Helios Towers Plc · LSE:HTWS
Helios Towers — Q1 2023 Earnings Presentation
26 slides from Helios Towers's earnings presentation, May 18, 2023
Slide 1: Q1 2023 Results
Record YoY organic Q1 2023 Results tenancy additions and strong 18 May 2023 financial performance
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 Q1 2023 Results 2
Slide 3: Agenda
Agenda 1. Highlights 2. Financial Results 3. Q&A Helios Towers Q1 2023 Results 3
Slide 4: Highlights
Highlights Helios Towers Q1 2023 Results 4
Slide 5: Highlights
HIGHLIGHTS FINANCIAL RESULTS Highlights Following two years of transformational expansion, FY 2023 starts with record YoY organic tenancy additions and strong organic Adj. EBITDA growth 1 2 3 STRONG RECORD SITE AND FY 23 GUIDANCE FINANCIAL PERFORMANCE TENANCY GROWTH REITERATED • +34% YoY revenue gro
Slide 6: Robust growth on key metrics
HIGHLIGHTS FINANCIAL RESULTS Robust growth on key metrics Leadership positions across high-growth markets, robust business model and consistent operational execution driving performance Tenancies Adj. EBITDA Portfolio free cash flow (#) (US$m) (US$m) Tenancy ratio Adj. EBITDA Margin Cash conversion(
Slide 7: Sustainable Business Strategy update
HIGHLIGHTS FINANCIAL RESULTS Sustainable Business Strategy update First rating of ‘AAA’ from MSCI, Jul 22 (the highest possible score from MSCI) Integrated Annual Report published in Mar-23 Evolution in our disclosures: • Adopted integrated reporting for the first time to best reflect our approach t
Slide 8: Financial Results
Financial Results Helios Towers Q1 2023 Results 8
Slide 9: Q1 2023: Financial overview
HIGHLIGHTS FINANCIAL RESULTS Q1 2023: Financial overview YoY QoQ In US$m, unless Q1 23 Q1 22 % change Q1 23 Q4 22 % change otherwise stated Revenue 171 128 +34% 171 152 +12% Adj. EBITDA(1) 85 67 +27% 85 76 +11% Adj. EBITDA margin (%) 50% 52% -2% 50% 50% - Portfolio free cash flow(2) 58 49 +17% 58 56
Slide 10: Q1 2023: Record YoY organic tenancy additions
HIGHLIGHTS FINANCIAL RESULTS Q1 2023: Record YoY organic tenancy additions Sites Tenancies Tenancy ratio +5% +30% +8% +24% +0.05x -0.08x 25,120 13,684 3,072 1.92x 1.84x 2,519 20,233 10,511 9,685 1.22x 8,683 4,459 4,843 1.95x 2.00x 6,322 11,550 12,363 6,052 1.91x 1.96x Q1 22 Q1 23 Q1 22 Q1 23 Q1 22 Q
Slide 11: Q1 2023: Strong financial performance
HIGHLIGHTS FINANCIAL RESULTS Q1 2023: Strong financial performance Revenue (US$m) Adj. EBITDA (US$m) Adj. EBITDA margin (%) +11% +27% +17% +34% Accelerating adj. EBITDA growth, 171 85 delivering highest 13 YoY organic 9 growth since Q4 20 67 128 37 81 39 71 52% 50% 47 77 36 56 -8 -8 Q1 22 Q1 23 Q1 2
Slide 12: Robust business model protects Adj. EBITDA through macro volatility
HIGHLIGHTS FINANCIAL RESULTS Robust business model protects Adj. EBITDA through macro volatility Q1 23 YoY revenue walkthrough(1,2) Q1 23 YoY Adj. EBITDA walkthrough(1) (US$m) (US$m) +34% +27% 22 11 6 (5) 3 (3) 10 8 0 11 Principally driven by Ghanaian Cedi and Euro 171 Power escalators effectively 8
Slide 13: Diversified business underpinned by long-term contracts with blue-chip MNOs
HIGHLIGHTS FINANCIAL RESULTS Diversified business underpinned by long-term contracts with blue-chip MNOs Diverse, quality customer base Robust hard-currency revenues Geographically diverse revenues Q1 23 revenue breakdown by customer Q1 23 revenue breakdown by FX Q1 23 revenue breakdown by segment 1
Slide 14: FY 2023 capex is tightly controlled and focused on accretive organic opportunities
HIGHLIGHTS FINANCIAL RESULTS FY 2023 capex is tightly controlled and focused on accretive organic opportunities Capex breakdown Commentary Q1 23 US$m, FY 23 FY 22 Q1 23 unless otherwise stated Guidance • Q1 23 YTD capex of $48m, including $10m non- discretionary capex Acquisitions 557 3 • Trending i
Slide 15: Net leverage increase driven by Oman acquisition; clear pathway to de-levering
HIGHLIGHTS FINANCIAL RESULTS Net leverage increase driven by Oman acquisition; clear pathway to de-levering Debt KPIs Commentary ($m) Q1 22 Q4 22 Q1 23 • Net leverage increased by +1.4x YoY to 5.1x, due to closing of Oman acquisition in Dec-22 Cash & cash equivalents 483 120 83 Bond (Dec-25) 975 975
Slide 16: FY 2023: Guidance reiterated
HIGHLIGHTS FINANCIAL RESULTS FY 2023: Guidance reiterated Q1 2023 actual FY 2023 guidance YoY(3) Organic tenancy +628 +1,600 - 2,100 +7% - 9% of which 21% sites of which 40% sites additions Adj. EBITDA $339m $350m - $365m +24% - 29% (annualised)(1) PFCF $227m $230m - $245m +14% - 22% (LTM)(2) Capex
Slide 17: Key takeaways
HIGHLIGHTS FINANCIAL RESULTS Key takeaways Record +1,870 YoY organic tenancy additions (+628 QoQ), reflecting leadership positions in high-growth markets and solid execution Strong Adj. EBITDA growth, underpinned by $4.8bn highly visible contracted revenues with 7.3 years average remaining life
Slide 18: Thank you
Jërëjëf Zikomo Thank you Matondo Matondi Asante Shukranًشكرا Merci Misaotra Medaase Siyabonga Helios Towers Q1 2023 Results 18
Slide 19: Investor relations
Investor relations IR Contact Chris Baker-Sams Head of Strategic Finance and Investor Relations investorrelations@heliostowers.com Upcoming IR events Date Event 18-May Citi Frontier Markets Symposium 31-May - 02-Jun BofA Emerging Markets Debt and Equity Conference 8-Jun JP Morgan Frontier Markets Fi
Slide 20: Appendix
Appendix Helios Towers Q1 2023 Results 20
Slide 21: Q1 2023 sites and tenancies
Q1 2023 sites and tenancies Sites Tenancies Tenancy ratio Q1 23 Q1 22 YoY Q4 22 QoQ Q1 23 Q1 22 YoY Q4 22 QoQ Q1 23 Q1 22 YoY Q4 22 QoQ Tanzania 4,195 4,068 +127 4,188 +7 9,642 9,121 +521 9,422 +220 2.3x 2.2x +0.1x 2.2x +0.1x Senegal 1,361 1,261 +100 1,347 +14 1,453 1,331 +122 1,439 +14 1.1x 1.1x 0.
Slide 22: Our markets are some of the fastest growing in the world
Our markets are some of the fastest growing in the world Forecast 2023 real GDP growth(1) in HT markets Forecast 2023 inflation trend(1) in HT markets 45% 8% 25% 6% 5% (2) 4% 4% 4% 3% 10% (2) 9% 2% 7% 2% 2% 6% 5% 5% 5% 5% 1% 3% 2% 0% Senegal G7 DRC Congo B Madagascar South Africa Ghana Oman Tanzania
Slide 23: Market overview: Macro and industry snapshot
Market overview: Macro and industry snapshot Mobile PoS Growth CAGR(3) Towers held by Credit ratings # MNOs(1) 4G/5G penetration Credit ratings(5) Penetration(2) (2021 – 2026) MNOs(4) momentum(6) Tanzania 4+ 48% 15% 8% 0.6k B2(Pos)/NR/NR Senegal 3 44% 24% 7% 2.7k Ba3(St)/B+(St)/NR Malawi 2 41% 17% 8
Slide 24: Adj. EBITDA protected through power price volatility
Adj. EBITDA protected through power price volatility Without power escalation protections With Helios Towers power escalation protections Illustrative example Illustrative example HT Q1 2023 US$m Before Power After US$m Before Power After US$m Q1 23 Power Q1 23 (unless otherwise power increase power
Slide 25: Leading ESG credentials
Leading ESG credentials First rating of ‘AAA’ from MSCI, Jul 22 Inclusion in the FTSE4Good Index, Jul 22 Scored B, Dec 22 Platinum rating, Nov 22 (the highest possible score from MSCI) (improvement from 2021 rating of B-) (rated top 1% from telecoms industry) ESG Risk Rating of 22.6, Jul 22 Scored C
Slide 26: 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