Cellnex Telecom S.a. · BME:CLNX
Cellnex Telecom — Cellnex Telecom Sa Ord — Q3 2023 Earnings Presentation
28 slides from Cellnex Telecom's earnings presentation, Nov 10, 2023
Slide 1: Results Presentation January – September 2023
Other Relevant Information in compliance with article 227 of Law 6/2023 on the Spanish Securities Market and Investment Services, notified to the Spanish National Securities Market Commission 2023 Results Presentation January – September 2023 10th November
Slide 2: Disclaimer
Disclaimer The information and forward-looking statements contained in this presentation have not been verified by an independent entity and the accuracy, completeness or correctness thereof should not be relied upon. In this regard, the persons to whom this presentation is delivered are invited to
Slide 3: An unconditional commitment to our “Next Chapter” objectives
An unconditional commitment to our “Next Chapter” objectives +6.8% new organic PoPs vs. 9M 2022, another quarter of strong commercial performance Solid performance Revenues excluding pass throughs €2,713Mn, +c.16% vs. 9M 2022 – of which c.€200Mn organic 1 of key metrics in Adjusted EBITDA €2,248Mn,
Slide 4: An unconditional commitment to our “Next Chapter” objectives
An unconditional commitment to our “Next Chapter” objectives De-leveraging targets unchanged and committed to securing BBB- rating by S&P (by 2024 the latest), as well as to maintain our Investment Grade status by Fitch 2,353 sites sold in France for €631Mn. Additional proceeds to be received in 202
Slide 5: Business Performance
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Slide 6: Key highlights
Key highlights 1 2 3 4 5 6 New Sites New Organic Growth Site Actions RLFCF Growth FCF Co-locations 3,159 3,323 c.€200Mn 2,324 +21% €436Mn Mainly in France, Remarkable Strong organic Cumulative savings Solid control on Opex Already positive Italy and Poland performance in revenues growth of €49Mn sin
Slide 7: 9M 2023 performance: 2023 outlook
9M 2023 performance 2023 outlook FCF guidance upgraded – positive by the end of 2023 €Mn Guidance 2023 Updated Guidance 2023 Revenues 4,100 – 4,300 4,000 – 4,100 Due to lower than expected pass-through revenues Revenues ex pass-through 3,550 – 3,750 3,600 – 3,700 Range narrowed with same mid-point L
Slide 8: 9M 2023 performance: Key financial metrics
9M 2023 performance Key financial metrics Revenues Adjusted EBITDA (excluding pass-through) 2,713 2,336 +16% +16% 2,248 1,937 83% (1) 83% (1) €Mn €Mn 9M 2022 9M 2023 9M 2022 9M 2023 EBITDAaL RLFCF 1,581 1,317 +20% +21% 1,171 967 58% (1) 56% (1) 41% (1) 43% (1) €Mn €Mn €Mn 9M 2022 9M 2023 9M 2022 9M
Slide 9: 9M 2023 performance: Key operational metrics
9M 2023 performance Key operational metrics New Total PoPs (including BTS) +6.8% New co-locations +3.6% YoY YoY 3,100 2,594 2,367 2,076 1,774 1,524 1,486 1,218 1,255 582 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 PoPs from co-location and BTS in the quarter New B
Slide 10: 9M 2023 performance: Free Cash Flow
9M 2023 performance Free Cash Flow Organic RLFCF growth +c.20% and positive FCF +21% 145 -123 182 1,171 -431 +631 967 Remedies Positive -1,063 BTS Capex FCF before +19% BTS programs (1) €62Mn -304 end of year Escalators/inflation €51Mn Efficiencies/synergies €15Mn New co-locations and associated rev
Slide 11: 2021-2025 efficiencies plan
9M 2023 performance 2021-2025 efficiencies 2021–2025 efficiencies plan plan -–Optimization Optimizationofofground groundleases leaseson ontrack track Expected to generate c.€90Mn-€100Mn efficiencies by 2025 Site actions Efficiencies/synergies c.€90Mn-€100Mn 2,324 1,546 c.€52Mn-€55Mn €49Mn 776 Q1 H1
Slide 12: Leverage Considerations
celInex® Leverage Considerations
Slide 13: Cellnex to delever and minimise interest expenses
Cellnex to delever and minimise interest expenses 2024/2025 maturities to be repaid thanks to available cash and proceeds from divestments From 2027 onwards, Cellnex will generate robust FCF which can be used to cover 100% of its debt 2024 and 2025 maturities: c.€2.6Bn 150 Debt to be repaid with exi
Slide 14: High organic deleveraging potential
High organic deleveraging potential Strong Free Cash Flow (FCF) generation to support rapid de-leveraging Cellnex’s commitment to IG 20,000 Net debt / EBITDA IFRS 16 Net Debt IAS (Mn€) 5.0x Highly visible future cash flows of >€100Bn in contracted revenues 10,000 Debt fully covered by future cash fl
Slide 15: Interest expense evolution
Interest expense evolution Assuming a constant Euribor rate of 4% until mid 2025, Cellnex average cost of debt is expected to remain close to c.2.3% even before additional debt paydown from divestments 2.5% 2.3% 2.2% 2.2% 2.2% Assuming additional divestments (illustrative) 2.0% 1.8% 1.7% 1.6% 1.6% C
Slide 16: Asset monetization progress
Asset monetization progress Asset monetization at attractive valuations reduces debt and evidences private – public valuation gap Disposal of 2,353 sites, in application of the remedies established by the French Competition Authority following Value crystallization of our Nordic operations by sellin
Slide 17: Liability management outcome
Liability management outcome Cellnex successfully issued a new convertible bond to repay the existing 2026 convertible bond (i) extending maturities, (ii) increasing conversion price and (iii) reducing dilution in terms of FCF per share A B A-B Repurchased New Change Convertible Bond Convertible Bon
Slide 18: Annex
Annex
Slide 19: New organizational model focused on achieving the “Next Chapter” objectives
New organizational model focused on achieving the “Next Chapter” objectives CEO New organizational structure focused on achieving operational Marco Patuano excellence/accelerating organic growth, as set out in November 2022 as Cellnex Next Chapter LEGAL & VICE-SECRETARY CHIEF STRATEGY OFFICER Vincen
Slide 20: Free Cash Flow
Free Cash Flow €Mn Jan-Sep Jan-Sep 2022 2023 Key metrics growing steadily Telecom Infrastructure Services 2,328 2,739 Broadcasting Infrastructure 167 173 Other Network Services 77 96 (1) Revenues Revenues 2,572 3,008 +c.16% Staff costs -183 -208 Telecom Infrastructure Services up due to organic grow
Slide 21: Balance sheet
Balance sheet €Mn Dec Sep 2022 2023 Non Current Assets 41,997 41,513 Goodwill 6,718 6,654 Fixed Assets 30,818 30,504 Right of Use 3,438 3,256 a Financial Investments & Other Fin. Assets 1,023 1,098 Prudent PPA (1) process leads to maximization of the allocation to Current Assets 2,209 2,289 fixed as
Slide 22: Income statement
Income statement €Mn Jan-Sep Jan-Sep 2022 2023 Revenues 2,572 3,008 Operating Expenses ---635 --759 Non-recurring expenses -59 -58 Depreciation & amortization -1,740 -1,899 Operating Profit 137 292 Net financial profit -518 -597 Profit of Companies Accounted for Using the Equity Method -2 -2 Income
Slide 23: Recent ESG developments
Recent ESG developments CDP Supply chain Progress in ESG reporting Cellnex is committed to reduce its Scope 3 emissions based on the targets approved by SBT initiative. Working on CSRD /ESRS gap analysis: The CDP Supply chain programme is a tool to facilitate the data collection and suppliers’ commi
Slide 24: ESG Ratings
ESG Ratings S&P Global MSCI FTSE-4Good Corporate Sustainability Assessment (CSA) ESG Rating Max: 5 Max: 100 Min: 0 Max: AAA Min: 0 100 Min: CCC AAA 5 4.4 4.4 4.3 4.3 81 AA 4.2 73 3.6 3.8 80 66 AA 4 60 A A 53 57 60 A BBB 3 BBB 40 BB BB 2 +20% BB 20 +53% B 1 0 CCC 0 2017 2018 2019 2020 2021 2022 2018
Slide 25: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition Adjusted EBITDA Profit from operations before D&A and after adding back certain non-recurring and non-cash items (such as advances to customers and prepaid expenses). Adjusted EBIT
Slide 26: Definitions
Definitions Please see our most recent Integrated Annual Report for a comprehensive explanation of APMs Term Definition Maintenance Capex Investments in existing tangible or intangible assets, such as investment in infrastructure, equipment and information technology systems, and are primarily linke
Slide 27: Non-IFRS and Alternative Performance Measures (APMs)
Non-IFRS and Alternative Performance Measures (APMs) This presentation contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”) and derived from our financial statements, alternative performance measures (“APMs”) as defined i
Slide 28: Q3 2023 Results
Q3 2023 Results Supplemental Materials (XLS) https://www.cellnex.com/investor-relations/financial-information/#shareholders-investors-quarterly-results Essential information available on the Investor Relations section of Cellnex’s website
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