 2022 Results 28
Slide 29: Market overview
Market overview PoS Growth Tenancy Mobile Towers held Credit ratings Sites # MNOs(1) CAGR(4) Credit ratings(5) ratio Penetration(2) by MNOs(3) momentum(6) (2021 – 2026) Tanzania 4,188 2.2x 4+ 48% 0.6k 8% B2(Pos)/NR/NR DRC 2,233 2.3x 4 27% 1.3k 12% B3(St)/B-(St)/NR Ghana 1,113 2.0x 3 54% 0.4k 5% Ca(S
Slide 30: Our markets are some of the fastest growing in the world
Our markets are some of the fastest growing in the world, with inflation in-line with global levels 2022 real GDP growth(1) in HT markets 2022 inflation trend(1) in HT markets 6% 27% 18% 5% (2) 4% 4% 4% 4% 4% 4% 3% 10% 8% 9% (2) 8% 7% 7% 2% 2% 7% 4% 4% 3% 1% Senegal G7 DRC Congo B Madagascar Ghana S
Slide 31: Income Statement
Income Statement 12 months ended 31 December US$m 2022 2021 Revenue 560.7 449.1 Cost of sales (365.9) (295.3) Gross profit 194.8 153.8 Administrative expenses (114.1) (94.3) Profit / (loss) on disposal of property, plant and equipment (0.4) (0.5) Operating profit 80.3 59.0 Interest receivable 1.8 0.
Slide 32: Balance Sheet
Balance Sheet US$m 31 December 2022 31 December 2021 Non-current assets Intangible assets 583.5 231.4 Property, plant and equipment 931.4 708.2 Right-of-use assets 200.0 161.1 Derivative financial assets 2.8 57.7 1,717.7 1,158.4 Current assets Inventories 14.6 10.5 Trade and other receivables 246.8
Slide 33: Management Cash Flow
Management Cash Flow 12 months ended 31 December US$m 2022 2021 Adjusted EBITDA 282.8 240.6 Less: Maintenance and corporate capital additions (20.3) (22.1) Payments of lease liabilities1 (40.8) (31.0) Tax paid (20.3) (19.2) Portfolio free cash flow 201.4 168.3 Cash conversion %2 71% 70% Net payment
Slide 34: Reconciliation of Adjusted EBITDA to loss before tax
Reconciliation of Adjusted EBITDA to loss before tax 12 months ended 31 December US$m 2022 2021 Adjusted EBITDA 282.8 240.6 Adjustments applied to give Adjusted EBITDA: Adjusting items: Deal costs1 (19.1) (19.3) Share-based payments and long-term incentive plans2 (4.5) (2.0) Gain/(loss) on disposals
Slide 35: ROIC breakdown
ROIC breakdown US$m 2020 2021 2022 Property, plant and equipment 594.7 708.2 931.4 Accumulated depreciation 713.0 833.3 934.0 Less: Accumulated maintenance and corporate capital expenditure (180.6) (202.7) (224.8) Gross property, plant and equipment (excl. maint & corp capital expenditure) 1,127.1 1
Slide 36: Disclaimer
Disclaimer This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire or dispose of securities in Helios Towers plc (the "Company") or any other member of the Helios Towers group