Helios Towers PLC · LSE:HTWS
Helios Towers — Q1 2025 Earnings Presentation
30 slides from Helios Towers's earnings presentation, May 8, 2025
Slide 1: Q1 2025 Results
Q1 2025 Results FY 2025 guidance reaffirmed, underpinned by strong operational and financial performance 8 May 2025
Slide 2: Today's Presenters
TODAY’S PRESENTERS Manjit Dhillon Tom Greenwood Chris Baker-Sams Chief Financial Officer & Chief Executive Officer Head of Strategic Finance HT Oman Executive Chair & Investor Relations 2 Helios Towers Q1 2025 Results
Slide 3: Agenda
Agenda 1. Strategic overview 2. Financial results 3. Q&A Dar Es Salaam, Tanzania
Slide 4: Strategic overview
1x Strategic overview 2x 3x
Slide 5: Highlights
HIGHLIGHTS 1 2 3 4 Strong momentum Robust and consistent Improved credit FY 25 guidance towards ‘2.2x by 26’ financial performance ratings reaffirmed YoY(6) • +668 YTD tenancy additions • +9% YoY Adj. EBITDA growth • Net leverage reduction of -0.4x YoY • +2,000 - 2,500 tenancy adds +8% (+2,388 YoY),
Slide 6: Ten years of consistent Adj. EBITDA growth unabated through global volatility
TEN YEARS OF CONSISTENT ADJ. EBITDA GROWTH UNABATED THROUGH GLOBAL VOLATILITY Adjusted EBITDA (US$m) +26% CAGR 460 - 470 444 421 370 283 227 241 205 178 146 105 54 FY 15 FY 16 FY 17 FY 18 FY19 FY 20 FY 21 FY 22 FY 23 FY 24 Q1 25 FY 25 (1) Ann. guidance Global volatility: Brexit Oil price shocks, US/
Slide 7: Our business model
OUR BUSINESS MODEL Tenant hosting & power services Long term cash flows 1 What we do 2 Our value creation 3 Contracted future revenue Cash-on-cash ROIC(1) 1x tenant (Day-1 anchor) 34% $5.3bn ~7 years tenant 2x (colocation) average 25% tenant remaining min. 3x (colocation) term POWER 12% Grid TOWER B
Slide 8: Continued momentum on our 2.2x strategy, supporting ROIC and free cash flow expansion
CONTINUED MOMENTUM ON OUR 2.2X STRATEGY, SUPPORTING ROIC AND FREE CASH FLOW EXPANSION Our target: >2.10x Tenancy 2.13x 2.09x 2.05x ratio 1.96x 1.91x 1.81x 14.5% c.14% 13.8% ROIC 12.9% 11.8% 12.0% 10.3% New market Senegal Malawi acquisitions Madagascar Oman 14k 7k 1.2x (1) doubled increased hard acqu
Slide 9: Capital allocation priorities
CAPITAL ALLOCATION PRIORITIES Continued EBITDA and ROIC expansion, plus deleveraging, increases surplus free cash flow supporting potential shareholder distributions Current priorities: Optimised organic Capital efficient investments accretive to ROIC – colocations, investments operational efficienc
Slide 10: Financial results
Financial results Dakar, Senegal
Slide 11: Solid progress towards FY 2025 guidance
SOLID PROGRESS TOWARDS FY 2025 GUIDANCE Organic tenancy additions (#) Adj. EBITDA (US$m) ROIC (%) Free cash flow (US$m) Tenancy ratio expansion Organic growth ROIC expansion (1) +0.1x +0.1x >0.1x +$46m +$51m +$39-49m +2ppt +1ppt +1ppt 40 - 60 13.8% c.14% 2,481 2,000 – 2,500 12.9% 2,433 460 - 470 444
Slide 12: Tenancy additions driven by structural growth, leading market positions and customer service focus
TENANCY ADDITIONS DRIVEN BY STRUCTURAL GROWTH, LEADING MARKET POSITIONS AND CUSTOMER SERVICE FOCUS Sites Tenancies Tenancy ratio +2% +9% +0.14x 14,166 14,417 30,074 2.09x 27,686 1.95x 2,531 2,557 4,405 3,657 5,204 5,326 11,083 11,762 6,431 6,534 12,946 13,907 Q1 24 Q1 25 Q1 24 Q1 25 Q1 24 Q1 25 • Si
Slide 13: Revenue growth driven by tenancy additions, underpinned by contracted revenues
REVENUE GROWTH DRIVEN BY TENANCY ADDITIONS, UNDERPINNED BY CONTRACTED REVENUES WITH MULTINATIONAL CUSTOMERS Q1 25 revenue by currency Revenue (US$m) Revenue commentary 16% USD +5% • 67% revenue in hard currency, largely due CFA Franc / EUR to four of our nine markets being innately 16% 59% LCY (Powe
Slide 14: Adj. EBITDA growth highly correlated to tenancy additions and resilient to FX, CPI
ADJ. EBITDA GROWTH IS HIGHLY CORRELATED TO TENANCY ADDITIONS AND RESILIENT TO FX, CPI AND POWER PRICE MOVEMENTS Q1 25 YoY revenue walkthrough(1,2) Q1 25 YoY Adj. EBITDA walkthrough(1) (US$m) (US$m) +5% +9% 10 (4) 5 (3) 8 2 (1) Fx impact mitigated through Driven by power price decreases in 70% hard c
Slide 15: Capex is tightly controlled and focused on ROIC-accretive opportunities
CAPEX IS TIGHTLY CONTROLLED AND FOCUSED ON ROIC-ACCRETIVE OPPORTUNITIES 765 Q1 25 557 • Q1 25 capex of $21m, of which $6m was non-discretionary 203 Guidance: 20 150 - 180 FY 25 guidance 169 5 • Capex guidance unchanged at $150m - $180m (c.$50m non- 171 113 93 100 - 130 discretionary), reflecting con
Slide 16: Positive rating actions underscore strengthened business profile
POSITIVE RATING ACTIONS UNDERSCORE STRENGTHENED BUSINESS PROFILE Debt KPIs (US$m) Q1 24 Q4 24 Q1 25 Credit profile Gross debt 1,901 1,901 1,935 • Continued improvement in our credit Cash & cash equivalents 89 161 166 ratings YTD with Fitch and S&P upgrading to BB- and Moody's Net debt(1) 1,812 1,740
Slide 17: FY 2025 guidance reaffirmed
FY 2025 GUIDANCE REAFFIRMED FY 24 Q1 25 YTD FY 25 Actual Actual Guidance(1) Organic tenancy additions +2,481 +668 +2,000 - 2,500 Adj. EBITDA $421m $111m $460m - $470m $169m $21m $150m - $180m Capex(2) ($127m disc. / ($15m disc. / ($100m - $130m disc. / $42m non-disc.) $6m non-disc.) $50m non-disc.)
Slide 18: Key takeaways
KEY TAKEAWAYS ✓ ✓ ✓ ✓ Nearing 2.2x Continued Adj. FY 25 guidance Anticipate financial tenancy ratio target EBITDA growth, FCF reaffirmed flexibility to support and ROIC expansion investor distributions in FY 26 18 Helios Towers Q1 2025 Results
Slide 19: Q&A Thank you
Q&A Thank you Jërëjëf Medaase Zikomo Merci Matondi Asante Misaotra Shukranًشكرا Siyabonga Matondo Sur, Oman
Slide 20: Investor relations
INVESTOR RELATIONS IR Contact Upcoming IR events 15 May Annual General Meeting Chris Baker-Sams Head of Strategic Finance and Investor Relations 28 to 29 May BofA Emerging Markets Corporate Conference investorrelations@heliostowers.com 24 to 25 June Barclays Emerging Markets ESG Corporate Days 25 Ju
Slide 21: Appendix
Appendix Blantyre, Malawi
Slide 22: Operational & financial highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS YoY In US$m, unless otherwise stated Q1 25 Q1 24 Change Sites (#) 14,417 14,166 +2% Tenancies (#) 30,074 27,686 +9% Tenancy ratio (x) 2.09x 1.95x +0.14x Revenue 204 195 +5% Adj. EBITDA(1) 111 102 +9% Adj. EBITDA margin (%) (1) 55% 53% +2ppt Operating profit 77 67 +
Slide 23: Market overview: macro and industry snapshot
MARKET OVERVIEW: MACRO AND INDUSTRY SNAPSHOT Mobile GB/month Unique Mobile Unique mobile PoS Growth Towers held by Credit ratings # MNOs(1) Subs(2) Subs CAGR(2) CAGR(4) Credit ratings(6) Penetration(2) per Sub(3) MNOs(5) momentum(7) (YoY) (2024 – 2029) (2024 – 2029) Tanzania 4 44% 2.8 6% 6% 4% 0.7k
Slide 24: Q1 2025: Sites and tenancies
Q1 2025: SITES AND TENANCIES Population Sites Tenancies Tenancy ratio coverage Q1 Q4 Q1 Q1 Q4 Q1 Q1 Q4 Q1 Q1 YoY QoQ YoY QoQ YoY QoQ 24 24 25 24 24 25 24 24 25 25 Tanzania 4,180 4,226 4,252 72 26 9,984 10,495 10,648 664 153 2.39x 2.48x 2.50x 0.11x 0.02x 45m Senegal 1,455 1,459 1,458 3 (1) 1,587 1,63
Slide 25: ROIC breakdown
ROIC BREAKDOWN US$m 2020 2021 2022 2023 2024 Q1 25 Property, plant and equipment 594.7 708.2 907.9 918.3 981.0 963.0 Accumulated depreciation 713.0 833.3 934.0 1,127.5 1,236.5 1,205.1 Accumulated maintenance and corporate capital expenditure (180.6) (202.7) (224.8) (260.3) (302.0) (307.6) Intangible
Slide 26: Management cash flow
MANAGEMENT CASH FLOW 3 months ended 31 March US$m 2025 2024 Adjusted EBITDA 111.1 102.2 Less: Maintenance and corporate capital additions (5.6) (14.5) Payments of lease liabilities(1) (8.4) (14.4) Tax paid (13.8) (3.4) Portfolio free cash flow 83.3 69.9 Cash conversion %(2) 75% 68% Net payment of in
Slide 27: Cash flow definitions
CASH FLOW DEFINITIONS Metric Use Portfolio free cash flow Cash generated on our existing platform, before interest and (PFCF) working capital expenses Cash generated that management can allocate towards Recurring levered free cash discretionary capex, debt paydowns and/or shareholder flow (RLFCF) di
Slide 28: FY 2024: Sustainable business strategy update
FY 2024: SUSTAINABLE BUSINESS STRATEGY UPDATE Positive progress with our local, diverse and talented teams delivering reliable and expanded mobile connectivity Mgmt. Impact KPI comp(1) FY 22 FY 23 FY 24 FY 26 Record downtime per tower per week of 1:16 in FY 24, falling below 1 minute for the first t
Slide 29: Leading ESG credentials
LEADING ESG CREDENTIALS Third ‘AAA’ ESG rating from MSCI, Feb 25 FTSE4Good Index inclusion, Jun 24 Scored B, Feb 25 Gold rating, Feb 24 (the highest possible score from MSCI) (for a third consecutive year) (2024 rating reaffirmed) (rated top 5% of telecoms industry) ESG Risk Rating of 16.7 (Low Risk
Slide 30: 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