Ihs Holding Limited · NYSE:IHS
Ihs — FY2021 Earnings Presentation
35 slides from Ihs's earnings presentation, Mar 15, 2022
Slide 1: Q4 / Full Year 2021 Results
Q4 / Full Year 2021 Results March 15, 2022
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 DARW ISH ADAM W ALKER STEVE HOW DEN COLBY SYNESAEL Chairman Executive Vice President, Senior Vice President, Group Senior Vice President of and CEO Group Chief Financial Officer Deputy Chief Financial Officer Communications 3
Slide 4: Key Highlights
KEY HIGHLIGHTS LEADING GLOBAL FY’21 STRONG FINANCIAL RECENT EMERGING MARKET & OPERATIONAL DEVELOPMENTS TOWERCO PERFORMANCE • 31,043 Towers (1) – Fourth largest • Constructed 1,348 new towers, added • Signed an agreement to acquire independent multinational tower 3,550 new tenants, and added 9,141 2,
Slide 5: IHS Group Snapshot
IHS GROUP SNAPSHOT 3rd Largest Independent Multinational 38,867 TowerCo Globally On Pro Forma Tower Count (1) Pro Forma towers on 3 Continents (1) 218,353 16,854 6,745 (2) 101,802 Nigeria Brazil 38,867 (1) 2,115 (5) 34,177 5,709 (3) 2,693 5,709 (3) South Africa Cote d’Ivoire 2,226 1,745 Cameroon Zam
Slide 6: IHS Growth Strategy
IHS GROWTH STRATEGY REVENUE Total Revenue CAGR 2016 - 2021 +11.8% In US$M 1,580 (3) 1,403 24 1,107 1,168 1,231 Capitalize on significant growth 906 opportunities in existing markets 1,556 Optimize utilization of existing assets Consolidate towers globally in new & 2016A 2017A 2018A 2019A 2020A
Slide 7: Sustainability Is Our Business Model
SUSTAINABILITY IS OUR BUSINESS MODEL IHS ESG INITIATIVES OUR STRATEGY Four-pillar strategy: Ethics and governance • Provides educational • Finalized first three-year • Aiming to report against Our people and communities grants and scholarships. Group-level sustainability GRI framework in 2022 pa
Slide 8: Consolidated Results Snapshot
CONSOLIDATED RESULTS SNAPSHOT FY'20 FY'21 VPY Towers (#) 27,807 31,043 11.6% Tenants (#) 42,864 46,414 8.3% Colocation Rate 1.54x 1.50x (0.05x) Lease Amendments (#) 17,983 27,124 50.8% In US$M, unless stated Revenue 1,403 1,580 12.6% (1) Adjusted EBITDA 819 926 13.1% Adjusted EBITDA Margin 58.4% 58.
Slide 9: Towers & Tenants
TOWERS & TENANTS TOWERS TENANTS Additions VPY Additions VPY 3,236 3,550 1.50x Colocation Towers Built FY 362 1,348 Rate (1) 1.54x 1.50x Colocation Rate (1) as of December 31, 2021 31,043 46,414 42,864 • FY’21, constructed 1,348 new 27,807 towers, added 3,550 new tenants, and added 9,141 lease amendm
Slide 10: Consolidated Revenue
CONSOLIDATED REVENUE Q4 REVENUE FY REVENUE Reported Growth +12.1% Reported Growth +12.6% +12.6% In US$M In US$M FY’21 Growth Rate VPY Organic Growth +14.5% Organic Growth +16.1% • FY’21 revenue growth 1,580 (1) +12.6% VPY driven by 24 organic +16.1% and inorganic +2.4% partially offset by non- core
Slide 11: FY'21 Consolidated Revenue Walk
FY’21 CONSOLIDATED REVENUE WALK FY REVENUE In US$M Growth +$177M or +12.6% (1) Inorganic Growth +2.4% Organic Growth +$227M or +16.1% 34 (84) 65 1,580 21 16 61 1,403 64 +4.5% +4.3% +1.2% +1.5% +4.6% +2.4% (6.0%) FY'20 Revenue CPI Escalations FX Resets New Sites New Colocation New Lease Inorganic Non
Slide 12: Consolidated Adjusted EBITDA
CONSOLIDATED ADJUSTED EBITDA Q4 ADJUSTED EBITDA (1) FY ADJUSTED EBITDA (1) 57.9% Adjusted EBITDA (1) Margin 52.1% 58.4% Adjusted EBITDA (1) Margin 58.6% 58.6% In US$M In US$M FY’21 Adjusted EBITDA (1) Margin 926 • FY’21 Adjusted EBITDA (1) (2) growth +13.1% 61 • Q4’21 Adjusted EBITDA (1) growth +0.9
Slide 13: Consolidated Recurring Levered Free Cash Flow
CONSOLIDATED RECURRING LEVERED FREE CASH FLOW Q4 RLFCF (1) FY RLFCF (1) RLFCF (1) Cash Conversion Rate 68.8% 40.4% RLFCF (1) Cash Conversion Rate 45.8% 43.8% $406M In US$M In US$M FY’21 Recurring Levered Free Cash Flow (1) 406 • FY’21 RLFCF (1) +$31M VPY (2) driven largely by Adjusted 61 EBITDA (3)
Slide 14: Consolidated Capex
CONSOLIDATED CAPEX Q4 CAPEX FY CAPEX In US$M In US$M 402 $402M FY’21 Capex Spend 126 • FY’21 Capex growth +$173M 229 from Non-Discretionary 151 Capex increase to support growth and discretionary 185 44 116 investment in Nigeria and Latam 65 14 81 83 35 91 16 26 30 Q4'20 Q4'21 FY'20 FY'21 New Site Ca
Slide 15: ROIC and Capital Allocation
ROIC AND CAPITAL ALLOCATION ROIC (1) FY’21 CAPITAL ALLOCATION In US$M 11.2% ROIC (1) as of December 31, Non Disc. 2021 12.4% Capex $126M • Skysites added in January 11.2% 9.7% 10.0% 2021 • Centennial Colombia added in Acquisition March 2021 Disc. Capex $401M excl. New Site $185M • Centennial Brazil
Slide 16: Nigeria Segment FY'21 Performance Highlights
NIGERIA SEGMENT FY’21 PERFORMANCE HIGHLIGHTS TOWERS TENANTS LEASE AMENDMENTS Additions VPY Additions VPY Additions VPY 317 787 8,986 Towers Colocation Built FY 102 597 Rate (1) 1.50x 1.52x 25,621 24,834 26,334 16,537 16,854 17,348 FY'20 FY'21 FY'20 FY'21 FY'20 FY'21 FY REVENUE FY ADJUSTED EBITDA (2)
Slide 17: Other Segments FY'21 Highlights
OTHER SEGMENTS FY’21 HIGHLIGHTS Revenue & Adjusted EBITDA (1) In US$M FY’20 FY’21 VPY Towers 7,627 7,878 3.3% Tenants 13,623 13,416 (1.5%) SSA Revenue (1) 313 344 9.7% Adjusted EBITDA 171 191 11.6% Margin % 54.5% 55.4% 90 Bps Towers 2,481 4,909 97.9% Tenants 3,245 5,961 83.7% Latam Revenue (1) 30 60
Slide 18: Debt and Other Matters
DEBT AND OTHER MATTERS As of December As of December 31, 2020 31, 2021 In US$M 8.000% Senior Notes due 2027 940 940 7.125% Senior Notes due 2025 510 - 5.625% Senior Notes due 2026 - 500 6.250% Senior Notes due 2028 - 500 2.2x Nigeria Senior Credit Facilities 454 381 December 31, 2021 Other Indebtedn
Slide 19: Disciplined Strategic Growth
DISCIPLINED STRATEGIC GROWTH IHS Egypt – signed October 4, 2021 (1) I-Systems (TIM Fiber) – Closed November 16, 2021 • IHS Egypt is owned 80% by IHS and 20% by Egypt Digital • Asset base covering 6.4 million homes passed Company for Investment S.A.E. (“EDCI”) • High-quality fiber infrastructure netw
Slide 20: FY 2022 Guidance
FY 2022 GUIDANCE FY 2022 GUIDANCE Metrics Range Key Points Revenue $1,795M – $1,815M • 2021 non-recurring items: • Revenue: $24M (3) • Adjusted EBITDA (4) & Adjusted EBITDA (1) $960M – $980M RLFCF (5): $61M (6) • FY 2022 increase of $23M of net interest paid from bond Recurring Levered FCF (2) $310M
Slide 21: FY 2022 Key Assumptions & Sensitivities
FY 2022 KEY ASSUMPTIONS & SENSITIVITIES FY 2022 SENSITIVITIES FY 2022 Key Assumptions Oil increase of $5/bbl ~($7M) Adjusted EBITDA (1) • Oil at $120 USD/bbl (Q2 – Q4) • Key Currencies FY’22 average rates ₦ • USD:NGN = 439 ~($30M) Revenue 5% devaluation of the Naira • USD:BRL = 5.70 ~($19M) Adjusted
Slide 22: Oil Impact on Our Business
OIL IMPACT ON OUR BUSINESS • Since grid power is either non-existent or unreliable in most of the African, specifically Nigerian, locations where our Towers are located, we provide Power Management as part of our service offering to some of our customers • For the last several years, IHS has added h
Slide 23: Appendix
Appendix MHS | »
Slide 24: Largest Independent TowerCo in Africa and MENA with Growing Latam Business
LARGEST INDEPENDENT TOWER CO IN AFRICA AND MENA WITH GROWING LATAM BUSINESS Pro Forma Market Market Core # out of # Towers (1) Position (2) (3) Share (2) (3) Tenants Major MNOs (4) Nigeria 16,854 1 65% 3 out of 4 South Africa (5) 5,709 1 39% 1 out of 4 CIV 2,693 1 100% 2 out of 3 Cameroon 2,226 1 10
Slide 25: Attractive Markets Well Suited for Organic Growth
ATTRACTIVE MARKETS WELL SUITED FOR ORGANIC GROWTH POPULATION (MILLION PEOPLE) MOBILE PENETRATION Growth % 2020 – 2025E Change 2020 – 2025E +8% +13% +6% (4) +5% 812 236 114% 755 101% 209 109% 96% 2020 2025E 2020 2025E 2020 2025E 2020 2025E All IHS Markets (1) Nigeria All IHS Markets (2) Nigeria 4G AN
Slide 26: Q4'21 Consolidated Revenue Walk
Q4’21 CONSOLIDATED REVENUE WALK Q4 REVENUE In US$M Growth +$45M or +12.1% (1) Inorganic Growth +3.2% Organic Growth +$54M or +14.5% (1) 12 (21) 3 416 15 5 7 10 371 14 +3.7% +2.7% +1.9% +1.4% +4.0% +0.9% +3.2% (5.6%) Q4'20 CPI FX Resets New Sites New New Lease Other Inorganic Non-core FX Q4'21 Revenu
Slide 27: Segmental Q4'21 Performance Highlights
SEGMENTAL Q4’21 PERFORMANCE HIGHLIGHTS In US$M Q4’20 Q4’21 VPY Revenue 273 300 9.8% Nigeria (1) Adjusted EBITDA 178 184 3.4% Margin % 65.1% 61.3% (380 Bps) Revenue 82 88 6.6% SSA Adjusted EBITDA (1) 47 46 (1.2%) Margin % 56.9% 52.7% (420 Bps) Revenue 9 20 126.2% (1) Latam Adjusted EBITDA 7 14 102.1%
Slide 28: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION Reconciliation from audited (loss)/profit for the period to Adjusted EBITDA 3-m onth period ended 12-m onth period ended Dec 31, Dec 31, Dec 31, Dec 31, 2020 2021 2020 2021 $'000 $'000 $'000 $'000 (Loss)/profit 50,230 (72,280) (322,682) (26,121) Income tax expense 40,5
Slide 29: Recurring Levered Free Cash Flow Reconciliation
RECURRING LEVERED FREE CASH FLOW RECONCILIATION Reconciliation of cash flow s from operating activities for the 3-m onth period ended 12-m onth period ended period to Recurring Levered Free Cash Flow Dec 31, Dec 31, Dec 31, Dec 31, 2020 2021 2020 2021 $'000 $'000 $'000 $'000 Cash from operations 139
Slide 30: ROIC Reconciliation
ROIC RECONCILIATION Reconciliation of Return on Invested Capital 12-m onth period ended Dec 31, Dec 31, Dec 31, Dec 31, 2018 2019 2020 2021 $'000 $'000 $'000 $'000 (Loss)/profit (132,770) (423,492) (322,682) (26,121) Adjustments: Income tax expense 46,748 13,518 169,829 17,980 Finance costs 315,942
Slide 31: Currency Overview
CURRENCY OVERVIEW Guidance Average Period End Spot Assumption FY'22 Average Currency 2019A 2020A Q1'21 Q2'21 Q3'21 Q4'21 2019A 2020A Q1'21 Q2'21 Q3'21 Q4'21 Rates Nigeria (Naira) – USD:NGN NAFEX 362 382 403 411 412 415 365 410 409 411 415 435 439 European Union (Euro) – USD:EUR 0.89 0.88 0.83 0.83 0
Slide 32: Glossary of Terms
GLOSSARY OF TERMS Adjusted EBITDA, Adjusted EBITDA margin and other non-IFRS financial measures are used by Group management to monitor the underlying performance of the business and the operations. Adjusted EBITDA, Adjusted EBITDA margin and other non-IFRS financial measures are used by different c
Slide 33: Glossary of Terms
GLOSSARY OF TERMS Inorganic Revenue: Inorganic revenue captures the impact on revenue from existing Tenants of new tower portfolios or businesses that we have acquired since the beginning of the prior period (except as described in the organic revenue). Where tower portfolios or businesses were acqu
Slide 34: Glossary of Terms
GLOSSARY OF TERMS Return on Invested Capital (“ROIC”): the percentage that results from dividing Adjusted EBITDA for the period, adjusted for lease payments made and amortization of prepaid site rent, less revenue withholding tax, income taxes paid, maintenance capital expenditures and corporate cap
Slide 35: ihstowers.com
Towers of strength instowers.com